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Artificial Intelligence: 1. Googles Isomorphic Labs will raise over $2 billion in new funding. 2. The US plans to issue an executive order on AI safety, but it will not include mandatory model testing. 3. DeepSeek is reportedly seeking 50 billion yuan in funding and will release its V4.1 update next month. 4. The Cyberspace Administration of China and two other departments jointly issued the "Implementation Opinions on the Standardized Application and Innovative Development of Intelligent Agents". 5. The National Energy Administration and three other departments issued the "Action Plan on Promoting the Two-Way Empowerment of Artificial Intelligence and Energy". 6. SenseTime released its new SenseNova 6.7 Flash-Lite multimodal model, with a limited-time free Token Plan. 7. Sony and TSMC plan to establish a strategic partnership to set up a joint venture for image sensors in Japan and explore physical AI. Integrated Circuits (Chips): 1. Apple and Intel reached a preliminary agreement on chip manufacturing. 2. TSMC: April revenue was NT$410.73 billion, compared to NT$415.19 billion last month. 3. Malaysia plans to establish an advanced packaging alliance within two years, investing over RM185 million. New Energy Vehicles: 1. Two departments held discussions with relevant departments of Inner Mongolia Autonomous Region and Hohhot City regarding the testing and demonstration of functional unmanned vehicles. Other: 1. Anthropic will raise billions to target computing power, with a valuation potentially approaching one trillion, surpassing OpenAI. 2. The Tianzhou-10 spacecraft-rocket combination has been transported to the launch area and will be launched soon. 3. H3C released its full series of supernodes, UniPoD S80000, designed for trillion-level large-scale models. 4. Nvidia CEO Jensen Huang: Next-generation AI infrastructure will require a large number of optical connections, and copper wires can no longer meet the demand.On May 9th, Tesla announced a recall of 173 Cybertruck vehicles due to a structural defect in the braking components that could pose a serious safety risk. According to a notification from the National Highway Traffic Safety Administration (NHTSA), the recall covers 2024-2026 Cybertruck models equipped with 18-inch steel wheels. The defect involves brake disc stud holes that are susceptible to mechanical stress and cracking when the vehicle is driven on bumpy roads or during steering maneuvers. With continued vehicle operation, this potential hazard could cause the wheel bolts to eventually break or detach, resulting in a loss of vehicle stability and significantly increasing the risk of collision and injury.On May 9th, Zheng Shanjie, Director of the National Development and Reform Commission, visited the Shanghai Artificial Intelligence Laboratory to conduct a special investigation on the development of artificial intelligence. Zheng stated that the technology and industry of artificial intelligence are currently advancing rapidly, and work must be carried out with a stronger sense of responsibility and mission. First, it is necessary to strengthen overall planning and top-level design, leverage the advantages of national strategic scientific and technological forces such as national laboratories, strengthen basic research in artificial intelligence, enhance original innovation capabilities, promote breakthroughs in key core technologies across the entire chain, and proactively plan for cutting-edge exploration. Second, it is necessary to implement the "AI+" action plan according to local conditions, increase the openness of scientific and intelligent scenarios, collaboratively build national pilot-scale bases for AI applications in the scientific field, and accelerate the application of AI in scientific discovery. Third, it is necessary to coordinate development and security, strengthen the construction of AI security capabilities, explore governance models and mechanism innovations, and ensure the healthy and orderly development of artificial intelligence.Conflict Status: 1. Ukraine attacks major Russian oil refineries and transportation facilities. 2. The Russian Ministry of Defense claims to have shot down over 200 Ukrainian drones. 3. Kremlin: Ukraine continues to attack civilian infrastructure. 4. Russian Ministry of Transport: 13 airports in southern Russia have suspended operations due to drone attacks. 5. Zelensky: Kyiv forces have launched an attack on Russian oil facilities in Yaroslavl, approximately 700 kilometers away, which are crucial for funding Russia. Peace Negotiations: 1. Zelensky: Ukraine and the United States are coordinating the schedule for a US special envoys visit to Ukraine in the spring/summer. 2. Trump announced a three-day ceasefire between Russia and Ukraine starting on the 9th, along with the exchange of 1,000 prisoners of war. 3. Russia agrees to Trumps proposed ceasefire and prisoner exchange plan. 4. Zelensky: Ukraine will not attack the Red Square parade. 5. Trump: The ceasefire between Russia and Ukraine may last more than three days. Other Situations: 1. A large fire breaks out in the Chernobyl nuclear exclusion zone. 2. Russian Ministry of Defense: Ukraine violates the ceasefire agreement. 1. Russian troops retaliated against Ukrainian attacks. 2. Zelensky: Russian troops attacked Ukrainian positions Friday night, showing no intention of a ceasefire. 3. Russian Presidential Press Secretary: Russia will not initiate dialogue with the EU. 4. Rubio: If there is no further progress in Russia-Ukraine negotiations, the US is unwilling to "waste time." 5. The Ukrainian Foreign Minister stated that Ukraine is considering sending a team of experts to assist the Baltic states in their air defense efforts.On May 9th, the 130,000th China-Europe freight train, X8037, departed from Zhengzhou Putian Station for Hamburg, Germany, with an estimated journey time of approximately 16 days. Currently, 129 cities in China operate China-Europe freight train services, connecting 235 cities in 26 European countries and over 100 cities in 11 Asian countries, essentially covering the entire Eurasian region. In the first four months of this year, the China-Europe freight train network continued to expand, transportation efficiency improved, and logistics services were upgraded, with a total of 219 trains operated, representing a year-on-year increase of 55%.

NZD/USD Maintains Below 0.6300 as Market Sentiment Declines; US Inflation Watched

Daniel Rogers

May 11, 2022 10:18

The NZD/USD pair is crumbling like a house of cards as market participants dump risk-perceived securities as uncertainty about the US inflation report looms in the FX realm. In anticipation of stronger inflation numbers that may require the Federal Reserve (Fed) to implement consecutive big rate hikes, the asset has fallen below 0.6300.

 

The market also anticipates that the Fed will announce a 75 basis point (bps) increase in interest rates in June. Although it appears inconsistent with Fed head Jerome Powell's statement that a 75 basis point rate hike is not under discussion. The Fed had no choice but to increase interest rates as a result of the multi-decade inflation's resurgence.

 

According to the market consensus, the annual CPI is projected to be 8.1%, while the core CPI, which excludes food and energy, is projected to be 6%. In the meantime, Loretta Mester, president of the Federal Reserve Bank of Cleveland, has stated that the Fed would continue to raise interest rates unless it observes a significant decline in inflation levels.

 

On the kiwi front, the situation appears to have deteriorated, as the Bank of New Zealand (BNZ) has predicted that "New Zealand's economic growth will cease in 2023." It appears that greater inflation has begun to manifest itself presently. The BNZ also reported that the likelihood of a recession in New Zealand is growing daily. This may diminish the demand for antipodean goods even further.

NZD/USD

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