WSJ : Railroad Operator Union Pacific Exploring Deal for Norfolk Southern

Railroad Operator Union Pacific Exploring Deal for Norfolk Southern
Companies are holding preliminary deal talks

Railroad operator Union Pacific UNP -1.60%decrease; red down pointing triangle is holding talks to acquire its smaller rival Norfolk Southern NSC 3.65%increase; green up pointing triangle in a deal that could create the largest rail operator in the country, according to people familiar with the matter.

The talks are early stage and there are no guarantees they will result in any deal or receive regulatory signoff, the people said. It is also possible another suitor could emerge.

Union Pacific has a market value of around $140 billion, while Norfolk is valued at about $60 billion.

Shares of Norfolk jumped 3% in after-hours trading following The Wall Street Journal report, while Union Pacific shares fell around 2%.

The deal would create a sprawling rail network that spans the continent and handles a sizable share of freight across the U.S. Currently, no railroad operator has a network that runs coast to coast in the U.S.

Union Pacific Chief Executive Officer Jim Vena has spoken publicly in recent months about the benefits of a transcontinental railroad. Vena has said that a transcontinental railroad would improve service as it would smooth out current delays at interchanges, when a railroad operator transfers railcars to another operator.

Still, any deal would face serious scrutiny from a series of regulators including the Surface Transportation Board, the economic regulator primarily overseeing freight railroads, as well as the Justice Department, investors, Amtrak and labor unions.

Analysts have speculated that Union Pacific is likely entertaining a merger proposal in part because of a more favorable regulatory environment under President Trump.

The current chairman of the STB, Patrick Fuchs, who took over the chairmanship in January, has said that he plans to speed up the rulings on disputes and other legal decisions. Fuchs said earlier this year that several long-running proceedings have already been expedited.

Norfolk is seen as a vulnerable target today.

Late last year, Norfolk’s Chief Executive Alan Shaw departed the company after a board investigation into an alleged relationship he had with an employee. That came after the company fended off activist investor Ancora Holdings, which had criticized the railroad’s response to its 2023 Ohio derailment and its sluggish financial performance.

Union Pacific, based in Omaha, Neb., is one of the two major railroads operating west of the Mississippi.

The freight railroad had been in the crosshairs of the STB for service and labor issues. Under former chairman Martin Oberman, the regulator has held public hearings and criticized Union Pacific over embargoes.

The last time federal regulators approved a major railroad merger was in 2023. Canadian Pacific Railway and Kansas City Southern sought to merge in a deal to create the first freight rail network linking Canada, the U.S. and Mexico.

Some federal agencies, communities, rail customers and other railroads, including Union Pacific, had pushed back against the merger since it was announced in 2021. They had concerns about reduced competition, higher shipping rates and the possibility of worse rail service.

A deal between Union Pacific and Norfolk, if completed, could also mark the largest corporate transaction this year, in what has been an underwhelming dealmaking environment through the first half of the year.

WSJ : A Family Feud Is Rocking One of the World’s Richest Hotel Dynasties

A Family Feud Is Rocking One of the World’s Richest Hotel Dynasties
As the elder son, Sherman Kwek was the chosen successor at a Singapore real-estate empire. Then he tried to push out his billionaire father’s adviser, a Juilliard-trained pianist.

SINGAPORE—The gala felt straight out of the movie “Crazy Rich Asians.” In this tropical-island nation famously dense with millionaires, 600 guests gathered in September 2023 to fete one of Singapore’s most prominent success stories: the property empire that owns the global Millennium hotel chain and the Biltmore Los Angeles.

The politicians, business leaders and foreign envoys in attendance heaped praise on the company’s octogenarian executive chairman, Kwek Leng Beng, who built a family fortune estimated at $11.5 billion and made deals with the likes of Donald Trump. Guests at the black-tie dinner savored abalone, bird’s nest soup and lobster, while dancers and musicians performed on a stage.

At the head table, the tycoon, clad in a blue tuxedo, reigned with his wife, Cecilia.

But there was another woman in the ballroom, wearing a red dress, whose presence wasn’t welcome to some in the family.

Catherine Wu, a Juilliard-trained pianist and former television host in her native Taiwan, was well-known to company executives for her close relationship with the chairman. Senior executives had long bristled at what they saw as her interference in the hotel business, according to people familiar with the matter. But until this moment, she had largely shunned the limelight and avoided public company events. The internal complaints about her outsize influence remained unknown to the public.

Now Wu was thrusting herself into the spotlight, introducing herself to the dignitaries—including Singapore’s prime minister-in-waiting—and posing for photos with them. Onlookers blanched. People sympathetic to Cecilia Kwek and concerned about Wu’s influence at the company thought Wu, by attending the gala, had crossed a line.

Earlier this year, the tensions that seethed at the event burst into the open.

The chairman’s elder son and chosen successor, Sherman Kwek, 49, and his allies moved to add new directors to the board, a maneuver he later said was meant to eliminate Wu’s influence at the family business, called City Developments Ltd., or CDL for short.

“She has been interfering in matters going well beyond her scope, and she wields and exercises enormous influence,” Sherman Kwek said in a statement on behalf of the majority of the board, issued in February after the feud erupted into public view. “Due to her long relationship with the chairman, efforts that were made to manage the situation were done sensitively, but to no avail.”

Kwek Leng Beng fought back by trying to dismiss his son as chief executive and suing him for allegedly trying to usurp power—something that Sherman denies. The elder Kwek later said Wu had contributed to the business’s success and decried his son’s “unproven insinuations.”

