12 states led by the attorneys general of California and New York filed a federal lawsuit on Monday to block Paramount Skydance’s $110 billion deal to acquire Warner Bros. Discovery, contending that the merger violates federal antitrust law. The purchase would merge two of the largest film and television studios, news outlets such as CNN and CBS News, and streaming services HBO Max and Paramount+, creating a company that could dominate news and entertainment across the United States and internationally. Shareholders and the U.S. Department of Justice have approved the transaction, but the states argue that the combination would reduce competition and raise consumer costs. The complaint, filed in the Northern District of California, alleges that the merger violates Section 7 of the Clayton Antitrust Act. California Attorney General Rob Bonta and New York Attorney General Letitia James said the deal would lead to higher prices, lower quality programming, and reduced content for film, television, movie theaters and cable distributors. Paramount Skydance responded that the allegations are “fundamentally flawed” and that it will “vigorously defend” the agreement in court. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington also joined the suit. The lawsuit follows a separate consumer‑initiated action that remains pending in the same court, and British regulators are reviewing the deal, though they have not announced a formal intervention. Critics have linked the transaction to the second Trump administration, noting that David Ellison, son of Oracle founder Larry Ellison, would head the combined entity. The Wall Street Journal reported in June that the Justice Department closed its antitrust investigation before career antitrust lawyers could object; the department’s outgoing antitrust chief later told Politico that this characterization was inaccurate. Ellison’s recent acquisitions include the media commentary site Free Press and a leadership change at CBS News that installed Bari Weiss as editor in chief, a move that has prompted staff disputes and resignations among “60 Minutes” correspondents. Entertainment industry groups, including the Writers Guild of America, have supported the litigation, warning that consolidation could result in job losses and diminish independent journalism. The merger’s completion would reshape Hollywood and the news industry, raising questions about the future leadership of CNN and the role of its current chairman, Mark Thompson. The outcome of the litigation will determine whether the $110 billion merger proceeds, and its effect on competition, employment and media plurality remains unresolved.
Macro signals, central banks, earnings, and the deals moving capital today.
Simon Andriesz, a former Wall Street executive, said he uncovered emails showing that Howard Lutnick, the US commerce secretary, had undisclosed business dealings with Jeffrey Epstein, the convicted sex offender.
Andriesz said the emails were found among 3.5 million documents released as part of the Epstein files.
They indicate that Lutnick and Epstein discussed a digital advertising company called Adfin, in which both had invested.
Lutnick told the House Oversight Committee in May that he only learned this year that Epstein was a co‑investor and that he had met Epstein once in 2005, condemning Epstein's conduct.
The Commerce Department said there is no evidence of wrongdoing and characterized the allegations as a partisan distraction.
Andriesz previously reported accounting irregularities at BGC Partners, a firm linked to Lutnick's Cantor Fitzgerald, which led to a $3 million penalty from a US derivatives regulator.
He told the FBI about his concerns in 2020‑21.
In 2013, documents show Cantor Fitzgerald explored a plan to provide a £1 million loan to a company controlled by Prince Andrew, exploiting contacts the former royal trade envoy had made.
Epstein warned against the exclusivity of that arrangement.
The House Oversight Committee's 21 Democrats signed a letter urging Lutnick's resignation, alleging deception.
Lutnick's office said the BBC report would not alter his record of service.
The revelations add to scrutiny of Lutnick's financial ties as he serves in the commerce department, and the matter remains unresolved.
California leads a coalition of 12 states in filing a lawsuit to block the $110 billion merger between Warner Bros.
California leads a coalition of 12 states in filing a lawsuit to block the $110 billion merger between Warner Bros. and Paramount. The suit alleges that the deal would create the largest media consolidation in Hollywood history, accounting for over a quarter of major film releases and roughly 86 % of the market when combined with Disney, Universal and Sony. The states argue that the merger would reduce competition, raise consumer prices, lower content quality and diminish bargaining power for movie theaters and cable networks. Attorney General Rob Bonta said the merger would “harm audiences on every sofa and movie theater seat in the US” and described it as a “last‑ditch effort to blackmail the regulators.” He added that the plan “didn’t work” and “won’t work.” Paramount and Warner Bros say the lawsuit is “fundamentally flawed” and “wrong,” and pledged to “vigorously defend” the transaction. The companies contend that scale is necessary because cable audiences are shrinking and streaming platforms are pressuring theatrical attendance. They also warned that delaying the merger would harm entertainment workers and cost California tens of thousands of jobs. The US Department of Justice approved the merger in June, but the coalition of attorney generals has requested a temporary restraining order pending judicial review. The case highlights a major regulatory hurdle for the entertainment industry.
