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Bill Ackman has grown Pershing Square Capital Management to more than $16 billion from $54 million since he founded the fund nearly two decades ago. The 57-year-old activist investor speaks with On The Money about his return to office policy, his possible presidential picks and why hes still bullish on New York City.

Lydia: You are among the big names on Wall Street who didn’t move to Florida. Why?

Bill: The short answer is that I love New York City. My desire to be successful is founded on a desire to be independent. It always seemed crazy to me to sacrifice that independence to save money on taxes. If you make $100 million some people in finance make even more than that you can save $25 million of that by living somewhere cheaper.

Some people choose to manage their lives that way. I do think it’s incumbent upon New York City to make this a desirable place to live and we have to make it an attractive place to do business. If one super wealthy person leaves the city thats really bad for the revenue. I dont think it’s smart to push taxes higher I think that would actually generate less revenue.

Lydia: There have been some top players in finance like Ken Griffin who have made a show of moving to Miami and talking about how smart it is for their business. But do you think that trend will be reversed? Will we see a lot of headlines in the next year about people moving back?

Bill: I think it’s a great thing that [Citadel founder] Ken Griffin is building a major campus, if you will, in New York City on Park Avenue. I think thats an amazing thing for NYC whether it’s his primary office or not, and it speaks to the fact that a lot of the youngest, most talented people want to be here. My nephew graduated from Harvard and many of his classmates moved here even before they had a job. The city is still a big draw for young people and if this is where the talented, young people want to be, then the companies will have to have a major presence here.

Lydia: Given the younger generation wants flexibility, is it realistic to expect people to return to the office five days a week? On the flip side, can New York City flourish if you dont have people back in Midtown and back in office buildings?

Bill: Everyone wants more flexible work whether its a school play, a sports game you dont want to miss and we have technology that lets you do that. What weve done at Pershing Square is bring people back five days a week 10 months a year. Of course if theres something you need to do like a doctors appointment or working from home one day, use your best judgment. And then we give people July and August to work from anywhere with the caveat that if there’s something where we need to bring everyone together, you show up. Weve experimented with that for two years and thats worked well, people like the balance, and it works for our business.

Lydia: And you believe New York will still be a place where businesses want to operate? 

Bill: I think if NYC became an unsafe place the images you see of San Francisco where you have open air drug users lying on the street that would be very damaging and could be a tipping point for people leaving the city.

You have to manage the city and its population effectively. In San Francisco you have homeless people acting in a threatening and hostile way thats led to the emptying out and death spiral of San Francisco. Again you want to manage a city so that it is pro-business and pro-resident and you want to show care for people who are less fortunate, but that doesnt mean they can defecate on the street and threaten parents or kids.

Lydia: Is NYC poised to go into that kind of death spiral?

Bill: No, I dont think so. We have a mayor who has for obvious reasons respect for the police force and I think they respect him. I think thats really important. The whole defunding the police movement was not a good one. Bail reform went too far. If you believe the statistic, it’s several hundred people committing the vast majority of street crime and those people should be locked up.

Lydia: The new movie Dumb Money and the meme stock craze clearly a cautionary tale of a short bet gone wrong. What do you make of that film?

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Bill: We are among the most famous short sellers but thats because we shorted two stocks in the last twenty years. One short theres a movie about Herbalife [Betting on Zero] and the other short theres a book about MBIA [Confidence Game]. But we dont short stocks for precisely the reason you say. We gave up that business a long time ago because its too risky. Even when youre right you can lose a lot of money. Of course, short sellers can do amazing research.

Lydia: Youve publicly applauded the work Hindenburg has done on Carl Icahns firm. How are you thinking about Icahn now? Do you think the report captured whats going on at his firm?

Bill: What Hindenburg said has been proven out.

Lydia: Youve expressed support for a lot of different 2024 presidential candidates. Anyone else you plan to support? 

Bill: Id love Jamie Dimon to be president but hes made it clear hes not going to run. Id love for a candidate of his quality to run. I think Biden-Trump part II is not the best option for America. It would be great for us to be brought together by a more centrist candidate that members of both parties can vote for. 

Lydia: What about Vivek or RFK Jr. youve tweeted support for?

Bill: Id like to see multiple alternatives. Ive been supportive of Vivek because I know him and hes super smart and capable. I wish he was a more centrist candidate. Ive not yet met RFK but hopefully will have an opportunity to do so. But I still havent found my ideal candidate. Biden should step aside and that would create a flurry of alternative candidates. People are afraid to run against the president and I think theres some possibility of that happening.

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Why are abuse survivors losing faith in the grooming gang inquiry?

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Why are abuse survivors losing faith in the grooming gang inquiry?

The grooming gangs inquiry has been plunged into disarray this week before it has even started, as four survivors have quit the panel and two frontrunners for chairperson have withdrawn.

The inquiry was announced in June, but frustrations have grown over the pace of progress towards launching it, with pressure mounting on the government to appoint a chair and set out its terms of reference.

