WORLD

Powell on AI Spending: “They Actually Have Earnings.” Is There Really No AI Bubble?

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8 months ago

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Powell Distinguishes AI Boom from Dot-Com Bubble

Powell Distinguishes AI Boom from Dot-Com Bubble, Citing Profitable Firms

Federal Reserve Chair Jerome Powell Emphasizes Real Earnings

Federal Reserve Chair Jerome Powell recently addressed concerns regarding the current boom in artificial intelligence (AI), suggesting it differs significantly from the dot-com bubble of the late 1990s. He highlighted that the leading companies in today’s AI landscape are generating real earnings, a key distinction from the speculative ventures of the past.

Major Firms Investing in AI

Powell did not specify individual companies but referenced major players such as Microsoft, Alphabet, Amazon, and Nvidia, all of which are reporting strong profits while investing heavily in AI infrastructure. For instance, Microsoft reported over $27 billion in quarterly profit, with a significant portion directed toward AI-related data centers. Alphabet’s profits reached nearly $35 billion last quarter, with plans to increase its investment in AI to over $90 billion by 2025.

Concerns Over AI Spending

Despite the bullish outlook, some analysts caution that the current capital intensity in AI spending may not be sustainable. While leading firms are profitable, many businesses adopting AI technologies are still struggling to achieve measurable financial benefits. Critics point out that only a small percentage of companies report clear returns from their AI initiatives.

The Debate: Justified Spending or Bubble?

The debate continues as to whether AI spending is justified or if it risks becoming a bubble. As the landscape evolves, investors are urged to differentiate between AI investments that deliver immediate value and those that rely on future returns. Timing remains a critical factor for long-term investors, as market dynamics can influence entry points significantly.

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WORLD

Millions Across North America Face Historic Heatwave as Record Temperatures Shift East

Millions in Canada and the US face record-breaking heat as a massive thermal dome moves east. Find updates on temperature records and weather warnings.

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54 minutes ago

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July 15, 2026

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A Record-Breaking Thermal Dome

Millions of people across Canada and the United States are grappling with a relentless heatwave as a powerful area of high pressure migrates eastward. Extreme heat warnings have been issued for vast stretches of Ontario, Quebec, and Manitoba, alongside significant portions of the U.S. Midwest and Northeast. The intensity of this weather system has already shattered historical benchmarks, with Billings, Montana, reaching a staggering 111°F and Salt Lake City, Utah, peaking at 109°F.

Infrastructure Strained as Cities Sizzle

In Toronto, temperatures soared to 98°F (36°C) on Tuesday, narrowly missing all-time records but creating significant logistical challenges. Commuter rail services faced delays due to heat-related track expansion, while Environment Canada issued alerts regarding deteriorating air quality caused by the stagnant, humid air mass. The situation is equally dire in the United States, where major metropolitan hubs including New York City, Boston, and Philadelphia remain under heat advisories. Forecasters predict that Washington D.C. could see temperatures as high as 102°F, with oppressive humidity pushing the heat index even further.

Relief and Risks on the Horizon

While the heat remains the immediate threat, a transition is expected by the weekend. A cold front moving through central and eastern Canada is projected to lower temperatures, but this relief comes with its own hazards. Meteorologists are tracking the potential for severe thunderstorms across North America’s eastern seaboard, including New England. These storms are expected to break the worst of the thermal dome, though experts warn that temperatures in many regions will likely stay above seasonal norms.

The Growing Impact of Climate Change

This latest weather event follows a deadly July 4th heatwave that was linked to at least 44 deaths in the United States. Climate scientists emphasize that these episodes are no longer statistical outliers. Human-induced climate change has warmed the planet by approximately 1.1°C since the industrial era, leading to heatwaves that are more frequent, more intense, and significantly longer-lasting. Without drastic global emissions cuts, such extreme weather events are expected to become the new summer standard.

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Middle East Conflict

Mojtaba Khamenei Vows ‘Inevitable’ Revenge Against US as Trump Threatens to Decimate Iran

Iran’s new Supreme Leader Mojtaba Khamenei vows revenge for his father’s death, prompting Donald Trump to threaten the total destruction of Iran.

