Citi Says Biggest Carry Trade Rally in Years Has Longer to Run
A more pro-actively dovish stance from the Federal Reserve, combined with caution from emerging-market central banks, will continue to bolster developing-world currencies against the dollar, Luis Costa, Citi's head of emerging-market strategy, said in an interview.
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Trump wants Fed's Lisa Cook out over mortgage fraud claims
President Donald Trump on Wednesday morning demanded the resignation of Federal Reserve official Lisa Cook in his latest attack against the central bank. The call for Cook's resignation came less than a day after Federal Housing Finance Agency director Bill Pulte disclosed an Aug. 15 letter sent to Attorney General Pam Bondi pushing the Department of Justice to probe Cook's mortgages. Pulte suggested Cook committed mortgage fraud. "Cook must resign, now!!!" he said in a short social media post linking to a Bloomberg News story about her. The White House, Department of Justice, and FHFA did not immediately respond to a request for comment. The Federal Reserve declined to comment. Trump has embarked on an extraordinary campaign to pressure the Federal Reserve to lower the cost of borrowing. He's expressed enormous fury at Fed Chair Jerome Powell in particular for holding steady on interest rates all year. Trump allies like Pulte have joined Trump in prodding the central bank to cut interest rates. In Pulte's case, his pro-Trump advocacy has prompted some criticism from Republican senators who say he should focus on his main task of overseeing the mammoth residential mortgage market. Trump recently had an opportunity to imprint his stamp on the central bank after the early resignation of former Fed Governor Adriana Kugler. That allowed him to name White House aide Stephen Miran to the slot, at least temporarily. Another opening in the Board of Governors would pave the way for the president to install a second pick who's friendlier to his push for lower interest rates. Cook was nominated by former President Joe Biden and confirmed by the Senate in a May 2022 party-line vote. She is the first Black woman to serve on the Fed's Board of Governors, a 12-member group that takes frequent votes on monetary policy and helps regulate the financial sector. Her current term expires in 2038. Pulte's letter described mortgage documents it had obtained about Cook, alleging she had "falsified bank documents and property records to obtain more favorable loan terms." Over the course of a month in 2021, Cook obtained primary residence mortgages on two properties in Michigan and Georgia and declared both to be her main residence. She later listed the Georgia property for rent in 2022, which led Pulte to urge Bondi to investigate if Cook didn't disclose rental income as part of her Fed financial disclosures. Cook isn't alone in attracting scrutiny from the Trump administration over allegations of mortgage fraud. Prominent Democratic figures like Sen. Adam Schiff of California are in the same crosshairs as well. Sign in to access your portfolio
Yahoo
11 minutes ago
- Yahoo
Thousands of Grok chats are now searchable on Google
Hundreds of thousands of conversations that users had with Elon Musk's xAI chatbot Grok are easily accessible through Google Search, reports Forbes. Whenever a Grok user clicks the 'share' button on a conversation with the chatbot, it creates a unique URL that the user can use to share the conversation via email, text or on social media. According to Forbes, those URLs are being indexed by search engines like Google, Bing, and DuckDuckGo, which in turn lets anyone look up those conversations on the web. Users of Meta and OpenAI's chatbots were recently affected by a similar problem, and like those cases, the chats leaked by Grok give us a glimpse into users' less-than-respectable desires – questions about how to hack crypto wallets; dirty chats with an explicit AI persona; and asking for instructions on cooking meth. xAI's rules prohibit the use of its bot to 'promote critically harming human life' or developing 'bioweapons, chemical weapons, or weapons of mass destruction,' though that obviously hasn't stopped users from asking Grok for help with such things anyway. According to conversations made accessible by Google, Grok gave users instructions on making fentanyl, listed various suicide methods, handed out bomb construction tips, and even a detailed plan for the assassination of Elon Musk. xAI did not immediately respond to a request for comment. We've also asked when xAI began indexing Grok conversations. Late last month, ChatGPT users sounded the alarm that their chats were being indexed on Google, which OpenAI described as a 'short-lived experiment.' In a post Musk quote-tweeted with the words 'Grok ftw,' Grok explained that it had 'no such sharing feature' and 'prioritize[s] privacy.' Got a sensitive tip or confidential documents? We're reporting on the inner workings of the AI industry — from the companies shaping its future to the people impacted by their decisions. Reach out to Rebecca Bellan at and Maxwell Zeff at For secure communication, you can contact us via Signal at @rebeccabellan.491 and @mzeff.88.
