Highlights for this morning: OpenAI struck a deal with Foxconn, Walmart warned of inequality

The Japanese government approved the largest stimulus package since the pandemic at 21.3 trillion yen (about $135 billion), aimed at fighting inflation, supporting households and building defense capabilities. In the U.S., on the other hand, there is growing concern about rising inequality, with Walmart reporting a decade-long record gap between low- and high-income shoppers. These and other topics are in our review of key events for the morning of November 21.

OpenAI has partnered with Taiwan's Foxconn to design and manufacture AI data center components in the U.S., from servers to power, cooling and network infrastructure, CNBC reports.

The companies will build multiple generations of AI servers in parallel, with Foxconn producing key modules in its U.S. factories. OpenAI will have early access to the new systems and will be able to purchase them, which should speed up infrastructure deployment and ensure long-term capacity domestically. According to Sam Altman, this is a step toward ensuring that "the core technologies of the AI era are made in the U.S." and an opportunity for reindustrialization.

The deal is in line with the large-scale infrastructure partnerships of OpenAI, which has previously signed agreements with major players such as Nvidia, Microsoft, Google, Amazon and Oracle, the channel notes.

Asian markets fell sharply on Friday after U.S. tech giants fell and expectations of a December Fed rate cut eased, CNBC reported. Japan's Nikkei 225 lost more than 1.5% at the start of trading, while SoftBank shares collapsed more than 10%, pulling down the entire Japanese technology sector. Korea's Kospi index also sagged more than 4% after Samsung and SK Hynix shares fell. Other markets in the region were also down, with Australia's ASX 200 down 1.3%, Hong Kong's Hang Seng down almost 2% and mainland China's CSI 300 down 1.1%.

The negativity was reinforced by strong data on employment in the U.S., which reduced the likelihood of a rate cut by the Fed, the channel points out: the markets estimate only about 40% probability of its reduction in December. U.S. indices also ended the session the day before in the negative - the Nasdaq lost more than 2%, and the S & P 500 rolled back by 1.6% after the day's growth of almost 2%. The cryptocurrency market also continued to sell off: bitcoin fell to a seven-month low, while ether hit its lowest level since July.

Japan's Cabinet approved a 21.3 trillion yen (about $135 billion) stimulus package in an effort to support the slowing economy and cushion the impact of high inflation on households, CNBC reported. Measures include subsidies for electricity and gas, eliminating gasoline taxes, expanding grants for local governments and creating a ten-year fund for shipbuilding. The government also intends to accelerate defense spending growth to 2% of GDP by 2027.

The economic package reflects worries about lingering inflation, which has held above the Bank of Japan's target for 43 consecutive months. Rising prices are combined with a weakening yen and a slowing economy: in the second quarter, GDP contracted for the first time in a year and a half. Against this background, the authorities are warning of possible currency intervention.

The gap between Americans who can and can't afford everyday goods is widening, Walmart CFO John David Rainey said, Yahoo Finance reports. Rising grocery prices are a key factor: prices are still about 25% above pre-pandemic levels, and while inflation within Walmart's basket has fallen to about 1%, the core rate remains too high for lower-income families. This is leading to an increase in "frugal behavior" - shoppers are increasingly putting off purchases, opting for cheaper items and looking for maximum value.

Against this backdrop, Walmart reported strong third-quarter results: comparable-store sales in the U.S. rose 4.5%, revenue increased 6% to $179.5 billion, exceeding forecasts, and the company's stock soared more than 6%, the publication noted. The retailer also raised its revenue and profit forecast for the year.

- Japan's broad Topix index was falling by 0.14%. Benchmark Nikkei 225 - by 2.3%.

- Hong Kong's Hang Seng index was down 1.7 percent, while mainland China's CSI 300 index was down 2 percent.

- In South Korea, the Kospi index collapsed 3.8 percent and the Kosdaq fell 3.1 percent.

- Australia's S&P/ASX 200 was down 1.6 percent.

- Nasdaq 100 futures were little changed, while the S&P 500 was up 0.3 percent and the Dow Jones Industrial Average was up 0.4 percent.

This article was AI-translated and verified by a human editor