NVIDIA beats of revenue, but misses on margin

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NAB Morning Call 18 min 2 speakers 7 chapters transcribed 22 days ago
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What are the key market moves and equity performance on the day?

Phil Dobbie 0:01
It's Nvidia Earnings Day today, so we're going to talk about that on the podcast. Plus, the Fed minutes out very recently as well. We'll look at those. The follow-through from the RBA rate cuts. Another week auction of long-dated bonds, this time in Japan. Interesting observations from the Australian Treasury Secretary last night as well. And will Europe get out of the trade talks with Trump a reduction below 10%? No, it seems 10% is the best that they're going to get. Same for everyone, is Seems it's the morning call from NAV. It's Thursday, the twenty-ninth of May, twenty twenty five. Well, the post long weekend enthusiasm in US equities didn't stick today. At the close, the Dow is down naught point six percent.
Phil Dobbie 0:40
Same for the S P. Half a percent off the Nasdaq, the Russell two thousand is down one point one per cent. Bigger falls in Europe with the DAX closing down naught point eight percent, not point seven percent off the Eurostocks fifty, and not point six percent off the FTSE one hundred. Uh the US dollar is higher again, up naught point four percent to almost ninety nine point nine. On the DXY index. That's pushed the Aussie down a quarter percent to sixty-four and a quarter US cents, a 0.4% drop in the euro and the yen. The pound is down 0.3%, bond yields are higher, up four basis points for 10-year treasuries, up six for 10-year guild yields in the UK, and up two in most of continental Europe. Aussie 10 years finished at 4.33% uh yesterday, not moving much on futures overnight.
Phil Dobbie 1:22
An oil has moved. It's up up one point seven percent for WTI and one point four percent for Brent, which is now at sixty-five a barrel. Uh and it's uh Nabs Tappa Strickland who joins me today. So the the Fed minutes are out. Uh they didn't move their rates, of course, at their last meeting because of the uh fear of uncertainty. Uh well can you have a fear of uncertainty? The the f the fact that there was uncertainty. Uh so Um, the minutes do talk about the possibility of higher inflation and higher unemployment as a result of tariffs. So I mean it w the message seemed to be holding off, didn't it?
Tapas Strickland 1:57
Good morning Phil. Yes, those F M C minutes weren't all that market moving, but just worth emphasizing uh three interesting points uh that were contained within. And one of them was uh many participants remarked that reports from their business contacts or surveys indicated that firms generally were planning to either partially or fully pass on tariff related cost increases to consumers. So it does seem like uh CPI inflation, PC inflation should start to lift in the coming months as those firms do pass on those costs. And more worryingly, several participants noted that firms not directly subject to tariffs might take the opportunity to increase their prices if other prices rise. So a shift in maybe pricing power inflation expectations there.
Tapas Strickland 2:39
And uh the Fed has been noting for some time about the importance of anchoring long term inflation expectations, but in the minutes they're talking about short term inflation expectations. Because they've risen. Firms may have the potential to parcel on those higher prices. And that was also a notion that the Fed's Williams was talking about at a conference in Japan, talking about the Fed wants anchored inflation expectations right across the curve, not only at the longer end of the curve. And I think that's a bit of a change in terms of Fed rhetoric. A lot of focus has been on the longer end of inflation expectations, but now they're talking about the shorter end uh in terms of inflation. So I found that really, really interesting.
Tapas Strickland 3:15
I also suggest that BART's uh changing rates is probably higher and uh probably um ar argues towards if if there are rate cuts it's gonna be uh later uh in twenty twenty five. When you look at Fed funds pricing now, uh there's forty five point eight basis points priced by the end of the year from forty eight point one basis points on Tuesday. Uh and then the other two comments were really related to uh the market. Market moves that we have seen.

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