Weekend Papers Summary
FINANCIAL TIMES
-Donald Trump raised $12M at a fundraiser for venture capitalists and entrepreneurs in San Francisco, marking a significant sign of his inroads in the Democratic stronghold. The event, hosted by Silicon Valley investor David Sacks, took place at his $20M mansion on "billionaire's row" in the city's Pacific Heights district. Trump spoke on artificial intelligence, energy, and crypto, causing a "wild moment" in Silicon Valley politics. The event, which cost between $50,000 and $300,000 a head, revealed the extent to which some Silicon Valley luminaries are warming to Trump as they worry over issues such as free speech, technology regulation, and taxes.
-President Joe Biden urged voters to "stay true to what America stands for" and to draw on the bravery of US forces to protect and uphold democracy in an address commemorating the 80th anniversary of D-Day. Standing on the cliff at Pointe du Hoc, Biden invoked the spirit of the US Rangers who stormed the Normandy coast in 1944. He emphasized the need to stand up for democratic rights both in the US and abroad, referring to Trump as a threat to democracy after the January 6 2021 attack on the US Capitol. Biden urged Americans to protect freedom, defend democracy, stand up against aggression abroad and at home, and refuse to believe that America's greatness is a thing of the past.
-Tesla has filed a court filing claiming that a proposed $5.2B award for lawyers who challenged Elon Musk's pay package is the highest hourly rate in history and they deserve only $13.6M. The lawsuit was filed after a Delaware court ruled that a proposed $56B pay package for Musk was improperly approved and had short-changed shareholders. Tesla argued that the award, initially valued at $5.6B, would be 17 times larger than any fee in Delaware legal history and equal to the state's entire 2024 budget. The sum would collectively make Bernstein Litowitz and two supporting law firms a top-three Tesla shareholder.
-Denmark's Prime Minister Mette Frederiksen was assaulted in a central Copenhagen square during the European election campaign. The 39-year-old man was arrested and is set to appear in court on Saturday. The incident is unclear whether it took place during a campaign event for her Social Democrats party or as part of a private outing. Politicians from Denmark's political spectrum condemned the attack, with Morten Løkkegaard, lead candidate for the governing center-right Liberal party, stating that violence and assaults undermine public debate and democracy. The incident has left Frederiksen "in shock" and sparked condemnation from politicians across the political spectrum.
-Jensen Huang, the CEO of Nvidia, made a high-profile entrance at the annual Nvidia conference, attracting attendees who abandoned overcrowded coaches to attend his speech. Huang's investment in artificial intelligence chips and software has made Nvidia one of the world's most powerful companies, with its market value briefly rising above $3tn. He is on the cusp of becoming a household name, joining Elon Musk and Mark Zuckerberg as tech CEOs the public can recognize. Huang co-founded Nvidia in 1993 and has been at the helm for over three decades, making him one of the last remaining founder-CEOs in Big Tech.
-Rishi Sunak's decision not to attend a D-Day commemoration on Omaha Beach has been criticized by many Conservative candidates, who have already faced electoral oblivion. Some have compared Sunak's decision to other recent British election fiascos, such as Gordon Brown's unguarded description of a voter and Theresa May's infamous "dementia tax" plan. Sunak had spoken at a commemoration event at the British Normandy Memorial earlier on Thursday. By the afternoon, Sunak had disappeared, and Lord David Cameron, the British foreign secretary and former prime minister himself, posed alongside Biden, Macron, and German chancellor Olaf Scholz for photos that immortalized his absence.
-Mexico's leftwing ruling party Morena has won a landslide victory in presidential, congressional, and state elections, with President-elect Claudia Sheinbaum and Morena now poised to push through radical changes to the constitution after greatly increasing its majority in congress. Sheinbaum won more votes than Gálvez across genders, age groups, and in every state but one, but business owners and employers favored Gálvez. In the wealthiest enclaves, support for the opposition coalition and a loathing for outgoing President Andrés Manuel López Obrador is the norm. Some wealthy Mexicans struggled to understand how so many fellow citizens could vote for a political movement they view as responsible for scaring off investment, attacking democracy, and allowing organized crime.
-India's six-week election saw Prime Minister Narendra Modi re-elect his Bharatiya Janata party and its allies to a third five-year term. Modi criticized the opposition and its leader, Rahul Gandhi, calling them casteist, communal, and corrupt. Exit polls showed the BJP and its National Democratic Alliance partners heading for a victory, possibly even a 400-seat supermajority in the 543-seat parliament. However, the results were humbling, as voters handed Modi an unprecedented electoral upset, a magnitude unseen in years.
