Latest Developments

Europe
The Guardian

Corporate America may be using AI to cut jobs, but small businesses are using it to keep them | Gene Marks

Rather than replacing workers, AI is being used by small businesses to help their employees work better. Photograph: Aitor Diago/Getty ImagesView image in fullscreenRather than replacing workers, AI is being used by small businesses to help their employees work better. Photograph: Aitor Diago/Getty ImagesReworkedUS small businessCorporate America may be using AI to cut jobs, but small businesses are using it to keep themGene MarksReports of wide-scale replacement of workers by AI are overblown. Small businesses use it to help workers About this contentSun 26 Jul 2026 08.00 EDTLast modified on Mon 27 Jul 2026 09.51 EDTShareI recently met the owner of a company that sells windows and doors. He told me he invested about $10,000 in an AI application that is used by his salespeople in his showroom. The application listens to the conversations between the salesperson and the prospective customer and then automatically creates a quote for the salesperson to review and send. “It allows my salespeople to talk to more customers and spend less time doing paperwork,” he said. “And it cuts down on errors.” Another businessperson I know connected Claude to a folder containing the specifications, manuals, instruction guides, technical sheets and other documentation for the equipment her company sells. She says that her customer-support team can now ask Claude questions on any issue and get quick answers. Her next step is to roll out the platform to her customers. There are many more projects like these under way. Last year, most small businesses were using AI to get answers to questions, review contracts, create policies and rewrite emails. Now they’re starting to move into real-life applications that are showing true return on investment. The AI story on Main Street seems so far to not be mass layoffs. It is exhausted owners using technology to help scarce employees do more work, make fewer mistakes and serve more customers. Since mid-2021, the Department of Labor has reported an overall 9% increase – not decrease – of people employed. If you don’t believe the government, then read the numbers from HR and payroll processors such as ADP, Gusto and Paychex, who all report continued job gains among their customers – especially their smaller customers – during the same period of time. Gusto says that small businesses are expected to hire about 974,000 recent grads ages 20 to 24 in the 2026 season, up from 962,000 in 2025. There are almost 7.6m job openings this month, an increase from pre-Covid levels and most predominantly at small businesses. And recent surveys from numerous outlets have found that most small businesses – who employ half of the country’s workers – are not only optimistic about their growth but plan to hire more people in the coming months. AI is not replacing people. And, despite media reports and the warnings from pundits, academics and experts, it’s not going to, at least for small companies. Why? For starters, there just aren’t enough people to do the work that needs to be done. The US workforce is expected to significantly decline over the next decade, thanks to an ageing population and a slowdown in birthrates. Immigrant workers who perform much of our services are in short supply. Robot technology – even if a smaller company could afford them – is years away from installing dishwashers, fixing HVAC systems, laying pipes and putting up drywall. The construction industry is desperate for workers. Business owners now view AI as something that can help their workers do their jobs better while they’re easing into retirement. People also adapt. It’s insulting when those experts say that millions will be unemployed, as if humans will just retreat into their darkened living rooms, collect some form of universal income check and watch Netflix all day. Humans aren’t like that. When the tax code was first released in 1913, there were only a few dozen pages. Today it’s grown to tens of thousands. Twenty years ago, jobs like “social media manager”, “mobile app developer”, “executive coach”, “SEO specialist” and even “cannabis compliance manager” didn’t even exist. With all the automation and technology around us, how many times do you hear that someone is “slammed” or “hasn’t taken a vacation in years”? People want purpose and want to feel needed. They want to be busy. I believe humans will find plenty of other productive things to do with our time. Maybe the recent surge in entrepreneurship is indicative of that. Also, it’s going to take a while to trust AI. My clients don’t. They don’t believe big tech’s promises that their data is protected and private when we regularly read of breaches and models trained on private information. They wonder if, by using AI platforms, their pricing, costs and other proprietary information are being exposed for others to see. They’ve been burned by bugs, errors, shutdowns and disruptions before caused by unreliable technology, and they’re not stupid when today’s big tech companies cover up their tracks by saying these are just “hallucinations”. Please. There’s a long way to go before business owners in particular are going to let some bot process their invoices, collect receivables, interact with irate customers or be responsible for shipping products without human oversight.

