U.S. Commerce Department Probes China

The U.S. Commerce Department has initiated an official investigation into Huawei's groundbreaking made-in-China smartphone chip, which has garnered significant international attention. Over the past two years, the Commerce Department has instituted several restrictions on Huawei and China, theoretically preventing them from advancing such technologies.

Huawei's discreet launch of a phone equipped with technology the U.S. has sought to keep from China's grasp poses potential challenges to the Biden administration's recent diplomatic endeavors. Following the announcement of the U.S. Commerce Department's probe, Chinese semiconductor stocks surged by 20%, fueled by speculation of increased support from the Chinese government. Huawei's chip has ignited a surge of nationalist pride on Chinese social media platforms, celebrated as a victory against the United States.

GRIT TAKE: The USA and China are in the beginning stages of a “technology race” that will be very similar to the “space race” of the 1960s. In Washington DC, there will be an ongoing debate about if the Commerce Department’s sanctions against Chinese technology were a massive failure. In fact, China unveiled the new smartphone while Commerce Secretary Gina Raimondo was in China.

Treasury Yields Decline

U.S. Treasury yields declined on Friday morning amid investor concerns about potential additional interest rate hikes in light of recent economic data.

Traders are evaluating a slew of economic indicators highlighting persistent inflation and a strained labor market. These signals heightened concerns that the Federal Reserve's rate hikes might not conclude soon. Notably, the reports showed jobless claims lower than anticipated and a surprising rise in second-quarter labor costs.

On Thursday, initial weekly jobless claims were reported at 216,000, undercutting the projected 230,000. This data followed a recent fluctuating labor market landscape. Specifically, the August jobs report from last week revealed that nonfarm payrolls saw a larger-than-anticipated increase, even as the unemployment rate witnessed a significant surge.

GRIT TAKE: There is widespread fear among investors that Fed Chair Jerome Powell will continue to raise rates at an unprecedented level. The prolonged possibility of rising or sustained high rates has historically spurred concerns over a potential economic decline and its subsequent effects on businesses and consumers.

Ukraine Blasts Elon Musk

An official from Ukraine has criticized Tesla and SpaceX CEO Elon Musk for instructing engineers to disable the Starlink satellite network over Crimea last year, alleging it was to prevent a Ukrainian assault on Russian naval vessels. At the onset of the Ukraine-Russia conflict, Musk had provided 500 Starlink terminals to support Ukraine, but later retracted his support. In a recent interview, Musk stated, “Starlink was not meant to be involved in wars. It was so people can watch Netflix and chill and get online for school and do good peaceful things, not drone strikes.”

A top aide to Ukraine's President Zelenskyy voiced strong objections to Musk's latest decision, posting on X, “By not allowing Ukrainian drones to destroy part of the Russian military fleet via Starlink interference, Elon Musk allowed this fleet to fire Kalibr missiles at Ukrainian cities.”

GRIT TAKE: Elon Musk is the greatest entrepreneur of our lifetime. He spends his days building autonomous cars, sending rockets to space, and many other great technology accomplishments. Elon asked himself, “How am in this war?” and he went back to doing what he does best which is focusing on changing the word via technology.

Coming Up…

Does the stock market end in a losing week? 📊 Earnings spotlight: Kroger, and NAAS Tech 📈

Heads up for next week: Apple's iPhone 15 drops!

Headlines You Need To Know:

• Disney narrows DeSantis US lawsuit on free speech

• Former FTX exec forfeits $1.5 billion, pleas guilty to 2 felonies

• Ukraine rips Elon Musk for disrupting sneak attack  

• Former Trump advisor Peter Navarro convicted of contempt  

• Biden approved a big oil project, but cracks down on drilling

• Zoom talked with regulators about Microsoft competition concerns

• JP Morgan is explaining blockchain based deposit token  

• Mattel’s windfall from Barbie

• SEC probes Ryan Cohen’s Bed, Bath, & Beyond trades

• Senators take up looming insurance crisis

• Walmart cuts starting pay for starting workers

• Canada opens inquiry into election meddling by Russia, China

• Putin faces Geo-Political setback  

Just for fun…

 Single Game MLS tickets surge by more than 1,700% due to Lionel Messi

Lionel Messi signed a massive contract with the soccer club Inter Miami CF in July that included an equity stake in the team. On top of his contract, he signed an undisclosed revenue-sharing deal with Apple TV and Adidas. This was an unprecedented move in the MLS. However, the upside has been massive. The Apple TV “MLS Season Pass” subscriptions have doubled. While the single game tickets have surged more then 1,700% to see Messi.

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