Survivors Fiona Goddard and Ellie-Ann Reynolds were first to stand down from their roles over concerns about who could head the inquiry and fears it may be “watered down” – something Sir Keir Starmer has denied, insisting that “injustice will have no place to hide”.

Both candidates shortlisted to lead the inquiry have now pulled out.

Here’s what we know about why panel members have quit and what the government has said in response.

Concerns over inquiry chairs

The resignations came after Sky News revealed the two shortlisted chairs for the inquiry were former police chief Jim Gamble and social worker Annie Hudson.

Jim Gamble and Annie Hudson emerged as the leading candidates
Image:
Jim Gamble and Annie Hudson emerged as the leading candidates

Ms Goddard was the first to resign from the survivors’ liaison panel, expressing deep reservations about the candidates: “One has a background in police and the other, a social worker. The very two services that contributed most to the cover-up of the national mass rape and trafficking of children.

“This is a disturbing conflict of interest, and I fear the lack of trust in services from years of failings and corruption will have a negative impact in survivor engagement with this inquiry.”

The other survivors who resigned also took issue with the shortlisted chairs in their statements.

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Fiona Goddard speaking to Sky News in June

Ms Hudson withdrew her candidacy on Tuesday, while Mr Gamble pulled out of the running on Wednesday.

In a letter to Home Secretary Shabana Mahmood explaining his decision, Mr Gamble said it was “clear that a lack of confidence due to my previous occupation exists among some” and that he did not want to proceed without a consensus among the victims.

A Home Office spokesperson said: “We are disappointed that candidates to chair that inquiry have withdrawn. This is an extremely sensitive topic, and we have to take the time to appoint the best person suitable for the role.”

Speaking to Sky News after Mr Gamble’s resignation, Ms Reynolds said: “The minute that we found out their former employment, it raised red flags.”

She claimed they represented “the very institutions that have failed us” and that their views would not have been “unbiased” or “impartial”.

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Survivor Ellie-Ann Reynolds speaks after Gamble withdraws

During Prime Minister’s Questions on Wednesday, Sir Keir said his government “will find the right person to chair the inquiry”, but did not mention names.

Ms Reynolds and other victims have called for a judge to chair the inquiry, but Sir Keir said he ruled that out because it would require all ongoing criminal proceedings to finish before the inquiry could begin, leading to lengthy delays.

“We’ve waited years for the truth,” Ms Reynolds said. “The timing really doesn’t matter. As long as we know that it’s going to be done properly and impartially… we would be able to wait to ensure that that’s done.”

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PM explains judge stance and defends Jess Phillips

The full statutory inquiry into how cases of child sexual exploitation have been handled across England and Wales was announced by Sir Keir after an audit by Baroness Louise Casey found children had been failed by the systems in place to protect them.

On Wednesday, Sir Keir said Baroness Casey would be working in support of the inquiry.

Claims about poor treatment of survivors

Ms Reynolds said survivors were “kept in the dark” and “treated with contempt and ignored” when they asked about Home Office meetings and decisions. She said it was made clear that “speaking openly would jeopardise our place on the panel”.

She told Sky News that victims were “gaslit” and “manipulated” during the process and they had “very little faith in authorities and systems”.

Similarly, Ms Goddard claimed a “toxic, fearful environment” had been created for survivors on the panel, with “condescending and controlling language” used towards them.

Safeguarding Minister Jess Phillips has said she “regrets” resignations from the inquiry and that it was “always sad when victims feel that they can’t take part in a process”.

Safeguarding minister Jess Phillips has faced calls to resign. Pic: PA
Image:
Safeguarding minister Jess Phillips has faced calls to resign. Pic: PA

On Wednesday, Sir Keir said: “I respect the views of all the survivors, and there are different views, I accept that.”

He added that the door was open for people to return to the inquiry panel if they wished.

Fears of ‘diluted’ inquiry

The survivors say they fear the inquiry could be diluted, suggesting the Home Office could broaden its scope beyond group-based sexual abuse and push for it to have a regional focus rather than being truly national.

Ms Goddard said the survivors had “repeatedly faced suggestions from officials to expand this inquiry” and that it risked being “watered down”.

Ms Reynolds said the “final turning point” in her decision to quit the panel was the “push to widen the remit of the National Inquiry in ways that downplay the racial and religious motivations behind our abuse”.

Ms Phillips said allegations that the inquiry is being diluted or intentionally delayed were “false” and that it would “remain laser-focused on grooming gangs”.

Read more from Sky News:
Phillips slams ‘idiot’ councils for not seeing grooming problem
Leading candidates to chair grooming gangs inquiry revealed

Ms Goddard claimed this amounted to the minister calling her “a liar” and said she should apologise and resign.

Ms Reynolds also said she believed Ms Phillips was “unfit for the role”.

During PMQs on Wednesday, Sir Keir defended the safeguarding minister, saying she and Baroness Casey were the “right people” to take the inquiry forward.

