Core Insights - The article discusses the investment interests of billionaires in quantum computing, specifically highlighting their stakes in two major companies, Alphabet and Amazon, rather than smaller quantum computing firms [1][3]. Group 1: Investment Focus - Billionaires Bill Ackman, Israel Englander, and David Tepper have invested in Alphabet and Amazon, which are recognized as leaders in quantum computing among other sectors [1][3]. - Ackman's Pershing Square Capital Management holds only 12 stocks, including two classes of Alphabet shares and Amazon, while Englander's Millennium Management has a diversified portfolio with 3,928 holdings, also including Alphabet and Amazon [4][5]. - Tepper's Appaloosa hedge fund owns 38 stocks, with Alphabet and Amazon being among the top positions [5]. Group 2: Quantum Computing Developments - Alphabet's Google Quantum AI has achieved "verifiable quantum advantage" with its Willow quantum chip, marking a significant milestone in quantum computing [7]. - Amazon Web Services (AWS) introduced the Ocelot quantum computing chip, which can reduce quantum error correction costs by up to 90%, potentially accelerating the development of practical quantum applications [8]. Group 3: Broader Business Context - Both Alphabet and Amazon are not solely focused on quantum computing; they are also leaders in cloud services and artificial intelligence, with AWS being the top cloud provider and Google Cloud growing rapidly [9]. - Alphabet dominates the search engine market, while Amazon leads in e-commerce, indicating strong core business performance alongside their quantum computing initiatives [10]. - The companies are exploring new markets, such as Alphabet's Waymo in the robotaxi sector and Amazon's upcoming satellite internet service through Project Kuiper, which could further enhance their growth prospects [14].

Core Insights - The Federal Reserve is expected to cut interest rates by a quarter percentage point, bringing the federal funds rate to a range of 3.75% to 4% amid concerns over labor market weakness and ongoing inflation above target levels [3][4]. Group 1: Federal Reserve and Economic Indicators - Fed Chair Jerome Powell's upcoming remarks are anticipated to provide insights into the central bank's future actions following the interest rate decision [2]. - The U.S. government shutdown is affecting the release of key economic data, including inflation metrics and employment statistics, which are crucial for assessing economic health [5][6]. Group 2: Corporate Earnings and AI Focus - The "Magnificent Seven" tech companies, including Microsoft, Apple, and Meta, are set to report quarterly earnings, with a focus on developments in artificial intelligence spending [7][8]. - Microsoft is expected to lead the earnings reports with a significant $40 billion AI data center deal involving chipmaker Nvidia, while Alphabet is close to finalizing a deal with AI startup Anthropic [8]. Group 3: Upcoming Earnings Reports - Key earnings reports this week include major companies such as Exxon Mobil, Visa, UnitedHealth Group, and Caterpillar, which will highlight various industrial sectors [8][11]. - Apple is anticipated to report strong sales for its newly released iPhone 17 model, contributing to its recent stock price surge [8].

Core Insights - The third-quarter earnings season is underway, with significant reports expected from major companies including five of the Magnificent 7 and Berkshire Hathaway [2] - So far, 29% of S&P 500 companies have reported, with 86% exceeding consensus earnings estimates, leading to a blended earnings growth rate of 9.2% year-over-year, surpassing the 7.9% expectation [3][4] - The Magnificent 7, which includes key tech companies, continues to be a focal point for earnings growth, although Tesla's recent earnings fell short of expectations [6][7] Earnings Performance - The S&P 500's earnings growth is primarily driven by positive surprises in the financials, information technology, and industrials sectors [7] - Notable contributors include Capital One Financial and Chubb in financials, Intel in technology, and RTX and GE Aerospace in industrials [8] Sales Growth - Sales growth is currently at 7.0%, exceeding expectations, with consumer discretionary and financials sectors being the main drivers [9] - The nominal GDP growth estimate for Q3 is 4.8%, indicating potential downside risks to sales growth if this estimate holds [9] Inflation and Economic Outlook - Recent consumer inflation data showed a year-over-year increase of 3% for both headline and core CPI, which was better than expected [10] - The Federal Reserve is anticipated to implement a 25 basis point rate cut, with markets also expecting further cuts in December [12][13] Market Dynamics - The ongoing government shutdown is affecting economic data releases, but the overall economy remains resilient, with recession odds for 2025 dropping to 4% [12] - The upcoming earnings reports from the Magnificent 7 are crucial for assessing the health of the AI boom and the broader technology sector [11]