The U.S. Justice Department announced on July 13 that it has opened a grand jury investigation into allegations that United Auto Workers President Shawn Fain used his position to secure special benefits for his fiancée and her sister. The investigation follows a report by Bloomberg News on Sunday and comes amid a dispute within the union between Fain and vice president Rich Boyer, who is running for the union’s presidency. The union has been overseen by a court‑appointed monitor since 2021 after an earlier embezzlement scandal. Fain said the allegations are false and accused Boyer of attempting to weaponize the claims to influence the upcoming UAW election. Boyer said he was pressured by Fain to obtain the benefits and faced retaliation for refusing, according to a report published in late June by the monitor. The monitor, appointed to oversee the union after the 2021 embezzlement case, declined to comment further. Fain also suggested the monitor’s accusations were part of a politically motivated attack related to the union’s antiwar stance on Gaza. The investigation remains ongoing, and no formal charges have been filed.
Chipotle Mexican Grill will open its first restaurant in Mexico this week, located in Nuevo León near the Texas border. The chain, which operates more than 4,100 outlets worldwide, said the opening marks a significant step in its global expansion. US restaurant chains have struggled to establish a foothold in their countries of origin; Taco Bell withdrew from Mexico in 2010 after failing to attract diners, and Domino's Pizza exited Italy. Scott Boatwright, Chipotle chief executive, said the company enters Mexico with respect for its culinary heritage and a commitment to delivering its brand experience. The partnership with Mexican operator Alsea, which also manages Domino's Pizza, Starbucks and Chili's, plans to open up to 370 new restaurants globally this year, including locations in Singapore and South Korea, and aims to expand into Mexico City by 2027. Social media users expressed mixed reactions, with some questioning the appeal of a U.S. fast‑food concept in a market with established local cuisine and others describing the entry as a potential tourist novelty. The company said the new outlet serves as an important proof‑of‑concept for further growth in Latin America.
Oil prices rose 5% on Monday after the United States reinstated its blockade of Iranian shipping in the Strait of Hormuz, with Brent crude climbing to $79.37 per barrel. The United States announced it would impose a 20% toll on cargo passing through the strait to cover safety and security costs, according to President Donald Trump, who said the arrangement would begin immediately and that the country would be known as the “guardian of the Hormuz Strait,” a phrase quoted in a social media post. The United States launched additional missile strikes against Iranian targets on Sunday, saying the action was intended to degrade Iran’s ability to attack civilian mariners and commercial ships, a statement from U.S. Central Command said. Iran’s Islamic Revolutionary Guard Corps reported that it halted two vessels in the strait by shutting down their systems, though it did not name them. The number of ships transiting the strait fell to six on Sunday, the lowest in five weeks, according to data analyst Kpler. Kpler also reported that tankers exiting the strait included the very large crude carrier Humanity, which carried 2 million barrels of Iranian oil, and the tanker Capetan Andreas, which carried about 500,000 barrels of Kuwaiti oil products. Three empty tankers entered the Gulf to load oil. Most vessels turn off transponders when crossing the strait. Iran said it had closed the strait after a vessel used an unapproved route; the United States said the route remained open to commercial traffic. The escalation has cast doubt on an interim truce signed between the United States and Iran last month. Analysts at Goldman Sachs noted that recent attacks increase uncertainty about Gulf exports and could raise short‑run oil price risk. Gold fell 1.4% to $4,083 per ounce on Monday as higher oil prices raised concerns about inflation and potential interest rate hikes. OPEC lowered its forecast for global oil demand growth in 2026 to 780,000 barrels per day, the third consecutive downward revision, while the International Energy Agency expects demand to decline by 1 million barrels per day in the same year. Stock markets reacted to the developments: the Nasdaq fell 1% and the S&P 500 slipped 0.4% in the United States, while South Korea’s Kospi dropped 8% and Japan’s Nikkei 225 and China’s Shanghai Composite each fell about 2%. Chip manufacturers also declined, with SK Hynix down 15% and Samsung down 10%. The situation remains unresolved as the United States and Iran continue to exchange statements and military actions, leaving the flow of Gulf oil uncertain.