Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Nvidia Hits Record Quarter on AI Chip Boom
A fresh wave of AI optimism has lifted the stock market after chip designer Nvidia reported another set of record-breaking earnings last night. The company, which designs chips critical for AI technology, reported an 85% year-on-year rise in revenue to $81.6bn for the three months ended in April, marking the 15th consecutive quarter of beating Wall Street estimates.
Nvidia forecast $91bn in sales for its current quarter, well above average investor expectations of $86bn, but short of the highest estimates. Its shares are down 1% in after-hours trading, reflecting some worries among investors about how long the company can sustain its incredible growth trajectory.
Still, the revenue beat has lifted the mood in Asian stock markets: the South Korean Kospi staged a dramatic 9% rise, while Taiwanese shares rose by 3.3%, snapping a four-day losing streak. LG Electronics and Hyundai Mobis both rose by more than 20% after Nvidia CEO Jensen Huang said that physical AI and robotics represent the "second category" for major growth.
Streeting Calls for Wealth Tax Reform
Elsewhere this morning, former health secretary Wes Streeting has called for a "wealth tax that works." Speaking to the BBC, he proposed equalising capital gains tax (CGT) with income tax, which he said could raise £12bn a year. Streeting suggested that CGT rates should mirror the three income tax bands of 20%, 40% and 45%, according to the BBC. He told the broadcaster's Political Thinking podcast that loopholes should also be closed, which allow people to disguise income from work as capital gains, and that lower CGT rates could be offered to entrepreneurs building companies.
His comments come after his resignation as health secretary last week, following calls from several Labour MPs for Prime Minister Keir Starmer to step down.
Today's Agenda
- 9am BST: Eurozone flash PMI
- 9:30am BST: UK flash PMI
- 11:30am BST: UK Chancellor Rachel Reeves expected to detail measures on cost of living support
- 1:30pm BST: US jobless claims
- 3pm BST: Eurozone consumer confidence reading
- 4pm BST: Bank of England Governor Andrew Bailey speech at Cutler's Feast, Sheffield
