The infoshot to help kick-start your week
Coming up this week:
Strikes start again in Iran – Wednesday
Oil climbed above $90 a barrel over the bank holiday weekend, after the US targeted rocket launchers on Larek Island to stop the Iranians from deploying mines in the Strait of Hormuz. Economic sanctions had been the preferred approach of the US over the last month but there’s been little success at getting Iran back to the negotiating table. Iranian leaders appear prepared to drag talks out until at least after the US midterm elections in November.
Prior to the latest strikes, traffic through Hormuz had increased 30% week-on-week. Expect it to fall back again this week if tensions can’t be de-escalated.
US microchip, semiconductor and cloud storage earnings – Tuesday to Thursday
Dell, Broadcom and Snowflake all release their latest earning reports this week. As they try to justify their current valuations, analysts will be expecting to see semiconductor and microchip demand mirroring data centre buildouts, and enough cloud spending to justify AI growth narratives.
Last week:
Jackson Hole Symposium 2026
The odds of a September Fed interest rate hike increased on Friday after Kevin Warsh’s clearer and more hawkish speech at the Jackson Hole Symposium in Wyoming.
Warsh made it clear that he sees inflation rates “as more concerning” than the state of the labour market. This week’s ADP payroll and official US unemployment data may also increase the odds of a hike if they match expectations.
Nvidia reports record-breaking revenue & ‘careless’ Meta settle in rapid time
US markets and tech stocks rallied last week following Nvidia’s latest earnings report.
The chip giant reported quarterly revenue of $96bn, double what it made in the same period in 2025. They expect revenue to increase to $108bn in Q3. Bullish as ever, CEO Jensen Huang said, “AI has reached its inflection point” and in relation to soon-to-be-listing AI firms “Investing in these companies are a once in a generation opportunity… The only regret that I have is that I didn’t invest more and sooner.” The share price did surge after the results but there was a -4.5% reversal on Friday as investors looked to take profits amidst renewed worries about Nvidia’s biggest customers, and Warsh’s tone on interest rates.
In other big tech news, Meta settled within just three days of their trial in California over allegations that Facebook and Instagram knowingly designed addictive features that were harmful to children’s mental health. They agreed to pay $18bn to settle the case before Mark Zuckerberg was due on the witness stand. They also committed to introduce new safeguards to make their platforms safer for young people. The share price rose in response, with investors relieved the settlement was way below the $200bn the states had sought.
Pubs and bars enjoy Burnham bounce
Here in the UK, a survey by multiple trade bodies, including the British Beer and Pub Association, suggest the hospitality industry is going through a “Burnham bounce”. Prime Minister Andy Burnham has positioned himself as an ally of the industry, announcing business rate discounts and producing lots of content featuring him pulling pints and DJing. Of those surveyed, those that feel the government will benefit the industry increased from 18% to 37%.
As expected, tax was cited as the biggest barrier for businesses as many in the industry continue to call on the government to cut VAT on hospitality from 20% to 10%. Nearly a quarter of UK pubs, bars and restaurants are currently losing money and one in six are thought to be at risk of going bust by July 2027. According to UKHospitality, 89,000 jobs have been lost in the sector since the last Budget.
Notice:
For regulated financial advisers and investment professionals only, Copia does not provide financial advice, and the contents of this document should not be taken as such.
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated but is not an indicator of potential maximum loss for other periods or in the future.