Corporate America may be using AI to cut jobs, but small businesses are using it to keep them | Gene Marks
Europe
BBC Business

Water supply issue affects Gatwick Airport

Both terminals at Gatwick Airport are being affected by a water supply issue, with toilets reported to be out of order and restaurants closed. In a statement on X, the airport in West Sussex apologised for the disruption, external and said a problem in the Horley area was affecting supplies and was under investigation. Bottled water is being made available to passengers and staff and contingency measures have also been put in place, it said. SES Water, which covers parts of Kent, Surrey and south London, as well as the airport, said it was working to restore normal service. A spokesperson for the water company said: "Due to a number of complications caused by a power outage at our Bough Beech Water Treatment Works, some customers are experiencing low water pressure or a temporary loss of supply. "We are working to overcome those complications and return the treatment works to supply as quickly as we can." She confirmed Gatwick Airport was affected, adding: "We are working with them while our teams work to restore normal service as quickly as possible." Follow BBC Sussex on Facebook, external, X, external, and Instagram, external and listen to BBC Radio Sussex on Sounds. Send your story ideas to southeasttoday@bbc.co.uk, external or WhatsApp us on 08081 002250.

Water supply issue affects Gatwick Airport
North America
CNBC Finance

Senate panel advances China auto bill that could bar Mercedes-Benz from U.S.

The Senate Commerce Committee advanced bipartisan legislation Wednesday aimed at toughening a ban on Chinese automakers from the U.S. market, even as Chairman Ted Cruz, R-Texas, warned that it could unintentionally bar Mercedes-Benz from selling vehicles in the country. Cruz said during the committee's markup of the Motor Vehicle Modernization Act of 2026 that the bill's 15% Chinese ownership threshold would cover Mercedes-Benz because two Chinese investors collectively own nearly 20% of its shares. "We would never consider" banning Mercedes-Benz, Cruz said, adding that the bill would need to be changed before becoming law. Mercedes-Benz's two largest individual shareholders are Chinese state-owned automaker BAIC, formerly the Beijing Automotive Industrial Corp., with a 9.98% stake, and Geely founder Li Shufu, with 9.69%. The bill would codify federal restrictions intended to keep Chinese-linked vehicle technology out of the U.S. over national security concerns that connected cars could collect sensitive data. "We're preventing an absolute, total, and complete destruction of our industrial base," said Sen. Bernie Moreno, R-Ohio, who introduced the bill with Sen. Elissa Slotkin, D-Mich. Mercedes-Benz previously declined to comment on the legislation but said it employs more than 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina. Moreno said during the markup that Mercedes-Benz would have until 2030 to comply with the ownership limit and could seek a waiver. During the markup, Cruz also accused General Motors of supporting the provision in an effort to weaken Mercedes-Benz and make Cadillac more competitive. "GM is pushing for this provision to get Mercedes-Benz out of the market," Cruz said. GM and Mercedes-Benz did not immediately respond to requests for comment. GM is the top-selling automaker in the U.S. Get this delivered to your inbox, and more info about our products and services.

Senate panel advances China auto bill that could bar Mercedes-Benz from U.S.
Asia
The Hindu BusinessLine

