Markets in Motion: Fed Clash, Big Tech Moves, and Crypto Power Plays

25th July 2025

Today saw a face-off between Donald Trump and Fed Chair Jerome Powell over renovation costs at the Fed’s headquarters, with Trump alleging overruns and Powell pushing back on the numbers. In the media world, the FCC approved the $8B Paramount-Skydance merger, though concerns around political influence and media bias continue to stir debate. Meanwhile, Elon Musk’s Starlink suffered a rare global outage due to internal software failure, briefly disconnecting tens of thousands of users. On Wall Street, Michael Saylor’s Strategy raised $2.8B via a unique “Stretch” preferred stock to fuel his aggressive Bitcoin buying spree. And Intel spooked investors with deeper-than-expected losses and a massive layoff plan under new CEO Lip-Bu Tan, as the company works to catch up in the fast-moving AI chip race. All in today’s Read It and Eat

Major Headlines

Trump and Powell Clash Over Fed Renovation Costs

In an unusual face-to-face moment on Thursday, President Donald Trump and Federal Reserve Chairman Jerome Powell exchanged pointed remarks over the cost of renovating the Fed’s Washington headquarters. Standing side by side in construction helmets, Trump claimed the renovation budget had ballooned from $2.7 billion to $3.1 billion a figure Powell immediately questioned.

"I'm not aware of that," Powell said, prompting Trump to respond, "It just came out." Powell pushed back, suggesting the president may have mistakenly included costs from a separate, previously completed project. “You just added in a third building,” Powell clarified. “We finished Martin five years ago.”

When asked what he’d typically do with a project manager facing similar overruns, Trump didn’t hold back: “I’d fire him,” he said bluntly. Powell, for his part, reassured onlookers that he didn’t expect any further budget surprises, adding that the Fed has reserves in place should any additional issues arise. Yahoo.Finance 

FCC Greenlights $8 Billion Paramount-Skydance Merger Amid Political Controversy

The FCC has officially approved an $8 billion merger between Paramount and Skydance Media, a move that reshapes the media landscape and brings major brands like CBS, Paramount Pictures, and Nickelodeon under one roof. The merger comes with some headline-grabbing commitments from Skydance, including promises to ensure a range of political viewpoints in programming and to appoint an independent third-party to handle bias complaints part of an effort to rebuild trust in the CBS brand, according to FCC Chairman Brendan Carr.

Skydance, owned by David Ellison, son of Oracle co-founder Larry Ellison, has also pledged not to implement diversity, equity, and inclusion (DEI) initiatives at the newly merged company. Shari Redstone, Paramount’s chair and a central figure in the media empire, will step down as her family's company, National Amusements, hands over control.

However, not everyone is on board. Commissioner Anna Gomez, the FCC’s lone Democrat, voted against the merger, voicing concern over recent events including Paramount’s $16 million settlement with Donald Trump regarding a "60 Minutes" segment and CBS’s surprise cancellation of The Late Show with Stephen Colbert. Critics, including lawmakers and the Writers Guild of America, worry that political pressure may have influenced corporate decisions.

As questions swirl around media independence and political influence, the merger is facing scrutiny from figures like Senators Elizabeth Warren and Adam Schiff. Warren, in an op-ed, even suggested the Colbert cancellation may have been part of an unofficial deal with the Trump administration. With a high-profile merger now moving forward, the industry and the public will be watching what happens next. Bloomberg 

Starlink Experiences Rare Global Outage Due to Internal Software Failure

Elon Musk’s Starlink satellite internet network experienced a rare and significant global outage on Thursday, temporarily disconnecting tens of thousands of users across the U.S. and Europe. The disruption began around 3 p.m. EDT and lasted roughly two and a half hours, with over 60,000 reports logged on outage-tracking site Downdetector. Starlink later confirmed the issue on X (formerly Twitter), attributing it to a failure in critical internal software services that power the core network.

Starlink’s VP of Engineering, Michael Nicolls, apologized for the interruption and said the team is working to identify and fix the root cause. Musk echoed the sentiment, assuring users SpaceX would ensure it doesn’t happen again. While the service has seen remarkable growth now boasting over 6 million users in 140+ countries experts noted this was one of Starlink’s most widespread and longest-lasting outages to date.

With SpaceX expanding its Starlink constellation and launching more powerful satellites to support services like direct-to-cell coverage with T-Mobile, speculation around the cause ranged from a software glitch to a possible cyberattack. Industry analysts drew parallels to the recent CrowdStrike incident that disrupted millions of Windows systems worldwide. It remains unclear if other SpaceX services like Starshield, the company’s military-focused network, were impacted. Reuters 

Michael Saylor Supercharges Bitcoin Holdings with Bold $2.8 Billion Deal

Michael Saylor is once again making waves on Wall Street this time with a bold new $2.8 billion move to expand his Bitcoin empire. His company, Strategy (formerly MicroStrategy), launched a unique type of preferred stock called “Stretch,” offering investors a generous 9% annual payout with no maturity date. Initially targeted at $500 million, demand was so strong that the offering ballooned to nearly six times that size.

