WSJ : Tequila, Drugs and Torture: The Spending Binge of Two Crypto Bros That End

Tequila, Drugs and Torture: The Spending Binge of Two Crypto Bros That Ended Behind Bars
William Duplessie and John Woeltz hatched grandiose plans in business and politics but instead drew charges in an alleged kidnap scheme

A private jet lifted off on a night in February, ferrying a media heir, fashion models and a mix of thrill-hungry luminaries from Palm Beach, Fla., to a novel redneck retreat in Smithland, Ky., population 237.

For the guests, Smithland sat in the middle of nowhere, at a bend of the Ohio River, in a county where most liquor sales are banned. That wasn’t a problem. The plane was stocked with Dom Pérignon Champagne. One of the hosts, William Duplessie, doled out caviar en route.


Duplessie, a 33-year-old college dropout and crypto investor, and his co-host John Woeltz, 37, a cryptology and cybersecurity specialist from Paducah, Ky., had set out to ingratiate themselves with members of some of the wealthiest, most influential families in America.

The two men were on a mission that, whatever it was at the start, disintegrated into a weekslong binge of cocaine, booze and spending. It ended in May with arrests and allegations of kidnapping and torture within the posh confines of a $75,000-a-month rental in Manhattan, according to witnesses and courtroom testimony.

Duplessie and Woeltz had money to burn, alleged winnings from cryptocurrency endeavors that they spent at a breakneck pace on guns, drugs, real estate and entertainment. In January, they bought a house in Smithland, where $1.5 million went a long way: a furnished six-bedroom mansion with black marble floors, chandeliers, winding staircases and a swimming pool on nearly 2 acres. That was where the Palm Beach crowd gathered in February.

Party guests donned camouflage fatigues and played with military-style guns, night-vision goggles and a six-wheel off-road vehicle around the snowy property during the two-day bacchanal.

Duplessie and Woeltz claimed to have a trove of crypto capital ready to invest, a lure for some guests who joined the trip. One acquaintance said the men talked up plans to buy land and develop western Kentucky’s economy, investing in hydroelectric dams and a luxury hotel. Duplessie, who had the state seal tattooed on his chest at some point during the festivities, was weighing a long shot bid for the Senate seat of former Majority Leader Mitch McConnell (R., Ky.).

Then the good times dissolved into a paranoid nightmare.

The two men, who were going through cocaine by the pile, told guests they were more than just crypto investors. They claimed they met while working with U.S. intelligence services on clandestine crypto-related missions, hunting terrorists. Duplessie and Woeltz bragged they had recently abducted a German man they described as a terrorist, saying they killed him after stealing his cryptocurrency, according to people on the trip.

Duplessie and Woeltz typed messages on the dozens of typewriters scattered around the house, saying they feared they were under surveillance by the Chinese government, a guest said. One recalled Duplessie putting a gun to the head of his personal chef.

Nobody knew what to believe about their hosts until three months later.

On May 23, a 28-year-old cryptocurrency trader from Italy ran shoeless and bleeding from Duplessie and Woeltz’s eight-bedroom townhouse in Manhattan and begged a New York City traffic cop for help. He said the men had held him for more than two weeks, using torture to try to pry loose passwords to his cryptocurrency accounts. They dangled him from the top of five flights of stairs, threatening to kill him if he didn’t cough up a ransom, the man alleged in a criminal complaint.

Lawyers declined to comment on behalf of Duplessie and Woeltz, who have pleaded not guilty to charges of assault, kidnapping and coercion. If convicted, they could face life in prison.

This article is based on court records, phone recordings, government records, emails, photographs and text messages reviewed by The Wall Street Journal, as well as interviews with people who spent time with Duplessie and Woeltz in New York, Kentucky, California and Florida.

Opposites attract
Duplessie and Woeltz, who told an acquaintance they met online several years ago, were raised in blue and red states, respectively, and appeared to have little in common except an interest in making a killing in crypto.

Duplessie grew up in Connecticut as a child of privilege, the son of a prominent hedge-fund manager. He studied business at Tulane University from 2015 to 2016 but didn’t graduate. Friends and acquaintances called him energetic and gregarious. He drove Porsche and Lamborghini sports cars, sometimes dangerously fast, and collected speeding tickets, according to court records and one of his friends.

In 2017, he briefly dated Caroline Biden, former President Joe Biden’s niece, another big-name connection, according to a friend from California. Duplessie called Biden to say she looked “hot” in courtroom photos, the friend said. She allegedly spent $110,000 on a friend’s credit card without permission and pleaded guilty to a misdemeanor.

Duplessie was part of a growing collection of cryptocurrency entrepreneurs in Lugano, Switzerland. For three years, he ran a Luxembourg-based crypto investment fund with his father that initially raised $22 million, according to a 2019 announcement. The fund began liquidating in 2022 after a legal fight over performance fees.

He returned to the U.S. that year, to a rental apartment in Miami, and was later sued by a landlord and a luxury car rental company for missing payments. One suit was settled, and the other resulted in a default judgment against him, court records show.

Woeltz grew up in Paducah, the son of a neurologist and a microbiologist. He was a gifted student who graduated from University of Kentucky in 2012 before moving to California with a budding interest in cryptography and cybersecurity.

He was drawn to open-source cryptocurrency projects designed to let users transact anonymously. The most prominent, a “privacy coin” called Grin Coin, grew out of a joint effort by developers who often used pseudonyms from the Harry Potter series. Woeltz’s shy, soft-spoken personality seemed to reflect his interest in anonymous transactions.

Duplessie—6-foot-5, 220 pounds—was a looming, raucous presence at parties and nightclubs. Woeltz, a shorter, more slender man, often sat quietly in a corner wearing sunglasses, according to people who socialized with both men.

Owning Manhattan
Weeks after buying the Kentucky mansion, Duplessie and Woeltz landed in New York, where they racked up six-figure bills staying at luxury hotels. They ate in high-end restaurants and dropped huge sums for private tables and bottle service at nightclubs.

