Brain Implants Can Decode Your Inner Thoughts

Welcome back!

Here’s your must-read news this morning:

• Fed governor faces fraud allegations

• Brain implants decode inner thoughts

• Gabbard slashes DNI workforce

I’ve got all the details for you, so let’s dive in.

— Josh

MARKETS

💰 Trump Calls for Fed Governor Lisa Cook’s Resignation Amid Mortgage Fraud Allegations

The Scoop: President Donald Trump demanded the resignation of Federal Reserve Governor Lisa Cook on Wednesday, amid allegations of mortgage fraud raised by FHFA Director Bill Pulte.

The Details:

• FHFA Director Bill Pulte sent a criminal referral to the Justice Department, accusing Cook of falsifying bank documents to secure favorable loan terms by claiming primary residence status for properties in Ann Arbor, Michigan, and Atlanta, Georgia, within 14 days of each other in 2021.

• Trump called for Cook’s immediate resignation, while Pulte posted images on X purporting to show Cook’s signatures on mortgage documents.

• Sen. Adam Schiff (D-CA) also faces a DOJ probe for alleged mortgage fraud, with Pulte accusing him of falsifying documents to claim primary residence status for properties in Maryland and California from 2003 to 2019.

What’s Next: Cook responded to Trump's call for her resignation, saying, "I have no intention of being bullied into stepping down from my position because of some questions raised in a tweet."

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Federal Reserve officials at their July meeting largely agreed to maintain steady interest rates, with minutes revealing dissent from two governors advocating for a rate cut. (CNBC)

• Trump's tariffs have not significantly driven U.S. inflation, with consumer prices remaining stable, an analysis shows. (CBS)

• Washington, D.C.'s unemployment rate hit 6% in July, the highest in the U.S. for the third consecutive month, driven by mass federal worker layoffs by DOGE. (FOX5)

• U.S. non-farm worker productivity rebounded to a 2.4% annual growth rate in Q2, signaling economic improvement. (IVP)

📈 Stock Market

• ⭐ Editor’s Pick: TJX outperformed expectations in fiscal Q2 with earnings per share of $1.10, surpassing the $1.01 forecast, and revenue of $14.40 billion, exceeding the $14.13 billion anticipated. (CNBC)

• Baidu's Q2 earnings beat expectations with an adjusted 13.58 yuan ($1.89) per share, as sales fell 4% to 32.71 billion yuan ($4.55 billion) amid a weak Chinese economy. (IBD)

• Estee Lauder’s Q4 earnings per share of $0.09 exceeded estimates by 8.7% with $3.41 billion in revenue, despite an 8% organic sales decline for FY2025. (INV)

🏢 Industry & Deals

• ⭐ Editor’s Pick: Johnson & Johnson will invest over $2 billion in a new North Carolina manufacturing facility to produce biologic medicines for cancer. (RTS)

• A judge ordered CVS Health’s Caremark to pay nearly $290 million for overcharging Medicare on prescription drugs in 2013 and 2014. (HE)

• Bed Bath & Beyond announced it will avoid opening stores in California, citing the state’s overregulation and high business costs. (FBN)

• The FTC sued LA Fitness, alleging their complex cancellation processes illegally charged consumers hundreds of millions in recurring fees. (AP)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Trump vowed to block new wind and solar projects, labeling them the “scam of the century.” (OP)

• China's rare earth magnet exports surged to a six-month high of 5,577 metric tons in July, recovering to pre-curb levels after Beijing eased restrictions. (RTS)

• Trump’s administration plans over 30 offshore oil and gas lease sales in the Gulf of America, and Alaska through 2040 to advance its energy dominance agenda. (INV)

• General Matter CEO Scott Nolan said his startup aims to deliver "energy abundance" by producing cost-effective nuclear fuel in the U.S., reducing electricity costs for Americans. (FP)

🌕 Crypto

• ⭐ Editor’s Pick: Gemini co-founders Tyler and Cameron Winklevoss donated $21 million in Bitcoin to the pro-Trump Digital Freedom Fund PAC. (TB)

• China is considering permitting yuan-backed stablecoins to bolster its digital currency framework. (RTS)

• Goldman Sachs predicts the stablecoin market could grow to trillions, driven by increasing institutional adoption and regulatory clarity. (FM)

• Kraken acquired Capitalise.ai, a no-code trading automation platform, for an undisclosed sum to enhance its crypto trading capabilities. (CT)

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TECH

💻 Brain Implants Could Expose Your Inner Monologue, Sparking Privacy Fears

The Scoop: A new study in Cell reveals that brain-computer interfaces (BCIs) designed to help paralyzed individuals speak by decoding brain signals can also access their inner monologue, raising privacy concerns, NPR reports.

