Core Insights - The US federal government will not publish official inflation data for October, impacting the Federal Reserve's decision-making on interest rates [1][2] - The cancellation of the consumer price index (CPI) report adds uncertainty to the assessment of the US economy's strength [2][4] - Fed Chair Jerome Powell has indicated a cautious approach in the absence of key economic data, comparing the situation to "driving in the fog" [2][4] Economic Context - Recent CPI releases indicate that price growth remains above typical levels, prompting actions from policymakers to address affordability concerns [2][3] - The Federal Reserve raised interest rates aggressively in 2022 and 2023 to combat inflation, with cautious cuts beginning late last year [3] - Fed officials are under pressure from external demands, including those from former President Trump, to consider further interest rate cuts [3][4] Labor Market Insights - The latest jobs report for September showed mixed results, with 119,000 jobs added but an increase in the unemployment rate to its highest level since 2021 [5] - The September jobs report was delayed due to the government shutdown, and the October report will not be released, with job data for October to be included in the November report [6]

Fears of a growing bubble around the artificial intelligence frenzy resurfaced on Thursday as leading US stock markets fell, less than 24 hours after strong results from chipmaker Nvidia sparked a rally.Wall Street initially rose after Nvidia, the world’s largest public company, reassured investors of strong demand for its advanced data center chips. But the relief dissipated, and technology stocks at the heart of the AI boom came under pressure.The benchmark S&P 500 closed down 1.6%, and the Dow Jones indu ...

The US jobs market added 119,000 jobs in September, according to the latest monthly jobs report, which was delayed by six weeks due to the shutdown of the federal government.Amid heightened uncertainty surrounding the strength of the US economy, the much-anticipated reading was higher than the 51,000 jobs expected by analysts to be added in September.The unemployment rate, meanwhile, ticked up from 4.3% to 4.4%: its highest level since 2021. And a previous estimate for jobs growth in August was downgraded – ...

Core Insights - Nvidia's quarterly earnings report is seen as a critical indicator for market sentiment, with expectations heightened due to significant investments in artificial intelligence and a lack of reliable economic data from the US government shutdown [1][2] - The report is anticipated to influence broader market movements, with options markets predicting a potential 6% fluctuation in Nvidia's stock value, equating to approximately $280 billion [2] Financial Performance - Analysts had projected over 50% growth in both net income and revenue for Nvidia in its fiscal third quarter, driven by substantial investments from major tech companies [4] - Nvidia exceeded these expectations, reporting total revenues of $57.01 billion, surpassing the anticipated $54.9 billion, with a year-over-year sales increase of 62% and profit rising 65% to $31.9 billion [5] - The company also reported data-center sales revenue of $51.2 billion, exceeding expectations of $49 billion [5] Future Outlook - Nvidia forecasts fourth-quarter revenue of around $65 billion, which is above analysts' predictions of $61 billion [6] - CEO Jensen Huang addressed concerns regarding an AI bubble, asserting that Nvidia's capabilities in AI are unique and robust across all phases of AI development [7] Market Sentiment - There is growing anxiety among investors regarding the sustainability of AI investments, with notable figures in the industry, such as Peter Thiel and Masayoshi Son, selling off significant positions in Nvidia [3] - Despite recent sell-offs, Nvidia shares have increased by approximately 37% year-to-date, although shares in Nvidia and Palantir have fallen over 10% since last month [9] - The earnings report is expected to provide insights into broader economic signals, as AI investments are closely linked to overall economic confidence [10] Analyst Perspectives - Some analysts believe fears of an AI bubble are exaggerated, arguing that the largest tech companies are highly profitable and are reinvesting significantly in infrastructure [12] - Market psychology has been negative recently, with concerns that the AI infrastructure buildout may resemble the internet stock bubble of 1999 [11]

All eyes are on Nvidia, the bellwether for the AI industry, as analysts and investors hope the chipmaker’s third-quarter earnings assuage concerns about whether the high-flying valuations of AI firms have peaked.A great deal will ride on how confident Nvidia’s chief executive, Jensen Huang, appears in his forward-looking guidance. Analysts and experts say that although they are largely confident Nvidia will beat Wall Street expectations, they are anxiously awaiting news on the status of industry demand for ...

Core Viewpoint - US officials are reconsidering the timing of semiconductor tariffs, which may delay a key aspect of Trump's economic agenda [1][4][7] Group 1: Tariff Discussions - Recent communications indicate that the administration is taking a cautious approach to semiconductor tariffs to avoid escalating trade tensions with China [2][3] - Trump previously announced a potential 100% tariff on semiconductor imports, but the administration is now debating the timing and specifics of these tariffs [4][6] - Officials have stated that no final decision has been made regarding the tariffs, and they could still be imposed at any time [4] Group 2: Economic Implications - Delaying tariffs could be politically motivated, as rising consumer prices are a concern ahead of the holiday shopping season [7] - Imposing tariffs on semiconductors could increase consumer costs for various electronic devices, potentially affecting prices for items like smartphones and refrigerators [8] - The administration's approach to tariffs is also influenced by ongoing inflation concerns, which have persisted since Biden took office [9] Group 3: Trade Relations with China - The US is attempting to maintain a trade truce with China, a major supplier of semiconductors, while also warning of potential national security measures that could be objectionable to Beijing [9][10] - Trump's strategy includes using tariffs to revive domestic manufacturing jobs that have been lost to foreign competition, particularly from China [10] Group 4: Broader Policy Context - The Trump administration has initiated investigations into imports of pharmaceuticals and semiconductors, citing national security concerns related to reliance on foreign production [11]

