FT : Gautam Adani indicted in the US for bribery

Gautam Adani indicted in the US for bribery
Billionaire accused of multimillion-dollar scheme to bribe Indian government officials for lucrative contracts

Indian billionaire Gautam Adani has been charged by federal prosecutors in New York over an alleged years-long scheme to bribe Indian officials in exchange for billions of dollars’ worth of solar power contracts and concealing such payments from US banks and investors.

The tycoon, who has been a supporter of Prime Minister Narendra Modi, was indicted in Brooklyn on charges including securities fraud and conspiracy alongside seven other business executives, including his nephew Sagar Adani.

The indictments threaten to reignite a public relations crisis for Adani Group, the conglomerate he chairs, which has spent much of last year trying to move past the damaging claims of accounting fraud and stock market manipulation made by US short seller Hindenburg Research.

Breon Peace, the US attorney for the Eastern District of New York, said that “defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars” and “lied about the bribery scheme as they sought to raise capital from US and international investors”.

In a parallel civil lawsuit, the Securities and Exchange Commission said the alleged bribes were paid in order to “secure [the Indian government’s] commitment to purchase energy at above-market rates that would benefit Adani Green and Azure Power”.

Adani Green raised $175mn from US investors while the scheme was ongoing, US regulators said, while Azure Power was trading on the New York Stock Exchange.

Gautam Adani and Sagar Adani allegedly “induced US investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance programme but also that the company’s senior management had not and would not pay or promise to pay bribes”, said Sanjay Wadhwa, acting director at the SEC’s enforcement division. 

An Adani spokesman did not immediately respond to a request for comment.

US Close Dow +0.32% S&P +0.00% Nasdaq -0.11% Russell +0.03%

Closing Stock Market Summary
The stock market had a mixed showing. The major indices ultimately settled near their best levels of the session thanks to a late afternoon push higher. The S&P 500 closed less than one point higher than yesterday after being down as much as 1.0%. The Nasdaq Composite traded as low as 1.4% and closed only 0.1% lower. The Dow Jones Industrial Average, which traded down as much as 0.4%, closed 0.3% higher than yesterday.

Many stocks participated in the afternoon improvement, which mostly occurred after the cash session concluded in the bond market. The 10-yr yield settled four basis points higher at 4.41% and the 2-yr yield settled three basis points higher at 4.30%. Treasury yields initially moved lower in response to some geopolitical angst as reports indicated Ukraine had fired UK-made missiles into Russia.

Early safe-haven buying dissipated, though, after Fed Governor Bowman (FOMC voter) indicated that she would like to proceed cautiously in bringing down the policy rate and after today's $16 billion 20-yr bond auction met weak demand.

Weakness in the mega cap space limited index performance throughout the session. Retailers were also noticeably weak after Target's (TGT 121.72, -33.16, -21.4%) disappointing guidance.

S&P 500 sector performance was mixed, leaving the health care (+1.2%) and energy (+1.0%) sectors at the top of the leaderboard while the consumer discretionary (-0.6%), financials (-0.3%), and information technology (-0.2%) sectors brought up the rear.

  • Nasdaq Composite: +26.4%
  • S&P 500: +24.1%
  • S&P Midcap 400: +16.2%
  • Dow Jones Industrial Average: +15.2%
  • Russell 2000: +14.7%

Reviewing today's economic data:
  • Weekly MBA Mortgage Applications Index, which increased 1.7% with purchase applications increasing 2% and refinance applications rising 2%
  • Weekly EIA crude oil inventories showed a build of 545,000 barrels
T
hursday's economic calendar features:
  • Weekly Initial Claims at 8:30 ET ( consensus 221K; Prior 217K)
  • Weekly Continuing Claims at 8:30 ET (Prior 1873K)
  • November Philadelphia Fed Index at 8:30 ET (consensus 7.0; Prior 10.3)
  • October Existing Home Sales at 10:00 ET ( consensus 3.90 mln; Prior 3.84 mln)
  • October Leading Home Sales at 10:00 ET (consensus -0.3%; Prior -0.5%)

