Also suffering a tariff hangover? The beer industry, which is fighting price increases on cans resulting from the new penalties on aluminum imports.
Elon Musk thinks Tesla has a saboteur
Over the weekend, the automaker’s C.E.O. emailed staff warning of a “Tesla employee who had conducted quite extensive and damaging sabotage.” In the email, which CNBC obtained, Mr. Musk said that the suspect had altered company software, as well as “exporting large amounts of highly sensitive Tesla data to unknown third parties.”
The employee’s rationale, according to Mr. Musk, was being overlooked for a promotion. But Tesla will now investigate whether the purported saboteur had worked with other employees or third-party organizations. The concern is that the situation could be more serious — perhaps involving corporate espionage.
Wilbur Ross’s interests look increasingly conflicted
The commerce secretary is one of President Trump’s point men on trade issues involving Russia and China. But Forbes found that for much of last year, his family maintained stakes in a shipping business tied to Vladimir Putin’s son-in-law and companies co-owned by the Chinese sovereign wealth fund China Investment Corporation.
Mr. Ross recently disclosed that he had shorted shares in the shipping company, Navigator Holdings. He did so days before the NYT and the International Consortium of Investigative Journalists reported on its links to Mr. Putin’s inner circle — but after reporters had emailed his spokesman with questions about it.
Forbes also reported that Mr. Ross admitted a mistake in federal disclosure filings, saying he had sold Invesco stock that he continued to hold.
The bottom line: If Mr. Ross’s interests are as conflicted as they seem, should he be negotiating with America’s trading partners?
Does a boom for banks mean an ethical bust?
Times are good on Wall Street. But the new president of the New York Fed, John C. Williams, thinks the industry has reached a dangerous point, where complacency can lead to lax standards and fresh scandals.
Here’s what he said at a conference yesterday on bank governance:
Culture is a long-run investment that takes many years to develop and requires constant reinforcement to preserve. If you let it erode, you can’t go to the market and obtain a new “culture” overnight.
At the same event, James Gorman, the C.E.O. of Morgan Stanley, explained why banks might benefit from being “a little paranoid and a little scarred”:
Forget about what the regulators want, what the public want, what the politicians want; we don’t want [another crisis].
Norman Pearlstine, formerly the top editor at the WSJ and Time Inc., was named as the editor of the LA Times, on the day that Patrick Soon-Shiong took over as publisher. (LAT)
Goldman Sachs has named Pete Lyon, its co-head of financing for the Americas, as its co-head of global tech, media and telecom investment banking. He will work alongside Dan Dees. Separately, the bank named Susie Scher and Denis Coleman as its global co-heads of financing.
The speed read
• Walt Disney reportedly will add cash to its all-stock bid for most of 21st Century Fox, as it battles Comcast for control of Rupert Murdoch’s empire. (FT)
• AT&T and Comcast are also bidding to become the most indebted companies in the world. (WSJ)
• Fujifilm is suing Xerox for more than $1 billion for walking away from their proposed merger. (Reuters)
• Brex, a new business offering corporate credit cards for start-ups, has raised $50 million from investors like Peter Thiel and Max Levchin. And Peek, a tourism start-up with backers like Eric Schmidt of Alphabet, has raised $23 million.
Politics and policy
• U.S. lawmakers are trying to sue OPEC again. (Bloomberg)
• President Trump said he was directing the Pentagon to establish a “Space Force.” (Ars Technica)
• Massachusetts has struck down a proposal to tax income over $1 million. (Mass Live)
• Microsoft is embroiled in the immigration debate after briefly deleting a blog post about working with I.C.E. (The Hill)
• The five mistakes that could destroy America’s lead in the quantum computing race. (MIT Technology Review)
• IBM created an A.I. system that can debate humans. Kind of. (NYT)
• Can A.I. help create jobs in the Rust Belt? (MIT Technology Review)
Best of the rest
• How the Koch Brothers are killing public transit projects around the U.S. (NYT)
• Why neutering the anti-fraud law known as the Martin Act is a bad idea. (FT)
• What’s next for Elizabeth Holmes in the Theranos fraud case. (NYT)
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