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DealBook Briefing: Trump Rails Against Globalism

Category: Business,Finance

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President Trump defended his administration’s trade wars on the most international of stages. He told the U.N. General Assembly yesterday that his policies remain defined by two words: America First.

We reject the ideology of globalism,” he told a largely skeptical crowd. “America will never apologize for protecting our citizens,” he added.

Last year, international leaders were stunned by Mr. Trump’s unapologetic defense of America going it alone. This year? They pushed back, defending pacts that Mr. Trump has quit, including the Iran nuclear deal and the Paris climate agreement. President Emmanuel Macron of France proposed a moratorium on trade deals with countries that don’t accept climate rules.

The combative tone suggests that battle lines between the U.S. and the rest of the world have hardened. A return to a pre-Trump global order isn’t likely anytime soon.

More from the U.N.: When Mr. Trump asserted that in less than two years his administration “has accomplished more than almost any administration in the history of our country,” the crowd laughed. “I did not expect that reaction,” Mr. Trump said. “But that’s O.K.”

Jes Staley has led Barclays for three years, helping it surmount legal troubles and find a surer financial footing. Rivals are edging away from risky investment banking, but Mr. Staley embraces it.

More from Bloomberg Markets’s profile of the Barclays C.E.O.:

Not every banker would say consumer debt is more dangerous than the risks a company such as Barclays faces in the capital markets. But then Staley is a true believer in the value of investment banking. Now he’s making his case that for all the drama at the lender in recent years — and there’s been plenty — there’s no better moment to make Barclays a global force in investment banking on a par with Goldman Sachs Group, Morgan Stanley, and his former company, JPMorgan Chase.

That strategy has detractors, including Edward Bramson, an activist investor who wants Barclays to stick to consumers. Mr. Staley dismissed his efforts as “cute.”

In documents filed in California Superior Court in San Diego this week, Qualcomm accused Apple of engaging in a “multiyear campaign of sloppy, inappropriate and deceitful conduct to steal Qualcomm’s information and trade secrets.”

It argues that Apple shared those secrets with Intel, hoping to reduce its own reliance on Qualcomm’s smartphone communications chips. Apple says Qualcomm hasn’t proved any information was stolen.

The spat is the latest twist in a legal battle that started early in 2017.

The Fed is expected to raise interest rates. It would be the third hike this year, probably to a range of 2 to 2.25 percent, from 1.75 to 2 percent. The increases are meant to limit inflation, and the bank is expected to make one more before the end of the year.

Big Tech goes to Washington (again), this time over privacy. The Senate Commerce Committee will question representatives from Amazon, AT&T, Google, Twitter and others. Google’s new chief privacy officer, Keith Enright, is expected to defend his employer’s business model and outline some possible privacy regulations.

SurveyMonkey begins trading. The online pollster priced its I.P.O. last night at $12 a share, a dollar above its expected price range. It’s one of the last well-known tech companies scheduled to go public this year.

A federal appeals court stripped a case over the legal status of Uber drivers of class-action status. The lawsuit represents 240,000 drivers who want to be classified as employees instead of contractors. But the judges found that Uber’s contracts with them legitimately required private arbitration — so the drivers must pursue their claims individually.

By keeping drivers as contractors, Uber avoids having to provide guaranteed hourly pay and benefits, and it argues the arrangement also gives the drivers more flexibility. A spokesman said it was “pleased with the court’s decision.”

Tightening labor markets usually mean rising wages. That hasn’t happened in recent years. That has puzzled economists, but some think they have an explanation: better benefits.

The average U.S. worker now receives 32 percent of total compensation in the form of benefits like bonuses, paid leave, and company contributions to insurance and retirement plans. That’s up from 27 percent in 2000.

That growth may have persuaded the Fed to keep raising interest rates. But Binyamin Appelbaum of the NYT notes that even wages including benefits are growing slowly by historical standards — and it’s not clear when that will change.

The escalating trade war hasn’t cooled investor demand for Chinese securities. Foreign ownership of Chinese stocks and bonds has grown 64 percent over the past year, according to Z-Ben Advisors.

Access to China’s markets and its economy has been a key issue in the country’s trade dispute with the U.S., and a point of tension with the E.U., too. In recent months, however, Beijing has begun to ease its restrictions on outside investment.

Russian misinformation in 2016 tried to cover its tracks. The latest efforts may be far bolder. Kevin Roose of the NYT examines USAReally, a news start-up that doesn’t disguise its Russian origins:

The amateurish appearance of USAReally has led some critics to assume that it is either a bizarre vanity project or a decoy meant to attract attention away from more covert Russian campaigns happening elsewhere. But some cybersecurity experts believe the website may be a part of a retooled Russian propaganda operation that is experimenting with new tactics ahead of November’s midterm elections, and testing the boundaries of what American social media companies will allow.

Richard Parsons was appointed interim chairman at CBS.

Banco Santander hired Andrea Orcel, the head of UBS’s investment bank, as C.E.O. He’ll be replaced at UBS by Pierro Novelli and Robert Karofsky.

Ola Kallenius will replace Dieter Zetsche as the C.E.O. of Daimler, two years ahead of schedule.

Gonzalo Ramírez Martiarena resigned as C.E.O. of Louis Dreyfus yesterday, while Armand Lumens stepped down as C.F.O.

Janice Min, the former top editor at Hollywood Reporter, joined Jeffrey Katzenberg and Meg Whitman’s NewTV.

Luis Caputo resigned as Argentina’s central banking chief after just three months on the job.

Deals

• Michael Kors struck a $2.1 billion deal to buy Versace, expanding into the top end of the luxury market. European counterparts were stunned.

• The parent company of Arby’s and Buffalo Wild Wings agreed to buy the Sonic fast-food chain for $2.3 billion. (Bloomberg)

• The Justice Department’s antitrust chief promised to shorten merger reviews to six months or less. (FT)

• Why it might be too late for America to push China around. (NYT Opinion)

Tech

• A former content moderator is suing Facebook, saying violent images caused her PTSD. (NYT)

• Twitter plans to ban “dehumanizing” content on its service. (WSJ)

• Instagram’s co-founders probably quit because Mark Zuckerberg asserted too much control over their app. (NYT)

• Justice Department officials met with 14 state attorneys general to discuss how to police Big Tech. (NYT)

Best of the rest

• The federal government could soon be spending more on debt interest than on the military. (NYT)

• Why do some banks still let illicit transactions flourish? (DealBook)

• Goldman Sachs analysts think oil won’t hit $100 a barrel anytime soon. (Bloomberg)

• Nike’s earnings showed it could afford to gamble on Colin Kaepernick. (Bloomberg Opinion)

• From next year, Dunkin’ Donuts will just be Dunkin’. (NYT)

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