Core Insights - Klarna has leveraged AI-related savings to increase staff salaries by nearly 60%, but may consider further job cuts after reducing its workforce by almost half over the past three years [1][4][5] Workforce and Employment - The company's headcount decreased from 5,527 to 2,907 since 2022, primarily due to natural attrition, with technology replacing departing staff rather than hiring new employees [1][4] - Klarna's internal AI program has reduced reliance on outsourced workers, with technology now performing the work of 853 full-time staff, an increase from 700 earlier this year [2] Financial Performance - Klarna reported a 108% increase in revenues while maintaining flat operating costs, which was described as "pretty remarkable" by the CEO [3] - Average employee compensation has risen from $126,000 in 2022 to $203,000 today, reflecting the company's commitment to sharing efficiency gains with employees [5] Revenue Metrics - The revenue per employee metric has reached $1.1 million, with expectations for continued growth in this area, potentially leading to further staff reductions [6] - Klarna reported a 26% increase in revenues for the three months ending September, totaling $903 million, surpassing analysts' expectations [7] Losses and Accounting Changes - Despite revenue growth, Klarna experienced a $95 million loss during the same period, significantly higher than the $4 million loss reported the previous year, attributed to changes in accounting standards following its NYSE listing [8]

Core Points - Donald Trump has issued an executive order to lower tariffs on food imports, including beef, tomatoes, coffee, and bananas, in response to rising cost concerns [1][2] - The new exemptions will take effect retroactively and represent a significant policy shift for Trump, who previously denied that his tariffs contributed to inflation [2][3] - The decision follows recent electoral victories for Democrats, where affordability was a major issue, indicating a political response to public sentiment [2][6] Tariff Changes - The executive order marks a reversal from earlier policies, as Trump had imposed a 10% base tariff on imports from all countries earlier this year [4] - A deal has been announced to reduce US tariffs on Switzerland from 39% to 15%, along with plans to eliminate tariffs on certain food imports from Argentina, Ecuador, Guatemala, and El Salvador [5] Economic Context - Trump has been emphasizing affordability while attributing rising costs to Biden's policies, despite evidence suggesting that his tariffs have contributed to higher grocery prices [6][7] - A Harris poll indicated that a majority of Americans report monthly cost increases between $100 and $749, reflecting widespread economic frustration [7] - Critics, including House Democrats, argue that the Trump administration is acknowledging the negative impact of its own trade policies on consumer costs [7][8]

Trade Agreement Overview - The US has agreed to cut tariffs on Switzerland from 39% to 15% as part of a new trade pact, which aims to improve economic ties and support Swiss exporters [1][2] - The agreement includes a "non-binding memorandum of understanding" following bilateral talks and lobbying by Swiss firms [1][2] Tariff and Quota Details - The new deal aligns US tariffs on Switzerland with those on the European Union, providing Swiss exporters with competitive parity [3] - Switzerland will reciprocate by reducing tariffs on a range of US products, including industrial goods, fish, seafood, and non-sensitive agricultural products [3] - Specific quotas for US goods exported to Switzerland will be established, including 500 tonnes of beef, 1,000 tonnes of bison meat, and 1,500 tonnes of poultry [3] Implementation and Economic Impact - The implementation date for the new tariffs and quotas is yet to be finalized, with coordination between the US and Switzerland to ensure simultaneous customs duty reductions [4][5] - The deal is expected to encourage Swiss companies to invest approximately $200 billion in the US by the end of 2028 [6] Corporate Engagement - Leading Swiss executives met with the US President to finalize the deal, indicating strong corporate interest in the new trade relationship [6] - Rolex, a prominent Swiss luxury watchmaker, has engaged with the US administration, highlighting the personal interactions between corporate leaders and government officials [7][8]

Core Points - The EU has initiated an investigation into Google Search due to concerns that the company is "demoting" commercial content from news media sites, leading to reduced visibility in search results [1][5] - The investigation is focused on the potential unfair loss of visibility and revenue for media owners, which may stem from Google's anti-spam policy [2][5] - The European Commission emphasizes that media partnerships with businesses should be treated fairly in the online marketplace, similar to offline practices [3][4] Group 1 - The investigation is not about the overall indexing of newspapers but specifically targets commercial content provided by third parties [3] - Evidence suggests that certain sub-domains of newspapers, such as those offering discounts in partnership with brands like Nike, are being demoted to the point of being unfindable in Google Search [4] - The European Commission is collecting evidence from publishers regarding the impact on traffic and revenues due to suspected unfair practices [5][6] Group 2 - The EU aims to protect traditional media, which faces challenges in the online marketplace, especially with the rise of AI and threats to media funding [7] - The investigation is categorized as a "normal non-compliance" inquiry, with potential fines of up to 20% of revenue if systematic non-compliance is found [8]