
iPhone 17 could feature 'significant' changes to the Dynamic Island — what we know
We've already heard some rumors the Dynamic Island could be redesigned on the iPhone 17. Now leaker Majin Bu has corroborated those claims in a new interview, stating that "Apple appears committed to making it more functional and integrated"
Bu added that the changes "could mark a step forward in device interaction," but they're keeping all the details to themselves for the time being. Which is a little frustrating, but it's hinted that we may be hearing more details about the changes in the near future.
The Dynamic Island will hit its third birthday later this year, and is probably due some kind of upgrade.
It makes sense that the Dynamic Island would be undergoing some changes at some point. The iPhone 18 is expected to hide all the remaining Face ID sensors underneath the screen, leaving a simple circular cutout for the camera. Meanwhile the iPhone 20 is supposedly the first iPhone to offer an under display selfie camera — offering a true uninterrupted full screen.
With no real cutout to go with it, the Dynamic Island is going to need to undergo some changes. So it makes sense that Apple might pre-empt the change and start getting the feature ready for the changes.
Plus the Dynamic Island will hit its third birthday later this year, and is probably due some kind of upgrade. Though it isn't clear what kind of changes we could expect right now, I'd hope that any changes do come with some extra functionality.
Naturally we won't find out for sure until the iPhone 17 launch event, which is now expected to happen during the week of September 8. In the meantime you can check out all the latest news and rumors in our iPhone 17, iPhone 17 Air, iPhone 17 Pro and iPhone 17 Pro Max hubs.
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CNET
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- CNET
The AirPods Pro 2 Passed My Teen's Test, and They're $80 Off Right Now
My 13-year-old daughter loves her music and her privacy, and for years she has wanted a pair of AirPods. I always considered them too expensive and she's been using cheaper options, like the Amazon Echo Buds, as a result. But after one too many pairs being mysteriously "lost," I figure there's never been a better time to upgrade her to a pair of AirPods Pro 2. I picked them up during last year's sales, and they were definitely well-received. She's happy, she uses them every day and she hasn't lost them yet. They are currently $169 at Amazon -- a nice $80 discount on the usual price. While that's not the cheapest we've seen them go for, it's still a solid price for a high-quality pair like these. Why I didn't wait for the AirPods Pro 3 Rumors abound that Apple will replace the Pro 2 with an updated Pro 3 version later this year. My kid wanted headphones sooner, so I got her the Pro 2s. But if you're on the fence, here's my perspective. The main improvements to the Pro 3 are said to be heart-rate monitoring like the Beats Powerbeats Pro 2 have, as well as a new design. Other speculation points to improved sound and processing with Apple's H3 chip, temperature sensors, built-in infrared cameras, a touchscreen on the case, live translation of languages and more. There's no way to know what they actually will have, but I do know that they'll be more expensive than the Pro 2 (especially at this sale price). I don't think those new features are going to be worth the money, however. Hey, did you know? CNET Deals texts are free, easy and save you money. You might have a different take, especially if you want heart-rate monitoring on your headphones for fitness sessions or one of those rumored extras. In that case it might be worth waiting to see what the new versions include. The AirPods Pro 3 are expected to be announced in September and on sale soon after. Why I didn't get the AirPods 4 instead Why did I choose AirPods Pro 2 instead of the newer AirPods 4 with ANC? First off, as I mentioned in another article about a different pair of earbuds I bought, I think sealed, in-ear buds are better than open-design models like the AirPods 4. The seal creates another layer of noise isolation and contributes to superior sound quality, and if you want to pay attention to the world you can always engage ambient sound mode, which Apple calls transparency mode. XS eartips mean an XL hug from a happy kid may be coming soon. Lexy Savvides/CNET Also a factor was the commentary of CNET reviewer David Carnoy, who considers the Pro 2 the best Apple noise-canceling wireless earbuds: "While we're quite impressed with those new models -- and with the AirPods 4 ANC in particular -- the AirPods Pro 2 remain arguably the best Apple AirPods you can buy if you don't mind having silicone ear tips jammed in your ears." My daughter uses earplugs all the time to help her sleep, so she definitely qualifies as somebody who's comfortable stuffing things in her ears. Like her fingers, when I start using words like "sigma," "skibidi" and "relatable" to try to relate to her. I asked Carnoy about the Pro 2s potentially not fitting in her kid-size ears and he reassured me that the range of eartips that come with the Pro 2s "now include XS, so they should fit." Should you buy now with the threat of tariffs? It's no secret that President Donald Trump's tariffs are leading to higher prices for a lot of things, including electronics. We're actually tracking the price of the AirPods Pro 2 in our tariff tracker and as of press time the price has actually decreased since January. If you're in the market for AirPods 2 now anyway, now is a good time to buy. A Reuters report from April said AirPods could be subject to a 39% price hike to cover tariff costs, but the tariff situation is fluid, so I wouldn't use that potential increase as a reason to buy now. If you wait until the new model comes out later this year, the price on the older AirPods Pro 2 might even get lower. Do AirPods make a great gift? It took me years to finally understand, but yes, for someone looking for wireless earbuds, AirPods -- especially the Apple AirPods Pro 2 -- make the perfect gift, regardless of whether you're a teenage girl or not. If you're looking for more gifting options, check out our roundup of the best tech gifts under $100.
