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— Josh
MARKETS
💰 U.S. Wholesale Prices Unchanged in June, Defying Tariff Critics
(Credit: Gage Skidmore)
The Scoop: Prices paid to U.S. businesses for goods and services remained unchanged in June, challenging expectations that President Donald Trump’s tariffs would fuel inflation, according to the latest producer price index (PPI) data.
The Details:
The Department of Labor reported a flat PPI, against economists’ predictions of a 0.2% rise, following a 0.3% increase in May.
Annual PPI inflation slowed to 2.3%, below the forecasted 2.5% and down from May’s 2.6%.
Goods prices rose 0.3%, driven by communication equipment and durable consumer products, but a 0.1% drop in services offset these gains.
Core PPI, excluding food and energy, was also flat, with its annual rate dropping to 2.6% from 3.0% in May, signaling easing inflationary pressures.
What’s Next: The lack of clear tariff-driven price increases suggests sector-specific dynamics are at play, with the Federal Reserve likely to monitor these trends closely before adjusting interest rates, as markets anticipate no rate cuts in the near term.
Markets Roundup
🏦 Economy & Policy
⭐ Editor’s Pick: Trump said it is “highly unlikely” that he will fire Fed chair Jerome Powell following reports suggesting that he told congressional Republicans he was considering it. (AX)
Bahrain announced a $17 billion investment in the U.S., including a $7 billion deal for 12 Boeing jets and 40 GE engines, expected to create 30,000 jobs. (UT)
Texas and Florida metros like Houston and Miami led U.S. economic and population growth from 2010 to 2023, fueled by pro-growth policies. (FBN)
The EU is preparing potential tariffs targeting U.S. tech services, in addition to a €72 billion ($83.4 billion) package of retaliatory tariffs on American goods. (FT)
Trump said that the U.S. and India are "very close" to finalizing a trade deal to open India's market. (WION)
📈 Stock Market
⭐ Editor’s Pick: Larry Ellison overtook Mark Zuckerberg as the world’s second-richest person, with a net worth of $251.2 billion. (BBG)
TSMC's second quarter revenue reached New Taiwan Dollars $933.80 billion ($31.7 billion), slightly above the expected New Taiwan Dollars $931.24 billion, with net income soaring 61% year-on-year. (CNBC)
PepsiCo reported second quarter earnings of $2.12 per share, surpassing the $2.03 expected, and revenue of $22.73 billion, beating the $22.27 billion forecast. (SA)
Goldman Sachs' second-quarter earnings beat the $9.48 consensus estimate, with revenue up 15% year-over-year to $14.58 billion. (BZ)
Online firearms retailer GrabAGun, backed by 1789 Capital, debuted on the New York Stock Exchange with new board member Donald Trump Jr. ringing the opening bell. (FBN)
🏢 Industry
⭐ Editor’s Pick: TSMC is expediting construction of its second and third Arizona chip plants by "several quarters" to address strong U.S. demand for smartphone and AI chips. (NIK)
Trump said he has persuaded Coca-Cola to reintroduce cane sugar in U.S. Coke beverages. (X)
Volvo plans to produce its bestselling crossovers at its South Carolina plant to mitigate the impact of U.S. tariffs. (AN)
Japanese researchers achieved a record-breaking internet speed of 1.02 petabits per second, fast enough to download the entire Netflix library in one second. (DT)
💵 Energy & Commodities
⭐ Editor’s Pick: Italian energy giant ENI signed a 20-year deal with Virginia-based Venture Global to import 2 million metric tons of LNG annually, marking ENI’s first long-term contract with a U.S. gas producer. (POL)
The Biden administration's $10 billion push for an electric USPS delivery fleet has faltered, with only 250 trucks built in two years, far below expectations. (NYP)
Iran-backed militias are suspected in drone strikes on Iraqi Kurdistan oilfields, halting up to 200,000 bpd. (OP)
The Dutch government has lowered its offshore wind farm targets for the next 15 years due to rising costs. (DN)
