Bloomberg Daybreak: Asia Edition Earnings Season Rolls On, Bank of England Rate Decision, Chinese Economic Data
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Oct 31, 2025 Ivan Feinseth, Chief Investment Officer at Tigris Capital Partners, dives into the impact of big-tech earnings and highlights AI as a transformative investment trend. He emphasizes that the current phase is just the beginning for AI adoption. Meanwhile, Dan Hanson, Chief UK Economist at Bloomberg, analyzes the Bank of England's rate strategies amidst persistent inflation. He predicts that cuts are unlikely until early 2026, given the uncertain fiscal landscape. The discussion reveals key insights into market dynamics and monetary policies.
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BoE Stands Apart As Inflation Remains Elevated
- The Bank of England is an outlier with base rate at 4% while other major central banks ease.
- Recent UK inflation fell to 3.8% but remains well above target, complicating BoE decisions.
Wage Trajectory Key To UK Inflation Outlook
- UK wage growth has slowed but remains above levels consistent with 2% inflation, keeping BoE cautious.
- Dan Hanson notes pay growth needs to fall toward ~3% to meet the inflation target.
BoE Likely To Hold, Cuts More Probable In 2026
- Despite dovish signals, cutting rates with inflation at 3.8% would be hard to justify for BoE.
- Dan Hanson sees more likelihood of cuts in first half of next year than immediately in November or December.