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Apple’s shipment growth remained steady year-on-year in the Q2, securing the company a second-place rank by market share in Q3.
Following Apple, Huawei held the third position with a 15.3% market share, as per reported data. Despite this, Huawei’s smartphone shipments in China saw a significant increase of 42% year-on-year.
Following a 17.8% decrease in August 2024, profits in September 2024 plummeted by 27.1% from the previous year, reportedly the most significant drop since the 34.9% decline in March 2020, according to analysis.
In response, Chinese officials have intensified efforts to stimulate growth.
This rate hike surpasses the 1% (100 basis-point) rise anticipated by analysts and sets the bank’s benchmark rate at its highest level since February 2003, as reported by analysts.
Previously, the key rate had been raised by 1% (100 basis points) to 19% in September 2024.
It was reported that the annual seasonally adjusted inflation hit an average of 9.8% in September 2024, up from 7.5% in August 2024.
It is now anticipated the rate will stick at around the 8.0% – 8.5% range for the remainder of 2024. This is running above a July 2024 forecast of around 6.5% – 7.0%.
See more central bank interest rate moves here
Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.
Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.
Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.
Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.
This figure exceeded the anticipated £1.17 billion net profit from analysts and marked a 23% increase from the same quarter in 2023.
The revenue for the quarter was reported at £6.5 billion, just over the predicted £6.39 billion.
Shares of Barclays rose by 3.5% as of 08:45 BST – hitting their highest point since October 2015 according to reports.
The bank’s return on tangible equity improved to 12.3% from the previous quarter’s 9.9%, while its CET1 ratio, a key solvency metric, increased to 13.8% from 13.6%.
Barclays had earlier this year unveiled a strategic revamp aimed at reducing expenses (cost cutting), enhancing returns for shareholders, and securing long-term financial stability.
This shift has emphasized domestic lending and scaled back the investment banking division’s costs. Part of this new strategy involved acquiring the retail banking operations of Tesco Bank in the UK.
Common Equity Tier 1 (CET1) is a key element of Tier 1 capital, consisting mainly of common stock held by banks or other financial institutions. Introduced in 2014, CET1 serves as a capital measure designed to safeguard the economy from financial crises. Banks must adhere to the minimum CET1 ratio requirements relative to their risk-weighted assets (RWAs), as specified by their financial regulators.
Barclays Bank was formally established on November 17, 1690. It traces back to goldsmith bankers John Freame and Thomas Gould in London.
The name ‘Barclays’ came into the business in 1736 when James Barclay, who married John Freame’s daughter, joined the partnership.
As of 2024, the United Kingdom’s national debt has reached a staggering £2,685.6 billion, an amount equivalent to the nation’s GDP. This surge in debt, driven by persistent borrowing, has sparked significant economic and political debate.
The UK’s debt levels have fluctuated over time, influenced by wars, recessions, and policy decisions. However, the current debt level marks a significant peak not seen since the early 1960s.
The Financial Crisis of 2008 saw the debt-to-GDP ratio rise sharply as the government borrowed heavily to stabilize the banking sector and stimulate the economy. More recently, the COVID-19 pandemic necessitated extensive government borrowing to fund health services, furlough schemes, and business support measures, exacerbating the debt situation.
Government borrowing, or public sector net borrowing, is the amount by which government expenditures exceed its revenues. This borrowing is essential for funding various public services, infrastructure projects, and welfare programs.
While borrowing can be a tool for stimulating economic growth, especially during downturns, it also raises concerns about fiscal sustainability and the burden on future generations.
High levels of national debt can have profound economic implications. On the one hand, government spending can stimulate economic activity, create jobs, and drive growth. However, excessive borrowing can lead to increased interest payments, diverting resources from essential services like healthcare and education.
Additionally, high debt levels can reduce investor confidence, potentially leading to higher borrowing costs for the government and businesses.
The UK government employs various strategies to manage its debt. These include issuing government bonds to investors, which provide a relatively low-cost means of borrowing. The Bank of England also plays a crucial role, particularly through its monetary policies, such as setting interest rates and implementing quantitative easing programs.
The government’s fiscal policy, which includes tax and spending measures, is another key component in managing the debt.
Looking ahead, the UK’s debt trajectory will depend on several factors, including economic growth rates, government policy decisions, and global economic conditions.
