Investors reacted negatively to Google's and Tesla's plans for a significant increase in expenses related to artificial intelligence development. Following the release of second-quarter financial reports, Alphabet's shares, Google's parent company, fell by approximately 4% in pre-market trading, while Tesla's stock lost more than 5.7%.
The main reason for this sell-off was the revised capital expenditure forecasts. Alphabet raised its investment plan for 2026 to $195–205 billion, higher than the initial expectation of $180–190 billion. Furthermore, the company warned that the investment volume in 2027 would be even greater.
An additional factor affecting Alphabet's shares was the delay in the release of Gemini 3.5 Pro and the lack of significant product announcements.
Tesla also announced a notable increase in expenses. During the second quarter, the company's capital expenditures increased by 142% compared to the same period last year, reaching $5.79 billion. According to its own estimates, this figure will exceed $25 billion by the end of the year.
Elon Musk, head of Tesla, explained such large investments by stating that 2026 is defined as a period of 'massive capital investment.' He expressed confidence that the company will achieve 'the best return on cost ever seen by the company.' These funds, he said, are being directed towards creating its own semiconductors and launching the first production line of humanoid robots Optimus.
In Alphabet's case, the rise in expenses is attributed to the need to cover a shortage of computing power that arose due to the rapid increase in demand for AI-based services.
Despite the market reaction, the financial results of both corporations demonstrated resilience. Google Cloud revenue grew by 82%, reaching $24.8 billion, while the operating margin reached 35.6%. Tesla's automotive segment increased its revenue by 23%, bringing it to $20.52 billion.
It was previously reported that Google signed a contract with SpaceX worth $920 million monthly. Starting in October, Google will rent 110 thousand Nvidia processors in Elon Musk's data centers to support the Gemini Enterprise platform. This deal took place just before SpaceX's IPO, which is valued at $1.75 trillion. Meanwhile, the company is forced to provide its computing resources to competitors due to the losses in its own AI division.
Fifteen young entrepreneurs from South Africa have been given the opportunity to place their products on the shelves of Woolworths stores in Johannesburg and Cape Town as part of the Youth Makers 2026 program. This initiative transforms small side jobs into full-fledged retail opportunities.
Visitors can purchase products from this new wave of entrepreneurs during the Woolworths Youth Makers demonstration. In Johannesburg, the showcase will take place at Mall of Africa from July 22 to August 2, with a meeting with the founders scheduled for August 1 and 2. In Cape Town, the event will be held at Cavendish Square from August 26 to September 6, with a meeting with the founders set for September 5 and 6.
The demonstration is the final stage of the annual Woolworths Youth Makers program, which helps young businesspeople transform growing enterprises into retail-ready brands. The program is open to South African citizens aged 18 to 35 who own businesses in the food, beauty, fashion, home goods, and related sectors.
This year, the competition attracted hundreds of applications, after which 24 finalists were selected to present their projects to the Woolworths judging panel. Founders were evaluated based on criteria such as creativity, authenticity, product quality, business viability, and growth potential. Ultimately, fifteen entrepreneurs were chosen, representing sectors such as fashion, beauty, wellness, agriculture, publishing, design, and home goods.
Each winner received support from Woolworths retail experts, consultations from business advisors, marketing assistance, a grant of over R130,000, and the right to sell their products directly to Woolworths customers in flagship stores across the country.
The winning companies cover a wide range of fields—from fashion and ceramics to agriculture and children's book publishing. Among them are: Patrick Ferguson Designs, offering fashion inspired by African craftsmanship; UBaliwe, creating handmade ceramics; Patns by Buhle, developing African patterns; KwaDube Essentials, specializing in luxury home fragrances; Hide and Suede, producing leather goods; Marapyane Farms, growing fresh vegetables; Walk Fresh, a sneaker care brand; E_mania, a sustainable fashion production studio; VICTORI, offering African streetwear; WELL N WELL, producing plant-based almond yogurts; Girl Boss Africa, manufacturing natural cosmetics; Glolooks Kiddies, creating hair care products for children; Maru Maphiri Group, publishing educational books; and Noac, producing slow fashion women's wear.
Although the grant helped the founders invest in their businesses, many participants believe that the mentorship support provided the greatest benefit. Working alongside Woolworths experts and business consultants, the founders refined all aspects—from pricing and production to quality control and retail readiness. The program focused on helping entrepreneurs build scalable and sustainable businesses, rather than just creating popular products.
The first Youth Makers demonstration took place at Woolworths Gateway in Durban in late June and early July. According to Woolworths, customers purchased over 300 products, generating revenue exceeding R200,000 for the participating companies. Many founders also noted an increase in online sales following the event. Zindi Mqododela, Woolworths Director of Corporate Social Responsibility, stated that 'the huge success of the Durban showcase confirms that the Youth Makers model works. Access to mentorship, funding, and the Woolworths customer base can make a significant contribution to small businesses.'
