US Core CPI Rises, Perplexity Bids for Chrome, China-India Ties & AI Fuels Energy Demand | Bloomberg Businessweek Daily

Inflation Data and Fed Policy

• 📈 The core Consumer Price Index (CPI), excluding food and energy, rose 0.3% month-over-month and 3.1% annually, largely in line with economists' expectations.
• ⚠️ While the numbers were not worse than anticipated, there are signs of tariff pass-through impacting prices, particularly in core goods like household furnishings and appliances.
• 📉 Owner's equivalent rent saw a 0.3% increase for the third consecutive month, indicating a leveling off of housing price increases.
• 💡 Analysts suggest the Fed is in no rush to cut rates, with a potential cut not expected until December, despite market speculation for a September move.

Tech and Business Deals

• 🚀 Perplexity AI has made an unsolicited $34.5 billion offer to acquire Google Chrome, aiming to integrate AI agents into the browser to enhance user experience.
• 🌐 This move comes amid ongoing antitrust proceedings against Google and a dynamic, uncertain period in the browser market, with AI startups rethinking the search and browsing experience.
• 💡 Bloom Energy CEO KR Sridhar highlights the massive power demand driven by AI, estimating that data centers will require power equivalent to all US single-family homes by 2030.
• ⚡ Bloom Energy is powering over half a gigawatt of data centers using its on-site fuel cell technology, which generates electricity from natural gas without combustion, offering a clean and reliable solution.

Global Economic and Trade Dynamics

• 🇨🇳 President Xi Jinping aims to consolidate influence with groups like BRICS, while the U.S. imposes tariffs on India and other countries.
• 🤝 China and India are set to resume direct flight connections, signaling a reset in political ties despite complex national security concerns.
• 🌎 Latin America is closely watching China's growing influence, with countries like Brazil and Argentina relying heavily on China as a primary market for exports.
• ⚠️ The BRICS bloc, while sharing common criticism of U.S. protectionism, struggles to coordinate a collective response to tariffs due to diverse membership and individual national interests.

Stock Market Movers

• 📊 Stocks reached record highs, with the S&P 500 and NASDAQ Composite closing at new peaks, bolstered by the in-line inflation data.
• 🚀 Bloom Energy shares surged 76% year-to-date, driven by deals to support data centers and the increasing demand for power fueled by AI.
• 🛰️ AST Space Mobile reported strong earnings, with plans to launch numerous satellites in 2025-2026, aiming to eliminate dead zones for cell phone signals, and has seen over 1,000% stock growth in two years.
• 🏠 Opendoor Technologies saw a significant lift in its stock price following a tweet from investor Anthony Pompliano, who announced he bought shares of the firm.