While reducing the debt burden is a priority, balancing fiscal responsibility with the need for economic stimulus remains a delicate act. Policymakers must navigate this complex landscape to ensure long-term economic stability and prosperity for future generations.
Since the 1950s, UK debt has gone through several cycles. Post-World War II, debt was high due to reconstruction efforts.
The 1980s saw a decline in debt, thanks to privatisation and reduced public spending. However, the 2008 financial crisis caused a sharp increase, followed by more borrowing during the COVID-19 pandemic, reaching 100% of GDP in 2024.
The government raises funds by issuing financial instruments known as bonds. A bond represents a commitment to repay borrowed money in the future, typically with periodic interest payments until maturity.
UK government bonds, or ‘gilts’ are generally regarded as secure investments, carrying minimal risk of non-repayment. Institutions both within the UK and internationally, including pension funds, investment funds, banks, and insurance companies, are the primary purchasers of gilts.
Additionally, the Bank of England has purchased substantial amounts of government bonds in the past as an economic stimulus measure through a mechanism known as ‘quantitative easing’.
The government’s borrowing fluctuates monthly. For example, in January, when tax returns are filed, there’s typically a surge in revenue as many pay a significant portion of their taxes at once. Therefore, it’s more informative to consider annual or year-to-date figures.
In the financial year ending March 2024, the government borrowed £121.9 billion. The latest data for September 2024 indicates borrowing at £16.6 billion, up by £2.1 billion compared to September 2023.
The national debt refers to the total amount owed by the government, which stands at approximately £2.8 trillion. This figure is comparable to the gross domestic product (GDP) of the UK, which is the total value of goods and services produced in the country annually.
The current debt level has more than doubled since the period from the 1980s up to the 2008 financial crisis. Factors such as the financial crash and the Covid pandemic have escalated the UK’s debt from its historical lows to where it is now.
However, when considering the economy’s size, the UK’s debt is relatively low compared to much of the previous century and to that of other major economies.
As the national debt increases, so does the interest that the government must pay. This additional cost was manageable when interest rates were low throughout the 2010s, but it became more burdensome after the Bank of England increased interest rates.
The government’s interest payments on the national debt are variable and reached a 20-year peak in early October 2023. Approximately a quarter of the UK’s debt is tied to inflation, meaning that payments increase with rising inflation.
This situation led to a significant rise in the cost of debt service, though these payments have begun to decrease. If the government allocates more funds to debt repayment, it could result in reduced spending on public services, which were the original reason for the borrowing.
In conclusion, while the UK’s debt and borrowing levels present challenges, strategic management and informed policy decisions will be crucial in navigating the path forward.
The UK debt total vs GDP is now as of 2024 all but 100%
However, Tesla’s revenue for that period, up 8% year on year, marginally missed expectations. “Vehicle growth” will hit up to 20%-30% next year, said CEO Elon Musk, thanks to “lower cost vehicles” and the “advent of autonomy.” Apparently, this was presented as a ‘best guess’.
Profit margins reportedly received a boost from $739 million in automotive regulatory credit revenue during the quarter. Automakers must acquire a certain number of regulatory credits annually. Those unable to meet the requirement can buy credits from companies like Tesla, which has a surplus due to its exclusive production of electric vehicles.
Automotive revenue reportedly rose 2% to $20 billion, up from $19.63 billion in the same quarter the previous year, and has remained roughly stable since late 2022. Energy generation and storage revenue reportedly surged 52% to $2.38 billion, while services and other revenue, which includes income from non-warranty Tesla vehicle repairs, increased by 29% to $2.79 billion.
The U.S. 10-year Treasury yield increased by over 0.030% to approximately 4.24%. The benchmark rate peaked at 4.26% during the session, its highest since July 2024. This surge followed a 12-basis point leap on Monday 21st and a rise above 4.2% on Tuesday 22nd.
The U.S. 2-year Treasury yield also rose, reaching 4.06%, up by roughly 0.030%. Earlier in the day, it achieved a high of 4.072%.
Elevated Treasury yields are exerting pressure on the equity market, causing U.S. stock futures to drop. This downturn follows the S&P 500‘s first consecutive loss since the beginning of September.
Despite a half-point reduction by the Federal Reserve in September 2024, strong economic indicators and concerns about the deficit have contributed to the increase in the 10-year Treasury yield.