Wu, in her first public comments on the matter, told The Wall Street Journal in an email this month that her relationship to the chairman was “purely professional.” She said the elder Kwek had “asked for and considered my feedback on business ideas,” adding that she had “had no role in the decision-making process” at CDL. She said the dispute was between board members and “has nothing to do with me, although some parties have used my name to stoke the flames.”

Weeks after the clash, the sides agreed to a truce. The public warring had done no good for a company dealing with high debt and a lackluster share price.

In March, the elder Kwek announced Wu’s resignation as an adviser at CDL’s hotel subsidiary and dropped his lawsuit. His son remains CEO, backed by additional allies on the board and a company resolution declaring that Wu has no power to influence or direct management and staff at CDL and its hotel business.

But Wu is still in contact with one person at CDL: the 84-year-old chairman. People at the company say the elder Kwek and Wu, who turns 66 this month, have recently been seen meeting at CDL-owned properties. It means, the people say, that the saga is far from over.

Strictly business
Just north of the equator, six million people swelter in a city-state about a quarter of Rhode Island’s size. A disproportionate many are millionaires, and some of Singapore’s richest residents are members of family businesses that predate the nation’s 60 years of independence.

As Singapore transformed from a colonial outpost into a hub of prosperity, the Kwek clan was there to help build it every step of the way.

Kwek Leng Beng’s father, Kwek Hong Png, started a construction-materials store in 1941, when Singapore was a British colony. Kwek Leng Beng joined the business in 1963 and was given stern training by his father, as he and Cecilia recounted in an authorized biography, “Strictly Business.”

When the couple were dating, Kwek Leng Beng’s father imposed a curfew. “The old man wanted him to be in bed by 9 p.m.,” Cecilia said in the biography.

Kwek Leng Beng and Cecilia, both London-trained lawyers, wed in 1970. They spent much of the next few years in Singapore in the lobby of the company’s first hotel, where she’d drink hot chocolate while he quizzed staff about occupancy rates and mingled with guests for feedback, the biography said.

By the 1990s, Kwek was in charge of a flourishing family business that would eventually expand to more than 150 hotels worldwide, including Millennium hotels in New York and London. It controlled so much real estate in Singapore at one point that he was dubbed “Kwek Land Bank.”

As part of a venture with a Saudi prince, CDL bought New York City’s Plaza Hotel, the iconic establishment next to Central Park that’s played host to royalty, presidents and the fictional Kevin McCallister in the 1992 movie “Home Alone 2.” They paid $325 million to buy it from Trump in 1995, and then sold it nine years later for $675 million. In the mid-2000s, Kwek advised Las Vegas casino magnate Sheldon Adelson on building the Marina Bay Sands casino resort in Singapore. Today, it is a symbol of the island nation’s skyline.

Eyes and ears
As the years went by, an adviser by Kwek’s side became impossible for insiders to ignore. Catherine Wu, who holds a doctorate in music from New York University, was in her early 30s when she met Kwek in 1992 at a dinner party. She was well-known in Taiwan as a TV host and pianist, having released albums under the name Ingrid Wu with tracks such as “His Lover” and “I’ll Decide Before Dawn Whether I Love You.”

At the dinner, Kwek quizzed Wu about politics, economics and music “to see if my mind was flexible and if my answers were consistent,” Wu told a Singaporean newspaper last year. “Fortunately, I answered articulately.”

Wu decided to move to Singapore that same year, she told the newspaper, saying she wanted to escape attention by relocating to a place where she wasn’t well-known, and that the city-state’s East-meets-West vibes suited her. In her email to the Journal, Wu described music as her former career and said she had spent 30 years in business amassing professional achievements.

Kwek invited her to hotel-management meetings and events. “The chairman would scold me from time to time, but I wouldn’t take it to heart,” Wu said in the newspaper interview. “If a successful person is willing to put in the thought and energy to scold you, it means you are teachable.”

Paid not by the company but by Kwek himself, Wu acted as the chairman’s “eyes and ears” and often accompanied him to visit properties around the world, according to a 2018 U.K. labor tribunal ruling. The tribunal was investigating a dispute involving a former employee who accused a CDL subsidiary of unfair dismissal and other wrongdoing, a case the tribunal dismissed.

Some executives and employees—including people who later left the company—bristled at Wu’s conduct, filing complaints against her both internally and to a Singapore government-backed agency, according to people familiar with the matter. These complaints included allegations that Wu berated staff, meddled in business matters beyond her remit and used the elder Kwek’s name to rubber-stamp her decisions, the people said.

Sometimes, executives believed that business decisions they thought had been approved by the chairman were later overruled by Wu. In one instance cited in the complaints, the people said, Wu got the company to halt planned renovations to a hotel in London near the Harrods luxury department store, even though management believed the project would boost revenue and had spent years preparing for it.

Many employees came to believe that Wu was sometimes using one of the elder Kwek’s corporate email accounts to send instructions in his name, people close to CDL said. They said these employees learned to recognize what they believed to be Wu’s imprint on such emails—a more formal and detailed writing style, compared with the elder Kwek’s curt approach, and the signature “Sent from my iPad,” which was notable because the chairman wasn’t known to use an iPad. Kwek declined to comment, while Wu didn’t respond to requests for comment about this matter.

According to the people, some executives expressed unease when one of Wu’s six brothers, a former journalist for a Taiwanese television network, became general manager of the Biltmore Los Angeles in 2018. He had little experience in the hospitality industry, apart from a short stint as a business-development executive in CDL’s hotel subsidiary.

