Nvidia reported strong Q2 earnings on Wednesday, beating Wall Street expectations with revenue of $46.7bn, up 56% year-over-year. Despite the impressive numbers, shares dipped nearly 3% in after-hours trading, as data center revenue came in slightly below forecasts. CEO Jensen Huang emphasized continued AI momentum, calling China a $50bn opportunity and highlighting demand for next-gen chips like Blackwell and Rubin, after coming to an agreement with the US government over exports of the H20 chip. Nvidia also raised its Q3 revenue outlook to $54bn, signaling confidence in future growth. The company’s dominance in AI infrastructure continues to drive investor optimism, even amid geopolitical and supply chain challenges.
Nvidia also raised its Q3 revenue outlook to $54bn, signaling confidence in future growth.
Oil prices continued their decline this week, partly due to new U.S. tariffs on Indian exports, which doubled to 50% in response to India’s continued purchases of discounted Russian crude. As the world’s third-largest oil consumer, India’s shifting demand raised concerns about global supply dynamics. Although Indian refiners briefly paused Russian imports, they quickly resumed purchases, suggesting limited impact. The tariffs added uncertainty to energy markets, with Brent and WTI crude both falling slightly. This move reflects broader US efforts to pressure countries maintaining energy ties with Russia, potentially reshaping global oil flows and trade relationships.
Oil prices continued their decline this week, partly due to new U.S. tariffs on Indian exports, which doubled to 50% in response to India’s continued purchases of discounted Russian crude.
UK government borrowing costs have surged this week, with 30-year gilt yields hitting 5.64% on Wednesday, the highest level since 1998. This sharp rise reflects investor concerns over persistent inflation, fiscal pressures, and reduced demand for long-term UK debt. Defined benefit pension schemes and central banks, once major buyers, are pulling back, while quantitative tightening has further strained demand. Chancellor Rachel Reeves faces mounting pressure ahead of the autumn budget, with some analysts predicting she may need to raise up to £27bn to plug fiscal gaps. The spike in yields signals a decisive shift from the ultra-low borrowing era and underscores the UK’s fragile fiscal position.
Our specialist's final thought
"Chancellor Rachel Reeves faces mounting pressure ahead of the autumn budget, with some analysts predicting she may need to raise up to £27bn to plug fiscal gaps. The spike in yields signals a decisive shift from the ultra-low borrowing era and underscores the UK’s fragile fiscal position."
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