>>> NVIDIA beats by $0.06, beats on revs; guides Q4 revs in-line; demand for Bla

NVIDIA beats by $0.06, beats on revs; guides Q4 revs in-line; demand for Blackwell expected to exceed supply for several quarters in FY26 (145.89 -1.12)
  • Reports Q3 (Oct) earnings of $0.81 per share, excluding non-recurring items, $0.06 better than the FactSet Consensus of $0.75; revenues rose 93.6% year/year to $35.08 bln vs the $33.15 bln FactSet Consensus.
    • Data Center revenue was a record, up 112% from a year ago and up 17% sequentially. The strong year-on-year and sequential growth was driven by demand for Hopper computing platform for training and inferencing of large language models, recommendation engines, and generative AI applications.
      • Completed a successful mask change for Blackwell, our next Data Center architecture, that improved production yields. Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026.
      • Both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.
    • Gaming revenue was up 15% from a year ago and up 14% sequentially. These increases were driven by sales of our GeForce RTX 40 Series GPUs and game console SoCs.
    • Professional Visualization revenue was up 17% from a year ago and up 7% sequentially. These increases were driven by the continued ramp of RTX GPU workstations based on our Ada architecture.
    • Automotive revenue was a record, up 72% from a year ago and up 30% sequentially. These increases were driven by our self-driving platforms.
  • Co issues in-line guidance for Q4 (Jan), sees Q4 revs of $37.5 bln, plus/minus 2%, implying $36.75-38.25 bln vs. $37.09 bln FactSet Consensus.
    • GAAP and non-GAAP gross margins are expected to be 73.0% and 73.5%, respectively, plus or minus 50 basis points.

>>> Palo Alto Networks beats by $0.08, reports revs in-line; guides Q2 EPS in-li

Palo Alto Networks beats by $0.08, reports revs in-line; guides Q2 EPS in-line, revs in-line; guides FY25 EPS in-line, revs in-line (392.89 +4.83)
  • Reports Q1 (Oct) earnings of $1.56 per share, excluding non-recurring items, $0.08 better than the FactSet Consensus of $1.48; revenues rose 13.9% year/year to $2.14 bln vs the $2.12 bln FactSet Consensus.
    • Next-Generation Security ARR grew 40% year over year to $4.5 billion.
    • Remaining performance obligation grew 20% year over year to $12.6 billion.
  • Co issues in-line guidance for Q2 (Jan), sees EPS of $1.54-1.56, excluding non-recurring items, vs. $1.55 FactSet Consensus; sees Q2 revs of $2.22-2.25 bln vs. $2.23 bln FactSet Consensus.
    • Next-Generation Security ARR of $4.70 billion to $4.75 billion, representing year-over-year growth of between 35% and 36%.
    • Remaining performance obligation of $12.9 billion to $13.0 billion, representing year-over-year growth of between 20% and 21%.
  • Co issues in-line guidance for FY25 (Jul), sees EPS of $6.26-6.39 (up from $6.18-6.31), excluding non-recurring items, vs. $6.28 FactSet Consensus; sees FY25 revs of $9.12-9.17 bln (up from $9.10-9.15 bln) vs. $9.13 bln FactSet Consensus.
    • Next-Generation Security ARR of $5.52 billion to $5.57 billion, representing year-over-year growth of between 31% and 32%.
    • Remaining performance obligation of $15.2 billion to $15.3 billion, representing year-over-year growth of between 19% and 20%.

WSJ : News Corp Shareholders Reject Activist Bid to End Dual-Class Share Structu

News Corp Shareholders Reject Activist Bid to End Dual-Class Share Structure
Starboard Value’s proposal had initially earned the backing of major proxy-advisory firms in U.S. and Australia

News Corp NWSA 0.92%increase; green up pointing triangle shareholders rejected a proposal by an activist investor to end the company’s dual-class share structure, which was aimed at damping the Murdoch family’s influence over the company.

The proposal, which was submitted by activist investment firm Starboard Value in September and had garnered broad support from proxy-advisory firms, would have made each outstanding share of News Corp’s common stock equal to one vote. Currently, Class B have greater voting power than Class A shares.

The family of Chairman Emeritus Rupert Murdoch owns about 40% of Class B shares.

Starboard argued in a letter to shareholders in September that the dual structure wasn’t a best-in-class corporate-governance practice. The firm said the continuing legal fight involving Murdoch and his children over control of the media conglomerate was one example of a risk to the organization.

News Corp responded that the dual-class share structure promoted stability at the company.

