>>> Novo Nordisk's oral semaglutide 25 mg (Wegovy in a pill*) delivered 16.6% w

Novo Nordisk's oral semaglutide 25 mg (Wegovy in a pill*) delivered 16.6% weight loss in people with obesity in a newly published study (58.20 +1.00)
  • Oral semaglutide 25 mg (the once-daily pill formulation of Wegovy) achieved significant weight loss, with one in three study participants losing 20% or more body weight.
  • Oral semaglutide 25 mg also demonstrated improvements in the ability to perform everyday physical activities such as bending, standing, walking, being physically active, and improvements in cardiovascular risk factors.
  • Oral semaglutide 25 mg is the first oral GLP-1 therapy submitted to the US Food and Drug Administration for chronic weight management,2 and Novo Nordisk has already begun production at its US sites.

>>> Europe : Brokers Upgrades & Downgrades - 17th of September 2025

>>> Up
* AbbVie Raised to Buy at Berenberg; PT $270
* Centrica Raised to Overweight at Morgan Stanley; PT 210 pence
* DSV Raised to Buy at ABG; PT 1,600 kroner
* EssilorLuxottica Raised to Buy at Rothschild & Co Redburn
* Grenergy Renovables Raised to Buy at Bestinver; PT 79.50 euros
* Novo Raised to Buy at Berenberg; PT 425 kroner
* Novo ADRs Raised to Buy at Berenberg; PT $67

>>> Down
* Eli Lilly Cut to Hold at Berenberg; PT $830
* Eutelsat Cut to Add at AlphaValue/Baader
* FedEx Cut to Inline at Evercore ISI on Demand Headwinds
* Merck & Co Cut to Hold at Berenberg; PT $90
* M. Vest Water Cut to Hold at Norne Securities; PT 9 kroner
* Norsk Hydro Cut to Hold at ABG; PT 70 kroner
* Solvay Cut to Underweight at Morgan Stanley; PT 25 euros
* Tenaris ADRs Cut to Neutral at Piper Sandler; PT $41
* Wacker Chemie Cut to Underweight at Morgan Stanley; PT 59 euros

>>> Initiation
* Avidity Biosciences Rated New Buy at Roth Capital Partners
* BKW Rated New Hold at Octavian; PT 175 Swiss francs
* Rheinmetall Rated New Buy at William O'Neil
* Saab Rated New Sell at Inderes; PT 310 kronor
* Yubico Rated New Buy at ABG; PT 160 kronor

>>> Call
* Alibaba Shares Rise After Goldman Lifts Target on Cloud Growth
* Centrica Upgraded at Morgan Stanley, Now Top UK Utility Pick
* Indra is ‘Too Cheap to Be Ignored,’ Initiated Buy at Berenberg
* NIO Shares Rise as UBS Upgrades on Consumer Confidence
* Novo Raised to Buy at Berenberg, Now Favored Play in Obesity
* Tenaris Cut to Neutral at Piper Sandler on Pricing Outlook

