Trade war, AI ownership, and an Iran conflict Washington cannot close
The EU and Canada are adding tariffs and export controls alongside US measures to block China's dominance in critical minerals and chips, shifting the trade war from bilateral to multi-front — Trump's scattershot approach risks alienating natural allies. Trump proposed a government equity stake in AI companies; the US-Iran war passed 100 days with Trump-Netanyahu at odds; Iran fired seven ballistic missiles at Kuwait, US intercepted six; ex-NATO admiral Bauer confirmed the 2022 US nuclear ultimatum to Russia.
Recent events
us95US-led trade war against China broadens as Europe and allies add tariffs, subsidies and export controls
Thirteen months after Trump's 'Liberation Day' tariff announcement, the emerging trade conflict has shifted from bilateral US-China confrontation to a broader multi-front effort to end China's dominance in pharmaceuticals, critical minerals and advanced semiconductors, with the EU, Canada and others now evaluating their own tariffs, subsidies and export controls alongside the American measures. The economic costs are concrete on all sides: higher consumer prices in tariff-imposing countries, dearer Chinese-sourced inputs for Western manufacturers, Chinese exporters locked out of key markets, and China retaining the threat of cutting off the critical-mineral and commodity supply chains it near-monopolises as a retaliatory lever. Analysts describe Trump's scattershot protectionism — raising tariffs across the board without targeting China's specific chokepoints — as undermining the natural alliances needed to sustain a durable economic campaign against Beijing.
Show summaryHide
US-led trade war against China broadens as Europe and allies add tariffs, subsidies and export controls
Thirteen months after Trump's 'Liberation Day' tariff announcement, the emerging trade conflict has shifted from bilateral US-China confrontation to a broader multi-front effort to end China's dominance in pharmaceuticals, critical minerals and advanced semiconductors, with the EU, Canada and others now evaluating their own tariffs, subsidies and export controls alongside the American measures. The economic costs are concrete on all sides: higher consumer prices in tariff-imposing countries, dearer Chinese-sourced inputs for Western manufacturers, Chinese exporters locked out of key markets, and China retaining the threat of cutting off the critical-mineral and commodity supply chains it near-monopolises as a retaliatory lever. Analysts describe Trump's scattershot protectionism — raising tariffs across the board without targeting China's specific chokepoints — as undermining the natural alliances needed to sustain a durable economic campaign against Beijing.
Thirteen months after Trump's 'Liberation Day' tariff announcement, the emerging trade conflict has shifted from bilateral US-China confrontation to a broader multi-front effort to end China's dominance in pharmaceuticals, critical minerals and advanced semiconductors, with the EU, Canada and others now evaluating their own tariffs, subsidies and export controls alongside the American measures. The economic costs are concrete on all sides: higher consumer prices in tariff-imposing countries, dearer Chinese-sourced inputs for Western manufacturers, Chinese exporters locked out of key markets, and China retaining the threat of cutting off the critical-mineral and commodity supply chains it near-monopolises as a retaliatory lever. Analysts describe Trump's scattershot protectionism — raising tariffs across the board without targeting China's specific chokepoints — as undermining the natural alliances needed to sustain a durable economic campaign against Beijing.
us85Trump proposes US government take ownership stake in AI companies for public benefit
President Donald Trump said Friday he is considering a federal government “partnership” with major AI companies that would give the American public an equity stake in the firms, allowing them to share in the wealth generated by the technology. Trump told reporters aboard Air Force One that he may meet with AI companies at the White House next week to discuss the concept, which has been pushed by OpenAI CEO Sam Altman and Sen. Bernie Sanders (I-Vt.). The proposal comes as Anthropic, SpaceX and OpenAI are expected to pursue stock offerings valued at over $1 trillion each.
Show summaryHide
Trump proposes US government take ownership stake in AI companies for public benefit
President Donald Trump said Friday he is considering a federal government “partnership” with major AI companies that would give the American public an equity stake in the firms, allowing them to share in the wealth generated by the technology. Trump told reporters aboard Air Force One that he may meet with AI companies at the White House next week to discuss the concept, which has been pushed by OpenAI CEO Sam Altman and Sen. Bernie Sanders (I-Vt.). The proposal comes as Anthropic, SpaceX and OpenAI are expected to pursue stock offerings valued at over $1 trillion each.
