🐤 The AMLO factor

⚠️ Bridge disaster: Tragedy struck Baltimore, Maryland, early Tuesday when a container ship struck the Francis Scott Key Bridge, sending it crashing into the water below and sparking a search for bodies and potential survivors. Gov. Wes Moore issued a statement after declaring a state of emergency, declaring that Maryland was “in shock” over the news. The latest updates indicate it doesn’t appear the crash was an intentional attack. At least five vehicles fell from the bridge and at least six victims were said to be missing as of last night.

💳 It’s settled: Retailers nationwide took the two biggest credit card companies to court over claims that they had conspired to keep merchant “swipe fees” high. This week, Visa, Mastercard, and their respective issuing banks, reached a settlement that means they will reduce fees charged for every transaction, which can sometimes be as high as 4% of the purchase price. Details of the deal were confirmed on Tuesday and indicated that the two companies will reduce fees by a combined $30 billion over the next five years.

😷 Island outbreak: Health officials in Puerto Rico issued an advisory this week regarding a troubling increase in cases of dengue across the U.S. territory. The epidemic has recorded at least 549 cases so far this year, nearly half as many as the island saw throughout all of 2023. Most of the cases have been concentrated in the capital city of San Juan and more than 340 patients have required hospitalization after contracting the disease, which is spread by mosquitoes. It’s been a dozen years since Puerto Rico last declared a dengue epidemic.

⚽ Soccer deal: Referees have reached an agreement with Major League Soccer to resume their duties after a weeks-long stalemate. According to a deal announced on Tuesday, both sides agreed to terms that will remain in place throughout the rest of this decade, making it the longest labor bargaining contract in the league’s history. MLS executive Nelson Rodriguez touted the achievement, thanking “players, coaches and clubs for their professionalism, and our fans for their support throughout the opening month of the season.”

🏦 Markets: All three major indexes chalked up some gains throughout the day on Tuesday following Monday’s sell-off, but prices retreated by the closing bell and the averages ended up slightly lower than where they started.

Nevertheless, there were some winners, including Tesla, Krispy Kreme, and Trump Media & Technology Group, the acquisition company that recently merged with Truth Social.

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Voters across the political spectrum are laser-focused on a few key issues ahead of November’s election — and polls show that immigration is either at or near the top of the list.

Given Mexico’s inextricable role in the ongoing border crisis, analysts say the president of that country is in a unique position to play an outsized role in the outcome of America’s presidential race.

The ball is in his court

Both incumbent President Joe Biden and presumptive GOP nominee Donald Trump have paid a lot of lip service to the issue of immigration. The former has endorsed a policy of diplomacy with America’s southern neighbor while the latter is advocating for a more hard-line approach to illegal immigration.

But regardless of which strategy is being pursued, much of the power remains in the hands of Mexican President Andres Manuel Lopez Obrador, aka AMLO.

That influence was on display late last year when Biden worked to put together a delegation of officials to visit Mexico City, ultimately securing increased enforcement from the southern side of the border and a significant drop in illegal crossings as 2024 got underway.

But AMLO could just as easily scale back enforcement on the Mexican side, essentially opening up the border for a new influx of migrants.

What it all means

Whether Biden or Trump wins in November, they will need the support of their Mexican counterpart to establish any real progress on the border. During a recent “60 Minutes” interview, AMLO denied he would utilize his leverage against the U.S., citing the “very important” relationship between the two countries.

But his ability to decrease or increase the flow of migrants into the U.S. nevertheless has the ability to shape public sentiment on a pivotal issue with just over seven months until Election Day.

Tesla has been on the receiving end of some not-so-positive reports about its so-called Autopilot mode in recent years. But the company says it has an answer to those concerned about shortcomings of the previous platform.

The first month’s free

In promoting “Full Self-Driving Beta,” the company’s latest driver assistance software, current owners are being offered a free one-month trial. Anyone who purchases a new Tesla model will be provided with a software demo.

While Autopilot is a standard feature in all Teslas, the FSD Beta program has been billed as a significant improvement. And it should be, given its $12,000 price tag.

Some cynics believe rolling out the trial period now could be an effort to boost sales just before the first quarter of the year ends and Tesla is striving to beat its sales projections. Of course, it could also be as simple as the company hoping to move past the controversies involving Autopilot.

The family of Walter Huang, who was reportedly relying on the feature to drive for him when he was killed in a crash, is suing Tesla — and that civil trial is expected to get underway in a few short weeks.

An overview of FSD Beta

Even though the software isn’t new (it sold for $15,000 several years ago), a relatively low number of Tesla owners have purchased it. The latest version, called “V12,” is now available, and the company insists it’s better — and safer — than ever.

It boasts more video data that can then be interpreted by the broader system in order to make crucial decisions in individual cars. But as FSD gets better, there’s even more concern about drivers who might put too much trust in the software and possibly put their lives or the lives of others at risk.

TikTok is a thorny issue … not just on Capitol Hill but on Wall Street. The popular social media platform’s close ties with China have sparked efforts by U.S. lawmakers to either force its parent company, ByteDance, to sell it or trigger a nationwide ban.

A complicated investment

Few startup companies anywhere on the planet have seen gains on pace with ByteDance, which is currently worth an estimated $225 billion. And a slew of American investors identified the trend early on, opting to put money into the company where it has continued to grow.

But now that the Chinese company has come under intense scrutiny by U.S. lawmakers and regulators, there’s a nagging uncertainty regarding how (or even if) these investors will ever be able to collect the financial gains that right now are little more than numbers on a spreadsheet.

Since ByteDance is a privately held company, there’s no option for investors to simply sell their shares as they could if it was a publicly traded entity. Considering the questions surrounding the company’s future, U.S. investors could soon be in a lose-lose situation.

Billions on the line

Former National Security Council Director for China Matt Turpin said firms with a stake in ByteDance have essentially “stranded” their assets by making “an investment in something that’s going to be very difficult to make liquid.”

The list includes some heavy-hitters, including:

• Private equity firm General Atlantic invested in 2017 and its CEO sits on ByteDance’s board.
• Global trading firm Susquehanna owns about 15% of the company.
• Others include private equity firm the Carlyle Group and hedge fund Coatue Management.

Investment banker Jonathan Rouner compared the current shift away from China to the abandonment of Russian assets after the Ukraine invasion, which cost investors more than $100 billion.