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⚖️ 29 States Sue Meta Over Children's Mental Health

A landmark trial against Meta Platforms opened Tuesday in California, with a bipartisan coalition of 29 U.S. states accusing the company of intentionally addicting children to Facebook and Instagram.

California's lead attorney told the court "kids are the product," alleging Meta designed its platforms to maximize youth engagement while knowingly disregarding harm to minors. The states are seeking penalties potentially reaching tens or hundreds of billions of dollars, along with structural changes to how Meta operates its platforms.

The case draws on a 2021 whistleblower's claims that Meta prioritized profit over user safety and children's wellbeing. The four lead states — California, Colorado, Kentucky and New Jersey — argue Meta's product design decisions were deliberate. The outcome could force sweeping changes to two of the world's most widely used social media platforms.

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🇨🇳 Swalwell Admits Sexual Relations With Suspected Chinese Spy

Newly declassified documents show former Rep. Eric Swalwell told FBI investigators in 2015 that he had a physical relationship with Christine Fang, a woman suspected of being a Chinese spy.

The documents were released by the White House Transparency Task Force. Swalwell, a California Democrat, left Congress in April. Fang had previously been reported as a suspected Chinese intelligence operative who cultivated ties with U.S. politicians.

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🇮🇷 Iran: Hormuz Stays Shut Until U.S. Meets Deal Terms

Iran will keep the Strait of Hormuz closed until the United States fulfills conditions set under an interim deal signed in June, the country's top negotiator Mohammad Baqer Qalibaf said Tuesday in remarks to parliament published by state media.

Qalibaf listed four conditions: the U.S. must lift its blockade of Iranian ports, remove oil sanctions, release Tehran's frozen assets, and end military operations and threats on all fronts.

The Strait of Hormuz is one of the world's most critical oil transit chokepoints, and its continued closure carries significant implications for global energy markets and U.S. foreign policy in the region.

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🪖 U.S. Awards Raytheon $22.9B Deal To Surge Tomahawk Output

The Pentagon has awarded RTX's Raytheon a $22.9 billion, seven-year contract to dramatically increase Tomahawk cruise missile production, after U.S. forces burned through more than 1,000 of the weapons during ongoing strikes against Iran.

Annual production will rise from roughly 600 units to more than 1,000 missiles per year. Acting Navy Secretary Hung Cao called the deal a "landmark" contract that will "accelerate Tomahawk missile delivery to our warfighters at unprecedented speed." Raytheon said it has already delivered three times as many missiles in the first half of 2026 as in the same period last year. A single Tomahawk costs up to $3.5 million.

U.S. officials have warned it will take years to replenish depleted munitions stocks. Military planners also view precision weapons like the Tomahawk as critical assets for any potential conflict with China.

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⚡ Iran Rejects Interim Deal Extension, Strait of Hormuz at Risk

Iran has ruled out extending its interim nuclear agreement with the United States, threatening to escalate the conflict as the 60-day negotiating window nears its close.

The interim deal had kept the Strait of Hormuz open while both sides worked toward a final agreement on Tehran's nuclear program. Iran's rejection of any extension pushed oil prices higher on global markets.

The Strait of Hormuz is one of the world's most critical oil transit chokepoints, carrying roughly 20% of global petroleum supplies — making any threat to its status a direct concern for U.S. energy markets and foreign policy.

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📊 Goldman: Inflation Drives Fed, Not Jobs

Goldman Sachs says inflation — not the labor market — remains the dominant factor in the Fed's policy decisions, with softer employment data viewed as largely irrelevant to the rate path.

Core CPI came in roughly in line at 21.5 basis points, while cooler-than-expected PPI data helped push the S&P 500 to a record closing high. September Fed meeting pricing eased slightly to around nine basis points after the CPI release. Goldman says market pricing for Fed Funds remains too high relative to its own outlook.

The bank estimates AI-related corporate debt issuance at $250 billion this year and up to $400 billion next year, compounding structural upward pressure on long-end yields alongside heavy Treasury supply. The 10-year auction — the highest-yielding since 2007 — was well absorbed. Goldman's preferred trade is a yield curve steepener, with the largest payoff reserved for a recession scenario the bank does not view as its base case.

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💼 Amazon Updates Terms to Block Class-Action Lawsuits

Amazon emailed customers Friday announcing a terms-of-service update requiring disputes to be resolved through arbitration, including a class-action waiver.

The change means most customers cannot seek a judge or jury in disputes with the company. Amazon described arbitration as a "fast and efficient" resolution method. Customers retain the right to use small claims court in limited cases, though payouts there are typically capped at a few thousand dollars.

The move effectively shields Amazon from large-scale coordinated legal challenges by routing complaints into individual arbitration proceedings.

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