In March, they told acquaintances they were booted from the five-star Aman Hotel on 5th Avenue and West 57th Street, a neighborhood known colloquially as Billionaires’ Row. They sought help finding a more permanent residence from Jessica Markowski, a luxury real-estate agent and star of the Netflix reality show “Owning Manhattan.”

Duplessie and Woeltz leased an eight-bedroom brick townhouse in Manhattan’s swanky Nolita neighborhood. One advertised feature: soundproof stone walls more than a foot thick.

Duplessie took a bedroom on the second floor, and Woeltz took the fourth floor. The third floor was an office. They talked about turning the basement into a nightclub. They hired staff, including young women as personal assistants. For security, they hired a moonlighting New York City detective who worked on Mayor Eric Adams’s protection detail.

To decorate the house, the men sought help from Palm Beach- and New York-based art consultant Peter Brant Jr., the son of billionaire Peter Brant and supermodel Stephanie Seymour. Brant Jr. went to see their townhouse and steered his new clients to decorators and art galleries, which paid him a commission, according to a person familiar with the deals.

Duplessie and Woeltz dropped about $400,000 on furniture and artwork, the person said.

Never mind
A little more than a week before the party plane to Smithland, a Holiday Inn clerk in nearby Paducah called 911 for help. A German-speaking guest, the clerk said, shared alarming text messages from her son, who was visiting the U.S. from Switzerland.

“In English, it’s saying, ‘They don’t want to let me go, bitcoin,’” the clerk said, relaying the texts after running them through a phone translator. “‘Need help, they are armed to the brim.’”

The mother said her son, Michael Mauer, went to see a friend named John in Smithland, on Birdsville Road—the street where Woeltz owned a smaller house. Woeltz had worked with Mauer on the Grin Coin project five years earlier.

As the 911 dispatcher coordinated a police response, she dished with the dispatcher in neighboring Livingston County, where Smithland is located, according to the 911 recordings. “This isn’t the first call we’ve had with Mr. John or Mr. William,” the Livingston dispatcher said.

“This is not what I’d expect for a typical Sunday night in Livingston County,” the Paducah dispatcher said.

“When they moved to town, nothing’s been typical,” the Livingston dispatcher responded.

Not long after, Mauer called his mother to say he had been released. He walked to an intersection in Smithland where he was met by an officer. Mauer didn’t respond to requests for comment.

Electioneering
Scott Hernandez, 37, met Duplessie and Woeltz on the party plane to Smithland in February and brought with him impressive political connections.

Hernandez spent several years at investment bank Barclays, where he worked with former Florida Gov. Jeb Bush, according to two people familiar with the matter. Hernandez’s mother is a major Republican donor and fundraiser who backed the presidential campaigns of Bush, Texas Sen. Ted Cruz and President Trump.

Hernandez’s father ran the Spanish-language media company Telemundo before its $539 million acquisition by Sony and Tele-Communications in 1997. In the years since, he has served on the boards of Fox Corp., MGM Resorts International and Walmart. Fox and the Journal’s parent company, News Corp, share common ownership.

After the Smithland trip, Hernandez joined Duplessie and Woeltz for a few nights out in New York, where Hernandez lived. Duplessie told Hernandez about his idea of seeking McConnell’s Senate seat in the 2026 midterm election.


n Duplessie’s behalf, Hernandez contacted Betsy Ankney, a Republican campaign strategist who ran former South Carolina Gov. Nikki Haley’s 2024 presidential bid. Hernandez didn’t know Ankney, but she agreed to meet with Duplessie on the strength of Hernandez’s family ties.

On March 7, Ankney emailed a tentative plan for Duplessie to strengthen his public profile. It included weekly media training sessions and appearances at the Kentucky Derby and other state events. Duplessie talked about plans for what he called the Wildcat Fund, which would buy distressed land and assets from Chinese investors in Kentucky and other heartland states. Acquaintances said Duplessie and Woeltz often expressed hostility toward China.

Like Duplessie’s blockchain fund, the Wildcat Fund would potentially trade on the reputation of his father, James Duplessie, who was listed as the fund’s chief investment officer in a draft document. The elder Duplessie didn’t respond to requests for comment.

Ankney thought the notion of a “young self-made crypto billionaire buying back land from China” might yield political returns among conservatives, according to her memo.

During Ankney’s second of two meetings with Duplessie, she visited the Nolita townhouse, still bare beyond the bar stools and trays of fruit, meat and cheese sitting on counters. Duplessie was polite but seemed unfocused, tapping away at an iPad and chain smoking.

Duplessie told Ankney that he and Woeltz planned to turn the townhouse basement into a nightclub. She said that if he was serious about running for office, he should avoid flashy nightlife altogether. Ankney charged $30,000 for her initial services, and Duplessie asked whether she would accept cryptocurrency. She declined.

The consulting arrangement lasted less than a month. By late March, Ankney stopped hearing from the two men and assumed they had lost interest.

Brant Jr. cut ties with Duplessie and Woeltz after the two men were late on a $100,000 payment to a luxury furniture supplier he had referred them to, said a person familiar with the matter. Hernandez also distanced himself, deciding they were big on ideas they couldn’t sustain.

Yet Duplessie and Woeltz ascended in the New York social scene, snagging seats at a star-studded Met Gala afterparty on May 5, hosted by nightlife kingpin Richie Akiva. They were among the A-list guests at the soiree, including Stevie Wonder, Leonardo DiCaprio and Mayor Adams. Akiva didn’t respond to requests for comment.

‘That’s not torture’
The day after the Met Gala party, Michael Valentino Teofrasto Carturan landed in New York. Carturan had introduced Duplessie to Woeltz, according to prosecutors. Carturan told his family he wanted to sightsee and practice his English on the trip. He was picked up by one of Duplessie and Woeltz’s security guards and driven to the Nolita townhouse.

There are two versions of what happened next: One from Carturan and prosecutors, another from lawyers representing Duplessie and Woeltz.

Prosecutors said Woeltz and Duplessie had been threatening Carturan and his family for months, and that they had forced him to transfer cryptocurrency to them on an earlier visit. His May trip had been arranged with the promise of retrieving some of the crypto they had taken, they said.

