Episode summary
Daybreak Weekend: US Tech, UK PM Visits China, Apple Earnings | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · Hosts: Nathan Hager
Summary
The program looks ahead to a busy week for markets, with the Federal Reserve expected to hold rates steady at its first meeting of 2026 while Chair Jay Powell faces pressure over the economy and his own Justice Department investigation. Michael McKe said the Fed will likely try to make as little news as possible, with inflation still above target and the labor market looking more stable, leaving little case for an immediate cut.
A major earnings slate follows, led by Tesla, Microsoft, Meta Platforms and Apple. Ed Ledllo said Tesla investors will be looking past Elon Musk’s noise to see whether weaker EV sales are starting to weigh on the business, while Microsoft and Meta will be judged on cloud growth and AI spending. The market, he said, still wants evidence that rising capex is translating into future revenue and profit.
The show also examined Keir Starmer’s trip to China, his first such visit as UK prime minister in more than seven years. Caroline Heepker and Bloomberg correspondents said London wants a pragmatic reset, but tensions over Hong Kong, espionage, Russia and Washington’s stance still complicate the relationship. Apple’s report later in the week will be watched for signs that stronger iPhone demand in greater China and a tight memory-chip market are shaping sales and margins across Asia.
Key takeaways
- The Fed is expected to hold rates steady Wednesday, with Michael McKe saying a cut would be a shock and that officials are unlikely to give a firm March forecast.
- Inflation remains the key problem for policymakers, with PCE at 2.8% in November and expectations for a 3% reading in December.
- Tesla investors will focus on whether the company can explain two straight years of declining sales growth and keep attention on robotaxi and humanoid-robot plans.
- Microsoft and Meta will be judged on whether AI-related capex is producing enough cloud and revenue growth to justify valuations.
- Apple’s Thursday report will be watched for greater China iPhone demand and for how a memory-chip crunch could affect margins and supplier orders in Asia.
Notable quotes
“I think you'll get a unanimous decision, no dissense this time, uh, for a hold”
“the Fed is sort of going to be anxious to make as little news as possible”
“So, when it comes to earnings, you kind of look for, well, was that story true”
“the market wants to see confidence of spending”
“I am clear that no transformation today carries greater consequence than the rise of China”
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'll look ahead to earnings from some of Tech's Magnificent 7. I'm Nathan Hager in Washington. I'm Caroline Hetka in London where we're asking whether UK Prime Minister Kier Stalmer can thaw frosty relations with China.
I'm Doug Krer looking at what Apple earnings will indicate about Asia. 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 the Federal Reserve. Jay Powell and company begin their first monetary policy meeting of 2026 on Tuesday with the first rate decision of the year to come Wednesday.
So, what should we expect as we map out policy for the rest of the year? Let's bring in Michael McKe for more on this, our international economics and policy correspondent for Bloomberg Radio and Television. Uh Mike, I guess as far as the January decision goes, it'd probably be a big shock if we got another rate cut this week, right?
So, what should we be looking for?
This is going to be another one where uh the Fed is sort of going to be anxious to make as little news as possible, which I don't think they're going to be able to avoid, but there there is no uh rate cut in train. So, they're unlikely to do that. That would be a shock.
There there's been no news that would justify that at this point. And all the speakers going into the blackout period were saying, you know, we don't think we need to cut anything.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us tech earnings
- tesla earnings
- apple earnings
- uk prime minister china visit
- asia business focus
Companies and tickers mentioned
- TSLA
- AAPL
- Tesla
- Apple
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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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