During the brother’s stint as general manager, he, the hotel and a company affiliated with CDL’s hotel subsidiary faced lawsuits from former Biltmore employees over allegations that included discrimination, harassment and wrongful termination, according to court papers. These cases have generally been settled out of court, according to court documents and people close to CDL, and the company didn’t make any public admission of wrongdoing. The brother has stepped aside as general manager and remains an owner’s representative—a supervisory role that oversees the hotel’s operations and liaises between its owner and management.

The brother didn’t respond to requests for comment.

The heir
Senior executives tried for years to persuade Sherman Kwek, the designated successor to the elder Kwek, to directly address the tensions over Wu, say insiders.

Sherman Kwek didn’t see much of his father as a child, as he recounted in his dad’s biography. After studying business at Boston University, he worked in venture capital and investment banking in New York before his father brought him to the family business.

Sherman Kwek had his own issues to deal with. After becoming CDL’s CEO, he had spearheaded a 2019 investment in a Chinese developer that went sour and led to a $1.4 billion write-down. “I wanted to hide my face in the sand” and came close to resigning, he recounted in a speech last year. “I went from hero to zero overnight.”

The younger Kwek retained his father’s support then and went on to strike profitable deals divesting some commercial properties, but he still faced skepticism from investors.

Sherman Kwek and his allies thought they had eased Wu out of the picture when she resigned as a director of CDL’s hotel subsidiary in January 2024, people close to the company say. But in August that year, Wu rejoined the subsidiary as an unpaid board adviser and the Singaporean newspaper published its interview with a headline that called her the elder Kwek’s “grand chamberlain.”

Wu’s return stunned some senior CDL figures and board members, who had to try again to remove her from the business, people close to the company say. They first appealed to the elder Kwek to act, and then—after seeing no results—initiated a move in late January to add new independent directors to the CDL board, the people say.

These efforts eventually led to the public feuding, which drew breathless coverage from local media that documented the boardroom spat blow-by-blow.

Following the truce earlier this year, after which Sherman Kwek continued as chief executive and his father as chairman, Wu now has no official title at the company.

Sherman Kwek remains in the hot seat, facing market pressure to execute plans to pare back CDL’s debt and lift its share price, which still languishes below prepandemic levels.

Watching over him is his father, who remains a revered figure at CDL overseeing a family fortune that Forbes estimated last year to be worth $11.5 billion. The elder Kwek has maintained his contacts with Wu, whose protégés still hold positions in the hotel business, according to people close to CDL. One of these people says the company is looking into past complaints against Wu. This week, CDL said a longserving board member, who sided with the chairman during the feud, will retire from the board at the end of July.

A CDL spokesman said Kwek Leng Beng, Sherman Kwek and the company declined to comment.

Both father and son continue to go into CDL’s headquarters at Republic Plaza, a soaring 66-story skyscraper in Singapore’s business district.

At a public space there, a holographic painting that Sherman Kwek presented to the elder Kwek at the 2023 gala—depicting either the grandfather Kwek, the father or the son depending on the viewing angle—remains on display. Next to it stands a piece of Chinese calligraphy penned by one of Wu’s brothers, which says, “Three generations of blood and sweat, six decades of honor and glory.”

WSJ : German Startup Wants to Regrow Europe’s ‘Spine’ With AI Fighter Pilots, Dr

German Startup Wants to Regrow Europe’s ‘Spine’ With AI Fighter Pilots, Drone Walls
Helsing taps into investor interest in the continent’s defense buildup, becoming one of region’s most valuable companies

  • Helsing, a German AI defense startup, is gaining prominence amid EU’s rising military spending and a push for tech independence.
  • Some of Helsing’s AI-equipped drones are used in Ukraine, and the company is developing autonomous systems for air and sea defense.
  • A recent funding round valued Helsing at 12 billion euros, but the company faces supply-chain and security challenges.


MUNICH—Inside an unassuming redbrick building tucked beside railroad tracks in the Bavarian capital, engineers behind doors marked “maximum security“ toil on drone prototypes, flight simulators and lines of code they believe will shape the next era of warfare.

Helsing, a 4-year-old artificial-intelligence defense startup, has quietly emerged as one of Europe’s fastest-growing companies—and a poster child for a continent urgently re-engineering its defense in an era of fracturing alliances.

The company’s pitch: Only by fusing software and steel at scale can Europe safeguard its sovereignty. Some of Helsing’s AI-equipped drones are used in Ukraine, and it is currently testing autonomous piloting systems for jet fighters and underwater gliders that can detect Russian submarines.

One of Europe’s most valuable startups, Helsing has caught investors’ eye by positioning itself at the intersection of three trends: the continent’s surging military spending, the expanding role of military AI and the race to achieve technological independence from the U.S. and China.

“There is a growing sense of urgency in Europe right now,” Helsing’s co-founder, Torsten Reil, said. “So we need to make big bets.”

The company occupies a crowded zone. Many European, U.S. and Asian rivals make drones, often powered by AI. All of them will face competition from Ukraine, once its war with Russia is over. Ukrainian companies have proven adept at churning out cheap, deadly drones that will arrive into markets battle-tested. Many of Helsing’s products haven’t seen much action on the front, and it has faced criticism for some of its earlier models.

But a June funding round led by Spotify co-founder Daniel Ek’s investment firm, Prima Materia, raised 600 million euros, equivalent to roughly $702 million, for Helsing. That valued the company at €12 billion, according to a person familiar with the matter. It also turned Helsing into a significant European player alongside U.S. defense-tech companies such as California-based Anduril Industries, which recently raised $2.5 billion, and Palantir Technologies.

