Hello Capitalists,

Trump just had his highly anticipated phone call with China on tariffs, KJP gets savaged by Democrats over her new book, the price of silver soars, Europe just cut interest rates and the most patriotic Nascar ever is about to hit the track.

Let’s break it down for you:

• The Top Line Market Numbers:

• DOW: 42531.03 (⬆️0.24) 

• S&P: 5983.59 (⬆️0.21)

• NASDAQ: 19523.30 (⬆️0.32)

Trump announces successful call with Xi Jinping amid boiling trade tension

President Donald Trump just had a “very good” phone call with Chinese President Xi Jinping and it could mark a shift in the tense trade relationship between the U.S. and China.

• What Did Trump Say About The Call: “I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal. The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries.”

  He added, “During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated. As Presidents of two Great Nations, this is something that we both look forward to doing. The conversation was focused almost entirely on TRADE. Nothing was discussed concerning Russia/Ukraine, or Iran. We will inform the Media as to scheduling and location of the soon to be meeting.”

• Trade Tensions Have Been High: The call comes amid strained U.S.-China trade relations, with both sides accusing each other of violating a May 2025 trade agreement that paused most tariffs for 90 days. Trump raised tariffs on Chinese imports to 145% in April, while China retaliated with 125% tariffs on U.S. goods, effectively creating a trade embargo that’s impacting their $600 billion trade relationship.

• Critical Minerals Dispute: The U.S. claims China is slow-walking exports of critical minerals and rare earth magnets, vital for industries like automotive and defense, causing concerns about potential factory shutdowns.

  Trump addressed this matter in his Truth Social statement this morning, saying, “There should no longer be any questions respecting the complexity of Rare Earth products. Our respective teams will be meeting shortly at a location to be determined. We will be represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer.”

• China’s Frustrations: Beijing is upset over U.S. restrictions on Chinese student visas and warnings against using Chinese semiconductors, viewing these as moves that undermine trade progress.

• Market Reactions: U.S. stock futures rose briefly after news of the call, but gains faded as investors awaited details, reflecting uncertainty about whether this will break the trade stalemate.

Quote of the Day:

Dems tear KJP apart over her “cash grab” book - "One of the most ineffectual and unprepared people I've ever worked with"

Karine Jean-Pierre, Biden’s former press secretary, just dropped a bombshell with her new book, and it’s got everyone talking. She’s spilling the tea about a “broken” White House and ditching the Democratic Party, but her former colleagues are clapping back hard, saying she’s not the hero of this story.

• Jean-Pierre’s Book and Party Exit: Karine Jean-Pierre announced her book, Independent: A Look Inside a Broken White House, Outside the Party Lines, where she calls the Biden White House dysfunctional and declares she’s leaving the Democratic Party, urging others to go independent too.

• Colleagues Slam Her Competence: Over two dozen former Biden aides told Axios that Jean-Pierre was unprepared and ineffective as press secretary, often causing more problems than she solved and struggling with tough interviews.

• Hiding Biden’s Decline: Jean-Pierre played a key role in downplaying Biden’s physical and mental decline, publicly insisting he was “sharp as ever” despite clear signs, like his rough debate performance against Trump in June 2024.

• Self-Promotion Drama: Aides criticized Jean-Pierre for focusing on her own image, working with a publicist for magazine profiles and TV appearances, which some felt distracted from White House duties and even raised concerns with the counsel’s office.

• Internal Tensions and Loyalty: Jean-Pierre’s close ties to Jill Biden’s aide Anthony Bernal made her “untouchable,” despite frustrations over her blocking other spokespeople, like John Kirby, from sharing the podium on key issues.

Silver prices soar 4% to over $36 an ounce

Silver prices are soaring to levels not seen in over a decade, hot on the heels of gold’s impressive 2025 rally. Silver isn’t just a shiny metal—it’s a key player in industries like solar energy and electronics, and it’s also a go-to for investors looking to hedge against economic uncertainty.

• Silver’s Big Surge: Silver futures jumped over 4% on Thursday, hitting above $36 per troy ounce, the highest since early 2012, making it one of the top-performing assets of 2025 with a year-to-date gain of over 20%.

• Following Gold’s Lead: Gold has been on a tear, up about 25% this year, and silver’s rally is partly riding its coattails, though it’s still playing catch-up as gold prices held steady on Thursday.

