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Rowan and Warsh shake up Treasury raceFew of the unfilled positions in Donald Trump’s cabinet are as important as Treasury secretary. Allies of two candidates, Howard Lutnick, the transition co-chair, and Scott Bessent, a top economic adviser, publicly stumped for them this weekend. Musk threw his support behind Lutnick over the weekend, calling Bessent “business as usual,” an especially cutting criticism in the Trump camp. Loeb backed Bessent, arguing that choosing Lutnick might rattle investors, including in the $28 trillion market for Treasury bonds and notes. That said, Bessent is also being floated for positions such as chair of the White House’s National Economic Council.

Persons: Rowan, Warsh, Donald Trump’s, cloudier, Howard Lutnick, Scott Bessent, Marc Rowan, Kevin Warsh, Elon Musk, Dan Loeb, Musk, Bessent, Trump, Loeb Organizations: Times, Apollo Global Management, Fed, Treasury, White, Economic Council

Last year, Son — who says he uses ChatGPT every day — is said to have met with Sam Altman, the A.I. That included talks for Son to provide up to $1 billion in funding to Altman and Jony Ive, the designer behind the iPhone, to create an A.I.-powered replacement for the smartphone. Bloomberg reported that SoftBank had hoped to be part of OpenAI’s last fund-raising round, but was instead wait-listed. Son is also trying to organize the auto industry around the use of A.I. The strike poses a significant threat to the U.S. economy, with analysts estimating it could cost up to $7.5 billion a week.

Persons: SoftBank, Son —, Sam Altman, Altman, Jony, Son, Cerebras Organizations: Bloomberg, Nvidia, Gulf Coasts, International Longshoremen’s Association Locations: OpenAI’s, ramping, A.I, British, Wayve, Gulf, U.S

But this year’s event will be the first without Munger, who died in November at age 99 — and comes amid growing questions about Berkshire post-Buffett, who’s 93. Buffett will have a different crew answering questions alongside him on Saturday. Berkshire’s vice chairmen, Greg Abel and Ajit Jain, will be on hand for much of the day. Shareholders most likely will be focused on what Abel, Buffett’s appointed successor as C.E.O. In Buffett’s annual letter to investors, he noted challenges to Berkshire’s biggest businesses, including the BNSF railroad (falling shipment volumes) and its utility business (forest fires).

Persons: Warren Buffett, Charlie Munger, Munger, Buffett, Greg Abel, Ajit Jain, Abel, Buffett’s Organizations: Berkshire, Shareholders Locations: Berkshire, Omaha, Woodstock, America

ImageHERE’S WHAT’S HAPPENINGExxon Mobil strikes an agreement to win regulatory approval of its $60 billion megadeal. Elsewhere, shares in Shell were up after the producer reported $7.7 billion in adjusted quarterly earnings, beating analyst expectations. The U.S. imposes sanctions on Chinese companies over military support for Russia’s war effort. The Biden administration announced on Wednesday nearly 300 sanctions, including on more than a dozen Chinese businesses, aimed at disrupting Moscow’s full-scale invasion of Ukraine. The culprit: pressure on prices, amid growing competition from Eli Lilly’s Zepbound, supply constraints and scrutiny from lawmakers.

Persons: Scott Sheffield, Biden, Janet Yellen, Antony Blinken, Eli Lilly’s Zepbound, James Comer, Comer Organizations: Labor Department, Exxon Mobil, Natural Resources, Wall Street, Novo Nordisk, Republican, European Commission Locations: Shell, U.S, Ukraine, Danish, Kentucky, iRobot

Tesla plungesElon Musk and Tesla shareholders are at a crossroads. Shares are down roughly 8 percent on Thursday in premarket trading after Wednesday’s lackluster year-end results. He asked investors to look beyond 2024, predicting a “major growth wave” fueled by a low-cost Tesla model that will be built partly in Austin, Texas, and Mexico. The latest stock fall comes after Tesla reported that fourth-quarter profit nearly doubled to $7.9 billion — largely thanks to a one-time tax break. The company also declined to give detailed full-year guidance, but said it expected sales growth to be “notably slower.”

