FINANCIAL TIMES
-Alibaba has been accused of providing technology support for Chinese military operations against US targets, as outlined in a declassified White House national security memo. This memo contains "top secret" intelligence indicating that Alibaba supplies the People's Liberation Army (PLA) with capabilities perceived as a threat to US security. These claims have not been independently verified. The US is increasingly concerned about Chinese tech companies, particularly regarding cloud services, artificial intelligence, and their potential to access sensitive US data. Specifically, the memo states that Alibaba grants the Chinese government and PLA access to customer data, including IP addresses, WiFi information, and payment records, and has shared knowledge of software vulnerabilities, known as “zero-day” exploits. Alibaba has strongly denied these allegations, labeling them baseless and an attempt to discredit the company.
-Long before political turmoil, the beef market's foundation weakened due to climate change-caused dry spells in the US, impacting pasture quality and hay stocks. Many ranchers, facing high feed costs, sold cows early, leading to the smallest national herd since the 1950s. Live cattle imports from Mexico have been stalled due to a parasite discovery, with a million cattle awaiting crossing. Meanwhile, beef prices rise globally, exacerbated by increased fertilizer and feed costs in the UK and Ireland post-Russia's invasion of Ukraine, alongside droughts limiting forage. Cattle breeding's slow nature complicates herd rebuilding, requiring years to expand. Additionally, a 50% tariff on Brazilian imports has intensified pressures on the industry, further straining the supply against domestic demand.
-Apple is enhancing its succession planning as Tim Cook prepares to potentially step down next year after over 14 years as CEO. Discussions among the board and senior executives suggest John Ternus, the senior vice-president of hardware engineering, is a leading candidate for succession. The transition is not linked to the company's performance, which is anticipated to be strong during the upcoming holiday sales. A new CEO announcement is unlikely before late January's earnings report, allowing for a smooth transition before major events like the June developer conference and the September iPhone launch.
-Donald Trump announced plans to sue the BBC for $1B to $5B following their rejection of his compensation demand over a misleading edit of a 2021 speech. He claimed the BBC altered his words, asserting this was worse than CBS’s previous editing of comments made by Kamala Harris. The BBC apologized for the edit but maintained there is no basis for a defamation claim. Trump has also pursued legal actions against US media, including CBS and ABC, winning settlements totaling $31M.
-The billionaire commodities executive, Torbjörn Törnqvist, is pursuing a $22B acquisition of Russian oilfields and assets from Lukoil, despite recent US sanctions on the company. Attending the Adipec conference in Abu Dhabi, Törnqvist defended his actions as a means of distancing from Russia, claiming it represents a "clean break" from the past and not a favor to the Kremlin. He acknowledged the challenge of securing approval from Washington for the deal while facing speculation regarding his connections to Russian leadership.
-The US has authorized companies to negotiate the acquisition of Lukoil's international assets ahead of impending sanctions effective November 21. The Treasury has issued a license allowing negotiations until December 13, following the blockade of Gunvor's purchase efforts. Carlyle has expressed interest in the assets but has not yet conducted due diligence. The Treasury will likely reject any deal unless it ensures Lukoil is permanently cut off from its international business and funds are placed in blocked accounts. Lukoil recently announced plans to sell these assets shortly after the sanctions were imposed to pressure Russia for a ceasefire in Ukraine.
-US President Trump has reduced tariffs on various agricultural imports to lower grocery prices amid poor inflation ratings. An executive order exempts certain fruits, beef, cocoa, coffee, tea, spices, and some fertilizers from "reciprocal tariffs" enacted in April. This decision represents a significant reduction of previous tariff policies, aiming to alleviate consumer costs. The move follows a decline in Trump's approval ratings regarding the economy, currently at 41%, with 56% disapproval. The US Chamber of Commerce has endorsed this action and called for further similar measures.
-Porsche faces a $300M lawsuit from Florida dealership The Collection, which accused the German carmaker of using "strong-arm" tactics and withholding vehicle allocations after the dealer declined to build a standalone Porsche showroom. Attempts by Porsche AG to distance itself from the case were rejected by a Miami judge, with a trial set for March next year. The lawsuit highlights tensions between Porsche and US dealerships amid declining vehicle sales and a shift in EV strategy. Legal expert Sean Burstyn noted that the case reflects broader dealer-manufacturer relations in the US, given similar regulations nationwide.
