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Senate confirms Jay Clayton as intel chief
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Wednesday, July 29, 2026
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Senate confirms Jay Clayton as director of national intelligence in party-line vote
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<p style="margin:0;">
The Senate confirmed Jay
Clayton as director of national intelligence Tuesday in a 51-47 party-line vote, replacing acting DNI Bill Pulte and handing the intelligence community its first Senate-confirmed leader with a Wall Street background. Clayton, a former SEC chair and current U.S. attorney, will oversee coordination among 18 intelligence agencies and produce the president's daily brief — a role that carries significant weight over how national security intelligence shapes policy and business risk assessments globally.
</p>
<p style="margin:12px 0 0;">
Clayton arrives
without deep foreign policy or intelligence experience, a gap critics flagged throughout his confirmation. He drew rare bipartisan praise largely by contrast with Pulte, who boasted publicly of conducting five rounds of layoffs at ODNI in roughly a month. Democrats, however, remain wary: Clayton repeatedly described President Biden as having been 'certified' as winner of the 2020 election rather than flatly affirming the result, a distinction that alarmed senators on the committee.
</p>
<p style="margin:12px 0 0;">
The more immediate pressure
point for markets and policy is Trump's push to declassify more intelligence related to the 2020 election. How Clayton manages that directive — and whether he can stabilize an agency rattled by Pulte's tenure — will define his early months and signal whether ODNI can function as a credible anchor for the broader intelligence community.
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Markets & The Fed
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Sterling holds near four-week lows as Fed decision and Middle East tensions dominate markets
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The pound steadied at
$1.3291 Wednesday but remained near its weakest level since July 2 as traders awaited the Federal Reserve's monetary policy decision and braced for a cascade of central bank meetings, including the Bank of England and Bank of Japan. Oil prices surged more than 4% after fresh Middle East escalation — U.S. and Saudi strikes in Iraq and an intercepted Iranian missile attack on American forces — adding inflationary pressure that complicates the rate calculus for central banks. The Bank of England is widely expected to hold rates steady Thursday,
but Matthew Ryan of Ebury noted that renewed Middle East hostilities give the hawkish faction of the Monetary Policy Committee fresh ammunition. For business and investor audiences, the week's overlapping central bank decisions and geopolitical shocks create acute uncertainty around borrowing costs and energy prices on both sides of the Atlantic.
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Boeing's Air Force One program posts another $280 million quarterly loss as overruns top $3.1 billion
</a>
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Boeing reported a $280 million loss on its Air Force One
replacement program in the second quarter of 2026, driven by production and certification expenses, with total cost overruns on the fixed-price contract now exceeding $3.1 billion — all borne by Boeing. The two military 747s, originally due in 2024, have been delayed until at least 2028. CEO Kelly Ortberg said in an internal email that the company is adding significant resources to meet that deadline. The contract, capped at $3.9 billion under Trump's first term and since modified to roughly $4.5 billion, remains a persistent drag on Boeing's
defense earnings.
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State capitalism is staging a comeback, and history says it will not end well
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<p style="margin:0;">
Governments worldwide are taking larger direct stakes in private
companies, from the U.S. acquiring equity in critical minerals and semiconductor firms to the U.K.'s new prime minister seeking to renationalize water, electricity, and transportation utilities. Assets worth as much as half a trillion dollars have been nationalized globally over the past decade. The Economist argues that stated goals — supply-chain resilience, national security — are legitimate but are far better served by arms-length regulation than public ownership, and that successive waves of nationalization have historically ended in
disappointment and reversal.
</p>
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FIFA's $20 billion commercial subsidiary plan blindsides regional confederations
</a>
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FIFA announced plans to
create a $20 billion subsidiary called FIFA Forward Enterprise to oversee World Cup and other event operations, offering minority stakes of up to 20% to private investors to raise as much as $4.2 billion. The move drew sharp rebukes from CONCACAF and the Asian Football Confederation, both of which said they learned of the plan through media reports rather than official channels. The French Football Federation and English FA also said they were not informed. The governance controversy could complicate FIFA's fundraising timeline and reshape how
private capital enters global soccer.
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AI chip count set to hit 200 million by 2028 as data center build-out accelerates
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<p style="margin:0;">
The global stock of AI chips is doubling roughly every nine months,
according to research firm Epoch AI, putting the world on pace to reach approximately 200 million chips — equivalent to Nvidia H100 semiconductors — by the end of 2028, up from about 20 million today. Hundreds of major data centers under construction across the U.S. and the Middle East are driving the surge. The scale of investment compares historically to the 19th-century railroad build-out, and the coming computing avalanche is expected to make breakthroughs that once felt revolutionary increasingly routine for businesses and
developers.
