Bloomberg Businessweek

Tillamook Ice Cream – the fastest-growing family size ice cream brand in the United States – is now officially in production at the new Tillamook County Creamery Association (TCCA) manufacturing facility in Decatur, Ill. As TCCA’s first owned-and-operated manufacturing site outside of Oregon, the production facility opening marks a key milestone in the 116-year-old farmer-owned co-op’s national expansion.

Tillamook President and CEO David Booth discusses the company’s growing dairy business on the first day of operation for its new plant, as well as the impact of tariffs on profits.

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The Education Department said Columbia University no longer appeared to meet accreditation standards after concluding that the school is in violation of anti-discrimination laws, the latest effort by the Trump administration to target elite schools over their handling of pro-Palestinian protests.

Education Secretary Linda McMahon said in a statement that the school’s leadership “acted with deliberate indifference towards the harassment of Jewish students on its campus” after the Oct. 7 attack by Hamas on Israel. The Education Department said it had notified the Middle States Commission on Higher Education that the administration found that the school failed to meaningfully protect students during the protests, violating Title VI of the Civil Rights Act. The department also cited federal law which they said required accreditors to notify member institutions if they were in noncompliance and establish a plan to bring them back into compliance.

Any revocation of the school’s accreditation could have significant implications for students. Some 21% of Columbia College and Columbia Engineering undergraduates receive the Pell Grant, a type of federal aid for high-need students, according to figures on the university’s website. Removing access to federal student loans would also increase borrowing costs for many students financing their education, while federally-backed work-study programs could also be under threat.

McMahon has been in communication with university President Claire Shipman since the administration pulled some $400 million in federal grants and contracts from the school in March. Last month, Shipman announced that Columbia was cutting nearly 180 staff members after reductions to its federal funding.

President Donald Trump and McMahon have previously suggested that conversations with Columbia were headed in the right direction, especially compared to another Ivy-League institution, Harvard University, which has launched legal challenges against the administration’s decision to cancel its federal funding and revoke its license to admit international students.

The Department of Education does not have the authority to revoke a school’s accreditation, that authority lies with accrediting agencies like MSCHE. But the federal government can stop recognizing an accreditor as a reliable judge of the quality of higher education, which chokes off federal aid from an agency’s member schools.

Today's show features:

• Bloomberg News White House Reporter Akayla Gardner on the White House saying Columbia University no longer meets accreditation standards 
• Henrietta Treyz, Co-Founder and Director of Economic Policy at Veda Partners on key fiscal policy and trade issues facing the Trump administration and the GOP-led Congress
• Brent Schutte, Chief Investment Officer of Northwestern Mutual Wealth Management on the outlook for US monetary and fiscal policy changes
• Bloomberg News Senior Technology Reporter Dana Hull on the Big Take detailing Elon Musk’s push to bring robotaxis to Austin, Texas even as federal regulators investigate whether the system is safe
• Bloomberg Businessweek Editor Brad Stone on his Dan Gilbert feature story

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John Caplan, CEO of financial technology company Payoneer, discusses how a the health of the American consumer impacts the global digital payment industry. Payoneer sees the uncertainty surrounding global trade and tariffs posing a headwind to revenue, prompting the company to pull its outlook for the year when it reported earnings last month.

 The New York City-based fintech company specializes in facilitating cross-border payments and is one of the top performers in the space along with Paypal and Venmo.

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Wells Fargo & Co. finally escaped a Federal Reserve asset cap that has restricted its size for more than seven years, unleashing the firm from the unprecedented punishment in a major win for Chief Executive Officer Charlie Scharf. The bank’s shares surged.

The Fed said in a statement Tuesday that Wells Fargo met all conditions required by an enforcement action imposed on the bank in 2018 to remove the restriction. The central bank completed its review of Wells Fargo’s remediation efforts and third-party assessments, as well as its own assessment of the bank’s corporate governance and risk management programs, it said.
The hotly anticipated verdict closes the door on nearly a decade of scandals at the fourth-largest US lender and allows the bank to pursue growth again. Since the cap was imposed in February 2018, it became the most-feared punishment in banking and caused Wells Fargo to miss out on about $39 billion in profits by one measure.

The Fed said that other elements of the 2018 enforcement action will remain in place for now.
Today's show features:

• Bloomberg News US Finance Team Leader Sally Bakewell on Wells Fargo being released from a Federal Reserve asset cap that has restricted its size for over seven years
• Bloomberg Radio and Television Anchor Alix Steel on Meta's deal to buy nuclear power from Constellation Energy to help run its AI platforms
• Bloomberg News National Security Team Leader Nick Wadhams on President Donald Trump’s decision to attend the upcoming NATO summit and NATO’s push to boost European to air defenses
• Katy Kaminski, Chief Research Strategist of AlphaSimplex on key trends to watch in the equity and bond markets
• Eric Clark, Chief Investment Officer at Accuvest Global Advisors on consumer-focused ETFs and investing strategies

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President Donald Trump said he would name a new nominee for NASA administrator, just days before billionaire Jared Isaacman, the current pick and a close ally of Elon Musk, was to face his planned Senate confirmation vote.

It wasn’t immediately clear why Trump was dropping the nomination of Isaacman, who had already been approved by the Senate Commerce Committee. Trump posted on Truth Social that he made the decision after a “thorough review of prior associations.”

