Than expected last month. Our economics editor faisal islam has been to rustington, in east sussex, to find out if people are feeling any better about their finances. On about their finances. The on about theirfinances. The high on about their finances. The high street, on about theirfinances. The high street, shoppers can on the high street, shoppers can feel inflation is coming but the feelgood factor the Prime Minister will depend on in a general election remains elusive. ,. ,. , in a general election remains elusive. ,. ,. Elusive. Some products are auoin elusive. Some products are going up. Elusive. Some products are going up. Some elusive. Some products are going up, some products. Elusive. Some products are l going up, some products are plateauing. It isjust going up, some products are plateauing. It is just not a good time for everybody. I good time for everybody. I think things are still going up ust think things are still going up just slightly less faster. Gas and electricity just slightly less faster. Gas and electricity have just slightly less faster. Gas and electricity have gone down and electricity have gone down a little and electricity have gone down a little bit and electricity have gone down a little bit so and electricity have gone down a little bit so that and electricity have gone down a little bit so that is and electricity have gone down a little bit so that is a and electricity have gone down a little bit so that is a help. A little bit so that is a help. You a little bit so that is a help. You try a little bit so that is a help. You try the a little bit so that is a help. You try the budget a little bit so that is a help. You try the budget supermarket. Some things are still going up but they were, what can you do about it. ,. ,. ,. , about it. Inflation has now come down about it. Inflation has now come down sharply about it. Inflation has now come down sharply from | about it. Inflation has now come down sharply from double digits in 2022 to april falling close to the Bank Of England target of 2 , as you can see. In the seventh it looks stuck, just falling below 6 . This is due to a decline in Energy Prices including gas sharply negative. But other areas remain high. Overall, there may be a red card next month. The big election question, how much of a change in the British Economic weather has there been . This would be elected defined by economics, called on the day of some big economic numbers were both main parties say they want to fight it on the economy. The government will argue todays number will see an economy at a Turning Point after three years of global price shocks. The opposition will argue there is some blame for the government in the price shocks and that the public does not feel much of a Turning Point themselves. The mixed picture is reflected backin the mixed picture is reflected back in east sussex where this couple are amongst the millions paying the cost of a recently mortgage. To paying the cost of a recently mortgage mortgage. To be honest, interest mortgage. To be honest, Interest Rates mortgage. To be honest, Interest Rates for mortgage. To be honest, Interest Rates for us mortgage. To be honest, Interest Rates for us was| mortgage. To be honest, i Interest Rates for us was the biggest hit. You have a pool of money that comes in every mother normally you set a better aside and say that is what we will have four a holiday or takeaway is but a big part of thatjunk was gone. We are fixed for five years. Previously we have done two years previously we have done two years but previously we have done two years but because it was going up years but because it was going up and years but because it was going up and up years but because it was going up and up and up, we wanted to know up and up and up, we wanted to know where we stood for the next know where we stood for the next five know where we stood for the next five years because it could next five years because it could have gone up higher. On the countrys high street, the past shocks of the past three years to get into and away. Whether families feel that and who gets the credit is the key economic battleground for who gets into Downing Street. Jane foley is head of Foreign Exchange strategy at rabobank inflation. Inflation is down but not as much as expected. Was the decision behind closed doors to hold this election now a gamble that this could be as good as it gets for the british economy for now, do you think . It seems that could for now, do you think . It seems that could have for now, do you think . It seems that could have been for now, do you think . It seems that could have been the for now, do you think . It seems that could have been the case. | that could have been the case. If we look at Public Sector finances, they have disappointed in the last set of data and it meant perhaps there was not room for a cut towards of the autumn and maybe that was a reason. If you look at the economy, yes, we saw the government yesterday celebrating the fact Cpi Inflation was down close to the Bank Of England s target but of course in the market we look a little bit behind the headline measures, and there were errors that were pretty disappointed. They came down but not as much as the market thought and in particular Services Inflation 5. 