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According to The Information, Nvidia is in talks to invest hundreds of millions of dollars in Firmus, an Australian AI cloud service provider.October 21 – According to Axios, US officials stated that White House Special Envoy Vitkov will meet with Russian President Vladimir Putin in St. Petersburg, Russia, on Wednesday to present him with an updated plan to end the war in Ukraine. The White House hopes that Putin will show a greater willingness to compromise after Trump agrees to lift sanctions on Russian diesel sales and take other measures welcomed by Moscow. Before traveling to Russia, Vitkov held a day of talks with Ukrainian President Volodymyr Zelensky in Oslo, Norway, and consulted with the leaders of Norway and Finland, as well as representatives from France, the United Kingdom, Germany, Poland, the European Union, and NATO. A US official stated that the US hopes this new plan will "create a viable path for direct trilateral negotiations as well as broader multilateral negotiations."According to Axios: Following his meeting with Zelensky, U.S. Presidential Envoy Witkov will present a peace plan to Russian President Putin.On October 21st, Elon Musk revealed that ASML and other major semiconductor manufacturing equipment suppliers have accelerated equipment deliveries to Tesla and SpaceXs Terafab chip project. During SpaceXs Q3 earnings call, Musk stated, "These timelines are very tight, and we are very grateful to ASML and all other suppliers for accelerating equipment deliveries to help us achieve this goal." Terafab is Musks large-scale chip manufacturing project planned for Tesla and SpaceX. The project aims to meet the two companies huge demand for AI processors and other chips, compensating for the shortcomings in advanced chip supply from existing suppliers, including TSMC. Musk stated that SpaceXs goal is to achieve mass production of chips at the Terafab factory in the third or fourth quarter of 2028.October 21 – Reserve Bank of Australia (RBA) Deputy Governor Hauser said on Wednesday that tight monetary policy is working, slowing economic growth, but the inflation outlook has still deteriorated, so he is unsure whether further interest rate hikes are necessary. Speaking at a Citigroup conference, Hauser said that central bank economists are finalizing their economic outlook forecasts. He noted that it is still uncertain what decision the RBA will make at its next policy meeting.

Oil Prices Fall Further Due to China-Taiwan Tensions and Growth Concerns

Haiden Holmes

Aug 05, 2022 11:00

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As China-Taiwan tensions rose and the Bank of England hiked interest rates, a grim view for crude demand emerged, culminating in a further decrease in oil prices on Friday and a prediction of significant weekly losses.


As of 11:11 EST (00:11 GMT), Crude Oil WTI Futures traded down 0.3% to $88.30 per barrel, its lowest level since early February, before Russia's invasion of Ukraine.


Brent oil prices rose by 0.5% to $93.81 per barrel. Both indices fell more than 3 percent on Thursday and were projected to fall between 12 and 17 percent for the week.


China launched missiles around Taiwan on Thursday, escalating tensions prompted by the presence of Nancy Pelosi, the speaker of the United States House of Representatives, in Taiwan.


It is anticipated that the move will have a negative impact on the value of other assets in the region, as well as on perceptions of Asia's major economies.


In addition, the Bank of England increased interest rates and proposed more anti-inflation measures, indicating that the United Kingdom may soon experience economic turbulence.


As most economies struggle with increasing inflation, the (rapid) tightening of monetary policy in the developed world is fanning worries of an oncoming recession.


The decrease in oil prices this week was caused by a cascade of bad industrial indicators, which raised worries of a demand slowdown.


The surprise weekly increase in crude oil stocks in the United States signaled a probable supply surplus in the world's largest oil consumer.


In this environment, the Organization of Petroleum Exporting Countries and its allies (OPEC+) announced the weakest production rise in their history, indicating a grim demand outlook.


Despite a drop in global demand, a rising energy crisis in Europe would sustain oil prices. As a response to Russia's invasion of Ukraine, the bloc is aiming to reduce its dependence on Russian oil and gas.


The fall in oil prices offers import-reliant economies some relief from the inflation induced by growing fuel expenses.


Focus is now on the U.S. nonfarm payrolls data, which will provide more insight into the largest economy in the world.

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