Duplessie and Woeltz took away Carturan’s electronic devices and passport as soon as he arrived at the townhouse, Carturan told authorities. They put an Apple AirTag around his neck to track his movements and bound his hands. Then the torture started, prosecutors allege.

Carturan claimed Duplessie and Woeltz beat him, shocked him with electric wires and cut his leg with a small electric chain saw, according to court papers. Prosecutors said in court that the two men doused Carturan with tequila and set his clothes on fire. They put out the fire by urinating on him, prosecutors said. No burns were found on Carturan’s body, they said.

Wayne Gosnell, Woeltz’s attorney, said the flames may have been startling but were harmless. “That’s not torture, that’s a prank,” Gosnell said at a July 23 bail hearing in New York.

Carturan told police Duplessie and Woeltz took photos trying to show that Carturan wasn’t a captive. Police found T-shirts printed with a photo showing Carturan with a crack cocaine pipe in his mouth. At times, he said he was unbound but told if he escaped, the men would track him down and kill him and his family.

In court hearings, defense attorneys for Woeltz and Duplessie said Carturan had been seen going to church services, dinners, nightclubs and stores. Carturan came to New York to join Woeltz and Duplessie’s business ventures as well as their libertine lifestyle, according to the lawyers. “And it was quite a lifestyle,” Gosnell told the judge at the July 23 hearing. He described it as “a frathouse with essentially unlimited funds,” and Carturan a “pledge” who was willing to undergo a hazing to join.

Prosecutors cited text messages from employees at the house saying Carturan was under constant surveillance and could be put in a cage if he left a room without permission. Defense attorneys said the texts, which were read aloud in court, lacked context and should be taken as jokes.

Carturan told investigators that on May 23 he agreed to reveal his passwords after being pistol-whipped and dangled from a multistory stairwell. When Woeltz left the room to retrieve Carturan’s laptop, Carturan saw a chance to escape and sprinted out of the house.

Police found blood evidence in spots where Carturan said he had been tortured, photos of Carturan with a gun pointed at his head, as well as crack cocaine, body armor, night-vision goggles and a loaded pistol. Prosecutors said police found fake documents that purported to charge Carturan with violations of the antiterror Patriot Act statutes.

Weeks later, federal agents searched the mansion in Smithland as well as Woeltz’s nearby home. They found what prosecutors described as a manifesto explaining how they would use psychological warfare techniques to gain the trust of foreigners and seize their cryptocurrency.

“We will take crypto and bitcoin from evil people that are using it to fund terrorism,” according to prosecutors who read aloud portions of the document at the bail hearing.

Duplessie and Woeltz were granted permission to be released on bail from New York’s Rikers Island jail complex and await trial under house arrest. Bail was set at $1 million each. On Thursday, Woeltz was fitted for an ankle monitor and walked from the courthouse.

Duplessie, who in his political plan was to launch his Senate campaign in July, remained in custody.

FT : European bank shares hit highest levels since 2008

European bank shares hit highest levels since 2008
A surge in long-term interest rates and economic optimism has lifted the region’s lenders

Shares in Europe’s biggest banks climbed to their highest levels since the global financial crisis this week, as a sharp rise in long-term interest rates fuels bumper earnings. 

Big banks have enjoyed a renaissance, with London-listed shares in HSBC hitting a record high ahead of results this week while Barclays and Santander also reached their highest levels since 2008. Italy’s UniCredit touched its highest since 2011.

The rally marks a turnaround for one of Europe’s most unloved sectors, which has struggled to recover from past crises and compete with US peers.

“Europe’s banks have shifted from pariah status to market darlings,” said Justin Bisseker, European banks analyst at fund manager Schroders.

A combination of the “transformative impact on revenues of higher interest rates”, a benign economic environment and measures to improve efficiency had lifted the lenders, Bisseker added.

While HSBC’s shares receded to their highest level since 2001 after the bank failed to meet analyst expectations in its second-quarter results on Wednesday, and bank stocks dropped sharply on Friday after US President Donald Trump hit dozens of countries with tariffs, banks on Europe’s benchmark Stoxx 600 index are still up 34 per cent so far this year. That is ahead of their US peers, narrowly ahead of their 2021 return and on track for the strongest showing since 2009.


Investors have been encouraged to pile into European banking stocks by growing economic optimism in the region, improving prospects for their loan books, as well as valuations that are below US stalwarts such as JPMorgan Chase and Goldman Sachs. 

Many European banks have only recently seen their valuations return to book value, compared with 2.4 times book value for JPMorgan and twice book value for Goldman, according to data from FactSet.

Banks “are cheap and uniquely positioned for a pick-up in domestic demand,” said Luca Paolini, chief strategist at Pictet Asset Management.

European banks, which were undercapitalised in the run-up to the financial crisis, spent the years after it building up capital buffers imposed by regulators, which restrained shareholder payouts. Meanwhile, a decade of near or below zero interest rates made it difficult for lenders to make money. 

That changed after the Covid pandemic as central banks began to increase interest rates to tackle inflation, and reversed their vast bond-buying programmes. 

Long-term interest rates have risen quickly, with 30-year German bond yields now 1.3 percentage points above two-year yields, where just two years ago they were lower. In the UK, the gap is above 1.5 percentage points.

This has led to a substantial rise in banks’ net interest income — the difference between what they earn from loans and other assets and what they pay for deposits — which has been a key driver of profitability. Those with trading operations have benefited this year from a surge in market volatility from Donald Trump’s economic policies.

Whether European banks can continue their run without the benefit of rising long-term rates is untested. Lenders have bulked up businesses such as wealth management to help insulate them from movement in interest rates, but political resistance to mergers such BBVA’s bid for Sabadell and UniCredit’s tilt at BPM are viewed as limiting the sector’s growth potential.

Francesco Sandrini, global head of multi-asset strategies at Amundi, said “banks appear the cleanest shirt in the basket” but that there was “a growing feeling the best may be past”.

“Long-awaited sector consolidation is far from the catalyst that many analysts have hoped for,” he added.

Investors are quick to point out that European banks are still trading at 10 times forward earnings, compared with more than 13 times for their US peers, according to Bloomberg data. Return on tangible equity, a key measure of profitability for banks, is now comfortably more than 10 per cent for many of them.

