Day: April 21, 2025

SA Political Noise and Global Uncertainty Keep USD/ZAR in Uptrend, Despite Weak Dollar

Posted on by Skerdian Meta

Despite a softer US Dollar, the South African Rand continues to lag, keeping the USD/ZAR pair biased to the upside as markets eye a potential breakout above the key 20.00 level.

Continue reading “SA Political Noise and Global Uncertainty Keep USD/ZAR in Uptrend, Despite Weak Dollar” →

JSE Outlook: Will South Africa’s Share Market Open Lower After US Tech Slump?

Posted on by Skerdian Meta

A weak US tech session could cast a shadow on tomorrow’s JSE open, but recent resilience hints at buying opportunities.

Relentless Gold Rally, to Keep Commodity-Heavy JSE All Share Index Bullish Continue reading “JSE Outlook: Will South Africa’s Share Market Open Lower After US Tech Slump?” →

Chinese Competitor Could Cause Big Trouble for Nvidia During Tariff Battle

Posted on by Timothy St. John

Nvidia (NVDA) has some competition in China from tech company Huawei, which will be delivering AI chips possibly as soon as May of this year, and the news has caused a significant drop in the Nvidia stock price.

China may turn to another AI chip company soon and leave Nvidia hurting.
China may turn to another AI chip company soon and leave Nvidia hurting.

Nvidia is dealing with a ban on its profits being shipped to China as the Trump administration restricts trade between the two nations. In particular, the ban hammer has come down on artificial intelligence chips, and Nvidia is the number one AI company in the world. China is one of their biggest customers, and Nvidia is already prepared to pay billions in fines each year to ship its products to China anyway.

If they have a strong competitor in China, though, then that competitor can afford to undersell them and drive them out of the lucrative market. Nvidia stock is down 6% in Monday’s trading, continuing days of decline for the tech company. 

How Competitive is Huawei’s Product?

Huawei is very close to releasing its new 910C chips onto the market, with sales expected as early as next month. The chips they will be offering are on par with the H100 GPU chips that Nvidia used to sell and that are included in the ban between the U.S. and China. Compared to the current Blackwell chips that Nvidia sells outside of China, these Huawei chips are about two generations behind.

The chips that Nvidia sells to China currently are not top of the line and are well behind their current chips. So, if Huawei can make a chip that is comparable to the Blackwell chips, then Nvidia will be in serious trouble. As the situation stands, though, Huawei can offer something very similar to what Nvidia already offers in China. If they can do it cheaper, they may corner the market there, and the AI market is growing extremely rapidly in China and the surrounding countries.

Nvidia is already facing bans from the U.S. over the chips it currently sells to China. They are looking to pay the fines associated and still sell the same chips, but  even that may not be enough for them to hold not their market share in China for much longer.

Until Nvidia can release a product to sell to China that will not be banned and that can be sold at a comparable price to the Huawei chip, Nvidia may lose much of that market. They also have to consider the wisdom of paying billions of dollars in fines just to hold onto that region. 

 

 

Apple stock caught in U.S-China Cross Fire, Sinks below $191

Posted on by Olumide Adesina

Apple stock fell nearly 4% on Monday, sending the iPhone maker’s market value sinking below $191 amid tariff pressures on the company after shares had enjoyed what some analysts called a “relief rally” late last week.

Apple share price is 7.3% down today

Apple’s reliance on Chinese manufacturing and sales makes it vulnerable to policy shifts. Beijing’s reaction to new U. S. chip restrictions has reignited fears of retaliation, dragging down shares tied to China’s tech economy

The concern about Apple is that it will become harder to avoid the crossfire between the U. S. and China as tariffs and restrictions

First, President Trump has spent the last week openly criticizing and calling for the immediate firing of Federal Reserve Chair Jerome Powell. The Fed is the central banking system of the United States, and it has long upheld independence from politics, which most economists feel is essential for the reserve to function effectively.

