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Nvidia’s Stock Plunge Highlights Global Market Concerns

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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%.

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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.

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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.

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EU Approves Major Tariffs on Chinese Electric Vehicle Imports to Protect Industry

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EU Approves Major Tariffs on Chinese Electric Vehicle Imports to Protect Industry

The European Union has approved significant tariffs on electric vehicle (EV) imports from China, following a majority vote among member states. The new tariffs, set to rise from the current 10% to as high as 45% over the next five years, aim to shield Europe’s car industry from what EU lawmakers argue are unfair subsidies given to Chinese carmakers by the Chinese government.

The decision has sparked concerns about potential price increases for EV buyers in Europe, as well as fears of a trade war between Brussels and Beijing. China has strongly condemned the tariffs, labeling them as protectionist measures.

The vote, held on Friday, follows an EU investigation that led to import duties being imposed on major Chinese EV manufacturers such as SAIC, BYD, and Geely. These tariffs were calculated based on the level of state aid each company is believed to have received.

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While the move has caused division among EU member states, it was ultimately supported by countries like France, Italy, the Netherlands, and Poland, which believe the tariffs are necessary to protect European manufacturers. Germany, whose economy is closely tied to exports to China, opposed the decision, and many other countries abstained from the vote.

Critics, including German automaker Volkswagen, argue that the tariffs are the “wrong approach” and could have unintended consequences for the European automotive sector.

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California Governor Blocks AI Safety Bill Amid Industry Concerns

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California Governor Blocks AI Safety Bill Amid Industry Concerns

California Governor Gavin Newsom has vetoed a landmark artificial intelligence (AI) safety bill that aimed to introduce some of the first regulations on AI technology in the US. The bill, which faced strong opposition from major tech companies, would have required advanced AI models to undergo safety testing and included mandatory oversight for “Frontier Models,” the most powerful AI systems.

Governor Newsom argued that the legislation could stifle innovation and potentially drive AI developers out of California. He expressed concerns that the bill applied stringent standards to even basic AI functions, without considering whether the AI systems were deployed in high-risk environments or involved critical decision-making.

Despite the veto, Newsom announced plans to develop alternative safeguards for AI technology, seeking advice from experts to protect the public from potential risks. This comes as part of broader efforts to address AI challenges, including recently signed legislation aimed at combating deep fakes and misinformation.

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Senator Scott Wiener, who authored the bill, expressed disappointment, warning that without oversight, AI developers would continue to advance a powerful technology without necessary safety measures. Meanwhile, experts like Wei Sun from Counterpoint Research argue that AI is still in its early stages, and regulating specific high-risk applications might be a more effective approach.

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Iceland Demands Supermarket Rivals Stop Selling Prawn Rings

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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.”

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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.

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