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Illustration: Aïda Amer/Axios
The hope for interest rate cuts and more quantitative easing in September was not enough to placate the market on Thursday.
What they're saying: "Negative interest rates and more QE will only have a small impact, but given there are no other alternatives central banks really don’t have any other options," Torsten Sløk, chief economist at Deutsche Bank Securities, tells Axios in an email.
Be smart: Recent academic papers examining the impacts of quantitative easing show that it is no longer a useful instrument.
What's next: Market heavyweights, including BlackRock chief investment officer of global fixed income Rick Rieder and Ethan Harris, Bank of America-Merrill Lynch’s head of global economic research, expect the ECB may have to start buying stocks to keep the economy from stagnating.
Artificial intelligence startups generated their highest level of funding ever in this year's second quarter, according to research firm CB Insights.
Amazon's shares fell as much as 2% in post-market trading Thursday after the e-commerce giant reported $5.22 in earnings per share, missing Wall Street's projected $5.57, Axios' Erica Pandey writes.
The backstory: This quarter's earnings report comes as Amazon is facing regulatory scrutiny in the U.S. and Europe. The company recently had its most successful Prime Day to date, and has invested more than $800 million to speed up 2-day delivery to 1-day.
U.S. store closures are on pace for a record level in 2019 with more than 7,400 already announced this year, and household names like Sears and Victoria’s Secret shutting their doors at malls across the country.
Yes, but: CBRE says the fire-and-brimstone, death-of-the-mall narratives are exaggerating and misinterpreting what's actually happening in the retail and real estate spaces.
What they're saying: "U.S. retail real estate as a whole is healthy, especially grocery anchored centers," CBRE Global President of Retail Anthony Buono tells Axios in an email.
Illustration: Sarah Grillo/Axios
Tesla is selling "full self-driving capability" as a $6,000 option on its electric vehicles, but can't put the money in its coffers for the time being, Axios' Joann Muller writes.
The big picture: Most of it is sequestered on the company's balance sheet as a liability — deferred revenue that it hopes to recognize some day, when its cars can actually drive themselves.
When Tesla can offer a fully self-driving car, says Musk, profit margins will soar to as much as 30% (from today's 19%).
Between the lines: Tesla had about $1 billion of deferred revenue on its balance sheet as of March 31, for "unsatisfied performance obligations."
While most carmakers say fully automated vehicles are still a decade away, Musk says Tesla will have a million robotaxis on the road by next year.
Shade thrown: Barclays' Brian Johnson notes that many weekend athletes "aim" to run a 4-minute mile. It doesn't mean they achieve it.