Yahoo
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Nvidia opens up $1 trillion valuation gap over Apple
Nvidia jumped to a new record high after its boss said the semiconductor giant had gained approval from the Trump administration to sell its AI chips to China. The chip maker is now worth more than $1 trillion (£746bn) more than Apple less than a week after it became the first publicly traded company worth more than $4 trillion. Nvidia surged by 4.2pc to nearly $171 in early trading in New York after chief executive Jensen Huang said it would restart sales of its advanced H20 devices to the world's second largest economy. The chips had been the subject of US export controls designed to keep the most advanced chips out of Chinese hands amid national security concerns. Nvidia's surge also boosted rivals, with fellow chip manufacturer AMD up 6.3pc and Broadcom up 2.2pc. Its clear lead over Apple, once the world's most valuable company, is symbolic of how stock markets have been driven higher by the mania surrounding artificial intelligence stocks. The chip makers surged as part of a wider rally on Wall Street despite US inflation figures that were slightly stronger than analysts had forecast. The US consumer prices index increased by 2.7pc in June, according to official figures, which was faster than 2.4pc in May and the 2.6pc predicted by analysts. Atakan Bakiskan of Berenberg said the rise in US inflation last month 'revealed early signs of tariff-led price increases'. JP Morgan Chase boss Jamie Dimon warned there remain 'significant risks' to the US economy from tariffs and trade uncertainty as the bank revealed quarterly profits of $15bn (£11.2bn). Meanwhile, US treasury secretary Scott Bessent said Donald Trump has started a 'formal process' to replace the chairman of the Federal Reserve. Mr Bessent said potential successors to Jerome Powell were already being identified, adding it was 'President Trump's decision, and it will move at his speed'. Thanks for joining us. That's all for today on this blog. Two of Wall Street's three main indexes remain in negative territory, with the Dow down 0.9pc and the S&P 500 down 0.3pc. However, the Nasdaq is up 0.4pc. You can read all the latest from The Telegraph on business and the markets here. Donald Trump has said that he expects to meet Sir Keir Starmer in Scotland to refine the trade deal between the countries. 'We are going to have a meeting with him, probably in Aberdeen. And we're going to do a lot of different things, also refine the trade deal that we've made,' Mr Trump said. The US president's agreement with the UK was his first deal since unsettling markets with his announced - and then paused - 'liberation day' tariffs. Number 10 said yesterday that Sir Keir had agreed to meet Mr Trump as he makes a 'private' trip to Scotland later this month. The president is expected to visit Britain again in September for an official state visit. Indonesian goods will face a 19pc tariff when they enter the US, but American goods will be imported into Indonesia tariff free, Donald Trump has announced. The trade deal, which will raise costs for the Americans, is one of a handful that the Trump administration has secured since pledging '90 deals in 90 days' in April. 'They are going to pay 19pc and we are going to pay nothing ... we will have full access into Indonesia,' Mr Trump said. European stocks fell today after investors waited for news of a possible US-EU trade deal. The Stoxx 600 closed down 0.4pc. 'What we're seeing here is just a reflection of uncertainty surrounding EU-US trade talks,' said Fiona Cincotta, senior market analyst at City Index. 'That radio silence is just unnerving investors. They want to know that an improvement can be made on [Donald Trump's planned] 30pc [tariff rate].' On Monday, the European Union accused the US of resisting a trade deal and warned of countermeasures if no agreement is reached. Mr Trump, meanwhile, said he was open to talks, adding that EU officials would visit the US for trade negotiations. The ZEW economic research institute said German investor morale rose more than expected in July, but economists warned that optimism would vanish without an EU-US trade deal. The cost government borrowing rose on both sides of the Atlantic after the effects of higher US inflation data spilt over into Europe. The yield on 10-year US Treasury notes rose to 4.488pc, from 4.429pc yesterday. Although there was initially a wobble in the bond market earlier this afternoon, with yields falling, traders ultimately sent them higher. It came as investors cut their bets on US interest rate cuts between now and the end of year. Meanwhile, German 10-year yields, the euro area's benchmark, rose after the US inflation figure was released. However, a fall in the morning left it at 2.710pc, down from 2.731 yesterday. UK 10-year gilts rose to 4.631pc from 4.607pc yesterday. The FTSE 100 finished the day down 0.7pc, despite breaching the symbolic 9,000 barrier earlier in the day. Meanwhile, the mid-cap FTSE 250 fell 0.2pc. The falls were similar across the Continent, with the pan-European Stoxx 600 falling 0.4pc. In France, the Cac 40 lost 0.5pc, while Germany's Dax dropped 0.4pc. Laith Khalaf, of stockbroker AJ Bell, said: 'The FTSE 100's flirtation with the 9,000 barrier proved short-lived, after a day in which the index struggled for direction and ended up with a case of the summertime blues. 'It took the UK's blue-chip index 15 years to beat the record closing level set in December 1999, at the height of the Dotcom boom, and while it's been far from plain sailing since then, investors have enjoyed handsome returns over the last decade. 'With dividends reinvested, growth of 7pc a year since July 2015 might look pedestrian compared to the US stock market, but in absolute terms that still equates to roughly a doubling of your investment in 10 years, which is not to be sniffed at.' There will be no tariffs on US goods entering Indonesia, but Indonesian goods will face a tariff entering America, the US Commerce secretary Howard Lutnick has said. 'No tariffs there. They pay tariffs here,' Mr Lutnick said, without specifying the tariff levels the countries had agreed to. It follows a social media post in which Donald Trump said he had made a 'great deal, for everybody' with Indonesia, without elaborating on details. There is little chance of Canada securing a zero-tariff deal with the Trump administration, the Canadian prime minister has said. Mark Carney told reporters: 'There is not much evidence at this moment of agreements, arrangements, or negotiations with the Americans for any country, any jurisdiction, to have a tariff-free deal.' He said: 'We need to recognise that the commercial landscape globally has changed. 