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A recent US Customs and Border Protection ruling suggesting tariffs on gold imports sent shockwaves through the global gold market, causing New York futures to hit a record high above $3,530 an ounce before plummeting when the Trump administration indicated no tariffs would apply. Announced privately on July 31 and publicized on Friday, the ruling threatened the intricate network of banks, refineries, and couriers that underpin the $1.1 trillion gold trade, particularly affecting key hubs like New York, London, and Switzerland. Swiss refineries halted US shipments, and Asian sales paused, while a record price gap emerged between New York and London markets. Industry experts warned of dire consequences for the Comex futures market and the fragile gold trade system, exacerbated by potential tariffs on key suppliers like Canada and Mexico under Trump’s trade policies. The tariff threat, part of broader trade war volatility, highlighted the market’s vulnerability, with thin-margin refineries at risk of collapse. However, hope persists as the administration plans an executive order to clarify the situation, potentially averting a crisis. This incident underscores the profound impact of policy uncertainty on commodities, as traders, banks, and logistics firms brace for further changes.
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Duolingo, a language-learning platform, faced a dramatic stock roller-coaster this week, as reported by Yahoo Finance. Initially, the company saw a 30% stock surge after a stellar quarterly performance, driven by efficient AI use that boosted gross margins and subscriber growth. However, the gains were slashed in half following OpenAI's debut of GPT-5, a model capable of creating a language-learning app in minutes, posing a direct threat to Duolingo's market. This led to a further 5% stock decline by Friday. The incident underscores the double-edged nature of AI: while Duolingo leverages it for innovation, including AI conversational tools, it also faces risks from competitors’ rapid advancements. OpenAI's ability to generate software on demand highlights the vulnerability of software firms in the AI era, where new technologies can quickly disrupt established brands. The article also notes Duolingo's prior warnings about such risks in its 10-K filing. This case exemplifies the broader challenges in the tech industry, where AI can both propel and jeopardize companies, emphasizing the competitive edge of AI infrastructure over software in Wall Street's eyes.
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Michigan Governor Gretchen Whitmer met with President Donald Trump in the Oval Office to discuss the detrimental impact of his tariffs on the state's automotive industry, a vital economic driver. Armed with a visual presentation, Whitmer highlighted how tariffs on steel, aluminum, and parts from China, Canada, and Mexico threaten factory jobs, profits, and competitiveness, especially against German, Japanese, and South Korean automakers facing lower import taxes. Despite this being her third meeting with Trump since January, no concrete commitments were made. The tariffs have already cost companies like Ford and GM billions, hampering reinvestment in domestic production—a goal Trump champions. Whitmer also sought federal support for ice storm recovery and Medicaid changes. Michigan, a swing state that helped Trump win in 2024, has lost 7,500 manufacturing jobs since his return, with smaller suppliers like Detroit Axle struggling to survive. While Trump’s administration claims to prioritize American auto dominance through trade frameworks, critics, including industry leaders, warn of severe economic fallout. Political experts note Michigan’s symbolic and electoral importance, questioning whether voters will hold Trump accountable if tariffs fail to deliver promised growth. Whitmer’s direct appeals to Trump reflect a unique, yet challenging, balancing act for Democratic leaders navigating opposition to his agenda while protecting state interests.
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SoundHound AI (SOUN) is experiencing significant growth, with its stock soaring nearly 30% after a stellar earnings report showing a 217% year-over-year revenue increase to $43 million, despite a $0.19 per-share loss. The voice AI company, led by CEO Keyvan Mohajer, is expanding across industries like restaurants and automotive, leveraging agentic AI to enable complex, independent decision-making for tasks such as ordering food or booking appointments via voice commands in cars. SoundHound raised its fiscal 2025 revenue forecast to $160-$178 million, fueled by new partnerships with major brands like Red Lobster, IHOP, and Chipotle, and growth in 14,000 restaurant locations. Its stock has risen 160% over the past year, though it’s down 32% year-to-date. Analyst Gil Luria from DA Davidson boosted the price target to $15, highlighting SoundHound’s increasing market share in AI-driven customer service. The company aims for adjusted EBITDA profitability by the end of fiscal 2025 and continues to explore acquisitions to strengthen its position in verticals like healthcare and financial services. SoundHound’s innovative technology and expanding customer base position it as a key player in the automation trend.
