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  • ✍🏼 Google Poaches AI Company CEO

✍🏼 Google Poaches AI Company CEO

+ Ford Sets Recall Record With 88 in 2025, Most Ever in a Single Year

July 12, 2025

Good afternoon! Bill Ackman made his pro tennis debut this week, teaming up with Jack Sock at the Hall of Fame Open and losing in straight sets. Ackman called the match a dream come true but admitted to freezing under pressure and battling stage fright throughout.

The response? Brutal. Andy Roddick called it “the biggest joke” he’s ever seen in pro tennis, while others accused the event of selling integrity for attention. Critics say a sanctioned ATP match isn’t the place for a billionaire bucket list.

MARKETS

*Stock data as of market close*

  • Stocks slipped Friday after Trump threatened a 35% tariff on Canadian imports, sparking fresh trade jitters. The Dow fell 279 points, the S&P 500 dropped 0.33%, and the Nasdaq dipped 0.22% as investors took a cautious stance.

  • It was a classic summer Friday fade. The S&P pulled back from Thursday’s record high, but the Nasdaq still managed to notch a weekly gain, proving tech’s resilience even with the heat and headline noise.

STOCKS
Winners & Losers

What’s up 📈

  • Red Cat, Kratos Defense & Security, and AeroVironment soared 26.40%, 11.76%, and 11.04%, respectively, after the Pentagon ordered an acceleration in U.S. drone production. ($RCAT, $KTOS, $AVAV)

  • Levi Strauss rose 11.25% after topping Q2 estimates, raising its dividend, and boosting full-year guidance. ($LEVI)

  • AMC Entertainment climbed 11% after Wedbush upgraded the stock, citing a stronger film slate and stabilization in share issuance. ($AMC)

  • Performance Food Group jumped 4.84% following reports that US Foods is exploring a takeover that could create the top U.S. foodservice distributor. ($PFGC)

  • PriceSmart gained more than 5.33% after Q3 earnings beat expectations and the company announced potential expansion into Chile. ($PSMT)

  • BP rose 3.55% after projecting strong Q2 oil trading results and higher upstream production from U.S. operations. ($BP)

  • Kraft Heinz gained 2.53% after a report revealed it’s considering a breakup, though not into its original Kraft and Heinz parts. ($KHC)

What’s down 📉

  • Sunrun fell 7% to close a volatile week, reversing gains from earlier sessions. ($RUN)

  • Penn Entertainment slid 7.62% after Iowa and Indiana both reported year-over-year declines in gaming revenue, with Penn’s regional results showing double-digit drops. ($PENN)

  • United Airlines and Delta took a breather, slipping 4.34% and 0.23%, respectively, after Thursday’s post-earnings rally. ($UAL, $DAL)

AI
Google Hires Windsurf Talent After OpenAI Deal Collapses

In a plot twist worthy of Silicon Valley drama, Google has hired the CEO and top talent from Windsurf, an AI coding startup once on track to be acquired by OpenAI for $3 billion. The acquisition fell through amid tensions between OpenAI and its largest backer, Microsoft, which would have gained access to Windsurf’s tech under its existing agreements.

Instead, Google swooped in, securing a non-exclusive license to Windsurf’s tech and adding CEO Varun Mohan, co-founder Douglas Chen, and a small team to its DeepMind unit. Windsurf’s 250-person team will largely stay intact, now led by interim CEO Jeff Wang. The startup’s tools, known for enabling “vibe coding,” remain available for enterprise customers—but without its founding stars, its long-term trajectory is suddenly murkier.

AI Turf Wars Heat Up

The move is the latest salvo in the AI talent war as tech giants scramble to dominate the coding assistant space. Windsurf, which hit $100 million ARR earlier this year, joins a growing list of startups that have been reverse-acquihired Google did the same with Character.AI, and Microsoft snapped up Inflection’s leadership. With Google integrating Windsurf’s talent into its Gemini and agentic coding efforts, the battle to build the best AI-powered developer tools just got more intense.

Bottom line: OpenAI lost a promising startup, Google avoided regulatory headaches, and Windsurf is now straddling two worlds with big enterprise dreams, but no founders at the helm.

