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MARKETS
💰 HSBC and IBM Achieve Improvement in Predicting Bond Trade Outcomes with Quantum Breakthrough
(Credit: Olia Danilevich/Pexels)
The Scoop: HSBC, in collaboration with IBM, has achieved a groundbreaking milestone in financial technology, demonstrating the world’s first empirical evidence of quantum computing’s potential to enhance algorithmic bond trading, delivering up to a 34% improvement in predicting trade outcomes compared to traditional methods.
The Details:
HSBC and IBM’s trial used quantum and classical computing to optimize requests for quotes in over-the-counter corporate bond trading, improving prediction accuracy for trade fills by up to 34% over standard classical techniques.
The trial leveraged IBM’s Heron quantum processor and Qiskit software to analyze real and production-scale trading data, focusing on the European corporate bond market.
Quantum computing’s ability to process complex, noisy market data outperformed classical-only methods, enhancing algorithmic strategies that automate pricing in competitive bidding.
Philip Intallura, HSBC’s Group Head of Quantum Technologies, hailed the results as evidence of quantum computing’s near-term value, signaling a new frontier in financial services.
What’s Next: The success of this trial positions HSBC to further integrate quantum computing into its trading operations, potentially redefining efficiency in financial markets, including retail investing. As quantum hardware advances, broader adoption could reshape algorithmic trading, though scaling these solutions will require overcoming technical and cost barriers in quantum infrastructure.
Market Roundup
🏦 Economy
⭐ Editor’s Pick: The U.S. economy's second-quarter GDP growth was revised sharply higher to a 3.8% annualized rate, fueled by robust consumer spending and a narrower trade deficit. (RTS)
Trump announced a 25% tariff on all imports of heavy-duty trucks, effective October 1, to shield U.S. manufacturers from unfair foreign competition. (RTS)
Federal Reserve Governor Lisa Cook urged the Supreme Court to reject Trump's bid to fire her. (CNBC)
Citadel CEO Ken Griffin anticipates one additional Federal Reserve interest-rate cut this year, saying the economy is doing “pretty well.” (X)
📈 Stock Market & Industry
⭐ Editor’s Pick: Amazon agreed to a record $2.5 billion settlement with the FTC to resolve allegations of deceptive practices in its Prime subscription service. (TM)
The New England Patriots sold an 8% stake in the NFL franchise—valued at over $9 billion—to Sixth Street and Dean Metropoulos. (SPO)
Switzerland's Roche broke ground on a facility in North Carolina and a $50 billion investment commitment in domestic manufacturing and research and development. (YF)
The SEC accused Alex Mehr and Tai Lopez of running a $112 million Ponzi scheme, misleading investors with fake profits from brands like RadioShack while diverting millions for personal use. (FBN)
Costco reported Q4 fiscal 2025 earnings that surpassed Wall Street expectations, with revenue climbing 8% to $86.16 billion, net income rising 11% to $2.61 billion. (ST)
🛢️ Energy & Commodities
⭐ Editor’s Pick: Ukrainian President Volodymyr Zelensky claimed that Trump authorized retaliatory strikes on Russian energy infrastructure. (OP)
Energy Secretary Chris Wright revealed most coal-fired power plants slated for retirement will instead extend operations to satisfy surging electricity demand from AI data centers. (INV)
The U.S. and Turkey signed a memorandum of understanding to deepen their partnership in nuclear energy. (TT)
Global oil prices are on track for their largest weekly advance in three months. (RTS)
🌕 Crypto
⭐ Editor’s Pick: The SEC is probing unusual stock trading patterns, marked by elevated volumes and abrupt price surges, ahead of announcements by digital asset treasury companies to acquire crypto. (TB)
Cloudflare announced the launch of its U.S. dollar-backed stablecoin, built to power AI agents, micropayments, and programmatic transactions. (YF)
Blockchain analytics firm Nansen unveiled an AI chatbot, powered by Anthropic's Claude, that offers real-time crypto market insights aimed at giving traders an edge. (DEC)
BlackRock filed an application with the SEC for its proposed iShares Bitcoin Premium Income ETF, a yield-generating fund that would hold spot Bitcoin while selling covered-call options. (CC)
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TECH
💻 Trump Signs Executive Order Approving TikTok Deal
(Credit: Andrea Hanks/White House)
The Scoop: President Donald Trump signed an executive order on Thursday greenlighting a deal to divest TikTok's U.S. operations from its Chinese parent ByteDance, valuing the new American-led entity at $14 billion and averting a national security-driven ban while ensuring the app's continued operation under U.S. control, CNBC reports.
The Details:
A new joint-venture company will oversee TikTok's U.S. business, with ByteDance retaining less than a 20% stake to comply with the 2024 law requiring divestiture or a ban.
Main investors include Oracle, Silver Lake, and Abu Dhabi-based MGX with a roughly 45% stake; ByteDance investors like General Atlantic, Susquehanna, and Sequoia Capital will contribute 35% equity.
