Key headlines from global financial media overnight and this morning include the following.
Trump announced a $15 billion steel mill plan that will build the largest steel mill in U.S. history. SpaceX's Starship test flight successfully reached Earth orbit, with 26 Starlink satellites deployed. The FAA said Boeing 737 Max 10 certification is delayed due to a software issue, and Boeing shares fell sharply. Advanced Micro Devices (AMD) acquired Fei-Fei Li's World Labs AI company for $8.2 billion. Anthropic launched a cheaper AI model, Sonnet 5.5. "Big Short" investor Burry said the AI bubble may burst sooner than initially thought.
Trump announces $15 billion steel mill plan, to build largest steel mill in U.S. history
Trump announced on Monday that a steel manufacturing company plans to invest about $15 billion to build one of the largest plants of its kind in U.S. history. The announcement event with Mesabi Metallics in the Oval Office comes just weeks before the November midterm elections. The election is likely to be affected by growing American dissatisfaction with Trump's handling of the economy. The steel mill is planned for Iowa, with a target to begin production in 2030. Minnesota-based Mesabi Metallics, headquartered in Nashwauk, said the project will provide "100% American steel: mined, smelted and cast in Minnesota and Iowa."
SpaceX Starship test flight successfully reaches Earth orbit, 26 Starlink satellites deployed
A SpaceX representative said during the company's livestream that despite a malfunction in one engine during ascent, SpaceX's Starship entered Earth orbit for the first time on Monday and successfully released all 26 Starlink V3 satellites carried aboard. At 9:54 a.m. Eastern Time, SpaceX posted on social platform X: "Payload deployment complete. All 26 @Starlink V3 satellites successfully inserted into orbit." The message came about half an hour after Starship released the satellites. During the ascent phase of Ship 41, one of six Raptor engines failed, but it still completed the ascent burn and then coasted along what SpaceX called a passive safe suborbital trajectory while engineers simultaneously conducted checks on the spacecraft's systems.
FAA says Boeing 737 Max 10 certification delayed due to software issue, Boeing shares slump
The administrator of the U.S. Federal Aviation Administration said a software issue will delay the agency's certification of the Boeing (BA) 737 Max 10 as the agency assesses whether it poses a safety problem. Boeing shares closed down nearly 7%. Boeing CEO Kelly Ortberg told investors earlier this month that Boeing had expected to receive the green light from regulators "soon" for the aircraft, which has been delayed for years.
AMD acquires Fei-Fei Li's World Labs AI company for $8.2 billion
Advanced Micro Devices (AMD) announced on Monday that it has reached an agreement to acquire World Labs, a San Francisco-based AI lab developing a type of AI called world models that can be used to simulate 3D environments. For AMD, this is the chipmaker's second-largest acquisition ever, after its roughly $50 billion acquisition of Xilinx in 2022. Fei-Fei Li will become AMD's chief scientist and executive vice president of the company.
Anthropic launches cheaper AI model Sonnet 5.5
Anthropic released a new artificial intelligence model called Sonnet 5.5 on Monday, its second release since CEO Amodei called for slowing the pace of development. Sonnet 5.5 is a faster, lower-cost product from Anthropic, and the company says it outperforms its predecessor in coding, completing clearly scoped tasks and creating polished documents, slides and spreadsheets. The release comes less than a week after Anthropic launched the more expensive model Opus 5.5, and the company also said on Monday that Haiku 5.5, the cheapest in the series, will be coming soon.
"Big Short" Burry: AI bubble may burst sooner than initially thought
Michael Burry is moving up the timeline for his bearish thesis on the fate of the AI boom. The investor known for his massive short bet against the U.S. housing market before the 2007-2009 global financial crisis said he is converting short positions in key AI stocks into put options, thereby obtaining more cost-effective leverage over a shorter time horizon. "Fundamentally, I am moving up the timeline," Burry wrote in his Monday investment newsletter. "Therefore, I want the short position to have more leverage. A better timeline makes leverage more acceptable. When it comes to leverage, nothing is more suitable than options, in this case put options, which are relatively cheap because volatility indicators such as the VIX are unusually tight."
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