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MARKETS

💰 AWS Outage Disrupts Major Websites, Exposing Global Economy’s Tech Vulnerabilities

(Credit: ananitit/Pixabay)

The Scoop: Amazon Web Services (AWS), a leading cloud infrastructure provider, suffered a major outage on Monday, disrupting nearly 70 services and high-profile platforms like Amazon, Disney+, and Coinbase, highlighting the global economy’s vulnerability to fragile tech infrastructure, CNBC reports.

The Details:

  • AWS identified an “operational issue” affecting multiple services at 2:01 a.m. PDT, with nearly 70 of its own services impacted, and is working on recovery.

  • By 3:03 a.m. PDT, some services, including those reliant on the US-EAST-1 region, showed significant recovery, though AWS continues to address a backlog of queued requests.

  • Affected platforms included Amazon, Disney+, Lyft, McDonald’s app, New York Times, Reddit, Ring, Robinhood, Snapchat, T-Mobile, United Airlines, Venmo, and Verizon, said Downdetector user reports.

  • United and Delta customers reported issues with online reservations, check-ins, and bag drops, while cloud-based games like Roblox and Fortnite and crypto exchange Coinbase faced disruptions.

  • Canva reported increased error rates, and Perplexity’s CEO confirmed their AI search tool was impacted, citing AWS as the root cause.

What’s Next: The outage highlights vulnerabilities in cloud-dependent systems, echoing the July 2024 Crowdstrike incident that caused global chaos. Expect increased scrutiny of cloud infrastructure reliability and calls for enhanced redundancy measures to prevent future outages.

Market Roundup

🏦 Economy

  • Editor’s Pick: Zions Bancorporation's California unit sued three Cantor Group managers for secretly subordinating $60 million in loans, causing a $50 million charge-off that erased $1 billion in market value and shook Wall Street's regional banks. (CNBC)

  • China's economy decelerated to 4.8%, its slowest growth in a year during the third quarter, as persistent property sector woes and escalating trade frictions eroded demand. (RTS)

  • China removed Li Chenggang, its lead international trade negotiator, amid criticisms from Bessent of Li's uninvited Washington visit. (RTS)

  • Trump proposed that the U.S. purchase beef from Argentina to drive down elevated domestic prices for American consumers. (YN)

📈 Hot Stock Picks

  • Editor’s Pick: Alphabet stands out as one of the premier AI stocks for the next decade, propelled by surging Google Cloud revenues up 32% to $13.6 billion in Q3, and undervaluation at a forward P/E below 24 times 2026 earnings, according to Motley Fool.

  • Applied Digital is emerging as an underappreciated enabler of the computing boom through hyperscale GPU data centers, anchored by an $11 billion, 15-year lease with CoreWeave for 400 MW of capacity that promises inflation-protected recurring revenue, Seeking Alpha says.

  • NextEra Energy, a leader in energy with a 2.3% dividend yield, is leveraging its dominant position in renewables to deliver consistent returns for investors seeking generational wealth, according to Motley Fool.

  • Zacks Investment Research has designated Acuity Brands as its "Bull of the Day," fueled by robust fiscal first-quarter results, surging orders, and promising growth in intelligent spaces amid a forward P/E of 20. (ZK)

🏢 Industry

  • Editor’s Pick: GlobalFoundries is repatriating chip-packaging jobs from overseas to upstate New York, creating hundreds of high-wage positions in rural communities. (WSJ)

  • Jeffrey Epstein bombarded Apollo Global Management founder Leon Black with hostile emails in 2015 and 2016, demanding $40 million annually for wealth management services, leaked emails revealed. (NYP)

  • Joe Sanberg, facing collapse at his bank Aspiration, allegedly defrauded investors, including Steve Ballmer, out of over $248 million by faking customers, while striking a bizarre deal with NBA star Kawhi Leonard. (WSJ)

  • A winemaker raised alarms about "really scary" chemical additives in American wines. (FBN)

  • Amid a nationwide surge in apartment rents, affordable sub-$1,000 units remain plentiful in select Southern and Midwestern markets. (FOX)

🛢️ Energy & Commodities

  • Editor’s Pick: Trump again warned India of imposing massive tariffs unless it halts its purchases of discounted Russian oil. (OP)

