• Klarna said it used an AI avatar of its CEO to report quarterly earnings in a YouTube video.
• Klarna brands itself as an AI company and has "streamlined" its workforce by 40% since 2022.
• Klarna's Q1 results show revenue growth but see a spike in net and credit losses.

Buy now, pay later services company Klarna said it used an AI doppelganger of CEO Sebastian Siemiatkowski to report its quarterly earnings on Monday.

The AI avatar appeared in a video on Klarna's official YouTube channel to deliver earnings highlights. It wore a brown jacket reminiscent of one in Siemiatkowski's corporate headshots, and aside from a lack of blinking and suspect lip syncing, there were no significant giveaways.

"Our AI-first strategy is driving exceptional returns, we're outpacing competitors, our merchant network is scaling rapidly, and our next-gen products are reshaping money management for millions," a presumably human Siemiatkowski said in a press release.

The move comes as Klarna, which last month put its IPO on ice due to economic uncertainty, tries to brand itself as an AI company. In the earnings press release, Klarna said it has "streamlined" its workforce by around 40% since 2022.

In 2022, 800 employees were fired, while some were quietly offered an exit package last year after being placed into a "talent pool." In February 2024, Klarna announced that its OpenAI-powered AI customer service agents could do the equivalent work of 700 full-time human employees.

Klarna has recently ramped up partnerships with platforms like Walmart, eBay, and DoorDash, but consumer watchdogs have long been concerned about the potential for overspending under BNPL services. Under the Biden administration, the Consumer Financial Protection Bureau treated BNPL providers as credit card lenders, which required stricter protections around disclosures and disputes. On May 6, the CFPB said in an announcement it would no longer enforce the rule and would consider rescinding it.

The Federal Reserve found in 2024 that users of BNPL services are more likely to rely on high-interest financing tools and are more financially fragile. LendingTree, an online lending marketplace, also found in an April survey that 41% of BNPL users in the US paid late over the last 12 months, up from 34% a year ago.

Klarna's latest Q1 results also show that an increasing number of people may not have been paying their loans. While revenue grew 13% year over year and it reached 100 million active users, Klarna also doubled its net losses from $47 million in Q1 2024 to $99 million in Q1 2025 — a 110% increase.

During the May 19 earnings call, Klarna attributed the spike in losses to several one-off costs related to depreciation, share-based payments, and restructuring.

Klarna's consumer credit losses have also jumped, which its Q1 financial report said is "driven by the accelerated expansion of Pay Later and Fair Financing products." Klarna's first quarter saw a 17% year-on-year increase in credit losses from $117 million to $136 million.

Klarna did not immediately respond to requests for comment.

• In a media blitz, Elon Musk said Tesla would roll out robotaxis in June using a "prudent" approach.
• Musk aims for rapid Optimus robot production, predicting one million units a year by 2030.
• Investor response remains lukewarm, and Musk has been wrong about his ambitious timelines before.

Elon Musk went on a media blitz to share plans on new robotics benchmarks and reiterate his commitment to Tesla.

The Tesla CEO spoke briefly with Microsoft CEO Satya Nadella at the Microsoft Build conference on Monday, made a remote appearance at Bloomberg's Qatar Economic Forum, and appeared on CNBC twice on Tuesday.

At the Qatar Economic Forum, Musk said he is committed to leading Tesla for at least five more years, and said robotaxis will be rolled out in June as previously planned.

"Yes, no doubt about that at all," Musk said during a video call when asked about his leadership.

Tesla shares remained mostly unchanged after markets closed Tuesday, but they rebounded in May compared to previous months after Musk said he would scale back his involvement with DOGE on April 22. However, Tesla shares are still down in 2025 thus far, following revenue and income declines in Q1.

Representatives for Tesla did not respond to a request for comment from Business Insider.

Here are the main takeaways on robotics from Musk's interviews.

A 'prudent' approach

Musk was asked about Tesla's Full Self-Driving Supervised software running a red light during a test drive by BI reporters and stressed the slow rollout of robotaxis for safety reasons

"I think it's prudent for us to start with a small number, confirm that things are going well, and then scale it up proportionate to how well we see it's doing," Musk told CNBC host David Faber.

Musk said they are now testing robotaxis "driving 24/7 with drivers in the cars" with "essentially no interventions," but he prefers caution because it would be "the first introduction of unsupervised full self-driving."

"We want to deliberately take it slow," Musk added. "We could start with 1,000 or 10,000 on day one, but I don't think that would be prudent. So we will start with probably 10 for a week, then increase it to 20, 30, 40."

Musk said that the goal would be to have 1,000 robotaxis within a few months in Austin, before expanding the operation to other cities like Los Angeles and San Antonio.

Though Musk did not directly address BI's reporting that the FDS made a critical error, he said Tesla's robotaxis will be geo-fenced to select areas of Austin. Alphabet's Waymo also limits its autonomous cars to specific zones.

"It's not going to take intersections unless we are highly confident," Musk told Faber. "Or it will just take a route around that intersection."

The future of Optimus

Musk is expecting to scale up the use of humanoid robots quickly.

"We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall," Musk told Faber on CNBC, "And we expect to scale Optimus up faster than any product, I think, in history, to get to millions of units per year as soon as possible."

"I think we feel confident in getting to one million units per year in less than five years, maybe four years. So by 2030, I feel confident in predicting one million Optimus units per year — it might be 2029," Musk added.

Musk told Faber that Optimus will also be the "biggest product ever" with "insatiable" demand because "everyone" would want one.

"It's going to take a lot of compute resources and it'll take time," said Musk when asked what it would take to train a robot, "I think there's certain threshold breakthroughs that we think we can achieve."

In a short conversation with Microsoft CEO Nadella, Musk also reiterated that all kinds of robotics, including robotaxis and the humanoid robot Optimus, need to be "grounded in reality."

"As you mentioned with the car, it needs to drive safely and correctly. The humanoid robot Optimus needs to perform the task that it's being asked to perform," Musk told Nadella.

The market reacts

Musk's media blitz generated a lukewarm response from investors. Tesla shares rose around 0.5% at market closing on Tuesday compared to the day before, but stocks began to dip in the after-hours.

Musk has teased his plan to bring humanoid robots to market for years. In 2021, a dancing actor in a body suit gave us our first look at Optimus, also known as Tesla Bot. By 2022, a rough prototype was up and walking at the company's Artificial Intelligence Day event.

In October 2024, Business Insider's Hasan Chowdhury reported that Tesla's robotics technology has advanced since its early days. Chowdhury reported that Optimus prototypes at last year's Tesla's robotaxi day played rock-paper-scissors with the audience, poured drinks, and danced, though some attendees thought the bots were controlled by human operators.

As far as the timeline goes, Musk said in a post on X last July that Tesla would have "genuinely useful humanoid robots in low production for Tesla internal use next year," and larger-scale production enabling sales to other companies by 2026. Now, midway through 2025, large-scale production has not yet been announced, but in the company's Q1 2025 Update letter, Tesla said it is "on track" for its builds of Optimus on its Fremont pilot production line in 2025, "with wider deployment of bots doing useful work across our factories."

Musk has been wrong about timelines before. In 2018, he acknowledged that he tends to be overly optimistic about when his creations will come to market. In some instances, consumers are still waiting for his promises to come to fruition.

In 2019, Musk said Tesla would deploy over one million robotaxis by the end of 2020. While that hasn't yet materialized, the planned debut of its robotaxi service in Austin later this year gets Tesla a small step closer to that goal.