>>> What to look at today - 17th of September 2025

Asian stocks swung between small gains and losses after a nine-day rally lifted equities to a record, as investors awaited the Federal Reserve’s interest-rate decision. The MSCI Asia Pacific Index edged up 0.1%, while Chinese technology stocks listed in Hong Kong jumped to their highest level in four years as optimism over artificial intelligence fueled demand. Baidu Inc. surged as much as 16% after a stock upgrade. Gold held recent gains that saw it rise above the $3,700-an-ounce level for the first time, buoyed by a weaker dollar. A gauge of the currency hovered around levels last seen in March 2022. In Japan, a 20-year government bond auction drew the strongest demand since 2020 as higher yields lured investors despite domestic political uncertainty. A solid reading on US retail sales Tuesday did little to sway markets, with attention firmly on the Fed meeting. Investors are looking for clues on the path of interest rates that will shape the outlook in the months ahead, with some bond traders stepping up options wagers that the central bank will deliver at least one half-point cut. In Asia, Baidu rose after Arete Research upgraded the stock to buy from sell saying the search engine operator’s new in-house chip venture has the potential to more than offset the struggling online advertising business. Alibaba shares advanced as much as 4% after Goldman Sachs Inc. raised the company’s price target for the Chinese technology firm and lifted its estimated value of the company’s cloud business, citing the latest AI models. In other corners of the market, Treasuries held their gains with the yield on two-year notes holding at 3.51%. Oil steadied after a three-day gain as traders assessed the fallout from Ukrainian attacks on Russian crude infrastructure. Meanwhile, money markets are fully pricing in a quarter-point Fed reduction, and a series of interest-rate cuts over the next year. An outlook echoing that view would be an encouraging sign for stock bulls, who have largely banked on a gradual easing path that keeps the economy from sliding into a recession. Investors will look for changes in the latest quarterly rates projections, known as the dot plot, and pore over Chair Jerome Powell’s remarks later. The “real interest” will lie in how many members join Stephen Miran in dissenting in favor of a 50-basis-point cut, wrote Tony Sycamore, a market strategist at IG Australia Pte. US After Hours NFE +35% jumps following supply deal with Puerto Rico; AIR +5.3% higher on Cebu Pacific deal; JPM +0.1% increases dividend.

Nikkei -0.29% Hang Seng +1.64% CSI +0.49% Shanghai +0.25% Shenzen +0.67%

Eur$ 1.1852 CNH 7.1037 CNY 7.1081 JPY 146.50 GBP 1.3642 CHF 0.7872 RUB 83.2127 TRY 41.2977 WTI$ 64.40 -0/12% Gold 3,682 -0.22% BTC 116,433 -0.43% ETH 4,497 -0.13%

S&P -0.03% Nasdaq -0.02% EuroStoxx +0.34% FTSE +0.13% Dax +0.36% SMI +0.25%

Macro :
- Citadel Securities’ Rubner Sees Stocks Rallying After Brief Jolt
- Hedge Fund Qube Starts Charging Some Staff 35% Incentive Fees
- Strategists’ S&P 500 Index Estimates for Year-End 2025 (Table)
- Politicizing Fed Would be ‘Huge Mistake’: KKR’s Kravis to Echos

Keep an eye on :
- BABA US : Alibaba Shares Rise After Goldman Lifts Target on Cloud Growth
- BABA US : Alibaba’s AI Chip Effort Quickens With Big Client China Unicom
- AAL LN : Anglo, Teck Need to Prove More Benefits to Canada, Minister Says
- BIDUS US : 9888 HK : *BAIDU SHARES JUMP 14% IN HK ON OPTIMISM OVER CHIP VENTURE
- BEI GY : Beiersdorf Holder Offers About 5m Shares, Terms Show
- CYTK US : Cytokinetics Said to Offer Up to 2.25% Coupon on Convertible
- CYTK US : Cytokinetics Still Sees FDA Decision on Heart Drug in Late Dec.
- DEC LN : Diversified Energy Offering by Holders Prices at $13.75/Share
- FLATB SS : Flat Capital Plans to Integrate Double Sunday at SEK9.5b Value
- HEX NO : Hexagon Composites Offering of 42m Shares Prices at NOK14/Share
- INTC US : Abu Dhabi’s MGX Backs Intel Spinoff Altera
- MBTN SW : Meyer Burger Says no ‘Realistic Chance’ of Saving Entire Group
- ML FP : Michelin August Car and Light Truck Original Equipment Tires -2%
- NESN SW : *NESTLÉ CHAIRMAN PAUL BULCKE TO STEP DOWN EARLIER THAN PLANNED
- NEXT NO : Next Biometrics Group Offering Prices at NOK4.25/Share
- NIO US : NIO Shares Rise as UBS Upgrades on Consumer Confidence
- NDX1 GY : Nordex Gets 112 MW Wind Project Order in Ecuador
- NOVOB DC : Novo Also Gets FDA Warning for Oprah Weight Loss Drug Video
- NVDA US : US Panel Probes Huawei Affiliate’s Presence on Nvidia Campus
- ORCL US : TikTok Buyers to Include Oracle, Silver Lake and Andreessen
- PEB US : Pebblebrook Said to Offer Up to 2% Coupon on $350M Convertible
- PNL NA : PostNL Targets Normalized Ebit Above €175M For 2028
- 1913 HK : Prada : +2.69%
- PRX NA : Prosus Doubles Stake in India’s Urban Ahead of $1.8 Billion IPO
- RNO FP : Russia Refuses to Register Renault’s Trademark, RIA Novosti Says
- SAN FP : Sanofi’s Brivekimig Gets Positive Results in Phase 2a Study
- Space X : SpaceX Is Working With Chip Makers for Starlink Cell Service
- StubHub IPO : Ticket Platform StubHub Raises $800 Million in Midrange IPO
- SYENS BB : Syensqo Names Radossich CEO From 2026, Kadri to Step Down
- UCB BB : UCB’s Bimzelx New Data in HS Shows Sustained Disease Control
- ULVR LN : Ben & Jerry’s Co-Founder Jerry Greenfield Quits: FT
- Vrisure IPO : Verisure Seeks to Raise About €3.1b Proceeds in Stockholm IPO
- VOW GY : Handelsblatt: Car manufacturer: Audi faces billions in tariffs
- WaterBridge IPO : WaterBridge Upsized IPO Shares Priced at $20 Each

