Businessweek Daily
Plus a new episode of Elon, Inc.
View in browser
Bloomberg

Jury selection is expected to wrap up today in the federal trial of Sean “Diddy” Combs, allowing opening statements to begin next week. Devin Leonard, who’s written about the downfall of his business empire for Businessweek, talks today about why he was able to rise so far despite the signs of trouble around him. Plus: A new episode of the Elon, Inc. podcast, plus a story from India about its cyclone risk. If this email was forwarded to you, click here to sign up.

Sean Combs appeared in federal court in Manhattan on Monday for the start of his sex-trafficking trial. His hair and goatee had turned an avuncular gray during his months behind bars. He was wearing a tasteful navy blue sweater for the occasion and sounded uncharacteristically shy when he requested permission for a bathroom break. As numerous articles leading up to jury selection pointed out, he’d fallen a long way from his seemingly untouchable days as the founder of Bad Boy Entertainment.

Invariably, these reports noted that, along with platinum records, movie roles, award show appearances and magazine photo shoots, Combs’ path was strewn with violence: the death of nine at an event he promoted in 1991 at the City College of New York; the assault of a rival record company executive before the decade’s end, for which he was required to take an anger management course; and his indictment soon after that for allegedly bribing his driver to conceal his gun following a shooting in a Manhattan night club (Combs was acquitted at trial); and so on.

The question that went unanswered was, with so many signs of trouble, how did Combs get away with running a sex-trafficking operation for two decades, as prosecutors have alleged in his current case? Was it his deft manipulation of the entertainment press? Perhaps. Or his ability to frighten his alleged sex abuse victims into silence? Plenty of them have said so in lawsuits filed against him before and after his September arrest. (Combs maintains his innocence.)

Surely there was something else that made people overlook Combs’ unsavory side. He was one of the primary figures, along with Russell Simmons and Jay-Z, who convinced corporate America in the 1990s that rap was an investable commodity. Bill Clinton was in the White House, the stock market was booming, and—thanks in no small part to Combs’ ability to cater to the mass market—hip-hop, once an underground phenomenon, had become mainstream.

Melania and Donald Trump with Combs, Kimora Lee Simmons, Russell Simmons and Andre Harrell at Mar-a-Lago in March 2005 for Russell Simmons’ Art For Life Palm Beach event honoring Combs. Photographer: Johnny Nunez/WireImage

Combs himself embodied this transformation. Executives who might’ve blanched at shaking hands with someone like, say, the Wu-Tang Clan’s Ol’ Dirty Bastard could identify with Combs’ ascension from hustling record company intern to label boss to Grammy award-winning artist. (Never mind that Combs was a mediocre rapper and didn’t write his own lyrics.) And the man who called himself Puffy (and later Diddy) was certainly more business-friendly than many of the rap luminaries of the previous decade, like the Black nationalist members of Public Enemy or the cop-bashing MCs in N.W.A.

Those artists saw hip-hop as a vehicle to raise consciousness. Combs used it as a currency to enrich both himself and his corporate sponsors, whether it was producing Making the Band for MTV, selling fast food for Burger King, peddling designer clothes for Macy’s or shilling vodka for Diageo. Presumably, they all did their background checks. Then again, infamy often strolls hand in hand with celebrity. Combs’ brushes with the law didn’t seem to dissuade the likes of Martha Stewart and Donald Trump from attending his White Parties in the Hamptons. Nor did it prevent investor Ron Burkle or Bridgewater founder Ray Dalio from befriending him.

It was Combs’ reputation as a businessman that kept him in the public eye and financially flush after his musical career waned. He could present himself as an inspirational figure, with a message of self-empowerment. Yet when Cassie Ventura came forward in November 2023 with a lawsuit alleging that he repeatedly sexually assaulted her, everything started to unravel. Perhaps it’s too soon for the subdued man who appeared in federal court on Monday to express remorse. But some of the business people who gave Combs the benefit of the doubt might want to consider it.

In Brief

  • President Xi Jinping’s government provided a jolt to China’s economy ahead of landmark trade talks with the US.
  • India conducted military strikes against Pakistan, hitting nine targets, in response to a militant attack in Kashmir that killed 26 people.
  • Roman Catholic cardinals from around the globe have gathered in the Sistine Chapel to choose a new pope to lead the church’s 1.4 billion faithful.