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Tesla Inc. is discontinuing its Dojo supercomputer project, a key initiative for developing AI for driverless vehicle technology, as announced by sources familiar with the matter. The project’s leader, Peter Bannon, is departing, and the Dojo team is being reassigned to other Tesla projects, with some members joining the newly formed DensityAI. Elon Musk has confirmed a strategic shift, focusing on next-generation AI chips for vehicles and increasing reliance on external partners like Nvidia, AMD, and Samsung for compute and chip production. This move marks a significant change from Tesla’s earlier multibillion-dollar plan to lead in AI through Dojo, once seen as a potential $500 billion boost to its market value by analysts. The company has also faced a talent drain, with key executives leaving amid declining sales and competition. Tesla’s stock rose 2.1% following the news, despite a 20% drop earlier this year. Additionally, a $16.5 billion deal with Samsung aims to secure AI semiconductors through 2033, diversifying from Taiwan Semiconductor. Musk had previously hinted at a dual approach with external partners, describing Dojo as a high-risk, high-reward “long shot.”
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President Trump signed an executive order to enable 401(k) investors to diversify into private assets, including private equity, venture capital, hedge funds, real estate, and possibly gold and crypto. This directive tasks the Department of Labor and SEC with creating guidelines for incorporating these investments into defined-contribution plans. Proponents argue that private assets offer diversification and higher returns compared to traditional stocks and bonds, with BlackRock's Larry Fink suggesting a future portfolio mix of 50/30/20 (stocks, bonds, private assets). However, experts like Lisa A.K. Kirchenbauer caution against the risks, including low liquidity and complexity, advising investors to limit exposure to 5-10% and fully understand the investments. Major firms like BlackRock, Empower, and Voya are already developing products with private assets, aiming for enhanced returns, but concerns persist about higher fees, lack of transparency, and suitability for average investors. Critics highlight that private assets, often reserved for sophisticated investors, may conflict with the flexibility needed by 401(k) participants and could increase costs, despite recent reductions in plan fees due to index funds. The move aims to democratize access to alternative investments but raises questions about whether regular savers are equipped to navigate these complex options.
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Federal Reserve Governor Christopher Waller has emerged as a top candidate to succeed Jerome Powell as Fed chair, with President Donald Trump’s advisers valuing his forecasting-based policy approach and extensive Fed expertise. Waller, who has met with Trump’s team but not the president himself, faces competition from former Fed official Kevin Warsh and Trump’s National Economic Council director Kevin Hassett for the role, which becomes available in May 2026. Waller recently dissented against the Fed’s decision to maintain interest rates, advocating for a cut due to labor market concerns—a position later supported by weak job growth data. Trump’s dissatisfaction with Powell’s reluctance to lower rates has fueled speculation about the future of Fed independence under new leadership. Waller, a Trump nominee to the Fed in 2020, has publicly defended the central bank’s autonomy, stating its critical role in the US economy. While Trump has narrowed the candidate list to three and is also planning to fill other Fed vacancies, Waller has not yet received direct communication from the president about the chair position, though he has expressed willingness to serve if asked.
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President Trump demanded the immediate resignation of Intel CEO Lip-Bu Tan via a social media post on Truth Social, alleging conflicts of interest due to Tan's investments in Chinese companies through his venture capital firm, Walden International. Tan, appointed in March to turn around Intel after a turbulent period under Pat Gelsinger, initially boosted investor confidence, with shares rising 15%. However, a Reuters report highlighted his ties to Chinese government funds, and Senator Tom Cotton raised concerns about Intel's obligations under the CHIPS Act, which granted the company nearly $8 billion. Intel's stock fell over 3% after Trump's statement, adding to its woes as shares lag behind competitors like AMD and Nvidia, with only a 1.8% yearly gain. The company, struggling to revive its chip manufacturing, recently cut 15% of its workforce and scrapped plans to offer its latest technology to customers, hindering its competition with TSMC. Intel has not responded to the allegations or Trump's demand.