'We will continue to focus on what we can most control, which is building a strong Canadian economy.' US consumer spending will soften in the second half of the year, Citigroup's chief executive Mark Mason has said. 'Consumer health remains very strong,' he told reporters. 'We do anticipate further consumer (spending) cooling in the second half as ... tariff effects play through.' However, businesses had acquired more 'comfort with the uncertainty' compared to recent months. 'The general sentiment has improved a bit if you look at things like the prospect of a recession, that has fallen significantly from what it was earlier in the second quarter.' A 4.4pc surge in Nvidia shares is helping to counterbalance falls in US stocks after rising inflation hurt hopes for lower interest rates. The main indexes are staying close to their records thanks to the chip giant, which is the market's most influential stock. The S&P 500 is flat, while the Dow Jones Industrial Average is down 0.6pc. However, the Nasdaq is up 0.7pc and on track for a record close. Stocks were feeling pressure from a report showing inflation accelerated to 2.7pc last month in the United States from 2.4pc in May. Economists pointed to increases in prices for clothes, toys and other things that tend to get imported from other countries. Their prices could be rising because of tariffs that Donald Trump has imposed on countries worldwide in hopes of getting them to open their markets further to US products. 'Inflation has begun to show the first signs of tariff pass-through,' according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. Donald Trump has announced a trade deal with Indonesia, the latest pact in a bid to cement better terms with trading partners and reduce a massive trade deficit. 'Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!' Mr Trump said in a post on Truth Social. Indonesia's total trade with the US - totalling just under $40bn in 2024 - does not rank in the top 15. However, it has been growing. US exports to Indonesia rose 3.7pc last year, while imports from there were up 4.8pc, leaving the US with a goods trade deficit of nearly $18bn. The top US import categories from Indonesia last year were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen prawns. Susiwijono Moegiarso, an official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters: 'We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon.' Trump had threatened the south-east Asian country with a 32pc tariff rate from Aug 1 in a letter sent to its president last week. Mr Trump sent similar letters to roughly two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20pc up to 50pc, as well as a 50pc tariff on copper. Claudia Sheinbaum, the Mexican president, has said that Mexico will announce 'other measures' if an agreement with the Trump administration over new tariffs is not reached by the Aug 1. She said: 'We hope to reach an agreement ... if an agreement is not reached on Aug 1, we will be informing of other actions... 'We think we can reach a deal. But we have to prepare for every scenario ... We have to have alternatives.' In 1994, the country became part of a free trade area - known as Nafta - with the US and Canada. Donald Trump renegotiated the deal during his first term in office, creating the US-Mexico-Canada Agreement. But Mr Trump has since soured on his deal, announcing sweeping tariffs on Mexico and Canada in February. At the time he said: 'I look at some of these agreements, I'd read them at night, and I'd say, 'Who would ever sign a thing like this?'' On Saturday, the US president threatened to impose a 30pc tariff on imports from Mexico starting on Aug 1, claiming its southern neighbour had not done enough to stop drug cartels. Then, on Monday, the Trump administration said it will begin charging a duty of about 17pc on imports of fresh tomatoes from Mexico. Donald Trump's trade war is already pushing up inflation, leading Democratic senator Elizabeth Warren has said. 'For those saying we have not seen the impact of Trump's tariff wars, look at today's data. 'Americans continue to struggle with the costs of groceries and rent - and now prices of food and appliances are rising. 'Families were already getting crushed, and the president's making it worse.' Eric Winograd, chief economist at asset management firm AllianceBernstein, said: 'You are starting to see scattered bits of the tariff inflation regime filter in.' He added that the cost of long-lasting goods rose last month, compared with a year ago, for the first time in about three years. The economist also noted that housing costs, one of the biggest drivers of inflation since the pandemic, has continued to cool, which is holding down broader inflation. The cost of rent rose 3.8pc in June compared with a year ago, the smallest yearly increase since late 2021. 'Were it not for the tariff uncertainty, the Fed would already be cutting rates,' Mr Winograd said. 'The question is whether there is more to come, and the Fed clearly thinks there is.' Tomorrow's release of UK inflation data is expected to support the case for interest rate cuts, Barclays Private Bank has said. Julien Lafargue, chief market strategist, said: 'The market expects UK inflation to have stayed relatively stable in June at 3.4pc year-on-year. 'This would reflect a small uptick in food prices offset by a deceleration in services inflation and still declining energy costs. 'Given the weaker-than-expected GDP print in May, it would require a meaningful upside surprise in UK inflation for the Bank of England not to lower interest rates in August.' According to Bloomberg data, traders are currently fulling pricing in two quarter of a percentage cuts by the end of the year. They are almost fully pricing in one on Aug 7. Global trade in goods grew more than forecast at the start of the year, according to the World Trade Organisation, as companies raced to ship goods to the US ahead of new tariffs. The volume of goods trade rose by 5.3pc in the first quarter, compared to a year earlier. The WTO said this was due to surge of imports in North America ahead of expected higher tariffs in the United States. 