Good morning. US stock futures dipped in Wednesday morning trading as investors prepared for remarks from Federal Reserve Chair Jerome Powell at a European Central Bank forum.

"We live in a society that changes so you can’t be too strict about the rules you had 40 or 50 years ago. You can’t buy stocks on the basis you did then."

Walter Schloss

Top News

US mulls new Chinese restrictions

WHAT: Uncle Sam is playing AI hardball with China. According to reports from the Wall Street Journal, the US is cooking up new restrictions on exporting artificial intelligence chips. The Commerce Department has already said it will stop shipments of chips to customers in China as early as July.

WHY: Nvidia, Micron and AMD are among the US chip makers caught in the crossfire between China and the Biden Administration.

UK looks to reclassify crypto assets

WHAT: UK law is getting a bit of a digital makeover. The Law Commission has proposed the creation of a new category of personal property to accommodate crypto assets and other digital assets such as non-fungible tokens (NFTs). The Commission proposed adding a category of “digital objects” to the current classification of personal property.

WHY: Prior to becoming UK Prime Minister, Rishi Sunak, in his role as Finance Minister, said he wanted to make Britain a global hub for crypto asset technology.

New M&A rules could delay major deals

WHAT: US antitrust agencies are really shaking things up! They’re demanding more information than ever from companies involved in mergers and acquisitions transactions which could delay such deals by months. The Justice Department and the Federal Trade Commission have been explicit in their goal of cracking down on illegal mergers.

WHY: The proposed changes would require companies to divulge details about acquisitions during the previous 10 years, information on company officers, directors and board observers, in addition to information on the company’s workforce.

In Other News

EV startup files for bankruptcy protection

 WHAT: Lordstown Motors is about to embark on a wild ride through the land of Chapter 11 bankruptcy protection! The company announced its bankruptcy filing nearly two months after it warned that it was in danger of failing.

WHY: Last November Lordstown announced that it had received approval to ship the first batch of its first model, the Endurance pickup. The company said it was entering bankruptcy with significant cash on hand and that it was debt free.

Costco goes after membership card sharing

WHAT: Attention undercover shoppers! Costco is putting on their detective hats and cracking down on membership card trickery. As part of the effort, the company said it will be asking shoppers to show cards with a photo at self-checkout registers, and for photo ID’s if a customer’s membership card has no picture.

WHY: Costco stands apart from other retailers because of its business model. The bulk of its earnings come from membership fees which help cover company expenses and keep prices low.

Bed Bath & Beyond brand has new owner

WHAT: Overstock.com has scored big by snatching up Bed Bath & Beyond’s brand name, intellectual property and even their fancy e-commerce platform. Overstock emerged as the winning bidder for the company’s intellectual property in a deal worth $21.5 million. Bed Bath & Beyond stores and inventory were not part of the deal.

WHY: Once a storied retailer, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April after struggling for years with dwindling sales and a failed merchandising strategy.

Key Economic Events

• Wednesday - Fed Chair Powell Speaks

• Thursday - Fed’s Bostic Speaks

• Friday - U. Of. Mich. Consumer Sentiment

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