NEWS
Market Movements

  • 🎮 Roblox game sales turn teen devs into millionaires: A 19-year-old creator sold Blue Lock: Rivals a hit anime-style soccer game—for over $3 million after it reached 1M concurrent players and generated $5M/month for Roblox. The sale is part of a broader trend, with seven of Roblox’s 15 top-earning games recently acquired. New policies now allow formal game transfers, and buyers like Do Big and Voldex are fueling a secondary market boom. ($RBLX)

  • 🛃 Trump floats 15–35% blanket tariffs: S&P 500 futures fell after Trump proposed new tariffs: 15–20% across the board, plus a surprise 35% hit to Canadian imports (with some USMCA exceptions). Investors are now weighing a shift from the “TACO” (Trump Always Chickens Out) thesis to a “TART” (Trump Always Raises Tariffs) outlook. Tariff volatility is once again back in play. ($SPY)

  • 👖 Levi’s rallies as it shrugs off tariff risks: Levi’s stock jumped over 11% after beating earnings expectations and raising full-year guidance. Bank of America raised its price target, citing margin expansion and strong EPS momentum. The company’s projections assume 30% tariffs on Chinese imports, but management signaled confidence even in that environment. ($LEVI)

  • 🚗 Nio rises on new Tesla rival launch: Chinese EV maker Nio jumped nearly 6% after kicking off presales for its new three-row Onvo L90 SUV—priced well below Tesla’s Model Y. The $27K price tag undercuts rivals and drew strong investor interest, with options volume spiking. Citi called it the cheapest large-size SUV in its class. ($NIO, $TSLA)

  • 🚕 Tesla robotaxi tests begin in Phoenix—not California: Elon Musk said Tesla’s robotaxi service will expand “within a month or two,” but the company has only applied for testing permits in Phoenix, not its home state of California. Regulators in CA confirmed Tesla hasn’t submitted applications, despite Musk’s previous hints. Meanwhile, Tesla has quietly launched early influencer trials in Austin. ($TSLA, $GOOGL)

  • 🥗 Cava and Sweetgreen battle for Chipotle’s crown: Fast-casual brands Cava and Sweetgreen are trying to become the next Chipotle, but only one is winning. Cava boasts profits and a $10B+ market cap with plans for 1,000 stores. Sweetgreen, despite $17 salads and flashy robot kitchens, remains unprofitable. Investors are questioning whether we’ve hit “peak slop bowl.” ($CAVA, $SG, $CMG)

  • 🎥 IMAX set for best box office year ever: IMAX is tracking toward a $1.2 billion year, driven by premium format demand, exclusive camera tech, and plans to open 500 new theaters worldwide. ($IMAX)

  • 📸 Intel completes RealSense spinoff: Intel has spun off its RealSense unit, which raised $50 million to grow its AI-powered 3D vision systems for robotics and devices. ($INTC)

  • 🎮 Video game actors approve new contract: A union representing video game actors ended its 11-month strike after approving a deal with EA, Activision, and Warner Bros. Games that includes consent and compensation for digital replicas. ($EA, $MSFT, $WBD)

  • ✈️ Delta to expand premium tier options: Delta Air Lines is considering new segmentation for its premium cabins as it reported $10.6 billion in H1 premium revenue, up 6%. ($DAL)

  • 📵 Nokia phone maker exits U.S. market: HMD Global, the maker of Nokia phones, is pulling out of the U.S. due to economic and geopolitical challenges and has ceased domestic sales. ($NOK)

AUTO
Ford Sets Recall Record With 88 in 2025, Most Ever in a Single Year

Ford just hit a milestone it definitely didn’t want. The automaker has now issued 88 safety recalls in the first six months of 2025, more than any car company has ever recorded in a full year. For perspective, the runner-up, Forest River, an RV maker, has just 21. That’s not a typo.

And it’s not slowing down. Ford’s latest recall affects 850,000 trucks and SUVs over a fuel pump issue that could stall engines mid-drive. About 37 percent of this year’s recalls stem from an internal audit launched to recheck fixes made through software updates. The irony is that Ford says this barrage is actually a sign of progress, part of a plan to improve quality by finding problems faster. Still, recall-related costs topped 1.46 billion dollars in Q1 alone, or about 16 million dollars per day.