Persons: Tesla, Elon Organizations: Tesla Locations: North America, Europe, China, Austin , Texas, Mexico

Some of that loss may be because of disappointing news about the Cybertruck’s pricing and availability. But some may also reflect renewed concern about Elon Musk’s latest comments, made at the DealBook Summit this week, and whether his self-inflicted damage at X is distracting from his other businesses. Advertisers aren’t impressed by Musk’s recent tirade. On Wednesday, he asserted that brands were trying to “blackmail” him by suspending their advertising after he endorsed an antisemitic conspiracy theory on X. “There is no advertising value that would offset the reputational risk of going back on the platform,” Lou Paskalis, the founder and C.E.O.

Persons: Tesla’s, Elon Musk’s, aren’t, Musk’s, ”, Lou Paskalis Organizations: Tesla, AJL, Times

The lineup for DealBook Summit 2023On Wednesday, DealBook will be live and in person at our annual summit in New York. The DealBook team and reporters from The Times will be reporting live from the conference. Even if you are not with us, you can follow along here beginning at 8:30 a.m. Eastern. Here are the speakers:Vice President Kamala HarrisElon Musk , the chairman and C.E.O. Is this a technology that will unleash a new wave of productivity, or is it a force that could do irreparable harm?

Persons: DealBook, Andrew, Kamala Harris Elon Musk, Tesla, X Tsai Ing, Taiwan Lina Khan, Jamie Dimon, JPMorgan Chase Bob Iger, Kevin McCarthy, California Jensen Huang, Nvidia David Zaslav, Jay Monahan Organizations: DealBook, The, SpaceX, Federal Trade, JPMorgan, Disney, Republican, Nvidia, Warner Bros, White House Locations: New York, Taiwan, California, Israel, China, U.S, Beijing, Washington

Shein aims to win over Wall Street and WashingtonIn filing confidentially for an initial public offering, Shein, the ultrafast-fashion retailer, is showing ambition on two fronts. The company and its underwriters are betting that investors will be more receptive to I.P.O.s, even though high-profile market debuts this fall largely fizzled out. Shein is also testing whether it can endure what’s likely to be an increase in political heat on the China-founded e-commerce giant. The company has also set up operations in Ireland and Indiana and hired an array of lobbyists in the U.S. “No one should be fooled by Shein’s efforts to cover its tracks,” Senator Marco Rubio, Republican of Florida, wrote in a letter to other lawmakers.

Persons: Marco Rubio Organizations: Wall, Washington, underwriters, Republican Locations: China, Washington, Singapore, Nanjing, Ireland, Indiana, U.S, Florida

on trialThe Supreme Court will hear a landmark case this week that could determine the future of the S.E.C.’s in-house enforcement arm and have serious consequences for how other regulators operate. Jarkesy was found guilty in an administrative proceeding overseen by an administrative law judge. But he won a later challenge to that process in federal court, saying that the Seventh Amendment guaranteed the right to a jury trial. Most justices have shown an inclination to limit agency power and this is just one of several cases challenging the power of federal regulators. The Supreme Court is also mulling the future of the Consumer Financial Protection Bureau and whether to overrule a principle that requires judges to defer to agencies’ interpretations of administrative rules.

Persons: Napoleon, ”, George Jarkesy, Jarkesy Organizations: Disney, Consumer Financial Protection Bureau

Overnight, OpenAI announced that it had an “agreement in principle” to reinstall Sam Altman as C.E.O., while the board members who pushed him out are departing. The news was greeted rapturously by the ChatGPT creator’s employees, most of whom had threatened to quit and join Altman at Microsoft. Altman and those focused more on commercializing the technology came out ahead of those worried about its apocalyptic potential. Gone are Tasha McCauley, Helen Toner and Ilya Sutskever, three of the four directors who ousted Altman. That board will help select a bigger permanent one, according to The Verge, which may include representation for Microsoft, OpenAI’s biggest investor.