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Taiwan Semiconductor Manufacturing Co. (TSMC), a leading global chipmaker, has been exempted from a 100% US tariff on semiconductor imports due to its significant investments in US-based manufacturing facilities, including a $165 billion commitment for new fabs in Arizona. This news propelled TSMC shares to a record high and strengthened the Taiwan dollar by up to 0.6%. Taiwan's government remains optimistic, projecting a 3.1% economic growth for 2025 despite new US levies, driven by robust tech exports that saw a 7.96% growth in Q2. TSMC, crucial to AI chip production, heavily influences Taiwan’s stock index. Meanwhile, other Taiwanese firms like United Microelectronics Corp. may lessen tariff impacts through collaborations, such as with Intel. The US policy, as reiterated by President Trump, favors companies investing in American manufacturing, with Apple also cited as exempt. However, a 20% tariff on other Taiwanese goods remains, higher than rates for competitors like Japan and South Korea. Regional players, including Malaysia and South Korea’s Samsung, are navigating these tariff uncertainties, seeking clarity from the US. This situation underscores the complex interplay of global trade policies and local investments in the semiconductor industry.
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Apple unveiled a significant $100 billion investment in US manufacturing during a White House event with President Trump, adding to its previous $500 billion commitment. This initiative includes the American Manufacturing Program (AMP), designed to encourage global firms to produce critical components domestically, partnering with companies like Corning, Coherent, and Broadcom. Key projects involve a $2.5 billion commitment with Corning for iPhone and Apple Watch glass production in Kentucky and collaborations for Face ID lasers and semiconductor technologies. Apple is also building an end-to-end US silicon supply chain with partners like GlobalWafers and Samsung. The move comes amid pressure from the Trump administration, which has threatened a 25% tariff on iPhones not manufactured in the US, alongside existing and new tariffs on goods from India, where Apple assembles many iPhones for the US market. Despite the announcement, industry experts highlight challenges like a lack of skilled workers and supply chain resources in the US, suggesting that building an iPhone plant domestically could take years. Apple's stock rose over 2% following the news, reflecting market optimism about its domestic manufacturing push, even as the company faces significant tariff-related costs, with an $800 million hit reported recently and $1.1 billion more anticipated.
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Apple (AAPL) is set to reveal a $100 billion investment in US manufacturing during a White House press conference with President Trump, building on its prior $500 billion commitment that includes an AI server plant in Texas. This move comes amid pressure from the Trump administration to produce iPhones domestically, with threats of a 25% tariff on the devices if Apple doesn't comply. The announcement also aligns with new 25% tariffs on goods from India, where Apple manufactures most US-bound iPhones after diversifying from China post-COVID-19. Trump has criticized Apple’s overseas production, despite industry experts warning that relocating to the US is a daunting task due to insufficient skilled labor and supply chain limitations, with plant construction potentially taking years. Apple’s recent earnings revealed an $800 million hit from existing tariffs, with an expected $1.1 billion more in costs this quarter. This strategic investment may be an attempt to mitigate tariff impacts and political pressure, though significant challenges remain in fully shifting production to the US.
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In the ongoing US-China trade conflict, Beijing is leveraging the issue of high-end chip tracking to assert its position globally against the Trump administration’s surveillance plans. Chinese regulators recently summoned Nvidia staff over alleged security risks with its H20 chips, a move seen as a warning against future US tracking mandates rather than a direct critique of the chips themselves. Analysts suggest this action aims to caution domestic firms, alert the world, and pressure Nvidia to influence US policy. Nvidia has publicly rejected backdoors or tracking in its technology, citing security and trust concerns. Meanwhile, US officials are exploring chip-tracking methods, though a final deal with China on trade issues, including rare-earth magnets, remains pending. Despite tensions, both sides maintain a tariff truce, with Trump expressing optimism about a potential agreement. China’s resistance to surveillance in American chips may resonate globally, while domestic media and policies push for self-reliance in AI chip production, boosting local semiconductor firms. The situation underscores the delicate balance between technological competition and broader US-China relations, with potential implications for global tech supply chains and security standards.
