Latest Developments

North America
CNBC Finance

Rivian reduces 2026 spending plans, narrows earnings guidance

Rivian Automotive reduced its 2026 spending plans and slightly narrowed its previously forecast losses this year as the company reported second-quarter results Thursday. The revised guidance now includes adjusted losses between $1.8 billion and $2 billion, down from $1.8 billion to $2.1 billion, and capital expenditures of $1.7 billion to $1.8 billion, down from $1.95 billion to $2.05 billion. It reconfirmed a previously raised delivery target of 65,000 to 70,000 vehicles to customers. Rivian said the $250 million reduction in capital spending at the mid-point was enabled by "project efficiencies and timing of spend," which the automaker previously increased to allow for added investments in new technologies such as its hands-free driving system. The company's gross profit, which is closely watched by investors, was $179 million compared with a loss of $206 million a year earlier. That included a $36 million loss for its automotive segment and a $215 million profit for its software and services division. Rivian's second-quarter revenue included $1.14 billion from automotive and $515 million from software and services. The results were slightly higher than its pre-released second-quarter revenue expectations of between $1.55 billion and $1.65 billion that were released last month in conjunction with disclosing a public offering of 75 million shares of its Class A common stock. Automotive revenue increased 23% year over year, primarily due to a 14% increase in vehicle deliveries and a $103 million increase in revenues related to regulatory credits, the company said. Rivian's net loss attributable to common stockholders during the second quarter was $837 million, or 63 cents a share, a $278 million, or 34 cent per share, improvement compared with the second quarter of 2025. Rivian previously said the raised delivery guidance was driven by higher deliveries during the second quarter of its electric delivery van and flagship R1 products. The company also started delivering its midsize R2 SUV during the quarter. It's ramping up production of that vehicle at its sole production plant in Normal, Illinois, which has capacity to produce 160,000 of the vehicles annually. "Incredibly excited with R2 now getting into customers' hands, and the overall feedback and response to the product has just been outstanding," Rivian CEO RJ Scaringe told CNBC's Phil LeBeau on Thursday. "And so, of course, that's a major step for us on our path to profitability." Scaringe has said Rivian will reach profitability this year on a per-unit production basis with the R2, a smaller and less expensive sibling to its current luxury R1S SUV. But he said the company needs more scale than the 160,000 units already planned for the vehicle at its current plant to achieve profitability. Rivian on Thursday reconfirmed its cash, cash equivalents and short-term investments balance was an estimated $5.3 billion, up from $4.8 billion to end the first quarter.

Rivian reduces 2026 spending plans, narrows earnings guidance
Europe
BBC Business

AI used new levels of 'autonomy and deception' to trick people in safety test

Image source, ReutersImage caption, Anthropic CEO Dario Amodei has seen his company's models come under increased scrutiny. The latest artificial intelligence (AI) tools from Anthropic and OpenAI went to new extremes in trying to undermine a popular platform during testing by the UK's AI Security Institute. The AISI said on Tuesday that Anthropic's Mythos and OpenAI's Sol models engaged in a level of "autonomy and deception" it had not seen before. During routine AI safety testing, an Anthropic agent created fake profiles of real people as it tried to trick a person standing between it and access to GitHub, a large platform where technology developers store software code. Anthropic and OpenAI noted in response to AISI's report that its test had reduced or removed normal safeguards. AISI evaluators first noticed "unusual data transfers leaving our research systems" during a test, then found that "some of the agents being tested had engaged in sustained, potentially harmful activity directed at real people and organisations". It turned out that a Mythos agent had created "malicious code" and attempted to insert it into GitHub's system. The Mythos agent identified and researched the people who maintained GitHub and created a series of "fake online identities" based on those real people. It did so as part of an effort to pressure and trick the real people into approving its malicious code. The agent even sent people direct messages masquerading as the real people it had researched. "When the agent's pull request was challenged in public, it edited its earlier activity to appear harmless and considered adopting a fresh identity to continue," AISI said. Throughout the attempts, it was human review that stopped the agent from succeeding in delivering the malicious code to GitHub. While AISI said the Mythos agent had not been instructed specifically to avoid or carry out such behaviour, it was "the first time we have seen risks around autonomy and deception manifest this clearly, without specific prompting, in the real-world".

