Good morning. US stock futures ticked higher in Wednesday morning trading as investors looked ahead to key inflation data.

"Outcomes cast a shadow over the decision process leading people to overlook or distort information about the process"

Annie Duke

Top News

US adjusts Chinese investment ban scope

WHAT: The US is turning down the volume on its investment ban in China. According to individuals familiar with the matter, Uncle Sam’s new restrictions are likely only to apply to Chinese companies that get at least half of their revenues from cutting edge sectors such as quantum computing and artificial intelligence.

WHY: China has pushed back against the proposed US investment curbs. Last month, Chinese Foreign Ministry spokesperson Mao Ning said the country opposes the US “politicizing and weaponizing trade and tech issues”

Business owners seek increased insurance coverage

WHAT: Looks like American business owners are donning their risk management capes and diving head first into the world of insurance. According to a study by global insurance brokerage Gallagher, a whopping 83% of entrepreneurs are either actively looking for or very likely to seek additional insurance policies.

WHY: Over the next 12 months, risks arising from climate change and natural disasters are a major concern for 68% of business owners the study said.

US credit card debt hits record high

WHAT: Americans have officially hit the big “T” in outstanding credit card balances. The latest data from the Federal Reserve Bank of New York revealed that outstanding credit balances hit $1.03 trillion in the second quarter, a 4.6% increase from $986 billion in the first quarter.

WHY: The reports underscore how more Americans have turned to their revolving credit over the past year, especially as banks pull back on lending to riskier borrowers.

In Other News

Wall Street firms fined as part of text message probe

 WHAT: It looks like the messaging mishaps of Wall Street employees just cost their firms $549 million! US regulators fined nine companies including Wells Fargo, Societe Generale and BNP Paribas over employees’ use of personal messaging apps to discuss deals, trades and other business.

WHY: The penalties mark the latest wave of a sweeping two-year enforcement probe targeting Wall Street’s use of so-called “off channel” work communications, such as text and WhatsApp messages in breach of rules which require firms to retain certain work-related communications.

EV parts maker files for bankruptcy

WHAT: Electric vehicle parts supplier Proterra looks to have hit a speed bump on its corporate road trip. The company filed for Chapter 11 bankruptcy protection in an attempt to strengthen its financial position through a recapitalization or being sold. With losses of $244 million in the first quarter, the company said it may not find a way to achieve profitability in the future.

WHY: Supply chain concerns and a financing drought amidst slow demand have become major challenges to EV makers and suppliers.

ESPN wades into sports betting

WHAT: ESPN is diving into the sports gambling pool with the grace of a synchronized swimmer! The company announced they’ve teamed up with betting giant PENN Entertainment to launch “ESPN BET”, a branded sportsbook this fall in the 16 states where PENN currently operates mobile sportsbooks.

WHY: ESPN said ESPN BET will become the network’s exclusive sportsbook, and PENN Entertainment will receive “odds attribution, promotional services and ESPN talent access among other services that collectively generate maximum fan awareness of ESPN BET”.

Key Economic Events

• Wednesday - No Major Economic News

• Thursday - US CPI Y-o-Y

• Friday - No Major Economic News

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