Reid Hoffman Calls Out Democrats over DEI

Welcome back!

Here’s your must-read news this morning:

• Northeast exodus costs billions 

• Reid Hoffman calls out Democrats

• Sydney Sweeney ad meltdown

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

— Josh

MARKETS

💰 New York and New Jersey Lose $140 Billion as Residents Flee High Taxes for Sunbelt States

The Scoop: New York and New Jersey are hemorrhaging wealth and residents, losing a staggering $140 billion in income over the past decade as people flee high-tax states for sunnier, tax-friendly shores, according to economist Stephen Moore.

The Details:

• From 2015 to 2024, New York lost 2 million residents, more than any state except California, according to Unleash Prosperity’s analysis of census and income tax data.

• New York’s income loss totals $111 billion from 2012 to 2022, while New Jersey lost $31 billion in the same period.

• Residents are relocating to low-tax states like Florida, Texas, and Tennessee, which have no state income tax.

What’s Next: Continued out-migration could further erode the economic dominance of New York and New Jersey, as Southeastern states solidify their status as America’s new economic powerhouses. In New York City, which already has the nation’s highest income tax, Democratic socialist mayoral candidate Zohran Mamdani’s proposed 2% tax hike on the wealthy may accelerate this shift.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Trump said that most trading partners without separate trade deals will face 15% to 20% tariffs on U.S. exports, surpassing the 10% tariff imposed in April. (RTS)

• High taxes in New York and New Jersey spurred a mass exodus, with the region losing $140 billion in income over a decade as residents fled to low-tax states like Florida and Texas. (NYP)

• Comedian Bill Maher conceded he was wrong about Trump’s tariffs, noting the U.S. economy has avoided a depression despite earlier predictions. (FOX)

• Texas factory output soared to a three-year high in July, with the production index jumping to 21.3, far exceeding forecasts, signaling robust manufacturing growth. (FRBD)

📈 Stock Market

• ⭐ Editor’s Pick: Boeing cut its quarterly loss and boosted sales, delivering the most planes since 2018, with second-quarter results beating expectations at an adjusted loss of $1.24 per share and $22.75 billion in revenue. (CNBC)

• PayPal posted stronger-than-expected second-quarter results, with adjusted earnings of $1.40 per share and revenue of $8.29 billion, surpassing Wall Street forecasts of $1.30 and $8.08 billion. (IBD)

• Nucor Corporation reported second-quarter earnings of $2.60 per share, surpassing analyst expectations of $2.52, while revenue of $8.46 billion missed forecasts of $8.54 billion. (INV)

• Barclays reported robust first-half and second-quarter earnings, surpassing consensus estimates by 11% with a 23% year-over-year increase in first-half pre-tax profit to £5.20 billion ($6.94 billion). (RTS)

🏢 Industry & Deals

• ⭐ Editor’s Pick: Union Pacific will acquire Norfolk Southern for $85 billion, forming the nation's first coast-to-coast freight rail operator. (CNBC)

• Cadence Design Systems agreed to plead guilty and pay over $140 million to settle U.S. charges for illegally selling chip designs to a Chinese university. (RTS)

• Trump said he ousted Jeffrey Epstein from Mar-a-Lago and ended their friendship years ago because "he stole people who worked for me." (CNBC)

• Trump seeks expedited deposition of Rupert Murdoch within 15 days in his $10 billion defamation lawsuit against The Wall Street Journal. (RTS)

• A second data breach at the women-only dating advice app Tea exposed over 1.1 million private messages discussing sensitive topics like abortions and infidelity. (404)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The Trump administration reversed Biden-era restrictions, reopening 10.6 million acres in Alaska’s National Petroleum Reserve to oil and gas drilling. (ANS)

• The Trump administration is exploring proposals to shift U.S. policy toward Myanmar to secure its rare earth minerals and counter China’s dominance. (RTS)

• U.S. onshore oil production soared to a record 1.7 million barrels per day, a sixfold increase since 2008. (OP)

• Fidelity predicts gold could reach $4,000 per ounce by the end of 2026, driven by Federal Reserve rate cuts, a weakening U.S. dollar, and sustained central bank purchases. (BBG)

🌕 Crypto

• ⭐ Editor’s Pick: The decentralized finance (DeFi) sector achieved a three-year high with a total value locked (TVL) of $153 billion, as investors rush to yield farming opportunities, driven by robust returns. (CD)

• PayPal launched a new payment option allowing small U.S. businesses to accept over 100 cryptocurrencies. (TB)

• Billionaire investor Ray Dalio recommended allocating at least 15% of investment portfolios to gold and Bitcoin as a safeguard against macroeconomic risks. (DC)

• Indian crypto exchange CoinDCX refuted claims of advanced acquisition talks with Coinbase for nearly $1 billion. (CT)
  

TECH

💻 Reid Hoffman: Democrats Alienated Silicon Valley With Attacks on Crypto, Diversity Push

The Scoop: LinkedIn founder and Democrat mega-donor Reid Hoffman publicly criticized the Democrat Party’s direction, taking aim at its policies for alienating Silicon Valley, as revealed on billionaire venture capitalist Joe Lonsdale’s American Optimist podcast.

The Details:

• Hoffman critiqued Democrats for attacking crypto and Big Tech, arguing the party has alienated tech innovators.

• He criticized the party’s emphasis on diversity, equity, and inclusion over technological progress, calling it a hindrance to scalable innovation.

• Hoffman donated $7 million to the leading pro-Biden and Harris super PAC in 2024.

