Nvidia beats Wall Street expectations amid AI chip boom, Asian tech stocks surge – business live

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

A fresh wave of AI optimism has lifted the stock market after chip designer Nvidia reported another set of record-breaking earnings last night.

The company. which designs chips critical for AI tech, reported an 85% year-on-year rise in revenue to $81.6bn in the three months ended in April, marking the 15th consecutive quarter of beating Wall Street estimates.

Nvidia forecast $91bn in sales for its current quarter, well above average investor expectations of $86bn,. short of the highest estimates. Its shares are down 1% in after hours trading. reflecting some worries among investors about how long the company can keep up its incredible growth trajectory.

Still. the revenue beat has lifted the mood in Asian stock markets: the South Korean Kospi has staged a dramatic 9% rise, while Taiwanese shares have risen by 3.3%, snapping a four-day losing streak. LG Electronics. Hyundai Mobis both rose by more than 20% after Nvidia boss Jensen Huang said that physical AI and robotics was the “second category” for major growth.

Elsewhere this morning, Wes Streeting, the former health secretary, has called for a “wealth tax that works”.

Speaking to the BBC. he proposed equalising capital gains tax with income tax, which he said could raise £12bn a year.

Streeting suggested that CGT rates should mirror the three bands of income tax of 20%, 40%. 45%, according to the BBC. He told the broadcaster’s Political Thinking podcast that loopholes should also be closed that allow people to disguise income from work as capital gains,. that lower rates of capital gains tax could be offered to entrepreneurs who are building companies.

His comments come after his resignation as health secretary last week. after several Labour MPs urged prime minister Keir Starmer to step down.

9am BST: Eurozone flash PMI

9.30am BST: UK flash PMI

11.30am BST: UK chancellor Rachel Reeves expected to detail measures on cost of living support

1.30pm BST: US jobless claims

3pm BST: Eurozone consumer confidence reading

4pm BST: Bank of England governor Andrew Bailey speech at Cutler’s Feast, Sheffield

It is a mixed bag of results from BT this morning: the telecoms group has reported a drop in revenue. has forecast another fall next year, but profits are up.

Its underlying revenues fell 4% to £19.65bn in the year ended in March. with UK service revenues down 1% despite price rises. Pre-tax profits rose 8% to £1.44bn.

The FTSE 100 group is now expecting revenue in the range of £19bn to £19.5bn next year. while earnings are expected to rise between £8.2bn to £8.3bn.

But BT also told investors that it has lost fewer customers than feared. down 825,000 customers across its Openreach network, better than the 844,000 which analysts had expected.

It has also announced plans to increase its dividend by “low to mid single digit percentage” in its current financial year,. that it will expand its cost cutting plan from £3bn in savings by 2029 to £3.7bn by 2030.

Shares in the company are down 1.5% this morning.

Matt Britzman, an equity analyst at the broker Hargreaves Lansdown, says:

double quotation mark BT’s results were light on fireworks, but they did what they needed to do. Revenue remains under pressure,. tight cost control helped cash profits hold up, while free cash flow came in a fraction better than expected.

That matters most for BT’s investment case from here. The group is now moving past the heaviest phase of its fibre build,. today’s reiteration of a stronger cash flow outlook gives investors a clearer path to a more cash-generative business.

Openreach remains a key part of this story. Full fibre now reaches 23 million premises, connections are growing,. line losses were slightly better than BT had guided for, though they’re still a reminder that competition is fierce. The dividend increase and new policy are helpful signals, but this is still a story about execution. BT needs to prove that years of heavy network investment can translate into sustainable growth. not just better cash flow as spending falls.”

European markets have opened lower this morning. The UK’s blue chip FTSE 100 has slipped 0.4%, while the German Dax is down 0.3%. the French Cac 40 is down 0.2%.

The Stoxx Europe 600, which tracks the biggest companies on the continent, is down 0.2%.

Nationwide has put aside a £440m pot to pay £100 cash bonuses to 4 million members.

It will be the fourth “fairer share” payment by the bank since it started its profit sharing scheme in 2023. Eligible customers who have a qualifying current account. plus a savings or mortgage with the bank, will be paid the bonus from 10 June.

The announcement came as Britain’s biggest building society reported an annual pre-tax profit of £1.49bn. down from £2.3bn last year when it enjoyed a one-off gain from its £2.9bn deal to buy Virgin Money.

Debbie Crosbie, Nationwide’s chief executive, said:

double quotation mark More people than ever are choosing Nationwide. Our growth in mortgages, retail deposits. personal current accounts is leading the market, which means we can again make a Fairer Share payment to eligible members, and offer a new Member Exclusive Bond to all members.”

Budget airline easyJet has said it had to spend an unexpected extra £25m on jet fuel in March, after the start the US. Israel’s war on Iran.

But chief executive Kenton Jarvis said this morning that there have been “no issues” with fuel supply. that people should not panic about their summer holidays.

Kenton Jarvis told BBC Radio 4’s Today programme:

double quotation mark We have seen absolutely no issues with fuel supply at any of our airports in the UK. across Europe, or indeed beyond.

We stay in very close contact with our fuel suppliers, airports, governments,. they are equally raising no issues looking forward. What is true is obviously there’s a lot less oil coming from the Gulf region, but fuel suppliers have successfully diversified, with production increased in Norway, in West Africa, in the Americas,. refining capacity for jet fuel has also increased substantially outside of the Gulf region.”

The company has hedged 72% of its fuel needs for the next six months. covering the busy summer period up to the end of September. However, it has temporarily suspended short-term hedging as a result of “elevated near-term fuel prices”.

The airline reported a a £552m pretax loss for the six months to 31 March. compared with a loss of £394m in the same period a year earlier. It normally makes its profit in the second half of the year, which includes the peak summer period.

Closer to home. the UK chancellor Rachel Reeves is expected to give a speech in parliament this morning, outlining her latest plans for cushioning the blow to consumers from an expected rise in inflation later this year.

It comes after Keir Starmer announced that the government will postpone the planned increases in fuel duty that were due to take effect in September. December, and give lorry drivers free vehicle tax.

Inflation fears are being fanned by conflict in the Middle East, which has triggered a spike in oil prices. Brent crude, the international benchmark for oil, is up 1.5% this morning to $106.61 a barrel.

Elsewhere in the world of tech, last night SpaceX unveiled its plans to list publicly on the US stock market.

Elon Musk ’s rocket. satellite operations company is planning to go public on the Nasdaq exchange at a valuation of about $1.75tn, under the symbol SPCX, likely on 12 June. It is seeking up to $80bn in investment.

It said in its filing:

double quotation mark Our mission is to build the systems. technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars.