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By Tom Hals DOVER, Delaware (Reuters) -Elon Musk’s $56 billion pay package from Tesla should have been restored by a vote of the company’s shareholders last year, a Tesla attorney argued to the Delaware Supreme Court on Wednesday. One of the biggest corporate legal battles entered its final stage after a lower court judge rescinded the Tesla CEO's record compensation in January 2024. The company is also appealing a ruling by the lower court that rejected as legally invalid a vote by shareholders to restore the pay package.  “This was the most informed stockholder vote in Delaware history,” Jeffrey Wall, an attorney for Tesla, told the justices. “Reaffirming that would resolve this case.” The case's outcome could have substantial consequences for the state of Delaware, its widely used corporate law, and its Court of Chancery, a once-favored venue for business disputes that has recently been accused of hostility towards powerful entrepreneurs. The Court of Chancery ruling striking down Musk's pay has become a rallying cry for Delaware critics. Chancellor Kathaleen McCormick ruled that the Tesla board lacked independence from Musk when it approved the pay package in 2018 and that shareholders lacked key information when they voted overwhelmingly in favor of it. As a result, she applied a demanding legal standard and found the pay unfair to investors. Musk did not attend the arguments, which were held in a special court to accommodate the 65 people in attendance, mostly lawyers.  The defendants, current and former Tesla directors, denied wrongdoing and said McCormick misinterpreted the facts and the law.  COMPANIES SWITCH LEGAL HOMES Tesla argued in Dover, Delaware, that the five justices on Delaware's high court had three avenues to reverse the lower court ruling. They could find that Musk, who owned 21.9% of Tesla stock in 2018, did not control the board pay negotiations and that shareholders were fully informed when they voted to approve it that year. They could determine that rescinding the pay was an improper remedy because it did not undo the work that Musk had done or the gains that shareholders had received. Or they could determine last year's vote demonstrated that shareholders wanted to accept the pay deal, despite the legal flaws. "Shareholders in 2024 knew exactly what they were voting for," Wall said. After the Musk pay ruling, large companies, including Tesla, Dropbox, and the venture capital firm Andreessen Horowitz, switched their legal homes to Texas or Nevada, where courts are friendlier toward directors. Delaware lawmakers responded to the corporate departures, a trend known as "Dexit," by overhauling its corporate law.  If Musk loses the appeal, he will still reap tens of billions of dollars in stock from the electric vehicle company, which agreed in August to a replacement deal if his 2018 plan is not restored. Tesla has said the replacement plan will cost $25 billion or more in accounting charges.  The company said the replacement award was meant to retain and focus Musk, who said earlier this year he was forming a new U.S. political party, on transitioning Tesla to robotics and automated driving. Tesla is now incorporated in Texas, where it is far more difficult for a shareholder to challenge board decisions. TESLA PROPOSES NEW PAY PLAN Tesla's board last month proposed a $1 trillion compensation plan, highlighting confidence in Musk's ability to steer the company in a new direction, even as Tesla loses ground to Chinese rivals in key markets amid softening EV demand. The justices are considering the appeal of the pay ruling as well as the $345 million legal fee that McCormick ordered Tesla to pay to the attorneys for Richard Tornetta, who held just nine Tesla shares when he sued to block the pay deal. The court typically takes months to rule.  Tesla estimated in 2018 the stock options plan would be worth $56 billion if the company met operational and financial goals, which it did. Because the stock continued to appreciate, the options are currently worth closer to $120 billion, by far the largest executive compensation ever. Musk is the world's richest person with a fortune of around $480 billion, according to Forbes. The defendants have argued that McCormick erred in finding social and business ties to Musk compromised their independence and said Tesla shareholders were informed of the economic terms of the pay deal before they approved the plan. The directors said she should have reviewed the pay package under the "business judgment" standard, which protects directors from second-guessing by courts. The directors have long argued the pay package performed as hoped – it focused the attention of Musk, a serial entrepreneur, and he transformed Tesla from a startup into one of the world's most valuable companies. (Reporting by Tom Hals in Dover, Delaware;Editing by Noeleen Walder and Rod Nickel)

