China Welcomes UK Leader as Starmer Balances Trump | The Pulse 1/28

Watch on YouTube ↗  |  January 28, 2026 at 12:07  |  48:42  |  Bloomberg Markets
Speakers
Tom Mackenzie — Anchor, Bloomberg
Alan Katz — Euro Chief, Bloomberg
Andrea — Bloomberg Opinion Columnist
Craig — Global Auto Czar, Bloomberg
Nela Richardson — Chief Economist, ADP
Jennifer McKeown — Chief Global Economist, Capital Economics
Annmarie Hordern — Reporter, Bloomberg
Robert Kaplan — Vice Chair, Goldman Sachs; former President, Federal Reserve Bank of Dallas

Summary

The Pulse covers UK Prime Minister Keir Starmer's visit to China to broaden trade ties without upsetting President Trump, alongside market focus on the Fed, ASML earnings, and the dollar. Economists discuss sticky inflation, AI's economic impact, and non-U.S. resilience. France's budget and political stability are assessed, while LVMH's weak sales and Tesla's auto trends highlight consumer and auto sector issues.

  • UK PM Starmer visits China to deepen trade ties while managing US relations.
  • Economists weigh Fed policy, sticky inflation, dollar weakness, and AI's economic impact.
  • ASML's record earnings and buyback revive optimism in the AI trade and semiconductors.
  • France survives no-confidence votes; budget progress supports French political stability and OAT spreads.
  • LVMH shares fall on sluggish holiday sales; jewelry remains a relative bright spot.
  • Tesla earnings awaited; core auto sales are weak as Musk emphasizes robots and robotaxis.
  • SpaceX reportedly targets a mid-June IPO amid planetary alignment jokes.
Ideas
Nela Richardson Chief Economist, ADP 2:46
Rest of world offers investment opportunity.
Nela Richardson says strong U.S. headline data are at odds with dollar weakness, which points to the rest of the world being more resilient and having investment opportunity as well.
Non-U.S. equities MED
Jennifer McKeown Chief Global Economist, Capital Economics 6:36
No strong alternative threatens dollar dominance.
Jennifer McKeown acknowledges some move away from U.S. assets, including China reducing holdings, but says there is no strong alternative at the moment. Europe lacks a commonly backed asset market, so the dollar's position and the position of U.S. assets are not really threatened.
UUP MED
Jennifer McKeown Chief Global Economist, Capital Economics 10:53
AI trade boosts Asian economies demand.
Jennifer McKeown says the AI boom is boosting demand and trade not just in the U.S. but also in Asian economies, which are getting a significant boost. As long as AI demand continues, it supports productivity, growth, and potentially lower inflation and interest rates.
AAXJ MED
Alan Katz Euro Chief, Bloomberg 17:20
French political stability supports OAT spread stability.
Alan Katz argues French political stability matters more than the country's large deficit for bond investors. The French-German spread blew out but has come back in and should be more stable for some time; declining rates and a narrowing spread make it easier for France to roll over its large debt.
French Government Bonds (OATs) MED
Andrea Bloomberg Opinion Columnist 21:06
LVMH faces broader luxury demand weakness.
Andrea says LVMH's sluggish holiday sales and 3% drop in leather goods organic sales reflect broader luxury market weakness. China is not getting worse but LVMH reports no improvement, and U.S. sales face tough year-ago comparisons, so the year is unlikely to be straightforward.
LVMH MED
Andrea Bloomberg Opinion Columnist 21:54
Jewelry outperforms weak broader luxury market.
Andrea says jewelry is doing very well and remains a resilient part of luxury even as the broader luxury market faces uncertainty from new designers and weak fashion demand.
Jewelry LOW
Tom Mackenzie Anchor, Bloomberg 42:34
ASML earnings show sustainable AI capex demand.
Tom McKenzie reports ASML's record fourth-quarter earnings, with sales near $16 billion doubling estimates, a buyback, and raised guidance. The CEO says customers see AI demand as sustainable and are aggressively building capacity, driving record bookings. JPMorgan says ASML could beat guidance and sees little not to like, with no signs the AI capex cycle will slow.
ASML HIGH
Tom Mackenzie Anchor, Bloomberg 42:51
AI capex remains sustainable for chips.
Tom McKenzie says the AI trade received a big vote of confidence from ASML's record earnings. The key is that customers see AI capex as sustainable and are aggressively building capacity, with no signs the cycle will slow, benefiting scalers, foundries, and the chip supply chain.
SMH MED
Craig Global Auto Czar, Bloomberg 45:05
Tesla core auto sales trend down.
Craig says Tesla's sales are moving in the wrong direction and its core business is not doing well. Elon Musk wants to focus on robots and robotaxis as the future, but current auto sales weakness remains the main issue. A Canada-China EV trade deal could offer a conditional positive, but risks Trump administration backlash.
TSLA MED
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This Bloomberg Markets video, published January 28, 2026, features Nela Richardson, Jennifer McKeown, Alan Katz, Andrea, Tom Mackenzie, Craig discussing Non-U.S. equities, UUP, AAXJ, French Government Bonds (OATs), LVMH, Jewelry, ASML, SMH, TSLA. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Nela Richardson, Jennifer McKeown, Alan Katz, Andrea, Tom Mackenzie, Craig  · Tickers: Non-U.S. equities, UUP, AAXJ, French Government Bonds (OATs), LVMH, Jewelry, ASML, SMH, TSLA