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    The Volodymyr Zelensky-Donald Trump Divide Looms at Davos

    Ukraine’s leader and the potential re-election of Donald Trump as president are dominating discussion at the World Economic Forum. Volodymyr Zelensky, Ukraine’s president, tried to tamp down worries about Donald Trump, and whether his potential re-election would lead to a drop in support for his country.Radek Pietruszka/EPA, via ShutterstockZelensky and Trump loom over Davos Two people are having an outsize impact at the World Economic Forum, and one of them isn’t even there.One is Volodymyr Zelensky, Ukraine’s president, who put on a full-court press of business and global leaders at the forum in Davos, Switzerland. The other is Donald Trump, whose potential re-election is dominating the discussion among attendees.Zelensky used an expletive to describe a Trump claim about containing Vladimir Putin. At a Q. and A. with journalists that Andrew moderated, Zelensky dismissed the idea that Trump could stop the Russian president from going after other parts of Europe. Putin, he added, “will not stop — but the question is what will the U.S. and Trump do after this point, because in this case it will mean that Europe lost the most useful and most strong army in Europe because we lost Ukraine.”Zelensky initially sought to tamp down worries about Trump, and whether his potential re-election would lead to a drop in support for Ukraine. But he also appeared somewhat fearful about the prospect. “One man cannot change the whole nation,” Zelensky said in the Q. and A., adding that deciding on the next president is “a choice for the American nation and only the American nation.”The Ukrainian leader acknowledged that a win for Trump, who has opposed U.S. aid to Ukraine, could affect his country’s military campaign or settlement talks. “Radical voices from the Republican Party” have created tension and pain for the Ukrainian people, he said.Zelensky isn’t the only leader at Davos worried about Trump. Multiple attendees have told DealBook that the outcome of the election is a potential risk for business, particularly after the former president thumped his Republican rivals in the Iowa caucuses.The Ukrainian leader has sought to shore up global business support. He spoke at a private gathering of executives organized by JPMorgan Chase, which is advising Ukraine on its reconstruction efforts.In the audience at the Congress Center for the talk were Steve Schwarzman of Blackstone, Ray Dalio of Bridgewater, David Rubenstein of Carlyle and Michael Dell of Dell, DealBook hears.Zelensky also spoke about how U.S.-China tensions are affecting Ukraine. Bringing Beijing on board with the country’s reconstruction is important, given China’s size and influence on Russia, he told the C.E.O.s. But Ukraine is seen as an American concern, not a global one.Seen and heard around town: The traffic on the main street was so bad that John Kerry, President Biden’s climate envoy, hoofed it to a meeting. And the annual wine tasting hosted by Anthony Scaramucci, the financier and former Trump official, well, ran out of wine.HERE’S WHAT’S HAPPENING Rate-cut concerns rattle the markets. European stocks and bonds are down this morning, after Christine Lagarde, the European Central Bank president, warned that interest rates may not fall until the summer, and inflation in Britain rose unexpectedly. U.S. futures are also down after Christopher Waller, a Fed governor, signaled yesterday that it was premature to consider a rate cut in the first quarter.Disney formally rejected Nelson Peltz’s board nominees. The entertainment giant has submitted a slate of directors — including James Gorman of Morgan Stanley and Mary Barra of General Motors — and snubbed the activist investor, who has criticized Disney over strategy and succession planning. Separately, compensation for Bob Iger, Disney’s C.E.O., for fiscal 2023 topped $31 million.BP appoints a new C.E.O. The energy giant today named as its new chief Murray Auchincloss. The former C.F.O. stepped in as interim chief four months ago after his predecessor, Bernard Looney resigned for failing to disclose relationships with employees. Auchincloss has indicated that he will follow Looney’s strategy to build up the company’s renewables business and cut back its oil and gas production by the end of the decade.China’s conundrum China delivered a double dose of bad news this morning, pushing down markets in Asia. Official data shows that the economy grew last year at its slowest pace in decades and that the country’s population declined again.The readings are another sign of deeper problems in the world’s second-largest economy, as it grapples with a property crisis, weak consumer confidence, falling exports, deflationary pressures and big demographic challenges.The economy grew 5.2 percent last year, up from 3 percent in 2022 when strict coronavirus restrictions were in place. That was better than the official target of about 5 percent but 2024 is expected to be tougher, with a Reuters poll of analysts forecasting growth that will probably slow to 4.6 percent.The population decline points to bigger challenges. The country recorded more deaths than births for a second straight year. Beijing is worried because fewer people means fewer consumers, and it needs working-age people to fuel growth. Retail sales in December were