Hello, N2K’ers!

The theme of Cheddar’s world-famous News Haiku™ competition this week is that only 54% of Americans now drink alcohol — a record low reflected in N2K readership — the majority of whom are “rethinking” their drinking, according to last week’s poll. Send me a haiku on the subject by Thursday at noon ET right here. Winner gets glory — lots of glory, and a GIF!

Now, let’s talk about the news you Need2Know?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• The U.S. wants a 10% stake in Intel (and other chi …

• What ban? White House launches a TikTok

• Home Depot will jack prices cuz tariffs

• Apple’s making more iPhone 17s in India

• Spotify introduces new ‘mix’ feature

What’s the stock market up to, eh?

$SPX ( ▼ 0.24% ) $DJI ( ▲ 0.04% ) $NDX ( ▼ 0.67% )

Companies mentioned in today’s newsletter

$INTC ( ▼ 6.99% ) , $MU ( ▼ 3.97% ) , $SSNLF ( ▲ 9.01% ) , $TSM ( ▼ 1.76% ) , $HD ( ▼ 1.34% )  

The U.S. wants a 10% stake in Intel (and other chipmakers)

The Trump administration is exploring equity stakes in semiconductor companies that have benefited from the government’s CHIPS Act funding, according to Reuters. Spearheaded by Commerce Secretary Howard Lutnick, the initiative reflects the administration's focus on bolstering national security and ensuring economic resilience in the strategically critical semiconductor industry.

The CHIPS and Science Act, which allocates $52.7 billion in funding for chip manufacturers to domesticate production, has already benefited major players like Intel $INTC ( ▼ 6.99% ) , Micron $MU ( ▼ 3.97% ) , Samsung $SSNLF ( ▲ 9.01% ) , and Taiwan Semiconductor Manufacturing Co. $TSM ( ▼ 1.76% ) . Reports suggest that the government’s plan involves acquiring equity stakes in these companies in exchange for subsidies, allowing the U.S. to gain influence over an industry vital to the nation's technological and economic future.

White House press secretary Karoline Leavitt remarked on the administration’s novel approach: “The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” she said.

Intel has reportedly been in talks to offer the government a 10% stake, with discussions led by Lutnick. Micron, the largest U.S. recipient of CHIPS Act cash, has also expressed interest in increasing its U.S. investments. While TSMC and Samsung have yet to comment on the potential equity arrangement, this strategic shift represents a marked departure from previous government support strategies.

Lutnick noted in earlier comments that the goal is not to micromanage corporate operations but to ensure accountability. “The U.S. does not want to tell Intel how to run its operations,” he said during an appearance on CNBC, emphasizing that the investments should benefit both taxpayers and the private sector.

While the US government took stakes in companies during the global financial crisis this move is "extremely unusual,” Kevin “Not Michael” J. Fox, an economist at the University of New South Wales Sydney, told the BBC.

Last week, Nvidia $NVDA ( ▼ 0.14% ) and AMD $AMD ( ▼ 0.81% ) agreed to pay the U.S. government 15% of their Chinese revenues as part of an unprecedented deal to secure export licenses to China. For what it’s worth, export taxes are prohibited by the U.S. Constitution.

Song of the day: Tres Leches, ‘Make Friends’

Tres Leches is an offshoot of an Australian jazz/funk band from Melbourne. That says a lot, if you know Melbourne or if you understand Australian jazz/funk. If it doesn’t tell you anything, then maybe you should give it a try.

What ban? White House launches a TikTok

The White House has launched an official TikTok account, marking a notable shift from President Trump's previous stance on the platform. In 2020, Trump had been a staunch advocate for banning the Chinese-owned app due to national security concerns. However, he has since changed his tune, especially after crediting TikTok with helping him gain support among young voters during his victorious 2024 presidential campaign.

"America we are BACK! What’s up TikTok?" reads the caption on the White House's first post. This launch comes amid ongoing legal and political discourse surrounding TikTok's operations in the United States. Despite a federal law demanding TikTok's sale or ban, Trump has extended the deadline multiple times, allowing the app to continue operating temporarily.

With TikTok's astounding 170 million U.S. users, it's clear why the administration values the platform. Trump himself boasts 15.1 million followers on his personal TikTok account.

Today on the ‘gram: Useful

Post of the day: Like moths to a flame

Quote of the Day

Home Depot will jack prices cuz tariffs

Home Depot $HD ( ▼ 1.34% ) , the largest home improvement retailer in the U.S., has announced that some prices will rise due to the impact of import tariffs. Speaking after the company’s recent quarterly earnings report, CFO Richard McPhail highlighted the financial strain caused by tariffs imposed by the Trump administration.

“For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” McPhail said during an interview with The Wall Street Journal. He noted that while the price hikes won't be broad-based, “there will be modest price movement in some categories.”

This marks a shift from Home Depot’s prior stance. Three months ago, the company avoided speculating on price changes but acknowledged that tariffs might lead to discontinuing some product lines. Currently, less than half of Home Depot’s inventory comes from foreign suppliers. The company is also working to diversify its supply chain, ensuring no single country supplies more than 10% of its goods.

Despite quarterly sales rising 5% from the previous year, Home Depot’s net income fell 0.2%, partly due to higher operational costs. CEO Ted Decker acknowledged economic challenges impacting big renovation projects, citing “general economic uncertainty” as the primary factor. However, McPhail expressed confidence, emphasizing that home improvement demand remains. “Our job is to position ourselves to be ready for that.”

Should you check your 401(k) today?

👎️ 

Nope.

Apple’s making more iPhone 17s in India

Apple $AAPL ( ▼ 1.97% ) has ramped up iPhone production in India, despite the country drawing criticism from the White House for its Russian oil purchases. Throughout the month, President Donald Trump heightened tariffs on India to 50%, threatening further secondary tariffs of up to 100% if a peace deal with Ukraine isn't realized by September. Amid this challenge, Apple reportedly increased production at five of its factories in India, including new plants under Tata Group and Foxconn Technology, as it readies the iPhone 17 launch.

Apple remains committed to its expansion in India, while concurrently investing over $600 billion in U.S. manufacturing. Moving production away from China due to trade disputes bolstered iPhone shipments from India to the U.S. by a remarkable 76% in May.

Spotify introduces new ‘mix’ feature

Spotify is raising the bar for music customization with its new audio mixing tool, "Mix," currently rolling out in beta for eligible Premium users. The innovative feature lets users pretend it’s 1990 and they’re using two turntables.

Songs can now blend into each other with smooth transitions, giving listeners the feel of a “DJ-curated mix.” Users can automatically create transitions between tracks or manually tweak settings like volume, EQ, and effect curves. By analyzing waveform and beat data, users can craft unique transitions that “suit their vibe.” 

Premium users also have the option to collaborate with others to create mixed playlists together. Once edits are saved, listeners can toggle between the mixed and unmixed versions with ease.

Poll of the Day: Price rises a cause of concern?

Poll of the Day: You’re pessimistic about peace

We asked: Are you optimistic about a Ukraine peace deal?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ да (*Russian for "yes") (134 votes)

🟩🟩🟩🟩🟩🟩 нет (*Russian for "no") (508 votes)

642 Votes via @beehiiv polls