Crypto gets major win

Good morning. Crypto comes of age. Rare earths may get a little bit less rare. And it's curtains for Stephen Colbert. Listen to the day's top stories.

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Congress passed the first federal legislation to regulate stablecoins, marking a political coming-of-age for the crypto industry and a victory for Donald Trump. It may unlock faster, cheaper forms of payments—and bring legitimacy to a $265 billion market some predict might swell to $3.7 trillion by 2030. Wall Street is warming to the "digital dollar." Retailers too. But the road ahead is full of obstacles. Here's how quick crypto riches are reshaping Trump's own fortune.

Trump authorized the Justice Department to seek the release of grand jury testimony from the prosecution of Jeffrey Epstein, yielding to pressure from supporters demanding transparency about the late, disgraced financier. His team's handling of the case is deepening a rift within the Republican Party and straining his base. Elon Musk said last week Trump should "just release the files as promised."

Norfolk Southern and Union Pacific Railroad freight locomotives in Burnside, Kentucky. Photographer: Luke Sharrett/Bloomberg

Rare deal. Union Pacific is contemplating buying smaller rival Norfolk Southern in what could rank as the largest ever railroad transaction. Antitrust issues mean such mergers don't come around that often in the industry, and marrying Union Pacific's network across the western US with Norfolk's East Coast routes would transform the market.

No stopping Netflix. The owner of the world's most popular paid streaming service blew estimates out of the water last quarter. The popularity of Squid Game and Ginny & Georgia has helped fuel a $250 billion rally in the shares. But consumers are a fickle lot, as yogawear retailer Lululemon is painfully finding out. Its famous black leggings are piling up at outlet stores.

Business

Netflix Thrives as Estimates Topped, Forecast Raised

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If you're a greenhorn at Goldman Sachs, your career path just got a whole lot more alluring. The firm is offering "an early entry point" to investment banking and asset management to dissuade interns from later jumping ship for potentially more lucrative jobs in private equity. The lure of PE has long been a thorn in the side of Wall Street banks, so much so that Goldman has asked junior bankers to swear their loyalty on a regular basis.

Bloomberg Power Players New York: Set against the backdrop of the US Open Tennis Championships, we'll bring together influential voices from the business of sports to identify the next wave of disruption that could hit this multitrillion-dollar global industry. Join us on Sept. 4. Learn more.

Deep Dive: Chasing Rare Earths

Neodymium-praseodymium metal ingots. Photographer: SeongJoon Cho/Bloomberg

China is stepping up exports of rare-earth products again after government-imposed curbs that proved to be Beijing's most powerful weapon in its trade war with the US.

Exports jumped 80% in June, but that's still well below the levels that preceded the huge shock to global magnet supplies, prompting governments to urge China to boost flows.

China turned the tables on Trump, who'd boasted he had the upper hand, by essentially shutting down shipments of one thing the modern world can't do without.
Rare earths are so sought after that it's sparked a hive of smuggling activity. China on Friday accused foreign intelligence agencies of stealing the materials.
Countries and companies are taking matters into their own hands. Apple this week struck a $500 million deal to buy rare-earth minerals from MP Materials, the US producer backed by the Pentagon, which has taken a $400 million stake.
And, closer to Beijing, a rebel army in world No. 3 supplier Myanmar is forging a rare-earth empire along its 1,300-mile border with China.

The Big Take

Photographer: Illustration: Glenn Harvey

Jane Street is famously tight-lipped. But now the trading powerhouse's secrets are spilling into the open, thanks to a series of bond documents and a probe in India, revealing an embrace of risk and an almost $42 billion war chest. As rivals try to figure out how it started out-earning them, one thing has become clear: Jane Street doesn't operate like the rest.

Big Take Podcast

Why Regulators Are Watching Jane Street

Opinion

Republican conservatives dropped a two-day blockade of industry-backed crypto bills. Photographer: Al Drago/Bloomberg

The Genius Act is anything but, Allison Schrager writes. The bill would introduce a tremendous amount of risk to the financial system and to consumers. And for what purpose? The US already has a means of payment—it's called the dollar—and it works pretty well.

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Before You Go

Stephen Colbert. Photographer: CBS Photo Archive/CBS

Curtain call. The Late Show with Stephen Colbert will end in May, CBS said, citing financial pressures. Colbert, known for his satirical jabs at Donald Trump, isn't being replaced. "This is all just going away," he told a booing audience.

A Couple More