Introduces Kevin Dunn to discuss UK jobs data and BOE policy implications.
Host
Kevin Dunn
Today's UK jobs data really opens the door for a March BOE cut. Wage growth filtering through to services inflation is a key indicator.
Asks about confidence in reaching 2% UK inflation by year-end.
Host
Kevin Dunn
Yes, I think there is confidence. We have a weaker growth outlook, lackluster GDP and consumer spending, and underlying inflation pressure is easing.
Asks about the US labor market and Fed mandate.
Host
Kevin Dunn
US employment is looking lackluster. Headline payrolls overshot, but details show jobs growth concentrated in healthcare/social assistance, not broad-based. This leads to concern about a K-shaped recovery.
Asks about drivers and direction for gold.
Host
Kevin Dunn
Gold direction is exceptionally choppy this year. The main driver is structural demand from emerging market central banks, a trend that will stay in place.
Asks about fiscal impulse in Japan and JGB rally.
Host
Kevin Dunn
Prime Minister Takaichi had a perception issue. The details of the budget and plans for fiscal year 2026 are actually very conservative, with some tax hikes people aren't talking about. The fiscal outlook is not that dramatic; debt-to-GDP continues to decline.