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National Guard Ruling, Kraft Heinz, and Private Pilots

Kraft Heinz to split into two companies, undoing multibillion-dollar megamerger. Find this story and more in today's digest.

 

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Good morning. It's Wednesday, Sept. 3, and we're covering a court decision on federal troops in Los Angeles, the reversal of a food megamerger, and much more. First time reading? Join over 4.5 million intellectually curious readers. Sign up here.

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 Need To Know 

 

National Guard Ruling

A federal judge ruled yesterday that the Trump administration illegally deployed 4,000 National Guard troops and 700 Marines to Los Angeles during June protests against immigration raids. 

 

The San Francisco-based judge said the move violated the Posse Comitatus Act, which bars the use of federal troops for domestic law enforcement except in limited cases, such as an insurrection. The Justice Department, which is expected to appeal, argued the troops were needed to quell unrest and protect federal immigration agents. The 300 National Guard troops still stationed in Los Angeles may remain following yesterday’s decision, but their duties are essentially restricted to guarding federal property. 

 

The ruling applies only to California, not the more than 2,000 National Guard troops Trump deployed to address crime in Washington, DC. He confirmed plans yesterday to send troops to Chicago and Baltimore, but did not specify a timeline.

 

Ketchup Conglomerate Splits

Kraft Heinz announced yesterday that it is splitting into two companies. The move ends a decadelong merger spearheaded by investment company Berkshire Hathaway and Brazilian private equity firm 3G Capital. Shares closed down nearly 7% on the news. 

 

When Kraft and Heinz merged in 2015, their $46B deal was the most expensive in the food industry at the time. Since then, health-conscious American consumers have trended away from processed foods, while budget-conscious consumers have turned to store-brand alternatives. Kraft Heinz’s challenges follow a broader trend of packaged food conglomerates struggling to retain their clientele, with Keurig Dr Pepper and Kellogg’s similarly dividing their businesses.

 

Kraft Heinz plans to finalize its split next year. One company will focus on sauces and shelf-stable meals, while a second will prioritize North American staples like Oscar Mayer and Kraft Singles. Berkshire Hathaway remains Kraft Heinz's single largest investor, owning a 27.5% stake. See its other top holdings here.

 

American Vogue Succession

Anna Wintour has named 39-year-old Chloe Malle as top editor at American Vogue, marking the first new leader at one of fashion’s most influential publications in 37 years. The announcement comes roughly two months after 75-year-old Wintour stepped down as editor-in-chief. 

 

Malle is the daughter of actress Candice Bergen and filmmaker Louis Malle. She will manage the day-to-day US operations as head of editorial content, while Wintour oversees global operations at Vogue and serves as chief content officer at Condé Nast. Malle has been with American Vogue for 14 years; she currently leads Vogue.com and cohosts "The Run-Through" podcast. She is credited with doubling Vogue.com's traffic within two years and expanding digital coverage of high-profile events like the Met Gala and Vogue World.

 

Malle's family background has also drawn public attention, particularly her mother's on-screen role as a Vogue editor in the hit series "Sex and the City." 

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 In The Know 

 

Sports, Entertainment, & Culture

> French actor Gérard Depardieu to face criminal trial over alleged rape accusations from an actress in 2018; Depardieu was found guilty in May of sexually assaulting two women in a separate case (More

> George Raveling, basketball Hall of Fame coach and longtime Nike exec, dies of cancer at age 88 (More) | Ohio State tops college football AP poll after Week One, with Penn State and LSU rounding out the top three (More)

> "Call of Duty" live-action film adaptation in the works at Paramount; the video game franchise has sold 500 million copies worldwide and brought in over $30B in revenue (More

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Science & Technology

> Cancer study reveals how pilocytic astrocytoma tumors, the most common form of childhood brain cancer, use a molecule called glutamate to grow (More

> Engineers develop rubber band capable of generating electricity from body heat; could provide passive power for health monitoring, smartwatches, and more (More

> Brain-computer interface allows paralyzed patient to control robotic arm via thought; device uses AI to decipher and transmit brain signals (More

 

Business & Markets

> Federal judge rules Google can keep Chrome browser but cannot forge exclusive contracts and must share search data with rivals to rectify the company's monopoly on search; parent company Alphabet's shares rose in after-hours trading (More)

> US stock markets close down (S&P 500 -0.7%, Dow -0.6%, Nasdaq -0.8%) as President Donald Trump seeks expedited Supreme Court hearing on last week's lower court ruling that found most of his administration's tariffs illegal (More

> Anthropic closes $13B funding round at a $183B valuation, roughly triple what the AI startup was worth during its last raise in March (More

What is Y Combinator? Tomorrow's 1440 Business & Finance newsletter explores the impact of the world's most famous startup accelerator. Subscribe here for free! 

 

Politics & World Affairs

> President Donald Trump announces move of Space Command headquarters from Colorado to Alabama, following 2021 Air Force recommendation; decision is expected to bring $1B annually to Huntsville, Alabama's local economy (More)

> House Oversight Committee publicly posts Justice Department files on Jeffrey Epstein and Ghislaine Maxwell, mostly containing information already publicly known (More) | US strikes suspected drug-carrying vessel in the Caribbean, killing at least 11 people allegedly tied to Venezuela's Tren de Aragua gang (More

> Second earthquake hits Afghanistan yesterday as death toll from Sunday's quake exceeds 1,400 people (More) | Israeli army begins ground operation in Gaza City after approving plans last month (More)

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 Etcetera 

 

Private aviators are increasingly flying in restricted airspace.

 

Why some say you can't wear white after Labor Day.

 

The time engineers turned off Niagara Falls. (via YouTube)

 

"Magic phrases" that make kids listen to their parents.

 

World's highest bridge to offer bungee jumping.

 

Ranking US colleges by the best dorm rooms.

 

Never-before-seen photos of Projects Mercury and Gemini

 

"Toy Story" is coming back to theaters.

 

Clickbait: Starbucks is betting on protein-packed coffee.

 

Historybook: Treaty of Paris signed, ending American Revolutionary War (1783); Pulitzer Prize-winning journalist Marguerite Higgins born (1920); Author Malcolm Gladwell born (1963); Football coaching legend Vince Lombardi dies (1970).

"It's those who lie outside ordinary experience who have the most to teach us."

- Malcolm Gladwell

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