Good Afternoon. From Wall Street to the Arctic Circle, the heat is on. Markets are still clinging to hopes of a September Fed cut despite hotter inflation data, while Trump’s upcoming Alaska summit with Putin has gold prices shimmering and energy markets on edge. Meanwhile, scientists just gave solar power a 15-fold jolt, and Klarna’s IPO plans are back in the fast lane.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. Stocks retreat after hot US inflation data shakes Fed rate cut hopes

The News: U.S. stocks pulled back from record highs Thursday after hotter-than-expected inflation data dented hopes for aggressive Fed rate cuts next month. July producer prices rose 0.9%, far above forecasts for 0.2%, fueling concerns that Trump-era tariffs are adding upward pressure to costs. The S&P 500 and Nasdaq each slipped, while Treasury yields jumped as traders trimmed bets on a half-point cut. Money markets now price a 92.5% chance of a 25-basis-point cut in September, down slightly from yesterday. The dollar strengthened, European bonds sold off, and Brent crude rebounded 1.7% from two-month lows.

Why It Matters: Markets right now feel like a pendulum, swinging back and forth with every new data point. One day, soft inflation and weak jobs numbers fuel hopes of deep Fed cuts; the next, a hotter-than-expected reading snaps those hopes back in the other direction. The result is a day-by-day reset in investor mood, where rate expectations, yields, and stock prices all pivot on the latest headline. For traders, it’s less a steady march toward a policy pivot and more a case of trying not to get seasick from the swings.
Source: reuters.com

2. John Deere forecasts $600 million in tariff impacts this year

The News: John Deere topped Wall Street’s Q3 earnings and revenue forecasts, but a $200 million tariff hit in the quarter overshadowed the beat. The agricultural machinery giant now expects tariffs to cost nearly $600 million in fiscal 2025, a major drag on profits as global trade tensions linger. Net income fell 26% year-over-year to $1.29 billion, while sales dropped 9% to $12.02 billion. The company trimmed the high end of its full-year outlook and its shares tumbled more than 6% in midday trading.

Why It Matters: Deere’s numbers are a reminder that even the biggest industrial brands aren’t immune to the ripple effects of tariffs. For farmers and ag businesses, higher production costs could translate into pricier equipment at a time when commodity markets are already softer. For Deere, the challenge is balancing short-term pain with long-term growth bets in automation and global expansion. And if trade tensions persist, 2025’s real harvest might be headlines about tariffs, farmers going out of business or higher food prices, instead of tractors.
Source: cnbc.com

3. US bankruptcies are surging past 2020 pandemic levels

The News: Corporate bankruptcies are surging to levels not seen since the early pandemic, with 71 companies filing in July, the highest monthly total in five years. Year-to-date, 446 companies have filed through July, the most for that period since 2010. The wave has hit both Main Street and mall staples, including Forever 21, Claire’s, Rite Aid, Party City, and Del Monte Foods. Tariff-driven cost pressures, lingering pandemic-era miscalculations, like Del Monte’s overproduction of canned goods, and persistently high interest rates have left many companies unable to refinance debt or maintain profitability.

Why It Matters: The bankruptcy spike underscores a growing gap between Wall Street’s optimism and corporate reality in specific sectors. While GDP is growing and markets hover near record highs, high borrowing costs and tariff pressures are pushing overleveraged businesses to the brink, especially in retail and manufacturing. For consumers, it means more empty storefronts and fewer familiar brands; for investors, a reminder that under the shiny surface, the economy still has some structural cracks. On the bright side, there’ll be plenty of prime real estate for Spirit Halloween to set up shop this year.
Source: businessinsider.com

4. Apple brings back blood oxygen monitoring to latest Apple Watches

The News: Apple is restoring blood oxygen monitoring to U.S. Apple Watch Series 9, Series 10, and Ultra 2 models via a software update, 18 months after a patent dispute with Masimo triggered an import ban. The workaround shifts data processing from the watch to the paired iPhone, letting Apple bypass the ruling while the legal fight continues.

