US Shutdown Begins, Spotify Reshuffles Leadership, CoreWeave Lands $14B Meta Deal, and London Falls Behind in IPO Race

1st October 2025

The U.S. government has shut down after President Trump and Congress failed to reach a funding deal, leaving hundreds of thousands of federal workers unpaid while essential services continue. This marks the first shutdown since 2018, with no resolution in sight. Spotify founder Daniel Ek will step down as CEO in January, moving into a new role as executive chairman. The company will shift to a co-CEO model as it works to stay ahead of rivals and address profitability challenges. AI cloud startup CoreWeave secured a $14.2 billion deal with Meta to supply Nvidia chips through 2031, underscoring the soaring costs of advanced AI infrastructure. Meanwhile, London has slipped out of the world’s top 20 IPO markets for the first time in decades, overtaken by Singapore and Mexico as undervalued UK firms are snapped up by private equity buyers. All this in today’s Read It and Eat! 

Major News 

• U.S. Government Shuts Down as Trump and Congress Fail to Strike Deal

The U.S. government officially shut down at midnight after President Donald Trump and Congress failed to agree on a funding bill. Despite Republicans holding both chambers, they still needed Democratic support in the Senate and with neither party willing to budge, efforts collapsed just hours before the deadline.

This marks the first shutdown since 2018, which stretched into a record 34 days during Trump’s first term. With no resolution in sight, the standoff is leaving hundreds of thousands of federal workers either furloughed or working without pay, while lawmakers and the president continue to collect their salaries. Essential services like TSA screenings, military operations, and law enforcement remain active, though without compensation until funding is restored.

At the heart of the fight are disagreements over health care funding and Trump’s authority to withhold congressional spending. Republicans are pushing for a “clean” short-term bill to keep the government running, while Democrats are demanding provisions to protect Obamacare subsidies and other priorities. Both sides are betting that public opinion will swing against the other a gamble made riskier by polling that shows voters divided over who deserves the blame.

The shutdown is already marked by sharp political theater. A White House meeting between Trump and Democratic leaders ended without progress and was quickly followed by partisan jabs, including Trump’s controversial use of an AI-generated video mocking his opponents. With talks stalled and each side digging in, the duration of the shutdown remains uncertain. Some lawmakers predict it could stretch into next week or longer, depending on when or if either party is willing to compromise. CNBC 

• Spotify Founder Daniel Ek to Step Down as CEO, Take on Executive Chairman Role

Spotify founder and longtime CEO Daniel Ek is stepping aside from the top job in January, transitioning into a newly defined role as executive chairman. The move comes as the streaming giant adopts a co-CEO structure to sharpen its strategy, fend off intensifying competition, and improve profit margins.

Ek, who grew Spotify from a 2006 startup into the world’s leading music streaming platform, will no longer be involved in daily operations but says he’ll stay closely engaged with the company’s long-term direction. “Think of it like moving from a player to a coach,” Ek explained, noting he’ll focus on capital allocation and strategic vision rather than product or business execution. Spotify’s U.S.-listed shares dipped about 5% on the news, though they remain up more than 60% this year.

The company’s new leadership will be split between Gustav Soderstrom, Spotify’s chief product and technology officer, and Alex Norstrom, its chief business officer.

Together, the pair will oversee everything from product development and global tech strategy to music, podcast, and audiobook operations. Ek, who has worked with both leaders for over a decade, will remain involved as a board member and strategic guide.

Spotify still dominates the global music market with nearly 700 million monthly active users far ahead of Apple Music and Amazon Music but profitability remains a challenge as artist payout demands grow and ad-supported listening expands.

Analysts say the co-CEO model could help Spotify adapt to its increasingly complex, global operations, though some remain skeptical about whether “too many cooks” could create leadership friction. For Ek, however, the move represents a shift from day-to-day management toward shaping the future of the business he built into a cultural and tech powerhouse. Yahoo.Finance 

• AI Cloud Startup CoreWeave Secures $14B Deal with Meta

CoreWeave has secured a landmark deal with Meta Platforms worth up to $14.2 billion, reflecting the enormous costs tied to building and running advanced AI systems. As part of the agreement, CoreWeave will supply Meta with Nvidia’s latest GB300 chips, giving the social media giant the computing muscle it needs to stay competitive. The deal runs through 2031, with an option to extend into 2032. Shares of CoreWeave jumped nearly 16% after the news, while Meta’s stock dipped about 2%.

