LONDON — Microsoft said on Tuesday that it plans to invest $30 billion in artificial intelligence infrastructure in the U.K. by 2028.The investment includes $15 billion in capital expenditures and $15 billion in its U.K. operations, Microsoft said. The company said the investment would enable it to build the U.K.'s "largest supercomputer," with more than 23,000 advanced graphics processing units, in partnership with Nscale, a British cloud computing firm. The spending commitment comes as President Donald Tr ...

Group 1: Economic Indicators - The June Personal Consumption Expenditures (PCE) price index increased by 0.3%, surpassing the revised May figure of 0.2%, with an annual rate of 2.6% compared to 2.4% in May [2][3] - Core PCE also rose by 0.3% in June, maintaining a yearly increase of 2.8%, which reflects a larger increase in May than initially reported [2][3] Group 2: Market Reactions - The odds of a Federal Reserve rate cut in September have decreased from 47.7% to 39.2% following the PCE report, indicating a shift in market expectations [3] - Markets reacted positively to news of a potential trade deal between the U.S. and China, with Treasury Secretary Scott Bessent expressing confidence in finalizing the agreement [4][5] Group 3: Company Earnings - Meta and Microsoft reported better-than-expected earnings, with Meta's stock rising by 12% and Microsoft's by 5% following their earnings announcements [7] - Both companies are heavily investing in artificial intelligence, with Meta projecting capital expenditures between $66 billion and $72 billion for the year, and Microsoft expecting over $30 billion in capital expenditures for the fiscal first quarter [8][9] Group 4: AI Impact on Employment - AI is projected to potentially eliminate 20 to 30 million U.S. jobs by 2035, representing nearly 20% of the current U.S. payroll employment of around 160 million jobs [11][14] - Jobs at high risk of automation include administrative support, customer service, and transportation, with significant portions of these roles likely to be displaced [12][16] Group 5: Investment Strategies - Companies involved in AI infrastructure and applications are seen as key investment opportunities, with a focus on those that will benefit from the transition to a robotic workforce [25][26] - Investors are advised to be selective with AI stocks, as not all companies labeled as "AI" will be long-term winners, emphasizing the need to differentiate between hype and substance [28]

Group 1: Earnings Performance - Meta's shares increased by 12% and Microsoft's by 5% following better-than-expected earnings reports that exceeded both revenue and profit expectations [1] - Microsoft achieved a market capitalization exceeding $4 trillion, joining Nvidia in this exclusive category [1] Group 2: Capital Expenditures - Meta's capital expenditures for the full year are projected to be between $66 billion and $72 billion, raising the lower end of its previous estimate [2] - Microsoft anticipates over $30 billion in capital expenditures and assets acquired through finance leases for the fiscal first quarter, surpassing analyst expectations of $24.23 billion [2] Group 3: Industry Impact - Analysts at Citi suggest that the increased capital expenditures from Meta and Microsoft will benefit chipmakers, with Microsoft accounting for approximately 8% of Advanced Micro Devices' sales and Meta for about 2% of Broadcom's sales [3] - The analysts believe that Advanced Micro Devices and Broadcom will be the primary beneficiaries of the increased capital expenditures from both companies [3]

Group 1 - Alphabet's Google plans to invest $25 billion in data center and artificial intelligence infrastructure over the next two years [1] - Google will allocate $3 billion to modernize two hydropower plants in Pennsylvania to support the increasing power demand from data centers and AI [2] - The refurbishment of the Pennsylvania plants is part of a broader agreement with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S. [2] Group 2 - Google's investments are in response to the PJM Interconnection's challenges in meeting rising electricity demand from data centers and industry [3] - PJM is the largest electric grid in the U.S., covering 13 states and including the world's largest data center market in northern Virginia [3] - A meeting involving President Donald Trump, White House officials, and tech and energy executives is taking place to discuss AI investment in Pennsylvania [4]