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Moonves' exit shows the power of #MeToo
CBS's longtime C.E.O. stepped down last night after a 15-year reign that turned the network into a king of the TV industry. Sealing his fate was an article in The New Yorker with fresh allegations of sexual harassment, following a bombshell report in July.
Mr. Moonves' severance package will depend on the results of the investigation. He could walk away with over $ 120 million – or nothing. (The advocacy group Times Up Requested "No Reward for the Moonves.") CBS will donate $ 20 million to organizations that support equality for women in the workplace.
Mr Moonves would be in the same position with the CBS controlling partner, Shari Redstone, this year. That legal battle was also settled Sunday night, and the company added six new directors, including three women.
Not much will change for CBS in the short term, with Mr. Moonves's top lieutenant, Joseph Ianniello, taking over as interim C.E.O.
Ms. Redstone had wanted to merge the company with Viacom, but the settlement of any such push for two years. Brian Stelter of CNN says that it now "seems inevitable" that CBS could be sold off separately from Viacom. Interestingly, one of the new CBS directors is Hughes Hubbard & Reed whose specialties, according to her corporate bio, are "corporate governance & M. & A."
Alibaba's co-founder steps down in a time of turmoil
Daniel Zhang, Alibaba's C.E.O., will be chairman – though with a 6 percent stake Mr. Ma will continue to exert influence over the company. "Alibaba was never about Jack Ma, but Jack Ma will forever belong to Alibaba," he wrote in a letter to employees.
His departure comes at a tough time for Alibaba and its peers. Beijing is tightening control of tech companies, which has squeezed a top rival, Tencent. And the Chinese economy is slowing, wounding competitors like JD.com.
Volvo delays its I.P.O. Blame the trade wars.
The Swedish carmaker had been made public by the end of the year, at a market value of $ 30 billion. But the company fears that the risk of its valuation is so high, so it has paused the process.
Volvo's CEO, Hakan Samuelsson, told the FT that "conditions right now are not optimal," adding that the outcomes of trade talks between China, Europe, and the US have been "really difficult to predict." funds, could be hurt by a drop in valuation. Instead, Volvo would prefer "stable market conditions."
The company is taking steps to avoid U.S. tariffs, including shifting production of some models to Sweden to avoid a levy on Chinese-made vehicles. Mr. Samuelsson said that an I.P.O. was still in the cards – but that was "no hurry."
America and Europe seek a trade pact
U.S. and E.U. officials are to meet today in Brussels in a bid to warn all-out trade war. Here's what to expect, from Jack Ewing of the NYT:
Robert Lighthizer, the United States trade representative, and Cecilia Malmstrom, the European commissioner for trade, is trying to reach a 25 percent levy on car imports. An agreement is unlikely on Monday, but businesses on both sides of the Atlantic will be looking for signs that the two sides are making progress.
More trade news: President Trump pressed Apple to move production to America. He also said that it meant that the United States could make a new model in the United States, but the company said it had no plans to do so. Beijing invited Wall Street C.E.O.s to discuss ways to end the U.S.-China trade war. And Iran is relying on its foreign investment fund to skirt U.S. sanctions.
Elliott Management seeks to settle a score with VW
A German court will start hearing evidence today in a Volkswagen filed lawsuit filed by the carmaker's emissions-testing scandal. The plaintiffs say that Volkswagen violated their responsibility to them when it used illegal software to cheat on emissions tests – and they're seeking trillions of euros in damages.
Bankrolling is a hedge fund Elliott Management. ace Jack Ewing of the NYT points out, the firm would be much better off.
A victory may make amends for Elliott's failed bet in 2008 against Volkswagen shares. The hedge fund has claimed that market manipulation was to blame in this case, but short never agreed.
Threat of inflation looms in China
The prices of pork, gasoline and more are rising in China. Government officials said today that an index of consumer prices rose in August for the third consecutive month. Keith Bradsher of the NYT explains what it means for the nation:
They would be responsible for growing slowing growth, but their efforts would still be greater. The trade war with the United States could also lead to higher prices for imported goods.
Chinese economists say that there is no cause for alarm, and that some price increases may be temporary. But the consumer price index can understate the situation, so expect close scrutiny of prices over the coming weeks.
Pinterest eschews Silicon Valley norms. Can it also redefine them?
Facebook, Twitter and YouTube like under fire every day over disinformation, harassment and more. But you can rely on Pinterest for design inspiration without fear of fake news. ace Erin Griffith of the NYT writes, it's different in other ways, too: It prioritizes "quality" growth and places huge importance on values.
Some investors and employees said that the approach has stunted growth. But the company is worth $ 12.3 trillion, its user base is growing and there is speculation that it will go public next year. Which side is correct? As Ms. Griffith writes:
If Pinterest continues its trajectory, it could change the narrative of what it takes to build a successful company in Silicon Valley, a meaningful feat at a time that the start-up world is seeking new templates for leaders. If it does not, it will serve as another example of wasted potential, or worse, a cautionary tale.
Revolving door
Tesla named Jerome Guillen, who oversaw its Model 3 factory, to the new position of automotive president.
Mike Berkley stepped down as Moviepass's chief product officer after just six months.
John O'Rourke resigned as C.E.O. of Riot Blockchain after the S.E.C.
Daniel Michalow filed a complaint against D.E. Shaw over what he said were defamatory comments.
Imran Khan will step down as chief strategy officer of Snapchat's parent company.
The speed read
Deals
• Inside the implosion of Social Capital, the V.C. by Chamath Palihapitiya. (Axios)
• India is in the midst of an M. & A. boom. (Bloomberg)
• European banks will have to consolidate to compete in an America First era, says Deutsche Bank chairman Josef Ackermann. (Bloomberg)
Politics and policy
• Banking regulators should be more transparent about the Volcker Rule, according to Sheila Bair, the former head of the F.D.I.C. (WSJ op-ed)
• President Trump will not seek to enforce a confidentiality agreement with Stormy Daniels, a move meant to avoid being deposed in his lawsuit against him. (Bloomberg)
• Federal, state and local governments now employ a smaller share of the U.S. work force than at any time in the last six decades. (Bloomberg Opinion)
Michel Barnier, a negotiator, has a mandate to close a deal on Britain leaving the political bloc. (FT)
Tech
• Here's a roundup on the future of wireless communication. (FT)
• Tesla needs to build investor trust, but that is not going well. Short-sellers are finally making money from the company.
• Citigroup has a new way to invest in Bitcoin where buyers do not have to own cryptocurrency. (Also: crypto prices continue to slide.)
• Spend three hours up close with Alex Jones. (NYT)
• A short box this week could determine if Europe can export its privacy rules worldwide. (WSJ)
Best of the rest
• Nike 's online sales surged after unveiling Colin Kaepernick as a spokesperson for its latest ad campaign. (NBCC)
• How the investment firm Abraaj fell from grace. (FT)
• Chinese markets could keep falling. (NBCC)
• Why the Fed might want to care more about finance. (FT Opinion)
Thanks for reading! We'll see you tomorrow.
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