Welcome back!
Here’s your must-read news this morning:
I’ve got all the details for you, so let’s dive in.
— Josh
MARKETS
💰 Powell Under Federal Criminal Investigation over Fed HQ Renovation
(Credit: The White House/Daniel Torok)
The Scoop: The U.S. attorney’s office in D.C. has opened a criminal investigation into Federal Reserve Chair Jerome Powell, focusing on the Fed’s $2.5 billion Washington headquarters renovation and whether Powell was truthful in congressional testimony about the project, The New York Times reports.
The Details:
The probe examines whether Powell accurately described the scope, cost, and features of the Fed’s two main office buildings.
Powell confirmed the Fed had been subpoenaed Friday and called the investigation “unprecedented” and politically motivated, defending the central bank’s independence in setting interest rates.
Tensions between Powell and Trump have escalated over interest rate policies and the renovation, with Trump criticizing the project’s cost and calling Powell a “clown.”
The Fed is self-financing the renovation, which is scheduled for completion in fall 2027, with employees moving in by March 2028.
Powell told Congress in June 2025 there were no extravagant additions such as marble, special elevators, or roof terraces, and cited unexpected construction challenges and inflation as causes of cost overruns.
What’s Next: In a phone call with NBC News, Trump said he knew nothing about the Justice Department probe, saying, "I don't know anything about it, but he's certainly not very good at the Fed, and he's not very good at building buildings.”
Market Roundup
🏦 Economy
⭐ Editor’s Pick: Wall Street is ramping up bullish bets on the U.S. economy, with investors piling into cyclical stocks, high-yield debt, and growth sectors as confidence grows. (WSJ)
Trump warned that credit-card companies would violate federal law if they fail to cap interest rates at 10%. (BBN)
Trump indicated he may veto any extension of enhanced Obamacare subsidies, signaling a potential rollback of key Affordable Care Act provisions. (RTS)
Goldman Sachs forecasts robust U.S. economic growth of 2.5% (Q4/Q4) or 2.8% (full-year) in 2026, with tame inflation easing to 2.1%. (BBG)
🏢 Industry
⭐ Editor’s Pick: Google co-founder Sergey Brin joined fellow founder Larry Page in severing California residency ties ahead of a looming billionaire tax proposal. (BI)
The Trump Organization and Saudi developer Dar Global announced a $10 billion joint venture to launch luxury real-estate developments across the Kingdom. (NYP)
Walmart plans to expand its drone delivery service to an additional 150 stores this year, targeting more than 270 locations nationwide. (WSJ)
🛢️ Energy & Commodities
⭐ Editor’s Pick: Trump announced a $100 billion oil investment plan for Venezuela in the wake of Maduro's capture. (NN)
Trump declared that no more Venezuelan oil will flow to Cuba, urging the island nation to "make a deal, before it’s too late." (FOX)
Meta struck agreements with U.S. nuclear firms Vistra, TerraPower, and Oklo to secure up to 6.6 gigawatts of clean nuclear power by 2035. (CNBC)
Gold prices surged to a fresh record high above $4,600 an ounce. (INV)
🌕 Crypto
⭐ Editor’s Pick: Coinbase may pull support for the U.S. crypto market-structure bill unless Senate negotiators limit restrictions on stablecoin rewards to disclosure rules only. (TB)
Tennessee ordered Kalshi, Polymarket, and Crypto.com to immediately cease offering sports-betting event contracts to state residents. (CD)
BNY Mellon, the world's largest custodial bank, plans to offer tokenized deposits to institutional investors. (YF)
Dubai banned privacy tokens, citing heightened anti-money laundering and compliance risks. (TF)
TECH
💻 Witness: U.S. Used Mystery Weapon that Brought Venezuelan Troops to Their Knees During Maduro Raid
(Credit: Apple)
The Scoop: A viral eyewitness account shared by the White House press secretary Karoline Leavitt claims that U.S. forces used a sonic or directed-energy weapon against Venezuelan defenders during the operation that captured President Nicolás Maduro, Fox News reports.
The Details:
A man claiming to be a guard at a Caracas military base described a sudden loss of radar and an onslaught of drones and small U.S. forces.
The witness said defenders experienced intense symptoms — including nosebleeds, vomiting blood, and collapse — allegedly after a “very intense sound wave” was deployed.
"At one point, they launched something; I don’t know how to describe it," he said. "It was like a very intense sound wave. Suddenly I felt like my head was exploding from the inside."
He also described U.S. troops as technologically advanced, firing with overwhelming precision while Venezuelan forces were unable to resist.
“Those twenty men, without a single casualty, killed hundreds of us,” he claimed. “We had no way to compete with their technology, with their weapons. I swear, I’ve never seen anything like it.”
Leavitt posted the account on X but neither the White House nor the Pentagon has confirmed the use of any sonic or energy weapon.
