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On August 13th, SMM learned that the A100 series GPUs have entered the "leasing futures" trading format for the first time. The A series represents the first two generations of NVIDIA server GPUs, and previously, the market was primarily based on spot trading and long-term leasing agreements. Leasing futures allow buyers and sellers to lock in the supply and price of computing power at a future point in time, representing a new business model in the industry. SMM believes that the emergence of leasing futures signifies the evolution of computing power leasing towards commodity pricing, and that price discovery and risk hedging functions are expected to gradually improve.On August 13, the State Council Information Office held a press conference on the theme of "Starting the 15th Five-Year Plan." The conference introduced that during the 15th Five-Year Plan period, the Ministry of Ecology and Environment will further strengthen ecological supervision and strive to build a more precise and efficient modern ecological supervision system. During the 15th Five-Year Plan period, efforts will focus on three aspects: "Systematization" of ecological status assessment: Systematically conduct multi-scale ecological status assessments at the national, key regional, nature reserve, and ecological protection red line levels to comprehensively grasp the ecological baseline and changing trends, and verify the effectiveness of ecological protection and restoration work. "Precision" in the discovery and handling of ecological damage: Continuously optimize satellite imagery monitoring to improve the accuracy of discovering ecological damage. Launch the "Green Shield" campaign to severely punish all kinds of illegal and irregular ecological damage. Improve the graded judgment system for ecological damage incidents, clarify the standards, work processes, and handling requirements for judgment, and achieve standardized management throughout the entire process. "Digitalization" of ecological monitoring and supervision: Deepen the application of new technologies such as satellite remote sensing, AI image interpretation, environmental DNA, voiceprint recognition, large-scale models, and intelligent agents, and promote the iterative upgrading of the national ecological protection and restoration supervision platform. We will continue to optimize the layout of comprehensive ecological quality monitoring stations and sample plots to enhance our monitoring capabilities for ecological quality and biodiversity. We will leverage technology to empower ecological supervision, making it more precise, efficient, and intelligent.August 13th - This week, the performance of major Australian banks reflected the extent of the sluggish Australian property market, leading to a decline in bank share prices and highlighting pressure on profitability. Since the governments May budget paved the way for the removal of tax breaks for property investors, mortgage applications at Commonwealth Bank of Australia, Westpac, and ANZ Group have fallen by at least 12%. This followed earlier this years rise in borrowing costs, which dampened demand, and house prices in major cities like Sydney and Melbourne began to decline. Matt Comyn, CEO of Commonwealth Bank, Australias largest bank, stated that the bank has not yet seen this deteriorating sentiment spread further to household spending and overall economic activity. However, with the Middle East conflict pushing up inflation and some businesses remaining cautious, housing credit growth is expected to slow further next year.August 13th - The Pinglu Canal is nearing full navigation. A key project of the Western Land-Sea New Corridor, the Pinglu Canal is the first canal project connecting the Yangtze River and the sea built since the founding of the Peoples Republic of China. The Guangxi Zhuang Autonomous Region has consistently prioritized ensuring the timely, safe, and high-quality completion and opening of the canal by September, coordinating efforts at a high level and pushing forward with all its might. A special working group has been established to implement a list-based, meticulous, and closed-loop management system for tasks such as project completion and operational preparations, with weekly scheduling to ensure that all tasks are carried out in a coordinated manner and achieve tangible results. Systematic measures have been deployed to achieve the goal of "water in the canal, boats on the water, goods on the boats, and goods flowing in all directions."On August 13th, Shanghai issued the "Shanghai Action Plan for Implementing the Several Measures on Further Promoting the Development of Private Investment". The plan mentions providing computing power subsidies in accordance with laws and regulations to support private enterprises in renting intelligent computing resources for large-scale model research, training, and application. It also encourages universities, research institutions, and state-owned enterprises to use data storage and computing power resources built by various business entities, including private enterprises. The plan includes publishing and dynamically updating a public data open list to support private enterprises in the in-depth development and scenario-based utilization of specific public data. It promotes the issuance of "computing power vouchers," "model vouchers," and "corpus vouchers" to reduce the cost of using digital elements such as public data, computing power, models, and corpora. The plan also aims to cultivate benchmark enterprises and platform enterprises for urban digital transformation and guide private enterprises to participate in the construction and scenario operation of digital transformation projects in transportation, logistics, and public services. Finally, it encourages private enterprises to build demonstration projects for new infrastructure such as blockchain applications and large-scale robot applications.

The EUR/GBP exchange rate recovers above 0.8000 in advance of Eurozone inflation and UK gross domestic product

Alina Haynes

Mar 30, 2023 16:05

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The EUR/GBP pair extended its recovery above 0.88 during the Asian trading session. Anticipating that the European Central Bank (ECB) will continue to raise interest rates to combat persistent inflation, the cross has depreciated progressively. Friday will see the publication of preliminary Eurozone Harmonized Index of Consumer Prices (HICP) and Gross Domestic Product (GDP) (Q4) figures. Prior to the publication of these figures, it is anticipated that the asset will exhibit explosive activity.

 

It is anticipated that the preliminary Eurozone HICP will decelerate significantly from 8.5% to 7.3%. While it is anticipated that the core HICP will rise to 5.7% from 5.6% in the previous release. Weak energy prices are anticipated to have a significant impact on Eurozone inflation. In light of Christine Lagarde's prediction that inflation will remain elevated for an extended period of time, the European Central Bank (ECB) is expected to continue tightening monetary policy.

 

In the interim, banking tensions are subsiding as the absence of information regarding additional collateral damage has a positive impact on the market. Chief Economist Philip Lane stated on Wednesday that ECB interest rates must rise if banking tension has no or a "relatively limited" impact.

 

Investors avidly anticipate the United Kingdom's Gross Domestic Product (GDP) data. According to the consensus, the United Kingdom's growth in the fourth quarter of CY2022 remained unchanged. It is anticipated that the annual GDP will remain unchanged at 0.4%. It is expected that the British economy will undergo a severe recession as a result of high inflation and sluggish growth.

 

The Bank of England (BoE) policymakers appear confident that inflation will moderate in the near future and that the unexpected rise in February's inflation was a one-time anomaly; however, the absence of evidence raises doubts. If inflation persists, BoE Governor Andrew Bailey stated that additional rate increases would be announced. In contrast, Bank of America (BoA) analysts anticipate that the Bank of England (BoE) will not increase rates and will maintain current levels until 2024.