Global Markets React to Huawei’s Chip Ambitions, UAE Rate Cut, and Geopolitical Tensions

Huawei's AI Chip Development - Huawei is advancing its AI chip development with plans for new Ascend and Atlas series chips, including the Ascend 910C, which is set for mass production in Q1 2025 as a domestic alternative to Nvidia's H20 chip [3][8] - The Ascend 910C faces challenges with a yield rate of approximately 20% from SMIC's N+2 process, which is below the commercially viable threshold [3] - Future releases include the Ascend 950PR and Ascend 950DT chips in 2026, and the Atlas 950 Supercluster, expected to launch in late 2025, aimed at enhancing China's domestic AI computing capabilities [4][8] UAE Interest Rate Cut - The Central Bank of the UAE has reduced its benchmark interest rate by 25 basis points, bringing the Overnight Deposit Facility rate down from 4.40% to 4.15%, effective immediately [5][8] - This rate cut follows a similar action by the U.S. Federal Reserve, reflecting the UAE dirham's peg to the U.S. dollar [5] - The UAE has slightly revised its inflation forecast for 2025 to 1.9% from 2% and for 2026 to 1.9% from 2.1% [5] South Korea E-commerce Joint Venture - The Fair Trade Commission in South Korea has conditionally approved a joint venture between AliExpress Korea and a unit of Shinsegae Group, named "Grand Opus Holding" [7][8] - This joint venture involves Emart affiliate Apollo Korea contributing 100% equity in Gmarket, while Alibaba affiliate BK4 invests $225 million in cash and 100% equity in AliExpress Korea [7] - The merger is expected to reshape the domestic e-commerce landscape, intensifying competition with existing players like Coupang and Naver [7][8] Geopolitical Developments - Iranian Foreign Minister engaged in discussions with European nations regarding Iran's nuclear program, aiming to prevent the re-imposition of international sanctions [10] - Poland is advocating for a 2026 deadline for the EU to halt Russian oil imports, citing geopolitical risks and the need to stop financing Russia's military actions [11]