1. NVIDIA NEXT
Nvidia’s August 27 earnings report takes on higher significance after tech shares stumbled this week on some warning over the AI growth.
Its dominant place in AI chips has led to a different hovering efficiency in 2025. Final month, it grew to become the primary firm to high $4 trillion in market worth.
Any commentary from the AI bellwether associated to demand and spending might have broad ramifications for corporations uncovered to the know-how.
Focus might additionally fall on Nvidia’s cope with the Trump administration, which provides the U.S. authorities 15% of income from gross sales of some superior chips in China.
U.S. Commerce Secretary Howard Lutnick is wanting into the federal government taking fairness stakes in Intel and different chipmakers in change for grants beneath a federal act that goals to spur factory-building within the U.S., sources say.
2. PRICING IN PEACE
World defence shares took a beating on indicators that peace might return to Ukraine, though geopolitical analysts warning that it’s far too quickly to begin pricing in a “peace dividend”. The sector has been on a tear for many of 2025, as conflicts within the Center East and Ukraine, and U.S. stress, immediate governments to bump up defence spending.
That has helped propel shares like U.S.-based RTX Corp , the mother or father firm of defence contractor Raytheon, roughly 35% larger up to now this yr. The S&P 500 is up 9% .
Germany’s Rheinmetall has surged 160% and Italian aerospace large Leonardo S.p.A. continues to be up 73% even after this week’s selloff.
A de-escalation within the conflict in Ukraine might immediate additional promoting however not a lot given the worldwide nice energy play going down, strategists say.
Given that the majority international locations are considered as “behind the curve” on defence spending, the sector will stay in favour.
3. EXIT STRATEGY
Political paralysis in Japan is placing stress on the bond market, with 10-year bond yields hitting the very best since 2008, and 30-year yields at all-time peaks.
Calls proceed for Prime Minister Shigeru Ishiba to step down following a bruising loss in latest higher home elections, however his refusal has saved worries alive a couple of loosening of fiscal restraint to cater to up-and-coming opposition events.
Issues might come to a head subsequent week, with Ishiba’s ruling Liberal Democratic Celebration because of launch a fact-finding report on the explanations for the poor ballot displaying by month-end.
Some observers reckon this might present the timing for a sleek exit, because it additionally permits Ishiba to clear key diplomatic conferences with South Korea’s chief this weekend and India’s Narendra Modi per week later.
4. WATCHING MR. BOND
Because the tech selloff grabbed headlines, renewed stress in bond markets went a bit of beneath the radar.
German and French 30-year bond yields this week rose to their highest since 2011, Japanese yields are at their highest in years, UK long-dated bonds bought off once more and U.S. 30-year yields are hovering close to 5%.
Positive, the explanations behind the promoting are properly established: debt ranges are rising, so governments must promote extra bonds. Some similar to Japan must hike charges, others together with the U.S. and UK face nonetheless sticky inflation.
Some reckon that fast-money sorts might be beginning to place for a disaster. That the promoting stress on bonds continues is, in itself, a fear for governments now forking out significant quantities of their revenue on debt service funds.
The selloff might be a harbinger of what is available in September when provide picks up.
5. HIDE AND SEEK
West Africa’s Senegal awaits the outcomes of an Worldwide Financial Fund mission, concluding on Tuesday, to unpick its mammoth hidden money owed and transfer ahead.
The dimensions of the hidden money owed, which the IMF pegs at $11.3 billion, has ballooned since September 2024, when its then-new leaders first flagged the problem. Notice, Mozambique’s “tuna bond” hidden debt scandal tallied as much as just some billion.
Buyers are watching. A communique might make clear what the IMF does subsequent, after pushing for higher debt reporting throughout rising markets for years.
Senegal’s scandal is a black eye for the Fund, because it had a monitoring programme on the time.
The IMF should now stability the necessity to present penalties for misreporting whereas avoiding punishing Senegal for openness.
Buyers hope the Fund will transfer ahead with a long-awaited misreporting waiver after the mission, paving the way in which for a brand new programme. With out a waiver, Senegal might need to repay.
