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Good Monday morning Just at: General Electric Deletion of John Flannery as C.E.O. and named H. Lawrence Culp Jr. as his replacement. (Was this email sent to you? register here.)
What will really change at Tesla?
Elon Musk reached an agreement with the S / E on Saturday night to resolve the securities fraud charges related to his offer to take Tesla privately. The agreement requires him to step down as president of the automaker for three years – although he can stay – and pay a $ 20 million fine. Tesla must also appoint two independent directors and monitor Mr. Musk's communications with investors.
Mr. Musk met with Mark Cuban, an entrepreneur who fought against the S.E.C. before going back on his decision to settle.
The transaction means that Mr. Musk is not likely to be banned from serving as a director or director of a public company and has been coerced by lawyers and shareholders. (Tesla shares fell on Friday, giving short sellers $ 1.3 billion in profits.)
But how much will change?
Investors express hope that new board members will force Musk to focus on problem solving. The many problems of Tesla. In particular, the need to appoint a new president could give Tesla a chance to install a stranger with a new perspective.
But critics quickly stressed that the new president would probably fill the position for a short time. And the two new directors could be rejected by the other board members, who are widely considered to be close to Musk. (Among them is his brother, Kimbal.)
The fact that the company is monitoring Musk's communications with the outside world is perhaps the most important change, given the troubles his tweets have caused. But little has changed so far: he e-mailed Tesla employees Sunday to promise him a quick profit. And this morning he tweeted a link to the video clip "O.P.P." from … Naughty by Nature.
Premium: It is worthwhile to think about the message of the S / C sent here. Mr Musk reportedly gave up an agreement with the agency last Thursday, convinced that he had done nothing wrong. By settling in two days later, the HQ seemed to have taken into account Chief Tesla's quick change of heart.
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Today's briefing was written by Andrew Ross Sorkin in New York, Michael J. de la Merced and Jamie Condliffe in London.
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Nafta survives after all
United States and Canada reached a last-minute deal to save the trade pact last night. The agreement saves the 25-year-old trilateral pact, which was about to collapse after months of quarrels.
The agreement, which will now be called the "United States-Mexico-Canada Agreement", includes major concessions:
• Canada will facilitate the protection of its dairy industry and give the United States greater access to its markets.
• The United States will not eliminate an independent tariff dispute system and will not impose automobile rates in Canada. (The aluminum and steel can stay, though.)
Sunday's breakthrough came after Canada's Prime Minister Justin Trudeau participated in the talks over the weekend. He even asked Mexico, which had already reached an agreement with the United States, to intervene.
Both parties see this as a victory. But President Trump can celebrate the most: as the WSJ notes, it shows that his administration can actually enter into trade agreements, not just tearing old ones or imposing tariffs.
The latest Facebook scandal could cost him $ 1.63 billion
Facebook will be the subject of a close scrutiny of hacking, especially in the EU, whose new data protection regulation can impose heavy fines if a company does not do enough to protect the data from data breaches. users. The WSJ explains that the social network could cope with a maximum fine of $ 1.63 billion if this is the case.
Piracy is another headache for Facebook. Last year, the company was shaken by scandals, including the misuse of user data and the manipulation of the social network for electoral interference.
To come up
The new C.E.O. Goldman Sachs starts. David Solomon takes the reins of Lloyd Wallfein's Wall Street firm. Its rise comes as Goldman reduces its dependence on transactions, to favor companies such as investment banking and consumer credit.
The Eurogroup Finance Ministers meet. They will discuss growth and jobs, as well as exchange rate developments in preparation for IMF meetings. and the G20 countries in Bali, Indonesia, in October.
The British Conservative Party holds its annual conference. Prime Minister Theresa May will face many harsh criticisms of her Brexit strategy and may find herself in a difficult position to maintain control of the party.
The Supreme Court begins a new term with eight judges. For the moment, the court is divided ideologically into two.
The Trump administration passes to the states on net neutrality
California adopted Sunday its own regulation on net neutrality, after the F.C.C. canceled its rules last year. A few hours later, the officials of the Ministry of Justice told the Washington Post that the administration would sue to block the move.
California's new laws are tougher than those promulgated by the Obama administration. They prohibit ISPs from intentionally slowing down web services or blocking content online, and preventing them from accepting money to make certain services faster.
F.C.C. warned that such efforts could be prosecuted. Attorney General Jeff Sessions said California hadenacted an extreme and illegal state law aimed at thwarting federal policy. "
To find out more about what it means, from Tony Romm and Brian Fung from WaPo:
BC's efforts immediately put Washington on a collision course with the states. For starters, more than 20 states filed suit against the FC, arguing that the agency had acted arbitrarily by repealing the rules of net neutrality. Their efforts have been supported by companies such as Mozilla and professional associations representing technology giants including Amazon, Facebook and Google.
