Market Beats | Meta Hires More Apple AI Talent to Boost Superintelligence Team; Amex Spending Rises in Q2 as Affluent Clients Keep Spending; US Housing Starts Rebound in June on Multifamily Surge; University of California Dumps Hedge Funds; Crypto Market Cap Tops $4 Trillion; Amazon Warehouse-Backed Bonds Drop on Repayment Concerns

—— Meta Hires More Apple AI Talent to Boost Superintelligence Team; Amex Spending Rises in Q2 as Affluent Clients Keep Spending; US Housing Starts Rebound in June on Multifamily Surge; University of California Dumps Hedge Funds; Crypto Market Cap Tops $4 Trillion; Amazon Warehouse-Backed Bonds Drop on Repayment Concerns

1. Meta Hires More Apple AI Talent to Boost Superintelligence Team

Meta Platforms Inc. has hired two key artificial intelligence researchers from Apple Inc., deepening its push to build a world-leading AI team just weeks after recruiting their former boss.

Mark Lee and Tom Gunter, both formerly at Apple, are joining Meta’s Superintelligence Labs team, according to sources familiar with the matter. Lee has already started at Meta, while Gunter is expected to begin soon. The hires have not been officially announced.

The move follows Meta’s high-profile poaching of Ruoming Pang, the head of Apple’s large language model team, with a compensation package reportedly exceeding $200 million. Both Lee and Gunter previously worked closely with Pang at Apple.

As competition for AI talent heats up across Silicon Valley, Meta has been especially aggressive in its recruiting strategy. CEO Mark Zuckerberg has made AI his top priority, pouring billions into data centers and workforce expansion to catch up with rivals like OpenAI and Google.

The addition of Lee and Gunter marks another bold step in Meta’s effort to build general-purpose AI capabilities through its Superintelligence Labs division.

______

2. Amex Spending Rises in Q2 as Affluent Clients Keep Spending

American Express Co. reported a 14% increase in expenses during the second quarter, reaching $12.9 billion—above analysts’ estimates of $12.7 billion. The rise was driven by new risk-management investments and elevated customer engagement costs, reflecting higher cardholder spending and use of travel benefits, the company said on Friday.

Despite ongoing economic uncertainty, Amex’s affluent customer base continued to spend. Billed business—total transaction volume—reached $416.3 billion on a currency-adjusted basis, beating the consensus forecast of $412.8 billion.

“We saw record card member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class,” said CEO Steve Squeri.

Total revenue excluding interest expense rose 9.3% to $17.9 billion, driven by increased card usage, higher net interest income from revolving balances, and growth in card fees.

Still, Amex shares fell 3.2% by late morning trading in New York. Year-to-date, the stock is up 2.9%, trailing the 8.8% gain in the S&P 500 Financials Index.

______

3. US Housing Starts Rebound in June on Multifamily Surge

US housing starts rebounded in June, rising 4.6% to a 1.32 million annualized rate, after a nearly 10% drop in May, according to government data released Friday. The bounce was driven by a sharp increase in multifamily construction, while the single-family market continued to weaken.

Builders broke ground on multifamily units at a 30% higher rate than in May, reversing a similar-sized slump. However, single-family starts fell to an annualized pace of 883,000—one of the slowest rates since early 2023.

The figures reflect a housing market under pressure. Homebuilders are grappling with elevated inventories, now at their highest in over 17 years, and affordability challenges amid mortgage rates near 7%. As more homeowners come to terms with higher borrowing costs and list their homes, builders face rising competition from the resale market.

To move excess inventory, developers have increasingly resorted to price cuts and sales incentives, reducing the urgency to start new projects despite broader housing demand.

______

4. University of California Dumps Hedge Funds

The University of California’s $190 billion investment arm has exited hedge funds, criticizing the industry for failing to deliver on its core promise of risk mitigation during market crises.

UC Investments confirmed Tuesday that it had approved a plan to reallocate its 10% “absolute return” portfolio—its hedge fund investments—into public equities, marking the conclusion of a divestment process that began five years ago.

Chief Investment Officer Jagdeep Singh Bachher sharply rebuked the hedge fund sector, calling it a “fantastic business” for managers on Wall Street who “charge great fees” and “buy all the art and private jets.” But he said the funds consistently failed the university in periods of volatility.

“In 1999, 2008, and 2020, hedge funds didn’t hedge us,” Bachher said. “They exposed us to the opposite kind of risk, which actually meant they hurt us.”

The decision reflects broader concern among institutional investors about the high fees and inconsistent returns of hedge fund investments—especially during periods when downside protection is most needed.

______

5. Crypto Market Cap Tops $4 Trillion

The total market value of cryptoassets surpassed $4 trillion for the first time, fueled by a broad rally in altcoins and momentum from major US regulatory developments.

Options market activity suggests traders are increasingly betting on further gains in the weeks ahead.

“Bitcoin’s path to $150,000 looks increasingly inevitable,” said Fadi Aboualfa, head of research at crypto custodian Copper. Bitcoin now makes up around 60% of the entire digital asset market.

The milestone came shortly after the passage of the first-ever federal legislation on stablecoins — a flagship accomplishment during what lawmakers have called “Crypto Week.” Backed by Republicans and championed by President Donald Trump, the bill creates a regulatory framework for dollar-linked stablecoins, aiming to legitimize the $265 billion market.

Analysts at Citigroup forecast that stablecoins could expand to $3.7 trillion by 2030.

______

6. Amazon Warehouse-Backed Bonds Drop on Repayment Concerns

Investors sold off about $2.7 billion of bonds backed by warehouses leased to Amazon.com Inc., reflecting mounting fears that bondholders may not be repaid in full after a similar deal ran into refinancing trouble earlier this week.

The bonds, issued by Affinius Capital, fell as low as 81 cents on the dollar Wednesday, signaling that markets expect potential losses. Separately, Fortress Investment Group struggled to refinance $2 billion in bonds also backed by Amazon warehouse leases, facing a crucial deadline this week.

Both deals are being hit by rising interest rates. Investors in Affinius’ bonds — originally sold in 2021 — face steep interest rate increases if the issuer fails to repay principal by October 2026.

If Affinius opts to extend the repayment period and pay the higher interest, bondholders may face delayed principal recovery, putting pressure on their portfolios.

______

7. Mercedes-Benz Q2 Sales Drop 9% as Tariffs Hit US and China Demand

Mercedes-Benz reported a 9% drop in global car sales for the second quarter of 2025, totaling 453,700 vehicles, as trade tensions and tariffs driven by President Donald Trump’s policies weighed on key markets. Sales declined 12% in the US and 19% in China, where import duties on American-made SUVs further dampened demand.

Although the numbers slightly exceeded company guidance and improved modestly over Q1, analysts say they underscore the growing toll of tariffs. Mercedes produces large SUV models like the GLE and GLS in Alabama and exports them to China — now subject to a 10% retaliatory tariff by Beijing.

The company also continues to struggle in the EV market, with EV sales down 24% year-on-year. Competition from local Chinese manufacturers like BYD is squeezing foreign brands.

However, Mercedes noted encouraging early interest in its upcoming CLA electric sedan, based on a new EV-first platform focused on maximizing range.

______