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After a tumultuous first half of the year, China prioritizes AI, IPOs and diplomacy during a critical H2. View More

In this article2513-HKFollow your favorite stocksCREATE FREE ACCOUNT Travelers walk past an advertisement for Doubao, ByteDance's AI assistant platform, displayed alongside Volcano Engine, the company's cloud and AI service brand, inside Shenzhen Bao'an International Airport on May 16, 2026, in Shenzhen, Guangdong Province, China. Cheng Xin | Getty Images News | Getty Images Hi, this is Evelyn, writing to you from Beijing. Welcome to the latest edition of The China Connection — a snapshot of what I'm seeing and hearing from local businesses.After a tumultuous start to the year, what certainties are companies counting on, and what will drive the economy beyond the summer months? The big story During a brief trip to Shenzhen last week, I found the airport abnormally busy for an early weekday morning. People rushed about, while ads plastered across multiple walls promoted various artificial intelligence tools and their technical capabilities.The AI frenzy and its economic implications have washed over much of China in the last six months. From AI chatbot wars during the Lunar New Year in February, to the subsequent OpenClaw AI agent craze, to widespread AI-generated videos capturing the public imagination and, finally, stock market gains, the technology is forming an ever-greater part of life in China today.That's not to mention a policy back-and-forth in the U.S. that briefly shut down Anthropic's Mythos and Fable models, and helped send newly listed Knowledge Atlas skyrocketing into the trillion-Hong Kong dollar market cap club. The Chinese company, also known as Z.ai, released the open-source GLM 5.2 model that held the top performance ranking in coding while Fable was offline.Critically, the gains in tech stocks, which account for some 30% of the mainland China A-share market, are helping put a floor under struggling property markets in major Chinese cities, said Nomura's chief China economist Ting Lu.More IPOs, including that of autonomous driving company Momenta in Hong Kong on Wednesday, are on the calendar, echoing the excitement in the U.S. over big-name listings.But are animal spirits running too high? The summer holidays, which officially began in China on July 1, may just mark the lull before the storm.The most-anticipated event of the first half of the year was U.S. President Donald Trump's trip to Beijing, which went ahead in May after being delayed by the Iran war.Trump's visit helped preserve a thaw in U.S.-China tensions. U.S. businesses rushed to ramp up orders from Chinese suppliers, before a stricter tariff regime is set to start later this month.However, a pre-set schedule may keep relations stable for a while longer. Chinese President Xi Jinping is due in the U.S. in late September. After the U.S. midterm elections, Trump and Xi are expected to meet in November during the APEC summit in Shenzhen.With four months to go, the city was already preparing for the event, with promotional banners and whispers of tech showcases. It is the Silicon Valley of China, after all. Tourist season Meanwhile, around 60 million more railway trips are expected this summer compared to last year, among 1.01 billion overall passenger journeys, according to Chinese state media. Social media posts evoke excitement over sold-out summer events such as Bilibili World that features merchandise based on characters popular on the streaming and gaming company's app.It's less clear whether that's enough to reverse a slump in retail sales."Holiday spending is still constrained by a weak labor market," Morgan Stanley's chief China economist Robin Xing and a team wrote in a June 28 report. "We expect Beijing to step up a capex-centric fiscal rollout starting in 3Q, primarily focused on Al and power grids rather than consumption," the analysts said.China's parade of tech achievements will pick up in the interim. Shanghai hosts the state-organized World AI conference in mid-July, at which Xi is expected to speak, according to The Asia Group Partner George Chen. The event organizers did not respond to a request for comment. Later in August, Beijing holds its World Robot Conference. "The overall AI growth story remains intact and, while the narrative has evolved over the past couple of years, we are still in the early days of the AI revolution," said Perris Lee, head of equity capital markets for Asia Pacific at Mergermarket, noting how robust listing activity in Hong Kong reflects the fact that "investors continue to be enthusiastic.""Geopolitical tensions remain a key risk," Lee said. "It is still unclear whether we have seen the full impact of higher oil prices, and ongoing conflicts and broader geopolitical uncertainty could continue to affect investor sentiment and capital markets activity in the second half of the year."As the money pours into AI and the rest of the economy tries to get a lift from exports and tourism, there's a lingering question of when the