Western Governments Escalate Tech Crackdowns, Fueling Censorship Fears

Welcome back!

Here’s your must-read news this morning:

• Fed Governors could dissent

• U.S. missile to stop China?

• Growing free speech battle

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

— Josh

MARKETS

💰 Fed Governors Could Dissent Against Powell Over Maintaining Rates

The Scoop: The Federal Reserve may face a rare split vote at Wednesday’s policy meeting, with Governors Christopher Waller and Michelle Bowman expected to dissent against Chair Jerome Powell’s likely plan to maintain steady interest rates, the Wall Street Journal reports.

The Details:

• Waller and Bowman, both appointed by Trump, have previously advocated for rate cuts, aligning with Trump’s calls to lower rates.

• A dual dissent would be the first since 1993, breaking from the Fed’s consensus-driven approach established post-1980s under Paul Volcker.

• Bowman, the Fed’s top banking regulator, dissented last September, ending a 19-year streak of no governor dissents.

• Waller has said potential dissent would be a principled stance, not political, amid speculation both are contenders to replace Powell, whose term ends in May 2026.

What’s Next: A split vote could weaken Powell’s consensus-building leadership and complicate the Fed’s policy messaging, potentially impacting market expectations and the ongoing debate over rate cuts.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Trump announced a 25% tariffs on India starting August 1st. (X)

• U.S. and Chinese officials agreed to pursue a 90-day extension of their tariff truce following talks in Stockholm, with Trump holding the final decision on whether to maintain the pause. (RTS)

• The Atlanta Fed's GDPNow estimate for second-quarter 2025 rose to 2.9%, up from 2.21%, signaling stronger-than-expected U.S. economic growth. (FRBA)

• The Conference Board reported that its consumer confidence index climbed two points to 97.2 in July from 95.2, signaling improved American optimism about the U.S. economy. (YF)

📈 Stock Market

• ⭐ Editor’s Pick: Procter & Gamble reported fiscal fourth-quarter earnings of $1.48 per share and revenues of $20.89 billion, surpassing Zacks Consensus Estimates of $1.43 per share and $20.82 billion. (YF)

• Visa reported robust fiscal third-quarter earnings, surpassing analyst expectations with adjusted earnings of $2.98 per share and revenue of $10.17 billion, up 14% year-over-year. (ITP)

• Starbucks reported fiscal third-quarter adjusted earnings of $0.50 per share, while revenue of $9.5 billion exceeded the $9.31 billion forecast, and net income attributable to the company reached $558.3 million. (INV)

• Spotify reported a second-quarter loss of $0.48 per share on revenue of $4.75 billion, missing analyst expectations of $2.29 per share in earnings and $5 billion in sales. (IBD)

🏢 Industry

• ⭐ Editor’s Pick: Wesley LePatner, CEO of Blackstone Real Estate Income Trust, was among four killed in a mass shooting at the firm’s Manhattan headquarters at 345 Park Avenue. (AX)

• The Commerce Department is considering a proposal to charge patent holders 1% to 5% of their patent’s value. (WSJ)

• Palo Alto Networks is close to finalizing a deal to acquire Israeli cybersecurity firm CyberArk Software for over $20 billion. (WSJ)

• Tea, a women-only dating advice app, has halted its direct messaging feature after multiple security breaches exposed users’ personal details. (RTS)

💵 Energy & Commodities

• ⭐ Editor’s Pick: A massive AI data center near Cheyenne, Wyoming, a joint venture between Tallgrass and Crusoe, will consume 1.8 gigawatts initially, more electricity than all the state’s homes combined. (ARS)

• Treasury Secretary Scott Bessent warned China that continued purchases of sanctioned Russian oil could trigger 100% tariffs. (YN)

• Idaho National Laboratory and Amazon Web Services signed an agreement to develop autonomous nuclear systems. (IE)

• Indian importers made a rare purchase of a record 150,000 metric tons of soyoil from China, driven by discounted prices from Chinese crushers amid a supply glut. (RTS)

🌕 Crypto

• ⭐ Editor’s Pick: The SEC approved in-kind creations and redemptions for Bitcoin and Ethereum ETFs. (SEC)

• Crypto and stock trading platform eToro will introduce trading of tokenized U.S. equities, ETFs, and futures. (TB)

• Bitmain, the largest crypto mining hardware manufacturer, plans to establish its first U.S. factory by the end of the third quarter. (BBG)

• Sen. Cynthia Lummis (R-WY) introduced legislation codifying a Federal Housing Finance Agency directive that requires Fannie Mae and Freddie Mac to consider cryptocurrency as an asset in mortgage evaluations. (CL)
  

TECH

🚀 The Game-Changing U.S. Missile That Could Stop China's Invasion of Taiwan

The Scoop: The U.S. has successfully tested the Precision Strike Missile (PrSM) in Australia, a game-changing weapon aimed at deterring a potential Chinese invasion of Taiwan, amid escalating tensions in the Pacific.

The Details:

• The PrSM, developed by Lockheed Martin, struck a target over 190 miles away, with a potential range exceeding 300 miles.

• Launched from U.S. HIMARS or British MLRS systems, PrSM boasts speeds over 4,000 km/h, enhanced jamming resistance, and the ability to fire two missiles simultaneously from one pod.