Microsoft and Idaho National Laboratory partnered to leverage artificial intelligence to streamline the permitting process for new nuclear power plants. (RTS)
🌕 Crypto
⭐ Editor’s Pick: Coinbase launched the Base App, replacing its Coinbase Wallet, integrating wallet, trading, payments, social media, messaging, and mini-apps on its Ethereum Layer-2 Base blockchain. (CT)
The U.S. Marshals Service holds just 28,988 Bitcoin, worth approximately $3.44 billion, far below the expected roughly 200,000 BTC, as revealed by a FOIA request. (TB)
Ethereum surged past $3,300, driven by a record $726 million in daily net inflows to spot ETH ETFs. (CP)
Bank of America is developing a dollar-pegged stablecoin, as CEO Brian Moynihan anticipates a launch in partnership with other firms. (RTS)
Michael Saylor’s Strategy hit an all-time high market cap of $128.4 billion, coinciding with bitcoin's record peak above $122,000. (TB)
TECH
🤖 Scientists Create Robots That Grow and Heal by Consuming Other Machines
(Credit: Tara Winstead)
The Scoop: Scientists at Columbia University have developed robots capable of "growing," "healing," and improving themselves by integrating materials from their environment or other robots, a breakthrough called "Robot Metabolism." Watch the presentation here.
The Details:
Detailed in Science Advances, Robot Metabolism allows robots to absorb and reuse parts, mimicking biological growth and adaptation.
The Truss Link, a magnetic modular robot, demonstrated this by self-assembling into 2D and 3D structures, even boosting its speed by 66.5% by integrating a new part as a walking stick.
Unlike static robot designs, this approach enables machines to physically adapt, repair, and recycle parts, advancing autonomy.
Led by Philippe Martin Wyder and Hod Lipson, the research aims for robots that sustain themselves in challenging environments like disaster zones or space.
What’s Next: Robot Metabolism could revolutionize fields like disaster recovery and space exploration, enabling robots to independently adapt and maintain themselves, though researchers caution about ethical implications of self-sustaining machines.
Tech Roundup
🧠 AI
⭐ Editor’s Pick: OpenAI plans to take a commission from ChatGPT shopping sales as part of its strategy to boost revenues. (FT)
Scale AI is reducing its global workforce by approximately 14%, affecting around 200 full-time employees. (VER)
Google is enhancing its Search platform with Gemini 2.5 Pro, its most advanced AI model, and Deep Search for advanced reasoning, available to AI Pro and Ultra subscribers. (TK)
xAI is hiring a fullstack engineer with a salary of up to $440,000 to develop AI-powered anime girl avatars for Grok. (X)
Trump Media applied for trademarks "Truth Social AI" and "Truth Social AI Search" to integrate artificial intelligence into its platform. (PRW)
🤖 Hardware & Robotics
⭐ Editor’s Pick: Software engineer Andrew Nelson uses drones, AI, and robotic pickers to run a fully autonomous 7,500-acre farm in Washington’s Palouse region. (WSJ)
Ai-Da, the world’s first humanoid robot artist, unveiled an AI-generated oil painting titled "Algorithm King" of King Charles III. (SKY)
Dublin, Ohio, launched a two-year pilot program deploying two autonomous AI-powered security robots. (FOX28)
Shenzhen Dobot's CR 30H series, a six-axis robotic arm, lifts 66 pounds at a record-breaking 300 degrees per second. (EL)
Researchers have developed the EleBot, a 3D-printed bioinspired robot with a flexible, powerful trunk that mimics an elephant's anatomy. (TEX)
🚀 Defense & Space
⭐ Editor’s Pick: Chinese hacking group Salt Typhoon compromised an unnamed state's National Guard network in 2024, stealing sensitive data and raising concerns about undetected breaches in defense systems. (DO)
The European Commission proposed €2 trillion ($2.3 trillion) seven-year budget starting in 2028, significantly increasing defense funding to €131 billion ($152 billion), a fivefold rise. (CNBC)