President Donald Trump said Friday he is considering a federal government “partnership” with major AI companies that would give the American public an equity stake in the firms, allowing them to share in the wealth generated by the technology. Trump told reporters aboard Air Force One that he may meet with AI companies at the White House next week to discuss the concept, which has been pushed by OpenAI CEO Sam Altman and Sen. Bernie Sanders (I-Vt.). The proposal comes as Anthropic, SpaceX and OpenAI are expected to pursue stock offerings valued at over $1 trillion each.
us82US-Iran war strains Trump-Netanyahu relationship as interests diverge
The US-Iran war, now nearing 100 days, has exposed growing divergences between President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Trump seeks a phased end to the conflict and wants to keep the Lebanon front separate, while Tehran insists on linking the two. Netanyahu fears a deal that would leave Iran's enriched uranium intact and its regime emboldened.
Show summaryHide
US-Iran war strains Trump-Netanyahu relationship as interests diverge
The US-Iran war, now nearing 100 days, has exposed growing divergences between President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Trump seeks a phased end to the conflict and wants to keep the Lebanon front separate, while Tehran insists on linking the two. Netanyahu fears a deal that would leave Iran's enriched uranium intact and its regime emboldened.
The US-Iran war, now nearing 100 days, has exposed growing divergences between President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Trump seeks a phased end to the conflict and wants to keep the Lebanon front separate, while Tehran insists on linking the two. Netanyahu fears a deal that would leave Iran's enriched uranium intact and its regime emboldened.
us82Ex-NATO chief confirms US warned Russia of conventional destruction over 2022 nuclear threats
In autumn 2022, as roughly 20,000 Russian troops faced capture on the west bank of the Dnipro, the Kremlin telephoned Paris, London, and Washington warning of nuclear weapons use. Admiral Rob Bauer, who chaired NATO's Military Committee from 2021 to 2025, said the US response was that any nuclear strike would be met with the conventional destruction of Russian forces in Ukraine. Russia did not use a nuclear weapon.
Show summaryHide
Ex-NATO chief confirms US warned Russia of conventional destruction over 2022 nuclear threats
In autumn 2022, as roughly 20,000 Russian troops faced capture on the west bank of the Dnipro, the Kremlin telephoned Paris, London, and Washington warning of nuclear weapons use. Admiral Rob Bauer, who chaired NATO's Military Committee from 2021 to 2025, said the US response was that any nuclear strike would be met with the conventional destruction of Russian forces in Ukraine. Russia did not use a nuclear weapon.
In autumn 2022, as roughly 20,000 Russian troops faced capture on the west bank of the Dnipro, the Kremlin telephoned Paris, London, and Washington warning of nuclear weapons use. Admiral Rob Bauer, who chaired NATO's Military Committee from 2021 to 2025, said the US response was that any nuclear strike would be met with the conventional destruction of Russian forces in Ukraine. Russia did not use a nuclear weapon.
us46Morning Briefing: Multiple developments in Middle East, Ukraine, and global affairs
This briefing covers several major stories: US President Trump claims Iran retains only 21-22% of its missile stockpile after US strikes; a Hamas delegation arrives in Cairo for Gaza ceasefire talks; Russia and Ukraine exchange 185 prisoners of war each; a drone attack on cargo ships in the Sea of Azov kills five Azerbaijani citizens; China's Xi Jinping to visit North Korea; and other developments including Israeli strikes on Lebanon, US-Iran tensions, and global economic impacts from the war.
Show summaryHide
Morning Briefing: Multiple developments in Middle East, Ukraine, and global affairs
This briefing covers several major stories: US President Trump claims Iran retains only 21-22% of its missile stockpile after US strikes; a Hamas delegation arrives in Cairo for Gaza ceasefire talks; Russia and Ukraine exchange 185 prisoners of war each; a drone attack on cargo ships in the Sea of Azov kills five Azerbaijani citizens; China's Xi Jinping to visit North Korea; and other developments including Israeli strikes on Lebanon, US-Iran tensions, and global economic impacts from the war.
