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Intel Earnings Preview: AI Momentum Faces Crucial Test Against Margin Pressure

Intel  heads into its April 23 earnings with  rising investor expectations , but the key question remains whether  AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver  Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from  39.2% a year ago EPS near breakeven (~US$0.00)  vs  US$0.13 last year This highlights  continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on  AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with  Alphabet , which reinforces: Intel’s role in  AI data centre infrastructure Growing demand for  AI inference and general-purpose computing Investors will watch c...
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Yen at Risk: Slow BOJ Rate Hikes Could Weigh Further on Currency, ADB Warns

Japan’s currency may face  continued downward pressure  if policymakers move too slowly on interest rate hikes, according to the head of the  Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President  Masato Kanda  highlighted that the  wide interest rate differential  between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the  US dollar  due to higher yields The  Bank of Japan  risks being seen as  “behind the curve”  on inflation As a result, the yen struggles to strengthen even when  global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a  cautious policy stance  to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ  delays rate hikes further Investors lose confidence in Japan’s  poli...

Trump’s Fed Pick Warsh May Use Balance Sheet Strategy to Push Rate Cuts

Kevin Warsh  could pursue an unconventional strategy to  lower US interest rates , even as most Federal Reserve officials remain cautious due to persistent inflation. A Two-Pronged Policy Approach Warsh is expected to argue that  shrinking the Federal Reserve’s balance sheet  could justify  cutting interest rates . The idea: Reduce the Fed’s balance sheet by US$1 trillion This acts like a  50 basis-point rate hike (tightening) Offset it with a  50 basis-point rate cut (easing) This effectively means  tightening and easing simultaneously , but with the goal of bringing  headline interest rates lower . Why the Balance Sheet Matters The Fed’s balance sheet — now over  US$6 trillion  — includes: US Treasuries Mortgage-backed securities (MBS) Holding these assets  keeps long-term interest rates lower  by supporting bond prices. Reducing the balance sheet would: Push  yields higher (tightening effect) Allow room for  r...