(AI Generated Summary)
In this week’s video chat, Richard Snow and Nicholas Cawley talk about how Nvidia, a technology company, is affecting the stock market worldwide, especially in regards to the development of artificial intelligence (AI). They mention that Nvidia’s stock price and the price of AI servers have been going up a lot, which is making the market more positive and encouraging investors to take risks.
They then talk about some economic data. They mention that PMI data in Germany has deteriorated, while the UK is experiencing improving conditions. They discuss the possibility of a recession happening in the European Union (where Germany is a part of) and echoed comments from the Bank of England’s Andrew Baliley when he suggested a shallow recession looks likely.
The analysts also talk about statements made by the Federal Reserve, which is like the central bank of the United States. These statements have helped prevent the value of the US dollar from going down too much. They discuss what the Federal Reserve has been saying about the economy and inflation and how it has made people think that interest rates may not be cut as much as previously expected.
Looking ahead to next week, they focus on the impact that inflation data from Japan might have on the rate at which the US dollar can be exchanged for Japanese yen. They talk about how a weaker yen is good for Japan because it makes exporting goods easier. However, they mention that if the yen depreciates too much, the government might try to intervene and stop it from getting weaker.
They also discuss the New Zealand dollar and the upcoming decision by the Reserve Bank of New Zealand on whether to change interest rates. They mention that there is a possibility of rates going up and how this could affect the value of the New Zealand dollar. They also talk about the US stock market and how people have been buying the dips since Q4 last year with a degree of success, but also highlight the potential need for a further catalyst to propel the market higher from here. They mention that there might be a period of time where the market does not change much and that new ideas or stories will be important in the coming weeks.
They finish by mentioning some upcoming economic data, including data on the US economy, inflation in Japan, and manufacturing data in China.