Once ambivalent about the region, U.S. investors and private-equity funds see Europe’s massive defense and infrastructure push, combined with often cheap valuations, as an opportunity. The German DAX index has outperformed the S&P 500 this year. Helsing itself has attracted funds from U.S. venture-capital funds.

Europe’s defense industry, long kept at arms’ length by investors because of political and ethical stigma, is experiencing an unprecedented infusion of public and private funds. The European Union’s military expenditure last year stood at €326 billion, a 30% rise since 2021 driven by Russia’s invasion of Ukraine and concerns about U.S. disengagement. Earlier this year, the European Commission, the EU’s executive arm, unveiled a “ReArm Europe” initiative aimed at mobilizing €800 billion for military spending by 2030.

“Washington is focusing more on China and, in some ways, turning its back on Europe,” said Eric Slesinger, a former Central Intelligence Agency officer who is now general partner at VC firm 201 Ventures. “We need to make sure Europe can solve its own problems and not be a football bounced around in authoritarian-versus-democratic global competition.”

That is where Helsing comes in. Reil, the co-founder, said the company wants to help Europe grow “its spine back” by building “autonomous mass,” or deploying large numbers of inexpensive, AI-powered weapons systems.

One practical application: To deter an increasingly belligerent Russia, Europe needs to erect a “drone wall” along its eastern flank consisting of some 100,000 drones. He said Helsing’s HX-2 AI strike drone can do the job.

The 26-pound HX-2 features onboard AI to counter hostile electronic warfare, allowing it to stay on target even if it loses its data connection. Using Helsing’s software, the drones can be sent in swarms to overwhelm enemy defenses.

In Ukraine, Helsing drones have destroyed Russian targets such as armored personnel carriers, logistics depots and radar antennas, the company said. Helsing has sent around 2,000 drones to Ukraine and is planning to deliver several thousands more.

The company is also active in the maritime domain where it is developing a subsea glider that can patrol underwater for up to three months. It can look for submarines or monitor critical undersea cables.

Helsing trained the glider’s AI brain—code-named Lura—much like large language models such as ChatGPT, except the inputs were terabytes of underwater sounds. Using that data, the system can detect and classify objects—is it a fishing boat, is it a submarine?—with 90% accuracy, according to the company.

Helsing doesn’t yet have military customers for the glider but said it has received interest from several navies. The company recently announced the establishment of a factory in the U.K.’s Plymouth for the production of the glider.

In the air, Helsing recently conducted tests with a Gripen jet fighter made by Sweden’s Saab, where its AI system briefly flew the plane on its own in a combat scenario over Sweden and the Baltic Sea and executed maneuvers. A video from the cockpit shows a human pilot saying “AI agent activated” and then raising his hands up in the air, leaving the controls to the machine.

Such tests and deployments are a jump from the company’s start in 2021. It was founded by an unlikely trio: Reil, a videogame entrepreneur, Gundbert Scherf, a former German Defense Ministry official, and Niklas Köhler, a medical AI researcher.

“At the time, no European VC wanted to talk to us, mainly for ethical reasons,” Reil said. Helsing’s first seed round in 2021 raised €8.5 million, mainly from family offices and individuals, he said.

The Ukraine-Russia war acted as an accelerant. European officials now describe the conflict as the world’s first “AI war lab.” Both sides have deployed autonomous drones, AI-powered intelligence-analysis tools and data-driven targeting, transforming traditional warfighting into a test bed for emerging tech.

When it comes to AI’s application in defense, “the mindset in Europe has shifted from ‘let’s wait and see’ to ‘we have to build now’,” said Jeannette zu Fürstenberg, board member at Helsing and managing director at VC firm General Catalyst.

Despite the recent successes, the company is battling challenges.

For one, not all feedback for its systems has been glowing. Some Ukrainian soldiers have criticized Helsing’s older drones as less effective than competitors. The company said it has learned from critiques and addressed them in the new HX-2.

Finding European supply chains for specialized items like explosives or electronic circuits that are usually concentrated in China is another challenge for Helsing. Threats to sensitive information and operations, meanwhile, are also top of mind at the startup.

At Helsing’s Munich headquarters, several employees recently joked about Russia’s Federal Security Service intelligence agency listening in. A spate of sabotage operations in Europe linked to Moscow in recent years presents risks for Helsing, which keeps the locations of some of its production facilities secret.

“We have to worry about operational security, about hacking,” said Sam Rogerson, Helsing’s chief operating officer. “There is too much at stake and we cannot afford to be complacent.”

WSJ : BHP Flags Higher Costs, Delays on Potash Project; May Sell Nickel Arm

BHP Flags Higher Costs, Delays on Potash Project; May Sell Nickel Arm
BHP expects to produce between 258 million and 269 million tons of iron ore in the coming year

  • BHP Group reported rising costs and delays at its potash project in Canada, potentially delaying the first output to mid-2027.
  • BHP is considering selling its Australian nickel operations.
  • BHP reported record annual iron ore and copper production, driven by strong output from its Escondida copper mine in Chile.

Mining giant BHP BHP 3.23%increase; green up pointing triangle Group flagged rising costs and delays at a giant potash project in Canada and said it may sell its Australian nickel operations, as it reported record annual iron ore and copper production.