DOGE Takes Its Time Getting to the SEC

Photo Illustration by 731; Photos: Getty Images (3), NASA (1)

It’s no secret that Elon Musk isn’t a big fan of the US Securities and Exchange Commission. He and his companies have been the subject of a plethora of investigations and regulatory scrutiny over the years (who can forget the infamous words “funding secured”?), and there’s currently a probe of Musk’s acquisition of Twitter shares. But only recently have Musk’s minions begun to ramp up their efforts to shrink the SEC. And while the “Department of Government Efficiency” has hugely missed the mark in terms of how much Musk claimed it would cut, hobbling the SEC could have profound consequences for Musk’s own fortune. On this week’s episode of Elon, Inc., host David Papadopoulos is joined by Bloomberg Businessweek senior writer Max Chafkin, Bloomberg Elon Musk reporter Dana Hull and SEC reporter Nicola M. White to discuss Musk’s run-ins with the agency and what we can possibly expect from DOGE’s doings.

Listen and subscribe to the podcast on Apple, Spotify, iHeart and the Bloomberg Terminal.

Mumbai Is Unprepared for Growing Storm Risk

Selling sunglasses at the Bandstand. Photographer: Deepti Asthana for Bloomberg Businessweek

The Bandstand Promenade along Mumbai’s waterfront offers a rare respite from the chaos and cacophony that plague the city of more than 20 million. People of all classes and castes stroll, enjoy street food and take selfies, and after sunset nearby clubs pump out high-octane hits into the wee hours. Across the two-lane road that lines the stone walkway, sumptuous homes of billionaire potentates and Bollywood princes hide behind gates and gardens.

Extreme weather threatens it all. Cyclones, South Asia’s equivalent of hurricanes, have long been a problem on India’s east coast, from Kolkata down to Chennai, but the other side of the country was largely spared. Global warming, though, has made them more common in the Arabian Sea along the west coast. In the 19th and 20th centuries, only five cyclones threatened or hit Mumbai, according to the most reliable records. In the past five years alone, two such storms have come perilously close to the city, with 2021’s Tauktae extensively damaging an oil rig just offshore.

While the frequency and magnitude of cyclones remain lower than in the east, Mumbai is at greater risk, because it’s done little to prepare for them. Millions of residents live in slums that can rapidly turn into rivers of mud in the annual monsoons that regularly drench the city. And while wealthier areas are better protected, Mumbai is a global finance hub, has vast petrochemical and manufacturing plants, and is home to the massive Bollywood film industry, all of which could be severely disrupted by a strong storm.

Mumbai is in the middle of an infrastructure build-out, yet critics say the plan pays little heed to the changing climate. Lou Del Bello has the detailsThe Home of Bollywood and India’s Big Banks Faces Growing Cyclone Risk

Price of Pardon Requests

$1 million
That’s how much some lawyers are charging to put pardon cases together and get them in front of the White House. In his second term, President Trump has overseen a breakdown in the traditional vetting process for deciding who gets relief and supercharged a pardon economy unlike anything seen before.

Less Shopping, More Skydiving

 “Luxury bags lose value. I feel like I need to enjoy life.”
Vinsa Hu
A 37-year-old modeling agent
Chinese travelers who once splurged on shopping trips abroad are now choosing more experiential travel, like Hu’s recent visit New Zealand where she went hiking, rabbit hunting and deep-sea fishing.

More From Bloomberg

Like Businessweek Daily? Check out these newsletters:

  • Markets Daily has what’s happening in stocks, bonds, currencies and commodities right now
  • Supply Lines follows the trade wars, tariff threats and logistics shocks that are upending business and spreading volatility
  • FOIA Files goes behind the scenes with Jason Leopold to uncover documents that have never been seen before
  • Working Capital analyzes trends in leadership, management and the art of career building
  • Bloomberg Pursuits is your weekly guide to the best in travel, eating, drinking, fashion, driving and living well

Explore all Bloomberg newsletters.

Follow Us

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Businessweek Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices