Inside the Secretive Trading Giant Minting Monster Returns

Welcome back!

Here’s your must-read news this morning:

• Vitol’s massive returns 

• Apple’s AI search plans

• Farage’s free speech warning 

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

— Josh

MARKETS

💰 Inside Vitol: The Secretive Energy Trading Giant Minting Monster Returns

The Scoop: Vitol, a highly secretive yet dominant force in global commodity trading, has quietly amassed staggering profits, averaging over $12 billion annually from 2022 to 2024. Operating from an unassuming London office, the company’s lean structure and unique partnership model have enriched its nearly 600 senior employee-shareholders, while its low profile keeps it largely unknown outside industry circles, the Financial Times reports.

The Details:

• Vitol’s net profits soared from $2.3 billion in 2019 to a record $15.1 billion in 2022, followed by $13.2 billion in 2023 and $8.7 billion in 2024, with $32 billion returned to employee-shareholders via share repurchases since 2014.

• Last year, Vitol traded more oil daily than the combined consumption of Germany, France, Italy, Spain, and the UK, alongside $69 billion in gas and $22 billion in power.

• With a lean workforce of about 1,800 in its core trading entity, Vitol’s partnership structure caps individual stakes at 5%, fostering a collegiate culture and financial agility, supported by $30.7 billion in equity and minimal debt ($3.6 billion).

What’s Next: Vitol’s financial strength and cash reserves position it to navigate a cooling energy market, but sustaining its edge will demand sharper trading strategies and disciplined expansion. While speculation swirls about potential bids for assets like those of struggling BP, Hardy signals caution, prioritizing agility over large-scale acquisitions.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: The head of the European Parliament’s trade committee expressed doubts about the U.S.-EU trade deal, predicting amendments during the legislative approval process. (AP)

• U.S. factory orders, excluding transportation, rose 1.1% to $201.1 billion in July, signaling resilient manufacturing demand. (BN)

• The U.S. and Japan are nearing a deal to implement lower tariffs on Japanese auto imports, reducing the rate from 27.5% to 15%. (RTS)

• Federal Reserve Governor Christopher Waller advocated for initiating interest rate cuts at the September meeting. (CNBC)

• Minneapolis Federal Reserve President Neel Kashkari said he is not forecasting a recession. (RTS)

📈 Stock Market

• ⭐ Editor’s Pick: Salesforce outperformed expectations with fiscal Q2 adjusted earnings of $2.91 per share and revenue of $10.24 billion, but its stock slid 4% in extended trading due to disappointing guidance. (CNBC)

• American Eagle Outfitters reported Q2 adjusted earnings of $0.45 per share and revenue of $1.28 billion, exceeding Wall Street estimates, driven by campaigns featuring Sydney Sweeney and Travis Kelce. (INV)

• Figma reported Q2 earnings, posting breakeven earnings per share and revenue of $249.6 million, slightly above consensus estimates of $248.8 million. (BAR)

• C3 AI reported fiscal Q1 revenue of $70.3 million, down from $87.2 million a year ago, with a wider GAAP net loss of 86 cents per share. (GF)

🏢 Industry

• ⭐ Editor’s Pick: Paramount is in the final stages of negotiating to acquire Bari Weiss’s Free Press for up to $200 million—and bring Weiss aboard in a senior editorial role at CBS News. (NYP)

• The Koch family has agreed to acquire a 10% stake in the New York Giants at a record-breaking $10 billion valuation. (TSN)

• A federal jury ordered Google to pay $425 million for illegally collecting data from 98 million users who disabled tracking. (CHN)

• Trump on Thursday will host over two dozen tech and business leaders, including Meta’s Mark Zuckerberg and Apple’s Tim Cook, for a dinner in the newly renovated White House Rose Garden. (TH)

💵 Energy & Commodities

• ⭐ Editor’s Pick: OPEC+ will consider further increasing oil production at a Sunday meeting, potentially unwinding an additional 1.65 million barrels per day of cuts to regain market share. (RTS)

• The advanced nuclear fuel market is gaining momentum as Centrus Energy begins producing next-generation enriched uranium at its Ohio facility. (BBG)

• ConocoPhillips plans to cut up to 25% of its global workforce, or roughly 3,250 jobs, as part of a broad restructuring to boost efficiency. (OP)

• A German agency warns that the country faces power shortages by 2030, as aging coal plants retire and renewable energy struggles to meet demand. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: Crypto-based prediction market platform Polymarket received CFTC approval to operate in the U.S. (DEC)

• A newly discovered malware is targeting Ethereum smart contract developers by exploiting GitHub repositories to steal sensitive data, posing a threat to the blockchain ecosystem. (CT)

• Treasury B.V., a Dutch firm backed by Winklevoss Capital and Nakamoto Holdings with a $147 million investment, aims to become Europe's leading Bitcoin treasury.

• Tokenized Pokémon cards are surging in popularity, with digital collectibles tied to physical cards fueling renewed interest in the blockchain-based trading market. (GG)

• The Trump family-backed American Bitcoin, which employs a dual strategy of acquiring and mining BTC, surged nearly 17% to $8.04 per share on its Nasdaq debut. (TB)

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TECH

💻 Apple to Challenge AI Search Giants with "World Knowledge Answers" in Siri Overhaul

The Scoop: Apple plans to enter the AI-powered search market with “World Knowledge Answers,” launching in spring 2026. Integrated into Siri, Safari, and Spotlight, it aims to rival OpenAI’s ChatGPT, Perplexity AI, and Google’s AI search features, Bloomberg reports.

