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DeepSeek Postpones New AI Model After Huawei Chip Hurdles
Chinese AI startup DeepSeek has hit the brakes on its next big release. The company was gearing up to debut its new large language model, R2, but ran into trouble training it on Huawei chips, the Financial Times reported. It's the latest setback tied to U.S. export controls that keep Nvidia's (NASDAQ:NVDA) most powerful GPUs out of Chinese hands a gap that's proving hard to fill. Sources told The Information in June that the lack of top-tier Nvidia hardware was already weighing on R2's progress, and CEO Liang Wenfeng isn't happy with its current performance. Warning! GuruFocus has detected 5 Warning Signs with NVDA. For now, there's no release date. DeepSeek's most recent upgrade, R1-0528, is still making waves, with the company claiming it performs close to OpenAI's o3 and Google's Gemini 2.5 Pro. But the longer R2 lingers in development, the more pressure mounts in the high-stakes race to push AI models to the cutting edge. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Stocks Fall Back on Hot PPI Report
The S&P 500 Index ($SPX) (SPY) is down -0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.11%. September E-mini S&P futures (ESU25) are down -0.39%, and September E-mini Nasdaq futures (NQU25) are down -0.30%. Stocks are seeing some downward pressure today after today's strong US PPI report and today's +3 bp rise in the 10-year T-note yield. In addition, San Francisco Fed President Mary Daly threw cold water on the idea of a -50 bp rate cut at the September FOMC meeting. More News from Barchart Why This Cannabis Penny Stock Could Be Wall Street's Next Meme Trade Breakout Apple Stock Is Gaining Momentum, Is AAPL Stock a Buy? Peter Thiel-Backed Bullish Is About to IPO. Should You Buy BLSH Stock? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Today's PPI report was much stronger than market expectations. The PPI report suggested that the markets might have been overly optimistic about Tuesday's CPI report and that companies are passing through tariffs at the wholesale level at a higher pace than earlier thought. The July US final-demand PPI report of +0.9% m/m and +3.3% y/y was substantially stronger than market expectations of +0.2% m/m and +2.5% y/y. The July US core final-demand PPI report of +0.9% m/m and +3.7% y/y was substantially stronger than market expectations of +0.2% m/m and +3.0% y/y. The markets dialed back expectations for Fed easing in the wake of today's disappointing PPI report. The markets are no longer discounting any chance of a -50 bp rate cut at the September meeting and are now assigning a 93% chance of that rate cut. After Treasury Secretary Bessent's dovish comments on Wednesday, the markets temporarily assigned an 11% chance of a -50 bp rate cut at the September meeting. Nevertheless, the current 93% chance of a -25 bp rate cut in September is still substantially more dovish than the 40% chance assigned before the news of the weak July payroll report on August 1 and the in-line CPI report this past Tuesday. US weekly initial unemployment claims fell by -3,000 to 224,000, which was close to expectations for a slight decline to 225,000. US weekly continuing claims fell by -15,000 to 1.953 million, which showed a slightly stronger labor market than expectations of a dip to 1.967 million. San Francisco Fed President Mary Daly told the WSJ that she does not support a -50 bp rate cut at the September meeting, saying that "would send off an urgency signal that I don't feel about the strength of the labor market." Daly said she still supports two rate cuts this year, but that three cuts could be warranted "if we saw more signs that the labor market was more precarious." Treasury Secretary Scott Bessent today tried to backtrack a bit on his statements on Wednesday in which he said interest rates are "too constrictive" and that rates "should probably be 150, 175 basis points lower." He added, "There's a very good chance of a 50 basis point cut. We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September." In an interview with Fox Business today, Mr. Bessent said he was not telling the Fed what to do and that he was not calling for a series of Fed rate cuts with his comments on Wednesday. He said he was merely trying to say that models show the neutral rate is lower, although he didn't specify which models he was referring to. Mr. Bessent said he supports transparency and the call to clean up investment conflicts by members of Congress. In recent tariff news, President Trump early Tuesday extended the tariff truce with China for another 90 days until November. Last Wednesday, Mr. Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, Mr. Trump announced last Wednesday that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. Last Tuesday, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. The market's focus during the remainder of this week is on any tariff-trade news and Friday's Trump-Putin summit. On Friday, July US retail sales are expected to climb +0.6% m/m and retail sales ex-autos are expected to rise +0.3% m/m. Also on Friday, the July industrial production and manufacturing production reports are both expected to remain unchanged m/m. Finally, the University of Michigan's Aug US consumer sentiment index is expected to climb by +0.3 to 62.0. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 93% at the September 16-17 FOMC meeting and at 54% for a second -25 bp rate cut at the following meeting on October 28-29. Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 82% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates. Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.29%. China's Shanghai Composite posted a 3.75-year high but then fell back and closed down -0.46%. Japan's Nikkei Stock 225 closed down -1.45% and fell back from Wednesday's record high. Interest Rates September 10-year T-notes (ZNU25) are down by -6 ticks, and the 10-year T-note yield is up +2.9 bp at 4.262%. T-note prices fell back today on the strong PPI report, which resulted in reduced expectations for Fed rate cuts in the coming months. T-note prices were also undercut after Treasury Secretary Bessent today backtracked a bit on his comments yesterday, calling for aggressive Fed interest rate cuts. In a bearish factor, the 10-year breakeven inflation expectations rate today is up by +1.0 bp at 2.386%. European government bond yields are higher. The 10-year German bund yield is up +2.3 bp at 2.703%. The 10-year UK gilt yield is up +2.9 bp at 4.618%. Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers The Magnificent Seven are all trading higher today, except for Tesla (TSLA), which is down more than -1%. The leader is Amazon (AMZN) with a gain of more than +2%. Chip stocks are generally trading lower today on some give-back after yesterday's gains. ON Semiconductors (ON), Microchip Technology (MCHP), Align Technologies (ALGN), and NXP Semiconductors (NXPI) are all down more than -2% today. Cisco Systems (CSCO) is down more than -1% due to cautious management guidance for the current fiscal year. Deere (DE) is down more than -6% on slightly lower management guidance for full-year net income as lower grain prices and tariff uncertainty are causing some farmers to pull back on equipment purchases. Dow Inc (DOW) is down more than -1% despite a rating hike to neutral from underperform from BofA Global Research due to its view that the stock is oversold. NetEase (NTES) is down more than -2% after a miss on Q2 sales and weaker-than-expected growth in its core gaming segment. CVS Health (CVS) is up nearly +1% on an upgrade from Baird to outperform from neutral due to "growing confidence" in the company's turnaround. Earnings Reports (8/14/2025) Deere & Co (DE), Amcor PLC (AMCR), Tapestry Inc (TPR), Applied Industrial Technologie (AIT), Birkenstock Holding Plc (BIRK), QXO Inc (QXO), Applied Materials Inc (AMAT), Sandisk Corp/DE (SNDK), Globant SA (GLOB), NU Holdings Ltd/Cayman Islands (NU). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
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Trump's Beef with Bank of America's Corporate Governance Goes Beyond His Personal Accounts: Exclusive
By Josh Kosman Bank of America CEO Brian Moynihan may be a marked man in the White House and not just because his bank would not take President Trump's money, sources said. Trump on August 7 signed an executive order mandating banking regulators to investigate whether banks have discriminated against conservatives and certain industries. President Trump is targeting Brian Moynihan The President said August 5 on CNBC's Squawk Box that BofA and JPMorgan would not accept his deposits after his first term in office. But there may be more to the story. Trump sung the same tune Jan. 23 with Moynihan right next to him on a World Economic Forum stage. 'I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America,' the President said. 'I hope you're going to open your banks to conservatives, because what you're doing is wrong.' He was likely referring to when BofA stopped banking private prison company GEO Group, BofA insiders said. Photo by Ye Jinghan on Unsplash 'This is what Trump was pissed about,' a BofA source said. 'Trump needs GEO.' BofA in June 2019 was the last of the big banks to cut off future funding for private prison companies including GEO. 'They did not want to be the last bank standing,' a source with direct knowledge of the situation said. GEO now processes more than one-third of the people ICE detains, 20,000 beds, at 21 facilities, according to GEO. The firm also owns prisons and jails. But back in 2019 there was a big fight within the bank whether to stop doing more business with GEO after one of GEO's other big lenders JPMorgan in March 2019 said it would no longer fund private prisons. A GEO facility according to the company's website Wells Fargo was also pulling back. BofA Vice Chair Anne Finucane argued for staying the course and was very vocal about it, a source said, causing some at the bank to panic, the source said. There were meetings between top bank executives where what to do about lending to private prisons was fiercely debated. Ultimately, BofA's Global Head of ESG Andrew Plepler had the final word and BoA stopped future funding of private prisons, the BofA source said. 'The private sector is attempting to respond to public policy and government needs and demands in the absence of long standing and widely recognized reforms needed in criminal justice and immigration policies,' BofA said in a June 2019 statement to USA Today. 'Lacking further legal and policy clarity, and in recognition of the concerns of our employees and stakeholders in the communities we serve, it is our intention to exit these relationships.' Attorney General Pam Bondi used to work for lobbying firm Ballard Partners. GEO Group Chair George Zoley on June 26, 2019 commented publicly on BofA's decision to no longer extend financing to correctional and rehabilitation services providers. He said he expected there would be no impact on its $900 million revolving line of credit that did not mature until May 17, 2024. 'For over thirty years, we have provided high-quality services to the federal government under both Democrat and Republican administrations. To be clear, The GEO Group has never managed any facilities that house unaccompanied minors, nor have we ever managed border patrol holding facilities,' Zoley said at the time. GEO in 2020 sold shares of its common stock to raise money. ICE arrests a man from Guatemala, according to ICE website President Biden on January 26, 2021 issued an executive order to not renew contracts with for-profit prisons though it made an exception for immigration detention facilities. GEO Group's shares fell to below $6 a share. Under President Trump, with the ban lifted, the price roared to over $36 though it has now fallen to just over $21. Bank of America in Dec. 2023 changed its outright ban on banking private prison companies to a case-by-case assessment. CoreCivic, a GEO rival, now has a BofA deposit account, Semafor reported in June. People in today's Trump White House are likely fully aware of what transpired. Attorney General Pam Bondi was reportedly a GEO lobbyist, and Secretary of Commerce Howard Lutnick's Cantor Fitzgerald during Biden's term helped GEO sell its shares, sources said and public filings show. Omeed Malik Former BofA Exec Omeed Malik was pushed out in 2018 for personal conduct in violation of firm standards before the GEO ban, and he too is close to the White House. Malik in 2018 filed a $100 million claim against BofA with the Financial Industry Regulatory Authority and reportedly settled later that year for more than $10 million. In 2022 he formed 1789 Capital to invest in anti-woke companies adding his very close friend Donald Trump Jr. as a partner. CorpGov does not know if Malik has said anything critical about BofA to The White House. Bank of America and Malik spokespeople declined comment. The White House, GEO Group, Anne Finucane and Andrew Plepler (neither of which is still at BofA) did not return calls. Read more from Josh Kosman at Contact: joshpkosman@ Never Miss our Weekly Highlights Click to follow us on LinkedIn The post Trump's Beef with Bank of America's Corporate Governance Goes Beyond His Personal Accounts: Exclusive appeared first on CorpGov. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
