China took another step in its bid to reduce technological dependence, and ASML is suffering the consequences. Apple debuted a new way to "rent" its devices. Meta plummets again, but this time there is more visibility into its future. The Federal Reserve kept rates unchanged, and the Eurozone economy surprised by growing faster than that of the United States.
For now, here is what you need to know:
China moves forward with chip manufacturing and makes ASML investors nervous.
Now you will be able to "rent" Apple products.
Meta falls once again... Here is what you need to know.
The Federal Reserve holds rates, but increases the possibility of a hike.
The Eurozone grows faster than the United States in the second quarter.
1️⃣ China moves forward with chip manufacturing and makes ASML investors nervous
China began producing its own deep ultraviolet immersion (DUV) lithography machines. But why is this news?
To put this news into perspective, it is key to understand the difference between two technologies: EUV and DUV. Extreme ultraviolet (EUV) lithography is the most advanced and is essential for next-generation chips (such as those for AI), but there is only one company in the world that produces these machines, ASML. On the other hand, DUV is a previous generation, although it remains an indispensable and most widely used driver to manufacture the vast majority of commercial chips in the world.
Although they are not the most modern, these DUV machines allow for the production of a huge variety of chips and even achieve much more advanced components through a process of repeated exposures known as multiple patterning.
China, in its attempt to reduce its technological dependence, began the development of DUV machines. The project is led by Shanghai Aishengna Electronic Technology Group, a state-owned company founded in 2023.
This news caused a stir in the industry, as until very recently experts estimated that China was decades away from being able to develop this level of highly complex machinery on its own. Now, the company plans to manufacture about 5 machines in 2026 and scale up to about 20 in 2027.
The news also triggered a ~8% drop in the shares of ASML, the company that virtually dominates the global DUV market. The nervousness is logical: China is a key customer, representing approximately 16% of its net sales during the first half of the year.
However, there does not yet seem to be an immediate threat to the European giant, and in fact, its stock is up nearly 40% since the beginning of the year. The reason? The Chinese machines still need to pass many tests and are known to be far behind ASML in precision, speed, and reliability.
To put it into perspective, while China will manage to produce only a few units in the coming years, ASML already delivered 131 similar machines last year alone.
💡 What you should know: United States and European restrictions are accelerating the inevitable: the development of a Chinese semiconductor industry, much faster than anyone imagined. Although ASML maintains an untouchable monopoly in EUV and a giant advantage in DUV, it will face a progressive loss of sales and new competition within the Chinese market in the medium term.
2️⃣ Now you will be able to "rent" Apple products
Apple launched a new leasing program in collaboration with Klarna that allows renting iPhones, iPads, Macs, and Apple Watches by paying a fairly reasonable monthly fee. The question is… is it a good idea for consumers?
For the moment, this option is only available in the United States, and contracts last between 12 and 24 months for the iPhone and Apple Watch, and between 24 and 36 months for Macs and iPads.
For the iPhone, prices start at $17.99 a month, though more expensive models cost more. For example, a $1,099 iPhone 17 Pro would have payments of $31.99 for 24 months.
The most important thing: this is not financing and you do not end up owning the product. At the end of the contract, you must return it, start a new lease to upgrade it, or pay the final remaining amount to buy it, which would be the difference between the original amount and what you have paid so far. If you do not make a decision, the contract can extend month-to-month with higher payments and eventually charge you for the purchase option.
The scenario where we think this might make sense is if, at the end of the lease, we plan to pay the difference to keep the device. For the $1,099 example paying $31.99 for 24 months, we would only have to pay about $331 at the end of the lease to keep the phone. Otherwise, it becomes an infinite cycle of unnecessary monthly payments, although we have no doubt that many people will be excited to pay a perpetually "low" monthly fee to have a new iPhone every two years.
The program requires no deposits and there is no hard credit inquiry, but to lease an iPhone you must choose a postpaid plan with AT&T, Verizon, or T-Mobile, although the phone will be unlocked.
It is also worth noting that AppleCare+ is not included either. If you return the device damaged, in poor condition, or if you lose it, additional charges apply.
💡 What you should know: Apple Upgrade, Apple's new lease program, replaces the old iPhone Upgrade Program. The main difference is that it now also includes other Apple devices, but as consumers, we must keep in mind that we are not buying the product, and changing an iPhone or Apple Watch every 24 months is usually not the best financial decision.
3️⃣ Meta drops once again... Here is what you should know
Meta plummeted after its Q2 2026 report, dropping up to 10% in a single day, although it recovered a bit by the end of the week and closed at -6.2% at $556 per share.
Of the 4 big super-spenders, Meta was the only one punished this season for reasons we had already identified in previous analyses, such as being on the other side of purchasing agreements and not having investor confidence to make large investments.
However, personally, I believe (Carlos) that Meta may be the most obvious investment of the 4 at this moment. And in this video, I explain why. 👇
4️⃣ The Federal Reserve maintains rates, but increases the probability of a hike
At its latest meeting last week, the Federal Reserve decided to maintain interest rates in the range of 3.50% and 3.75%, the same level since December.
However, there is an important detail: three members voted in favor of raising them by 0.25%, reflecting a concern about inflation.
Although the US economy continues to grow at a solid pace and unemployment has remained relatively stable, inflation still exceeds the Fed's 2% target.
Fed Chairman Kevin Warsh did not commit to a specific decision for the next meeting, but reiterated that the central bank is willing to act to restore price stability.
The division within the committee makes a rate hike in September a possibility now, although it will depend on the upcoming employment and inflation data.
💡 What you should know: Those expecting further rate cuts will have to keep waiting. The conversation is no longer about when they will lower them again, but whether the Fed will have to raise them again to control inflation.
5️⃣ The eurozone grows more than the United States in the second quarter
The eurozone economy grew by 0.4% during the second quarter of 2026, double what economists expected and above the growth of the United States during the same period. In annualized terms, the eurozone advanced by 1.8%, compared to 1.5% for the US economy.
The data surprised many (including us) because Europe has had to face higher energy prices, supply chain disruptions, among other factors. Still, consumers did not cut back their spending as much as anticipated.
The growth was not uniform. Spain stood out again, with an expansion of 0.7%, driven by tourism, investment, and employment. Germany and France grew by barely 0.2%, while Ireland advanced by 3.9%, partly due to the activity of large tech companies and services related to artificial intelligence, although its figures are usually highly volatile.
Milder inflation and the resilience of the manufacturing sector also helped sustain the economy; however, the outlook remains fragile. A new escalation in the Middle East could make energy expensive again, while fires, heatwaves, and the possibility of new US tariffs pose additional risks.
💡 What you should know: The European Central Bank maintains rates at 2.25%, but many investors expect another hike in September. The eurozone is holding up better than expected, although further rate hikes could end up slowing down a recovery that is still quite weak.
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