Episode summary
Daybreak Weekend: US CPI, ECB Decision, BRICS Summit | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 38 min · Hosts: Nathan Hager
Summary
US investors are headed into a week dominated by inflation data, with August producer prices due Thursday and consumer prices on Friday just before the Federal Reserve’s September policy meeting. The discussion centered on whether those readings will confirm that inflation is still too hot for a cut or whether recent signs of disinflation can hold. The guest said the committee is watching the data closely, especially services inflation, energy costs, insurance, shelter, and any spillover from higher oil prices.
The episode also highlighted three stocks to watch on Thursday: Oracle, Adobe, and Macy’s. Oracle was described as a beaten-down AI bellwether, with analysts expecting 18% adjusted EPS growth and 28% revenue growth to $19 billion. Adobe has rallied as fears of a software “SaaS apocalypse” eased, while Macy’s faces a tougher consumer backdrop and flat-to-down expectations.
In Europe, attention turns to the ECB, where policymakers appear set to hike again amid rising energy prices and a global bond sell-off. The conversation stressed that inflation expectations remain relatively anchored, but new staff forecasts will matter. The program closed with a look at India’s hosting of the 18th BRICS Summit, where the war in Iran, energy security, and Donald Trump’s hostility toward BRICS are likely to shape the agenda.
Key takeaways
- The guest said the Fed’s September decision hinges on this week’s CPI and PPI, with services inflation and energy costs seen as the biggest risks.
- Oracle is expected to report Thursday, with analysts looking for 18% adjusted EPS growth and 28% revenue growth to $19 billion.
- Adobe’s rally rests on whether earnings show AI is helping rather than disrupting software demand, after fears of a SaaS slowdown eased.
- Macy’s faces flat revenue expectations at about $4.8 billion, with investors watching tariff effects and consumer demand.
- ECB policymakers appear set for another hike, while new inflation and growth forecasts will test whether more tightening is coming.
- BRICS leaders meet in India as the Iran conflict, energy security, and Trump’s view of the bloc shape the summit’s tone.
Notable quotes
“It feels like a lot is riding on the inflation data that we're going to get this week”
“the markets are looking for confidence and there if the Fed is in September to do that rate hike which is now very probable”
“So, this stock has been on a little bit of a down slide. So shares are down about 40% from the start of June”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight ahead on the program, we look to some key inflation data in the US.
I'm Nathan Hager in Washington. I'm Steven Carol in London, where we're looking ahead to what renewed fears about inflation mean for the ECB's path ahead. I'm Doug Krer looking at the balancing act ahead for Prime Minister Modi as India prepares to host the brick summit.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 1130 New York, Bloomberg 991 Washington DC, Bloomberg 929 Boston, DAB Digital Radio London, SiriusXM121 and around the world on Bloombergradio.com and the Bloomberg Business App. Good day to you. I'm Nathan Hager and we begin today's program with some key inflation data coming out in the US.
We get the August producer price index on Thursday. Consumer prices the following day, Friday. Of course, all this comes days before the Federal Reserve's September policy decision.
And here to get us ready for it in our Washington DC studio is Bloomberg News Fed and economy reporter Enda Curran. So, and we've already heard Fed Governor Chris Waller say this inflation data is going to heavily influence his decision on interest rates. Is that the case across the committee, do you think?
I think it is. It feels like a lot is riding on the inflation data that we're going to get this week. Um, as you mentioned, we will get consumer and producer prices. So, officials will calculate from the CPI and the PPI their own preferred gauge of inflation, which is called PCE. And from that then they they will have a good sense as to what where inflation is at and what the numbers are telling them.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us cpi
- us ppi
- ecb decision
- brics summit
- stock picks
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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