Musk vs Trump: Round Two

Welcome back!

Here’s your must-read news for this morning:

• Musk slams BBB again

• Meta Superintelligence lab revealed

• Mamdani’s accounting mistake

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

— Josh

MARKETS

💰 Senate Set to Vote Today on Trump’s “Big, Beautiful Bill” as Musk Slams Spending Again

The Scoop: Tesla and SpaceX CEO Elon Musk launched another fierce attack Monday on President Donald Trump’s “Big, Beautiful Bill,” branding it “DEBT SLAVERY” and threatening to form a new political party, while vowing to fund primary challengers. Meanwhile, the Senate is "moving toward a vote today" on the bill, Treasury Secretary Scott Bessent told Fox News.

The Details:

• Musk condemned the bill's $5 trillion debt ceiling increase, vowing to counter the "Porky Pig Party" by creating the “America Party” if it passes.

• The billionaire targeted House Freedom Caucus members Andy Harris (R-MD) and Chip Roy (R-TX), threatening to fund challengers against fiscal conservatives who support the measure.

• The bill eliminates clean energy subsidies after 2027—hurting Musk's Tesla solar business—while introducing coal tax incentives countering his renewable investments.

• Trump retaliated on Truth Social, defending EV rollbacks while threatening to investigate Tesla and SpaceX subsidies through DOGE.

• The feud comes after Musk endorsed Trump's impeachment and accused him of being in the "Epstein Files" before apologizing for some of his statements.

• On Sunday, Trump called Musk a "wonderful guy," suggesting further reconciliation was possible.

What's Next: The Senate is 19+ hours into voting on the bill, with GOP leaders working to secure support from moderates and conservatives. Sen. Lisa Murkowski's (R-AK) vote remains a "coin flip." After the Senate approves the bill, the House is expected to return midweek for final passage

Markets Roundup

🏦 Economy

• ⭐ Editor’s Pick: Treasury Secretary Scott Bessent cautioned that countries negotiating in good faith may still face steep tariffs on July 9, but expects a wave of trade deals as pressure intensifies. (BBG)

• The U.S. will resume trade talks with Canada immediately after Canada eliminated its digital services tax on U.S. tech firms. (RTS)

• Trump criticized Japan for its reluctance to purchase American-grown rice, indicating that the U.S. might halt trade negotiations with Tokyo. (INV)

• The European Union is ready to accept a 10% universal tariff on many of its exports to the U.S. but is pushing for reduced rates for critical sectors. (BBG)

• Euro zone inflation edged up to 2% in June, aligning with the European Central Bank’s target. (YF)

• In the Hamptons, securing a spot in pricey, trendy fitness classes—where Cartier bracelets and Lamborghinis are a common sight—has become a status symbol. (WSJ)

• The Chinese Communist Party, now 100 million strong, is attracting new members drawn by the promise of stable state-sector salaries amid a faltering economy. (WSJ)

📈 Stock Market

• ⭐ Editor’s Pick: U.S. equity futures slipped early Tuesday, with Dow futures down 32 points or 0.07%, S&P 500 futures off 0.15%, and Nasdaq 100 futures falling 0.22%, after the S&P 500 hit a record high to cap a strong quarter. (CNBC)

• Oracle shares surged over 5% after a filing revealed a cloud deal poised to generate more than $30 billion in annual revenue. (CNBC)

• Robinhood stock surged 10% to a record high Monday after launching tokenized shares of OpenAI and SpaceX for European users. (CW)

• Video-sharing platform Rumble has been added to the Russell 2000 and Russell 3000 indexes. (RUM)

🏢 Industry

• ⭐ Editor’s Pick: Trump and CBS are in "advanced" settlement talks over a lawsuit tied to a "60 Minutes" interview with Kamala Harris, with attorneys requesting a stay in proceedings until July 3, signaling a potential resolution. (DL)

• Tinder will require new California users to verify profiles with facial recognition technology. (AX)

• Joby Aviation, an electric air taxi company, successfully completed a series of piloted vertical takeoff and landing (eVTOL) flights in Dubai. (AT)

• Temu's U.S. monthly users dropped 51% to 40.2 million from March to June, while Shein's fell 12% to 41.4 million, due to U.S.-China tariffs and the end of the "de minimis" loophole. (FT)

• X has appointed Nikita Bier, the entrepreneur behind the teen-focused social network Gas, as its new head of product to drive innovation and growth. (X)

• Dakota Peters, a 25-year-old who skipped college, now generates over $1 million weekly through her sports trading card company on the live-stream shopping platform Whatnot. (CNBC)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Google has partnered with Commonwealth Fusion Systems, an MIT spinoff, to purchase 200 megawatts of clean fusion power from what CFS claims will be the world’s first grid-scale fusion power plant. (CNBC)

• Agricultural Secretary Brooke Rollins indicated that the Trump administration may exempt certain goods, like cocoa beans and coffee, which are difficult to produce domestically, from proposed tariffs. (WSJ)

• India has more than doubled its U.S. crude oil imports since January to preempt crippling tariffs under Trump. (FT)