Still, if Tesla's robotics division manages to deliver on all it has promised with Optimus and its other applications, it'd be a major boon for the company — and its investors. Tesla bull and Wedbush Securities analyst Dan Ives has predicted that robotaxis will be a game changer for Tesla, and estimated that it could become a $2 trillion company within the next two years. Ives told CNBC on Tuesday that he believes 90% of Tesla's future value lies in its autonomous vehicle software and robotics division.

• Elon Musk said it's "not out of the question" to merge his AI startup with Tesla if shareholders approve.
• xAI, which Musk founded in 2023, acquired X in March in an all-stock purchase.
• Tesla shares rose 0.5% but dipped in after-hours Tuesday, remaining around 10% down since January 2.

Elon Musk said on Tuesday that he isn't ruling out merging his AI startup with Tesla.

"Well, I guess anything is possible," Musk told CNBC show host David Faber in a two-part interview, when asked whether Musk would ever consider merging xAI into Tesla as a way to gain more control over the EV company.

"There are no plans to do so," Musk said. "It's not out of the question, but obviously it would require Tesla shareholder support."

Musk launched xAI as a startup in 2023. The company acquired X, his social platform formerly known as Twitter, in an all-stock transaction valuing xAI at $80 billion and X at $33 billion in March. The AI chatbot Grok was also introduced to X and trained in part on the social media platform's data.

Elon Musk said in the Tuesday interview that Tesla and xAI will continue sourcing AI chips from Nvidia and AMD. He told Faber that xAI has deployed 200,000 GPUs at its Colossus facility in Memphis and plans a 1 million-GPU site nearby, but he did not disclose any specific chip orders.

Based on documents previously viewed by Business Insider, xAI is also spending at least $400 million on building a supercomputer in Memphis, and may encounter difficulties because the city's power grid might not yet be capable of powering a project of that magnitude.

Following the CNBC appearance, Tesla shares saw a 0.5% boost at market closing time compared to the day before, but dipped slightly in after-hours trading.

Though Tesla stocks have been on the rise in May since Musk said he would leave DOGE, the EV company's shares are still at around 10% down compared to where it was on January 2 this year amid struggling Q1 sales and declining confidence in Musk's priorities.

Tesla did not respond to a request for comments.

• Barry Diller said to give Trump's tariffs "a little good spirit," though he thinks "it's going to end in tears."
• "I like big gambles," he said. "Maybe you can pull it off. Maybe manufacturing can come back.
• The Budget Lab at Yale warns that tariffs won't offset the GOP's proposed tax cut bill.

Barry Diller thinks that President Donald Trump's tariffs should be allowed to come to pass.

"I think it's going to end in tears," the Hollywood mogul and IAC chairman said of Trump's tariff during Monday's episode of the "On with Kara Swisher" podcast.

"But you know what?" the 83-year-old billionaire continued. "It's a big gamble. I like big gambles. Maybe you can pull it off. Maybe manufacturing can come back. Maybe it can end taxes for people where you just simply get money from others."

"Don't be in this derangement syndrome, and let's see giving it a little good spirit rather than a violent negative spirit — and that's my attitude right now," Diller added.

Trump's broad-reaching tariffs have met challenges thus far, and he has paused some of the highest levies. Business leaders, even those who have openly supported him, have expressed concerns about their economic impacts, and stocks tumbled when the tariffs were announced.

The Budget Lab at Yale recently said in a report that the income reaped from tariffs won't come close to offsetting the Republicans' proposed tax cuts, which could pass given their majority in Congress and may cost the country $3.4 trillion over the next 9 years.

"If we account for the likelihood that these provisions would become permanent, at the end of 30 years the debt-to-GDP ratio would be over 180%, even assuming substantial revenue from tariffs," the non-partisan policy research group wrote. "For context, the only countries with a higher debt-to-GDP ratio currently are Japan and the Sudan."

In a separate report on May 12, the Budget Lab at Yale found that Trump's tariffs would cost the average American household a loss of $2,800 per household on average in 2024 dollars in purchasing power.

Higher tariffs on 75 trading partners imposed on April 2 were suspended for 90 days starting on April 9. Tariffs on China were temporarily lifted for 90 days on May 14 to negotiate a broader trade agreement.

Expedia did not respond to a request for comments.

• Ray Dalio said on X that Moody's credit downgrade doesn't cover the risks of government money printing.
• Moody's downgraded US credit to Aa1, citing growing deficits and ballooning interest payments.
• A GOP tax bill could worsen US debts, with proposed tax breaks and increased defense spending.

Billionaire investor Ray Dalio thinks Moody's recent downgrade of the US sovereign credit rating doesn't capture the danger of the federal government simply printing cash to cover its bills.

"You should know that credit ratings understate credit risks because they only rate the risk of the government not paying its debt," Dalio, the founder of Bridgewater Associates, warned said on X. "They don't include the greater risk that the countries in debt will print money to pay their debts thus causing holders of the bonds to suffer losses from the decreased value of the money they're getting."

"For those who care about the value of their money, the risks for US government debt are greater than the rating agencies are conveying," Dalio added.

Dalio's comments came after Moody's, the international financial services company, downgraded the US credit from Aaa to Aa1 on Friday, citing growing deficits and surging interest payments. That makes Moody's the last of the three major credit agencies to bump America's credit off the highest rating. S&P Global Ratings downgraded the US back in 2011, and Fitch Ratings followed suit in 2023.

In response to the downgrade, stocks slipped on Monday while Treasury yields spiked. The 30-year bond yield jumped 4.995%, and the 10-year bond yield rose to 4.521%.

Adding to investor concerns, economists are sounding the alarm on a tax cut bill proposed by Republicans that could come to pass given the slim GOP majorities in both the House and the Senate.

The bill proposes tax breaks for the wealthiest Americans through a higher estate tax exemption, interest tax breaks for private equity, and a $150 billion boost in defense spending. It also plans to increase the child tax credit by $500 and eliminate taxes on tips and overtime pay.

Despite the bill also proposing spending cuts to Medicaid and SNAP and to hike taxes for immigrants, the Budget Lab at Yale, a nonpartisan policy research center, says that the GOP bill would worsen America's debt.

"The bill as currently proposed would substantially add to the deficit, even if accounting for possible tariff revenue," authors of the report wrote, "If we account for the likelihood that these provisions would become permanent, at the end of 30 years the debt-to-GDP ratio would be over 180%, even assuming substantial revenue from tariffs."

According to the report, Sudan and Japan are the only two countries with a debt-to-GDP ratio over 180%.

"Assuming temporary provisions expire, the bill's baseline cost of $3.4 trillion would make it the largest spending package in US history," the report added.

In a rare Sunday night vote on May 18, the GOP tax cut bill narrowly passed the House Budget Committee, which days before rejected the bill. The bill now heads to the House for a vote this week.

A spokesperson for Dalio did not immediately respond to a request for comment.

• Heath Ceramics is doubling down on its resale program as consumers grapple with tariffs.
• The California-based company emphasizes that its products hold value in the long run as a strategy.
• The pre-loved market is booming for curated vintage as well as regular necessities, secondhand platforms say.

As tariffs drive up the cost of imports and bite into household budgets, some American companies are amping up their secondhand offerings and avoiding the tariff question altogether.

