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Tucker Carlson: ‘We’re back.’Tucker Carlson says he’s back: The conservative firebrand announced on Twitter on Tuesday that he would start a new show on Elon Musk’s social media platform, two weeks after being fired from Fox News. But Mr. Musk’s less-than-enthusiastic response — and his rush to note that the social media platform hadn’t signed a deal with Mr. Carlson — suggests that even Twitter’s outspoken owner has reservations. Mr. Carlson’s new show would be a jab at his old bosses. Tuesday’s announcement was a sign that talks to end Mr. Carlson’s contract, worth $25 million a year until it ends in January 2025, may have broken down. Mr. Carlson has accused Fox executives of breaching his contract, according to Axios, while the network could seek an injunction to keep its onetime star from reviving his broadcast.

If a bank failure were to leave one of them without access to cash, widespread market instability would follow. “Why take that risk?” Summer Mersinger, a member of the Commodity Futures Trading Commission, told DealBook. Clearinghouses exist to mitigate risk, taking collateral and settling transactions between buyers and sellers in all kinds of financial markets. This means a bank’s failure could easily lead to losses for a clearinghouse that “could potentially reverberate across the financial system,” the Chicago Fed concluded in a 2020 report. Even without a complete failure at a commercial bank, delays in access to cash could trigger liquidity issues across markets.

Don’t expect any major breakthroughs from the White House talks. Republicans want to reduce the country’s $31.4 trillion debt through spending cuts, while the White House views tax increases on companies and wealthy Americans as the best way to reduce the burden. In 2011, the S&P 500 fell when S&P Global, the ratings agency, downgraded the nation’s credit rating a few days after the Obama administration and Republicans reached a deal. This year, investors seem to be betting that lawmakers will reach a last-minute agreement, or at least temporarily lift the debt ceiling (Mr. McHenry didn’t rule this out). Despite a banking crisis and recession fears, the S&P 500 is up 8 percent in 2023.

A pivotal jobs reportThe U.S. labor market appears to be slowing. That’s the big question hanging over today’s payroll numbers, which are due for release at 8:30 a.m. Eastern. Forecasters have repeatedly underestimated the strength of the post-pandemic labor market. Instead, employers have added roughly 4.5 million jobs since the central bank started increasing interest rates in March 2022. Another hot jobs number could still influence the Fed’s interest rate policy.

PacWest plunges as banking woes spreadThe regional banking sector is teetering again, with PacWest’s stock plummeting more than 35 percent in premarket trading, despite the Fed chair Jay Powell’s assessment that the worst is over. The Los Angeles-based lender confirmed that it was talking to potential investors following reports that it was exploring a sale. Investors may be feeling some déjà vu after witnessing two big bank failures, and billions in market value wiped out, since the collapse of Silicon Valley Bank in March. It’s not just PacWest in free-fall. News of a potential PacWest sale, first reported by Bloomberg — and confirmed by DealBook — came just hours after Mr. Powell declared that the banking system was “sound and resilient.”

Banks in focus as the Fed weighs its rates moveIf market predictions are correct, the Fed on Wednesday will raise borrowing costs by a quarter of a percentage point, even as growing turmoil in the stocks of regional banks threatens to choke off credit to businesses and consumers, pushing the economy into recession. The decision comes amid a brutal sell-off in regional banks’ shares, which has wiped billions off smaller lenders’ market valuations. Regulators had hoped that the sale of the embattled First Republic Bank to JPMorgan Chase this week would contain the panic. But short sellers, investors who profit off bets that stock prices will fall, have continued to take aim at regional lenders like PacWest, Western Alliance and Zions Bancorp. (Shares in PacWest and Western Alliance are down again in premarket trading.)

Wall Street is still on edgeAfter JPMorgan Chase secured a deal to buy the embattled First Republic, the banking giant’s chief, Jamie Dimon, asserted that the market turmoil set off by Silicon Valley Bank’s collapse was at an end. “This part of the crisis is over,” he told analysts on Monday. But Wall Street isn’t convinced yet, as investors worry that potential new regulations and constrained lending could endanger the fragile economy. They account for about 80 percent of commercial real estate mortgages and 45 percent of consumer lending, according to Goldman Sachs. That leaves them exposed to further drops in office property values and consumer spending — which could lead to a wider credit crunch.

First Republic barely hangs onFirst Republic is limping into the weekend, days after reporting disastrous first-quarter results. The bank is still working on a lifeline, with some involved saying it is touch and go whether the federal government will assist in some way, DealBook hears. The precariousness of First Republic is a reminder that the banking crisis that erupted last month isn’t over yet and that a disorderly collapse of the lender could unleash yet more chaos in financial markets. Shares in First Republic are up nearly 10 percent in premarket trading, after having jumped yesterday, presumably in hopes that a rescue will emerge. But the bank’s stock is still at about $6, a far cry from the $150 it traded at a year ago.