Bloomberg News Space Reporter Loren Grush details the fallout from Trump’s decision and discusses what comes next for the space agency.

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Ukraine’s drone strike deep inside Russian territory left Kremlin officials angry and alarmed over the sudden vulnerability of a nuclear-capable air fleet far from the battlefield, according to people close to senior officials in Moscow. 

Sunday’s dramatic attack on Russian long-range bombers in air fields in Siberia helped to disrupt an arsenal that Moscow deploys to hit Ukraine with some of its most powerful missiles. It also demonstrated Ukraine’s ability to hit key assets thousands of miles from the front lines, which the Russian military had thought were safe.

While nobody is predicting that Sunday’s dramatic attack will change the course of Vladimir Putin’s war, Ukrainian President Volodymyr Zelenskiy celebrated the “brilliant” covert operation. 
Planned over a year and a half and involving unmanned aerial vehicles popping out of trucks that had been driven across Russia’s vast expanse, it was the longest-range mission undertaken in the three-year war, he said. 

The damage inflicted on the warplanes is likely to rattle decision makers around Putin rather than shake up Moscow’s military aims. Only a few such bombers are needed for attacks on Ukraine, meaning that the pace of missile and bombing strikes won’t slow, according to people close to the Kremlin who spoke on condition of anonymity.

But the deep-penetration raid was a direct hit on air assets, including targets on Tu-160, Tu-95 and Tu-22 M3 bombers that have long been considered less vulnerable to attack than land and naval forces, which have suffered bigger losses. Russia’s Defense Ministry confirmed attacks at five military airbases across the country on Sunday. Russia acknowledged that several aircraft were damaged, compared with Kyiv’s claim that more than 40 planes were hit. A person close to the Kremlin put the tally at closer to 10. Pro-Moscow military blogger Rybar, which has about 1.3 million Telegram subscribers, estimated that 13 aircraft were affected, most of them long-range bombers.
Western officials continued to assess the aftermath of the raid. The destruction was “substantial,” with at least seven Tu-95s and four Tu-22s damaged or destroyed, according to one senior official. The strike, broadcast widely on Russian social media, was successful in lifting moral in Ukraine, a European diplomat said.

President Donald Trump’s administration was not notified ahead of the attack, a US official said.
Today's show features:

• Angela Stent, Senior Fellow at the Brookings Institution, on Ukraine’s drone strikes inside Russia and Monday’s talks between the warring nations
• Bloomberg Economic Chief Geoeconomics Analyst Jennifer Welch on new developments in the US-China trade war
• Alan Zafran, Co-Founder and Managing Partner IEQ Capital on markets and investing strategies
• Jeffrey Hirsch, President and Chief Executive Officer of Starz on his company’s recent earnings and separation from Lionsgate

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For two decades, YouTube has tried to convince advertisers that it’s the future of entertainment. 

The streaming giant has spent the past few years trying to make itself the centerpiece of the living room. The company teamed up with TV manufacturers so watching YouTube on a TV became as easy as watching it on your phone or laptop. People can now leave comments and subscribe to YouTube channels on a TV, and creators can arrange videos as though they’re episodes of a show.

Bloomberg News Managing Editor, Media & Entertainment Lucas Shaw details his Businessweek story on content creators making longer shows to meet viewers where they are.

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Featuring some of our favorite conversations of the week from our daily radio show "Bloomberg Businessweek Daily."
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Elon Musk said he will continue to advise President Donald Trump even after stepping away from the Department of Government Efficiency effort he has spearheaded.
“I expect to remain a friend and an adviser, and hopefully, if there’s anything the president wants me to do, I’m at the president’s service,” Musk said alongside Trump during a press conference Friday at the White House. “This is not the end of DOGE, but really the beginning.”

The comments indicate that the chief executive officer of Tesla Inc. and SpaceX plans to remain in the president’s orbit despite vows to pull back from Washington and prioritize his business empire. As the head of DOGE, Musk’s efforts to slash spending and cut government jobs have drawn pushback from federal workers and Democratic lawmakers as well as a consumer backlash to his business interests.
Musk’s divided attention has rattled investors and Wall Street analysts who underestimated the damage being done to Tesla’s brand around the world. As discontent grew over his focus, the billionaire vowed to pull back “significantly” from his government work to devote more time to Tesla as it nears the critical launch of robotaxi service.

Today's show features:

• Bloomberg Businessweek Senior Reporter Max Chafkin on Elon Musk’s departure from his White House role
• Monica Duffy Toft, Professor of International Politics at Tufts University’s Fletcher School of Law and Diplomacy, on geopolitical conflicts
• Tyler Rosenlicht, Portfolio Manager & Head of Natural Resource Equities at Cohen and Steers on alternative investment strategies

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Costco Wholesale Corp. posted better-than-expected earnings in the third quarter, a sign that the nation’s largest club chain is flexing its scale and devoted following to navigate tariffs and other forces of economic turbulence.

The retailer said it generated earnings per share of $4.28 for the quarter ended May 11, above what Wall Street analysts were expecting. The metric suggests that Costco is growing its business even as consumers prioritize necessities to save money.

Burt Flickinger, Managing Director of Strategic Resource Group, reacts to Costco's earnings other key players in the retail sector, including Walmart, The Gap and Ulta Beauty.

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