The Information : Why TikTok America’s Growth Could Surge

Why TikTok America’s Growth Could Surge

Our long international nightmare may soon be over. Both China and the U.S. seem to be in agreement about the terms under which TikTok U.S. will be sold to a new company majority-owned by Americans, judging by a statement overnight from a Chinese government official. We don’t know the details, including the full investor lineup in the new TikTok, whether the U.S. government will take a stake (as Trump earlier this year suggested should happen) or the price being paid. A longer-term question is how the new U.S.-only version of TikTok will fare as a business.

In sheer revenue terms, TikTok America (as the company was to be called as of earlier this year) is likely to be second among social media firms to Meta in revenue, well ahead of other social media firms like Snap, Pinterest, X and Reddit. That’s based on our report in April that TikTok parent ByteDance’s international revenue—primarily TikTok—rose 63% to $39 billion in 2024. Even if TikTok only accounts for $30 billion of that, the U.S. version seems likely to be the majority of that.

The U.S. is the world’s biggest ad market and accounts for the majority of the revenue of smaller social media firms. (One wild card is TikTok’s shopping business, which may be more international). Even so, it seems reasonable to think TikTok America is at least a $20 billion-a-year revenue business. In comparison, Snap generated $5.4 billion last year, while Pinterest was even smaller.

TikTok’s ad business should be able to grow quickly, once the longstanding uncertainty about its future disappears. What we don’t know is the company’s profitability. Our past reporting on ByteDance’s finances suggested that, at least in 2023, TikTok was nowhere close to turning a profit. That could have changed in 2024, given the top-line growth. But there are a few variables that could affect the profitability of the new U.S.-only TikTok. One is the likelihood that TikTok will have to staff up, not only to make up for people leaving amid the uncertainty over the past year, but also to replace functions previously handled by ByteDance. That could raise its expenses.

Another variable which could affect TikTok’s business prospects is its relationship with the U.S. government. Earlier this year, President Donald Trump said the government should get a stake in TikTok as a condition of allowing it to stay alive. That doesn’t look as outlandish as it might have a few months ago, given that the government is now a shareholder in Intel. Still, the idea of the government being a shareholder in one of the main sources of news for many Americans is likely to raise some eyebrows. Perhaps Trump will settle for a revenue share, as he’s arranged with Nvidia for its Chinese AI chip revenue. We reported earlier this year that some bidders for TikTok had discussed giving the government a 50% revenue share—that seems like a lot!—or half of the proceeds from a future sale.

How this plays out will likely be a big issue for investors in the new company, expected to include Oracle and Andreessen Horowitz, among others. Surely they don’t want to cripple TikTok’s chances of making money by splitting its revenue with the government—unless their participation is just a way to suck up to Trump. Nowadays, one never knows.

