☕️ US and China slash tariffs on $30B

Hi there, this is your daily ☕️ Finpresso.

In today's newsletter:

🤝 US and China cut tariffs on $30B of goods

🍎 Apple hit with record $5.7B patent verdict

🏦 Nubank in talks to buy Monzo for £10B

🪙 Northern Star turns down $27B gold Fields offer

⚖️ States can regulate prediction markets

Plus: 🌍 9 macro news, 🏢 9 corporate news, and 📑 6 research & reports.

📊 Before The Bell

• The US and China agreed to cut tariffs on $30 billion of each other's goods, part of an eight-point accord reached after Xi Jinping's three-day Washington visit, with China's Foreign Ministry announcing the reciprocal deal Saturday.
• Treasury Secretary Scott Bessent said the two sides extended their trade truce by two months beyond its original November 10 expiry, and will set up a trade council to implement commitments made during earlier talks in Kuala Lumpur.
• The deal also opens structured AI talks, with a communication channel for incidents and a next round in November, as Washington keeps advanced-chip export controls limiting Chinese firms' access to Nvidia hardware.

• A federal jury in San Diego has ordered Apple to pay more than $5.7 billion to Taction Technology, finding the company infringed two patents behind the vibration feedback in its iPhones and Apple Watches.
• The dispute centers on Apple's "Taptic Engine," which Taction alleged copied its tactile transducer technology without a license; Apple plans to appeal, saying it "does not use Taction's technology."
• Taction first sued in 2021 and saw the case dismissed in 2023 before it was revived on appeal; the seven-person jury deliberated two days but did not find Apple's infringement willful.

• Nubank is in talks to acquire U.K. digital bank Monzo in a deal that could value the FinTech at up to £10 billion ($13.2 billion), the Financial Times reported, citing people familiar with the matter.
• A takeover using cash and shares is one of three options on the table, valuing Monzo between £8 billion and £10 billion; alternatives include selling up to a 15% stake to private equity or a "venture capital-style" funding round with smaller investor stakes.
• A sale to Nubank, valued at $65 billion with 140 million customers across the Americas and now expanding via a U.S. banking license, would be a setback for the London Stock Exchange, which has been courting Monzo for a listing.

• Australia's Northern Star rejected a $27 billion takeover proposal from South Africa's Gold Fields, telling the suitor Friday it would not engage further after its board unanimously deemed the cash-and-shares offer far too low.
• Gold Fields offered 0.3125 of its shares plus A$7.25 cash per Northern Star share, valuing the target at A$38.7 billion ($27.15 billion) when received September 14, a 22% premium, but that had slipped to A$36.1 billion by last Friday.
• Northern Star shares jumped more than 9% Monday after the rebuff, with the board calling the bid "highly opportunistic" and flagging concerns that most of the payment would come in Gold Fields stock rather than cash.

• A federal appeals court ruled on Friday that Ohio and Tennessee can apply their gambling laws to sports-related contracts on prediction markets like Kalshi, a second major legal setback for the industry as a Supreme Court fight looms.
• The 6th Circuit's unanimous three-judge panel rejected Kalshi's argument that its sports contracts are financial swaps overseen solely by the federal CFTC, siding with states that treat the offerings as sports betting subject to their own rules and taxes.
• The decision leaves prediction platforms with two appeals-court losses, after the 9th Circuit backed Nevada last month, while the 3rd Circuit ruled the opposite way for New Jersey in April, a split now before the Supreme Court after New Jersey's petition this month.

🌍 Macro News

• Brent gained 2.8% after Trump rejected Iran ceasefire reopening Hormuz. LINK
• US lawmakers introduced bill barring Chinese optical transceivers in sensitive federal systems. LINK
• Treasury yields rose as bond selloff and oil-fueled inflation raised borrowing costs. LINK
• SEC says functional crypto projects' token buybacks don't automatically trigger securities rules. LINK
• US and China agreed AI talks and hotline to defuse serious incidents. LINK
• Fed plans higher thresholds for tougher bank oversight, potentially easing compliance burdens. LINK
• Japan's 10-year yield nears 30-year high amid inflation and rate-hike bets. LINK
• Global gas supplies likely remain tight through next summer, industry group warns. LINK
• Senate procedural defeat sinks major crypto market-structure bill after bipartisan opposition. LINK

🏢 Corporate News

• Appeals court upheld government ban on Anthropic contracts over national-security concerns. LINK
• OpenAI halted top-model training after test agent escaped sandbox again. LINK
• Ellison pledged another $9.2 billion in Oracle shares as loan collateral. LINK
• NIO shares rose after Geely took 30% stake in battery-swap unit. LINK
• Nscale raised $3.36 billion in convertible financing ahead of planned US listing. LINK
• Tether disclosed limited EQIBank exposure, despite holding some assets at lender. LINK
• Shotwell filed to sell $52 million in first major post-IPO insider sale. LINK
• Crusoe scrapped $1.25 billion turbine deal with Boom Supersonic for data centers. LINK
• Riot repaid Coinbase $200 million credit line, freeing pledged Bitcoin, USDC and cash. LINK

📈 Stocks

📑 Research & Reports

• Aleph's budgeting benchmark report: shows how finance teams actually budget, with benchmarks you can hold your own process against. Download the free report
• China's data-center capacity exceeds 24 gigawatts, surpassing Europe and rest of Asia. LINK
• Major cloud providers' revenue could top $1 trillion annually by 2030. LINK
• Economists expect faster AI adoption, but doubt data centers will create jobs. LINK
• Goldman sees onsite generation supplying 25% of global data-center power by 2030. LINK
• Middle-market CFOs prioritize cash flow as working-capital index falls for first time. LINK
• Global funds ended China underweight, shifting to benchmark-neutral positions since June. LINK

📅 Market Calendar

💬 How did you find today's edition?

We read every reply — just reply to this email and let us know how we can improve!