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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

Scott Bessent, the billionaire hedge fund manager whom President-elect Donald J. Trump picked to be his Treasury secretary, plans to divest from dozens of funds, trusts and investments in preparation to become the nation’s top economic policymaker.

Those plans were released on Saturday along with the publication of an ethics agreement and financial disclosures that Mr. Bessent submitted ahead of his Senate confirmation hearing next Thursday.

The documents show the extent of the wealth of Mr. Bessent, whose assets and investments appear to be worth in excess of $700 million. Mr. Bessent was formerly the top investor for the billionaire liberal philanthropist George Soros and has been a major Republican donor and adviser to Mr. Trump.

If confirmed as Treasury secretary, Mr. Bessent, 62, will steer Mr. Trump’s economic agenda of cutting taxes, rolling back regulations and imposing tariffs as he seeks to renegotiate trade deals. He will also play a central role in the Trump administration’s expected embrace of cryptocurrencies such as Bitcoin.

Although Mr. Trump won the election by appealing to working-class voters who have been dogged by high prices, he has turned to wealthy Wall Street investors such as Mr. Bessent and Howard Lutnick, a billionaire banker whom he tapped to be commerce secretary, to lead his economic team. Linda McMahon, another billionaire, has been picked as education secretary, and Elon Musk, the world’s richest man, is leading an unofficial agency known as the Department of Government Efficiency.

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In a letter to the Treasury Department’s ethics office, Mr. Bessent outlined the steps he would take to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.”

Mr. Bessent said he would shutter Key Square Capital Management, the investment firm that he founded, and resign from his Bessent-Freeman Family Foundation and from Rockefeller University, where he has been chairman of the investment committee.

The financial disclosure form, which provides ranges for the value of his assets, reveals that Mr. Bessent owns as much as $25 million of farmland in North Dakota, which earns an income from soybean and corn production. He also owns a property in the Bahamas that is worth as much as $25 million. Last November, Mr. Bessent put his historic pink mansion in Charleston, S.C., on the market for $22.5 million.

Mr. Bessent is selling several investments that could pose potential conflicts of interest including a Bitcoin exchange-traded fund; an account that trades the renminbi, China’s currency; and his stake in All Seasons, a conservative publisher. He also has a margin loan, or line of credit, with Goldman Sachs of more than $50 million.

As an investor, Mr. Bessent has long wagered on the rising strength of the dollar and has betted against, or “shorted,” the renminbi, according to a person familiar with Mr. Bessent’s strategy who spoke on condition of anonymity to discuss his portfolio. Mr. Bessent gained notoriety in the 1990s by betting against the British pound and earning his firm, Soros Fund Management, $1 billion. He also made a high-profile bet against the Japanese yen.

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Mr. Bessent, who will be overseeing the U.S. Treasury market, holds over $100 million in Treasury bills.

Cabinet officials are required to divest certain holdings and investments to avoid the potential for conflicts of interest. Although this can be an onerous process, it has some potential tax benefits.

The tax code contains a provision that allows securities to be sold and the capital gains tax on such sales deferred if the full proceeds are used to buy Treasury securities and certain money-market funds. The tax continues to be deferred until the securities or money-market funds are sold.

Even while adhering to the ethics guidelines, questions about conflicts of interest can still emerge.

Mr. Trump’s Treasury secretary during his first term, Steven Mnuchin, divested from his Hollywood film production company after joining the administration. However, as he was negotiating a trade deal in 2018 with China — an important market for the U.S. film industry — ethics watchdogs raised questions about whether Mr. Mnuchin had conflicts because he had sold his interest in the company to his wife.

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Mr. Bessent was chosen for the Treasury after an internal tussle among Mr. Trump’s aides over the job. Mr. Lutnick, Mr. Trump’s transition team co-chair and the chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself before Mr. Trump picked him to be Commerce secretary.

During that fight, which spilled into view, critics of Mr. Bessent circulated documents disparaging his performance as a hedge fund manager.

Mr. Bessent’s most recent hedge fund, Key Square Capital, launched to much fanfare in 2016, garnering $4.5 billion in investor money, including $2 billion from Mr. Soros, but manages much less now. A fund he ran in the early 2000s had a similarly unremarkable performance.

