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Why Elon Musk went to ChinaJust days after Secretary of State Antony Blinken traveled to Beijing and warned China about unfair trade practices, Elon Musk landed in the Chinese capital. 2 official may have paid off: Musk reportedly cleared two obstacles to introducing a fully autonomous driving system in the world’s biggest car market. Musk is betting big on self-driving, and China is key. Tesla last week reported its worst quarter in two years as a price war hurts profit. Fully autonomous driving is also crucial.

Persons: Elon Musk, Antony Blinken, Tesla, China’s, they’ve, Musk, ” Organizations: Elon Locations: China, Beijing

Paramount is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development that would come even as company is exploring a merger. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said. The company is in talks to merge with Skydance, a media company controlled by the tech scion and Hollywood producer David Ellison. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish.

Persons: Bob Bakish, Bakish’s, Shari Redstone, David Ellison, Bakish Organizations: Paramount, Showtime, BET, Nickelodeon, MTV, Street

An effort to give Trump more say on ratesThis week, investors had planned to examine the latest inflation data, due out at 8:30 a.m. Eastern on Friday, for clues about when the Fed would start cutting interest rates. The Wall Street Journal reports that allies of Donald Trump are devising ways of watering down the central bank’s independence if he is re-elected president. But it also raises questions about whether such a plan is possible — or whether Trump’s Wall Street supporters would back it. Among the most consequential would be asserting that Trump had the authority to oust Jay Powell as Fed chair before Powell’s term is up in 2025. While Trump gave Powell the job in 2017, he has since soured on his pick for raising rates, and has publicly said he wouldn’t give Powell a second term.

Persons: Donald Trump, Trump, Jay Powell, Powell, wouldn’t Organizations: Trump, Street Journal, Wall

Meta’s A.I. But for investors, that’s not enough — and that’s a warning to other tech giants set to announce their own financial results in the coming days. That makes clear that while Wall Street loves the opportunities that A.I. The company plans to spend $35 billion to $40 billion this year — much of that on the technology — up from a forecast of $30 billion to $37 billion. It also expects second-quarter revenue to come in at $36.5 billion to $39 billion, below analyst estimates.

Persons: Meta’s, Meta, that’s, Mark Zuckerberg Organizations: Facebook, Wall, Meta

The winners from the TikTok battleThe countdown to TikTok disappearing from the United States is about to start. The Senate overwhelmingly passed legislation to force the divestment of the video app by its Chinese owner, ByteDance, within a year or be banned. Barring the app from U.S. shores could take months, or even years — if it actually happens. The road ahead is complicated, and any disruptions to the app could bolster its American rivals. Analysts at Bernstein have estimated that, should TikTok be banned, Meta could draw up to 60 percent of TikTok’s American ad revenue, while YouTube could take another 25 percent or so.

Persons: Biden, Bernstein Organizations: Google, Meta, YouTube Locations: United States

Campus unrest spreadsTop American colleges are in turmoil, with dozens of pro-Palestinian student protesters having been arrested at N.Y.U. and Yale amid new worries about antisemitism on campus. The latest: Police were called in to break up pro-Palestinian protests at N.Y.U. Harvard shut Harvard Yard and Columbia will make classes at its main campus hybrid until next week. Encampments were growing at other schools, including M.I.T., the University of Michigan and the University of California, Berkeley.

Organizations: Palestinian, Yale, University, University of Pennsylvania, Harvard, Police, Columbia, University of Michigan, University of California Locations: N.Y.U, Columbia, Berkeley

Tesla investors’ nerve-racking rideTesla has hardly been keeping quiet as it prepares to announce earnings on Tuesday. These developments are the latest signs that Tesla is confronting its toughest stretch in years — and many shareholders aren’t convinced that the company and its C.E.O., Elon Musk, are taking the right steps to address it. The latest: During the weekend, Tesla cut prices of several models in China, the U.S. and Europe. Those moves came a day after Tesla voluntarily recalled nearly 4,000 Cybertrucks over a faulty accelerator pedal that could get stuck. It’s all apparently keeping Musk so busy that he canceled a trip to India, during which he was expected to meet with Prime Minister Narendra Modi and announce plans to build a factory there.