Traders are worried that the central bank might be reluctant to lower rates further, even though the Fed predicted additional cuts amounting to half a point by the end of the year.
The jury is out.
The current Dalai Lama, Tenzin Gyatso, was born in 1935 and recognised as the 14th Dalai Lama at the age of two. He has written extensively on topics such as ethics, mindfulness, and the importance of kindness.
He was awarded the Nobel Peace Prize in 1989 for his nonviolent struggle for the liberation of Tibet and his efforts to resolve conflicts through peaceful means. His teachings often emphasise the importance of cultivating inner peace and compassion to create a better world.
In a report published Tuesday, The IMF has reduced its growth forecast for China this year to 4.8%, which is 0.2 percentage points below its July projection. For 2025, the IMF reportedly anticipates growth to be at 4.5%.
The IMF has pointed out that the unexpected contraction of China’s property sector is among several factors posing risks to the global economic outlook.
‘The real estate market could face worsening conditions, potentially leading to further price declines amid a drop in sales and investment’, the report indicated.
The report referenced past property crises in countries such as Japan in the 1990s and the U.S. in 2008, suggesting that if China’s situation is not managed, property prices may fall even more.
According to the IMF‘s World Economic Outlook, this could undermine consumer confidence, leading to lower household spending and domestic demand.
The fund’s performance was attributed to a stock market surge due to the decline interest rates.
The overall return for the quarter stood at 4.4%, which was 0.1 percentage points below the return of its benchmark index.
MD Kristalina Georgieva praised the efforts of major central banks in controlling inflation but pointed out that such successes were not widespread.
Additionally, Georgieva cautioned that international trade is no longer the growth catalyst it used to be, emphasizing the increase in restrictive policies across numerous economies.
“It is successful major economies that have done really well … and there are pockets in the world where inflation is still a problem,” she reportedly said.
“The impact of higher prices remains, and it is making many people in many countries feel worse off and angry.”
See articles here on the problems of world debt.
This report also indicated that some buyers were holding off on purchases, awaiting details on tax revisions from the new government’s forthcoming budget.
The increase in asking prices was a just 0.3% for October 2024, significantly lower than the typical 1.3% monthly rise for this time of year, according to property website Rightmove.
There was a 12% rise in the number of homes listed for sale compared to the same period last year, marking the highest number per estate agent since 2014.
Despite the increase in supply, the property market’s overall activity remained robust, with a continued uptick in buyer demand. Year-on-year, prices saw a 1.0% increase.
The People’s Bank of China (PBOC) has announced a reduction in the one-year loan prime rate (LPR) to 3.1% and the five-year LPR to 3.6%.
The one-year LPR affects corporate and most household loans in China, whereas the five-year LPR is a reference for mortgage rates.
This adjustment was anticipated. The governor of China’s central bank reportedly on Friday 18th October 2024 hinted at a forum in Beijing that the loan prime benchmark rates would decrease by 0.20% to 0.25%.
In 2024, gold experienced a surge of over 35%, reaching new record highs.
This increase was propelled by the anticipation of additional Federal Reserve rate reductions following a half-percentage-point cut in September 2024, coupled with persistent geopolitical uncertainties stretching from Europe to the Middle East.
Delegates at the London Bullion Market Association‘s annual meeting earlier this week predicted that gold prices could reach $2,941 per troy ounce in the next 12 months.
As investors continue to seek out a safe haven for their money, the price of gold will remain elevated.
Gold, which yields no interest in its own right, tends to gain in value when interest rates are cut and when geopolitical tensions heat up.
In terms of quarterly growth, the third quarter experienced a 0.9% increase, which is higher than the 0.7% seen in the previous quarter.
Additional data released on Friday 18th October 2024, including retail sales and industrial production, also exceeded expectations, indicating a positive outlook for the world’s second-largest economy.
At its October meeting, the central bank decreased the deposit rate by 0.25%. This decision followed a slowdown in the euro area’s price increases to 1.8% in September 2024, falling below the central bank’s target of 2%.
The EU interest rate is now: 3.25%
As Amazon’s cloud computing subsidiary, AWS has an ever-growing demand for clean energy, particularly as it expands into generative AI. This agreement aligns with Amazon’s journey towards net-zero carbon emissions.
Amazon joins other major tech companies like Google and Microsoft in turning to nuclear power to meet the increasing energy needs of data centres.
