Musk’s SpaceX invests a staggering $17 billion to secure spectrum licenses from EchoStar [AP]
This significant agreement for EchoStar‘s AWS-4 and H-block spectrum licenses includes a balanced payment structure of up to $8.5 billion in cash alongside $8.5 billion in SpaceX stock. Furthermore, SpaceX and EchoStar are set to establish a long-term commercial partnership that will enable EchoStar’s Boost Mobile subscribers to utilize the cutting-edge Starlink Direct to Cell service from SpaceX. Last month, AT&T disclosed its intention to invest $23 billion to acquire wireless spectrum licenses from EchoStar, marking a substantial enhancement of its low- and mid-band coverage networks.
Trump’s Risky Game With the Fed: A Critical Analysis [WSJ, by Ken Griffin]
“Mr. Trump’s interventions, coupled with his dismissal of the head of the Bureau of Labor Statistics, have significantly undermined the credibility of official economic data. These developments bring to light risks reminiscent of scenarios in emerging markets where political interference has compromised institutional integrity. Although the U.S. benefits from a robust stock of credibility built over decades, this resource is not infinite. Should this credibility erode, the markets will inevitably demand much higher interest rates for long-term debt. Rebuilding lost credibility is both costly and time-consuming, making its protection a central focus of U.S. economic policy moving forward.”
AppLovin and Robinhood Join the S&P 500 Index [CNBC]
The alterations will be implemented prior to the commencement of trading on Sept. 22, as announced by S&P Global. AppLovin will replace MarketAxess Holdings, while Robinhood will take over the position held by Caesars Entertainment. Earlier in March, the short-seller Fuzzy Panda Research advised the committee overseeing the large-cap U.S. index to prevent AppLovin from becoming a constituent, highlighting the ongoing scrutiny of market entries.
Warren Buffett Criticizes Kraft Heinz, Breaking His Usual Silence [CNBC]
In a rare move, Buffett expressed dissatisfaction, noting that he is disappointed the upcoming split will not undergo a shareholder vote. He revealed that Berkshire’s CEO-designate, Greg Abel, communicated their disapproval directly to the management team of Kraft Heinz prior to the final decision. Buffett is particularly concerned about the additional $300 million in overhead costs projected for the split over the next year, expressing doubt regarding its effectiveness. “It certainly wasn’t a brilliant decision to merge them, but I doubt that separating them will rectify the situation,” he remarked.
Scaramucci Faces Challenges Turning Trump Tax Break Into Profit [Bloomberg]
Instead of successfully raising $3 billion for his SkyBridge Opportunity Zone Real Estate Investment Trust, Scaramucci managed to secure less than million and executed only a single investment: a property under Virgin Hotels in the Warehouse District of New Orleans. The investment vehicle has yet to provide payouts to its REIT shareholders, much less achieve the anticipated 8% to 10% annualized returns before tax benefits that Scaramucci suggested would be feasible throughout the fund’s existence.
How JPMorgan Became Involved in Jeffrey Epstein’s Crimes [NYT Magazine]
At the behest of Epstein, JPMorgan established accounts into which he consistently transferred large sums for young women who ultimately became victims of his sex-trafficking operations. The bank wired his funds overseas and even compensated him with millions of dollars. Over a decade, bank officials expressed concerns regarding Epstein’s extensive wire transfers and cash withdrawals, processing over $1 billion in transactions for him. Despite these warnings about his suspicious activities, on at least four occasions over a five-year span, the bank’s leadership overrode objections and continued to provide services to Epstein.
