Category: Business

Hong Kong has claimed the top position as the world’s premier destination for managing international wealth, displacing Switzerland from a role it has long held, according to a new report from Boston Consulting Group released Wednesday.

The Asian financial center now manages $2.95 trillion in offshore assets for wealthy clients worldwide, just edging out Switzerland’s $2.94 trillion, marking the first time the European nation has lost its leading position in cross-border wealth management, according to BCG’s 2026 Global Wealth Report.

Hong Kong’s rise was fueled by an influx of Chinese capital and a surge in initial public offerings during 2025, establishing the territory as a massive offshore financial hub.

“Hong Kong is cementing its role as China’s gateway to global markets, though that same concentration ties its trajectory tightly to economic and regulatory developments on the mainland,” the authors said.

The momentum appears likely to continue, with both Hong Kong and Singapore expected to expand their cross-border wealth operations by approximately 9% each year through 2030. Switzerland, meanwhile, is projected to grow at a more modest 6% annually during the same timeframe.

Worldwide, cross-border wealth expanded by 8.4% to reach $15.7 trillion in the past year, powered by robust financial markets and increasing client demand for geographic asset diversification. This growth concentrated heavily among the world’s top 10 financial centers, BCG reported.

However, Switzerland’s broader client base spanning multiple regions may provide stability advantages compared to Asian centers that rely heavily on Chinese economic growth, the report noted.

“Geopolitical uncertainty reaffirms Switzerland’s role as a core global booking centre, attracting flight-to-safety flows from more volatile regions such as the Middle East,” BCG said.

Financial industry sources have indicated that wealthy Middle Eastern clients have been moving assets to Switzerland amid ongoing regional conflicts.

Michael Kahlich, who co-authored the BCG report, emphasized that geographic proximity to clients drives success in wealth management. “What ultimately matters is client proximity,” said Kahlich, noting that two distinct regional hubs are emerging globally – Singapore and Hong Kong serving Asia, while Switzerland, the UK, and the U.S. cater to Western markets.

Recognizing the importance of client access, Swiss financial institutions have established significant operations in major Asian centers, Kahlich noted. “UBS is number one in wealth management in both Singapore and Hong Kong,” he said.

Electric and hybrid vehicle sales powered European auto market growth in April, while traditional gas and diesel car purchases declined, according to new data from the European Automobile Manufacturers’ Association released Wednesday.

Vehicle registrations across the European Union, Britain and the European Free Trade Association climbed 7% in April to reach 1,152,315 units. For the first four months of the year, total registrations were up 4.8% compared to the same period last year.

Electric vehicles, including battery-electric, plug-in hybrid and hybrid models, saw registrations jump approximately 21% and accounted for more than two-thirds of all vehicle registrations. Meanwhile, gasoline and diesel vehicle sales dropped roughly 15% and 17% respectively.

The data reinforces how government incentives, subsidies and rising fuel prices are steering consumers toward cleaner vehicles, particularly in Europe’s largest automotive markets.

This transition is also changing the competitive landscape among car manufacturers.

Tesla saw its third consecutive month of recovery, with April registrations climbing 46.5% to 10,654 units following more than a year of sales declines. However, the American electric vehicle maker still trailed China’s BYD, which recorded a 114.5% surge to 27,008 vehicle registrations.

Chinese manufacturer Chery experienced explosive growth with registrations soaring about 322%. Traditional automakers showed varying performance: Volkswagen increased 3.5%, Stellantis gained 6.7%, Bayerische Motoren Werke rose 2.4% and Mercedes-Benz grew 7%, while Renault dropped 3.6%.

During the first four months of 2024, Italy, France and Germany emerged as the strongest markets for battery-electric vehicles, posting registration increases of approximately 73%, 48% and 41% respectively.

Technology stocks powered gains across Asian markets Wednesday while crude oil prices declined following another record-setting session on Wall Street.

South Korea’s Kospi soared nearly 5% and Taiwan’s main index also posted strong gains as artificial intelligence enthusiasm sparked heavy investment in semiconductor manufacturers and other tech firms.

Tokyo’s Nikkei 225 benefited from technology sector strength, advancing 1.3% to close at 65,816.62. The index crossed above 66,000 during trading for the first time ever.

Shares of computer chip equipment manufacturer Tokyo Electron surged 5.9% while testing equipment producer Advantest climbed 5.7%.

The technology rally followed Micron Technology’s dramatic 19.3% surge, which provided the biggest boost to the S&P 500 after UBS analysts led by Timothy Arcuri increased their 12-month stock price target to $1,625 from $535. Micron finished trading at $895.88.

The analysts predict ongoing robust demand for computer memory products. Micron’s shares have more than tripled this year and the company recently joined the exclusive $1 trillion market value club alongside Nvidia, Apple and Microsoft, each of which has exceeded $3 trillion in value.

Investment enthusiasm for AI technology has driven stock prices in South Korea and Taiwan to new peaks throughout this year.

Seoul’s Kospi climbed 4.9% to reach 8,457.09, establishing a new all-time record as Samsung Electronics shares jumped 7%.

Taiwan’s Taiex advanced 2.7%.

Other Asian markets showed mixed results, with Hong Kong’s Hang Seng declining 0.7% to 25,426.92 and Shanghai’s Composite index falling 0.2% to 4,136.87.

Australia’s S&P/ASX 200 managed a slight 0.1% gain to 8,662.10.

Tuesday’s U.S. trading session produced fresh records as the S&P 500 gained 0.6% to 7,519.12 following the Memorial Day holiday break, reaching a new all-time peak. The Nasdaq composite jumped 1.2% to establish its own record at 26,656.18, while the Dow Jones Industrial Average slipped 0.2% to 50,461.68.

American markets were recovering ground lost to international peers the previous day, when President Donald Trump indicated that discussions were “proceeding nicely” with Iran regarding ending their conflict.

However, uncertainty persists as military operations continue in the area. Financial markets have previously rallied on expectations of a war resolution with Iran, only to see hostilities persist.

Crude oil prices have dominated financial market movements since the United States and Israel launched attacks against Iran in late February. The resulting conflict has shut down the Strait of Hormuz and trapped oil tankers in the Persian Gulf rather than delivering crude to global customers. This situation has elevated oil costs and triggered widespread inflation concerns worldwide.

Expectations for an agreement to restore oil flow patterns boosted shares of companies facing substantial fuel expenses. United Airlines gained 6%, while Norwegian Cruise Line Holdings advanced 4.9%.

Despite market gains, American households remain pessimistic about economic conditions due to rising inflation, with Tuesday’s report showing consumer confidence declining slightly in May, though results exceeded economists’ worst-case projections. This followed Friday’s data indicating U.S. consumer sentiment reached its lowest point on record.

Early Wednesday trading saw Brent crude, the global benchmark, drop 94 cents to $95.73 per barrel. U.S. crude oil prices fell $1.35 to $92.54 per barrel.

Declining oil costs contributed to lower yields in U.S. bond markets, reducing pressure on Wall Street. The 10-year Treasury yield decreased to 4.48% from Friday’s close of 4.56%.

Currency markets showed the U.S. dollar weakening to 159.28 Japanese yen from 159.30 yen. The euro strengthened to $1.1636 from $1.1631.

A major investment firm executive expressed support for large-scale mergers within the mining sector, arguing that bigger companies would attract more mainstream investors and have greater capacity to handle complex projects essential for new supply development.

Speaking at the Australian Financial Review conference in Perth on Wednesday, Olivia Markham highlighted scale as a significant challenge for the mining industry when compared to sectors like technology.

“When you speak to a U.S. generalist investor, they want a large liquid equities to invest in. Bigger companies have better access to capital, they typically trade at a better multiple, and I think within the context of the mining sector, bigger companies have also got the teams and the people to go and build all these complex projects,” she stated.

Markham noted that while the industry has already experienced merger activity, she believes additional consolidation would be beneficial.

“We’ve had a wave of M&A, but I see merit in more,” she commented.

“If there are sensible deals to be done that can make companies bigger, I see merit in doing that,” she continued.

The comments come after two major mining companies, Glencore and Rio Tinto, considered a potential merger earlier this year that would have created a $240 billion entity, combining Glencore’s marketing operations and copper holdings with Rio Tinto’s operational capabilities to meet growing copper demand.

Rio Tinto ultimately declined the proposal, stating insufficient cost benefits at the time. However, industry observers suggest Glencore CEO Gary Nagle remains interested in the Anglo-Australian company and might pursue renewed discussions if the Swiss miner’s stock performance continues to exceed Rio Tinto’s.

BlackRock maintains ownership positions in both companies as well as top global miner BHP.

Crude oil markets experienced a downturn Wednesday as investors monitored diplomatic developments between the United States and Iran following escalating tensions that have disrupted efforts to reopen a crucial shipping route.

Brent crude futures dropped $1.42, representing a 1.43% decline to $98.16 per barrel at 0253 GMT. Meanwhile, U.S. West Texas Intermediate crude decreased $1.66, falling 1.77% to $92.23 per barrel.

The energy markets had surged Tuesday following U.S. military operations targeting Iranian positions, dampening weekend optimism that both nations might reach a resolution to end ongoing hostilities.

Iranian officials stated Tuesday that American forces had broken a ceasefire agreement by conducting strikes near the disputed Strait of Hormuz. U.S. officials characterized their military actions as defensive measures.

After an April ceasefire concluded three months of conflict, representatives from both countries suggested they were making headway in discussions about reopening the Strait, which serves as a vital passage for international oil and gas shipments. However, escalating tensions now jeopardize those diplomatic efforts.

Tensions increased further when Israel intensified bombing operations in Lebanon Tuesday, adding additional strain to regional peace initiatives.

Despite these setbacks, reports that several LNG tankers have successfully navigated through the strait recently have boosted hopes that the waterway could reopen in the near future, potentially increasing global energy supplies.

Memory chip manufacturer SK Hynix achieved a historic $1 trillion market valuation Wednesday, becoming the latest semiconductor company to reach this significant milestone amid an artificial intelligence-fueled market surge.

The South Korean company’s stock price soared by as much as 14.9%, pushing its market capitalization to a record 1,680 trillion won ($1.12 trillion) and helping drive the country’s main stock index to an all-time high.

SK Hynix now joins its competitors Samsung Electronics and Micron Technology in the exclusive trillion-dollar club. Samsung first crossed this threshold on May 6, while Micron achieved the milestone just one day before SK Hynix on Tuesday.

The remarkable growth stems from intense demand for advanced memory chips essential for AI processing systems, including those created by companies like Nvidia. This heightened demand has created supply shortages and pushed prices significantly higher, creating substantial profits for leading semiconductor manufacturers.

Memory chip pricing has experienced dramatic increases, doubling during the first quarter compared to the previous period. Industry forecasts predict prices could climb an additional 63% in the current quarter as AI data center requirements strain supplies typically allocated for smartphones, laptops, and vehicles.

This achievement makes South Korea notable as the first nation outside the United States to have multiple companies reach trillion-dollar valuations. Only three Asian corporations have joined this exclusive group, including TSMC.

The semiconductor rally propelled South Korea’s main stock index up as much as 5.09% to 8,457.09, setting a new record. The rapid gains were so significant they triggered automatic trading restrictions designed to temporarily pause algorithmic transactions.

Samsung and SK Hynix now represent half of the index’s total market value following Wednesday’s surge. The benchmark index has become the world’s top performer during the global AI boom, climbing 91% this year after gaining 76% in the previous year.

“We expect memory chip demand to continue exceeding supply by 2028 to keep price levels high,” Kim Young-gun, an analyst at Mirae Asset Securities in Seoul, said in a report, raising target prices for SK Hynix and Samsung by 18.8% and 14.6% to 3.8 million won per share and 550,000 won, respectively.

SK Hynix shares were trading around 2.3 million won on Wednesday.

Samsung’s stock also climbed as much as 8% to 323,000 won Wednesday, reaching a fresh record high. The gains came as unionized workers in South Korea approved a tentative wage agreement, preventing a potential strike that could have disrupted global chip production.

Investment firm UBS announced Tuesday it had more than tripled its price target for Micron, citing “the structural changes AI has driven to the entire memory complex.”

Year-to-date performance has been exceptional across all three companies: Samsung shares have increased 149%, SK Hynix has gained 215%, and Micron has surged 245%.

Recent weeks have seen American retail investors pour billions into a new exchange-traded fund providing exposure to Samsung and SK Hynix stocks.

New South Korean leveraged ETFs connected to both semiconductor companies experienced strong debuts Wednesday, posting double-digit gains as chip stocks continued their rally.

The Korea Financial Investment Association’s educational website temporarily went offline Wednesday as investors rushed to complete required courses for trading leveraged ETFs, according to local media reports.

Investment banking giant Goldman Sachs announced Tuesday it has boosted its year-end 2026 projection for the S&P 500 stock index to 8,000, marking an increase from its earlier forecast of 7,600.

The financial firm attributed the revised outlook to improved earnings projections after companies delivered an exceptionally strong first-quarter reporting period.

According to the brokerage, ongoing earnings expansion is expected to drive additional gains in the stock market.

The chief executive of Nvidia declared Wednesday that Taiwan serves as the central hub of the artificial intelligence revolution and predicted the island nation will remain the globe’s primary technology production center for years ahead.

Jensen Huang made these remarks during a celebration event in Taipei announcing the semiconductor company’s upcoming Taiwan headquarters facility. He revealed that construction will commence this year, with the facility expected to begin operations in 2030.

Employees represented by unions at Samsung Electronics have voted to accept a disputed compensation package that prevents a potential 18-day work stoppage while creating significant wage disparities across different divisions of the technology giant.

Representatives from two labor unions announced Wednesday that 74% of the 62,616 employees who participated in the vote supported the compensation agreement.

Samsung’s stock price jumped 6% following the news, with additional gains driven by investor enthusiasm surrounding artificial intelligence technology that has boosted semiconductor company valuations.

The settlement, brokered by government mediators following five months of contentious negotiations, has brought widespread relief throughout South Korea, where Samsung represents approximately 25% of the nation’s total exports.

Developed amid intense pressure to match the exceptionally high compensation packages offered by competing chipmaker SK Hynix, the agreement primarily favors employees working in the company’s memory chip operations, which have experienced significant profit growth due to massive global AI investments. Some employees in this division are expected to earn bonuses approaching $416,000 during the current year.

Employees in Samsung’s additional chip manufacturing units will earn smaller but still significant bonuses, while workers in consumer electronics departments will receive considerably less compensation in comparison.

“The atmosphere is pretty gloomy and many of us lost motivation,” said one chip foundry worker in Pyeongtaek, declining to be identified.

“It really is an ironic situation — being depressed despite receiving more money.”

According to the settlement terms, all semiconductor workers will earn a standard cash bonus equivalent to 50% of their yearly wages. Samsung will additionally allocate 10.5% of its chip division’s operating profits for special bonuses, distributed as company stock. One-third of these shares become tradable immediately, another third becomes available after one year, and the final portion after two years.

Bonus distributions depend on Samsung achieving specific profit targets. The company must generate more than 200 trillion won in yearly operating profits from 2026 through 2028, and 100 trillion won per year from 2029 through 2035.

Samsung’s annual profits for this year are projected to reach 300 trillion won ($200 billion), representing the company’s highest earnings ever and far exceeding its previous record of 58.9 trillion won established in 2018.

