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   DealBook: How much longer?
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   Also, the Google antitrust trial goes to closing arguments.
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             May 2, 2024
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          Good morning. We look at the Fed’s fears about persistent inflation; the bigger stakes in Google’s antitrust fight; J.&amp;J.’s latest attempt to shed liability over its talcum powder products; and the fallout from Universal Music’s deal with TikTok. (Was this newsletter forwarded to you?
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          )
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            <img alt="Jay Powell, the Fed chair, speaks from a podium with the United States flag behind him." class="css-1ytstr3" height="400" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2024%252F05%252F02%252Fmultimedia%252F02db-powell-phwz%252F02db-powell-phwz-jumbo.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSIsInRpbWUiOjE3MTQ2NTA3NDkuNjM3NjkzNn0:1s2UzF:oGUSEvS_TmSbLOaZCk_TM89Dujj2NQemWfVAT4ZvmQg" style="width:100%;height:auto;display:block;padding-top:10px;padding-bottom:8px" width="600"/>
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             Jay Powell, the Fed chair, says the central bank is not ready to start talking interest-rate cuts.
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            <span style="margin:0;font:11px/11px georgia,serif;color:#888;letter-spacing:.01em">
             Pete Marovich for The New York Times
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        <h2 class="css-12n1aic" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
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          The wait continues
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        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Global markets are still processing the probability that U.S. interest rates will remain higher for longer, as the Fed acknowledges that high inflation has forced it into
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          a holding pattern on interest rates
         </a>
         <span>
          .
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          That’s putting new emphasis on tomorrow’s jobs report, as Wall Street and policymakers look for clues on how the labor market is affecting inflation and the wider economy.
         </span>
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        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          U.S. futures are pointing to a modest rise after stocks in some parts of Asia and Europe sank.
         </span>
         <span>
          That came after a topsy-turvy final hour of trading yesterday in New York: The S&amp;P 500 surged when Jay Powell, the Fed chair, said during his news conference that an interest-rate increase was “unlikely” — only to plunge when he backed away from offering clear guidance on when cuts may be coming.
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          The Fed needs “greater confidence” that inflation is headed down
         </span>
         <span>
          , Powell said, citing the central bank’s longstanding target of 2 percent. (That level remains the subject of
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          persistent
         </a>
         <span>
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          debate
         </a>
         <span>
          .) But, if anything, price data has shown inflation
         </span>
         <span style="font-style:italic">
          rising
         </span>
         <span>
          since the start of the year.
         </span>
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         <span>
          At the same time, consumer sentiment has fallen, with bellwether companies including Starbucks and McDonald’s reporting disappointing first-quarter sales. “Everybody’s fighting for fewer consumers or consumers that are certainly visiting less frequently,” Ian Borden, McDonald’s C.F.O.,
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          told analysts on Tuesday
         </a>
         <span>
          .
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Other takeaways from Powell’s comments
         </span>
         <span>
          :
         </span>
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                He thinks that inflation will creep down “over the course of this year.” But that’s still not enough conviction for the Fed to be more specific about its outlook on cuts.
               </span>
              </li>
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               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                The futures market this morning was penciling in 0.35 percentage points’ worth of cuts this year to the Fed’s prime lending rate, compared with predictions in January that the central bank would lower by more than 1.5 percentage points.
               </span>
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               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                Powell does not see a risk of stagflation. The economy is growing at roughly 3 percent and the inflation rate is under 3 percent over the past year, he said,
               </span>
               <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-size:17px;line-height:25px;vertical-align:middle">
                adding
               </a>
               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                , “I don’t see the stag, or the flation.”
               </span>
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          Tomorrow’s nonfarm payrolls report is in the spotlight.
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         <span>
          Economists
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         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          forecast
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          that employers added 233,000 jobs last month, keeping the unemployment rate steady at 3.8 percent. That’s despite some headline-grabbing layoffs in recent weeks at
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            <img alt="A chart shows the monthly gains in payroll data over the past 12 months." class="css-19kyn6d" height="548" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2024%252F05%252F02%252Fbusiness%252F02db-chart%252F02db-chart-jumbo.png/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSIsInRpbWUiOjE3MTQ2NTA3NDkuNjM4MDY4N30:1s2UzF:TKA8QFHA3bSWH72PLchMBLrgQXe6foiSEU-fQglH-bM" style="display:inline-block;width:83%;max-width:500px;height:auto;padding-top:15px;padding-bottom:0;line-height:0" width="500"/>
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              Economists are forecasting another strong jobs report on Friday.
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         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          A wild-card is wage data.