“The good news is that European bank valuations remain discounted compared with banking sectors elsewhere in the world,” said Schroders’ Bisseker. “Further convergence is likely.”

FT : Trump tariffs are ‘unsustainable’, says Mexico’s auto sector chief

Trump tariffs are ‘unsustainable’, says Mexico’s auto sector chief
Vehicles made in Mexico still incur 25 per cent levies as President Claudia Sheinbaum seeks US concessions

Donald Trump’s auto tariffs on Mexico are “unsustainable”, and US carmakers are ultimately losing out too, the head of Mexico’s auto association has warned.

Mexico was mostly relieved on Thursday when Trump announced that goods exported under the US, Mexico, Canada trade deal (USMCA) would remain tariff-free for 90 days while talks continue.

Finished autos will still incur a 25 per cent tariff under separate measures put in place by Trump. That arrangement was paralysing investment decisions, said Rogelio Garza, president of the Mexican Auto Industry Association.

The industry is pushing for a separate bridge deal ahead of the USMCA review next year, he said, as growth in production and exports stagnate.

“This isn’t sustainable . . . it’s not sustainable for the American companies,” Garza said. “It would be disastrous to be this way from now until next year.”

In March, Trump imposed 25 per cent tariffs on automotives.

He has since reduced that rate to 15 per cent in a deal with major auto exporter Japan while the EU is waiting for an US executive order to announce the same rate.

Mexico has no such deal yet, hampering the auto sector despite its deep integration with the US, with parts often crossing the border multiple times.

Garza said this put not only the Mexican auto industry at a disadvantage but the American and Canadian sectors as well: “The US companies here say, wait a minute, now I’m worse off than Japan.”

Mexican auto exporters that comply with USMCA can claim a discount on the tariff for US content — which is higher than in other nations at an average of about 40 per cent.

That would theoretically mean Mexican-made cars pay an average of about 15 per cent in total, the same level as Japan and the EU under their deals.

In reality, Garza said just two or three models made in Mexico had qualified for the discount so far. Everyone was still paying the 25 per cent rate, and no one had seen their money back yet, he added.

“The process to apply for the exemptions is too complicated,” he said. “They are in the process of getting refunded, but it’s just 2 or 3 models of 50, 60.”

Trump targeted Mexico and Canada within hours of taking office in January, accusing them of not controlling their borders and allowing migrants and fentanyl into the US.

He slapped a 25 per cent tariff on goods, but the vast majority of exports are still passing tariff-free under USMCA.

The auto sector tariffs are separate and would require their own deal to change the terms. Mexican President Claudia Sheinbaum last week announced a 90-day extension for bilateral talks had been agreed, and that officials were working for a deal on autos.

Mexico’s auto industry was supercharged by the signing of the North American Free Trade Agreement (Nafta) in the 1990s and became an economic engine employing more than 1 million people. It is now the world’s fifth-largest, leapfrogging Germany and South Korea last year.

The sector has now flatlined amid the tariff uncertainty and sharp government budget cuts, mirroring the broader economy. In the first half of the year, total production was flat at 2 million vehicles, while exports rose 2.8 per cent to 1.7 million, according to government data.

Automakers such as General Motors and Stellantis, which both have several factories in Mexico, have taken a hit on their profits this year due to the tariffs. Companies appeared to be absorbing most of the additional costs, Garza said, but expected prices in the US to rise soon.

Nissan said last week it would close a Mexico plant it opened in the 1960s — its first outside Japan — and move production to its other factories in the country. GM said it would move some production of the Chevrolet Blazer and Equinox models from Mexico to the US.

Garza, a former deputy economy minister, said companies could shift production of certain models where they have capacity, but that Mexico was still a better place for a factory given the much higher costs in the US.

“It's not easy, the cost of going there . . . a company does its Excel [calculations] and even with 15 per cent we are competitive.”

Several German carmakers in Mexico are having an even tougher time because they source more parts from Europe and do not comply with USMCA. They pay an extra 2.5 per cent duty on top of the 25 per cent.

Garza said he thought that the US deal with the EU deal showed that the environment was very challenging. Whoever comes after Trump may not be that different, he said, with protectionism now the norm.

“Who is going to come in and say, ‘oh yes let me take away the 15 per cent on the European Union’ — they’ll be lynched,” he said.

Garza — and the Mexican government — are now focused on trying to strike a more favourable deal than everyone else.

“We’re neighbours, we’ve had a deal for 30 years, we’ve both benefited,” he said of the US. “You know you need me, and I know I need you. Give me a better deal.”

FT : Private jet start-ups hit an air pocket

Private jet start-ups hit an air pocket
Transport businesses with heavy fixed costs only work when cabins are fully occupied

For American customers, hopping on a private jet has never been easier. Making a buck on those flights, however, has never been trickier — at least for private jet start ups.

Not every carrier is struggling. Flexjet, a leading charter and fractional jet operator, recently raised $800mn from L Catterton, a private equity firm affiliated with LVMH. The group wants to create a broader lifestyle brand around its private jet service. Its chief rival, NetJets, is owned by Warren Buffett’s Berkshire Hathaway.

There is a long tail of stragglers, however. During the pandemic, at least five private jet companies took advantage of cheap capital to go public. The results so far are abysmal, with the shares of the fivesome down at least 60 per cent since their listings. Over the past two years, they have given investors a bumpy ride.


One reason is that, like virtually all companies during the blank cheque mania of five years ago, the private jet operators offered projections that were wildly optimistic. Wheels Up said in 2021 that in 2024 it would have 20,000 “members” and overall group revenue of $1.7bn; in reality, it only hit turnover of $800mn on 5,000 subscribers.

Transport businesses with heavy fixed costs — think planes, fuel, staffing and maintenance — only work when the cabins are fully occupied. Larger companies like Flexjet may have reached exit velocity. But with capital much scarcer today, look for these other upstarts to either combine or simply drop off the radar.