Persons: OpenAI, Sam Altman, Altman, Tasha McCauley, Helen Toner, Ilya Sutskever, Bret Taylor, Larry Summers, Adam D’Angelo, Satya Nadella, Microsoft’s, ” Organizations: Microsoft, Treasury Locations: Silicon

Microsoft had no official say with the board when Altman, the company’s key contact, was fired. That is partly as a hedge for the fact it has no control over the start-up’s board. It involves the holy grail of OpenAI’s work: achieving artificial general intelligence, or A.G.I. Scott Syphax, a corporate governance expert, told DealBook that the deal could raise red flags with regulators if it threatens the nonprofit’s tax-exempt status. Another area Syphax is watching: the valuation that Microsoft placed on OpenAI after its investment and whether it acquired the I.P.

Persons: Altman, Nadella, Kara Swisher, Brockman, ”, Microsoft’s, Scott Syphax, DealBook, Bill Gurley, Satya Organizations: Microsoft, Times Locations: “, Grubhub

of OpenAI, the leader in commercializing generative A.I. By Monday, he had not only been fired by his board — he had also joined Microsoft, the start-up’s biggest backer. A recap:OpenAI’s board fired Altman for not being “consistently candid.” Greg Brockman, another co-founder, was stripped of his chairman title and quit. Talks to bring Altman back broke down, with OpenAI’s board eventually naming Emmett Shear, the former C.E.O. (Some OpenAI employees workers wrote on X that “OpenAI is nothing without its people,” posts that Altman liked.)

Persons: Sam Altman, Altman, Greg Brockman, OpenAI —, —, Emmett Shear, Mira Murati, Brockman, Ilya Sutskever, Elon Musk, Geoffrey Hinton Organizations: Microsoft, up’s, OpenAI Locations: OpenAI, ChatGPT

Social media’s antisemitism problemThe rise in antisemitism since the outbreak of war in the Middle East has ignited a clash between Wall Street donors and universities, and divided some workplaces. Now, the pressure is building on social media platforms, particularly Elon Musk’s X and TikTok, with advertisers, celebrities and influencers pulling spending and confronting executives about the proliferation of hate speech. He posted to X his support for white nationalist conspiracy theories that Jewish communities were spreading hatred. Yaccarino was brought in to win back advertisers after Musk bought Twitter last year and culled many content moderators. More than a dozen Jewish celebrities and creators, including the actors Sacha Baron Cohen, Debra Messing and Amy Schumer, confronted TikTok executives this week.

Persons: Elon Musk’s, Adolf Hitler, Musk, X’s, Linda Yaccarino, Yaccarino, “ Linda, ” Martin Sorrell, DealBook, TikTok, Sacha Baron Cohen, Debra Messing, Amy Schumer, “ Hitler, Anne Frank ”, Cohen, ”, Osama bin, bin Laden, —, Alex Haurek, George Santos, Biden, Xi Jinping, Doug McMillon, Walmart’s, “, ” Brian Cornell, ’ Organizations: IBM, Media, America, Nazi Party, Apple, Oracle, Defamation League, Twitter, S4 Capital, House, Big, General Motors, Hyundai, Republican, Justice Department, Business, APEC, West Texas Intermediate, Consumers, Depot, Walmart Locations: TikTok, New York, Hong Kong, China, San Francisco, Beijing, Washington, U.S

Biden and Xi try direct diplomacyThe mood music was upbeat but pragmatic after the first face-to-face meeting in a year between President Biden and his Chinese counterpart, Xi Jinping. There was no joint communiqué after Wednesday’s talks, but both sides issued positive statements trumpeting where they found common ground, including on tackling climate change and improving communications. The leaders agreed to restart military communications that were suspended last year after Nancy Pelosi, then speaker of the House, visited Taiwan. Larry Fink of BlackRock and Steve Schwarzman of Blackstone reportedly sat at the Chinese leader’s table. The measure would keep the federal government funded through early next year, clearing the way for President Biden to sign the legislation.