Major international corporations anticipate that artificial intelligence will speed up innovation and intellectual property development at their Indian technology facilities, highlighting the nation’s expanding role as a center for technological advancement as AI transforms workplace operations.

Leaders from companies including Epsilon (part of Publicis Groupe), Kimberly-Clark, and Daimler Truck informed Reuters that automation is enabling employees at their global capability centres to shift away from basic tasks and concentrate on sophisticated projects while developing proprietary technologies.

“The number of IPs, the patents and the trade secrets created by (GCCs in India) is already increasing,” Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, said at a Reuters summit. “AI would accelerate it.”

India’s technology centers have evolved significantly from their original purpose as affordable back-office operations, transforming into innovation hubs for international businesses. However, AI capabilities that can increasingly perform tasks like software development have raised questions about the future direction of these facilities.

Despite global economic uncertainty, India’s substantial pool of AI-trained professionals and competitive cost structure continue attracting investment to these centers.

According to a study by Nasscom and consultancy Zinnov, Indian global capability centres earned approximately $98.4 billion in revenue during the previous fiscal year, reaching industry forecasts four years earlier than expected.

Another Nasscom study indicated patent applications in India increased by 11.3% to more than 90,000 during fiscal 2024, with nearly half originating from multinational corporations, although it didn’t specify contributions from global capability centres.

Company leaders noted that Indian centers’ contributions are likely underrepresented, since much of their intellectual property gets filed through parent companies in the United States and Europe.

“At Kimberly-Clark, we do not do any patent filing from India. Whatever we do, we do through (the) U.S. because of the difficulty here,” said Deena Dayalan, global head of digital operations and cloud transformation at the consumer goods maker.

Dayalan explained that patent applications in India require five to six months, roughly twice the duration needed in the U.S. The approval process takes several additional years, he noted.

According to Nasscom, India employs significantly fewer patent examiners compared to the U.S., causing processing delays. The industry organization has also stated that expensive legal fees and unclear procedures discourage companies from filing patents domestically.

“At the Indian Patent Office, backlog and manpower shortages have long slowed the pace of examination and grant,” said Harsh Kaushik, a New Delhi-based IP lawyer.

However, he noted that recent efforts to digitize more Patent Office operations and implement centralized application distribution have streamlined the filing process. The office has also increased video hearing usage, making the system more accessible for applicants.

Company executives also emphasized that the solid infrastructure established by Indian global capability centres would support continued expansion in high-value activities.

“I see more and more IP work happening (here),” said Pratik Nath, managing director of Epsilon India.

NEW YORK — Donald E. Newhouse, who led one of America’s largest family-owned publishing companies and previously served as board chairman of The Associated Press, has passed away at age 96, according to his family. He died Tuesday at his residence in New Jersey.

Throughout his lengthy career, Newhouse held the position of president at the Star-Ledger in Newark, New Jersey, and led Advance Publications’ newspaper division, guiding the organization through the transition to digital media.

“You reveled in his company. He filled you with energy and humor when you felt doubtful and weak,” said Anna Wintour, the global editorial director of Vogue and Conde Nast’s chief content officer.

“He was scrupulous about not interfering in editorial business, but if you turned to him for counsel, he invariably offered judicious advice,” she said in an obituary released Tuesday night by the Newhouse family.

A New York resident, Newhouse managed the 35 newspapers under Advance Publications for almost five decades. The media company was established by his father, Samuel Irving Newhouse Sr., in 1922. His elder brother, S.I. Newhouse Jr., led the company and managed Conde Nast magazines until his death in 2017.

Louis D. Boccardi, retired president and CEO of the AP, described Newhouse as an exceptional chairman for the cooperative.

“His voice was never the loudest in the room, but it was often the wisest,” Boccardi said. Newhouse was naturally private, but behind that exterior, Boccardi said, was a generous individual who felt comfortable anywhere and remained curious about everything.

“He could come across as self-effacing and deferential, but in Don’s skilled hands those were qualities that made him an enormously strong and effective leader,” Boccardi said. “You don’t often see the adjective ‘warm’ attached to a titan of industry, but it applied to him.”

Born in 1929, Newhouse was recognized for avoiding public attention. When a reporter once asked him to identify the biggest risks he had taken during his career, he responded: “Inviting your questions.”

The typically private Newhouse did emerge publicly when he assumed leadership of the Newspaper Association of America from 1993 to 1994 and later became chairman of the AP board of directors from 1997 to 2002. He had been an AP board member for nine years prior to becoming chairman.

“He was a smart and shrewd businessman but as thoughtful and kind a man as you’ll find. Being in his presence was always a joy,” said Doug Clifton, editor of one of Newhouse’s papers, The Plain Dealer in Cleveland, from 1999 to 2007.

Newhouse studied at Syracuse University but left before graduating to join the family’s newspaper enterprise. He made regular visits to his publications but delegated operational authority to his publishers.

“Each of our newspapers operates independently, with publishers who are strong, who set policy for their individual organizations and who have the authority and responsibility of carrying out the policies they set,” he said in 1993 when assuming leadership of the newspaper association.

Newhouse was recognized for investing resources to ensure papers obtained the finest stories. Jim Willse, editor of The Star-Ledger in Newark, N.J., from 1995 until 2010, said he would provide “us all the resources we needed to make The Ledger really special.” Willse said Newhouse had a passion for newspapers and those who worked in journalism.

“He especially enjoyed it when we’d have a story about some politician caught with his hand in the cookie jar, or a spicy feature about stuffed shirts behaving badly,” Willse said.

Newhouse’s strategy of investing in quality journalism while maintaining editorial independence resulted in numerous achievements, including several Pulitzer Prizes.

Many of those publications were able to flourish and stay profitable due to their market dominance, but Newhouse acknowledged his awareness of what he termed the “dramatically changing media landscape” and evolving news consumption habits.

“The 15th-century revolution was epitomized by the printing of the Gutenberg Bible; ours by Ted Turner’s cable news network and by web-based news sites — news in real time from anywhere to everywhere,” he said in 2004 at the rededication of a communications school named after his father at Syracuse University.

Three years later, he told one of his papers, The Post-Standard of Syracuse, N.Y., that newspapers can survive “by producing content that is relevant, interesting, accurate and entertaining for newspapers and the internet.”

However, the publications eventually faced financial difficulties.

Advance was recognized in the industry for a commitment that non-union employees would retain employment despite economic challenges or technological changes. In 2009, the company announced this guarantee would be eliminated.

The company also shifted away from daily publication for several papers. In 2012, it announced that the Post-Standard; The Times-Picayune in New Orleans, Louisiana; the Patriot-News in Harrisburg, Pennsylvania and the Birmingham News, the Press-Register of Mobile and The Huntsville Times, all in Alabama, would end daily publication and would only offer print editions on Wednesdays, Fridays and Sundays. These changes resulted in hundreds of job cuts.

“His conservative approach left both the papers and its employees somewhat unprepared for the realities of the internet,” said Thomas Maier, who wrote a 1994 biography of the family.

Newhouse’s eldest son, Steven, led the company’s expansion into Internet and mobile platforms. Steven Newhouse currently serves as co-president of Advance Publications.

“My dad spent his life in the newspaper business and was devoted to it, built it up and enjoyed many good years. When it became more challenging, he was first in line to work through, finding solutions to keep the local journalism franchise going,” he said.

Newhouse is also survived by another son, Michael, daughter Katherine Mele and grandchildren. His wife, Susan, died in 2015.

Consumer price increases in Australia came in below expectations during April, helped by government reductions to fuel taxes, according to new data released Wednesday. However, underlying inflation measures continued climbing as elevated oil costs impacted the broader economy.

The Australian Bureau of Statistics reported its monthly consumer price index climbed 0.4% in April compared to the prior month, while the yearly rate dropped to 4.2% from the previous 4.6%.

Economists had projected a monthly increase of 0.6% and an annual rate of 4.4%.

The trimmed mean core inflation gauge rose 0.3% for the month, meeting expectations while pushing the annual rate to 3.4% – the highest level since late 2024 and well above the Reserve Bank of Australia’s target range of 2% to 3%.

The softer headline numbers caused the Australian dollar to drop 0.1% to $0.7157, while three-year bond futures gained 5 ticks to 95.49. Markets reduced the probability of a fourth rate increase from the RBA in August to 40% from 51%.

“We expect headline inflation to peak at 4.9% in Q2 before falling below the 3% ceiling of the RBA’s target band in mid-2027,” said Harry McAuley, economist for Oxford Economics Australia.

“Considered alongside the jump in the unemployment rate in March, we are firm on our view that the rate hike cycle is on hold.”

The central bank has implemented three rate increases this year, bringing rates to 4.35% to combat an energy shock driven by war, completely unwinding policy easing from 2025. Central banks globally have adopted more aggressive stances, with the European Central Bank expected to raise rates next month and the Federal Reserve considering abandoning its easing position.

Unemployment unexpectedly rose to a 4-1/2 year peak of 4.5% in April, potentially indicating the job market may be softening enough to prevent additional rate hikes. Financial markets are pricing in one additional increase to 4.6% after the RBA indicated it now has room to evaluate how the Iran conflict develops.

The United States has targeted boats and missile installations in Iran while Tehran has accused Washington of breaking a delicate ceasefire that has lasted nearly seven weeks. Oil and gas shipments through the Strait of Hormuz – which handles 20% of global energy transport – have been reduced to minimal levels.

Wednesday’s data revealed automotive fuel costs dropped 7% during the month after surging 32.8% previously, as the government cut fuel excise taxes in half starting in April.

Elevated oil prices were impacting products and services with significant freight and transportation expenses. Postal service prices surged 12.4% while new home construction costs increased 4.7% compared to the previous year.

Union workers at Samsung Electronics in South Korea have voted to accept a proposed wage agreement on Wednesday, preventing a potential work stoppage that could have disrupted worldwide semiconductor production and harmed South Korea’s economic stability.

Approximately 74% of the 62,616 employees who participated in the voting process supported the proposed agreement, according to union officials.

The vote concluded a contentious five-month disagreement regarding performance bonuses connected to the company’s thriving artificial intelligence chip operations, which had caused significant divisions among employees at the technology giant.

Union representatives and company management had previously reached a preliminary accord last Wednesday after emergency intervention by South Korea’s Labour Minister, occurring just hours before organized workers were set to begin their planned work stoppage.

However, a smaller union representing the corporation’s consumer electronics employees announced on Tuesday that it had petitioned a South Korean court to prevent voting on a wage agreement that mainly advantages their counterparts in the company’s semiconductor operations.

According to the approved agreement’s provisions, Samsung will establish a new decade-long special performance bonus program for its semiconductor operations, along with an average salary increase of 6.2%.

Currency markets watched the Japanese yen closely on Wednesday as it traded near weakness levels that have previously prompted government action, while investors evaluated potential escalation risks in the Iran conflict.

The yen edged slightly higher to 159.20 against the U.S. dollar during early Asian trading, but stayed dangerously close to the 160 threshold that many analysts consider a trigger point for official intervention to strengthen Japan’s currency.

Market uncertainty intensified following U.S. military action against Iran, which dampened hopes for a quick resolution to hostilities and the reopening of the strategically important Strait of Hormuz shipping route.

U.S. Secretary of State Marco Rubio indicated that reaching a negotiated settlement to end the conflict could “take a few days.”

Bank of Japan Governor Kazuo Ueda adopted a more aggressive stance on Wednesday, warning that war-related oil price shocks might persist in an economic climate already marked by elevated inflation expectations and increasing wages.

Financial markets are currently pricing in approximately 70% probability for a quarter-point interest rate increase when the Bank of Japan meets June 15-16.

Matthew Ryan, head of market strategy at Ebury, noted the competing pressures facing Japan’s currency. “While the threat of further intervention and growing bets in favour of a June hike from the Bank of Japan should be supporting the yen, Japan’s high exposure to the energy crisis is keeping the currency under pressure,” he explained.

Ryan added that upcoming Tokyo consumer price data on Friday will receive significant attention from traders. “We doubt that anything will derail a June hike from the BOJ at this stage, although a soft set of figures here could ease bets for tightening beyond then.”

The U.S. dollar remained relatively stable against other major currencies after gaining 0.15% the previous day, as measured by the dollar index which tracks performance against six rival currencies including the yen.

Other Pacific currencies showed mixed movements, with the Australian dollar rising 0.15% to $0.7177 ahead of important consumer price data that could influence interest rate expectations. The New Zealand dollar recovered with a 0.16% gain to $0.5846 after declining 0.6% on Tuesday, with the Reserve Bank expected to maintain current rates despite some economists predicting potential increases by September’s end.

The euro showed little movement, holding steady at $1.1638 against the dollar.

Despite Wall Street reaching new peaks, two out of three Americans are reducing their spending as economic pressures mount, according to recent survey data.

Consumer confidence took a hit this month, dropping as fuel costs remained elevated and inflation continued to burden households. This economic reality stands in stark contrast to the stock market’s climb toward record territory. The Conference Board reported Tuesday that its consumer confidence measure fell 0.7 points to 93.1 in May, marking the first drop following three consecutive months of improvement. Public opinion polling indicates Americans have grown critical of President Trump’s economic approach, which could spell trouble for Republicans as midterm elections approach. Fuel costs have jumped to a national average of $4.49 per gallon from $2.98 just before the conflict started in late February, staying at or above $4.50 per gallon throughout most of May.

In corporate news, PayPal finds itself battling to protect its digital payment territory as competitors chip away at its market position. The payment processing pioneer, operating for nearly three decades, faces mounting pressure from Apple, Shopify, and emerging buy-now-pay-later platforms including Affirm and Klarna. The company’s shares have dropped almost 40% over the last year and approximately 80% across five years. Leadership changes include a new CEO and restructuring into three separate business divisions. Industry analysts worry that PayPal failed to capitalize on its established reputation, creating openings for rivals to capture market territory. Company officials plan to brief investors on recovery plans in the near future.

Transportation workers in Massachusetts achieved a groundbreaking victory as drivers for ride-sharing platforms including Uber and Lyft established the nation’s first statewide union for such services. Labor organizers hailed this achievement as the most significant private-sector unionization success since Ford automotive workers organized in 1941. Drivers cite increasing expenses for fuel, insurance, and vehicle upkeep, combined with unexpected account suspensions, as factors creating financial hardship. Union supporters also point to growing concerns about autonomous vehicle technology threatening employment. This success may serve as a blueprint for similar organizing efforts underway in California and Illinois.

Political tensions emerge among Democrats regarding personal stock transactions as the party develops its anti-corruption platform against President Donald Trump for upcoming midterm races. Primary contests nationwide feature Democrats questioning opponents’ individual trades and personal wealth to establish credibility with voters. Public polling reveals widespread disapproval of insider trading in government and support for stronger anti-corruption measures. These discussions have blurred traditional party divisions, with some moderate members challenging progressive opponents over previous stock transactions. Progressive members question whether Democrats recently emphasizing this issue are genuinely committed to addressing money’s influence in politics.

Ferrari introduced its inaugural fully electric vehicle to Italy’s President and Pope Leo XIV on Tuesday, though the launch received mixed reactions from automotive experts and financial markets. The luxury carmaker’s new Luce EV debuted as other premium brands scale back their electrification goals due to declining demand in certain global markets. The Luce delivers 1,000 horsepower, accelerates to 100 kilometers per hour in 2.5 seconds, and provides over 530 kilometers of range using four electric motors, one per wheel.