He insisted the inquiry “is not and will never be watered down” and that “its scope will not change”.

“It will examine the ethnicity and religion of the offenders, and we will find the right person to chair the inquiry,” he said.

‘They should start again’

The father of a grooming gang victim says the government “should start again” with the national inquiry.

Marlon West, whose daughter Scarlett was a victim of sexual exploitation in Manchester, told Sky News that public “faith” has been “lost”.

He described Ms Phillips in parliament this week as “unprofessional” and “defensive rather than listening to what survivors are saying.”

“I doubt she will resign but she has lost any kind of faith from the public, and more importantly with survivors and families.

He wants to see an inquiry with family members included alongside survivors on the panel.

“Not that I want to go on it, if I’m honest,” he said, “but it’s the families who are dealing with the services, not so much the survivors.

“It’s really important that they get family perspective. I think they should start again.”

Scarlett and her dad Marlon
Image:
Scarlett and her dad Marlon

Government denies ‘watered down’ approach

Home Secretary Shabana Mahmood responded to the resignations saying the scope of the inquiry “will not change” and that it will leave “no hiding place” for those involved in the scandal.

In an article for The Times, she vowed the probe “will never be watered down on my watch” – and said it will focus on how “some of the most vulnerable people in this country” were abused “at the hands of predatory monsters”.

The home secretary also insisted the inquiry will be “robust and rigorous” – with the power to compel witnesses, and examine the ethnicity and religion of the offenders.

Speaking to Times Radio on Wednesday, Ms Goddard said the Home Secretary’s statement was “reassuring” but reiterated that Ms Phillips should resign.

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Environment

Tesla relaunches Model S/X in Europe after a 3-month break

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Tesla relaunches Model S/X in Europe after a 3-month break

Tesla has relaunched Model S and Model X in Europe after a 3-month break in taking orders for its two flagship vehicles on the old continent.

In June, Tesla unveiled another minor refresh of the Model S and Model X.

Considering Tesla fumbled the rollout of the previous refresh in Europe, with significantly delayed deliveries, the automaker addressed the issue this time by stopping to take orders for the Model S and Model X in Europe starting in July.

Today, Tesla reopened orders for new Model S and Model X vehicles in European markets.

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In France, the Model S starts at 109,990 € while the Model X starts at 114,990 €.

Tesla is quoting a start of deliveries in November.

Here are Tesla’s listed changes to the Model S and Model X with this mild update:

  • Up to 744 km of range (Model S Long Range)
  • Even quieter inside
  • New wheel designs + exterior styling
  • Front fascia camera for better visibility
  • Dynamic ambient lighting all around the interior
  • Smoother ride thanks to new bushings & suspension design
  • Adaptive driving beams
  • More space for 3rd row occupants & cargo in Model X

While being Tesla’s flagship vehicles, the programs have been somewhat neglected over the last 5 years, and sales have been in a steady decline.

The automaker even stopped making the vehicles for RHD markets.

Electrek’s Take

Nice to see Tesla learning from its mistakes.

For those who don’t remember, the rollout of the previous refresh was terrible. Tesla took orders for almost a year, but it waited for almost another year to start deliveries due to problems ramping up production.

Now, it appears that deliveries in Europe will occur within 6 months of the refresh and within weeks of ordering for most people.

That said, the mid-cycle refresh has been considered mild and isn’t likely to have a significant impact on sales.

I wouldn’t expect more than a few thousand Model S/X sales in Europe per year.

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Technology

Airbnb CEO Chesky says ChatGPT isn’t ‘quite robust enough’ to integrate into travel app

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Airbnb CEO Chesky says ChatGPT isn't 'quite robust enough' to integrate into travel app

Airbnb CEO Brian Chesky on new product updates, integrating AI and state of AI tech race

Airbnb CEO Brian Chesky said he wants to integrate ChatGPT artificial intelligence capabilities into the travel platform but the software isn’t ready.

“The [software development kit] wasn’t quite robust enough for the things we want to do,” he told CNBC’s “Squawk Box” on Wednesday.

Chesky said the company would “probably” want to integrate ChatGPT eventually.

Airbnb on Tuesday launched a series of new social features, such as direct messaging, to its platform. The update also included a personalized version of the company’s chatbot launched earlier this year that can cancel and change reservations for users in North America.

In an interview with Bloomberg this week, Chesky said that the OpenAI chatbot isn’t “quite ready” for integration with Airbnb. He said the model was made using 13 different chatbots and that Airbnb is depending heavily on Alibaba’s Qwen model.

Chesky, who is a close friend of OpenAI CEO Sam Altman, said it’s only the beginning of the AI revolution and he expects the technology to fuel a consumer app craze over the next few years.

“We’re all going to have to work together,” he said. “AI is going to lift up a lot of companies. If they want to vertically integrate every single thing, that’s going to be very, very difficult.”

OpenAI did not immediately respond to a request for comment.

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