• U.S. crude oil production reached a record 13.47 million barrels per day in April, surpassing March’s 13.45 million barrels per day. (INV)

• Tech giants’ pledges to achieve net-zero emissions are increasingly unrealistic as their energy consumption for AI and data centers surges, researchers say. (AFP)

🌕 Crypto

• ⭐ Editor’s Pick: Stablecoin issuer Circle has applied for a U.S. national trust bank license, enabling it to manage its own reserves and provide crypto custody services for institutional clients. (RTS)

• Ric Edelman, founder of Edelman Financial Engines, which manages $300 billion in assets, urged clients to allocate up to 40% of their portfolios to crypto, deeming the traditional 60/40 stocks-to-bonds model outdated for aggressive investors. (DEF)

• Kazakhstan will launch a national crypto reserve, funded by assets seized in criminal cases and coins from state-owned mining operations. (TB)

• Fundstrat’s Tom Lee was named chairman of BitMine Immersion Technologies, a Bitcoin miner that raised $250 million privately to make Ether its primary treasury reserve. (CNBC)

• REX Shares and Osprey Funds will launch the first U.S. staked crypto ETF, the REX-Osprey SOL+Staking ETF, tracking Solana’s price while generating staking yields, with trading set to begin Wednesday. (TB)
  

TECH

💻 Mark Zuckerberg Unveils Meta Superintelligence Labs

The Scoop: Meta CEO Mark Zuckerberg unveiled Monday the creation of Meta Superintelligence Labs, a new AI division backed by $14.3 billion and led by former Scale AI chief Alexandr Wang and former GitHub CEO Nat Friedman, marking the company's most ambitious push yet to lead the race for artificial general intelligence.

The Details:

• The new unit consolidates Meta's scattered AI efforts, bringing together teams working on open-source Llama models, product development, and fundamental research under one roof alongside a dedicated lab for next-generation AI development.

• Wang assumes the role of Meta's chief AI officer while Friedman will oversee AI products and applied research, giving the division heavyweight leadership with proven track records in scaling AI companies.

• Meta has aggressively poached talent from rivals OpenAI and Google, landing key researchers including Trapit Bansal, co-creator of OpenAI's o-series models, and Huiwen Chang, a former Google staffer specializing in advanced AI systems.

• Zuckerberg's internal memo reveals the intensity of AI talent wars, with Meta reportedly offering signing bonuses reaching $100 million to secure top researchers, triggering fierce counteroffers from competitors like OpenAI.

What's Next: Meta is accelerating its superintelligence timeline, targeting breakthrough advances in upcoming Llama 4.1 and 4.2 models while aiming to develop frontier AI capabilities within a year. The company's massive investment and talent acquisition blitz signals an all-out effort to outmaneuver OpenAI and Google in the global race for AI dominance.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Apple is exploring partnerships with Anthropic or OpenAI to integrate their artificial intelligence technology into a revamped Siri, potentially bypassing its own AI models. (BBG)

• BNY Mellon has deployed dozens of AI “digital employees” with logins, working autonomously on tasks like coding and payment validation, with plans to grant them access to email and Microsoft Teams. (WSJ)

• Microsoft's new AI tool, MAI-DxO, diagnoses diseases with 80% accuracy, far surpassing doctors' 20%, marking a "step toward medical superintelligence," says Mustafa Suleyman. (TD)

• OpenAI has no current plans to use Google’s in-house chips for its products, refuting reports that suggested the AI lab was shifting to its competitor’s chips to address rising demand. (RTS)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Amazon has deployed its one-millionth robot and introduced a new generative AI foundation model, DeepFleet, to enhance the efficiency of its global robotic fleet by 10%. (AA)

• Yaskawa America will invest $180 million to build an 800,000-square-foot campus in Franklin, Wisconsin, relocating its U.S. headquarters from Illinois and expanding robotics manufacturing. (RAN)

• Researchers have developed a robotic hand controlled by brainwaves via a non-invasive cap, enabling precise, thought-driven movements for potential medical and assistive applications. (IE)

• VenHub's AI-powered, robot-run store at LAX/Metro Transit Center sells over 400 convenience items, like snacks and personal care products, delivered by robotic arms. (FOX)

• The Indonesian National Police will deploy robots for facial recognition and electronic traffic violation monitoring to enhance efficiency. (INA)

• Swiss agtech startup Caterra will launch its AI-driven Grasshopper robot in 2026, using laser pulses to kill weeds within hours of detection without harming soil or crops. (FF)

🚀 Defense & Space

• ⭐ Editor’s Pick: China plans to commence test flights for a new unmanned drone carrier designed to deploy up to 100 small drones for coordinated attacks. (TN)

• The U.S. military warned that China’s Rocket Force, with over 900 ballistic missiles potentially targeting Taiwan and Pacific assets, poses a growing threat to American bases and allies in the Asia-Pacific. (NW)

• China’s accelerated Mars sample-return mission, potentially landing before NASA’s delayed 2031 effort, threatens U.S. leadership in Red Planet exploration, experts say. (SP)