music will stop. Need to know Europe wants to rebalance trade with Beijing, but can't quit Chinese air conditionersBrussels aims to reduce its trade deficit with China by October, just as a historic heat wave sends locals rushing to buy Chinese-made air conditioners. Meanwhile, Beijing widens Japan export curbs, targeting drone makers, nuclear firms and defense institutes.Alibaba-affiliate Ant Group rushes into humanoid robots with a dozen deals in 18 monthsFor its latest sector bet, Ant Group led a 500 million yuan ($73.58 million) funding round in Zeroth. In the stock market, short interest in Pop Mart climbed to 12.67% of shares outstanding as of June 30, up from 11.3% in April, according to S&P Global Market Intelligence data. That's despite 8% gains since its year-to-date low in April.Xi touts China Communist Party's global influence in speech marking 105th anniversaryThe Chinese Communist Party has "deeply changed the trend and trajectory of the world's development through relentless struggle," Xi Jinping said, according to a CNBC translation from Mandarin. Coming up July 9: CPI, PPI for JuneJuly 10 - 12: Bilibili World in ShanghaiJuly 14: China trade data for June Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Microsoft is cutting jobs in its commercial business and its Xbox gaming group, where revenue has been shrinking. View More

In this articleMSFTFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO3:4203:42D.A. Davidson's Gil Luria on Microsoft layoffs: Gaming business has become 'almost irrelevant'Squawk on the Street Microsoft said Monday it is immediately eliminating 4,800 jobs, representing 2.1% of its workforce, in the software giant's latest effort to cut costs in the era of artificial intelligence. Its Xbox division will lose about one-fifth of its staff, including 1,600 jobs on Monday and additional cuts in the coming months."The way technology is built, deployed, and used is transforming faster than at any point in my time here," Amy Coleman, Microsoft's chief people officer and a 27-year company veteran, wrote in a message to employees Monday.Xbox will be cutting a total of 3,200 people, Xbox CEO Asha Sharma wrote in an email to division employees. Half of those roles are part of the 4,800 jobs being eliminated Monday, and the other 1,600 people will be exiting throughout fiscal year 2027."I recognize that a year-long restructuring creates additional challenges," Sharma wrote. "Unfortunately, it is not possible to make all the necessary changes in a single day."The cuts amount to 20% of Xbox employees, according to a person familiar with the matter, who asked not to be named in order to discuss internal changes."We will return to growth in 2027," Sharma wrote.Microsoft has been the worst performer among megacap tech stocks so far in 2026, falling 19% as of Friday's close, as investors fear that generative AI models might displace wide swaths of enterprise software, while Microsoft's own AI models and services have yet to become big hits. Last year Microsoft conducted several rounds of layoffs, including one that cut 9,000 jobs. Microsoft shares slipped 1% during Monday's trading session, while the technology-heavy Nasdaq Composite index advanced 1%.While Microsoft recorded accelerating growth in cloud services and LinkedIn in recent quarters, it's lagging in other areas, such as Windows operating system licenses, Surface devices and the Xbox gaming unit, where revenue has been shrinking. Stock Chart IconStock chart iconMicrosoft stock chart. As part of Monday's announced changes, four gaming studios will be spun out of Microsoft, Coleman said. The commercial business that focuses on selling to customers will also see reductions. The Compulsion Games and Double Fine Productions studios, which Microsoft acquired in the 2010s, will become independent again, Sharma said in her note. Ninja Theory and Undead Labs, which joined Microsoft in 2018, "have entered terms to join new ownership," she wrote."We're thankful to everyone at Xbox for seven great years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us," Double Fine said in an X post.France-based Arkane Studios, which arrived at Microsoft through the $8.1 billion ZeniMax Media acquisition in 2021, is in touch with its works council regarding strategic options, Sharma wrote."This is not a business Microsoft needs to be in, or should be in," DA Davidson analyst Gil Luria said on CNBC, referring to Xbox. "It is very possible that they will spin it off at some point."In April, Microsoft introduced a one-time voluntary retirement program, a first for the company. The effort has targeted U.S. employees at the senior director position and below. More than one-third of eligible employees have accepted the offer, and the company "will continue exploring similar approaches in the future," Coleman wrote."Decisions like these are never easy, and you have my commitment that we are constantly looking for ways to reduce the need for job eliminations," Coleman wrote.While much of Wall Street's concerns about Microsoft are tied to the company's