AI used new levels of 'autonomy and deception' to trick people in safety test
Asia-Pacific
The Straits Times

S&P closes at record high as soft jobs report eases rate-hike concerns

Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 7. NEW YORK - US stocks advanced on Aug 7, with the S&P closing at a record high to cap off a strong week of gains for the major indexes, after data showed the US economy unexpectedly shed jobs in July and dampened expectations the Federal Reserve would raise interest rates at its September meeting. The Labour Department said nonfarm payrolls decreased by 23,000 jobs in July, well below the estimate of economists polled by Reuters that called for an increase of 80,000 jobs. Previously reported job gains for the prior two months were also revised sharply lower, while the unemployment rate fell to 4.1 per cent in July from 4.2 per cent in June due to workers leaving the labour force. Market expectations for a rate hike from the Fed at its next meeting dropped to about 44 per cent, according to CME FedWatch, down from 55 per cent in the prior session and 67 per cent a week ago. Signs of progress for a potential peace deal in the Iran war have helped cool oil prices and, in turn, have eased inflation worries that could prompt a Fed rate hike and pushed Treasury yields lower. A strong earnings season has also tempered concerns about the massive spending by AI-related companies, sending each of the three major indexes to their biggest weekly percentage gains since mid-April. “You probably have to lower rates to kind of stimulate job growth, but if you lower rates, you’re going to also stimulate inflation. So you’re kind of in a pickle at this point, and yet the market’s just taken off because earnings have been stellar,” said Tom Siomades, chief market economist at AE Wealth Management in Topeka, Kansas. “The market should be reacting to weak job numbers and higher inflation and the possibility of a slow-growth economy that may need to have rates raised rather than cut, and yet it’s not. We’re setting records, so go figure.” With earnings season entering the final stretch, of the 436 companies in the S&P 500 that have already reported results through Friday morning, 85.1 per cent have topped analyst expectations, according to LSEG data – well above the 68 per cent average since 1994. Under new Fed chairman Kevin Warsh, the US central bank has offered investors little forward guidance on monetary policy, leading market participants to focus on economic data and commentary from policymakers. The Dow Jones Industrial Average rose 151.83 points, or 0.28 per cent, to 54,036.93, the S&P 500 gained 47.68 points, or 0.62 per cent, to 7,757.64 and the Nasdaq Composite gained 342.26 points, or 1.3 per cent, to 26,690.62.

S&P closes at record high as soft jobs report eases rate-hike concerns
Europe
BBC Business

The cost of being single – and how friends are teaming up to beat it

When Leanne split up with her partner in her late 20s she thought she'd have to put her dream of a buying a home in the area where she grew up on hold. She was earning a good salary but the properties she was hoping for - with a garden and parking space - were too expensive on her own. While she'd just started seeing someone new, it was very early days - far too early to discuss living together. Her friend since school, Sarah, was single and renting a room in a shared house in Brighton. She also wanted to move back home to Kent, but was worried about how she'd get on the housing ladder on her cabin crew salary. When Sarah suggested they buy together, Leanne admits she "totally baulked". But after chatting with a mortgage adviser they went ahead - and say it's helped them avoid the so-called singles tax. Not being partnered up can mean extra costs. It's tricky to quantify and varies by location - estimates suggest it could be anything from hundreds of pounds to £10,000 on average extra, external a year. The cost of rent or a mortgage, household bills and subscriptions can't be shared. And a single person pays 25% less council tax than a couple - not half. Many discounts involve pairing up - 2-for-1 cinema tickets, Two-Together railcards, couples gym memberships - plus solo travellers often pay a single person supplement. This affects a lot of people. Some 18.5m people had never been married or in a civil partnership in 2024 – 36.8% of the population aged 16 and over, official figures show. And overall 8.6m people were estimated to be living alone in the UK last year - that's nearly a third of all households. Ahead of their house purchase, Sarah and Leanne agreed a minimum amount of time they'd live together for - two years, which they then extended to four - and discussed what would happen if one person wanted to leave. Their mortgage payments were split proportionally to take into account their differing salaries, and the arrangements detailed in a declaration of trust so they would be protected when they came to sell. They were able to split the household bills - with these coming out of a joint account and self-professed "bill keeper" Sarah keeping track of what they needed to transfer each month - but also cut costs by sharing some meals and the cooking as they had similar eating habits.