Energy company BP removed its chairman citing significant concerns about governance standards, oversight, and conduct issues. Albert Manifold’s departure came suddenly and without warning, despite his appointment just last year. The board appointed member Ian Tyler as temporary chair Tuesday, taking effect immediately, while beginning the search for a permanent replacement. Manifold assumed the role in October, succeeding Helge Lund, after serving as CEO of CRH plc from January 2014 through December 2024. London-based BP ranks among the world’s five largest oil exploration and production companies by revenue and profit.

Wall Street extended its record-setting streak Tuesday as trading resumed following Monday’s holiday, with markets catching up to global gains from the previous day when President Donald Trump indicated negotiations with Iran were progressing well toward ending their conflict. The S&P 500 advanced 0.6% to establish a new all-time high, while the Nasdaq composite surged 1.2% to its own record. The Dow Jones Industrial Average slipped 0.2% from its peak. Micron Technology drove gains, with shares more than tripling year-to-date, as the company joins Wall Street’s latest $1 trillion valuation club. Bond market activity showed Treasury yields declining.

The Congressional Black Caucus urged major American corporations to resist Republican-led redistricting initiatives aimed at eliminating majority-Black congressional districts. A letter distributed Tuesday to over 250 companies asks them to denounce what lawmakers characterize as attempts to suppress Black voting power. Multiple states have moved to eliminate districts represented by Black Democratic members following a recent Supreme Court decision that significantly weakened Voting Rights Act protections. President Donald Trump initiated the redistricting campaign by encouraging Texas legislators to redraw maps favoring Republican candidates.

Financial advisors suggest that overly conservative retirement spending may actually harm retirees’ financial security and quality of life. Many Americans struggle with determining appropriate retirement income levels after being responsible for both building savings and managing withdrawals. The fear of running out of money often leads to excessive caution that may prevent retirees from enjoying their savings. Financial experts recommend that retirees establish personal goals to motivate appropriate spending, similar to how goals motivated saving during working years.

NEW YORK, May 26 – Major stock indices reached unprecedented closing levels on Tuesday, driven by enthusiasm surrounding artificial intelligence technology that helped overcome concerns about ongoing Middle East diplomatic efforts and recent military actions involving Iran.

Technology companies focused on semiconductors powered the market gains, with Micron experiencing a remarkable 19% surge that pushed the company’s market capitalization to $1 trillion for the first time. This milestone came after UBS analysts raised their price target for the stock from $535 to $1,625.

Strong corporate earnings reports and renewed investor confidence in artificial intelligence investments have propelled equity markets upward despite international tensions with Iran. Market participants are now focusing on potential public offerings from major private AI companies, including SpaceX.

“For those of us that have been working that long, the tech rallies we’ve been seeing this year are reminiscent of the boom at the end of the 1990s,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

“It’s also possible that some of the lessons that were learned after the tech bubble burst over 25 years ago will prevent the same thing from happening again.”

Investors found reassurance in statements from U.S. Secretary of State Marco Rubio, who indicated that reaching an agreement with Tehran to end hostilities could “take a few days.” Meanwhile, Iran’s Tasnim news agency reported that Tehran is pursuing the release of $24 billion in frozen Iranian assets held overseas.

“Even though we don’t have an end of the war yet, there’s a very high likelihood the situation will resolve itself in a peaceful fashion sooner rather than later,” said Adam Sarhan, chief executive of 50 Park Investments.

“But the reality is that earnings are expected to grow even with high inflation. The economy is still growing, and the market is a mirror of the economy to a large extent.”

The Dow Jones Industrial Average dropped 118.02 points, or 0.23%, closing at 50,461.68. The S&P 500 climbed 45.65 points, or 0.61%, finishing at 7,519.12, while the Nasdaq Composite jumped 312.21 points, or 1.19%, to end at 26,656.18.

All three major indices – the S&P 500, Nasdaq, and Russell 2000 – achieved intraday record highs during Tuesday’s session, highlighting the momentum behind the current market advance.

Oil prices surged approximately 4% following U.S. military operations in Iran, creating additional uncertainty about prospects for a swift resolution to the conflict and potential impacts on shipping through the Strait of Hormuz.

Qualcomm shares climbed nearly 4.5% after reports emerged that the company secured a chip supply agreement with ByteDance, TikTok’s parent company. Marvell Technology finished 6% higher, while the Philadelphia SE Semiconductor Index achieved a new all-time high with a 5.5% gain.

As the current earnings season nears completion, first-quarter profit growth is projected at 29% compared to the same period last year, significantly higher than the 16.1% estimate from a month earlier, according to LSEG data released Friday.

On the New York Stock Exchange, advancing stocks outnumbered declining ones by a 2.47-to-1 margin. The exchange recorded 627 new highs against 90 new lows.

Nasdaq trading showed 3,078 stocks rising while 1,785 declined, with advancing issues leading by a 1.72-to-1 ratio.

The S&P 500 registered 42 new 52-week highs and one new low, while the Nasdaq Composite logged 185 new highs and 70 new lows.

Trading volume across U.S. exchanges totaled 18.85 billion shares, compared to the 18.71 billion average over the past 20 trading sessions.

Cybersecurity company Zscaler announced Tuesday that its projected fourth-quarter earnings would fall short of Wall Street expectations, as the firm grapples with mounting competition in the cloud security sector and more cautious business spending on security technologies.

The company’s stock price tumbled 15% during after-hours trading following the announcement, which highlighted the increasingly competitive landscape in cybersecurity services.

Zscaler operates primarily in the Secure Access Service Edge market, known as SASE, which merges network infrastructure and security functions into one unified platform designed to connect users, devices and applications regardless of location.

The SASE sector represents one of cybersecurity’s most rapidly expanding areas, fueled by ongoing cloud migration and the artificial intelligence revolution that continues reshaping network security frameworks.

However, Zscaler must contend with pressure from bigger competitors like Palo Alto Networks, which are aggressively pursuing greater market control through their own comprehensive platform solutions.

For the upcoming fourth quarter, the cloud security provider anticipates revenue ranging from $875 million to $878 million, falling below the $878.6 million average projection from analysts surveyed by LSEG.

The company does expect to exceed profit expectations, projecting adjusted earnings of $1.08 to $1.09 per share for the fourth quarter, surpassing analyst estimates of $1.03.

Zscaler’s third-quarter performance showed revenue of $850.5 million, which topped analyst predictions of $835.4 million.

During the third quarter, the company’s total operational costs climbed approximately 25% to $687.5 million, up from $547.5 million during the same period last year.

Athletic apparel company Lululemon Athletica is close to reaching a settlement agreement with company founder Chip Wilson that would resolve their ongoing proxy battle, according to sources with knowledge of the negotiations.

The proposed agreement under discussion would expand the company’s board of directors by adding two individuals chosen by Wilson, with plans to identify an additional mutually acceptable director at a later time, sources who are not authorized to speak publicly about the private negotiations revealed. The deal would also provide Wilson with regular access to incoming chief executive officer Heidi O’Neill, according to the sources.

Wilson, who established the company in 1998 and currently holds an 8.6% ownership stake, would agree to refrain from publicly or privately criticizing Lululemon for approximately two years under the proposed terms. His ownership percentage would also be limited to roughly 10%, the sources indicated.

However, sources emphasized that reaching a final agreement is not certain.

Neither company representatives nor Wilson were available for immediate comment.

These latest negotiations follow the recent collapse of earlier attempts to resolve what has become one of this year’s most notable proxy battles. After those talks failed, both sides exchanged sharp criticisms. The company stated in a regulatory filing last week that Wilson, who departed Lululemon’s board in 2015, holds “outdated perspectives” regarding the company’s strategic direction and has “troubling conflicts of interest.”

For several months, Wilson has voiced criticism of the company, claiming it has lost its “cool” factor and expressing concerns about current management practices.

Wilson initiated a proxy fight late last year and has spent recent months attempting to convince shareholders to support his three director candidates rather than the company’s three board members up for election at next month’s annual shareholder meeting.

The athletic wear company has experienced declining sales in North America, with its stock price dropping more than 60% over the past year as it faces increased competition from brands like Alo and Vuori.

With a market valuation approaching $15 billion, the company’s stock recently traded around $127, significantly down from its peak near $510 reached in late 2023.

Despite these challenges, the company has been preparing for a new phase by naming O’Neill, who developed Nike’s women’s business division, as its new CEO. The board has also welcomed former Levi Strauss CEO Chip Bergh and former Unilever chief growth and marketing officer Esi Eggleston Bracey as new directors.

Teri List, previously chief financial officer at Gap, joined the board in 2024. Directors David Mussafer and Shane Grant are scheduled to leave the board at the upcoming annual meeting.

O’Neill, who has a noncompete clause with Nike, is set to begin her role in September after being unanimously selected by the board, according to sources familiar with the selection process and investors who requested anonymity.

Major U.S. stock indexes climbed to record territory Tuesday as enthusiasm for artificial intelligence technology overshadowed worries about Middle East diplomatic efforts, which have been complicated by recent American military actions against Iran.

Technology companies focused on semiconductors drove the market gains, with Micron Technology surging over 19% to reach a $1 trillion market capitalization for the first time. The rally came after UBS analysts boosted their price target for the stock from $535 to $1,625.

Strong corporate earnings and renewed investor confidence in AI-related investments have pushed American stock markets higher despite ongoing tensions with Iran. Market participants are now watching for initial public offerings from major private artificial intelligence companies, including SpaceX.

“For those of us that have been working that long, the tech rallies we’ve been seeing this year are reminiscent of the boom at the end of the 1990s,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

“It’s also possible that some of the lessons that were learned after the tech bubble burst over 25 years ago will prevent the same thing from happening again.”

Investors found encouragement in statements from U.S. Secretary of State Marco Rubio, who indicated that an agreement with Tehran to stop the conflict could “take a few days.” Meanwhile, Iran’s Tasnim news agency reported that Tehran is pursuing the release of $24 billion in Iranian assets frozen internationally.

“Even though we don’t have an end of the war yet, there’s a very high likelihood the situation will resolve itself in a peaceful fashion sooner rather than later,” said Adam Sarhan, chief executive of 50 Park Investments.

“But the reality is that earnings are expected to grow even with high inflation. The economy is still growing, and the market is a mirror of the economy to a large extent.”

By 2:13 p.m. EDT, the Dow Jones Industrial Average dropped 175.28 points, or 0.35%, to 50,404.42. The S&P 500 climbed 40.23 points, or 0.54%, to 7,513.70, while the Nasdaq Composite advanced 265.39 points, or 1.01%, to 26,609.36.

The S&P 500, Nasdaq, and Russell 2000 all achieved new intraday peaks Tuesday, highlighting the momentum behind the current market upswing.

Oil prices also moved higher, with Brent crude futures jumping approximately 4% Tuesday following U.S. military strikes in Iran. The action has increased uncertainty about whether negotiators can quickly reach an agreement to end the conflict and restore normal shipping through the Strait of Hormuz.

Other technology stocks also posted gains, with Qualcomm climbing 3.6% after Bloomberg News reported the company secured a chip supply agreement with TikTok owner ByteDance. Marvell Technology increased 6%, while the Philadelphia SE Semiconductor Index rose 5% to reach an all-time high.

The S&P 500 information technology sector led all categories with a 1.5% increase.

As the quarterly earnings reporting period nears completion, first-quarter profit growth is projected to reach 29% compared to the same period last year, up from the 16.1% estimate from a month earlier, according to LSEG data from Friday.

On the New York Stock Exchange, stocks moving higher outnumbered those declining by a 2.27-to-1 margin. The exchange saw 504 new highs and 82 new lows.

Nasdaq trading showed 3,040 stocks rising and 1,761 falling, with advancing issues leading decliners by a 1.73-to-1 ratio.

The S&P 500 registered 40 new 52-week highs and one new low, while the Nasdaq Composite recorded 174 new highs and 65 new lows.

The nation’s highest court on Tuesday turned down Meta’s request to block a legal challenge claiming the company’s Facebook and Instagram platforms damage teenage users’ wellbeing, marking another setback for social media giants facing mounting legal pressure.

Meta Platforms Inc. had sought Supreme Court intervention after Vermont’s top court permitted a 2023 lawsuit brought by the state’s attorney general to proceed. The tech giant confronts comparable legal actions from multiple states nationwide, all claiming the company deliberately created habit-forming platform elements.

The corporation maintained it should not face litigation in Vermont’s courts since neither the business nor its app development has direct connections to that state. Vermont responded that the platforms’ substantial teenage user base within state borders provides adequate legal grounds for court authority.

In a standard brief order without explanation, the Supreme Court refused to consider the appeal. This ruling follows previous courtroom defeats for Meta and YouTube in social media dependency cases in California and New Mexico.

These legal challenges emerged following a multi-state investigation led by attorneys general from both political parties, including Vermont. Media coverage highlighting Meta’s internal research revealed the corporation understood Instagram’s potential negative effects on adolescents, particularly teenage girls, regarding mental wellness and self-image concerns. Company research indicated that 13.5% of teen girls reported Instagram worsened suicidal thoughts, while 17% said the platform aggravated eating disorder symptoms.

Data from the Pew Research Center shows nearly every teenager between 13 and 17 years old in America uses social media platforms, with approximately one-third reporting “almost constant” usage.

Meta has responded by stating it has already rolled out numerous resources designed to help teenagers and their families, and indicated willingness to collaborate with states on establishing youth social media usage guidelines.

WASHINGTON – Federal aviation authorities announced Tuesday they are seeking a $165,000 penalty against Alaska Airlines for reportedly permitting passengers who appeared intoxicated to board aircraft.

According to the Federal Aviation Administration, the violations allegedly happened across 11 separate flights spanning from February 2024 through February 2025. Federal rules strictly forbid airlines from allowing anyone who seems to be under the influence to board planes, the agency noted.

Alaska Airlines had not provided a response to requests for comment as of Tuesday.

Ride-share drivers working for companies like Uber and Lyft in Massachusetts achieved a historic milestone Tuesday by establishing the nation’s first statewide union for app-based transportation workers, representing a significant breakthrough in efforts to organize gig economy employees.

This groundbreaking achievement could serve as a blueprint for similar organizing campaigns underway in states like California and Illinois, where labor advocates are increasingly focusing on app-based industries as workers also face concerns about the rapid advancement of autonomous driving technology.

Currently, Massachusetts does not allow fully autonomous commercial rides operating without human supervision.

The union certification was made possible following voter approval of a 2024 ballot initiative that established an unprecedented system enabling ride-share drivers to form unions and engage in collective bargaining while maintaining their status as independent contractors. Union organizers indicate the group could eventually include nearly 70,000 drivers across the state.

With drivers holding signs and chanting in front of the Massachusetts State House’s distinctive gold dome, labor representatives characterized this achievement as the most significant private-sector organizing success since autoworkers at Ford formed their union in 1941.

Jean Fredo, an Uber driver with more than seven years of experience, expressed hope that unionization would deliver improved wages, enhanced protection against unexpected account suspensions, and greater job security for drivers.

“With the union, it will not feel like we’re working for nothing,” he said in French through a translator. “Now the money will not only stay in the billionaire’s pockets. The money will actually come to the workers who work very hard.”

