Business
Warren Buffett is buying, Michael Burry is shorting: The AI trade splitting Wall Street
Buffett’s Berkshire Hathaway last month unveiled a large new stake in Alphabet, instantly propelling the Google parent into Berkshire Hathaway’s top 10 holdings. The move is widely seen as an endorsement of Alphabet’s heavy AI investments and the market’s view of the company as a frontrunner in the AI race.
The investment comes at a moment of transition for Berkshire. Buffett announced in May that he will step down as CEO at the end of this year, though he will retain his stock, handing the reins to vice chairman Greg Abel after decades at the helm of a company that began as a Nebraska textile mill and grew into one of the most influential conglomerates in American finance.
Burry doubles down on his skepticism
Michael Burry, however, is moving in the opposite direction. The investor who famously profited from betting against the U.S. housing market in 2008 has taken new short positions in Palantir and Nvidia, two of the highest-profile beneficiaries of the AI boom.He has been particularly critical of accounting practices across Big Tech, arguing that companies “have been systematically increasing the useful lives of chips and servers, for depreciation purposes, as they invest hundreds of billions of dollars in graphics chips with accelerating planned obsolescence.”
Burry is also in a period of transition. Scion Asset Management, his hedge fund, will close by year-end. In a recent investor letter, he wrote that his “estimation of value in securities is not now, and has not been for some time, in sync with the markets.” He has since launched a financial newsletter, Cassandra Unchained, where he continues to express skepticism about the AI boom.
A market split as AI hype peaks
Their opposing moves come as even industry leaders begin to acknowledge stretched expectations. Sam Altman, CEO of OpenAI, has voiced concerns about the pace and scale of speculative fervor surrounding artificial intelligence.
Still, capital continues to flood the sector, and the disagreement between two investors of such high reputation underscores the uncertainty in the market. Buffett turned Berkshire Hathaway into one of the most recognizable names in American investing, while Burry inspired Michael Lewis’s The Big Short and the film adaptation starring Christian Bale.Now, with both navigating turning points in their own careers, the divergence in their AI positions is emerging as one of the most closely watched splits in the market—one that could signal whether the boom is built on solid ground or heading toward another historic correction.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business
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Epstein advised Starlink rival OneWeb’s founder, emails show
The disgraced financier served as a confidante to OneWeb founder Greg Wyler as the entrepreneur sought funding after launching the company in 2012, the emails show. Wyler later secured investments from SoftBank Group Corp. and Qualcomm Inc. Wyler did not dispute the accuracy of the emails reviewed by Bloomberg.
“Epstein said he had professional relationships with and advised many in the tech industry” during that period, Wyler said in an emailed statement.
Epstein “did discuss investing, but no investment ever occurred,” Wyler said. “More broadly, I never accepted any offer or request he made to invest in or support any company I was associated with.”
A spokesperson for Eutelsat Communications SA, which now owns OneWeb, said Wyler left the company when it entered Chapter 11 bankruptcy in March 2020. OneWeb was later restructured and refinanced, emerging under new ownership and governance.
OneWeb was rescued from bankruptcy by the UK government and India’s Bharti Enterprises Ltd., before being combined with Eutelsat in 2023.
Wyler is now founder and chief executive officer of E-Space, another satellite network startup. The company broke ground on a headquarters in Arlington, Texas, in October, a project the city said would create 2,000 jobs. E-Space did not respond to requests for comment.In a post on X late Wednesday, responding to disclosures that mentioned him, Wyler said his interactions with Epstein “at all times were professional.”
Many of the emails are abbreviated, misspelled or lack context, at times making it unclear whether deals were pursued or merely discussed. Still, they shed light on negotiations and meetings where business intersected with globe-trotting personal lives, including references to Musk and other billionaires.
The Wyler emails are part of a trove released last Friday that details Epstein’s connections to prominent investors, executives, lawyers and political figures.
In May 2014, Wyler shared a term sheet with Epstein while discussing a potential investment involving Alphabet Inc.’s Google.
The two also wrote about visiting Necker Island, owned by Richard Branson – an early OneWeb investor – and exchanged messages about private jets, with Epstein introducing Wyler to an aircraft broker.
