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Europe’s Fed Problem
  + stars: | 2024-06-05 | by ( Andrew Ross Sorkin | Ravi Mattu | Bernhard Warner | ) www.nytimes.com   time to read: +1 min
Thursday is a big day for the European Central Bank. It is widely expected to lower interest rates by a quarter percentage point, its first cut since 2019 — and outpace the Fed in lowering borrowing costs. The big questions on our mind: Will Christine Lagarde, the central bank’s president, signal further cuts at its July and September meetings? The good news: Economists say the era of elevated rates around the world is coming to an end. But they add that sticky inflation will tie central bankers’ hands, limiting their ability to lower borrowing costs much.
Persons: Will Christine Lagarde, Holger Schmieding, DealBook Organizations: European Central Bank, Berenberg Bank Locations: Brussels
Betting on AckmanBill Ackman has gained new prominence in recent months for his outspoken presence on social media. But he has also made riches for his investors and himself — and now others are hoping he’ll continue to do so. His Pershing Square Capital Management has sold a 10 percent stake for just over $1 billion to an array of outside investors, giving the hedge fund a lofty valuation. The question is whether Ackman’s newfound fans on social media will follow him as he grows his empire, including through a new listed fund and, eventually, an I.P.O. That has bolstered Ackman’s paper worth to $8 billion, Bloomberg calculates, making him 333rd among the world’s wealthiest people.
Persons: Bill Ackman, , he’ll, BTG, Marc Lasry, Doug Hirsch Organizations: Pershing, Capital Management, Arch Capital, Iconiq Investment Management, Bloomberg
It was GameStop’s second major rally in as many months, seemingly prompted by social media buzz. Monday’s surge was driven by a screenshot uploaded to Reddit on Sunday by the account associated with Mr. Gill, after more than three years of inactivity. The market data provider Unusual Whales posted that there had been a spike in trading for those options. Adding fuel to the rally was a post to the X account associated with Mr. Gill that featured an image of a reverse card from Uno, the card game. Followers largely interpreted the picture — in line with the cryptic memes that punctuated Mr. Gill’s social media posts in 2021 — as a rallying cry to bolster GameStop’s stock price, which had fallen after a Roaring Kitty-inspired spike last month.
Persons: Keith Gill, Kitty, Gill, Organizations: GameStop, Uno
Born in Mexico City in 1962, she has two children and one grandchild. In 2018, she became the head of government of Mexico City, the first woman elected to this position. Current and former US officials have frequently described the relationship between President Joe Biden and Mexico’s President Andrés Manuel López Obrador as friendly and professional — and anticipate a productive relationship with Mexico’s next president. But Mexico’s election also comes at a critical time for the Biden administration. One of the considerations in rolling out a new border executive action was doing so after Mexico’s election.
Persons: Claudia Sheinbaum, Andrés Manuel López Obrador, Mitofsky, Sheinbaum, Jesús María Tarriba, López Obrador, Andres Manuel Lopez Obrador, Alfredo Estrella, López, Will Freeman, , ” Freeman, Freeman, Joe Biden, Donald Trump, Mexico’s, Biden, Organizations: CNN, Bank of, Environment, Federal, Mexico City, Getty, Defense, Council, Foreign Relations, Biden Locations: Mexico City, Morena, Bank of Mexico, Andrés, Tlalpan, Mexico, AFP, Sheinbaum
MicroStrategy and its founder settle tax case for $40 millionThe attorney general for the District of Columbia has reached a $40 million settlement with the billionaire Bitcoin investor Michael Saylor and MicroStrategy, the software company he founded, over tax fraud, DealBook’s Lauren Hirsch is first to report. Officials say the agreement is the biggest-ever income tax fraud recovery in the district. The lawsuit accused Saylor of evading more than $25 million in income taxes. The attorney general sued the tech executive and MicroStrategy in 2022, saying he enlisted the company’s help to file fraudulent tax forms from 2005 through 2020. The lawsuit said Saylor and the company claimed that he lived in Virginia or Florida, states with significantly lower income tax rates.