position in AI and CEO Satya Nadella's failure to lay out a coherent strategy for its approach to developing models, agents and other services, AI isn't replacing laid-off workers, Coleman wrote. "At the same time, what is true is that AI is changing how work gets done," she wrote. "Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves. Our customers are navigating this same shift, and they're counting on us to help them through it. We can't do that well unless we're doing it ourselves." Read more CNBC tech newsMeta's push into cloud computing means Wall Street has to prepare for lower marginsChip stocks that notched record rallies in second quarter start Q3 with a dudPlayStation will end physical disc production for new games in 2028Employers who laid off workers citing AI are already starting to regret it Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Chinese e-commerce giant Alibaba has put Anthropic's Claude Code on a high-risk software list. View More

In this articleBABAANTHR.FGFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO2:3302:33Alibaba bans Claude code usageSquawk on the Street Alibaba will ban employees from using Anthropic's artificial intelligence tools for work purposes as of July 10, citing concerns that the U.S. company has back-door security risks, CNBC confirmed on Monday. The Chinese e-commerce giant has put Anthropic's Claude Code on a high-risk software list, according to people familiar with the matter, who asked not to be named in order to discuss internal operations.Alibaba's move follows Anthropic's decision in June to send a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, blaming the Chinese tech titan of "brazenly" and "illicitly" attempting to extract its AI capabilities. Anthropic accused Alibaba of carrying out "the largest known distillation attack" on it to date.Anthropic's terms of service dictate that Chinese companies and other "adversarial nations" are banned from using its models.Alibaba employees are required to uninstall all Anthropic models and agent products and instead use the Chinese company's own AI assistant, Qoder, the people said.Alibaba and Anthropic both declined to comment. Read more CNBC tech newsMeta's push into cloud computing means Wall Street has to prepare for lower marginsChip stocks that notched record rallies in second quarter start Q3 with a dudPlayStation will end physical disc production for new games in 2028Employers who laid off workers citing AI are already starting to regret it The ban comes amid a wave of online blowback in China against Anthropic as posts on Reddit and GitHub outlined the use of hidden code meant to detect if users might be based in the country.The Financial Times reported Friday that Anthropic is moving to close loopholes that have allowed Chinese companies to bypass restrictions and access Claude through third countries. The UK newspaper cited sources as saying Chinese fintech group Ant "had provided employees with corporate Claude accounts that were accessed through the company's intranet, which is connected to its Singapore-based entity."The FT reported that TikTok parent company ByteDance "does not facilitate access to Claude," but did start a reimbursement program that allows engineers to expense personal subscriptions. The engineers can access those subscriptions on virtual private networks.Ant and ByteDance declined to comment on the Financial Times report.ByteDance's reimbursement policy, unveiled on April 2, is meant to encourage staffers to "experience and learn" about a wider range of AI products to enhance their skills, a person familiar with the matter told CNBC. The person asked not to be named in order to discuss internal policies. watch nowVIDEO4:4304:43TeraWulf CEO on Anthropic deal: Demand for power is very significant and it's the tip of the icebergPower Lunch Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading. View More

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks are higher to kick off the new trading week. Technology stocks, including the semiconductor cohort , are rebounding and regaining some momentum after back-to-back days of declines. As investors rotated back into the AI buildout theme, they moved out of healthcare and consumer retail stocks. It's been one week since Honeywell's long-awaited breakup into two standalone companies. If you add the two parts together and adjust for the spin and reverse stock split terms, the combined company is trading around $240, which is up about 6% from our last purchase in late June. However, the two stocks have performed very differently so far, so let's take a look at how each is doing. Honeywell Aerospace business is off to a strong start thanks to a big move over the past three sessions. This was our preferred stock of the two companies because aerospace is a more attractive long-term growth story than industrial automation. Honeywell Aerospace holds leading positions across several critical aircraft systems, including auxiliary power units, electronic solutions, and flight control systems. Honeywell Aerospace shares