FT News Briefing UK inflation creeps back
Nov 21, 2024
UK inflation surged to 2.3% in October, driven by rising energy prices, putting pressure on the Bank of England's interest rate strategies. Nvidia's revenue nearly doubled thanks to booming AI chip demand. Disgraced financier Bill Hwang received an 18-year prison sentence for fraud. Meanwhile, China's government is bracing for potential trade tensions if Trump returns to power, enacting strategic countermeasures to protect its economy from proposed tariffs. The global financial landscape is shifting rapidly amid these tensions.
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NVIDIA's Mixed Q3
- NVIDIA's Q3 revenue doubled year-over-year, exceeding predictions, but the growth was slower than the previous quarter.
- This slowdown may be attributed to the rocky start of NVIDIA's Blackwell chips, facing technical issues and overheating concerns.
UK Inflation Surge
- UK inflation rose significantly in October, from 1.7% to 2.3%, primarily due to increased energy prices and goods costs.
- This rise complicates the Bank of England's interest rate strategy, despite an overall disinflationary trend.
Budget's Inflationary Impact
- The recent UK budget is expected to increase inflation by about 0.5% at its peak and GDP by roughly 0.75%.
- Uncertainty remains around the impact of the £26 billion increase in national insurance contributions for employers.