'Merchandise trade volume growth in the first quarter was stronger than the WTO's most recent forecast, but WTO economists expect the pace of expansion to slow later in the year as fully stocked inventories and higher tariffs weigh on import demand,' a WTO report said. Banks will push Britain's savers to invest in the stock market under plans drawn up by Rachel Reeves. Savers with money piling up in low-interest accounts will be offered investment opportunities by their banks in a bid to funnel funds into British businesses, the Treasury has announced. The Chancellor hopes the campaign to encourage share ownership will boost the economy while generating higher returns for families. The Treasury claims that millions of households could get a £9,000 boost if they funnel a portion of their cash savings into the stock market. Donald Trump said the Federal Reserve should bring down interest rates 'now' after the latest US inflation figures. Wall Street stocks and US Treasury bonds have rallied even though the consumer prices index was slightly higher than analysts expected at 2.7pc in June. JP Morgan Chase boss Jamie Dimon warned there remain 'significant risks' to the US economy from tariffs and trade uncertainty. The chief executive of the Wall Street giant said America 'remained resilient' as the bank reported profits of $15bn, down 17pc from the same time a year earlier when results were boosted by a one-off item. Mr Dimon, who has played an advisory role to the US president, described tax cut extensions in Donald Trump's One, Big Beautiful Bill as 'positive' for the economic outlook, along with 'potential deregulation'. JP Morgan's revenues were $44.9bn, down 11pc from a year ago. He said: 'However, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices. 'As always, we hope for the best but prepare the firm for a wide range of scenarios.' Nvidia jumped to a new record high after its boss said the semiconductor giant had gained approval from the Trump administration to sell its AI chips to China. The chip maker surged by 4.2pc to nearly $171, taking its market capitalisation to nearly $4.2 trillion, after chief executive Jensen Huang said it would restart sales of its advanced H20 devices to the world's second largest economy. Fellow chip manufacturer AMD rose 6.3pc. The latest share surge means Nvidia is now worth more than $1 trillion more than Apple. The main US stock indexes rose at the opening bell even as inflation came in higher than expected. The Nasdaq Composite jumped 0.8pc to 20,806.07 after the consumer prices index rose 2.7pc in June, just above analyst estimates of 2.6pc. The S&P 500 gained 0.5pc to 6,300.00 as economists said that so far there had been limited signs of tariffs causing price increases. The Dow Jones Industrial Average was little changed at 44,451.86. The rise in US inflation last month 'revealed early signs of tariff-led price increases,' according to economists. Atakan Bakiskan of Berenberg said the US Federal Reserve would be concerned after the 0.3pc increase in core goods prices excluding used cars, which was the highest monthly increase since March 2023. He said: 'If July and August inflation prints show further tariff effects and push inflation close to 3pc, a stable labour market will likely seal the deal for no Fed cut in September. 'July is almost certainly off the table due to ongoing economic uncertainty and the strong June nonfarm payroll report. Sticky inflation, accommodative financial conditions and a labour market with strong immunity to economic shocks support our long-held view of no Fed rate cuts in 2025.' Bradley Saunders of Capital Economics said the signs of tariff-induced price hikes were 'still limited'. He warned: 'We still anticipate more marked price increases later this year, as firms work through pre-tariff inventory stockpiles and finally have to admit that tariffs are here to stay. 'If President Trump follows through on his threats to boost tariffs further from August 1st, the upward pressure on prices will obviously be even greater.' Donald Trump said he would meet Sir Keir Starmer in Aberdeen later this month, which he described as the 'oil capital of Europe'. The US president is visiting Scotland in a personal capacity but will meet with the Prime Minister on the trip. He told the BBC: 'We're going to have a meeting with... a state meeting with the prime minister, and that's gonna be up in Aberdeen, which is the oil capital of Europe, they should bring it back too. 'They have so much oil there. They should get rid of the windmills and bring back the oil. 'Cause the windmills are really detrimental to the beauty of Scotland and every other place they go up.' Mr Trump, whose mother was Scottish, will also meet with First Minister John Swinney. The cost of government borrowing declined in the wake of US inflation figures which were only marginally higher than analysts had expected. There had been concerns that stronger than expected US inflation data would signal that Donald Trump's tariff policies were beginning to hit the world economy. However, US Treasury bonds rallied after the consumer prices index was only slightly above forecasts at 2.7pc in June. Traders to increased bets on interest-rate cuts by the Federal Reserve from 60pc to 63pc. Longer-term bonds led the gains with yields on 10-year and 30-year bonds falling more than two basis points. The Federal Reserve is likely to cut interest rates in September, fund managers have said, after US inflation rose only slightly more than expected. There had been concerns that higher than expected inflation would signal Donald Trump's tariffs were hurting the US economy. While the US president imposed a 10pc tariff on almost all trading partners in April and separately slapped steeper duties on imports of steel, aluminium and cars, US officials have pushed back against warnings that these could spark price increases. US treasury secretary Scott Bessent has labelled such expectations 'tariff derangement syndrome.' Neil Birrell, chief investment officer at Premier Miton, said: 'There have been a lot of hopes pinned on US CPI coming in lower than expected. 'June's data was much as expected, but core inflation undershot, just, for the fifth month on the trot. 