Market Beats | Trump Sues The New York Times for $15B; Judge Dismisses Terrorism Charges in Mangione Case; US Retail Sales Extend Gains in August; Disney, Universal, and Warner Bros. Sue China’s MiniMax Over IP Piracy; Beijing Approves US TikTok Using Chinese Algorithm; MBA ROI in the US Declines; Wealthy Consumers Driving US Economy

—— Trump Sues The New York Times for $15B; Judge Dismisses Terrorism Charges in Mangione Case; US Retail Sales Extend Gains in August; Disney, Universal, and Warner Bros. Sue China’s MiniMax Over IP Piracy; Beijing Approves US TikTok Using Chinese Algorithm; MBA ROI in the US Declines; Wealthy Consumers Driving US Economy

1. Trump Sues The New York Times for $15B

President Donald Trump filed a $15 billion defamation and libel lawsuit against The New York Times in federal court in Tampa, Florida, accusing the paper of acting as a “mouthpiece” for Democrats.

The lawsuit highlights a 2024 editorial endorsing Kamala Harris that described Trump as “unworthy to serve as president.” Trump blasted the Times’ coverage as a decades-long campaign of lies targeting him, his family, business, and the MAGA movement.

Defendants include the New York Times Co., several of its reporters, and Penguin Random House LLC, publisher of the book Lucky Loser: How Donald Trump Squandered His Father’s Fortune and Created the Illusion of Success.

Trump is seeking damages greater than the market value of the Times itself, which stands at roughly $9.65 billion. The filing describes the Times’ editorial stance as “industrial-scale defamation.” The paper hasn’t yet commented.

______

2. Judge Dismisses Terrorism Charges in Mangione Case

A New York state judge on Tuesday dismissed the most serious charges against Luigi Mangione but allowed certain murder counts to proceed, ruling there wasn’t sufficient evidence to classify the crime as an act of terrorism.

Judge Gregory Carro, in a brief hearing, rejected both first- and second-degree murder charges tied to terrorism, though prosecutors can still pursue second-degree murder and several additional counts. This decision spares Mangione from the possibility of life in prison without parole.

Mangione, 27, stands accused of fatally shooting UnitedHealth Group executive Brian Thompson outside a midtown Manhattan hotel last year before fleeing. The incident sparked a manhunt that ended with his arrest days later at a McDonald’s in Altoona, Pennsylvania.

The case has attracted widespread attention, with some viewing Mangione as a folk hero expressing public frustration toward the US health-care system.

______

3. US Retail Sales Extend Gains in August

US retail sales climbed for a third straight month in August, rounding out a summer of resilient consumer spending.

According to Commerce Department data, retail purchases (unadjusted for inflation) rose 0.6%, beating all economist forecasts in a Bloomberg survey. July showed a similar gain. Excluding autos, sales advanced 0.7%. Nine of 13 categories registered growth, led by online retailers, clothing outlets, and sporting goods stores — a sign of back-to-school demand. Auto sales rose modestly, surprising some economists who had expected them to weigh on the headline figure.

The report highlights ongoing consumer resilience despite higher tariffs, subdued sentiment, and signs of labor-market weakness. While wage growth has cooled, many households are still seeing pay increases outpace inflation, and wealthier Americans continue to benefit from stock market gains.

Heather Long, chief economist at Navy Federal Credit Union, said: “Consumers say they are gloomy about the economic outlook, but they are still opening their wallets and spending, even on little splurges for themselves and their families. The big question is how long this can continue if layoffs pick up.”

______

4. Disney, Universal, and Warner Bros. Sue China’s MiniMax Over IP Piracy

Walt Disney Co., Comcast Corp.’s Universal Studios, and Warner Bros. Discovery Inc. have filed a lawsuit against Chinese AI startup MiniMax, accusing it of misappropriating Hollywood intellectual property.

Founded in 2021 and based in Shanghai, MiniMax is valued at about $3 billion and has been dubbed one of China’s “AI Dragons.” The company operates generative AI models powering products such as the Hailuo AI video and image editor and Talkie, a chatbot competing with Character.AI. According to the complaint filed in California, MiniMax “completely disregards US copyright law and treats valuable copyrighted characters like its own.”

Hailuo AI is marketed as a “Hollywood studio in your pocket,” but plaintiffs allege that the app built its offerings by pirating studio-owned IP. Subscribers can generate high-quality downloadable images and videos featuring characters such as Spider-Man, Superman, Darth Vader, Shrek, Buzz Lightyear, and Bugs Bunny, simply by submitting text prompts. These outputs carry MiniMax and Hailuo branding.

