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Happy Friday! Fall is here, and if you're looking to get into the spirit we have the best fall-themed foods at Trader Joe's right now.
In today's big story, the walls are closing in on New York City Mayor Eric Adams after a federal indictment.
What's on deck:
- Markets: Saudi Arabia is prepared to give up its fight against waning oil demand.
- Tech: OpenAI's turmoil is a bad look for its huge funding round, VCs say.
- Business: The hottest new thought leader in Silicon Valley? MrBeast.
But first, the charges are in.
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The big story
United States v. Eric Adams
He campaigned on the idea that he'd clean up crime, but prosecutors allege he was the one breaking the law.
New York City Mayor Eric Adams was indicted on five criminal counts in a corruption probe accusing him of bribery and receiving illegal campaign contributions from foreign nationals. He is scheduled to be arraigned in a Manhattan federal court today.
It marks the first time a sitting NYC mayor has been indicted.
Prosecutors accused Adams, a Democrat and retired police captain, of accepting more than $100,000 worth of luxury international travel from wealthy businesspeople and at least one Turkish government official starting after he became Brooklyn Borough President in 2014.
The goal, said Damian Williams, the US Attorney for the Southern District of New York, was to gain influence over Adams so foreign nationals could eventually "cash in on their corrupt relationships."
In one case, according to the indictment, that meant a Turkish Airlines manager offering to charge Adams $50 for two business-class seats worth $15,000. (An Adams staffer told the manager to "quote a proper price," adding "let it be somewhat real." Adams ended up paying $1,100 for each ticket.)
Messages obtained by prosecutors also show Adams promising his staffer he "always" deleted texts following a discussion of alleged Turkish bribes.
So what were foreign nationals allegedly looking to cash these favors in for?
A Manhattan skyscraper that houses Turkey's consulate, among other things, prosecutors say.
Adams pressured the FDNY to approve the opening of the building without a fire inspection so it would be available in time for a high-profile visit by Turkey's president, according to the indictment.
If convicted, Adams could face 45 years behind bars. But he isn't backing down.
Despite calls from other elected officials to step down, the mayor has maintained his innocence. He's also hired high-powered lawyer Alex Spiro, Elon Musk's go-to attorney.
But the same can't be said for key people in Adams' office who resigned before his indictment, including the public school chancellor and police commissioner.
New York Governor Kathy Hochul, who has the power to remove Adams from office, didn't comment on the matter Thursday morning beyond saying she needed time to review the indictment.
If Adams is removed from office or steps down, Jumaane Williams, the city's public advocate, would replace him until a special election is held.
News brief
Top headlines
- Japan's new prime minister could try to shake up the country's military pact with the US.
- Exclusive: Physical therapy startup Hinge Health hires Morgan Stanley as it prepares to confidentially file its S-1.
- AI leaders are reacting to OpenAI's wild 24 hours with a mix of schadenfreude and concern.
- Russia's economy is signaling a fate worse than recession.
- Salesforce will close its Portland office, asks employees to relocate or take severance.
3 things in markets
- Oil's no good, very bad day. Oil markets dropped Thursday on a report that Saudi Arabia seemed to be saying uncle on its fight against waning demand. The kingdom will no longer seek a $100 per barrel price and is ready to increase oil output, sources told the Financial Times.
- Not everyone's buying the China stock surge. A new stimulus package has sent Chinese stocks soaring, but many strategists and economists think the country needs even more help before it's a sure bet for investors. Not everyone is playing it safe, though. Hedge fund billionaire David Tepper said he's loading up on Chinese stocks.
- AI needs lots of energy. That's good news for these stocks. Three market experts shared their picks for companies that can maximize AI energy efficiency. Some produce more specialized chips while others make sure data centers stay cool. Here are the eight stocks set to win the AI energy trade.
3 things in tech
- OpenAI's turmoil isn't good news for its big funding round. OpenAI is said to be closing a round that could value the company at as much as $150 billion. But following this week's executive exodus, VCs worry what this means for its prospects of becoming one of the world's most valuable private companies.
- Microsoft just paused a major AI overhaul of its 365 software suite. The decision to pause on integrating Copilot AI features more deeply into 365 could be a bad sign. According to people familiar with the decision, Microsoft may be questioning whether the tools can drive license purchases.
- These startups are coming for Nvidia's crown. The AI darling of the stock market has competition from a new class of challengers, including SambaNova and Cerebras. Nvidia, meanwhile, has been snapping up some competitors through acquisitions. It recently added OctoAI, its fifth deal this year.
3 things in business
- The housing market takes a chill pill. Real estate is in the midst of its biggest slowdown since before the pandemic, with sales dropping and homes sitting for longer on the market. In the meantime, there's good news for those who already own homes: Lower rates mean it's prime time to refinance.
- Is MrBeast the final boss of "founder mode"? A business handbook penned by the embattled YouTube star set the internet abuzz when it leaked this week. In the doc, the creator emphasizes his desire for employees who are "obsessive" about work and thirsty for success — so it's strangely fitting that his next venture is apparently promoting access to clean water.
- It could be the end of an era for publishers on Snapchat. Publishers worry the app's upcoming redesign, which merges Stories and Spotlight into a TikTok-like feed, will deprioritize their content. Snapchat is the latest company to deemphasize traditional media outlets in favor of creators, a move that could hinder publishers' ad revenue and visibility.
In other news
- Alex Jones' empire is getting stripped for parts. It won't be the last of him.
- Why Micron is the latest AI darling — for today at least.
- See the luxury hotel suite feds say Eric Adams paid only $600 for when the stay was worth $7,000.
- Jamie Dimon says American schools should teach nutrition and financial literacy.
- Influencers are shepherding their online followers to IRL events as they look to build communities and make money.
What's happening today
- Higher tariffs on multiple Chinese goods take effect, including 100% on electric vehicles, 50% on solar cells, and 25% on steel, aluminum, EV batteries, and key minerals.
- New York Film Festival begins.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Jack Sommers, deputy editor, in London. Nathan Rennolds, editor, in London. Amanda Yen, fellow, in New York. Milan Sehmbi, fellow, in London.