Good morning. US stock futures moved lower in Wednesday morning trading as investors kept an eye on debt ceiling negotiations.

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Peter Bernstein

Top News

US considers next step in China chip war

WHAT: The US Senate’s top Democrat and President Joe Biden have begun discussions with allies and business leaders to tackle China’s latest move to ban sales of memory chips made by US-based Micron Technology in China.

WHY: The restrictions by China’s cyberspace regulator against Micron, the biggest US memory chip maker, are the latest in a widening trade dispute between the world’s two largest economies.

White House: We’ve got our eyes on AI

WHAT: The White House is growing ever more curious about artificial intelligence (AI) technology and is now asking workers how their employers are using AI to monitor them. The White House said it will hold a listening session with workers to understand their experience with employers’ use of AI for surveillance, monitoring and evaluation.

WHY: Millions of users have tried AI apps and tools, leading to concerns around how the technology could increase privacy violations, skew employment decisions and power scams and misinformation campaigns.

Tell us more about those drug costs…

WHAT: In a bold move to unravel the mystery behind the soaring costs of prescription drugs, the US Health Department has proposed a new rule to increase transparency on the true cost of medication within the Medicaid program.

WHY: The proposal comes on the heels of an executive order from President Joe Biden requiring all health service agencies to work to lower drugs prices in the US, which are the highest in the world.

In Other News

Those brass knuckles…yea, they’re going to cost you…

 WHAT: Apparently you can get anything at Walmart — even items you’re not supposed to — like brass knuckles! The big box retailed agreed to pay $500,000 to settle allegations from California’s Department of Justice that it was selling brass knuckles on its website.

WHY: Brass knuckles are classified as deadly and illegal weapons in a number of states, including California, which punishes their sale with up to a year in prison. As part of the settlement, Walmart is also required to stop selling or allowing any sales of brass knuckles on its website.

Is a new Twitter head office on the horizon?

WHAT: Elon Musk, current but soon-to-be former Chief Twit, dropped a tantalizing bombshell at the Wall Street Journal’s CEO Council Summit in London. Questioned about whether the company will stay in San Francisco, Musk gave a noncommittal response.

WHY: San Francisco officials announced last week that they were investigating Twitter after six former employees alleged that Musk’s team broke laws by turning the company’s headquarters into a “Twitter Hotel”.

Netflix drops hammer on passwords

WHAT: Hold on to your popcorn fellow binge-watchers! Streaming giant Netflix is laying down the law and cracking the whip on password sharing, spreading their “no-share” gospel to over 100 countries, and alerting users that their accounts cannot be shared for free outside of their households.

WHY: The streaming video pioneer has been looking for new ways to make money with efforts including limits on password sharing and a new ad-supported option.

Key Economic Events

• Wednesday - FOMC Meeting Minutes

• Thursday - US GDP Annualized Q-o-Q

• Friday - No Major Economic News

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