However, experts are concerned that if Trump follows through on firing Powell, the move could end the independence of the Fed and send stocks into a tailspin.

Second, on Monday night, China issued an official warning against any countries striking deals with the U. S. at its expense. The warning came in response to a Bloomberg report that the Trump administration planned to pressure other nations to cut down on trade with China and negotiate their tariff exemptions with the U.S.

In response, China’s Commerce Ministry said in a statement that it would “take countermeasures resolutely and reciprocally.” Currently, the Trump administration has levied a whopping 145% tariff on Chinese imports, leading China to enforce 125% duties on U. S. goods.

For most tech companies, strained trade relations with China have major ripple effects across operations. Most Apple products, for example, are manufactured in China, while many products sold on Amazon are made there, and Nvidia chips are manufactured in Taiwan. Likewise, Tesla relies heavily on parts made in China.

Wall Street, the Dollar, and Yields Tumble Over Fed Independence

Posted on by Ignacio Teson

Stocks fell on Wall Street Monday, as rising concerns over tariffs and President Donald Trump’s criticism of the Federal Reserve undermined investor confidence.

Tariffs and Fed Independence are the hot topics of the day.

This, in turn, pushed the dollar lower and sent gold—often seen as a safe haven—soaring to a new all-time high.

The S&P 500 dropped 2.9%, the Nasdaq Composite fell 3.2%, and the Dow Jones slid 2.8%. The decline follows Trump’s sharp attack on Fed Chairman Jerome Powell last Thursday, with reports suggesting that his team is considering the possibility of removing Powell—an action that would raise questions about the central bank’s independence and further erode confidence in U.S. assets.

[[SPX-graph]]

The Technology sector led the downturn, falling 3.5%, followed by Consumer Discretionary, down 3.2%, and Energy, which fell 2.7%. Many markets were closed on Friday, and some, including much of Europe, were still on holiday for Easter Monday, resulting in low liquidity.

Geopolitical tensions were already weighing on markets, but now growing fears that Trump could interfere with the Fed add another layer of uncertainty. Any sign of political pressure on monetary policy could undermine the Fed’s independence, complicating the path of interest rates just when investors are looking for stability amid global volatility.

Stock Market Tanks as Trump Doubles Down on Fed Criticism, Pressing for Rate Cuts

The U.S. stock market is plummeting this Monday as President Trump escalates his criticism of Powell, pushing for immediate interest rate cuts. Increasing trade tensions have fueled recession fears in the U.S., causing both the dollar and long-term Treasury bonds to fall sharply.

Trump publicly supported preventive rate cuts, labeling Powell a “failure,” which raises questions about the Fed’s independence and shakes market confidence. U.S. analysts warn that the central bank’s loss of autonomy could lead to more unpredictable decisions, destabilizing the market.

In a post on Truth Social, Trump stated that the economy would slow unless Powell—whom he referred to as “Mr. Too Late, a big loser”—immediately lowered interest rates. This follows another post last week where Trump also called for a rate cut and even hinted at Powell’s possible “removal,” a move that, according to White House economic adviser Kevin Hassett, the president’s team was considering.

Stocks hit their lowest points of the day following Trump’s post on Monday. The dollar was also under pressure, falling to its lowest level in three years as the threats increased. Meanwhile, gold surged to historic highs, surpassing $3,400 per ounce.

Investors Face New Macro-Economic Anxiety: Trump’s Threats to Fed Independence

Investors now face a new source of macroeconomic anxiety: Trump’s threats to the Fed’s independence. This threat is closely tied to his trade war, as Powell and his colleagues are forced to stay neutral amid the potential for an inflationary rebound driven by tariffs in the coming months, despite recent market volatility and growing downside risks to growth.

 South Korea prefers Ripple’s XRP to Bitcoin

Posted on by Olumide Adesina

South Korea has the world’s largest appetite for XRP. According to All Things on significant domestic exchanges, the token’s trading volume routinely outpaces Bitcoin.