traded around $220 when we gave it a price target of $285 late last Monday. It's up about 15% since then. We'd like to get more HONA shares in the portfolio soon because we think more gains are in its future. But after a $30 burst, we'd rather be patient and let the stock settle in to see if we can get a better price. Honeywell Technologies has gotten off to a much slower start, with shares down about $20, or roughly 9%, since the separation. We think part of that weakness reflects typical spin-off dynamics. Aerospace was the crown jewel inside Honeywell and the primary reason many investors owned shares in the conglomerate. Now that shareholders have a choice, those looking for pure-play aerospace exposure are selling the automation business. But post-spinoff volatility often creates opportunities, and we're interested in buying HON shares as the technical selling pressure begins to ease. Our banks are also participating in Monday's rally, with Goldman Sachs and Wells Fargo both up more than 2% on the day and comfortably outperforming the S & P 500's financials sector. While this is a mostly quiet week of earnings on Wall Street, the big banks kick off the start of second-quarter earnings season next week. Goldman's price target was raised to $1,075 from $950 at Evercore ISI, which also reiterated its buy rating. Analysts expect the bank, which reports on July 14, to benefit from bullish sentiment in capital markets and strong activity in mergers and acquisitions (M & A). That's not too surprising, given how many big deals Goldman has worked on this year. For example, Goldman was an advisor on Dominion Energy's $66.8 billion merger with NextEra Energy , which was announced in May. Transactions like these have given Goldman a leading position in the M & A market. The bank came in at No. 1 in global M & A fees for the first half of 2026, according to financial data provider LSEG, securing 11.7% wallet share, up 1.7 percentage points from a year ago. JPMorgan was in second place, with 8.9% share of M & A fees. Goldman's momentum has continued into the third quarter, with the bank serving as the lead advisor for Solstice Advanced Materials in the company's bid for Element Solutions . Goldman also provided $4.7 billion bridge commitment. We own Goldman to benefit from an increase in M & A during the second Trump administration, and our thesis is playing out according to plan. Goldman is up about 19% in 2026 and 45% over the past 12 months. Meanwhile, Wells Fargo was placed under a "positive catalyst watch" at JPMorgan. Analysts raised their price target to $93.50 from $86.50 into Q2 earnings. Wells should "benefit from strong trading revenues" and a "strong outlook for investment banking fees," the analysts wrote. While we hope Wells reports a good quarter on July 14, we're more guarded into the print because the bank has issued two lackluster reports in a row. These upcoming numbers will help determine whether we stay invested. Shares of Wells are down about 6% this year, though the stock bottomed in May and has since climbed almost 20% off those lows. There are no major U.S. earnings after the closing bell on Monday or before the opening bell on Tuesday. However, over in South Korea, memory chipmaker Samsung Electronics is set to report. Samsung is Club name Qnity's largest customer and an important cog in the overall semiconductor supply chain, so Wall Street will pay attention to these results. On the economic data side, the New York Federal Reserve on Tuesday will release its monthly survey of one-year consumer inflation expectations. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Prince Harry will not be staying at Buckingham Palace during his upcoming visit to the UK after a dispute over accomodation arrangements, adding to ongoing tensions security and royal relations.  View More

Airlines are extending flight schedules to maximize on lucrative international travel. View More

In this articleAALALKUALDALFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO2:5602:56Why there's no 'offseason' travel anymoreTransportation Sick of the heat, crowds and high prices, more U.S. travelers are discovering the offseason of international travel — and airlines and hotels are fighting for a windfall.Flights to once-seasonal European vacation destinations now start when there's still snow on the ground in the U.S. and wrap up when leaves are falling off the trees, if they end at all, instead of following traditional late-spring to late-summer travel seasons.For example, American Airlines' flight to Edinburgh, Scotland, from New York began in March. United Airlines' nonstop route to Palermo, Sicily from Newark, New Jersey, will end in December and Delta Air Lines' service to Rome from Minneapolis, Minnesota, will run into January, months later than they have in past years.With this year's surge in jet fuel expected to take a $100 billion bite out of airline profits this year, according to the International Air Transport Association, it's crucial for the industry to maximize on travel trends that attract high-spending