What’s going on here?

Reports out on Monday suggested that Alphabet’s considering buying cybersecurity startup Wiz for $23 billion, determined to upgrade its technological know-how.

What does this mean?

Alphabet’s trailing behind Amazon and Microsoft when it comes to cloud computing services. And with the sector tipped to be a major moneymaker in the years ahead, Google’s parent company is reportedly looking for support from Wiz, a specialist in cybersecurity for cloud solutions. Now, despite being worth some $2 trillion, Alphabet has been far thriftier on buyouts than its Big Tech rivals lately. But this deal would be one of the technology industry’s biggest to date, and easily Alphabet’s heftiest.

Why should I care?

Zooming out: Everyone wants to feel secure.

Wiz could almost double its valuation by inking this deal. We’re not talking small numbers here, either. The startup made $350 million in recurring revenue – that’s predictable income, like subscriptions – last year. Plus, it recently raised $1 billion, implying a valuation of $12 billion. That’s no fluke: companies are clamoring to swap local drives for cloud storage, so much so that they’re shelling out more on safeguarding cloud solutions than any other security category, including data security and privacy. And Alphabet’s no exception to the trend. The firm made its second-biggest purchase two years ago, buying security firm Mandiant for over $5 billion.

The bigger picture: The cloud needs a tougher lining.

Once upon a time, a hacker would have to break into a desk and run away with a floppy disk. But cyberattacks are a daily threat nowadays. Just ask AT&T: hackers swiped six months of customer data from the US telecom behemoth, causing a national security scare. Or take Indonesia, where a colossal hack paralyzed over 280 government agencies, disrupting everything from airports to scholarships. No wonder both companies and countries are scrambling to bolster their defenses with cybersecurity firms.

What’s going on here?

China’s economy grew at its slowest pace in five quarters, and that demure attitude is causing a faux pas in the luxury market.

What does this mean?

China’s economy was just 4.7% bigger last quarter than the same time last year, short of Bloomberg’s 5.1% prediction. That’s mainly because the country’s real estate market is still in turmoil, with property sales coming in around 14% lower this June than last. So, on edge about the value of their biggest financial asset, homeowners are keeping their wallets shut. That explains why retail sales were only 2% higher this June versus last year, far off the expected 3.4%. And despite new government incentives, car sales dropped by 6.2% in the same period – their biggest fall in over a year.

Why should I care?

For markets: When Chinese shoppers sneeze, luxury brands catch a cold.

As the world’s second-biggest economy, China is usually a reliable market for the finer things in life. But now, shoppers are drawing the line at browsing. Swatch Group, for example, reported on Monday that slow sales in China caused worse-than-expected sales and profit last quarter, pushing investors to send the watchmaker’s stock down 10%. Burberry’s stock fell on Monday too, by 16%. The luxury brand issued a profit warning the same day, citing limp demand in China – a concern shared by LVMH, Hermès, and Prada, all of which have been watching their share prices slip.

The bigger picture: It’s out of China’s hands.

The upcoming US election could have serious consequences for China. Former president Donald Trump plans to stamp a 60% tax on anything imported from the country – a figure that would hamper its all-important manufacturing industry, potentially encouraging an all-out trade war. And following news of the attempted assassination, the market is pricing in a 70% chance of the former president winning the keys to the White House.