DeSantis’ exit leaves GOP donors facing a dilemma

DeSantis' exit leaves GOP donors facing a dilemma


The effort to elect anyone other than Donald Trump as the Republican presidential nominee received another big, if expected, blow on Sunday when Ron DeSantis dropped out of the race and endorsed the former president. (Other former candidates, including Vivek Ramaswamy and Tim Scott, have also endorsed Trump.)

Republican loyalists are rallying around Trump in a way that is raising questions about the next steps of wealthy donors who have sought to unseat him.

Nikki Haley is now the only potential obstacle to Trump’s nomination. DeSantis entered the race as the former president’s most formidable opponent, but his misstep campaign never turned into a serious threat. His strategic mistakes included speculation, including “anti-woke” fighting His fight against Disney, will resonate with voters. (Politico reports that a top DeSantis fund-raiser proposed legally untested method The campaign continued, but the Florida governor ultimately bowed to electoral reality.)

Haley has embraced her status as the ultimate anti-Trump candidate: “May the best woman win,” she said Sunday. But polls put him about 15 percentage points behind Trump in New Hampshire as voters head to the polls tomorrow.

This indicates that the influence of those who donate large sums of money is limited. DeSantis’ war chest was largely financed deep pocketed beneficiaries, And in recent months, Haley has received support from a bipartisan group of anti-Trump moguls, including hedge fund billionaire Stanley Druckenmiller and Democratic investor and LinkedIn founder Reid Hoffman. (Jamie Dimon of JPMorgan Chase has publicly called on people of all political persuasions to support Haley.)

But as Ken Vogel of The Times notes, the moneyed class has won over not guaranteed electoral success for years, Just ask Jeb Bush.

What will those anti-Trump donors do? Some are continuing to support Haley: Several Wall Street veterans, including Druckenmiller and Henry Kravis, will Host a Fundraiser for them on January 30, a week after the Republican and Democratic New Hampshire primaries. And Americans for Prosperity, a super PAC backed by the Koch business empire, said it would continue to support Haley. at least super tuesday early March.

But if Haley loses badly in New Hampshire, how long can business leaders accustomed to success hold on to unsuccessful bets? ken langoneThe co-founder of Home Depot and one of her supporters, recently said he wanted to see how she performs tomorrow before giving more money.

The war in Gaza has affected the economy of the Middle East. In three months, the conflict has cost Egypt, Lebanon and Jordan more than $10 billion in economic losses, and risks pushing 230,000 people into poverty. Meanwhile, international support for Israel is waning due to casualties on the Gaza Strip and attacks by Houthi rebels on commercial ships in the Red Sea, driving up shipping costs.

Exxon Mobil sues climate investors to stop proxy fight. The fossil-fuel giant asked a Texas federal court to throw out Follow this and a resolution from Arjun Capital that calls for accelerating the company’s efforts to reduce greenhouse gases. A decision could clarify SEC guidance on which shareholder proposals can be put to a vote by a company’s shareholders.

Another Boeing model comes under regulatory scrutiny. The FAA said Sunday that airlines should inspect door plugs on Boeing 737-900ER planes “as an additional layer of security.” Confidence in Boeing’s engineering and quality control has fallen after hundreds of Boeing 737 Max 9s were grounded after a door panel on an Alaska Airlines plane broke during flight.

S&P 500 futures are up again on Monday. Benchmark index looks set to break record after Friday maximize those benefits, Last week’s rally was driven by investors’ bets on interest rate cuts and an artificial intelligence rally in tech stocks.

Macy’s has it Rejected $5.8 billion takeover bid The struggling department store chain was valued at about 20 percent above its closing share price on Friday from investment firms Archhouse Management and Brigade Capital.

Investor Group is now Threats are being made to take the proposal to shareholders, With a potential adverse bid, here are DealBook’s questions about what could happen next.

How will Archhouse and Brigade complete a deal? Macy’s board cited doubts about the investment firms’ financing when it rejected the offer on Sunday. The companies have proposed to pay 25 per cent of the offer in equity, the company said. The rest will likely come from loans such as leveraged loans, the market for which has been tight due to high interest rates.

Could rejection open the door to other bids? archhouse’s 2021 Proposal headed for columbia property trust Another buyer is entering the picture, People familiar with the matter told DealBook that Macy’s has not reached out to potential buyers. But the retailer indicated in a statement that it would “remain open to opportunities that are in the best interests of the company and all of our shareholders.”