Persons: Biden, Xi, Wednesday’s, Nancy Pelosi, —, Larry Fink, BlackRock, Steve Schwarzman, Blackstone, Tim Cook, Albert Bourla, Ray Dalio, ” Richard McGregor, DealBook, “, they’re, Kamala Harris, Elon Musk, Jensen Huang, Nelson, Trian Organizations: Hyatt Regency, Apple, Pfizer, Bridgewater Associates, Lowy Institute, SpaceX, Tesla, Nvidia, Disney, ValueAct Capital, 13D, Microsoft Locations: San Francisco, U.S, Taiwan, China, Beijing, Iran, Israel, Australia, Ukraine

Good news for global marketsYesterday’s impressive rally in U.S. stocks and bonds has gone worldwide this morning, as investors see central banks making gains in their fight against inflation. Adding to the good news was a breakthrough in the House last night that could avert a government shutdown. The question now is whether this represents a false dawn on inflation, or the start of a durable decline in rising costs — and interest rates. President Biden, whose poll ratings have been hurt by inflation, also cheered the numbers. And consumer spending and industrial output in China rebounded last month, a hopeful sign for the world’s No.

Persons: Biden Locations: Britain, China

What to watch for in Tuesday’s inflation numberThe markets have rebounded from their fall swoon — with the S&P 500 up more than 7 percent over the past two weeks — as investors grow more optimistic that the Fed is done raising interest rates. That conviction will be put to the test with a new batch of inflation data this week, starting with Tuesday’s Consumer Price Index data at 8:30 a.m. Eastern. It arrives amid deep divisions on Wall Street over the Fed’s next move, and as inflation weighs heavily on President Biden’s poll numbers. Tuesday’s figure could signal that progress on inflation is slowing. That’s no better than the September figure, and well above the Fed’s 2 percent target.

Persons: Biden’s Organizations: Tuesday’s, Wall, Deutsche Bank

The summit won’t end the standoff between the world’s biggest economies. But it’s a sign that Biden and Xi want to maintain ties, despite trade tensions, tit-for-tat sanctions and questions about the future of Taiwan — and business leaders will be hoping for some sign of a thaw. Officials have been at pains to emphasize that the U.S. and China are competitors rather than zero-sum rivals. “We have a $700 billion trading relationship with China. The vast majority — 99 percent of that — has nothing to do with export controls,” Gina Raimondo, the commerce secretary, told CNN this weekend.

Persons: Biden, Xi Jinping, Xi, —, ” Gina Raimondo, Jake Sullivan, Janet Yellen, ” Xi, ” Organizations: CNN Locations: China, Washington, Beijing, San Francisco, Taiwan

Stock futures this morning are pointing to another weak open. The subdued jobs report released last week led many on Wall Street to predict that the Fed would stop increasing borrowing costs. Not so fast, the central bank’s chief suggested at an event hosted by the International Monetary Fund in Washington. He called out the “head fakes” posed by fluctuating inflation data, and reiterated that the door remained open for further interest rate increases. (Speaking of doors: Powell appeared to lose his cool when climate change protesters disrupted his speech, issuing a profanity as they were escorted off the stage.)

Persons: Jay Powell, —, Powell hasn’t, ”, Powell Organizations: Stock, International Monetary Fund Locations: Ukraine, Washington

Hollywood is poised to get back to workAfter months of strikes that shut down most of Hollywood, the end appears in sight. The SAG-AFTRA union that represents some 160,000 members tentatively agreed to a new contract with media giants that, if approved, will reinvigorate the $134 billion American movie and television business. Union members are hopeful that the deal will bring significant financial concessions that made SAG-AFTRA’s longest-ever strike worth it. But the changing economics of Hollywood may temper some gains, echoing the dilemma facing resurgent unions elsewhere in the country. Led by the actress Fran Drescher, of “The Nanny” fame, SAG-AFTRA took a maximalist negotiating approach that involved accusing studios of plutocracy and belittling their bosses.

Persons: Fran Drescher, ”, AFTRA Organizations: Hollywood, SAG, Writers Guild of America Locations: Hollywood, plutocracy

Investors await news on deals, cuts and moreOn Wednesday, Bob Iger will deliver one of the most consequential earnings reports for Disney since returning as C.E.O. He has had to confront many problems, including a slumping share price, strikes that have crippled much of Hollywood, the wrenching transformations wrought by streaming and renewed pressure from the activist investor Nelson Peltz. Progress on potential deals and asset sales: Since Iger opened the door to selling Disney’s declining but profitable traditional TV business and bringing in an investor for ESPN, investors have eagerly awaited what’s next. (Disney, which last month began breaking out financial results for ESPN, has concluded that any deal should be with a sports league or leagues.) Cost cuts: Months of Hollywood strikes — talks between studios and the actors’ on Wednesday will resume on Wednesday — may have saved Disney money on production costs.

