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Hi there, this is your daily ☕️ Finpresso.
In today's newsletter: 💸 Alphabet's cash flow turned negative on AI 🚗 Tesla profit misses as costs rise 📉 Fed's Warsh warns inflation fight isn't over 🚢 Houthis strike two Saudi oil tankers in Red Sea 💳 Revolut hits $115B valuation Plus: 🌍 7 macro news, 🏢 10 corporate news, 💰 7 deal flow, and 📑 6 research & reports.
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📊 Before The Bell
 | Change over the last 24 hours · as of Jul 23, 2026, 5:43 AM ET |
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💸 Alphabet's cash flow turned negative on AI
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- Alphabet's Google burned through more cash than it generated last quarter, reporting negative free cash flow of $5.9 billion — its first negative reading in decades — as spending on AI data centers and hardware outpaced its income.
- The company raised its 2026 capital-spending forecast to $195 billion–$205 billion, up from $180 billion–$190 billion, and its finance chief said outlays will rise "significantly" in 2027, part of a broader $700 billion-plus AI push across Google, Amazon, Microsoft, and Meta.
- Analysts say each dollar now buys less capacity because of higher memory-chip and materials costs, and investors likely expect Google's cash flow to stay negative for some time even as revenue keeps growing; Tesla also reported negative cash flow on AI spending Wednesday.
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🚗 Tesla profit misses as costs rise
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- Tesla's adjusted profit came in at 33 cents a share last quarter, well below the 51 cents analysts expected, as rising costs overshadowed strong car sales and unsettled investors betting on its robotics and AI ambitions.
- Operating costs jumped 47 per cent to US$4.35 billion while vehicle prices fell, and the company burned through US$1.09 billion in cash — its first negative free cash flow in more than two years, sending shares down 2.4 per cent.
- Capital spending of US$5.8 billion tracks toward roughly US$17 billion this year, below Musk's US$25 billion target, prompting an analyst to call the pullback "puzzling" given how much Tesla's future depends on AI investment.
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📉 Fed's Warsh warns inflation fight isn't over
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- Federal Reserve Chair Kevin Warsh signaled the inflation fight is far from over, declining to celebrate June's cooldown and leaving the door open to interest rate hikes despite record highs across the Dow, S&P 500, and Nasdaq.
- Trailing 12-month inflation eased to 3.5% in June from a three-year high of 4.2% in May as crude prices fell on U.S.-Iran peace talks, but it has now topped the Fed's 2% target for 63 straight months.
- Warsh's caution reflects core inflation (which strips out food and energy) staying stubborn, suggesting the price pressure has spread beyond fuel; higher borrowing costs could threaten debt-financed AI data-center spending and stretched growth-stock valuations.
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🚢 Houthis strike two Saudi oil tankers in Red Sea
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- Yemen's Houthis said they hit two Saudi Arabian oil tankers, the Encelia and Layla, with drones and missiles in the Red Sea, threatening to open a new front in the escalating Middle East conflict.
- The strikes, if confirmed, mark the first since the Iran-backed group declared a naval blockade against Saudi Arabia, coming as the U.S. completed its 12th consecutive night of strikes on Iran.
- Saudi Arabia's state press agency confirmed the Encelia was hit while transiting the Red Sea, causing a fire at the bow with all crew safe, while a separate maritime report cited a projectile strike about 130 kilometers off Al Shuqaiq.
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💳 Revolut hits $115B valuation
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- Digital bank Revolut has been valued at $115 billion in a share sale, a 53% jump in under a year that makes it Europe's most valuable private company and lifts it above rivals like Barclays.
- The deal priced shares at $2,017 each and let employees and existing investors cash out rather than raise new money, though the transaction's size was not disclosed, unlike Barclays' publicly traded $95 billion market value.
- Backing the valuation, Revolut reported $2.3 billion in pre-tax profit for 2025, up 57%, as revenue rose 46% to $6 billion and its customer base passed 75 million.
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🌍 Macro News
- Nvidia's Huang urges Washington to embrace, not ban, Chinese AI models. LINK
- Kakao and Circle partner to build won-backed stablecoin payment infrastructure. LINK
- South Korea's economy grew 0.6% in Q2, beating forecasts on exports. LINK
- Trump approves 30-year civil nuclear cooperation deal with Saudi Arabia. LINK
- Treasury yields rise with oil prices ahead of jobless claims data. LINK
- S&P and Pantera launch crypto index ranking blockchains by protocol revenue. LINK
- Automakers privately urged UK to scrap its 2035 petrol car ban. LINK
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🏢 Corporate News
- ServiceNow's quarterly subscription revenue rose 25% to $3.9 billion, beating estimates. LINK
- AMD to invest up to $5 billion in AI firm Anthropic. LINK
- BitMEX crypto exchange will shut down all operations in September. LINK
- OpenAI plans $30 billion data center complex in Georgia. LINK
- EU antitrust regulators approve Paramount Skydance's acquisition of Warner Bros. LINK
- Segro backs £14 billion takeover offer from US firm Prologis. LINK
- Monday.com cuts 630 jobs, 20% of staff, to focus on AI. LINK
- EasyJet's quarterly pretax profit fell 70% on fuel costs, weak bookings. LINK
- Google Cloud revenue jumped 82% to $24.8 billion on AI demand. LINK
- White House accuses China's Moonshot of copying Anthropic's AI technology. LINK
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📈 Stocks
| ▲ Biggest winners | | Super Micro Computer rose 20% after it disclosed $60 billion in new fourth-quarter orders and raised gross margin guidance to 15% to 17%. LINK | | Westinghouse Air Brake Technolo rose 10% after Q2 adjusted EPS of $2.76 beat $2.63 consensus and full-year guidance raised to $10.60-$10.90. LINK | | Penske Automotive Group rose 10% after Penske Corporation and Mitsui offered $210 per share to take the auto retailer private. LINK |
| ▼ Biggest losers | | GE Vernova fell 9% after adjusted EBITDA of $1.25 billion missed Wall Street estimates. LINK | | Reddit fell 8% after the Wall Street Journal reported Reddit may not renew its $60 million-a-year Google AI content deal. LINK | | Samsara fell 8% after Piper Sandler cut its price target to $47 from $53. LINK |
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📑 Research & Reports
- Nvidia's next-gen Vera Rubin chip rack boosts AI inference performance sharply. LINK
- Morgan Stanley calls memory-chip stock selloff a buying opportunity. LINK
- Franklin Templeton says agentic AI will drive blockchain adoption's next wave. LINK
- Deutsche Bank sees China's humanoid robot output far exceeding estimates. LINK
- Bitcoin's rebound faces key resistance near $69,000 breakeven level. LINK
- RBI says India's financial system remains stable despite global shocks. LINK
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💰 Deal Flow
- Travis Kalanick's robotics firm Atoms raises $1.7 billion funding round. LINK
- TE Connectivity beats earnings estimates, buys Astrodyne TDI for $1.4 billion. LINK
- AI cybersecurity startup Glow launches with $1.2 billion valuation. LINK
- Genius AI raises $44 million, reaching $1.15 billion valuation. LINK
- Stealth startup Arrakis emerges with $38 million in funding. LINK
- Brookfield to buy battery-storage firm Aypa Power from Blackstone. LINK
- NovaGold to buy remaining Donlin Gold stake, forming $4.2 billion firm. LINK
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📅 Market Calendar
 | Earnings · Economic events |
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