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How CEOs are navigating the global economy’s ‘frog-boiling’ conditions

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Good morning. Andrew Nusca here, taking a break from my usual duties helming the Fortune Tech newsletter to make a cameo. I had the pleasure of hosting more than a dozen executives yesterday in a Fortune CEO roundtable discussion about how their strategies are shifting amid economic uncertainty and global complexity.

We kicked things off with former Atlanta Fed president Dennis Lockhart, who outlined the state of the economy and memorably said that it wasn’t “frog choking” conditions he was most worried about, but “frog boiling”—in his words, “the creeping, long-term changes where you can’t point to a particular event, necessarily, but over time you wake up and find you’re in a different world.”

So how did the CEOs say they’re managing change? 

For one software firm, it’s a “go all in” on AI with the ability to “answer the ROI question in about 24 months.” For another, it’s “hold on to your best developers” and “train up” everyone to leverage new tech. For an auto supplier, it’s diversifying your supply chain to deal with evolving relationships on the global stage; for a robotics company, it’s “robots building robots” in the U.S. where tariffs won’t wreck the balance sheet. And, of course, it’s seizing fresh opportunities amid the tumult.

Broadly, CEOs are feeling more upbeat about the global economy than they were earlier this year. In an October survey of chief executives conducted by Fortune and Deloitte, out yesterday, 32% of respondents described themselves as pessimistic about the economy over the next year, down from 58% in April. One reason for the shift in sentiment is the fact that tariffs have not disrupted global trade as feared. 

CEOs have shifted their focus to a different kind of disruption—that driven by AI. Sixty percent of chief execs say AI will have either a significant (45%) or transformational (15%) impact on their core processes over the next one to three years.

Drawing from the survey, Deloitte U.S. CEO Jason Girzadas highlighted the importance of a “growth mindset” and “emotional intelligence” as top skills to ride the wave.

Many thanks to sponsor Deloitte (which also sponsors this newsletter) for helping to make the conversation happen.

More news below.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

Flight chaos

As the U.S. shutdown drags on, government-mandated flight cancellations are crippling major U.S. airports. Cancellations representing 5% of all daily flights hit main hubs in Chicago and Atlanta on Tuesday; at New York’s LaGuardia, 12% of flights were scrapped. The shutdown could end soon, but the Federal Aviation Administration has declined to say when air travel will return to normal.

Fracture at the Fed

Federal Reserve officials are split over a December rate cut as they differ on which threat is more urgent: ongoing inflation or a cooling labor market. Even the availability of official government data might not bridge the rift. 

Limiting proxy advisors’ influence

The White House is considering an executive order to limit the power of proxy advisors like ISS and Glass Lewis and index-fund managers like BlackRock, Vanguard, and State Street, the WSJ reports. The proxy firms, in particular, have drawn ire from CEOs like Jamie Dimon who say they have conflicts of interest in making shareholder recommendations. 

AMD’s revenue growth 

AMD CEO Lisu Su said “insatiable demand” for AI chips could fuel revenue growth of 35% per year for the next three to five years. Much of that will come from its data center business, which Su forecasts to grow at 80% over the same period. 

SoftBank sinks on Nvidia sale

SoftBank Group’s announcement Tuesday morning that it sold its entire $5.8 billion stake in Nvidia has spooked investors who are already nervous about inflated tech valuations. Shares in SoftBank plunged as much as 10% on Tuesday, touching a one-month low. 

Paramount Skydance’s RTO losses 

Company disclosures from Paramount Skydance released this week reveal that 600 employees in New York and Los Angeles rejected the company’s five day return-to-office plan. The total cost of severance packages amounted to $185 million.

Chief AI scientist to leave Meta

Yann LeCun, chief AI scientist at Meta, has reportedly told colleagues that he is leaving the company in the next few months, per those familiar with the conversations who spoke to the Financial Times. LeCun has been working on AI at Meta for more than a decade but is reportedly exiting to establish his own startup.

The markets

S&P 500 futures are up 0.35% this morning. The last session closed up 0.21%. STOXX Europe 600 was up 0.59% in early trading. The U.K.’s FTSE 100 was down 0.07% in early trading. Japan’s Nikkei 225 was up 0.43%. China’s CSI 300 was down 0.13%. The South Korea KOSPI was up 1.07%. India’s NIFTY 50 is up 0.70%. Bitcoin was flat at $105K.

Around the watercooler

Ford CEO says a ‘shocking’ discovery after taking apart rival Tesla and Chinese EVs led to a ‘brutal’ business decision by Marco Quiroz-Gutierrez

Trump calls his 50-year mortgage idea ‘not even a big deal’ while insisting ‘the economy is the strongest it’s ever been’ by Nick Lichtenberg

Shares of Winklevoss’s Gemini sag as crypto firm losses grow by Carlos Garcia

Apple is now selling a $150 sling for your iPhone made by the same designer who created Steve Jobs’ iconic black turtleneck by Dave Smith

CEO Daily is compiled and edited by Joey Abrams and Claire Zillman.

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up to get it delivered free to your inbox.