Oracle will handle security operations and cloud services for the new firm, with CEO Larry Ellison playing a key role; potential involvement from Michael Dell and Rupert Murdoch was mentioned by Trump.
What’s Next: With the deal framework in place, U.S. and Chinese officials have until mid-December to finalize terms, including potential algorithm licensing to address export controls. Success could preserve TikTok's 170 million U.S. users and $178 billion in economic activity.
Tech Roundup
🧠 AI
⭐ Editor’s Pick: The Trump administration is weighing a new plan to dramatically reduce the U.S.’s reliance on semiconductors made overseas, aiming to spur domestic manufacturing. (WSJ)
The Trump administration unveiled a landmark partnership with xAI to deploy the company's Grok AI models across federal agencies. (MM)
OpenAI introduced ChatGPT Pulse, a daily briefing tool exclusive to its Pro subscribers that delivers personalized morning reports with summaries on news. (TC)
Meta launched Vibes, a new feed enabling users to create and share short-form AI-generated videos. (MASH)
🤖 Hardware & Robotics
⭐ Editor’s Pick: China has installed nearly 300,000 industrial robots in 2024, more than the combined total for the U.S., Japan, Germany, and South Korea. (IE)
Google DeepMind's Gemini Robotics announced Gemini Robotics 1.5 and Gemini Robotics-ER 1.5, a pair of new models to create the first robots that "think" before acting. (ARS)
Researchers created a synthetic muscle for robots, mimicking human bone and muscle, boosting strength and efficiency for prosthetics. (TBR)
Engineers unveiled HydroSpread, a technique to craft insect-like soft robots molded on water, enabling them to move across liquid surfaces. (SA)
🚀 Defense & Space
⭐ Editor’s Pick: The U.S. Navy conducted four missile tests of a nuclear-capable weapons system off the coast of Florida. (DN)
Germany's military will invest €35 billion ($41 billion) over the next five years to bolster its space capabilities. (BD)
The U.S. Air Force's tests of AI-teaming technologies show progress in enabling drones to operate autonomously alongside piloted aircraft. (TWZ)
Rheinmetall Canada’s unmanned ground vehicle successfully made its way to a Portuguese beach after being dropped in the Atlantic Ocean as part of a military exercise. (DP)
💰Venture Capital
⭐ Editor’s Pick: Crypto exchange Kraken secured a $500 million funding round at a $15 billion valuation. (FM)
AAI, an AI startup co-founded by Amnon Shashua to develop superintelligent systems, raised hundreds of millions led by Lightspeed Venture Partners at a valuation over $1 billion. (CALT)
Factory, a startup developing AI-powered "Droids" for agent-native software coding, has raised $50 million in a Series B round led by NEA. (BW)
Juicebox, creator of an AI-driven platform that analyzes professional profiles to streamline hiring, raised $30 million in a Series A round led by Sequoia Capital. (TC)
FREEDOM
📢 Starmer’s Push for Digital ID System Sparks Fears of Surveillance Overreach
(Credit: Simon Dawson/No 10 Downing Street)
The Scoop: UK Prime Minister Keir Starmer’s promise of a competent, orderly government is under scrutiny as his administration pushes a controversial digital ID system, dubbed the “Brit Card.” Critics warn that this initiative, coupled with expanded surveillance and vague laws targeting “offensive” speech, signals a troubling erosion of civil liberties, Reclaim The Net reports.
The Details:
Labour government is reviving plans for a mandatory digital ID system for all working adults, requiring identity verification for jobs, rentals, and services via a government database accessed through an app.
Mass facial recognition cameras are being deployed in public spaces, while police use broad public order powers to detain individuals over “offensive” social media posts, raising concerns about inconsistent enforcement.
Data rights groups and campaigners, including Big Brother Watch, warn of a “dystopian” surveillance state, citing risks of data breaches and government overreach.
What’s Next: Starmer’s government is pressing forward, with Home Secretary Shabana Mahmood claiming that the “Brit Card” is essential for immigration and employment enforcement. However, growing opposition from privacy advocates and a skeptical public could reignite the debate over civil liberties, potentially derailing the plan as it did in 2010.
Freedom Roundup
🏛️ Policy & Culture
⭐ Editor’s Pick: A Justice Department official directed prosecutors to prepare investigations into George Soros's Open Society Foundations for potential charges including material support to terrorism and racketeering. (ABC)
Indiana Attorney General Todd Rokita (R) eliminated all DEI initiatives within the office, pivoting to a merit-based system for selecting external legal representation. (21AL)
Pro-Second Amendment organizations accused JPMorgan Chase and Bank of America of whitewashing their history of debanking gun owners. (FBN)
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DISCLAIMER: The CAPITAL newsletter is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research and consult a qualified financial advisor before making investment decisions. The CAPITAL newsletter and its owner and operator, Josh Caplan, are not liable for any loss or damage resulting from reliance on this information. The CAPITAL newsletter is solely owned and independently operated by Josh Caplan, separate from any employer affiliations.