This briefing covers several major stories: US President Trump claims Iran retains only 21-22% of its missile stockpile after US strikes; a Hamas delegation arrives in Cairo for Gaza ceasefire talks; Russia and Ukraine exchange 185 prisoners of war each; a drone attack on cargo ships in the Sea of Azov kills five Azerbaijani citizens; China's Xi Jinping to visit North Korea; and other developments including Israeli strikes on Lebanon, US-Iran tensions, and global economic impacts from the war.
us40Pentagon Recruits Wall Street Bankers for $200 Billion Strategic Investment Program
The U.S. Department of Defense previously established 'Deal Team Six' to overhaul defense contractor negotiations, renegotiating contracts to shift financial risk to contractors and replacing the Defense Acquisition System with a Warfighting Acquisition System. Now, the Pentagon is actively recruiting top Wall Street bankers from firms like Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America for two-to-three-year detachments, offering salaries up to $600,000 annually. The program aims to invest $200 billion in public funds over three years into strategic sectors critical for U.S. economic and technological sovereignty.
Show summaryHide
Pentagon Recruits Wall Street Bankers for $200 Billion Strategic Investment Program
The U.S. Department of Defense previously established 'Deal Team Six' to overhaul defense contractor negotiations, renegotiating contracts to shift financial risk to contractors and replacing the Defense Acquisition System with a Warfighting Acquisition System. Now, the Pentagon is actively recruiting top Wall Street bankers from firms like Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America for two-to-three-year detachments, offering salaries up to $600,000 annually. The program aims to invest $200 billion in public funds over three years into strategic sectors critical for U.S. economic and technological sovereignty.
The U.S. Department of Defense previously established 'Deal Team Six' to overhaul defense contractor negotiations, renegotiating contracts to shift financial risk to contractors and replacing the Defense Acquisition System with a Warfighting Acquisition System. Now, the Pentagon is actively recruiting top Wall Street bankers from firms like Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America for two-to-three-year detachments, offering salaries up to $600,000 annually. The program aims to invest $200 billion in public funds over three years into strategic sectors critical for U.S. economic and technological sovereignty.
us39Lebanon becomes most active front in US-Israel war on Iran as negotiations stall
Background: The US and Iran are in a frozen conflict with US financial sanctions and a naval blockade of the Strait of Hormuz, Iran's closure of the strait, and stalled negotiations. Today: The impasse in the US-Israel war on Iran has made Lebanon the conflict's most active front. Israeli forces are entrenched in southern Lebanon, occupying and destroying neighborhoods. US President Trump seeks to preserve negotiations with Iran, but Israeli support for the war grows, making Lebanon a key point of contention.
Show summaryHide
Lebanon becomes most active front in US-Israel war on Iran as negotiations stall
Background: The US and Iran are in a frozen conflict with US financial sanctions and a naval blockade of the Strait of Hormuz, Iran's closure of the strait, and stalled negotiations. Today: The impasse in the US-Israel war on Iran has made Lebanon the conflict's most active front. Israeli forces are entrenched in southern Lebanon, occupying and destroying neighborhoods. US President Trump seeks to preserve negotiations with Iran, but Israeli support for the war grows, making Lebanon a key point of contention.
Background: The US and Iran are in a frozen conflict with US financial sanctions and a naval blockade of the Strait of Hormuz, Iran's closure of the strait, and stalled negotiations. Today: The impasse in the US-Israel war on Iran has made Lebanon the conflict's most active front. Israeli forces are entrenched in southern Lebanon, occupying and destroying neighborhoods. US President Trump seeks to preserve negotiations with Iran, but Israeli support for the war grows, making Lebanon a key point of contention.
