Hey Capitalists,

Here’s everything you need to be following today:

• Trump weighs in on controversial Cracker Barrel rebrand

• Trump fires embattled Fed Gov Cook, she says she won’t go

• Trump threatens China over export controls on rare earth magnets

• Warren Buffet derails railroad acquisition speculation

Today’s markets:

• DOW: 45867.42 (⬇️0.03%)🔴

• S&P: 6439.04 (🔁0.00%)🔁

• NASDAQ: 21465.98 (⬆️0.08%)✅

• CBOE Volatility VIX: - $14.32 (⬆️0.74%) ⚠️⬆️

Trump gives Cracker Barrel a blunt message about rebrand “mistake”

President Donald Trump called on Cracker Barrel to revert to their old logo via Truth Social, claiming they could turn the controversy into a "Billion Dollars worth of free publicity" and should hold a major news conference to address the issue.

Trump wrote:

“Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before. They got a Billion Dollars worth of free publicity if they play their cards right. Very tricky to do, but a great opportunity. Have a major News Conference today. Make Cracker Barrel a WINNER again. Remember, in just a short period of time I made the United States of America the “HOTTEST” Country anywhere in the World. One year ago, it was “DEAD.” Good luck!”

The full picture:

• Cracker Barrel’s CEO Julie Felss Masino ignored investor Sardar Biglari’s repeated warnings, unveiling a controversial rebrand that ditched the iconic logo, sparking backlash and a $143 million market value plunge.

• Investor Warned of Crisis: Sardar Biglari’s four warnings to Cracker Barrel’s board highlighted a “critical inflection point,” citing shareholder value destruction and a “flawed board” as key issues.

• Stock Plummets Post-Rebrand: The logo change and $700 million makeover led to a 12% stock drop, erasing significant market value, as customers decried the loss of nostalgic branding.

• DEI Focus Criticized: The rebrand followed Cracker Barrel’s DEI initiatives, with board member Gilbert Davila’s diversity consulting background drawing scrutiny amid accusations of abandoning traditional values.

• Company Defends Changes: Cracker Barrel insists its core values remain, claiming 87% of surveyed customers support the new logo, despite widespread social media criticism labeling it “generic.”

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Trump amps up tariff threats over China’s export curbs on rare earth magnets

President Donald Trump threatened 200% tariffs on China if Beijing curbs rare-earth magnet exports, escalating trade tensions Monday at the White House, where he emphasized U.S. reliance on these critical components.

• China dominates magnet production: China controls 90% of global rare-earth magnet supply, vital for U.S. automotive, electronics, and renewable energy sectors, giving Beijing significant leverage in trade talks.

• Exports surged post-truce: After a June trade framework eased restrictions, China’s rare-earth magnet exports to the U.S. jumped 660% in June and 76% in July, per customs data.

• Airplane parts as leverage: Trump highlighted withholding Boeing parts as a countermeasure to China’s magnet restrictions, noting 200 Chinese planes were grounded due to U.S. export controls.

• Expert doubts Trump’s threats: Beijing-based think-tank leader Henry Wang called Trump’s tariff rhetoric a bluff, suggesting it signals eagerness for a trade deal rather than actionable policy.

Trump fires Fed Gov Cook over mortgage allegations, she says she won’t leave

President Donald Trump fired Federal Reserve Governor Lisa Cook on Monday, escalating his battle to control the central bank amid unproven mortgage fraud allegations, sparking fears of eroded Fed independence.

• Cook Defies Trump's Authority: Lisa Cook, the first Black woman Fed governor, vowed to fight her dismissal, asserting Trump lacks legal grounds, potentially setting up a Supreme Court challenge.

• Allegations Fuel Political Tensions: Federal Housing Finance Agency Director Bill Pulte’s claims of Cook’s mortgage fraud, unproven, align with Trump’s push to reshape the Fed’s board.

• Market Reacts to Uncertainty: The dollar dipped and gold futures rose after Trump’s move, reflecting investor concerns over the Fed’s autonomy and future monetary policy.

• Trump’s Strategic Board Shift: If successful, Cook’s removal could give Trump a 4-to-3 majority of Fed appointees, amplifying his influence over interest rate decisions.

America just got a $550 Billion investment package from Japan as Trump talks tough on digital taxes

President Donald Trump took a hard line announcing export curbs and new tariffs on India, as Chinese and Canadian envoys arrive in Washington to negotiate amid looming global economic fallout.

• Japan’s Investment Deal: Commerce Secretary Howard Lutnick announced a $550 billion Japanese investment package, with a top trade envoy set to formalize the agreement in Washington this week.

• Digital Tax Reprisal: Trump threatens tariffs and export restrictions on advanced technology and semiconductors, citing discriminatory digital services taxes targeting U.S. tech firms, without specifying affected countries.

• EU Trade Framework: The U.S. and EU finalized a trade deal with a 15% U.S. tariff on most EU imports, excluding wine and spirits, while EU removes tariffs on U.S. industrial goods.

• Canada’s Tariff Response: Canada plans to drop retaliatory tariffs to align with U.S. exemptions under the US-Mexico-Canada trade pact, signaling efforts to de-escalate trade disputes.

Buffet slams the brakes on railroad acquisition

Warren Buffett quashed railroad merger rumors, revealing to CNBC that Berkshire Hathaway’s BNSF won’t acquire CSX, but a new coast-to-coast partnership aims to boost freight efficiency, announced Monday in Omaha.

• New Rail Partnership: BNSF and CSX launched coast-to-coast freight services, enhancing connectivity between Southern California, Charlotte, and Jacksonville, aiming to streamline logistics without a merger.

• Investor Pressure Mounts: Activist investor Ancora Holdings, a CSX shareholder, pushes for mergers with BNSF or Canadian Pacific Kansas City, citing CSX’s underperformance and need for scale.

• No Advisors Involved: Buffett and CEO-designate Greg Abel met CSX CEO Joseph Hinrichs alone on Aug. 3, emphasizing cooperation over acquisition to achieve merger-like benefits.

• Market Reacts Sharply: CSX shares dropped over 5% after Buffett’s merger denial, reflecting investor disappointment amid speculation fueled by Union Pacific’s $85 billion Norfolk Southern deal.