What’s going on here?

Apple and Amazon both showed investors how they fared last quarter, but their adequate performances failed to earn them credit.

What does this mean?

Amazon’s revenue was 10% higher than the same time last year, landing at the $148 billion that analysts expected. The firm revealed a slightly worse-than-predicted performance from its online advertising business. Mind you, that was offset by surprisingly solid revenue from Amazon Web Services – closely watched by the many investors that believe cloud services will be a major moneymaker going forward. Either way, investors weren’t blown away: they initially sent the stock down 6% after the news.

Apple toed the line, too. Revenue was a mildly better-than-expected $85.8 billion – although there were a few standout stats. The iPad delivered the biggest revenue uptick in the division thanks to new product launches, and Apple notched a record-high count of active devices around the world. Yet, nonplussed investors left the stock where it was.

Why should I care?

Zooming in: Back from the brink.

Apple’s new iPhones are set to be packed with the technology, and that could attract a legion of chatbot communicators to its stores, especially as only 9% of devices in folks’ pockets are currently AI-compatible. And the company’s working smart, not hard, saving billions by implementing OpenAI’s services instead of making its own.

The bigger picture: The race is on.

No matter how many optimists believe that AI could rescue humanity, businesses will need to see cold, hard cash to justify pushing more money into the tech. And while the breakeven point is as far out as the promise of utopia, Meta has claimed it’s already reaping the rewards, while Amazon has said it’ll increase spending on cloud and AI infrastructure. Nvidia’s certainly seeing the effect on the bottom line: the chip company is the go-to brand for any business with super-smart ambitions, and that reputation has earned it billions.

What’s going on here?

After four years of interest rates moving only one way, the Bank of England (BoE) finally dropped them to 5% from a 16-year high of 5.25%, following a narrow five-to-four vote.

What does this mean?

The cut is a vote of confidence in the central bank’s campaign against rampant inflation. And on top of trimming rates, the BoE upgraded the UK’s economic forecast, predicting an uptick of 1.25% rather than the previous 0.5% this year, and a 1% increase for next year. The move follows the European Central Bank’s trim earlier this summer, and comes a day after the Federal Reserve hinted about a cut as soon as September.

Why should I care?

Zooming out: Path of the pound.

The pound has been the only G10 currency to rise against the dollar this year, largely thanks to bets that the BoE would keep rates high while others eased off. So the news of lower rates – which tend to turn investors off a currency – meant the pound took a hit against the dollar on Thursday. The currency’s crystal ball is cloudy, though. Unlike the euro and the dollar, the pound has been buoyed by a new government that many believe will bring stability after years of chaotic policies and volatile markets. That said, if inflation continues to fall, the BoE could slice rates again in September, provoking a similar reaction from investors.

The bigger picture: Stepping out.

The UK has been overshadowed by the US stock market for the past decade, mainly because heavy-hitting tech companies are rooted on stateside soil. But this rate cut could give the FTSE 100 Index – home to London’s biggest companies – a leg up. After all, about three-quarters of the index’s companies are major international firms, which make money in dollars but report profit in pounds. So when you need more pounds to match a buck, the companies end up looking more profitable.