Anna's Daybreak News

_{Just facts, you think for yourself}

Tuesday, 5:14 AM

August 26, 2025

Good morning news friend! Catch today’s key moments as they unfold—shaping the headlines of tomorrow. 📰🌟

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Trump Fires Fed’s Cook

President Trump fired Federal Reserve Governor Lisa Cook over alleged mortgage fraud involving two primary residence claims before her 2022 appointment.

Cook denies wrongdoing and contests Trump's authority to remove her, with her term set to expire in 2038. The allegations were raised by William Pulte, a Trump appointee to the Federal Housing Finance Agency, and referred to the Attorney General.

Legal experts highlight no precedent for firing a Fed governor mid-term, noting "for cause" removals usually require misconduct during service and due process.

The move shifts Fed board balance to 4-3 in Trump's favor, raising concerns over increased political influence on monetary policy and sparking market reactions.

Sources: Bloomberg, Reuters, AP News.

Trump Threatens China with 200% Tariffs Over Magnets

President Trump threatened a 200% tariff on China if it restricts rare-earth magnet exports, vital for U.S. industries like automotive and electronics. China supplies 90% of these magnets and recently added them to export controls.

Despite tensions, China’s magnet exports to the U.S. surged 660% in June and 76% in July. Boeing withheld airplane parts, grounding 200 Chinese planes, while negotiating a major aircraft sale to China.

In June, both countries eased some trade restrictions, with tariffs reduced to around 55% for China and 32% for the U.S., but the agreement expires in November. Upcoming talks aim to prevent escalation amid strategic supply vulnerabilities.

Sources: Bloomberg, Reuters, CNBC, TheStandars.

US New Home Sales Update

New US single-family home sales in July 2025 fell 0.6% to 652,000 units but exceeded forecasts. Sales declined 8.2% year-over-year, with regional shifts: the West rose 11.7%, the South and Midwest fell, and the Northeast was flat.

Mortgage rates eased to 6.58% but still outpace 3.9% wage growth. New home inventory remains high at 499,000 units, a 16-year peak for completed homes, with a 9.2-month supply. Median home prices dropped 5.9% year-over-year to $403,800.

Builders offered incentives widely, including mortgage rate subsidies. Residential investment is projected to shrink for a third quarter amid Fed caution and persistent market challenges.

Sources: Xtb, Reuters, Bloomberg, Com, Seekingalpha.

Wall Street Rings Alarm on Tokenized Stocks

The World Federation of Exchanges warns that tokenized stocks, which represent company shares on blockchain, do not confer actual shareholder rights or protections.

It urges regulators to establish clear rules, protect investors, and ban marketing these tokens as equivalent to real stocks. Robinhood launched tokenized equities in Europe, including for private firms like OpenAI, while Coinbase seeks SEC approval in the U.S.

The tokenized asset market exceeds $26 billion, but tokenized stocks remain a small segment. Separately, PDD Holdings reported 7% revenue growth in Q2 2025 but saw a 21% drop in operating profit, facing challenges from U.S. tariffs and the end of the de minimis tax exemption.

Sources: Reuters, PYMNTS, Parameter.

The Gut Microbe Fuel Driving Obesity

Obese mice and humans have elevated blood levels of D-lactate, a gut microbe-derived molecule that promotes excess liver glucose and fat production more than L-lactate.

Engineered bacteria producing D-lactate raise blood glucose in mice, with D-lactate converting into liver metabolites fueling metabolic dysfunction. A poly-L-lactide polymer (PL65) traps D-lactate in the gut, lowering blood glucose, insulin resistance, liver inflammation, and fibrosis in obese mice.

Blood D-lactate increases of 10–100 μmol/L correspond to 1 mmol/L glucose rises. PL65’s effects depend on dose and polymer length. Most findings are from male mice; human data are limited. The approach suggests a new treatment targeting gut D-lactate to combat type 2 diabetes and fatty liver disease.

Sources: Sciencedirect, Insideprecisionmedicine.

OCD Brain Patterns

Researchers identified brainwave biomarkers linked to OCD by recording deep brain activity in 11 treatment-resistant patients during obsession, compulsion, and relief phases.

Increased alpha (8–12 Hz) and delta (1–3 Hz) waves appeared during compulsions, linked to urges rather than actions, especially in the external globus pallidus (GPe) and anterior limb of the internal capsule (ALIC). Delta waves correlated with symptom severity and anxiety reduction.

Abnormal theta-alpha phase-amplitude coupling in the ALIC may indicate OCD-specific pathology. These findings suggest potential for on-demand deep brain stimulation (DBS), activating only during compulsive episodes to improve treatment while reducing side effects. Limitations include small sample size, subcortical focus, and variability in symptoms.

Sources: Sciencealert, Newatlas.

“A man ought to avoid worry, for it's like paying interest on a debt you may never owe, a business that pays no dividends.”

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Baked with love,

Anna Eisenberg ❤️