The quote regarding Hatshepsut’s appointment comes from inscriptions and was designed to legitimise her rule, often illustrating the divine will of the Gods or proclamations from her father, Thutmose I.
Hatshepsut was adept at presenting her reign within the context of divine support and royal succession. “This daughter of mine, Hatshepsut… I have named her successor to my throne… She shall guide you… Heed her words and gather under her command.”
Hatshepsut, one of the most successful pharaohs of Egypt, ruled during the 18th Dynasty from approximately 1479 to 1458 BCE.
Her tenure is noted not just for its duration but also for the prosperity and tranquility she established in Egypt. As a rare female pharaoh, Hatshepsut had to affirm her power in a patriarchal society. She frequently portrayed herself with pharaonic symbols of authority, like the false beard and headdress, to reinforce her legitimacy. “I have raised up what was in ruins. I have restored that which was destroyed,” she declared, underscoring her role in reviving Egypt’s splendour.
During her rule, Hatshepsut initiated grand construction projects, leaving a heritage of remarkable monuments and temples. Her most famous accomplishment is the mortuary temple at Deir El-Bahari, an architectural wonder that stands as a testament to her foresight and governance. Hatshepsut also rejuvenated Egypt’s economy by developing extensive trade networks. Her notable expedition to Punt, a region thought to be resource-rich, yielded precious items like myrrh, frankincense, and exotic wildlife.
This voyage was eternally captured in the reliefs of her temple, showcasing her achievements and contributions to Egypt’s affluence. In her inscriptions, Hatshepsut stated, “My authority was asserted in this land and to its farthest reaches… My gaze was southward, I explored the edges of the mountains, all my eyes wished to see was accomplished.”
This statement mirrors her broad vision and ambition to expand Egypt’s reach. Despite her accomplishments, Hatshepsut’s memory faced attempts at erasure after her demise. However, contemporary archaeology has revealed her significant influence.
Today, Hatshepsut is celebrated as an innovative ruler whose reign made a lasting impression on ancient Egyptian history.
AI systems, particularly generative AI, necessitate substantial computational power, leading to significant energy use. Conventional energy sources might not meet these growing demands.
Numerous tech firms have pledged to lower their carbon emissions. Nuclear power, a low-emission energy source, supports these environmental commitments.
Nuclear energy offers a consistent and uninterrupted power supply, essential for data centres that operate around the clock.
Progress in nuclear technologies, such as small modular reactors (SMRs), has enhanced the feasibility and appeal of nuclear power for extensive use.
For example, Google has entered into an agreement with Kairos Power for electricity from small modular reactors to bolster its AI operations. In a similar vein, Microsoft has collaborated with Constellation to refurbish an inactive reactor at the Three Mile Island nuclear facility.
These collaborations mark a notable transition in the energy strategies of the tech sector, as they pursue dependable, eco-friendly, and robust power solutions to support their AI initiatives.
This indicates that inflation, which is the rate at which prices increase over time, is currently below the Bank of England’s target of 2%, potentially leading to further reductions in interest rates next month.
The Office for National Statistics (ONS) reported that petrol and diesel prices saw a notable decrease, falling by 10.4% in September 2024compared to the same month the previous year.
Additionally, the cost of fares for domestic, European, and long-haul flights contributed to the lower inflation rate. While fares typically decrease after the summer peak, this year they have reduced more than usual.
With inflation dropping below economists’ expectations, the markets are anticipating a cut in interest rates at the Bank of England’s upcoming meeting in November 2024. The present rate stands at 5%, and a reduction of 0.25% is now deemed highly probable.
The CSI 300 index in Mainland China fell to close at 3,855.99, and the Hang Seng index in Hong Kong decreased by 3.67% to finish at 20,318.79.
After the markets closed on Monday 14th October 2024, China reported disappointing trade figures for September 2024, with exports increasing by only 2.4% from the previous year and imports rising a mere 0.3%, both significantly below expectations.
Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Minister Jonathan Reynolds headed the one-day event at London’s Guildhall, with an attendance of approximately 200 executives from both the UK and abroad.
Notable attendees were former Google Chairman Eric Schmidt, Goldman Sachs CEO David Solomon, BlackRock CEO Larry Fink, and GSK CEO Emma Walmsley. Poppy Gustafsson, the newly appointed Investment Minister and co-founder of the British cybersecurity company Darktrace, were also present to advocate for the UK as a favourable business environment.