>>> Stoxx 600 Pre-Market Indications

  • SAP (SAP TH) +1.2%
  • Centrica (CENB TH) +1.2%
    • Centrica Upgraded at Morgan Stanley, Now Top UK Utility Pick
  • Rheinmetall (RHM TH) +1%
  • BAE (BSP TH) +1%
  • Continental (CON TH) +0.9%
  • ASML (ASME TH) +0.9%
  • Novo (NOV TH) +0.8%
    • Novo Raised to Buy at Berenberg, Now Favored Play in Obesity
  • Standard Chartered (STD TH) -1%
  • Beiersdorf (BEI TH) -1.8%
    • Beiersdorf Holder Offers About 5m Shares, Terms Show
  • Prudential (PRU TH) -2.1%

>>> TradeGate Pre-Market Indications

DAX:
  • Rheinmetall (RHM TH) +1.4%
  • SAP (SAP TH) +1.3%
  • Beiersdorf (BEI TH) -1.7%
    • Beiersdorf Holder Offers About 5m Shares, Terms Show
MDAX:
  • TAG Immobilien (TEG TH) +1.6%
  • RTL (RRTL TH) +1.1%
  • Wacker Chemie (WCH TH) -2.6%
    • Wacker Chemie Cut to Underweight at Morgan Stanley; PT 59 euros
SDAX:
  • Formycon (FYB TH) +1.6%
  • PVA TePla (TPE TH) -1.6%

The Information : Abu Dhabi’s MGX Backs Intel Spinoff Altera

Abu Dhabi’s MGX Backs Intel Spinoff Altera

MGX, the United Arab Emirates-backed fund, will join Silver Lake in purchasing a 51% stake in Altera, a programmable chip business spinning out of Intel, the fund said Tuesday.

Altera is MGX’s first investment in a chip business since the UAE started the fund last year with about $100 billion to invest in artificial intelligence companies. MGX has also invested in AI model developers OpenAI and xAI.

Altera’s chips can be programmed for a range of uses in wireless networking equipment, robotics and data centers running AI applications.

Intel in April said it was selling 51% of Altera in a deal valuing the company at $8.8 billion as part of the storied chip company’s efforts to simplify its offerings and shore up finances. MGX didn’t say how much it’s investing in Altera.

The Information : Who Will Own the New OpenAI, in One Chart

Who Will Own the New OpenAI, in One Chart

One question has loomed over OpenAI investors for years: How would they generate a return on their investment? The ChatGPT maker is a nonprofit that capped the potential returns of early backers in its for-profit arm, such as Khosla Ventures and Microsoft, and would prevent the newer investors including Thrive Capital and SoftBank from reaping major gains unless the for-profit arm was restructured.

As the chart below shows, the company’s planned restructuring—which Microsoft and two state attorneys general still need to approve—would give all those shareholders traditional corporate equity stakes with a theoretically limitless upside.

As the biggest outside backer, Microsoft ends up with the biggest stake, roughly 28% in the restructured OpenAI, according to The Information’s analysis of data OpenAI shared with potential investors in an ongoing share sale that values the for-profit arm at $500 billion. That means Microsoft’s stake would be worth about $140 billion on paper. That figure is higher than the share of OpenAI’s future profits Microsoft is currently entitled to under the capped-return structure.

However, as we have reported, Microsoft wants a lot more from OpenAI than just that stake, including guaranteed access to the startup’s intellectual property beyond 2030. When the ink is dried on that deal, some of the proposed stakes in our chart could change.

In the proposed new version of OpenAI, current and former employees would collectively own about 25% of shares, currently worth about $125 billion on paper, according to The Information’s analysis. And investors in the ongoing $41 billion fundraise led by SoftBank, including Founders Fund, Sequoia Capital, Andreessen Horowitz and Dragoneer Investment Group, will together own about 13%, according to the documents. That’s worth roughly $65 billion.

Previously, early investors as well as employees were entitled to a slice of the company’s future profits, as a second chart shows. Without the restructuring, much of the stakes held by the likes of Thrive and SoftBank, which together have poured tens of billions of dollars into OpenAI in the past couple of years, would effectively be much lower than they likely were anticipating. But these investors can also get their money back if the restructuring doesn’t go through.