Australia-based BHP, the world’s biggest miner by market value, has been reshaping its business to bet on an accelerating energy transition and global population growth via investments in copper and potash, a fertilizer ingredient. The miner currently relies on the steel ingredient iron ore for more than half its earnings.

The company said Friday it faces rising costs at the Jansen potash project in Canada’s Saskatchewan province, its only major development currently under construction.

The miner now expects the first stage of the project will cost between $7.0 billion and $7.4 billion to build, up from $5.7 billion previously. It may also return to an earlier target for first output around mid-2027, instead of its most recent goal of achieving production by the end of next calendar year.

BHP reported that stage of the project is 68% complete. It said its estimates are currently under review and it would provide investors with a firm view on timing and costs later.

The company said it is also reviewing Jansen’s second stage, which is roughly 11% complete. BHP may delay first production from that expansion by two years, to fiscal 2031, because it reckons there might be more potash supply coming into the market over the medium term than previously envisaged.

“The fundamental outlook for potash is very challenging, in our view,” Jefferies analysts said in a note.

BHP placed big bets on demand for potash as it pulled back on other investments, including in coal and nickel.

The miner last year shuttered its unprofitable Australian nickel operations due to a global glut of the metal, caused by a sharp rise in supply from operations in Indonesia.

BHP, which intends to review that decision by early 2027, on Friday said it is also assessing whether to sell the nickel business. “Any decision to divest will be subject to an assessment against other options, including continuing temporary suspension, restart or closure,” BHP said in its quarterly report.

BHP had considered a sale of the operations known as Nickel West as recently as 2019, but chose to retain them as expectations of a battery boom intensified.

In the quarterly report, BHP recorded iron-ore production of 263.0 million metric tons for the 12 months through June, up 1% on the year earlier.

The result beat market expectations, with analysts having forecast annual output around 260.8 million tons, according to a consensus compiled by Visible Alpha. The company had guided to output between 255 million and 265.5 million tons.

The miner has been gradually lifting iron-ore output from pits in remote northwest Australia, where it reported record annual production and shipments. BHP said it expects to produce between 258 million and 269 million tons of iron ore in the coming year.

In its copper business, the second biggest contributor to BHP’s earnings, the miner reported full-year production of around 2.017 million tons, up 8% year over year. The company had projected annual copper output of between 1.845 million and 2.045 million tons.

BHP said it expects to produce between 1.8 million and 2.0 million tons of copper in the year ahead.

The company has been producing more copper in Chile, where mining at the giant Escondida operation, it runs in the Atacama Desert, shifted into areas of higher-grade ore. Escondida—the world’s top source of copper concentrates and cathodes, used in home appliances, power grids, and cars—achieved its highest output in 17 years, BHP said.

Chief Executive Mike Henry said global commodity demand has been resilient in 2025 so far. “That resilience largely reflects China’s ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,” he said.

WSJ : Jeffrey Epstein’s Friends Sent Him Bawdy Letters for a 50th Birthday Album

Jeffrey Epstein’s Friends Sent Him Bawdy Letters for a 50th Birthday Album. One Was From Donald Trump.
The leather-bound book was compiled by Ghislaine Maxwell. The president says the letter ‘is a fake thing.’

President Trump with Jeffrey Epstein at Mar-a-Lago in 1997. Photo: Davidoff Studios/Getty Images
It was Jeffrey Epstein’s 50th birthday, and Ghislaine Maxwell was preparing a special gift to mark the occasion. She turned to Epstein’s family and friends. One of them was Donald Trump.

Maxwell collected letters from Trump and dozens of Epstein’s other associates for a 2003 birthday album, according to documents reviewed by The Wall Street Journal.

Pages from the leather-bound album—assembled before Epstein was first arrested in 2006—are among the documents examined by Justice Department officials who investigated Epstein and Maxwell years ago, according to people who have reviewed the pages. It’s unclear if any of the pages are part of the Trump administration’s recent review.

The president’s past relationship with Epstein is at a sensitive moment. The Justice Department documents, the so-called Epstein files, and who or what is in them are at the center of a storm consuming the Trump administration. On Wednesday, after angry comments about how the files are a hoax created by Democrats, President Trump lashed out at his own supporters for refusing to let the matter go.

The letter bearing Trump’s name, which was reviewed by the Journal, is bawdy—like others in the album. It contains several lines of typewritten text framed by the outline of a naked woman, which appears to be hand-drawn with a heavy marker. A pair of small arcs denotes the woman’s breasts, and the future president’s signature is a squiggly “Donald” below her waist, mimicking pubic hair.

The letter concludes: “Happy Birthday — and may every day be another wonderful secret.”

In an interview with the Journal on Tuesday evening, Trump denied writing the letter or drawing the picture. “This is not me. This is a fake thing. It’s a fake Wall Street Journal story,” he said.

“I never wrote a picture in my life. I don’t draw pictures of women,” he said. “It’s not my language. It’s not my words.”
He told the Journal he was preparing to file a lawsuit if it published an article. “I’m gonna sue The Wall Street Journal just like I sued everyone else,” he said.

Allegations that Epstein had been sexually abusing girls became public in 2006 and he was arrested that year. Epstein died in 2019 in jail after he was arrested a second time and charged with sex trafficking conspiracy.
Justice Department officials didn’t respond to requests for comment or address questions about whether the Trump page and other pages of the birthday album were part of the agency’s recent documents review. The FBI declined to comment.

The existence of the album and the contents of the birthday letters haven’t previously been reported. The album had poems, photos and greetings from businesspeople, academics, Epstein’s former girlfriends and childhood pals, according to the documents reviewed by the Journal and people familiar with them.

