Inside the Trump-Musk Truce

Welcome back!

Here’s your must-read news this morning:

• U.S.-China Deal Details

• Nvidia Industrial AI Cloud

• Trump-Musk Call

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

— Josh

MARKETS

💰 Trump Hails U.S.-China Deal to Boost Rare Earth Minerals Trade

The Scoop: President Donald Trump announced that the U.S. and China have reached a framework to implement last month’s Geneva trade deal, pending final approval from him and President Xi Jinping.

The Details:

• Trump said negotiators finalized the framework in London, reaffirming the May agreement that paused tariffs for 90 days despite earlier tensions.

• Trump said China will supply rare earths and magnets, while the U.S. will allow more Chinese students to attend American universities,

• The U.S. will impose a 55% tariff on Chinese goods, while China will apply a 10% tariff on U.S. goods.

• Beijing imposed a six-month limit on easing rare-earth export licenses to U.S. automakers and manufacturers, while the U.S. agreed to relax restrictions on jet engine parts and ethane sales.

What’s Next: Treasury Secretary Scott Bessent testified to House lawmakers that the Trump administration may extend the 90-day tariff pause beyond July 9 for key trading partners showing “good faith,” while Trump said he plans to notify countries of unilateral tariffs in two weeks, warning that they can “take it, or leave it.”

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: U.S. consumer prices edged up just 0.1% in May, falling short of expectations for the fourth straight month, a sign that the Trump administration’s tariffs aren’t driving up costs for American households, with the core consumer price index rising 2.4% annually. (CNBC)

• The U.K. economy contracted 0.3% in April, a sharp decline from March’s 0.2% growth, driven by global trade tariffs and domestic tax increases. (FP)

• The U.S. and Canada are negotiating an economic and security deal, including Canadian participation in Trump’s Golden Dome missile shield and increased Arctic infrastructure investment. (CBC)

• Gold has surpassed the euro as the world’s second-largest reserve asset behind the dollar, comprising 20% of global reserves compared to the euro’s 16%, while the dollar’s share fell to 46%, according to the ECB report. (WSJ)

• DoubleLine's Jeffrey Gundlach warned of a looming “reckoning” for U.S. Treasuries, recommending increased allocations to non-dollar investments. (BBG)

• Vice President JD Vance joined Trump in criticizing Federal Reserve Chairman Jerome Powell, accusing the Fed of "monetary malpractice" for not cutting interest rates. (X)

📈 Stock Market

• ⭐ Editor’s Pick: Palantir hit a record high of $135.51, boosting its market cap to $313 billion (INV)

• Oklo, a nuclear energy startup, is aiming to raise up to $400 million through a secondary share offering. (BW)

• Voyager Technologies, a space and defense tech firm, raised $382.8 million in its U.S. IPO, capitalizing on heightened global demand for military and aerospace innovation. (YF)

• Victoria’s Secret reported Q1 adjusted earnings of $0.09 per share and revenue of $1.353 billion, topping analyst estimates of $0.02 and $1.32 billion. (ZER)

• Chewy reported a Q1 earnings per share of $0.35, topping analyst expectations of $0.32, with revenue reaching $3.12 billion, exceeding the $3.08 billion consensus. (BW)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Energy Secretary Chris Wright challenged the EIA's 2026 oil production decline forecast, arguing that policy-driven cost reductions and robust market dynamics will sustain drilling, despite the agency's concerns over weak oil prices and maturing shale plays. (OP)

• The World Bank’s board ended its ban on nuclear power funding and is exploring support for natural gas exploration and production to enhance electricity access and advance its core development goals. (FP)

• Oklo announced Wednesday that the Defense Department's energy logistics agency issued a notice of intent to award a power purchase agreement for a pilot reactor. (IBD)

• Gold prices jumped in Asian trading, with spot gold rising 0.6% to $3,374.94 an ounce, fueled by safe-haven demand due to escalating fears of military action involving Iran. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: The Senate voted 68-30 to invoke cloture on the GENIUS Act, advancing stablecoin regulation for an imminent final vote. (CD)

• Stripe will acquire cryptocurrency wallet provider Privy, with terms undisclosed, deepening its crypto market presence following the recent purchase of stablecoin infrastructure firm Bridge. (BBG)

