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Top stories today:
1. Biden order bans U.S. semiconductors, quantum, AI investments in China
2. Novo Nordisk's profit margins expand to 36% as Ozempic sales grow 58%
3. Disney continues to lose money with DTC streaming
4. SEC appeals Ripple case on the matter of whether XRP sales were securities
5. Apple can keep its App Store practices for now
6. Claude Instant 1.2 launches, promising to be better at coding
7. CPI in July expected at 0.2% MoM / 3.3% YoY at 8:30 AM ET

0. Data and calendar

1. Biden executive order bans U.S. semiconductors, quantum, AI investments in China

• Semiconductors, quantum, and AI: “the term ‘covered national security technologies and products’ means sensitive technologies and products in the semiconductors and microelectronics, quantum information technologies, and artificial intelligence sectors that are critical for the military, intelligence, surveillance, or cyber-enabled capabilities of a country of concern.” - Reuters, executive order

• 2024+ implementation: The exact rules of this order are unclear, which should only contribute to the downfall of U.S. VC activity in China.

• China called it “blatant economic coercion.” - CNBC

  • China has a plan to counteract the U.S.'s aggressive industrial policy. - Bloomberg

U.S. VC investment in China has already dropped significantly, even before this order

AI investments in the U.S. also outpace those in China, and this order should only favor this advantage

2. Novo Nordisk's profit margins expand to 36% as Ozempic sales grow 58%

Their numbers are in DKK, so divide by 7 to get to USD:

Patients love these new weight loss drugs:

• $15.9B net sales in H1 2023, +29% YoY.

• $5.8B net profit, +43%.