Episode summary
Daybreak Weekend: US CPI, London Tech, China Eco Data | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · Hosts: Nathan Hager
Summary
U.S. inflation is the main macro focus for the week, with May CPI due Wednesday and PPI on Thursday. A guest expects both measures to stay elevated, with producer prices running hotter than consumer prices, and says any readings closer to 2% would be a positive signal for the Federal Reserve. He argues the Fed cannot simply look through higher energy costs because core inflation has reaccelerated and the recent jobs report was strong enough to keep rate-hike expectations alive.
The episode also flags three stock-specific catalysts: Oracle, Adobe, and Lennar. Oracle is framed as a read on AI infrastructure demand after a strong March quarter and a sharp rise in shares this year. Adobe’s earnings call may matter as much for CEO-transition news as for numbers. Lennar is presented as a gauge of housing conditions, with affordability and weak homebuilder sentiment still weighing on the market.
In London, the hosts preview Tech Week as a test of whether the U.K. can turn AI enthusiasm, government funding, and deep research talent into real economic gains. In China, the focus is on May inflation data, where producer prices are expected to jump on energy costs but consumer inflation remains weak, reflecting soft domestic demand and lingering housing-market stress.
Key takeaways
- A guest expects U.S. PPI to come in above CPI and says a core CPI reading near 2% would be a constructive sign for the Fed.
- The guest argues the Federal Reserve cannot ignore the inflation trend because core PCE has reaccelerated and jobs growth has stayed strong.
- Oracle’s results are likely to be read as another check on AI infrastructure spending, with analysts looking for continued robust demand.
- Adobe may draw attention less for its numbers than for clues about its CEO search and AI-era strategy.
- China’s PPI is expected to rise on energy shocks, but weak CPI suggests consumer demand remains soft and housing is still a drag.
Notable quotes
“I'm expecting to see the numbers be relatively elevated across the board. Uh, PPI more than CPI”
“If we can get something in the order of yearon-year increases more 2.6 2.7 that would be a very positive signal uh for the Federal Reserve”
“the company was once best known for its namesake database software. uh but it's really found some success in providing um the type of chips filled data centers and other equipment”
“analysts really are thinking about, you know, what's will we get some clarity around the CEO transition”
“The latest reading on PPI is likely to show factory gate prices rose in the month of May”
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 and how they could affect Fed policy. I'm Nathan Hager in Washington. I'm Caroline Hepka here in London where we're getting ready for the buzz of London Tech Week.
I'm Doug Krnner looking at how higher energy prices will impact Chinese inflation. 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 economic data in the US with a big focus on inflation. The May consumer price index comes out Wednesday, followed by the index for producers the following day.
And for more on what to expect, we're joined by Edward Harrison, senior strategist at Bloomberg News and author of the Everything Risk Newsletter. Always great to speak with you, Ed. And I think it's no secret that just about everything is more expensive these days.
So, what are you expecting to stand out when it comes to the data this week?
Hey, uh, Nathan, I'm I'm expecting to see the numbers be relatively elevated across the board. Uh, PPI more than CPI. And what we're looking for is we're looking for anything that's demonstr uh 3% on any of the figures that we see because the lowest expected number is 2.9% for core CPI.
If we can get something in the order of yearon-year increases more 2.6 2.7 that would be a very positive signal uh for the Federal Reserve which is meeting uh later in the month.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us cpi
- us ppi
- london tech week
- china ppi
- china cpi
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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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