Fredo explained that while he initially valued the flexibility and schedule control that came with driving for Uber, allowing him to remain available for his family, conditions gradually deteriorated. He found himself putting in longer shifts while earning less as fuel and vehicle maintenance expenses increased.

Workers can also suddenly lose platform access with minimal notice or appeal options, he noted.

“I live with stress — always scared to lose my app,” Fredo said. “This is not a way to live.”

Upon learning about the organizing campaign, Fredo immediately participated and subsequently helped recruit hundreds of additional drivers at airports and meeting locations throughout the Boston region.

During the celebration, Fredo raised his fists triumphantly while displaying a photograph of his family to the assembled crowd.

“This is my family,” he said. “I’m fighting for a better life for them — just like everyone else is fighting for their families. My dream is to save and send my kids to college, and I believe we will get there.”

Advocates point to increasing vehicle expenses, unpredictable compensation, and unclear app algorithms as sources of driver dissatisfaction, particularly among those working extended hours while covering their own fuel, insurance, maintenance, and vehicle depreciation costs. Both Uber and Lyft maintain that drivers appreciate the flexibility of app-based employment and have resisted initiatives that might reclassify workers or modify the industry’s operating structure.

The union drive has developed alongside the accelerating growth of self-driving vehicle technology. While Massachusetts permits autonomous vehicle testing on public streets, existing rules mandate a licensed human operator remain in the vehicle. Completely driverless commercial services without human supervision are prohibited throughout the state.

Waymo has launched driverless taxi services in cities such as San Francisco, Los Angeles, and Phoenix. This expansion has faced criticism regarding traffic interference, safety reviews, and problems with stuck or malfunctioning vehicles, while also increasing concerns among ride-hailing drivers about their employment prospects.

Julie Blust of the App Drivers Union noted that drivers nationwide maintain regular communication about evolving industry conditions, including autonomous vehicle expansion in California.

“We now know what’s happening there,” she said. “Drivers are seeing pay go down, and there are real concerns about safety and job security as automatic vehicles expand.”

Union organizers increasingly view collective bargaining as a method for drivers to jointly address the growth of autonomous vehicle companies, she explained.

“Drivers now have an official organization and can speak with one voice about what’s happening in this industry,” Blust said. “We cannot let billions of dollars leave Massachusetts and go to Silicon Valley. That money feeds people’s families, that money pays the rent. That money goes into small businesses.”

The negotiation process is occurring as Massachusetts officials review comprehensive new ride-hailing regulations proposed this spring covering safety requirements, driver supervision, and electric vehicle fleet proposals. Shortly before the union certification, Uber cautioned in a blog post that certain proposals might increase costs and limit driver flexibility, while supporters argued the changes aim to improve safety and oversight.

In a Tuesday email statement, Uber indicated it would collaborate with the union and state officials as negotiations proceed.

“As we enter this next phase, we will work closely with the ADU, our broader driver community, and the Department of Labor Relations,” the company said. “Together, we will ensure that driver flexibility and hard-won benefits remain the foundation of our progress.”

Lyft also announced plans to participate in the new bargaining framework.

“As this new process moves forward, we’re committed to engaging in good faith,” the company said in a statement. “Lyft does well when drivers do well, and we’ll stay focused on helping drivers succeed while keeping rideshare affordable and dependable for everyone who counts on it.”

App-based transportation drivers in Massachusetts have achieved a historic milestone by establishing the nation’s first officially recognized ride-share union, according to state officials and labor organizers.

The Massachusetts Department of Labor Relations granted certification to the newly created App Drivers Union on Friday, authorizing it to represent approximately 70,000 ride-share drivers who work as independent contractors throughout the state for companies including Uber and Lyft.

At a Tuesday rally in Boston featuring drivers and labor advocates, Massachusetts Governor Maura Healey, a Democrat, declared: “It changes the game for ride-share workers across this country.”

This certification became possible after Massachusetts voters endorsed a ballot initiative in November 2024 that established an innovative legal structure enabling drivers working for app-based companies to organize and engage in collective bargaining regarding compensation and benefits.

The ballot victory concluded a prolonged national dispute over the employment classification of ride-share drivers and whether they should receive the benefits and wage safeguards typically afforded to employees rather than independent contractors.

Federal labor law under the National Labor Relations Act does not grant organizing rights to Uber and Lyft drivers since it only applies to traditional employees.

However, the Massachusetts legislation permitted drivers to establish a union after gathering signatures from a minimum of 25% of active drivers statewide—a threshold that union organizers successfully achieved. The union receives support from 32BJ SEIU, a Service Employees International Union affiliate, along with the International Association of Machinists and Aerospace Workers.

IAM President Brian Bryant addressed Tuesday’s rally, stating: “The workers who built these billion-dollar corporations deserve a union contract and a seat at the table.”

Bryant and fellow union officials highlighted Massachusetts as a significant labor achievement while organizing campaigns advance in additional states.

California ride-share drivers obtained unionization rights through legislation that Democratic Governor Gavin Newsom signed in October. Illinois is currently considering comparable legislation.

Neither Lyft nor Uber opposed the Massachusetts ballot initiative. Lyft announced Tuesday its commitment to participating constructively as the Massachusetts process continues.

“Lyft does well when drivers do well, and we’ll stay focused on helping drivers succeed while keeping rideshare affordable and dependable for everyone who counts on it,” the company stated.

Uber declined to provide comment when contacted.

Prior to the 2024 vote, Massachusetts Attorney General Andrea Joy Campbell negotiated an agreement with Uber and Lyft mandating they implement a $32.50 per hour minimum wage standard for Massachusetts drivers and pay $175 million to settle allegations they incorrectly classified drivers as independent contractors instead of employees under state regulations.

WASHINGTON, May 26 – Federal banking regulators under Republican President Trump are implementing the most extensive changes to financial institution oversight since the 2008 financial crisis. The agencies argue that bank examiners have become overly focused on procedural matters and minor violations, and should instead concentrate on significant financial threats. However, critics contend these modifications will collectively undermine the financial system’s stability.

SHIFTING FOCUS TO ‘MATERIAL’ THREATS

The Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) have collectively elevated the bar for supervisory findings by directing examiners toward “material financial risks” rather than documentation and procedural matters that don’t present immediate dangers to a bank’s safety and stability.

Within this transformation, the agencies have ceased monitoring reputational risk, a measure that financial institutions had long criticized for providing examiners excessive discretion to penalize them based on subjective criteria. Trump has also personally criticized banks for using reputational risk management as justification to refuse services to conservatives, allegations the banks reject.

Critics argue the modifications have diminished examiners’ authority to address issues that may not constitute material financial risks initially, but could eventually create problems – including control failures, governance concerns, or other procedural matters.

LIMITING ‘MRA’ DIRECTIVE USAGE

To guarantee examiners concentrate on material threats, the agencies have limited the application of “matters requiring attention (MRAs),” confidential orders requiring banks to address issues or potentially face enforcement action.

For more than ten years, MRAs have served as examiners’ main instrument for overseeing banks, but financial institutions claim they are often applied to trivial matters. Examiners may now only issue MRAs for material financial risks. For other concerns, they can provide non-binding “observations,” according to the agencies.

When a bank voluntarily identifies an issue that would typically have resulted in an MRA and starts addressing it, bank examiners have been instructed to provide an observation instead.

The OCC and FDIC have also suggested regulations that would limit the definition of “unsafe and unsound” practices that examiners should monitor.

ELIMINATING REDUNDANCY, DEPENDING ON BANKS’ INTERNAL AUDITING

Banking regulators have instructed examiners to coordinate more effectively with one another to reduce redundant efforts. The Fed has instructed staff to depend to the “fullest extent possible” on examination work conducted by other agencies when they serve as the bank’s primary supervisor, and to perform their own examinations only when it isn’t “reasonably possible” to rely on another agency’s work.

Likewise, the Fed has informed examiners that as long as a bank’s internal audit function is adequate, they should depend on those auditors’ conclusions to determine whether an issue has been resolved, rather than performing their own evaluation.

PRIVATE RATING SYSTEMS

All three agencies are also restructuring the private rating system examiners use to evaluate banks, where institutions with poor scores may face penalties or operational restrictions. The “CAMELS” rating assesses banks across multiple factors, but the industry has criticized the framework as overly subjective. Regulators have suggested updating these measures to re-emphasize financial risk factors while de-emphasizing what banks describe as more vague elements such as management quality.

MODIFYING THE APPEALS SYSTEM

The FDIC and OCC are restructuring their process for reviewing bank appeals regarding issues like MRAs, regulatory ratings, and other matters to make them more organized, independent, and transparent, the agencies state. Banks claim the current appeals process lacks transparency, with excessive involvement from examiners who made the initial decision. Both agencies have established new, independent bodies to resolve disputes.

At the Fed, banks have been informed that if they believe their examiners aren’t following the new standards, they should report this to senior Fed personnel.

RESTRICTING HORIZONTAL EXAMINATIONS, INSPECTION INTENSITY

Another supervisory method being phased out is the “horizontal review,” where bank examiners investigate a group of similar banks regarding the same issue. Banks had long criticized such reviews as potentially becoming fishing expeditions, with examiners searching for problems without specific cause. The new Fed guidelines direct staff to stop horizontal reviews of large banks unless Fed leadership deems them critically necessary.

American consumer confidence took a hit this month as fuel costs remained steep and rising prices continued to strain household budgets, creating a stark disconnect with Wall Street’s strong performance that has pushed markets close to all-time highs.

The Conference Board reported that its monthly consumer confidence measure dropped by 0.7 points to reach 93.1 in May, marking the first monthly decrease following three consecutive months of improvement.

This decline mirrors findings from the University of Michigan’s separate consumer sentiment survey, which hit an all-time low this month. Rising fuel costs combined with increased food expenses have intensified inflationary pressures, which have grown faster than typical wage increases in recent months, effectively reducing the buying power of most Americans. Public opinion polling indicates Americans have grown increasingly critical of President Trump’s economic policies, a trend that could spell trouble for Republicans as they approach the midterm elections.

Fuel costs have jumped dramatically to a national average of $4.49 per gallon, up from $2.98 just before the conflict started in late February, and prices have remained at or above $4.50 per gallon throughout nearly all of May.

The digital payment giant that pioneered online transactions is now fighting to maintain its position against an army of competitors threatening its dominance.

PayPal, which helped create the online checkout process almost 30 years ago, is confronting unprecedented challenges as its primary revenue source — customers using its platform for online purchases — shows minimal expansion. Company leadership has issued stark warnings to shareholders that major overhauls will be necessary to address mounting difficulties.

The payment processor that became synonymous with early internet commerce success has watched competitors steadily erode its market position. Apple, Shopify, installment payment providers such as Affirm and Klarna, along with person-to-person transfer applications like Cash App and Zelle, have significantly impacted PayPal’s dominance, especially over the last five years.

These competitive pressures have devastated PayPal’s market value, with shares dropping almost 40% over the past year. The stock, which surged during the pandemic when Americans shifted to online shopping for essentials, has crashed approximately 80% over five years as Wall Street grew concerned that PayPal squandered opportunities to capitalize on its brand recognition and market leadership, allowing rivals to claim territory that may prove difficult to reclaim.

Wall Street’s worries center not on current profitability, though PayPal has cautioned that 2026 earnings will decline from the prior year. Instead, concerns focus on the company’s ability to expand and protect its market position amid intensifying competition.

The company’s first-quarter financial results revealed that branded checkout — PayPal’s most lucrative segment by profit margin — expanded merely 2%. Despite company explanations citing European market slowdowns and reduced discretionary spending, such minimal growth in a rapidly expanding sector spooked investors, sending shares down nearly 8%.

These business pressures triggered significant executive changes. The board removed CEO Alex Chriss in February, installing Enrique Lores, HP Inc.’s former president and CEO who also served on PayPal’s board. Lores unveiled a cost-reduction strategy involving company reorganization into three units and increased artificial intelligence integration. During May’s shareholder gathering, he promised to present investors with the turnaround strategy “in a few months.”

Apple and its Apple Pay platform represent PayPal’s most formidable challenge. Apple launched Apple Pay in 2014, enabling customers to save virtual payment cards on their devices for online transactions. The technology company also built contactless payment capabilities into iPhones and Apple Watches, allowing users to complete in-store purchases.

While PayPal established itself through checkout buttons across merchant websites, this functionality has lost relevance as consumers can save payment details on their phones and complete transactions using fingerprints or facial recognition, industry experts noted.

This shift has caused users to move away from PayPal as their preferred payment option. In 2019, PayPal commanded approximately 9% of U.S. and global e-commerce, while Apple Pay held 3% market share, according to UBS analysts. Six years later, Apple has surpassed PayPal as the leading checkout choice, with market share projected to grow further as Apple extends Apple Pay access to non-iOS users.

The rising popularity of installment payment companies like Klarna and Affirm also poses challenges. Although PayPal now provides similar services through its pay-in-four option and extended monthly payment plans, it trails major competitors including Affirm, which was established by PayPal founder Max Levchin.

“PayPal has had a lot of trouble evolving from being just a way to pay on your desktop computer,” said Sanjay Sakhrani, an analyst who covers credit cards and payment methods at investment bank Keefe Bruyette & Woods.

Looking ahead, investors fear that continued underperformance in the branded checkout division could create additional problems for PayPal. Wall Street analysts have speculated whether Venmo or Braintree might be separated from the parent company, pointing out that Lores previously oversaw HP’s division into two distinct companies.

PayPal’s stock experienced a brief surge earlier this year following unverified reports that payment company Stripe was considering acquiring all or portions of PayPal.

The popular cookie brand is joining forces with the world-famous K-pop group BTS for a marketing collaboration that taps into consumers’ increasing appetite for international flavors.

The parent company of the cookie brand, Mondelez, announced Tuesday that BTS-inspired cookies will launch online June 1 and arrive in retail locations June 8. The special edition treats feature purple wafers as a tribute to the musical group’s iconic color and will be available in over 80 global markets, representing the brand’s largest collaboration ever.

The musical group created 13 unique designs for the wafer surfaces, featuring the seven band members’ names and a drawing of the light stick that supporters wave during BTS performances.

The cream filling inside the sandwich cookies was developed to replicate the flavor of hotteok, a sweet Korean street snack consisting of warm pancakes filled with brown sugar.

“For Oreo to be the first snacking brand we’ve collaborated with globally is a huge honor. We ate them as kids, we eat them in the studio and now Oreo is helping us share a taste of home with the world,” BTS said in a statement.

The BTS-themed cookies will have a limited production run. The Chicago-headquartered company Mondelez declined to reveal the quantity being manufactured.

The company’s chief marketing and sales officer, Martin Renaud, explained that the BTS cookies achieve a careful balance between honoring Korean traditions and cuisine while maintaining the brand’s established taste profile.

“You want to be authentic, you want to be differentiated and live an experience. But when you are Oreo, you need to be pleasing a large group of people,” Renaud told The Associated Press. “You cannot come up with something that will be liked only by 20% of the population because it would alienate some of our customers.”

According to Renaud, the company invested approximately two years in creating the BTS cookie, ultimately testing three potential flavors before choosing hotteok.

“I think Korean food is an incredible cuisine. I’m French, maybe I should not say that, but I believe it,” Renaud joked.

