£ Outshines Rivals
My View
Sterling has climbed 1.7 % against the U.S. dollar and 1.3 % against the Euro in Feb ( best month since Sept ) . President Trump has also stated he’s working on a trade deal with the UK, suggesting Britain could escape tariffs. UK inflation also rose to a 10-month high of 3 % in Jan ; slower interest rate cuts from the BoE helped support the pound
“ risen from below $ 1.21 last month to as high as $ 1.275 ”
– Financial Times
An increase in the purchasing power of UK consumers and firms makes foreign imports cheaper, so imports are likely to increase, worsening the deficit and balance of inflows and outflows into the UK. Imports being cheaper could also help tame inflation. Could this also reflect a change in US-UK trade relations ?
Crypto Market
My View
More than $ 800bn has been wiped off global cryptocurrency markets. Bitcoin dropped by 3.6 % to $ 85,600. Other tokens, especially “ meme coins ”, suffered even bigger losses ; price of Ethereum has fallen 23 %
“ the end of the meme coin boom ”
– Matt Hougan, world leading expert in crypto
This sharp decline has severely reduced overall market liquidity ( making it harder for investors to buy or sell assets without affecting prices ). The crash has also significantly impacted the public’s confidence and perception of cryptocurrencies, affecting future legislation and adoption rates
Trump’s Gold Cards
My View
Rolling out a red carpet for wealthy foreigners, On Feb 26, President Trump announced the U.S. will be selling a “ gold card ”, costing $ 5 million each, directly to the U.S. government. Entailing permanent residency in the U.S. – mainly for them to employ lots of people resulting is masses of tax revenue
“ Green card privileges plus ”
– President Trump, 45th and 47th U.S President
At $ 5mn, the high entry cost will definitely limit participation possibly reducing the schemes attractiveness resulting in unintended consequences. However if successful the program has the potential to generate substantial revenue, which could aid their debt or fund public projects
Japan’s Economy
My View
Japan’s GDP expanded at an annualised rate of 2.8 % ( 0.7 % increase in real GDP ) in the 4th quarter – significantly exceeding analysts estimates ( was predicted to rise 0.3 % ). This marks the 3rd consecutive quarter of expansion. Yen also increased 0.3% against the USD to 151.8 Yen / $. Bank of Japan also raised interest rates by 0.5 %
“ borrowing costs soar to 14-year high ”
– Financial Times
Strong capital investment signals rising business confidence and possible expansion of operations. An increase in real GDP also indicates that consumption has increased, shifting AD rightward. However the rising interest rates could dampen consumer expenditure on major purchases. A stronger Yen also means imports are cheaper for Japanese residents, unfortunately it also means their exports are more expensive for foreigners, so competitiveness for their exports will fall, potentially impacting some of Japan’s major exporters like Toyota and Sony
Tate Brothers
My View
After being charged with 1) Human Trafficking, 2) Sexual Misconduct and 3) Money Laundering with allegedly starting an organised crime group, Romanian authorities have been pressed by Trump himself to lift the travel restrictions on the brothers, Andrew and Tristan. Both of their UK and U.S. passports have made a return, and they have landed in Miami, Florida
“ we have yet to be convicted of any crimes, in our lives ever ”
– Andrew Tate, to the press
Trump’s personal interference with the right-wing associated influencers could signal diplomatic influence over judicial matters to a country with their own private laws. Political favouritism ? If the Tate brothers personally endorse the President, then this would indefinitely impact and alienate his support, voters and fan-base
Nvidia
My View
Among the top-performing stocks on Wall Street over the past 2 years, Nvidia’s profits soared last quarter due to the rush to build an AI infrastructure ( advanced chips ). Sales increased by 78 % with net income surging to $ 22.1 bn. These chips will help to power the U.S. market higher, as top investors bet on insatiable demand for its chips, solidifying their dominance.
“ expects to report revenue of about $ 43bn for the current quater ”
– Jensen Huang, Nvidia CEO
Nvidia’s immense growth solidifies their dominance in the industry, However China’s new AI, DeepSeek, are also developing their own competitor, which could pose long-term challenges. High demand for their goods makes it price inelastic, so Nvidia could charge premium prices and maximise their profits even more. This arms-race in AI, is also leading to several jobs, in research for AI, to be born, boosting investor confidence in the AI sector, and if China are successful then Nvdia would potentially lose a major revenue stream.
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