lower than expectations, too, while industrial output barely surpassed them.A post-Covid boost hasn’t materialized. “Chinese authorities and some international economists believed that China’s economic downturn in the past few years was caused by the “zero Covid” policy,” Yi Fuxian, a scientist at the University of Wisconsin–Madison and an expert on Chinese demographics, told DealBook. “But China’s economic recovery was much weaker than expected last year, as the core drivers of the downturn were aging and a declining work force.”Structural reforms are needed to address these new realities. But for the short term, China will continue to rely on export-led growth at a time when many Western companies are already looking to move parts of their supply chains elsewhere.A federal judge has struck down JetBlue’s proposed $3.8 billion deal to buy Spirit Airlines, which would have been the biggest such tie-up in a decade.Allison Dinner/EPA, via ShutterstockAn airline deal hits turbulence The Biden administration scored a major victory yesterday after a federal judge struck down JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines, a low-cost rival, ruling that the merger would harm competition.The decision blocks the airline sector’s biggest attempted tie-up in the U.S. in over a decade, and throws into question the industry’s efforts to consolidate. President Biden hailed the ruling as “a victory for consumers everywhere who want lower prices and more choices.”The Biden administration says airline mergers have made travel more costly. Last year, the Justice Department won a lawsuit that forced JetBlue and American Airlines to end a regional code-sharing alliance.The Justice Department argued that a JetBlue-Spirit combination would remove a low-cost competitor from the market, messing with the economics of airfares. The judge, William Young, agreed, saying that combining forces would “likely incentivize JetBlue further to abandon its roots as a maverick, low-cost carrier.”Shares in Spirit plunged after the decision. Stock in the budget airline, which received bailout funding during the coronavirus pandemic’s early days and is known for its yellow planes and no-frills service, sank 47 percent yesterday. The companies have not yet said whether they will appeal.What next? Alaska Airlines’s $1.9 billion deal to acquire Hawaiian Airlines could also face tough scrutiny.Big fish to fry at the Supreme Court The Supreme Court justices will hear a case today that started with commercial herring fishermen challenging a rule about paying the regulators who oversaw them. The legal fight is hugely consequential, and could ultimately limit the powers of federal agencies.The case challenges the power of administrative law. Courts today must defer to the hundreds of agencies that interpret a mountain of federal rules in regulating industry. Critics say this doctrine — known as Chevron deference — handcuffs judges, robbing them of the power to review and reverse agency actions.Lawyers for the fishermen are expected to argue that the principle should be overruled, or at least simplified. The arguments won’t fall on deaf ears. Justice Neil Gorsuch has written that the Chevron deference doctrine “deserves a tombstone.”The death of the principle could hobble regulators because their decisions could be overturned in court. Such a prospect is key to conservatives seeking a weaker administrative state. Court records show that the fishermen’s lawyers have links to Americans for Prosperity, a group funded by the petrochemicals billionaire Charles Koch, The Times’s Hiroko Tabuchi reports. Koch, the chairman of Koch Industries, is a longtime supporter of anti-regulatory causes.This case is part of a larger conservative campaign. A 2022 Supreme Court decision that constrained the Environmental Protection Agency’s authority on emissions regulation bolstered right-leaning activists. That case has helped opened the door to further legal challenges to regulators’ powers, including one this term involving the S.E.C.What to watch for in 2024 The Atlantic Council, an international affairs research organization, gave DealBook a first look at its annual list of the top risks, opportunities and under-the-radar phenomena to watch this year.Geopolitical conflict is a big focus. There is a “medium to high” probability that the Israel-Hamas war widens, according to the analysis, and that is underscored by intensifying U.S.-led strikes on Iran-backed Houthi rebels who are attacking commercial ships in the Red Sea corridor.Other hot spots include Ukraine and Taiwan. The West could pull back funding for Ukraine, the report’s authors write, making a Russian victory more likely. Meanwhile, China could choke off Taiwanese ports with a naval blockade rather than risking an invasion of the self-governed island nation.