• U.S. Defense Secretary Pete Hegseth warned that China’s invasion threat is “real and imminent,” citing Beijing’s war drills and landing barge construction as preparations for a Taiwan assault.

• China is advancing its own arsenal, including stealth bombers, drones, and a “drone mother ship.”

What’s Next: The PrSM’s deployment in Taiwan and allied nations like Japan and the Philippines could significantly challenge China’s naval strategy, but Beijing’s military buildup and Xi Jinping’s “reunification” vow heighten the risk of conflict, potentially drawing direct U.S. involvement.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Mark Zuckerberg’s Superintelligence lab at Meta lacks a clear strategy and business model, raising concerns among investors as the tech giant anticipates its slowest profit growth in two years. (FT)

• OpenAI unveiled Study Mode for ChatGPT, a feature designed to foster critical thinking among students by guiding them toward developing their own solutions rather than providing direct answers. (TC)

• Adobe announced the integration of advanced AI-powered features into Photoshop, introducing image upscaling, seamless object blending, and an enhanced object removal tool. (YF)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Skild AI introduced Skild "Brain," an AI system that enables robots to climb stairs, maintain balance under stress, and manipulate objects in cluttered environments with human-like intelligence. (WION)

• At the 2025 World Artificial Intelligence Conference in Shanghai, Unitree Robotics' G1 humanoid robots showcased advanced combat skills in a "fight club." (CTGN)

• Shinkei Systems, a California-based startup, has developed an AI-powered robot that automates the Japanese ike jime fish harvesting technique, widely considered the most humane way to harvest the animal. (LAT)

• Home improvement retailer HomeBase USA launched a pilot program deploying the world’s first autonomous shelf-scanning robot. (RAN)

🚀 Defense & Space

• ⭐ Editor’s Pick: Ukraine’s innovative drone tactics, including AI-guided swarms and kamikaze strikes, are reshaping U.S. military strategy, prompting the Pentagon to integrate low-cost, agile unmanned systems into its doctrine. (U24)

• Intelligence agencies worldwide are integrating advanced AI models to enhance data analysis and surveillance capabilities, with the U.S. leveraging tools like the CIA’s Osiris for open-source intelligence processing. (ECON)

• Palantir is deploying its AI tools in Ukraine’s war zones to select potential targets in real time, leveraging biometric data and intercepted phone calls. (AFP)

• Gilmour Space’s Eris rocket, Australia’s first domestically developed orbital launch vehicle, crashed 14 seconds after liftoff. (SP)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Anthropic is nearing an agreement for $5 billion in a funding round led by Iconiq Capital, valuing the company at $170 billion. (FT)

• AI chip startup Groq is poised to raise approximately $600 million in funding, valuing the company at $6 billion. (BBG)

• Quince, a direct-to-consumer luxury brand gaining traction on Instagram and TikTok, secured approximately $200 million in funding led by Iconiq Capital, valuing the company at $4.5 billion. (BBG)

• OffDeal, an AI-powered investment bank focused on small business M&A, raised $12 million in a Series A round led by Radical Ventures. (OD)

FREEDOM

📢 Western Governments Escalate Tech Crackdowns, Fueling Censorship Fears

The Scoop: Western governments are tightening their grip on digital platforms, with recent enforcement actions in the U.K., Australia and France targeting major sites and sparking concerns about censorship and jurisdictional overreach.

The Details:

• Emails published by the House Judiciary Committee show the UK’s Ofcom pressed Rumble and Reddit to comply with the Online Safety Act.

• Australia’s new social media law, effective December 2025, bans children under 16 from having YouTube accounts, reversing an earlier exemption.

• French prosecutors recently launched a criminal investigation into X, accusing it of “foreign interference” and classifying it as an “organized crime group” over its algorithm.

• UK Science Secretary Peter Kyle labeled critics of the Online Safety Act, including Reform UK’s Nigel Farage, as siding with “predators.”

What’s Next: Legal challenges are expected across jurisdictions as platforms weigh compliance costs against free-speech principles. The regulatory approach could prompt retaliatory measures from Washington and set precedents for authoritarian regimes seeking to control digital discourse.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: EPA chief Lee Zeldin plans to scrap the Obama-era climate endangerment finding, vowing to strike “a dagger into the heart of the climate change religion” by dismantling key Clean Air Act regulations. (FBN)

• Bloomberg News published a hit piece targeting Luke Farritor and his family, questioning the Thiel Fellow’s rapid rise to influence within DOGE. (BBG)

• State financial officers from 21 states warned JPMorgan Chase and BlackRock to abandon ESG policies, citing potential breaches of fiduciary duty and antitrust violations. (NYP)

• Commerce Secretary Howard Lutnick said that the U.S. will keep pressing the EU on digital services taxes. (POL)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Harvard University is open to a $500 million settlement with the Trump administration to resolve a dispute over campus antisemitism allegations. (NYT)

• The National Republican Senatorial Committee warned that Apple’s iOS 26 update, filtering political texts as spam, could slash $500 million in Republican fundraising and suppress get-out-the-vote efforts, fueling Big Tech censorship concerns. (BN)

• The House Judiciary Committee launched an investigation into Spotify, probing potential censorship of free speech following past controversies over Joe Rogan’s COVID-19 discussions. (NYP)

• Mastercard and Visa are facing backlash for pressuring online platforms like Steam and Itch.io to remove adult-themed games, prompting accusations of censorship. (PGN)

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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.