Hello Capitalists,

Markets wobble as Tesla takes a beating and the trade deadline on July 9th takes center stage on Wall Street

• DOW: 44514.62 - (⬇️0.70)🔴

• S&P: 6240.53 - (⬇️0.62) 🔴

• NASDAQ: 20455.32 - (⬇️0.71) 🔴

• CBOE VIX Volatility Index: 17.65 (⬆️0.17) ⚠️⬆️

Here’s everything you need to be following today:

Bessent debuts new trade deals as Trump cracks down on the stragglers

The United States will announce several trade agreements within the next 48 hours as a Wednesday deadline looms to finalize pacts and avoid higher tariffs, Treasury Secretary Scott Bessent said Monday, signaling progress in negotiations with multiple countries.

• U.S. Treasury Secretary Scott Bessent made the announcement ahead of a July 9 deadline to finalize trade agreements, with tariff letters to be sent starting Monday at 12:00 pm ET.

• Bessent noted a surge in new offers and proposals from trading partners, indicating a shift in negotiations as countries aim to avoid higher U.S. tariffs set to take effect on August 1 if no deals are reached.

• President Donald Trump is focused on the quality of trade deals, with Bessent emphasizing that the tariff letters are not ultimatums but invitations to negotiate further, while declining to link trade talks to negotiations over TikTok's ownership.

Trump cranks up a 10% surcharge on BRICS nations “No exceptions”

President Donald Trump announced Sunday that the U.S. will impose an additional 10% tariff on countries aligning with what he called the "anti-American policies" of the BRICS bloc, escalating trade tensions as the group meets in Rio de Janeiro and signaling a broader push to counter the coalition's growing global influence.

• Trump's Tariff Threat: President Trump declared his attention via Truth Social during the group's summit in Rio de Janeiro, without specifying which policies are targeted.

• BRICS Summit Response: BRICS leaders, meeting in Brazil, criticized Trump's tariff policies in a joint statement, warning against unilateral protectionist measures that disrupt global trade and violate WTO rules, while promoting their agenda to challenge Western-dominated economic institutions.

• Trade Deal Developments: The U.S. is set to send letters detailing country-specific tariff rates starting Monday, with tariffs announced in April now effective August 1 for countries without trade agreement.

Tesla plummets as Elon’s political plans backfire

Tesla shares plummeted 7.5% in early trading Monday after CEO Elon Musk's announcement of a new U.S. political party sparked investor concerns, setting short sellers up for approximately $1.4 billion in paper profits.

• Tesla's stock dropped to $291.50 in early trading, contributing to a 21% year-to-date decline, following CEO Elon Musk's political move to launch the "America Party" amid a public feud with President Donald Trump over a tax-cut and spending bill.

• Short sellers are poised to gain about $1.4 billion in paper profits from Monday’s stock slump, adding to their $4 billion in profits from a significant single-day drop on June 5, making Tesla the most profitable short trade among the "Magnificent 7" stocks in 2025.

• Musk’s political activities, including his feud with Trump and the launch of the new party, have heightened investor worries about his focus on Tesla, exacerbating challenges from declining electric vehicle sales and increased competition.

Apple appeals the EU’s multi-million dollar fine over its App Store policies

Apple Inc. appealed a 500 million euro ($586 million) fine from the European Union on Monday, challenging the bloc's claim that the tech giant violated the Digital Markets Act with restrictive App Store policies, arguing the decision imposes unfair business terms that harm developers and users.

• The EU fine issued in April 2025 for breaching the Digital Markets Act with App Store restrictions, particularly anti-steering rules that limited developers' ability to direct users to alternative payment systems.

• The company argues the European Commission's decision is unlawful, claiming it forces confusing business terms that negatively impact developers and users, while Apple recently adjusted its App Store policies in Europe to comply with the DMA.

• The appeal follows Apple's ongoing efforts to defend its profitable App Store model, which charges 15% to 30% commissions, amid similar legal challenges in the U.S., including a rejected stay in the Epic Games case.

AI Newcomer is already making supply chain acquisitions

CoreWeave Inc., an AI cloud computing firm, agreed to acquire data center provider Core Scientific Inc. in an all-stock deal valued at approximately $9 billion, boosting its infrastructure capacity to meet surging demand for artificial intelligence services.

• CoreWeave Inc. is valuing Core Scientific’s stock at $20.40 per share, a 66% premium over its price before deal talks surfaced.

• The acquisition will eliminate over $10 billion in future lease obligations for CoreWeave and add 1.3 gigawatts of data center capacity, enhancing its AI infrastructure capabilities.

• The deal, expected to close in the fourth quarter of 2025 pending regulatory and shareholder approval, follows a prior partnership where Core Scientific provided CoreWeave with 590 megawatts of infrastructure for AI workloads.

The EU scrambles to get its trade deal passed with last minute call to Trump

The European Union is nearing a framework for a trade agreement with the United States, following a Sunday call between European Commission President Ursula von der Leyen and President Donald Trump, as both sides aim to avoid steep tariffs before a looming July 9 deadline, the EU announced Monday.

• The European Union is close to finalizing a trade deal framework with the US after a conversation between Ursula von der Leyen and President Trump, aiming to meet a July 9 deadline to avoid 50% tariffs on EU exports.

• EU carmakers and some member states are pushing for tariff relief in exchange for increased investments in the US, with the EU willing to accept a 10% universal tariff but seeking lower rates for key sectors like automobiles and steel.

• Treasury Secretary Scott Bessent indicated a possible three-week extension until August 1 for countries unable to finalize deals by the deadline, as the US also considers additional 10% tariffs on BRICS nations for "anti-American" policies.