Among those who submitted letters were billionaire Leslie Wexner and attorney Alan Dershowitz. The album also contained a letter from a now-deceased Harvard economist, one of Epstein’s report cards from Mark Twain junior high school in Brooklyn and a note from a former assistant that included an acrostic with Epstein’s name: “Jeffrey, oh Jeffrey!/ Everyone loves you!/ Fun in the sun!/ Fun just for fun!/ Remember…don’t forget me soon!/ Epstein…you rock!/ You are the best!”

Epstein was Wexner’s money manager at the time. The longtime leader of Victoria’s Secret wrote a short message that said: “I wanted to get you what you want… so here it is….” After the text was a line drawing of what appeared to be a woman’s breasts. Wexner declined to comment through a spokesman. Wexner’s spokesman previously told the Journal that the retail mogul “severed all ties with Epstein in 2007 and never spoke with him again.”

Dershowitz’s letter included a mock-up of a “Vanity Unfair” magazine cover with mock headlines such as “Who was Jack the Ripper? Was it Jeffrey Epstein?” He joked that he had convinced the magazine to change the focus of an article from Epstein to Bill Clinton. Dershowitz, who represented Epstein after his first arrest, said, “It’s been a long time and I don’t recall the content of what I may have written.”

The book was put together by a New York City bookbinder, Herbert Weitz, according to people who were involved in the process. Weitz, who died in 2020, listed Epstein as a client on his website in 2003.

It isn’t clear how the letter with Trump’s signature was prepared. Inside the outline of the naked woman was a typewritten note styled as an imaginary conversation between Trump and Epstein, written in the third person.

“Voice Over: There must be more to life than having everything,” the note began.

Donald: Yes, there is, but I won’t tell you what it is.
Jeffrey: Nor will I, since I also know what it is.
Donald: We have certain things in common, Jeffrey.
Jeffrey: Yes, we do, come to think of it.
Donald: Enigmas never age, have you noticed that?
Jeffrey: As a matter of fact, it was clear to me the last time I saw you.
Donald: A pal is a wonderful thing. Happy Birthday — and may every day be another wonderful secret.
President Trump at the White House on Wednesday. Photo: Aaron Schwartz/Bloomberg News

‘Jeffrey enjoys his social life’
When he turned 50, Epstein was already wealthy from managing Wexner’s fortune and was socializing with Trump, Clinton and other powerful people. He often entertained at his Manhattan townhouse, Palm Beach, Fla., home and private Caribbean island.
A spokesman for Clinton referred to a 2019 statement that former President Clinton had cut off ties more than a decade before Epstein’s second arrest and didn’t know about Epstein’s alleged crimes.

Epstein and Trump spent time together in the 1990s and early 2000s and were photographed at social events, including with Maxwell and Melania Trump. A 1992 tape from the NBC archives shows Trump partying with Epstein at his Mar-a-Lago estate; Trump is seen pulling a woman toward him and patting her behind.

Trump, along with others including Clinton, also appeared several times on flight logs for Epstein’s private jet.

A 2002 New York magazine profile of Epstein quoted Trump. “I’ve known Jeff for 15 years. Terrific guy,” Trump said.

“He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it—Jeffrey enjoys his social life.”

Both men said that they subsequently had a falling-out. Trump has said their friendship ended before Epstein pleaded guilty to procuring a minor for prostitution in 2008, served time in a Florida jail and registered as a sex offender.

When Epstein was arrested again in 2019, Trump said he hadn’t talked to Epstein for about 15 years. “I knew him like everybody in Palm Beach knew him,” Trump said in the Oval Office at that time. “I was not a fan of his, that I can tell you.”
Trump’s spokeswoman told the Journal in 2023 that Trump had banned Epstein from his Mar-a-Lago club at some point in the past, without elaborating.

Maxwell, a British socialite, was convicted in 2021 of helping Epstein’s sex-trafficking and sentenced to 20 years in prison. Maxwell didn’t respond to a letter requesting an interview sent to her in prison. Arthur Aidala, an attorney who represented Maxwell, said, “At this point, she is focused on her case before the Supreme Court of the United States.”

The FBI’s Epstein files
Epstein’s associations with Trump and many powerful people have been well documented. There remain questions about what the FBI possesses about Epstein and his well-connected friends. In 2019, the FBI confiscated evidence from Epstein’s properties in the U.S. Virgin Islands and New York.

Earlier this week, after the Journal sought comment from the president about the letter, Trump told reporters at the White House that he believed some Epstein files were “made up” by former Presidents Barack Obama and Joe Biden and former FBI Director James Comey.

He said that releasing any more Epstein files would be up to Attorney General Pam Bondi. “Whatever she thinks is credible, she should release,” Trump said.

Allegations that bureaucrats covered up Epstein’s connections with participants in his trafficking scheme were fanned by people now in top roles in the Trump administration, including FBI Director Kash Patel and his deputy, Dan Bongino.

In June 2024, Trump was asked in a Fox News interview whether he would release the Epstein case files. The Republican presidential candidate initially responded, “Yeah, I would.” But he also expressed some reservations. “You don’t want to affect people’s lives if it’s phony stuff in there, because it’s a lot of phony stuff with that whole world. But I think I would.”