Some investors including Thrive and SoftBank separately purchased some shares from employees, giving them some rights to future profits under the current structure. (OpenAI doesn’t expect to turn a profit until 2030.)

The nonprofit whose board governs OpenAI appears set to get a stake of about 27% in the restructured company, worth about $135 billion on paper, according to the analysis. Under the current structure, the nonprofit is in line to receive all profits generated by the for-profit arm after nearly $275 billion in profits are distributed to other shareholders.

The earliest investors in the for-profit arm—Khosla, the University of Michigan, Reid Hoffman’s foundation, Gmail creator Paul Buchheit and Y Combinator—will end up with a combined equity stake that’s in the low-single digits, according to a person with knowledge of the breakdown. That could be worth close to 1% of the restructured company, amounting to about $5 billion. (These investors put a combined $194 million in capital into the unit in 2019, according to disclosures made to investors.)

Some of the newest OpenAI shareholders also will own a significant slice. Shareholders of Io, the secretive hardware startup founded by ex-Apple designer Jony Ive, which OpenAI bought earlier this year for $5 billion in stock, will own about 1.6% of the proposed restructured version of OpenAI, according to documents seen by The Information.

At a $500 billion valuation, that means investors including Thrive, Emerson Collective and SV Angel own a combined $7.75 billion of OpenAI—not a bad paper return for investors in a startup launched just a year ago!

WSJ : America Loves Cocaine Again—Mexico’s New Drug King Cashes In

America Loves Cocaine Again—Mexico’s New Drug King Cashes In
The Trump administration’s war on fentanyl created an opening for ‘El Señor Mencho’ to smuggle cocaine into the U.S. by the ton

From a heavily guarded mountain hideout in the heart of the Sierra Madre, 59-year-old Nemesio “Mencho” Oseguera reigns as the new drug king of Mexico, aided in his ascendance by America’s resurging love of cocaine and the Trump administration’s escalating war on fentanyl.

Oseguera spent decades building his Jalisco New Generation Cartel into a transnational criminal organization fierce enough to forge a new underworld order in Mexico, displacing the Sinaloa cartel, torn by warring factions, as the world’s biggest drug pusher.

The Sinaloans, Mexico’s top fentanyl traffickers, got caught in the crosshairs of the Trump administration, which promised to eradicate the synthetic opioid. The crackdown has left an open field for Jalisco and its lucrative cocaine trade, elevating Oseguera to No. 1.

“‘Mencho’ is the most powerful drug trafficker operating in the world,” said Derek Maltz, who served this year as interim chief of the Drug Enforcement Administration. “What is happening now is a pivot to much more cocaine distribution in America.”

Cocaine sold in the U.S. is cheaper and as pure as ever for retail buyers. Consumption in the western U.S. has increased 154% since 2019 and is up 19% during the same period in the eastern part of the country, according to the drug-testing company Millennium Health. In contrast, Fentanyl use in the U.S. began to drop in mid-2023 and has been declining since, according to data from the Centers for Disease Control and Prevention.

For new users, cocaine doesn’t carry the stigma of fentanyl addiction. Middle-class addicts and the tragic spectacle of homeless crack-cocaine users in the 1990s helped put a lid on America’s last cocaine epidemic.

Oseguera, who grew up poor selling avocados, is making a killing from cocaine buyers in the U.S. His cartel transports the addictive powder by the ton from Colombia to Ecuador and then north to Mexico’s Pacific coast via speedboats and so-called narco subs.

U.S. forces in the Caribbean recently blew up two speedboats, including one this week, that President Trump alleged were ferrying cocaine and fentanyl from Venezuela to the U.S. Fentanyl is largely produced in Mexico, and most cocaine ships through the Pacific. All those aboard the two vessels were killed.

The president also has threatened military action against Mexican drug cartels.

The U.S. has a $15 million bounty on Oseguera, but he rarely leaves his mountain compound, according to authorities. Few photos of him circulate. The cadre of men protecting Oseguera, known as the Special Force of the High Command, carry RPG 7 heat-seeking, shoulder-fired rocket launchers capable of piercing a tank, people familiar with cartel operations said.

