Bloomberg Daybreak: Asia Edition Asia Stocks Rise Before Jobs Data, China CPI Cools
10 snips
Feb 11, 2026 
Robin Xing, Morgan Stanley’s China economist, explains why China’s CPI slowed and what structural reforms might be needed. David Finnerty, Bloomberg FX and Rates strategist, walks through dollar weakness, Treasury yields and market bets on Fed cuts. Short, sharp takes on inflation dynamics, currency moves and the odds of rate easing.
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Yuan Strength Is A Controlled Gradual Move
- The yuan's appreciation is partly deliberate and partly a dollar-beta move, with PBOC allowing slow appreciation.
- Finnerty notes the US Treasury signaled the yuan was undervalued, and the market expects gradual tightening to 690s or 670s by year-end.
Market Sees Two–Three Fed Cuts
- Markets are pricing two to three Fed rate cuts this year after weak retail sales, but timing depends on incoming data.
- Finnerty says two cuts are feasible; more than three needs materially weak employment and unemployment upticks.
Fed Split Won't Vanish With New Chair
- The Federal Reserve remains split and rhetoric will track data rather than a simple leadership change.
- Finnerty warns that replacing one chair won't instantly unify policy; data must shift hawks toward dovishness.