Meta Faces New Misconduct Allegations

TECH
Meta Faces New Misconduct Allegations

Meta is fighting to control the fallout from a new memoir by former employee Sarah Wynn-Williams, who alleges corporate misconduct at the tech giant. The company won an arbitration ruling barring her from promoting Careless People: A Cautionary Tale of Power, Greed, and Lost Idealism, citing a breach of a non-disparagement clause in her severance agreement.

Despite this, the book remains available online and has received positive media coverage. Wynn-Williams, who worked at Meta from 2011 to 2017, details alleged ethical lapses, including Mark Zuckerberg’s willingness to comply with Chinese censorship and sexual harassment claims against senior executives.

Meta spokesperson Andy Stone dismissed the book as “false and defamatory,” while publisher Macmillan stands by it, calling Meta’s legal actions an attempt to silence criticism. The controversy echoes past accusations against Meta, including whistleblower Frances Haugen’s claims about Facebook’s harm to users and a recent lawsuit alleging gender discrimination.

FINANCE
Trump’s Tariffs Push Allies Away

Former U.S. diplomat Wendy Cutler warns that President Trump’s tariffs could push U.S. allies toward closer ties with China and India. Amid escalating trade tensions, the EU is set to impose counter-tariffs on $28.3 billion worth of U.S. goods in response to American duties on steel and aluminum.

Cutler highlighted the EU’s growing partnerships, including a major trade deal with Mercosur and renewed negotiations with India. Meanwhile, China is strengthening its ties with ASEAN and other global markets, making it an attractive alternative for trade.

Trump’s unpredictable trade policies may further encourage multilateral agreements like the RCEP and CPTPP, which exclude the U.S. Analyst Stephen Olson suggests Trump intentionally keeps trade partners uncertain to maintain leverage. While allies won’t cut ties with the U.S. entirely, they may seek stability elsewhere. The White House has not commented on these concerns.

ECONOMY
U.S. Household Wealth Hits Record

U.S. household wealth hit a record high in Q4, reaching $169 trillion, driven by a historic stock market rally following President Trump’s election. Federal Reserve data showed a $164 billion increase in net worth, with equity holdings rising by $264 billion, though real estate values declined.

The market surge, fueled by expectations of pro-business policies, has since reversed, erasing $5 trillion in gains as concerns over Trump’s tariffs and recession risks grow. The downturn may impact upper-income consumers, who have driven spending growth.

Consumer borrowing rose at a 3.1% annualized pace, the fastest since mid-2023, with mortgage debt slowing but non-mortgage credit increasing. Business debt growth decelerated to 1%, the slowest in a year, while state and local government debt saw its biggest decline in two years.

Household deposits, including savings and money market funds, surged by $578 billion to a record $19.4 trillion, the highest jump since 2021.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.