Visitors to the drug lord’s stronghold are hooded before they embark on the six-hour car trip through terrain sown with land mines, those people said. Locations of the pressure-activated explosives are known only by members of Oseguera’s inner circle.

Oseguera’s fortunes rose after the U.S. pressured Mexico to crack down on the Sinaloa cartel, where Oseguera got his start in the trade. The Sinaloans pioneered the manufacturing and smuggling of fentanyl, an industry breakthrough that sent cartel revenue soaring and drove up the number of fatal overdoses in the U.S.

For the Sinaloans, landing in the administration’s spotlight couldn’t come at a worse time.

The capture of Sinaloa cartel leader Joaquín “El Chapo” Guzmán in January 2016 and his extradition to the U.S. a year later, set in motion a precipitous decline. Guzmán’s four sons inherited their father’s empire, highly valued for its network of smuggling tunnels beneath the U.S.-Mexico border, used for moving cocaine, fentanyl and other contraband.

The sons, known collectively as the little Chapos, or “Chapitos,” shifted production resources to fentanyl, which compared with the heroin their father had brought into the U.S. by the ton is easier to smuggle and costs just a fraction to produce.

The Chapitos triggered an internecine war last year as a result of a plot against Ismael “El Mayo” Zambada, the 70-something co-founder of the Sinaloa Cartel. Zambada was forced aboard a private plane bound for the U.S. by Joaquin Guzmán, one of El Chapo’s sons, who hoped for leniency from U.S. prosecutors.

Both men were taken into U.S. custody when they landed outside of El Paso, Texas. Zambada pleaded guilty to drug-trafficking charges last month and faces a possible life sentence. Guzmán, still in custody, pleaded not guilty to trafficking charges.

Zambada’s capture led to a violent split between men loyal to Zambada’s son, Ismael “Mayito Flaco” Zambada, and those allied with the Chapitos. An estimated 5,000 people from both camps have been killed or gone missing in the conflict, along with bystanders caught in the crossfire. Mexico has sent 10,000 federal troops in the past year to the state of Sinaloa, where the federal government has been largely helpless to end the fighting.

Hemmed in by U.S. and Mexican authorities on one front, and Zambada’s men on the other, the Chapitos swallowed their pride and sought the help of Oseguera, once a sworn enemy.

Each side had something the other wanted. Oseguera agreed to meet, looking to a future where he and his Jalisco cartel would rule as Mexico’s dominant criminal enterprise.

Landmark drug deal
In December, Oseguera sat down with a top lieutenant of Iván Archivaldo Guzmán, who leads Sinaloa’s Chapito faction. At the meeting in Mexico’s western state of Nayarit, Oseguera, who was operating from a position of strength, agreed to supply the Chapitos with weapons, cash and fighters.

In exchange, the Sinaloans opened their smuggling routes and border tunnels into the U.S., said people familiar with the meeting. The Jalisco cartel previously paid hefty fees to use the tunnels to move drugs beneath the U.S.-Mexico border, people familiar with its operations said.

The agreement also divvied up the U.S. trafficking trade, these people said: The Chapitos would keep their focus on serving American fentanyl addicts. Oseguera would concentrate on cocaine and its down-market cousin, methamphetamine. The Jalisco cartel now ferries tons of cocaine and record amounts of methamphetamine into the U.S. through Sinaloan-built tunnels, as well as fentanyl, the people familiar with cartel operations said.

The Sinaloa-Jalisco agreement was “an unprecedented event in the balance of organized crime,” Mexico’s attorney general’s office said in a July report. The Jalisco cartel compares with the Sinaloa cartel at the height of its power before El Chapo’s arrest, according to the DEA’s latest drug-threat assessment.

Oseguera caught another break from the Trump administration. The president’s campaign to deport immigrants in the U.S. illegally has taken federal agents away from drug-traffic interdiction. In Arizona, two Customs and Border Protection checkpoints along a main fentanyl-smuggling corridor from Mexico have been left unstaffed. Officers stationed there were sent to process detained migrants. A senior administration official said the U.S. border is more secure than it has ever been.