The partnership signals a big step for CoreWeave, which has quickly risen as a leader among “neocloud” providers companies renting out high-end AI infrastructure. Since its IPO in March, CoreWeave’s stock has more than tripled, fueled by demand from tech companies racing to train ever more complex AI models. CEO Michael Intrator noted the agreement also reduces the company’s reliance on Microsoft, which accounted for 71% of revenue in the most recent quarter. “This is clearly a step in the right direction for diversification,” he said.

Meta, meanwhile, has become one of the biggest spenders in the AI arms race. CEO Mark Zuckerberg has committed billions to expand data centers, energy resources, and talent, with capital expenditures projected to reach as much as $72 billion this year. That spending underscores Meta’s determination to secure the infrastructure needed to compete with rivals like OpenAI, Google, and Anthropic.

Like many of its peers, CoreWeave is leaning heavily on debt financing to fund its capital-intensive expansion. Intrator confirmed the company plans to continue tapping the debt markets as demand grows. The approach mirrors moves by larger players, with Meta raising $29 billion to build a massive Louisiana data center and Oracle recently issuing $18 billion in bonds to support its AI infrastructure push. Yahoo.Finance 

• Singapore Leapfrogs London as UK IPO Market Stumbles

London’s reputation as a global financial powerhouse has taken another hit. The city has slipped out of the world’s top 20 IPO markets, overtaken by Singapore and Mexico, according to Bloomberg data. London now sits at 23rd place even behind Oman after deal volumes plunged 69% this year to just $248 million, the weakest showing in more than three decades. By contrast, Singapore jumped into ninth place with $1.44 billion raised, largely on the back of property trust listings.

The UK’s struggles are stark compared to its past dominance. In 2006, London raised $51 billion from IPOs; this year’s total is down 99% from that peak. Even as recently as 2013, the city accounted for more than half of Europe’s IPO fundraising. Today, it represents just 3%. Lower valuations are partly to blame companies fear going public at a discount, while private equity buyers are swooping in to take undervalued firms off the market. Heavyweights like KKR, Bain Capital, and Blackstone have all been active this year.

Other markets are stepping up as London falters. Amsterdam has attracted major listings, including Unilever’s spinoff of Magnum ice cream, while Stockholm beat London to host alarm company Verisure’s blockbuster IPO. Meanwhile, UK-listed firms continue to dwindle, raising concerns about the knock-on effects for jobs, tax revenue, and investment talent. As Cleo AI’s Barney Hussey-Yeo put it bluntly: “The London Stock Exchange is not fit for purpose.”

Regulators and exchange leaders are trying to fight back with reforms loosening rules on dual-class shares, broadening index eligibility, and creating new venues for private share trading. And while a few upcoming deals, like Beauty Tech Group’s listing and Loveholidays’ potential float, could bring short-term relief, rivals in Europe and the U.S. continue to lure companies away with deeper liquidity and better valuations. Still, some City veterans insist London isn’t down for good. As CBI chair Rupert Soames said: “London is still preeminent, so don’t give up hope.” Bloomberg 

Minor News 

• Deloitte’s UK revenue drops for the first time in 15 years. Bloomberg 

• Pfizer avoids Trump tariffs, agrees to cut drug prices. Reuters 

• Nike tops Wall Street sales forecasts as new CEO Elliott Hill pushes turnaround. ExecSum

• OpenAI debuts social app with TikTok-style feed for AI videos. Reuters 

• ExxonMobil to lay off 4% of workforce. Reuters 

• Rising Demand: AI Actress “Tilly Norwood” Catches Attention of Hollywood Agents. Morning Brew 

• Rising US Auto Bankruptcies Signal Mounting Credit Strain on Low-Income Families. Reuters 

• New York City’s Running Boom Pumps $1 Billion into Local Economy. Bloomberg