What’s Next: The dramatic account will likely intensify public curiosity and political debate, but officials and independent analysts will be under pressure to clarify whether any exotic weapons were used.
Tech Roundup
🧠 AI
⭐ Editor’s Pick: Alibaba’s Justin Lin says Chinese AI firms have less than a 20% chance of overtaking U.S. leaders like OpenAI and Anthropic through major breakthroughs over the next 3–5 years. (BBG)
Google launched new Gemini Enterprise AI agents for retailers, enabling personalized shopping assistants for product discovery, customer support, food ordering, and smart upselling. (CXD)
Anthropic unveiled new health-care features for Claude, allowing users to securely share medical records with the AI to gain clearer insights into their health data. (ANT)
Qatar and UAE joined Pax Silica, a U.S.-led initiative to strengthen technology supply chains, committing to closer cooperation on AI and semiconductors. (ROW)
Nvidia and Mercedes-Benz are teaming up to integrate advanced AI into vehicles, with the partnership aimed at delivering smarter, more intuitive driving experiences. (BBG)
🤖 Robots & Drones
⭐ Editor’s Pick: CES 2026 highlighted a robotics boom, led by Boston Dynamics' production-ready Atlas humanoid with superior strength and dexterity, joined by advanced home, factory, and assistive bots from LG, Roborock, and Unitree. (IE)
The Commerce Department dropped plans to impose new restrictions on Chinese-made drones. (TH)
Dubai deployed AI-powered autonomous robots to clean its beaches overnight, using advanced sensors and machine learning to efficiently collect trash. (UAN)
🚀 Defense & Space
⭐ Editor’s Pick: NASA is conducting the first medical evacuation in ISS history, returning four Crew-11 astronauts early to Earth due to a serious but stable medical issue with one crew member. (SP)
The U.S. Navy is quietly accelerating its drone fleet buildup, integrating swarms of low-cost, autonomous unmanned surface and aerial vehicles to enhance distributed maritime operations. (TNI)
Lockheed Martin tested its mission autonomy tech in the UK, showing drones working together on missions, with its MDCX-X platform controlling a quadcopter and a fixed-wing drone at the same time. (NGD)
💰Venture Capital
⭐ Editor’s Pick: Nigerian drone startup Terra Industries emerged from stealth with a $11.75 million round led by Joe Lonsdale’s 8VC. (TC)
Torq, developer of an autonomous AI-powered security operations platform, raised $140 million in funding led by Merlin Ventures, achieving a $1.2 billion valuation. (BBG)
ATG emerged from stealth with $15 million in pre-seed funding led by Y Combinator CEO Garry Tan to develop Autonomous, an AI-powered wealth strategist app. (BI)
Tucuvi, the startup building AI agents that check in with patients, raised $20 million in Series A funding led by Cathay and Leadwind. (TEU)
FREEDOM
📢 Report: UK Weighs Coordinated Ban on Elon Musk’s X With Australia and Canada
(Credit: Simon Dawson/No 10 Downing Street)
The Scoop: Britain is weighing a possible ban on Elon Musk’s X — and is quietly sounding out Australia and Canada about a coordinated response — as Prime Minister Keir Starmer’s government ramps up pressure on social media platforms under the UK’s new Online Safety Act, according to GB News.
The Details:
Starmer said “all options” are on the table, including a ban, after X’s Grok AI was used to generate deepfake nude images.
The Online Safety Act gives regulator Ofcom power to fine platforms up to 10% of global revenue and impose bans in extreme cases.
UK officials reportedly contacted Australia and Canada to avoid acting alone and triggering backlash from Trump.
Australia’s PM Anthony Albanese condemned Grok’s misuse, calling it “abhorrent” and evidence that social media lacks responsibility.
Canada denied it is considering a ban, with a cabinet minister Evan Solomon publicly distancing Ottawa from London’s approach.
Musk accused Starmer’s government of acting “fascist” and using AI concerns as a pretext for censorship.
What’s Next: Rep. Anna Paulina Luna (R-FL) is drafting legislation that would let Washington impose sanctions on the U.K. — and potentially on Starmer personally — if Britain moves ahead with banning Elon Musk’s social platform X under its Online Safety Act.
Freedom Roundup
🏛️ Policy & Culture
⭐ Editor’s Pick: Trump plans to speak with Elon Musk about using Starlink to restore internet access for protesters in Iran. (IR)
Bessent announced new initiatives to further investigate Minnesota-based money transmitters as part of an ongoing federal probe into fraud. (JTN)
German State Premier Daniel Günther is facing criticism after calling for stricter crackdowns on news sites and social media to fight disinformation. (BRUS)
That's a wrap! You're officially caught up on all things tech, markets and freedom. Subscribe to CAPITAL below.
Feel free to reply to this email with any questions and/or comments.
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.