While demand for private jets continues to rise, the wealthy are no longer dismissive of flying on commercial jets. The big carriers are making the experience much more luxurious for those who want to pay up. At Delta Air Lines, economy class revenue in 2024 was flat versus the year before.

However, premium class was up 8 per cent and accounted for 40 per cent of overall revenue. Comfy seats, decent food and drinks and airport lounges may start to convince the rich and mass affluent that private jets are not worth the incremental costs.

The new group of private jet start-ups was supposed to better harness software to match customers with available flights and simplify the passenger experience. The pitch was something like ‘Uber, but for planes’. It may be that tiny jets for 5 or 10 or 15 passengers are only able to offer reasonable prices if they achieve scale, which is difficult given the number of providers.

The big commercial carriers were notoriously volatile for decades, until they wised up to consolidation as a way to cut capacity and impose discipline. Their smaller, fancier progeny will eventually have to learn that lesson.

FT : ‘The pie is big’: French railways open up to European rivals

‘The pie is big’: French railways open up to European rivals
Italian and Spanish high-speed train operators and start-ups challenge the dominance of state-owned SNCF

This summer, a high-speed train from Paris to Marseille ran under Italian colours for the first time, the latest dent in national operator SNCF’s dominant position in French rail.

François, who recently travelled for a business trip from Paris to Aix-en-Provence on that route, found the €192 return ticket with Trenitalia relatively affordable and, crucially, available after SNCF tickets sold out.

“The train was full of people discovering something for the first time, in a good-spirited mood. It’s not like travelling with SNCF, which we’ve all done a thousand times,” he said.

Rail travel has grown in popularity since the Covid-19 pandemic as taxes on airlines and greater environmental awareness have pushed travellers towards greener modes of transport.

Now European operators are eyeing the French high-speed rail market, the largest on the continent, which is being further opened up.

Trenitalia’s service to Marseille comes in addition to the Paris-Lyon-Milan route it opened in 2021. Spanish operator Renfe is also growing its presence in France, while start-ups are raising cash.

Cross-Channel operator Eurostar, a subsidiary of state-owned SNCF, is also facing high demand and the prospect of new competitors.


SNCF and its subsidiaries, including Eurostar, operated 98 per cent of all high-speed rail travel last year. But they expect to face competition on a third of all lines by 2030, principally on their most popular routes.

“I hope SNCF is threatened. That’s the point of competition. The incumbent needs to improve its service,” said Laurent Fourtune, chief executive of a new low-cost operator called Kevin Speed.

France first opened up to competition on high-speed lines in 2020, as part of a string of EU reforms to liberalise railways. However, it has lagged behind other markets such as Italy, where competition has already contributed to lower prices.

Paris enabled other operators to run services, in a process known as open access, rather than privatising the rail network, as has occurred in the UK. Operators pay tolls to SNCF Réseau the division of the rail company charged with maintaining the network.

Last year, French high-speed railways boasted a record 67bn passenger-kilometres — an industry metric measuring total distance covered by all travellers, according to France’s Authority for Transport Regulation (ART).

In addition to Trenitalia, Spanish operator Renfe has launched international routes from Lyon to Barcelona and from Marseille to Madrid, although it recently delayed the planned 2025 launch of cross-border services to Toulouse.

Other French newcomers yet to launch new services include Proxima, which will operate routes including from Paris to Bordeaux and to Rennes; Le Train, which is also set to run services in western France; and Kevin Speed, whose short-haul services will include routes from Paris to Lyon and Lille.

Tim Jackson, co-founder of Proxima, has ordered 12 trains from French maker Alstom and said he expected to run 40-50 services per day within several years. Explaining the attractiveness of France, Jackson said the total volume of the French Atlantic region is bigger than Eurostar or Spain’s high-speed rail market. “The pie is big,” he added.

For rail consultant Edouard Homberg, the arrival of new services is largely positive for customers. “SNCF is starting to adjust its prices so there is a price-lowering effect that we see already, and there is an effect on the quality of service that we also see.”

SNCF Voyageurs, which is responsible for running the group’s rail services, was forced to cut fares even before the arrival of its Italian and Spanish rivals, with prices rising less than inflation across the whole network since 2019, according to ART figures.

“We know that the French market is attractive so we’ve been preparing for their arrival for a long time,” said Tanguy Cotte-Martinon, secretary-general at SNCF Voyageurs.


But the risk is that some lines will not face the same benefits and increased competition will weigh on SNCF’s ability to fund less popular routes. “[New operators] are commercial businesses, not providers of public services. They are going where it’s profitable for them to go,” Homberg said.

New service providers negotiate settlements with SNCF Réseau to pay lower tolls in the first three years of operation.

However, Trenitalia and Renfe have just a 1 per cent market share each so far, according to ART. Several challenges have kept competition limited.

Landslides in the Alps in 2023 have curtailed rail services from Paris to Milan, meaning Trenitalia lost about 900,000 fares over 19 months and was prevented from maintaining trains in Italy, said Marco Caposciutti, chief executive of Trenitalia France.

He warned that another challenge was higher network tolls in France than Italy. “For the first years of service, it’s impossible to gain money because the fixed costs are very, very high”, he said.

Meanwhile some would-be operators such as Le Train have suffered delays linked to obtaining trains. The group had planned to launch in 2025 but has yet to receive trains made by Spanish company Talgo.

SNCF has also suffered delays on the delivery of its new double-decker high-speed trains from Alstom.

“We are seeing congestion in the delivery of new trains . . . it’s often what causes problems: the operators don’t have all the trains they need,” said Hélène Vasseur, commercial director of SNCF Réseau.

While SNCF Voyageurs faces new rivals, network manager SNCF Réseau is benefiting from competition, as more trains increase the tolls it earns. “We need this competition to invest in the network,” said Vasseur.

The French market remains attractive for new operators and potential investors — Proxima is funded by a €1bn investment from Antin infrastructure partners.

Kevin Speed, which hopes to launch its first services in 2030, has enlisted banks to raise a similar level of funds on its behalf by the end of the year, said chief financial officer Guy Saidenberg.

Speaking in offices at a busy Gare du Nord station where the distinctive four-note SNCF jingle plays out, Kevin Speed’s Fourtune said he expects other operators to follow suit.