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By Stephen Culp NEW YORK (Reuters) -Wall Street headed higher and gold resumed its ascent on Wednesday as earnings season hit its stride and dovish comments from U.S. Federal Reserve Chair Jerome Powell helped investors look past trade tensions between the United States and China. All three major U.S. stock indexes gained ground in a broad rally driven by rate cut hopes and solid corporate earnings results, while crude prices rebounded and gold hit new heights as Washington and Beijing ramped up the rhetoric in their ongoing tariff dispute. President Donald Trump said he was considering cutting some trade ties with Beijing in response to China not buying U.S. soybeans. This followed China's ramped-up restrictions on crucial rare earth exports. U.S. Trade Representative Jamieson Greer described those restrictions as a complete repudiation of U.S.-Chinese trade agreements over the past six months, while Treasury Secretary Scott Bessent said he does not believe Beijing wants to be an "agent of chaos." EARNINGS OVERSHADOW TRADE TENSIONS "The escalation of trade tensions with China don't seem to be getting the market as worried as you might expect," said Thomas Martin, senior portfolio manager at GLOBALT in Atlanta. "And in the meantime, so far, earnings are coming in OK with the financial companies reporting." Upbeat third-quarter results from Morgan Stanley and Bank of America lifted investor sentiment. Those sentiments got a boost from Powell's commentary on Tuesday, which provided assurances that the U.S. economy is on firm footing, but warned that the labor market remained weak, seeming to affirm the market's near certainty that the central bank will cut interest rates at the conclusion of its October meeting. Powell’s comments had “no surprises,” Martin said. “We’re still going to have some rate cuts. I don't think (Powell’s remarks) were dovish or hawkish, but I think that by not being hawkish, they might be considered dovish." The Dow Jones Industrial Average rose 287.60 points, or 0.62%, to 46,556.15, the S&P 500 gained 65.66 points, or 0.99%, to 6,709.97 and the Nasdaq Composite rose 289.88 points, or 1.29%, to 22,811.34.  European stocks rose as upbeat results from France's LVMH sparked a rally in luxury goods, soothing worries that slowing global economic growth and ongoing tariff wars are dampening corporate health. MSCI's gauge of stocks across the globe  rose 11.21 points, or 1.15%, to 989.53. The pan-European STOXX 600 index rose 0.62%, while Europe's broad FTSEurofirst 300 index added 14.36 points, or 0.64%. Emerging market stocks  rose 26.58 points, or 1.99%, to 1,365.56. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 2.04%,  to 708.93, while Japan's Nikkei  rose 825.35 points, or 1.76%, to 47,672.67. The dollar slipped against its peers as Powell's comments boosted rate cut bets and a stronger risk appetite robbed the greenback of some of its luster. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.21% to 98.86, with the euro up 0.15% at $1.1622. Against the Japanese yen, the dollar weakened 0.32% to 151.32. U.S. Treasury yields softened as investors digested the latest development in the U.S.-China trade dispute. The yield on benchmark U.S. 10-year notes fell 1.3 basis points to 4.009%, from 4.022% late on Tuesday. The 30-year bond yield fell 2.6 basis points to 4.5977% from 4.624% late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 0.6 basis points to 3.485%, from 3.479% late on Tuesday. Oil prices advanced as investors weighed the International Energy Agency's projected 2025 supply surplus against the ongoing trade dispute between the world's two largest economies.  U.S. crude rose 0.26% to $58.84 a barrel and Brent rose to $62.45 per barrel, up 0.1% on the day. Gold extended its record run, breached the $4,200 per oz level for the first time as the safe haven metal continued to benefit from geopolitical tensions. Spot gold rose 1.3% to $4,195.50 an ounce. U.S. gold futures rose 1.48% to $4,200.00 an ounce. (Reporting by Stephen Culp; Additional by Tom Wilson in London and Rae Wee in SingaporeEditing by Rod Nickel)

