Trump cuts winning deal with NVIDIA and AMD, monetizing exports to China
Another day, another deal! The move is described as a monetization of U.S. trade policy that could set a precedent for other industries.
Hello Capitalists,
Here’s everything you need to be following today:
President Donald Trump cut a deal with NVIDIA and AMD over US chip sales to China.
Bitcoin surges close to all time highs again. Dissenting Fed Governor now calling for three rate cuts.
John Deere and Ford are making a huge US investment.
Mamdani’s socialist ideas are slammed by people who actually lived under socialism.
Today’s markets:
DOW: 44174.63 - (🔁0.00)🔁
S&P: 6406.57 - (⬆️0.27) ✅
NASDAQ: 21547.50 - (⬆️0.45) ✅
CBOE VIX Volatility Index: $15.67 (⬆️0.52) ⚠️⬆️
Trump cuts a deal with NVIDIA and AMD over China AI chips
President Donald Trump will allow Nvidia and AMD to resume limited AI chip sales to China in return for a chunk of the revenue from the sales ahead of a likely US/China trade summit.
Chip Sales Revenue Deal: Nvidia and AMD have agreed to pay the U.S. government 15% of their China chip sales revenue to secure export licenses, a move described as a monetization of U.S. trade policy that could set a precedent for other industries.
Potential Trade Summit: Experts anticipate a summit between Trump and Xi Jinping in Beijing to discuss a trade deal, potentially involving China increasing purchases of U.S. goods like energy, agricultural products, and semiconductors.
Geopolitical and Economic Impacts: The deal reflects ongoing U.S.-China decoupling, with China’s exports to the U.S. declining and concerns over transshipment through Southeast Asia, while Beijing leverages its rare-earth dominance in negotiations.
Control Over Your Cash Is Shifting
As the U.S. Senate advances new legislation around digital currencies - including the GENIUS Act and the proposed STABLE Act - the future of money may be changing faster than most Americans realize.
Bitcoin surges with analysts looking to possibly $133,000 a coin.
Bitcoin surged to within striking distance of its all-time high and Ether hit its highest level since 2021 on Monday, fueled by an overnight rally and optimism over rising U.S. debt, as investors anticipated key inflation reports and a bullish crypto market outlook.
Bitcoin rose 1% to $119,782, nearing its all-time high, while ether fell 1.6% to $4,181 after reaching its highest level since December 2021, driven by an overnight rally and positive U.S. equity futures.
The crypto surge was largely fueled by buying during Asia’s trading hours, with Markus Thielen of 10x Research attributing the momentum to rapid U.S. debt expansion following President Trump’s signing of a $5 trillion debt ceiling increase.
Crypto-linked stocks, including Coinbase (up over 3%), Galaxy Digital (up 3%), and miners like Mara Holdings and Riot Platforms (up over 3%), saw premarket gains, while ether-related stocks like Bitmine Immersion Technologies rose 11%.
Ether ETFs saw stronger inflows ($326.83 million) than bitcoin ETFs ($246.75 million) last week, pushing ether above the psychologically significant $4,000 level, with analysts eyeing bitcoin’s next resistance at $133,000.
Fed governor who split with Powell now calling for three rate cuts
Federal Reserve Governor Michelle Bowman advocated for three interest rate cuts in 2025, citing easing inflation and a softening labor market, after dissenting against the Fed’s July decision to maintain rates at 4.25% to 4.5%, marking a rare split among policymakers.
Inflation Outlook: Bowman argued that inflation is trending toward the Fed’s 2% target, with tariff-related price pressures expected to be minimal and temporary, supporting her case for rate reductions.
Labor Market Concerns: She highlighted growing risks to the labor market, noting recent economic softening as a key factor in her push for proactive monetary policy adjustments.
Policy Shift: Bowman’s stance reflects a shift from her earlier caution, aligning with Fed Governor Christopher Waller, who also supported a potential rate cut as early as July, indicating divisions within the Fed.
John Deere bets big on American farmers
John Deere, the iconic farm equipment manufacturer, announced a billion dollar investment in its U.S. operations over the next decade, aiming to bolster advanced manufacturing, develop cutting-edge technology, and create new products to support American farmers and communities, the company said Friday.
Massive Investment Plan: John Deere plans to invest $20 billion over the next 10 years in the U.S., focusing on new product development, advanced manufacturing, and innovative technologies to strengthen its domestic operations.
Facility Expansions: The investment includes a new $70 million excavator factory in Kernersville, North Carolina, a $40 million expansion in Des Moines, Iowa, for AI-equipped sprayers, and a $150 million renovation in East Moline, Illinois, for advanced combine production.
Economic and Workforce Impact: The company employs 30,000 Americans across over 60 U.S. locations, with its network of independent dealerships supporting an additional 50,000 jobs, and has initiatives to hire veterans and support skilled trade apprenticeships.
Commitment to U.S. Manufacturing: Nearly 80% of John Deere’s U.S. sales and 25% of its international sales come from domestically manufactured products, reinforcing its long-standing commitment to American manufacturing since its founding in 1837.
Victims of socialist regimes offer sobering wake up call to NYC over Mamdani’s electoral plans
Survivors of socialist regimes are sounding alarms over New York City’s mayoral candidate Zohran Mamdani, warning that his progressive policies, including free buses, rent control, and city-owned grocery stores, could mirror the economic hardships their families fled in Cuba and the Soviet Union.
Socialism Concerns: Cuban-born Karen Rodriguez and Lithuanian-American Gabriella Hoffman, descendants of families who fled socialist regimes, have expressed fears that New York City mayoral candidate Zohran Mamdani’s policies resemble the failed systems of Cuba and the Soviet Union.
Mamdani’s Platform: Mamdani, a Democratic socialist, proposes free bus fares, rent control, and city-owned grocery stores, policies critics argue could lead to economic decline and reduced freedoms in New York City.
Personal Testimonies: Rodriguez’s family struggled under Castro’s regime with food shortages, while Hoffman’s family’s experienced the Soviet oppression, warning that Mamdani’s plans could erode the city’s entrepreneurial spirit.
Business Leaders’ Reaction: Prominent figures like Gristedes CEO John Catsimatidis and real estate moguls oppose Mamdani, with some threatening to close businesses or leave the city if his policies are implemented, citing risks to New York’s economy.
Ford to invest $2B into Kentucky plant for future US car production
Ford Motor Co. announced a $2 billion investment Monday to transform its Louisville Assembly Plant in Kentucky into a hub for affordable electric vehicles.
Ford is investing $2 billion to produce affordable electric vehicles, complementing a $3 billion investment in a Michigan battery park.
The Louisville plant will manufacture a midsize, four-door electric pickup truck, set to launch in 2027, designed to offer competitive pricing and appeal to cost-conscious consumers.
The combined investments in Kentucky and Michigan are expected to create or secure nearly 4,000 jobs, boosting local economies and supporting Ford’s EV production goals.
Ford CEO Jim Farley emphasized the company’s focus on creating vehicles with innovative design, efficiency, and affordability to challenge Chinese EV manufacturers.
I don't really like BitCoin as I don't know what it really. I like the old American Dollar!!!!!