Micron, SK hynix, Oracle, SpaceX, Google, Microsoft et al: AI’s dotcom deja vu

The AI debate has never been hotter and to say that the bears won the argument last month would be an understatement. Any doubts? Look up South Korean stock markets. The benchmark KOSPI Composite Index completed ‘a month to forget’ in July with a loss of 22 per cent. This is the third worst month in the index’s history, after the 27 per cent crash during the Asian financial crisis of October 1997 and 23 per cent plunge during the global financial crisis in October 2008. The country, which raced to a stock market capitalisation of $5.1 trillion as of June peak, has now seen $1.2 trillion of that wealth erode in a matter of weeks — a brief demonstration of the possible fallout if the AI trade were to go South across the globe. The reason? Semiconductor stocks SK hynix and Samsung Electronics, which roughly account for 50 per cent of KOSPI companies’ market cap, slumped 20 per cent and 24 per cent respectively to intra-week lows (versus previous week close) — the very stocks that took the Korean stock market to record highs. . That is not all. The rout was more intense in products such as single-stock leveraged ETFs. These are high risk funds that use derivatives to multiply the daily returns of an underlying stock. For instance, the CSOP SK Hynix Daily (2x) Leveraged Product ETF. This ETF will gain 2 per cent if SK hynix gains a per cent in a day and lose 2 per cent if the stock loses 1 per cent in a day. From its 52-week high on June 25, this ETF has lost over 78 per cent! Products like these and leveraged exposures to chip stocks have wiped out the portfolios of thousands of Korean investors. The situation is so dire that their finance minister apologised and admitted that such leveraged products were introduced without careful consideration. While the impact has been most dramatic in South Korea, that is partly because its stock market had become, in effect, a concentrated bet on the AI trade. However, this unwind is no longer a Korea-only story and AI-theme stocks have been under pressure across markets. We looked at 16 stocks which are front-runners of the AI theme. The list spans across hyperscalers, chip design (Nvidia, Broadcom), semiconductor manufacturing, neoclouds (CoreWeave, Nebius) and an AI investor/ financier in SoftBank. From their 52-week highs, these stocks are down 30 per cent on average (Chart 1). From the said peaks, they have erased investor wealth of about $6 trillion. One of the starkest examples is Oracle. Last year, after it announced Q1 FY26 results in September, the stock zoomed about 43 per cent to a 52-week high, reflecting the recklessness in the AI mania. Today its correction of 62 per cent reflects the concerns building up. Many of them are part of S&P 500, accounting for about 30 per cent of the index’s total market-cap and earnings. Between 2025 and 2026 (consensus estimate), the total net income of the index’s constituents is expected to move from $2.1 trillion to $2.9 trillion. Of this incremental income of about $840 billion in 2026, the said AI constituents account for one in three dollars — showing the weightage of these companies (Chart 2). Further, the index P/E multiple, based on CY25 net income is at 33x, which is a valuation that falls in the bubble territory. However, based on CY26 earnings estimates, the P/E cools to 23x. This expected earnings growth is the thin line dividing the debate between the bulls and the bears. If, unfortunately, these companies fail to meet earnings expectations, the index being in bubble territory, brings back memories of dot-com crash in which the S&P 500 corrected 50 per cent and the Nasdaq Composite 78 per cent from 2000 peak to troughs in late 2002. So, does the market’s disappointment stem from earnings? Apparently not, as these companies have delivered earnings beat almost all the time in the last four quarters. The problem appears to be capex of astronomical proportions. Take Alphabet’s case. The company reported Q2 2026 earnings on July 22. Revenue grew 24 per cent year-on-year and operating income 30 per cent. Its cloud revenue (20 per cent of consolidated revenue) grew a staggering 82 per cent. Profit growth was muted relative to revenue growth at around 16 per cent after adjusting for one-offs. But what spooked the Street was the company raising full-year 2026 capex guidance from $195 billion to $205 billion. It also posted its first quarter of negative free cash flows. What added fuel to the fire was the management admitting that free cash flows will remain under pressure driven by capex and that capex will continue until it sees an ‘attractive return on that investment’. Meta Platforms came up with Q2 results on Wednesday. Revenue beat expectations. But it barely ended up free cash flow positive with $784 million as against $8.5 billion in Q2 2025. Amazon’s Q2 results on Thursday revealed that it continued to turn negative free cash flows for the quarter, similar to Q1. The company upped capex guidance from $200 billion to $220 billion for 2026. The fact that companies are spending big time on capex and that free cash flows would drain is not a recent development, per se. It’s only now that the market is waking up to smell the coffee. As Keynes said, “Markets can remain irrational longer than you can remain solvent.” The top hyperscalers, neoclouds, Meta Platforms alongside newly-listed SpaceX (xAI) are expected to incur capex of over $2.16 trillion in fiscals ending in 2026 and 2027, per Bloomberg consensus (Chart 3). This is around half the size of India’s economy! Also, rising capex has meant a clear downtrend in the fixed assets turnover ratio of hyperscalers (Chart 11).

Micron, SK hynix, Oracle, SpaceX, Google, Microsoft et al: AI’s dotcom deja vu
Asia
The Hindu BusinessLine