The BTS cookies debut during a period when shoppers are showing greater enthusiasm for trying new and genuine international cuisines and tastes. Food and beverage consulting firm Datassential reports that U.S. dining establishments offering global flavors — particularly Asian and South American varieties — have been expanding their market presence since 2019. Meanwhile in Europe, West African restaurants are experiencing growing popularity.

Social media platforms are driving this international flavor movement. More than 11,700 TikTok videos currently use the hashtag “hotteok.” Exploring global foods or attempting to prepare them offers a low-risk and affordable method to experience different cultures, according to Russell Zwanka, who leads the food marketing program at Western Michigan University.

“You can experience the world without spending $2,000 on a ticket,” Zwanka said.

Food delivery apps and specialty markets like the Asian supermarket chain H Mart have simplified access to international cuisine for consumers, he noted.

“People have a much more proactive stance on trying to find flavors they can attribute to certain regions of the world,” Zwanka said. “I think that’s beautiful. It’s way the world should be.”

The cookie brand has previously collaborated with Coca-Cola, singer and actress Selena Gomez, and the K-pop girl band Blackpink, among other partnerships. The company also releases region-specific limited flavors, such as cherry sakura in Japan and red bean paste in China.

BTS has extensive experience with food industry partnerships. The group collaborated with McDonalds in 2021 for a worldwide meal campaign across 50 countries. BTS also joined with Korean food manufacturers Paldo and Hy to create Arih, a product line of noodles and beverages available at Walmart.

Renaud noted that collaborations and creative, unique flavors help the cookie brand attract consumers beyond traditional family demographics.

“We want to be making sure we also keep our older children and Gen Zs and keep the brand up to date,” he said.

The company is currently developing future partnerships, though Renaud indicated they may not match the scale of the BTS collaboration.

“We’re not obsessed to be more, more, more, more, markets. I think if we can, yes, let’s go for it,” he said. “But the key point is we need to be really resonating with the local culture.”

A Colorado-based mining company announced plans Tuesday to go public with a potential valuation reaching $2.32 billion as it seeks funding to reopen mineral extraction operations in Idaho.

Sunshine Silver Mining & Refining Company, headquartered in Denver, plans to sell 20 million shares at prices ranging from $13.50 to $16.50 per share, which could generate up to $330 million in proceeds. The funds would support efforts to restart an Idaho facility that previously extracted silver, antimony and additional minerals.

The company plans to begin trading on the New York Stock Exchange using the ticker symbol “SSMR.”

Three major financial institutions – Morgan Stanley, Scotiabank and BMO Capital Markets – will serve as the primary underwriters managing the stock offering.

A Florida-based insurance company announced Tuesday its plans to go public with a potential company valuation reaching $1.16 billion, as it looks to benefit from improved market conditions following recent state reforms.

Safepoint, headquartered in Tampa, along with some of its financial backers, plans to generate as much as $283.3 million through the sale of 16.7 million shares, with each share expected to cost between $15 and $17.

The Sunshine State has historically presented challenges for property insurance companies due to frequent lawsuits and vulnerability to natural catastrophes, but conditions have improved after legislative changes implemented in 2022.

These regulatory changes have led to a substantial reduction in the number of litigation-related claims, which has attracted new companies to enter the insurance marketplace.

Established in 2013, Safepoint operates as a property and casualty insurance provider that specializes in serving coastal regions including Florida and Louisiana.

Investment manager I Squared Capital announced Tuesday its acquisition of 10 data center facilities from Cogent Fiber in a $225 million cash transaction, representing the firm’s continued investment in artificial intelligence infrastructure.

The investment company revealed plans to utilize these properties as the foundation for a new U.S. data center operating platform, with an additional $1 billion commitment planned for improvements, expansion projects, and future acquisitions.

This transaction, covering nine different locations, highlights the industry’s movement away from large, centralized data centers designed for model training toward facilities positioned closer to end-users for AI inference operations.

The difference between model training and inference represents the contrast between “learning” and “doing.”

“Location, power, and connectivity are the three variables that determine a data center’s long-term value, and these facilities have all three in markets where new supply is severely constrained,” stated Gautam Bhandari, co-founder and managing partner at I Squared Capital.

The transaction encompasses approximately 53 megawatts of power capacity and roughly 259,000 square feet of colocation space spread across nine U.S. markets, including Chicago, Atlanta and Houston.

Cogent Fiber operates as an indirect wholly owned subsidiary of internet service provider Cogent Communications Holdings. The parent company’s stock has declined nearly 16% in 2026.

I Squared Capital focuses on investing in and managing digital infrastructure, with data centers among its key areas of interest.

In the previous month, the investment manager reached an agreement to acquire a majority ownership position in Elea, recognized as one of Brazil’s largest carrier-neutral data center platforms.

A Chinese self-driving car company says a government safety investigation has not disrupted its business operations, even as the review was triggered by problems with a competitor’s autonomous vehicles.

Pony.ai’s leadership announced Tuesday that the company has successfully navigated a national safety evaluation that began after rival firm Baidu’s Apollo Go robotaxis unexpectedly shut down while operating on streets in Wuhan during late March, according to Bloomberg’s reporting.

The government examination centers on how companies and municipal governments guarantee safe autonomous driving operations, explained James Peng, who co-founded Pony.ai and serves as its chief executive officer. Speaking with Reuters, Peng confirmed that his Guangzhou-headquartered firm has finished all required assessments and its operations “has not been impacted.”

Peng emphasized that the safety evaluation did not involve revoking existing permits, allowing the company to remain “in the process of launching into more cities” while planning fleet growth.

The autonomous vehicle firm announced plans to increase its robotaxi fleet to 3,500 vehicles before year-end, up from its current count of more than 1,700 cars. This represents a 16.7% increase from its previous goal of 3,000 vehicles, the company stated.

Financial projections also improved, with the company now anticipating full-year robotaxi revenue to surpass 3.5 times 2025 levels, higher than its earlier prediction of 3 times growth.

First quarter results showed the company’s best performance yet for its primary robotaxi business, with revenue climbing nearly five times to $8.6 million during the three-month period. Overall company revenue jumped 145% compared to the previous year, reaching $34.3 million.

“The whole industry still faces a lot of uncertainties, but at least we see strong momentum in fleet deployment both domestically and internationally,” Peng stated.

However, the company’s financial losses expanded to $53.5 million in the first quarter, compared to $37.4 million during the same period last year. The firm did achieve its first profitable quarter in Q4, mainly due to investment returns.

Pony.ai joins domestic competitors Baidu and WeRide in operating some of the world’s largest robotaxi services while working to establish international operations.

According to Counterpoint senior analyst Murtuza Ali, major cities throughout Europe, Asia, and the Middle East will likely see American, Chinese and regional companies competing for testing opportunities, service launches and market dominance.

The United Kingdom may become a significant competitive arena, with Baidu examining possibilities through partnerships with Uber and Lyft, while Alphabet’s Waymo and British startup Wayve also pursue that market.

When asked about UK opportunities, Peng called it “a very interesting market” but said his company is evaluating the possibility while “not confirming anything yet.”

Television broadcasting company Tegna announced Tuesday the selection of Patrick Paolini, a longtime Fox television executive, as its new chief executive officer while the company navigates legal obstacles preventing a massive merger deal.

The new CEO brings over 30 years of local television broadcasting leadership to his role at Tegna, most recently working at Fox Television Stations where he has overseen advertising sales operations as executive vice president starting in 2023.

Key details about the leadership change:

• Paolini assumes the CEO position beginning June 1, where he will oversee day-to-day business operations and local news programming while answering to Tegna’s board of directors.

• His previous role included overseeing Fox’s Washington, D.C. television properties — WTTG FOX 5 and WDCA FOX 5 Plus.

• “He brings deep expertise in the broadcast television industry, major-market station management, and high-quality local news, along with a proven track record of driving revenue growth across linear and digital platforms,” Tegna’s board of directors said.

• The new executive replaces Mike Steib, whose background includes leadership roles at online art marketplace Artsy and digital media firm XO Group.

• The previous week, Nexstar petitioned a federal appeals court to expedite review of a lower court’s decision halting the merger, claiming the postponement has resulted in tens of millions in unrecoverable financial losses.

• Tegna controls 64 local television stations across 51 markets nationwide, and combining with Nexstar would establish the nation’s largest broadcast station network, serving 80% of American homes.

British petroleum company BP has dismissed its chairman following what the company described as significant concerns regarding “important governance standards, oversight and conduct.”

The removal was sudden and came as a surprise, given that Albert Manifold had only been named to the role last year.

On Tuesday, BP’s board immediately installed Ian Tyler as interim chair, effective right away.

The energy firm announced it would start searching for a permanent replacement.

Headquartered in London, BP ranks among the world’s five largest oil production and exploration corporations by both revenue and profit, earning it “supermajor” status.

The energy giant operates in approximately 60 nations worldwide.

Stock prices dropped 6% in pre-market trading on the New York Stock Exchange.

A leading French financial institution is reinforcing its digital security infrastructure as artificial intelligence technology creates new challenges for cybersecurity professionals, according to the bank’s top technology executive.

Marc Camus, chief information officer at the French bank, explained that financial institutions across Europe are worried about falling behind American banks in accessing cutting-edge AI-powered cybersecurity tools, which could create significant operational gaps.

The executive emphasized that the velocity and magnitude of AI systems’ ability to detect security weaknesses represents a major transformation for cybersecurity professionals, noting that the current challenge is fundamentally practical in nature.

“There is a lot of noise in the market on Mythos and the fact that Mythos is accessible or not accessible for some banks, particularly European banks,” Camus stated on Tuesday during a joint media briefing with French startup Mistral.

The Mythos model from Anthropic, introduced in April, was created to detect system vulnerabilities with extraordinary speed and scope, sparking concerns that such technology might enable broader cyber threats against banking institutions.

“The game changer is the speed at which we have to address vulnerabilities and the scale. There are lots of them discovered at once,” Camus explained.

“So we need to prepare ourselves for that and that’s something we are really working on very, very hard,” he continued.

Security professionals now must handle and resolve numerous vulnerabilities simultaneously.

The bank and Mistral announced they have broadened a collaboration that started in 2023, during the startup’s early development phase.

Corentin Petit, Mistral’s global head of solutions, indicated the company was concentrating on performance measures important to regulated sectors like banking.

“We will optimise on benchmarks that matter for our customers in the industry,” Petit commented regarding Mythos, noting additional information would be provided later.

The bank employs Mistral technology for internal systems and customer virtual assistants in France and Belgium, plus compliance operations at its Belgian Fortis division, according to Sophie Heller, chief transformation officer at the bank’s retail and consumer division.

Within the investment banking section, additional implementations assist with document processing, equity analysis and internal information access for thousands of employees, said Charles Holive, chief AI officer at the division.

Engineers and data specialists from Mistral work directly alongside bank teams to jointly develop and expand these initiatives.

The chief executive of JW Therapeutics stated Tuesday that China’s pharmaceutical sector remains unaffected by the government’s increased oversight of technology-related business deals.

International pharmaceutical companies are increasingly looking to China-developed experimental treatments as they work to reduce expenses before patent protections expire, with industry experts forecasting biotech licensing agreements could reach new highs this year.

However, Chinese authorities recently forced U.S. technology company Meta to reverse its acquisition of artificial intelligence company Manus, valued at more than $2 billion, as part of stricter reviews of American investments in Chinese companies working on advanced technologies. This action has created concerns across multiple industries.

“For us, everything is business as usual. Our cross-border collaborations, especially in CGT (cell and gene therapies), are particularly dependent on international cooperation. So far, I have not seen any impact,” Chief Executive Leo Tian told Reuters.

The company, whose majority owner is American pharmaceutical firm Bristol Myers Squibb through its subsidiary Juno Therapeutics, focuses on cell immunotherapy treatments. Tian noted that JW was “actively seeking cooperations” with international companies for products in its development pipeline.

Previous reporting indicated that China’s decision to block Meta’s purchase of Manus could increase risks for international investors considering investments in advanced technology companies with Chinese connections.

Energy company BP announced Tuesday the immediate termination of Chairman Albert Manifold, stating the decision was based on what the company called “unacceptable” governance oversight and conduct issues.

Manifold had taken on the chairman position in October, though his appointment came with less support than typically seen for such roles. During his tenure, he had been advocating for the company to accelerate its return to oil and gas investment strategies.

The oil and gas giant has named Ian Tyler to serve as temporary chairman as the company begins its search process for a permanent leader to fill the position.

A German gas engine manufacturer announced Tuesday its plans to go public on US stock exchanges, seeking a company valuation of as much as $20.25 billion as it capitalizes on investor interest in businesses that support artificial intelligence infrastructure.

Innio, headquartered in Munich, Germany, plans to raise up to $2.03 billion through its stock market debut by selling 75 million shares at a price range of $24 to $27 each. The offering is being conducted by AI Alpine, the company’s main shareholder, which is jointly owned by investment funds operated by Advent International and Abu Dhabi Investment Authority.

While investors continue to express concerns about artificial intelligence’s potential to disrupt various industries, attention has turned to the “picks and shovels” that support the technology’s expansion, including power infrastructure and data center supply chains.

The company produces gas engines through its Jenbacher and Waukesha product lines for essential infrastructure including data centers, and has experienced growth from increased electricity needs connected to AI development.

Equipment orders for data centers increased approximately 16 times from 2020 to 2025 for the company.

American private equity firm Advent International separated General Electric’s distributed power division to create Innio as an independent entity through a $3.25 billion transaction in 2018. The sovereign wealth fund ADIA acquired a minority ownership position in the company in 2023.

During Advent’s ownership period, Innio has expanded its presence in North America, increasing investments in US-based manufacturing and assembly operations.

Goldman Sachs, J.P. Morgan and Morgan Stanley serve as the primary underwriters for the stock offering. The company plans to trade on the Nasdaq exchange using the ticker symbol “INIO.”

The childhood fear of monsters under the bed eventually fades, but for many adults, it’s replaced by a different kind of anxiety: the worry about having enough money to last through retirement.

This anxiety makes sense considering that today’s Americans must not only accumulate retirement funds but also figure out how much they can safely withdraw each year. Many people feel unprepared for this challenge, particularly since miscalculating could mean financial hardship later in life.

New research from Morningstar’s Behavioral Insights Group reveals that half of all retirees choose very basic methods for determining their annual spending, including calculating current living costs, withdrawing only dividend payments, or basing decisions on required minimum distributions.

While a simple, hands-off strategy might seem like a wise response to financial uncertainty, these basic methods fail to consider important factors like total assets, personal objectives, or economic changes such as rising prices. The result is typically an inflexible and excessively cautious spending plan.

Surprisingly, despite widespread concerns about running out of money, retirees with at least average asset levels typically spend less than they safely could. Many actually watch their wealth grow rather than shrink throughout retirement. This pattern remains consistent even when considering retirees who plan to leave inheritances or expect lengthy retirement periods.

The problem affects even those using more sophisticated approaches like safe withdrawal rates. “Even the retirees who spend in line with our ‘base case,’ which in 2025 meant taking 3.9% initially and inflation-adjusting withdrawals each year thereafter, will tend to have significant remaining balances after 30 years of withdrawals,” says Christine Benz, Morningstar’s director of personal finance and retirement planning.

For these retirees, the real risk isn’t poverty, but rather failing to fully enjoy the rewards of their lifetime of work.

You might be spending less than you could afford if you:

1. Use basic, passive approaches like withdrawing only dividends and interest, calculating based on current lifestyle needs, or taking only required minimum distributions.