         </span>
         <span>
          A strong number there could indicate persistent inflationary pressures, making the Fed more reluctant to lower borrowing costs. Another data point: the O.E.C.D. this morning said global inflation was
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          likely to ease this year
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          , but warned that tensions in the Middle East could jolt the oil market, and dash that best-case scenario.
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         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          There are signs of a cool-down in the jobs market.
         </span>
         <span>
          Labor Department
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          data released yesterday
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         <span>
          showed that the pace of hiring had begun to abate, with the number of unfilled job openings falling to a roughly three-year low.
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            <h3 style="color:#000;font:700 17px/25px arial,sans-serif;margin:5px 0 30px 0;letter-spacing:.2px">
             <span>
              HERE’S WHAT’S HAPPENING
             </span>
            </h3>
           </td>
          </tr>
         </tbody>
        </table>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Exxon Mobil strikes an agreement to win regulatory approval of its $60 billion megadeal.
         </span>
         <span>
          The oil giant will agree
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          not to add Scott Sheffield
         </a>
         <span>
          , the former C.E.O. of Pioneer Natural Resources, as a director in exchange for the F.T.C. clearing the transaction, according to The Wall Street Journal. Elsewhere, shares in Shell were up after the producer reported $7.7 billion in adjusted quarterly earnings,
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          beating analyst expectations
         </a>
         <span>
          .
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          The U.S. imposes sanctions on Chinese companies over military support for Russia’s war effort.
         </span>
         <span>
          The Biden administration announced yesterday
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          nearly 300 sanctions
         </a>
         <span>
          , including on more than a dozen Chinese businesses, aimed at disrupting Moscow’s full-scale invasion of Ukraine. Both Treasury Secretary Janet Yellen and Secretary of State Antony Blinken had warned Chinese officials during their recent trips there about what they say is Beijing’s continued support of Russia’s war.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Novo Nordisk feels the heat from competition in weight-loss drugs.
         </span>
         <span>
          Shares in the Danish drug maker were down today
         </span>
         <span style="font-style:italic">
          despite
         </span>
         <span>
          the company
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          more than doubling sales
         </a>
         <span>
          of its blockbuster Wegovy treatment and raising revenue forecasts. The culprit: pressure on prices, amid growing competition from Eli Lilly’s Zepbound, supply constraints and
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          scrutiny from lawmakers
         </a>
         <span>
          .
         </span>
        </p>
        <table border="0" cellpadding="0" cellspacing="0" style="width:100%">
         <tbody>
          <tr>
           <td style="height:10px">
           </td>
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            <h3 class="css-kf37zi" style="font:10px/13px arial,sans-serif;color:#666;letter-spacing:.7px;margin-bottom:7px;margin-top:0;text-align:center">
             ADVERTISEMENT
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        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          A top U.S. lawmaker investigates the F.T.C.’s work with the E.U. on a failed Amazon deal.
         </span>
         <span>
          Representative James Comer, Republican of Kentucky, and the chairman of the House Oversight and Accountability Committee,
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          demanded the agency’s correspondence
         </a>
         <span>
          with the European Commission related to Amazon’s aborted $1.4 billion takeover of iRobot. While global competition agencies
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          regularly communicate
         </a>
         <span>
          about their scrutiny of deals, Comer wants to know whether the American agency coordinated with its counterpart to effectively block the deal.
         </span>
        </p>
        <table border="0" cellpadding="0" cellspacing="0" style="width:100%">
         <tbody>
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        <h2 class="css-12n1aic" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
         <span>
          Big Tech’s competition test
         </span>
        </h2>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Google and the Justice Department will face off again in court today, for
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          closing arguments
         </a>
         <span>
          in the first tech monopoly trial of the modern internet age.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          The government’s lawsuit is centered on Google’s dominance of the search market. Yet many experts think the case will test regulators’ ability to rein in Big Tech at a time when artificial intelligence and other innovations are poised to reshape technology.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          The case hinges on how Google throws its weight around.
         </span>
         <span>
          Its core search engine conducts nearly 90 percent of web searches, which the company chalks up to its technical superiority. But it also
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          pays companies tens of billions
         </a>
         <span>
          to make its search engine the default on browsers like Apple’s Safari and Mozilla’s Firefox.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Prosecutors say those arrangements defend its monopoly — and blunt competition in search ads.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          A big unknown is potential remedies if the presiding judge rules against Google.
