Greetings,

The strong earnings being reported by certain artificial intelligence companies has begun to assuage concerns over an AI bubble, though skepticism remains.

Here's what else we're following:

• US, China set to finalize framework trade pact 🤝
• Senate deadlock pushes shutdown into week four ⛔
• AI, serial building drive corporate venture success 🤖
• S. Korea trade deal stalls over $350B investment request ⏸️

... and more. 

A stronger earnings outlook for artificial intelligence companies is easing concerns that the AI-driven global equity rally is a bubble. SK Hynix and Advantest have reported robust earnings, reflecting increased demand, while Nvidia has surged more than 8.5% in Asia after President Donald Trump said he would discuss Nvidia's Blackwell chip with Chinese President Xi Jinping.

President Donald Trump will meet Chinese President Xi Jinping in South Korea this Thursday to formalize a "framework" trade deal after recent negotiations. The accord is expected to have China resume U.S. soybean purchases and pause new rare-earth export controls for a year, while the U.S. delays additional tariffs and rolls back part of its 20% fentanyl-related levy.

The Senate has failed for the 13th time to pass a bill to reopen the federal government, pushing the shutdown into its fourth week. The ongoing impasse is drawing increasing criticism from the largest federal worker union and continues to stall other legislative efforts. Supplemental Nutrition Assistance Program benefits are at risk of running out, prompting Senator Josh Hawley to propose a bill to fund the program.

The Federal Reserve is expected to cut its benchmark rate by 25 basis points today, bringing it to a range of 3.75%-4%. Policymakers are moving to support the economy amid signs of a cooling labor market and subdued inflation, even as data gaps from delayed government reports cloud the outlook. The decision reflects a precautionary step to sustain growth and maintain confidence while leaving the door open for further adjustments if economic conditions weaken.

Trade negotiations between the US and South Korea have hit a roadblock as President Donald Trump demands a $350 billion investment from South Korea during the Asia-Pacific Economic Cooperation summit. South Korean officials are concerned that such a large cash investment could destabilize their economy and have proposed loans and loan guarantees instead.

Corporate venture building is achieving quicker returns with less investment, according to a McKinsey survey. Companies that have launched new ventures in the past five years are more likely to prioritize venture building, generating significant revenue faster, particularly when leveraging artificial intelligence. The survey notes a decrease in the average investment needed to break even, with most new ventures breaking even within two years.

CFOs are increasingly prioritizing receivables innovation to improve cash flow, according to a PYMNTS Intelligence report. Instead of relying solely on cost control, CFOs are leveraging digital transformation and artificial intelligence to manage billing, collection, and payments more efficiently. This approach unlocks liquidity, reduces inefficiencies, and enhances customer satisfaction.

Securitize plans to go public through a merger with Cantor Equity Partners II, a special-purpose acquisition company sponsored by Cantor Fitzgerald. The deal values Securitize at $1.25 billion and will provide up to $469 million in gross proceeds. Securitize plans to tokenize its own equity after the merger closes, which is expected in the first half of 2026.

The Bank for International Settlements has warned that credit ratings on private loans held by insurers might be systematically inflated amid a lack of transparency and liquidity. The BIS says smaller ratings agencies face commercial pressure to assign higher ratings, which could "lead to inflated assessments of creditworthiness" and "obscure the true risk of complex assets."

Employers in the US value durable skills such as teamwork and communication and attitudes such as adaptability and resilience in early-career hires, according to a survey by UpSkill America and Western Governors University. While 58% of employers hire primarily for skills, 42% prioritize attitudes, and employers who have removed degree requirements tend to fall into the latter group.  

Surfers can't control the ocean, but can learn to read and ride its waves, which mirrors a skill leaders must learn about their business as well, writes Steven Gonzalez, the president & CEO of HealthView Home Health and Hospice & Palliative Care, who notes that waiting for perfect conditions leads to missed opportunities, especially in fast-moving areas like AI. "The goal is not to surf faster, but to stay on the wave longer, guiding others with clarity and purpose," Gonzalez writes.