us39Aviation leaders gather for Iata summit in Rio amid jet fuel crisis and Middle East conflict
The Iran war has driven jet fuel prices up nearly 84% since February 28, threatening European airlines' summer season. IATA warned of potential fuel rationing in Asia and Europe if the conflict continues. Airlines are seeing hedges run out, with easyJet and TUI issuing profit warnings and reporting drops in forward bookings. Gulf airlines have been hardest hit, with a 50% drop in flights year-on-year. Lufthansa canceled 20,000 short-haul flights between May and October 2026 to conserve jet fuel. On May 6, IATA Director General Willie Walsh warned that higher European airfares are inevitable due to soaring jet fuel costs from the Strait of Hormuz closure. He stated airlines cannot absorb the extra costs long-term, though some have temporarily cut fares due to weak demand. Walsh expressed concern about potential jet fuel shortages in the UK during the peak summer period, noting that even if the strait reopened, the impact on fuel prices could persist into next year. A UK government spokesperson said airlines are not currently seeing a shortage. The EU energy commissioner Dan Jorgensen said he does not expect a serious short-term shortage but could not rule out supply issues longer term. Tui CEO Sebastien Ebel also said he does not expect shortages over the coming months. In contrast, Ryanair reported a record profit after tax of €2.26bn for the year ending March 2026, with revenue up 11% to €15.5bn and passenger numbers up 4% to 208 million. The airline has hedged 80% of its fuel costs at $67 per barrel through April 2027. CEO Michael O'Leary stated the airline has 'near-zero concerns' about jet fuel shortages this summer due to alternative supplies from West Africa, Norway, and the Americas, but warned that prolonged conflict in Iran and closure of the Strait of Hormuz could lead to higher fares and potential airline bankruptcies. Ryanair suspended guidance for its 2027 financial year due to fuel, tax, and wage uncertainties. Fares for the peak July-September period are now expected to be 'broadly flat' year-on-year, down from a previous forecast of a modest increase. The airline is in negotiations to extend O'Leary's contract beyond 2028 to 2032. This weekend, the Iata AGM is being held in Rio de Janeiro, with aviation leaders gathering amid the ongoing crisis. Jet fuel remains over $140 a barrel, down from a peak but still elevated. European carriers have largely kept flying full schedules, with new kerosene sources from the US and West Africa emerging. The EU transport commissioner stated there is currently no jet fuel shortage in Europe. Many big carriers hedge most of their fuel supply, insulating them from the price shock. EasyJet's CEO noted the airline suspended hedging due to volatility, and its tumbling share price has attracted a takeover bid from US private equity firm Castlelake. Gulf carriers have been heavily affected, with operations grounded and hub airports hit by drones. Emirates' CEO is absent from the summit. Sustainable aviation fuels remain on the agenda but with waning faith. Iata Director General Willie Walsh announced his departure to become CEO of Indigo, which has cut a route due to high fuel costs.
Show summaryHide
Aviation leaders gather for Iata summit in Rio amid jet fuel crisis and Middle East conflict
The Iran war has driven jet fuel prices up nearly 84% since February 28, threatening European airlines' summer season. IATA warned of potential fuel rationing in Asia and Europe if the conflict continues. Airlines are seeing hedges run out, with easyJet and TUI issuing profit warnings and reporting drops in forward bookings. Gulf airlines have been hardest hit, with a 50% drop in flights year-on-year. Lufthansa canceled 20,000 short-haul flights between May and October 2026 to conserve jet fuel. On May 6, IATA Director General Willie Walsh warned that higher European airfares are inevitable due to soaring jet fuel costs from the Strait of Hormuz closure. He stated airlines cannot absorb the extra costs long-term, though some have temporarily cut fares due to weak demand. Walsh expressed concern about potential jet fuel shortages in the UK during the peak summer period, noting that even if the strait reopened, the impact on fuel prices could persist into next year. A UK government spokesperson said airlines are not currently seeing a shortage. The EU energy commissioner Dan Jorgensen said he does not expect a serious short-term shortage but could not rule out supply issues longer term. Tui CEO Sebastien Ebel also said he does not expect shortages over the coming months. In contrast, Ryanair reported a record profit after tax of €2.26bn for the year ending March 2026, with revenue up 11% to €15.5bn and passenger numbers up 4% to 208 million. The airline has hedged 