Persons: Michael Saylor, DealBook’s Lauren Hirsch, Saylor Organizations: District of Columbia Locations: It’s, Virginia, Florida
The chance to cook for a mystery guestChef Mauro Colagreco, seen here shaking Chinese leader Xi Jinping's hand, was one of three chefs invited to prepare the recent state dinner in France. In addition to the Plaisance restaurant in Hong Kong, his restaurant group now has five establishments in mainland China. Then, on the morning of the state dinner, the Mirazur team arrived to start preparing for the evening alongside the other chefs. Lai Sun DiningAt Colagreco’s Plaisance restaurant in Hong Kong, diners will get to sample all three of the dishes Xi and Macron were served during the recent state dinner. The cost of the three-course option starts from 1,888 Hong Kong dollars ($241), while the six-course menu is 2,888 Hong Kong dollars ($369).
Persons: Xi Jinping, he’s, Xi, Emmanuel Macron, Mauro Colagreco, Xi Jinping's, Laurent Blevennec, Colegreco, Colagreco, , , Fabrice Desvignes, Brigitte Macron, France’s, It’s, Mauro Colagreco's, Peng Liyuan, Pierre Gagnaire, Vin Jaune, verbena pavlova, Nina Métayer, Fromagerie Organizations: Hong Kong CNN, CNN, Michelin, Colagreco's, Colagreco’s, Hong Locations: Hong Kong, bao, Beijing, Europe, Paris, China, France, Plaisance, Menton, Elysee, Argentine, Mirazur, Asia, Shanghai, Cognac, Port, Madeira, Jura, refiner, Colagreco's Plaisance, Colagreco’s Plaisance
On the final day of Donald Trump’s hush money criminal trial — in which a jury found the former president guilty on all 34 counts of falsifying business records — Emily Ratajkowski was spotted wearing a not-so-subtle statement shirt. Ratajkowski wore her $95 Stormy Daniels T-shirt out in New York. Ratajkowski herself is no stranger to the art of sartorial support, wearing a conspicuous Rage Against the Machine T-shirt in 2020 featuring a young Bernie Sanders. Despite a lack of statement, Cate Blanchett's latest Cannes look was interpreted by many as a nod to the Palestinian flag. Similarly, Ratajkowski has spoken at length in her 2021 book “My Body” about her experience enduring several instances of sexual assault.
Persons: Donald Trump’s, Emily Ratajkowski, Stormy Daniels, Daniels, Robert Crumb, Katherine Hammett, Margaret Thatcher, Pershing, Hammett, Thatcher, ” Hammett, Ratajkowski, Bernie Sanders, Queen Elizabeth II —, Cate Blanchett’s Haider Ackermann, Blanchett, Ackermann, Cate Blanchett's, Daniel Cole, Guy Pearce, Netanyahu, ” Pearce, , I’ve Organizations: CNN, Trump, British, Guardian, EU, Cannes Film, Fair Locations: New York City, York, British, New York, Gotham, Palestine, Gaza, Cannes, Fair France
Instead, Wall Street and Silicon Valley money is flowing into his re-election campaign following the ruling. “This verdict will have less than zero impact on my support,” Omeed Malik, the president of 1789 Capital and a co-host of a Trump fund-raiser last night at the Pierre hotel, told Bloomberg. “I haven’t heard anybody who gives a …,” he told CNBC of the conviction, using an expletive. Some big Silicon Valley names are doubling down. One who did is Shaun Maguire, a partner at Sequoia Capital, who gave $300,000 to the Trump campaign after the ruling, even though he acknowledged the decision could cost him friends and hurt business.
Persons: Donald Trump, ” Omeed Malik, Andy Sabin, , Biden, Bill Ackman, Trump, David Sacks, Shaun Maguire Organizations: Republican, Pierre, Bloomberg, CNBC, Trump, Sequoia Capital Locations: Silicon, San Francisco
Trump and Musk’s growing courtshipFor much of President Biden’s time in the White House, his relations with Elon Musk have been tense. They may be about to plunge to a new low after Biden’s re-election campaign hit out at reports that Donald Trump could make Musk an adviser if the Republican were to win in November. The president’s campaign sees mileage in targeting Trump’s ties to moguls. Musk and Trump met in March at the billionaire investor’s Palm Beach, Fla., estate, where the advisory role discussions took place. Peltz and Musk have also briefed Trump on a plan to invest in a project to prevent the possibility of voter fraud.
