Capitol Clashes, Tech Turns, and Big Bank Bets—A Day of High Stakes in U.S. and Global Power Plays

2nd July 2025

The U.S. Senate passed Trump’s major tax and spending bill by a narrow margin, sparking divisions among Republicans ahead of a tough House vote. In the same bill, a proposed 10-year ban on state-level AI regulation was removed in a near-unanimous Senate vote. Trump settled a $16 million lawsuit with Paramount over a “60 Minutes” interview, with funds going toward his presidential library. Meanwhile, Santander is expanding its UK presence with a $3.64 billion acquisition of TSB, as Sabadell shifts focus back to Spain.

• Senate Passes Trump’s Sweeping Tax and Spending Bill, House Vote Looms

The U.S. Senate has narrowly passed President Trump’s wide-reaching tax and spending bill, setting the stage for a tight battle in the House of Representatives. The legislation, passed 51–50 with Vice President JD Vance casting the tie-breaking vote, would extend Trump’s 2017 tax cuts, boost funding for the military and immigration enforcement, and scale back spending on Medicaid and food assistance programs. While Trump is eager to sign the bill into law by July 4, several House Republicans have voiced concerns, especially over provisions that cut key safety-net services and increase the national debt by $3.3 trillion.

The bill has exposed growing divides within the GOP. Some Republicans, particularly moderates and lawmakers from rural or high-tax states, are uneasy about deep cuts to Medicaid and limited relief for state and local tax payments. In contrast, hardline conservatives, including members of the House Freedom Caucus, argue the Senate version doesn’t go far enough in slashing spending. The final Senate version included last-minute changes to win over crucial votes, such as extra funding for rural hospitals and food aid in states like Alaska.

House Speaker Mike Johnson is aiming for a swift vote before the holiday weekend, though bad weather and travel delays could throw off the timeline. Trump, meanwhile, is taking an active role in urging Republicans to rally behind the bill, calling it “a great bill” with “something for everyone.” Still, internal disagreements persist, and the House vote is expected to be tight. Some GOP lawmakers are already calling for further changes before they’ll lend their support.

The bill’s critics, including Democrats and some prominent voices like Elon Musk, argue it favors the wealthy while gutting key programs for low-income Americans. The nonpartisan Congressional Budget Office estimates that nearly 12 million more people could lose health coverage under the plan, and that most of the tax benefits would flow to the top 1% of earners. Democrats have united in opposition, calling it an assault on healthcare and food security. With both sides digging in, the next few days in Congress could prove pivotal for the future of Trump’s economic agenda. Financial Times

• Senate Scraps AI Regulation Ban from Trump’s Megabill

In a rare show of near-unanimous agreement, the U.S. Senate voted 99-1 on Tuesday to strike a proposed 10-year ban on state-level AI regulations from President Trump’s sweeping tax and spending bill. The move, led by Republican Senator Marsha Blackburn, came during a lengthy amendment session, as lawmakers worked through dozens of changes before ultimately passing the broader bill along party lines. Only Senator Thom Tillis stood in favor of keeping the ban.

Originally, the bill would have prevented states that chose to regulate AI from accessing a new $500 million federal fund meant to support AI infrastructure. Major tech companies like Google and OpenAI had backed the restriction, arguing that a patchwork of state rules could stifle innovation. But critics, including lawmakers from both parties, pushed back, saying states need flexibility to respond to local concerns—especially around deepfakes, online child safety, and autonomous vehicles.

Senator Maria Cantwell, a leading Democrat on the Commerce Committee, praised the decision, saying state-level protections are crucial in the absence of strong federal laws. Arkansas Governor Sarah Huckabee Sanders echoed that sentiment, emphasizing that states must be empowered to shield children from the risks of unchecked AI tools.

