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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

(That’s despite Trump being nearly as unpopular and fighting multiple legal battles; he is taking the stand on Monday in one of them. And, on PredictIt, which is watched by political experts, Biden holds a six-point lead on Trump.) Just 2 percent of voters said the economy was excellent, the poll found. Worryingly for Biden, that discontent is being reflected in demographics crucial to his re-election: 48 percent of Black voters in the Times/Siena poll rated the economy as poor, as did 59 percent of voters under 30. Zero respondents in that age group in Arizona, Nevada and Wisconsin rated the economy as excellent.

Persons: Biden, Donald Trump, Trump, Worryingly Organizations: Trump, White, Biden, Times Locations: Siena, PredictIt, Arizona , Nevada, Wisconsin

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

rules in governments’ sightsPresident Biden is set to issue an executive order on artificial intelligence on Monday, in his first effort to regulate how U.S. companies develop it and how regulators oversee the technology. The order will create standards for American companies and public agencies. Biden will invoke the Defense Production Act, which lets the president mobilize U.S. industry to support national defense. The order will require companies developing A.I. that “poses a serious risk to national security, national economic security, or national public health and safety” to notify the government when training their systems.

Persons: Biden

Meanwhile, Meta has struggled with applying its content policies fairly across its platforms, including Facebook and Instagram, according to The Wall Street Journal. Experts say companies often find themselves out of their depth in talking about the knotty topic and that sometimes there’s little benefit to rushing out a statement. Some companies, especially those without operations in the Middle East, have chosen not to speak. In related news: How diplomats from the U.S., Qatar and elsewhere helped free two Americans taken hostage by Hamas. The two were far apart earlier this month on issues including streaming payouts and the use of artificial intelligence.

Persons: Dave Chappelle sparred, driller, Hess Organizations: U.S, Social, Israel, Meta, Facebook, Wall Street, ” Employers, Corporate, Web, Creative Artists Agency, Hamas, Exxon Mobil’s, Natural Resources, Republicans, SAG, . Tax, Big Tech Four, Microsoft, Apple, Nvidia, Nasdaq Locations: Israel, Gaza, U.S, Qatar, Ukraine, Chevron’s, Guyana, Texas, New Mexico

Worries are growing about how much the turmoil could cost the global economy. Brent crude, the global oil benchmark, hit a three-week high this on Fridayfears that a military escalation could disrupt already tight supplies. In a speech largely focused on inflation, interest rates and economic growth, Jay Powell, the central bank’s chair, warned on Thursday that “geopolitical tensions are highly elevated and pose important risks to global economic activity.”The Middle East is becoming a wild card for the global economy. That would probably sap growth but might also slow the economy enough to negate the need for an additional interest-rate increase. The measures were announced days after the U.S. imposed tighter restrictions on sales of more advanced semiconductors to China.

Persons: Biden, —, Brent, Jay Powell, Powell, ” Powell, Kamala Harris, Jay Monahan, David Zaslav, Jim Jordan, Patrick McHenry, Jordan, there’s, Fran Drescher, George Clooney, ” Drescher, Sidney Powell, Donald Trump’s Organizations: Gaza, Israel, U.S . Navy, Intel, Siemens, European Commission, Digital Services, PGA, Warner Bros, Hollywood, SAG, Trump Locations: Mideast, Israel, Ukraine, Lebanon, U.S, Iran, Yemen, Syria, Iraq, Lisbon, Ohio, Trump . China, Beijing, China

Investors turn to the Fed amid Israel-Hamas turmoilThe Middle East crisis has put markets on edge, pushing up oil prices and driving demand for safe havens, like gold. A key update comes Thursday at noon Eastern, with Jay Powell, the Fed chair, set to speak at the Economic Club of New York. In recent months, inflation has begun to ease, but the path has been bumpy as hiring remains robust and consumers continue to spend. That’s fueled fears in the bond markets that Fed policymakers will keep their prime lending rate at around 5 percent well into next year. The conviction has prompted a mammoth sell-off in Treasuries in recent weeks, pushing the yield on the 10-year T-bill to a 16-year high.

Persons: Jay Powell Organizations: Economic, of New Locations: Israel, of New York, Treasuries

Biden’s diplomatic task gets harderPresident Biden landed in Israel on Wednesday for a high-wire diplomatic mission that is facing new challenges by the minute. All that threatens to become what investors have feared: a rapid escalation of violence that could roil markets, upsetting a fragile global economy. Before departing for Israel, Biden said he was “outraged and deeply saddened” by the blast at Ahli Arab Hospital. Palestinians blamed an Israeli airstrike, and Israelis cited an errant rocket fired by an armed Palestinian faction. Israeli forces are clashing with Iranian-backed Hezbollah forces based in southern Lebanon.