Prior to the annual meeting, Starboard’s proposal earned the backing of major proxy-advisory firms in the U.S. and Australia. Institutional Shareholder Services, Egan-Jones and Glass Lewis all recommended stockholders vote for the proposal. Proxy-advisory firms generally advocate for equal voting rights for shareholders.

News Corp said Wednesday that it was pleased its stockholders had convincingly supported the company and board on all matters. The company’s full slate of directors was also elected at the annual meeting of shareholders.

News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.

WSJ : Elon Musk’s Startup xAI Valued at $50 Billion in New Funding Round

Elon Musk’s Startup xAI Valued at $50 Billion in New Funding Round
The artificial intelligence startup has more than doubled its valuation from the spring

Elon Musk’s artificial intelligence startup, xAI, has told investors it raised $5 billion in a funding round valuing it at $50 billion—more than twice what it was valued at several months ago.

Qatar’s sovereign-wealth fund, Qatar Investment Authority, and investment firms Valor Equity Partners, Sequoia Capital and Andreessen Horowitz are expected to participate in the round, according to people familiar with the matter. The financing brings the total amount xAI has raised to $11 billion this year.

xAI was previously raising funds at a $40 billion valuation, before factoring in the new cash, The Wall Street Journal reported. Over the past few weeks, xAI raised that figure by $5 billion in negotiations with investors. The infusion of new cash brings its total post-investment value to $50 billion.

xAI was valued at $24 billion when it raised $6 billion in the spring.

Investor interest in Musk’s businesses, including xAI and SpaceX, have increased since Donald Trump won the presidential election. Musk spent hundreds of millions of dollars to boost Trump’s campaign and led rallies on behalf of the Republican. He has worked on the early stages of Trump’s transition back to the White House and is coleading an effort to cut government spending.

Tesla’s stock is up about 35% from its close on Election Day through Wednesday.

In late-October, the same time he was stumping for Trump in Pennsylvania, Musk spoke at an xAI investor call, some of the people familiar with the matter said.

xAI, which launched in July of last year, plans to use the new cash in part to finance the purchase of 100,000 additional Nvidia chips for training AI models.

The startup recently told investors its revenue has reached $100 million on an annualized basis.

xAI’s primary product is its Grok chatbot, available to premium subscribers of Musk’s social network X. The company also recently made Grok available to business customers.

Grok launched in November 2023, making it late to a race with competitors including OpenAI, Alphabet’s Google and Anthropic. xAI spent this past summer constructing a new data center in Memphis, Tenn., that houses 100,000 Nvidia chips for building its AI models.

Musk has said the Memphis data center contains the most powerful AI cluster in the world and that he is planning to double its size.

Musk is particularly focused on beating OpenAI, the ChatGPT creator he co-founded in 2015. He has sued the startup and its chief executive Sam Altman for alleged fraud and antitrust violations, claims OpenAI has called baseless.

OpenAI was valued at $157 billion in its most recent funding round, which closed in October.

AI startups must frequently raise money due to the escalating costs of developing their technology and intense competition in the industry, where they also face profitable tech giants like Google and Meta Platforms.

xAI is set to debut the third version of its Grok language model in December. Musk has said it will be “the world’s most powerful AI by every metric.”

The Information : What If LLMs Could Continue Learning?

What If LLMs Could Continue Learning?

Here’s a question of paramount importance in AI: what if large language models could continue learning new information even after they’re done training?

That’s the question that researchers at Writer, a $2 billion-valuation startup developing AI tools for enterprises, found themselves asking six months ago. Those researchers have now developed a new type of LLM, called “self-evolving LLMs,” that they claim can continue learning and updating its parameters, or the connections between parts of the model that determine how it answers questions, even after it’s deployed.

The development, if it proves as good as it sounds, might provide a solution to the growing concerns that traditional methods to improve LLMs aren’t working as well as they used to. Those questions have prompted researchers at labs like OpenAI, Google and Meta Platforms to experiment with new methods to keep the “scaling laws” party going.

But if LLMs could continue learning new information even after they’re done training, researchers wouldn’t have to spend hundreds of millions of dollars tweaking and retraining updated versions of their models every few months. This could also open the door to models that can personalize themselves based on new information they learn about their users.

