September 10, 2025

THE CLIFF NEWS

National Daily Bilingual Newspaper

Category: Stock Market

Nvidia to Invest $500 Billion in U.S. AI Infrastructure Amid Trade Tensions

Nvidia has unveiled a bold plan to invest up to $500 billion (£378 billion) in artificial intelligence infrastructure across the United States over the next four years. The announcement signals a strategic shift toward domestic production in response to escalating trade uncertainty under former President Donald Trump’s proposed tariff regime. The move comes as Trump renews threats to levy import duties on semiconductors, a step that could disrupt Nvidia’s reliance on its Taiwan-based supply chain. The investment decision reportedly followed a recent dinner between Nvidia CEO Jensen Huang and Trump at the Mar-a-Lago resort. In an official statement, Nvidia said it will collaborate with major manufacturing partners — including Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, Wistron, Amkor, and SPIL — to establish what it called a fully domestic supply chain for AI chips and supercomputing systems. Production of Nvidia’s latest Blackwell chips has already commenced at TSMC’s Arizona facility in Phoenix. Additionally, the company has broken ground on two supercomputer manufacturing plants in Texas, located in Houston and Dallas, in partnership with Foxconn and Wistron. The $500 billion initiative is one of the largest AI-related industrial investments ever announced and positions Nvidia at the forefront of reshoring advanced chip manufacturing amid geopolitical tensions and efforts to secure technological independence.

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Editor02 mins

India Eyes Interim Trade Deal with US Amid Global Scramble to Avoid Tariffs

As over 75 countries rush to secure trade deals with the United States during its 90-day pause window to avoid reciprocal tariffs, India is strategically positioning itself to bridge the trade gap with Washington by replacing third-country imports, a senior Indian government official has confirmed. Key Points: India’s Strategic Leverage The official noted that while countries like Vietnam may benefit from concessions under separate US deals, India is uniquely positioned due to: “Replacing imports from other countries with US goods is not a difficult proposition. That could be one of the outcomes of the BTA,” the official emphasized. The US has flagged tariffs and trade deficits in its talks with India, while raising subsidies and currency manipulation concerns with other nations. India believes it can narrow the deficit while still securing preferential access to US markets. Goyal: “No Negotiation Under Pressure” Commerce Minister Piyush Goyal firmly stated on Friday: “India will not negotiate with a gun to its head… Our national interest remains paramount.” Goyal’s stance reinforces India’s intention to prioritize substance over speed, despite pressure to meet the 90-day deadline. Positive Outlook from Washington The senior official also highlighted: What’s Next? In the coming weeks:

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Editor04 mins

Gold Hits All-Time High Amid US-China Trade Tensions; Experts Predict Further Surge

Gold prices soared to an unprecedented $3,238.82 per ounce (₹2.7 lakh) on Saturday, driven by escalating trade tensions between the United States and China. The sharp rise marks a new record for the safe-haven metal, as global economic uncertainty continues to fuel investor demand. In the domestic market, gold prices had dropped earlier in the week, touching ₹88,200 on Tuesday, while globally, it stood at $3,000 (₹2.5 lakh). However, by Friday, prices rebounded sharply, reaching an all-time high of ₹96,000 in India and $3,262 (₹2.8 lakh) on the international market. In Ahmedabad, the price of 22-carat gold on Friday was reported at ₹85,660, while 24-carat gold touched ₹93,440 per 10 grams, reflecting the upward momentum. The surge is largely attributed to economic instability spurred by US President Donald Trump’s trade policies, which have intensified friction with China. As geopolitical risks mount, investors have increasingly turned to gold as a secure asset. Market analysts anticipate that the rally is far from over. Forecasts suggest that gold prices could climb to $3,500 per ounce (₹3 lakh) by the end of the year, should global tensions persist or worsen.

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Editor02 mins

Gold Soars Over 1% as U.S.-China Tariff War Heats Up, Investors Rush to Safe Haven

Gold prices surged more than 1% on Thursday, buoyed by a flight to safety after U.S. President Donald Trump escalated tariffs on China, raising fresh concerns over inflation and global growth. Despite a temporary tariff pause for other countries, the move intensified the ongoing trade war between the world’s two largest economies. 🔥 Tariff Tensions Reignite Demand for Bullion Trump announced a tariff increase on Chinese imports to 125% from 104%, prompting investors to seek refuge in gold, a traditional hedge during economic and geopolitical uncertainty. The latest tariffs overshadowed the administration’s decision to temporarily ease duties for other nations. “If we enter a slow growth period, which is our base case, we think rates will eventually head lower and push gold higher,” said Edward Meir, analyst at Marex, adding that $3,200/oz could be reached “by month-end, if not earlier.” 📈 Factors Fueling the Gold Rally in 2025 Gold has already gained more than 18% this year, fueled by: 📊 Fed’s Balancing Act Minutes from the Fed’s latest meeting reveal that most policymakers are concerned about the economy facing “higher inflation alongside slower growth.” This puts pressure on the Fed’s future rate decisions, with possible trade-offs looming. Gold, which yields no interest, typically underperforms when rates are high. However, its role as an inflation hedge keeps it attractive amid uncertainties. 🔍 What’s Next? Investors are now eyeing key U.S. data: These indicators could provide further clues on inflation trends and Fed policy direction. 🪙 Other Precious Metals