Persons: Biden, Jordan, Benjamin Netanyahu, ” Organizations: of Islamic Cooperation, Israel, Arab Hospital Locations: Israel, Gaza, Iran, Palestinian, Lebanon

Some executives are worried about the optics, pointing to an initial statement from Riyadh about the Oct. 7 Hamas attacks that appeared to blame Israel. The diplomatic normalization talks with Israel appear to be on hold, and the crown prince has reportedly begun talks with the Iranian government about preventing the conflict from metastasizing. Meanwhile, Riyadh has been cool to U.S. efforts to restore calm and preserve progress made in the Saudi-Israeli talks. Prince Mohammed reportedly made Secretary of State Antony Blinken wait hours before meeting, and then called for a halt in the “current escalation” of the conflict. Some have suggested that attending would help encourage Saudi Arabia in its modernization push.

Persons: Israel, Prince Mohammed, Antony Blinken, ” Ayham Kamel, DealBook, Jamal Khashoggi, Prince Mohammed’s Organizations: Reuters Locations: Riyadh, U.S, Saudi, Eurasia, East, North Africa, Israel, Saudi Arabia

Biden and Trump bid for blue collar votesIn an extraordinary show of support, President Biden plans to join striking autoworkers on the picket line in Michigan on Tuesday. It comes a day before Donald Trump is expected to speak to union members in Detroit instead of participating in the second Republican primary debate. The competing visits come as the two home in on battleground states ahead of next year’s election. But their appearances also reveal a political battle to become the voice of blue collar workers at a time when both candidates are struggling to win over mainstream voters and even some within their own parties. is somewhat troublesome for him: It includes incentives for automakers to make more electric vehicles, which labor leaders say will depend on non-union jobs and require fewer workers.

Persons: Biden, Trump, Donald Trump Organizations: Republican Locations: Michigan, Detroit

The work stoppage isn’t officially over yet, and actors remain on strike. attained suggest that as organized labor enjoys a surge in popularity across a variety of industries, its muscle-flexing is achieving results. “We can say, with great pride, that this deal is exceptional,” the W.G.A. News reports suggest the deal includes provisions for residual payments from streaming, minimum staffing of shows and limits on the use of artificial intelligence. Until then, writers are still on strike, though they’re not actively picketing.

Persons: isn’t, they’re Organizations: Guild of America, Hollywood

Looking beyond the Fed’s rate decisionThe markets on Tuesday are betting that the Fed will stand pat on interest rates on Wednesday. The higher-for-longer policy would probably deal a blow to prospective home buyers and businesses, and could undermine President Biden’s message of economic growth heading into an election year. Investors will focus on the Fed’s quarterly economic projections. With Brent crude hitting a 10-month high of more than $95 a barrel on Tuesday morning, however, fears on inflation still loom large. Investors on both sides of the Atlantic dumped bonds on Monday, with yields on a 10-year inflation-adjusted Treasury note hitting a 14-year high on fears that the Fed would stay hawkish on interest rates.

Persons: Biden’s, Brent Organizations: Fed, Investors

Other unions are digging in as well. The Writers Guild of America is in the fourth month of its strike against major Hollywood studios, while the actors’ union, known as SAG-AFTRA, is in its second. A Gallup poll published in August found that 67 percent of Americans approve of unions, the fifth straight year such support has exceeded the long-term polling average of 62 percent. Time is running out for Congress to reach a compromise to keep the government running past Oct. 1. The confab is part of an effort to lay groundwork for a meeting between President Biden and President Xi Jinping in San Francisco in November.

Persons: Drew Barrymore, Biden, Donald Trump, Kevin McCarthy, Jake Sullivan, Wang Yi, Xi Jinping Organizations: Guild of America, Hollywood, SAG, Labor Department, Gallup, Republican, Biden, U.S Locations: U.S, California, Malta, Ukraine, Taiwan, San Francisco

Autoworkers put down their toolsThousands of autoworkers walked off the job on Friday morning at three Midwest plants in an unprecedented strike, as the United Automobile Workers and Detroit’s three big carmakers remained miles apart on contract talks. A lengthy strike could dent the Big Three’s profits, analysts say, at a time when the companies are investing heavily in electric vehicles to catch up to Tesla and Chinese rivals. Mary Barra, G.M.’s chief, warned that meeting all or most of the union’s demands could hobble the company’s prospects. “Make no mistake: If we don’t continue to invest, we will lose ground, and it will happen fast,” she said. “Nobody wins in a strike.”

Persons: Autoworkers, autoworkers, Biden, Ford, Mary Barra, ’, “, ” Organizations: United Automobile Workers, General Motors, Dodge, Chrysler Locations: Stellantis, Amsterdam, G.M

The company priced its shares on Wendesday at $51 each, the top end of its range, valuing it at about $54.5 billion. Arm’s I.P.O. SoftBank had initially wished the company would be valued at as much as $70 billion. And it had pitched Arm as a major player in designing chips for artificial intelligence applications, a tech sector that investors have flocked to. But valuations of privately held companies have fallen sharply over the past year, and investors were reportedly concerned about Arm’s so-so financial performance of late.

Persons: SoftBank Organizations: Nasdaq, Wendesday

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