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Zuckerberg tells FT that banning Chinese AI would not give the US a competitive edge
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Meta CEO Mark Zuckerberg told the Financial Times that a U.S. ban on Chinese AI
models would not be an effective solution in the competition with China, arguing Washington should instead systematically identify bottlenecks slowing American AI development. His comments arrive as senior Trump officials claim evidence that China's Moonshot AI covertly used U.S. rivals to train its Kimi K3 model — allegations Moonshot denies — and as Treasury Secretary Scott Bessent has warned that sanctions could follow confirmed IP theft. The debate over how aggressively to restrict Chinese AI access to U.S. markets is now one of the
defining regulatory fault lines for the technology industry.
</p>
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Read more at CNN ›
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Regulation & Oversight
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FCC bans imports of foreign-made humanoid robots on national security grounds
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The U.S. government
announced a ban on new imports of humanoid and quadruped robots from foreign manufacturers, citing unacceptable national security risks. The restrictions also cover power converters used to link renewable energy infrastructure and batteries to the power grid. The ban excludes models already in use. The move is the latest in a series of Washington actions to protect domestic industries from foreign competition in advanced technology sectors, and it adds regulatory pressure on companies that have been sourcing robotics hardware from overseas
suppliers, particularly in Asia.
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Read more at Quartz ›
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Senators Warren and Schiff urge SEC to investigate Trump Media's paid post feed
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<p style="margin:0;">
Senators Elizabeth Warren and Adam Schiff are urging the Securities
and Exchange Commission to investigate Trump Media's paid post feed, raising questions about potential securities law violations tied to the company's social media monetization practices. The request adds another layer of regulatory scrutiny to Trump Media, whose stock has drawn intense attention from retail and institutional investors alike. Any formal SEC inquiry could weigh on the company's valuation and complicate its standing as a publicly traded entity closely associated with the sitting president.
</p>
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Musk's xAI sues Minnesota over first-in-the-nation law banning AI nudification technology
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Elon Musk's xAI filed a federal lawsuit Monday
challenging Minnesota's law banning nudification technology — AI tools that generate fake nude images of real people — days before it was set to take effect. xAI said it does not dispute the goal of preventing non-consensual distribution of such images but argues the law sweeps in constitutionally protected content, lacks a safe harbor for good-faith compliance efforts, and exposes the company to penalties of $500,000 per violation. The case will serve as an early constitutional test of how far states can reach in regulating AI-generated
content.
</p>
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<a style="color: #17253d; text-decoration: none;">
Republican allies of CISA push to restore agency's resources ahead of midterm elections
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Reps. Andrew Garbarino of New York and Don Bacon of Nebraska are
working behind the scenes to persuade Republican colleagues that the Cybersecurity and Infrastructure Security Agency needs more resources, not fewer. Their argument: AI models are growing capable enough to enable devastating cyberattacks on water systems and energy grids, and CISA still has no permanent director. Bacon warned that recent staffing cuts have crippled the agency heading into a contentious midterm cycle, making critical infrastructure more vulnerable at precisely the moment when AI-enabled threats are accelerating.
</p>
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Senate Democrats press RFK Jr. on whether his family profits from Merck's Gardasil settlement
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Four Senate Democrats — Elizabeth Warren, Angela Alsobrooks, Richard
Blumenthal, and Andy Kim — sent a letter Monday to HHS Secretary Robert F. Kennedy Jr. asking whether his family is financially benefiting from a $50 million Merck settlement over the Gardasil vaccine. Kennedy was previously an attorney of record in Gardasil litigation and disclosed plans to transfer his interests in those cases to a family member at the firm Wisner Baum. The letter specifically asks whether Kennedy's son Conor, who works at that firm, received the transferred fees — a question with direct bearing on Kennedy's ability to set
federal vaccine policy without a conflict of interest.
</p>
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Read more at The Hill ›
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House Democrat demands Musk explain pollution from xAI data centers
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
A House Democrat is demanding that Elon Musk account for pollution generated by xAI's
artificial intelligence data centers, escalating congressional scrutiny of the environmental footprint of large-scale AI infrastructure. The inquiry highlights a tension that is growing across the industry: the massive energy and emissions demands of AI computing are drawing regulatory and political attention even as companies race to expand capacity. For investors and companies with sustainability commitments, the pressure signals that data center siting and power sourcing are becoming material compliance issues.
