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U.S. President Donald Trump's deal with Nvidia to give the U.S. government a cut of the firm's sales in exchange for resuming exports of banned AI chips to China has overturned decades of U.S. national security policy and created an entirely new category of corporate risk, Reuters reports. The move has attracted bipartisan criticism, with lawmakers warning that it risks the creation of a pay-for-play framework for the sale of sensitive technologies to U.S. adversaries. "Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities," said U.S. Representative John Moolenaar, a Michigan Republican who chairs the House Select Committee on China.

 

Reuters

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An analysis from Digiday examines how artificial intelligence is transforming agency compensation structures. As AI enhances skills, executional capabilities, and efficiencies within media buying agencies, clients are increasingly expecting financial returns from these advancements. The article explores the potential shift in compensation models, where agencies might face pressure to demonstrate tangible value and cost savings to justify their fees. This evolution in agency-client dynamics could significantly impact how agencies negotiate contracts and measure success in the AI-driven landscape.

 

Digiday

IBM is racing against Google to deliver an industrial-scale quantum computer. Recent breakthroughs have revived confidence about creating full-scale quantum systems by the end of the decade, the FT reports.

 

Financial Times

President Trump has nominated economist E.J. Antoni to lead the Bureau of Labor Statistics (BLS), following the dismissal of the previous commissioner amid allegations of data manipulation. Antoni, currently with the Heritage Foundation, has been critical of the BLS and is associated with the controversial political initiative Project 2025, raising concerns among economists about the potential impact on the reliability of U.S. economic data. Critics argue that his appointment could undermine independent analysis and exacerbate existing issues with data quality at the BLS, which has faced scrutiny for declining survey response rates and data collection challenges.

 

Reuters

Despite a stabilization in the deals market, Wall Street's hiring remains stagnant, with some banks quietly implementing layoffs. Business Insider highlights that while investment banking activities are recovering from earlier downturns, firms like Goldman Sachs and Barclays are not expanding their workforce. Instead, they are leveraging technology, including AI, to maintain efficiency. This trend poses strategic implications for U.S. corporate finance executives, because the traditional hiring cycles may shift, impacting talent acquisition and operational strategies in the financial sector.

 

Business Insider

An analysis from The Economist highlights the challenges facing the U.S. housing market as favorable conditions for homeowners wane. Rising interest rates and economic uncertainties are cooling demand, leading to a slowdown in price growth and sales activity. This shift poses strategic implications for corporate finance executives, particularly in sectors tied to real estate and consumer spending. The article explores how these dynamics could affect investment strategies and financial planning, emphasizing the need for adaptability in navigating the evolving market landscape.

 

The Economist

Activist investor Engine Capital has called for a board refresh at medical equipment maker Avantor. In a letter, the firm cited Avantor's struggles over the past five years, including financial forecast cuts and underperformance. Engine Capital, which holds a 3% stake in the firm, said: "We believe the board is responsible for Avantor's underperformance and has, in our opinion, failed to adequately oversee the company's operations, management, capital allocation and succession planning."

 

Reuters

Albemarle has appointed new executives, including Mark Mummert as chief operations officer, in a restructuring aimed at improving agility and efficiency in a volatile lithium market. Autumn Gagarinas becomes chief people and workplace transformation officer, while Melissa Anderson takes the role of chief business transformation officer. CEO Kent Masters said the changes will better align resources, manufacturing, and technology to support growth and customer focus. The shake-up comes amid slumping lithium prices due to oversupply and slowing EV sales, though Albemarle shares rose 7% after a major Chinese battery maker suspended a mining project.

 

Wall Street Journal

Ford Tamer, the new CEO of Lattice Semiconductor, has been handed a $94m payout. This is 1,300 times the $72,000 median salary of staff at the firm. The deal, approved by the board last September, came after Lattice lured Tamer from investment firm Francisco Partners with a one-time, performance-based stock grant.

 

OregonLive.com

The Wall Street Journal reports that Bain Capital is weighing an IPO of Bob’s Discount Furniture as soon as later this year, with bankers being lined up for the deal. Analysts estimate the retailer, which reported $2bn in 2024 sales and $200m in EBITDA, could be valued around $1bn. Bob’s operates 189 stores across 24 states and has grown its e-commerce presence, especially during the pandemic. Bain, which acquired the company in 2014, may be motivated by improving IPO market sentiment after strong recent debuts by Figma, Circle, and Chime.

 

Wall Street Journal

Warby Parker, the leading eyewear brand, has been adjusting its pricing strategy to stay affordable amidst rising costs. Warby Parker's strategy is a departure from other eyewear brands that have raised prices on their base offerings due to tariffs, inflation, and rising optometrist salaries. The company's control over its supply and sales channels, including two optical labs in the U.S. and its own stores and online distribution, has helped it avoid some tariff costs. Warby Parker's second-quarter revenue climbed 14% to $214.5m, but its quarterly adjusted gross margin dropped to 54.3% from 56.1% a year ago. The company has introduced higher-grade progressive lenses, new styles, and add-ons, such as clip-on sunglasses.

 

The Wall Street Journal

Peloton has posted a surprise fourth-quarter profit, turning a loss of $30.5m into earnings of $21.6m, or five cents per share, for the three months to June 30th. Revenues totalled $606.9m, down 5.7% from a year earlier. Analysts polled by FactSet had expected a loss of seven cents per share and sales of $580m. Chief executive Peter Stern attributed the company's performance to its cost-cutting efforts, which it is extending into the new fiscal year with plans to cut 6% of its workers globally. 

 

Bloomberg

CNBC

Reuters

Wall Street Journal

Liberty Mutual has agreed to forfeit $4.7m in profit to resolve a U.S. criminal bribery investigation involving its Indian subsidiary, Liberty General Insurance. The Department of Justice revealed that the subsidiary paid $1.47m in bribes to six state-owned banks from 2017 to 2022, generating $9.2m in revenue. The case marks the first public enforcement action under a resumed and scaled back anti-bribery law, which had been halted by President Donald Trump in February. The Justice Department has since refocused its enforcement efforts on misconduct that impacts U.S. competitiveness. In a statement, Liberty said it was pleased the Justice Department "acknowledged our proactive approach and affirmed our commitment to integrity and compliance across our global enterprise."

 

U.S. News

A federal judge has ordered Chemours Chemical Company to cease discharging harmful levels of cancer-causing chemicals into the Ohio River from its Washington Works plant in West Virginia. U.S. District Judge Joseph R. Goodwin said that these pollutants pose risks to the environment and public health. The West Virginia Rivers Coalition had previously sued Chemours for violating permit limits for over five years. Judge Goodwin noted that Chemours has acknowledged its violations but has not submitted an acceptable plan to the US Environmental Protection Agency. Chemours plans to appeal the ruling, according to spokesperson Jess Loizeaux.

 

U.S. News