Money blog: Apple overtaken as world's second most valuable company (2024)

Nvidia has overtaken Apple to become the world's second most valuable public company.

The AI microchip maker's share price has risen to be worth more than $3trn (£2.34trn) for the first time.

Only Microsoft is a more valuable company listed on a stock exchange, while Apple has fallen into third place.

Nvidia shares rose 5% after a year of growth - with one share now costing $1,224.40 (£957).

Nvidia's chips are powering much of the rush into AI, which has seen it become a poster child of the AI boom.

Demand for its processors from the likes of Google, Microsoft and Facebook owner Meta have been outstripping supply.

Nvidia's shares - up nearly 150% so far this year - are also being boosted by an upcoming move to split its stock by 10-to-one on Friday.

Ian Coatsworth, investment analyst at AJ Bell, said the stock split will "bring its share price down and make it more affordable to investors".

Tech companies - including Microsoft and Apple - have been racing to develop AI and embed it in their products.

Nvidia is a younger company than some of its peers, having been founded in 1993. Similar to many tech giants, it was founded in California in the US.

Britain is less likely to lose power this winter than it was last year, according to the company that runs the grid.

National Grid's Electricity System Operator (ESO) said it expects power plants, wind farms and other generation methods to be able to provide more than enough power to meet demand this time around.

In an early outlook, it said the grid would have an average margin - the difference between supply of electricity and demand for it - of 5.6 gigawatts (GW) this coming winter.

This means the period when demand might outstrip supply is just 0.1 hours.

The increased margins are in part because of improved capacity, thanks to a new 765km high-voltage cable that connects the UK's electricity network with Denmark.

The cable, called an interconnector, is known as the Viking Link, and started transporting wind power between the two countries in December.

New gas generation, growth in battery storage capacity and increased generation connected to the distribution networks have also contributed to the higher margins.

Despite this, ESO's chief operating officer Kayte O'Neill has said it will still need to be "vigilant" due to uncertainties around global energy markets.

"As a prudent system operator we remain vigilant, continuing to monitor potential risks and working closely with our partners to establish any actions necessary to build resilience," she said.

The continent's energy system has been forced to reinvent itself in recent years, faced with potential gas shortages due to the war in Ukraine.

The 20 countries using the euro currency have seen interest rates cut from record highs following progress in the battle against inflation over the past two-and-a-half years.

The Frankfurt-based European Central Bank (ECB) said it was "appropriate" to trim its main deposit rate from 4% to 3.75%.

It followed an assertion last month by its president, Christine Lagarde, that the pace of price increases was now "under control".

But the Bank declared in a statement that the battle was not won - signalling data-driven caution on future policy decisions in the months ahead.

Its staff even revised upwards their forecasts for inflation this year and next.

As we have been discussing in Money this week, the cut before the US and UK could weaken the euro - potentially making Britons' holiday money go further.

McVitie's is selling a new flavour of Jaffa Cake - and it marks the first ever non-fruit flavour since the treat launched in 1927.

Shelves across the country will soon be stocked cola bottle flavoured cakes.

The new flavour will launch in Asda stores from 10 June and be available in other UK supermarkets - including Tesco, Sainsbury's, Morrisons, Iceland and Co-op - in the coming weeks.

Adam Woolf, marketing director at McVitie's, said: "Jaffa Cakes Cola Bottle is certainly one of our more unexpected product launches – stepping away from fruit flavours for the very first time.

"Jaffa Cakes have always stood out from the crowd (and the biscuit aisle), but we really wanted to try something new with this one. It's no doubt going to cause some debate among our Jaffanatics, and we can't wait to hear what they think."

BySarah Taaffe-Maguire, business reporter

Are we entering an era of interest rate cuts? Probably not. Or at least, not yet.

But the European Central Bank (ECB) which controls the euro currency does look set to make their first cut in four years this afternoon.

And Canada yesterday became the first country in the club of G7 industrialised nations to bring down borrowing costs by lowering their benchmark interest rate.

The UK, however, isn't currently expected by markets to make a cut until September.

Elsewhere, oil prices remain below $80 but are slightly more expensive than earlier this week. A barrel of the benchmark Brent crude oil costs $79.10.

The good news for people going on holidays to countries using the euro continues - the pound is still doing well against the currency with £1 equal to €1.1757.

That could go even higher after the ECB decision at 1.15pm. A pound also can buy $1.2783.

Like in the US, the UK's most valuable companies have become more valuable as the FTSE (Financial Times Stock Exchange) 100 and 250 indices are up 0.33% and 0.41% respectively.

Every ThursdaySavings Champion founder Anna Bowesgives an insight into the savings market and how to make the most of your money...

Can you believe we are almost halfway through 2024?

Although the rate rises that we have seen this year have slowed compared with the previous couple of years, and we have even seen some falls, savers are now able to find hundreds of savings accounts that pay an interest rate higher than inflation.

The latest data from the Office for National Statistics showed inflation was still higher than predicted, however - which means the anticipated base rate cut is likely to be pushed back again – into the second half of this year.

While bad news for borrowers, this is great news for savers.

Incredibly, the latest statistics from the Bank of England show there is over £253bn sitting in current accounts and savings accounts earning no interest at all.

With top rates available paying 5% or even a bit more, that is potentially £12.65bn of gross interest that is not being claimed by savers.

So now really is the time to move your money if you have cash languishing, earning less than inflation, especially if you can lock some away with a fixed rate, as a base rate cut will happen at some stage, we just don't know when.

Easy access

If you think you'll need access to your money, an easy access account is a wise choice.

The base rate cuts that we have been waiting for are yet to start, so the top rates on offer are still paying almost as much as they were at the beginning of the year.

