Governor Waller: “Freeze in September if prices stabilize”

Recently, stock markets worldwide have simultaneously experienced fluctuations. Some analysts raised the possibility of unwinding yen carry trades. Yen carry trades involve borrowing low-interest yen to invest in high-interest assets, which can be unwound when the yen strengthens.

While it is difficult to pinpoint the exact cause, yen appreciation is presumed to be a major factor in the stock market decline. The host commented, "Yesterday, our CEO Park Byung-chang mentioned that in the morning, and it actually happened," lending weight to the possibility of yen carry trade unwinding.

The Bank of Japan (BOJ) recently showed a willingness to tolerate a stronger yen. This move is interpreted as an effort to prevent the yen from being excessively undervalued and reflects its intention to defend the yen's value. The speaker explained the BOJ's rationale, saying, "Recently, the BOJ tolerated it. You might ask, 'What's the background? Isn't selling government bonds bad?' but if they just leave it, it becomes too undervalued."

This decision by the BOJ triggered the unwinding of yen carry trades and impacted expectations for U.S. interest rate cuts. It appears to be a strategy to lower upward pressure on the yen's value by tolerating a weaker dollar.

Predicting the probability of a Federal Reserve (Fed) interest rate hike in September is proving difficult. The speaker conveyed the chaotic market situation, stating, "If you look at CMwar, it's dropped to 50. It's changed back to 50-50 again. It's truly unpredictable."

September has a packed schedule of major economic events, including the Consumer Price Index (CPI) announcement, the Federal Open Market Committee (FOMC) meeting, and the Bank of Japan (BOJ) monetary policy meeting, increasing market uncertainty. The struggle between the powerful BOJ and bond vigilantes is expected to continue.

The speaker mentioned this news, stating, "There's talk that the U.S. might impose some restrictions on crude oil exports."

Such measures could have widespread repercussions in European and Asian markets, causing concern. Internal conflicts between U.S. presidential election strategies and domestic economic conditions appear to be behind the consideration of export restrictions.

Astra was trained on the largest scale ever, using over 100,000 GPUs, demonstrating a significant technological leap.

This has generated strong expectations in the AI market. The speaker emphasized Astra's impact, saying, "Some even say, 'Shouldn't Anthropic delay its IPO?' That's how powerful it is."

This model is called the 'Frontier Model,' and the host emphasized its high test scores, explaining, "It prides itself on being an incredible model. It achieved scores of 98%, 99.9%, or 100% in the Frontier Model. I am confident it will be worth the wait."

Anthropic boasts that this model is superior to any currently available on the market and will soon be released to the public.

The host explained the background of the acquisition, stating, "Nvidia acquired Hugging Face. That shows how much Nvidia needed Hugging Face. Hugging Face is somewhat like a platform hub... It's a very necessary situation for Nvidia."

Hugging Face serves as a platform hub for sharing AI models and datasets, making it an important part of Nvidia's AI strategy. Through this acquisition, Nvidia plans to encourage the adoption of its NeMo-Tron models and leverage the security and offline usability strengths of open-source models.

This is expected to provide AI developers with a more powerful and flexible environment, further solidifying Nvidia's leadership in the AI market.

This is attributed to a discrepancy between short-term expectations and long-term market share forecasts.

The host explained, "Expectations for market share were excessively low, so a gap occurred there, and it will require a process to align that. The company's value is still attractive, and its growth is very robust..." also predicting continued growth in the networking sector.

The host emphasized AI's contribution, stating, "Revenue growth has clearly improved recently. And the very important background to this improvement is AI. Half of the recent growth acceleration is attributed to AI."

Half of the recent growth acceleration is attributed to AI, and the stock price has shown a pattern of leveling up after each earnings announcement. This demonstrates that AI technology is translating into tangible corporate performance.

The host recounted the situation, saying, "President Trump tried to create an AI regulatory body, but CEO Zuckerberg, during a phone call, said, 'You can't do this. If we do this, China will catch up to us.'"

Zuckerberg argued that excessive government regulation could hinder U.S. technological development in the name of maintaining AI competitiveness and discussed the potential for open-source AI models.

Market analysis suggests this trend will continue until the midterm elections.

Park Myung-seok explained, "Robinhood created its own system entirely. This reduced outgoing costs, and people started making meme coins like crazy."

Robinhood reduced network operating costs by transitioning from existing Ethereum and Solana-based systems to its own chain. This change also stimulated the creation of Meme Coins, contributing to breaking the 24-hour network revenue record.

Prediction market platform Polymarket launched leverage trading features, intensifying its speculative nature. Park Myung-seok explained, "Polymarket launched leverage trading. It offers long and short positions across stock and cryptocurrency index products, even with up to 20x leverage."

This feature offers up to 20x leverage for stock and cryptocurrency index products, allowing users to take long or short positions. This is seen as a shift indicating that stock market liquidity is moving into prediction markets.

Park Myung-seok conveyed the excitement, saying, "There's no steering wheel, no pedals. A Cybertaxi storm is coming. Elon Musk once again heightened expectations."

This vehicle can be summoned via an app, and its lightbar color helps identify the car. The market is watching the speed of Cybertaxi's commercialization, with Elon Musk emphasizing that it will be central to future mobility.

The Cybertaxi is the pinnacle of Tesla's Full Self-Driving (FSD) technology, designed to handle all driving tasks without human intervention. Tesla expects the Cybertaxi to solve traffic congestion and parking problems and reduce the need for personal car ownership. However, challenges for commercialization, such as safety verification and regulatory issues, remain, suggesting that actual service deployment will take time.

Park Myung-seok explained the reason for the surge, saying, "ChargePoint's stock price surged by nearly 80% yesterday. Earnings were announced, and they were good."

This was due to recently announced earnings significantly exceeding market expectations. The anticipation of expanding charging infrastructure is believed to have driven the stock price increase.