customers.Investors are upbeat that airlines can take the fuel hit from earlier this year after they trimmed unprofitable or less profitable flights and airline executives have said strong demand has helped them pass some — but not all of those expenses along.Shares of Delta and United, the two most profitable U.S. airlines, each hit records in recent weeks, and American's shares touched an 18-month high. Airlines start reporting second-quarter results and providing third-quarter updates this month, with Delta kicking the season off on Friday. A couple cools off in the Trocadero Fountain with the Eiffel Tower in the background during a heat wave in Paris on June 26, 2026.Dimitar Dilkoff | Afp | Getty Images 'Creep of the seasons' Industry executives told CNBC that international vacation seasons used to be more defined. The new trends are forcing them to rip up decades-old playbooks."It used to be so much lumpier. There used to be more: good season, bad season," Delta President Peter Carter said in an interview. "There are so many places you can go in Europe year-round and still have an amazing experience, and that's why we're seeing such good demand into Europe."That demand is redefining when airlines' moneymaker months are."We've seen this massive, what I would call, the creep of the seasons — the shoulder season is blending into the full season," Patrick Quayle, United Airlines' senior vice president who designs the carrier's network, said in an interview last month. Shoulder season refers to the period between a destination's peak tourist season and its offseason.Airlines are trying to extend the season as much as possible to grow profits.International flights to Europe generally carry more premium seats like lie-flat pods than smaller jets that are used for domestic travel — and airlines are planning to expand those options further. Business-class fares on some of those routes can cost $10,000 for a round-trip instead of less than half that on a domestic route. A dog is standing with its owners in a long line at Terminal 1 of Frankfurt Airport in Germany.Andreas Arnold | Picture Alliance | Getty Images Airfare overall is up this year compared with last as airlines try to pass along as much of their rising costs to customers as possible, but there are signs that prices are moderating, particularly as the industry braces for the peak summer travel period in July to pass.For example, flights between the U.S. and Athens, Greece, on June 22 were going for $988 round-trip, up from $810 last year but down from $1,350 two months earlier, according to flight-tracking site Kayak.The increase in shoulder season and off-peak travel is forcing Delta to rethink its maintenance and crew schedules, said Jeff Arinder, Delta vice president of international network planning."We would never give airplanes to the maintenance hangers, if we could avoid it, in the summertime ... because that's when we made all the money," he told CNBC. "We are now doing more maintenance in the summertime because we want to save those planes for the fall."He said Delta is trying to "really flatten out our seasonality as much as possible." Why travel times are changing People try to cool down by standing in front of a nebuliser placed on a Civil Protection pick-up truck spraying cool water during a heatwave, in Rome near the Colosseum on June 26, 2026.Andreas Solaro | Afp | Getty Images The latest challenge to usual summer European travel was the most recent, deadly heat wave. In late June, locals and tourists alike faced dangerous record temperatures throughout Europe, where air conditioning isn't widespread. Misting stations were set up from Warsaw, Poland, to Rome. The Paris LGBTQ+ Pride march was postponed, among other events, and public alcohol consumption was briefly banned in the city.Residents of many European cities, like Barcelona, Spain, and Venice, Italy have also been raising concerns about overcrowding during peak summer months and beyond. Countries throughout Europe have been bringing in record numbers of visitors. But it's not just an aversion to heat and crowds that's leading to changing travel patterns. For younger generations, more flexible work policies are helping some consumers, even those with children, take trips outside of late spring and summer. Baby Boomers, meanwhile, are armed with piles of cash and plenty of time, giving them more flexibility for travel. "Delta's target demographic tends to be a little bit older and a little bit wealthier," Arinder said. Setting sights on Sicily United is pushing the limits of the offseason trend. It's extended its nonstop flight from Newark, New Jersey, to Palermo, Sicily, through Dec. 16, rather than ending it in September, with Boeing 767s.Sicily has long been marketed as a summertime destination.Daytime highs can regularly reach 90 degrees Fahrenheit along the coast with little, if any, rain in July. In December, however, the highs sometimes barely touch 60 degrees on the Italian island and rain is more likely.As hotel rates drop and crowds at major attractions decline in the