Blackburn had briefly supported a compromise with Senator Ted Cruz that would have shortened the moratorium to five years and carved out exceptions for areas like protecting artists and children online. But she later reversed course, arguing that without broader federal privacy and safety legislation, it would be wrong to tie the hands of states trying to do the right thing. Financial Times

• Paramount Settles with Trump for $16 Million Over ‘60 Minutes’ Interview

Paramount, the parent company of CBS, has agreed to a $16 million settlement with Donald Trump following a lawsuit over a “60 Minutes” interview aired in 2023 featuring then-vice presidential candidate Kamala Harris. Trump alleged the interview was deceptively edited to favor the Democratic Party, initially seeking $10 billion in damages, later increasing that figure to $20 billion. As part of the settlement, the money will go toward Trump’s future presidential library—not to him personally—and no apology or admission of wrongdoing was included.

The lawsuit, filed under the Texas Deceptive Trade Practices Act, claimed CBS’s editing misled viewers by airing two versions of Harris’s comments on the Israel-Hamas conflict. While CBS initially dismissed the case as baseless, the two sides eventually entered mediation in April. The settlement also includes a new policy: "60 Minutes" will release transcripts of future presidential candidate interviews after airing, with redactions allowed only for legal or national security reasons.

This case is one of several Trump has brought against major media outlets. ABC News, owned by Disney, recently settled a defamation suit with Trump for $15 million—also earmarked for his presidential library—and issued a rare public apology over inaccurate statements made by anchor George Stephanopoulos. Meta, the parent company of Facebook and Instagram, agreed to a $25 million settlement over Trump’s account suspensions following the January 6 Capitol riot.

These legal battles come as Trump continues to criticize mainstream media and suggests further lawsuits are coming. Most recently, he refiled a case against the Des Moines Register, accusing the paper of publishing misleading polling data during the campaign. As Paramount prepares for an $8.4 billion merger with Skydance Media, the settlement helps clear legal hurdles—but the broader fight between Trump and the press appears far from over. Reuters 

• Santander Makes Bold UK Move With $3.64 Billion Deal for TSB

Santander is doubling down on the UK. The Spanish banking giant announced on Tuesday that it has agreed to buy TSB—Sabadell’s British unit—for £2.65 billion ($3.64 billion) in cash, pending shareholder approval. The move not only strengthens Santander’s presence across the UK, but also gives it the seventh-largest branch network in the country and a leg up in personal banking, potentially making it the third-biggest player by current account balances.

For Sabadell, the decision to offload TSB is seen as a defensive tactic as it fends off a takeover attempt from rival Spanish lender BBVA. At the same time, the sale allows Sabadell to refocus on its home market in Spain. CEO César González-Bueno called the deal a “strategic opportunity” the bank couldn’t ignore, and plans to return a chunk of the proceeds—around €2.5 billion—as a special dividend to shareholders.

Santander sees upside too. The bank expects the acquisition to boost its UK return on tangible equity from 11% to 16% by 2028, with cost savings of at least £400 million and EPS gains starting from year one. Chair Ana Botín reassured analysts that this move reflects a long-term commitment to the UK, despite past speculation about a possible pullback. "This transaction expresses our confidence in our strategy, but also in the UK market," she said.

With final approval expected by early 2026, the deal marks another step in the ongoing consolidation of Britain’s banking sector. As smaller challengers struggle to gain ground, Santander is betting big on scale—and doubling down where it sees growth. Reuters

Minor Headlines   

• Cirsa’s $3 Billion IPO Opens in Spain, Available to Investors Through July 7. Reuters 

• UK’s Bytes Technology Shares Tumble 27% After Profit Warning. CityAM 

• AstraZeneca CEO Eyes New York Over London for IPO Listing. Reuters

• Alibaba Pledges $7 Billion in Subsidies to Stay Ahead in China’s Market. Reuters 

• Oil Prices Steady as OPEC+ Supply Expectations Keep Market in Check. Bloomberg 

• Uber Freight Hit With $9M Blow Linked to Del Monte’s $1B Bankruptcy. Finance.Yahoo

• Gold Prices Hold Firm Ahead of Key U.S. Jobs Report and Tax Vote. Finance.Yahoo

• Trump Launches New Fragrance Line — Yes, It Has His Name on It. Reuters

Gen Z word of the Day 

Cheugy

Something that is cheugy is not at all trendy.