Persons: Tesla, aren’t, Elon Musk, Narendra Modi Locations: China, U.S, Europe, India

The Federal Trade Commission on Monday sued to block Tapestry’s $8.5 billion acquisition of Capri, a blockbuster fashion tie-up that would bring together Coach, Kate Spade, Michael Kors and Versace. The lawsuit is a rare move by the agency to block a fashion deal, given that the industry does not suffer from a lack of competition. In her time as the chair of the F.T.C., Lina Khan has prioritized taking on the power of big business in suits across industries. The agency has moved to block the supermarket merger between Kroger and Albertsons; Meta’s acquisition of the virtual reality start-up Within; and Microsoft’s bid for the gaming giant Activision. failed to block Microsoft’s deal and Meta’s acquisition, both of which closed last year.

Persons: Kate Spade, Michael Kors, Versace, Lina Khan, ” Henry Liu, ” Organizations: Federal Trade Commission, Kroger, Albertsons, Activision, “, Competition Locations: Capri, ’

After the Indiana Fever made Caitlin Clark the W.N.B.A.’s No. In exchange for Clark’s once-in-a-generation talent, the W.N.B.A. The simplest reason the W.N.B.A. isn’t paying Clark more is that the league brings in just $200 million annually and relies on the N.B.A. The N.B.A., by contrast, brings in about $10 billion.

Persons: Caitlin Clark, ”, Clark’s, Biden, Clark Organizations: Indiana Fever, Nike

Labor painsAfter a “summer of strikes” last year that stretched from Detroit to Hollywood, unions are on a roll, flexing their growing might. Friday will bring a new test of that power as workers at a Volkswagen factory in Tennessee vote on whether to join the United Automobile Workers. Victory there would mark perhaps the first time a foreign carmaker’s U.S. plant became unionized and form a beachhead for organized labor in the anti-union South. But it could also resonate well beyond the car industry as President Biden cultivates labor in battleground states like Michigan and Pennsylvania. A yes vote would be a big win for the U.A.W.

Persons: ”, Biden, Shawn Fain, they’ve Organizations: Volkswagen, United Automobile Workers, Big, Detroit carmakers, Toyota, Tesla, Automotive News Locations: Detroit, Hollywood, Tennessee, U.S, Michigan, Pennsylvania

☆ Sony in Talks to Join a Bid to Buy Paramount
▼ + stars: | 2024-04-18 | by ( Benjamin Mullin | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

Even as Paramount, the home of the “Top Gun” movie franchise and “SpongeBob SquarePants,” continues its talks to merge with another media company, Skydance, a new suitor has emerged. Sony Pictures Entertainment and Apollo Global Management, an investment firm, have been in discussions about teaming up for a joint bid to acquire Paramount, two people familiar with the situation said Thursday. The two companies have not submitted an official bid, as Paramount is still in exclusive conversations with Skydance, said the people, who were granted anonymity to discuss delicate negotiations. Apollo previously reached out to Paramount about buying the company for at least $26 billion, including debt. A joint bid with Sony would almost certainly reduce those concerns, adding operational experience and additional capital to Apollo’s already significant war chest.

Persons: SpongeBob, ”, Skydance, Paramount’s Organizations: Paramount, Sony Pictures Entertainment, Apollo Global Management, Sony Locations: Apollo’s

The clock ticks for TikTokThe push to either split TikTok from its Chinese owner, ByteDance, or ban it in the U.S. is gaining momentum thanks to a legislative maneuver by the House Speaker Mike Johnson. The bill’s progress comes as The Times reveals more details about the video platform’s origin story — and the central role played by the Chinese subsidiary of the trading firm of a Republican donor, Jeff Yass. Johnson has bundled the TikTok bill into a foreign aid package. The speaker said on Wednesday that he would put up for a vote this weekend a spending measure for Ukraine, Israel, and Taiwan that includes a modified version of the TikTok divestment legislation. The move may force the Senate’s hand: The House overwhelmingly passed the bill last month, but the Senate hasn’t been in a rush to take it up.

Persons: Mike Johnson, Jeff Yass, Johnson, hasn’t Organizations: Times Locations: U.S, Ukraine, Israel, Taiwan

☆ How an Obscure Chinese Real Estate Start-Up Paved the Way to TikTok
▼ + stars: | 2024-04-18 | by ( Mara Hvistendahl | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

In 2009, long before Jeff Yass became a Republican megadonor, his firm, Susquehanna International Group, invested in a Chinese real estate start-up that boasted a sophisticated search algorithm. Behind the scenes, employees of a Chinese subsidiary of Mr. Yass’s firm were so deeply involved, records show, that they conceived the idea for the company and handpicked its chief executive. They said in one email that he was not the company’s “real founder.”As a real estate venture, 99Fang ultimately fizzled. They say that 99Fang’s chief executive — and the search technology — resurfaced at another Susquehanna venture: ByteDance. ByteDance, the owner of TikTok, is now one of the world’s most highly valued start-ups, worth $225 billion, according to CB Insights, a firm that tracks venture capital.