The U.S. unveiled the LUCAS drone, a low-cost, kamikaze combat system designed to rival Iran's Shahed-136. (UNN)
World's first hydrogen-powered silent stealth tank, the K3, is under development by Hyundai Rotem with fuel cells, AI fire-control and autonomous driving. (IE)
Zepher Flight Labs' Z1 hydrogen-powered drone achieves vertical liftoff at max weight, flying silently at 12,000 feet to evade enemy radars. (IE)
💰 Venture Capital & Deals
⭐ Editor’s Pick: Investors are discussing a potential deal that could value Anthropic at over $100 billion. (TI)
Bedrock Robotics emerged from stealth with $80 million in funding, led by 8VC, to develop autonomous technology to retrofit construction equipment. (RT)
Firestorm Labs raised $47 million in Series A funding, led by Lockheed Martin Ventures, to scale its 3D-printed Unmanned Aircraft Systems production for rapid, cost-effective battlefield solutions. (WT)
Subterranean mapping startup Exodigo raised $96 million in a Series B funding round led by Zeev Ventures and Greenfield Partners at $700 million. (SA)
Cyber risk intelligence startup iCounter emerged from stealth with a $30 million Series A led by SYN Ventures to launch its AI-driven platform for assessing digital risks. (AX)
FREEDOM
🪚 Senate Passes $9 Billion in DOGE Cuts Targeting Foreign Aid, NPR and PBS
(Credit: CSPAN)
The Scoop: Senate Republicans secured a major win for President Donald Trump, passing a $9 billion rescission bill early Thursday morning to claw back foreign aid and public broadcasting funds, sending it to the House for a final vote by Friday.
The Details:
The 51-48 vote approved cuts targeting $8 billion from USAID and $1.1 billion from NPR and PBS, aligning with Trump’s Department of Government Efficiency (DOGE) mission to eliminate spending.
A carveout for AIDS prevention funding and other concessions rallied enough GOP support, while Republicans fended off Democratic amendments.
Senate Majority Leader John Thune (R-SD) and White House budget chief Russ Vought hailed the bill as a bold step toward fiscal responsibility, with more rescissions planned.
What’s Next: The House, led by Speaker Mike Johnson (R-LA), must act swiftly to pass the Senate’s bill by Friday to avoid mandatory spending under the Impoundment Control Act, setting the stage for further GOP-led budget cuts.
Freedom Roundup
🏛️ Policy
⭐ Editor’s Pick: The House passed a procedural vote 217-212, enabling floor votes on Thursday for the GENIUS Act (stablecoin regulation), Clarity Act (crypto market framework), and Anti-CBDC Act (banning Federal Reserve digital currency). (CB)
The Transportation Department will rescind $4 billion in U.S. government funding for California’s High-Speed Rail project. (DOT)
Trump is preparing an executive order to enable 401(k) plans to invest in private equity. (WSJ)
The National Science Foundation canceled over $1.1 billion in grants, mostly tied to DEI programs. (CR)
Scott Kupor, the new head of the Office of Personnel Management, issued guidance to federal agency directors, strengthening measures to combat religious discrimination in the workforce. (FOX)
💬 Free Speech & Woke Overreach
⭐ Editor’s Pick: Leaked recordings appear to show Belmont University in Tennessee has rebranded its DEI program as HUB (Hope, Unity, and Belonging) to evade Trump administration scrutiny. (WKRN)
The green Net-Zero Banking Alliance struggles to retain major European lenders as Barclays and UBS decline to recommit following HSBC's exit. (FT)
A former Bath & Body Works manager in Layton, Utah, said she was fired for refusing to use a transgender employee's preferred pronouns due to her faith. (FOX)
Vanderbilt University Medical Center laid off staff members from its LGBTQ Health program, eliminating its “Trans Buddy Program.” (CR)
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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.