• The U.S. Space Force is developing a new class of military satellites capable of unpredictable maneuvers in space, departing from traditional fixed-orbit designs that are vulnerable to adversary targeting. (SN)

• The U.S. Air Force and U.S. Space Force met their fiscal 2025 recruiting goals three months early, securing nearly 25,000 of 30,000 contracted recruits for basic training. (MT)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Elon Musk’s xAI secured $5 billion in debt financing through secured notes and term loans, alongside a separate $5 billion strategic equity investment, Morgan Stanley announced. (RTS)

• Cato Networks, a Tel Aviv-based cybersecurity firm, raised $359 million at a $4.8 billion valuation, led by Vitruvian Partners. (TOI)

• Mexico City-based digital bank Klar secured $190 million in a Series C funding round led by General Atlantic, comprising $170 million in equity and $20 million in debt, valuing the fintech at over $800 million. (BBG)

• AI-powered accounting startup Campfire raised $35 million in a Series A round led by Accel. (TC)

• Levelpath, a procurement software firm founded by Scout RFP's former leaders, raised $55 million in a Series B round led by Battery Ventures. (PYM)

• Tailor, a San Francisco- and Tokyo-based enterprise resource planning platform, raised $22 million in a Series A funding round led by investors including Y Combinator and ANRI. (TC)

FREEDOM

❌ Report: Mamdani’s Plan for Government Grocery Stores Stems from Accounting Error

The Scoop: New York Democratic Socialist mayoral candidate Zohran Mamdani claims he can fund socialist grocery stores by cutting city subsidies to "corporate grocery stores," but his plan is based on a fundamental misunderstanding of how existing programs work, according to the Washington Examiner.

The Details:

• Mamdani says his five city-owned grocery stores would cost $60 million, funded by redirecting money from the city's FRESH program, which he claims spends $140 million subsidizing private groceries.

• The FRESH program actually provides tax breaks and regulatory relief to stores opening in food deserts, costing the city about $3.3 million annually in foregone tax revenue—totaling just $20 million over six years.

• Mamdani's $140 million figure comes from private investment by grocery stores themselves, not government spending. He appears to have misread the city's Economic Development Corporation webpage.

• The actual cost to the city through FRESH would take 42 years to reach Mamdani's claimed $140 million, meaning his funding source doesn't exist at the scale he promises.

What's Next: Mamdani could clinch victory Tuesday when New York City’s Board of Elections releases ranked-choice voting results from the primary. If voters ranked Mamdani ahead of rival Andrew Cuomo, it could illustrate his ability to expand beyond core supporters. If many backed Cuomo or left both off their ballots, it signals wider uncertainty about the progressive candidate.

Freedom Roundup

🏛️ Economy & Education

• ⭐ Editor’s Pick: Trump signed an executive order on Monday lifting most U.S. economic sanctions on Syria. (AP)

• The Trump administration notified Harvard University that its investigation uncovered violations of federal civil rights law in the university's treatment of Jewish and Israeli students, jeopardizing its federal funding. (WSJ)

• The Biden administration’s Energy Department disbursed $42 billion for green energy projects in its final hours, despite an inspector general’s warning to suspend operations over conflict-of-interest concerns. (RCI)

• Trump issued a memorandum directing key federal agencies to expedite funding processes for domestic energy infrastructure and critical mineral and material projects. (WH)

💻 Business & Tech

• ⭐ Editor’s Pick: A federal judge rejected Apple's motion to dismiss a significant antitrust lawsuit filed by the U.S. government, permitting the case alleging the tech giant's smartphone market monopoly to proceed. (MDN)

• U.S. government dismantled a North Korean operation that used "laptop farms" to impersonate over 80 individuals and secure remote IT jobs at more than 100 U.S. firms, generating millions to fund Pyongyang’s nuclear program. (TC)

• Apple announced delays in rolling out planned features for EU users this year, citing regulatory challenges in the region. (WSJ)

• Iranian-linked hackers may target U.S. companies and critical infrastructure, especially defense firms tied to Israeli entities, U.S. officials warned. (RTS)

• Supreme Court declined a Coinbase user's bid to block the IRS from accessing his cryptocurrency trading records. (BBG)

• New Pentagon acquisition chief Michael Duffey issued a memorandum approving a DOGE-led initiative to tighten oversight of IT management and consulting contracts. (ID)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Unilever is halting millions in funding to Ben & Jerry’s Foundation, which distributed over $5 million of Unilever’s money in 2022 to mostly progressive groups, after it refused to provide audit documents. (SEM)

• Missouri Attorney General Andrew Bailey (R) issued a Civil Investigative Demand to Google, YouTube, and Facebook to probe if they unlawfully restricted lawful speech and commerce on firearms. (KTTN)

• The America First Policy Institute filed a civil rights complaint, alleging Cornell University illegally prioritized DEI metrics in hiring, bypassing more qualified candidates to promote equity. (WSJ)

• Duke Law Journal allegedly provided undisclosed bonus points for applicant essays focusing on race and instructed students to remain silent about the practice. (WFB)

• Michigan universities are scaling back Juneteenth celebrations in response to Trump administration anti-DEI executive orders. (MA)

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