'Obviously, the Fed will be looking at this, but they will want to see the PCE behaving itself before moving policy. However, there is no doubt inflation is OK for now and a September cut in rates is likely.' US stock indexes extended gains in premarket trading as US inflation came in only slightly above estimates despite Donald Trump's tariff-induced price pressures. A Labor Department report showed 2.7pc in June, compared to analyst estimates of 2.6pc. The core figure, which excludes volatile food and energy components, came in at 2.9pc as had been expected. In premarket trading, the Dow Jones Industrial Average was flat, the S&P 500 was up 28.5 points, or 0.5pc, and Nasdaq 100 rose 160.25 points, or 0.7pc. US consumer prices picked up in June in what analysts said could be the start of a long-anticipated tariff-induced increase in inflation. The consumer prices index (CPI) increased by 2.7pc in the 12 months to June, according to the Labor Department's Bureau of Labor Statistics. It was faster than 2.4pc in May and the 2.6pc predicted by analysts. Economists had said inflation has been slow to respond to the sweeping import duties announced by Donald Trump in April because businesses were still selling stock accumulated before the tariffs came into effect. Mr Trump last week announced higher tariffs would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. Excluding the volatile food and energy components, core CPI rose 2.9pc in June, after rising 2.8pc for three straight months. US inflation rose by more than expected in a blow for Donald Trump as he pushes for the Federal Reserve to lower interest rates. The consumer prices index increased by 2.7pc in June, compared to a 2.4pc gain in May. Analysts had forecast a jump to 2.6pc. Donald Trump has started a 'formal process' to replace the chairman of the Federal Reserve, the US Treasury Secretary said. Scott Bessent said potential successors to Jerome Powell were already being identified. Speaking on Tuesday, Mr Bessent said: 'Look, there's a formal process that's already starting... There are a lot of great candidates, and we'll see how rapidly it progresses.' He said it was 'President Trump's decision, and it will move at his speed'. It comes amid mounting speculation that the US president is planning to undermine Mr Powell by naming his successor early. Mr Powell's term as the Fed chairman is due to end next May. Successors are typically named three to four months in advance to allow for a smooth transition. However, earlier this week, the US president launched a fresh attack on Mr Powell, calling him a 'stupid guy' and a 'knucklehead'. Donald Trump has repeatedly demanded the Fed lower interest rates to 1pc or less, arguing that it is burdening the American government with high borrowing costs by keeping rates unchanged at 4.5pc since December. On Monday, the US president said: 'We have a bad Fed chairman, really bad'. He has said he is looking forward to 'getting somebody into the Fed who is going to be able to lower the rates'. On Tuesday, Mr Bessent said it would be confusing for Mr Powell to stay on the central bank's board when his term as chairman ends, saying: 'Traditionally, the Fed chair also steps down as a governor, and there's been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination. 'And I can tell you, I think it'd be very confusing for the market for a former Fed chair to stay on.' The dollar was down marginally against the pound on Tuesday, falling 0.06pc. Robert Walters has cut further jobs as it revealed another drop in income in the face of increased economic uncertainty globally. Shares in the London-listed recruitment firm dropped 3.4pc as bosses cautioned that they do not expect to see a 'material improvement in hiring markets in the near term'. Robert Walters said it cut its headcount by a further 2pc, or 77 roles, to 3,125 employees by the end of June due to continued weakness. The company has axed 500 jobs across its business over the past year. It came as Robert Walters reported that group net fee income fell by 13pc in the latest quarter, as it highlighted 'more pronounced' macroeconomic uncertainty in the period after the US launched new tariff policies. This included a particularly sharp fall in mainland Europe, where income fell 22pc to £21.5m. Traders are betting on a slump in the pound amid increasing speculation that the Bank of England will cut interest rates next month. Sterling has endured its longest losing streak against the dollar since July 2023 as Donald Trump's tariff campaign strengthens the US currency. The pound was last up 0.2pc to $1.346 after a seven-day run of losses which have helped propel the FTSE 100 to a record high above 9,000 for the first time. Options traders in the pound – who trade contracts giving them the right to buy or sell sterling at a set price at a future date – expect further falls. So-called one-month risk reversals – the difference between contracts backing the pound and those against it – have turned the most negative since February. The one-month contracts cover the next Bank of England and Federal Reserve interest rate decisions. Bank governor Andrew Bailey has signalled borrowing costs could come down if Britain's jobs market shows signs of slowing. The next employment data is due on Thursday. Money markets indicate there is a 93pc chance the Bank of England will cut interest rates in August to 4pc, while the Fed is widely expected to leave borrowing costs unchanged. It comes ahead of Mr Bailey's Mansion House speech later today and US inflation data later today which could change the outlook for interest rates. ING strategist Chris Turner said: 'Expect Governor Bailey to reiterate a position – similar to the Fed – that faster easing is possible if the labour market deteriorates.' The value of the pound edged higher against the dollar in the run-up to US inflation figures and the Chancellor's Mansion House speech. Sterling was up 0.2pc to $1.346 ahead of the consumer prices index for America, which could change the outlook for interest rates. Meanwhile, Rachel Reeves will pave the way for a new era of risky lending as part of her Mansion House announcement. The Chancellor will hail the biggest mortgage shake-up in a decade to boost homeownership and cut red tape. She also unveiled plans to reform the bank ring-fencing regime and slash red tape in a bid to reintroduce 'informed risk-taking' into the UK's financial system. Ms Reeves said her 'Leeds reforms,' which she has set out in the West Yorkshire city today, would be 'the biggest reforms to financial services for much more than a decade'. She said the 'much needed reform' is intended to 'really invigorate our financial services sector, but with the core purpose of therefore reinvigorating the whole economy'. The ring-fencing regime, which was brought in after the 2008 financial crisis to separate banks' retail and investment banking activities, will be reformed, the Treasury said. Bond markets are 'due a hit' this summer, analysts have warned, after the cost of government borrowing in Japan hit the highest level since 2008. Japan's 10-year government bond yield touched its highest since the global financial crisis as rival parties in its upcoming election promised cash handouts, fuelling concerns about fiscal spending. Bond yields – a benchmark for the cost of government borrowing – have risen around the world so far this year amid concerns about the health of public finances as Donald Trump imposes tariffs on trading partners. Neil Wilson, a strategist at Saxo UK, said: 'I suspect that long bonds are due a hit and this will lead to heightened volatility as the second half progresses. 