Trump Readies Order to Thwart Banking Bias Against Conservatives

Welcome back!

Here’s your must-read news this morning:

• Palantir earnings

• China’s global AI vision

• Trump’s debanking crackdown

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

— Josh

MARKETS

💰 Palantir Surpasses $1 Billion in Annual Revenue, Raises Full-Year Forecast

The Scoop: Palantir smashed Wall Street expectations, surpassing $1 billion in quarterly revenue for the first time and raising its full-year guidance, sending shares up 3% after hours as the AI software leader continues its meteoric rise.

The Details:

• Palantir reported adjusted earnings of 16 cents per share and $1 billion in revenue, beating LSEG estimates of 14 cents and $940 million, with revenue soaring 48% year-over-year.

• U.S. revenue surged 68% to $733 million, with commercial revenues nearly doubling to $306 million and government revenues up 53% to $426 million, boosted by Trump’s efficiency campaign.

• CEO Alex Karp aims to grow revenue tenfold while cutting headcount from 4,100 to 3,600, though no layoffs were confirmed.

• The company raised its full-year revenue forecast to $4.142–$4.150 billion, up from $3.89–$3.90 billion, and projected Q3 revenue of $1.083–$1.087 billion, topping estimates of $983 million.

• Palantir closed 66 deals worth at least $5 million each, with contract values up 140% to $2.27 billion, and net income rose 144% to $326.7 million.

What’s Next: With a $10 billion U.S. Army contract and AI-driven growth propelling its market value past $379 billion, Palantir’s high valuation and efficiency focus position it to maintain its edge in the competitive AI and analytics market.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Malaysia pledged over $240 billion in U.S. trade deals for Boeing aircraft, coal, and telecom equipment, to secure a reduced tariff rate (BTI)

• The EU will delay planned countermeasures against U.S. tariffs for six months, following a trade deal with Trump imposing 15% tariffs on most European goods. (CNBC)

• Trump threatens to "substantially" raise tariffs on India, accusing it of profiting from Russian oil purchases amid the Ukraine conflict. (UPI)

• San Francisco Fed President Mary Daly signals that the time for interest rate cuts is near, potentially exceeding two. (RTS)

📈 Stock Market

• ⭐ Editor’s Pick: Tesla awarded CEO Elon Musk a $29 billion stock package with 96 million shares to secure his leadership through 2027. (BBG)

• Yum Brands reported Q2 earnings of $1.44 per share and revenue of $1.93 billion, missing Wall Street’s $1.46 and $1.94 billion estimates, as Pizza Hut and KFC saw same-store sales declines. (CNBC)

• Hims & Hers shares slid 14% in premarket trading as Q2 revenue of $544.8 million missed Wall Street’s $549.9 million forecast, clouded by regulatory scrutiny over its GLP-1 weight-loss drugs. (YF)

• Domino’s Pizza shares dropped 14% after slashing its full-year EBITDA guidance to $172-185 million, below the $193 million consensus, as flat first-half orders reflect weaker demand. (INV)

🏢 Industry

• ⭐ Editor’s Pick: Wealthy Chinese nationals are buying up California’s scarce housing stock as investment opportunities, exacerbating the state’s supply crunch. (SFG)

• TSMC launched legal action and disciplined employees after uncovering potential trade secret leaks involving its cutting-edge chip technology. (CNBC)

• Eric and Donald Trump Jr. are steering a $300 million SPAC, New America Acquisition I Corp., to invest in U.S. manufacturing. (WSJ)

• U.S. prosecutors allege that a Smartmatic executive bribed Venezuela’s top election official with a luxury residence to secure political favors. (MH)

💵 Energy & Commodities

• ⭐ Editor’s Pick: California Gov. Gavin Newsom (D), once a fierce critic of Big Oil, now seeks to boost in-state drilling to counter refinery closures. (POL)

• The Department of Energy selected Standard Nuclear to lead its first pilot project for advanced nuclear fuel production. (DOE)

• Ucore Rare Metals is developing rare earth processing technology to break China’s supply chain dominance, aiming to secure refined rare earth oxides for Western industries. (CI)

• Google inked pioneering agreements with Indiana Michigan Power and Tennessee Power Authority to reduce AI data center power consumption during peak grid demand. (RTS)

🌕 Crypto

• ⭐ Editor’s Pick: David Carvalho, a hacker turned CEO of cybersecurity firm Naoris Protocol, warned that quantum computing and AI could silently crack Bitcoin’s cryptographic defenses. (TB)

• The CFTC will allow registered exchanges to trade listed spot crypto assets, aligning with the SEC’s efforts to clarify regulations. (RTS)

• Grayscale Investments reinstated founder Barry Silbert as chairman after its confidential IPO filing. (CD)

• Decentralized exchange Hyperliquid achieved a record-breaking $320 billion in perpetual futures trading volume in July. (TB)
  

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TECH

💻 Behind Closed Doors, China Seeks to Shape AI Without America

The Scoop: Initial reports painted China’s “Global AI Governance Action Plan,” unveiled at the World Artificial Intelligence Conference (WAIC) in Shanghai, as a bid for inclusive global AI leadership, but WIRED’s new report reveals Beijing’s true intent: to sideline the U.S. and dominate AI governance, hot on the heels of the Trump administration’s America First AI plan.

