Bloomberg - Evening Briefing - Disney goes after DeSantis

Walt Disney is taking its feud with Ron DeSantis to court. On Wednesday, the company sued the likely contender for the Republican presidential nomination, saying he’s threatening billions of dollars in business as retaliation for the company speaking out against his social policies. Disney filed the complaint after a board of DeSantis appointees voided an agreement that gave Disney control over its own 25,000-acre theme park. It’s the latest volley in a dispute between one of Florida’s largest employers and taxpayers and its polarizing governor. The war first began when Disney, under pressure from its own employees to weigh in, criticized DeSantis’s so-called don’t say gay bill, which restricted classroom instruction on sexual orientation or gender identity. Soon after, DeSantis moved to revoke the company’s special tax and self-governing privileges. Since then, DeSantis has proposed and had passed numerous inflammatory policies as part of what observers see as a move to mollify the GOP’s right-wing base. —Margaret Sutherlin

Beleaguered First Republic shares fell to their lowest ever Wednesday as US regulators weighed downgrading their private assessments of the regional bank—a move that may curb the troubled firm’s access to Federal Reserve lending facilities. For weeks, First Republic has struggled to find a rescuer, and any steps to quickly raise capital or sell holdings could be painful for shareholders. The stock lost half of its remaining value on Tuesday after quarterly results disappointed investors and news broke that the bank might sell $50 billion to $100 billion of assets. 

Photographer: Jeenah Moon/Bloomberg

Microsoft’s $69 billion takeover of gaming company Activision Blizzard is all but dead after Britain’s antitrust watchdog vetoed the deal in a globally binding decision. Though Microsoft and Activision have pledged to appeal, the UK’s move—combined with the US Federal Trade Commission’s opposition to the merger—means the transaction has slim chances of survival. Should the companies stay the course, they now face a years-long road of litigation on two continents. Still, the biggest challenge may be one of timing: The merger agreement expires July 18, and though the agreement can be extended, Activision could walk away with a $3 billion break-up fee. 

The US and South Korea announced a tougher nuclear deterrence plan, bolstering the response to North Korea’s provocations in the region. The deal includes deploying a nuclear-armed submarine to the country for the first time since the 1980s, and in turn securing a pledge from Seoul to honor commitments to not pursue its own atomic arsenal.

South Korean President Yoon Suk Yeol, left, and US President Joe Biden meeting in Washington on Wednesday. Photographer: Al Drago/Bloomberg

The failed test launch of SpaceX’s Starship in southern Texas sparked a 3.5-acre fire south of the launchpad and spread debris over 385 acres of combined company-owned and state parkland, a federal regulator said.

In their first conversation since the Russian invasion last year, Chinese leader Xi Jinping told Ukraine’s leader Volodymyr Zelenskiy that China will send an envoy to Kyiv, and that the only way to achieve peace is through negotiations. The call underscores the risks for Zelenskiy and Ukraine as Beijing’s push for a ceasefire would cement the gains of its ally, Russia.

The Women’s National Basketball Association is at the top of its game. The 2022 season was the most watched since 2006. The league secured a record number of corporate sponsorships and raised $75 million. Simply put: the WBNA is raking in more cash than ever. But its players aren’t. 

As ChatGPT dazzles the general public with fanciful uses of artificial intelligence, such as writing Hollywood scripts or opining on fantasy baseball and art theory, Walmart is leaning on AI for a more pragmatic purpose: bargaining with suppliers. 

• Biden says he’s open to a GOP debt-limit meeting—if default is off-limits.
• Meta shares surged in after-hours trading on an earnings beat. 
• China passed a milestone in its bid to reduce reliance on the dollar. 
• Questions mount on the role of Gautam Adani’s brother at the company. 
• Diplomats are pushing for a continuation of a cease-fire in Sudan.
• Carvana was built for low-interest rates. Can it survive its $3 billion debt?
• Michelin stars were announced for Hong Kong and Macau.

Tesla is now offering steep discounts for its electric vehicles. Is this more disruption or simple desperation? Onlookers are divided. Some see Tesla co-founder Elon Musk as Henry Ford in the age of the Model T. Others, as Steve Jobs ushering in the iPhone era. But what if he’s Rick Wagoner, who steered General Motors into a ditch?

Tesla Model Y Photographer: Tesla

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