Good Afternoon. While it’s not a national holiday (unless you count National Chocolate Chip Cookie Day, which we do), Wall Street is treating it like a celebration. Stocks are bouncing back like a toddler on a trampoline, Apple launches “Answers” search team, and Elon Musk just got a $29 billion reason to smile. Let’s dive in.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. Apple quietly builds ChatGPT rival with new 'Answers' search team

The News: Apple has quietly launched a new internal group called "Answers, Knowledge and Information" (AKI) to build its own AI-powered search engine—one that can crawl the web and answer general knowledge questions, much like ChatGPT. Led by ex-Siri exec Robby Walker, the team’s goal is a stripped-down “answer engine” that powers smarter searches across Siri, Spotlight, and Safari. This marks a big pivot for Apple, which has previously relied on OpenAI for chatbot features rather than building its own.

Why It Matters: Apple is feeling the heat as rivals like Google and OpenAI race ahead in AI-powered search. With antitrust scrutiny threatening its lucrative Google search partnership, Apple is finally moving to compete head-to-head with generative AI giants. If successful, Apple’s in-house answer engine could transform how millions of iPhone and Mac users find information and help Apple regain ground in the most important tech race of the decade.
Source: mashable.com

2. Stocks rebound on US rate cut bets

The News: Global stocks staged a comeback Monday as investors bet on U.S. interest rate cuts after Friday’s weak jobs report signaled a cooling labor market. Major U.S. and European indices rose more than 1%, with London bank stocks jumping on positive loan news. However, markets remain cautious as President Trump’s new tariffs on dozens of countries loom and leadership changes at the Fed fuel uncertainty about future monetary policy.

Why It Matters: A slower jobs market has investors hoping for Fed rate cuts to support the economy, boosting stock prices for now. But with sweeping new tariffs set to kick in and a possible Trump-aligned shakeup at the Fed, the outlook remains volatile. Watch for further market swings as trade tensions, policy changes, and Fed decisions collide. Traders have now raised their bets for a September rate cut to 80% from 61% a week prior, according to CME data.
Source: finance.yahoo.com

3. Tesla grants Musk massive pay deal

The News: Tesla has granted CEO Elon Musk a new $29 billion stock award to retain him as the company shifts focus from slowing electric vehicle sales to ambitious robotaxi and AI initiatives. The 96 million-share grant designed as an “interim” payment, while Musk’s $50B 2018 pay package remains tied up in court, requires Musk to stay on as a top executive for two more years and hold the shares for five years. Tesla plans to propose a longer-term pay plan at its November investor meeting.

Why It Matters: The move aims to keep Musk at the helm as Tesla’s public face and key strategist during a high-stakes transition. Investors are watching closely as Tesla faces stiff EV competition and bets big on new technologies. The interim deal signals the board’s commitment to Musk, despite legal fights and growing concerns about his political activity and focus across multiple companies. Investors who trust Musk can breathe a little easier, especially as robotaxi competition from China heats up. More on that in the World News section.
Source: foxbusiness.com

4. Berkshire shares dip after earnings decline

The News: Berkshire Hathaway shares slipped 3% after Warren Buffett’s conglomerate reported a 4% drop in Q2 operating earnings to $11.16 billion, weighed down by lower insurance profits and a surprise $3.8 billion write-down on its Kraft Heinz stake. Despite record cash holdings of $344.1 billion, Berkshire disappointed investors by halting stock buybacks and continuing to sell off equities. The company also confirmed no repurchases through July, even as shares pulled back 12% from May highs.

Why It Matters: With Buffett set to retire and Greg Abel preparing to take over as CEO, Berkshire’s latest results raise questions about its next chapter. Investors had hoped for buybacks or a major deal but instead saw continued caution, even as cash continues to pile up. The Kraft Heinz write-down highlights challenges in legacy investments, while lack of new catalysts may pressure the stock until management signals a new strategy or returns more capital to shareholders. Until then, that cash pile earns about another $1 billion per month in interest payments.
Source: cnbc.com

5. Ethereum turns 10, now processes more than Visa and Mastercard

The News: Ethereum quietly celebrated its 10th anniversary last week, now running the invisible backend of global finance. Launched in a Berlin loft with no user interface, Ethereum’s blockchain has become the platform of choice for programmable money, smart contracts, and tokenized assets. In 2024 alone, it powered over $28 trillion in stablecoin transactions—more than Visa and Mastercard combined and now supports nearly half of all stablecoin activity. Major players like BlackRock, JPMorgan, and Deutsche Bank run real-world assets and money market funds on Ethereum, while retail apps like Robinhood and Coinbase use Ethereum-based tech for 24/7 stock and crypto trading.