This latest play reinforces Saylor’s now well-known strategy: raise capital through creative financial engineering to buy more Bitcoin now totaling around 600,000 coins, worth roughly $70 billion. Stretch is just the latest in a string of inventive offerings, joining earlier share classes like “Strike,” “Stride,” and “Strife,” and showing Saylor’s flair for bending traditional finance rules to his vision.

What sets Stretch apart is its built-in flexibility: Strategy can adjust the monthly dividend to help maintain the stock price around $100, giving the company more control but also injecting some uncertainty. Despite the complexity, investors were eager, with shares selling at $90 apiece and Strategy’s stock rising 0.5% on the news, up 43% for the year.

Saylor’s aggressive tactics have inspired a wave of imitators and helped legitimize Bitcoin treasury strategies for public companies. But some analysts caution that the gap between Strategy’s market value and the Bitcoin it holds is narrowing, suggesting that the enthusiasm might be cooling slightly.

Still, the success of this deal is a clear reminder: when it comes to mixing financial innovation with crypto conviction, Michael Saylor is in a league of his own. Bloomberg 

Intel Shares Drop as Deeper Losses and Major Layoffs Raise Investor Concerns

Intel is feeling the heat. The chipmaker’s stock slid nearly 6% in Frankfurt and about 4.6% in U.S. after-hours trading on Friday, after it forecast deeper-than-expected third-quarter losses and revealed plans for sweeping job cuts. The company is preparing to reduce its global workforce by over 25,000 roles by the end of 2025 roughly a 22% cut as part of a major restructuring under new CEO Lip-Bu Tan.

The latest results didn’t help ease concerns. Intel reported a $2.9 billion net loss for Q2, partly due to restructuring charges tied to layoffs. While revenue of $12.9 billion narrowly beat expectations, the outlook for the next quarter remains gloomy, with projected revenue between $12.6 billion and $13.6 billion. The company also confirmed it’s scaling back or halting factory plans in Germany, Poland, and the U.S., consolidating operations elsewhere to cut costs.

CEO Tan, who stepped in earlier this year, has a tough turnaround ahead. Intel is trying to regain its footing in a semiconductor market that’s rapidly pivoting toward AI and advanced chips spaces currently dominated by competitors like Nvidia and AMD. Tan emphasized a more disciplined financial approach, stating, “There are no more blank checks,” and reaffirmed Intel’s goal of restoring profitability and shareholder value.

Analysts remain cautious. Bernstein and BofA Securities both pointed to long-term challenges, especially in AI and CPU markets, where rivals have taken the lead. While some companies see potential in Intel’s next-gen chip technology and a possible PC refresh cycle, the consensus is that the path forward will be bumpy. For now, investors are waiting to see if Tan’s tough choices will pay off. CNBC 

Minor Headlines

• Puma Shares Tumble Amid Full-Year Loss Forecast and U.S. Tariff Concerns. Reuters 

• Goldman Sachs, J.P. Morgan Revise ECB Rate Cut Outlooks Citing Stronger EU Economy, Possible U.S. Deal. Bloomberg 

• Starbucks to Launch Free Study Spaces in China to Attract More Customers. Bloomberg 

• U.S. Launches Probe Into Harvard’s Program for Foreign Scholars. Bloomberg 

• U.S. Bars AI Firms with ‘Ideological Bias’ from Federal Contracts. Financial Times 

• Private Equity Firm GTCR in Talks to Acquire Prepaid Card Provider Blackhawk. Bloomberg 

• Google Secures $1.2 Billion Cloud Deal with ServiceNow. Bloomberg 

• Samsung Looks Beyond Google’s Gemini for Broader Smartphone AI Integration. Bloomberg 

• McKinsey Bars China Division from Working on Generative AI Projects. Reuters 

Earnings 

• Alphabet tops Q2 expectations with strong cloud and ad growth, raises CapEx outlook to fuel AI strategy. CNBC 

• Tesla misses Q2 targets as revenue slips again; warns of tough quarters ahead amid political pressure and higher tariffs. CNBC 

• AT&T beats Q2 estimates on strong wireless subscriber growth, but maintains cautious full-year profit outlook. Bloomberg 

• IBM posts Q2 earnings beat despite software slowdown; remains upbeat on M&A and unfazed by trade tensions. CNBC 

• Chipotle meets profit forecasts but falls short on revenue, trims same-store sales outlook as traffic declines. CNBC

• General Dynamics beats Q2 estimates on marine and aerospace strength, though defense revenue hit by contract cuts. Reuters 

• Deutsche Bank beats Q2 earnings despite M&A slowdown, as lower legal costs drive highest profit since 2007. Reuters 

Gen Z Word of the Day 

Drag

If you drag someone, you're criticizing or making fun of them. This can be equated to roasting someone.