winter, United is making a bet that travelers will fill up the three-times-a-week service even without the ideal summer weather. The view from the ancient theater of Taormina on the Italian island of Sicily.Reda | Universal Images Group | Getty Images "I don't think it's that experimental. I think it's a really safe bet " United's Quayle said.Many coastal hotels also close during the winter months. The Four Seasons' San Domenico Palace, in Taormina, Sicily, where the second season of HBO's "White Lotus" was shot, closes in mid-November through early spring, for example.However, manager Imelda Shllaku told CNBC that in the past four years the hotel has had a "remarkable increase in bookings from U.S guests" in March, April, October and November. "High-net-worth travelers are increasingly seeking experiences with genuine cultural currency, and Sicily's shoulder season is simply better suited to delivering them," she said by email, pointing to behind-the-scenes tours of Noto in southeast Sicily and nighttime trips to Mount Etna. The hotel will reopen March 1, a spokeswoman said.Delta is planning to extend its flights from New York's John F. Kennedy International Airport to Catania, on the east coast of Sicily, through Jan. 3, compared with Oct. 24 last year. And it plans to resume the route on March 8, 2027. This year, it started the route on May 1 and May 21 in 2025. Shoulder season United and Delta aren't alone, as airlines across the board are redeploying some of their biggest planes to maintain service to Europe for the full year or well into the offseason."When airlines are looking to purchase aircraft, they have to think about 'How are we going to use this airplane year-round because it's an expensive piece of machinery,'" said Brett Snyder, founder of Cranky Flier blog and Cranky Concierge travel agency. "They know in the summer they won't have a problem sending these widebodies to Europe. Now they can stretch that further into the shoulder season."Seattle-based Alaska Airlines, which recently debuted its first service across the Atlantic this year to London, Rome and Reykjavík, Iceland, is keeping this in mind. President and Chief Financial Officer Shane Tackett told CNBC that travelers are becoming more flexible."A lot of people want to go see the same destinations … [and that] makes it like very logical that those seasons would start to spread," he said. "Maybe when I was growing up, my parents wouldn't have even thought of taking me out of school in September, and I think maybe parents are a little more like, 'Yeah, let's go somewhere fun, and you'll catch up on school when you get back.'" An American Airlines Boeing 777-223ER takes off from Barcelona-El Prat Airport, in Barcelona, Spain, on April 29, 2026.Joan Valls | Nurphoto | Getty Images American Airlines, for its part, is stretching some of the seasons of U.S. trans-Atlantic travel. October "is not as strong as June or July to Europe, but it's becoming a peak month for us," said Brian Znotins, the carrier's senior vice president of network planning.But American doesn't want to push planes too far off their proven track record for ski-and-sun-seeker vacationers in winter, he said."I'm not going to mince words: January and February are still very off-peak months. I would hate to have anyone come away and say that they're good months, they're just less off-peak than they used to be," he said.Some travelers split the difference.Atul Mehta, a finance executive based in Chicago, said he is taking his family to Portugal this summer shortly before school resumes, but said when he visits family in Bahrain in the winter "we have taken them out of school." Read more CNBC airline news'Bring 'em on': Delta wants United's crown over the Pacific, tooSpirit's collapse, high fuel prices test limits of summer vacation spendingMeet the pilots flying Spirit Airlines' yellow jets to the desert Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

There's a growing investment in newer areas of defense such as deep strike capabilities, anti-drone and unmanned systems, with different priorities for different countries. View More

In this articleLDO-ITBA.-GBRHM-DEFollow your favorite stocksCREATE FREE ACCOUNT The rapidly evolving nature of warfare and modern military requirements should prompt investors to rethink valuations in the defense sector, according to Panmure Liberum strategist Joachim Klement.While an increasingly fractious geopolitical environment continues to support the long-term bull case for the defense sector, Klement told CNBC's "Squawk Box Europe" on Monday, procurement risk, fiscal pressure and the AI trade are starting to separate winners from losers.Investors are becoming more selective, he said, weighing not just how much governments promise to spend, but whether that money flows into legacy platforms, or AI-enabled systems, drones and electronic warfare.The next generation of defense winners could increasingly resemble software and AI companies instead of conventional arms manufacturers, Klement said."Electronic warfare is a tech phenomenon," he