Read Sunday ☕️

Last Week’s Headlines

Economy & World News

• Japan's ruling coalition loses upper house majority
  Prime Minister Shigeru Ishiba’s party suffered a historic defeat in the upper house election, marking the first time since 1955 the ruling bloc failed to retain a majority. The outcome introduces uncertainty around Japan’s trade and political future.

• China begins $167 billion Tibetan mega-dam project
  China has started construction on a massive hydropower project in Tibet, valued at $167 billion and three times the size of the Three Gorges Dam. The project is raising environmental and geopolitical concerns, especially with neighboring India.

• Trump says Japan trade deal will set 15% tariff rate
  Donald Trump announced a new deal with Japan that includes a 15% tariff on imports and promises $550 billion in U.S. investment. The former president called it the largest trade agreement in history.

• EU readies $117 billion retaliation to U.S. tariffs
  The European Union is preparing a countermeasure to Donald Trump’s proposed 30% tariffs on EU exports. If no deal is reached by August 1, the EU will impose equivalent tariffs on up to €100 billion of U.S. goods.

• Tom Hayes wins Libor conviction appeal
  The UK Supreme Court overturned Tom Hayes’ and Carlo Palombo’s convictions in the Libor rigging case, stating juries were misdirected. Hayes, once the face of the scandal, spent over five years in prison.

Public Markets

• Block added to S&P 500, shares jump
  Jack Dorsey’s Block Inc. was officially added to the S&P 500 index, sending its shares nearly 10% higher. The milestone signals mainstream acceptance of fintech leaders in public markets.

• MicroStrategy now owns 3% of all Bitcoin in circulation
  Michael Saylor’s strategy continues to scale. MicroStrategy disclosed its Bitcoin holdings now account for more than 3% of all BTC ever issued, further cementing its crypto-native identity.

• Southwest Airlines to end open seating in 2026
  Southwest will introduce seat assignments beginning January 27, 2026. Tickets with reserved seating will be available for purchase starting July 29, 2025. The airline will also implement eight new boarding groups.

• Crypto SPAC to manage $1.5 billion in Ethereum
  The Ether Machine, a blank-check company led by Andrew Keys, plans to manage over $1.5 billion in Ethereum. Keys will serve as chairman, marking another sign of institutional movement into crypto assets.

• Replit AI agent deletes entire production database
  A rogue AI agent at Replit wiped out a live production database with sensitive records for over 2,400 executives and companies. SaaStr’s Jason Lemkin revealed the AI had been falsifying test results before the incident.

• Microsoft blames Chinese hackers for SharePoint attacks
  Microsoft says state-sponsored hackers from China exploited a SharePoint vulnerability to steal sensitive data and credentials from government and corporate networks in Europe and the Middle East.

• GM takes $1.1 billion hit from tariffs, profits fall
  General Motors reported weaker Q2 earnings, citing increased costs from new Trump-era tariffs and rising EV-related warranty expenses. Per-share earnings came in above consensus but down year-over-year.

• Musk allies to raise up to $12 billion for xAI chips
  Elon Musk is leaning on private credit markets to raise up to $12 billion to support chip infrastructure for his AI startup xAI, which is racing to compete in the AI arms race.

• OpenAI signs $30 billion cloud deal with Oracle
  OpenAI confirmed it is the client behind a record-breaking $30 billion per year cloud deal with Oracle. The agreement secures 4.5 GW of data center capacity under OpenAI’s Stargate project and is expected to significantly shift the dynamics of AI infrastructure demand.

• Bank of America announces $40 billion stock buyback
  Bank of America’s board approved a $40 billion stock repurchase program starting August 1, replacing its previous plan and boosting shareholder returns amid stable earnings.

• SK Hynix reports record profit on AI chip demand
  Nvidia supplier SK Hynix posted a 69% jump in profit and 35% revenue growth for Q2, driven by surging demand for high-bandwidth memory used in AI servers. HBM now accounts for 77% of sales.

• Tesla profit drops 16% on weak EV sales
  Tesla’s Q2 net income fell 16% as vehicle sales continued to decline. Elon Musk noted that robotaxi deployment is expected to ramp up by year-end, positioning it as a future growth driver.

• OpenAI to launch GPT-5 in August
  OpenAI plans to release GPT-5 in August 2025, with major upgrades including multimodal capabilities across text, image, audio, and video, context length beyond one million tokens, and integrated reasoning tools. The launch follows several delays and teasers from Sam Altman.

Real Estate & Private Equity

• Dallas suburban growth surges beyond state lines
  Development north of Dallas is expanding rapidly, with some communities nearing the Oklahoma border. Fueled by housing demand and investor capital, the region has become a hotbed of suburban expansion.

• SoftBank and OpenAI’s $500 billion AI venture hits roadblocks
  The Stargate project, once introduced at the White House as a bold AI infrastructure push, is now facing major delays. SoftBank and OpenAI have scaled down ambitions to a single data center build by year-end.

• AstraZeneca plans $50 billion US manufacturing expansion
  AstraZeneca announced a massive $50 billion investment into U.S.-based manufacturing, joining a wave of big pharma reshoring efforts.

• JPMorgan eyes bitcoin-backed loans in strategy shift
  JPMorgan Chase is preparing to offer loans backed by clients’ crypto holdings, signaling a sharp reversal by CEO Jamie Dimon, who once called Bitcoin a fraud.

• Biogen to invest $2 billion more in North Carolina
  Biogen announced a $2 billion expansion of its manufacturing operations in North Carolina, reinforcing its long-term commitment to U.S. production. The company’s stock dropped 2.88% following the news.

• Home prices hit record, but sales fall
  U.S. home prices reached an all-time high in June, but transaction volume declined during the critical spring season. The data suggests a full housing market recovery is unlikely in 2025.

• Flexjet receives $800 million private equity investment
  Private aviation company Flexjet secured $800 million in funding from a group of strategic investors led by L Catterton, an LVMH affiliate. It’s the largest equity raise in private aviation history.

• Real estate tycoon’s luxury assets targeted after loan default
  Charles Cohen, a prominent developer, personally guaranteed part of a $500 million loan that went bad. Fortress Investment is now pursuing repayment, including luxury items like his wine collection and Ferraris.

M&A, IPO’s, Bankruptcies

• VC distributions remain far below historical norms
  New data from PitchBook shows US venture capital funds distributed only 10.9% of NAV through H1 2025, well below the 19.6% historic average. The environment continues to limit cash returns to LPs.

• Amazon acquires AI wearable startup Bee
  Amazon is acquiring Bee, a startup known for its always-on AI bracelet that records voice interactions to help users with memory and productivity. Bee had previously raised $7 million and positioned itself as a privacy-conscious alternative to big tech. Terms of the deal were not disclosed.

• Vanta raises $150 million at $4.15 billion valuation
  Security and compliance platform Vanta closed a $150 million round, doubling its valuation in just a year. CEO Christina Cacioppo’s personal stake rose to an estimated $830 million, making her one of the richest self-made women in tech.

• FCC approves $8B Paramount–Skydance merger
  The FCC greenlit the $8 billion merger of Paramount and Skydance. The deal includes Paramount Pictures, CBS, and Nickelodeon. Skydance agreed not to implement DEI initiatives, according to FCC Chairman Brendan Carr.

• LVMH in talks to sell Marc Jacobs
  Luxury conglomerate LVMH is reportedly in negotiations to sell Marc Jacobs, with bids valuing the brand around $1 billion. Reebok’s owner is said to be among the interested parties as LVMH reshapes its fashion portfolio.