Given the challenges facing retail and the memories of bad purchases like Sears, the list of potential contenders is short.

What is Macy’s turnaround plan? The retailer’s shares have fallen nearly 30 percent over the past five years as the company lost significant market share, forcing it to close stores and lay off employees — including an announcement last week. That it would cut 2,350 jobs.

All eyes are on Tony Spring, who will take over as CEO next month after leading Macy’s healthier high-end brand Bloomingdale’s. But given Macy’s large and underperforming store base and its varying shopper demographics, replicating that kind of success could be challenging.


CEOs in the tech sector are more optimistic about the economy this year, especially about the prospects for artificial intelligence and the IPO market. But they are also wary that geopolitical tensions could disrupt trade and increase headwinds in capital markets, SoftBank’s latest annual survey Its portfolio companies are revealed.

DealBook got an exclusive first look at the report, which features startups backed by SoftBank’s two Vision Funds and its Latin America Fund.

Hope is returning after two disappointing years. Nearly half of the CEOs surveyed were more bullish about the economy than a year ago and expected to raise capital this year.

The improvement in sentiment is based on the following, cautioned Alex Clavell, co-CEO of SoftBank Investment Advisors, which manages the fund. Last year was a hangover from 2022, when “the taps were turned off” to fund-raisers, he said. It was not expected that IPOs in late 2023 – including the SoftBank-backed arm – would boost the flow of new listings, but 37 percent of CEOs said public listings would pick up in the second half of 2024.

Excitement around AI is high, even though it is unclear how it will be deployed. “There is a growing belief that 2024 is the year we move from AI enthusiasm to AI impact,” Clavell said. A third of CEOs said they had increased AI investments by 50 percent last year and were using it to make products more cheaply or improve efficiency.

But some people are proceeding with caution. One company has used AI to significantly cut costs but is holding off on making more changes “because it’s going to be too unsettling for the workforce,” Clavell said.

The CEO said tensions with China are the top geopolitical risk. Still, that hurdle hasn’t had much of an impact on his business yet. Biggest concern for 2024: Widespread instability, including war in the Middle East, could reduce investor interest in IPOs or rising energy costs in Europe.


, larry summers, the former Treasury secretary and former Harvard president, after the university announced a new anti-Semitism task force on Friday. The committee is to be co-chaired by Jewish history professor Derek Pensler, whom Summers said was “unsuited” for the role because of his position on the fringes of the school’s anti-Semitism problem.


On this week’s agenda: earnings, inflation and central bank decisions.

Tomorrow: Netflix, Procter & Gamble, Johnson & Johnson and Lockheed Martin released quarterly results. Also, the Bank of Japan is expected to maintain its extremely loose monetary policy; Markets anticipate the country will exit its negative rate regime as soon as march,

Elsewhere, Academy Award nominees are set to be announced.

Wednesday: Dutch chips-equipment maker ASML, Tesla and AT&T reported earnings.

Thursday: It is decision day for the European Central Bank, which is expected to keep interest rates steady. On the other side of the Atlantic, America’s fourth quarter GDP is about to be published.

In terms of earnings, LVMH, Intel, Visa and several airlines including American, Southwest and Alaska Air Group are scheduled to report.

Friday: The personal consumption expenditure report, the Fed’s preferred inflation gauge, will be released.

deal

  • Sony finished 10 billion dollar deal Combining its Indian properties with Mumbai-based media company Zee Entertainment. (Reuters)

  • macquarieThe large Australian investment firm has raised 8 billion euros ($8.7 billion) for its latest European infrastructure fund. (FT)

  • What Citigroup exit From the $4 trillion market for municipal bonds, a sector it once dominated, what it means for the business of financing state and local governments. (WSJ)

artificial intelligence

  • eleven laboratoriesThe AI ​​voice-cloning start-up raised $80 million in new funding from investors led by Andreessen Horowitz at a valuation of more than $1 billion. (Bloomberg)

  • Where is Japan headed? Avatars, robots and AI To deal with its labor crisis. (FT)

best among the rest

  • “‘America is under attack’: Inside the anti-DEI crusade” (NYT)

  • U.S. clothing manufacturers are pushing to change a trade rule that effectively allows foreign manufacturers to ship goods directly to American consumers without paying tariffs. (NYT)

  • Chinese electric car maker BYD is going upmarket with a Lamborghini-style EV To further escalate its fight with Tesla. (WSJ)

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