One of the aims of my weekly updates is to try and make sense of what’s going on around the world. We do our best to decant news in an easy-to-understand way. I’m not often lost for words, but I’m struggling this week to understand how a banana strapped to a wall with duct tape, sold for £5 million.
Thank goodness my remit is orientated around broader macro issues and the markets. They are easier to understand through my lens!
Onto more serious matters, the dial has been turned with regard to the weaponisation of the conflict in Ukraine, but despite the heightened uncertainty this hasn’t materially affected investment markets. There is a lot of conjecture out there regarding Trump and his impact on globalisation, but we have to be careful about extrapolating assumptions.
In this week’s Market Update, we will cover:
- Nvidia is in good shape
- The risks of being too gloomy around tariffs
- Three market uncertainties
- China’s time to step up
- Another debt crisis for Europe?
- Yet the Greeks are resplendent!
- Inflation in the UK rises above 2% again
- Is the UK a tariff haven?
- The last word from JPMorgan Asset Management
Nvidia is in good shape
Revenue for the quarter nearly doubled from a year ago
Nvidia said its latest generation of chips are in “great shape” as the world’s most valuable company reported another strong quarter of revenue growth thanks to high demand for the infrastructure that has underpinned the artificial intelligence (AI) boom. Revenue for the quarter to the end of October nearly doubled from a year ago, up 94% to $35.1 billion (ft.com).
However, the growth for the quarter was at a slower pace from the previous quarter but still well above analysts’ expectations for $33.25 billion. Nvidia’s revenue guidance for the current quarter of $37.5 billion, plus or minus 2%, met consensus expectations of $37 billion. Still, Wall Street expectations for Nvidia, whose growth has skyrocketed on the intense hype surrounding AI are lofty, and the shares were down by almost 3% in after-hours trading.
Continues…
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