Good morning. Stock markets may get a boost from Microsoft and Meta earnings. British retailers warn food inflation will further rise. And ICYMI, take a look at Tesla’s new venture: an American diner. Listen to the day’s top stories.
US and European stock futures climbed after strong results from Big Tech bolstered optimism that corporate profits remain resilient. Microsoft may open higher in the US on plans to invest more than $30 billion on AI data centers. Meta is also increasing AI spending—the stock soared 11% after-market.
Copper collapsed in New York after Donald Trump shocked the metals world by exempting the most widely traded forms of the metal from his hotly anticipated import tariffs. The exemption removes the reason for the big premium of New York’s prices over London’s. It should spur traders to unwind bets on that gap and to cover short positions on the LME.
British retailers warned food inflation will hit 6% by Christmas. A BRC survey found two-thirds of firms plan to raise prices further after being squeezed by the Labour government at its first budget.
Real estate investors are holding back in Europe. Commercial property sales are down 10% by value in the second quarter and down 7% in the first half of the year, according to MSCI data.
Greystar’s undeveloped site in London’s Battersea district is still awaiting a decision from the regulator. Photographer: Jose Sarmento Matos/Bloomberg
UK housing developers are downsizing projects after high-rises are being delayed by regulators.
Property companies like Greystar Real Estate are focusing on developing low-rise residential projects, which aren't subject to the same safety checks as what are designated “higher-risk buildings.”
“In Europe, the burden of proof is on planners to justify the plan,” said Anthony Breach at Centre for Cities. “In England it’s upon developers to justify getting planning permission.”
What some analysts have described as a doubling-down from Meta on AI looks more like a critical pivot, writes Dave Lee. After going full throttle with building an open-source AI model, Llama, Mark Zuckerberg has now changed course and strongly hinted that “personal superintelligence” will be closed to outsiders.
Tesla's new diner in Los Angeles is attracting devoted fans and curious foodies alike, offering a nostalgic yet futuristic dining experience with gourmet American comfort food. Our car expert Hannah Elliott gives the chili cheese fries and smashburgers a test drive.
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