Table of Contents

• US Economy

• Ford

• Revolut

Top Stories Today

Economy & Finance

US Economy

US economic growth accelerated in the last quarter, with GDP rising 2.8% from April to June, surpassing expectations and significantly higher than the 1.4% growth in the first quarter. This resilience, despite high interest rates and persistent inflation, has heightened scrutiny amid the presidential election campaign. President Joe Biden highlighted the economy's strength, while former President Donald Trump criticized Biden's economic policies. Federal Reserve policymakers are now considering when to cut interest rates as inflation shows signs of decreasing, aiming for a "soft landing" scenario where the economy slows without entering a recession.

Ford

Ford's stock plunged 16% after the company missed second-quarter profit estimates and did not increase its full-year profit guidance, unlike its rival GM. Ford reported $47.8 billion in revenue, beating estimates, but posted adjusted EPS of $0.47, below the expected $0.67. Despite maintaining its full-year EBIT guidance, Ford raised its free cash flow forecast. CEO Jim Farley emphasized the progress of the Ford+ strategy, which segments the business into Ford Blue (traditional vehicles), Model e (EVs), and Ford Pro (commercial vehicles). The Model e unit faced significant losses, while Ford Pro showed strong profits. Ford’s EV sales surged, though the F-Series pickup sales fell slightly due to production delays.

Technology

Revolut

British fintech company Revolut has received a banking license with restrictions from the U.K.’s Prudential Regulation Authority after a three-year wait. This license allows Revolut to build its U.K. banking infrastructure and eventually offer products like loans and credit cards. Revolut first applied for this license in 2021 but faced delays due to its share structure, which has since been resolved in cooperation with investor SoftBank. The license comes after Revolut reported strong financials for 2023, with a pre-tax profit of £438 million and revenues rising by 95% to £1.8 billion.

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