Business
C.E.O.s Will Meet With Trump Amid Fears About Tariffs’ Fallout
Trump faces an increasingly tough crowd
President Trump won over Americans with a promise to return the country to “boom” times of low taxes and deregulation. Fifty days into office, he’s now pitching an economy in “a period of transition” for which he can’t rule out a recession.
His stay-patient message may get tested on Tuesday, when he is set to meet with members of the Business Roundtable, whose ranks include influential C.E.O.s — many of whose companies’ stocks have been hit hard by tariff-fueled market fears.
Stock futures are up a little on Tuesday — but still stung by Monday’s huge plunges. The S&P 500 is nearing a correction after falling roughly 2.7 percent, while the Nasdaq is performing even worse after another sharp drop.
Much of that is driven by worries about Trump’s economic policy, principally his on-again-off-again tariffs. The president is set to impose more levies as soon as Wednesday and has put companies and trading partners on notice that they won’t get exemptions.
Business leaders are getting increasingly worried. A new poll by Chief Executive magazine, conducted last week, found that C.E.O.s’ assessment of American business conditions was at its lowest level since Spring 2020. (It’s a stark contrast to far-rosier findings by a Conference Board survey last month.)
On Monday, Delta Air Lines cut its first-quarter sales forecast, blaming “the recent reduction in consumer and corporate confidence” driven by economic uncertainty. American Airlines this morning also warned of steeper losses as demand softens for leisure travel. And households are feeling gloomy about “their year-ahead financial situations,” the New York Fed’s monthly consumer survey found.
“Trump is off to a great start, so it’s disappointing to see his ‘dumb’ (as the WSJ said) tariff policy muddying the waters of where the U.S. and world economies are headed,” Don Ochsenreiter, the C.E.O. of Dollamur Sport Surfaces, told Chief Executive.
So far, Trump isn’t providing the clarity C.E.O.s want. In an interview with Maria Bartiromo of Fox News this weekend, he said that “we may go up with some tariffs. It depends. We may go up. I don’t think we’ll go down, or we may go up.”
He added that his levies strategy could take “a little time” to bear results.
How much time does he have? The “Trump bump” in the markets has become a “Trump slump” as fears grow that the trade war could reignite inflation and slow the economy.
Trump told reporters last week that he was “not even looking at the market,” suggesting that one of the most reliable checks on his behavior wasn’t working this time around. That could make Tuesday’s C.E.O. meeting a tough one for the corporate chiefs in the room.
HERE’S WHAT’S HAPPENING
Ukraine hits Moscow with a powerful drone attack ahead of truce talks. The bombardment, which the Russian authorities said had killed at least two and injured 18, appeared meant to remind Russia that Ukraine could still hit back despite reduced support from the United States. Delegations from Kyiv and Washington sat down in Saudi Arabia on Tuesday to discuss a path to ending the war, after President Trump and Volodymyr Zelensky’s confrontation in the Oval Office last month.
Amazon Prime will stream “The Apprentice.” The decision to air seven seasons of President Trump’s former hit reality show — which premiered in 2004, supercharged his fame and helped vault him to the White House — underscores the tech giant’s efforts to get closer to the commander in chief. Trump, who was an executive producer of “The Apprentice,” is likely to receive royalties from the agreement. He plugged the deal on Truth Social.
Nissan replaces its C.E.O. after failed deal talks with Honda. Makoto Uchida, who has led the Japanese carmaker since 2019, will step down on April 1 and be succeeded by Ivan Espinosa, the company’s chief planning officer. Nissan has struggled with sluggish sales and earlier this year failed to strike a merger with Honda. Separately, The Times reports that Eric Schmidt, the former longtime C.E.O. of Google, has taken on his first chief executive role since leaving the tech giant: at Relativity Space, an upstart rocket company.
Tough questions confront key Musk businesses
Coming into 2025, Elon Musk appeared to be riding high given his growing political clout and the soaring fortunes of Tesla and his other businesses.
Now Tesla’s stock has tumbled below its pre-Election Day levels, having plunged 15 percent on Monday alone in its worst drop in half a decade. Companies like SpaceX and others have faced their own struggles. And speculation has grown about potential limits to his political reach.
While Musk conceded to Fox Business Network’s Larry Kudlow that he’s handling this “with great difficulty,” he professed that he was still feeling optimistic. But these recent challenges raise questions about some of the tech mogul’s companies, including Tesla and SpaceX.
Yes, Musk has had a tough several days. Among the most recent developments were the slide in Tesla shares (which Reid Hoffman, the Democratic billionaire tech mogul, poked fun at); the explosion of another of SpaceX’s Starships during a test flight; and an outage at X that Musk attributed to Ukraine, a target of his criticism.
Musk continues to draw support from President Trump, even after the tech mogul clashed with Secretary of State Marco Rubio at a recent Cabinet meeting. “To Republicans, Conservatives, and all great Americans, Elon Musk is ‘putting it on the line’ in order to help our Nation, and he is doing a FANTASTIC JOB!” the president wrote on Truth Social overnight. He added, “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support.”