“France is the biggest market in Europe. It’s not going to open twice.”

>>> Barron’s Weekend Summary

Cover:
-President Donald Trump's desire for a simple solution to interest rates is likely to be achieved under the next Federal Reserve chair. The candidates running for the position are proposing significant changes to the central bank's fundamental mission, rethinking its approach to inflation and interest rates, cutting staff, and reorganizing or reducing the number of regional reserve banks. These changes are expected to amplify the economic uncertainty that has characterized the second Trump presidency, and economists and investors will be in for something different. The new Fed chair could begin rewiring the institution in just a matter of months, with the president's support, a supportive Senate, and buoyant markets. Kevin Warsh, one of the prominent candidates to replace Powell, emphasized that rate cuts are not the only solution.

Interview:
-No update

Tech Trader:
-Big Tech companies Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft all reported second-quarter earnings in the past two weeks, beating Wall Street's consensus estimates for earnings per share and revenue. On average, they exceeded EPS projections by 14% and sales by 4%. Meta Platforms was the standout, with revenue up 22% on the year and EPS up 38%. The company also beat expectations for its key ad growth metrics. Meta shares closed up 11.3% on the day after its earnings release. Apple had its first solid quarter in some time, with revenue growing nearly 10% year over year, its best performance in over three years. iPhone sales were up 13% from 2024, while Mac sales were up 15% and the high-margin services segment was up 13%.

The Trader:
-The stock market experienced its worst week since May, with the S&P 500 down 2.4%, the Dow Jones Industrial Average down 2.9%, and the Nasdaq Composite 2.2% in the red. The decline was surprising as the largest US companies, including Microsoft, Meta Platforms, and Apple, all posted strong second-quarter earnings. However, these stocks are now more like outliers than bellwethers, and the economy is looking shaky. U.S. payrolls grew by anemic 73,000 in July, and the government revised the prior two months down by 258,000 jobs. Fewer jobs were added over the past three months than in any three-month period since June 2020, during the Covid crash. Following the release of the July jobs report, President Donald Trump ordered the firing of the commissioner of the Bureau of Labor Statistics. The private sector added just 4,000 jobs in July, and investors expect more weakness ahead as layoffs accelerate for federal workers following a Supreme Court decision that sided with Trump.
-Some utilities, like Ohio-based American Electric Power (AEP) and Louisiana's Entergy, are making money from data centers while pushing the cost of new generation and transmission onto tech companies. Entergy plans to power one of the largest data-center campuses in the world for Meta Platforms in Louisiana, building three massive natural-gas power plants. Entergy also has a deal with Amazon.com for a major data center campus in Mississippi. AEP, operating in 11 states, has seen booming demand from tech companies wanting to operate data centers in its service territory, enough to double the total electricity load in central Ohio by 2030. To accommodate these customers without piling costs onto existing electricity users, AEP convinced the Ohio public utilities commission to sign off on a special rate structure. Data-center operators would need to pay for at least 85% of the energy they're expected to use, even if they don't use it in a given month.

Features:
-Kohl's, the largest department store chain in the US, has seen nearly 40% of its 112 million shares sold short as of July 29. This is due to concerns about the company's declining sales, shrinking profitability, and management turmoil. The stock has fallen about 70% since 2021 and recently traded for $10.70. Meme-stock traders often target heavily shorted stocks and try to "squeeze" short sellers by bidding up the price, which spurs them to buy back shares to limit losses. Kohl's operates over 1,100 midprice stores in 49 states and the Kohls.com e-commerce business. The company has struggled since the Covid-19 pandemic, with the growing popularity of online shopping causing a strain on its business model.
-Graham, a small-scale version of Berkshire Hathaway, owns a variety of businesses including a for-profit education company, TV stations, healthcare services firms, auto dealerships, manufacturing businesses, a picture-framing company, and restaurants in Washington, D.C. The company also has an investment portfolio and ample cash for deals. Graham's stock trades at a fraction of the value of the conglomerate's diverse businesses, but potential catalysts include a possible TV station spinoff, narrowing losses at smaller businesses, and increased attention on fast-growing healthcare businesses. Graham also has an overfunded pension fund, which is a valuable and underappreciated asset. The company's shares have an estimated asset value of over $1,500, far more than their current price of $950.

Europe:
-Adidas's Q2 earnings exceeded Wall Street's expectations, but investors were disappointed due to a sales miss and the company's decision not to raise its full-year financial guidance due to new tariff costs. Adjusted earnings were €2.03 ($2.33) a share, but revenue fell short of Street projections. Adidas' shares fell 10% in Germany. The company reiterated its fiscal year outlook, citing uncertain economic conditions and an additional €200M impact from tariffs on US imports in 2H25.

Emerging Markets:
-Emerging markets have seen a significant rebound in the past year, according to portfolio manager Lewis Kaufman of the $4.2 billion Artisan Developing World fund. The outlook is compelling as local currencies strengthen against a weaker U.S. dollar, enhancing local companies' buying power. Emerging market central banks are cutting interest rates, lowering borrowing costs. Kaufman targets companies selling modern-economy goods and services that people living in big cities are buying, believing that these modern population clusters have the propensity to consume faster and realize the promise of low penetration and scale in emerging markets. The fund has seen a 36.3% increase in one-year returns, ranking in the top 1% of its Morningstar peers. Kaufman seeks companies with scalable business models that can hold for long periods, preferring financially sound companies with high gross margins to produce "disproportionate equity outcomes."

Commodities:
-Copper experienced its worst day ever, with the Trump administration's tariffs on the metal causing a major selloff by investors who had been stockpiling copper in the US. The levies were not as broad as many feared, covering semifinished products like copper sheet and wires, but excluding input materials and copper scrap. Prices for front-month Comex copper contracts tumbled 22% to $4.33 per pound, the metal's largest one-day percentage decline on record since 1968. Copper mining stocks have also been hit hard, with Southern Copper down nearly 7% this week and Freeport-McMoRan down 11%. Some market watchers took the declines in stride, arguing they offer a healthy corrective to prices that had recently gotten out of whack.