  • Zelensky said Ukraine has proposed gas and nuclear energy cooperation initiatives to the U.S. (NVU)

  • Anfield Energy secured state approval for its uranium project in Utah, paving the way for domestic production under a new fast-track permitting regime. (CC)

  • U.S. and Liberia discussed strategies to enhance American involvement in the African country’s critical minerals sector. (RTS)

🌕 Crypto

  • Editor’s Pick: Tempo, a Stripe-backed blockchain payments platform, secured $500 million in a Series A round led by Thrive Capital. (FOR)

  • YouTube sensation MrBeast filed a trademark for "MrBeast Financial" to launch a downloadable app focused on crypto exchange and payment processing. (DEC)

  • Tom Lee said BitMine Immersion Technologies purchased 379,271 Ether, valued at nearly $1.5 billion, capitalizing on the same record crypto market liquidation event. (CT)

  • Japan is considering revising rules to allow banks to hold and trade crypto like stocks and bonds. (TB)

SPONSOR

Where to Invest $100,000 According to Experts

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Bloomberg asked where experts would personally invest $100,000 for their September edition. One surprising answer? Art.

It’s what billionaires like Bezos, Gates, and the Rockefellers have used to diversify for decades.

Why?

  • Contemporary art prices have appreciated 11.2% annually on average

  • And with one of the lowest correlations to stocks of any major asset class (Masterworks data, 1995-2024).

  • Ultra-high net worth collectors (>$50M) allocated 25% of their portfolios to art on average. (UBS, 2024)

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*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.

TECH

💻 Meet Katherine Boyle: How a VC Star is Driving America's Defense Boom and Conservative Cultural Shift

(Credit: TBPN/Screenshot)

The Scoop: Katherine Boyle, a venture capitalist and general partner at Andreessen Horowitz, is emerging as a leading voice in Silicon Valley’s shift toward cultural conservatism and defense tech, drawing comparisons to Phyllis Schlafly. Her “American Dynamism” fund, launched in 2022 with $600 million, backs startups in defense, energy, and manufacturing, the New York Times reports.

The Details:

  • Despite her critiques of modern feminism and overeducation, Katherine Boyle, a mother of three with advanced degrees from Georgetown and Stanford, has achieved success as a female investor while advocating for traditional family values.

  • Boyle’s 2022 essay, Building American Dynamism,” outlined a vision to reverse national stagnation by funding tech companies that serve the public good, leading to the creation of billion-dollar startups like Anduril, now valued at $30.5 billion.

  • Boyle’s conservative views, including calls for a return to Judeo-Christian values and increased weapons production, resonate with a growing tech right.

  • With ties to Peter Thiel and Vice President JD Vance, Boyle has shaped venture capital’s embrace of “patriotic investing,” influencing Trump administration policies like the Department of Government Efficiency and a $300 billion defense modernization bill.

What’s Next: Boyle’s influence is likely to grow as Silicon Valley’s conservative shift aligns with Trump administration priorities, potentially boosting her fund’s defense tech investments. If her ideas become mainstream by 2030, as she hopes, they may reshape tech’s role in American policy.

Tech Roundup

🧠 AI

  • ⭐ Editor’s Pick: Elon Musk pegged the odds at 10% that xAI's Grok 5, due out by year-end, will attain artificial general intelligence. (ET)

  • Worshippers worldwide are turning to AI chatbots to converse with God and spiritual figures for personalized guidance. (BBC)

  • AI startup Bystro is pioneering a "ChatGPT for genetics" that interrogates users' DNA for tailored insights on drug responses and health risks, bridging genomic data with everyday primary care consultations. (MAS)

  • Blackstone President Jonathan Gray emphasized AI risk as the firm's top concern in deal evaluations, with the private equity giant retreating from acquiring companies exposed to AI-driven disruption. (FT)

  • Nvidia CEO Jensen Huang credited Trump's tariffs as the catalyst for U.S. reindustrialization, noting that after less than a year, the company is now manufacturing the world's most advanced AI chips domestically. (X)

🤖 Hardware & Robotics

  • ⭐ Editor’s Pick: Engineers at the University of California, San Diego have developed a "smart skin" for miniature soft robots to navigate through delicate environments like human arteries. (JN)