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The Justice Department released thousands of files Friday about convicted sex offender Jeffrey Epstein, but the incomplete document dump did not break significant ground about the long-running criminal investigations of the financier or his ties to wealthy and powerful individuals.

The files included photographs of famous people who spent time with Epstein in the years before he came under suspicion, including some candid snapshots of Bill Clinton, who flew on Epstein’s jet and invited him to the White House in the years before the financier was accused of wrongdoing. But there was almost no material related to another old Epstein friend, President Donald Trump, aside from a few well-known images, sparing the White House from having to confront fresh questions about a relationship the administration has tried in vain to minimize.

The records, consisting largely of pictures but also including call logs, grand jury testimony, interview transcripts and other documents, arrived amid extraordinary anticipation that they might offer the most detailed look yet at nearly two decades worth of government scrutiny of Epstein’s sexual abuse of young women and underage girls. Yet the release, replete with redactions, seemed unlikely to satisfy the clamor for information given how many records had yet to be released and because some of the materials had already been made public.

Democrats and some Republicans seized on the limited release to accuse the Justice Department of failing to meet a congressionally set deadline to produce the files, while White House officials on social media gleefully promoted a photo of Clinton in a hot tub with a woman with a blacked-out face. The Trump administration touted the release as proof of its commitment to transparency, ignoring that the Justice Department just months ago said no more files would be released. Congress then passed a law mandating it.

In a letter to Congress, Deputy Attorney General Todd Blanche wrote that the Justice Department was continuing to review files in its possession, was withholding some documents under exemptions meant to protect victims and expected additional disclosures by the end of the year.

Trump, who was friends with Epstein for years before the two had a falling-out, tried for months to keep the records sealed.

But bowing to political pressure from fellow Republicans, Trump last month signed a bill giving the Justice Department 30 days to release most of its files and communications related to Epstein, including information about the investigation into his death in a federal jail. The law set a deadline for Friday.

Limited details about Trump

Trump is hardly glimpsed in the files, with the small number of photos of him appearing to have been in the public domain for decades. Those include two in which Trump and Epstein are posing with now-first lady Melania Trump in February 2000 at an event at his Mar-a-Lago resort.

Trump’s connection to Epstein is well-documented, but he has sought to distance himself from his former friend. He has said he cut off ties with Epstein after the financier hired young female employees from Mar-a-Lago and has repeatedly denied knowledge of his crimes.

The FBI and Justice Department abruptly announced in July that they would not be releasing any additional records, a decision that was supported by Trump. But the president reversed course once it became clear that congressional action was inevitable. He insisted the Epstein matter had become a distraction to the Republican agenda and releasing the records was the best way to move on.

The White House, meanwhile, has moved to shift focus away from Trump’s ties to Epstein, with Attorney General Pam Bondi last month saying that she had ordered a federal prosecutor to investigate Epstein’s connections to Trump’s political foes, including Clinton.

Neither Trump nor Clinton has ever been accused of wrongdoing in connection with Epstein, and the mere inclusion of someone’s name in the files from the investigation does not imply otherwise.

Among other prominent Epstein contacts is the former Prince Andrew, who appears in a photograph released Friday wearing a tuxedo and lying on the laps of what appear to be several women who are seated, dressed in formalwear. Pop star Michael Jackson also appears in multiple photos, including one showing him standing next to a smiling Epstein.

New photos of Clinton

Unlike Trump, Clinton is featured prominently in the files, though the records included no explanation of how the photographs of the former president related to any investigation or the context surrounding them.

Some photos showed him on a private plane, including one with a woman, whose face is redacted, seated alongside him with her arm around him. Another shows him in a pool with Epstein’s longtime confidant, British socialite Ghislaine Maxwell, and a person whose face was also redacted. He is also seen in a hot tub with a woman whose face was redacted.

This undated, redacted photo released by the U.S. Department of Justice shows Ghislaine Maxwell and former President Bill Clinton swimming with an unknown person.

U.S. Department of Justice via AP

Senior Trump White House aides took to X to promote the Clinton photos.

White House press secretary Karoline Leavitt wrote “Oh my!” and added a shocked face emoji in response to a photo of Clinton in the hot tub.

“They can release as many grainy 20-plus-year-old photos as they want, but this isn’t about Bill Clinton,” Clinton spokesman Angel Ureña said in a statement.

“There are two types of people here,” he said. “The first group knew nothing and cut Epstein off before his crimes came to light. The second group continued relationships after that. We’re in the first. No amount of stalling by people in the second group will change that.”

The Epstein investigations

After nearly two decades of court action, a voluminous number of Epstein records had already been public before Friday, including flight logs, address books, email correspondence, police reports, grand jury records, courtroom testimony and deposition transcripts.

Besides public curiosity about whether any of Epstein’s associates knew about or participated in the abuse, Epstein’s accusers have also sought answers about why federal authorities shut down their initial investigation into the allegations in 2008.

“Just put out the files,” said Marina Lacerda, who says she survived sexual assault by Epstein. “And stop redacting names that don’t need to be redacted.”

