Monday, June 24

Economy

Tesla shareholders will vote on Elon Musk’s big payday.  What happens then?
Economy

Tesla shareholders will vote on Elon Musk’s big payday. What happens then?

More news - Latest news Tesla could use shareholder approval to support Musk's case in court. If it wins the vote on Musk's compensation, the company is likely to turn to Chancellor Kathaleen McCormick, the Delaware Court of Chancery judge who rejected the compensation plan, and argue that shareholders, armed with information she says she not having had it when they approved the package, they ratified the proposal again. This, according to the company, makes the issue controversial. If McCormick were to declare the plan acceptable, it is likely that the plaintiffs who initially sued will appeal to the Delaware Supreme Court. Among their potential arguments: The new vote does not resolve an issue that had already been decided by a judge, and shareholder votes may have been influence...
Tesla shareholders will vote on Elon Musk’s big payday.  What happens then?
Economy

Tesla shareholders will vote on Elon Musk’s big payday. What happens then?

More news - News 24 hours Tesla could use shareholder approval to support Musk's case in court. If it wins the vote on Musk's compensation, the company is likely to turn to Chancellor Kathaleen McCormick, the Delaware Court of Chancery judge who rejected the compensation plan, and argue that shareholders, armed with information she says she not having had it when they approved the package, they ratified the proposal again. This, according to the company, makes the issue controversial. If McCormick were to declare the plan acceptable, it is likely that the plaintiffs who initially sued will appeal to the Delaware Supreme Court. Among their potential arguments: The new vote does not resolve an issue that had already been decided by a judge, and shareholder votes may have been influen...
TikTok’s Future in U.S. Depends on Bet on First Amendment
Economy

TikTok’s Future in U.S. Depends on Bet on First Amendment

Related media - Related media TikTok takes its fight to court TikTok fired the latest broadside in its battle with Washington, suing to block a law that could force the company to split from ByteDance, its Chinese owner, or face a ban in the U.S. The company argues that the law violates the First Amendment by effectively killing an app in the U.S. that millions of Americans use to share their views. Another problem: a divestiture within 270 days is practically impossible, Sapna Maheshwari and David McCabe report for The Times. DealBook spoke with Maheshwari about the lawsuit filed yesterday and what happens next. Do legal experts think TikTok has a chance at winning? It could go either way. Alan Rozenshtein, an associate professor at the University of Minnesota Law School, says that...
In a Surprise, Disney+ Becomes Profitable
Economy

In a Surprise, Disney+ Becomes Profitable

Linked media - Related media When Disney reported robust earnings in February, the activist investors then circling the company essentially called it a stunt — a temporary, heat-of-battle effort to fend them off and not, as Robert A. Iger maintained, proof that a struggling Disney had finally “turned the corner.” The Disney chief’s argument just got a lot stronger. Disney blew past Wall Street’s expectations for a second consecutive quarter on Tuesday, in part because its flagship streaming service made money — a first. Disney+ had been expected to lose more than $100 million in the most recent quarter, widening losses since its 2019 arrival to roughly $12 billion. Instead, it swung to a $47 million profit. “Two quarters earlier than expected,” Hugh Johnston, Disney’s chief financia...
Antony Blinken Visits China – The New York Times
Economy

Antony Blinken Visits China – The New York Times

Associated media - Linked media Mr. Biden emphasized that the United States would continue to take necessary actions to prevent advanced American technologies from being used to undermine its own national security, without unduly limiting trade and investment, according to the White House. Mr. Xi said that putting new sanctions on China was not “de-risking,” but creating risks. If the United States was bent on “containing China’s hi-tech development and depriving China of its legitimate right to development, China is not going to sit back and watch,” he said, according to the official Xinhua News Agency. U.S. officials say their restrictions are necessary given China’s authoritarian government and statist economic model. But the moves have rankled Chinese leaders and pushed tensions ...
How a Pirate-Clad Pastor Helped Ignite Trump Media’s Market Frenzy
Economy

