After posting positive year-on-year revenue growth in Q1, Baidu was unable to maintain its business momentum in Q2. However, the company's AI cloud business saw accelerated growth, with a 14% year-over-year increase in the quarter. In Q2, Baidu introduced ERNIE 4.0 Turbo, expanding its portfolio of generative AI models. Despite a Q2 below expectations, Baidu stands out as the owner of China’s largest search engine, commanding a dominant market share of 52%, according to Statcounter. Given the share price decline in the last few months, combined with the future possibilities, this might be the right time to buy the Baidu share.
 
The Fed cut the US federal funds rate by 50 basis points on 18 September. The forecast is for a further 50bp cut over the rest of 2024. This compares with a market expectation of a further 70 basis points as of late last week. The world's major stock markets (except for Shanghai) have continued a modest uptrend after recovering from the sharp fall in early August. The brief but sharp breakout in the VIX in early August can be seen as a parenthesis or as a warning that new turbulence may arise, sooner or later. The VIX represents an opportunity to hedge one's equity portfolio.
 
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