added. "These companies need to be traded like tech companies."It means that some stocks in the sector could deserve a "much, much higher valuation" than conventional warfare companies, according to Klement. watch nowVIDEO7:1707:17Defense procurement designed for last century: StrategistSquawk Box Europe European defense stocks have been one of the clearest winners of the continent's rearmament push. However, some of the sector's biggest winners have come under pressure more recently, suggesting a new phase for Europe's defense trade, where investors are no longer treating rearmament as a blanket buy signal.Klement argued that Germany's cancellation of the F126 program showed that even in a world of rising defense budgets, big-ticket legacy programs can be vulnerable if they are slow, expensive or not aligned with changing military needs. "So often generals are fighting the previous war, not the next war, and the problem is that the military-industrial complex in Europe is dominated by conventional weapons manufacturers, whether we're talking tanks, artillery, etcetera," Klement said."What the German government has not done, and where Rheinmetall is also lagging, is focusing on AI-enhanced weapons systems [and] drone-enhanced weapons systems," he said, noting that companies like Italy's Leonardo and the U.K.'s BAE Systems are building systems that use AI and drone technology to fight.McKinsey senior partner Hugues Lavandier told CNBC last month that European defense spending is occurring "across the full gamut," including conventional land equipment such as main battle tanks and ammunition, as well as naval platforms, including aircraft carriers and frigates. He also pointed to higher investment in newer areas, with growing recognition of the importance of deep strike capabilities, anti-drone and unmanned systems. A question of investor flows? Defense stocks have enjoyed massive gains over the past five years. Klement suggested that recent weakness reflects investors rotating into AI trades rather than deteriorating defense fundamentals. "To us, it's a question of flow rather than fundamentals – a lot of fund managers are starved for cash," he said, pointing to companies like Alphabet and SpaceX raising large amounts of money recently."When we look at the fundamentals, the European rearmament drive continues unabated, especially Germany and Poland are spending more and more money on defense." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The office market logged record H1 2026 leasing of 45.5 million sq ft, led by global capability centres and flex space operators even as geopolitical tensions weighed on sentiment. GCCs alone accounted for 43% of demand, with CBRE expecting them to drive over 40% of full-year absorption. View More

Rentomojo, an innovative online rental platform specializing in furniture and appliances, has received approval from Sebi for its Initial Public Offering (IPO). Aiming to raise up to Rs 150 crore through new equity and an Offer for Sale by current shareholders, the proceeds will support loan repayments, warehouse rentals, and overall business operations. With a strong subscriber base and diverse product offerings in various cities, Rentomojo is poised for growth. View More

Online rental and subscription platform Rentomojo Ltd has received Sebi's go-ahead for its proposed initial public offering (IPO), an update with the regulator showed on Monday. The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 150 crore and an Offer for Sale (OFS) of 2.84 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP). The regulator received the company's draft papers on April 1 and gave its observations on July 6, the update showed. In Sebi parlance, the issuance of observations implies its approval to float the IPO. According to the draft papers, the company proposes to utilise the net proceeds from the fresh issue towards payment of loans, payment of lease rentals or licence fees for warehouses and experience stores, and general corporate purposes. Live Events Rentomojo operates a technology-driven, direct-to-consumer online rental and subscription platform for furniture and home appliances. As of September 30, 2025, Rentomojo had 2.28 lakh live subscribers across 22 cities, supported by 21 warehouses, with around 4.44 lakh sq ft of warehousing space. It also operates 67 experience stores and has a portfolio of 7,28,773 live products. For the six months ended September 30, 2025, the company posted revenue from operations of Rs 176.61 crore and a profit after tax of Rs 61.38 crore. In FY25, revenue from operations stood at Rs 265.96 crore, while profit after tax was Rs 43.11 crore. Motilal Oswal Investment Advisors , Axis Capital and IIFL Capital Services are the book-running lead managers to the issue. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)

Here are five key things investors need to know to start the trading day. View More

