Episode summary
Daybreak Weekend: US CPI, Europe Energy, RBA Decision | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · Hosts: Nathan Hager
Summary
The program previewed a heavy week of macro and market catalysts, starting with U.S. inflation data that could influence the Fed’s next move. The host and Bloomberg strategist Edward Harrison argued that core inflation may prove stickier than markets expect, with services still running hot and less Fed forward guidance making each data print more volatile. Harrison said the jobs report reduced the odds of an immediate hike, but a hotter CPI could still push the market and policymakers toward a more hawkish stance.
Stocks to watch centered on Hims & Hers, CoreWeave, and Cava. Judy Lru said Hims & Hers faces slowing subscriber growth and an FTC lawsuit even as it pushes an AI-led care app. CoreWeave is expected to show whether AI demand can offset heavy data-center spending and debt, while Cava will be judged on traffic and margins as produce and food-safety headlines weigh on fast casual.
In Europe, Caroline Heepka and guests described an energy market under pressure from low gas storage, extreme heat, and disrupted supply. They said the crisis is not yet as severe as 2022, but elevated prices and a fragile winter outlook are forcing attention on Eon, RWE, and Vestas. The final segment shifted to Australia, where Bloomberg economist James McIntyre said softer inflation has eased rate-hike expectations, though the RBA is still likely to sound hawkish amid housing weakness, labor constraints, and the inflationary effects of the AI data-center boom.
Key takeaways
- Edward Harrison said the market is underpricing the risk that U.S. core inflation reaccelerates, especially in services.
- The host said a hotter CPI would likely trigger a negative market reaction because the Fed is offering less forward guidance.
- Judy Lru said Hims & Hers has slowed from 35% subscriber growth to 9% and 13% in the last two quarters.
- CoreWeave is expected to report about $2.5 billion in quarterly revenue, with analysts watching whether AI demand beats the stock's weak performance.
- Caroline Heepka said Europe’s gas storage was only about 57% full at the start of the month, leaving winter supply in focus.
- James McIntyre said the RBA may stay hawkish even after softer inflation, while Australia’s housing slump and AI data-center buildout reshape growth.
Notable quotes
“we're not on the disinflationary track and that is the problem for the Federal Reserve that we've stopped disinflating”
“the market will be more volatile in terms of reacting to that specific number than it it was in the past”
“the company has beat EPS estimates six of the last 10 quarters. It's, you know, really seen a lot of growth recently”
“European gas storage levels have fallen to their lowest for this time of year in almost two decades”
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 ahead to some key inflation data in the US and how they may affect Fed policy moving forward. I'm Nathan Hager in Washington. I'm Caroline Hepka in London where we're examining the extent of Europe's energy crisis with earnings in focus.
I'm Doug Krner looking ahead to next week's rate decision from the Reserve Bank of Australia. 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. We begin today's program with some key inflation data in the US. The consumer price index for July comes out Wednesday, followed by producer prices on Thursday, plus a read on how consumers may be dealing with higher prices when we get retail sales for the month of July on Friday.
For more on what we can expect from all this data, uh we are joined by Bloomberg News senior strategist Edward Harrison, of course, the author of the Everything Risk Newsletter. Great to see you on the weekend, Ed. Thanks for coming in.
So uh what's the risk that price pressures pick up in July?
That is a good question. I think the risk that they pick up uh is not what's currently discounted by the market. The market is thinking that we had inflation of 2.6% uh and that inflation will fall to 2.5% going forward.
This is the core number that I'm talking about. Now uh the the broader number is going to be above 3% but the Federal Reserve generally looks at the core number because that gives them a sense of where the overall trend is is going.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us cpi
- us ppi
- europe energy
- rba decision
- stock picks
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Daybreak: US Edition
-
Nvidia Faces Post-Huang Reckoning, Microsoft Races to Fix Outage | Bloomberg Daybreak: US Edition -
Daybreak Weekend: Nvidia Earnings, UK Labour Market, APEC Summit | Bloomberg Daybreak: US Edition -
Nvidia Weighs Succession Plans; Congress Preparing to Subpoena Jensen Huang | Bloomberg... -
GOP Thwarts Hegseth Impeachment; CoreWeave Quiets Doubts | Bloomberg Daybreak: US Edition -
FBI Investigates Nvidia CEO, Anthropic IPO Snafu | Bloomberg Daybreak: US Edition -
Nvidia CEO Affair Sparks Probe, Trump Admits Policy Mistake | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