Core Points - The Trump administration's new ballroom construction project has an estimated cost of over $300 million, significantly higher than the initial estimate of $200 million [1] - A list of 37 donors, including major tech companies and administration members, will fund the project through private, tax-deductible donations to the nonprofit Trust for the National Mall [2][3] Corporate Donors - Meta Platforms has pledged at least $600 billion in investments in the U.S. by 2028 and frequently engages with federal digital policy initiatives [4] - Apple plans to invest $100 billion in domestic manufacturing, aligning with the administration's goals [5] - Amazon has major federal contracts and has developed a relationship with the administration through lobbying efforts [6] - Google agreed to pay $24.5 million to settle a dispute with Trump and pledged $22 million of that settlement toward the ballroom construction [7] - Lockheed Martin, a major defense contractor, is reportedly contributing over $10 million to the project [8] - Microsoft has multibillion-dollar federal contracts, including partnerships related to U.S. cybersecurity [9] - Comcast faces scrutiny from Trump but remains a donor [10] - Altria, a major tobacco firm, has pushed for less FDA oversight and is involved in Republican PAC donations [11] - Coinbase supports Trump's push for looser crypto regulations [12] - Palantir Technologies has seen a surge in federal contracts under the Trump administration [13] - T-Mobile's merger agreements were favorably reviewed during Trump's term [14] - Ripple supports Trump's digital asset finance initiatives [15] - Hard Rock International's chairman has ties to the Trump Organization [16] - Tether America backs Trump's digital dollar framework [17] - Union Pacific Railroad is seeking a merger under a Republican-led SEC [18] - Micron Technology announced a $200 billion investment in the U.S. [19] - Caterpillar is viewed as a symbol of the "Made in America" initiative [20] - Booz Allen Hamilton reported that 90% of its recent bookings came from national security work [21] - HP has received military contracts and contributed to Trump's inaugural committee [22] - NextEra Energy's CEO supports job creation in America while criticizing some administration policies [24] - Reynolds American's PAC has previously donated to Trump [25] Private and Family Donors - The Adelson Family Foundation is run by Miriam Adelson, a significant GOP donor [26] - Stefan E. Brodie has a controversial past and was denied a pardon request [27] - The Betty Wold Johnson Foundation is known for its charitable contributions [28] - Charles and Marissa Cascarilla advocate for financial technology deregulation [29] - The Glazer siblings are recurring donors to Trump PACs [30] - Harold Hamm has advised Trump on energy issues [31] - Benjamín Leon Jr. has donated over $3 million to Trump's campaign and is awaiting Senate confirmation for an ambassador position [32] - The Lutnick Family supports Trump's economic agenda [33] - The Laura and Isaac Perlmutter Foundation consistently donates to Republican causes [34] - Stephen A. Schwarzman has acted as an intermediary between Trump and China [35] - Konstantin Sokolov is involved in infrastructure and energy investments [36] - Kelly Loeffler and Jeff Sprecher donated $5 million to Trump's 2024 election efforts [38] - Paolo Tiramani is active in real estate innovation [39] - Cameron and Tyler Winklevoss are consistent GOP donors advocating for clear crypto laws [40][41] - J. Pepe and Emilia Fanjul are part of a prominent sugar family and hosted a Trump fundraiser [42]