The Details:

• World Knowledge Answers will support natural language queries, real-time web summarization, and conversational responses, upgrading Siri into a robust answer engine.

• Set for a major Siri overhaul in spring 2026, the system will later expand to Safari and Spotlight on iPhones, enhancing search across Apple devices.

• Apple is testing Google’s AI models for the system, building on their long-standing deal where Google pays billions to remain the default search provider.

• Apple faces Google’s AI Overviews, Microsoft’s Bing with GPT integration, and Perplexity’s AI-native search, all challenging traditional keyword-based search.

What’s Next: World Knowledge Answers could disrupt AI search with Apple’s vast user base and device integration. Success will hinge on matching competitors’ accuracy and speed while upholding privacy standards. The Google partnership may accelerate progress, but Apple must overcome Siri’s historical shortcomings.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Chinese AI startup DeepSeek is developing an advanced AI agent model, set for release by year-end, designed to perform complex multi-step tasks with minimal user input. (BBG)

• Scale AI filed a lawsuit against a former employee and competitor Mercor, alleging he stole trade secrets and attempted to poach major clients. (TC)

• Sports betting platforms are increasingly integrating AI agents, with gambling startups leveraging the technology to predict outcomes. (WIR)

• Tencent’s new open-weight AI model, HunyuanWorld-Voyager, turns a single image into a steerable, 3-D-consistent video walkthrough. (ARS)

• xAI's chief financial officer, Mike Liberatore, departed after just four months, marking the latest high-profile exit from Elon Musk’s AI startup. (WSJ)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: The University of British Columbia launched a first-of-its-kind pilot project deploying robots as campus ambassadors tasked with answering student queries. (SNM)

• Boston Dynamics’ humanoid robot Atlas has achieved a breakthrough by using a single AI model for both walking and grasping. (WIR)

• Figure’s humanoid robot, Figure 02, has mastered loading a dishwasher with plates, dishes, and glasses, as shown in a new video. (DIT)

• Startup X-Up developed an autonomous robot that navigates 18-hole golf courses to seamlessly repair divots. (MBN)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S. Army awarded Lockheed Martin a record-breaking $9.8 billion contract to produce nearly 2,000 Patriot Advanced Capability-3 Missile Segment Enhancement interceptors. (DN)

• The U.S. Army inked a $98.9 million deal with TurbineOne to equip frontline soldiers with AI-powered, offline-capable threat detection via handhelds and drones. (WSJ)

• The USS Gerald R. Ford, the U.S. Navy’s most advanced and largest carrier, brings generational technological leaps and enhanced warfighting flexibility to naval power projection, officials say. (AEI)

• Experts warned a Senate committee that the U.S. risks losing the lunar race to China, which aims to land astronauts on the moon by 2030. (SP)

💰 Venture Capital

• ⭐ Editor’s Pick: Mistral AI is closing a €2 billion ($2.33 billion) funding round that would catapult its valuation to about $14 billion. (BBG)

• HappyRobot raised $44 million in a Series B round led by Base10 Partners to scale its AI agents that automate freight communications, valuing the startup near $500 million. (GNW)

• Orchard Robotics raised $22 million in a Series A round led by Quiet Capital and Shine Capital to deploy its tractor-mounted camera and AI platform for crop management across specialty fruit farms. (TC)

• Etherealize raised $40 million in a Series A round led by Electric Capital and Paradigm to fund privacy, settlement and tokenization tooling for institutional finance. (FM)

FREEDOM

📢 Farage Urges Congress to Challenge Britain’s ‘North Korea’–Style Online Censorship

The Scoop: Reform UK leader Nigel Farage testified before the House Judiciary Committee on Wednesday, comparing Britain’s censorship laws to North Korea and urging the U.S. to pressure London to uphold liberty. Citing high-profile arrests, he warned that the UK’s Online Safety Act and similar EU laws could stifle free speech globally, including in the U.S., and harm transatlantic trade.

The Details:

• Farage urged the U.S. to push back against the UK’s Online Safety Act and EU’s Digital Services Act, warning of a “knock-on” effect on American free speech and tech companies facing hefty fines.

• Farage cited Graham Linehan’s detention as a warning for Americans traveling to the UK and Connolly’s case as evidence of disproportionate punishment, noting her travel restrictions prevented her from joining him in Washington.

• Farage praised Vice President JD Vance’s speech on internal threats to European liberty, emphasizing that political censorship, not parental controls, is the wrong approach to online content.

What’s Next: Farage’s testimony amplifies transatlantic tensions over free speech, with potential U.S. diplomatic or trade pressure on the UK to reconsider its laws. The debate could escalate as Reform UK, now leading UK polls, pushes to repeal the Online Safety Act if elected.

Freedom Roundup

🏛️ Policy, Free Speech & Woke Overreach

• ⭐ Editor’s Pick: ‘Father Ted’ co-creator Graham Linehan is suing the Metropolitan Police for wrongful arrest after being detained at Heathrow over tweets deemed ‘inciting violence’ against transgender people. (RTN)

• A report reveals the three marketing agencies behind Cracker Barrel's failed logo redesign, which was deemed a betrayal of the chain’s nostalgic Americana charm. (FBN)

• Indiana Attorney General Todd Rokita (R) is leading a coalition of 22 states urging the federal government to eliminate DEI requirements from federal contracting policies. (FOX)

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