Wyler appeared on a flight manifest with Epstein and requested use of his helicopter, while Epstein sought Wyler’s advice on improving broadband at his estate. Bloomberg
Business
Norwegian diplomat steps down over Epstein ties, in widening scandal

Norwegian diplomat steps down over Epstein ties, in widening scandal
Business
UBS banked Ghislaine Maxwell for years, moving her money after Epstein’s arrest
The documents, part of a cache released by the U.S. Justice Department last month, provide fresh insights into the extent of UBS’ banking relationship with Maxwell, who was arrested in 2020 and found guilty in 2021 for her role in helping Epstein sexually abuse teenage girls. She is currently serving a 20-year prison sentence.
The documents, which include emails and bank statements, show the Swiss lender opened personal and business accounts for Maxwell holding cash, shares and investments in hedge funds. UBS assigned her two relationship managers, who then helped Maxwell move millions of dollars and accorded her other benefits the bank reserves for its wealthy clients.
In 2014, after JPMorgan closed Epstein’s accounts, UBS provided him with a credit card, an email shows. Epstein had been jailed and pleaded guilty in 2008 to soliciting prostitution from an underage girl. That account was closed in September that year.
Epstein’s accountant told him UBS had taken the decision because of the “reputational risk,” an email shows. But the bank continued its relationship with Maxwell even though her proximity to Epstein had been reported by several media, including in an interview with the financier. UBS declined to respond to Reuters questions for this article, including why it took on a client deemed high risk by another bank.
There is no evidence of any wrongdoing on the part of UBS or its advisers, and some documents show the bank conducted due diligence before transferring her accounts from JPMorgan. Reuters could not learn details of the diligence the bank did.
A lawyer for Maxwell did not respond to a request for comment. MAXWELL IS INTRODUCED TO UBS
Epstein and Maxwell had banked with JPMorgan for years, but the biggest U.S. lender started getting concerned about risks of dealing with them in the years following Epstein’s 2008 conviction.
In 2011, while conducting know-your-customer checks, JPMorgan advised internally that Maxwell be flagged as a “High Risk Client” over her links to Epstein, separate U.S. court documents show. In 2013, JPMorgan decided to close Epstein’s account.
JPMorgan flagged in Epstein’s history that ” er bank policy, felons [like Epstein] are considered high risk and require additional approval,” according to a court submission by the U.S. Virgin Islands against JPMorgan in federal court in New York. JPMorgan settled the case for $75 million in 2023. JPMorgan, which has denied knowledge of Epstein’s crimes, declined to comment. The bank declined to say when and why it closed Maxwell’s accounts.
In December 2013, David Wassong, then a partner at Soros Private Equity Partners, introduced Maxwell to UBS, according to an email exchange.
“I have cced one of my best friends named Ghislaine maxwell (sic). She is looking for a new wealth manager, and I told her she had to meet you,” Wassong wrote.
On February 14, 2014, an email with the names redacted urges UBS to “expedite this transition from JPMorgan.”
“Ghislaine is leaving for over a month next week so she really needs to get this moved over / paperwork signed before her departure. Also, she would like to speak to you to introduce herself, etc,” the email reads.
In response, UBS representatives said they had reviewed documents submitted by her and had some follow-up questions as they processed the move to the bank.
Wassong did not respond to a request for comment about his dealings with Maxwell. Soon after, UBS had opened an account and Maxwell used it for her personal expenses and businesses, including her charity TerraMar Project, as well as for entities called Ellmax, Pot & Kettle, Max Foundation and Max Hotel Services, the documents show. As early as February 2014, Maxwell had nearly $2 million in one of her UBS accounts. Maxwell instructed the bank on how to move her cash. In one request in 2016, Maxwell asked the bank to make a $2.5 million payment to Scott Borgerson, to whom she was married that year.
On July 22, 2019, 16 days after Epstein’s arrest, UBS moved $130,000 on Maxwell’s request from her savings to her checking account to help pay an American Express card bill, the documents show.
Borgerson did not reply to a LinkedIn message requesting comment.
On August 16, 2019, the month after Epstein’s arrest, UBS received a Grand Jury Subpoena on Maxwell, according to a letter from UBS to the Federal Bureau of Investigation. UBS provided the FBI with information on wire transfers, according to the letter.
Reuters could not determine when – and if – UBS had closed Maxwell’s accounts.