Although the issue of youth unemployment in South Africa cannot be solved by one retail program, Youth Makers is one of the few initiatives that goes beyond simply providing mentorship and funding, giving young entrepreneurs access to customers—something small businesses often lack. For shoppers, it is a chance to discover local brands before they become famous, and for founders, it is an opportunity to test their business in one of the country's largest retail environments and transition from a side hustle to a sustainable venture.
Uber announced the layoff of ten percent of its customer service employees, justifying this reduction in staff by the growing focus on the adoption of Artificial Intelligence (AI), as reported by Bloomberg.
An Uber spokesperson told the publication that the layoffs were carried out with the aim of 'simplifying operations, strengthening in-person collaboration, and continuing the incorporation of AI.'
The division affected by these cuts is Community Operations, which functions as a global customer support network, serving various languages and Uber businesses.
This area has specialized teams in specific regions and countries, interacting directly with partner drivers and local businesses. Megha Yethadka, Uber's Vice President of Global Community Operations, explained the need for this change in an internal communication to her team, stating that 'our organization has become too complex and siloed.'
Yethadka emphasized that although the department has made certain advances in the use of AI, an 'effective organization is needed to overlay AI' to expand its use on a larger scale.
Although Bloomberg did not specify the exact generative AI functions that motivated the layoffs, AI agents focused on customer service have shown notable improvements recently.
AI voice technology has constantly evolved in its ability to interact naturally with users, capable of understanding and responding to both requests and complaints. In addition to the announcement of cuts, Uber also required employees who worked remotely to return to central offices (hubs), aligning with the company's policy of returning to in-person work. The company had previously signaled a slowdown in hiring due to the use of AI.
With this decision, Uber joins a growing number of corporations that use the advancement of AI as a reason for layoffs. In June, Oracle laid off twenty-one thousand employees worldwide, citing the 'adoption and implementation of AI technologies.'
In April, Snap terminated about one thousand jobs, supposedly to be replaced by AI-based solutions.
More recently, Meta also reduced its workforce by ten percent, impacting eight thousand positions, and relocated seven thousand employees to new units dedicated to developing AI tools.
The International Monetary Fund (IMF) assessed that the impact of tariffs imposed by the United States on the Brazilian economy tends to be limited. This containment is due to the fact that the US represents 11% of Brazilian exports, and several products, such as coffee, beef, energy, and aircraft parts, were exempt from the surcharge.
The report indicated that in August 2025, North American tariffs on most Brazilian imports reached 50%, raising the effective rate to 29.1%, a level higher than the average applied to other nations. However, the IMF highlighted that there were reductions in rates in November 2025 and February 2026, which brought the effective rate down to 12.2%.
Although Brazilian exports to the US fell after the tariff increase in 2025, the international body observed a gradual recovery starting in November of the same year. Part of this recovery capacity is attributed to increased soybean sales to China and growing exports to other regions.
Despite the scenario of trade tensions, the IMF emphasized that the Brazilian external sector maintains factors of solidity. Among these factors are international reserves, which totaled 358 billion dollars at the end of 2025, and the existence of a flexible exchange rate regime. The IMF also mentioned that Brazil has been seeking to diversify its trading partners, citing the Mercosur-European Union agreement, already ratified and in the implementation phase, as an element that can strengthen economic resilience against external shocks.
The IMF warned, however, that an intensification of global trade disputes could affect foreign investment and international trade. The agricultural sector is considered particularly vulnerable to supply chain disruptions, especially concerning fertilizers. The Fund stressed that the primary risk lies in the escalation of geopolitical tensions, notably in the Middle East, which could raise inflation and, due to tighter financial conditions and lower global demand, decrease economic activity.
In the overall analysis, the institution maintained a growth forecast of 2.4% for the Brazilian economy in 2026 and 2.5% in the medium term, classifying the country as 'notably resilient' to external shocks, despite existing fiscal and productivity challenges.
To improve the situation, the IMF suggested that 'a more ambitious fiscal effort' would be necessary to put public debt on a consistent downward trajectory and free up resources for priority investments, proposing, for example, the reduction of tax benefits deemed ineffective. The Fund assesses that the current fiscal adjustment is insufficient to reduce public debt and advocates for complementary measures, such as reserving part of the additional revenue from oil and making the budget less rigid.
According to the Fund, the gross debt of the Brazilian Government should reach 97.8% of GDP in 2026 and stabilize at around 106% of GDP by 2035, using the institution's methodology. Furthermore, the report projects that inflation will reach 5.6% by the end of 2026, slowly converging to the 3% target only by mid-2028.
In response to the report, the Brazilian Central Bank stated that the IMF team recognizes the role played by the inflation targeting regime and the country's economic policy framework.