XRP  surpassed $6 billion in daily volume on Upbit, the top trading platform in South Korea, and accounts for over one-third of all trades on the platform. This is more than just short-term conjecture. Over 3.5 million South Koreans, or almost 7% of the country’s population, own XRP. Recent reports supporting his claims indicate that XRP has surpassed Bitcoin as the most traded cryptocurrency on Upbit.

All Things reported that the digital asset’s trading volume was three times that of Bitcoin amid high  geopolitical uncertainty

The volume of XRP has consistently surpassed that of other leading assets in the nation, indicating a distinct level of local trust in the asset’s dependability and usefulness.

South Korea’s strong support for XRP reflects the need for efficient, reasonably priced international money transfers that traditional banks haven’t met. Investors look to XRP as a refuge and a go-to asset to handle a shattered international transaction as traditional banks falter.

The asset class is only 3% away from its next major resistance level, $2.2, according to price action, which is currently around $2.15. The altcoin may see additional price growth if buying pressure increases, and it can turn this price point into a support floor. Under these circumstances, XRP might increase to $2.29.

Nvidia Stock Falls Nearly 5% After China Strikes Back in the AI War

Posted on by Ignacio Teson

Huawei is preparing a new artificial intelligence chip for mass shipments, while the Asian giant seeks alternatives to replace Nvidia—all amid the trade war.

The trade war is also causing a silent AI war.

Huawei Technologies is preparing to begin mass shipments of its advanced 910C AI chip to Chinese customers starting next month, according to two people familiar with the matter. Some shipments have already been made, they added.

The timing is favorable for Chinese AI firms, which have been forced to seek domestic alternatives to Nvidia’s H20—the company’s leading AI chip that, until recently, could be sold freely in China. As a result of mounting geopolitical pressure, Nvidia (NVDA.O), a key component of the S&P 500, has seen its stock drop nearly 6%.

[[NVDA/USD-graph]]

Earlier this month, the administration of President Donald Trump informed Nvidia that future H20 sales to China would require an export license, tightening restrictions on advanced semiconductor exports.

Huawei’s new chip, the 910C GPU, is described by insiders not as a technological breakthrough, but as an architectural evolution. By integrating two of its previous 910B processors into a single package using advanced chip-stacking techniques, Huawei has reportedly achieved performance comparable to Nvidia’s H100. The 910C offers double the computing power and memory of the 910B, along with enhanced support for various AI workloads.

Washington’s aim to curb China’s technological rise—particularly in areas with military applications—has led to strict export controls on Nvidia’s most advanced products, including its flagship B200 chip. The H100 was banned in China back in 2022, even before its official release.

Huawei Rises Amid U.S. Restrictions

This increasingly restrictive environment has opened the door for Huawei and other Chinese GPU startups, such as Moore Threads and Iluvatar CoreX, to enter a market long dominated by Nvidia.

With the U.S. Department of Commerce imposing new restrictions on Nvidia’s H20, Huawei’s Ascend 910C is now poised to become the preferred hardware for Chinese AI developers, particularly for inference-related tasks.

Sources say that by the end of last year, Huawei had already distributed samples of the 910C to several tech firms and begun accepting orders. However, Reuters could not confirm which companies are primarily responsible for producing the chip.

Some of the 910C’s core components are being manufactured by Chinese foundry SMIC (0981.HK) using its 7nm N+2 process technology—though with reportedly low production yields.

At least a portion of the 910C GPUs also use semiconductors made by Taiwan’s TSMC (2330.TW) for the Chinese firm Sophgo, according to one of the sources and a fourth person. The U.S. Department of Commerce is currently investigating TSMC’s work for Sophgo, after a chip made by the Taiwanese firm was found in a 910B processor.

According to the RAND Corporation’s Center for Security and Emerging Technology, TSMC has produced close to 3 million chips in recent years that match Sophgo’s design—an indication of how deeply intertwined global semiconductor supply chains remain, even amid rising trade tensions.