ICICI Prudential Flexicap: Conviction behind the flexibility

Indian equities still benefit from healthy domestic growth and improving earnings, but valuations and prospects vary sharply across large, mid and small companies. Flexi-cap funds can shift between these segments as opportunities change, giving investors diversification, professional stock selection and a more adaptable route through today’s uneven and volatile market. We recommend ICICI Prudential Flexicap Fund for investors who can remain invested for at least five years. It suits those willing to accept sizeable equity swings for better long-term return potential. Since its July 2021 launch, the fund has built a credible performance record and a distinct portfolio. We covered the fund during its new fund offer and reviewed it again in August 2024. Since then, it has grown in size further (₹22,500-crore AUM now) and sharpened its choices. The fund now combines a large-cap base with a sizeable small-cap allocation. It also carries strong positions in automobiles, retail and other consumer-facing businesses. Note, this is not a fund that closely follows the market. It takes meaningful stock, sector and market-cap positions. That can lift returns when its calls work. It can also create periods of sharp underperformance. Here is the fund review. The fund is the seventh-largest scheme among 45 flexi-cap funds in the market. Size provides operating stability and research depth. It also makes liquidity important, especially in smaller companies. Large-caps formed 62.59 per cent of the portfolio. Mid-caps accounted for 9.71 per cent, while small-caps made up 24.47 per cent. Other assets formed the balance. The flexi-cap category portfolio had around 64 per cent in large-caps and 15 per cent in mid-caps. Its small-cap exposure was about 11 per cent. ICICI Prudential Flexicap, therefore, held more than twice the category’s aggregate small-cap allocation. Its mid-cap exposure was notably lower. This positioning was built gradually. In June 2023, large-caps formed 76.99 per cent of the fund. Small-caps accounted for only 9.70 per cent. By June 2026, large-caps had fallen by over 14 percentage points. Small-caps had risen by almost 15 points. The allocation barely changed during the latest year. The fund’s “dynamic” approach has, therefore, meant a measured three-year shift. It has not meant constant movement between market segments. The fund uses wider economic and valuation signals mainly for large-cap choices. It relies more on company-level research in mid-caps and small-caps. Around 60-65 per cent is intended as a core growth portfolio. The rest can include cyclical and contrarian opportunities. The current portfolio is built heavily around domestic demand. Automobiles formed 18.41 per cent in June 2026. Banks accounted for 16.99 per cent. Retailing made up 10.75 per cent. Consumer durables and auto components added another 14.40 per cent. By a broad grouping, mobility and consumption-linked businesses formed nearly half the portfolio. The fund held much more in automobiles, retail and consumer durables than the category. It held less in banks, pharmaceuticals and software services.

ICICI Prudential Flexicap: Conviction behind the flexibility
Asia
The Economic Times

10 largecap stocks with upside potential up to 37%. Do you own any?

Analyst forecasts offer more than just numbers-- they provide a strategic view of future market potential. For investors seeking the next big opportunity, a closer look at BSE large-cap stocks reveals several promising contenders.Based on consensus estimates from Trendlyne, several large-cap stocks are projected to deliver strong returns over the next 12 months. This anticipated “upside” represents the average expected gain over the coming year, offering a data-driven benchmark for investors targeting high-potential opportunities. In this analysis, we highlighted 10 standout large-cap stocks expected to deliver gains in the 25% to 37% range over the year ahead. The stock is currently trading at Rs 748, with an average analyst target price of Rs 1,025, implying a potential upside of 37%. The stock is covered by 40 analysts, with a consensus rating of Strong Buy. The stock is currently trading at Rs 548, with an average analyst target price of Rs 749, implying a potential upside of 37%. The stock is covered by 34 analysts, with a consensus rating of Strong Buy. The stock is currently trading at Rs 515, with an average analyst target price of Rs 676, implying a potential upside of 31%. The stock is covered by 32 analysts, with a consensus rating of Buy. The stock is currently trading at Rs 1,229, with an average analyst target price of Rs 1,587, implying a potential upside of 29%. The stock is covered by 39 analysts, with a consensus rating of Strong Buy. The stock is currently trading at Rs 1,307, with an average analyst target price of Rs 1,682, implying a potential upside of 29%. The stock is covered by 31 analysts, with a consensus rating of Strong Buy. The stock is currently trading at Rs 284, with an average analyst target price of Rs 365, implying a potential upside of 28%. The stock is covered by 27 analysts, with a consensus rating of Buy. The stock is currently trading at Rs 2,680, with an average analyst target price of Rs 3,387, implying a potential upside of 26%. The stock is covered by 15 analysts, with a consensus rating of Buy. The stock is currently trading at Rs 387, with an average analyst target price of Rs 490, implying a potential upside of 26%. The stock is covered by 31 analysts, with a consensus rating of Buy. The stock is currently trading at Rs 242, with an average analyst target price of Rs 305, implying a potential upside of 26%. The stock is covered by 30 analysts, with a consensus rating of Buy. The stock is currently trading at Rs 347, with an average analyst target price of Rs 433, implying a potential upside of 25%. The stock is covered by 27 analysts, with a consensus rating of Strong Buy.