2. Notice your retirement account balance stays flat or continues growing each year.

3. Put off necessary or desired purchases that you can reasonably afford.

If this sounds familiar, you’re not alone. It’s understandable to think, “The worst outcome would be depleting my savings, and I can prevent that by sticking to this basic spending approach.” But developing a more customized strategy for retirement income could help you avoid underspending and create a more fulfilling retirement experience.

The research indicates that many retirees need personal motivation to embrace more sophisticated income planning methods. Just as goals helped drive your saving habits during your working years, retirement goals can encourage appropriate spending.

To establish your retirement objectives, start by identifying the values you want to honor throughout this life stage. A framework like the PERMA-V model can help you clarify what’s most important to you. Then, create financial targets that support the lifestyle you envision.

For instance, you might discover that you value time outdoors because hiking makes you feel joyful and connected to your surroundings. You could then create a list of the top 10 national parks you’d like to explore and aim to visit them all within the next decade. This goal gives you an exciting reason to use your retirement savings in a way that aligns with your values.

With this new motivation, reconsider your retirement spending approach. Do your current basic strategies support these new objectives? If not, you might explore other slightly more complex guidelines for retirement spending, such as a safe withdrawal rate.

If tackling more sophisticated strategies alone feels overwhelming, working with a financial adviser can help you determine how to access your retirement funds while achieving your goals.

Taking a more active role in planning your retirement spending might seem intimidating, but don’t let that fear prevent you from living the retirement you’ve envisioned.

A quantum computing company with ties to industrial giant Honeywell announced Tuesday its plans to go public, seeking a market valuation that could reach $12.7 billion as investors show growing interest in advanced computing technologies.

Quantinuum, headquartered in Broomfield, Colorado, revealed plans to generate as much as $1.05 billion through the sale of approximately 21.05 million shares priced between $45 and $50 each. The company’s previous private funding round valued the business at $10 billion.

The move comes as public stock offerings gain fresh momentum, with investors backing companies in sectors considered strategically crucial such as artificial intelligence infrastructure, defense technologies, and other critical innovations, even amid ongoing geopolitical tensions.

The quantum computing firm was established in 2021 following its split from Honeywell and subsequent combination with Cambridge Quantum. Industrial giant Honeywell’s CEO, Vimal Kapur, serves as chairman, while former Intel executive Rajeeb Hazra leads the company as chief executive.

Investment banking firms J.P. Morgan and Morgan Stanley will serve as the primary underwriters for the offering. Once public, Quantinuum plans to trade on the Nasdaq stock exchange using the ticker symbol “QNT.”

An Australian mining company announced Tuesday that it’s taking a fresh look at its Louisiana manufacturing facility as electric vehicle market conditions continue to evolve.

Element 25, which produces manganese for battery manufacturing, revealed it’s reassessing its strategy for creating high-purity manganese sulphate monohydrate (HPMSM) at its planned U.S. location. The mineral serves as a crucial component in electric vehicle batteries, and the facility was being built with backing from General Motors, Stellantis, and the U.S. Department of Energy.

The mining company disclosed it’s currently negotiating new terms with General Motors following project delays that caused missed delivery deadlines. Similar conversations are underway with Stellantis about their partnership agreement.

“The landscape has shifted materially over the past 12 months, and it is essential that our strategy reflects current demand signals as well as the emerging chemistry mix being adopted by major equipment manufacturers across the EV and other battery markets,” Element 25 Managing Director Justin Brown stated.

The comprehensive review will examine multiple factors including where to locate the facility, financing arrangements, construction schedules, and modifications to funding agreements with the U.S. Department of Energy.

Meanwhile, Element 25 continues developing its Butcherbird mining operations in Western Australia, which will provide materials for both the proposed Louisiana plant and traditional steel industry customers.

Pharmaceutical giant Eli Lilly announced Tuesday its plan to purchase three vaccine development companies in transactions totaling nearly $4 billion, marking the company’s strategic move into infectious disease prevention.

The pharmaceutical company, which has generated substantial revenue from surging sales of its weight-loss medications, continues its buying spree as it diversifies beyond obesity treatment into additional medical fields.

The acquisitions include Curevo, LimmaTech Biologics and Vaccine Co.

Stock prices for Lilly rose 1.6% during pre-market trading sessions.

Under the Curevo agreement, shareholders stand to receive as much as $1.5 billion in cash payments, which includes initial compensation plus additional funds upon reaching certain development goals. Curevo specializes in creating a shingles prevention vaccine for adult patients.

LimmaTech, focused on developing immunizations targeting bacterial infections, will be purchased for as much as $780 million in cash. This amount covers initial payment plus possible additional compensation tied to achieving specific development benchmarks.

Vaccine Co specializes in creating an immunization against Epstein-Barr virus, which spreads easily and affects many people. Lilly has committed to paying up to $1.55 billion for this company, including immediate payment and possible future payments based on clinical trial success and commercial achievements.

The Wall Street Journal first reported these transactions earlier Tuesday.

Financial institutions are working behind the scenes to persuade the Federal Reserve to make permanent its recent regulatory changes, ensuring future Democratic administrations cannot easily undo the lighter oversight rules, according to four sources familiar with the discussions.

Under Republican President Donald Trump’s regulatory team, bank supervision has undergone its most significant transformation since the 2008 financial crisis. Officials have dramatically reduced the use of “matters requiring attention,” or MRAs, which bank examiners have traditionally relied on to compel financial institutions to address risk management problems and control deficiencies.

Recognizing this as a unique chance to reduce what they characterize as an aggressive and burdensome regulatory environment, financial institutions are working to secure their gains. They are pressing the central bank to formally clarify legal uncertainties around the gentler approach that has taken the place of MRAs, providing banks with long-term legal certainty, and the Fed intends to offer additional guidance, the sources said on condition of anonymity.

This initiative, disclosed here for the first time, demonstrates that financial institutions are already working to safeguard these modifications, expecting Democrats who are critical of financial institutions will attempt to overturn them — highlighting what some Fed observers describe as the increasing politicization of Fed oversight and regulatory policy.

Trump’s Fed Vice Chair for Supervision Michelle Bowman, who is spearheading these changes, is “attempting to alter the supervisory culture of the Fed and to shift the power balance … in favor of bank management,” said Todd Baker, senior fellow at the Richman Center for Business, Law and Public Policy at Columbia University.

Bowman has stated that supervisors are too focused on catching footfaults, or small missteps, and that her objective is to direct them toward genuine risks, not to diminish oversight. A Fed spokesperson declined to comment.

An MRA serves as a confidential method for examiners to identify problems they discover at banks and instruct the firms to resolve them. If a firm fails to address the issue, it could eventually escalate into a formal enforcement action and monetary penalties. Most large banks typically must handle numerous MRAs at any given time.

In October, the Fed announced it would reserve MRAs for material financial risks, and begin relying again on “observations,” a tool the central bank eliminated in 2013, as a way to informally flag issues. In a February memo, the Fed said it may also downgrade some existing MRAs to observations.

While MRAs can lead to enforcement actions, observations are nonbinding. While banks have welcomed the new approach, they believe observations are legally ambiguous and it is unclear how supervisors will respond if banks don’t act on them, the sources said. They worry future Democratic Fed leaders may seize upon that ambiguity to escalate observations they believe have not been fixed, to MRAs.

Banks are pushing the Fed for explicit written assurances that supervisors will not do that, and only escalate observations to MRAs if the facts around the issue change, the people said. The Fed has said it will amend public 2013 documentation around observations, and that could provide more clarity, one of the people said.

Banks have long complained supervisors routinely resort to MRAs for minor issues and their overzealous use can distract management. Silicon Valley Bank, they point out, had 19 open MRAs when it collapsed, most of which did not focus on the core issues that brought it down, a Fed post-mortem found.

MRAs became supervisors’ primary cudgel after the 2009 crisis highlighted that lenders were mostly ignoring observations, leading the Fed to scrap them, according to two former officials familiar with the Fed’s thinking at the time.

Arguing red tape is stymieing lending and the economy, the Trump administration is trying to steer softer bank rules and supervision, an effort that could gain steam under Trump’s new Fed Chair Kevin Warsh.

In addition to limiting MRAs, the Fed and other bank watchdogs have scaled back the number and scope of bank exams and this month proposed overhauling the confidential bank rating system. Bowman has also announced plans to reduce regulation and supervision headcount by around 30%, leading to the exit of long-tenured staff, and has brought in her own people.

Democrats say the changes are weakening financial system safeguards at a perilous time for the global economy, and some bankers expect a backlash if they take the White House in 2028.

While it has become typical for the regulatory pendulum to swing between Republican and Democratic administrations, that dynamic has become “supercharged” as Trump’s White House has asserted more control of the regulators, said Baker.

A White House spokesperson said the Trump administration is focused on “objective and measurable risks” to financial markets.

Enshrining the supervision pullback in formal regulations would make them tougher to unravel, said legal experts, but Bowman must put rulemakings to a Fed board vote. While Republicans hold the majority, the central bank has historically strived for consensus, and the board’s Democrats would likely dissent against such a move, according to industry officials.

Still, Bowman’s lieutenants have been peeling back the curtain on supervision by publishing new operating principles for examiners, a move aimed at making the changes more durable, said one of the sources who has direct knowledge of the matter.

Supervision has been shrouded in secrecy, which lenders say has fostered a culture of unaccountability. Publishing supervisory principles does not legally bind the Fed, but it raises the political and legal stakes of reversing course by forcing future policymakers to justify any shift, said the source.

Jeremy Kress, a University of Michigan law professor, said he believed the changes would have staying power, especially as more long-tenured examiners leave.

“It’s going to take a long time for a future Vice Chair for Supervision … to turn that tanker,” said Kress.

The American beauty conglomerate Estée Lauder has terminated acquisition discussions with Spanish fragrance company Puig, a decision that industry experts are praising as wise given the company’s current restructuring efforts.

The proposed merger would have formed a luxury beauty powerhouse capable of better challenging market leader L’Oréal. However, shareholders expressed concerns that such a massive deal would divert leadership attention from the company’s ongoing recovery strategy and put additional strain on finances, particularly with net debt already at approximately five times EBITDA.

Stock prices jumped 10% on Friday following news of the talks’ end. While investor opposition played a role in derailing negotiations, Reuters reported that the primary reasons for failure were conflicts between influential family owners and various demands, including those from makeup entrepreneur Charlotte Tilbury. Charlotte Tilbury represents a brand that has gained popularity among TikTok content creators and wealthy millennials, with Puig holding an ownership interest.

The cosmetics company, which operates the Clinique and M.A.C brands, has previously stated that acquisitions serve as tools for portfolio transformation, helping address gaps in regional presence, product lines, and pricing segments.

Chief Executive Stéphane de La Faverie has emphasized that his main focus under the “Beauty Reimagined” reorganization involves repairing organic growth initially, with any potential deals needing to align closely with the restructured operations.

“Although it has walked away from Puig, we think Estée could look to acquire smaller, niche operators to enhance its category or geographic standing,” Morningstar analyst Erin Lash said in a note. “While the deal stood to strengthen Estée’s position in fragrance, we were skeptical, given the potential deal’s size and the distraction it could pose for management amid its ongoing turnaround.”

The restructuring initiative includes expanding product offerings across distribution channels and markets, improving supply chain efficiency, increasing marketing investments, and accelerating launches of high-end products to capitalize on steady demand from wealthy customers. The company announced earlier this month plans to eliminate up to 3,000 additional positions worldwide, raising total anticipated layoffs to as many as 10,000 while targeting up to $1.2 billion in annual cost reductions.

The beauty manufacturer, which also owns the Jo Malone luxury fragrance line, completed its full acquisition of Indian premium brand Forest Essentials this week, demonstrating continued commitment to purchases focused on local, developing markets. The company first invested in Forest Essentials in 2008 and expanded its stake to 49% in 2020.

This Forest Essentials purchase follows recent minority investments in London-based luxury skincare company 111SKIN and Mexico-based fragrance brand Xinu in November.

The Forest Essentials addition has nearly doubled the company’s market presence in India and is “helping us to tap into another consumer that we potentially couldn’t recruit,” Nadine Graf, president of EMEA, UK, Ireland & Emerging Markets at Estée Lauder, said at a Morgan Stanley conference in Paris on Tuesday.

Graf noted the company was customizing the brand for local markets and increasing spending during major shopping seasons, while acknowledging that Europe and the UK presented more challenging environments where premium beauty products were widely accessible, restricting growth opportunities.

“Decision to call off discussions removed a complex transaction that, in our view, would have offered only modest strategic benefit and limited portfolio diversification,” Jefferies analyst Sydney Wagner said in a note.

“With the transaction no longer under consideration, we see the most compelling use of capital in assets positioned down the price ladder” with mass and so-called masstige brands, particularly in color and skin, she said.

A labor organization representing workers in Samsung Electronics’ consumer electronics divisions announced Tuesday it has petitioned a South Korean court to halt voting on a compensation agreement that predominantly advantages employees in the company’s semiconductor operations.

The settlement, brokered by government mediators last week and ending an 18-day work stoppage involving 48,000 employees, offers substantial bonus payments to personnel in Samsung’s memory chip sector, which has experienced significant profit growth during the artificial intelligence surge.

Union members began casting ballots Friday, with the voting process scheduled to end Wednesday morning. The agreement is anticipated to receive approval from participants.

The Samsung Electronics Co Union (SECU), representing approximately 13,000 workers primarily from the corporation’s mobile phone, television, and household appliance sectors, released a statement explaining it pursued legal intervention after learning it was excluded from participating in the vote.

Internal disputes led the SECU to withdraw from the bargaining process before negotiators finalized the agreement.

The Samsung Electronics Labor Union (SELU) spearheaded the talks and reported Tuesday that over 90% of its 57,290 eligible members had already submitted their votes, though results were not revealed.

Ratification requires both majority participation from qualified union members and majority support among those voting. Failure to meet these thresholds would force negotiations to begin anew.

Certain consumer electronics staff belonging to another labor group, the National Samsung Electronics Union (NSEU), which has also expressed dissatisfaction with the agreement’s terms, are opposing the deal, according to NSEU representative Lee Ho-seok.

He noted that some foundry employees within Samsung’s chip operations are similarly dissatisfied with the arrangement and voiced optimism that members might reject it, despite acknowledging this outcome appears improbable.

“We hope to pull off a miracle,” he said.

The NSEU claims roughly 20,000 members according to its website, with most working in chip manufacturing.

Samsung represents approximately 25% of the nation’s export revenue, and the settlement has brought considerable relief throughout South Korea. The labor dispute has nonetheless revealed significant disagreements about distributing profits from the AI industry expansion.

Certain memory chip employees at the company are positioned to earn combined bonuses totaling around $416,000 this year.

Staff in Samsung’s foundry and logic chip design departments will collect smaller but still considerable bonus amounts, while workers in other areas including mobile devices and home appliances will receive more modest payments.

A small coalition of individual investors has also declared intentions to file legal action should union members approve the deal, contending that portions of the agreement violate regulations without shareholder authorization.

Samsung’s stock price closed 2.2% higher Tuesday. Shares have climbed 8% since the agreement was announced last week, though this increase trails the 18% jump recorded by competitor SK Hynix.

