Hello Capitalists,

Here is everything you should be following today:

• Bessent continues his charge through the US regulatory system

• Seeks to proactively assess emerging economic threats

• Trader’s jitters over Oracle proved correct as the stock tanks

• Fed cuts rates by .25%, Powell warns of only one more in 2026

• Pepsi to slash product lines in cost cutting venture after investor pressure

• Cracker Barrel’s Woke Hangover continues

Today’s markets + assets:

• ✅ DOW: 48679.64 (⬆️ 1.29%)

• ✅ S&P: 6888.42 (⬆️ 0.03%)

• 🔴 NASDAQ: 23518.77 (⬇️ 0.57%)

• ⚠️🔴CBOE VIX Volatility Index: 15.30 (⬆️ 2.98%)

• ✅ Gold: $4307.60 (⬆️ 1.96%)

• ✅ Silver: $64.38 (⬆️ 5.52%)

• 🔴 Bitcoin: $90,209 (⬇️ 0.29%)

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Bessent leads the charge to reform Obama era financial oversight council

Treasury Secretary Scott Bessent is poised to upend the Financial Stability Oversight Council, proposing a dramatic pivot from 2008 crisis-era crackdowns to deregulation that could unleash economic growth in a letter unveiled Thursday.

• Bessent Chairs Deregulation Drive: As FSOC head, Bessent’s letter urges members to probe if U.S. rules stifle growth and erode stability, flipping the council’s traditional enforcement role.

• Post-Crisis Body Targeted: Established in 2010 amid 2008 meltdown fallout, FSOC monitored Wall Street risks to avert repeats; now, it faces scrutiny for overreach and stifling economic growth.

• AI Resilience Task Force: The proposal launches a working group to harness AI for bolstering financial durability while also scanning emerging tech for unforeseen hazards.

• Trump Agenda Alignment: The initiative echoes the Trump administration’s pro-business rollback, diverging sharply from prior emphasis on intensified oversight of big banks under Presidents Obama and Biden.

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Oracle’s debt load crushes earnings, shares tank as AI panic spreads

Oracle shares cratered 15% Thursday after earnings revealed a $16.06 billion revenue shortfall and $10 billion negative free cash flow, igniting fears over massive AI infrastructure debt and rippling panic through Nvidia, AMD, and CoreWeave stocks amid a volatile Silicon Valley sell-off.

• Concerning Trend Continues: Including the 15% crash yesterday Oracle’s share price has now fallen by more than 41% in the last three months. From a high of $330 on September 11th to as low as $186 today.

• Earnings Miss Sparks Turmoil: Oracle’s Q2 revenue hit $16.06 billion, undercutting $16.21 billion forecasts, as aggressive AI data center expansions fueled investor doubts on sustainability.

• Debt Avalanche Alarms Wall Street: The company plans $20-30 billion in annual borrowing through 2028, including a record $18 billion September bond sale, alongside a $50 billion fiscal 2025 capex surge.

• Sector-Wide Sell-Off Ensues: Nvidia dropped over 2%, AMD 3%, CoreWeave 5%, and Micron 1%, amplifying scrutiny on AI bubble debt risks despite robust demand signals.

• Analysts Spot Buying Chance: Wedbush calls the dip a “clear opportunity,” citing healthy AI backlog; as Oracle eyes chip leasing and customer-supplied hardware to ease debt pressures.

Fed cuts again but warns that the pace of cuts may slow down

In a divided 10-3 vote, the Federal Reserve cut its benchmark interest rate by a quarter-point Wednesday marking the third reduction this year amid cooling inflation, but signaled a cautious slowdown with just one more cut eyed for 2026.

• Third Consecutive Cut Approved: The Federal Open Market Committee lowers federal funds rate to 3.5%-3.75% on December 10, 2025, in a split decision with three dissents for deeper or no action.

• Internal Divisions Exposed: Dissenters include Governor Stephen Miran pushing for half-point slash and regional presidents favoring pause, highlighting policy rifts amid funding market pressures.

• Projections Signal Restraint: The Fed’s “Dot Plot” forecasts a single 2026 rate cut and one in 2027, with GDP growth upgraded to 2.3% but inflation lingering above 2% target until 2028.

• Markets Rally Cautiously: Stocks surged with Dow gaining 500 points post-announcement, while Treasury yields dip. The Fed will also resume $40 billion Treasury bill buys to ease liquidity strains.

Pepsi to axe hundreds of snacks and slashes prices after investor pressure

In a bold capitulation to activist investor Elliott Management’s pressure - after they took a $4 billion stake, PepsiCo announced Tuesday it will slash nearly 20% of its U.S. product lineup—hundreds of snack and beverage SKUs—by early 2026 while closing plants and cutting prices to revive lagging sales against rival Coca-Cola.

• Activist Stake Ignites Overhaul: Elliott’s September $4 billion investment prompted a scathing letter demanding cost cuts, outsourcing of bottling, and divestitures to counter PepsiCo’s decade-low valuations and sales slump.

• Factories Shuttered for Savings: Three U.S. plants face closure and select production lines face cancellation in 2025, targeting productivity gains and at least a 1% annual profit margin boosts over three years.

• Healthier Launches Prioritized: New products emphasizing no artificial colors, higher protein, fiber, and whole grains aim to align with consumer trends, boosting mainstream brand frequency amid affordability drives.

• Growth Rebound Forecasted: Executives project 2-4% core sales acceleration in late 2026, fueled by streamlined operations and reinvested capital, with Elliott praising the “urgent” collaborative pivot.

Cracker Barrel’s Woke hangover is going to take a long time to recover from

Cracker Barrel’s reckless rebrand, meant to modernize its folksy image which instead sparked a nationwide backlash and forced a hasty reversal, is still haunting the company, with CEO Julie Masino warning Tuesday that the chain’s recovery from plunging sales and traffic will demand patience amid lingering consumer distrust.

• Sales Plunge Drastically: First-quarter revenue dropped 5.7% year-over-year, with traffic declining 1% early August and 9% later from the botched overhaul, is exacerbating financial strain

• EBITDA Takes Major Hit: Adjusted earnings before interest, taxes, depreciation, and amortization fell to $7.2 million from $45.8 million last year, partly due to $14 million in unexpected marketing and conference costs.

• CEO Voices Deep Remorse: Masino admitted the rebrand “missed the mark” on guest comfort goals, and to feeling “fired by America” over the uproar, while vowing to rebuild trust through targeted apologies.

• Strategic Shifts Accelerate: The company now prioritizes menu tweaks, back-of-house efficiencies, and leadership changes to cut costs and stabilize operations, aiming for fiscal 2025 trajectory despite macro challenges.

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