Daily Brief - 8 May 2024

Growing concerns over possible drop in renminbi value

George Magnus warns that China's currency, the renminbi, might lose value despite its strong economic position. This is because of low interest rates and economic challenges inside China.

Any drop in the renminbi's value could hurt China's economy and affect global trade, especially with tensions in sectors like electric vehicles and climate change equipment. The U.S. and EU might react negatively, particularly if there's a government like Donald Trump's.

China plans to lower interest rates to help its economy, but this could lead to more money leaving the country, weakening the renminbi further.

BP may retreat from reduction in oil production amid industry shift

BP is reportedly planning to backtrack on its earlier commitment to cut oil and gas output by 40% by 2030. This change comes as the oil industry shifts focus back to hydrocarbon production due to its profitability and the need for energy security highlighted by the Russian invasion of Ukraine.

While BP and other major European oil firms still aim for net-zero emissions by 2050, they are revising their shorter-term goals to prioritize shareholder returns, mainly derived from fossil fuels.

The firm’s new CEO, Murray Auchincloss, supports adapting to these market demands, signaling a likely announcement of increased oil and gas targets soon.

Nvidia and SoftBank lead $1 billion investment in UK's Wayve for self-driving tech

Nvidia Corp has joined a substantial $1.05 billion funding round for Wayve Technologies Ltd., a UK-based startup focusing on autonomous driving technology.

Led by SoftBank and supported by Microsoft, this investment marks one of the largest for a European AI company. Wayve, competing with firms like Waymo, aims to integrate its self-learning driving technology into various automakers' fleets without exclusive partnerships.

The company plans to start with driver-assist features before progressing to fully autonomous vehicles. This funding is intended to be Wayve’s last major round as it moves towards profitability through licensing its technology.