-The US labor market saw a 272,000 job gain in May, exceeding forecasts, indicating a potential Federal Reserve rate cut. President Joe Biden praised the "great American comeback" in jobs, stating that unemployment has been at or below 4% for 30 months, the longest stretch in half a century. Employers have consistently maintained hiring, despite interest rate increases that have raised borrowing costs to their highest for over two decades. However, voters have been hesitant to credit the president for the economy's performance, and interest rate cuts could potentially strengthen Biden's electoral prospects. The chances of a rate cut at the Fed's mid-September meeting fell from 81% to 57%.
-Germany's Allianz has pleaded guilty to investment adviser fraud, following a $6B settlement between the two countries. Gregoire Tournant, the former lead manager of Allianz Global Investors, pleaded guilty to two counts of fraud, each carries a maximum sentence of five years in prison. The scandal sparked doubt over Allianz's control functions and led to an apology from its chief executive. Tournant and two other managers lied to investors, secretly exposed them to risk, and sent victims altered risk reports. The guilty plea was the culmination of a multiyear investigation and prosecution.
-The Gaza Strip has experienced a significant increase in prices for basic goods following the closure of its border crossing with Egypt. The wartime scarcity has led to a surge in prices for cigarettes, vegetables, frozen meat, medication, petrol, and cooking fuel, with some items now costing dozens of times more than before Israel's war with Hamas began. The situation worsened last month after Israel's military offensive in Rafah, seizing a key border crossing with Egypt and targeting smuggling tunnels. The cost of frozen chicken thighs has risen to $20, cooking gas costs $35 a kilo, car batteries cost over $500 each, and petrol costs $22.
THE NEW YORK TIMES
-Benny Gantz, a centrist member of Prime Minister Benjamin Netanyahu's Israeli war cabinet, has threatened to resign amid disagreements over the war in Gaza. Gantz has said he would quit by Saturday unless his concerns about the war's end and what would follow were addressed. Last month, Gantz said he would resign by Saturday, though there was no public indication of whether he would follow through. If he departs, it is unlikely to force Netanyahu from office. Gantz and his party have not been part of the prime minister's right-wing governing coalition, which has a majority of 64 seats in Israel's 120-member Parliament.
-The Israeli military has killed dozens of militants in central Gaza, including some who had hid in a former United Nations school. The military targeted Hamas fighters at a school compound in Shati, a coastal neighborhood northwest of Gaza City's downtown. The number of casualties is unclear. The Israeli military accused Hamas of systematically, intentionally, and strategically placing its infrastructure and operating from within civilian areas in violation of international law, while putting the lives of Gazan civilians at risk. The Israeli military pushed ahead with its offensive in central Gaza, claiming that Hamas systematically, intentionally, and strategically places its infrastructure and operates from within civilian areas in full violation of international law.
-The Biden administration has tightened vehicle fuel mileage standards as part of its strategy to combat climate change. The new measure requires automakers to achieve an average of 65 miles per gallon for all car models they sell by 2031. The move is part of a larger effort to transform the American auto market into one dominated by electric vehicles that do not emit pollution. The Transportation Department announced the new standards as part of several regulations the administration is using to encourage carmakers to produce more electric vehicles. The 2022 Inflation Reduction Act, championed by Biden, provides tax credits for buyers of new and used electric vehicles, incentives for charging stations, and grants and loans for manufacturers.
-Justice Clarence Thomas has included luxuries in his financial disclosures, including trips to Indonesia and a secretive all-male club in Northern California. Other Supreme Court justices have also disclosed their gifts, travel, and money earned from books and teaching. Justice Ketanji Brown Jackson received four concert tickets valued at $3,700 from Beyoncé and $10,000 of artwork from Alabama artist Lonnie Holley. The financial disclosures are one of the few public records available about the justices' lives, providing details of their activities outside the court. Justices can earn outside, uncapped money through books, with Justice Jackson reporting $893,750 from an advance for her memoir, Justice Neil M. Gorsuch listing a book advance of $250,000. Justice Brett M. Kavanaugh disclosed a $340,000 advance for his legal memoir.
-Senate Democrats are facing increased pressure from the left for inquiries into ethical questions at the Supreme Court due to the court's independent status and Republican opposition. Advocacy groups and progressives are calling for more aggressive action after Chief Justice John G. Roberts Jr. rebuffed a plea to require Justice Samuel A. Alito Jr. to recuse himself from pending cases related to the Jan. 6 assault on the Capitol and Donald J. Trump's immunity. A coalition of liberal groups and House Democrats urged the Senate to open an investigation into Alito's actions.