Persons: Trump, Biden’s, Elon Musk, Donald Trump, ” James Singer, DealBook, he’s, Musk, David Sacks, Peter Thiel, Steven Mnuchin, Rupert Murdoch, Nelson Peltz, hasn’t, Don Lemon, “ Let’s, , Biden, Tesla Organizations: Elon, Republican, Wall Street, Trump, Los Locations: Los Angeles, Palm Beach, Fla
Another mega oil dealBullish predictions for $100 crude oil may not have come to fruition, but that hasn’t stopped the deal frenzy in the fossil fuel sector. The latest: The Houston-based company ConocoPhillips has agreed to acquire its smaller rival, Marathon Oil, in an all-stock deal that values the company at $22.5 billion, including debt. The news comes a day after Hess shareholders approved Chevron’s $53 billion takeover in a contentious vote. The oil majors have pulled off some of the biggest deals in the past year despite tough regulatory scrutiny from the Biden administration and volatility in the oil market. Still, the U.S. giants are sitting on record profits, giving them the firepower to acquire smaller drillers with operations in the oil-rich Permian Basin and in the Gulf of Mexico.
Persons: hasn’t, Hess, Biden Organizations: ConocoPhillips, Marathon Oil Locations: Houston, U.S, Gulf of Mexico
Shein, the online retail giant founded in China, had grand ambitions to go public in New York. The company is now focusing more on the London Stock Exchange for its initial public offering, according to two people with knowledge of the matter. That may not have been the company’s initial choice — but it would be a big win for Britain, which has been wary of its capital city losing its status as a global financial hub. A spokeswoman for Shein declined to comment; the British Treasury also declined to comment. like Shein’s could be seen as a prize that bolsters the local financial market and sets the stage for other companies to follow.
Persons: Jeremy Hunt, Shein Organizations: London Stock Exchange, Britain, British Treasury Locations: China, New York, Washington, Beijing, London, Hong Kong, Dubai, Singapore
Big Oil’s big climate showdownMonths of tensions between oil majors and activist investors could reach a boiling point at the annual meetings of Exxon Mobil and Chevron Wednesday, as the U.S. giants pump record levels of crude and sit on bumper profits. Activists’ efforts to pressure Big Oil to clean up its polluting ways are faltering. Last week, climate change protests rocked Shell’s annual meeting in London. Exxon could face an even fiercer battle this week — not only with the activist investors it is suing, but from powerful institutional investors as well. They include Norway’s huge sovereign wealth fund, and CalPERS, the California pension fund, both of which strongly oppose Exxon’s attempt to quiet some of its most vocal climate critics.
Persons: Vivienne Walt Organizations: Exxon Mobil, Chevron, DealBook, Exxon Locations: U.S, London, Dutch, Norway’s, California
CNN —France’s iconic Eiffel Tower is increasing its ticket prices by 20%, CNN’s affiliate BFMTV has reported, to help cover the costs of renovation work and financial losses during the coronavirus pandemic. An adult ticket including an elevator ride to the summit of the Parisian landmark will cost €35.30 ($38.31) from June 17 onwards, rising from €29.40 ($31.91), BFMTV reported. In both years, operating costs were around triple that of the the landmark’s overall turnover, SETE said. Renovation work is also behind the cost increase, including “lead prevention measures” related to the painting of the tower, BFMTV reported. The painting work is expected to last until 2027 while work is also planned on the elevators, which will lead to occasional closures.