The studios argue that MiniMax uses copyrighted characters to advertise and promote its services to US customers. MiniMax has yet to respond to the allegations.

______

5. Beijing Approves US TikTok Using Chinese Algorithm

Beijing has confirmed that the US spin-off of TikTok, arranged under President Donald Trump’s deal with American investors, will continue to use ByteDance’s Chinese algorithm.

Wang Jingtao, deputy head of China’s powerful cybersecurity regulator, said Monday that US and Chinese officials had reached a framework agreement that included “licensing the algorithm and other intellectual property rights.” He added that ByteDance would “entrust the operation of US user data and content security” without further elaboration.

The recommendation algorithm has long been at the center of geopolitical tensions over TikTok. During Trump’s first term, Beijing introduced export controls on algorithms to block a forced sale of the app. The AI technology underpins TikTok’s ability to deliver addictive personalized videos, but US national security officials fear it could be manipulated to push propaganda or divisive content.

Washington has insisted that any deal must ensure TikTok’s algorithm is fully severed from ByteDance. However, it remains unclear how much control the Chinese parent will retain under a licensing arrangement.

An Asia-based ByteDance investor said the new US TikTok entity will at least partly rely on the Chinese algorithm but be trained in the US on American user data. “Beijing’s bottom line is a licensing deal,” the investor said. “Beijing wants to be seen as exporting Chinese technology to the US and the world.”

A US adviser close to the negotiations described it as the “ultimate Taco trade” — short for “Trump always chickens out” — adding that after all the wrangling, “China keeps the algorithm.”

The framework deal was struck after two days of talks in Madrid, allowing TikTok to continue operating in the US. Under American law, ByteDance was required to divest TikTok’s US operations or face a nationwide ban. China’s top trade negotiators, Vice Premier He Lifeng and Deputy Commerce Minister Li Chenggang, signaled Beijing would approve the algorithm’s export.

______

6. MBA ROI in the US Declines

Getting an MBA in the US has become costlier and less profitable, according to Bloomberg’s latest analysis of salary and tuition data.

Bloomberg’s updated Business School ROI Calculator, based on surveys of over 9,500 students and alumni, projects an average annual return of 12.3% over the decade after graduation, down from 13.3% last year. By comparison, the S&P 500 index returned 14.6% over the decade ending Aug. 31.

The decline is mainly due to respondents reporting 6.2% higher pre-MBA salaries than last year, while projected post-degree earnings rose only 1.7%. This shrinks the MBA pay premium. Meanwhile, average earnings for high-skilled US workers increased 4.7% in the year ended July 31. Higher pre-MBA salaries also mean students are giving up more income during their studies. Tuition and expenses rose 2.4%, some financed with bigger loans at higher interest rates. Overall, the typical total MBA investment in the US increased 6.8% to nearly $300,000.

Of schools included in both this and last year’s calculator, four out of five saw ROI declines. Syracuse University’s Whitman School of Management had the steepest drop, with ROI falling to 13.3% from over 21%. Students there reported 44% higher tuition and expenses and nearly 74% more debt than in 2024, but the real drag was the shrinking pay premium.

To maximize the MBA pay edge, graduates should pursue higher-paying industries, but many don’t. Almost 1 in 4 survey respondents entered technology, despite consulting, financial services, and real estate offering higher salaries. Jobs in nonprofits, government, and education paid the least, typically $100,000 or below.

______

7. Wealthy Consumers Driving US Economy

The resilience of the US economy is increasingly tied to the spending power of wealthy households. According to analysis of Federal Reserve data by Mark Zandi, chief economist at Moody’s Analytics, the top 10% of earners accounted for 49.2% of total consumer spending in the second quarter, up from 48.5% in the first quarter and the highest share since records began in 1989.

This growing concentration of spending helps explain why the economy has stayed afloat despite slowing job creation, rising debt delinquencies, and persistent inflation straining many households. Retail sales in August rose for a third straight month, beating forecasts, as consumers continued to spend despite higher prices due to tariffs and subdued sentiment.

Still, economists warn that this trend makes growth overly dependent on a small group of wealthy Americans, leaving the economy vulnerable if their spending slows. “If they turn more cautious in their spending, for whatever reason, the economy will suffer a recession,” Zandi said. One potential trigger could be a downturn in equities. With stock markets near record highs and property values still elevated, many wealthy households have seen their net worth increase, fueling their spending.

By contrast, the bottom 80% of households — those earning less than about $175,000 a year — have seen their spending only keep pace with inflation since the pandemic.

Meanwhile, signs of a weakening labor market are raising concerns of a more pronounced deterioration ahead. Federal Reserve officials are widely expected to respond by cutting interest rates by a quarter point this week.

______