BlackRock Sees US Stocks Getting Their Mojo Back
On the new episode of Trumponomics: What happens when US economic data can't be trusted? With President Donald Trump firing independent regulators and killing off advisory committees, David Wilcox, director of US economic research for Bloomberg Economics, and Molly Smith, editor on the US economy, discuss why reliable data is at risk. Listen on Apple, Spotify, or wherever you get your podcasts.
A recurring question in markets this year has been whether US exceptionalism is well and truly over. It's sure seemed that way at times— stock indexes in Europe have been outperforming US benchmarks, while Chinese tech shares have soared even as the once-hot Magnificent Seven stumbled.
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Microsoft Stock (MSFT) Shrugs Off Macro Blues and Returns to Record Highs
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Today, every Fortune 500 CEO is racing to integrate AI into their business, and Microsoft's Azure has become the engine powering that transformation. Azure's revenue soared 33% last quarter—well ahead of Wall Street's 30% estimate—with AI services accounting for nearly half of that growth. Microsoft reported $26.75 billion in cloud revenue, up 21% year-over-year, thanks to Azure's ability to deliver customized AI solutions, from predictive analytics in retail to real-time fraud detection in finance. At Build 2025, Microsoft showcased updates to its Maia AI chip, reinforcing its role as an innovation leader in the space. What stands out is the real-world impact. For instance, Walmart (WMT) is using Azure to streamline its supply chain through AI models that anticipate demand surges. Microsoft CFO Amy Hood noted on the latest earnings call that the company is working to expand data center capacity to meet what she called 'insatiable' demand. 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Microsoft is allocating a massive $80 billion toward AI infrastructure this year, accelerating its data center expansion at a rapid clip. However, last quarter marked a slight decline in capital expenditures—from $22.6 billion to $21.4 billion—signaling a shift from sheer scale to strategic efficiency. Rather than cost-cutting, this appears to reflect Microsoft's growing confidence in its internal AI capabilities. As the chart indicates, MSFT's R&D spend remains the most considerable portion of its operating expenses. A prime example is the Discovery platform, which recently identified a non-toxic data center coolant in just 200 hours, showcasing how AI is already improving operational efficiency. CEO Satya Nadella has also emphasized that refining AI models, whether developed with OpenAI or independently, is significantly reducing costs while enhancing performance. This disciplined investment approach seems to be paying off. 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Space and defense tech firm Voyager raises $382.8 million in US IPO
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Newsom addresses Trump's threat to arrest him as the two spar over LA riot response: 'Point of no return'
California Gov. Gavin Newsom, a Democrat, said he has crafted a plan in the event the Trump administration arrests him after he and President Donald Trump went head-to-head over the handling of the immigration protests in Los Angeles. Newsom said he and his team have "processed" what it would mean for him if the Trump administration secured a federal warrant for his arrest, Newsom said in an interview with the "Pod Save America" podcast hosted by former Obama administration officials that aired Monday night. "What's so absurd about that question is I've actually thought about it," Newsom said when asked about preparations in the event authorities take him into custody. "The fact that we are even having that conversation with our folks, and have had that conversation with our folks in the United States in 2025, I mean, it says everything you need to know about who's in the White House right now," Newsom said. Newsom also addressed the arrest threats in an interview with The Washington Post published Tuesday, signaling that the relationship between the two had reached a point beyond repair. "He just threatened my arrest. One would assume, or presume, that's the point of no return," Newsom told The Washington Post. "I'm constitutionally capable of working with people, even those that call for my arrest. So, I remain resolved in that respect, as I remain resolved to have the backs of kids whose lives are being threatened by his authoritarian tendencies." Trump's border czar, Tom Homan, first suggested in an interview with NBC News Saturday that Newsom and Los Angeles Mayor Karen Bass could face arrest if they hamper any federal efforts to deport illegal immigrants. In response, Newsom appeared to taunt Homan to take him into custody. "He's a tough guy. Why doesn't he do that? He knows where to find me," Newsom told MSNBC News Sunday. "That kind of bloviating is exhausting. So, Tom, arrest me. Let's go." When asked about threats to arrest Newsom, Trump told reporters Monday that Newsom's primary crime "is running for governor because he's done such a bad job," adding he would arrest Newsom if he were Homan. Newsom voiced disappointment in response to Trump's remarks and cautioned the threats amounted to a step toward authoritarianism. "The President of the United States just called for the arrest of a sitting Governor," Newsom said Monday in a post on X. "This is a day I hoped I would never see in America. I don't care if you're a Democrat or a Republican this is a line we cannot cross as a nation — this is an unmistakable step toward authoritarianism." Meanwhile, Homan appeared to soften his original statement, saying an arrest would only happen if a crime were committed by Newsom and Bass. "Well, that whole thing's been taken out of context," Homan said. "They haven't crossed a line yet, but like any other U.S. citizen, if you cross that line, I don't care who they are. The governor, the mayor, whatever — when you commit a crime against ICE officers, we will seek prosecution." Newsom, who was first elected governor in 2018 and was re-elected in 2022, has drawn the ire of Trump for how he's handled multiple issues in his state, including the wildfires that ravaged Los Angeles in January. The two have sparred over Trump's decision to deploy thousands of National Guard troops and 700 Marines to California after protests launched Friday in response to recent arrests in the city by U.S. Immigration and Customs Enforcement. While Trump has argued the National Guard troops are necessary to prevent destruction in Los Angeles, Newsom has said the deployment violated California's state sovereignty. State governors usually oversee National Guard troops, but Trump invoked a law to place the troops under federal command so he could circumvent Newsom. On Monday, Newsom said most of the troops "are sitting, unused, in federal buildings without orders." "This isn't about public safety," Newsom said in a Monday post on X. "It's about stroking a dangerous President's ego."