10 largecap stocks with upside potential up to 37%. Do you own any?
Europe
The Guardian

US trade chief defends tariffs as Democrats say Trump ‘in denial’ over price hikes

Jamieson Greer, the US trade representative, before senators on Wednesday. Photograph: Michael Brochstein/Zuma/ShutterstockView image in fullscreenJamieson Greer, the US trade representative, before senators on Wednesday. Photograph: Michael Brochstein/Zuma/ShutterstockTrump tariffsUS trade chief defends tariffs as Democrats say Trump ‘in denial’ over price hikesJamieson Greer denies tariffs have pushed up prices during grilling from lawmakers over cost-of-living concerns Donald Trump’s chief trade official denied the president’s sweeping tariffs have increased prices for US families, as lawmakers challenged him over cost-of-living concerns across much of the country. US inflation surged to a three-year high earlier this year. During a heated exchange before US senators on Wednesday, however, US trade representative Jamieson Greer appeared to claim Trump’s controversial economic agenda had not driven prices higher. Asked by the Democratic senator Elizabeth Warren if the tariffs had increased prices for American families, Greer said: “No.” “Core inflation fell to 2.6% year on year, much better than in January 2025,” Greer said. Core inflation excludes food and energy. Overall inflation is slightly higher than it was when Joe Biden left office. Warren said an estimate produced by Democrats and based on the nonpartisan congressional budget office and the treasury department’s own numbers, showed families were paying an average of $1,700 more in tariff costs since Trump’s return to office. It comes at a critical time for Trump’s tariffs policy, which suffered a damaging blow in February when the US supreme court ruled that many of those tariffs were illegal. The US replaced those tariffs with a 10% tariff regime on much of the world, but this is due to expire on Friday – and Trump officials, including Greer, have indicated they will replace it with a new wave of duties on imports from overseas. During Greer’s appearance before the Senate finance committee on Wednesday, Senator Raphael Warnock said Trump had “made life more expensive for everybody” before the US-Israel war on Iran sent “energy prices through the roof”. “Despite this mountain of evidence, you and the president still seem to be in denial that tariffs have raised prices,” Warnock told Greer, “a fact that study after study confirms, and is just basic common sense – everybody sees it, we’re feeling it.” Warnock asked if Greer had “ever produced any rigorous peer-evaluated study refuting the fact that the tariffs have contributed to inflation, or is your rebuttal to these conclusion just based on vibes, people’s feelings, politics … ?”

US trade chief defends tariffs as Democrats say Trump ‘in denial’ over price hikes
Asia
The Economic Times

Mutual fund NFOs: 7 new funds will open for subscription this week. Check dates

Around seven new funds will open for subscription this week. Fund houses launch new funds to complete their bouquet of offerings. Here is a detailed breakup of NFO period, minimum investment amount, according to Value Research. Kotak Nifty Bank Index Fund will open for subscription on August 3 and will close on August 17. The minimum investment amount will be Rs 1,000. Motilal Oswal Nifty Metal ETF and Motilal Oswal Nifty Oil & Gas ETF will open and close for subscription on August 3. The minimum investment amount will be Rs 10. AlphaGrep Liquid Omni FoF will open for subscription on August 4 and will close on August 6. The minimum investment amount will be Rs 500. JioBlackRock Nifty 50 ETF will open for subscription on August 4 and will close on August 11. The minimum investment amount will be Rs 500. Edelweiss Nifty REITs & Realty Index Fund will open for subscription on August 5 and will close on August 19. The minimum investment amount will be Rs 100. Franklin India Short Term Fund will open for subscription on August 5 and will close on August 11. The minimum investment amount will be Rs 5,000.

Mutual fund NFOs: 7 new funds will open for subscription this week. Check dates
Asia
The Economic Times

11 penny stocks surged up to 198% in 6 months. Do you own any?

Over the past six months, 11 penny stocks delivered returns ranging from 19% to 198%. The stocks were screened using the following criteria: market capitalisation below Rs 1,000 crore, share price under Rs 20, and a minimum latest trading volume of 5 lakh shares. The screen highlights actively traded low-priced micro-cap stocks that have generated strong gains.While penny stocks can offer significant upside potential, they also carry substantial risks, including low liquidity, sharp price volatility, and limited financial transparency. Investors should conduct thorough due diligence and follow prudent risk management before investing in this segment. (Source: ACE Equity)

11 penny stocks surged up to 198% in 6 months. Do you own any?