Soon after she was confirmed as attorney general, Bondi said she was preparing to release new Epstein files. In late February, Bondi announced the release of “Phase 1” of the documents. But the material contained few new revelations, drawing criticism from right-wing influencers.
Attorney General Pam Bondi released documents on the Epstein case in February. Above, conservative influencers at the White House with the documents. Photo: Evan Vucci/Associated Press

Bondi initially blamed the FBI’s New York office for withholding information and promised to release the remaining documents after redacting the victim’s names. Patel also said, “There will be no coverups, no missing documents and no stone left unturned.” They tasked hundreds of FBI employees to review the materials and prepare them for release.

The issue took on new life in June when Elon Musk, amid a public feud with Trump, alleged that the FBI was withholding documents from the Epstein case because Trump was in the files.
“The truth will come out,” Musk wrote on X on June 5. He later deleted the message and said he regretted some of his comments.

On July 7, the Justice Department backtracked on Bondi’s pledge to release more Epstein files. The Justice Department said that after an “exhaustive review” it had found no “incriminating client list” or additional documents that warrant public disclosure.

Democrats on the House Judiciary Committee demanded this week that Republican Chairman Jim Jordan hold hearings on the Trump administration’s handling of the Epstein files and, if necessary, subpoena Bondi, Patel and Bongino.

At a cabinet meeting on July 8, Trump criticized a reporter for asking about Epstein. “Are people still talking about this guy, this creep?” Trump said. “That is unbelievable. Do you want to waste the time?”

That same day, Musk wrote on X: “How can people be expected to have faith in Trump if he won’t release the Epstein files?”

>>> US After Hours Summary: NFLX -1.7% lower on earnings; NSC +4% on WSJ report

After Hours Summary: NFLX -1.7% lower on earnings; NSC +4% on WSJ report that UNP in talks to acquire NSC; IBKR +4.4% higher on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: IBKR +4.4%, WAL +1% (also names new CFO), FNB +0.7%, OZK +0.4%

Companies trading higher in after hours in reaction to news: BZAI +52.8% (secures $120 mln contract to deliver hybrid AI infrastructure across Asia), TLN +15.6% (to acquire two combined-cycle gas-fired plants), NSC +4% (UNP in talks to acquire NSC, according to WSJ), CAN +2.7% (CIFR and CAN enter into purchase agreement), CSX +2.4% (UNP in talks to acquire NSC, according to WSJ), CIFR +1.7% (CIFR and CAN enter into purchase agreement), ONL +1.4% (confirms receipt of revised indication of interest from Kawa Capital), KBR +1.1% (secures renewal of contract with Basra Oil), JBL +0.9% (authorizes new $1 bln share repurchase program), WBD +0.9% (in sympathy with NFLX earnings), UNP +0.7% (UNP in talks to acquire NSC, according to WSJ), ORLA +0.5% (files an updated technical report), GOGL +0.1% (CMBT provides update on GOGL merger process), BA +0.1% (Gulf Air to add up to 18 Boeing 787 Dreamliners)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NFLX -1.7%, CNS -0.7%

Companies trading lower in after hours in reaction to news: BKSY -21.6% (private offering of $125 mln of convertible notes), XXII -2.4% (reports expanded state authorization progress), CMBT -1.2% (CMBT provides update on GOGL merger process), ROKU -0.7% (in sympathy with NFLX earnings), NKE -0.2% (files mixed securities shelf offering), PARA -0.1% (in sympathy with NFLX earnings), UAL -0.1% (discloses $561 mln of expenses related to labor deal), WMT -0.1% (plans to sell Vizio TVs as private brand, according to Bloomberg)

WSJ : Railroad Operator Union Pacific Exploring Deal for Norfolk Southern

Railroad Operator Union Pacific Exploring Deal for Norfolk Southern
Two companies are holding preliminary deal talks

Railroad operator Union Pacific UNP -1.60%decrease; red down pointing triangle is holding talks to acquire its smaller rival Norfolk Southern NSC 3.65%increase; green up pointing triangle in what would be a megamerger in the railroad industry, according to people familiar with the matter.

The talks are early-stage and there are no guarantees they will result in any deal or receive regulatory signoff, the people said. It is also possible another suitor could emerge.

Union Pacific has a market value of some $140 billion, while Norfolk is valued at about $60 billion.

>>> Top quant to quit Millennium

Top quant to quit Millennium

Hedge fund giant Millennium Management has reportedly lost one of its top-performing portfolio managers from its flagship quant unit Azur, with his proposed departure sparking a legal battle over restrictive covenants, according to eFinancial careers.

Romain Castillon, a key profit driver within the New York-based Azur team, is believed to be heading to rival GSA Capital, the London-based quant fund known for its lucrative partner payouts and global reach. The report cites unnamed sources as saying that Paul Mayer, Azur’s Chief Technology oOfficer, may also be making the move, though neither firm has confirmed the exits.

The high-profile departures come amid reports that Millennium has initiated employment tribunal proceedings in Geneva, a jurisdiction often used in hedge fund disputes over non-compete and non-solicit clauses. Details of the case remain private, but similar legal spats in the industry have delayed or restricted PM transitions to competitors.

Castillon joined Millennium in 2019 from Squarepoint, and like Azur founder Jonathan Bensimon, is an alumnus of Société Générale’s equities desk.

Azur, founded six years ago by Bensimon and operating across New York, Paris, and Asia, is considered one of Millennium’s largest and most successful quant pods.

Millennium declined to comment. Castillon did not respond to inquiries, and GSA Capital has not confirmed any new hires.