Business
Gaza’s Rafah crossing reopens, allowing limited travel as Palestinians claim delays and mistreatment
The vital border point opened last week for the first time since 2024, one of the main requirements for the US-backed ceasefire. The crossing was closed Friday and Saturday because of confusion about reopening operations.
Egypt’s Al Qahera television station said that Palestinians began crossing in both directions around noon on Sunday. Israel didn’t immediately confirm the information.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu is expected to travel to Washington this week, though the major subject of discussion will be Iran, his office said.
Delays and mistreatment accusations
Over the first four days of the crossing’s opening, just 36 Palestinians requiring medical care were allowed to leave for Egypt, plus 62 companions, according to UN data, after Israel retrieved the body of the last hostage held in Gaza and several American officials visited Israel to press for the opening.
Palestinian officials say nearly 20,000 people in Gaza are seeking to leave for medical care that isn’t available in the territory. Those who have succeeded in crossing described delays and allegations of mistreatment by Israeli forces and other groups involved in the crossing, including an Israeli-backed Palestinian armed group, Abu Shabab.
A group of Palestinian patients and wounded gathered Sunday morning in the courtyard of a Red Crescent hospital in Gaza’s southern city of Khan Younis, before making their way to the Rafah crossing with Egypt for treatment abroad, family members told The Associated Press.Amjad Abu Jedian, who was injured in the war, was scheduled to leave Gaza for medical treatment on the first day of the crossing’s reopening, but only five patients were allowed to travel that day, his mother, Raja Abu Jedian, said. Abu Jedian was shot by an Israeli sniper while he doing building work in the central Bureij refugee camp in July 2024, she said.
On Saturday, his family received a call from the World Health Organization notifying them that he is included in the group that will travel on Sunday, she said.
“We want them to take care of the patients (during their evacuation),” she said. “We want the Israeli military not to burden them.”
The Israeli defence branch that oversees the operation of the crossing didn’t immediately confirm the opening.
Heading back to Gaza
A group of Palestinians also arrived Sunday morning at the Egyptian side of the Rafah crossing to return to the Gaza Strip, Egypt’s state-run Al-Qahera News satellite television reported.
Palestinians who returned to Gaza in the first few days of the crossing’s operation described hours of delays and invasive searches by Israeli authorities and Abu Shabab. A European Union mission and Palestinian officials run the border crossing, and Israel has its screening facility some distance away.
The crossing was reopened on Feb. 2 as part of a fragile ceasefire deal to halt the Israel-Hamas war.
The Rafah crossing, an essential lifeline for Palestinians in Gaza, was the only one in the Palestinian territory not controlled by Israel before the war. Israel seized the Palestinian side of Rafah in May 2024, though traffic through the crossing was heavily restricted even before that.
Restrictions negotiated by Israeli, Egyptian, Palestinian and international officials meant that only 50 people would be allowed to return to Gaza each day and 50 medical patients – along with two companions for each – would be allowed to leave, but far fewer people have so far crossed in both directions.
Hamas negotiations
A senior Hamas official, Khaled Mashaal, said the militant group is open to discuss the future of its arms as part of a “balanced approach” that includes the reconstruction of Gaza and protecting the Palestinian enclave from Israel.
Mashaal said the group has offered multiple options, including a long-term truce, as part of its ongoing negotiations with Egyptian, Qatari and Turkish mediators.
Hamas plans to agree to a number of “guarantees,” including a 10-year period of disarmament and an international peacekeeping force on the borders, “to maintain peace and prevent any clashes,” between the militants and Israel, Mashaal said at a forum in Qatar’s capital, Doha.
Israel has repeatedly demanded a complete disarmament and destruction of Hamas and its infrastructure, both military and civil.
Mashaal accused Israel of financing and arming militias, like the Abu Shabab group which operates in Israeli military-controlled areas in Gaza, “to create chaos” in the enclave.
In the forum, Mashaal was asked about Hamas’ position from US President Donald Trump’s Board of Peace. He didn’t offer a specific answer, but said that the group won’t accept “foreign intervention” in Palestinian affairs.
“Gaza is for the people of Gaza. Palestinians are for the people of Palestine,” he said. “We will not accept foreign rule.” (AP) GSP
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Northern Active M Emerging Markets Equity Fund Q4 2025 Commentary
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Tesla Isn’t the Only Robot Game In Town. This Company Aims to Compete.
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