The cost of being single – and how friends are teaming up to beat it
Europe
BBC Business

Fashion brand Jaded has ad banned for 'glamourising smoking'

A fashion brand has had an advert banned by the advertising watchdog which it said was "glamourising smoking". Jaded London, whose clothes have been worn by Beyoncé and Kylie Jenner, used a picture of a woman on holiday holding a cigarette in one of its marketing emails. The Advertising Standards Authority (ASA) said the advert was "heavily stylised and presented the model in a fashionable and attractive manner", which made smoking seem appealing. Jaded London argued that the cigarette was not the "focus of the ad" but agreed to not use pictures of models smoking in future. The ASA's rules on socially responsible marketing say smoking should not be presented in an appealing way, condoned or encouraged. The Jaded London email, which went out on 27 May, was investigated after a complaint to the watchdog. In its ruling, the ASA said the woman was wearing "fashionable clothing and accessories standing in front of a scooter next to a body of water, which the ASA considered evoked an aspirational holiday lifestyle". "She was holding a slim cigarette with visible ash at the tip, and we considered that suggested it was lit," it added. The ASA told the brand to stop using the ad and "ensure that their future marketing communications were socially responsible". Founded by siblings Jade Camber and Grant Goulden in 2013, Jaded London has amassed 1.5 million Instagram followers and is particularly popular among young people. Its clothes are stocked in shops including Selfridges and Urban Outfitters and it made £51m of sales in the year to June 2025. Responding to the watchdog, Jaded London argued it was "not clear" the model was holding a cigarette because it was slimmer than normal and "did not appear to be lit".

Fashion brand Jaded has ad banned for 'glamourising smoking'
North America
CNBC Finance

To keep growing, incoming Best Buy CEO says he first wants to go smaller

Best Buy is at a critical juncture as the consumer electronics retailer aims to revitalize its performance under incoming CEO Jason Bonfig, who spoke exclusively with CNBC about his strategy for the company. The company has been struggling with slumping sales over the past few years, which it has attributed to lower consumer confidence, less tech innovation and a slower housing market. In an effort to refresh its products, improve the customer experience and drive more sales, the retailer announced Bonfig will succeed current CEO Corie Barry this fall. As he prepares to take the helm, Bonfig has said he's focused on four key pillars: advancing Best Buy as a retail and technology company, improving its reach, enhancing the customer experience and focusing on being a human-powered company. Bonfig has also said he's looking into ways to capitalize on the artificial intelligence boom and Best Buy's spot in that next chapter. This week, Best Buy opened two new stores, one in Jonesboro, Arkansas, and one in Cape Cod, Massachusetts, which Bonfig told CNBC illustrates his strategy as he prioritizes returning the company to long-term and sustainable growth. "What we're finding is that there are markets that we just can't be in with a traditional size Best Buy store, but they're markets that absolutely make sense for Best Buy from a reach perspective," Bonfig said. To lean into those markets, the company is opening new small-format stores, ranging from 12,000 to 15,000 square feet, compared to its medium-format stores, which range from 20,000 to 25,000 square feet. Some of its largest stores, including its flagship location in New York City, exceed 40,000 square feet. The new small stores tap into Bonfig's priority of expanding the company's reach, he said. "We also know that when we put a store close to a customer, it doesn't just change the customers' behavior in the frequency of the visits of the store … it also changes their behavior digitally as well," Bonfig said. When Best Buy joins a new, smaller community, he said, the company has found more customers physically go to a store for the first time, but they also use the app and digital channels as well. The Jonesboro store marks Best Buy's return to the town after a tornado destroyed its previous location. "It's a great example of a vibrant market, a place where customers are interested in our brand, but not a market that could support a 30,000- or 35,000-square-foot store," Bonfig said. "An 18,000-square-foot store allows us to have the best of all of our different categories and meet the needs at that particular location." The second opening, in Cape Cod, is slightly larger than Best Buy's normal medium-format stores, coming in at 28,000 square feet, but Bonfig said it's another example of finding "the right size store in the right location in the right node." He added that Best Buy Canada, which can often do things faster than its U.S. counterpart, has been after the small-format store for "an extended period of time" and has seen success with locations as small as 7,000 square feet.

