International News 09/09
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Nvidia's market capitalisation plummets to US$279 billion, the biggest drop for a US company
Nvidia, a leading AI company, saw its share value decline significantly, with a 9.5% drop representing the largest one-day decline ever for a US company. This follows a period of caution among investors regarding the future of artificial intelligence, coinciding with a broader market sell-off and the release of somewhat lacklustre economic data. The PHLX chip index also saw its largest one-day decline since 2020, with a drop of 7.75%. Nvidia's quarterly forecast did not meet the high expectations of investors, who had previously driven a rapid increase in the company's share price. According to Todd Sohn, an ETF strategist at Strategas Securities, there has been an imbalance in the investment inflow into the technology and semiconductor sectors over the past year. In addition to Nvidia's decline, Intel shares fell nearly 9% following reports that the company's CEO and other key executives intend to present a restructuring plan to the board of directors. The current market volatility is also attributable to concerns about the slow returns on investment.
Philippine Annual Inflation Slows to 3.3% in August 2024
The statistics agency has announced that annual inflation in the Philippines slowed in August, due to a moderation in the prices of food and non-alcoholic beverages. The consumer price index (CPI) for August saw an increase of 3.3% compared to the same period last year, a figure that is lower than the 4.4% increase recorded in the previous month. The average inflation rate for the first eight months of the year was recorded at 3.6%. This is in line with the central bank's forecast range of 3.2% to 4.0% for August's inflation rate. The economists surveyed by Reuters also forecast an inflation rate of 3.6%. The core inflation rate, which excludes volatile food and energy prices, was recorded at 2.6% in August.
The Canadian central bank has announced a further reduction in the interest rate by 25 basis points.
In response to the weak economic growth, the Bank of Canada has reduced interest rates by 25 basis points to 4.25%. Bank of Canada Governor Tiff Macklem indicated that this larger cut was anticipated in light of the country's weakening economy. This is the third consecutive occasion on which the central bank has reduced interest rates, in anticipation of further easing in response to inflationary pressures. Despite the decline in overall inflation to a 40-month low of 2.5% in July, it remains above the Bank of Canada's target of 2.0%. The economy is currently performing below expectations, with second-quarter growth, although stronger than anticipated at 2.1%, slowing in recent months. Economists suggest that growth may be lower than the previously projected 2.8% for the third quarter. However, Macklem has expressed optimism that economic growth will improve in the second half of the year.
https://internasional.kontan.co.id/news/bank-sentral-kanada-kembali-pangkas-suku-bunga-25-bps