One of the few revelations in the documents was a copy of the earliest known concern about Epstein’s behavior — a report taken by the FBI of a woman in 1996 who believed photos and negatives she had taken of her 12-year-old and 16-year-old sisters for a personal art project had been stolen by Epstein. The documents don’t show what, if anything, the agency did with that complaint.

Police in Palm Beach, Florida, began investigating Epstein in 2005 after the family of a 14-year-old girl reported being molested at his mansion. The FBI joined the investigation. Authorities gathered testimony from multiple underage girls who said they’d been hired to give Epstein sexual massages.

Ultimately, prosecutors gave Epstein a deal that allowed him to avoid federal prosecution. He pleaded guilty to state prostitution charges involving someone under age 18 and was sentenced to 18 months in jail.

Epstein’s accusers spent years in civil litigation trying to get that plea deal set aside. One of those women, Virginia Giuffre, accused Epstein of arranging for her to have sexual encounters, starting at age 17, with other men, including billionaires, famous academics, politicians and Andrew Mountbatten-Windsor, then known as Britain’s Prince Andrew.

Mountbatten-Windsor denied ever having sex with Giuffre, but King Charles III stripped him of his royal titles this year.

Prosecutors never brought charges in connection with Giuffre’s claims, but her account fueled conspiracy theories about supposed government plots to protect the powerful. Giuffre died by suicide in April.

Federal prosecutors in New York brought new sex trafficking charges against Epstein in 2019, but he killed himself in jail after his arrest. Prosecutors then charged Maxwell, his longtime confidant, with recruiting underage girls for Epstein to abuse. She was convicted in 2021 and is serving a 20-year prison sentence.



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Epstein files: Congressmen say massive blackout doesn’t comply with law and ‘exploring all options’

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The Justice Department’s extensive redactions to the Jeffrey Epstein files on Friday don’t comply with the law that Congress passed last month mandating their disclosure, according to Rep. Ro Khanna.

The California Democrat and Rep. Thomas Massie, R-Ky., led the effort on the legislation, which required that the DOJ put out its entire trove of documents by today.

But he blasted the document dump and singled out one file from a New York grand jury where all 119 pages were blacked out.

“This despite a federal judge ordering them to release that document,” Khanna said in a video posted on X. “And our law requires them to explain redactions. There’s not a single explanation. That entire document was redacted. We have not seen the draft indictment that implicates other rich and powerful men who were on Epstein’s rape island who either watched the abuse of young girls or participated in the abuse of young girls in the sex trafficking.”

He said Attorney General Pam Bondi has been “obfuscating for months” and called the files on Friday “an incomplete release with too many redactions.”

The Justice Department didn’t immediately respond to a request for comment.

In a separate X post, Massie agreed with Khanna, saying the DOJ “grossly fails to comply with both the spirit and the letter of the law” that President Donald Trump signed last month.

Deputy Attorney General Todd Blanche told Congress that the Justice Department had identified 1,200 victims of Epstein or their relatives and redacted materials that could reveal their identities, according to the New York Times.

Earlier on Friday, Blanche told Fox News that “several hundred thousand” pages would be released on Friday. “And then, over the next couple of weeks, I expect several hundred thousand more,” he added.

“Thomas Massie and are exploring all options,” Khanna warned. “It can be the impeachment of people at Justice, inherent contempt, or referring for prosecution those who are obstructing justice. We will work with the survivors to demand the full release of these files.”

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The Epstein files are heavily redacted, including contact info for Trump, celebs, and bankers

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The highly anticipated Epstein files have so far landed with a thud as page after page of documents have been blacked out, with many nearly totally redacted.

While hundreds of thousands of documents have been released so far on the Justice Department’s site housing the information, there isn’t that much to see.

“Simply releasing a mountain of blacked out pages violates the spirit of transparency and the letter of the law,” Senate Minority Leader Chuck Schumer said in a statement. “For example, all 119 pages of one document were completely blacked out. We need answers as to why.”

That appeared to refer to a document titled “Grand Jury NY.” 

The data dump came late Friday, the deadline that Congress established last month for disclosing the trove of files, though other documents had already been released earlier by the DOJ, Congress and the Epstein estate.

One document listed thousands of names with their contact information redacted, including Donald Trump as well as Ivana and Ivanka Trump.

Numerous celebrities were also in that document, such as Rolling Stones singer Mick Jagger and the late pop idol Michael Jackson, who also appeared in photos with Epstein.

Former Senators John Kerry and George Mitchell were on the list as were Jes Staley, a former JPMorgan and Barclays executive, and Leon Black, a cofounder and former CEO of Apollo Global Management.

Appearing in the files doesn’t necessarily imply any wrongdoing as Epstein mingled in wider social circles and was ofter asked for charitable donations.

But Staley said he had sex with a member of Epstein’s staff, and Black was pushed out of Apollo over his Epstein ties, which Black maintains were for tax- and estate-planning services.

Numerous hotels, clubs and restaurants are listed too, plus locations simply described as “massage.” Banks included the now defunct Colonial Bank as well as Bear Stearns and Chemical Bank, which both eventually became part of JPMorgan.

Other entries fell under country categories like Brazil, France, Italy and Israel. Former Israeli prime ministers Ehud Olmert and Ehud Barak were on the list.



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