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3 days ago

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July 11, 2026

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A Vow of Vengeance from the Shadows

In a rare and ominous communication, Iran’s newly proclaimed Supreme Leader, Mojtaba Khamenei, has issued a written decree vowing that the assassination of his father, Ayatollah Ali Khamenei, will be avenged “soon.” The message, released via his official Telegram channel during funeral ceremonies in Mashhad, described the retaliation as the “will of the nation” and an “inevitable” divine mission that would target a specific list of “disgraced killers.”

The Mystery of the New Leader

Mojtaba Khamenei has remained entirely out of the public eye since being appointed by a clerical assembly in early March, following the February 28 US-Israeli airstrikes that killed his predecessor. Reports suggest the new leader may have suffered disfiguring injuries and limb damage in those same strikes, leading to his recovery in a secure, undisclosed location. Despite his physical absence, his written statements have taken an increasingly aggressive tone, suggesting that the pursuit of revenge transcends the personal existence of any single official.

Trump Issues Massive Retaliation Warning

The rhetoric from Tehran has drawn a fierce response from US President Donald Trump. In a post on Truth Social, Trump claimed that 1,000 missiles are “locked and loaded” and aimed at the Islamic Republic. He warned that any attempt on his life would result in the complete decimation of Iranian territory, stating that military orders have already been issued to respond to any assassination plot. This escalation follows reports that Israeli intelligence shared information with Washington regarding Iranian discussions about targeting the American president.

A Region on the Brink

The exchange of threats comes as the four-month-old conflict between the US, Israel, and Iran-backed entities enters a volatile new phase. While some US officials suggest that the intelligence regarding a specific assassination plot may be generalized dialogue rather than an active conspiracy, the public posturing on both sides has reached a fever pitch. As thousands of mourners in Iran chant for retribution, the international community remains on high alert for a potential direct military confrontation between Washington and Tehran.

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Middle East Conflict

Trump Declares Iran Peace Deal ‘Over’ as New Strikes Ignite Gulf Conflict

President Trump declares the Iran peace deal over after fresh military strikes in the Gulf, causing oil prices to surge and heightening regional tensions.

Published

6 days ago

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July 8, 2026

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Fragile Ceasefire Collapses Amid Renewed Military Hostilities

U.S. President Donald Trump has officially declared an interim peace agreement with Iran to be “over” following a series of retaliatory strikes and counter-strikes in the Persian Gulf. Speaking to reporters at the NATO summit in Turkey, Trump signaled a return to a maximum-pressure stance, labeling the Iranian leadership as “sick people” and a “waste of time.” The collapse of the memorandum of understanding, which was aimed at ending the war that began in late February, has sent shockwaves through global energy markets and raised the specter of a broader regional conflagration.

Military Escalation in Bahrain and Kuwait

The latest flare-up began after Iran’s Revolutionary Guard launched a joint missile and drone operation targeting U.S. military sites, specifically the Fifth Naval District in Bahrain and the Ali Al Salem Air Base in Kuwait. Iranian officials claimed the strikes were in response to U.S. interference in the Strait of Hormuz. In retaliation, U.S. Central Command (CENTCOM) conducted a massive wave of strikes against more than 60 Iranian small boats and military targets in Bandar Abbas and Sirik. President Trump warned that additional strikes were imminent, stating, “We’re going to hit them hard tonight.”

Global Energy Markets and Diplomatic Fallout

The impact of the renewed fighting was felt immediately in the global economy. Brent crude oil prices surged over five percent to reach $78.48 per barrel, the highest jump in months. Ship-tracking data showed multiple oil and gas tankers diverting from the Strait of Hormuz after several vessels were damaged. While NATO Secretary General Mark Rutte defended the U.S. response as “absolutely necessary,” Iranian officials, including parliament speaker Mohammad Baqer Qalibaf, accused Washington of bullying and violating the terms of the original ceasefire.

A Dangerous New Phase

The current situation marks a sharp reversal from last month’s cautious optimism regarding Iran’s new leadership under Mojtaba Khamenei. With the peace deal discarded, the focus shifts to the strategic Strait of Hormuz, where Iran has threatened a “crushing response” to any further U.S. naval interference. As air raid sirens continue to sound in Gulf states, the international community remains on high alert for a potential escalation into full-scale war.

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