9 . That does not taint with that 2 Inflation Target and of course Services Inflation is so important for the uk because we are after all services driven economy and if you run a Services Sector business, it is likely the largest part of your outgoing is your wage bills and that reflects the stickiness of Wage Inflation still. There are a couple of key reports still to come between thejune Bank Of England meeting. It is likely we will go into the election with no Interest Rate cut for the touring governments. Cut for the touring covernments. ,. Governments. That is a concern for those governments. That is a concern for those remortgaging governments. That is a concern for those remortgaging later i for those remortgaging later this year. The Interest Rate cuts no longer happening the same way. The country remains on the tax and spending tight rope . It on the tax and spending tight ro e . , on the tax and spending tight roe . ,. , on the tax and spending tight roe . ,. ,. Rope . It certainly does. We have to bear rope . It certainly does. We have to bear in rope . It certainly does. We have to bear in mind, rope . It certainly does. We j have to bear in mind, every quarter, around about 300,000 uk households have to move from an expiring fixed Rate Mortgage to a new fixed Rate Mortgage and really, until we get to september, a two Year Anniversary of these trusts when Interest Rates spike, everybody who has to rotate will be rotating onto a higher rate than they were paying previously and of course as we had in the report some will feel worse off. Liz truss. Mortgage rate holders will feel worse off this year. Mat Mortgage Rate holders will feel worse off this year. Worse off this year. Not a lot of leverage worse off this year. Not a lot of Leverage Spending worse off this year. Not a lot of Leverage Spending was. I worse off this year. Not a lot of Leverage Spending was. When you imagine the difference is will emerge . You imagine the difference is willemerae . ,. , ~ � , will emerge . From the markets persoective will emerge . From the markets persoective that will emerge . From the markets perspective that doesnt will emerge . From the markets perspective that doesnt seem i perspective that doesnt seem to be an awful lot of difference between the two parties. We know from the liz truss era, whoever is the chancellor, they have to keep a very tight fiscal ship. The market will not tolerate anything other than a prudent budget so any growth in the coming few years is not going to come really from the public purse, it really does need from a business investment. Business investment has been pretty weak investment has been pretty weak in the uk in recent years, political uncertainty, brexit, chaotic government under liz Truss Annjohnson as well. It is hoped that a calmer and more stable political environment will allow some of that investment to come back and the labour party understands as does Jeremy Labour Party understands as doesjeremy Hunt Labour Party understands as does jeremy hunt that labour party understands as Doesjeremy Hunt that if labour party understands as does jeremy hunt that if youre Doesjeremy Hunt that if youre going to move business, if youre going to get investment on your side, you need to keep a prudent budget and a very come political backdrop. It is hoped that is what is going to provide the growth we get in the uk in the next few years. So as well as the electorates, the markets is watching as well. Shane foley, thank You Forjoining us. Jane. So what do uk businesses want to see from the next government . Alex hall chen is a Policy Advisor at the bosses� lobby group, the institute of directors. Thank You Forjoining us. There have long been calls to plug the skills gap, Aid Apprenticeships and raise employability skills. The question is can those reforms be delivered . You are absolutely right that Skill Shortages are a top issue for uk businesses. Polly shows Business Leaders side Skill Shortages is having an impact. Whoever forms the next government we hope will make this a key priority area. We are some relatively easy wins that a government can implement into this area, for example establishing an independent body to produce a list of current and future skills needs so we can use the tax system to incentivise businesses to up skill in those areas. What else are your members looking out for over the next 6 weeks . What will they be looking for in these partys manifestoes. To reignite the uk growth and just by tackling the key issues. We mentioned skills, and other key is to develop an industrial strategy which requires a stable and predictable framework for investment. Strategic vision for skills, investment. Strategic vision forskills, innovation, net zero strategy, infrastructure and energy security. What business will want to see from the manifestoes is a clear sense that they have a Long Term Plan for all the issues facing uk businesses. In terms of the inheritance. Theres housing, nuclear, levelling up and overcomplicated tax system lots for the winner to take on. Yes, absolutely. We completely recognise that there is limited fiscal headroom. The focus needs to be on investment in getting the Economy Kickstarted because until Economic Growth in press, nothing else will improve. When government has to fiscal headroom it is important to focus on areas that will give business more confidence to invest in the economy. Thank ou for to invest in the economy. Thank You Forjoining to invest in the economy. Thank You Forjoining us to invest in the economy. Thank You Forjoining us on to invest in the economy. Thank You Forjoining us on the You Forjoining us on the programme. To the us now, where there could be more fuel for a wall street rally that has seen Stock Markets hit new record highs. Investors eyes were all on santa clara, california, home of semiconductor maker, nvidia, whose advanced chips are used in artificial intelligence. Optimism about al has been driving markets higher and nvidia is seen as a vital gauge of demand for the technology. Its profits are soaring. Take a look at this. Nvidia made almost 14. 