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WASHINGTON (Reuters) -U.S. retail sales excluding motor vehicles and parts likely posted further gains in September, data from the Chicago Federal Reserve showed on Wednesday, though part of the rise probably reflected higher prices. The Chicago Fed Advance Retail Trade Summary estimated that retail sales excluding autos and parts increased by a seasonally adjusted 0.5% last month after advancing 0.7% in August.  CARTS is meant to offer an early read for the official monthly retail sales data, excluding automobiles, produced by the Commerce Department's Census Bureau. The comprehensive retail sales report, scheduled for release on Thursday, has been delayed by the government shutdown, now in its third week. When adjusted for inflation, retail sales excluding autos are projected to have risen only 0.2% last month after increasing 0.3% in August. CARTS' projections are broadly in line with most estimates from independent economists. Retail sales growth continues to be driven by higher-income households amid robust financial and real estate wealth gains. Their wage growth has remained solid. Economists say many middle-income consumers are being financially squeezed, though lower-income households are being impacted the most by labor market sluggishness, which is curbing wage growth. This income group has also borne the brunt of higher prices from tariffs on imports. "Consumers are increasingly fatigued by high price levels and navigating an economy that feels less favorable," said Will Auchincloss, Americas retail sector leader at EY-Parthenon. "We expect to see more intentional spending, with households prioritizing value and necessity over discretionary purchases." A Bank of America Institute survey showed spending by the lowest-income households grew 0.6% year-on-year in September. In contrast middle- and higher-income household spending increased 1.6% and 2.6%, respectively. "Middle- and higher-income households have stronger wage growth but higher-income spending is likely also benefiting from wealth effects," Bank of America Institute said. "The discretionary spending of the top 5% of households by income tends to widen compared to the middle-income cohort when the S&P 500 is rising." (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

WASHINGTON (Reuters) -U.S. retail sales excluding motor vehicles and parts likely posted further gains in September, data from the Chicago Federal Reserve showed on Wednesday, though part of the rise probably reflected higher prices. The Chicago Fed Advance Retail Trade Summary estimated that retail sales excluding autos and parts increased by a seasonally adjusted 0.5% last month after advancing 0.7% in August.  CARTS is meant to offer an early read for the official monthly retail sales data, excluding automobiles, produced by the Commerce Department's Census Bureau. The comprehensive retail sales report, scheduled for release on Thursday, has been delayed by the government shutdown, now in its third week. When adjusted for inflation, retail sales excluding autos are projected to have risen only 0.2% last month after increasing 0.3% in August. CARTS' projections are broadly in line with most estimates from independent economists. Retail sales growth continues to be driven by higher-income households amid robust financial and real estate wealth gains. Their wage growth has remained solid. Economists say many middle-income consumers are being financially squeezed, though lower-income households are being impacted the most by labor market sluggishness, which is curbing wage growth. This income group has also borne the brunt of higher prices from tariffs on imports. "Consumers are increasingly fatigued by high price levels and navigating an economy that feels less favorable," said Will Auchincloss, Americas retail sector leader at EY-Parthenon. "We expect to see more intentional spending, with households prioritizing value and necessity over discretionary purchases." A Bank of America Institute survey showed spending by the lowest-income households grew 0.6% year-on-year in September. In contrast middle- and higher-income household spending increased 1.6% and 2.6%, respectively. "Middle- and higher-income households have stronger wage growth but higher-income spending is likely also benefiting from wealth effects," Bank of America Institute said. "The discretionary spending of the top 5% of households by income tends to widen compared to the middle-income cohort when the S&P 500 is rising." (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Stellantis is recalling 298,439 vehicles in the U.S. due to a shifter cable defect that could disable the park function and allow the vehicle to roll away, the U.S. National Highway Traffic Safety Administration said on Wednesday. The shifter cable may detach from the transmission, preventing the vehicle from shifting into the park position, the NHTSA said. The recall covers certain 2013-2016 Dodge Dart vehicles, the auto safety regulator said, adding that a remedy is currently under development. Stellantis had to recall over 123,000 Jeep vehicles last month due to the risk posed by detached trim pieces. (Reporting by Ananya Palyekar and Nandan Mandayam in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)