Bloomberg Daybreak: Asia Edition APAC Equity Markets Follow US Tech Stocks Lower
Jan 8, 2025
Helen Zhu, Managing Director and Chief Investment Officer at NF Trinity, shares her expertise on financial markets and investment strategies. Peter Chung, Head of Research at Presto Research, discusses the latest trends in the cryptocurrency market. They dive into the recent decline of NVIDIA shares and its impact on AI valuations. Highlights also include navigating U.S. inflation and its effects on global markets. Additionally, they explore Bitcoin's rising role in finance, with a bold prediction of its price soaring to $210,000 by 2025.
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AI Expectations and Volatility
- NVIDIA's stock dropped due to CEO Jensen Huang not mentioning the next-gen chips at CES.
- AI expectations are now so high that even minor disappointments can cause significant stock fluctuations.
Inflation Concerns and Policy Uncertainty
- U.S. economic news sparked concerns about persistent inflation, leading to bets against aggressive Fed rate cuts.
- This concern stems from both current strong economic data and potential future impacts of Trump's trade and immigration policies.
Inflation's "New Normal"
- The "new normal" inflation rate will likely be higher than before due to structural shifts like deglobalization.
- AI-driven productivity increases could offset this, but their impact is still hard to quantify.