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Advanced Micro Devices (AMD) released its Q2 earnings, reporting an adjusted EPS of $0.48, slightly below Wall Street's $0.49 expectation, but exceeding revenue forecasts with $7.6 billion compared to the anticipated $7.4 billion. AMD also issued a robust Q3 guidance of $8.4 billion to $9 billion, surpassing analysts' $8.3 billion estimate. However, the stock dropped over 4% post-earnings, despite a 44% year-to-date gain. The company faced challenges from a U.S. ban on AI chip sales to China, incurring an $800 million impact and a $155 million operating loss. On a positive note, AMD's Data Center segment met expectations at $3.2 billion, and its Client business outperformed with $3.6 billion in revenue against a $2.5 billion forecast. The upcoming launch of the MI350 AI chip line, designed to compete with Nvidia's offerings, and the reversal of the China sales ban by the Trump administration, are expected to bolster future performance. AMD's results come ahead of Nvidia's earnings report, with both companies navigating a competitive AI chip market and geopolitical challenges.
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President Trump has unveiled a series of aggressive tariff policies targeting various sectors and countries, as reported by Yahoo Finance. He plans to introduce escalating tariffs on pharmaceutical imports, starting small but reaching up to 250% within a year and a half, to boost domestic production, alongside upcoming semiconductor tariffs. Trump also threatened the EU with 35% tariffs if a $600 billion investment pledge isn’t met, though a 15% flat rate on EU goods was agreed upon. Additionally, a 50% tariff on $15 billion worth of copper imports has rattled global markets, with further expansions planned. Country-specific duties include 35% on Canada, 50% on Brazil (with exemptions), and 25% on India, with potential increases due to its Russian oil purchases. Trade deals with Mexico and South Korea offer temporary reprieves or balanced terms. India has criticized the US stance as a double standard, vowing to protect its interests. These moves, alongside ending exemptions on low-value imports, signal a broad protectionist push, raising concerns about inflation and global trade turbulence as Trump’s self-imposed deadlines approach.
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SoftBank Group Corp., under Masayoshi Son, is aggressively pivoting toward AI infrastructure, significantly increasing its stakes in Nvidia Corp. ($3 billion) and Taiwan Semiconductor Manufacturing Co. ($330 million) as of March 2025. This reflects Son’s strategy to capitalize on AI’s growth, centered around Arm Holdings Plc, while building partnerships like the $500 billion Stargate data center with OpenAI and a potential $1 trillion AI hub in Arizona. Despite monetizing $2 billion in Vision Fund assets, SoftBank faces no urgent need to sell further. The company’s stock, trading at a 40% discount to its $175 billion net asset value, has hit record highs, buoyed by Nvidia’s 90% and TSMC’s 40% market gains. However, Son remains unsatisfied, aiming to leapfrog AI leaders through ambitious US projects and leveraging political ties, even as deals like the $6.5 billion Ampere acquisition face scrutiny. SoftBank’s market cap of $118 billion pales against Nvidia’s $4.4 trillion, underscoring the gap Son seeks to close in the AI race.
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Tesla's board has approved a $30 billion alternative compensation plan for CEO Elon Musk amid a legal battle to reinstate his original $58 billion pay package, which was invalidated by a Delaware judge. Announced in an SEC filing, the new plan aims to incentivize Musk's focus on Tesla and requires shareholder approval. It grants Musk 96 million shares at $23.34 each, contingent on his service until 2027, with a five-year holding period. If the original 2018 plan is upheld by the Delaware Supreme Court, these shares must be returned. Meanwhile, Tesla's stock struggled after a Q2 earnings miss, reporting $22.50 billion in revenue against an expected $22.64 billion, down 12% from last year. The legal dispute, sparked by a shareholder lawsuit in 2018, questions Musk's influence as a de facto controlling shareholder and whether stockholder approval can override judicial rulings. Judge Kathaleen McCormick voided the original package due to Musk's ties with the board and lack of disclosure, a decision reaffirmed despite a second shareholder approval in 2024. The case could reshape corporate law, while Tesla emphasizes the need to retain Musk amid the AI talent war, with analysts suggesting the new plan secures his leadership until at least 2030, easing shareholder concerns.