  • Pharmaceutical infrastructure firm PharmAGRI plans to acquire up to 10,000 Optimus humanoid robots from Tesla for deployment in farm operations, drug synthesis, and manufacturing. (YN)

  • Byte, an AI robot developed under the Wildfire Twins project, is being trained to autonomously navigate and extinguish wildfires. (DPA)

  • Miniature Beetleweight robots, each weighing no more than 3.3 pounds and armed with high-speed spinning discs, clashed in head-to-head battles at the UK Beetle Championship in Bristol. (IE)

🚀 Defense & Space

  • ⭐ Editor’s Pick: Ukraine's drone warfare is forcing the U.S. Army to revise its doctrine, requiring drones for every squad by 2026 and adopting Kyiv's rapid procurement to counter battlefield asymmetries. (MIL)

  • SpaceX's Falcon 9 rocket achieved a milestone with its 31st flight, deploying 28 Starlink satellites from Cape Canaveral while its first-stage booster landed flawlessly on a drone ship. (SP)

  • AirJoule Technologies’ atmospheric water generators, developed with the U.S. Army, can provide soldiers with water by harvesting thin air. (DN)

  • U.S. Gen. William “Hank” Taylor revealed he relies on ChatGPT to sharpen analytical models and staff training for routine leadership decisions impacting thousands of troops. (ET)

💰Venture Capital

  • ⭐ Editor’s Pick: CoMind, a developer of a non-invasive brain-monitoring device harnessing Lidar-like technology, secured $60 million in fresh funding led by Plural. (FT)

  • Agritech startup SoilCares secured €5.14 million ($6 million) in seed funding led by Oracle founder Larry Ellison to advance its AI-powered soil-testing tools for sustainable farming. (BP)

  • Upciti, a startup that provides city operations software and hardware to over 150 municipalities across 17 countries, secured a $20 million Series A round led by Notion Capital. (TEU)

  • Former Scale AI director Bilal Abu-Ghazaleh raised $9 million for 1001 AI to develop AI infrastructure for MENA’s construction sectors, with funding led by General Catalyst and Lux Capital. (TC)

FREEDOM

📢 Report: Soros Foundations Helping Fund Anti-Trump 'No Kings' Protests

(Credit: PBS/Screenshot)

The Scoop: Billionaire and Democrat megadonor George Soros’ Open Society Foundations helped fund the "No Kings" protests over the weekend across the U.S., which aimed to depict President Donald Trump as an authoritarian, Fox News reports.

The Details:

  • Soros’ Open Society Foundations, via the Open Society Action Fund, provided a $3 million grant in 2023 to Indivisible, which is managing data and communications for the "No Kings" protests. Since 2017, the foundations have awarded Indivisible $7.61 million.

  • Nationwide protests sought to paint Trump’s leadership as tyrannical, with top Democrats such as Sen. Chuck Schumer (D-NY) and Sen. Bernie Sanders (I-VT) endorsing the demonstrations.

  • Sen. Ted Cruz (R-TX) accused Soros of orchestrating the protests, introducing the STOP FUNDERs Act to target funders of “violent” protests with RICO charges.

  • In 2017, Indivisible received $350,000 from Tides Advocacy, part of the Tides Network, previously linked to funding controversial campus protests.

What’s Next: Should the demonstrations escalate, Cruz’s STOP FUNDERs Act could gain traction, potentially reshaping legal frameworks for protest financing.

Freedom Roundup

🏛️ Policy & Culture

  • Editor’s Pick: A federal lawsuit by conservative group Freedom Path challenges IRS restrictions on 501(c)(4) organizations' political activities as unconstitutionally vague, potentially unleashing unlimited anonymous spending by wealthy donors. (DIS)

  • A British Jewish lawyer was detained by London police during a pro-Palestinian protest outside Israel's embassy for wearing a Star of David necklace deemed potentially offensive to demonstrators. (JPOST)

  • The World Health Organization and European Commission launched EIOS 2.0, an AI system to monitor so-called online “misinformation” in real time. (RTN)

  • Cisco Systems declined to affirm that its DEI programs have undergone rigorous return-on-investment analysis, drawing scrutiny from shareholder advocates. (RCP)

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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.

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