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Why Target's new CEO won't have a honeymoon period: Opening Bid top takeaway
Complacent investors have been hit with a reality check on tech stocks this week. Momentum favorite Palantir (PLTR) getting drilled again today. Nvidia (NVDA) is seeing mixed action. Queue the tech stock correction chatter! "Investors worry the tech rally is due for a pullback/correction with the constant valuation arguments front and center," Wedbush analyst Dan Ives explained. "Adding to the agitation on the Street around the tech trade is a lot of moving parts around tariffs, chips into China, Intel/US Government stake, and what this all means for tech stocks looking ahead." Ives added, "We view tech sell-offs like yesterday as opportunities to own the core winners." That bullish thesis may be put further to the test in the coming sessions. Stock analysis: Tesla The Wall Street Journal reported today that billionaire Elon Musk is pulling back on his desire to create the America Party as he focuses on his many companies. That sent me snooping for some fresh analyst coverage on Tesla (TSLA). William Blair analyst Jed Dorsheimer apparently spent last week in Austin, Texas, riding around in Tesla's new robotaxis. He said the robotaxi offers "a glimpse into the future." He values the robotaxi business at $298 per share, based on its operating profit potential, and has a price target of $357 on the stock. Here is how Dorsheimer thinks through the valuation: "Our robotaxi model through 2040 assumes total rideshare miles of 1.1 trillion per year (one-third of total miles driven in the U.S. per year), with average price per mile reducing from $2.50 to $1.25, estimating a total addressable market (TAM) of $1.4 trillion. Tesla has the ability to leverage its lower cost structure and weaponize pricing — charging 50% less per mile, it can still achieve near 60% EBITDA margins. We expect Tesla to win 35% market share versus competitors Waymo at 15%, Uber (UBER) at 38%, and Lyft (LYFT) at 13%, generating almost $250 billion in revenue in 2040. After discounting the robotaxi EBITDA of $145 billion at 8.5% discount rate, we estimate an implied value of Tesla's robotaxi business at $298.61 per share, energy business at $30.73 per share, and auto business at $28.09 per share, totaling an implied fair value of $357.43 per share." Deep dive: Target Target (TGT) is tapping homegrown talent as its next CEO at one of the most pivotal moments in its 63-year history. The discounter announced that longtime CEO Brian Cornell's heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position for an undetermined period of time. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO. "I've had this conversation with the board for a number of years, and I've been in the role for 11 years. I'm going into my 12th now. I will actually turn 67 early next year, and I think it's time for me to step back, recharge, spend a lot more time with my family, a lot fewer nights in hotels, and be a great supporter of Michael and the team for the rest of my life," Cornell told me by video call while sitting next to Fiddelke at the company's Minneapolis headquarters. Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." Shares fell 7% in early trading after Target also reported a drop in earnings and sales. "The market had anticipated a CEO change, though we believe was hoping for an external CEO given the troubles Target has had driving sales and profits in recent yrs," Citi analyst Paul Lejuez said. But this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years. It has become quite apparent over the past year that he was grooming Fiddelke to take over while working to get board buy-in. I've gotten to know Fiddelke in recent years. Nice fella, and he has earned the opportunity to sit in the CEO seat. If this were any other time for Target, the decision would probably be celebrated. It's not often that an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader to head honcho. But Fiddelke will unlikely have a honeymoon period, as he's been at Target during its past 24 months of struggles, including the weak second quarter. People I've talked to wanted an outsider as Target's next CEO, with fresh eyes to fix its issues (not unlike when Cornell was hired in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked Fiddelke on the call how candid he plans to be in the early going on the strategy review. He sounded like he was ready to divert from Cornell's playbook and shake things up. He'll have to do just that, and quickly, to win over a likely skeptical Wall Street. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