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The Homesteading Mother of 6 Taking On Big Tech

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The Homesteading Mother of 6 Taking On Big Tech

Everyone will know more, he told me, when Quantica signs a contract with a tech company to use the facility. That announcement could come by the end of the year.

Besides, Mr. Peterson said, much of the apprehension over the data center comes from people who are afraid of A.I. more broadly, as if “Big Brother is going to take over,” he said.

Those people, he added, “have no role in this conversation.”

What Mr. Peterson could tell me now, he said, was that the project would have minimal impact on the land and the people who live nearby. And residents wouldn’t have to pay a thing for it. He offered no guarantees, but said the project would bring its own power — at least some of it from solar and natural gas.

Despite what opponents have been saying, and despite the information gleaned from data centers around the world, Mr. Peterson said the Broadview site would need “not that terribly much” water.

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It will bring jobs, he said. Thousands of temporary workers could descend on Broadview for the construction. The number of permanent jobs would be 30, 40, 100 — he doesn’t know for sure. But he described them as good-paying jobs that would not require specialized training or a college education. Jobs like janitors, maintenance workers or security guards.

He likened it to “being a miner, but not having to grab a drill.” Generations of families could stay in Broadview because people would not have to move to make a living, as many are doing now. They could say, “Oh my gosh, I could push a broom and come home to my home in Lavina that I love — and my kids can do that?”

For anyone who doesn’t like the idea of living next to a data center, he added, “there’s probably a county up the road that doesn’t have one.”

He said the eventual deal would include a “community benefits package,” which could help Broadview pay for things like its problematic wastewater lagoon. The Montana Department of Environmental Quality issued the town a violation in March for longstanding issues at the site, demanding compliance. Remediation could cost millions.

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

After a 6½-year hiatus from theaters, “Star Wars” returns to the big screen this weekend with “The Mandalorian and Grogu.”

This time around, however, the franchise faces a much different universe than it did in 2019 when the last film came out. For one, theatrical attendance has fallen dramatically since “Star Wars: Episode IX — The Rise of Skywalker” grossed more than $1 billion worldwide in the pre-pandemic days.

Then, there’s Walt Disney Co.-owned Lucasfilm’s own trajectory. In the last few years, new “Star Wars” stories have come only via streaming series on Disney+. And since the service debuted in 2019, the San Francisco-based studio pumped out 13 shows, including “The Mandalorian,” which inspired the film, though others received mixed reviews.

Lucasfilm is also under new leadership, as veterans Dave Filoni and Lynwen Brennan are now co-presidents after George Lucas’ handpicked successor, Kathleen Kennedy, stepped down this year.

It all adds up to a crucial question: Can the nearly 50-year-old franchise still delight its longtime fans, while bringing in new viewers to help it endure?

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“There’s a lot riding on this,” said Jeff Bock, box-office analyst at entertainment data and research firm Exhibitor Relations. “It’s close to a make-or-break strategic test … just to see if the modern ‘Star Wars’ is still viable theatrically.”

“The Mandalorian and Grogu” is expected to gross around $80 million in the U.S. and Canada for the four-day Memorial Day weekend, according to studio estimates.

That would rank among some of the top openings this year, including Amazon MGM Studios’ “Project Hail Mary” ($80.5 million) and Disney-owned 20th Century Studios’ “The Devil Wears Prada 2” ($76.7 million). Another big sci-fi installment, Warner Bros. Pictures and Legendary Entertainment’s “Dune: Part Two,” opened to $82.5 million in 2024.

But for a “Star Wars” movie, that’s considered low.

2019’s “The Rise of Skywalker,” for example, opened to $177 million, with 2015’s “The Force Awakens” and 2017’s “The Last Jedi” each debuting to more than $200 million. The $84-million opening for 2018’s “Solo: A Star Wars Story” was considered a disappointment at the box office.

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To be sure, theatrical expectations have changed dramatically since the pandemic, which altered moviegoers’ habits and trained many to wait and watch films at home.

“The Mandalorian and Grogu” also stems from a streaming series and does not continue the story line of the traditional “Star Wars” saga films that follow the Skywalker family. (The movie’s reported production budget of $166 million also makes it cheaper than its predecessors.)

And for Disney, box-office revenue will not be the only indicator of this film’s success.