For Health Ceramics, a California-based pottery business with a relatively new resale program, this economic moment has brought a silver lining in the form of a booming peer-to-peer market for used goods.

A single new Heath plate costs between $30 and around $200, depending on factors like size and rarity. By comparison, the average imported 10-inch stoneware plate on Target's website is listed at $3 each pre-tax.

"You are buying a piece of ceramics that was actually made by your neighbor with clay that came from California, a few hours away," Meghan Wernetti, Heath's director of creative operations, told Business Insider. "You're not paying for a 21-day cruise across the ocean."

Heath has always known there was a booming secondhand market, says Wernetti, but they didn't launch their peer-to-peer marketplace until last year.

With tariffs driving up prices for new products overall for most businesses, Heath is doubling down on its "Pass the Plate" resale program by launching a vintage market next month in its tile factory in San Francisco, and trying out buybacks for those looking to pass on their Heath products.

"If these changes help shine light on a different way to do business that can still be very sustainable and fulfilling for customers and employees, that would feel like a silver lining, of what is otherwise a hard moment in the short term," said Wernetti.

Wernetti recognized that being American-made alone may not convince people to pay a higher price, but emphasizing the long-term value has drawn in more customers and more traffic for its online site.

"It reinforces the idea that Heath is for collecting — it holds its value," Wernetti said. "You can love it for 10 years and then pass it on, and it's still going to be just about as good as new."

Secondhand is having a moment

Secondhand shopping is receiving a boost, both for curated high-end vintage and regular necessities.

Vintage resale platform Chairish told BI that after it launched an "American Vintage is Tariff Free" ad accompanied by a collection, the company saw a 100% to 700% increase in engagement and rate of sales, which it said is "unprecedented."

A spokesperson of secondhand platform OfferUp told BI that the site saw a 22,914% increase in searches for "uppa" after tariff price hikes took effect for some popular baby stroller brands like UPPAbaby in early May. One stroller retailer told Business Insider in April that the brand's strollers, which are made in China, would cost $1,199 — up from $899.

Beyond helping people pass on their dinnerware, Wernetti said Heath's resale program is strengthening its relationship with customers and allowing consumers to rethink a "race to the bottom" mode of production in which wages and quality are continuously slashed to meet a lower price point.

"It's not about nostalgia or framing Heath as a relic of a different time," said Wernetti. "It's about doing things in a way that makes sense — for the people who make the product, the people who use it, and the worlds in between."

• OpenAI launched Codex, an AI tool to write codes and fix bugs for developers.
• As an AI Agent, Codex could also help users with an Amazon order or a dinner reservation.
• Codex and GPT-4.5, which was launched in April, both come with a heftier price tag of $200 per month.

OpenAI on Friday rolled out a powerful new tool for software developers, as the company pushes further into automating coding tasks with AI.

The new product, called Codex, is an AI agent designed to help programmers write code, fix bugs, and run tests — often simultaneously.

"Technical teams at OpenAI have started using Codex as part of their daily toolkit," OpenAI said in a blogpost. "It is most often used by OpenAI engineers to offload repetitive, well-scoped tasks, like refactoring, renaming, and writing tests, that would otherwise break focus."

"When uncertain or faced with test failures, the Codex agent explicitly communicates these issues, enabling users to make informed decisions about how to proceed," OpenAI added.

Unlike traditional chatbots that respond to prompts and generate responses in mostly words, AI agents like Codex can interact with other software and online services, such as helping you with a DoorDash order or booking a dinner reservation.

The Codex rollout came after OpenAI launched GPT-4.5 in February. A livestream demo highlighted its improved reasoning, intuition, and reduced hallucinations.

CEO Sam Altman described it as "the first model that feels like talking to a thoughtful person," but also said that its intelligence and nuance comes at steep computational cost. Due to GPU shortages, GPT-4.5 was initially available only to $200-per-month ChatGPT Pro users.

Codex is now available to subscribers of OpenAI's ChatGPT Pro plan, which costs $200 a month. OpenAI also said it will eventually bring Codex to its other premium offerings.

OpenAI did not immediately respond to a request for comments.

• Elon Musk's America PAC is facing a class action lawsuit that alleges unpaid fees to canvassers.
• The PAC promised to pay a $47 fee to each petition signer and for each signature collected.
• This is the second legal challenge against America PAC's petition payment promises.

Elon Musk's America PAC is facing a class action lawsuit over its promise to pay petition signers and signature collectors.

Three plaintiffs from Pennsylvania, Georgia, and Nevada filed the lawsuit on May 8. It alleged that the billionaire-backed super PAC failed to compensate individuals who signed or referred others to sign a petition during President Donald Trump's 2024 campaign.

Musk's PAC initially promised to pay each registered voter in seven swing states who signed the PAC's "Petition in Favor of Free Speech and the Right to Bear Arms" $47, an amount that was later increased to $100 for Pennsylvania. The same reward was also promised for each successful referral of a registered voter in swing states who signed the petition, at $100 per signature, only in Pennsylvania.

According to the complaint filed in the Eastern District Court of Pennsylvania, Steven Reid worked as a canvasser for America PAC in Michigan and Georgia and referred "many voters" to sign the petition. But despite repeated attempts to collect payment, Reid was never compensated, according to the complaint, and estimates he is owed "several thousand dollars."

"Plaintiffs are in communication with numerous others who referred voters to sign the America PAC petition, who are likewise frustrated that they did not receive full payments for their referrals," the lawsuit alleged.

"There are expected to be more than 100 Class Members, and the amount in controversy is expected to exceed $5,000,000," the lawsuit added.

An attorney for Musk, representatives of Tesla, and the America PAC did not immediately respond to requests for comments.

This is the second legal challenge regarding America PAC's petition payment promise. A separate class-action suit filed on April 1 by an anonymous Pennsylvania man in Bucks County made similar claims, alleging that Musk's PAC owes him $20,000 for signature-gathering work.

"Plaintiff has repeatedly contacted Defendants, making multiple attempts to receive full payment for his referrals, but to no avail," the complaint said.

These payment pledges, made on Musk's own X account and through ads authorized by the America PAC, aren't the only instances in which the richest man in the world promised to pay individuals for participating in a political activity.

In Wisconsin's Supreme Court race, Musk also promised, through a social media post, to pay $1 million each to two Wisconsin electors who had already voted and attended his event. The post was made on March 27, before the poll closes by the end of April 1.

The candidate that Musk championed eventually lost the Wisconsin Supreme Court race.

• Chinese e-commerce sites have reduced the price of Apple's iPhone 16 ahead of a shopping festival.
• Business Insider found iPhones discounted for hundreds of dollars compared to official listings.
• Apple faces declining sales in China as local brands like Xiaomi gain market share.

Chinese e-commerce websites have slashed some Apple iPhone prices by hundreds of dollars ahead of the 618 shopping festival.

The 618 shopping festival, or June 18, typically lasts around two weeks and is the second-largest annual shopping festival in China, which frequently generates more than $100 billion in revenue for its largest e-commerce platforms.

On JD, Business Insider found a white iPhone 16 Pro with 128GB of storage on an interest-free 12-month payment plan listed at 5,380 yuan, or around $745. That is at least a $360 markdown from Apple's official listing price of 7,999 yuan on its mainland China website.

Another 256GB iPhone 16 pro on the same payment plan is selling at 6,220 yuan on JD, down from Apple's official listing price of 8,999 yuan.

