Business
Nvidia’s Stock Plunge Highlights Global Market Concerns
Global markets experienced a sharp downturn on Wednesday, with UK shares following suit after significant losses in Asian and US markets. The declines were driven by increasing concerns about the state of the world’s largest economy, as recent data revealed continued sluggishness in US manufacturing activity. Investors are now anxiously awaiting the release of US jobs figures on Friday, which could provide further insight into the economy’s trajectory.
American technology giant Nvidia, known for its dominance in the AI chip market, was particularly hard-hit, with its shares plummeting by nearly 10%. This decline reflects waning optimism about the AI boom, despite Nvidia’s stock still being worth double what it was a year ago.
The FTSE 100, representing the largest companies on the London Stock Exchange, fell by 0.55% by midday, with major European indices also suffering losses. Germany’s DAX dropped by 1.41%, France’s CAC 40 by almost 1%, and Spain’s IBEX by 0.51%.
In the US, market sentiment was further dampened by uncertainty over how the Federal Reserve will respond to economic growth concerns during its upcoming meeting to decide interest rate policy. On Tuesday, the S&P 500 and the tech-heavy Nasdaq both closed significantly lower, with Nvidia losing 9.5% of its value, a drop that erased $279 billion from its market capitalization. Despite this, Nvidia’s shares remain nine times higher than they were in November 2022, when the launch of AI technologies like ChatGPT sparked a surge in demand for its chips.
Other major US tech companies, including Alphabet, Apple, and Microsoft, also saw their shares tumble. The impact of these declines rippled across Asian markets, with Japan’s Nikkei 225 falling by 4.2%, South Korea’s Kospi losing more than 3%, and Hong Kong’s Hang Seng dropping by 1.1%. Leading Asian technology firms such as TSMC, Samsung Electronics, SK Hynix, and Tokyo Electron experienced significant losses as well.
Julia Lee of FTSE Russell noted that growth concerns are heavily influencing market movements, particularly in exporting countries in Asia, which are being hit hard by these global economic worries. Investors are now closely watching next week’s US interest rate decision and Friday’s jobs report for further indications of the US economy’s direction.
Swetha Ramachandran, a fund manager at Artemis Investment Management in London, suggested that Tuesday’s sharp decline in US shares indicates growing investor skepticism about the likelihood of substantial interest rate cuts by the Federal Reserve.
Business
Iceland Demands Supermarket Rivals Stop Selling Prawn Rings
Supermarket chain Iceland has filed a trademark application for its well-known “King Prawn Rings,” urging rival supermarkets to stop selling similar products. Iceland, headquartered in Flintshire, claims it has faced increasing imitation since introducing its prawn rings in 1991.
In a bold open letter shared on social media platform X (formerly Twitter), Iceland called out major competitors Aldi, Tesco, Lidl, and Asda, accusing them of selling “copy crustaceans.” The letter cheekily asserted, “The King Prawn Ring is ours, and we won’t be letting you off the hook.”
Lidl humorously responded, “Here was us thinking it was a classic 1970s party dish.”
Iceland’s letter, signed by “Iceland Foods,” warned other retailers to cease selling prawn rings, especially ahead of Christmas. The chain emphasized its intent to pursue legal action if competitors don’t comply, declaring, “Our lawyers are more than ready to dive into legal waters.”
The prawn ring battle has sparked social media buzz, with consumers eagerly watching how rival supermarkets will respond to Iceland’s trademark claim.
Business
Boeing Workers Reject Latest Pay Offer Despite 30% Rise, Union Says
The union representing striking Boeing workers has stated that its members are not interested in the company’s latest pay proposal, which includes a 30% raise over four years. According to the International Association of Machinists and Aerospace Workers (IAM), a survey revealed overwhelming dissatisfaction with the offer, labeling it as “inadequate.”
This rejection follows Boeing’s new “best and final” offer, which also included a performance bonus reinstatement, improved retirement benefits, and a one-time $6,000 signing bonus. The company set a deadline for the deal to be ratified by union members by midnight on September 27.
However, IAM criticized Boeing for sending the offer directly to workers and the media without consulting union leaders and stated that the time frame was insufficient to organize a proper vote. Boeing has denied the union’s claims and said it would allow more time and provide support to facilitate the vote.
Business
China Unveils Bold Measures to Revive Economy Amid Growth Concerns
China’s central bank, the People’s Bank of China (PBOC), has launched a significant package of measures aimed at revitalizing its struggling economy. PBOC Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to expand lending to stimulate economic activity.
With recent economic data raising concerns that China may miss its 5% growth target this year, the central bank will cut the reserve requirement ratio (RRR)—the amount of cash banks must hold in reserve—by half a percentage point, releasing around 1 trillion yuan ($142 billion) into the economy. Additional cuts may follow later in the year.
The package also addresses China’s property market crisis by cutting interest rates for existing mortgages and reducing minimum down payments for all homes to 15%.
Asian stock markets responded positively to the news, seeing a boost after Mr. Pan’s announcement, which came during a rare joint press conference with officials from two other financial regulators.
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