Key Takeaways
- President Trump has expressed disappointment with Russia's Putin regarding Ukraine and is considering shortening the 50-day deadline for a peace deal, potentially imposing secondary sanctions sooner.
- Nvidia's (NVDA) H20 AI chip stockpile is reportedly insufficient to meet accelerating demand from China, with Jefferies estimating demand could be double the available units.
- UK Prime Minister Keir Starmer is set to discuss a UK-led peace plan for Gaza with President Trump, emphasizing immediate relief and a pathway to peace, including the recognition of a Palestinian state.
- US and China trade officials are meeting in Stockholm, with the USTR Jamieson Greer indicating a desire for positive progress, though no major breakthrough is expected today.
President Donald Trump has indicated he is "very disappointed" with Russian President Vladimir Putin concerning Ukraine and is now considering "reducing" the previously announced 50-day deadline for a peace agreement. Trump had initially stated that Russia would face "severe" secondary tariffs if a deal was not reached by early September, a move criticized by some as giving Putin too much time for his summer offensive. These potential sanctions aim to cut off Russia's oil revenue, a significant portion of its federal budget.
Meanwhile, in the technology sector, Jefferies reports that Nvidia's (NVDA) H20 AI chip inventory is unlikely to satisfy the surging demand from China, despite a temporary lift in U.S. export restrictions. The firm estimates Nvidia holds between 600,000 and 900,000 H20 units, while demand could reach 1.8 million. Chinese cloud service providers and internet firms continue to favor Nvidia chips due to their CUDA ecosystem and superior cluster performance compared to local alternatives. Jefferies has raised its China AI capital expenditure forecast for 2025 by 40% to $108 billion, and its 2025–2030 estimate by 28% to $806 billion.
On the diplomatic front, UK Prime Minister Keir Starmer is scheduled to meet with President Trump to discuss a UK-led plan for peace in Gaza. Starmer's plan focuses on delivering immediate humanitarian relief and establishing a pathway to lasting peace, with the recognition of a Palestinian state being a matter of "when, not if." Trump, however, has stated he "won't take a position on recognizing Palestine" and has dismissed France's recent recognition of a Palestinian state as not carrying "any weight."
In ongoing trade discussions, US Trade Representative (USTR) Jamieson Greer is currently in Stockholm for talks with Chinese officials. Greer stated that while he desires to "move forward in a positive way" regarding bilateral trade relations, a "big breakthrough" is not anticipated today. Both President Trump and Chinese President Xi Jinping are reportedly interested in meeting to discuss outstanding trade issues. The current tariff truce between the two economic giants is set to expire on August 12, and an extension is being discussed.
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.