-Hunter Biden is on trial for gun charges, but the Biden women have been forced into an uncomfortable spotlight. The women called to testify have tried to support and protect the troubled husband, father, and son, who has a ruinous history of addiction. The women who didn't speak sat in the courtroom, playing parts of nurturers and sentinels. Naomi Biden Neal, Hunter Biden's eldest daughter, testified on his behalf on Friday. She described a period in October 2018 when drug addiction was again overtaking her father's life. That month, Hunter Biden had bought a gun and filled out a federal form attesting that he was not using drugs, a decision that is at the heart of the prosecution's case against him.
-President Emmanuel Macron of France highlighted the "bond of blood shed for liberty" that connects his country to the United States, dating back to the founding of the United States in 1776 and French support for American independence against the British. Despite tumultuous times and tensions between Paris and Washington, the ties between the two countries remain resilient. President Biden's five-day stay in France, an unusual visit for an American president, demonstrates the strength of this friendship, but also highlights the tension between French gratitude for American sacrifice and Gaullist restiveness.
-France has found a mild-mannered insurgent in 28-year-old Jordan Bardella, the president of the National Rally. Bardella, a disciple of Marine Le Pen, is known for his strong-jawed TikTok star and love of candy. As European Parliament elections approach, Bardella is poised for a victory that could reshape French politics. An IPSOS poll published this past week gave the National Rally 33 percent of the vote, more than double the 16 percent of President Emmanuel Macron's centrist Renaissance party. As the European Parliament elections approach, Bardella's victory could reshape French politics.
-The Washington Post's new publisher, Will Lewis, has defended the newspaper's coverage of British phone hacking, arguing against it. Lewis, who previously served at The Wall Street Journal, has invited renewed scrutiny of the scandal. In 2011, News Corporation faced a significant threat in Britain when reporters at one of his tabloid newspapers were exposed for hacking the phones of celebrities, private citizens, and a murdered child for information. Other misdeeds emerged, including the revelation that tabloid reporters had paid for information from police officers and government officials for years. In response, News Corp tapped Lewis to clean up the mess and appease prosecutors in Britain and abroad.
-Alex Jones, the founder of Infowars, is seeking bankruptcy to liquidate his personal assets and deliver the proceeds to the Sandy Hook families who are owed over $1.4B in damages for his lies about the 2012 school shooting. Jones also filed a separate bankruptcy for his company, Free Speech Systems, which is set to be liquidated. This would shutter Infowars and place assets from Infowars' studios and potentially Jones' social media accounts in control of the families. Silencing Jones would be a definitive win for the families, who claim he has profited from the lies and fear he spreads on Infowars.
-Frank Stronach, the 91-year-old founder of Magna International, has been arrested and charged with sexual assault in connection with a sexual assault investigation. The police force for Peel Region, outside Toronto, stated that the time frame of crimes alleged against Stronach spanned from the 1980s until last year. Stronach was charged with offenses including indecent assault, sexual assault, and forcible confinement. The Austrian-born founder of Magna International was released after being charged and will appear later at a court in Brampton, Ontario.
-Italy has been hailed as the home of opera, with a star-studded concert at Arena di Verona on Friday night. The concert was a public acknowledgment of opera's cultural impact around the world, broadcast worldwide from the ancient Roman amphitheater that draws tens of thousands of opera lovers each summer. The concert featured sweeping overtures, heart-wrenching arias, and an oversize orchestra and choir backing A-list soloists. The conductor, Riccardo Muti, said that opera's "great masterpieces are our heritage, and we Italians have given them to the world." The concert was attended by President Sergio Mattarella of Italy and Prime Minister Giorgia Meloni, as well as fashion glitterati, opera fans, and dozens of ambassadors from countries where opera is loved. The addition to the list by UNESCO was a coup of sorts for Italy's conservative government, whose culture minister, Gennaro Sangiuliano, has made it his mission to exalt Italianness.
THE NEW YORK POST
-NATO is establishing "land corridors" at European ports to allow US troops and allied forces to reach the front lines quicker in case of a broader European ground war with Russia. This follows warnings from NATO leaders earlier this year urging Western governments to prepare for a full-blown war with Russia in the next 20 years. The newly established troop expressways would see American soldiers landing at one of five designated ports. The new routes will expand on existing arrangements since last year's summit in Vilnius, Lithuania. US forces will land at ports in The Netherlands before being transported through Germany and Poland by train.
-GameStop's shares fell 39% on Friday due to a wider-than-expected sales drop and a failed YouTube livestream from retail investor "Roaring Kitty." The company reported net sales of $881.8M in the quarter ended May 4, compared to $1.24B a year earlier. This was worse than Wall Street expected, with analysts predicting sales of $900M to $1.09B. GameStop's net loss narrowed to $32.3M, compared to $50.5M a year earlier. The company plans to raise over $3B by selling up to 75M shares.