-China's tomato paste exports to Italy have plummeted this year due to allegations of forced labor in Xinjiang and misleading origin labeling by some Italian firms. The increase in tomato cultivation in Xinjiang has not translated into sales, leaving a significant stockpile of unsold paste. The Italian farming association Coldiretti intensified efforts to protect local tomato products from cheaper Chinese imports. Francesco Mutti, CEO of an Italian ingredient maker, hailed the situation as a victory for local producers. Heightened scrutiny of the supply chain revealed that some companies mixed Chinese paste into products marketed as Italian, contributing to the current stockpile of 600,000 to 700,000 tonnes in China, roughly six months’ worth of exports.
-South Africa has achieved its first credit upgrade in 20 years as S&P Global Ratings raised the country’s sovereign rating to BB from BB-, primarily due to reforms and increased fiscal revenue. The agency's outlook is positive, indicating potential improvements in fiscal metrics and stabilization of government debt. This upgrade reflects a significant turnaround under President Cyril Ramaphosa, moving from a period of power blackouts and political crisis to structural reforms. The upgrade raises hopes for future upgrades from other agencies and potential restoration of investment-grade status. Additionally, rolling blackouts have been avoided this year, and Eskom, the state power company, has returned to profitability after previously facing losses and bailouts.
-New York Federal Reserve president John Williams held an unreported meeting with Wall Street dealers to address concerns over US money market strains. The meeting, occurring during the Fed’s annual Treasury market conference, aimed to gather feedback on the standing repo facility, an essential tool for managing short-term borrowing costs. Representatives from the 25 primary dealers participated, focusing on the facility’s effectiveness in monetary policy. A New York Fed spokesperson confirmed the discussion's intent to ensure continued efficacy in rate control.
-The divergence in oil demand forecasts from the International Energy Agency (IEA), OPEC, and the US Energy Information Administration (EIA) has reached 1.8M barrels per day, marking the widest gap in over two decades. This disparity, attributed to varying outlooks on global oil demand amid the transition to clean energy, reflects concerns over potential supply shortages from US sanctions on Russian oil firms alongside expectations of a long-term glut due to increasing US shale production. Brent crude prices have fluctuated, peaking at $82.63 per barrel in January before dropping to approximately $64 per barrel by Friday.
NEW YORK TIMES
-The Trump administration is intensifying its pressure on Venezuela, positioning the USS Ford aircraft carrier within striking distance. President Trump has been reviewing military options over two days, including Special Operations forces, though it remains unclear what action he plans to authorize. Trump's statements suggest he has made some decisions regarding Venezuela, emphasizing progress in drug control. Meanwhile, Venezuelan President Nicolás Maduro has put his forces on high alert. An aggressive stance is noted with the naming of the operation "Southern Spear," aimed at removing "narco-terrorists" from the region, and significant military presence includes 15,000 troops and accompanying naval forces.
-On Friday, Mr. Trump reiterated unfounded claims about investigations into Democrats linked to Mr. Epstein, downplaying Epstein's mentions of their relationship. On a flight to Florida, he stated their relationship was negative, instead urging inquiries into what Epstein knew about Bill Clinton and other figures. Contrarily, Ms. Bondi's decision to continue the investigation contrasts with a previous memo from the Justice Department, which found no basis for further inquiries. Trump’s comments, which named Clinton, Larry Summers, and Reid Hoffman, prompted a rebuttal from Clinton's spokesperson claiming it was a distraction. Hoffman urged Trump to release all Epstein files to refute allegations of political persecution. Trump also called for investigations into JP Morgan amid findings of the bank’s longstanding ties with Epstein.
-When President Trump called for an investigation into ties between Jeffrey Epstein and prominent Democrats, US Attorney General Pam Bondi appointed Jay Clayton, a Trump ally and head of the Manhattan U.S. Attorney's office, to oversee the politically sensitive assignment. Clayton, a seasoned corporate lawyer without prior prosecutorial experience, must navigate the political implications of this order while upholding the independence of his office. Former Manhattan District Attorney Cyrus R. Vance Jr. believes Clayton will not compromise the integrity of the office to satisfy presidential demands. As Clayton's tenure progresses, his handling of this directive will be a critical test of his role and the office's autonomy.