On Tmall, by Chinese e-commerce giant Alibaba, BI also saw at least one brand new iPhone 16 for 5,299 yuan, also around $230 down from the Apple official listing price of 6,999 yuan.

On Apple's US official website, a 128GB iPhone 16 Pro would cost $999, while an iPhone 16 with the same amount of storage is listed at $799.

Apple did not immediately respond to a request for comments and did not clarify whether these discounts in China are part of an official promotion initiated by Apple.

These markdowns follow Apple's struggling sales in China, as cheaper domestic brands gain popularity and shoppers grow thriftier. Apple saw its iPhone shipments down 9% in China in comparison to the first quarter of 2024, and its Q2 sales in China also missed expectations.

However, according to a report by the International Data Corporation, smartphone shipments in China grew 3.3% overall in the first quarter, largely due to local Apple rivals like Xiaomi, which saw a 39.9% increase in shipments in China in the same quarter compared to 2024.

A Xiaomi 15 Pro, one of its latest models with at least 256GB in storage, is listed for 4,999 yuan on its China website, which is less than $700.

Meanwhile, to boost soft consumer spending as China grapples with internal economic issues triggered by a property market crisis, the Chinese government expanded consumer subsidies on smartphones and other tech devices, but only for products priced under 6,000 yuan ($821), leaving many Apple models too expensive to qualify for the discount.

• JPMorgan revised its recession forecast after President Donald Trump's tariff truce with China.
• Trump and China agreed to lift most tariffs on each other for 90 days for further negotiations.
• A JPMorgan analyst said that the chances of a US recession are now below 50%, but risks remain.

JPMorgan is revising its 2025 recession prediction after President Donald Trump reached a temporary tariff truce with China.

In a Tuesday note, the bank said the chances of a US recession this year had fallen below 50%, down from a previous estimate of 60% after Trump announced sweeping tariffs on April 2.

"The administration's recent dialing down of some of the more draconian tariffs placed on China should reduce the risk that the US economy slips into recession this year," wrote JPMorgan chief US economist Michael Feroli. "We believe recession risks are still elevated, but now below 50%."

JPMorgan found that the tariff change meant the average effective tariff rate had reduced from 24% to 14%, representing a tax cut of almost $300 billion.

"Most of that prior tax was likely to have been borne by US consumers in the form of higher prices," Feroli said. "The rolling back of this tax should provide some relief to consumer spending, and in our modeling is enough to tip the second-half growth outlook from one of modest contraction to one of modest growth."

He added that the lower tariffs are still a boost to inflation, however, which will affect disposable income and in turn, consumer spending.

The shift follows Trump's announcement of a 90-day tariff pause that scales back duties on US imports from China from up to 245% to 30% as negotiations continue.

Although stocks have rallied and regained losses since April 2, some — including Federal Reserve board governor Adriana Kugler — have said the economy is not out of the woods yet.

JPMorgan also raised its projection for US economic growth this year to 0.6%, up from 0.2% before the China tariff pause.

Feroli also predicts that the personal consumption expenditures price index, a key measure of inflation, will rise to 3.5% rather than 4%, but still higher than 2.2% at the start of the year.

Feroli's note also addressed a mild risk in the job market as businesses hold off on new hirings and investments due to economic uncertainties brought on by tariffs. A long list of major companies, including Morgan Stanley, Wayfair, UPS, and Meta, have been laying off staff this year.

"We still project a modest contraction in employment later this year, as labor demand is projected to slow even more than labor supply," wrote Feroli.

"Our updated labor market outlook is less demanding of immediate action to stem employment risks; for the Fed, we are pushing back the timing of the resumption of rate cuts from September to December."

• Palantir CEO Alex Karp praised Saudi engineers at Riyadh's investment forum and criticized Europe.
• European organizations are slower in AI adoption compared to their US counterparts, a report said.
• Europe has more stringent AI regulations, and many ways of utilizing AI are categorized as high-risk.

At an investment forum in Riyadh, Alex Karp, CEO of defense tech company Palantir Technologies, praised Saudi engineers for meritocracy and patriotism — and took a swipe at Europe over its slow AI adoption.

"You're seeing a receptivity in this region, especially in the kingdom," Karp said at the Saudi-US Investment Forum on Tuesday. "But the receptivity is on the back of people who have a deep tradition in engineering excellence and, quite frankly, believe in their own future."

Karp was addressing a request from panel host and CNBC anchor Sara Eisen to expand upon a previous comment that the countries and regions that are best utilizing AI right now are the US and the Middle East.

"Obviously, the great contradistinction here is Europe, where, you know, it's like people have given up, and we — I really hope that turns around in Europe," he added.

The talk came as President Donald Trump received a royal welcome with golden chairs and Arabian horses in Riyadh on Tuesday as he kicked off his Gulf tour. Flanked by executives from Google, Nvidia, BlackRock, and others to discuss AI, defense, and energy with Saudi officials, Trump said he aims to secure $1 trillion in deals.

Based on an October 2024 report published by QuantumBlack, AI by McKinsey, European organizations lag behind their US counterparts by 45 to 70% in terms of AI adoption. And while Europe leads in producing AI semiconductor equipment — machinery and tools used to make semiconductors — the report said that Europe has below 5% market share in areas like raw materials, cloud infrastructure, and supercomputers.

"Opportunity remains wide open, but Europe is starting from a disadvantage," the report QuantumBlack wrote.

Europe is also known for much more stringent AI regulations. On August 1, 2024, Europe enacted the AI Act, the first-ever legal framework on AI, and established an AI office to oversee the implementation of these regulations.

The AI Act is just one part of a wider package of measures that the EU said ensures "trustworthy AI," which explicitly banned practices such as AI-based manipulation and deception, real-time remote biometric identification for law enforcement purposes in public spaces, and individual criminal offense risk assessment.

According to the AI Act, ways of using AI, such as robot-assisted surgery and credit scoring, are also categorized as "high-risk" and subjected to strict scrutiny.

The best-known European AI company that raised the most amount of funds is French AI startup Mistral, which is backed by over €1 billion in funding. Dubbed as Europe's answer to OpenAI, the company has recently ruled out acquisition and is eyeing an IPO while pushing its open-source AI models and generative chatbot "Le Chat" into new markets.

• The US and China agreed to suspend most tariffs for 90 days to allow for further talks.
• Trade experts believe US-China trade will spike during talks, and that the eventual deal will be broad.
• Stocks surged on the news, but a Fed governor remains concerned about inflation and economic slowdown.

The US and China agreed to suspend most tariffs on each other's goods for 90 days, following high-stakes negotiations in Geneva over the weekend.

As the tariff pause begins on Wednesday, experts expect a spike in trade between the countries, as companies race to front-load inventory while negotiators work on a deal.

"The negotiations suggest that both countries realize they need each other," Andrew Collier, a senior fellow at the Mossavar-Rahmani Center for Business and Government of the Harvard Kennedy School, told Business Insider.

The temporary truce slashes China's tariffs on the US from 125% to 10% and the US's tariffs on China from 145% to 30%. The deal leaves President Donald Trump's fentanyl-related 20% tariffs in place and does not restore the de minimis exemption, which applied to e-commerce from China and allowed Temu and Shein orders to remain duty-free.

Following the agreement, stocks rallied sharply on Monday, especially for tech. The Nasdaq Composite and the S&P 500 each surged around 3%, while the Dow Jones Industrial Average jumped more than 2.4% and gained over 1,000 points.