Musk also appeared to be committed to his government cost-cutting work. He told Kudlow that the Department of Government Efficiency worked “in consultation” with Cabinet secretaries, and that he planned to double the group’s staff to 200. (That’s despite the Trump administration saying the billionaire isn’t in charge.) The entrepreneur added that he planned to stay on for at least another year.
But the run of bad news at Tesla and SpaceX is raising concerns. Tesla’s dropping stock price is likely to amplify calls by some shareholders that Musk spend less time focusing on Washington and more on the carmaker.
And SpaceX’s latest failed test flight, which produced a shower of debris that delayed flights around Florida and the Caribbean, has spurred questions about potential delays in the rocket giant’s development process — and whether it faces growing political liabilities.
Big Law comes to a Delaware overhaul’s defense
As Delaware lawmakers prepare to hold hearings tomorrow about a bill that could reshape corporate America, some of the biggest corporate law firms are coming out in favor of it, DealBook’s Lauren Hirsch is first to report.
Today, 21 corporate law firms — including Simpson Thacher and Bartlett; Cravath, Swaine & Moore; and Paul, Weiss, Rifkind, Wharton & Garrison — will publish a letter strongly supporting legislation that would override a series of decisions by the Delaware Court of Chancery. These rulings have sparked backlash from companies and led many, including Meta, to contemplate moving their incorporation outside of the state.
The letter’s argument: The bill is “an important step in maintaining Delaware’s status as the jurisdiction of choice for sophisticated clients when they create companies,” the law firms write.
Some background: Delaware has been ensnared in controversy after several rulings, including Chancellor Kathaleen McCormick’s decision last year to nullify a big payout for Elon Musk at Tesla. While Musk’s ire over that decision brought attention to the chancery court, many corporate lawyers say they’re more broadly frustrated with the court’s treatment of companies with controlling shareholders, arguing that it has been overly deferential to noncontrolling shareholders.
Given how corporate America fuels Delaware’s budget, a group of Delaware state senators last month proposed a bill to amend the state constitution that would effectively override years of case law by the Delaware Court of Chancery. The group sidestepped the usual process for proposing bills, allowing it to move swiftly — but critics say that it also left out early input from key members of the influential Delaware bar.
The issue was a major topic at Tulane University’s Corporate Law Institute conference, a big gathering of deal makers held last week in New Orleans. “We are disempowering Delaware courts,” said Ned Weinberger of the plaintiffs’ law firm Labaton Keller Sucharow, arguing the amendment would erode the voice of minority shareholders.
Scott Barshay, a partner at Paul, Weiss and a top deal maker, said the amendment would help stop a corporate exodus from Delaware. “It’s very important that this legislation gets passed,” he said onstage.
The letter was born out of sideline conversations at the conference. It argues that, despite the relatively unusual intervention by the Delaware legislature, a response to corporate angst is not unprecedented.
“Over its long history at the epicenter of American corporate law, Delaware has repeatedly adjusted its approach in order to modernize and respond to market developments,” the lawyers write.
Who’s in — and who’s out: Other law firms that signed the letter include Kirkland & Ellis; Latham & Watkins; and Weil, Gotshal & Manges.
Corporate law insiders will notice one major law firm that didn’t sign: Wachtell, Lipton, Rosen & Katz, where Leo Strine Jr., a former chancellor of the Court of Chancery, is of counsel. (That said, Martin Lipton, one of the firm’s founders, wrote in support of the bill shortly after its release.)
At the conference, Strine allowed that more companies have become concerned about unpredictability in Delaware courts. Separately, David Katz, a senior M.&A. partner at Wachtell, said the bill wasn’t connected to Musk’s criticism of Delaware, a common critique of it.
THE SPEED READ
Deals
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Redfin’s stock soared on Monday after Rocket Companies agreed to buy the property listing platform for $1.75 billion in stock. (Reuters)
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Skydance accused a latecomer bidder for Paramount of fraud, asserting that the bidder was “hijacking” the regulatory approval process for its deal. (Deadline)
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The law firm Paul Hastings recruited Eric Schiele, a top deal maker at Kirkland & Ellis, to help lead its M.&A. practice. (WSJ)
Politics, policy and regulation
Best of the rest
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Ruth Marcus, an opinion columnist and editor at The Washington Post, said that she’s quitting after the newspaper’s publisher killed a column criticizing the new direction of its editorial page. (NYT)
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“Hollywood Pivots to Programming for Trump’s America” (WSJ)
We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.
Business
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
Business
Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination
At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.
On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.
The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”
The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.
There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.
— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports
Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.
Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.
In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”
Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”
From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.
No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.
But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.
The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)
West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?
But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.
It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.
Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.
He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)
I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”
Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.
Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.
In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”
In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”
Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)
It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.
Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.
They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)
Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”
Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.
Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”
B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”
So whose interest was really protected by the Supreme Court?
Business
Orange County real estate investor pleads not guilty in $100 million bank fraud case
An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.
Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.
He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.
Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.
Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.
A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.
Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.
In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.
Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.
Prosecutors sought to hold Makhijani without bail after his arrest.
The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.
The request was denied and he was granted $500,000 bail.
However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.
The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.
Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.
Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.
As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.
The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.
Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.
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