Nvidia hit as Google seen threatening its AI chip dominance

Good morning. Here's what happened overnight and what you need to know today.

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1.

Chip reset: Nvidia shares temporarily fell as much as 7% in New York after The Information reported Meta is in talks to spend billions on Google’s AI chips. The move would be a shift in Google’s TPU strategy, which has so far focused on renting its so-called tensor processing units (along with Nvidia-powered servers) for use only within Google Cloud data centres. Meta is reportedly considering renting TPUs from Google Cloud in 2026, before shifting to using them in its own data centres from 2027 (a move more akin to buying the chips than renting them through Google Cloud).Meta has not commented. Google declined to discuss the report but said demand for both its TPUs and Nvidia GPUs is accelerating, and it remains committed to supporting both. Google is also reportedly pitching on-premise TPU use to other customers, including financial firms. The Information cited a source quoting Google Cloud leaders suggesting the effort could help capture up to 10% of Nvidia’s annual revenue. Alphabet shares were about 1% higher while AMD shares also fell sharply. (Capital Brief)(The Information)(Bloomberg)

2.

Yank the rules: Officials at the US Trade Representative (USTR) are assessing Australia’s proposed streaming quotas, as Labor faces a growing backlash to the policy from American media companies and the Trump administration. The work is likely to examine whether Labor’s plans to force streaming platforms to invest in local content violates Australia’s free trade deal with the US, sources told Capital Brief on the condition of anonymity. The USTR, led by Jamieson Greer, is not expected to make a determination on the Albanese government's policy for some months and the progress of this work remains unclear. But the formalisation of the scrutiny from US officials marks a further escalation in tensions between the Trump administration and the Albanese government over the proposed framework, as Labor races to pass the legislation in the final days of the parliamentary year. (Capital Brief)

3.

Retail story: US retail sales growth slowed in September as cautious consumers pulled back on discretionary spending, and confidence in the economy tumbled to a seven-month low. Delayed government data showed shoppers eased off after several months of strong gains, with weaker spending on vehicles, electronics and clothing. Core retail sales, which feed into GDP calculations, declined for the first time since April. Restaurant and petrol station spending rose, but momentum overall softened heading into the fourth quarter. Retailers including Best Buy and Kohl’s still raised their outlooks, pointing to steady demand for familiar brands. Consumer confidence fell sharply in November, with the Conference Board’s index hitting its lowest level since April. Chief economist Dana Peterson said concerns around inflation, tariffs, politics and the shutdown continued to weigh on sentiment. Meanwhile, private-sector data from ADP showed employers cut an average of 13,500 jobs a week in the four weeks to 8 November. The latest data added to expectations the Fed may move to cut interest rates next month. (Capital Brief)(Census Bureau)(US BLS)(Reuters)(Bloomberg)(WSJ)

4.

Christmas sales: Webjet Group is pushing to bring its takeover battle to a head before Christmas, according to people familiar with the process, as rival suitors BGH Capital and Helloworld undergo due diligence. A source briefed on the company's internal discussions told Capital Brief that Webjet wants the contest resolved within the next month to reduce uncertainty for shareholders. Private equity group BGH hiked its bid to 91 cents per share on Friday, edging out a 90-cent offer by Webjet rival Helloworld two days earlier. Webjet’s shares, which last closed at 90.5 cents, have remained roughly flat since BGH’s initial offer of 80 cents per share was rejected in May. Since then, both BGH and Helloworld have built up blocking stakes in Webjet of 18.3% and 17.27% respectively, limiting each other’s ability to secure control without broader shareholder support. Due to the accumulated stakes “somebody's probably going to have to force the issue”, the fund manager said. (Capital Brief)

5.

Fragile framework: The US and Ukraine have reached a “common understanding” on key terms of a potential peace agreement with Russia, Ukrainian National Security and Defence Council Secretary Rustem Umerov said. The initial 28-point US plan, drafted in coordination with Moscow, had sparked alarm in Kyiv and across Europe for requiring Ukraine to surrender the eastern Donbas region, abandon NATO membership ambitions, cap its military at 600,000 troops and allow no NATO presence in the country. After talks in Geneva, the blueprint was reportedly narrowed to 19 points, with further discussions required on sensitive issues including territory and security guarantees. “I think we’re getting very close to a deal,” Donald Trump said during the annual White House turkey pardon, but acknowledged “it’s not easy.” As negotiations continued, Russian missile and drone attacks killed at least seven in Kyiv, and Ukraine struck Russian oil facilities in Krasnodar and Novorossiysk. Oil prices fell on the signs of diplomatic progress. (AP)(Reuters)(Bloomberg)

6.

Chair Hassett?: White House economic adviser Kevin Hassett is seen as the frontrunner to be the next Federal Reserve chair, Bloomberg reported citing people familiar with the matter. Hassett is viewed by Donald Trump’s advisers and allies as someone who shares the former president’s stance on cutting interest rates and would bring that approach to the Fed. Treasury Secretary Scott Bessent, who is leading the selection process, told CNBC there is “a very good chance” Trump will announce his pick before Christmas. It comes after last week Trump said: “I think I already know my choice,” and Hassett is the favourite on prediction markets. Bessent has interviewed nearly a dozen candidates since the summer and interviews will conclude this week before a smaller group meets with Chief of Staff Susie Wiles and Vice President JD Vance. (Bloomberg)

7.

Bent buyers’ agents: The Real Estate Buyers Agents Association of Australia (REBAA) urged legislators to bring regulation to bear on the industry as shoddy online advice puts investors at significant risk, and sends alarm bells ringing at major banks. Melinda Jennison, president of REBAA, said Australia’s regulators should be worried as an enormous boom in unlicensed advice on social media relating to property unfolds, with investors being encouraged to make purchases that are not appropriate for their circumstances.Capital Brief reported earlier this month that Macquarie has stopped lending to investors using trusts and company structures to increase their leverage, while fresh claims of lax due diligence surfaced this week. Yet the buyers agents responsible for pushing clients into them continue unabated and unregulated, despite the appropriateness of the advice. “People can take misguided advice from a buyer’s agent and make enormous financial mistakes, and no one's being held to account for it,” Jennison said. (Capital Brief)

8.

Budget debate: Opposition deputy leader and treasury spokesman Ted O’Brien will narrow in on personal income taxes during his biggest speech in the role, warning the “intergenerational compact” between Australians has broken. Addressing the National Press Club today, O’Brien will accuse Treasurer Jim Chalmers of hiking personal income taxes as he seeks to return the budget to balance. “It’s clear Labor’s plan is to paper over its growing deficits by letting personal income taxes rip even faster.” O’Brien will stress that personal income taxes were now $74 billion, or 28% higher than under the former Coalition government, while pushing for Chalmers to stick to quantifiable fiscal rules. In October, Liberal Party leader Sussan Ley committed to taking a personal income tax cut package to the next election as the Coalition attempts to differentiate itself from the Albanese government. O’Brien was a key driver in the party’s decision to scrap its support for a net zero emissions target earlier this month. (Capital Brief)