Elon Musk’s Growing Influence and Its Impact on His Businesses
Elon Musk’s increasing influence in government has become a double-edged sword for his businesses. While some, like X (formerly Twitter), are seeing renewed investor interest, others, such as Tesla, are facing potential setbacks. Banks have successfully sold off most of the $12.5 billion in debt tied to X, with investors betting on the platform’s future due to Musk’s central role in government. This shift in investor sentiment is a stark contrast to the skepticism surrounding Musk’s ability to use his influence to directly benefit his companies, such as SpaceX. However, Tesla may have lost out on a potential $400 million State Department contract, highlighting the complexities of Musk’s dual role as a business magnate and a government influencer. Joe Gebbia, a co-founder of Airbnb and a close associate of Musk, is also set to join Musk’s government cost-cutting task force, further intertwining Musk’s business and political ventures.
Markets React to Trump’s Tariff Threats with a Shrug
The markets have largely dismissed President Trump’s latest tariff threats, with stocks rallying in China and the dollar falling. Despite the potential disruption to global trade, investors seem unconcerned, likely due to the lack of detailed plans in Trump’s executive order. The measures, which include reciprocal tariffs on all trading partners, won’t take effect until early April, giving federal agencies time to assess country-specific levies. This delay has been interpreted as an opportunity for negotiation, with countries like Vietnam, Taiwan, and India actively trying to avoid tariffs by increasing imports of U.S. goods. The E.U. is also preparing for potential negotiations, with its trade commissioner planning to meet with Trump’s commerce secretary. Meanwhile, Trump has hinted at additional tariffs on automobile imports, which could have inflationary effects and spook investors.
Legislative and Legal Battles Heat Up
The legislative and legal landscapes are seeing significant activity, with several high-profile cases and resignations making headlines. The acting U.S. attorney in Manhattan, Danielle Sassoon, resigned over the Eric Adams corruption case, raising questions about the independence of Jay Clayton, Trump’s pick for the Manhattan U.S. attorney’s office. Meanwhile, TikTok has returned to the Apple and Google app stores after the Justice Department assured the tech giants they wouldn’t face fines, despite a U.S. law banning the Chinese-owned platform. The situation remains uncertain, with many legal experts questioning the administration’s refusal to enforce the law. In another development, Beijing has invited DeepSeek’s chief, Liang Wenfeng, to a high-level tech meeting, signaling China’s growing focus on artificial intelligence and a potential thaw in relations with Alibaba co-founder Jack Ma.
Musk’s X Debt Finds Eager Buyers
Investors are flocking to buy the $12.5 billion in debt tied to Elon Musk’s X, with banks selling off $4.7 billion in the latest round. This marks a significant shift from just two years ago, when investors were hesitant to touch X’s debt. The high demand is attributed to Musk’s growing influence in Washington, where he has direct access to President Trump and billion-dollar government contracts for SpaceX. While X’s revenue increased by 40% last year, driven by cost-cutting measures and the growth of its premium service, questions remain about whether Musk’s companies are benefiting unduly from his political power. Musk has emphasized the need for innovation and user growth, but the long-term implications of his dual role remain uncertain.
Murdoch Family Drama Comes to Light
A rare glimpse into the Murdoch family’s internal dynamics has been revealed through court documents. Elisabeth Murdoch expressed strong opposition to her father Rupert’s plans to reduce her and her siblings’ voting power in the family trust that controls the media empire, which includes Fox News and The Wall Street Journal. Her comments, likening the situation to “North Korea,” highlight the tension within the family over control of their vast media holdings. The article, sourced from over 3,000 pages of court material, provides a fascinating look at the power struggles within one of the most influential media families in the world.
Banking and Politics Collide on Capitol Hill
The issue of “debanking” has taken center stage on Capitol Hill, with lenders accused of shutting down accounts based on conservative beliefs. President Trump has accused banks like Bank of America and JPMorgan Chase of engaging in this practice, prompting Senate hearings. Bank CEOs have denied targeting customers based on political or religious affiliations, attributing account closures to strict regulations aimed at preventing money laundering and financial crime. However, senators like Elizabeth Warren argue that banks are taking shortcuts to comply with these regulations, potentially harming legitimate customers. The Federal Reserve has announced plans to reexamine the issue, raising the possibility of new rule changes. The debate continues to be a contentious issue, with both sides presenting different diagnoses of the problem and its solutions.