The UK government unveiled a relaxation of regulations and announced investment deals worth billions of pounds in sectors such as artificial intelligence, life sciences, and infrastructure, while Starmer proclaimed it’s ‘a great moment to back Britain.’
‘We will rip out the bureaucracy that blocks investment and we will make sure that every regulator in this country take growth as seriously as this room does,‘ Starmer reportedly told delegates.
UK Prime Minister Keir Starmer on Monday 14th October 2024 vowed to slash regulatory red tape to boost investment in the country.
“We’ve got to look at regulation across the piece, and where it is needlessly holding back investment … mark my words, we will get rid of it,” he reportedly told delegates at the UK’s International Investment Summit.
The government on Sunday 13th October 2024 announced the launch of a new industrial strategy, designed to focus on eight “growth-driving sectors.”
The prime minister reportedly restated that growth was the “No. 1 test of this government,” and reiterated plans for the U.K. to become the fastest-growing G7 economy.“
Starmer also outlined stability, strategy, regulation and improving Britain’s global standing as “four crucial areas” in his pitch for Britain.
“Private sector investment is the way we rebuild our country and pay our way in the world,” Starmer said
In a panel discussion with Starmer, Google’s ex-CEO Eric Schmidt expressed his surprise upon learning that the Labour party had shifted to ‘strongly’ support growth.
Schmidt is eager to see the execution of this approach and encouraged the government to increase investment in artificial intelligence to fulfill broader growth objectives.
Tech giants such as Microsoft, Meta, Google, and Amazon are acquiring Nvidia’s GPUs in large volumes to create extensive AI computing clusters.
Nvidia, with a market capitalisation of around $3.4 trillion, ranks as the second most valuable publicly traded company in the U.S., trailing behind Apple, which has a market cap of approximately $3.55 trillion.
And to think… just 6 weeks ago Nvidia hit the news with this headline: Nvidia $279 billion market cap wipeout — the biggest in U.S. history for just ONE company.
Oh, the volatility of tech stocks, don’t you just love it?
The company’s stock rose by 2.4% to close at $138.07, exceeding the previous high of $135.58 set on 18th June 2023. The shares have increased by nearly 180% this year and have experienced a more than ninefold increase since early 2023.
Regarded as the leading supplier in the AI revolution, Nvidia has gained significantly from the generative AI surge initiated by OpenAI’s ChatGPT release in November 2022. Nvidia’s GPUs are instrumental in developing and running sophisticated AI models, including those that operate ChatGPT and related platforms.
You can’t go far wrong when big players such as Microsoft, Meta, Google and Amazon are buying your stuff.
The S&P 500 climbed to 5,859.85, and the Dow Jones, composed of 30 stocks, increased by 201.36 points to 43,065.22.
Both indices achieved all-time highs and closed at record levels, with the Dow Jones surpassing 43,000 for the first time at the close of the session.
£60 billion was wiped off Tesla market cap
CEO Elon Musk showcased the Cybercab concept vehicle, announcing that it would be available for purchase at a price below $30,000.
Analysts reportedly commented that the event did not emphasise any immediate opportunities for Tesla, focusing instead on Musk’s long-term vision for fully autonomous driving.
At the ‘We, Robot’ event on Thursday 10th October 2024, CEO Elon Musk presented the Cybercab, a sleek, silver two-seater without steering wheels or pedals, underscoring his company’s goal to develop a fleet of self-driving vehicles and robots.
Musk expressed his hope for Tesla to start producing the Cybercab by 2027, though he did not specify the manufacturing locations. He reiterated that the Tesla Cybercab would be sold for less than $30,000.
Furthermore, he anticipated that Tesla’s Model 3 and Model Y electric vehicles would feature ‘unsupervised FSD’ operational in Texas and California by next year. FSD, standing for Full Self-Driving, is Tesla’s advanced driver assistance system, currently available in a supervised format.
Investors and analysts were underwhelmed by the event. Tesla shares fell.
Elon Musk is projected to become the world’s first trillionaire by 2027, as per a recent report by Informa Connect Academy. Among global billionaires, Musk is nearest to reaching the 13-figure threshold, with his wealth continuing to increase.