Key Takeaways
- Novartis (NVS) announced positive Phase III trial results for Ianalumab in Immune Thrombocytopenia (ITP), significantly extending the time to treatment failure for patients and showing sustained improvements in platelet count.
- China has urged domestic firms, particularly those with government ties, to avoid using Nvidia's (NVDA) H20 chips, complicating the chipmaker's efforts to regain lost revenue in the crucial Chinese market.
- The Reserve Bank of Australia (RBA) cut its cash rate by 25 basis points to 3.6%, the third reduction this year, while warning of a long-term economic growth rate capped at 2%.
- Intel (INTC) CEO Lip-Bu Tan met with former President Donald Trump, days after Trump had called for his resignation, with Intel shares rising following the "candid and constructive discussion."
- Spain is navigating a delicate geopolitical balance, strengthening ties with China despite warnings from the U.S. and increasing its defense spending amid pressure from the Trump administration.
Novartis (NVS) has reported positive top-line results from its Phase III VAYHIT2 trial for Ianalumab, a drug targeting primary immune thrombocytopenia (ITP). The trial demonstrated a statistically significant improvement in the time to treatment failure (TTF) for ITP patients previously treated with corticosteroids, a key primary endpoint. Patients also experienced a significantly higher rate of sustained improvements in platelet count. The safety profile of Ianalumab was consistent with prior observations, and Novartis plans to include these data in future regulatory submissions by 2027. This positive outcome follows similar successful Phase III results for Ianalumab in Sjögren's disease.
In the semiconductor sector, Nvidia (NVDA) faces new headwinds as Chinese authorities have reportedly urged local companies, especially those involved in government-related projects, to avoid using the company's H20 processors. This guidance, which also extends to certain AI accelerators from Advanced Micro Devices Inc (AMD), complicates Nvidia's strategy to recoup lost revenue in China. Chinese regulators have reportedly questioned firms about their preference for H20 chips over domestic alternatives and raised security concerns, although Nvidia denies these claims.
Australia's monetary policy saw a significant shift as the Reserve Bank of Australia (RBA) unanimously decided to cut its official cash rate by 25 basis points, bringing it down to 3.6%. This marks the third rate cut by the RBA this year, providing relief to borrowers. The central bank justified the move by noting that underlying inflation is continuing to decline towards its 2-3% target range and labor market conditions are easing. However, the RBA also delivered a "reality check," lowering its long-term productivity growth assumption from 1% to 0.7% from 2028 onwards, signaling concerns that the economy may be incapable of growing faster than 2%.
Meanwhile, U.S. political and corporate dynamics were in focus as Intel (INTC) CEO Lip-Bu Tan held a "high-stakes" meeting with former President Donald Trump. This meeting occurred just days after Trump publicly called for Tan's resignation, citing alleged conflicts of interest related to China. Following the discussion, Trump praised Tan, describing the meeting as "very interesting" and his success as an "amazing story." Intel stated that the discussion was "candid and constructive" and centered on the company's commitment to strengthening U.S. technology and manufacturing leadership. Intel shares saw a rise following the positive tone of the meeting.
On the geopolitical front, Spain is treading a "risky path" by attempting to balance its relations with the U.S. and China. Spanish Prime Minister Pedro Sánchez has sought to strengthen trade ties with Beijing, despite warnings from the U.S. Treasury Secretary, who suggested such moves could be detrimental to Spain's economy. Spain has shown a willingness to align more closely with China, even abstaining from a vote on EU tariffs on Chinese electric vehicles. Concurrently, Spain is increasing its defense spending to meet NATO targets, a move that appears to be influenced by pressure from the Trump administration. This complex diplomatic dance highlights Spain's efforts to navigate the escalating trade and political tensions between the world's two largest economies.
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.