Fixed-term bonds

There is a strange phenomenon with fixed-term bond rates at the moment: the longer you tie up your cash, the lower the interest rates on offer.

Normally, you'd expect to be rewarded for tying up your cash over the longer term - but base rate forecasts have flipped this.

Fixed-term cash ISAs

A frequent complaint that I hear from savers is that the tax-free rates on ISAs are usually lower than the pre-tax rates on the equivalent non-ISA accounts – and this is particularly true with fixed-term accounts.

As many more savers are paying tax on their interest once again, cash ISAs are more popular than ever, as the tax-free rate of the ISA can still be considerably more than the interest earned after tax has been deducted on the non-ISA bond equivalents.

The renowned "50 Best" list of the world's best restaurants was revealed in Las Vegas last night - with a new restaurant taking top spot.

Disfrutar in Barcelona took the crown from Central in Lima, Peru (previous winners are ineligible and instead join a Best of the Best list).

Eating the standard menu costs £247 (€290) - with an extra £136 (€160) if you want the wine pairing.

To be fair, you do get around 30 courses.

They also offer a unique menu for your table for between €1,050 and €390 per person - the more people, the less it costs.

The 50 Best list says: "The combination of brilliantly imaginative dishes, unsurpassed technical mastery and playful presentation results in the dining experience of a lifetime, as full of surprises as it is memories."

Dishes include:

• Caviar-filled Panchino doughnut
• Frozen gazpacho sandwich
• Thai-style cuttlefish with coconut multi-spherical
• Squab with kombu spaghetti, almond and grape

Two UK restaurants made the top 50 but the UK was eclipsed by countries from across South America as well as Thailand, Italy, France and Spain.

London's Kol moved up slightly to 17, while Ikoyi, which we reported on a few weeks ago following a link-up with Uber Eats, came it at 42.

Three whiskies created by Aldi have been named among the best in the world.

The budget supermarket took home three golds at the International Spirits Challenge awards for:

• Glen Marnoch Highland Single Scotch Whisky (£18.49, 70cl)
• Highland Earl Blended Scotch Whisky(£16.89, 1L)
• Samuel Joe’s Straight Kentucky Bourbon(£14.99, 70cl)

In the single malt category, Aldi's submission beat the likes of M&S as well as premium brand Lochlea Distillery, which costs around £45 a bottle.

Other gold winners included Johnnie Walker, Jameson and Glenfiddich.

Aldi was also given three silver medals for its Highland Black Blended Scotch Whisky, Glen Marnoch Speyside Single Malt Whisky and Glen Marnoch Islay Single Malt Whisky.

"This industry recognition helps to prove that great quality doesn't have to come with a luxury price tag and customers can be confident they're saving money with us, whilst getting the best whisky taste and experience," said Julie Ashfield, managing director of buying at Aldi UK.

As we've previously discussed in the Money blog, holidaying Brits can avoid costly roaming charges by using their own travel eSim - and there's now another mainstream option to choose from courtesy of Uswitch.

UK travellers who want to use their phones abroad usually rely on their roaming plans and data passes or sign up for a local SIM at their destination, which can often require time-consuming ID checks and additional documentation.

That can be costly.

Since Brexit, the UK no longer benefits from several EU-mandated rules, including a worldwide data roaming cap of £45.

Roaming costs, especially in countries outside the EU, can now be as high as £9 for every 1MB of roaming data - equivalent to streaming Netflix for 14.4 seconds.

The savings with eSims are potentially massive, as our cost of living specialist Megan Harwood-Baynes outlined here last month...

USwitch product

Using 10GB of data in Morocco on a UK Pay As You Go network with uncapped fees would cost on average of £56,166, compared to just £17 with a USwitch eSim.

eSims are available online and are entirely digital - meaning customers don't need to visit a phone network store or wait for a physical SIM card to arrive in the post.

Most new smartphones are already compatible with eSim technology, including every iPhone released from 2018 onwards and most Samsung devices released from 2020 onwards.

"eSIMs offer them a newfound freedom that's cheaper than traditional data roaming and with none of the hassle of finding a local SIM card provider when you arrive," said CEO and co-founder of (USwitch's partner in this project) eSIM Go Zacchary Couldrick.

Asda has gone from selling the cheapest petrol out of the supermarket chains to now costing the most, according to the latest fuel price figures.

RAC says Asda's big rivals, Morrisons, Sainsbury's and Tesco, all sold a litre of unleaded petrol for 2.1p less on average at the end of May.

Diesel was also coming out costlier at Asda, with the supermarket 2.5p per litre more expensive than the rest of its supermarket competition.

Drivers are being urged - by the RAC - to change their refuelling habits to find the best prices.

What makes up the cost of a litre of petrol?

The price you pay for fuel at the pumps is governed by wholesale fuel prices, which are affected by several factors.

These include the global price of crude oil, which itself is governed by supply and demand and oil refinery production and capacity.

Distribution costs, fuel duty (currently 52.95p a litre in the UK), VAT (currently at 20%) and profit margins dictated by fuel retailers all come into account when working out why prices of fuel rise and fall.

Fuel duty rate and VAT largely stay the same, though oil prices and the strength of the pound to the US dollar (refined fuel is sold in dollars per metric tonne) can cause prices to be extremely volatile.

How have UK petrol prices changed in the 21st century

Unleaded fuel in 2000 had an average cost of 80.35p, while the average cost of diesel in the same year was 81.73p.

The lowest average cost for unleaded petrol in the last 24 years came in 2002, where the average was 73.5p. Diesel also had its cheapest average cost in this year at 75.6p.

Unsurprisingly, the most expensive average prices for fuel have fallen in recent years. In 2022, the average cost of unleaded fuel was 165.06p and the average cost of diesel was 178.13p.