Group 1: Central Bank Focus - The upcoming week is termed "Super Central Bank Week," with major central banks including the Federal Reserve, European Central Bank, Bank of Japan, and Bank of Canada set to announce interest rate decisions [1][2] - The market widely anticipates a 25 basis point rate cut from the Federal Reserve, bringing the target range to 3.75%–4% [2][3] - The probability of a 25 basis point cut in October is estimated at 98.3%, while a cumulative cut of 50 basis points by December is projected at 93.4% [2] Group 2: Economic Indicators - Investors will focus on the U.S. core PCE price index for September, which previously showed a year-on-year growth rate of 2.9%, exceeding the Federal Reserve's 2% target [3] - The U.S. GDP data for Q3 will be released on October 30, with estimates suggesting that the ongoing government shutdown may reduce the GDP growth rate by 0.45 percentage points [4] Group 3: Earnings Season Highlights - The upcoming week is expected to be the busiest for earnings reports, with over 170 companies, including five of the "Tech Giants" (Microsoft, Apple, Alphabet, Amazon, Meta), set to report [5][6] - Apple is projected to report earnings of $1.76 per share and revenue of $101.71 billion, driven by strong pre-sales of the new iPhone 17 and recovery in the Chinese market [5] - Alphabet's expected revenue is $86 billion, with earnings per share at $2.17, while Amazon's revenue is anticipated at $179.2 billion, slightly above market expectations [5][6] Group 4: Market Expectations - Despite a slowdown in profit growth for the "Tech Giants," their profit growth is still expected to be significantly higher than the overall S&P 500 companies, with estimates of 16.6% versus 8.1% [6] - The "Tech Giants" are also key players in the AI sector, which has been a major driver of stock market growth in recent years [7]

Core Insights - Bill Ackman's Pershing Square Capital has invested $900 million in Howard Hughes Holdings, acquiring a 47% stake, with plans to model it after Berkshire Hathaway [3] - Ackman has a significant focus on technology, with 45% of Pershing Square's $14 billion portfolio allocated to leading tech stocks [3] Investment in Uber - Ackman holds over 30 million shares of Uber Technologies, valued at approximately $2.8 billion, representing 21% of Pershing Square's equity portfolio [5] - Uber commands a 76% market share in the U.S. rideshare market and is the second-largest food delivery platform, benefiting from strong network effects [6] - In Q2, Uber reported revenue of $12.7 billion, an 18% year-over-year increase, with diluted EPS rising 34% to $0.63, driven by 3.3 billion trips and a 15% growth in monthly active platform consumers [7][8] Investment in Alphabet - Pershing Square holds a combined position of 11.7 million shares in Alphabet, worth over $2 billion, making up 15% of its portfolio [9] - Alphabet's Q2 revenue reached $96.4 billion, a 14% increase year-over-year, with diluted EPS jumping 22% to $2.31, and Google Cloud revenue growing 32% to $13.6 billion [10][11] - Ackman highlights Alphabet's strong execution in AI and its discounted valuation at 26 times earnings despite robust business momentum [11] Investment in Amazon - Ackman initiated a position in Amazon, acquiring over 5.8 million shares worth nearly $1.3 billion, constituting 9% of Pershing Square's equity holdings [12] - Amazon's Q2 net sales were $167.7 billion, a 13% year-over-year increase, with EPS rising 33% to $1.68, supported by advancements in AI and operational efficiencies [15][16] - The stock is considered attractively valued with a PEG ratio of 0.58, indicating potential for significant earnings growth [16]

Mortgage Rates - Average fixed mortgage rates have declined significantly, with the 30-year fixed rate falling to 6.19% from 6.27% and the 15-year fixed rate decreasing to 5.44% from 5.52%, marking the lowest levels in over a year [2][9] - The decline in borrowing costs is attributed to softer Treasury yields and increased investor expectations of future interest rate cuts by the Federal Reserve, potentially stimulating activity in the housing market [2][3][9] - Despite the lower mortgage rates, affordability remains a significant challenge due to persistently high home prices, indicating that a more robust recovery in sales may require further rate cuts or price adjustments [3][9] Corporate Donations - Major technology firms, including Apple, Amazon, Meta, Microsoft, and Google, are under scrutiny for their financial contributions to Donald Trump's $300 million East Wing Project at the White House [4][5][9] - The donations have raised concerns about corporate political influence and transparency, especially as some contributing companies face legal challenges or seek regulatory relief [6][9] - Constitutional lawyers have expressed concerns that private funding of a White House project could violate the Anti-Deficiency Act and create conflicts of interest for the involved corporations [6][9]