To keep growing, incoming Best Buy CEO says he first wants to go smaller
Europe
BBC Business

'I feel like I dug my own grave': The workers caught in the AI transition

She began writing straight out of college, freelanced for years and eventually followed a path taken by many young Filipinos: joining a multinational in the country's booming outsourcing industry. Lisa says she never felt the need to use artificial intelligence (AI) in her work. "I can say that I am able to do my job, I meet deadlines. In my opinion, there is no need for [AI]," she told the BBC. Eight months into her latest role, and one month before the position was due to become permanent, she was made redundant. In the months before, Lisa says a public relations agency had been tasked with producing AI-generated material that she and her colleagues were asked to edit. She says her skills were used to train the AI on the company writing style. "I feel like I dug my own grave," she says. "We were the ones who trained the artificial intelligence that replaced us." Lisa, not her real name, is one of several former outsourcing employees the BBC spoke to who asked to remain anonymous. They signed confidentiality agreements in return for severance pay, and fear that speaking publicly could hurt their chances of finding work in an industry which has a small network. Their experiences offer an insight into a question confronting emerging economies like the Philippines: what happens when AI begins to automate the jobs that helped lift millions of people into the middle classes? Every evening around 5pm, streams of workers wearing company lanyards spill out of high-rise offices in the district of Cubao in Manila. It's one of several areas of the capital where multinational companies have premises – providing all sorts of outsourcing work including call centres, accounting, software development and marketing copy services for clients thousands of miles away. For over two decades, these business districts have symbolised one of the Philippines' biggest economic success stories. Beginning in the early 2000s, the country was promoted as an English-speaking alternative to India for what's called business process outsourcing (BPO).

'I feel like I dug my own grave': The workers caught in the AI transition
North America
CNBC Finance