Colombia is producing records amounts of cocaine, and the volume of the drug arriving in the U.S. is driving down prices, the people familiar with cartel operations said.

Cocaine prices have fallen by nearly half to around $60 to $75 a gram compared with five years ago, said Morgan Godvin, a researcher with the community organization Drug Checking Los Angeles. “The price of pure cocaine has plummeted,” Godvin said.

The Jalisco cartel also draws steady revenue from diverse sources outside narcotics.

The cartel acts as a parallel government in the southwestern state of Jalisco and other parts of Mexico, taxing such goods as tortillas, chicken, cigarettes and beer, security experts said. It controls construction companies that build roads, schools and sewers for the municipal governments under cartel control.

A booming black market for fuel is another cash cow. Gasoline and diesel stolen from Mexican refineries and pipelines—or smuggled into Mexico from the U.S. without paying taxes—is sold at below market prices to small and large businesses. U.S. officials estimate as much as a third of the fuel sold in Mexico is illicit. The head of the Jalisco cartel’s fuel division is nicknamed “Tank” for his prowess at stealing and storing millions of gallons of fuel.

The cartel profited from the passage of migrants bound for the U.S., charging them thousands of dollars each to pass through territory it controls. And in recent years, the cartel has operated more than two dozen call centers to scam senior citizens out of hundreds of millions of dollars in a vacation-timeshare fraud, according to the Treasury Department.

Family ties
Oseguera, celebrated as “El Señor Mencho” in narco-ballads, is viewed as an altruistic patriarch by some poor Mexicans living in areas controlled by the cartel, which organizes town fiestas and hands out food, medicine and toys.

In 1994, Oseguera was convicted of dealing heroin and served nearly three years in a California prison. He was deported to Mexico, where he married the daughter of the boss of a Sinaloa-affiliated gang. By 2011, he was leading his own organization based in Jalisco state.

Jalisco gunmen stormed a Puerto Vallarta restaurant in 2016 and kidnapped two Chapitos—Iván Archivaldo and Jesús Alfredo—who were celebrating Iván’s birthday. Oseguera released them after an intervention by “El Mayo” Zambada, who later became a target of the Chapitos.

Like many of Mexico’s cartels, Jalisco is largely a family business. One of Oseguera’s brothers, Antonio, known as Tony Montana after the Al Pacino character in the movie “Scarface,” was in charge of acquiring heavy weapons, the attorney general’s report said. The brother was arrested in 2022, and in February he was among 29 drug bosses Mexico expelled to the U.S., hoping to address Trump’s demands.

Oseguera’s son, who served as a top leader in the cartel, was sentenced in Washington, D.C., this year to life in prison for drug trafficking.

Hundreds of gunmen trained by former Colombian special forces work for Oseguera, according to Mexican officials. He travels through his territory in a small convoy of armored vehicles with a team equipped to fight off aggressors until reinforcements arrive. He had a specialized medical unit built near his mountain hideout to care for his advanced kidney disease, according to people familiar with the matter.

Two cartel accountants arrested by Mexican authorities said they were required to leave behind smartphones, Apple Watches and any device with GPS signal before traveling to meet with Oseguera, a precaution against electronic surveillance or tracking, according to the people familiar with the cartel’s operations.

Oseguera has a team that manages more than 50 phones of top cartel lieutenants, people familiar with the operations said. Every week, cartel operatives gather and review phone call logs to ensure the men haven’t been speaking with enemies, security experts said. Afterward, the men get new phones.

In 2020, more than two dozen gunmen fired more than 400 rounds at the armored car ferrying Omar García Harfuch, then Mexico City’s security chief, on the capital’s Paseo de la Reforma. García Harfuch was hit three times but survived. Two of his bodyguards and a woman headed to work were killed.

García Harfuch now serves as security minister for Mexico President Claudia Sheinbaum. He is overseeing the law-enforcement offensive, backed by U.S. intelligence, that has crippled the Chapitos.

Oseguera’s subsequent rise to Mexico’s top drug trafficker puts him in a very dangerous spot, according to a senior Trump administration official.