9 billion in the three months to the end of april. Thats up 628 on the same period last year, making it nvidias most profitable quarter ever. Michelle fleury reports from new york. The number of times that al has been mentioned on Earnings Call this quarter is up sharply from the previous one, which helps explain why investors are so obsessed with nvidias earnings. Its seen as a bellwether for the ai industry, and the chip giants latest results show that demand is off the charts. Nvidia reported a net income of 14. 9 billion. Now, put that another way the company is making around 6. 8 million in profit every hour. As for its revenue for the last three months, it came in at 26 billion, up a whopping 262 on the previous year. About the results, founder and ceo said the next Industrial Revolution has begun. Its business, once built around chips tailored to gaming consoles, has been transformed by demand from data centres, which are at the heart of the generative ai boom and have sent its share price on a tear. The stock . Well, its up 97 this year alone. Lets go to San Francisco and speak to andrew chang, Technology Director at s p global ratings. Thank You Forjoining us. Talk us through these results and why they are better better than expected . Good morning. It was another blockbuster quarter net and exceeded our expectation, Street Expectation as well which were already high to begin with. The bottom line is the h 100 demand is still very strong. Stayed sustainable through two h 200 and likely into blackwell which is being introduced later this year and the company mentioned they will generate with positive development. It confirm the comments we have heard from customers, primarily people like amazon and microsoft, that they are upping their ai capital even further and quicker to meet growing demand. Through to 2024 and into 25. What is the logic behind announcing the stock split . Hat announcing the stock split . Not announcing the stock split . Not a whole lot announcing the stock split . Not a whole lot of announcing the stock split . Iifrt a whole lot of rationales that. I think this is just to make the Retail Investors have more access to the shares. It should not change the company fundamentally. 50 not change the company fundamentally. Not change the company fundamentall. ,. , fundamentally. So more Retail Investors can fundamentally. So more Retail Investors can participate. Fundamentally. So more Retail Investors can participate. Is i investors can participate. Is there any stopping nvidia . At present more competition is gearing up . Present more competition is gearing no . Gearing up . Competition is caearin gearing up . Competition is gearing uo gearing up . Competition is gearing up but gearing up . Competition is gearing up but as gearing up . Competition is gearing up but as of gearing up . Competition is gearing up but as of today, nvidia is a new monopoly here. From a competition perspective, they are chipping away although slowly. More direct competition i think is coming from their own customers, like amazon, google, who have and will continue to develop their own chips. These companies are watching nvidias earnings and probably are not too happy about all the profits they are generating. About all the profits they are generating about all the profits they are areneratin. ,. , generating. Sorry to interrupt, i wanted generating. Sorry to interrupt, i wanted to generating. Sorry to interrupt, i wanted to step generating. Sorry to interrupt, i wanted to step back. Generating. Sorry to interrupt, i wanted to step back. What i generating. Sorry to interrupt, l i wanted to step back. What did we learn also about the companys focus going forwards and whether this is an ai bubble . And whether this is an ai bubble . ,. , bubble . Yes, longer term, we believe this bubble . Yes, longer term, we believe this is bubble . Yes, longer term, we believe this is not bubble . Yes, longer term, we believe this is not a bubble . Yes, longer term, we believe this is not a bubble. I believe this is not a bubble. At Snp We Forecast Ai Investments will roll from about 200 billion in 2020 feet to a 30 increase with nvidia in the forefront. This growth is not going to be so every year. At some point we expect there will be a digestion, pause in purchases, especially by these Large Consumer providers and we do not expect that in 24, frankly not even into 25 but we do expect there to be some volatility over time. Nvidia company has had some volatility not to mention the Semiconductor Industry as a stand along does have cycles. Thank You Forjoining us. Thank you for oining us. T