A spike in US-China trade

As businesses rush to get shipments across the Pacific while tariffs are lower, Scott Kennedy, senior advisor in Chinese business and economics at the Center for Strategic and International Studies, told Business Insider that he expects US-China trade to speed up during the 90-day negotiation.

"US-China trade should bounce back," said Kennedy. "We may see a substantial jump in cargo for companies that are worried that we will be back at this intersection in a few months, and they need to take advantage of this respite to expand to accelerate trade."

Chinese exports to the US spiked 15.6% in December 2024 compared to the same month in 2023 as businesses frontloaded inventory in anticipation of tariffs once President Donald Trump was inaugurated.

"Our ocean freight bookings from China to US increased 35% in the first day since the trade deal," Flexport CEO Ryan Petersen posted on X on Monday. "A big backlog is looming, soon the ships will be sold out."

However, smaller businesses have previously told BI that they have cash flow constraints when ordering and storing a large volume of products. Increased demand for cargo shipping within a short time frame may also drive up shipping costs.

At the end of the 90 days, trade experts expect the outcome of negotiations to be broad and substantial, but believe there will be some thorny issues that can't be resolved quickly.

Kennedy of CSIS is expecting the US to focus on China's industrial policy, fentanyl, and intellectual property theft, while China would likely try to resolve US export controls, restrictions on investment, and the fees that are scheduled to be imposed on Chinese ships by October.

"With an extremely broad agenda, and the challenge will be narrowing that agenda toward something that looks like potential concessions by both sides," said Kennedy.

Collier told BI that leaders of both countries are under different kinds of pressures to seal the deal.

"How the US will then try to tackle the knotty issue of state subsidies and China's aggressive mercantilism will have to wait for another chapter," he said.

Cautious optimism

While the stock market reacted to the US-China tariff pause with optimism, Federal Reserve Board Governor Adriana Kugler said that overall tariffs at their new level are still higher than they have been in recent decades. She said in a speech on Monday that this could still lead to a negative supply shock and a squeeze on real income.

"And the uncertainty associated with these tariffs has already generated effects on the economy through front-loading, sentiment, and expectations," Kugler said.

Kugler expects economic growth to come short of last year's 2.5% expansion, even though recession forecasts are sliding in betting markets as US-China tension cools. Progress made in combatting inflation has also slowed, she said, and inflation is still above the 2% goal.

"Trade policies are evolving and are likely to continue shifting," she added. "Even as recently as this morning."

• Amazon renewed hit show "Beast Games," created by YouTuber MrBeast, for two more seasons.
• The first season of "Beast Games" drew 50 million viewers in 25 days, according to Amazon.
• The show broke 44 Guinness World Records and awarded a $10 million prize.

Amazon is doubling down on one of its biggest hits.

"Beast Games," the high-stakes reality competition created and hosted by YouTube star MrBeast, also known as Jimmy Donaldson, has been renewed for seasons two and three on Amazon Prime Video, the company announced Monday.

"Our goal was to deliver the biggest, boldest competition series ever created, and the response has exceeded every expectation," said Jeff Housenbold, CEO of MrBeast Industries.

"'Beast Games' resonated with fans around the world, and that's a testament to the creativity of Jimmy and the entire Beast team. We're grateful to Amazon for their continued partnership, and we're excited to raise the bar even higher in the next two seasons," Housenbold added.

"Beast Games," which premiered in December 2024, drew 50 million viewers in just 25 days, according to Amazon. The series pits 1,000 contestants against each other in a series of intense physical, mental, and social challenges, all for the chance to win a $10 million cash prize — the largest ever awarded on a competitive reality TV show.

The first season ended with Player 831, Jeffrey Randall Allen, taking home the grand prize after selecting the correct briefcase in a final game of chance. That last twist doubled the original $5 million prize.

In March, the show opened casting for season two. According to a casting call, the requirements to compete included an age limit of at least 18 and possession of a valid passport through January 2026. Applicants were also required to answer a list of questions in a one-minute horizontal video.

In December, Business Insider revealed the terms contestants agreed to for the preliminary round of "Beast Games." The documents included a release form and a contestant questionnaire form. Contestants also agreed to certain protocols, like giving up consent to the use of hidden cameras and recording devices.

In total, "Beast Games" broke 44 Guinness World Records during production, including most participants in a single reality show season, most people eliminated in one episode, and the most money ever won in a single episode of a competition show.

MrBeast, 27, is known for his massive giveaways and over-the-top stunts, which helped him amass over 332 million subscribers on his main YouTube channel — more than any individual creator in the world.

• Cardinal Robert Francis Prevost became Pope Leo XIV, the first American pope.
• Leo XIV's management style is one of caution, active listening, and leading by example.
• Leo XIV has been critical of JD Vance and President Trump's policies, especially on immigration.

American-born Cardinal Robert Francis Prevost was introduced to the world on Thursday from the balcony of St. Peter's Basilica as Pope Leo XIV, becoming the 267th leader of the Roman Catholic Church — and the first ever pope from America.

Before becoming pope, Prevost was chosen in 2023 by Pope Francis to be in charge of selecting bishops. In August 2024, he said during a talk at St. Jude Parish in Chicago that Francis chose him for "a different perspective."

With 133 voting cardinals, the 69-year-old polyglot and naturalized Peruvian citizen was elected by the Conclave to succeed Pope Francis, who died in April.

Two cardinals who spoke to the Washington Post noted that he was seen as a skilled manager.

From looking through past interviews, it's evident that Pope Leo XIV's management style could reshape the Catholic church — and provide us with tips on leadership.

'Listen to his neighbors'

Pope Leo XIV has placed emphasis on the idea of synodality promoted by Pope Francis — a concept that emphasizes the importance of everyone working together in communion to make decisions about the life and mission of the Church.

In an interview with Vatican Media in 2023, Leo XIV said that a bishop should possess the "ability to listen to his neighbor and seek advice," in addition to having a "much broader vision of the Church and reality and experience the universality of the Church."

"A fundamental element of the portrait of a bishop is being a pastor, capable of being close to the members of the community, starting with the priests for whom the bishop is father and brother," said Leo XIV. "To live this closeness to all, without excluding anyone."

Promoting inclusivity

Leo XIV praised Pope Francis' 2022 decision to name three women as full members of the dicastery — a department or office of the central administrative office of the Catholic Church, also known as official congregations — which gives them a voice on the selection of bishops.

In a March 2024 interview with Catholic News Service, Leo XIV said that the inclusion of women "contributes significantly to the process of discernment in looking for who we hope are the best candidates to serve the church in episcopal ministry."

Under Pope Francis, women of faith have joined priests as voting representatives for religious orders for the very first time, and when appointing 70 non-bishop members of the synod in 2023, Francis had also asked that half of them be women.

Leading by example

Leo XIV commended Pope Francis in a March 2024 interview with Catholic News Service for being "a pastor who preaches by gesture" in his "effective and important" pushback against attitudes of clericalism among bishops.

Clericalism is the belief that church leaders are morally better and more talented than regular people, and that their authority should be the main focus.

"It's important to find men who are truly interested in serving, in preaching the Gospel," said Leo XIV in the 2024 interview with Catholic News Service, "Not just with eloquent words, but rather with the example and witness they give."

"And we must not hide behind an idea of authority that no longer makes sense today. The authority we have is to serve, to accompany priests, to be pastors and teachers," Leo XIV added in a 2023 interview with Vatican News.

