Forbes Newsletters

Plus: Inside Gavin Newsom’s Multimillion-Dollar Business Empire

Forbes
Good morning,

As the Federal Reserve decides on interest rates this week, Americans’ views on the economy continue to sour.

Consumer sentiment fell to its lowest level since May in the University of Michigan’s latest survey, driven by concerns about stubbornly high prices. And there is reason for concern: Inflation spiked again in September, according to delayed Bureau of Labor Statistics figures released Friday, though the price increases came in under Wall Street estimates. Gas prices saw the largest monthly jump of all the items tracked by the BLS. 

Labor market data has been spotty, thanks to the ongoing government shutdown. As of their September meeting, Fed policymakers appeared to be split over the number of additional rate cuts to make this year.

Let’s get into the headlines,

Danielle Chemtob Staff Writer, Newsletters

Follow me on Forbes.com

Who are the richest people in the world today?
FIRST UP
More air traffic controllers are calling in sick, and at least 8,000 flights were delayed across the U.S. on Sunday due to staffing shortages amid the second-longest government shutdown in U.S. history. Like TSA officers at airport screening checkpoints who missed their first full paycheck Friday, air traffic controllers are working without pay during the shutdown, and are also set to miss a full paycheck tomorrow. 
  NOAH BERGER/ASSOCIATED PRESS
Daily Cover Story
Inside Gavin Newsom’s Multimillion-Dollar Business Empire
Read Article
A wealthy, imperious politician with ties to billionaires owns a hospitality empire. While serving in office, his family helps run the business empire he refused to divest. Conflict-of-interest allegations surrounding the properties just don’t seem to stick.

California Governor Gavin Newsom may be posting like President Donald Trump on social media, but clearly, the similarities don’t end there. The rumored presidential hopeful was a businessman before and while he ran for office, and built a brand of his own: PlumpJack Group, which he started with investors, including oil heir and billionaire Gordon Getty, a family friend. Today, PlumpJack is a power player in both Napa Valley’s wine industry and San Francisco’s social scene.

Named after the portly Shakespeare character Sir John Falstaff, PlumpJack began as a wine store in San Francisco in 1992. Newsom and his partners have since expanded it to encompass multiple wineries, restaurants, bars, stores and a hotel. Not every venture has panned out, but some have been enormously successful. The wineries alone, Forbes estimates, are worth over $400 million, so even a minority stake could be worth tens of millions of dollars to Newsom.

His exact share of each business is unclear, thanks to the vagueness of California’s financial disclosure forms. But with Newsom rumored to be gearing up for a White House bid, Forbes combed through his state financial disclosures, real estate records and PlumpJack’s websites to assemble a picture of his holdings. 

WHY IT MATTERS
“Politics is an expensive game these days—meaning that the wealthy, either through donations or through running for office themselves, have an outsized say,” says Forbes reporter Kyle Khan-Mullins. “No candidate is being talked about more as a potential 2028 Democratic Trump alternative than Gavin Newsom, who has a long business career himself. Examining his holdings is challenging, but this head start before a possible presidential run will help set the stage for more scrutiny down the line.”
MORE
BUSINESS + FINANCE
A firm that tied its fortune to a Trump-connected crypto venture suspended its CEO without pay, a new filing with the SEC shows, as it has seen its stock nosedive. Alt5 Sigma announced in August it would raise $1.5 billion and build a treasury of $WLFI tokens from World Liberty Financial, a crypto venture cofounded by President Donald Trump and his three sons.

The Social Security Administration said it would boost benefits by 2.8% for all Social Security recipients in its 2026 cost-of-living adjustment, as inflation remains elevated. While that translates to an additional $56 in the average monthly check, a yet-to-be-announced rise in Medicare Part B premiums could eat into those gains.

MONEY + POLITICS
Billionaire political mega donor Timothy Mellon gave $130 million to help pay military members during the government shutdown, the New York Times reported. President Donald Trump first revealed Thursday that a “friend” provided the donation, but said the person wanted to remain anonymous. Mellon spent more than $165 million in the 2024 election cycle supporting Republicans, including a $25 million donation to Trump.

As the Trump Administration has restricted immigration, the Department of Homeland Security announced it will collect photographs and other biometric information from non-citizens entering and exiting the U.S. DHS said the move will help strengthen national security measures. Around 1 million people enter the U.S. daily, per U.S. Customs and Border Protection.

WORLD
Argentinian President Javier Milei saw his party score a major electoral victory Sunday, which President Donald Trump appeared to take credit for. The Trump Administration extended a $40 billion lifeline to support the country’s struggling economy, but Trump had warned the assistance was contingent on Milei’s right-wing libertarian party winning its midterms.
TRAVEL + LIFESTYLE
In the nine years since its founding, best-selling earplug brand Loop has found a niche in the market for affordable but stylish earplugs, with collaborations including Coachella and McLaren. Loop brought in around $220 million in revenue last year, and recently expanded to brick-and-mortar retail, launching in hundreds of Target stores this month.
FACTS + COMMENTS
A Puerto Rican beachfront property in an exclusive Ritz-Carlton complex could break the island’s record for the most expensive home if it fetches close to its asking price. Puerto Rico has been attracting wealthy homebuyers since the pandemic:

$65 million

The asking price for the Dorado Beach mansion

 

Nearly 17,000 square feet

The size of the property, which includes eight bedrooms and 11 bathrooms

 

2020

The year that a tax law favoring homeowners on the island known as Act 60 was passed

STRATEGY + SUCCESS
If you’re feeling disengaged at work, it could be a sign that you need to reconnect with your purpose and strengths. Start by reflecting on your day-to-day tasks, and figure out which moments drain you and which bring you joy. Before considering jumping ship to another company, see if there are opportunities to move to a different project or team that better aligns with your values.
VIDEO
GAMES
QUIZ
In a bizarrely catchy trend dominating TikTok, users are lip-syncing to a mashup of songs by rapper Nikki Minaj and which popular ’90s band?
A.Blind Melon
B.Spin Doctors
C.Gin Blossoms
D.4 Non Blondes
Check Your Answer
FRASE BY FORBES
Unscramble today’s anagram to solve this hidden phrase!

Stumped? Scroll to the bottom of today’s newsletter for a hint.