By Emma Tucker

China loosened its grip on critical rare-earth minerals but is still limiting the flow to Western defense manufacturers, delaying production and forcing companies to scour the world for the minerals needed to make everything from bullets to jet fighters. We also drop in on Disney and its high-stakes challenge to incorporate artificial intelligence into filmmaking while protecting its famed characters against the technology. And it's the time of year when nature lovers flock to British Columbia's rainforest for a chance to spot an elusive -- and vanishing -- ghostly creature: the so-called spirit bear.

Today's Headlines

American shoppers, wary about inflation, job expectations and their personal finances, are getting thrifty again.

President Trump wants his allies placed in the Bureau of Labor Statistics, chief White House economic adviser Kevin Hassett said.

Texas Gov. Greg Abbott threatened to remove state House Democrats from office -- or charge them with felonies -- after dozens of members fled the state to thwart Republican plans to redraw the state's congressional map.

Russia is selling redeveloped parts of occupied Ukraine to Russians.

Live From The Markets

Follow our live financial and tariffs coverage all day.

Big stock awards have swelled in value for the CEOs of Palantir and Broadcom, the latest company leaders to see their pay keep growing -- by the billions.

Read It Here First

China is choking off critical-minerals supplies to Western defense companies.

While Beijing allowed rare-earth minerals to start flowing after the Trump administration agreed to a series of trade concessions in June, it has maintained a lock on critical minerals for defense purposes. One drone-parts manufacturer that supplies the U.S. military was forced to delay orders by up to two months while it searched for a non-Chinese source of magnets, which are assembled from rare earths, Jon Emont, Heather Somerville and Alistair MacDonald report. The squeeze on critical minerals highlights how dependent the U.S. military is on China for much of its supply chain -- giving Beijing leverage at a time of rising tensions.

Is it still Disney magic if it's AI?

When Disney began working on a live-action version of its hit cartoon "Moana," executives pondered whether they should use AI to make a "digital double" of its star, Dwayne Johnson. Johnson approved the plan, but the use of a new technology had Disney attorneys hammering out details over how it could be deployed. Despite 18 months of on-and-off negotiations, none of the AI footage will be in the final film, Jessica Toonkel and Erich Schwartzel report. Like other Hollywood studios, Disney is scrambling to figure out simultaneously how to use AI and how to protect against it. No studio stands to gain or lose more in the outcome than the home of Donald Duck, Belle, Buzz Lightyear and countless other creative works.

Expert Take

Q: Why is Delta Air Lines getting blowback over its AI pricing?

Delta has been working with startup Fetcherr to use AI to set airfares. Now it is trying to calm a firestorm of objections from lawmakers and consumer advocates who fear airlines could use AI to reach into customers' personal information to jack up fares. Delta says that isn't what the technology is designed to do, Alison Sider reports.

A: For many consumers, how airlines set fares is a black box -- and that is before talking about AI.

Airlines have used dynamic pricing for decades, often setting hundreds of different potential fares for each individual route. Which price you are offered depends on factors including how far in advance you book, how many seats are left and whether you have a connecting flight. Carriers also analyze everything from competitors' prices and school-year start dates to events like Taylor Swift's concert tour dates.

But what if, for example, an airline could guess a customer was traveling home for a funeral? That's the concern being raised over Delta's use of AI pricing. Delta said that isn't what it is doing.

"There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized offers based on personal information or otherwise," the airline told lawmakers in a Friday letter. It said it doesn't share personal customer information with Fetcherr.

The company's technology helps to predict demand for a given flight and respond when it shifts. It uses external data and information provided by airlines, such as generalized, anonymous booking and shopping data.

In Delta's statement Friday, it said humans fine-tune the recommendations that Fetcherr's system makes.

See The Story

Haribo's focus on gummies. Here's why their single-product strategy works.

Haribo built a global candy empire mostly on gummies, using local factories and regional flavors to grow from a family business into one of the largest gummy-candy makers in the world.

Happening Today

The Commerce Department reports June factory orders, shipments and inventories at 10 a.m. ET.

Earnings: Palantir Technologies, ON Semiconductor, Tyson Foods

Number Of The Day

$148 billion

The estimated one-year cash savings that three provisions from this summer's federal tax legislation will deliver for a sample that covered 369 of the companies in the S&P 500, according to Zion Research Group. That is equivalent to 8.5% of the companies' combined full-year estimates for free cash flow as of June 30, right before Congress passed the tax law, using estimates compiled by S&P Global Market Intelligence. Changes like allowing upfront depreciation of assets and immediate expensing of research-and-development costs will bring swift windfalls to American corporations but also lasting tailwinds.

And Finally. . .

This vanishing bear still draws a crowd to Canada.

The so-called spirit bears are black bears with a rare genetic mutation that gives them a creamy white coat. The creatures, unique to British Columbia, appear on posters and souvenirs throughout the province. One small problem: The real thing rarely shows up.

(END) Dow Jones Newswires

August 04, 2025 06:35 ET (10:35 GMT)

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