Good Morning. This is the Investor Lookout with the daily digest to make you a smarter investor. (Keep an eye on the Lookout Watch to see how we’re doing!)

Here’s what we got today:

• 🤖 US Forces TSMC to Cut Off China's AI Chip Supply

• 🚗 Is California's EV Mandate a Pipe Dream? That’s What Toyota Says

US Forces TSMC to Cut Off China's AI Chip Supply

Looks like China's chip dreams just got semiconduct-off. The U.S. government ordered Taiwan Semiconductor Manufacturing ($TSM) to stop sending chips to China effective on Monday. The ban affects semiconductors with 7nm or more advanced technology, usually used in AI applications and GPUs. The order comes after TSMC's chip has been found in a Huawei AI processor, violating existing export bans. The Taiwanese company already stopped shipments to China-based chip designer Sophgo after it confirmed the similarity of Sophgo chips with the one found from Huawei.

• TSMC will halt shipments to affected clients starting Monday

• Taiwan's economy ministry reiterated that TSMC will comply with domestic and international regulations

Is California's EV Mandate a Pipe Dream? That’s What Toyota Says

Toyota's suggesting California should switch to hybrid mode on their expectations. Toyota ($TM) says California's ambitious EV mandate for 35% zero-emission vehicle sales starting from 2026 models is not achievable. The California Air Resources Board (CARB) "Advanced Clean Cars II" standards were approved in 2022 and state that by 2035, all car sales should be zero-emission vehicles (ZEV). The 2026-2035 CARB rules were adopted by 12 states and Washington D.C., but half will put it into effect starting with 2027. According to J.D Power, the nationwide average adoption rate of EVs is 9%, with California having the most at 27%.

• Toyota argues consumer demand is not enough to meet CARB standards

• The EV pushback is happening in Europe as well, with Italy and Czech Republic asking the EU to revise its 2035 ban on ICE vehicles

Markets

China's latest stimulus falls short of expectations. The National People's Congress approved the bills to allocate 10 trillion yuan ($1.40 trillion) to local governments to address debt. The markets expected more after Trump won the U.S. presidential election and incoming tariffs loom. [Read]

Taiwan Oct exports miss expectations as China weighs. Taiwan's exports rose less than expected in October as the fast-growing AI industry gains were offset by its biggest partner's slowing economy, China. [Read]

Japan's political kingmaker says Trump policies may weaken yen. Japan's opposition leader Yuichiro Tamaki warns that Trump's return could further weaken the yen's value against the U.S. dollar. [Read]

Business

FTX Sues Scaramucci to Recoup Money Poured in Showy Investments. FTX filed a suit against Anthony Scaramucci and SkyBridge Capital, seeking to recover $67 million invested during Bankman-Fried's "campaign of influence-buying throughout the year" in 2022. [Read]

Why Ralph Lauren, the all-American luxury brand, is a hit in China. The iconic American brand reported a 10% increase in global same-store sales, with Asia leading at 11% growth. The success comes as other luxury giants like LVMH ($MC) and Kering ($KER) face declining sales in the region. [Read]

Chinese GaN power chipmaker Innoscience found to have infringed US rival's patent. The US International Trade Commission ruled that the Chinese GaN power chip manufacturer infringed on rival EPC's patent, potentially jeopardizing their Hong Kong IPO plans. [Read]

What’s next for nuclear stocks after regulatory pushback? Yahoo Finance

Elon Musk backs call to ‘#EndTheFed’ after Jerome Powell says he won’t resign. Fortune

Trump’s presidency carries plenty of market risk, experts warn. Yahoo Finance

How China's chip industry plans to deal with Trump. Reuters

Here's how far we are from AGI, according to the people developing it. BI

Inflation worries seep back into US bond market. FT

After Trump, German political crisis engulfs industry. Reuters

China consumer prices rise at slowest pace in 4 months, despite stimulus. Reuters

SMIC sees prolonged chip glut, signals cautious expansion outlook. Reuters

Barrick Falls Behind Rivals as No. 2 Miner Misses Boost From Bullion Boom. Bloomberg

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.