Nvidia posts strong results despite China uncertainty

Right this moment’s agenda: US envoy to Denmark summoned over Greenland; E3 readies Iran sanctions; Blair at Gaza plan assembly; and the carmakers trailing in a software program race.

Good morning. We begin with synthetic intelligence chipmaker Nvidia’s intently watched outcomes, which had been launched yesterday amid market jitters about AI demand and the way its China chip enterprise will navigate geopolitical tensions between Washington and Beijing.

Sturdy outcomes: Nvidia reported revenues of $46.7bn for the quarter to July 28, up 56 per cent 12 months on 12 months and barely above consensus estimates of $46.5bn. The corporate anticipated round $54bn in gross sales for the present quarter, higher than expectations of $53.8bn.

Regardless of the strong outcomes, its shares fell 3 per cent in after-hours buying and selling because the report didn’t ease uncertainty over gross sales of Nvidia’s AI chips in China.

China enterprise woes: The world’s most dear firm has change into entangled in US President Donald Trump’s commerce warfare with Beijing. The Trump administration earlier this 12 months blocked exports of Nvidia’s H20 chip designed for the Chinese language market. Nvidia then lower a deal to permit gross sales to renew in alternate for giving the US authorities 15 per cent of the revenues. However it’s nonetheless unclear how shortly gross sales would possibly recuperate.

An analyst famous that Nvidia’s determination to not embody AI chip income from China in its monetary steerage led to some traders’ expectations being disenchanted. Read more reaction on the chipmaker’s results.

Right here’s what else we’re retaining tabs on immediately:

• Central banks: The European Central Financial institution publishes minutes of its July assembly. Federal Reserve Board governor Christopher Waller speaks in Miami.

• Outcomes: Supply Hero, EVN and Pernod Ricard report earnings.

5 extra prime tales

1. Denmark “must settle down”, stated the White Home after the highest US diplomat within the nation was referred to as in over reviews that Americans with alleged hyperlinks to President Donald Trump had been conducting covert affect campaigns in Greenland. Lars Løkke Rasmussen, Danish international minister, had accused “international actors” of making an attempt to sway the future of the Arctic island.

2. The UK, France and Germany are making ready to set in movement a UN course of to reimpose sanctions on Iran over its nuclear programme, European officers have stated, in a transfer that might heighten tensions between the west and Tehran. The E3 are anticipated to set off the “snapback” mechanism immediately as hopes of a diplomatic breakthrough fade.

3. Donald Trump held a gathering on the White Home with former UK prime minister Tony Blair and prime officers to debate a brand new “complete” postwar plan for Gaza, as Israel prepares to launch one other invasion of the besieged enclave. Learn extra on US efforts to plot a day-after proposal for the war- and famine-ravaged strip.

4. Unique: Hedge funds and personal traders muscling into reinsurance threaten to destabilise the centuries-old marketplace for disaster cowl, a director at Munich Re, the world’s largest reinsurer, has warned. The sector’s shifting form has launched new risks and greater volatility, he stated.

5. Unique: Large UK banks are bracing for losses on billions of kilos in loans to distressed British broadband suppliers, because the weakest gamers within the nascent fibre sector battle mounting monetary strain. Discover out which lenders are uncovered to struggling “altnets”.

The Large Learn

The world’s largest carmakers are racing to develop software-defined autos like these produced by Tesla and a brand new era of Chinese language producers. However for most of the business’s conventional corporations, the shift from a producing mannequin to a digital one is proving difficult and expensive.

We’re additionally studying . . . 

• ICE Air: Corporations are jostling for a chunk of the booming business of flying immigrant detainees out of the US.

• Riyadh’s lengthy wait: The final of a collection on Center East monetary centres pores over Saudi Arabia’s ambitious plans to change into a regional hub.

• From widows to CFOs: Girls inheriting massive estates need to cope with emotional loss and financial complexity — usually with restricted preparation.

• Tradition warfare controversy: Cracker Barrel, identified for its Southern-style consolation meals, turned a Maga lightning rod after the US restaurant chain simplified its logo.

Graphic of the day

Russian President Vladimir Putin is demanding that Kyiv cede the Donbas, a proposition rejected by Ukrainian President Volodymyr Zelenskyy. The matter is just not merely certainly one of precept or legality, Ukrainian officers and troopers say. In northern Donetsk, a 45km belt of closely fortified cities has change into the final main line of defence within the area. Fabrice Deprez sends a dispatch from Ukraine’s “fortress belt”.

Take a break from the information . . . 

Everybody hates being ambushed by hidden expenses throughout vacation journey. Nonetheless, few of us are savvy sufficient to dodge them and avoid paying too much, writes Tim Harford.