-President Trump has severed ties with Representative Marjorie Taylor Greene, who was once one of his staunch allies. Greene has diverged from Trump, particularly by advocating for the release of documents related to convicted sex offender Jeffrey Epstein. In a recent social media post, Trump announced he is withdrawing his support for her, criticizing her for constantly complaining and labeling her as a nuisance. He noted that despite previously defending her against criticisms over her conspiracy theories, he can no longer engage with her, citing the demands of his other responsibilities and connections.
-The Trump Organization is negotiating to potentially brand a property in a major Saudi real estate development, as announced by Jerry Inzerillo, CEO of the project. This represents an ongoing trend of President Trump intertwining governance with his family business interests, especially in Gulf countries. Upcoming discussions with Crown Prince Mohammed bin Salman in Washington may link national security matters with Trump's business endeavors, as the prince oversees a $63B transformation of Diriyah into a luxury hub. Inzerillo indicated that a deal with the Trump Organization is likely imminent.
-In late 2024, following the U.S. presidential election, Saudi real-estate firm Dar Global announced significant plans involving the Trump brand, aiming to develop at least three new projects in Saudi Arabia in partnership with the Trump Organization. This collaboration has positioned Dar Global as the Trump Organization's most crucial international partner, contributing $21.9 million to the Trump family business last year. The firm, linked to one of Saudi Arabia’s largest developers, has leveraged the Trump name for global recognition and recently opened a U.S. office in Trump Tower. CEO Ziad El Chaar indicated future projects in Saudi Arabia amidst extensive government development initiatives.
-After allegations of institutional bias due to misleading edits of President Trump's speech, BBC executives quickly prepared a public statement admitting fault regarding footage manipulation from January 6, 2021. However, internal disagreements prevented timely communication, leading to seven days of silence during which criticism escalated, culminating in the resignation of BBC's director general Tim Davie and news chief Deborah Turness. The incident sparked significant debate about the BBC's perceived bias and has implications for its funding and legal standing, amidst threats of lawsuit from Trump. This account draws from interviews with multiple BBC employees and public documents.
-Last month, Tucker Carlson's interview with white nationalist Nick Fuentes created significant upheaval within the Trump-era conservative movement. Carlson subsequently took a break for bird hunting, during which he expressed indignation and unrepentance regarding the controversy. He controversially stated, "Israel does not matter," dismissing its strategic importance and contradicting longstanding presidential views. Carlson also expressed confusion over the backlash against Fuentes, questioning why critiques from conservative commentator Ben Shapiro, who labeled Fuentes as antisemitic, were seen as significant.
-Three winters of Russian attacks on Ukraine’s power grid have forced Ukrainians to adapt to living without electricity. As blackouts continue, families turn to power banks and headlamps for light, with some seeking refuge in malls to recharge devices. However, with expanding Russian strikes targeting gas infrastructure, there are fears of losing essential heating and cooking sources. Gas supplies have been crucial during the winter, and officials warn that this could be Ukraine's harshest winter yet, as 80% of households depend on gas for heat and cooking.
-The young Chilean president Gabriel Boric, who was elected at 35 amid social unrest and promised significant reforms like social justice and affordable housing, initially energized young voters and was a symbol of progressive politics in Latin America. However, as his term nears its end, support has dwindled, and Chile faces national elections with a right-wing candidate, José Antonio Kast, favored to win. Despite Boric's early promise, the political landscape appears to be shifting rightward.
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NEW YORK POST
-A $20M defamation lawsuit filed by IRS whistleblowers Gary Shapley and Joseph Ziegler against Hunter Biden's attorney Abbe Lowell reached a settlement. The lawsuit, initiated in September 2024, accused Lowell of defaming the IRS employees by claiming they illegally leaked private tax information about Hunter Biden. Although a federal judge dismissed the case last month, the whistleblowers considered an appeal. The settlement included an acknowledgment from Lowell that Shapley and Ziegler were authorized to disclose otherwise confidential tax information to Congress and that they believed they acted in good faith, not disclosing any confidential information.
-New York City's socialist Mayor-elect Zohran Mamdani is calling for a boycott of Starbucks as its workers go on strike nationwide over unfair labor practices. Mamdani, a pro-union advocate, encourages his followers to avoid buying Starbucks products, stating, "No contract, no coffee." His transition spokesperson emphasized that he will support labor unequivocally. The strike coincides with "Red Cup Day," a significant sales event for Starbucks, though the company reported that nearly all its stores remained open.