Key Takeaways
- Nvidia (NVDA) is making a significant $5 billion investment in Intel (INTC) and partnering to co-develop PC and data center chips, with Intel shares surging 32% in pre-market trading.
- The Bank of England (BoE) maintained its key interest rate at 4% with a 7-2 vote and opted to reduce its Quantitative Tightening (QT) program to £70 billion annually from £100 billion.
- Huawei has unveiled a new, powerful AI chip cluster, signaling a direct challenge to Nvidia's dominance in the AI chip market, particularly in China.
- Building permits in the United States fell for the fifth consecutive month in August 2025, reaching their lowest level since May 2020, indicating a potential slowdown in the housing market and broader economy.
- The American Express (AXP) Platinum Card annual fee has been hiked by $200 to $895, accompanied by new perks and credits.
Chip Industry Sees Major Shake-Up with Nvidia-Intel Partnership
In a significant development for the semiconductor industry, Nvidia (NVDA) announced a $5 billion investment in rival Intel (INTC), coupled with a strategic partnership to co-develop chips for both personal computers and data centers. Nvidia will purchase Intel common stock at $23.28 per share. This unexpected collaboration sent Intel's shares soaring by as much as 32% in pre-market trading, while shares of competitor AMD (AMD) experienced a 4% decline. The partnership aims to combine Nvidia's AI and accelerated computing expertise with Intel's x86 architecture.
Meanwhile, Huawei has intensified competition in the AI chip market by unveiling what it claims is the "world's most powerful" AI chip cluster, utilizing local chipmaking processes. This move comes amidst growing challenges for Nvidia in the Chinese market due to U.S. export restrictions and Beijing's push for technological self-reliance. Huawei plans to launch upgraded Ascend AI chips over the next three years, including the Ascend 950PR in early 2026.
Bank of England Holds Rates, Slows Quantitative Tightening
The Bank of England (BoE) voted 7-2 to maintain its key interest rate at 4%, aligning with market consensus. In a separate decision, the Monetary Policy Committee (MPC) also voted 7-2 to reduce the pace of its Quantitative Tightening (QT) program, scaling it back to £70 billion over the next year from the previous £100 billion. This adjustment aims to address concerns about market volatility and rising borrowing costs.
BoE Governor Andrew Bailey emphasized that "any future cuts will need to be made gradually and carefully," as the central bank remains focused on curbing persistent inflationary pressures. The Consumer Price Index (CPI) in the UK is projected to reach a maximum of 4% in September 2025 before falling towards the 2% target by the second quarter of 2027.
Global Economic Indicators and Policy Outlook
On the currency front, economist Escrivá warned that a large growth in stablecoins could potentially strengthen the US Dollar, while also highlighting an "opportunity for a larger global role of the Euro." He noted that the forex system is showing a reduced bias toward a single dominant currency.
In the United States, building permits experienced their fifth consecutive monthly decline in August 2025, falling by 3.7% to a seasonally adjusted annualized rate of 1.312 million. This marks the lowest level since May 2020 and is below market expectations, suggesting a cautious outlook for the housing market.
Separately, the Trump administration is set to phase out paper Social Security checks, shifting beneficiaries to electronic payments as part of a modernization drive, effective September 30, 2025. This move is aimed at reducing fraud and saving costs.
The Chief Economic Advisor (CEA) for India indicated that the India-US tariff issue is likely to be resolved within 8-10 weeks, potentially reducing the penal tariff from 25% to 10-15%. Meanwhile, Exxon Chief Darren Woods stated the company has "no plans to re-enter Russia," despite ongoing talks to recoup $4.6 billion in expropriated assets.
In other corporate news, American Express (AXP) has increased the annual fee for its Platinum Card to $895, a $200 hike, while adding new benefits like enhanced hotel and dining credits. The move reflects a trend among premium card issuers to justify higher fees with expanded perks. ASML (ASML) extended its intraday gains by 7.9% on bets for a Federal Reserve rate cut. Gold prices remained steady as traders assessed the outlook for the Fed's rate path.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.