Persons: Jeff Yass, Republican megadonor, 99Fang, Yass’s, —, Zhang Yiming Organizations: Republican, Susquehanna International Group, Mr, Susquehanna Locations: ByteDance

Tesla tries again on Musk’s record pay packageNearly three months ago, a Delaware court voided Elon Musk’s multibillion-dollar pay package that Tesla’s board — and most shareholders — had given him in 2018, contending that the process to decide it was “deeply flawed” and that the company didn’t properly disclose it to investors. On Wednesday, Tesla said that it would ask shareholders to vote again on that same pay package, now valued at about $47 billion, at its annual meeting on June 13. The company’s board is effectively asking shareholders, now armed with all of the information that was revealed about the negotiations in court, to make the court’s ruling moot. The vote is likely to set off a bitter battle among investors and governance experts over whether shareholders should provide Musk with the richest pay package in U.S. corporate history. It comes as Tesla faces new challenges, especially slumping sales that have erased billions off its market value in recent months.

Persons: Tesla, Elon Musk’s, — Locations: Delaware

☆ F.T.C. Said to Consider Blocking Major Fashion Merger
▼ + stars: | 2024-04-17 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: +1 min

The Federal Trade Commission is preparing to sue to block a luxury fashion mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two people with knowledge of the matter said. The F.T.C.’s five commissioners are expected to meet next week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, the people said. The people, who were not authorized to discuss the deliberations, said that it was still possible that the agency could opt not to sue. Monopoly cases in the fashion industry are rare, because there is no shortage of new labels looking to undercut legacy brands. “It is the paradigmatic part of the economy where there is ample competition,” said Howard Hogan, the chair of the fashion, retail and consumer practice at the law firm Gibson Dunn.

Persons: ’, Kate Spade, Capri’s Versace, Michael Kors, Louis Vuitton’s, ”, Howard Hogan, Gibson Dunn Organizations: Federal Trade Commission, Capri Holdings, Gucci, Monopoly Locations: American

deal as a diplomatic weaponA relatively small deal — by Microsoft’s standards, anyway — is leading to big geopolitical ripples on Tuesday. The tech giant is investing $1.5 billion in G42, an Emirati artificial intelligence company. On its face, that may appear to be just another effort by the tech giant to claim a foothold in a fast-growing A.I. The terms of the deal: G42 will be able to sell Microsoft services that use powerful A.I. chips; in return, it will use Microsoft’s Azure cloud services for its A.I.

Persons: OpenAI, Biden Organizations: Microsoft Locations: Beijing, China

But the calm could be short lived, as world leaders and markets focus on Israel’s response. Military clashes don’t always sink the markets, as was the case when Hamas attacked Israel in October and Israel retaliated. “We may be entering one of the most treacherous geopolitical eras since World War II,” Jamie Dimon, JPMorgan Chase’s C.E.O., warned last week. “Take the win,” President Biden reportedly told Israel’s embattled prime minister after the attack was rebuffed with American help. Iran has signaled that the attack was a one-and-done, but Israel’s war cabinet hasn’t indicated its next move.

Persons: Israel, ” Jamie Dimon, JPMorgan Chase’s, Benjamin Netanyahu, Biden, hasn’t, Helima Croft Organizations: JPMorgan, ”, RBC Capital Markets Locations: Israel, Ukraine, United States, Iran

But this week’s dinner was overshadowed by the fight between the PGA Tour and the Saudi-backed LIV Golf series that has split the sport. The only certainties, according to insiders who have spoken to DealBook, are that a final agreement isn’t imminent after a series of deadlines have come and gone. And whatever happens between the PGA and LIV may permanently shape the future of professional sports. The 2023 winner, Jon Rahm, designed a menu that reflected his roots in the Basque region of northern Spain. There was, however, a bitter taste to his triumphant return: He quit the PGA Tour for LIV almost four months ago.