• Hoffman visited Jeffrey Epstein’s island in 2014, later expressing regret for the association.

• He funded author E. Jean Carroll’s lawsuit against President Donald Trump through his nonprofit.

• Hoffman funded "Project Birmingham" via AET in the 2017 Alabama Senate race, a disinformation campaign using fake Facebook pages to deter Republican votes for Roy Moore; he later apologized, claiming ignorance.

What’s Next: While Hoffman’s sharp critique of the Democratic Party’s anti-tech stance and misplaced priorities is notable, his consistent portrayal of Trump as a threat to democracy indicates he’s unlikely to abandon his support for Democrats.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: The Department of Defense is testing AI models from Microsoft and OpenAI to extract data from contractors like Palantir, aiming to reduce vendor lock-in and gain leverage in contract negotiations. (INV)

• Chinese startup Z.ai, previously Zhipu, launched its GLM-4.5 AI model, claiming even lower usage costs than DeepSeek. (CNBC)

• Microsoft will integrate its Copilot AI assistant more deeply into its browser, aiming to enhance user experience by streamlining information processing and web navigation. (BBG)

• Harmonic, co-founded by Robinhood CEO Vlad Tenev, launched a beta AI chatbot app, which achieved gold medal performance in the 2025 International Math Olympiad and guarantees hallucination-free mathematical reasoning. (TC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: The world's first robot 6S store opened in Shenzhen, China, with 26 robotics companies, including Unitree, signing cooperation agreements to advance retail and service applications for humanoid robots. (CD)

• A humanoid robot from South Korea successfully tossed a water bottle into a barrel across a room, showcasing a breakthrough in disaster response robotics with enhanced precision and dexterity. (NYP)

• Waymo will launch its robotaxi service in Dallas in 2026, partnering with Avis Budget Group for fleet management, marking a shift from its Uber collaboration in Austin and Atlanta. (BBG)

• White Castle launched robot delivery in Chicago, partnering with Uber Eats and Coco Robotics to bring sliders to customers via autonomous vehicles. (NRN)

🚀 Defense & Space

• ⭐ Editor’s Pick: Nearly 4,000 NASA employees, roughly 20% of its workforce, have opted for voluntary buyouts under the Trump administration’s Deferred Resignation Program. (SP)

• China launched additional Guowang satellites, advancing its low Earth orbit broadband network to bolster a sovereign space-based internet. (SN)

• The Defense Department’s secretive X-37B Orbital Test Vehicle will lift off again in late August, carrying a quantum sensor that could enable navigation without relying on GPS. (BD)

• NASA is planning to send autonomous helicopters to Mars to scout landing sites and resources, with a potential launch in 2028. (IE)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Venture debt firm Tacora Capital secured a $685 million, backed by Peter Thiel, Marc Andreessen, and Joe Lonsdale. (BBG)

• Lyten raised $200 million to acquire assets from bankrupt Northvolt to expand its lithium-sulfur battery production for energy storage. (BBG)

• AI-powered loan servicing startup Salient raised $60 million in a Series A round led by a16z to streamline consumer lending processes. (AX)

• Julius AI raised $10 million in seed funding led by Bessemer Venture Partners to advance its AI platform for non-technical users to analyze and visualize data with natural language prompts. (TC)

FREEDOM

👩 TikTok’s Nazi Allegations Over Sydney Sweeney’s Jeans Ad Likely To Backfire

The Scoop: Actress Sydney Sweeney’s playful American Eagle jeans ad, using a “jeans/genes” pun, has sparked intense backlash on leftist TikTok, with some users exaggerating criticism to unfounded claims of Nazi propaganda.

The Details:

• The ad features Sweeney, 27, linking her blue eyes to “genes” and American Eagle jeans, triggering accusations of eugenics references.

• TikTok critics called the ad “fascist” and “Nazi s–t,” focusing on Sweeney’s blonde hair and blue eyes.

• Journalist Robby Soave dubbed the backlash “the stupidest” social media pile-on, predicting it will backfire.

• The campaign, tied to “The Sydney Jean,” donates 100% of proceeds to Crisis Text Line for mental health support.

• American Eagle’s stock surged nearly 17% in five days since the ad’s debut.

What’s Next: The controversy, while amplifying the ad’s visibility, is unlikely to derail American Eagle’s campaign, given its charitable tie to domestic violence awareness and mental health support, causes Sweeney champions. The viral outrage may fuel further brand engagement, boosting sales and stock momentum, while the exaggerated Nazi comparisons risk discrediting critics as the public grows weary of performative social media pile-ons.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: The Trump administration issued new guidance to protect religious expression across the federal workforce. (FOX)

• Kansas Attorney General Kris Kobach (R) asked the Justice Department to investigate alleged Chinese funding of U.S. environmental lawsuits aimed at weakening American energy. (FOX)

• Health Secretary Robert F. Kennedy Jr. announced plans to reform the National Vaccine Injury Compensation Program to ensure fair compensation for vaccine-injured individuals. (INV)

• Florida Attorney General James Uthmeier (R) issued subpoenas to two climate change organizations, investigating potential violations of consumer protection and antitrust laws. (TCS)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Trump warned UK Prime Minister Keir Starmer against censoring Truth Social with the UK’s Online Safety Act, warning it would be a "big mistake." (GBN)

• One in five companies reduced DEI programs since Trump’s election, according to a survey. (HRD)

• The State Department condemned France’s criminal investigation into social media platform X, labeling it a threat to free speech. (RTW)

• A new report reveals that eight major U.S. medical school accreditors are scaling back or eliminating DEI requirements. (DNH)

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