Streetwise:
-no update

>>> Weekend Papers Summary

FINANCIAL TIMES
-Donald Trump made two public announcements on the day he launched new tariffs and disrupted global trading. He announced that he was making many deals, including a new ballroom at the White House and sports. This seemed to taunt US trading partners like Canada, Taiwan, and India, who lobbied to avoid more Trump tariffs. However, officials could not confirm which new trade deals Trump was referring to. Many foreign capitals are now locked into higher tariff rates through their agreements with Washington, while others, like Canada, are redoubling efforts to reduce the extra tariffs.
-International cocoa prices have risen above $10,000 a tonne since early 2023 due to climate change and crop disease outbreaks. However, state price controls in Ivory Coast and Ghana, which produce about two-thirds of the world's cocoa, mean local farmers earn only a slice of the market value. Many farmers are now selling their beans to intermediaries who smuggle them into neighboring countries, where they are sold at market prices. Government data shows that in the 2023-24 season, about 150,000 tonnes of cocoa beans were smuggled out of Ghana, by some estimates as much as a quarter of output, with a further 200,000 tonnes from Ivory Coast. The real figure is likely higher, with nearby countries such as Burkina Faso, Togo, and Sierra Leone reporting surging exports despite producing almost no cocoa.
-Donald Trump has ordered the deployment of two nuclear submarines in response to Russia's provocative statements, citing Dmitry Medvedev, deputy chair of Russia's security council. The deployment comes ahead of a deadline for Putin to agree to a ceasefire in Ukraine or face tighter US sanctions. Medvedev, a former Russian president, criticized Trump's actions as a threat and a step towards war. Trump urged Medvedev to "watch his words" and warned him of dangerous territory.
-Hamas has released a propaganda video depicting a starved Israeli hostage and emaciated Palestinian babies, causing international condemnation of Israel's blockade of Gaza. The video was released late on Friday, shortly after US special envoy Steve Witkoff and US ambassador Mike Huckabee visited a food distribution site in Gaza, which is currently suffering from famine. The video shows Evyatar David, a young musician taken hostage by Hamas on October 7, 2023, wearing shirtless clothes.
-President Donald Trump has sacked the head of the US's labor statistics agency, Erika McEntarfer, following a gloomy jobs report. McEntarfer was appointed by his predecessor Joe Biden and was fired without evidence of manipulation for political purposes. Trump claimed that McEntarfer's appointment was fair and accurate. The firing follows the resignation of Federal Reserve governor Adriana Kugler, who announced her resignation before the end of her term in January. This move paves the way for Trump to name a successor to chair Jay Powell, who is set to step down in May 2026. Trump has criticized Powell for resigning, comparing it to the resignation of former Biden appointee Adriana Kugler.
-Switzerland's watch industry is facing a threat to sales due to Donald Trump's proposed 39% tariffs on the country, potentially raising prices for US consumers and impacting volumes at some brands. The US accounted for 16.8% of Swiss watch exports in 2024, worth roughly SB ($5.4B). Swiss manufacturers The Swatch Group and Richemont, as well as London-listed Watches of Switzerland, a major Rolex and Patek Philippe dealer, face "pain" if tariffs are imposed next week. The 39% tariff exceeds the 31% proposed by Trump on "liberation day" in April and far outstrips the 15% facing Switzerland's EU neighbors.
-Tesla has been found partly liable for a fatal car accident involving its autopilot system in Florida, where a pedestrian was killed and another injured. The federal jury found Tesla a third of the responsibility for the accident, which was caused by driver complacency due to Tesla exaggerating the capabilities of its assistance systems, failing to upgrade the technology after prior incidents, and allowing drivers to use autopilot on roads it was not designed for. Tesla argued that the driver was irresponsible and that its guidelines state that people must always be alert and in control when its systems are engaged. Tesla must pay $200M in punitive damages, $19.5M in compensatory damages to the deceased woman's family, and $23.1M to her injured boyfriend. This verdict is significant for Tesla as it is the first federal case to find it responsible for an accident involving its self-driving software.
-Taiwan's failure to secure a trade deal with Donald Trump before the deadline has raised concerns that Washington may reduce security support for Taiwan to maintain good relations with Beijing. Taiwan, the world's largest chip manufacturer and seventh-largest US trading partner, was one of the first countries to initiate talks with Washington after Trump introduced his "liberation day" tariffs in April. Trump imposed a 20% tariff on Taiwanese imports, which will take effect next week.