Persons: LIV, Jon Rahm Organizations: Augusta National Golf Club, PGA Tour, PGA Locations: Saudi, Basque, Spain

Housing gloomThe higher-for-longer inflation predicament has hit the U.S. housing market like a thunderbolt. More economists are paring their bets that the Fed will cut rates after the latest Consumer Price Index report. They all argue that sticky inflation will force the Fed to keep borrowing costs higher for longer. The country is growing faster than many peers, but voters are zeroing in on inflation to explain their disapproval of President Biden’s handling of the economy. (Some DealBook readers in recent days have emailed to say that they’re strongly feeling the pain of housing inflation.)

Persons: Goldman Sachs, ” Lawrence Yun, Biden’s Organizations: Bank of America, Deutsche Bank, National Association of Realtors

The dollar spiked overnight and traders slashed their bets on when — or whether — the Fed would cut interest rates this year. Such uncertainty could last for months and complicate President Biden’s bid for a second term. Traders this morning were pricing in less than two rate cuts for 2024 — down from more than six at the start of the year — possibly starting in July. The growing view on Wall Street is that inflation will need to get closer to the Fed’s 2 percent target before the central bank makes a move. Some are going even further: Larry Summers, the former Treasury secretary and a critic of the Fed’s handling of inflation, told Bloomberg that a rate increase can’t be ruled out.

Persons: Biden’s, Larry Summers Organizations: Fed, Biden U.S, Treasury, Bloomberg

Deal making runs into presidential politicsPresident Biden holds talks on Wednesday for Fumio Kishida, Japan’s prime minister, part of a state visit designed to show the U.S.’s commitment to a staunch ally. Despite the pomp and ceremony, the presidential election will loom over the meetings, with Biden’s opposition to Nippon Steel’s bid for U.S. Steel showing how the chase for votes is affecting deal making and economic policy. The summit will be just the fifth state visit of his administration, and reflects a different approach to that of his predecessor, Donald Trump. Both Biden and Trump have courted union workers, notably during the auto industry strike last year. Biden is the first sitting president to visit a picket line.

Persons: Biden, Fumio, Donald Trump, It’s, Trump Organizations: Nippon, U.S, Steel, Nippon Steel’s, Pennsylvania, Biden Locations: U.S, Japan, China, South Korea, India, Europe, Philadelphia, Pittsburgh

What next on inflation and rate cuts? The mood music on rate cuts has changed again. All eyes now are focused on the upcoming Consumer Price Index data for clues on when the Fed might finally start cutting interest rates. Economists on Tuesday are forecasting higher growth but also higher-for-longer inflation and rates. Traders are penciling in fewer than three cuts this year — lower than the Fed’s own projection — with the first coming not before July.

Persons: That’s

Jamie Dimon sees America at a ‘Pivotal Moment’Jamie Dimon’s annual letter to JPMorgan Chase shareholders has just been published. The economy is resilient but the government underpinning it is a red flag. Consumers are spending and investors expect a soft landing. But Dimon warns that the economy is being fueled by government spending and rising deficits. “These markets seem to be pricing in at a 70% to 80% chance of a soft landing — modest growth along with declining inflation and interest rates,” Dimon writes, adding that the odds are actually a lot lower.

Persons: Jamie Dimon, Jamie Dimon’s, Dimon, ”, ” Dimon Organizations: JPMorgan Chase Locations: America, Ukraine

Oil spike ripples through global marketsThe price of Brent crude rose again on Friday, at one point topping $91 a barrel. Growing tensions in the Middle East have pushed the global benchmark to levels last reached in October. Some analysts believe the oil rally is just beginning, creating a fresh inflation risk for central bankers who are struggling to keep price-increases in check. JPMorgan Chase forecast last week that oil would climb above $100 by September. And, in a bad sign for motorists, gasoline prices in the U.S. have climbed 6 percent in the past month just ahead of the North American summer driving season.

Persons: Brent, Biden Organizations: JPMorgan Chase Locations: U.S

Disney fended off the activist investor Nelson Peltz for the second time in two years, as its shareholders rejected his effort to win two seats on its board. The House of Mouse claimed a “substantial” margin of victory, after a bitterly fought contest with Peltz and his major backer, the former Marvel chair Ike Perlmutter. Based on preliminary results from Wednesday’s annual investor meeting, Disney’s board candidates won the backing of 75 percent of individual shareholders, an outsize investor base. But like any good Disney tale, the board fight provided a series of lessons for the future — for companies and activists alike. That included cost-cutting efforts, an investment in the video game giant Epic Games and a shake-up in the struggling movie division.

Persons: Iger, Nelson Peltz, Mouse, Peltz, Ike Perlmutter, Bob Iger Organizations: Disney, Marvel, Wall Street

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