Key Takeaways
- Norges Bank maintained its benchmark interest rate at 4.25%, defying some expectations of a cut, but signaled that the policy rate will be reduced further in the course of 2025 if the economy evolves as projected.
- Foxconn (2317.TW) is significantly expanding its AI server production in the U.S., particularly in Texas and Wisconsin, and has identified NVIDIA (NVDA) as a very crucial partner.
- Turkey's Central Bank held its year-end inflation estimate steady at 24% for 2025, despite recent market volatility.
- JPMorgan (JPM) experienced key personnel departures in its Hong Kong credit trading and sales division.
Norges Bank Holds Steady, Signals Future Cuts
Norges Bank, Norway's central bank, announced today that it would keep its benchmark interest rate unchanged at 4.25%, a decision that was largely anticipated by market analysts. This follows a previous reduction from 4.5% to 4.25% in June 2025. Despite the current hold, the central bank indicated a clear path towards further monetary easing, stating that the policy rate is expected to be reduced further over the course of 2025, provided the economic outlook develops broadly as currently projected.
The central bank's policy rate forecast suggests a decline to just below 4% by the end of 2025 and approximately 3% by the end of 2028. This cautious approach aims to ensure inflation returns to its target without unduly restricting economic activity, even as underlying inflation has shown signs of decline.
Foxconn Deepens US AI Production, Boosts Capex
Technology giant Foxconn (2317.TW) is making substantial strategic moves, affirming NVIDIA (NVDA) as a "very important partner" as it ramps up its artificial intelligence (AI) server production in the United States. The company plans to continue expanding its AI server manufacturing operations in Texas and Wisconsin, with new facilities in the U.S., Mexico, and Taiwan coming online. Foxconn is also actively seeking better production locations for its Model C in the U.S. market, aligning with its broader investment strategy.
To support these ambitious expansion plans, Foxconn intends to increase its capital expenditure by more than 20% in 2025. The company is leveraging NVIDIA Omniverse for virtual integration and planning of its facilities, aiming for greater efficiency and faster deployment of AI-powered robotic factories. AI servers now constitute 40% of Foxconn's total sales, and the company commands over 40% of the global AI server market through its partnerships.
Turkey's Inflation Outlook Unchanged
Turkey's Central Bank announced it is maintaining its year-end inflation estimate at 24% for 2025. This decision comes despite recent volatility in financial markets and ongoing global uncertainties. The bank's forecast range for 2025 remains between 19% and 29%, reflecting the elevated uncertainty, particularly concerning global food and energy markets.
Central Bank Governor Fatih Karahan reiterated the bank's commitment to a tight monetary policy stance until a sustained decline in inflation is achieved, with projections showing inflation decreasing to 12% in 2026 and 8% by the end of 2027.
JPMorgan Sees Departures in Hong Kong
JPMorgan (JPM) has experienced personnel changes within its Hong Kong operations, with the departure of two credit traders and a sales head. This includes Sudhir Goel, who served as the bank's head of sales and marketing and platform services for APAC and CEO of Southeast Asia. The departures come amidst a dynamic period in Asia's credit trading and sales market, with significant activity reported across Hong Kong and Singapore.
Europe Gas Prices Remain Range-Bound
European natural gas prices have continued to trade within a week-long range. This stability is observed ahead of anticipated talks between U.S. President Donald Trump and Russian President Vladimir Putin. Market participants are closely monitoring these geopolitical discussions, as their outcome could influence future energy trade policies and the region's supply balance.
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.