Good Afternoon. While temperatures are rising, so are farmers’ tempers. Corn syrup’s on the way out, and AI chip profits are flexing harder than a gym selfie. Let’s dive into what’s moving your money today.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. Trump’s bid to add cane sugar to Coke would cost America thousands of agricultural jobs, trade group warns

The News: President Trump announced a push for Coca-Cola to swap corn syrup for cane sugar in its U.S. products, sparking backlash from corn industry leaders who warn the move could cost thousands of American farm jobs and disrupt the agricultural supply chain. While some economists argue the switch would have only a small direct impact on the corn market, others say the symbolic shift could fuel a broader consumer movement led by the “Make America Healthy Again” campaign against corn syrup and other processed ingredients.

Why It Matters: Trump’s push puts him at odds with powerful U.S. farm interests, raising the risk of unintended economic fallout for corn producers, processors, and allied industries. Beyond Coca-Cola, the move signals a wider shift in food policy and consumer attitudes, with potential for further restrictions or labeling mandates on processed foods. With agricultural jobs and trade already under pressure from tariffs and policy changes, this sweetener shake-up underscores the complex balancing act facing the administration and the food industry between health trends, economics, and political loyalties.
Source: fortune.com

2. US jobless claims fall for fifth-straight week

The News: US initial jobless claims fell by 7,000 to 221,000 last week, marking the fifth straight week of declines and hitting the lowest level since mid-April. The drop surprised economists who had expected an uptick, reinforcing signs that the labor market remains resilient despite economic headwinds and ongoing uncertainty.

Why It Matters: The continued strength in jobless claims suggests that the US labor market is withstanding higher interest rates and sluggish economic growth better than anticipated. With unemployment steady and job creation ongoing, this report gives the Federal Reserve more breathing room to keep rates steady, even as inflation stays above target.
Source: morningstar.com

3. Apple completes $16.5B back tax payment to Ireland

The News: Apple has officially closed a nine-year legal saga by fully paying $16.5 billion in back taxes to Ireland, as ordered by the European Union. The payment, which had sat in an escrow account during years of appeals, marks the end of a complex dispute over Apple’s low tax arrangements with Ireland, which the EU ruled were illegal state aid.

Why It Matters: This settlement not only closes one of the largest tax cases in EU history, but also underscores the growing regulatory scrutiny faced by Big Tech over corporate tax practices in Europe. The outcome may set a precedent for how tech giants structure their operations and how aggressively governments pursue cross-border tax revenue in the future.
Source: 9to5mac.com

4. Record share of US homebuilders reduce prices amid weak demand

The News: A record 38% of U.S. homebuilders cut prices in July up from 37% in June and the highest level since tracking began in 2022 as weak buyer demand and high mortgage rates continue to stall the housing market. Major builders like Lennar, Toll Brothers, and DR Horton are offering average price cuts of 5% and increasingly generous incentives, including mortgage rate buydowns, to entice reluctant buyers and move inventory amid the toughest market in years.

Why It Matters: With builder confidence mired in negative territory for over a year, these price reductions and incentives highlight ongoing affordability struggles and softening demand, despite steady U.S. job growth. The aggressive tactics signal that homebuilders are feeling the pressure to keep sales moving and suggest more opportunities for buyers.
Source: nahb.org

5. Senator Warren Targets Private Credit

The News: Senator Elizabeth Warren is demanding more scrutiny of the $1.7 trillion private-credit market, pressing major ratings agencies to explain how they assess the risks of loans made by private equity and other nonbanks just as the Trump administration moves to open up these riskier investments to everyday Americans through retirement plans like 401(k)s.

Why It Matters: Warren’s call spotlights the rapid growth and opacity of private credit, a market many regulators say could pose systemic risks if not properly monitored. As the industry expands and more Americans could gain access, the stakes for transparency and oversight are rising, raising fresh questions about whether the next financial crisis could be hiding in Wall Street’s newest lending boom.
Source: wsj.com

1. German startup Q.ANT raises €62 million to develop light-based AI chips

The News: Stuttgart-based startup Q.ANT has landed €62 million in Series A funding, the largest ever in European photonic computing, to accelerate the rollout of its light-powered processors, promising up to 30 times greater energy efficiency and 50 times higher performance for AI and high-performance computing applications as traditional chip technology reaches its physical limits.

Why It Matters: As AI and data centers strain global energy resources, Q.ANT’s breakthrough in photonic computing could mark the next leap in both speed and efficiency potentially redefining the tech industry’s hardware backbone. The record investment signals strong confidence that light-based chips may soon challenge silicon as the future standard for high-performance, sustainable computing worldwide.
Source: techfundingnews.com

2. Chinese authorities use Massistant malware to extract phone data

The News: Security researchers have uncovered that Chinese authorities are deploying Massistant malware to extract data—including messages, photos, and locations—from seized phones at border checkpoints, raising major privacy concerns for both residents and travelers. Developed by surveillance tech giant Meiya Pico, Massistant is part of a suite of forensic tools now used by authorities across China and, increasingly, by partner countries abroad.

Why It Matters: Massistant’s use highlights growing risks of digital surveillance in China, where phones can be searched and entire data profiles extracted without a warrant or user consent. The spread of such technology, especially to countries partnered in China’s Belt and Road Initiative, signals a broader shift toward invasive phone surveillance worldwide making device privacy a pressing concern for anyone crossing these borders.
Source: techcrunch.com

3. TSMC posts record quarterly profit on AI demand

The News: TSMC, the world’s leading maker of advanced AI chips, posted a record $13.5 billion quarterly profit up ~61% year-over-year driven by soaring AI demand from clients like Nvidia. However, TSMC warned that upcoming U.S. tariffs on semiconductors and a strong Taiwan dollar could hit its future profits, with executives signaling a more cautious outlook for the end of 2025 despite booming sales and an upgraded annual revenue forecast.

Why It Matters: TSMC’s results underscore the explosive global demand for AI chips, but also highlight the mounting risks posed by trade tensions and currency shifts. As TSMC and other chipmakers ramp up investments in U.S. factories, potential tariffs and weaker iPhone sales in China could slow earnings growth raising questions about the ongoing AI boom’s impact on the broader tech supply chain and global markets.
Source: finance.yahoo.com

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The process by which an organism maintains a stable internal environment despite external changes.

“Sweating helps the human body achieve homeostasis during hot weather by cooling it down.”