         </span>
         <span>
          The Justice Department hasn’t said which fixes it would seek, but Biden administration officials have suggested that they would address the issue of Google’s scale in search. Among the possibilities:
         </span>
        </p>
        <div style="margin:0 auto;max-width:600px;width:100%">
         <table>
          <tbody>
           <tr>
            <td style="padding:0 0 5px">
             <ul class="css-9m6grc" style="color:#000;font:20px georgia,serif;text-align:left;padding-left:50px;list-style-type:square;margin-bottom:10px">
              <li style="margin:0 0 10px 0;line-height:27.5px">
               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                A ban on deals that set a default service on devices, though that doesn’t address Google’s control of search data.
               </span>
              </li>
              <li style="margin:0 0 10px 0;line-height:27.5px">
               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                Another, according to Matt Stoller, the research director of the American Economic Liberties Project, a progressive think tank, is making Google create a way to give rivals access to its data.
               </span>
              </li>
             </ul>
            </td>
           </tr>
          </tbody>
         </table>
        </div>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          One that’s most likely
         </span>
         <span style="font-style:italic">
          not
         </span>
         <span>
          on the table, according to some experts: a breakup.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          The bigger issue: Critics worry about other markets Google might dominate.
         </span>
         <span>
          Since the Justice Department sued the company in 2020, other technologies — notably generative artificial intelligence tools — have risen to prominence. Google’s rivals, which have
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          worried about the company’s A.I. prowess
         </a>
         <span>
          , said they feared that the tech giant might use its search-market tactics to win the A.I. race as well.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          “Despite my enthusiasm that there is a new angle with A.I., I worry a lot that this vicious cycle that I’m trapped in could get even more vicious,” Satya Nadella, Microsoft’s C.E.O., testified last year.
         </span>
        </p>
        <table width="100%">
         <tbody>
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           <td class="css-1ux4czy" style="padding-bottom:15px">
           </td>
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           <td style="border-top:1px solid #dcdcdc;padding-bottom:15px">
           </td>
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         </tbody>
        </table>
        <h2 class="css-12n1aic" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
         <span>
          Will the third time be a charm for J. &amp; J.?
         </span>
        </h2>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Johnson &amp; Johnson is
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          making another attempt
         </a>
         <span>
          at using a contentious legal technique to end a decade-long battle over claims that its talcum powder products caused cancer.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          The proposed $6.5 billion settlement is one of the biggest tests yet of the so-called Texas two-step process, which allows companies to split off liabilities into a separate unit that files for bankruptcy. If Johnson &amp; Johnson’s latest bid works, more companies could use the tactic.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Here’s how the Texas two-step works:
         </span>
         <span>
          A company creates a subsidiary to take on liability for a wave of lawsuits. The new entity immediately seeks Chapter 11 protection, turning the plaintiffs into creditors.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          The process allows the overall company to stay out of bankruptcy and insulates it from legal battles.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Courts rejected Johnson &amp; Johnson’s previous attempts.
         </span>
         <span>
          Judges ruled that bankruptcy wasn’t the right way to address the settlements because the subsidiary could not show it was under financial distress.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Johnson &amp; Johnson, which has already spent
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          $178 million in legal fees
         </a>
         <span>
          on those efforts and has long denied the accusations, has said it would appeal the latest ruling to the Supreme Court.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          This round has a new twist.
         </span>
         <span>
          The company plans to file a “prepackaged” bankruptcy if 75 percent of claimants vote to accept the settlement.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          “In effect, all the bankruptcy court is doing is stamping ‘yes’ on an agreement that has already been reached,” Jared Ellias, a Harvard Law School professor who specializes in corporate bankruptcy law, told DealBook.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          It’s not yet clear whether the plan would withstand legal challenges.
         </span>
         <span>
          Critics say that the approach abuses the bankruptcy system by allowing financially solvent companies to use it to avoid responsibility, while proponents argue it efficiently resolves a flood of lawsuits at once.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          In January, a group of U.S. senators and state attorneys general urged the Supreme Court to
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          curb the use of the tactic
         </a>
         <span>
          .
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Companies will be watching closely.
         </span>
         <span>
          “To the extent this is successful, it’s going to be a new tool in the corporate tool kit,” Ellias said.