>>> Netflix beats by $0.12, reports revs in-line; guides Q3 EPS above consensus,

Netflix beats by $0.12, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY25 revs above consensus (1,274.17 +23.86)
  • Reports Q2 (Jun) earnings of $7.19 per share, $0.12 better than the FactSet Consensus of $7.07; revenues rose 15.9% year/year to $11.08 bln vs the $11.06 bln FactSet Consensus.
    • Q2 operating margin came in at 34.1% vs 33.3% prior guidance.
    • Revenue was slightly above guidance due primarily to favorable F/X impact, net of hedging. Member growth was ahead of forecast, although this occurred late in the quarter, limiting the impact on Q2 revenue.
    • Both operating income and operating margin were slightly ahead of forecast given the revenue upside in the quarter and timing of expense spending.
  • Co issues upside guidance for Q3, sees EPS of $6.87 vs. $6.69 FactSet Consensus; sees Q3 revs of $11.526 bln vs. $11.28 bln FactSet Consensus.
    • Co guides to Q3 operating margin of 31.5%. Similar to past years, co expects operating margin in 2H will be lower than 1H due to higher content amortization and sales and marketing costs associated with a larger second half slate.
  • Co issues upside guidance for FY25, sees FY25 revs of $44.80-45.20 bln vs. $44.55 bln FactSet Consensus and vs $43.50-44.50 bln prior guidance. Revenue guidance increase primarily reflects the weakening of the US dollar vs. most other currencies, plus healthy member growth and ad sales.
    • Co raises guidance for F/X neutral operating margin to 29.5% (vs. 29% previously), or 30% on a reported basis.
  • In Q2, co had a wide variety of hit series like Squid Game S3, Sirens, Ginny & Georgia S3, The Eternaut and Secrets We Keep, and popular films like Tyler Perry's STRAW and Exterritorial.
  • Co has completed the rollout of the Netflix Ads Suite, its proprietary first-party ad tech platform, across all ads markets.
  • Co has also launched its redesigned TV homepage, which enhances the member experience. This new TV UI is simpler, more intuitive and better represents the breadth of entertainment on Netflix today.
  • Co is optimistic heading into 2H25, with a standout slate that includes Wednesday S2, the Stranger Things finale, the highly anticipated Canelo-Crawford live boxing match, Adam Sandler's Happy Gilmore 2, Kathryn Bigelow's A House of Dynamite and Guillermo del Toro's Frankenstein.
  • Advertising: Co continues to make progress building its ads business and still expects to roughly double ads revenue in 2025. A key focus this year is enhancing capabilities for advertisers.

WSJ : China Threatens to Block Panama Ports Deal Unless Its Shipping Giant Is Pa

China Threatens to Block Panama Ports Deal Unless Its Shipping Giant Is Part of It
Beijing pushes for state-owned Cosco to become shareholder of two Panama Canal ports, dozens of others in BlackRock deal

  • China threatens to block the sale of more than 40 ports to BlackRock and MSC if Cosco, a Chinese shipping company, doesn’t get a stake.
  • The proposed sale of ports owned by CK Hutchison includes two ports at the Panama Canal.
  • China has leverage over BlackRock, MSC and Hutchison, which are now open to Cosco’s taking a stake.

China’s government is threatening to block a deal that would transfer ownership of dozens of seaports to Western investors if Cosco, China’s largest shipping company, doesn’t get a stake.

The proposed sale includes two ports at the Panama Canal and more than 40 others around the world, all owned by Hong Kong-based CK Hutchison 1 0.52%increase; green up pointing triangle.

China is pushing for state-owned Cosco to be an equal partner and shareholder of the ports with BlackRock BLK 1.86%increase; green up pointing triangle and Mediterranean Shipping Co., a containership operator, according to people familiar with the deal talks. BlackRock and MSC in March reached a preliminary agreement to buy the ports in a deal valued at nearly $23 billion.

Now, BlackRock, MSC and Hutchison all are open to Cosco’s taking a stake, the people familiar with the talks said.

The parties aren’t likely to reach a deal before a previously agreed upon July 27 end date for exclusive talks between BlackRock, MSC and Hutchison, the people familiar with the talks said. The parties can’t strike a deal that includes Cosco until the exclusivity period ends.

Any deal giving a stake in the Panama ports to a Chinese-owned company would likely upset President Trump, who has threatened to take control of the canal and has objected to Hutchison’s ownership of two ports there. The White House didn’t immediately respond to a request for comment Thursday.

Hutchison’s initial plan to sell the ports angered Beijing, according to people familiar with the talks. Chinese authorities have told Chinese state-owned companies to freeze any coming deals with Hutchison or other businesses linked to its controlling shareholder, the family of the Hong Kong billionaire Li Ka-shing, these people said.

The proposed sale of the ports has added to the growing tensions between China and the U.S. During U.S.-China trade talks in Switzerland in May, Chinese representatives raised the prospect of China’s involvement in the deal, according to people familiar with the trade negotiations.

Chinese officials have told BlackRock, MSC and Hutchison that if Cosco is left out of the deal, Beijing would take steps to block Hutchison’s proposed sale, according to people familiar with the deal talks.

In past global mergers, China’s Commerce Ministry has asserted rights to review a deal, sometimes insisting on changes that can appear politically motivated. China also has significant leverage over the parties involved in the Panama Canal ports deal. BlackRock and Hutchison have business interests in China, and MSC is one of the biggest movers of Chinese exports around the world.

In 2014, Beijing blocked three Western companies from forming a shipping alliance that could have hurt its trade interests. In that case, China scuttled a deal between MSC, Denmark’s A.P. Moeller-Maersk and France’s CMA CGM in which the companies would have shared vessels and port calls worldwide.