In this article.DJILEVIPEPDALFollow your favorite stocksCREATE FREE ACCOUNT This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Monday. I spent part of the weekend catsitting for a friend, which meant I could run their AC instead of mine during the heat wave.Stock futures are mixed this morning. Wall Street is coming off a winning week.Here are five key things investors need to know to start the trading day: 1. Trump talk President Donald Trump speaks with CNBC’s Joe Kernen in the Oval Office of the White House in Washington on July 2, 2026. CNBC While some people were getting ready to head to the beach, President Donald Trump sat down with CNBC's Joe Kernen on Thursday afternoon. In an exclusive interview ahead of the nation's 250th birthday, Trump discussed the U.S. economy, his business dealings, and his children.Here's what the president said about business and the economy:Trump expects between 40% and 60% of chip manufacturing to be in the U.S. by the time he leaves office.He also asserted that "AI is bigger than the internet" buildout and that the U.S. is leading on the technology.Trump said he doesn't know who manages his personal fortune and that his son Eric handles it.He believes the U.S. gross domestic product "should be" between 12% and 13%.Trump claimed that 401(k)s have risen by "80 or 90%," though that range doesn't align with the latest data from Fidelity Investments.See our biggest takeaways here. 2. Heating up The Wall Street bull is seen in the financial district in New York on March 7, 2017.Brendan McDermid | Reuters As temperatures soared into the triple digits on the East Coast, Wall Street was also bringing the heat. The three major indexes ended last week in the green, and the Dow Jones Industrial Average finished at an all-time high.Hopes that the Federal Reserve wouldn't need to hike interest rates grew after Thursday's weaker-than-expected jobs report. This week, investors will parse the Fed's meeting minutes for clues as to what the central bank could do next.Follow live markets updates here. 3. Raising the volume SHANGHAI, CHINA - JUNE 11: A giant football installation of 'TRIONDA' is displayed for the 2026 FIFA World Cup at Century Square on Nanjing Road Pedestrian Street on June 11, 2026 in Shanghai, China. (Photo by VCG/VCG via Getty Images)Vcg | Visual China Group | Getty Images Prediction market platforms are getting a kick from the FIFA World Cup. As CNBC's Davis Giangiulio reports, there's been a surge in volumes from May to June.Kalsi's notional volume rose more than 70% to above $31 billion in June, according to Dune Analytics. Polymarket's international event contract exchange hit a new monthly volume record above $10.8 billion in June.Speaking of the World Cup: Trump reportedly asked FIFA to review U.S Men's National Team striker Folarin Balogun's one-game suspension before the organization surprisingly reversed it. Belgian soccer authorities have reportedly been granted the right to appeal FIFA's decision. For now, Balogun will be playing in today's knockout game between the U.S. and Belgium. Get Morning Squawk directly in your inboxCNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.Subscribe here to get access today. 4. Tea party “The Future of Finance" explores blockchain, crypto, tokenization and the evolution of financial technology.Sean Conlon | CNBC On Friday, the Museum of American Finance opened its new Boston headquarters to the public. Among the displays: An artificial intelligence-generated interactive version of Alexander Hamilton.As CNBC's Sean Conlon reports, it's the Smithsonian Institution affiliate's first permanent home since it terminated a New York City lease in 2018 due to flooding. The 5,400-square-foot museum is located on Boston's Commonwealth Pier and is free to enter.Visitors can speak with Hamilton, who was the nation's first Treasury Secretary, in more than 50 languages. They can also pose questions to him through the AI generation, which was developed in partnership with the Fidelity Center for Applied Technology. 5. Cooler heads prevail An airliner comes in to land at Heathrow Airport, London.Getty Images Forget "Eurosummer." As CNBC's Leslie Josephs reports, more U.S. travelers are forgoing the heat and crowds that have become synonymous with international summer travel. Instead, they are opting to jet off in cooler and less expensive periods like fall.Some European destinations have seen their air travel seasons expand — that is, if they wrap up at all. Airlines have had to throw out the usual playbooks in a bid to win over these travelers, an especially important pursuit as they grapple with sky-high fuel prices. The Daily Dividend Here's what we're keeping an eye on this week:Tuesday: International trade data for MayWednesday: Levi Strauss earnings (after the bell); Fed meeting minutesThursday: PepsiCo earnings (before the bell)Friday: Delta Air Lines earnings (before the bell)— CNBC's Dan Mangan, Garrett Downs, Justin Papp, Sean Conlon, Jeff Cox, Fred Imbert, Davis Giangiulio, Sean Conlon and Leslie Josephs contributed to this report.Luke Fountain assisted in the production of this newsletter. Terri Cullen edited this edition. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.