• Polygon co-founder Sandeep Nailwal has taken on the role of CEO at the Polygon Foundation after Mihailo Bjelic’s departure, announcing a renewed focus on Polygon’s Agglayer and PoS networks while phasing out the Polygon zkEVM. (CN)

• Connecticut has passed legislation prohibiting state and local governments from investing in crypto or establishing a crypto reserve. (TB)

• GameStop announced a $1.75 billion offering of zero-coupon convertible senior notes, likely to fund potential bitcoin-purchases. (CT)

• NFT collection Pudgy Penguins announced a partnership with NASCAR, with limited details revealed. (X)

  
  

TECH

💻 Nvidia to Build First Industrial AI Cloud in Germany

The Scoop: Nvidia announced it is building the world’s first industrial AI cloud in Germany, featuring 10,000 GPUs, to transform European manufacturing, with industry leaders like BMW, Mercedes-Benz, and Schaeffler adopting its AI-driven technologies.

The Details:

• Nvidia’s Germany-based AI factory, equipped with DGX B200 systems and RTX PRO Servers, will accelerate manufacturing applications like digital twins and robotics, using CUDA-X and Omniverse platforms.

• CEO Jensen Huang said the platform will create an “AI factory” to power simulation-first manufacturing, with software from Siemens, Ansys, and Cadence enhancing product lifecycles.

• BMW and Mercedes-Benz are using Omniverse for digital twins to optimize factory layouts and assembly lines, while Schaeffler leverages AI for robotic automation across 100+ plants.

• Cadence’s Millennium M2000 Supercomputer, paired with Nvidia’s Blackwell platform, cuts simulation times by 20x for firms like Ascendance, boosting aviation design efficiency.

What’s Next: Nvidia’s Jensen Huang warned that U.S. restrictions on global AI development could boost China’s tech stack, led by Huawei, and stressed that the Germany AI cloud will help European manufacturers adopt U.S.-led AI technology to stay competitive.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Meta unveiled V-JEPA 2, a new AI "world model" designed to better understand the physical world by interpreting object movements, enhancing technologies like delivery robots and self-driving cars. (CNBC)

• DeepL, a German AI translation startup, announced Wednesday it is deploying an advanced Nvidia system capable of translating the entire internet in 18 days, a sharp improvement from its prior 194-day estimate. (CNBC)

• Disney and Comcast sued Midjourney, alleging the AI image generator’s use of their iconic characters constitutes a “bottomless pit of plagiarism.” (RTS)

• Meta launched a generative AI video editing feature in its Meta AI app, allowing users to modify outfits, locations, and lighting with over 50 preset AI prompts for easy video editing and sharing. (MET)

• Koray Kavukcuoglu, who currently serves as DeepMind’s chief technology officer, will take on the newly created role of Google’s chief AI architect, reporting directly to CEO Sundar Pichai. (SEM)

🤖 Robotics & Frontier Tech

• ⭐ Editor’s Pick: Beijing will open the world’s first “4S store” for AI robots in August, with ten firms partnering to offer sales, maintenance, and services to customers, state media claims. (CD)

• 1X Technologies introduced Redwood, an AI model powering its humanoid robot NEO, which enables it to perform household tasks autonomously. (RR)

• The NHS in England unveiled plans to expand robotic surgery, targeting 500,000 annual procedures by 2035—up from 70,000 in 2023 and 2024—to reduce patient waiting times. (TG)

• Shenzhen celebrated the People’s Republic of China’s 75th anniversary with a drone show of over 10,000 autonomous drones, foreshadowing their role in future warfare. (AM)

• Researchers from the University of Cambridge and University College London have developed a cost-effective, durable robotic "skin" that, when applied like a glove to robotic hands, allows robots to detect environmental cues with human-like sensitivity. (TX)

🤖 Hardware & Industry

• ⭐ Editor’s Pick: Nintendo reported selling over 3.5 million Switch 2 consoles globally in the first four days of its launch, a record for the company’s hardware, with a goal to reach 15 million units sold by March 2026. (BBG)

🚀 Defense & Space

• ⭐ Editor’s Pick: The Pentagon is reevaluating the AUKUS agreement on sharing nuclear-powered submarine technology with Australia and the UK, stating the security pact must align with its "America First" priorities to strengthen defense cooperation. (USNI)