Persons: BFMTV, Organizations: CNN, Eiffel Locations: SETE
Tim Cook has delivered at least seven commencement addresses since becoming the chief executive of Apple. The superstar Taylor Swift, whose concerts have been credited with lifting local economies, addressed New York University’s graduation ceremony in 2022. Bill Gates, Oprah Winfrey, Jamie Dimon — they’ve all given graduation speeches more than once. The appeal of being a commencement speaker, however, seems to be waning. Just three Fortune 50 chief executives appear to be commencement speakers this year, as colleges have faced campus protests over the war in Gaza, student arrests and wealthy alumni threatening to break ties with their alma maters over antisemitism.
Persons: Tim Cook, Taylor Swift, Bill Gates, Oprah Winfrey, Jamie Dimon —, They’re, , David Murray Organizations: Apple, Fortune, Professional Speechwriters Association Locations: New, Gaza
As a child in Bolivia, Mateo De La Rocha told his family he wanted to work as a garbage man when he grew up. In La Paz, his home city at the time, trash piles were everywhere. In Mr. De La Rocha’s eyes, the local sanitation worker was the only person cleaning up pollution. As many as 3.9 million abandoned and aging oil and gas wells dot the United States, according to the Environmental Protection Agency. estimates that abandoned wells collectively released 303,000 metric tons of methane in 2022, roughly equivalent to how much carbon dioxide 23 gas-burning power plants might release in one year.
Persons: Mateo De La Rocha, De, , De La Rocha Organizations: Paz, Environmental Protection Agency Locations: Bolivia, United States, Cary, N.C, Ohio
: That college sports association just agreed to a $2.8 billion class-action settlement that, if approved by a judge in California, would pay student athletes after a century of deeming them amateurs. and its member institutions allowing athletes to make money from sports programs that have made millions for their schools. Starting in the fall of 2025, schools could have about $20 million a year to pay their student athletes. payments, giving student athletes a big stream of revenue. And in March, the Dartmouth men’s basketball team voted to unionize, adding potentially more pressure on universities to pay athletes.
Persons: It’s Organizations: Dartmouth men’s Locations: California, Southeastern, Atlantic Coast ,
The Haley rationale for backing TrumpAfter months of speculation, Nikki Haley said — in her first appearance since dropping out of the Republican presidential primary — that she would vote for Donald Trump, the man against whom she waged a sometimes scathing campaign. But it may provide cover to prominent donors like Ken Griffin who in recent weeks has suggested that he might come in from the cold and donate to Trump. Deep-pocketed Republicans flocked to Haley during the primary. “I think she is just what we need right now,” Langone said on Fox News. “What Trump put this country through the last three months of his presidency was disgraceful.”But donors are rethinking their aversion to Trump, who handily beat Haley and other rivals and is now leading President Biden in some polls.
Persons: Haley, Nikki Haley, , Donald Trump, Ken Griffin, Griffin, Paul Singer, Henry Kravis, Barry Sternlicht, Cliff Asness, Stanley Druckenmiller, Ken Langone, Reid Hoffman, wasn’t Trump, Nikki, ” Sternlicht, ” Langone, Trump, Biden, White, Israel Organizations: Trump, Republican, PAC, Elliott Management, KKR, Starwood Capital, AQR Capital Management, Democratic, LinkedIn, Times, Fox News Locations: Gaza
Testing the Nvidia Boom
  + stars: | 2024-05-22 | by ( Andrew Ross Sorkin | Ravi Mattu | Bernhard Warner | ) www.nytimes.com   time to read: 1 min
All eyes on NvidiaDespite concerns about stubbornly high inflation, elevated interest rates and ballooning U.S. debt, the S&P 500 is trading at a record on Wednesday, having soared 27 percent over the past year. Among the factors driving the rally, few are bigger than the boom in stocks tied to artificial intelligence — and the biggest of all of those is Nvidia. Investors have high hopes for Nvidia’s earnings on Wednesday. Expect a torrent of trading when the chip maker reports results for its fiscal first quarter after market close. A year ago, Nvidia’s stock jumped more than 24 percent after it posted knockout earnings.