“Smartifacts” may be an opportunity. Cars, appliances and personal electronics will increasingly be equipped with artificial intelligence to better interact with the physical world, the analysts write. They predict that “2024 will be the year when A.I. goes mainstream, and not just on our screens,” potentially yielding an “entirely new class of devices.”Could white paint be an under-the-radar opportunity? The Atlantic Council also compiles an annual list of underappreciated risks and opportunities that it calls “snow leopards,” named for the well-camouflaged mountain cats.This year, the list includes super reflective white paint that can help reduce emissions and reliance on energy by reflecting 98 percent of the sun’s rays. “It’s one of those things that seems pretty simple, but it could have an outsize impact,” said Imran Bayoumi, an associate director at the organization.THE SPEED READ DealsUber is shutting Drizly, the alcohol-delivery business it bought in 2021 for $1.1 billion. (WSJ)Investors are raising billions to buy discounted stakes in venture capital-backed tech start-ups. (FT)Synopsys, a supplier to the chips sector, has agreed to buy Ansys, a software firm, for $35 billion. (NYT)PolicyThe Supreme Court denied a request to hear an antitrust case between Epic Games and Apple, leaving a lower-court ruling that was seen as a win for Apple in place. (Axios)Congressional leaders agreed a $78 billion deal to expand the child tax credit and other popular expired business tax breaks. (NYT)Best of the restHarvard is trying to smooth relations with Silicon Valley after turmoil over antisemitism on campus. (WSJ)“Airbus Is Pulling Ahead as Boeing’s Troubles Mount” (NYT)Hockey die-hards are building snazzy new rinks in their backyards. (WSJ)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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    After Capitol Riots, Billionaire’s ‘Scholars’ Confront Their Benefactor

    AdvertisementContinue reading the main storySupported byContinue reading the main storyAfter Capitol Riots, Billionaire’s ‘Scholars’ Confront Their BenefactorMore than 160 participants in a master’s program funded by the Blackstone founder Stephen Schwarzman have urged him to stop donating to election objectors. He has declined.Stephen Schwarzman opened his namesake program at Tsinghua University in Beijing in 2016.Credit…Getty ImagesFeb. 18, 2021Updated 1:33 p.m. ETThe private equity billionaire Stephen A. Schwarzman has spent many years financing educational programs, from his old high school to the Ivy League.But the Blackstone chief executive’s largess hasn’t always bought good will: There was swift opposition to his proposal to put his name on Abington Senior High School in Pennsylvania, and his close ties to former President Donald J. Trump contributed to opposition to having his name on a campus center he funded at Yale.And now, some participants in the Schwarzman Scholars program — a master’s course he established at Tsinghua University in Beijing to be a Chinese analogue to the Rhodes Scholarships — are speaking out against their benefactor.They say Mr. Schwarzman is failing to live up to his own values and harming the program’s reputation by not cutting off money to lawmakers who opposed certifying President Biden’s electoral victory.In a letter emailed to Mr. Schwarzman on Feb. 10, 161 current and past Schwarzman Scholars and two program professors urged Mr. Schwarzman to cut off those politicians and groups. “You espoused integrity, honesty and courage,” they wrote. “Now, we ask that you demonstrate those values by refusing to financially support those who would overturn the results of a free and fair election for their own political gain.”About an hour later, Mr. Schwarzman — who with his wife was the third-largest donor to the objecting lawmakers, according to an analysis by the Center for Responsive Politics — refused.Although the election certification vote would be “one of the major factors” in determining whom he supported in the future, Mr. Schwarzman wrote, “I value my constitutional right to carefully determine who I vote for and support.”The rift centers on one of Mr. Schwarzman’s fondest achievements, a one-year graduate program started with a $100 million donation from him and augmented with $450 million he raised from others. Up to 200 students take part each year, living and learning in a building designed by Robert A.M. Stern Architects — called Schwarzman College — with coursework focused on Chinese history, leadership and global affairs.Mr. Schwarzman and his wife, Christine, at the Metropolitan Museum of Art in 2018 for the Met Gala.Credit…Justin Lane/EPA, via ShutterstockBut some of the letter’s signers have begun to question whether having “Schwarzman Scholar” on their résumé is as much a risk as it is a benefit.“I feel like I cannot in good conscience allow my name to be associated with someone who refuses to commit not to donate to such people,” said Alistair Kitchen, a program alumnus who helped organize support for the letter.Mr. Kitchen, 29, an Australian who works in New York for Collective Impact, a strategy firm that focuses on progressive causes, said some scholars felt their association with the program could taint them, even as it burnished Mr. Schwarzman’s legacy, which Mr. Kitchen called a form a “reputation laundering.”For Ashlie Koehn, who had worked her way through the University of Kansas and joined the Kansas Air National Guard before becoming a Schwarzman Scholar, the program was a revelation — the first time she’d been able to focus on academics and not cost. But she said Mr. Schwarzman seemed not to understand the extent of his influence.