Sectors

• Samsung reported a 19-fold surge in quarterly profit driven by booming AI demand, though the result only exceeded analyst estimates by 6%. • The modest beat triggered a sell-off, with Samsung shares sliding up to 8.7% in Seoul and dragging down peers like SK Hynix and Kioxia Holdings. • The slump caused an MSCI gauge of Asian technology stocks to drop as much as 2.9%, prompting investors to rotate into financial and communications sectors.

• Chinese and Hong Kong stocks rose during midday trading, with the Hang Seng index climbing 0.7% and the blue-chip CSI300 Index gaining 0.3%. • The Shanghai Composite Index also saw a slight increase, edging 0.1% higher as market sentiment improved. • The rally is driven by broadening AI enthusiasm, which has expanded beyond technology into the farming and biotechnology sectors.

• The U.S. tech and finance sectors are experiencing an average loss of 28,000 jobs monthly as artificial intelligence begins to impact employment. • Data from the California Policy Lab indicates that finance, insurance, information, and professional services have the highest concentration of unemployment claims among workers in AI-exposed roles. • This trend is significant as the Bureau of Labor Statistics (BLS) projects that office occupations will face some of the largest employment declines over the next decade due to AI integration.

• BofA Securities has identified top U.S. high-grade stocks across key sectors to watch for potential growth. • The firm highlights that strategic acquisitions, expanding infrastructure assets, and predictable cash flows are the primary drivers for earnings and shareholder returns. • These recommendations come amid a broader economic context where the U.S. economy added 57,000 jobs in June.

• The European Union has opened a call for applications for the AI Startup Award to honor the most transformative AI startups and scaleups across Europe. • Eligible companies must be developing innovative AI solutions in strategic sectors, including healthcare, robotics, manufacturing, climate, energy, defense, and the creative media industries. • This initiative aims to recognize and elevate European technological leadership in critical industries by highlighting high-impact AI implementations.

• President Donald Trump vowed to hit Iran "very hard tonight" following two days of intensified military strikes between the U.S. and Iran. • Trump further threatened that the United States would eventually take over Iran's critical oil and gas sectors to cripple its economy. • The escalation significantly increases the risk of a full-scale war in the Middle East, destabilizing an already volatile region.

Policy brought forward as Middle East war highlights fragility of global supply chainsBritish suppliers will be prioritised for public contracts in shipbuilding, steel, AI and energy infrastructure under new guidance marking them out as sectors vital to national security.Departments will also have to either use British steel or justify sourcing it from overseas, under the rules announced by the government. Continue reading...