Non-partisanship

While Leo XIV has been critical of policies, he has cautioned against partisanship and anchors most of his criticism in Catholic social teaching — the church's guide on how to approach social, economic, and ecological issues.

In mid-April, the then-cardinal shared a post in what appears to be his X account criticizing Trump and El Salvador's president for mocking the deportation of Maryland resident Kilmar Abrego Garcia. The post linked to a Catholic Standard article in which Bishop Evelio Menjivar asked Catholics, "Is your conscience not disturbed? How can you stay quiet?"

In February, he also shared articles on X that are critical of Vice President JD Vance, a Catholic convert, including one from the National Catholic Reporter. He echoed the headline in his post: "JD Vance is wrong: Jesus doesn't ask us to rank our love for others."

The article challenged Vance's assertion in a Fox News interview that it is a "Christian concept" to prioritize loving those closest to them over people from other nations, in reference to the treatment of immigrants.

In 2017, the day after the Las Vegas music festival mass shooting on October 1, when Leo XIV was the Bishop of Chiclayo, Peru, the account also shared a post from a Democratic senator, criticizing Republicans for not speaking up about gun violence, and that their "cowardice to act cannot be whitewashed by thoughts and prayers."

Voting records show that he voted in three Republican primaries in the state of Illinois in Will County between 2012 and 2016. Illinois voters do not register by party, so voting in Republican primaries doesn't necessarily indicate a person's party affiliation.

Leo XIV has never endorsed a party or a candidate and urged unity over partisanship.

"We must be able to listen to one another," said Leo XIV in a 2023 interview with Vatican Media, "To recognize that it is not a question of discussing a political agenda or simply trying to promote the issues that interest me or others."

• Delta Air Lines and Korean Air have invested $550 million in Canada's WestJet for equity stakes.
• The investment comes at an uncertain time for Canada-US travel due to Trump's policies.
• Delta and WestJet previously explored a joint venture, but it fell through in 2020.

Delta Air Lines and Korean Air will pay a combined $550 million in exchange for stakes in Canada's WestJet, the three companies announced in a joint statement on Friday.

Delta, headquartered in Georgia, will invest $330 million to acquire a 15% stake in the Calgary-based carrier, while Korean Air will commit $220 million to acquire a 10% stake. The partnership will increase connectivity between each airline's existing international routes, which are focused primarily throughout North America, Europe, and Asia.

Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, said in a press release that the partnership will "create long-term value for customers through greater choice and convenience."

Ed Bastian, Delta's CEO, added that the investment "ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada."

The venture, which reconceptualized prior partnership plans between WestJet and Delta that fell through in 2020, comes at an uncertain moment for travel between Canada and the US — and, for Americans, international travel in general.

Business Insider previously reported that many Canadians are opting not to travel to the US out of anger over Trump's tariffs on their country and his repeated suggestion to make the US's northern neighbor the 51st state.

Longwoods International, a market research consultancy, found in an April survery of 1,000 Canadian travelers that 36% of respondents said they'd planned to travel to the US in the next 12 months but decided to cancel their plans, while 60% they're less likely to visit the US in the next year due to political reasons.

In March, WestJet Airlines vice chairman Alex Cruz told CNBC that Canadian travelers were opting for Central America over the US, and that "there's clearly been a reaction" toward Trump's tariff policies.

American travelers visiting other countries like Canada have also previously told BI that they have encountered increased hostility, and that negative perceptions toward Trump's policies have carried over to Americans in general.

Delta and WestJet previously explored a joint venture aimed at better coordinating schedules for flight transits, but the initiative was shelved in 2020 after US regulators demanded that WestJet relinquish some takeoff and landing slots at New York's LaGuardia Airport as a condition for approval.

WestJet and Korean Air did not immediately respond to requests for comment. Delta Air Lines referred BI to the original press release announcing the investment.

• A business owner is labeling tariff costs as a separate line on the price tag of his electric bikes.
• Businesses, large and small, are hoping to retain consumer trust by showing how much tariffs increase prices.
• Business experts say consumer awareness of tariffs could spell trouble for Trump's polling rates.

When Jared Fisher found out his major supplier of electric bikes was raising its prices by 10%, he had a choice to make: eat the cost or pass it along to his customers.

"If you cut 10% into a bicycle margin, then you might as well get ready to have your exit strategy for your business because you're not going to be able to operate," Fisher, who owns several bike shops in Nevada and Utah, told Business Insider. "There's no way."

Instead, Fisher decided to be transparent with his customers about why prices were rising on some of his products. He added a new line item directly to the price tags on bikes hanging in his shops. On one bike he sells for $7,999, the price tag now shows an additional $300 "Government Tariff Charge."

"I have no problem labeling where this tax is coming from on my products," he said. "People need to know that so I have a fighting chance on my end."

On April 2, President Donald Trump imposed a 10% baseline tariff on all imports into the US, as well as additional tariffs on dozens of trading partners. Though some of the higher tariffs — with the exception of those on China and some on Mexico and Canada — are on pause, the sweeping 10% tariffs are still in place. And prices are starting to go up.

From brick-and-mortar retailers to online small businesses, many have told Business Insider that the tariffs are forcing them to pass the cost to consumers, and it's not because they want to.

To make matters worse for smaller operations, they do not have the same bargaining power with suppliers or cash flow as larger retailers like Walmart. Suppliers in some manufacturing hubs like China are also seeing ever-shrinking margins to help absorb the tariff shock.

"Small businesses are basically in danger of going out of business because of these high tariffs," Peter Cohan, associate professor of management at Babson College and a venture capitalist, told BI, "And they're trying to preserve the trust of their customers by being very transparent about why they're raising the prices."

"Maybe they're going to lose customers because of the higher rates, but at least being transparent will help reduce the damage," Cohan added.

Larger businesses may also have considered such transparency measures. After reports that Amazon is going to start displaying how much tariffs are contributing to the price of goods on its platform, White House press secretary Karoline Leavitt called the idea a "hostile and political act." The e-commerce giant denied that it planned to display the cost of tariffs, saying its low-price section, Haul, had considered it for some items but then jettisoned the idea.

Chinese fast-fashion giants Shein and Temu — most affected by the 145% tariffs on China and the canceled de minimus exemptions — posted identical customer notices on their websites, saying that that there will be "price adjustments" because their "operating expenses have gone up" under "recent changes in global trade rules and tariffs."

At the end of April, Temu started adding "import charges" at checkout, which can double the price of the item. By May, Temu's main website appeared to have blocked US customers from seeing products shipped from China, and the site is filled with products marked "local" to signify they are at a warehouse in the US.

"Displaying tariff costs directly on product pages can offer strategic advantages for platforms like Temu and Shein," Nasim Mousavi, assistant professor at Georgia State University Robinson College of Business, told BI. "By itemizing tariffs, these platforms frame price increases as the result of external policy rather than their own pricing decisions."

"This transparency can enhance customer trust, reinforce a value-oriented brand image, and foster the perception that the platform is advocating on behalf of the consumer," Mousavi added.

According to a survey of 1,850 US adult citizens conducted between May 2 and 5 by the Economist and YouGov, 75% of those surveyed think that Trump's tariffs will increase their prices, and 61% would like businesses to display how much of a purchase price goes toward paying tariffs.

