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Good morning and welcome again to FirstFT Asia. In at this time’s publication:
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Nvidia’s quarterly outcomes
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US accused of covert affect operations in Greenland
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India’s judicial backlog
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The “ninja stealth rally” driving Japanese shares
We begin with synthetic intelligence chipmaker Nvidia’s hotly anticipated outcomes, which have been launched yesterday amid market jitters about whether or not the momentum round AI can proceed. Right here’s what to know.
Strong outcomes: Nvidia reported income of $46.7bn for the quarter to July 28, up 56 per cent yr on yr and barely above consensus estimates of $46.5bn, in line with Seen Alpha. The corporate mentioned it anticipated $54bn in gross sales for the present quarter, plus or minus 2 per cent, in contrast with expectations of $53.8bn.
Why Nvidia issues: The $4tn tech big’s position in designing the superior chips which are used to develop and run AI fashions corresponding to ChatGPT has propelled it to turn into the world’s most dear group by market capitalisation and made it a bellwether for the AI growth. Its shares took successful final week throughout a widespread sell-off in firms linked to AI, after a destructive report on its sensible functions and feedback by OpenAI chief government Sam Altman about buyers overhyping the expertise.
China outlook: Nvidia didn’t issue any China gross sales into its outlook, one thing some buyers had hoped to see after it reached a cope with the Trump administration to renew gross sales to the nation. Beijing responded with a political backlash in opposition to the chip, leaving analysts with little visibility into how a lot Nvidia will promote this yr as wider commerce negotiations between Washington and Beijing drag on. Learn the complete story.
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Chinese language AI: China’s chipmakers are searching for to triple the nation’s whole output of AI processors subsequent yr, as Beijing races the US to develop probably the most superior AI.
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Extra AI information: OpenAI’s company restructuring is prone to slip into subsequent yr, because the ChatGPT maker negotiates over key phrases of its future relationship with Microsoft.
Right here’s what else we’re preserving tabs on at this time:
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Financial knowledge: Japan publishes July commerce statistics and Malaysia experiences producer costs for the month,
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Financial coverage: Central banks in South Korea and the Philippines announce their fee selections.
5 extra high tales
1. Punitive US tariffs on India over its purchases of discounted Russian oil took impact yesterday, dealing a blow to the world’s fastest-growing giant economic system and deepening a rift between Washington and New Delhi. The 25 per cent levy, which got here on high of a 25 per cent “reciprocal” tariff, raised duties on India to among the many highest on the earth.
2. Denmark has summoned the highest US diplomat within the nation over experiences that Americans with alleged hyperlinks to President Donald Trump have been conducting covert affect operations in Greenland. Lars Løkke Rasmussen, Denmark’s international minister, mentioned that there have been “foreign actors” trying to affect the way forward for Greenland and that each one such efforts have been “unacceptable”.
3. A Pentagon unit liable for boosting the adoption of latest industrial applied sciences by the US navy is getting ready to deploy officers to dozens of allied nations, as Washington struggles to counter China’s navy build-up by itself. The plan contains sending a consultant to Taiwan this yr to hurry up collaboration on drones, in addition to posting an official in Japan.
4. Mitsubishi Company has blamed excessive turbine prices for its withdrawal from three main offshore wind tasks in Japan, in a retreat that marks a setback for the nation’s vitality self-sufficiency drive. The tasks have been a part of a push by Japan to undertake extra renewable energy however the nation’s offshore wind adoption has been tougher than different nations. Right here’s why.
5. Argentine President Javier Milei was evacuated from an election marketing campaign occasion yesterday after stones have been thrown at his motorcade amid public anger over allegations of corruption in his administration. A presidential spokesperson mentioned there have been no accidents and blamed the assault on militants from the Peronist opposition. Learn the complete story.
Information in-depth
Xiaomi, as soon as dismissed as an “assembly workshop”, has overtaken rivals to turn into the world’s third-largest smartphone vendor. The Chinese language group is now setting its sights on turning into a high-tech producer, producing all the pieces from rice cookers to robotic vacuums and a vastly in style premium automobile. Because it challenges Apple and Tesla, the gadget maker has impressed loyal followers who flock to its Beijing electrical car manufacturing unit day-after-day to look at the manufacturing line churn out a automobile each 76 seconds.
We’re additionally studying . . .
Chart of the day
A four-month “ninja stealth rally”, which started shortly after the panic set off by Trump’s “liberation day” tariff bulletins, has pushed Tokyo’s fairness market to document highs. Japanese shares have gained as international buyers diversify away from China and the US and guess {that a} decade of structural change has remodeled Japan’s company boardrooms.
Take a break from the information . . .
After an eight-year closure and a reputed $2bn renovation, New York’s Waldorf Astoria resort is glittering once more. A mushy launch in July noticed the opening of its new eating places, foyer bar and visitor rooms, whereas the entire resort — ballrooms, spa and all — formally opens on September 1. The FT’s structure critic Edwin Heathcote was among the many first to remain within the revamped resort. Right here’s his evaluate.