How a Pirate-Clad Pastor Helped Ignite Trump Media’s Market Frenzy

Associated media - Related media Mr. Nedohin raised his arms in celebration. A few minutes later, he cut to a video of a rocket blasting into the sky, with Mr. Trump photoshopped onto it. “We are holding Trump stocks,” he declared. “We are now financial investors in him.” Mr. Nedohin is one of hundreds of thousands of amateur investors who own shares of Trump Media, convinced that its sole platform, Truth Social, will become one of the world’s most popular and profitable social media sites. In recent months, tens of thousands of Trump fans have tuned into Mr. Nedohin’s webcasts, where he exhorts viewers to invest in the company, arguing that “Trump always wins in the long run.” The enthusiasm from Mr. Nedohin and other Trump supporters has turned Trump Media into the latest “meme sto...
Now Arriving at an Airport Lounge Near You: Peloton Bikes, Nap Pods and Caviar Service
Economy

Now Arriving at an Airport Lounge Near You: Peloton Bikes, Nap Pods and Caviar Service

Associated media - Linked media A handful of new lounges opened by credit card issuers, including Capital One and American Express, have recently landed in airports across the United States, promising posh spots of refuge for select travelers awaiting their flights. At La Guardia Airport, caviar service will be available for pre-order. At Hartsfield-Jackson Atlanta International Airport, travelers can get complimentary massages, and at Denver International Airport, there are nap pods. In addition to amenities, the new lounges provide an ambience reminiscent of a luxury hotel lobby, both in interior design and scale, and fit several hundred people at a time. “Lounges have certainly gotten busier, so we’ve expanded our footprint,” said Audrey Hendley, president of American Express Trav...
Is the Boom-and-Bust Business Cycle Dead?
Economy

Is the Boom-and-Bust Business Cycle Dead?

Associated media - Linked media The rise of international trade, Mr. Kelly added, can often offset slowing domestic demand since businesses, enabled by the internet, can find customers throughout the globe. And the service sector’s growth, he concluded, has “made the economy more stable and, importantly, less sensitive to interest rates.” Across the economics profession, many are not feeling as reassured. When weighing recession risks, Thomas Herndon, a professor of economics at John Jay College of the City University of New York, doesn’t take much long-term solace in the growing sophistication of big business. There are, he said, “many, many, many causes” for downturns — some of which are not directly linked to financial instability. Mr. Herndon noted the work of the 20th-century Po...
Soft Landing or No Landing? Fed’s Economic Picture Gets Complicated.
Economy

Soft Landing or No Landing? Fed’s Economic Picture Gets Complicated.

Associated media - Linked media Mr. Biden said on Wednesday that he stood by his prediction that the Fed would lower interest rates this year — an unusual comment from a president who usually avoids talking about Fed policy out of respect for the central bank’s independence from the White House. “This may delay it a month or so — I’m not sure of that,” Mr. Biden said. Many Fed watchers think today’s high rates could persist for considerably longer. Many economists and investors previously expected rate cuts to start in June or July. After this week’s inflation report, investors increasingly see rate cuts starting in September or later. Blerina Uruci, chief U.S. economist at T. Rowe Price, noted that the longer inflation flatlined, the more it could delay rate cuts: Officials are like...
The Worst Part of a Wall Street Career May Be Coming to an End
Economy

The Worst Part of a Wall Street Career May Be Coming to an End

Connected media - Linked media If they persevere, they move up the ranks to associate, then director and managing director; a handful end up running divisions. Although grueling, the life of a senior banker can be glamorous, involving traveling around the globe to pitch clients and working on big-money corporate merger deals. Many who get through the two-year analyst program have gone on to become business titans — the billionaires Michael Bloomberg and Stephen Schwarzman began their careers in investment banking — but a majority will leave before or after their two years are up, bank representatives said. There are jokes among junior bankers that the most common tasks of the job involve dragging icons from one side of a document to another, only to be asked to replace the icon over ...