By Omar El Chmouri and Maddie Parker

Good morning. All eyes are on Nvidia’s earnings, and they’re more than a little confusing. The Senate Banking Committee is getting prepped for a hearing on a potential Fed governor. And why Taylor Swift’s engagement is big business. Listen to the day’s top stories.

Nvidia earnings are coming up post-market and Wall Street is baffled what to expect, particularly regarding revenue in China. One potential indicator of how the numbers may look came from Chinese chipmaker Cambrico, which posted a record profit—its shares are up 120% this year. Here’s a reminder why geopolitics and computers chips are so intertwined.

The Senate Banking Committee is preparing to hold a hearing next week on the nomination of White House economic adviser Stephen Miran to serve as a Federal Reserve governor. Meanwhile, the Trump administration is exploring ways to exert exert more influence over the Fed’s 12 regional banks, people familiar said, escalating its attack on the central bank—a move that may backfire on the economy.

President Trump imposed a crushing 50% tariff on Indian goods, upending a decades-long effort to forge closer ties between Washington and New Delhi. The new levies, the highest in Asia, are to punish the country for buying Russian oil. Meanwhile, US firms are said to be eyeing the energy sector in neighboring Pakistan, and Texas oil giant Exxon held talks about returning to its Russian venture, according to the WSJ.

Microsoft President Brad Smith reiterated an earlier pledge to investigate reports that Israel used its technology to select bombing targets, after protesters occupied his office. Meanwhile, OpenAI is updating ChatGPT following a lawsuit alleging that a teenager who died by suicide relied on the chatbot as a coach.

SpaceX’s Starship rocket successfully launched and deployed satellites for the first time, achieving new technological milestones after a year of fiery setbacks. In other corporate news, 1789 Capital, where Donald Trump Jr. is a partner, has pumped money into defense technology startups Vulcan Elements and Hadrian.

Deep Dive: The New Air Traffic Control Crisis

The air traffic control tower at Ronald Reagan Washington National Airport.Photographer: Stefani Reynolds/Bloomberg

The Federal Aviation Administration has embarked on a massive recruitment drive but there's a problem. There just aren't enough instructors to show all those new hires the ropes.

• The teachers they do have are increasingly being required to work from 7 a.m. to midnight, and their compensation isn’t top dollar.
• The hiring push comes after a deadly crash, chilling control-tower outages and the slashing of flight schedules. The nations needs 3,000 more controllers.
• Although a new labor contract has boosted pay and benefits somewhat, the daily grind isn’t getting any easier as an influx of fresh recruits has put additional strain on teachers. July saw the highest number of academy students in the FAA’s history (550), and August and September could top that.

The Big Take

A portrait of Chinese President Xi Jinping at the Museum of the Chinese Communist Party in Beijing.
Photographer: Bloomberg

Xi Jinping has unleashed the biggest purge of military leaders since Mao Zedong, ousting almost a fifth of the generals that he personally appointed. Is this a sign of Xi's political strength, or of his weakness?

Opinion

Jerome Powell speaks with Lisa Cook on June 25. Photographer: Al Drago/Bloomberg

The Fed should not “go to war” with the White House, Claudia Sahm writes. At the same time, the central bank needs to clearly explain to Congress, financial markets and the public what’s at stake.

Before You Go

Taylor Swift and Travis Kelce announced their engagement in a joint post on Instagram. Photographers: Swift and Kelce

It’s a love story. Taylor Swift’s engagement to football star Travis Kelce hasn’t just broken the internet, it’s also sparked a flood of online bets on the singer’s life. Traders are putting money behind their predictions for the couple, from when they may have a baby to whether Swift will headline the 2026 Super Bowl halftime show. Here’s why it’s such big business.