Good morning investors!
Today we cover:
Trump Accounts to auto-enroll
McDonald’s go heavy on AI!
Wasting home equity?
📊 Economy and News
Trump Accounts to Auto-Enroll Millions of Kids Starting Oct. 1
The U.S. Treasury Department issued temporary regulations that will begin automatically enrolling children in Trump Accounts as early as October 1. Officials estimate the change could add more than 60 million new accounts in 2026 alone, with roughly 2 million more each year after that.
Currently, only 7–8 million children are enrolled. Families have had to opt in by filing IRS Form 4547 or signing up at TrumpAccounts.gov, resulting in low participation—especially among lower-income households. Only about 5% of families earning up to $80,000 have opened an account.
Trump Accounts are tax-deferred investment vehicles. Eligible children born between 2025 and 2028 can receive a one-time $1,000 deposit from the Treasury, plus possible additional funds for qualifying families. The Social Security Administration is expected to enroll newborns at hospitals when parents request a Social Security number.
Treasury Secretary Scott Bessent has said the shift to auto-enrollment could push total accounts near 70 million within a month. Policy experts note it should reach most families but warn that ongoing outreach will still be needed to keep parents engaged with the accounts.
Global hits:
Argentina posts $2.21 billion current account surplus for second quarter.
Wells Fargo raises oil price targets citing ongoing supply risks.
Brazil loan defaults reach record high in August – standing at 6.6%.
China unveils rate cut, mortgage subsidies to spur growth.
Canada’s economic growth unchanged in July, August likely to expand 0.2%.
Reminder: Consumer optimism slides to lowest since 2014 as fears escalate over rising prices and jobs. Elsewhere, IPO delays have accelerated in 2026.
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📈 Stocks
S&P 500 7,670.84 (-0.17%)
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* Prices as of Sep 30th, 12:20 AM UTC
McDonald’s AI Pricing Engine Quietly Sets Different Big Mac Prices Store by Store
McDonald’s is expanding its use of artificial intelligence to recommend menu prices across nearly 14,000 U.S. restaurants and some international markets. The system analyzes millions of daily transactions with machine-learning algorithms to produce what the company calls the “optimal price” for each item at each location, factoring in local customer willingness to pay and competitors’ prices.
The result has been wider price gaps for the same items—even between stores just a couple of miles apart. A Reuters check found one company-owned Fresno, California, location selling a Big Mac for $5.69 while another nearby charged $6.89. Franchisees report the engine has recommended both sharp increases (including a controversial ~$18 Big Mac meal suggestion in one 2023 case) and, more recently, more restrained pricing.
McDonald’s insists the tool is only a recommendation and that franchisees remain free to set their own prices. Yet internal documents and interviews with multiple owners show the company tracks “pricing non-compliance,” has made constructive engagement with the tools part of new business standards, and pressures operators who deviate. Corporate benefits from higher overall sales volume (it earns a cut of revenue), while franchisees often prefer higher prices to cover rising costs.
The approach carries risks. Customers may resent localized or dynamic pricing, and the company itself warns franchisees that using the shared portal could raise antitrust issues because the operators can be viewed as competitors. Other chains have faced public backlash over similar experiments. McDonald’s calls the reporting speculative and says the system simply helps owners deliver value in distinct local markets.
What do you think of McDonald's dynamic pricing approach?
Surprising: Disney laying off around 300 employees in latest cuts under new CEO Josh D’Amaro. In other news, Microsoft shares might be rangebound. Lastly, Alaska Airlines unveils massive premium cabin overhaul in high-end travel race.
💵 Personal Finance
Homeowners Are Wasting $11.5 Trillion in Tappable Equity
U.S. homeowners sit on more housing wealth than ever. In the second quarter, they held a collective $11.5 trillion in “tappable” equity—the amount they could borrow while still leaving enough value for lenders—according to Cotality. Total equity among borrowers with mortgages reached $17.9 trillion, or about $310,000 per homeowner on average.
Yet almost none of it is being used. Second mortgages and home equity lines of credit (HELOCs) rose nearly 20% from the first quarter, but still accounted for less than 0.1% of available tappable equity.
The main reasons: Many owners locked in very low primary mortgage rates during the pandemic and have strong cash flow, so they feel little need to borrow more. Taking a second loan or HELOC means paying today’s higher rates. Economic uncertainty also makes people cautious. As Cotality economist Thom Malone noted, those with the most equity are often the least likely to tap it.
How the equity can be used
Homeowners can access it mainly through:
HELOCs — revolving credit lines secured by the home, often used for renovations, education, or other large expenses.
Home equity loans (second mortgages) — fixed lump-sum loans.
Cash-out refinances — replacing the existing mortgage with a larger one and taking the difference in cash (less attractive now because new rates are much higher).
Equity is highest in high-priced markets such as Hawaii and California (averages above $600,000) and Massachusetts (above $400,000). It is far lower in states like Louisiana, Oklahoma, and Iowa (just over $100,000). A small share of markets are seeing values fall and equity shrink, but only 2.1% of borrowers are underwater.
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