Was it the suit that made the difference? Volodymor Zelensky’s trip to Washington on Monday, this time backed by a host of European leaders, was a far cry from his disastrous appearance in the Oval Office back in February.
This time there was a lot of bonhomie in the room as president Trump responded to his Ukrainian counterpart’s charm offensive, suggesting that a face-to-face meeting with Vladimir Putin was on the cards, potentially paving the way for a long-awaited peace deal.
Market optimism was short-lived, however, as the Russians swiftly downplayed the idea of a meeting and insisted that any security guarantees provided by the US would have to give Moscow the right to veto. With Moscow reportedly demanding the whole of the Donbas region and an end to Ukraine’s Nato ambitions too, hopes of an end to the fighting soon seemed as distant as ever.
Meanwhile, the giants of the tech world were having a bad time of it. A report by the Massachusetts Institute of Technology (MIT) sparked fears of an AI bubble similar to the dot-com frenzy of the late 1990s by claiming virtually all the key players were making “zero return” on their massive investments in the technology.
The report seriously unnerved investors, lopping billions off the value of Big Tech leviathans such as Nvidia (NVDA), Arm (ARM) and Palantir (PLTR).
There was little reassurance from OpenAI (OPAI.PVT) boss Sam Altman, who said some investors stood to “lose a lot of money”. Then, on Thursday it emerged that Facebook owner Meta (META) had put a freeze on AI hiring, in a major reversal of its recent multi-billion dollar recruitment drive.
Things were not much better this side of the pond, as a July inflation reading came in unexpectedly high, scuppering hopes of another cut in interest rates in September. With soaring transport costs driving price increases further from the Bank of England’s target, traders pared back their bets on a reduction next month to just 5%.
Let’s take a closer look at these and other stories on investors’ minds in the last few days.
Some of the biggest tech companies on the planet have been pouring billions into AI. Investors are increasingly worried by the lack of returns on this investment. · VCG via Getty Images
What inflation data means for UK interest rates
Consumer prices were 3.8% higher in July than the same month last year, higher than the 3.7% expected by economists. Inflation is likely to rise to 4% in the next few months, the BoE predicts.
The figures complicate the picture for the central bank as policymakers decide whether they can cut interest rates again to boost the economy.
Suren Thiru, economics director at ICAEW, said: “July’s outturn probably extinguishes hope of a September interest rate cut, while strengthening underlying inflationary pressures calls into question whether policymakers will be able to relax policy again this year.”
The tech trade hits pause ahead of Nvidia earnings
The tech pullback this week wasn’t anywhere close to a Deepseek moment, when investors questioned the long-term viability of Silicon Valley’s AI transition. But Wall Street did hit the brakes, alarmed by some pessimistic headlines amplifying long-standing criticism about ballooning valuations and the costs of the AI boom.
It may not be enough anymore for the tech giants and other AI players to tout their enormous capital expenditures and new chatbot initiatives if the market demands actual results. And investors, enriched by rising stock prices (but also pressured by the staggering weight of them), keep asking: Where are they
Most affordable commuter hotspots revealed
Nobody likes commuting. But with more and more of us required to return to the office at least half the week, it’s becoming a necessity again. The good news is there are some huge savings to be made on properties outside major cities but still within a commutable distance.
According to Zoopla, commuters can cut their housing costs by more than half, on average 56%, by living in towns with direct links to London that are under an hour away.
With more and more of us required to return to the office at least half the week, commuting is becoming a necessary evil again. · SOPA Images via Getty Images
The biggest relative savings, however, are to be found outside the capital. In Shildon, County Durham, for example, the average home costs just £73,800, compared to £189,880 in nearby Newcastle, a 61% discount with a 55-minute commute. A similar saving can be found in New Tredegar, where the average property is £108,600, versus £280,760 in Cardiff.
We examined some of the best options across the UK.
London’s new market for private firms ‘will be a big investment draw‘
This was the claim from LSEG boss David Schwimmer, who told Yahoo Finance UK, the new Pisces-powered exchange will be a transformative innovation that will open up liquidity in the private capital space.
“You have a lot of companies now that are sizeable and maybe looking for liquidity but do not want to go public”, he explained. These companies may seek liquidity for their limited partners, shareholders, or employees, without leaping to a complete public listing.
For Schwimmer, the new platform solves this dilemma, while serving as a conduit for institutional investors, who in the past have had limited access to private companies.
Musk may be banking on his UK energy plan to boost Tesla’s fortunes
It seems Elon Musk has designs on disrupting the UK’s energy market. Problems have piled up for his EV maker in the past year, from slumping vehicle sales to a fall in operating income.
But if Tesla (TSLA) manages to solve distribution problems within a constrained network, the move could prove a winning strategy.
“Tesla’s planned UK energy market entry, via Tesla Energy Ventures, is less about selling household Powerwalls and more about cementing a position in large-scale energy storage and grid flexibility,” says Scott Flavell, head of energy for global consultancy firm Sia.
“Already a global leader in utility-scale batteries, Tesla sees an opportunity in the UK’s constrained energy network, where bottlenecks in transmission are slowing the delivery of renewable generation to demand centres.”
With soaring inflation in the news, it’s a good time to think about the effect it may have on retirement pensions. Under the government’s triple-lock mechanism, it looks likely inflation – or wage increases – will be the figure used to calculate the rise in the state pension for next year.
On its current trajectory, that means someone on a new state pension stands to receive somewhere between £479 and £538 extra per year. Someone on a full basic state pension would see that portion of their income rise by between £367 and £413: How rising inflation will affect your state pension
Fans of The Weakest Link celebrated 25 years of their favourite game show this week. Somehow, the players always seem to send the wrong person home at the end of each round, but it’s easily done, because it can be very difficult to identify weaknesses when you’re in the thick of things — and the same holds true for our finances: How to find the weakest link in your finances
Find more personal finance gems here
Chipmaker Nvidia (NVDA), the world’s most valuable listed company, will be the main earnings focus for investors next week, with a range of other companies also due to report.
Expectations have become increasingly high around Nvidia’s results, so investors will be poring over the chipmaker’s second quarter results on Wednesday, looking closely for any surprises to the upside or downside.
Another US tech company due to release results is computer maker Dell (DELL), which reported “unprecedented demand” for its artificial intelligence (AI) optimised servers in its last set of results.
Back in London, insurance and asset management firm Prudential (PRU.L) is scheduled to report, with shares having continued to climb this year.
It’s a relatively quiet week for economic releases, but watch out for US second-quarter jobless claims and GDP data on Thursday. The Fed will be watching closely as it looks ahead to a September rates decision.
As the summer starts to fade and the sun gives way to cloud, there’s no let-up just yet in festival season. The picturesque town of Upton-upon-Severn in Worcestershire is the venue for the Sunshine music festival, which kicked off on Thursday and continues though the bank holiday weekend. Among the many highlights is a headline act from crowd favourites Toploader. Let’s turn the clock back 25 years to their multi-platinum, global hit that got everyone up on the dance floor. Enjoy!
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