—— Amazon Prime Day Sales Hit Record; Wing Launches $600M AI Fund; Global Layoffs Slow, Soft Landing Possible; U.S. Office Leasing Improves; U.S. Inflation Eases, Dollar Weakens; Hollywood Strikes Escalate; Celsius Ex-CEO Charged with Fraud
1. Amazon Prime Day Sales Hit Record
Today, Amazon announced that its two-day Prime Day event saw a 6.1% year-over-year revenue increase to $12.7 billion, slightly below the 9.5% forecast. Consumers purchased over 375 million items.
Amazon did not disclose specific financial details but shared a list of some top-performing sellers.
Before the stock market opened today, Amazon’s share price rose over 2%. The strong sales suggest consumer purchasing power remains solid.
Amazon Prime Day performance offers a glimpse into consumer health.
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2. Wing Launches $600M AI Fund
Early-stage VC firm Wing Venture Capital has completed a $600 million fund focused on AI investments.
Founded in Palo Alto, California, Wing plans to invest mainly in companies developing AI tools. Although VCs have long been interested in AI, the boom following OpenAI’s ChatGPT has pushed the sector to new heights.
In recent weeks, several AI-related acquisitions have occurred, including Databricks’ $1.3 billion purchase of MosaicML.
Wing was an early investor in $59 billion cloud company Snowflake. In 2020, it raised $450 million for its third fund.
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3. Global Layoffs Slow, Soft Landing Possible
According to Bloomberg’s analysis of 1,300 company layoffs, about 51,000 people were laid off globally in June, the fewest since December and down 25% from May.
The median layoff percentage across companies in Q2 was about 8%, compared to 10% in prior quarters, suggesting reduced layoff intensity.
Last month, U.S. employers added 210,000 jobs, further signaling the likelihood of a soft economic landing.
Since October, Amazon, Meta, and Google have collectively laid off 60,000 people, yet many quickly found new jobs. Quick re-employment may help explain the persistently low unemployment rate.
The risk of mass unemployment appears low, making a soft landing more probable.
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4. U.S. Office Leasing Improves
According to JLL, U.S. office leasing volumes rose 7.7% in Q2 compared to Q1, driven largely by energy companies in Texas and other fast-growing industries.
Jacob Rowden, head of U.S. office research at JLL, noted that although this is a positive sign, it’s too early to tell if the rebound will last.
A total of 40.4 million square feet of office space was leased in Q2, down 14% year-over-year and below pre-pandemic averages.
Companies renewing leases reduced their office space by an average of 20% while expanding meeting areas.
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5. U.S. Inflation Eases, Dollar Weakens
Goldman Sachs strategists Michael Cahill and Teresa Alves wrote today that after this week’s inflation data, the likelihood of the Fed raising rates beyond July has decreased, which may lead to a weaker dollar.
On Wednesday, Bloomberg’s Dollar Spot Index fell nearly 1%, its lowest since April 2022, and dropped another 0.5% today.
If the Fed stops hiking rates sooner than expected, dollar yields could underperform, pushing the dollar lower.
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6. Hollywood Strikes Escalate
Today, SAG-AFTRA, representing 160,000 Hollywood actors, announced it would go on strike at midnight after failing to reach a labor agreement with the Alliance of Motion Picture and Television Producers, representing studios like Disney and Netflix.
The studios said they had offered higher pay, bonuses, and protections against AI replacement, but were disappointed actors walked away from talks.
Several major productions have already shut down, including Netflix’s “Stranger Things” and ABC’s “Abbott Elementary.”
This marks the first time in over 60 years that Hollywood writers and actors are striking simultaneously.
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7. Celsius Ex-CEO Charged with Fraud
Alex Mashinsky, former CEO of Celsius Network, was arrested by U.S. authorities today and charged with artificially inflating product prices to attract users, resulting in personal gains of $42 million.
Mashinsky is also charged with wire fraud spanning several years. He pleaded not guilty at today’s hearing.
Last year, Celsius collapsed under more than $1 billion in debt after failing to honor withdrawals following issues in the TerraUSD stablecoin ecosystem.
Mashinsky was released on $40 million bail.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.