Here’s how Writer’s new approach works. Traditional transformers—the model architecture that underlies popular LLMs like GPT and Claude—are made up of “layers,” or special “filters” that help the model learn different aspects of the input data. Within each of those layers, Writer’s self-evolving LLMs also include a “memory pool,” which stores important information from past interactions, said Writer cofounder and CTO Waseem Alshikh.

Each time the LLM receives new information it hasn’t seen before, it updates those memory pools throughout all its layers so it can refer to that information in future interactions, Alshikh said. (Importantly, researchers have some control over what information the LLM does and doesn’t learn, so you can’t just troll an LLM with fake facts, Alshikh said.)

Developing a self-evolving LLM increases training costs by 10% to 20%, Alshikh said, but doesn’t require additional work once the LLM is trained, unlike other methods to update models with new information like retrieval augmented generation or finetuning.

This type of model leads to some interesting results on popular benchmarks—specifically, the model’s performance on benchmarks actually improves every time it’s tested, since it learns the information on the benchmark over time, Alshikh said. For instance, the first time the model was tested on a common math benchmark, it got less than 25% of the questions correct. The third time it was tested, its accuracy jumped to nearly 75%.

Don’t expect researchers to start abandoning traditional transformers quite yet, though. This type of tech is still extremely early—Alshikh told me that it’s being tested with just two customers in beta right now—and there are plenty of kinks to work out.

Most notably, the more information the LLM learns, the worse it gets at refusing to answer dangerous questions, Alshikh said. Intuitively, you can think of it as—the new information that the model learns over time will begin to override the original data, such as safety instructions, it was trained on. That’s not great news for businesses that want to incorporate AI into customer-facing products.

Another issue is that these models have a limit to how much new information they can learn. However, Alshikh argues that this isn’t as big of a concern for businesses, as they’re typically just trying to update an LLM with their own private information rather than all the latest data on the web. And, he added, if you make the memory pool around 100 billion to 200 billion words, it’s enough for the LLM to learn for at least five to six years for the typical enterprise.

Even so, that does spotlight the still evolving issue of how businesses will use—and pay for—software that’s continuously changing and updating over time. Already, AI businesses are experimenting with new pricing models, such as outcome-based pricing, to get ahead of this shift.

Either way, it seems like other AI leaders are interested in this question as well. Microsoft AI chief Mustafa Suleyman dropped hints on a recent podcast that AI with "near-infinite" memory that "just doesn't forget" is coming in 2025. (We’ll believe it when we see the company’s long-awaited MAI-1 model, though.)

FT : Robert Kennedy considers upheaval to US Medicare doctors’ billing system

Robert Kennedy considers upheaval to US Medicare doctors’ billing system
Plan is latest sign that Donald Trump’s healthcare pick is preparing assault on medical establishment

Robert F Kennedy Jr is working on plans to rid a doctors’ lobbying group of control over a lucrative part of Medicare billing, as he takes on vested interests in the world’s costliest healthcare system, according to people close to discussions.

Kennedy, who last week Donald Trump tapped to run the US health and human services department, has held discussions with advisers about how to remove the American Medical Association from its role in drawing up Medicare’s billing codes, which set doctors’ fees for more than 10,000 procedures, ranging from laboratory tests to chemotherapy.

The plan would bring an upheaval to a system that has been in place for decades — and marks the latest sign that Trump’s pick for health secretary, who has railed against everything from the widescale rollout of Covid-19 vaccines to industry’s outsized influence over drug regulations, intends to take a hammer to the American health establishment.

Since the early 1980s, the US government has relied on the AMA, the industry body for more than 170,000 doctors, to maintain billing codes, known as the “current procedural terminology”, that determine how about a fifth of Medicare Part B’s $490bn annual budget is spent. Some 66mn Americans aged over 65 are covered by Medicare.

Kennedy’s team has discussed how the CPT process could be done in-house by the Centers for Medicare and Medicaid Services, according to three people briefed on the matter.

Kennedy’s plan would cause huge bureaucratic upheaval for Medicare and threaten the AMA’s biggest revenue stream. Republican lawmakers previously considered changing the system but baulked at the complexity.

The discussions show how influential Kennedy, known as RFK Jr, is likely to be in directing the Trump administration’s health policy agenda, an issue that did not feature heavily in the president-elect’s campaign. Kennedy has been vocal about taking on the healthcare industry’s influence over policymaking. On Tuesday, Trump appointed TV doctor and former Republican Senate candidate Mehmet Oz as CMS head.