FIFA tests the limits of private equity in sports with World Cup subsidiary sale

Global soccer may be finding the limits to private equity's stampede into sports. A plan by FIFA to sell a minority stake in a new subsidiary — FIFA Forward Enterprise, or FFE — that would control the business side of the World Cup has faced swift backlash. UEFA, the governing organization of European soccer, and Concacaf, the organization controlling North American, Central American and Caribbean soccer, have both rejected the proposal out of concern for outside influence. FIFA said earlier this week it plans to raise $4.2 billion from third parties, valuing FFE at about $20 billion. Thrive Capital, a private equity firm led by Joshua Kushner, has already backed the plan. But on Thursday, UEFA threatened to boycott FIFA competitions and the World Cup if the plan moves forward. "The World Cup cannot be treated as an investment product," UEFA said in a statement. "No part of it should ever be surrendered to private investors. The World Cup is not for sale." FIFA defended the proposal late Thursday night, saying it would move forward with a vote among its member associations despite mounting criticism. UEFA and Concacaf together represent 96 of the 211 members of FIFA. "We respect the feedback and concern aired in public and reaffirm our commitment to an open and democratic consultation," its statement read. "No single entity can claim to represent all 211 member associations around the world." FIFA blamed "incorrect media reports" for the negative response to the plan and said that without the support of a majority of the member associations, its commercial activities would remain unchanged and FFE would not move forward. Carlos Cordeiro, a senior advisor to FIFA President Gianni Infantino, announced his immediate resignation in protest of the plan. "Let me be clear: I had no involvement in this proposal, and I oppose it unequivocally. It is a bad deal for FIFA's Member Associations, a bad deal for football, and a bad deal for the long-term future of the game," Cordeiro said in a statement posted to LinkedIn Friday. While there's no certainty that bringing on institutional capital would affect FIFA operations, it opens the door to outside influence driven by financial gain. While neither UEFA nor Concacaf specifically brought up FIFA's past ties to alleged bribery, but UEFA did cite the soft pressure of shareholder influence as one of the reasons for its rejection of FIFA's plan. "Football's future cannot be dictated by the expectations of those whose first duty is to maximise financial return," UEFA said. "The moment external investors acquire ownership interests in FIFA competitions, football changes forever. Commercial return becomes a permanent obligation. Investor expectations become a daily pressure."

FIFA tests the limits of private equity in sports with World Cup subsidiary sale
North America
CNBC Finance

How Leopold Aschenbrenner built a $45 billion AI hedge fund — and lost most of it in days

Two years ago, Leopold Aschenbrenner argued he was one of few people in the world who saw the future clearly. In a sprawling, 165-page essay that became required reading in Silicon Valley, the former OpenAI researcher positioned himself as a kind of prophet for the coming age of artificial super intelligence. But this week, the limits of Aschenbrenner's vision were on display when the AI-themed hedge fund he runs — named Situational Awareness, also the title of his viral June 2024 manifesto — ran into the harsh reality of tumbling semiconductor stocks and Wall Street margin calls. At its peak earlier this month, his fund sat atop $45 billion in assets. By Thursday, however, after being forced to offload all of his leveraged stock bets — including hard-hit names like SK Hynix and CoreWeave — to Ken Griffin's Citadel at a discount, the fund's holdings plunged to around $10 billion, according to people with knowledge of the situation. The story of Aschenbrenner's meteoric rise and sudden fall has captivated both Wall Street and tech circles, making him the most high-profile casualty yet of the volatility accompanying the AI boom. A polarizing figure, his online followers saw Aschenbrenner — a Columbia University valedictorian at age 19 — as a genius of the next big thing and followed his fund's quarterly filings for clues on hot AI stocks. Before this month's decline, Situational Awareness racked up gains of more than 1,000% since inception, The Wall Street Journal reported last month. The Journal noted Aschenbrenner was just 24 years old. Meanwhile, critics pointed out that Aschenbrenner had no experience running money prior to launching his fund in July 2024, calling him more lucky than smart. Some noted that his early work experience was at the doomed crypto firm FTX, where he helped now-disgraced founder Sam Bankman-Fried run a charity out of a Bahamas penthouse. Others on Wall Street, including former traders at global investment banks, noted that in light of reports Situational Awareness used as much as 400% leverage, the collapse wasn't shocking. "A lot of people saw this blow-up as a matter of not if, but when," said Jerry Diao, who runs a Wall Street coaching firm. "Maybe his views on AI are correct in the long run, but in the public markets, you have to be prepared for the short-term." Earlier this week, before the sale to Citadel, about two-thirds of Situational Awareness holdings were in long and short positions in public equities, according to one source. The rest were stakes in private companies, dominated by a multibillion-dollar Anthropic investment, the person said. CNBC's sources spoke on the condition of anonymity to discuss nonpublic details.

How Leopold Aschenbrenner built a $45 billion AI hedge fund — and lost most of it in days