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How informed were you this week?

In this edition we’ll test your knowledge of this week’s financial news.

Question 1

Question 2

Question 3

Question 4

We’ll have the answers after the break

We are clearly on top of what’s happening across markets around the world. Let us put that knowledge to work for you.

Answers

Question 1

Answer: C

Nvidia looks like a real winner, beating analyst expectations…again. The AI chipmaker, which has been a key driver of this year's strong market performance, reported over $30 billion in sales for its fiscal second quarter—a 122% increase compared to the same period last year. This result exceeded Wall Street's expectations of $28.7 billion. The company's profits also soared, more than doubling to $16.6 billion, surpassing the $15 billion projected by analysts. Additionally, the company provided slightly higher-than-expected sales guidance for the upcoming quarter, offering further optimism to investors.

Question 2

Answer: B

Nvidia's shares fell by about 6% on Thursday despite reporting strong fiscal second-quarter results, including over $30 billion in revenue—a 122% year-on-year increase. This marked the fourth consecutive quarter of triple-digit revenue growth. However, the slight dip in gross margins and the company's guidance for a slower 80% year-on-year revenue increase in the next quarter led to investor concerns. Analysts noted that Nvidia's impressive performance had already set very high expectations, making it difficult for the company to deliver results that would further boost its stock price.

Question 3

Answer: B

This one is a bit tricky. Technically, inflation increased in the month of July, however not by enough to say inflation is reaccelerating.

In July, inflation edged higher according to the personal consumption expenditures (PCE) price index, a measure closely watched by the Federal Reserve. The PCE index rose 0.2% for the month and 2.5% from a year ago, matching expectations. Excluding food and energy, the core PCE also increased 0.2% for the month but was up 2.6% over the year, slightly below estimates. Despite this slight increase, inflation remained largely stable compared to June, with shelter costs continuing to rise while other components eased. Personal income and consumer spending rose, indicating steady economic activity, though the personal savings rate fell to its lowest since June 2022.

The report, which comes as the Fed prepares for its first interest rate cut in over four years, suggests that inflation is stabilizing across the economy. Markets are now pricing in a near-certain rate cut in September, with expectations leaning towards a quarter-point reduction. Fed officials, including Chair Jerome Powell, have expressed confidence that inflation is on track to reach the Fed's 2% target. As the Fed shifts focus towards supporting the labor market, attention will turn to upcoming employment data, which will provide further insights into the economy's health.

Question 4

Answer: A

If you guessed Russia you are correct. Russia’s economy grew at an estimated 4% in Q2 of 2024.

Both Japan and the UK recently entered recessions, joining Finland and Ireland after reporting two consecutive quarters of negative GDP growth. Japan's recession is largely due to a declining population, which reduces both production and consumption. Meanwhile, the UK, despite experiencing population and wage growth, saw a drop in consumer spending, which led to its economic downturn. Finland has seen declines in its exports, leading to economic woes as of recently.