The latest economic news and market highlights from the UK and abroad.
The key takeaways
⤴️ Inflation jumps – UK inflation hit 2.3% in October, higher than expected (2.2%) and above last month’s 1.7% - mainly due to the rise in the energy price cap.
🛍️ Sales disappoint – UK retail sales fell 0.7% month-on-month in October, worse than the predicted 0.3% drop - likely reflecting Budget uncertainty affecting consumer confidence.
🥊 Nvidia beats – Nvidia’s earnings, once again, soared past estimates, with profits more than doubling year-on-year, proving the AI boom isn’t slowing down yet.
🔦 Google’s under the spotlight – while Nvidia continues to power on, Google faces heat. The US Department of Justice announced it's taking aim, to force the company to sell off its search engine, Chrome, to end internet search dominance.
🎭 Tensions at G20 – world leaders met at the G20 summit in Rio, Brazil, but found little agreement against a backdrop of geopolitical tension. Little progress has been made on global unity ahead of Trump taking office in January.
UK inflation rose to 2.3% in October, mainly a result of a 10% hike in the Ofgem energy price cap. Coupled with the recent budget measures, which are expected to be at least marginally inflationary, this could influence the Bank of England’s (BoE) approach to interest rate cuts going forward.
UK retail sales slowed in October, down 0.7% to September. Retailers suggest it was due to lower consumer confidence in the lead up to the Budget. However, with real wages still rising and unemployment remaining low, there’s room for a rebound in the months ahead.
The world’s largest company, Nvidia stole the spotlight, reporting quarterly revenue of $35bn, and doubled profits, compared to a year earlier. This performance underscores the unrelenting global demand for AI and Nvidia’s leading role in the sector.
But not all tech giants had a good week. Nvidia’s ‘Mag 7’ counterpart, Google (Alphabet), faced serious pressure to sell off Chrome, the world’s most popular web browser. The US Department of Justice believes Google is involved in anti-competitive practices, and if successful will be a landmark moment against one of the world’s biggest technology companies.
Meanwhile, world leaders met at the G20 summit in Rio, which was more show than substance. Ongoing geopolitical tensions worldwide, and the uncertainty of a transition to a new government in the US, there was little common ground. With not much agreed on, it highlighted the ongoing uncertainty that often pushes investors toward safe havens like gold.
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