California will have more women on the boards of public companies
The state now requires that SOEs based in this country have a minimum number of directors. The new law, the first of its kind in the United States, requires companies to have at least one woman on their board by the end of 2019.
About 165 companies will be involved. For example, Facebook and Tesla do not currently comply and will have to have at least three women on their board by 2021.
The bill has detractors. Even Governor Jerry Brown acknowledged that the law could face legal challenges.
Charles Elson, expert in corporate governance at the University of Delaware, told the NYT that companies "should be able to elect the representatives they want".
Have you felt the recession of 2016?
Most people remember 2016 for continued economic growth, lower unemployment and consumer spending. However, Neil Irwin, Upshot, points out that this has caused economic problems to the US industrial sector, because a network of global events has made life difficult.
Business investment has slowed sharply, due to the mutual weakening of emerging markets, falling oil prices and other commodities and the rising dollar. The suffering was mainly confined to the energy and agriculture sectors and to the manufacturing sectors that supplied them with equipment.
The mini-recession ended when China let the banks borrow more and the Fed kept its interest rates steady. But Irwin notes that the trough could have had serious consequences, including making Donald Trump's economic message more attractive to the affected sectors.
Silicon Valley pay checks are laid bare
Compensation in the boot scene is often extremely monitored. However, venture capital firm Andreessen Horowitz compiled compensation data across the sector, based on surveys of executive search firms. Business Insider has gotten a copy of 2017. Here are some ideas:
• The median salary offer for a C.E.O. The role in a consumer products company in Series C is $ 325,000 in cash, with a bonus of 50% and a stock grant of 6%.
• The median salary of a Senior Engineering Director at a Series A start-up is approximately $ 200,000 in cash, with a share allocation of 0.58%.
Business Insider has created interactive charts using data, and they deserve to be studied to see how much these workers are earning – and how companies are changing their pay as they get older.
Revolving door
ThyssenKrupp named Bernhard Pellens as new president and Guido Kerkhoff as his permanent C.E.O.
Thomas Kurian resigned as president of Oracle product development.
WorldQuant, a Connecticut hedge fund, turned to an unusual recruitment tool: a Global Talent Contest
The speed read
Offers
• Saudi Arabia reportedly halted work on a $ 200 billion solar energy joint venture with SoftBank. (WSJ)
• Slack would work on an initial public offering. (WSJ)
• Husky Energy provided $ 2.6 billion to another Canadian oil producer, MEG Energy. (WSJ)
• Paris seems set to become the new European financial trading center after Brexit. European banks are considering liquidating their derivatives positions in London before that date.
Politics and politics
• Democratic legislators have complained that the F.B.I. The investigation on Brett Kavanaugh is too limited. Several people who hoped to contribute to the survey say they can not reach the agency.
• Few people in Washington are now concerned about the rapid growth of budget deficits. (Bloomberg)
• Democratic judges who claim that President Trump has violated the Constitution because of his trade ties with foreign governments can sue, a judge said. (Fortune)
• The Trump administration is preparing to weaken the rules on mercury emissions. (NYT)
Trade
• Chinese manufacturers cut production in the middle of the US trade war. In the middle of the quarrel, Beijing canceled an annual security meeting with Washington.
• Iranian officials say they are on the verge of concluding an agreement on the sale of oil to Europe, despite US sanctions. (NYT)
• Toyota may temporarily close its main plant in Britain if the country leaves the US factory without agreement. (FT)
Technology
• Google's C.E.O., Sundar Pichai, has agreed to testify before Congress later this year. (NYT)
• Why the Tesla union lawsuit could be a turning point for the technology industry. (Edge)
• Jack Ma has abandoned the ownership of legal entities in the heart of Alibaba. (FT)
• The use of the Internet and social media is stabilizing in America. (Pew Research Center)
• US investigators have failed to force Facebook to intercept voice calls made by its Messenger application. (Reuters)
The best of the rest
• What Jamie Dimon of JPMorgan Chase said in a phone conversation about the importance of women leaders in the workplace (NYT)
• Kosher bacon: an impossible goal? (NYT)
• How Procter & Gamble is trying to repair itself. (WSJ)
• Two-thirds of US economists predict a recession before 2021. (Bloomberg)
• More than half of the world's population now belongs to the middle class. (FT)
• Can a bank reshape Russia? (FT)
Thank you for reading! Well, see you tomorrow.
You can find live updates throughout the day at nytimes.com/dealbook.
We would like your comments. Please send your thoughts and suggestions by e-mail to [email protected].
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