'But ultimately as Western governments continue spending like drunken sailors, real assets like stocks and commodities should prosper.' Overall, the debt market was calm today in the lead up to US inflation figures later. The yield on 10-year UK gilts fell nearly three basis points to 4.57pc. Mr Wilson added: 'Markets are not really reflecting the scale of the tariff threat – the assumption is 30pc on the EU and potentially 200pc on pharmaceuticals will be scaled down substantially. 'The EU has finalised a second list of countermeasures to target $72bn of US goods including Boeing and bourbon. Trump has threatened 100pc tariffs on countries that buy Russian oil – peace through tariff strength? We live in Trump's world for sure.' The UK stock market is enjoying a 'momentous year' as it proves its reslience in the face of Donald Trump's tariff turmoil, analysts said. The FTSE 100 surpassed 9,000 points for the first time today, just two years after first climbing above the 8,000 mark. By contrast, it took eight years for the index to climb from 7,000 to 8,000. The FTSE 100 has risen 8.9pc so far this year, compared to gains of 6.8pc for the S&P 500 and 7.1pc for the Nasdaq Composite in New York. Dan Coatsworth, an analyst at AJ Bell, said: 'Outperforming the main US indices since January is a major achievement for the UK and the FTSE 100 going through 9,000 builds on this success. 'It should help to convince overseas investors that the UK market isn't dull and boring. 'The UK stock market is full of interesting companies that are leaders in their respective fields. While the UK market lacks the kind of technology opportunities found in the US, it excels in other areas and investors are spoiled for choice in sectors such as financials, natural resources, healthcare and industrials.' US aircraft maker Boeing, machinery, cars, and bourbon be hit with EU tariffs if trade talks between Brussels and Washington fail to yield an agreement. The €72bn (£62.6bn) retaliation package is the second put forward by the European Commission. It is designed to respond to US tariffs on cars and car parts and a baseline tariff, currently at 10pc. Donald Trump is threatening a baseline tariff on imports from the EU of 30pc from August 1, a level European officials say is unacceptable. The list, sent to EU member states, also includes electrical and precision equipment as well as agriculture and food products – a range of fruits and vegetables, along with wine, beer and spirits – worth a total of €6.4bn. A first package on €21bn of US goods was approved in April but then immediately suspended to allow room for negotiations. That suspension has been extended to August 6. The FTSE 100's traditional businesses are proving essential as the world prepares for the disruption caused by AI, analysts have said. The index has given up its gains to drop back below 9,000 after the surge to a new record high in early trading. Darius McDermott, managing director at broker Chelsea Financial Services, said long-term investors in the index have been vindicated. He said: 'Those who sounded the death knell for the index, dismissing it as a 'Jurassic Park' of outdated stocks, have underestimated some of the most important themes set to define the next market cycle. 'We've left behind the era of zero interest rates and 'growth at any price'. In today's world of inflation, capital constraints, and geopolitical disruption, markets are once again rewarding value, cashflows and resilience. 'At the same time, the capital-light business models that dominated the last decade now face disruption themselves, as artificial intelligence and the democratisation of the internet threaten to erode traditional business models. 'In contrast, many of the long-neglected, capital-intensive sectors at the heart of the FTSE – banks, defence, building materials – are proving not only resilient, but essential. These 'un-disruptables' are back in favour and look increasingly well-positioned to lead the next cycle. 'The index might lack the glamour of Silicon Valley – but that may be exactly what gives it the staying power to outperform from here.' China vowed to strengthen its support for Russia after Donald Trump threatened to impose tariffs on Moscow's trading partners. Xi Jinping, the Chinese president, said the two countries should 'strengthen mutual support on multilateral forums' after meeting Russia's foreign minister in Beijing, The US president on Monday threatened to hit Russia's main trading partners, including China, with 100 per cent tariffs if Putin does not sign a peace deal in 50 days. Mr Xi said following his meeting with Sergei Lavrov on Tuesday that trust between China and Russia had 'deepened', and the two states were 'setting a model for a new type of international relations'. The FTSE 100 has benefitted from an 'improving international outlook' after surpassing 9,000 for the first time, fund managers have said. Companies on the UK's flagship index generate around 60pc of their revenues overseas, meaning improvements in international conditions boost the market. It comes as China said its economy grew by more than expected last month, while Donald Trump raised hopes he could reach a trade deal with the EU and avoid a 30pc tariff due to come into effect on August 1. Jonathan Unwin, UK head of portfolio management at Mirabaud Wealth Management, said: 'The UK market has acted as something of a safe haven amid global trade uncertainty in recent months, thanks in part to the UK quickly striking a trade deal with the US. 'Expectations of UK rate cuts are further supporting rate-sensitive stocks, while the currency drag from dollar weakness has largely played out at this stage. 'Foreign investors are gradually starting to return to UK markets, though domestic flows remain an area of weakness. 'While political and fiscal uncertainty persists, private sector activity picked up in June, and there remain many quality businesses that we expect to show earnings strength.' The FTSE 100 climbed to a record high above 9,000 for the first time as China grew by more than expected. The index, which has a large number of companies impacted by international economies, climbed as much as 0.2pc to 9,016.98. Chris Beauchamp, chief market analyst at IG, said: 'The global nature of the market rally means that even the FTSE 100 has been able to lay claim to a new milestone, moving above 9000 for the first time. 