Emma Tucker
1. FROM MY DESK
Over the weekend, Broadcom CEO Hock Tan was racing to get a massive chip-financing arrangement for Anthropic-the largest AI debt deal in history-across the finish line.
He spent months wrangling a $63 billion package for Anthropic to lease specialized chips just as the company filed for its IPO. But spooked by rising interest rates and the potential for being overexposed to AI, banks demanded better terms before committing $42 billion. To seal the deal, Tan intervened with 11th-hour concessions, agreeing to higher interest rates and guarantees to cover an Anthropic default.
The scramble shows how the winds are shifting in AI: Wall Street is still ponying up cash, but lenders are raising the bar, even for the industry's biggest players. Alexander Saeedy and Anissa Gardizy take readers inside the negotiations on the AI deal of the moment.
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2. TODAY'S HEADLINES
-- Running for Senate in Texas, Democrat James Talarico must convince some voters that, despite viral clips of his previous statements supporting trans athletes and criticizing capitalism, he isn't too far to the left to represent the state.
-- Leaders at Weil, Gotshal & Manges spent the weekend frantically seeking ways to stabilize the law firm after the collapse of merger talks and the exodus of top partners.
-- Companies such as Microsoft and Skydance are turning to voluntary exits to soften the blow of shrinking workforces.
-- The election upset pulled off by Brazilian President Luiz Inácio Lula da Silva was driven by an aggressive grassroots mobilization of voters.
-- Fed Chairman Kevin Warsh wants to stop previewing coming moves. Several colleagues say the central bank still owes the public an explanation of how it will respond to the economy.
-- The NFL announced that Jay-Z will perform at the next Super Bowl halftime show.
3. LIVE FROM THE MARKETS
Follow our live financial coverage all day.
-- Stocks Spencer Jakab is watching: JetBlue shareholders took a moment to locate the nearest emergency exit ahead of its earnings release Monday. The airline's shares hit an all-time intraday low following a report that creditors had hired advisers typically engaged when a bankruptcy is imminent. High jet fuel prices have put JetBlue under pressure, but the results had enough encouraging news about its liquidity position to send the stock higher in after-hours trading. (Get Spencer's Markets A.M. newsletter in your inbox.)
-- There's a flip side to Anthropic's $80.7 billion net loss for the first half of the year: Amazon and Alphabet booked large paper gains on many of the same financing deals, writes Jonathan Weil.
-- Private-equity firms are staring down a $300 billion wall of debt.
4. READ IT HERE FIRST
Trump's tariff exposed just how badly America needs Canada's aluminum.
For decades, cheap Canadian hydropower has fueled aluminum production for American industry, which relies on the metal for everything from military applications to pickup trucks. Now, President Trump's trade war has cast Canada as an enemy, and his 50% aluminum tariff has driven U.S. prices to a record premium. As Trump's push for a massive smelter in Oklahoma faces local backlash, Ryan Dezember explores how the steep levy is punishing domestic automakers, tech developers and home buyers.
5.
Opera tickets cost a fortune. The organizations selling them are struggling.
In a climate that's increasingly precarious for all arts organizations, opera houses are trying to figure out how to maintain a centuries-old tradition. Making the finances work has never been easy: The cost of running the Metropolitan Opera, around $326 million in its 2025 filing, is far more than the money it brings at the box office, so the company must fundraise aggressively to cover the shortfall. "That's a very difficult, if not impossible financial model," said Peter Gelb, the Met's general manager. Elias Leight examines why opera's business model is so challenging-and the unconventional ways companies are trying to stay afloat.
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6. SEE THE STORY
Breaking down the stakes of Israel's first wartime election.
As Prime Minister Benjamin Netanyahu faces his first national election since Oct. 7, 2023, his main centrist challenger, Gadi Eisenkot, couldn't be more different in terms of style, background and a host of issues that matter to Israeli voters. But the substantive differences between the two on the issues that matter most to the rest of the world-like Gaza and a Palestinian state-are narrower. Anat Peled looks at the high stakes of this too-close-to-call political contest.
7. HAPPENING TODAY
-- The Federal Reserve begins its two-day policy meeting.
-- Economic Data: U.S. consumer-confidence and durable-goods data are due.
-- Today's paper
8. THE NUMBER
$5.4 trillion
The estimated amount of credit extended globally in securities-based lending, according to a Deloitte survey. Long favored by billionaires as a "buy, borrow and die" strategy to fund lifestyle purchases without triggering tax bills, these portfolio-backed loans are now increasingly being adopted by those further down the wealth scale.
9. AND FINALLY...
The Savannah Bananas traded baseball's fussy traditions for an oasis of pathological positivity.
WSJ. Magazine crowned the stadium-packing baseball circus this year's sports innovators for turning the summer game into a wholesome blend of athleticism and absurdity. In "Banana Ball," the umpire dances, the pitcher sings and the pinch hitter straps on stilts-all packed into a strict two-hour clock. The antidote to a cynical world might just be going a little Bananas, writes Jason Gay.
10. BEYOND THE NEWSROOM
-- Opinion: Anthropic on Monday rolled out the prospectus for its long-awaited initial public offering, and reading all the financial, regulatory and legal risks makes us wonder if it's trying to scare investors.
-- WSJ | Buy Side: From classic penny loafers to driving shoes and on-trend lug soles, these men's loafers are as stylish as they are professional.
ABOUT US
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Today's newsletter was curated and edited by Bharbi Hazarika and Gary Mitchell in collaboration with Editor in Chief Emma Tucker. Got a tip for us? Here's how to submit.
This article is a text version of a Wall Street Journal newsletter published earlier today.
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