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Editor03 mins

India Pushes for Faster Trade Deal with US Amid Tariff Shifts and Global Uncertainty

India is accelerating efforts to finalize a trade agreement with the United States after US President Donald Trump temporarily paused reciprocal tariffs on several countries, including India, while significantly raising duties on China. The move, seen as part of Trump’s ongoing pressure strategy against China, saw tariffs on Chinese imports hiked to 125%. In contrast, the reciprocal tariff rate for Indian goods remains steady at 10%. India and the US had previously announced their intention to conclude the first phase of a trade deal by autumn 2025, aiming for a bilateral trade volume of $500 billion by 2030. The recent pause on tariff implementation comes as a relief to Indian exporters, particularly those in the shrimp industry, a government official told Reuters. The official added that India was among the first countries to initiate trade talks with the US and has remained committed to the agreed timeline. Just a day after imposing high tariffs that shook global stock markets, Trump provisionally reduced duties for key trading partners, including India. The tariff volatility has prompted countries to re-evaluate their global trade strategies. India is also open to allowing zero-duty imports from the US in several sectors, including those under the Production-Linked Incentive (PLI) scheme, according to a report by The Economic Times. The PLI scheme covers 14 sectors such as electronics, drones, pharmaceuticals, textiles, automobiles, and specialty steel, backed by a budget of ₹1.97 lakh crore. A broader Indian offer could help fast-track the trade deal. Meanwhile, Apple is reportedly planning to expand iPhone manufacturing in India—a potential shift influenced by Trump’s stricter tariffs on Chinese goods. Amid this global economic flux, the Reserve Bank of India (RBI) has taken a cautious step to support growth by cutting the repo rate by 25 basis points to 6%. RBI Governor Sanjay Malhotra flagged growing risks to India’s GDP due to rising trade tensions. “The recent trade tariff-related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation,” he stated in the monetary policy announcement. As global economic policies shift unpredictably, India finds itself navigating a complex trade and economic landscape while trying to safeguard its growth trajectory and global trade partnerships.

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Editor04 mins

Markets Tumble as RBI Rate Cut and Global Trade Tensions Weigh on Sentiment

Indian equity markets opened sharply lower on Tuesday, tracking weak global cues amid escalating tariff tensions and reacting to the Reserve Bank of India’s dovish monetary policy announcement. The Sensex plunged 439.37 points or 0.59% to 73,787.71, while the Nifty 50 shed 158.55 points or 0.70% to 22,377.30 at 10:14 AM. Market breadth was heavily skewed towards bears, with 2,143 shares declining, 837 advancing, and 136 remaining unchanged. Sentiment soured further after the RBI’s Monetary Policy Committee (MPC), in a unanimous move, cut the repo rate by 25 basis points to 6.00%, its second cut this year, and shifted its policy stance from ‘neutral’ to ‘accommodative’. The central bank also downgraded the GDP growth forecast for FY26 to 6.5%, from 6.7%, citing global economic headwinds and trade protectionism. RBI Governor Sanjay Malhotra noted that inflation appears benign, with CPI inflation for FY26 now expected at 4.0%, down from 4.2% earlier. However, the policy actions, combined with the impact of 26% U.S. tariffs on Indian exports and ongoing global uncertainty, weighed heavily on investor sentiment. The market correction also comes on the day of Nifty’s weekly expiry, adding to volatility. Investors are expected to remain cautious amid concerns over the rupee’s stability, bond market reaction, and further signals from global central banks in response to rising trade tensions.