Director Jon Favreau, left, and Pedro Pascal on the set of Lucasfilm’s “Star Wars: The Mandalorian and Grogu.”

(Nicola Goode / Lucasfilm Ltd. / Disney via Associated Press)

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The company expects the movie will boost other parts of its business, including streaming, its gaming collaboration with Fortnite and the all-important theme parks, where the film’s main characters appear at the Star Wars: Galaxy’s Edge-themed land, and the Millennium Falcon: Smugglers Run ride has been overlaid with a “Mandalorian and Grogu” storyline.

Then of course, there’s merchandise. (Famously, fans rushed to buy items of Grogu — known colloquially as Baby Yoda — after “The Mandalorian” show debuted in 2019, though products didn’t arrive for months. Once available, 13 million Grogu toys were sold in the two years after they were released, Disney has said.)

“It’s not using cinema in the way ‘Star Wars’ used cinema before,” said Carmelo Esterrich, a professor at the school of communication and culture at Columbia College Chicago, who has written about how “Star Wars” is a reflection of American culture. “It’s using the franchise of television and the power machine of Grogu to bring it to the big screen.”

Grogu’s appeal highlights an important goal for the franchise: expanding beyond its original fan base to new audiences. Although “The Mandalorian and Grogu” builds on storylines from the streaming show, the film was designed to be accessible to viewers who had never watched it.

“I hope that our excitement and joy and love of ‘Star Wars’ translates to a new generation of fans seeing it, experiencing it the way we did for a long time,” director Jon Favreau told an audience in April at the CinemaCon trade conference during a presentation about Disney’s film lineup.

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Early ticket sale tracking indicated strong interest from older men, who have historically been the core audience for “Star Wars” films. But after an extensive marketing campaign, Disney’s studio estimates now show audiences are younger, with more families and women represented.

To date, “The Mandalorian” is still the most popular Disney+ series. The show, which has run for three seasons, has won 15 Emmys, including for sound mixing and special effects. The critical and fan response, as well as the opportunity to explore new characters’ backstories, led Lucasfilm to choose this show to spin off into a movie, according to sources close to the studio.

Since the launch of the platform in November 2019, “The Mandalorian” and other “Star Wars” titles such as “The Acolyte” and the second season of “Andor” have seen relatively high audience demand, according to an analysis by Parrot Analytics, a firm that tracks streaming data. Despite several big hits, the average demand for live-action television series set in the galaxy far, far away have shown a slight downward trend over time.

In contrast, demand for live-action series from Disney-owned Marvel Studios has held stable since the premiere of its first streaming show, “WandaVision.” Though Marvel’s television offerings outnumber those of “Star Wars,” overall audience interest in the superhero shows is less than the biggest “Star Wars” hits and more comparable to some of Lucasfilm’s lesser-hyped titles, including “Skeleton Crew,” according to Parrot Analytics.

In the end, “The Mandalorian and Grogu” needs to keep audience interest in “Star Wars” on the big screen. Next year, Lucasfilm will release “Star Wars: Starfighter,” a film starring Ryan Gosling and directed by Shawn Levy of “Deadpool & Wolverine” that has generated great interest, particularly given Gosling’s turn in “Project Hail Mary.”

“This is a safe reentry point,” Bock of Exhibitor Relations said of “The Mandalorian” movie. “If Grogu can bring in the families and if ‘The Mandalorian’ continues to bring in the audiences of the old movies, maybe they can bridge these generations like classic ‘Star Wars’ once did.”

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Oil Prices Fall Sharply on News of Possible Iran Deal

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Oil Prices Fall Sharply on News of Possible Iran Deal

Oil prices fell sharply on Monday after American officials said the United States and Iran had agreed in principle to a peace deal that would reopen the Strait of Hormuz, a vital trading route for oil and natural gas that normally carries up to one-fifth of the world’s oil supply. But final approval of a deal could take a while.

President Trump vowed on Monday that either a deal would be “great and meaningful” or “there will be no deal.” Esmaeil Baghaei, the Iranian foreign ministry spokesman, said on Monday that “no one can claim that the signing of an agreement is imminent,” according to Iran’s state broadcaster. Iran’s top negotiators, led by Mohammad Bagher Ghalibaf, the speaker of Parliament, arrived in Qatar on Monday for further talks, Iranian state media said.

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