The risks of doing dealsA British regulator’s decision to reject Microsoft’s $69 billion takeover bid for Activision Blizzard stunned many who had expected the deal to go through. That’s especially because moves this month by the agency, the Competition and Markets Authority, suggested that the transaction might pass muster. Though it narrowed the scope of its Activision deal inquiry to just one issue, cloud gaming, the C.M.A. The tribunal that will weigh Microsoft’s appeal will examine mainly whether the regulator followed proper procedure. That institutional advantage positions the agency as one of the world’s most influential antitrust enforcers, alongside those in the United States and the European Union.

Microsoft’s video-game bet suffers a huge blowBritain’s mergers regulator on Wednesday blocked Microsoft’s $69 billion takeover bid for Activision Blizzard, ruling that buying the maker of “Call of Duty” would give the tech giant too much control of the thriving market for cloud-based video games. Shares in Activision tumbled 12 percent in premarket trading, while Microsoft’s stock was up almost 8 percent after a solid earnings report. The deal risks “undermining the innovation” happening in cloud gaming, the C.M.A. said, by giving control of popular game titles to Microsoft, which owns the Xbox platform. (Cloud gaming isn’t reliant on users owning expensive consoles.)

Dropping anchorsFox News’s firing of Tucker Carlson, the most popular prime-time host in cable news, sent shock waves through the media and political spheres yesterday. Few had thought that repercussions from Fox’s $788 million defamation settlement with Dominion Voting Systems would reach Mr. Carlson, who commanded a following of millions and has the ear of Donald Trump. But Fox and Rupert Murdoch, who are used to courting controversy and legal settlements as the costs of doing business, may be betting that getting rid of Mr. Carlson is the smarter financial move. Since gaining his prime-time show in 2017, Mr. Carlson became the brightest star in the Fox News orbit, with “Tucker Carlson Tonight” averaging over three million viewers every night. (Shares in Fox Corporation fell 3 percent yesterday — more than they did after the company settled with Dominion last week.)

The challenges of saving a troubled lenderFirst Republic will report quarterly earnings on Monday, its first since the collapse of Silicon Valley Bank sparked a regional banking crisis. And despite a $30 billion lifeline provided by some of the country’s largest banks, First Republic’s shares have fallen nearly 90 percent over the past six months. So why hasn’t there been a deal to raise more cash or sell assets — or itself? First Republic is not expected to announce a deal alongside its earnings. Assuming those have moderated, First Republic has time to solve its problem.

The reason this news pioneer is closingBuzzFeed’s decision to shut its news division — an innovator in digital journalism that published both prizewinning investigations and listicles designed to get clicks — drew many bittersweet tributes online. But its closure is the latest reminder that digital media start-ups, which deep-pocketed investors once valued at astronomical sums, are facing headwinds. With even tech giants struggling to navigate hurdles like a declining advertising market, smaller companies are facing potentially existential crises. BuzzFeed and its peers have also suffered from the same drop-off in online ads that is forcing sharp job cuts at Alphabet, Meta and others. BuzzFeed used one to list on the Nasdaq in late 2021 — and ended up raising just $16 million, far short of the $250 million it could have collected.

Fox can take a tax deduction from the settlement, Lever News reports. U.S. tax law allows companies to write off at least some portion of settlement fees as part of the cost of doing business. (There are some exceptions, including for cases involving accusations of sexual harassment or abuse with nondisclosure agreements; Fox News has paid out settlements involving those in the past.) It is unclear how much Fox will save, though a spokesman confirmed that tax deductibility is at play. Lever News estimated that the company could reap as much as $213 million in tax savings.

The tech company will begin its latest round of layoffs today, in its Facebook, WhatsApp, Instagram and Reality Labs units, according to Vox, with up to 4,000 positions possibly set to go. Disney will cut thousands of jobs next week, as part of the C.E.O. Commentators and investors said the moves were a long-awaited recognition that Goldman should focus on its strengths. The online chatboard company told The Times that it would start making others pay to use its application programming interface, the method that allows outside entities to download its vast offering of user discussions. projects by tech giants — which must be trained on huge amounts of data — as a reason for the move.

Its stock fell nearly 4 percent lower in premarket. State Street, M&T Bank and Charles Schwab on Monday reported nearly $60 billion in deposit outflows last quarter. State Street’s shares fell more than 9 percent on Monday, its worst single-day performance in three years. Banks are under pressure to raise interest rates to stem the deposit exodus. About $12 billion in deposits left State Street last quarter as customers sought higher rates elsewhere, according to Gerard Cassidy, a banking analyst at RBC Capital Markets.

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