Persons: Bob Iger, Nelson Peltz, Iger, what’s, —, ’ Organizations: Disney, ESPN, Hulu Locations: Hollywood

Biden’s troubles stem in large part from negative perceptions about the economy, even as several indications show that it is performing strongly. Here’s a deeper look at what “Bidenomics” has, and hasn’t, accomplished. Since Biden took office, employers have created 14 million jobs, and the unemployment rate has been hovering around a 50-year-low for months. “Bidenomics is just another way of saying the American dream,” he said in a speech. The economy grew last quarter at nearly 5 percent, belying a global slowdown.

Persons: Biden, Donald Trump —, ”, Bidenomics, It’s Organizations: Infrastructure Investment, Jobs Locations: America

From crypto wunderkind to felonIt took jurors just four-and-a-half hours yesterday to reach a verdict in the monthlong fraud trial of Sam Bankman-Fried, the founder of the fallen cryptocurrency exchange FTX. The result was unanimous: guilty on all counts. Bankman-Fried has now completed a narrative arc from whiz-kid founder of a crypto empire to fraudster who stole billions in customer funds. Prosecutors moved to paint the FTX founder — who appeared on magazine covers and hobnobbed with former world leaders — as a scammer who repeatedly lied about his business and profited from illegal use of investor and customer funds. “This was a fraud that occurred on a massive scale,” Nicolas Roos, a prosecutor, said in closing arguments.

Persons: Sam Bankman, Fried, fraudster, —, ” Nicolas Roos Organizations: Stanford, Prosecutors

Elite law firms send a messageWith universities across the United States grappling with a rise in antisemitism since the start of the Israel-Hamas war, elite law firms are putting schools on notice. In a letter to some of the nation’s top law schools obtained by DealBook, about two dozen major Wall Street firms warned that what happens on campus could have corporate consequences. The letter follows a series of recent antisemitic episodes at universities. Kathy Hochul of New York sought this week to reassure Jewish students at Cornell after online posts threatening violence against them. Students at other schools have said they feel increasingly unsafe amid rallies and other acts that, in some instances, have become violent.

Persons: Moore Debevoise, Plimpton Kirkland, Ellis Paul, Weiss, Garrison Simpson Thacher, Bartlett Skadden Wachtell, Lipton, Davis Polk, Israel, Kathy Hochul Organizations: DealBook, Rosen, Katz, Wardwell, Gov, New York, Cornell Locations: United States, Israel, Rifkind, Wharton, New

Waiting on the Fed and TreasuryThe Fed hasn’t budged on interest rates since July, and it’s expected to stand pat again today. Still, an anxious Wall Street will be closely watching for any change in the central bank’s higher-for-longer strategy on rates, including the possibility of a new increase as soon as next month. Before Jay Powell, the Fed chair, speaks this afternoon, the Treasury Department will take center stage. But this Treasury update comes against a backdrop of big tensions in the bond market. Yields on 10-year Treasury notes jumped to a 16-year high last month as investors dumped bond holdings, sending borrowing costs higher for consumers and businesses.

Persons: Wall, Jay Powell Organizations: Fed, Treasury, Treasury Department

The biggest involved Alameda Research, the sister hedge fund he controlled that’s at the heart of a collapse that has cost investors, business partners and customers billions. Under questioning, he conceded that he played a larger role at Alameda before it imploded. His decision to testify was long seen as risky, and that became clearer yesterday. The 31-year-old, who faces nearly a lifetime in prison on fraud and money-laundering charges, delivered curt “yep,” “no” and several “I’m not sure” responses, the latter drawing rebukes from the judge. The lead prosecutor used Bankman-Fried’s own words against him.

Persons: Sam Bankman, Fried, curt “ yep, I’m, Danielle Sassoon, Antonin Scalia, Bankman Organizations: Alameda Research, Supreme, Twitter Locations: Alameda

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