Google DeepMind’s Nano Banana Pro, launched on November 20th this year, has shocked the AI image generation market with generational improvements in text rendering, multilingual accuracy, 4K output, and the ability to blend up to 14 images while keeping faces consistent. Industry observers have called the model “absolutely bonkers", and its debut triggered a 10% drop in OpenAI’s stock as investors reassessed competitive pressure from Google’s Gemini platform. OpenAI has not yet unveiled a direct counter to Nano Banana Pro, and early chatter from developers suggests growing impatience for a next-generation image model. The cost gap inflicted a far greater wound since Google charges roughly $0.05 to $0.08 per image compared with OpenAI’s $0.19 for DALL-E 3. Nvidia’s multibillion-dollar support for OpenAI strengthens the company’s long-term outlook, but competing directly with Google’s scale and low-cost advantages will be difficult. A smarter path for OpenAI may be to fast-track a next-generation DALL-E that delivers top-tier photorealism and professional-grade creative controls while cutting costs and forming partnerships with tools like Adobe and Figma to secure its place in creative workflows before Google fully capitalises on Nano Banana Pro.
EQUITY
Wall Street rallied on lower inflation, slowing retail sales, and deteriorating consumer confidence, raising bets for a December cut, now priced in with 84.9% probability. Retail earnings from Kohl’s and Abercrombie & Fitch led market gains, though the tech-heavy Nasdaq was weighed down by Nvidia, making this rally more prominent in smaller-caps. Keysight topped chart with a strong third-quarter demand across key tech markets, driving double-digit growth in orders, revenue, and EPS.
GOLD
Gold prices held steady after a strong rally on reinforced market expectations of a Federal Reserve rate cut in December. This consensus of lower rates supports gold, a non-interest-bearing asset, alongside other economic uncertainty and geopolitical tensions. However, gains could be limited by positive development in Russia-Ukraine peace talks, which reduce safe-haven demand.
OIL
Brent crude traded near a five-week low below $62 per barrel, with advancing Ukraine-Russia peace talks potentially lifting sanctions on Russian oil exports. Although US crude inventories fell by a surprise figure of 1.9 million barrels last week, markets remain focused on downward price risk from a sanctions removal. India's December Russian oil imports are set to hit a three-year low, adding motivation toward a peace deal.
CURRENCY
The dollar index fell once again below 100, taking the blow of dovish Fed officials that raised the market probability of a December Fed rate cut. The yen initially rallied on reports the Bank of Japan is preparing for a December rate hike, though gains slowed due to intervention risks to counter its steep decline. Commodity currencies surged, with the New Zealand dollar jumping after the RBNZ signalled an end to easing and the Australian dollar rising on hotter inflation data.