"The obvious reason why the White House wouldn't want businesses to show tariff costs is because it makes it obvious how much their policy is costing consumers," said Cohan. "It's going to drive down the poll ratings because consumers will be extremely aware of how much more they're paying and who's causing them to pay it."

• Global leaders have reacted to Trump's tariffs with a mix of criticism, concern, and calls for calm.
• Some countries, like China, have chosen to retaliate, which could complicate upcoming talks.
• Negotiations and talks thus far have not yielded concrete trade deals.

Global leaders have reacted to US President Donald Trump's sweeping tariffs with a mix of criticism, concern, and calls for calm.

As of May 7, there is a 10% blanket tariff on all goods imported into the United States, with limited exemptions for the auto industry and some electronics; additional tariffs on 75 countries were paused on April 9.

The US now has up to 245% in tariffs on imports from China, the manufacturing hub, while China has retaliated with a 125% tariff on US goods.

The Trump administration has repeatedly indicated that it is negotiating with various trading partners, including Canada, Mexico, and Japan, but none of those talks have yielded a trade deal thus far.

Trade and international relations experts have previously told Business Insider that the pressure is now on Trump to deliver trade deals before the tariff pause ends 90 days from April 9.

However, on May 6, Trump said he doesn't need to make deals in response to being asked when deals would be made.

"We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said during the White House meeting with Canadian Prime Minister Mark Carney.

On the night of May 7, Trump teased a trade deal framework announcement for Thursday morning.

Here is what world leaders have said about Trump's tariffs and potential negotiations so far.

Canada

Prime Minister Mark Carney called Trump's April 2 tariffs "unjustified," and vowed to defend jobs in Canada "by protecting supply management, doubling revenue protections, and expanding processing capacity."

During a May 6 meeting with Trump at the White House, both leaders signaled that the USMCA — a trade agreement between the US, Canada, and Mexico — could face an overhaul.

"It is a basis for a broader negotiation," said Carney of USMCA while fielding reporter questions with Trump. "Some things about it are going to have to change, and part of the way you've conducted these tariffs has taken advantage of existing aspects of USMCA — so it's going to have to change."

Carney is considered by many as a relative newcomer in politics, but he has decades of experience in finance.

China

Trump and China have thus far disagreed on everything from whether tariffs are justified to who initiated their upcoming trade talks in Switzerland.

"The meeting between Chinese and US senior officials on economic matters was requested by the US side," China's spokesperson for the Ministry of Foreign Affairs, Lin Jian, wrote on X on Wednesday. "Recently, the US has said repeatedly it wants to negotiate with China."

Trump denied that the US had reached out first, and said, "No," on May 7 when asked if he would consider lowering his tariffs on China to help smooth upcoming talks.

China has previously suggested that the US must lower the imposed tariffs first to gain trust.

"China wants to stress: in any potential talks and discussions, if the US doesn't correct its false unilateral tariffs, it means there is a lack of genuine intent, and that will further erode mutual trust," said the spokesperson of China's Ministry of Commerce in a press conference on May 2.

"Talking one way and acting another, or using talks as a cover for coercion and pressure, simply won't work with China," the spokesperson added.

Mexico

Despite facing 25% in tariffs, Mexican President Claudia Sheinbaum has taken a less critical stance than most world leaders.

"There are no additional tariffs on Mexico, and that is good for the country," Sheinbaum said during a press conference on April 3 after Trump announced broad tariffs the day before.

Sheinbaum said Mexico was spared from more tariffs due to "the good relationship we have constructed with the US government, based on collaboration but with respect."

In a subsequent daily briefing on April 7, 2025, Sheinbaum confirmed that Mexico will not impose retaliatory tariffs on the US.

Sheinbaum had also previously successfully negotiated pauses on tariffs imposed on Mexico in February by highlighting her efforts in curbing fentanyl trafficking and deploying 10,000 National Guard troops to the border, issues that were listed by Trump as reasons to place duties on Mexico.

Spain

Spanish Prime Minister Pedro Sánchez called Trump's April 2 tariffs on EU imports a "unilateral attack" and "19th-century protectionism."

Sanchez also promptly announced a €14.1 billion ($15B) aid package for affected industries like aluminum, olive oil, and wine.

"We will overcome this unfair crisis without renouncing our values," Sánchez said. "Europe's hand is outstretched, and it always will be because the American people, beyond their governments, are a friendly people, but that does not mean that we are going to stand by and do nothing."

After Trump paused additional tariffs on 75 trading partners on April 9, Sánchez said the decision could open "a door to negotiation."

Germany

The outgoing chancellor of Germany, Olaf Scholz, said Trump's decisions on tariffs are "fundamentally wrong" and supported Ursula Gertrud von der Leyen, president of the EU Commission, when she called for Europe to react "united, strong, and appropriate."

"This is an attack on a trade order that has created prosperity around the globe," Scholz said at a news conference in Berlin on April 7.

"The entire global economy will suffer from these ill-conceived decisions. Businesses and consumers everywhere in the world, including in the US, will be affected," Scholz added. "The US administration is embarking on a path that can only result in losses for everyone."

German economy minister Robert Habeck said in February that Trump will "buckle under pressure" if Europe bands together.

Conservative leader Friedrich Merz became Germany's new chancellor as of May 7 and has yet to address tariffs.

Australia

Anthony Albanese, the prime minister of Australia and leader of the Labour Party, made it clear that there will be no retaliatory measures against the US.

"It is the American people who will pay the biggest price for these unjustified tariffs," said Albanese in a statement on April 3. "This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth."

Despite being critical of Trump's tariffs, Albanese said there will be "continued constructive engagement" with the US, because the history between the two countries is "bigger than a poor decision."

Japan

Japanese Prime Minister Shigeru Ishiba urged Trump to lower tariffs against Japan in a phone call with Trump on April 7, but said a deal "won't come overnight."

"I've told the president that Japan has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies' investment capabilities," said Ishiba during a news conference after the call.

During Trump's first term as president, the US and Japan signed a bilateral trade deal in 2019 that cut tariffs on US farm goods, Japanese machine tools, and other products while staving off higher duties on Japan's auto exports.

Japanese Prime Minister Shigeru Ishiba said on April 21 that Tokyo has no plan to terminate the trade deal struck in 2019, but will keep voicing "grave concern" over inconsistency between the deal and Trump's latest automobile tariffs.

Ryosei Akazawa, Japan's chief tariff negotiator, has been visiting Washington, DC, in recent weeks.

• The Walt Disney Company hosted its second-quarter earnings call on Wednesday.
• Analysts say a slowdown in travel may drag down Disney stocks.
• The company said it is building a new theme park resort in Abu Dhabi.

The Walt Disney Company says it will open a seventh theme park resort in Abu Dhabi.

Disney, which won't own the park but is licensing the operation to Miral, an immersive experiences company, announced the new destination on Wednesday.

"As our seventh theme park destination, it will rise from this land in spectacular fashion, blending contemporary architecture with cutting-edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways," Disney CEO Bob Iger said in a statement online.

"Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati — an oasis of extraordinary Disney entertainment at this crossroads of the world that will bring to life our timeless characters and stories in many new ways and will become a source of joy and inspiration for the people of this vast region to enjoy for generations to come."

A blog published on Disney's website said the destination would be located on Yas Island.

Disney also reported its second-quarter finances on Wednesday.

Ahead of the earnings call, analysts at Raymond James said that while Disney's travel and leisure experiences helped diversify the company "away from the tumultuous Media space into a secularly growing business," it also made Disney "more cyclical and macro sensitive."