In a post on X following his nomination, Kennedy vowed to “clean up corruption, stop the revolving door between industry and government, and return our health agencies to their rich tradition of gold-standard, evidence-based science”.

The nomination of the former Democrat, who ran as an independent candidate in the presidential election before endorsing Trump, could face a tricky Senate approval process. Pharmaceutical executives have been alarmed at his nomination, which has hit biotech stocks because of his scepticism towards vaccines.

Reforms to the CPT codes would also represent an existential threat to the AMA, which generates more than half of its $495mn annual revenues from its CPT work. A person close to the lobbying group said reforms of Medicare’s billing system could unleash as much chaos as the hack of UnitedHealth’s Change Healthcare division, which affected 100mn patients and roiled healthcare providers for months.

Medicare has no obligation to accept the proposals of the AMA committee, which meets three times a year to update physicians’ billing codes, but it typically accepts the proposals.

The AMA and a representative for Kennedy declined to comment.

Robert Berenson, a CMS official under the Clinton administration who is now senior policy fellow at the Urban Institute, a think-tank, said changes to the codes “would cause chaos without a flight plan about what’s next”.

Berenson pointed out that some other Medicare billing codes are drawn up in-house by the CMS, but he said even if an alternative were found, doctors and the AMA would be “very unhappy” with the change.

WWD : Paris Department Store Printemps Starts Accepting Cryptocurrencies

Paris Department Store Printemps Starts Accepting Cryptocurrencies
The retail institution will now accept Bitcoin, Ethereum and stablecoins through a partnership with Binance Pay and payment platform Lyzi.

PARIS — Legacy department store Printemps is moving with the times. The 159-year-old French retailer will now accept cryptocurrencies through a partnership with Binance Pay and Lyzi.

The move makes it the first department store in Europe to accept crypto, it said on Wednesday. The payment method will be available in Printemps’ 20 branches in France.

“We are proud to be the first department store network in Europe to offer this option to our local and international customers. By partnering with Binance and Lyzi, we are enhancing our customers’ shopping experience and adapting our services to the needs of today’s connected consumers with the latest Web3 solutions,” Printemps director of partnerships Emmanuel Suissa said in a statement.

Crypto holders will be able to use Binance Pay, the payment arm of crypto exchange Binance, via the payment platform Lyzi. The French start-up is a “plug-and-play” solution that integrates with the cash register at the point of sale and does not add fees for brands and merchants. Merchants receive the payments within 48 hours.

Customers must scan a QR code tied to their Binance account and select their cryptocurrency of choice, and confirm the transaction. Shoppers will be able to pay in Bitcoin, Ethereum and the stablecoins Euri, tied to the euro, and USDC, tied to the dollar.

“As retail continues to evolve, we are proud to see our technology supporting such an iconic French brand as Printemps. This initiative demonstrates the synergy possible between traditional luxury retail and innovative financial solutions, offering an enriched shopping experience,” said Binance France chief executive officer David Princay.

“This partnership allows Printemps to offer a cutting-edge payment solution that meets the ever-changing needs of today’s digital customers,” added Lyzi CEO Damien Patureaux. “We are very proud to support Printemps in improving the shopping experience to strengthen its position as a leader in retail innovation and the future of commerce.”

Richard Teng, former monetary regulator in Singapore, took over as CEO of Binance in November last year, following the departure of founder Chengpeng Zhao. Zhao pleaded guilty to allowing money laundering through the exchange, and the company was fined $4 billion by U.S. authorities at the time.

Printemps joins a handful of luxury brands that accept cryptocurrency payments.

Balenciaga has authorized crypto payments at its flagship stores, including on Madison Avenue in New York and Rodeo Drive in Beverly Hills, as well as on its website.

Gucci accepts cryptocurrency at its key U.S. stores, while LVMH Moët Hennessy Louis Vuitton-owned Tag Heuer’s U.S. e-commerce site takes 12 cryptocurrencies including Bitcoin, Dogecoin and Ethereum through a solution provided by BitPay.

Brands including Ralph Lauren, Abercrombie & Fitch, Adidas and Eddie Bauer are also among those that accept cryptocurrencies, along with online marketplaces such as Overstock and Rakuten.

Printemps is set for a U.S. expansion with a spring 2025 opening set for its New York flagship, under development at One Wall Street.