Why It Matters: It’s a clever legal sidestep that lets Apple restore a marquee health feature without paying licensing fees, at least for now. But the data only shows up in the iPhone’s Health app, not on the watch itself, and the underlying dispute is far from over. Think of it as Apple winning a battle while the war for your wrist’s health data rages on.
Source: techcrunch.com

5. Scientists achieve 15-fold boost in solar generator efficiency

The News: University of Rochester researchers have developed a solar thermoelectric generator (STEG) that’s 15 times more efficient than current models, without altering the semiconductor materials. Instead, they used femtosecond lasers to create “black metal” tungsten that traps heat, added a plastic cover for a greenhouse effect, and laser-etched aluminum heat sinks to improve cooling.

Why It Matters: STEGs, which convert heat into electricity, have long lagged behind solar panels in efficiency. This breakthrough could power LEDs, wearables, IoT sensors, and off-grid systems using sunlight or waste heat. If scaled, it could turn more of the sun’s heat, and even industrial waste, into usable power.
Source: pv-magazine-usa.com

1. Klarna sees revenue jump 20% but losses widen ahead of IPO

The News: Swedish buy now, pay later giant Klarna reported Q2 revenue that rose 20% year-over-year to $823 million, fueled by 38% growth in its U.S. business and new partnerships with Walmart, eBay, and JPMorgan Payments. The Swedish BNPL giant posted its fifth straight quarter of adjusted operating profitability but saw net losses widen to $53 million on higher credit provisions, restructuring charges, and stock-based compensation. Bloomberg reports the company may revive its delayed NYSE IPO as soon as September.

Why It Matters: Klarna’s Q2 performance paints a complex picture: soaring U.S. momentum and operational profits, but widening losses that raise red flags just as it eyes an IPO. It’s riding the wave of a hot IPO market—, ust look at Figma’s 250% debut leap or crypto exchange Bullish surge yesterday. Those blowout debuts reignited investor appetite, but they also set the bar high and highlight how easy first-day pops can obscure long-term risks. For Klarna, the challenge is striking the balance: show explosive growth without evaporating future gains. In short, Klarna’s IPO could either ride the wave or wipe out on it.
Source: wsj.com

2. UK economic growth slows but tops forecasts

The News: The UK economy grew 0.3% in Q2, slowing from 0.7% in Q1 but beating forecasts of just 0.1%. Services led the gains, with computer programming, healthcare, and vehicle rentals offsetting weak retail sales. Construction also rose 1.2%, helped by hot, dry weather. Business investment, however, dropped 4% and household spending dipped, suggesting underlying fragility.

Why It Matters: It’s a mixed picture. Better-than-expected growth keeps the UK in contention for the fastest-growing G7 economy in the first half of 2025, but the resilience could make the Bank of England more hesitant to cut rates. With inflation forecast to peak at 4% later this year and Trump’s tariffs already denting exports to the U.S., the risk is that this sunny quarter gives way to cloudier conditions. Think of it as a summer BBQ: good turnout now, but storm clouds may already be on the horizon.
Source: bbc.com

3. Trump lays out Alaska summit “chess” strategy with Putin

The News: Ahead of Friday’s meeting in Anchorage, President Trump says there’s a 25% chance talks with Vladimir Putin fail outright but hopes to use the session to set up direct Putin-Zelenskyy negotiations, potentially involving land swaps. Trump hinted at economic incentives, including Arctic resource access, and warned of “severe consequences” if Russia resists peace. Putin called U.S. efforts “energetic and sincere,” while Zelenskyy said there’s “no sign” Moscow wants to end the war.

Why It Matters: Beyond Ukraine, the summit could reshape Arctic energy cooperation, rare earth mineral access, and sanctions policy, swinging commodity markets already jittery from gold’s 35% surge this year. A deal might ease some U.S. sanctions and open new trade channels; failure risks a sanctions spiral and more volatility.
Source: foxnews.com

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