"As such, both the fears around tariffs and a possible recession, along with a slowdown in travel that has already begun, have dragged DIS stock down ~27% in ~6 weeks," wrote Raymond James analysts Ric Prentiss and Brent Penter.

Here are the key numbers for the second quarter compared to analysts' estimates compiled by Bloomberg:

• Earnings per share: $1.45 adjusted vs. $1.20 expected
• Revenue: $23.6 billion vs. $23.05 billion expected
• Entertainment: $10.68 billion vs. $10.48 billion expected
• Sports: $4.5 billion vs. $4.32 billion expected
• Experiences: $8.8 billion vs. $8.76 billion expected

The earnings report came after President Donald Trump on Sunday called for a 100% tariff on foreign-made films.

The announcement confused Hollywood. Industry insiders were concerned the tariffs could hurt the entertainment business, which is still recovering from labor strikes and spending cuts. In a Monday statement, the White House said the Trump administration is "exploring all options."

"Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again," the statement said.

Analysts from Raymond James also said that "Disney's streaming networks are relatively less exposed to international content," and that the company's "emphasis on animation (largely done domestically) further insulates Disney from potential film tariffs."

However, the analysts also wrote that the idea of a film tariff poses "more questions than answers," including whether films partially shot or produced domestically would also face tariffs, and if it could be applied to libraries and movies already produced.

During its first-quarter earnings call in February, Disney reported strong earnings, surpassing Wall Street expectations with adjusted earnings of $1.76 per share and $24.69 billion in revenue.

Despite a slight dip in Disney+ subscribers in the first quarter, the entertainment division received a boost from box office hits like "Moana 2" and "Inside Out 2." In the experiences segment, Disney also saw revenue growth last quarter and has a $60 billion investment plan underway for its parks and experiences over the next 10 years.

• Lehigh County's pension board voted to halt new Tesla stock purchases over Elon Musk.
• Tesla's revenue and shares have significantly declined, drawing widespread shareholder concerns.
• Global pension funds, including some in the Netherlands and Denmark, are divesting from Tesla.

A swing county in Pennsylvania has decided that it will no longer purchase new Tesla stock, citing CEO Elon Musk's political activities and the company's declining shares.

Lehigh County, located toward the east of Pennsylvania with a relatively affluent population that is often a swing county, has a county pension board that oversees $500 million in assets. It is the first known US pension fund to stop purchasing new Tesla stock.

"Elon Musk's choice to become a political figure rather than a customer-focused leader has compromised the Tesla brand," Mark Pinsley, the Lehigh County controller who first introduced a motion to cease Tesla investments, said in a joint statement with organizers of Tesla Takedown.

"Tesla's earnings are down 71% from a year ago, their auto revenues have dropped 20%, and profitability has taken a sharp dive," Pinsley added. "We owe it to our retirees and taxpayers to take a hard look at whether these are wise investments at this time."

On Tuesday, the board not only voted to hit the brakes on new Tesla investments in a 4-2 decision, it has also and directed the county's investment manager to draft a report outlining options to divest its passively managed funds from Tesla.

The Lehigh County Controller's Office and Tesla did not immediately respond to requests for comments.

Pinsley and the retirement board of Lehigh County aren't the only ones concerned about pensions invested in Tesla.

In March, a group of 51 New York State legislators called on the state to divest its $1 billion in Tesla holdings. A top contender in the New York City Comptroller race has pledged to pull the city's $300 billion pension portfolio out of Tesla if elected.

Brad Lander, the current New York City Comptroller, has also been vocal about his dissatisfaction with Musk's leadership, but stopped short of calling for a divestment in his office's latest response to BI in April. The city's five public pension systems held more than 3 million Tesla shares worth about $1.26 billion on December 31, 2024, yet this figure has shrunk to $831 million by March 28, according to the comptroller's office.

In April, eight state treasurers penned a joint letter to Tesla's board to express concern over Musk's lack of focus on Tesla, and the American Federation of Teachers is pressing major asset managers — including BlackRock and Vanguard — to consider divestment.

Beyond the US border, the Netherlands' largest pension fund offloaded its $600 million stake in Tesla in January. Denmark's $20 billion pension fund, AkademikerPension, followed suit in March. Recently, Canada's largest public-sector union also urged national pension funds to cut ties with Tesla, though divestments have yet to happen.

Tesla has been facing growing pressure over Musk's governance of the company and his political activity.

The Tesla Takedown movement that emerged in protest of Musk's involvement in the White House DOGE office is aiming to evolve beyond demonstrations. The movement's next goal is to helping cities and states develop resolutions to divest in "all things Musk," according to a statement on April 22 after Tesla reported earnings.

As of May 6, Tesla stock has declined more than 27% since the beginning of 2025, and its Q1 revenue missed expectations. Musk has announced during the latest earnings call that he will be stepping back from his political activities at the White House.

Marketing experts have previously told BI that Tesla has alienated its core customer base, and that rebranding efforts may require significant concessions from Musk.

"To some degree Musk can say, 'I don't care because I'm so rich and I've got so many other entities that I could afford to lose a lot of money.'" David J. Reibstein, professor of marketing at the Wharton School, previously told BI. "But for the other shareholders who are bailing on the company, that's problematic."

• Palantir Technologies executives praised DOGE during their earnings call after strong results.
• The company beat earnings expectations and raised its full-year revenue outlook.
• Palantir emphasized meritocracy, launching a fellowship for non-college enrollees.

Executives at Palantir Technologies praised DOGE in their latest earnings call on Monday as the company reported its first-quarter earnings.

"This is the right thing for the country — like, we have way too much spend on things that do not work," said Shyam Sankar, CTO and executive vice president of Palantir, when asked if DOGE cuts will impact contracts.

"The government has started to resemble a fine-marbled wagyu — the fake projects that do not deliver and will never deliver crowd out and suffocate the things that could actually be excellent, so we welcome DOGE," Sankar added.

Sanker's sentiments were echoed by Alex Karp, CEO of Palantir, who later said on the earnings call that there needs to be "pressure on the system" to "root out fraud, waste, and abuse and to pen test systems to see if they create more value."

Their comments came after the AI software and defense technologies company delivered earnings that beat expectations on Monday and hiked its full-year revenue outlook to between $3.89 billion and $3.90 billion. Palantir is up 64% this year, mostly benefiting from its key defense contracts.

A government record recently viewed by Business Insider's Rosemarie Ho shows that Immigration and Customs Enforcement signed a $30 million contract with Palantir for software enhancements to its Immigration Lifecycle Operating System, or ImmigrationOS. ICE told BI at the time that it was a modification of an existing contract.

This also isn't the first time Karp has praised DOGE. In an earnings call in February, Karp said that DOGE is a "revolution" and "some people are going to get their heads cut off."

"We love disruption, and whatever is good for America will be good for Americans and very good for Palantir," said Karp.

Palantir was cofounded by its current chairman, Peter Thiel, who, alongside Elon Musk, is known as part of the "PayPal Mafia."

In a Monday letter to shareholders that quotes from St. Augustine, President Richard Nixon, and the New Testament, Karp also wrote that the company's results are "indicative of a revolution" and that it could not have been achieved if the company had "submitted to the conventional managerial model in American corporate life."

"There is no question that both cultures and companies," wrote Karp, "including the one we have built, must over a long period of time be judged 'by their fruits.' Matt. 7:16."