LONDON, Nov 13 (Reuters) – From the fallout of Nvidia chief Jensen Huang’s sudden resignation to Anthropic’s upcoming listing, tech remains in the driving seat for financial markets.
US President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Shenzhen, while a UK/EU summit could herald a new chapter in post-Brexit relations.
Here’s all you need to know about the week ahead in markets by Lewis Krauskopf in New York, Rocky Swift in Tokyo, and Karin Strohecker, Sophie Kiderlin and Marc Jones in London.
1/ ONE TEST AFTER ANOTHER
Two critical tests confront the rickety AI trade: the highly anticipated IPO of Anthropic, and quarterly results from semiconductor giant Nvidia, whose longtime CEO has abruptly resigned.
Anthropic’s IPO is set to value the Claude chatbot creator at up to $1.4 trillion, and shares are expected to start trading on the Nasdaq on Thursday.
Their performance will offer a real-time barometer of sentiment for the AI trade, which has seen huge swings in recent weeks over doubts about the sustainability of massive investment spending.
Confidence in the AI trade took another blow as Nvidia’s Huang stepped down, leaving the AI bellwether scrambling after the departure of a leader who has been perhaps the preeminent champion of the AI industry.
Nvidia’s ties to companies throughout the AI ecosystem mean its report on Tuesday could ripple broadly, putting pressure on new interim CEO Colette Kress.
2/ SHOWDOWN
Trump and Xi should meet on the sidelines of the APEC conference in Shenzhen on November 18-19 in what would be their third face-to-face gathering this year.
There’s no shortage of topics for conversation.
The Democrats’ midterm election win may strengthen Beijing’s hand in trade talks and could lead the Democrats to press Trump to unfreeze an arms package for Taiwan.
Trump says he wants to talk about ending the Iran war, potentially roping in Russian President Vladimir Putin, so the Ukraine conflict may be on the docket too.
Treasury Secretary Scott Bessent said the leaders would advance a new AI risk dialogue.
But that brings up the touchy subject of Nvidia’s Huang and sales of powerful Nvidia AI chips to a Chinese army-linked university already on a US blacklist.
3/ REPRIEVE, OR TREND?
Shifting expectations for Middle East diplomacy and easing demand in the US have pushed down oil prices, but it has been a choppy ride.
Crude prices, extending the previous week’s double-digit decline, have hit two-month lows around the $90 per barrel mark in recent days. That’s raised the possibility of some relief on inflation pressures for policymakers and households as much of the northern hemisphere braces for cold winter spells ahead.
OPEC+ crude oil production jumped in October, led by an increase in output from Saudi Arabia, and a sharp recovery in flows through the Strait of Hormuz is expected to potentially tip the global crude market toward oversupply.
But recent strikes on Saudi Arabian infrastructure by Yemen’s Iran-backed Houthis, frequent attacks on tankers shipping crude out of the Gulf and ongoing disruptions in Russia are a reminder that fresh disruption could quickly reignite price pressures.
4/ GETTING COZY
It’s getting colder in Europe, so perhaps it’s a good time for the UK and EU to get cozy again?
Leaders meet in Brussels for a summit on Friday, and deeper post-Brexit ties are top of the agenda.
British Prime Minister Andy Burnham, who has even raised the idea of rejoining the bloc, says he will push for a deal that improves trade relations. Finance minister John Healey also says closer cooperation would be pursued at the summit.
UK leaders seem keen to discuss anything from food standards to free movement, and European leaders appear welcoming.
Watch sterling. Measured against the currencies of Britain’s major trading partners, it is at a similar level to where it was before 2016’s Brexit vote and could rise further on signs of a deeper rapprochement.
UK data including inflation figures are also due next week.
5/ CRIME PAYS
“Ah sh*t, here we go again” – It’s been 13 years but Grand Theft Auto VI drops on Thursday and the anticipation around what is undeniably a cultural phenomenon is palpable.
Back in Vice City and with a rumoured budget of $1 billion-$1.5 billion – not far off what the world’s tallest building, the Burj Khalifa, reportedly cost – the game is set to be the most expensive piece of entertainment of any kind ever made.
And for good reason: GTA is mind-blowingly lucrative. GTA V made $10 billion of revenue and Thursday’s new instalment could make over $5 billion in sales in its first week alone, some industry analysts say.
Coming right in time for the key holiday season, it will also be a huge boost for PlayStation and Xbox makers Sony and Microsoft, but not for Nintendo, whose critically acclaimed Zelda: Ocarina of Time remake has just been released.
(Graphics by Maynak Munjal, Compiled by Dhara Ranasinghe; Editing by Toby Chopra)
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