During the busy summer travel period, NPR was granted exclusive access to witness Delta Air Lines’ massive baggage handling operation at Atlanta’s airport, where the carrier processes over 100,000 pieces of luggage daily at the globe’s most active aviation hub.

The chief executive of OpenAI expressed relief Tuesday that artificial intelligence hasn’t triggered the widespread employment catastrophe he initially anticipated.

During remarks at a Commonwealth Bank of Australia conference in Sydney, the company leader acknowledged his earlier concerns about AI’s potential to devastate global job markets have not materialized as expected.

The executive noted that while OpenAI accurately predicted the technological advances that followed ChatGPT’s 2022 debut, the company misjudged the social and economic consequences.

“I’m delighted to be wrong about this, I thought there would have been more impact on entry-level white-collar jobs being eliminated by now than has actually happened,” he told the bank’s chief executive during an on-stage interview.

“I now think I understand more about why it hasn’t, and I’m obviously grateful but that is an area where my intuitions were just off.

“People are like ‘oh you could have saved the world a lot of fear mongering and a lot of doom and gloom’ but at the time I was like ‘I see this is a real risk we should probably talk about it’ and it still may.”

While the OpenAI leader didn’t provide specific employment statistics during his Tuesday appearance, he has previously discussed potential industry-wide workforce reductions linked to AI advancement.

Multiple major corporations worldwide, including HSBC, Amazon, Standard Chartered and the Commonwealth Bank, have announced certain positions within their organizations are being automated through AI systems.

According to recent reports, OpenAI plans to privately submit paperwork for a U.S. stock market debut in the coming weeks. The company may seek a $1 trillion market value while attempting to raise a minimum of $60 billion.

The tech executive explained he has come to understand that despite AI’s expanding presence across various sectors and roles, certain human aspects of work remain impossible to replicate.

He shared his personal experience using AI to handle workplace messaging platforms and emails, but eventually returning to personal responses for some communications.

“I had it reply to messages, saying ‘this is Sam’s AI’ and it was an amazing example to me of we really do care about people,” he said.

“We really do care about our interactions with people and this thing, which is a huge amount of my time, is not something that I can imagine myself outsourcing to an AI anytime soon.”

This insight led him to conclude that human connection requirements in many professions will resist AI replacement.

“It really, in both positive and negative ways, updated me to thinking that the jobs picture is likely to be very different than we thought,” he said.

“I don’t think we’re going to have the kind of jobs apocalypse that some of the companies in our space advocate or talk about.”

Western nations pouring massive funding into critical mineral development to reduce dependence on China should heed historical lessons about government intervention in commodity markets, industry professionals warn.

More than a dozen mining executives, investment specialists, and market analysts told Reuters that current government spending patterns risk creating oversupply situations reminiscent of past market disasters.

“There needs to be some coordination between Western governments as they seek to incentivise new production,” said Brett Beatty, a partner at Resource Capital Funds, a mining-focused private equity firm that supplies the U.S. government with niobium and tantalum via its holdings in Global Advanced Metals.

“The biggest risk is we all do our own thing,” Beatty added. “We all generate multiples of volumes the world needs and then you just crush everything, because you’ve got an oversupply.”

Washington has committed more than $20 billion toward supporting domestic critical mineral capabilities through various initiatives and funding mechanisms, including $10 billion designated for its reserve program, Project Vault. Australia has committed at least A$13 billion ($9.42 billion) for critical mineral development through no fewer than five separate initiatives including its own stockpile program.

Rare earth elements represent just a fraction of the $320 billion critical minerals industry that the International Energy Agency projects will grow to twice its current size by 2040. The rare earths industry that manufactures powerful magnets for military applications, sophisticated manufacturing and healthcare equipment generated approximately $6.4 billion in revenue during 2024, based on IEA data. However, combined financial commitments from the U.S., European Union, Australia and Japan to rare earth initiatives worldwide already exceed that total market value, Reuters analysis reveals.

Historical precedents from the 1980s and early 1990s demonstrate how subsidies, discounted energy costs and price supports created massive overproduction of European dairy products – known as “butter mountains” – Russian aluminium “floods” and Australian wool, overwhelming global markets, causing price collapses and creating economic disruption beyond national boundaries.

Current Western investment trends are already positioned to push certain rare earth elements, a collection of 17 metallic elements, into oversupply within the next few years, according to David Merriman of Project Blue, a consultancy. However, he noted that massive surpluses might not materialize because governments could adjust their support levels.

“Government-led stockpiles can stop purchasing, which can have a market-balancing impact and there is only limited capacity supported by price floors or guaranteed purchasing by governments at present,” he said.

Currently, stockpiles do not pose any threat of overwhelming markets, said Amanda Lacaze, the CEO of Lynas Rare Earths, the world’s top rare earths producer outside China, on May 6.

“I’m pretty alert to how much rare earths are sitting in stockpiles around the world right now and it’s not very much,” she said.

Australian Minister for Resources Madeleine King told Reuters earlier this year that the country’s stockpile support was “very different from the wool situation.”

“This is about a targeted, project-based investment to make something work, for creating secure supply chains for Australian manufacturing, but also for our neighbours and like-minded partners,” she said.

International coordination efforts are underway. The Group of Seven countries are discussing establishment of a permanent administrative body to ensure critical mineral supply enhancement plans continue beyond their rotating leadership terms, five sources with knowledge of the negotiations revealed earlier this month.

Government market intervention has produced significant achievements for some nations, including the Democratic Republic of Congo (DRC), which has accumulated cobalt reserves and established export limits to increase mining revenues.

Initially, these policies elevated global prices, boosting government income, but extended restrictions threaten to accelerate movement toward alternative materials as purchasers pursue more dependable supply sources, said Geraud-Christian Neema, the Africa editor at the China Global South Project, a non-profit focused on Beijing’s role in emerging economies.

Officials now confront a challenging equilibrium: relaxing quotas might prompt export surges from companies like China’s CMOC and eliminate gains, while maintaining strict limits threatens long-term demand erosion, he said.

The DRC adopted a strategy pioneered by Indonesia, which in 2020 prohibited nickel ore exports to promote domestic processing and boost resource revenues.

Within three years, output tripled and the country solidified its dominance as the world’s leading producer. However, it has subsequently imposed mining quota restrictions to control overproduction and declining prices – and last week, it announced plans to centralize commodity export oversight.

One approach to reduce oversupply risks would involve adding processing capabilities at current operations so target metals are manufactured as secondary products, rather than responding to price incentives, said Huw McKay, a visiting fellow at The Australian National University who previously served as BHP’s chief economist.

This approach is being implemented in Western Australia through Alcoa and Japan’s Sojitz, which includes support from Japanese, Australian and U.S. governments. They are installing a facility to extract gallium at Alcoa’s alumina operations near Perth. Trafigura has begun extracting antimony from its Nyrstar lead smelter in South Australia.

Considering the capital expenditure requirements of major mining companies, McKay said Western government investments were “more like seed funding.”

The Australian stock exchange operator experienced its steepest stock decline in over a decade on Tuesday after announcing plans for substantial technology spending increases that will drive up costs in 2027.

The company’s shares dropped more than 12% following the announcement, representing the worst single-day performance since August 2012. The operator disclosed that overall expenses would climb by as much as 21% in 2027 compared to the prior year.

Capital spending projections were revised upward to between A$180 million and A$200 million ($128.97 million to $143.30 million), an increase from the previously estimated A$160 million to A$180 million range. For 2028, capital expenditures are anticipated to fall between A$170 million and A$190 million.

The dramatic cost increases stem from multiple technology initiatives, including system upgrades, artificial intelligence investments, enhanced internal systems and automation improvements. Additional expenses will result from operating both legacy and updated systems simultaneously during the transition period.

Regulatory compliance is also driving higher spending. The Australian Securities and Investments Commission released findings in April documenting various operational failures, budget overruns, and delayed technology upgrade schedules at the exchange operator.

The regulatory report concluded that the company had focused on maximizing shareholder returns while implementing short-term fixes rather than solving underlying operational problems.

In response to the criticism, the exchange operator stated: “Final ASIC Inquiry Panel Report identified historical underinvestment compared to global peers, which ASX has committed to address with a faster pace and greater ambition.”

The projected expense growth of up to 23% for 2026 incorporates costs related to addressing the regulatory investigation findings.

Trading data showed shares fell as low as A$51.40, down 12.6%, while the broader ASX200 index declined only 0.4% as of 0315 GMT.

Despite the spending increases, the exchange operator maintained its previously reduced dividend payout ratio of 75% to 85% of underlying net profit after tax. The company also reported that preliminary revenue for the ten months ending April 30 increased 12.5% to A$1.03 billion.

A labor organization representing workers in Samsung Electronics’ consumer product divisions filed a court petition on Tuesday seeking to stop a vote on a compensation package that disproportionately benefits employees in the company’s semiconductor operations.

The compensation agreement, brokered by government mediators last week, brought an end to an 18-day work stoppage involving 48,000 employees. The package offers substantial bonus payments to staff in Samsung’s memory semiconductor unit, which has experienced significant profit growth due to artificial intelligence demand.

Union members started casting ballots on Friday, with the voting period scheduled to end Wednesday morning.

The Samsung Electronics Co Union (SECU), representing approximately 13,000 workers primarily from smartphone, television and household appliance departments, issued a statement explaining their legal challenge came after being excluded from participation in the vote.

Internal disputes led the SECU to withdraw from the bargaining process before negotiators finalized the agreement.

The Samsung Electronics Labor Union (SELU) spearheaded the talks and announced Tuesday that over 90% of its 57,290 eligible members had submitted votes, though the results remain undisclosed.

The agreement requires both a simple majority of qualified union members to support the deal and majority participation in the voting process. Failure to meet these thresholds would force negotiators to begin discussions anew.

Another labor group, the National Samsung Electronics Union (NSEU), plans to skip the vote entirely due to dissatisfaction with the agreement terms, according to Yonhap news reports.

The NSEU represents both semiconductor and non-semiconductor employees and claims roughly 20,000 members based on its website information.

Samsung contributes approximately 25% of the nation’s export revenue, making the resolution of this labor dispute significant for South Korea’s economy. However, the controversy has highlighted sharp disagreements about distributing profits from the artificial intelligence industry surge.

Certain memory chip employees stand to collect total bonus payments reaching approximately $416,000 during the current year.

Staff members in Samsung’s foundry and logic chip design departments will earn considerably smaller but still noteworthy bonuses, while employees in divisions such as smartphones and home appliances will receive even more modest payments.

A small coalition of individual investors has also threatened legal action if union members approve the deal, claiming portions of the agreement violate regulations without shareholder consent.

Samsung’s stock price climbed 2.7% during morning trading sessions. Share values have increased nearly 9% since the agreement announcement last week, though this performance trails the 19% jump experienced by competitor SK Hynix.

The U.S. dollar experienced weakness on Tuesday as investors expressed growing optimism about potential diplomatic efforts to resolve the three-month Iran conflict and reopen the strategically important Strait of Hormuz, despite continued American military strikes against Iranian positions affecting market confidence.

Although the likelihood of an immediate agreement remains low, peace prospects have driven oil prices under $100 per barrel, reduced strain on emerging market currencies, and enhanced appetite for riskier investments.

Top Iranian diplomatic officials and the foreign minister traveled to Doha for discussions with the prime minister of Qatar regarding a possible agreement. The U.S. president characterized negotiations with Iran as proceeding “nicely,” while cautioning about additional military action should talks collapse.

U.S. Central Command released a statement confirming it conducted additional strikes intended “to protect our troops from threats posed by Iranian forces.”

Currency markets showed the euro maintaining strength at $1.16365 on Tuesday, with the Japanese yen trading at 158.95 against the dollar. American financial markets remained closed Monday for a holiday observance. The dollar index against multiple currencies stood at 99.031.

“Markets are right to price some optimism because even a path toward reopening Hormuz lowers the extreme tail risk around oil, inflation and global growth,” said Charu Chanana, chief investment strategist at Saxo in Singapore.

“I would not confuse positive negotiation noise with a durable de-escalation yet, the real test is not the headline deal, but whether tankers can move freely, insurance premiums can fall, and energy flows can normalize,” Chanana added.

“Until then, this is likely to remain a stop-start risk-on trade.”

The Australian currency, frequently considered a risk indicator, remained stable at $0.71665, staying close to a one-week peak following Monday’s 0.65% increase.

New Zealand’s currency traded at $0.58575, declining 0.25% before Wednesday’s monetary policy announcement from the nation’s central bank, where a survey of economists shows 28 of 29 expect rates to remain unchanged.

“With so much of the good news around a peace deal now likely priced into risk markets, there’s certainly room for a ‘buy the rumour, sell the fact’ type reaction,” said Tony Sycamore, market analyst at IG.

Energy prices recovered some early Tuesday losses following reports of new American strikes against Iranian facilities. Brent crude futures climbed 1.5% to $97.76 per barrel after Monday’s 7% decline.

Market experts don’t anticipate energy costs returning to pre-conflict levels soon, even with near-term diplomatic progress, as supply networks will require time to stabilize, maintaining inflation and interest rate pressures.

“We still expect a slow oil unwind, even if prices fall sustainably below $100 per barrel in the second half of 2026. This suggests the USD’s terms of trade support should not fade quickly,” said OCBC strategists in a note.

“There is no strong case to be bearish USD,” they said, citing resilient U.S. growth and AI-driven inflation pressures that have nudged Federal Reserve rhetoric in a more hawkish direction.

A labor organization representing Samsung Electronics workers outside the semiconductor business has petitioned a South Korean court to halt an ongoing compensation vote, according to reports from Newsis on Tuesday.

The labor group includes approximately 13,000 employees from the smartphones, television and home appliances divisions, the news agency reported.

The non-chip union pursued legal action after being informed it could not participate in the ballot by unionized workers in the semiconductor division, Newsis reported, quoting a union representative.

Approximately 57,000 Samsung employees started casting ballots on Friday regarding a compensation package that would provide substantial bonuses for memory chip workers to prevent a planned 18-day work stoppage.

Financial markets are generating significant excitement over the anticipated June launch of Elon Musk’s space exploration company SpaceX on public exchanges, though a comprehensive review reveals that most major stock debuts in recent years have disappointed investors who purchased shares at launch.

A comprehensive review of the 50 largest public offerings by valuation over the past five years demonstrates that investors would have achieved better results purchasing an S&P 500 index fund approximately 75% of the time. This data highlights the challenge of identifying good deals among companies whose market values have frequently skyrocketed well before their public trading begins.

An investor purchasing each of the public offerings examined would have gained an average of 27% through May 21. This performance falls short of the S&P 500’s average 53% increase over the same timeframes. The review assumes buyers could acquire shares at the initial offering price — frequently impossible for individual investors — or alternatively purchase the broad-market index.

Past performance for investors purchasing during the chaotic first trading day shows even poorer results, the review demonstrated.

“It’s difficult to make money unless you’re in the early stages of these things and buying these things before the IPO,” said Dennis Dick, a proprietary trader at Triple D Trading.

The rocket manufacturer’s market debut is anticipated to precede offerings from OpenAI and Anthropic, capitalizing on investor appetite for artificial intelligence companies that has pushed U.S. markets to new records.

Planning to trade under the symbol ‘SPCX’, the space company submitted its prospectus Wednesday, with potential share sales beginning as soon as June 11. Company founder Elon Musk is offering some shares to individual investors through Robinhood, SoFi and additional trading platforms that would provide access at reduced prices.

