Bank of America has pledged to mobilise and deploy $250bn towards US infrastructure and strategically important industries over the next 18 months, reinforcing Wall Street’s growing role in financing President Donald Trump’s “America First” agenda. The commitment, covering investments from January 2026 to July 2027, will target sectors including artificial intelligence, energy and other areas considered critical to US competitiveness. BofA said the funding would support economic growth, innovation and technological leadership through lending, investment, underwriting and advisory services.

The announcement comes as America seeks to expand domestic infrastructure while reducing its reliance on foreign supply chains. Investment in energy and AI infrastructure is particularly important as the rapid expansion of data centres creates enormous demand for electricity and supporting networks. BofA has already financed the trend, including leading a $14bn bond offering for an Oracle-backed data centre project in Michigan. Its latest commitment therefore reflects both the strategic importance of these sectors and the growing commercial opportunities created by America’s infrastructure spending.

The move also highlights the increasingly complicated relationship between Washington and the US banking industry. Trump has repeatedly criticised major banks and accused them of unfairly restricting access to financial services, with BofA chief executive Brian Moynihan among those targeted. Nevertheless, banks are increasingly aligning their investment strategies with the administration’s priorities. JPMorgan has committed $1.5tn over a decade to projects supporting US economic security, while Morgan Stanley has announced a similar $1.5tn initiative focused on AI, defence and critical minerals. BofA’s pledge suggests that, despite political tensions, America’s largest banks see strategic infrastructure investment as both a policy priority and a major long-term business opportunity.

- Muthu Ramanathan

US inflation eased to 3.4% in July, down from 3.5% in June and 4.2% in May, offering some relief to policymakers and investors concerned about persistent price pressures. The latest CPI reading from the Bureau of Labor Statistics matched economists’ expectations, while core inflation, which excludes volatile food and energy prices, fell from 2.6% to 2.5%. The moderation was helped by lower petrol prices, which had surged above $4.50 a gallon during the height of the Iran conflict before falling below $3.80 in June and early July.

Despite the improvement, inflation remains above the Federal Reserve’s 2% target, highlighting the challenge facing policymakers. Energy prices were still 14.7% higher than a year earlier, while housing costs rose 3.2% and food prices increased 3%. Petrol prices have also begun rising again, reaching $4.04 a gallon on Wednesday, raising concerns that renewed energy pressures could feed into August’s inflation figures. The conflict therefore remains a significant source of uncertainty, particularly alongside existing inflationary pressures from tariffs and strong investment in artificial intelligence.

The softer inflation data nevertheless prompted markets to reduce expectations of further monetary tightening. This resulted in traders no longer fully pricing in a rate increase by the end of 2026, while Treasury yields and the dollar initially moved lower. However, the report does not remove the possibility of a hike, particularly if energy prices continue to rise. For the Fed, however, the central question is whether inflation is entering a sustained downward trend or merely benefiting from temporary declines in petrol prices. With petrol prices rising again and the economic effects of the Iran conflict still unfolding, the next few inflation readings could prove decisive. In the meantime, for investors, the key question is no longer simply whether inflation is falling, but whether it can stay low enough to give the Fed room to hold rates steady.

- Shrish Yalamarti

The Los Angeles Lakers are set to change hands in a deal valuing the franchise at $12.5bn, as former Walt Disney chief executive Bob Iger and investor Josh Kushner seek to acquire one of the most recognisable brands in global sport. The transaction would make the Lakers the most expensive sports franchise ever sold, surpassing the roughly $10bn valuation agreed when Mark Walter’s group acquired the team from the Buss family only a year ago. This sharp appreciation highlights the extraordinary appreciation in the value of elite US sports franchises.

The deal reflects growing investor appetite for sports assets, which are increasingly viewed as attractive long-term investments rather than simply entertainment businesses. The Lakers possess a global fan base and valuable commercial relationships, while demand for premium live sport has remained resilient despite technological disruption elsewhere in the media industry. Investors are also attracted by the scarcity of top-tier franchises, with only a limited number of teams offering comparable global reach and brand recognition. Kushner’s investment group, Thrive Eternal, has similarly targeted assets considered difficult to replicate through technology.

The transaction is therefore significant for finance because it demonstrates how capital is increasingly flowing into alternative assets with strong pricing power, scarce supply and predictable demand. In particular, the Lakers’ rapid revaluation also illustrates how investors are willing to pay substantial premiums for assets capable of generating long-term commercial value. As institutional and wealthy investors increasingly enter professional sport, transactions such as this suggest that elite franchises are becoming an increasingly important asset class, blurring the boundaries between finance, entertainment and technology.

- Neev Dave

Until next time,

The Long and Short

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