Fixing Forward or Just Spinning Wheels

Executives are betting that the short-term pain will lead to long-term gain. Ford has bulked up its safety team, rolled out new QA protocols, and tied 70 percent of executive bonuses to quality improvements. But Wall Street isn’t impressed just yet. Shares of Ford fell 1.09 percent Friday and remain stuck in neutral. GM, by contrast, is staying out of the recall spotlight for now.

The company insists things are turning around. Four new models just won J D Power quality awards, and Ford says the increased recall count shows it’s being proactive, not reckless. But investors are clearly asking how many fixes it takes to fix the narrative.

Bottom line
Ford’s strategy of aggressive self-policing might pay off down the road, but right now, it’s driving through potholes at full speed.

Calendar
On The Horizon

Next Week

Next week isn’t easing into anything. It kicks off Tuesday with the main event: June CPI. That’s joined by industrial production data to keep economists on their toes. Wednesday follows with PPI and the Fed’s Beige Book, then Thursday drops a full stack: jobless claims, retail sales, import prices, and the homebuilder sentiment index. Friday rounds things out with consumer sentiment and housing starts.

It’s also the unofficial return of earnings chaos. Here’s who’s stepping up to the mic:

Tuesday: JPMorgan, BlackRock, Citigroup, Wells Fargo, Albertsons, JB Hunt
Wednesday: Goldman Sachs, Bank of America, Morgan Stanley, Johnson & Johnson, ASML, Progressive, T-Mobile, United Airlines, Discover, Alcoa
Thursday: PepsiCo, Netflix, Abbott, Cintas, US Bancorp, Travelers, Citizens, Fifth Third, Interactive Brokers
Friday: AmEx, Charles Schwab, 3M, Unilever, Schlumberger, Ally, Trump Media & Technology Group

NEWS
The Daily Rundown

  • 🔥 Bitcoin Breaks Records (Again): Bitcoin smashed through another all-time high yesterday, topping $118,000 after record ETF inflows and growing institutional optimism. The surge comes just two days after its last peak, as regulatory clarity fuels retail and institutional demand alike.

  • ⚖️ Judge Blocks Birthright Citizenship Ban: A federal judge in New Hampshire temporarily halted President Trump’s attempt to end birthright citizenship. Though the Supreme Court limited nationwide injunctions, the class-action nature of this case allowed the exception—keeping the legal battle alive.

  • 🤖 Grok AI Headed to Teslas: Elon Musk said his AI chatbot Grok will be installed in Teslas by next week, despite controversy over antisemitic responses in earlier versions. The update follows the release of Grok 4, as Musk eyes competition with automakers like VW that already use ChatGPT.

  • 🛰 Varda Raises $187M for Space Drug Factory: Space startup Varda secured $187 million to expand its orbital pharma missions. Its capsules produce drugs in low-gravity, including a superior version of HIV med ritonavir. Merck and others are now exploring space-based medicine too.

  • 🍵 Matcha Faces Global Shortage: Record demand and weak harvests have drained matcha supplies, with Kyoto’s heat waves hurting Japan’s tencha output. Western demand has surged, but new crops won’t be ready for five years—so your $7 green latte may soon cost more.

  • 🎥 Superman Reboot Eyes $200M Debut: James Gunn’s new Superman film, starring David Corenswet, is projected to earn $200M globally in its opening weekend. The reboot has a strong 83% Rotten Tomatoes score and could reinvigorate DC’s faltering cinematic universe.

    retain young Wall Street talent amid rising competition and early offers.

  • 🚘 Canadian Travel to U.S. Plunges: Canadian cross-border car trips to the U.S. dropped 33% last month lowest since 2017 as tensions over tariffs and sovereignty discourage travel. Analysts say it reflects deepening political unease.

  • 🎤 Oasis Concerts Tighten Security: Oasis reunion shows in Manchester are stepping up security after TikTok videos showed how to sneak in. Organizers are adding fences and patrols to stop fans from pulling a Glastonbury-style gatecrash.

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