Tech Titans Lavish Praise on Trump at White House Dinner

Welcome back!

Here’s your must-read news this morning:

• DOJ probes Cook

• Big Tech-Trump dinner

• Top U.K. politician resigns 

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

— Josh

MARKETS

💰 Justice Department Launches Criminal Investigation into Fed's Lisa Cook

The Scoop: The Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook for alleged mortgage fraud, just days after she sued President Trump to block her firing from the central bank's governing board. The probe centers on whether Cook misrepresented how properties would be used on mortgage applications for homes in Michigan, Georgia, and Massachusetts before joining the Fed.

The Details:

• The fraud allegations were first raised by Bill Pulte, a Trump appointee to the Federal Housing Finance Agency, who made two separate referrals to the Justice Department regarding Cook's trio of mortgage loans tied to the properties.

• Cook's attorney Abbe Lowell argued in court Friday that the complaints were merely a "pretext" for Trump to secure a Fed board majority, noting there was no formal investigation before Trump's firing announcement—an argument that made Judge Jia Cobb admit she felt "uncomfortable."

• The criminal probe undermines a key defense Cook's legal team had been using: that the lack of a formal Justice Department investigation proved the allegations were unsubstantiated, with Lowell stating Cook "did not ever commit mortgage fraud."

What’s Next: The criminal investigation could derail Cook's lawsuit and delay Judge Cobb's expected ruling on whether Trump can fire the Fed governor. With the case raising "important questions" about Federal Reserve independence, the outcome may hinge on whether the DOJ probe substantiates the mortgage fraud allegations or validates Cook's claims of political retaliation.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: The U.S. economy is expected to have added 75,000 jobs in August, with the unemployment rate projected to rise to 4.3%, per Dow Jones economists, as the jobs report is set for release Friday. (CNBC)

• The U.S. private-sector added 54,000 jobs in August, below the 75,000 expected by economists. (CNBC)

• Trump’s administration is set to begin renegotiating the USMCA with Canada and Mexico, launching public hearings by October 4 to revise the 2020 trade deal. (WSJ)

• Mortgage rates fell to 6.5% for a 30-year fixed loan, the lowest since October 2024, boosting homebuyer optimism and refinancing activity. (BBG)

• Trump announced imminent "fairly substantial" tariffs on semiconductor imports, sparing companies like Apple that invest in U.S. manufacturing. (INV)

• Trump’s Fed nominee Stephen Miran pledges central bank independence, planning an unpaid leave from his White House role if confirmed. (FBN)

📈 Stock Market

• ⭐ Editor’s Pick: Broadcom’s fiscal Q3 earnings surpassed expectations with $1.69 per share and $15.96 billion in revenue, boosted by a $10 billion custom chip order. (CNBC)

• Lululemon’s Q2 earnings beat expectations with $3.10 per share against $2.88 anticipated, though revenue slightly missed at $2.53 billion versus $2.54 billion forecast. (TIF)

• DocuSign reported Q2 adjusted earnings of $0.92 per share and revenue of $800.6 million, topping Wall Street’s estimates of $0.85 per share and $779.78 million. (INV)

🛢️ Energy & Commodities

• ⭐ Editor’s Pick: Japan confirmed its commitment to an annual $7 billion worth of energy purchases from the U.S. while exploring their new Alaskan liquefied natural gas (LNG) off-take agreement. (RTS)

• Hitachi committed $1 billion to manufacture power grid components in the U.S., boosting domestic energy infrastructure. (RTS)

• Oklo plans a $1.68 billion facility in Tennessee to recycle nuclear waste into fuel for its advanced reactors, targeting production by the early 2030s. (BBG)

• Peabody Energy forecasted a 57% surge in U.S. coal demand, driven by rising electricity needs and Trump’s pro-coal policies, potentially adding 250 million tons annually. (MIN)

• The tokenized gold market surged to a record $2.57 billion, driven by safe-haven demand as gold prices near $3,470 per ounce. (CG)

🌕 Crypto

• ⭐ Editor’s Pick: An SEC investigation claimed "avoidable errors" caused the permanent loss of former Chair Gary Gensler’s text messages, a critical period during the agency’s crypto enforcement campaign. (CT)

• World Liberty Financial blacklisted Justin Sun’s wallet, freezing $107 million in WLFI tokens after a $9 million transfer, amid market manipulation concerns. (CN)

• Stripe and Paradigm partnered to launch Tempo, a payments-oriented Layer 1 blockchain optimized for high-scale, real-world financial services applications. (TB)

• Coinbase CEO Brian Armstrong revealed 40% of the crypto exchange’s daily code is AI-generated, on track to exceed 50% by October. (CS)

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TECH

💻 Tech Titans Lavish Praise on Trump at White House Dinner

The Scoop: President Donald Trump hosted Silicon Valley's elite for a White House dinner on Thursday, bringing together tech titans including Mark Zuckerberg, Bill Gates, Tim Cook, and Sam Altman in a show of the administration's embrace of the industry. Elon Musk did not attend due to scheduling conflicts.

The Details:

• The guest list represented AI powerhouses including Meta, Google, Microsoft, Apple, and OpenAI, with attendees taking turns praising Trump during the State Dining Room event where Zuckerberg sat beside the president.