NEW YORK TIMES
-President Trump has displayed his volatile side when faced with unwelcome news on two of the biggest issues on his plate this week. The jobs report for July showed a substantial slowdown in hiring, and Trump lashed out, claiming the figures were rigged and firing the head of the government agency that produces them. Dmitri Medvedev, once Russia's president but now little more than the Kremlin’s favorite online troll, got under Trump’s skin with provocative posts about nuclear war. Trump ordered submarines into position to guard against any threat. Just days earlier, Trump had returned to the United States from a golf trip happily flexing his political and diplomatic power.
-President Trump has fired Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, after claiming weak job numbers were "rigged." McEntarfer was confirmed on a bipartisan basis in 2024 and was fired without evidence of data rigging. The Senate-confirmed Department of Labor official responsible for pulling together monthly job numbers was fired. Emily Liddel, an associate commissioner for the bureau, confirmed McEntarfer's firing, and William Wiatrowski, the deputy commissioner, would serve as acting commissioner. This move comes amid concerns that the removal of McEntarfer could undermine confidence in government economic data.
-Consumer prices are beginning to feel the pinch of tariffs as companies struggle to keep them stable. Government data shows that prices rose in June on appliances, which are heavily exposed to tariffs. Many businesses initially absorbed the additional tax during the early days of President Trump's trade war. However, evidence is emerging that they are running out of options to keep prices stable in the face of deteriorating profit margins, suggesting that tariffs could have a more pronounced effect on prices in the months ahead.
-India officials have confirmed that they will continue purchasing cheap oil from Russia despite a threat of penalties from President Trump. This move reflects India's growing frustration with the relationship with Russia, which was once praised but has been souring rapidly. The defiance of Prime Minister Narendra Modi's government reflects increasing frustration with the volatile American policymaking that has shaped India's choices on vital energy supplies for its 1.4B people. Trump has threatened an unspecified penalty and a 25% tariff rate if India does not cut off its imports of Russian crude oil. India's Prime Minister, Narendra Modi, has acknowledged that India will no longer be buying oil from Russia, but is uncertain if this is the right decision.
-International condemnation of Israel for its Gaza war is growing, with calls from Israel's allies for a Palestinian state. Mike Huckabee, the first evangelical to serve as American ambassador to Israel, is a passionate defender of the country. Despite President Trump's break with Prime Minister Benjamin Netanyahu of Israel and acknowledging "real starvation" in Gaza, Huckabee has not. The U.N. secretary general has referred to the situation as a moral crisis that challenges the global conscience. Christian conservatives and the Netanyahu government are pleased with Huckabee's dedication to the country.
-Iran is holding at least four American citizens, including two men and two women, in Iranian custody, according to human rights groups, lawyers, and Hostage Aid Worldwide. Two were seized after Israel and the US attacked Iranian targets in June, and two others have been held since 2024. Iran has long practiced hostage diplomacy, detaining foreigners and dual nationals to leverage them for prisoner swaps and the release of frozen funds. The detentions are likely to increase the already tense political climate between Tehran and Washington after the US joined Israel's attack on Iran and damaged three of its nuclear sites in June. Nuclear negotiations with Washington have not resumed since the war in June, but Iran's foreign minister, Abbas Araghchi, said that he and the U.S. special envoy, Steve Witkoff, have been communicating directly through text messages.
-The aggressive push by President Trump and Republicans in Texas to redraw the map for the state's U.S. House districts has led to Democrats, including some longtime institutionalists, vowing to "fight fire with fire" and even embrace some of the gerrymandering tactics they have long decried as anti-democratic. The attempt to squeeze as many as five House Democrats out of office before a single vote is cast in the 2026 midterm elections has opened up a new chapter in an era of unconstrained partisan warfare. Democrats, including some longtime institutionalists, are taking the party on a race to the bottom, with Representative Jamie Raskin, a Maryland Democrat, lamenting that his party must reluctantly participate in "this rotten system."

NEW YORK POST
-The US Federal Government is investigating allegations of overtime abuse at the NYPD's elite Aviation unit under former NYPD Chief Winston Faison. Faison allegedly approved payments for rescue training for cop cronies who had nothing to do with rescues. Lt. Lakeisha Smith, Lt. Winston Wright, and Detective Tanesha Facey, Faison's driver, made up to 20 overtime hours per month, funded by a federal maritime safety training grant administered by FEMA. Police sources said they were doing nothing for the training whatsoever except putting in overtime slips.
-President Trump has called on the Federal Reserve Board to take control if Jerome Powell fails to lower interest rates soon. He urged the board to take action if Powell continues to refuse. Fed Governor Adriana Kugler announced her resignation next Friday, giving Trump another ally in his push to lower interest rates. The 12-member Fed board had voted to maintain rates in the target 4.25% to 4.5% range and downgraded its view of the economy due to Trump's tariffs. Powell, whose term ends next May, wouldn't commit to a cut when policymakers gather in September. Fed Governors Christopher Waller and Michelle Bowman voted against Powell's "wait and see" approach, marking the first time in three decades when more than one governor on the board has dissented on an interest-rate vote

9 to5 : Tim Cook holds company-wide meeting to address Apple’s AI woes

Tim Cook holds company-wide meeting to address Apple’s AI woes

Just one day after revealing its financial results and fielding questions about Apple’s lag in AI, Tim Cook turned inward, holding what Bloomberg described as an ‘hourlong pep talk’ during a company-wide all-hands meeting. Here are the details.


‘Apple must do this. Apple will do this. This is sort of ours to grab’
As reported by Mark Gurman, Tim Cook held a company-wide meeting today at the Steve Jobs Theater at Apple Park, and stated that “the AI revolution is ‘as big or bigger’ as the internet, smartphones, cloud computing and apps,” as he promised to make the investment to do it:

“‘Apple must do this. Apple will do this. This is sort of ours to grab,’ Cook told employees, according to people aware of the meeting. “We will make the investment to do it.’

The meeting comes as Apple faces high-profile defections to Meta’s Superintelligence Labs initiative. Internally, teams have also faced setbacks, including leadership shakeups, competing priorities, and disagreements over strategic directions.

The Siri team, for instance, was reportedly blindsided by the delay of its AI revamp, and equally surprised to learn that Apple was pursuing partnerships with OpenAI and Anthropic, rather than continuing in-house development.

The company has also held internal discussions about acquiring AI search startup Perplexity, a possibility that was lightly alluded to during yesterday’s earnings call.

Craig Federighi also took the stage briefly during today’s meeting to speak directly to those issues.”

“Federighi explained that the problem was caused by trying to roll out a version of Siri that merged two different systems: one for handling current commands — like setting timers — and another based on large language models, the software behind generative AI. “We initially wanted to do a hybrid architecture, but we realized that approach wasn’t going to get us to Apple quality,” Federighi said.”

Back to Cook, he reportedly leaned on a familiar counter-argument when addressing concerns about Apple’s late entry into the AI race:

“‘We’ve rarely been first,’ the executive told staffers. ‘There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod.’

But Apple invented the ‘modern’ versions of those product categories, he said. ‘This is how I feel about AI.’”

During the meeting, Cook also reportedly addressed the upcoming retirement of long-time COO Jeff Williams, as well as matters such as Apple’s recent investments in health-related initiatives, and Apple TV+ performance.

When talking about regulatory pressure, he said:

“The reality is that Big Tech is under a lot of scrutiny around the world,” Cook said. “We need to continue to push on the intention of the regulation and get them to offer that up, instead of these things that destroy the user experience and user privacy and security.”

As Bloomberg noted, today’s meeting marked a rare departure from Apple’s typical small, town hall-style gatherings. More than anything, it signaled that Apple felt the need to rally its troops, take control of its AI strategy, and hopefully stem the ongoing brain drain to rival companies.