Organizations: Nvidia, Investors
Read previewCynthia Franco is no stranger to anti-aging skincare concerns. Taking sun protection seriouslyPrior to learning more about anti-aging, Franco said she didn't think too much about sun protection. A quality vitamin C serum goes a long wayFranco said the third step in the "line of defense" against premature signs of aging is a vitamin C product. Invest in extras like retinol and peptidesFranco said the first three steps are "non-negotiable" staples of any good anti-aging skincare routine. She also called peptides the "crème de la crème" of anti-aging skincare products, especially if you start using them after your 30s.
Persons: , Cynthia Franco, Barry Keoghan, Queen Latifah, Franco, I, Retinol Organizations: Service, Business
OpenAI’s Scarlett Johansson problemWhen OpenAI unveiled the latest version of ChatGPT last week, a chatbot that can listen to spoken questions and respond verbally, many users had one question: Is that Scarlett Johansson? It’s another sign of eroding trust in OpenAI, which has taken fire from creative industries and former employees. In her statement, Johansson shed more light on the matter:Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system. Altman tried again two days before the ChatGPT product announcement, she added, but released the service before they could connect. Johansson — no stranger to waging war against big companies — suggested that she was ready to take legal action.
Persons: OpenAI’s Scarlett Johansson, OpenAI, Scarlett Johansson, , OpenAI —, ” Johansson, Sam Altman, Mira Murati, Johansson, Altman, Johansson —, Locations: OpenAI
A Safety Check for OpenAI
  + stars: | 2024-05-20 | by ( Andrew Ross Sorkin | Ravi Mattu | Bernhard Warner | ) www.nytimes.com   time to read: +1 min
OpenAI’s fear factorThe tech world’s collective eyebrows rose last week when Ilya Sutskever, the OpenAI co-founder who briefly led a rebellion against Sam Altman, resigned as chief scientist. “Safety culture and processes have taken a backseat to shiny products,” Jan Leike, who resigned from OpenAI last week, wrote on the social network X. Along with Sutskever, Leike oversaw the company’s so-called superalignment team, which was tasked with making sure products didn’t become a threat to humanity. Sutskever said in his departing note that he was confident OpenAI would build artificial general intelligence — A.I. Leike spoke for many safety-first OpenAI employees, according to Vox.
Persons: Ilya Sutskever, Sam Altman, hadn’t, ” Jan Leike, Sutskever, Leike, , Vox, Daniel Kokotajlo, Altman Organizations: OpenAI, C.E.O
That was the promise of Cerner, the medical-records company Oracle bought in 2021 for $28.3 billion — Oracle's biggest acquisition. At the time, Cerner managed the electronic health records for a quarter of all American hospitals, including those run by the Pentagon and the Department of Veterans Affairs. Larry EllisonCerner's electronic records, in short, were a deadly disaster for the VA. Never mind the futuristic, AI-driven healthcare system Ellison envisioned. In 2015, it beat out Epic, its main competitor, for a $4.3 billion contract to handle electronic health records for the Defense Department. It had agreed to process tens of millions of crucial medical records, but it couldn't handle the subsequent deluge of data.
Persons: Larry Ellison's, Ellison, Cerner, I'm, Larry Ellison, Neal Patterson, Cerner's, Patterson, Ellison's, they're, David Shulkin, Margaret Albaugh, Cerner couldn't, Charlie Bourg, , Larry, Marc Benioff, Ellison protégé, Mike Wilson, David Agus, oncologist, Agus, he'd, Steve Jobs, Sensei, We've, Georges De Keerle, Cerner —, hadn't, Mike Sicilia, Sicilia, Oracle, Anthony Jones Jr, Jones, Donald Remy, didn't, Seema Verma, Neil Evans, Sara Vaezy, Ed Meagher, haven't, Charlie Monroe —, it's, Charlie Bourg —, Bourg, Charlie Monroe, Monroe, Cathy McMorris Rodgers, grandkids, We're, there's Organizations: Oracle's, Oracle, Pentagon, Department of Veterans Affairs, Cerner, RAND Corporation, RAND, Big Tech, GE, Siemens, Cerner Corporation, Defense Department, Department of Defense, Business, Spokane, Ellison Institute of Technology, Microsoft, Agency, Health, Amazon, Veterans ' Affairs, Oracle Health, Navy, Columbus VA, BI, Life Sciences, Intermountain Health, UPMC, DOD, Seabees Locations: Las Vegas, antiaging, Silicon Valley, Spokane , Washington, Cerner, VistA, Bourg, Washington, Sicilia, Ohio, Columbus, Providence, Spokane, Monroe, CloudWorld
CNN —American citizens were involved in an attempted coup d’état that left at least three people dead on Sunday in the Democratic Republic of Congo, a military spokesperson told CNN Monday. Malanga was killed in a gun battle between the armed putschists and the presidential guards, Ekenge said. Videos widely shared on social media, but not verified by CNN, showed a man with a bloody face being surrounded by Congolese military personnel. Sunday’s incident was the second coup attempt by the now deceased Malanga, a former Congolese military veteran, Ekenge told CNN. The African Union condemned Sunday’s coup attempt in the DRC and welcomed the “control of the situation” by the country’s security forces.