• Industrial Demand Drives Growth: Silver’s use in solar panels, electronics, and cars is boosting demand, especially as green technologies like solar energy and electric vehicles continue to grow.

• Supply Shortages Persist: A Silver Institute survey noted a 15% supply deficit in 2024, with another shortfall expected in 2025, tightening the market and pushing prices higher.

• Safe-Haven Appeal: Like gold, silver is seen as a defensive asset, attracting investors spooked by geopolitical risks or inflation concerns, adding fuel to its price surge.

Europe stokes the the Trump vs Powell fight by cutting interest rates

The European Central Bank (ECB) just made a big move. They’ve cut interest rates, and it’s a signal they’re trying to keep the economy steady amid some global uncertainties, like trade tensions.

• Rate Cut Details: The ECB lowered its key interest rates by 25 basis points, bringing the deposit facility rate to 2%, the main refinancing rate to 2.15%, and the marginal lending rate to 2.4%, effective June 11, 2025.

• Inflation Outlook: The ECB revised its 2025 inflation forecast to 2% (down from 2.3%) due to lower energy prices and a stronger euro, while core inflation was slightly raised to 2.4%.

• Economic Growth: Growth projections for 2025 remain at 0.9%, with a stronger first quarter offset by concerns over trade policies impacting business investment and exports.

• Market Response: The euro rose 0.2% against the dollar, and the Stoxx 600 index gained 0.3%, showing markets had largely anticipated the cut.

• Trade Tension Impact: The decision comes as U.S. tariff policies under President Trump create uncertainty, potentially hurting euro zone growth while their impact on inflation remains unclear.

• Future Policy: The ECB remains data-dependent, with no firm commitment to further rate cuts, though analysts expect more easing if trade issues persist.

What is more Real American than Hulk Hogan, Nascar and beer?

Ricky Stenhouse Jr. is teaming up with Hulk Hogan’s Real American Beer for an epic, patriotic show at the FireKeepers Casino 400 NASCAR race. This partnership is a big deal because it blends high-octane racing with a bold, American-made brand, stirring up excitement both on and off the track.

• Patriotic Paint Scheme: Ricky Stenhouse Jr.’s No. 47 Chevrolet will sport a stars-and-stripes design at Michigan International Speedway, proudly showcasing Hulk Hogan’s Real American Beer logo.

• Hulk Hogan’s Beer Brand: Real American Beer, co-founded by wrestling legend Hulk Hogan, is a light lager with 4.2% ABV, aimed at uniting fans with its all-American vibe.

• Second NASCAR Collaboration: This marks the second time this season that Stenhouse and Real American Beer have joined forces, following their debut at Las Vegas earlier this year.

• Marketing with Muscle: Hogan’s former wrestling manager, Jimmy Hart, will be hyping up the crowd in the infield, handing out beers and amping up the energy with his megaphone.

• Brand Expansion: Real American Beer, launched in June 2024, is now in 27 states and growing, using NASCAR to connect with fans who love race days and tailgates.

300 economists urge Trump to pass the Big Beautiful Bill to prevent a tax rise on working class Americans

Over 300 economists are sounding the alarm, urging President Trump and GOP leaders to extend the 2017 tax cuts before they expire, warning that letting them lapse could slam Americans with a massive tax hike.

• Massive Tax Hike Looming: If the 2017 Tax Cuts and Jobs Act (TCJA) provisions expire at the end of 2025, Americans could face a $4 trillion tax increase, which economists warn would hurt economic growth.

• Economists’ Urgent Plea: Led by Stephen Moore, over 300 economists, including top academics and business leaders, sent a letter to Trump and GOP congressional leaders, pushing for quick action to pass a tax package to keep the cuts in place.

• Small Business Impact: The TCJA’s tax breaks, especially for small businesses with 10-100 employees, are critical for their growth and survival, helping them expand and hire more workers.

• Simplified Tax Code: The 2017 law raised the standard deduction, reducing the need for itemizing and making taxes easier for many Americans, a benefit that could vanish if the cuts expire.

• Deficit Concerns: Critics like Elon Musk argue the GOP’s tax bill could add $2.4 trillion to the deficit over a decade, though supporters claim it’s better than the economic hit of a tax hike.

• Not a Perfect Bill: Moore admits the bill isn’t ideal but stresses it’s better than the alternative—a tax increase that could devastate businesses and families.