'Its percentage gain over the last three months actually pips that of the Dow, but it continues to lag far behind the likes of the Nasdaq 100, whose alluring growth stocks are firmly back in vogue.' Government borrowing costs edged lower as investors await US inflation data later. The US figures will show how tariffs affected inflation in June after data from previous months came in lower than economists had forecast. German 10-year yield, the eurozone's benchmark for government borrowing costs, dropped two basis points (bps) to 2.71pc. The 30-year yield was down three bps at 3.22pc, after reaching 3.26pc on Monday, its highest since October 2023. The 10-year UK gilt yield was down one bp to 4.58pc, while 30-year gilt yields fell two bps to 5.41pc. European shares nudged higher after Donald Trump signalled a readiness to negotiate tariffs with the EU. The pan-European Stoxx 600 index gained 0.1pc to 547.71, while the Cac 40 in Paris gained 0.1pc to 7,814.29 and the Dax in Frankfurt rose 0.2pc to 24,199.41. On Monday, the European Union accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Mr Trump, meanwhile, said he was open to talks with the EU and other trading partners, adding that EU officials would be coming to the US for trade negotiations. The US president had escalated trade tensions over the weekend, threatening a 30pc tariff on most EU imports from August 1. In the market, motoring stocks rose 0.9pc, technology stocks advanced 0.8pc, while telecoms shares fell 0.8pc. China stocks were subdued as the world's second largest economy slowed in the second quarter despite beating market forecasts. China's blue-chip CSI300 Index was flat at 4,019.06 while the Shanghai Composite Index lost 0.4pc to 3,505.00. Meanwhile, Hong Kong's benchmark Hang Seng was up 1.1pc to 24,476.81, and Hang Seng Tech Index rose 1.9pc to 5,383.66. Analysts said the US-China trade truce and strong exports helped the world's second largest economy avoid a sharp slowdown. Kai Wang of Morningstar said US tariffs have not affected China's overall economy as feared thanks to resilient export data. US inflation is forecast to have risen last month as a result of Donald Trump's tariff campaign. Official figures are expected to show later today that the consumer prices index rose from 2.4pc in May to 2.6pc in June amid a rebound in fuel prices and higher costs for some tariff-sensitive goods. It would likely deal a blow to the President's efforts to convince the US Federal Reserve to lower interest rates. Sarah House, a senior economist at Wells Fargo, said: 'The June CPI report is likely to show inflation beginning to strengthen again, albeit not enough to alarm Fed officials at this juncture. 'While inventory front-running has mitigated the need to raise goods prices, it will become increasingly difficult for businesses to absorb higher import duties as pre-tariff stockpiles dwindle.' The FTSE 100 edged higher after data from China showed the world's largest economy had grown by more than expected despite Donald Trump's tariffs. The internationally-focused stock index gained 0.1pc to 9,006.02 while the mid-cap FTSE 250 was flat at 21,730.89. Nvidia said it plans to resume sales of its high-powered artificial intelligence chips to China, days after its chief executive met with Donald Trump. The world's first and only $4 trillion company said it is filing applications with the US government to resume sales to China of the H20 graphics processing unit (GPU), and expects to get the licences soon. Nvidia's AI chips have been a key focus of US export controls designed to keep the most advanced chips out of Chinese hands amid national security concerns. The US-listed company said the restrictions would cut its revenue by $15bn (£11.2bn). The US government has expressed concern that the Chinese military could use AI chips to develop weapons. Nvidia chief executive Jensen Huang is scheduled to hold a media briefing in Beijing on Wednesday when he attends a supply chain expo, his second visit to China after a trip in April where he stressed the importance of the Chinese market. He told Chinese state broadcaster CCTV: 'The Chinese market is massive, dynamic, and highly innovative, and it's also home to many AI researchers. Therefore, it is indeed crucial for American companies to establish roots in the Chinese market.' Thanks for joining me. China's economy grew at a faster pace than expected in the second quarter despite the turmoil triggered by Donald Trump's tariff campaign. The world's second largest economy grew by 5.2pc from April to June in a slowdown from the 5.4pc expansion in the first three months of the year. However, growth in exports, which were front-loaded to combat US tariffs, meant it performed better than forecasts of 5.1pc. China has an annual growth target of 5pc, which analysts have warned will be difficult to achieve in the second half of the year as exports lose momentum, prices continue to fall, and consumer confidence remains low. It has agreed a partial trade truce with Washington after the Trump administration proposed 145pc tariffs on Beijing in April. Zhiwei Zhang, chief economist at Pinpoint Asset Management, said: 'China achieved growth above the official target of 5pc in the second quarter partly because of front loading of exports. 'The above target growth in the first quarter and second quarter gives the government room to tolerate some slowdown in the second half of the year.' However, other economists said China's growth 'is weaker than official figures suggest'. Zichun Huang of Capital Economics said: Official GDP data came in a touch weaker in the second quarter. But the figures still overstate the strength of growth by around 1.5 percentage points. 'The June activity data suggest that the quarter ended on a weak note. And with exports set to slow and the tailwind from fiscal support on course to fade, growth is likely to slow further during the second half of this year.' She added: 'All told, we expect the economy to expand just 3.5pc this year (as measured by our China Activity Proxy). 