🚗 Yikes! China's Not Going To Like This...

Good morning. US stock futures ticked higher in Monday morning trading as Wall Street considers what comes next after the Federal Reserve began cutting rates.

🚗 US govt set to ban Chinese tech in US vehicles

📝 Our report: The U.S. Commerce Department is reportedly planning to block Chinese software and hardware from connected and autonomous vehicles on U.S. roads due to national security worries, according to reports from Reuters. The Biden administration has raised serious concerns about the collection of data by Chinese companies on U.S. drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the internet and navigation systems.

 🔑 Key points:

• The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said two sources, who declined to be identified because the decision had not been publicly disclosed.

• The move is a significant escalation in the United States' ongoing restrictions on Chinese vehicles, software and components. Recently, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles as well as new hikes on EV batteries and key minerals.

• Commerce Secretary Gina Raimondo said in May the risks of Chinese software or hardware in connected U.S. vehicles were significant. "You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled," she said.

💡 So what: The U.S. blocking Chinese hardware and software from autonomous vehicles could lead to significant changes in both the automotive and tech sectors. Automakers may face higher costs or slower innovation if they have to replace advanced, cost-effective Chinese technologies with alternatives. For Chinese companies, it could mean losing access to a major market, stifling their growth. The move reflects ongoing national security concerns about data privacy and tech dominance, intensifying U.S.-China tensions. It may also encourage U.S. firms to invest in domestic solutions, though it could delay widespread adoption of autonomous vehicles.

Monday - Chicago Fed President Austan Goolsbee Speaks

Tuesday - Consumer Confidence, Federal Reserve Governor Michelle Bowman Speaks

Wednesday - Federal Reserve Governor Adriana Kugler Speaks

Thursday - Federal Reserve Chair Jerome Powell Gives Opening Remarks, GDP (second revision)

Friday - Consumer Sentiment (final)

📈 Peter Lynch shares his 5 tips to be a successful investor!

📟 Everything you need to know about the blockchain

💸 Follow these 4 tips to manage your finances

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🏨 Motel chain sold in half-billion dollar deal

WHAT: Motel 6 is being sold to the parent company of Oyo, a hotel operator based in India, in a $525 million all-cash deal. Blackstone, the current owner, is handing over the keys to the budget chain, marking another chapter for the motel famously known for "leaving the light on for you."

WHY: Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has heavily invested in the brand and pursued a strategy that converted the chain into a franchise.

🛍️ Plastic shopping bags banned in Cali

WHAT: California shoppers will no longer have to choose between “paper or plastic” at checkout lines—Gov. Gavin Newsom has officially bagged plastic shopping bags for good under a new law. The new measure, approved by state legislators last month, bans all plastic shopping bags starting in 2026. Consumers who don't bring their own bags will now simply be asked if they want a paper bag.

WHY: Twelve states, including California, already have some type of statewide plastic bag ban in place, according to the environmental advocacy group Environment America Research & Policy Center. Hundreds of cities across 28 states also have their own plastic bag bans in place.

🤖 Google announces global fund for AI education

WHAT: At the UN Summit of the Future, Google CEO Sundar Pichai called AI "the most transformative technology yet" and revealed a new global fund to boost AI education and training. He added that he wants to avoid a global “AI divide” and that Google is creating a $120 million Global AI Opportunity Fund through which it will “make AI education and training available in communities around the world” in partnership with local nonprofits and NGOs.

WHY: Pichai acknowledged that AI also presents risks, for example with deep fakes, though he didn't mention AI's impact on the climate. On the same theme, Pichai called for "smart product regulation that mitigates harms and resists national protectionist impulses" — otherwise, he predicted regulation could "widen an AI divide and limit AI’s benefits.”

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