Persons: d’état, Vital Kamerhe, Christian Malanga, General Sylvain Ekenge, Malanga, Ekenge, , ” Ekenge, Marcel, Benjamin Reuben Zalman, Polun, Patrick Ducey, Taylor Thomson, “ Patrick Ducey, Lucy Tamlyn, , Felix Tshisekedi, Kamerhe’s, Sunday’s Organizations: CNN, Democratic, Palais, Nation, Congolese, United Congolese Party, Reuters, World Bank, Central, African Union Locations: Democratic Republic of Congo, DRC, Congolese, Kinshasa, Africa, Gabon
Opinion: Why Julian Assange’s fate matters
  + stars: | 2024-05-19 | by ( Opinion Alan Rusbridger | ) edition.cnn.com   time to read: +7 min
A determined American journalist, let’s call her Gillian, is sleuthing away at a story about India’s nuclear weapons program. Though Gillian is based in London, when she finally gets to publish her story, the Indian government is bent on revenge. Is Washington going to stand idly by and meekly accept the possibility of an American journalist languishing in an Indian jail? The clue is in the inverted commas around “journalist.” To my mind, Julian Assange is in some ways recognizably a journalist. However, to many journalists Assange is not a proper “journalist,” and they can’t really see what his fate has to do with theirs.
Persons: Alan Rusbridger, Read, let’s, Gillian, Alan Rusbridger Simone Padovani, meekly, Julian, He’s, , , there’s, Julian Assange, Assange, Stephanie Lecocq, Hillary Clinton, Clinton, El País, Der Spiegel —, Chelsea Manning, Sarah Ellison, ” Clinton, Manning, Barack Obama’s, Iraq —, , It’s, John Podesta, Richard Nixon, Daniel Ellsberg —, Edward Snowden, Daniel Ellsberg, Wally Fong, Anthony Albanese, Joe Biden Organizations: Prospect Magazine, CNN, Guardian, WikiLeaks, Court, la Republique, Reuters, New York Times, US Army, Apache, US, Washington Post, The New York Times, Pentagon, Australian Locations: American, London, Delhi, Washington, la, Paris, Kenya, Iran, El, Le, Afghanistan, Iraq, Vietnam, Los Angeles
AdvertisementFlying nonstop from LA to Paris on Air France was a breezeI flew from LA to Paris on Thursday, May 9, and only had to take two days off work — not bad for a trip to Europe. Free wine on Air France with dinner and "Lord of the Rings" made the flight to Paris easy. AdvertisementParis was full of Taylor Swift fansThe scaffolding in the forefront of the photos is part of the Olympics set up. We took an Uber to La Defense Arena, located northwest of the city center and about 15 minutes from our hotel. When the countdown appeared on the screen for Swift, we went to our actual seats, which were right outside the lounge, stage left.
Persons: , Taylor Swift, Rascal Flatts, Kelsey Vlamis, Swift, Taylor, she's Organizations: Service, Business, Air France, Air, LAX, La Defense, Eiffel, Poets Department, Sunday Locations: Los Angeles, Paris, LA, Europe, Air France, sparkles, France
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