The Details:

• BCIs decode speech by monitoring brain activity in the motor cortex, traditionally relying on signals from attempted speech, which requires significant effort from paralyzed users.

• Stanford researchers found that BCIs can decode subtler "imagined speech" signals, achieving up to 74% accuracy in translating thoughts into words from a 125,000-word vocabulary.

• This capability makes communication faster and easier but risks unintentionally exposing private thoughts, such as recalled directions or numbers.

• Nita Farahany, a Duke University professor, warns that mental privacy protections lag behind BCI advancements.

What’s Next: While surgically implanted BCIs will face FDA regulation, unregulated consumer BCIs could potentially access private thoughts in the future. Scientists are exploring safeguards, but experts like Farahany stress the need for stronger privacy measures as brain transparency becomes a new frontier.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Google unveiled its AI-powered Pixel 10 smartphone series, featuring the advanced Gemini assistant for tasks like real-time photo editing and personalized data retrieval. (YF)

• OpenAI achieved its first $1 billion revenue month in July, CFO Sarah Friar announced. (CNBC)

• Microsoft AI CEO Mustafa Suleyman forecasted that "Seemingly Conscious AI," which mimics human-like consciousness, could emerge within two to three years. (MS)

• Alibaba-backed Z.ai launched a free general-purpose AI agent app for smartphones and desktops, enabling users to perform tasks like booking hotels and ordering takeaway. (SCMP)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Boston Dynamics and Toyota Research Institute have enhanced the AI capabilities of the Atlas humanoid robot, enabling it to learn complex tasks like packing. (AE)

• General Motors’ AI department is developing collaborative robots assisting with complex factory tasks. (WSJ)

• Dartmouth researchers have developed ant-inspired modular robots that autonomously assemble into bridges, stretchers, and shelters. (IE)

• The Miami Marlins' hot streak is boosted by the Trajekt Arc, a robot that replicates opposing pitchers’ styles to improve the team’s batting skills. (RM)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S., Russia and China are locked in a race to develop nuclear-powered rockets to win the space race. (WAPO)

• Microsoft failed to disclose critical details about its use of China-based engineers for U.S. defense cloud systems, overseen by underqualified U.S. “digital escorts.” (PP)

• Acting NASA Administrator Sean Duffy announced the agency will shift focus from climate science to lunar and Martian exploration. (SP)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: FieldAI, a startup developing AI "brains" for robots, secured $405 million at a $2 billion valuation from investors including Nvidia. (AX)

• AI startup TinyFish secured $47 million in a Series A round led by ICONIQ Capital to expand its platform for AI-powered web agents that automate complex enterprise tasks. (RTS)

• Zed raised $32 million in a Series B round led by Sequoia Capital to enhance its collaborative, AI-driven code editing platform. (AIM)

• Chatbot startup Character.AI is exploring a sale or raising hundreds of millions at a valuation exceeding $1 billion. (TI)

FREEDOM

🪚 Tulsi Gabbard Unveils 'ODNI 2.0' Initiative, Targets Nearly 50% Workforce Reduction

The Scoop: Director of National Intelligence Tulsi Gabbard announced a major overhaul of the Office of the Director of National Intelligence (ODNI) on Wednesday, cutting its size by nearly 50% by year’s end to save taxpayers $700 million annually.

The Details:

• ODNI will cut redundant missions, functions, and personnel, close its Reston Campus, and move the National Intelligence Council to the main campus for better oversight.

• A new Intelligence Community Task Force will enhance transparency, tackle politicized intelligence, and hold accountable those responsible for abuses like unauthorized leaks.

• Non-merit-based recruitment will end, with efforts to optimize the civilian and contractor workforce and strengthen the National Counterterrorism Center for increased information sharing.

What’s Next: Gabbard’s plans for a “ODNI 2.0” aligns with DOGE’s mission to make government more efficient and financially leaner, aiming to deliver a streamlined intelligence community that restores public trust.

Freedom Roundup

🏛️ Policy, Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Anthony Sacco, a senior IRS lawyer and former Democrat aide, pledged to resist Trump's agenda, raising concerns about political bias within the agency. (DW)

• Billionaire Bill Ackman backed Alpha School, a fast-growing private K-12 institution that uses AI to deliver two-hour academic lessons and avoids DEI curricula. (WSJ)

• Oklahoma Governor Kevin Stitt (R) signed legislation banning state funding for DEI programs at public colleges. (HL)

• Westchester County, New York, was found liable for violating pro-life counselors' free speech rights with its 2022 law, with plaintiffs awarded nominal damages. (TMS)

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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.