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Editor02 mins

RBI Cuts Repo Rate to 6% for Second Straight Time, Shifts Policy Stance to ‘Accommodative’ Amid Global Trade Uncertainty

Mumbai, April 9, 2025 (Reuters): In a bid to support the slowing economy amid rising global trade tensions, the Reserve Bank of India (RBI) on Wednesday cut its benchmark repo rate by 25 basis points to 6.00% — the second consecutive cut this year — and changed its monetary policy stance from ‘neutral’ to ‘accommodative’, indicating scope for further easing. The move comes on the heels of the U.S. imposing 26% tariffs on Indian imports, sparking fears of a broader global slowdown and posing fresh challenges for emerging markets. RBI Governor Sanjay Malhotra, addressing a press conference in Mumbai, acknowledged that while growth is improving after a weak H1 FY2024-25, it still lags behind expectations. The central bank also revised its GDP growth forecast for FY2025-26 down to 6.5% from 6.7% and cut its inflation estimate to 4.0%, citing a benign price outlook. The decision was unanimously supported by all six members of the Monetary Policy Committee (MPC). Malhotra clarified that the ‘accommodative’ stance implies a focus solely on either maintaining rates or cutting them, without a direct link to liquidity conditions. With trade protectionism and potential currency wars posing risks, the rupee remains under pressure. The RBI warned that a 5% depreciation in the rupee from its current level (around ₹86/USD) could raise inflation by 35 basis points, even as it boosts GDP growth by 25 bps via exports. India’s 10-year bond yield slipped marginally to 6.50% post-announcement, while equity markets declined by 0.6%. The rupee, having already dropped 1.2% since the tariffs were announced, remains near record lows. Analysts from Capital Economics and ANZ Research anticipate further rate cuts, with expectations of the repo rate dropping to 5.50% by August 2025. Malhotra reiterated the RBI’s policy to manage “excess volatility” in the currency market, asserting that the central bank does not target a specific rupee level but remains ready to intervene when necessary.

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Editor03 mins

Markets Rebound Strongly Ahead of RBI Policy Decision Amid Global Trade Tensions

Indian benchmark indices witnessed a sharp rebound on Tuesday, recovering from their steepest single-day fall in 10 months. The rally was driven by broad-based buying across sectors, following a U.S. tariff-induced selloff that had rattled investors in the previous session. In early trade, the BSE Sensex surged by 1,200 points and was trading 714 points higher or 0.96% at 73,852 around 10:25 am. Meanwhile, the Nifty 50 advanced 240 points or 1.10% to 22,398. This recovery comes after Monday’s slump, where the Nifty fell by 3.2% and the Sensex dropped by 3%, compared to an 8.4% decline in the MSCI Asia ex-Japan index. Investors are now closely watching the Reserve Bank of India’s (RBI) upcoming policy announcement scheduled for April 9, with expectations of a 25 basis points cut in the repo rate to support growth amid escalating global trade tensions. From the Sensex pack, Titan, Adani Ports, Bajaj Finserv, Tata Steel, Axis Bank, and Tata Motors were among the top gainers, rising between 3–5%. Titan jumped 5% after reporting a strong 25% year-on-year growth in Q4 FY25, reflecting robust performance across key segments. On the sectoral front, the Nifty Consumer Durables index surged 3%, while Metal, Realty, and Financial Services indices gained over 2%. The broader markets also participated in the rally, with Nifty Midcap 100 and Smallcap 100 opening 2% higher. Expert Take on Market Sentiment and Trade War Impact Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that global market volatility is likely to persist due to ongoing trade tensions. He noted that while the trade war seems limited to the US and China for now, India is proactively engaging in talks for a Bilateral Trade Agreement (BTA) with the US. He warned that the US recession risk has increased and China could be the worst affected if Trump’s proposed 50% additional tariffs are implemented, potentially stalling Chinese exports and depressing global metal prices due to product dumping. Despite this uncertainty, Vijayakumar believes India’s macroeconomic fundamentals remain stable. With an expected GDP growth of around 6% in FY26 and attractive largecap valuations, long-term investors can consider gradually accumulating quality largecap stocks, particularly in financials. Global Markets Recover as Negotiation Hopes Rise Global equities saw a modest recovery as well. Asian stocks bounced from 1.5-year lows, buoyed by hopes of potential trade negotiations. Japan’s Nikkei led the recovery with a 5.6% surge, while Hong Kong’s Hang Seng Index rose 1.7% and Chinese blue-chip stocks edged up 0.6%. U.S. stock futures also pointed higher. However, U.S. President Donald Trump maintained a hard stance on China, threatening further tariffs unless Beijing withdrew its retaliatory measures. In response, China rejected the “blackmail” nature of U.S. threats. FII/DII Activity and Commodity Updates On April 8, Foreign Institutional Investors (FIIs) offloaded equities worth ₹9,040 crore, while Domestic Institutional Investors (DIIs) countered the selling by purchasing ₹12,122 crore worth of stocks. Oil prices also rebounded, with Brent crude rising 1.26% to $65.02 per barrel and WTI crude climbing 1.52% to $61.61, after a steep decline in prior sessions triggered by fears of weaker demand due to tariffs. In currency markets, the Indian rupee slipped 0.06% to 85.88 against the U.S. dollar in early trade. The U.S. Dollar Index, which tracks the greenback against six major currencies, declined 0.25% to 103.

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