'But political pressure to meet annual growth targets, even if only on paper, means that published GDP growth will be higher.' Here is what you need to know. Reeves pledges mortgage shake-up despite risk of surge in repossessions | Chancellor brushes aside City watchdog's warnings in bid to boost homeownership Tuscan winemakers consider diverting exports after Trump tariff threat | Italian vineyards to explore new markets as US president ramps up trade war Bitcoin hits record high as investors pull away from government debt | Surge comes as investors ditch long-term German and French government bonds The sexual harassment epidemic tainting British business | Despite efforts to crack down on sexism, women are still being targeted by predatory men in the workplace Matthew Lynn: European energy rationing is a dire warning for net zero Britain | It is not the responsibility of businesses to make up for the pitfalls of the green transition Asian shares climbed and the dollar held gains as trade talks remained in the spotlight ahead of US inflation figures and bank earnings. Oil prices edged lower after Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid 100pc tariffs on its main trading partners. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30pc duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US this Friday. Market reaction to the tariff uncertainty has been rather benign. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8pc, while Japan's Nikkei added 0.5pc. On Wall Street, the Dow Jones Industrial Average rose 0.2pc, to 44,459.65, the S&P 500 rose 0.1pc, to 6,268.56, and the Nasdaq rose 0.3pc, to 20,640.33. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.439pc from 4.417pc late on Sunday. Broaden your horizons with award-winning British journalism. 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Forbes
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- Forbes
Apple's Formula 1 Bid Plays Long-Game For TV Sports Rights
ABU DHABI, UNITED ARAB EMIRATES - DECEMBER 08: Tim Cook, CEO of Apple, walks on the grid prior to ... More the F1 Grand Prix of Abu Dhabi at Yas Marina Circuit on December 08, 2024 in Abu Dhabi, United Arab Emirates. (Photo by) Apple TV+ will likely win Formula 1's U.S. broadcast rights, according to a report from The Athletic. That fact isn't so surprising given the backdrop of Apple Original Films' F1: The Movie racing to theaters this summer. But the rumored (per The Athletic) $120-150 million per year bid is still a significant step up from ESPN's current $75-90 million rate, and indicative of what Apple's willing to pay in its slow-but-steady quest to reshape sports rights. Apple's Sports Approach To-date, Apple hasn't been as splashy as streaming cohorts like Amazon Prime Video and Netflix when it comes to sports. But its investments have still generated attention via their perceived niche focus. Right now, Apple TV+ airs all Major League Soccer matches as part of a $2.5 billion, 10-year deal. The service also airs Friday Night Baseball for $85 million per. Both deals could be evaluated as potential overpays relative to what legacy media companies were willing to spend on those rights. But that's an understood part of doing business anytime you're the perceived 'upstart' in a space. You're paying more to become a proven commodity. Where Apple's zigged a bit in that regard while Amazon Prime and Netflix has zagged, though, is in regard to what the service is paying those larger sums for. There's little data out there around Apple TV+ subscribers or audience, but it's fair to guess that Friday Night Baseball's audience is no more than half of Fox's Saturday night MLB slate (an average of 2.14 million viewers this season). In December, The Guardian reported that the 2024 MLS Cup Final – between the Los Angeles Galaxy and New York Red Bulls – had just 65,000 viewers on Apple TV+. Assuming Formula 1 would see a dropoff on Apple TV+ as well from its 1.3 million-viewer average on ESPN this season, it's clear that the service is aiming to hone its sports chops with niche events in a similar fashion to its more niche scripted programming approach. And while the returns may be questionable for Apple today from an audience perspective, the increased media revenues can help fuel growth for these sports that makes the investments a net win in the end. FORT LAUDERDALE, FLORIDA - FEBRUARY 22: A detailed view of the Apple TV and MLS logo on an Inter ... More Miami CF jersey during the MLS match between Inter Miami CF and New York City FC at Chase Stadium on February 22, 2025 in Fort Lauderdale, Florida. (Photo by) Growing Investment Value Over Time For instance, by outbidding any other suitors for MLS, Apple injected significant value into the league and its clubs, helped MLS acquire more talent and ultimately, improved the quality of the product. In February 2025, Forbes valued three different MLS clubs at over $1 billion (and 25 at $500 million or more), and that number is likely to climb. By the end of the original 10-year deal, MLS rights may very well be worth at least what Apple paid for them – especially as sports increasingly dominate live TV. Formula 1 is in a different boat globally, as MLB is both globally and domestically, but both can still strategically leverage the extra dollars from Apple TV+. For Formula 1, it comes in the form of growing and eventizing its existing U.S. investments (including three races in the county now). For MLB, the Apple TV+ revenues help offset some of the league's ongoing regional TV struggles. The proof's already there that the MLB investment, in particular, is already worth it for both sides. Recent reports from Sports Business Journal indicate that Apple is among the leading suitors to land some of the TV package currently with ESPN. If the Friday Night Baseball deal wasn't paying dividends for baseball and/or Apple was truly bothered by the 'low' audience relative to major live sports, they wouldn't be interested in allocating even more money there. Next Up For Apple The end-goal for Apple, then, becomes how to eventually turn all of this sports interest into more subscribers and more streaming-related revenues. Now, Apple doesn't necessarily 'need' its TV+ venture to be profitable given the size and success of the company overall. The most cynical view of Apple TV+ is that it's a nice-to-have for Apple; somewhere for the company to spend money that helps it sell some devices, get invites to entertainment and sports industry conversations, and just add another potential revenue stream. But if it perfects its sports broadcasts as a way to draw in key audiences, leverages those into an increased footprint for scripted shows, and really turns on the potential power of its targeted advertising? There's a potentially exciting long game here for the streaming service that truly delivers on (and profits from) the idea that it's just become 'expensive NBC.' Whether the sports and entertainment space are ready for that future is a different story. The vision is starting to come together, though, despite the immediate doubts on Apple's cadre of sports versus the bigger live TV picture.