• Tim Cook thanked the Trump "for setting the tone such that we could make a major investment in the United States and have some key manufacturing, advanced manufacturing here."

• Altman thanked Trump "for being such a pro-business, pro-innovation president," adding: "It's a very refreshing change. ... I think it's going to set us up for a long period of leading the world, and that wouldn't be happening without your leadership."

• The dinner followed Melania Trump's earlier AI education event, part of the administration's push for American AI dominance over China, spearheaded by newly appointed AI and crypto czar David Sacks.

What’s Next: With U.S. firms racing to establish AI supremacy, Trump's tech-friendly policies—including cryptocurrency promotion and dropped AI restrictions—signal continued industry courting.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: OpenAI is developing an AI-powered jobs platform, set to launch in mid-2026, aimed at rivaling Microsoft’s LinkedIn by matching AI-skilled candidates with employers. (CNBC)

• OpenAI plans to launch an AI chip co-designed with Broadcom in 2026, committing $10 billion for internal use, bolstering its in-house AI infrastructure. (FT)

• Anthropic will halt sales of its AI services to Chinese-majority-owned entities, marking the first such restriction by an American AI company. (FT)

• Google Photos introduces Veo 3, enabling users to transform still images into short videos for free, enhancing creative storytelling capabilities. (TV)

• Synthesia’s AI-generated avatars are becoming more expressive and will soon feature conversational abilities, advancing the startup’s digital clone technology. (TR)

• Amazon, Microsoft, Google, IBM, and others pledged AI education initiatives at a White House event led by First Lady Melania Trump. (AX)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Researchers from UCL, Google DeepMind and Intrinsic unveiled RoboBallet, an AI-powered system that choreographs robotic arms to execute up to 40 tasks in seconds, potentially revolutionize production lines. (TEX)

• A Brooklyn tattoo studio is piloting an AI-augmented robotic tattoo arm that fuses machine precision with artistry. (NBC)

• Dyson unveiled an AI-empowered Spot+Scrub robot vacuum that detects nearly 200 common household objects, targets stains with repeat passes, and even self-cleans its mop roller. (SUN)

• Salesforce CEO Marc Benioff lauded Tesla’s Optimus as a "productivity game-changer" that can revolutionize how companies run. (FM)

🚀 Defense & Space

• ⭐ Editor’s Pick: Trump will sign an executive order on Friday to rename the Department of Defense as the Department of War. (FOX)

• Trump plans to reinterpret the 1987 Missile Technology Control Regime, reclassifying heavy drone systems, to enable overseas sales to allies including Saudi Arabia. (RTS)

• For the first time, the U.S. Army tested its new BLADE system to let Stryker vehicles shoot down drones, marking a milestone in mobile air defense. (NGD)

• Despite Xi’s military parade spotlighting new advanced weaponry, the real long-game threat lies in China’s stealthy surge of AI-armed startups quietly feeding the PLA’s future battlefield tech, a report said. (DO)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Digital ID provider ID.me used by U.S. agencies including the IRS, raised $340 million in a Ribbit-led Series E at a $2 billion valuation. (RTS)

• Lead Bank, a crypto-friendly lender, raised $70 million in a Series B round led by a16z, valuing the company at $1.47 billion. (TB)

• Logistics AI startup Augment raised $85 million in a Redpoint-led Series A to accelerate deployment of its supply-chain assistant. (TC)

• Ketryx, an AI-native compliance platform for accelerating medical device development, raised $39 million in Series B funding led by Lightspeed Venture Partners. (SA)

FREEDOM

🏠 U.K. Deputy Prime Minister Resigns Over Property Tax Scandal

The Scoop: U.K. Deputy Prime Minister Angela Rayner resigned on Friday, following an independent inquiry that found she breached ethical standards for government ministers by failing to seek proper tax advice on a recent apartment purchase in Hove.

The Details:

• Rayner admitted to underpaying tax on the property, potentially saving £40,000 ($54,000) in stamp duty, a levy charged on U.K. property purchases.

• The inquiry, led by independent adviser Laurie Magnus, concluded Rayner acted in good faith but breached the ministerial code of conduct.

• Rayner referred herself to the inquiry on Wednesday, with the report delivered to Prime Minister Keir Starmer on Friday.

• Despite praising her integrity and public service, Magnus noted her failure to seek specific tax advice was a significant error.

• Rayner, a prominent Labour figure known for her outspoken criticism of tax evasion, accepted full responsibility in her resignation letter.

What’s Next: Starmer, while expressing sadness and admiration for Rayner, accepted her resignation, signaling a potential reshuffle in the Labour government. The incident may spark further scrutiny of ministerial conduct and tax compliance, particularly within Labour’s housing policy framework, which Rayner previously championed.

Freedom Roundup

🏛️ Policy, Free Speech & Woke Overreach

• ⭐ Editor’s Pick: HHS Secretary Robert F. Kennedy Jr. suggested during his Congressional testimony that the CDC director's firing is just a start. (X)

• Germany is investigating X executives after the platform refused to provide public engagement data to researchers under the EU’s Digital Services Act. (RTN)

• Emory University announced the closure of its DEI offices and the discontinuation of related programs. (FOX)

• Trump described the UK’s social media crackdown as "strange" and "sad," as concerns grow over the government’s tightening of online speech. (X)

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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.