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Bipartisan senators strike deal on Russia sanctions bill to honor Lindsey Graham
</a>
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<div style="font-size:17px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Republican and Democratic
senators announced a breakthrough Tuesday on long-stalled bipartisan legislation to impose sweeping new sanctions on countries that purchase Russian oil and gas, and to extend existing restrictions on Iran's wartime economy. The deal was brokered as lawmakers gathered in Washington to memorialize Sen. Lindsey Graham, the bill's principal champion, who spent the final hours of his life in Ukraine working to advance the measure. A test vote was scheduled for Tuesday evening. If enacted, the legislation would raise the cost of purchasing Russian
energy exports, with direct implications for the global oil market and for economies — particularly in Asia — that have continued to buy discounted Russian crude throughout the Ukraine conflict.
</p>
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Treasury sanctions 10 entities and 8 tankers in new Iran action targeting Strait of Hormuz revenue
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
The U.S. Treasury
Department designated 10 entities and eight tankers Wednesday in a new round of Iran-related sanctions, targeting what officials described as Iranian schemes to extract fees from ships transiting the Strait of Hormuz through insurance policies managed by two designated firms. Six of the targeted entities are based in China. The action followed President Trump's public vow to hit Iran hard after the U.S. military intercepted multiple Iranian ballistic missiles aimed at American forces, a development that has already pushed oil prices up more
than 4% and amplified risks to a chokepoint through which a significant share of global energy supply passes.
</p>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
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US missile interceptor stockpiles critically depleted as Iran conflict enters sixth month
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
A Center for Strategic and International Studies
analysis estimates U.S. Patriot interceptor stocks have fallen to between 759 and 827 — down from 2,330 before the conflict with Iran began — with THAAD inventories also down 38% to between 234 and 278. The analysis, based on budget documents and publicly available information, warns that shrinking stockpiles may force the U.S. and its coalition partners to accept greater risk when deciding which incoming missiles to engage. With no end to the six-month conflict in sight and recent Iranian ballistic missile attacks on U.S. forces, the depletion
raises urgent questions about defense industrial capacity and procurement timelines.
</p>
</div>
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<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
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<a style="color: #17253d; text-decoration: none;">
Top US commander warns troops that cellphone videos give Iran real-time intelligence on strike damage
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
U.S. Central
Command chief Admiral Brad Cooper warned deployed troops in a letter that cellphone footage posted online allows Iran to assess the success or failure of its strikes in near real-time, and sources told Reuters that some personnel in Jordan may soon be ordered to surrender their phones. The conflict has killed 18 U.S. troops and wounded more than 600 since February 28. A potential phone confiscation order would mark a significant escalation in operational security measures and add another dimension of strain on the thousands of American service
members currently stationed in the region.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
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<a style="color: #17253d; text-decoration: none;">
Acting DNI Pulte's claimed mass firings at ODNI draw skepticism from current officials and Congress
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Acting Director of National Intelligence Bill Pulte
claimed Tuesday — hours before the Senate confirmed his replacement, Jay Clayton — that he had reduced ODNI staff by nearly a third through five rounds of terminations. Current and former officials told the New York Times that few people have actually been fired in recent weeks, and congressional offices have been unable to verify the figures Pulte posted to social media in posts mimicking President Trump's style. Pulte, who also oversees a federal housing agency, had no national security background before taking the acting DNI role in June,
and his tenure has raised questions about the integrity and readiness of the intelligence community's leadership structure.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at The New York Times ›
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<a style="color: #17253d; text-decoration: none;">
Bill Pulte maneuvers to extend his influence even as Jay Clayton prepares to take over at ODNI
</a>
</h4>
<div style="font-size:16px;line-height:1.6;color:#121721;text-align:left;">
<p style="margin:0;">
Despite the Senate confirming Jay Clayton as the permanent
director of national intelligence Tuesday night, Bill Pulte is expected to remain a presence rather than stage a swift exit. Pulte used his final days in the acting DNI role to publicize rounds of staff terminations at ODNI while also pursuing other activities, including what Politico described as retribution campaigns against Trump's perceived enemies. Separately, Politico reported that Trump overrode his administration's own metrics to reject disaster aid requests from four Democratic-led states — Rhode Island, New York, New Jersey, and
Massachusetts — which had sought a combined $227 million after a record February snowstorm, even as he approved nearly 90% of requests from Republican-governed states.
</p>
</div>
<div style="padding:8px 0 0;text-align:left;">
<a style="color: #121721; text-decoration: none; font-weight: 600; font-size: 14px;">
Read more at POLITICO ›
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1 month, 3 weeks ago - washington@e.qz.com
Senate confirms Jay Clayton as intel chief
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