The Details:

• China’s July 26 plan, unveiled with fanfare, calls for UN-led AI governance, a stark contrast to the U.S.’s streamlined, pro-innovation approach that prioritizes objective truth and economic growth.

• WAIC drew Western figures like Geoffrey Hinton, but U.S. leadership was conspicuously absent amid China’s closed-door policy talks.

• Chinese Premier Li Qiang’s safety rhetoric and researchers like Zhou Bowen’s focus on monitoring AI models raise red flags about Beijing’s motives—potentially stifling innovation under the guise of regulation.

• A Concordia AI report reveals Chinese labs lag in transparent safety practices, casting doubt on their commitment to genuine global cooperation.

What’s Next: While China’s secretive agenda seeks to dictate global AI rules, the U.S.’s innovation-driven approach could outpace Beijing’s calculated moves, ensuring American leadership in AI’s future if it stays the course.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Tech giants like Amazon, Google, and Microsoft are accelerating job cuts, harnessing AI to automate tasks. (FT)

• Google DeepMind CEO Demis Hassabis predicted that the AI era will be 10 times larger and faster than the Industrial Revolution, promising “radical abundance” of services and resources. (TG)

• A universal detector developed by University at Buffalo researchers achieves a record 94% accuracy in identifying AI-generated deepfake videos. (NS)

• The U.S. is considering advanced location-tracking systems for AI chips to enhance export controls. (BBG)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Silicon Valley’s tech giants are pivoting from software to “hard tech,” investing heavily in AI-driven robotics and microchip advancements to maintain global innovation dominance. (NYT)

• Robot teams from around the world are honing AI-driven skills at Beijing’s Olympic venue for the inaugural World Humanoid Robot Games, set for August 14–17. (EN)

• UZ Brussel became the world’s first hospital to perform over 100 robot-assisted coronary artery bypass surgeries. (EW)

• A Chinese engineer’s 3D-printed, missile-firing, amphibious turtle robot, capable of land, air, and water navigation, raises alarms about China’s potential hybrid warfare strategies. (ET)

🚀 Defense & Space

• ⭐ Editor’s Pick: Transportation Secretary Sean Duffy teased a "huge announcement" about unleashing American drone dominance. (X)

• NASA will announce expedited plans this week for a lunar nuclear reactor and a faster replacement of the International Space Station. (POL)

• Lockheed Martin announced a groundbreaking plan to test a satellite-based weapon by 2028, designed to destroy highly maneuverable hypersonic missiles. (DO)

• The U.S. Space Force plans to launch satellites next year to track ground targets, with advanced sensors to monitor adversaries’ movements in real time. (BD)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Mistral AI seeks a $1 billion raise at a $10 billion valuation to drive Europe’s push for AI independence. (EUS)

• OpenMind secures $20 million from Pantera Capital and others to develop OM1, a decentralized, open-source operating system for humanoid robots. (TC)

• Pantomath, an AI-driven data operations platform, secures $30 million in a funding round led by General Catalyst. (SA)

• Dubai-based fintech Alaan raises $48 million in one of the largest Series A rounds in MENA, led by Peak XV Partners, to expand AI-driven corporate expense management. (TC)

FREEDOM

🏦 White House Drafts Order to Penalize Banks for Bias Against Conservatives

The Scoop: The White House could sign an executive order this week targeting banks for discrimination against conservatives and crypto firms, threatening fines and penalties for dropping customers based on political beliefs, according to The Wall Street Journal.

The Details:

• The draft order aims to curb Operation Choke Point 2.0, an alleged Biden-era campaign to pressure banks into de-banking crypto firms.

• The order instructs regulators to probe potential violations of the Equal Credit Opportunity Act, antitrust, or consumer protection laws.

• Penalties for violators could include fines, consent decrees, or other disciplinary actions.

• In 2022, religious freedom nonprofit NCRF had its JPMorgan Chase account restricted and marked for closure weeks after opening, alleging the bank demanded donor lists and political affiliations.

• Following the 2021 Capitol riot, Signature Bank closed two of Trump’s personal accounts.

What’s Next: Banks are bracing for increased scrutiny, with regulators directed to review policies and refer violations to the Justice Department. The move could reshape banking practices, particularly for industries like crypto, as the Trump administration pushes for clearer regulatory frameworks.

Freedom Roundup

🏛️ Policy & Free Speech

• ⭐ Editor’s Pick: Trump lauded Sydney Sweeney’s American Eagle campaign, while blasting Jaguar’s “woke” ad as a “total disaster.” (SUN)

• UK universities face potential fines under the new Higher Education Act, as the British government vows to protect academic freedom. (PAME)

• The EU is advancing a controversial plan to scan all private messages for illegal content, raising alarms about threats to digital privacy. (RTW)

• Cornell University nears a $100 million settlement with the Trump administration to restore over $1 billion in frozen federal funding, following probes into alleged civil rights violations. (CS)

• Florida Attorney General James Uthmeier (R) warned law firms of potential exclusion from state contracts over their DEI and ESG policies. (PBDN)

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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.