         </span>
        </p>
        <table width="100%">
         <tbody>
          <tr>
           <td class="css-1ux4czy" style="padding-bottom:15px">
           </td>
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         <tbody>
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           <td style="text-align:center">
            <img alt="Olivia Rodrigo, in a red gown, performs on stage at the Grammy Awards in Los Angeles." class="css-19kyn6d" height="333" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2024%252F05%252F02%252Fmultimedia%252F02db-rodrigo-cfmk%252F02db-rodrigo-cfmk-jumbo.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSIsInRpbWUiOjE3MTQ2NTA3NDkuNjM4Nn0:1s2UzF:kPiXYn24LFKMwNOsrxZ39hr8_c6D4RWydbmqtjH8LoE" style="display:inline-block;width:83%;max-width:500px;height:auto;padding-top:15px;padding-bottom:0;line-height:0" width="500"/>
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           <td align="center" style="text-align:center;width:100%;padding-top:6px;padding-bottom:20px;line-height:12px" width="100%">
            <span class="css-14c9rv6" style="width:83%;max-width:500px;display:inline-block;text-align:left">
             <span class="css-9ddn05" style="color:#666;font:normal 12px georgia,serif">
              Universal Music, whose artists include Olivia Rodrigo, has ended its standoff with TikTok.
             </span>
             <span style="margin:0;font:11px/11px georgia,serif;color:#888;letter-spacing:.01em;padding-left:5px">
              Mike Blake/Reuters
             </span>
            </span>
           </td>
          </tr>
         </tbody>
        </table>
        <h2 class="css-12n1aic" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
         <span>
          TikTok gets some good news
         </span>
        </h2>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          Universal Music Group today announced a
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          new licensing deal with TikTok
         </a>
         <span>
          , ending the label’s monthslong boycott of the platform.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          It’s welcome news for TikTok as the short-video app battles to avoid being banned in the U.S.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          The context:
         </span>
         <span>
          Universal
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          told TikTok
         </a>
         <span>
          to remove its music from the platform in February, accusing the company of underpaying and failing to stem a flood of “A.I.-generated recordings” on its platform that reduced the amount of money available for human musicians. TikTok shot back that Universal was being greedy and cutting off its artists’ access to a key promotional platform.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          The fight took a turn when Taylor Swift, who is a Universal artist,
         </span>
         <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline">
          reappeared on TikTok
         </a>
         <span>
          to promote her latest album last month.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Details of the deal weren’t released.
         </span>
         <span>
          Universal said it had secured more money and better protection against A.I., while TikTok said it would do more to promote Universal’s artists. Both companies added that they would cooperate on new ways to make money using TikTok’s growing e-commerce features.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Both sides can claim a win.
         </span>
         <span>
          Universal can show investors that it’s an industry leader in dealing with Big Tech, Mark Mulligan, an analyst at MIDiA Research, told DealBook. (Shares in the label were up this morning.) He added that the resolution underscored the importance of TikTok’s “soft power” in building fan bases for artists.
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span>
          But Mulligan said that ByteDance, the Chinese owner of TikTok, hasn’t actually signaled any pullback from A.I. “Unlike Spotify, TikTok is not a music platform — it is a platform with music as its soundtrack,” he said. “It is far easier for TikTok to substitute human music for A.I. music, which is what scares music rights holders.”
         </span>
        </p>
        <p style="font:normal 17px/25px georgia,serif;color:#333;margin:0 0 15px">
         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          One more thought:
         </span>
         <span>
          Given the uncertainty of TikTok’s future in the U.S., the companies may have been smart to do a deal that benefits both of them, at least in the short term.
         </span>
        </p>
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          We hope you’ve enjoyed this newsletter, which is made possible through subscriber support.
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            <h3 style="color:#000;font:700 17px/25px arial,sans-serif;margin:5px 0 30px 0;letter-spacing:.2px">
             <span>
              THE SPEED READ
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            </h3>
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         <span style="font-weight:700;font-family:arial,sans-serif;color:#000">
          Deals
         </span>
        </p>
        <div style="margin:0 auto;max-width:600px;width:100%">
         <table>
          <tbody>
           <tr>
            <td style="padding:0 0 5px">
             <ul class="css-9m6grc" style="color:#000;font:20px georgia,serif;text-align:left;padding-left:50px;list-style-type:square;margin-bottom:10px">
              <li style="margin:0 0 10px 0;line-height:27.5px">
               <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-size:17px;line-height:25px;vertical-align:middle">
                CoreWeave
               </a>
               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                , an Nvidia-backed A.I. cloud-computing start-up, nearly tripled its valuation to $19 billion in a new fund-raising round. (WSJ)
               </span>
              </li>
              <li style="margin:0 0 10px 0;line-height:27.5px">
               <a class="css-sdwaa1" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-size:17px;line-height:25px;vertical-align:middle">
                Shares in Viking
               </a>
               <span style="font-size:17px;line-height:25px;vertical-align:middle">
                rose 9 percent yesterday in its trading debut, after the cruise operator held one of the year’s biggest I.P.O.s. (Reuters)
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                . (NYT)
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                ; the embattled fitness company is also laying off about 15 percent of its employees. (The Verge)
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                .” (Bloomberg)
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