Also: Tesla CFO exits, Apple's sweetheart deal, BioNTech's losses.
Good morning.
Is attacking “woke CEOs” a winning political tactic? Two Republican contenders for the U.S. presidency—Ron DeSantis and Vivek Ramaswamy—clearly think so. But early evidence suggests they may be miscalculating. Both candidates have toned done their anti-corporate rhetoric of late. And a recent New York Times poll found Republicans favored a “law and order candidate” over a “candidate who focuses on ‘woke’ ideology” by margins of two to one.
In a recent interview with Margaret Hoover on the PBS show “Firing Line,” Ramaswamy launched into his trademark attack on “stakeholder capitalism” as a “perversion of how a democratic society is supposed to work.” Companies pushing measures to address climate change and racial justice, he said, “blur the boundary between our civic space and our space as capitalists. We don’t want capitalism and democracy sharing the same bed. We need a clean divorce.”
That certainly fits classical economic history. But as many polls have shown, Americans trust CEOs more than they trust politicians—or, at least, distrust them less. The argument that CEOs should leave tough issues like climate change and racial justice to government—which Ramaswamy and others deride as being overtaken by the “deep state”—is hardly likely to excite GOP voters. That’s why, I suspect, attacks on CEOs are subsiding… and why CEOs are lying low until they do.
More news below. And read how even Zoom now is trying to get workers back to the office, while workers in the U.S. continue to resist.
Alan Murray
@alansmurray
alan.murray@fortune.com
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Tesla’s CFO steps down
Tesla CFO Zach Kirkhorn is stepping down from the role, effective immediately, the EV manufacturer announced Monday. Tesla’s market value shot up from $50 billion to $773 billion since Kirkhorn took the role in 2019. “This is a big surprise to the Street,” Wedbush analyst Dan Ives says, but he expects to see Kirkhorn as a “CEO somewhere else in 2024.” Fortune
Apple chips
iPhone manufacturer Apple is getting a year’s head start on the world’s most advanced chips thanks to a cushy deal with Taiwan Semiconductor Manufacturing Company. The chipmaker also doesn’t charge Apple for faulty products, a perk it does not extend to other customers. TSMC benefits too: Apple’s early orders help fund the chipmaker’s costly research and development. The Information
BioNTech loss
BioNTech, manufacturer of the world’s first approved mRNA vaccine, is cutting its drug development budget as demand for COVID shots plunges. The biotech company reported a $208 million net loss last quarter, down from a $1.8 billion profit this time last year. BioNTech’s partner Pfizer is also getting hit by the post-pandemic slump in demand, reporting a 77% decline in quarterly net income to $2.3 billion last week. Reuters
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Back-to-school spending in the face of inflation Consumers are reassessing their spending and pulling back on nonessentials like tech and apparel, according to Deloitte’s 16th annual back-to-school survey. However, nearly six in 10 parents say they would be willing to splurge for the right reasons. How might this impact retailers? Explore insights here.
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