80% of its fuel costs at $67 per barrel through April 2027. CEO Michael O'Leary stated the airline has 'near-zero concerns' about jet fuel shortages this summer due to alternative supplies from West Africa, Norway, and the Americas, but warned that prolonged conflict in Iran and closure of the Strait of Hormuz could lead to higher fares and potential airline bankruptcies. Ryanair suspended guidance for its 2027 financial year due to fuel, tax, and wage uncertainties. Fares for the peak July-September period are now expected to be 'broadly flat' year-on-year, down from a previous forecast of a modest increase. The airline is in negotiations to extend O'Leary's contract beyond 2028 to 2032. This weekend, the Iata AGM is being held in Rio de Janeiro, with aviation leaders gathering amid the ongoing crisis. Jet fuel remains over $140 a barrel, down from a peak but still elevated. European carriers have largely kept flying full schedules, with new kerosene sources from the US and West Africa emerging. The EU transport commissioner stated there is currently no jet fuel shortage in Europe. Many big carriers hedge most of their fuel supply, insulating them from the price shock. EasyJet's CEO noted the airline suspended hedging due to volatility, and its tumbling share price has attracted a takeover bid from US private equity firm Castlelake. Gulf carriers have been heavily affected, with operations grounded and hub airports hit by drones. Emirates' CEO is absent from the summit. Sustainable aviation fuels remain on the agenda but with waning faith. Iata Director General Willie Walsh announced his departure to become CEO of Indigo, which has cut a route due to high fuel costs.
The Iran war has driven jet fuel prices up nearly 84% since February 28, threatening European airlines' summer season. IATA warned of potential fuel rationing in Asia and Europe if the conflict continues. Airlines are seeing hedges run out, with easyJet and TUI issuing profit warnings and reporting drops in forward bookings. Gulf airlines have been hardest hit, with a 50% drop in flights year-on-year. Lufthansa canceled 20,000 short-haul flights between May and October 2026 to conserve jet fuel. On May 6, IATA Director General Willie Walsh warned that higher European airfares are inevitable due to soaring jet fuel costs from the Strait of Hormuz closure. He stated airlines cannot absorb the extra costs long-term, though some have temporarily cut fares due to weak demand. Walsh expressed concern about potential jet fuel shortages in the UK during the peak summer period, noting that even if the strait reopened, the impact on fuel prices could persist into next year. A UK government spokesperson said airlines are not currently seeing a shortage. The EU energy commissioner Dan Jorgensen said he does not expect a serious short-term shortage but could not rule out supply issues longer term. Tui CEO Sebastien Ebel also said he does not expect shortages over the coming months. In contrast, Ryanair reported a record profit after tax of €2.26bn for the year ending March 2026, with revenue up 11% to €15.5bn and passenger numbers up 4% to 208 million. The airline has hedged 80% of its fuel costs at $67 per barrel through April 2027. CEO Michael O'Leary stated the airline has 'near-zero concerns' about jet fuel shortages this summer due to alternative supplies from West Africa, Norway, and the Americas, but warned that prolonged conflict in Iran and closure of the Strait of Hormuz could lead to higher fares and potential airline bankruptcies. Ryanair suspended guidance for its 2027 financial year due to fuel, tax, and wage uncertainties. Fares for the peak July-September period are now expected to be 'broadly flat' year-on-year, down from a previous forecast of a modest increase. The airline is in negotiations to extend O'Leary's contract beyond 2028 to 2032. This weekend, the Iata AGM is being held in Rio de Janeiro, with aviation leaders gathering amid the ongoing crisis. Jet fuel remains over $140 a barrel, down from a peak but still elevated. European carriers have largely kept flying full schedules, with new kerosene sources from the US and West Africa emerging. The EU transport commissioner stated there is currently no jet fuel shortage in Europe. Many big carriers hedge most of their fuel supply, insulating them from the price shock. EasyJet's CEO noted the airline suspended hedging due to volatility, and its tumbling share price has attracted a takeover bid from US private equity firm Castlelake. Gulf carriers have been heavily affected, with operations grounded and hub airports hit by drones. Emirates' CEO is absent from the summit. Sustainable aviation fuels remain on the agenda but with waning faith. Iata Director General Willie Walsh announced his departure to become CEO of Indigo, which has cut a route due to high fuel costs.