Why It Matters: Ethereum’s low-key milestone hides a giant leap: Wall Street, Big Tech, and DeFi now settle on the same rails. Its transition to proof-of-stake slashed energy use by 99%, and layer-two solutions like Arbitrum and zkSync keep scaling up. As tokenization of real-world assets takes off, Ethereum is the stability layer trusted by both banks and blockchain natives. For the next decade, odds are you’ll be using Ethereum every day, even if you never know it.
Source: mitrade.com

1. European bank shares hit highest level since 2008 crisis

The News: European bank stocks have surged to their highest levels since the 2008 financial crisis, with the STOXX 600 Europe Banks index jumping 1.9% this week and nearly 38% year-to-date. This turnaround comes after the European Banking Authority’s 2025 stress test showed banks can withstand major economic shocks, thanks to stronger capital positions and improved profitability. Standout results from banks like Erste Group and Societe Generale boosted confidence further, while heavyweights like HSBC and Santander reached highs not seen in over a decade.

Why It Matters: After years as the market’s “problem child,” European banks are suddenly the cool kids, posting profits, passing stress tests, and outpacing their U.S. rivals (at least for now). Higher interest rates, a more resilient economy, and cheaper stock valuations have investors piling in. But with political drama, trade war tremors, and possible limits to growth on the horizon, the real test will be whether this Cinderella story has a second act or if midnight is closer than it looks.
Source: ft.com

2. Baidu partners with Lyft to bring robotaxis to Europe

The News: Chinese tech giant Baidu and U.S. ride-hailing company Lyft have announced a strategic partnership to deploy Baidu’s Apollo Go robotaxis in Europe, starting with Germany and the UK in 2026, pending regulatory approval. The move follows Lyft’s acquisition of FreeNow, which gave it access to 180+ cities across nine European countries. Baidu’s sixth-generation RT6 autonomous vehicles, packed with advanced safety features and powered by its Apollo AI, will be available directly through the Lyft app, blending seamlessly with human-driven rides.

Why It Matters: This tie-up marks Baidu’s first foray into the European rideshare market and is a bold step in the global race to bring robotaxis to city streets. For Lyft, it’s a play to leapfrog competitors in Europe by combining local know-how with Baidu’s proven self-driving tech, which has already racked up over 11 million rides in China. The deal ramps up pressure on Uber, Waymo, and other players to expand faster and smarter. If successful, it could reshape urban transport, turbocharge competition, and put Europe on the map of the autonomous vehicle revolution. Remember when we thought a CD player in a car was high-tech?
Source: prnewswire.com

3. Russia Says It Is No Longer Bound by Intermediate Missile Moratorium

The News: Russia announced Monday it is abandoning its voluntary moratorium on deploying land-based intermediate-range nuclear missiles, directly blaming the U.S. and NATO for “escalatory” missile deployments in Europe and the Asia-Pacific. Moscow’s foreign ministry claims the U.S. is already transferring systems previously banned by the now-defunct Intermediate-Range Nuclear Forces (INF) Treaty to NATO allies in Europe and bases in the Pacific. In response, Russia warned it will take unspecified "military-technical" steps to restore strategic balance, calling out recent U.S. missile activities in Denmark, the Philippines, and Australia as direct threats.

Why It Matters: This move marks a sharp escalation in U.S.-Russia tensions and signals the formal end to post–Cold War nuclear restraint in Europe. The 1987 INF Treaty, which eliminated an entire class of nuclear missiles, unraveled after the U.S. withdrew in 2019 citing Russian violations, and Russia’s announcement now opens the door to a renewed arms race. For the U.S. and NATO, the threat means increased security risks and the prospect of Russian nuclear-capable missiles returning to Europe’s doorstep for the first time in decades. For global markets and geopolitics, it’s a reminder of how quickly great-power tensions can upend assumptions about security and stability.
Source: newsweek.com

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Lasting for only a very short time; quickly fading or disappearing.

“The beauty of the sunset was evanescent, vanishing within moments.”