The UK economy remains in a delicate balance as, in a speech this week, Bank of England Governor Andrew Bailey warned of “moderate” growth ahead, citing persistent inflation and global uncertainty. While GDP grew 0.7% in Q1, Bailey attributed this stronger than expected figure to temporary factors such as pre-tariff trade surges and frontloading of activity ahead of tax increases. April’s 0.3% contraction and weakening business investment suggest a slowdown is underway. Consumer spending remains cautious despite rising household incomes, with savings rates staying unusually high. Bailey reaffirmed the BoE’s commitment to keeping interest rates at 4.25% until inflation risks ease further, with the next decision due in August.
Bailey reaffirmed the BoE’s commitment to keeping interest rates at 4.25% until inflation risks ease further, with the next decision due in August.
With UK takeover action focused on the mid to small-cap end of the market so far this year, it looked like we might get our first large-cap merger activity, as speculation over a possible bid by Shell for rival BP gathered pace following a report by the Wall Street Journal on Wednesday. In reaction, Shell denied rumours of a BP acquisition, saying they had “no intention” of making an offer for the company, effectively precluding the company from making a bid for at least six months.
In other corporate news, Associated British Foods threatened to shutter the UK’s largest bioethanol plant without government support—underscoring tensions around government strategy as the UK-US trade deal agreed in May threatens to flood the UK market with US ethanol.
Meanwhile, Nvidia has reclaimed the title of the world’s most valuable public company after its share price surged over 4% to a record high of $154.31 in trading on Wednesday.
Meanwhile, Nvidia has reclaimed the title of the world’s most valuable public company after its share price surged over 4% to a record high of $154.31 in trading on Wednesday. This rally lifted its market capitalisation to approximately $3.77 trillion, overtaking Microsoft and Apple. The surge follows CEO Jensen Huang’s presentation of new AI technologies and bullish investor sentiment around Nvidia’s dominant role in powering AI infrastructure.
Our specialist's final thought
"Despite concerns over export restrictions to China, Nvidia’s data centre division continues to drive explosive growth, reinforcing its central role in the AI boom."
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