Net zero grid upgrade costs spiralling out of control

Britain’s government approved a 20-year life extension for the Sizewell B nuclear plant in Suffolk, owned by EDF, allowing it to generate until 2055. Sizewell B, synchronized with the grid in 1995, was due to close within the next decade. The deal pays EDF £70.50 per MWh from 2035 and involves Centrica’s 20% stake.

Mistral AI said it is expanding into advanced manufacturing, signing deals with Airbus SE and BMW AG to apply its “physical AI” to areas including design, simulation and quality control. Financial terms were not disclosed. Mistral targets €1bn+ revenue by 2026, plans ~€10bn capex for data centers, and expects a 10MW inferencing site near Paris to open in Q3.

Nvidia (NVDA), AMD (AMD), Intel (INTC), and Broadcom (AVGO) rose in pre-market trading as AI infrastructure spending confidence grew. Bank of America increased its semiconductor industry growth forecast to 18% annually through 2030, expecting the U.S. market to reach $3.2 trillion by 2030. Broadcom's CEO reported strong and durable AI demand, with AI semiconductor revenue up 221% year-over-year.

Citi upgraded Dutch banks, raising price targets and earnings estimates due to higher ECB rate expectations. ABN AMRO's price target increased to €54, while ING's rose to €36. Both banks benefit from higher net interest income projections. ABN AMRO reported a 29.8% YoY net profit increase in Q2, raising full-year guidance.

ExxonMobil projects coal will make up 15% of the global energy mix by 2050, up from its prior estimate, due to continued demand in Asia. The company's annual Energy Outlook report cites energy security and rising electricity demand as key factors. Global coal demand is expected to reach a record 8.94 billion metric tons in 2026, according to the IEA.

The US State Department approved a potential $24.3B sale of 48 F-35 fighter jets to Saudi Arabia, including engines, equipment, and support. The sale aims to enhance Saudi Arabia's defense capabilities. The deal must still go through Congress, which could block it. Lockheed Martin manufactures the F-35. Concerns exist over China's potential access to sensitive F-35 technology.