• Anduril offered Colossus Review an exclusive tour of its cutting-edge R&D labs, led by former SVP of Engineering Adnan Esmail. (CR)

• The U.S. Army's SMASH 2000L, an AI rifle scope recently demonstrated in Germany, tracks small drones and ensures soldiers fire only when a hit is certain. (IE)

• Anduril is eyeing expansion into Poland’s thriving combat drone market, potentially launching production with a local partner to leverage the nation’s military modernization efforts. (DF)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: German startup Proxima Fusion secured €130 million ($148 million) in Europe’s largest private fusion funding round, co-led by Cherry Ventures and Balderton Capital, to develop the world’s first commercial nuclear fusion power plant. (PB)

• Coco Robotics, a startup deploying cooler-sized wheeled delivery robots, has raised $80 million in fresh funding from investors including OpenAI CEO Sam Altman. (BBG)

• Geothermal company Fervo Energy secured $206 million, including $100 million in project-level preferred equity from Breakthrough Energy Catalyst, to advance a new Utah power plant. (TG)

• Wandercraft, a developer of AI-driven self-balancing robotic mobility systems, raised $75 million, led by Renault Group. (GNW)

• Spanish quantum software startup Multiverse Computing raised $215 million in Series B funding, led by Bullhound Capital. (CB)

FREEDOM

🤝 Musk Phoned Trump Before Apologizing for Attacks

The Scoop: Tesla CEO Elon Musk initiated a Monday night call with Trump and later apologized on X for his attacks, aiming to quell their public feud and begin the process of mending their relationship.

The Details:

• Musk called Trump before posting on X on Wednesday, expressing regret for “some” posts that “went too far,” following attacks that included calls to “kill” the president’s “Big, Beautiful Tax Bill,” unsubstantiated “Epstein File” claims, and backing Trump’s impeachment.

• The dispute began when Musk, who exited his 130-day role leading the cost-cutting DOGE last month, slammed the tax bill as a “disgusting abomination” that would inflate the national debt.

• Trump hit back, claiming Musk had “lost his mind” and gone “crazy,” while publicly floating cuts to federal contracts for Musk’s companies.

• Vice President JD Vance and White House Chief of Staff Susie Wiles pressed Musk last week to de-escalate, with Trump later calling the apology “very nice.”

What’s Next: Although Trump expressed disappointment with Musk over his criticism of the tax bill, he told Post columnist Miranda Devine, “I have no hard feelings,” and suggested reconciliation hinges on national priorities, stating, “I guess I could, but we have to straighten out the country.”

Freedom Roundup

🏛️ Economic & Education Policy

• ⭐ Editor’s Pick: The House advanced Trump’s $9.4 billion spending-cuts package targeting funding for NPR, PBS, and USAID, setting the stage for a full vote today. (FOX)

• Secretary of State Marco Rubio is pressing for an investigation into whether Harvard University violated U.S. sanctions by partnering on a China health insurance conference that may have included blacklisted officials. (NYT)

• Sen. Thom Tillis (R-NC) said Republican senators aim to lower the House-passed $40,000 SALT limit to at least $30,000. (BT)

• The Treasury Department is exploring rule changes to strip tax-exempt status from colleges that use race in admissions, scholarships, or other programs. (BBG)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: A national security nonprofit's report exposes Energy Foundation China, a San Francisco-registered group with Beijing-based staff, as a well-funded entity undermining U.S. energy interests while advancing Chinese-backed green initiatives. (FOX)

• The U.S. will fund the replacement of Huawei telecommunications towers in Panama with American technology, aiming to curb China's regional influence. (BBG)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Brazil’s Supreme Court ruled that social media firms must be held accountable for certain user-generated content on their platforms. (RTS)

• Walmart is facing boycott threats from Trump supporters after heiress Christy Walton placed a full-page ad promoting “No Kings,” an anti-Trump group staging protests nationwide on Saturday, coinciding with the president’s military parade in Washington. (WEX)

• Corporate DEI programs are increasingly being scaled back or rebranded as companies face legal challenges, shareholder pressure, and shifting political climates, though some firms are quietly adapting their initiatives to focus on broader inclusion metrics. (WSJ)

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