“He has this self-perception of himself as an average American citizen, which he is in some ways,” said Ms. Koehn, 30, who works in state government. “But I think it disregards the fact that he has this outsized capital, and his donations give him an outsize impact.”A quarter of the more than 600 students who have participated in the program since 2016 signed the letter, including 18 anonymously. Some scholars supported the letter, organizers said, but feared repercussions in their professional lives if they signed.Others had different reasons for declining. Charles Vitry, a London-based alumnus of the program’s 2018 class, did not sign, although he said he “respected and appreciated the principles” of those who did. He said he also saw a need for “a broader community space to discuss challenging issues.”A spokesman for Mr. Schwarzman noted that the program had started in 2013 — “long before the 2016 election” — and that Mr. Schwarzman had supported congressional Republicans across the board in 2019 at the recommendation of G.O.P. leader, Representative Kevin McCarthy of California. “The majority of candidates Steve donated to voted to certify the results — as Steve had repeatedly called for,” said the spokesman, Matt Anderson.A spokeswoman for the Schwarzman Scholars program, Ellie Gottdenker, said in a statement that the program “remains true to its global mission and reputation as a world-class bridge for mutual understanding between China and the rest of the world.”The Schwarzman Scholars building at Tsinghua University.Credit…Getty ImagesThis is not the first time that Mr. Schwarzman has made a foray into educational philanthropy and faced opposition from those who benefit. Nor is it the first time that the opposition stemmed from his political positions.After Mr. Schwarzman donated $150 million to Yale, his alma mater, in 2015 to construct a building for events and informal gatherings to be named the Schwarzman Center, some professors and students complained about Blackstone’s business practices and his ties to Mr. Trump.In 2018, he pledged $350 million to build a new computer science center at the Massachusetts Institute of Technology, also to be named after him, which drew opposition on similar grounds.The same year, he pledged $25 million to help upgrade the high school he attended in suburban Philadelphia, which agreed to add his name to its own. The proposal set off an immediate backlash, and Mr. Schwarzman and the school quickly shifted course to name only a new science and technology building after him.The friction with the Schwarzman Scholars started almost immediately after the program welcomed its first class in 2016.A portrait of Mr. Schwarzman in the program’s facilities in Beijing.Credit…Getty ImagesSoon after the election, Mr. Schwarzman agreed to lead a business advisory council that made him one of Mr. Trump’s most prominent associates. After Mr. Trump introduced a travel and immigration prohibition aimed at people from predominantly Muslim countries, Mr. Schwarzman received sharp questions from the scholars on a video chat, according to one attendee. He argued that it was important to take a broad view and focus on common ground rather than on differences, the person recalled.Then came the 2020 election, and Mr. Schwarzman’s reaction to the outcome felt like equivocation to some members of the program.On a call with business leaders as votes in battleground states were still being counted, Mr. Schwarzman said he was sympathetic to voters who were skeptical of the counts. Later in the month, he said that the outcome was “very certain” and that Mr. Biden had his full support.When rioters stormed the Capitol, Mr. Schwarzman condemned their actions as an “insurrection” and “an affront to the democratic values we hold dear” in a statement to Blackstone employees and Schwarzman Scholars.But as a number of businesses and trade organizations were announcing that they would withdraw financial support from those who opposed certification of the election, at least two alumni wrote to Mr. Schwarzman raising concerns about his financial support of the objectors; they said he did not reply.Frustrated scholars began discussing a group letter. Mr. Kitchen and his former classmate Ricky Altieri, a 28-year-old Yale law student, circulated drafts over WeChat, text and Signal and eventually settled on a five-paragraph note. It asked that Mr. Schwarzman commit never to donate to any politician or political group that “supported Mr. Trump’s bid to overturn the results of the 2020 U.S. presidential election.”“We believe that donations to such candidates would violate the most basic principles of Schwarzman Scholars and harm its reputation,” the letter said.In his reply, which immediately made its way among current and former scholars, Mr. Schwarzman pushed back, writing that he had publicly supported the certification of Mr. Biden’s victory. Although the large number of objectors left him disappointed and confused, he said, they were “acting legally under the Constitution.”He added, “It is important in a democracy to continue to rely on our constitutional system and not voluntarily agree to be silenced.”Some of the scholars seemed to agree — and cited the program’s influence as one reason.Jacko Walz, 25, a New York-based strategy consultant focused on international development in Latin America, said the program had enhanced his awareness of the world around him and taught him about leadership and moral courage.“I think those topics are really authentically taught there,” Mr. Walz said. “And now that I’ve graduated I hope to practice them all the time.”AdvertisementContinue reading the main story More