Market Performance - The S&P 500 index increased by 2.4% this week, while the Nasdaq rose by 3.9%[1] - Large-cap growth stocks (Russell 1000 Growth) outperformed with a gain of 3.2%, compared to small-cap value (Russell 2000 Value) at +2.5%[1] - The technology hardware and equipment sector led the gains with an increase of 3.9%[1] Fund Flows - Estimated fund flow for S&P 500 components was +$65.6 billion this week, down from +$91.7 billion last week[2] - Semiconductor products and equipment saw the highest inflow at +$22.9 billion, while media and entertainment experienced the largest outflow at -$13.2 billion[2] Earnings Forecast - The forward 12-month EPS estimate for S&P 500 components was revised up by 0.4% this week, consistent with the previous week[3] - The automotive sector saw a significant upward revision of 9.0% in earnings expectations, while durable goods and apparel experienced a downward revision of -0.5%[3] Risk Factors - Key risks include uncertainties in economic fundamentals, international political situations, U.S. fiscal policies, and Federal Reserve monetary policies[3]

just give me the the headline of your story. >> So, the headline of the story is that Amazon is essentially no longer the only game in town in cloud computing. They've got real credible rivals, you know, down to Oracle and Google.You know, 5 years or so ago, it was only Microsoft that was knocking on the door. And now you add on all this AI workloads and that's not a business that AI that Amazon rather seemed to be leading in. >> Just for context though, how successful does it remain.How much market share d ...

Macro Overview - Global markets closed the week with cautious optimism due to softer U.S. inflation data, reviving hopes for synchronized easing among major central banks [1] - Outside the U.S., the economic picture is mixed, with Europe showing tentative momentum, Japan poised for reflation, and China facing domestic softness [1][2] United States - The U.S. economy remains the gravitational center of global finance, with the latest CPI data showing inflation cooling to 3.0%, bolstering expectations for another Fed rate cut [3] - The S&P 500 and Nasdaq reached new record highs, driven by the technology and energy sectors [3] - U.S. consumer behavior remains strong, supported by robust service-sector PMIs and steady employment, despite policy uncertainty [4] - The fiscal trajectory of the U.S. remains a long-term concern, but near-term resilience highlights the adaptability of the economy [5] Europe - The eurozone reported its strongest PMI print since mid-2024, indicating a potential easing of manufacturing drag, with Germany's rebound supporting the bloc [6] - France is an outlier, facing political friction and sluggish domestic demand, while the ECB is expected to maintain its current stance this quarter [6] United Kingdom - Inflation in the UK held steady at 3.8% for a third month, with retail sales unexpectedly rising by 0.5%, reflecting consumer resilience amid declining real wages [7] - Markets anticipate a dovish pivot from the Bank of England by December, which may aid the recovery of sterling-denominated assets [7] Japan - Japanese equities surged due to optimism surrounding the new Prime Minister's pro-growth agenda, with the yen's decline aiding exporters [8] - Inflation remains near 3%, putting pressure on the Bank of Japan to consider a rate hike, likely in early 2026 [8] China - China's Q3 GDP growth of 4.8% masks underlying weaknesses, with retail sales slowing to 3.0% YoY and fixed-asset investment contracting [9] - Industrial production rose by 6.5% due to export strength, but the housing downturn and deflation risk cloud the outlook [9] Emerging Markets - Hungary and Türkiye illustrate divergent trajectories, with Hungary maintaining firm rates to anchor inflation while Türkiye eases despite rising prices [10] - Latin America remains stable, supported by strong terms of trade and disciplined fiscal policies, while EM Asia's central banks prioritize currency stability over growth stimulus [10] Commodities & FX - Oil prices spiked due to renewed geopolitical risks, while gold paused after a nine-week rally [11] - The yen and euro softened against the dollar, reflecting policy divergence, while EM FX remained stable due to capital inflows into local-currency debt [11] Week Ahead - The U.S. FOMC Meeting is expected to result in a near 100% probability of a 25bp rate cut, with market focus on Chair Powell's tone [12] - Key economic indicators such as Consumer Confidence and Durable Goods will provide insights into household and business resilience amid fiscal uncertainty [13] - Global events include the Euro Area GDP Flash and China PMI data, which will be critical for assessing economic recovery [15][16]