Key Takeaways
- US jobs report anticipates stable unemployment at 4.4% and 70,000 non-farm payrolls.
- Alphabet expects mid-teens growth for search and high-teens for YouTube, with Google Cloud projected for 35% growth.
- The 2026 Winter Olympics in Italy faces planning challenges including climate change impacts and geopolitical considerations.
- Japan's upcoming snap election aims to capitalize on high approval for the ruling party amidst economic and security concerns.
- Australia's "hot" Q4 2025 CPI reading, at 3.4% year-on-year, signals potential interest rate hikes from the RBA.
Deep Dive
- Mandeep Singh, Global Tech Research Head at Bloomberg Intelligence, anticipates accelerating top-line growth for Google's search and YouTube businesses.
- Search is projected for mid-teens growth, while YouTube is expected to see high-teens growth.
- Google Cloud is forecast to achieve at least 35% growth, benefiting from deal wins and Google's TPU processors.
- Alphabet's AI spending and cloud growth are key investor focuses for the upcoming earnings.
- Michael McKee, Bloomberg's International Economics and Policy Correspondent, anticipates stable unemployment at 4.4%.
- Non-farm payrolls are projected to see a modest increase of 70,000.
- The report reflects a subdued, but potentially stabilizing, US labor market.
- McKee also noted a loss of 8,000 manufacturing jobs in December and potential AI impact on lower-skilled positions.
- Bloomberg's Milan Bureau Chief Tommaso Ebhart previews the 2026 Winter Olympics in Milan and the Alps.
- Venues are largely pre-existing to reduce costs, with some new construction planned for Milan.
- The games will be spread across Northern Italy, with Milan hosting the opening ceremony.
- The 2026 Winter Olympics has geopolitical implications, including an agreement for US ICE agents to operate within US consulates despite initial protests.
- Italian Prime Minister Giorgia Meloni navigates the geopolitical landscape, aligning with Trump on some issues while differing on others.
- Climate change poses a significant challenge, impacting snowfall in the Alps and necessitating the use of artificial snow.
- Sustainability efforts include reusing existing venues from the 2006 Turin Olympics, with games expected to generate 5 billion Euros in revenue and investment.
- Japan is preparing for a general election on February 8th, with Prime Minister Takeichi's Liberal Democratic Party expected to increase its seats.
- The snap election is a gamble to capitalize on high approval ratings and project a more assertive image for Japan amidst regional security concerns.
- The party proposes a temporary two-year cut on the 8% food tax, a move that could impact government revenue.
- Candidate Takaichi aims to raise defense spending to 2% of GDP, aligning with calls from US allies.
- Japan is experiencing a record number of foreign workers and a significant increase in tourism.
- This influx is causing discomfort among some Japanese voters, particularly due to rising living costs.
- Tourism has been a significant growth driver for Japan's economy, especially since the Koizumi and Abe administrations.
- A "very hot" CPI reading for Q4 2025 showed a trimmed mean measure of 0.9% quarter-on-quarter and 3.4% year-on-year.
- This exceeded the Reserve Bank of Australia's (RBA) 2-3% target band, leading to market speculation about a potential rate hike.
- Inflation drivers include increases in "administered prices" such as electricity and property rates.
- James McIntyre suggests an RBA rate hike could suppress private sector recovery, noting potential for current inflation spikes to be transitory.