The aerospace firm is reportedly seeking a $1.75 trillion market value that would surpass all previous Wall Street public listings, though the analysis demonstrates that such records provide no assurance investors will profit.

University of Florida professor Jay Ritter, who researches public offerings, explained that while most stock debuts underperform the S&P 500 long-term, companies with exceptionally high valuations measured by price-to-sales ratios typically perform worst.

At a $1.75 trillion valuation, the space company’s price-to-sales ratio would reach nearly 100, compared to artificial intelligence leader Nvidia’s price-to-sales ratio of 24. The rocket manufacturer reported losses of nearly $5 billion last year.

“Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright,” Ritter said. “But, you know, stuff could go wrong.”

Among the public offerings studied, artificial intelligence chip designers Astera Labs and Arm Holdings have delivered the strongest performance. Astera has climbed over 700% since its 2024 debut, while Arm has risen approximately 400% since its 2023 launch. Both performances exceeded the S&P 500.

Cerebras Systems, another AI chip designer, jumped 52% from its May 14 offering price; it has declined around 27% from its first trading day peak.

Among the most significant letdowns recently, Chinese ride-sharing company Didi Global was removed from the New York Stock Exchange in 2022 following its heavily demanded offering the previous year. Currently trading over-the-counter, Didi Global shares have fallen approximately 74% from their $14 offering price.

Electric vehicle manufacturer Rivian Automotive has dropped 82% since its 2021 debut that temporarily made it the second-most valuable U.S. automaker. The company continues losing money on every vehicle produced and burns roughly $1 billion in cash quarterly.

Design software company Figma’s shares nearly quadrupled during their first trading session last July. However, with investors concerned that generative AI could make Figma’s technology commonplace, its stock has declined 35% from the $33 offering price.

Even the most popular offerings can disappoint. Chinese e-commerce giant Alibaba, excluded from this analysis, maintains the record for largest U.S. public offering by valuation. Promoted as the “Amazon of China,” its shares have doubled since its 2014 Wall Street debut, while the S&P 500 has returned over 300% during the same period.

Japan has dropped another spot in global creditor standings, now ranking third worldwide after being overtaken by China, according to Tuesday’s announcement from the country’s Finance Ministry.

The nation’s combined external assets held by government entities, corporations, and private citizens climbed 4.4% compared to the previous year, reaching 561.75 trillion yen, equivalent to $3.53 trillion.

This represents the eighth consecutive year of asset expansion, fueled by Japanese corporations’ aggressive international investment strategies, cross-border mergers and acquisitions, plus increased valuations of foreign securities owned by Japanese residents.

Despite this record-breaking asset growth, Japan’s global standing has continued to slide. The country previously lost its decades-long top position to Germany just one year ago, ending a 34-year reign as the world’s leading creditor nation.

Ministry statistics, compiled using International Monetary Fund data, show Germany maintaining its leading position with net external assets worth 675.5 trillion yen, while China now holds second place at 636.3 trillion yen.

Officials noted that both Germany and China have strengthened their creditor positions through consistent annual trade surpluses.

Japan’s asset growth has been partially offset by a substantial increase in external liabilities. The robust performance of Japanese equity markets resulted in a 62.2 trillion yen upward revaluation of Japanese securities owned by foreign investors.

The current exchange rate stands at $1 equals 158.9800 yen.

The European Union is preparing to impose a substantial fine on Alphabet’s Google totaling hundreds of millions of euros as part of an ongoing antitrust probe, according to a report from Germany’s Handelsblatt newspaper citing commission sources.

The ruling is approaching finalization and is anticipated to be formally revealed prior to the summer recess, the publication stated, noting this would represent the largest penalty ever levied under the EU’s recently implemented Digital Markets Act.

The probe, which formally began in March 2025, centers on allegations that Google gives preferential treatment to its own services within search results and aims to guarantee that the globe’s leading internet search platform adheres to regional regulations.

Neither the European Commission nor Google provided immediate responses when contacted for comment.

Previously this month, the European Commission indicated it had granted Google additional time to address regulatory concerns following an earlier company proposal that was deemed insufficient.

India must coordinate efforts between government, businesses and educational institutions to retrain workers if the nation wants to emerge as an artificial intelligence leader, according to a senior IBM executive who warns that AI technology poses risks to the country’s status as a major global services provider.

Speaking to Reuters on Monday, IBM India head Sandip Patel emphasized that the South Asian country’s substantial young population could provide a significant edge in the worldwide competition to embrace and profit from AI technology, which corporations believe can boost efficiency.

“That demographic dividend, that’s sitting here, unleashing that is a phenomenal opportunity,” Patel said. “You will be at a 350 million AI-trained workforce that can be deployed not just here, but can be doing work around the world.”

With more than half of India’s approximately 1.4 billion citizens younger than 30, the world’s most populated country possesses an enormous youthful labor force. The nation also graduates millions of engineers annually who now confront potential displacement from AI systems capable of automating activities such as computer programming.

IBM, which committed in December to training 5 million Indians in AI, cybersecurity and quantum computing before 2030, reports that roughly 30% of the country’s existing technology workers possess the AI capabilities that companies require. The corporation is collaborating with government officials on training programs.

Patel additionally stated that India would require enhanced intellectual property safeguards to become a leader in developing commercially viable technology, noting that businesses need stronger confidence that intellectual property created domestically would remain legally protected and profitable internationally.

IBM has been growing its operations in smaller cities closer to its recruitment areas and client locations, allowing the company to access talent beyond India’s overcrowded technology centers, according to Patel.

The corporation’s workforce in the southern city of Kochi has expanded to almost 4,000 workers over two years, and the company recently established operations in Lucknow.

The retail giant Target is reconsidering its artificial intelligence strategy as technology companies increasingly adopt pricing models that charge based on actual usage rather than flat subscription fees, according to the company’s India operations chief.

Companies like Anthropic and OpenAI are moving toward token-based billing systems that calculate costs based on how much customers actually use their services, marking a significant change in AI economics that’s driving up expenses for large businesses.

“It is forcing us to re-evaluate our strategy,” Target’s India President Andrea Zimmerman told Reuters on Monday, explaining that the company’s massive size means leadership must carefully weigh employee requirements against budget constraints.

Despite the pricing challenges, Zimmerman emphasized that Target is making “significant investments” to ensure workers have access to necessary technology tools.

“(AI pricing) sits at a technical debate at the highest level in both our architecture forums as well as in our senior leadership forums within technology,” she explained.

Target’s Indian operations center encompasses multiple business areas including merchandising, digital services, retail locations, and supply chain management, with approximately 5,600 employees. The Bengaluru facility houses roughly 40% of the Minneapolis-headquartered company’s technology workforce.

Within India, the retailer plans to increase investment in analytics departments to convert expanding data volumes into practical business insights more rapidly.

“We work to adapt really quickly when we see that consumer demand or sentiment start to shift,” Zimmerman noted.

The $57-billion company has faced challenges with three consecutive years of falling revenue as budget-minded customers have chosen less expensive shopping options.

Under new CEO Michael Fiddelke, Target intends to invest an extra $2 billion this year in opening new locations, renovating existing stores, and advancing AI projects.

“AI is fun, exciting and interesting to think about,” Zimmerman observed. “Change isn’t going to be immediate, and it is certainly not free.”

The company behind the world’s biggest stablecoin announced Monday it will work with Georgia’s government to create a digital version of that nation’s currency, marking one of the first collaborative projects between a country and cryptocurrency firm to put a national currency into digital form.

Tether revealed the new cryptocurrency will be named ‘GEL₮’.

These digital currencies are a form of cryptocurrency that maintains value by being tied to traditional government-issued money. Crypto traders primarily use them, and their popularity has grown dramatically over the past several years.

A leading electrical infrastructure company projects its data center operations in India will significantly outperform the company’s other business segments in the coming years, fueled by increasing artificial intelligence infrastructure requirements.

Currently representing 15% to 20% of the company’s Indian operations, the data center division is experiencing double-digit expansion rates and is expected to capture a substantially larger portion of overall business, according to Sumati Sahgal, vice-president for Secure Power and Data Centres, Greater India Zone, who spoke with Reuters on Friday.

“This business will contribute to a much faster pace of growth than what the rest of the core business sees,” Sahgal explained, noting that data centers and grid modernization would be among the company’s most robust growth areas.

Market research from Astute Analytica forecasts India’s data center sector will reach $31.36 billion by 2035, expanding at a compound annual growth rate of 13.37%.

Sahgal predicted India’s data center capacity could jump to 6-7 gigawatts by 2030, up from the current 1.5 gigawatts, with investment expanding beyond traditional hubs like Mumbai and Chennai into states such as Gujarat and Rajasthan as companies establish facilities closer to their customer base.

According to Sahgal, India is developing into both a consumption and production center for data center power and cooling systems, with demand originating from hyperscalers, colocation providers, and businesses seeking comprehensive infrastructure and services.

The French multinational provides essential data center infrastructure including UPS systems, switchgear, power distribution units, precision cooling, and energy management software, establishing it as a crucial supplier as artificial intelligence workloads increase requirements for dependable digital infrastructure.

The organization addresses comprehensive data center requirements, spanning power and cooling to software and services, while maintaining local manufacturing capabilities.

The company’s India-listed subsidiary produces electrical distribution equipment including transformers and switchgear, while its broader Indian operations encompass energy management, automation, and digital infrastructure.

Stock prices for a major German food delivery company reached their peak level in 18 months during Monday trading after news emerged of a potential takeover offer from Uber, with reports indicating the American company may be planning to increase its proposal.

The German firm’s stock price climbed 10% to reach 37 euros per share by 0705 GMT, marking the company’s strongest performance since the end of November 2024. This surge brought Delivery Hero’s total market value to €11.2 billion, equivalent to $13.04 billion.

The stock rally began after Delivery Hero announced it had received a preliminary acquisition proposal from Uber, while a Financial Times report suggested the U.S. competitor was weighing an increase to its initial offer.

While competing sports car manufacturers hesitate on their electric vehicle strategies, Ferrari is making a bold move forward by introducing its inaugural all-electric automobile on Monday, wagering that it can maintain driver appeal without the signature rumble of a traditional engine.

The Italian automaker’s four-door electric model, called the Luce — which translates to ‘light’ in Italian — will reach maximum speeds of 310 kph (193 mph) and carry a price point exceeding €500,000 ($586,000).

The development of the Luce involved collaboration with LoveFrom, the design studio of former Apple designer Jony Ive. Industry sources characterize the vehicle as substantial in size with styling that departs from Ferrari’s traditional aesthetic.

“It’s a risk and a bit of a bet,” said Phil Dunne, a managing director at consultancy Grant Thornton Stax. “But it’s a good thing to do because they are leading the way.”

The highly anticipated Luce will be revealed Monday in Rome, representing the culmination of extensive preparation spanning from early hybrid Formula One technology over ten years ago to road vehicles introduced since 2019.

The company announced last year that initial customer deliveries will commence in October.

Under CEO Benedetto Vigna’s leadership, Ferrari has made substantial investments in electric technology, including constructing a new “e-building” at the company’s famous Maranello, Italy facility.

The Luce debuts during a period of uncertainty surrounding electric sports vehicles.

Reuters previously reported that Ferrari has postponed its second electric model plans until at least 2028 because of insufficient demand. Additionally, Italian competitor Lamborghini scrapped its 2030 electric vehicle launch due to limited customer enthusiasm.

Felipe Munoz from Car Industry Analysis explained that Ferrari doesn’t anticipate the Luce becoming a high-volume seller, but views it as making a strategic statement while Chinese competitors dominate innovative EV development.

Chinese manufacturer BYD has created the Yangwang U9, an electric supercar capable of jumping and dancing movements.

“You might not need to have an EV supercar right now. But electrification is here for the long run, and Ferrari needs to make a move — it must define what luxury electrification looks like before someone else does,” Munoz said.

Ferrari faces the challenge of maintaining its brand essence while adopting completely new technology, as established high-performance manufacturers grapple with battery constraints including weight issues and the absence of sustained power delivery and emotional connection found in gasoline engines.

During Ferrari’s October technology preview for the Luce, the company revealed a custom-engineered audio system designed to enhance powertrain vibrations, creating a unique electric Ferrari acoustic experience rather than artificial engine sounds.

“The three things everybody always associates with Ferrari are how it looks, how it sounds, and how it feels,” said Grant Thornton Stax’s Dunne, adding that going electric means “they have to get those right in a different way”.

Ferrari has reduced its electrification ambitions. The company now targets fully electric vehicles comprising 20% of its model range by 2030, decreased from its original 40% objective. The manufacturer will continue producing hybrid and conventional internal combustion engine vehicles.

The Luce may enable Ferrari to attract younger affluent customers who show greater EV acceptance, while elevated gasoline costs related to the Iran conflict enhance electric vehicle attractiveness.

CEO Vigna announced in February that Ferrari planned to begin Luce pre-orders in March following “very positive” early customer responses.

Although not all Ferrari enthusiasts will embrace the change, the company expects younger buyers to show interest while traditional ultra-wealthy customers will still desire a Ferrari EV for their collection.

“It certainly won’t appeal to all of Ferrari’s customer base,” Dunne said. “But it will appeal to some.”

($1 = 0.8540 euros)

The legendary Italian automaker famous for its thunderous V8 and V12 engines has announced details about its inaugural fully electric vehicle, named the Luce.

The following timeline shows how the luxury sports car manufacturer reached this milestone, beginning with hybrid technology adoption in Formula One racing over ten years ago.

2014

Formula One racing introduced hybrid powertrains. Energy recovery systems during braking had been utilized since 2009.

MAY 2019

The company introduced the SF90 Stradale, delivering 1,000 horsepower with all-wheel drive as its first mass-market hybrid vehicle. A limited-run LaFerrari hybrid had debuted in 2013.

Additional hybrid vehicles followed in subsequent years, including the 296 series, the 849 Testarossa, and the exclusive F80 supercar with a €3.6 million ($4.2 million) price point.

SEPTEMBER 2021

Benedetto Vigna, a physicist with 25 years of experience at semiconductor company STMicroelectronics, assumed the CEO position to lead the company’s transition into electrification.

JUNE 2022

Vigna unveiled his inaugural long-term strategic plan, committing that electric vehicles would comprise 40% of the product lineup by 2030, responding to the European Union’s effective prohibition on new gasoline-powered car sales starting in 2035. He established 2025 as the target year for the brand’s first completely electric model.

JUNE 2024

Reuters published information about the company’s debut electric vehicle, reporting an expected price exceeding €500,000.

The manufacturer opened a new ‘e-building’ at its Maranello facility for producing electric vehicles and EV components, alongside hybrids and select traditional internal combustion models.

MAY 2025

The company announced its inaugural EV would debut through a three-phase reveal process ending with a global premiere in spring 2026. Client deliveries were scheduled to begin in October 2026.

JUNE 2025

Plans for a second electric vehicle originally scheduled for 2026 were postponed until at least 2028 due to insufficient demand for high-performance electric vehicles, according to Reuters.

OCTOBER 2025

The manufacturer revealed the technology powering its first electric model.

The four-door vehicle with seating for four-plus passengers will feature a custom-designed audio system that amplifies powertrain vibrations to generate an electric version of the signature roar.

An updated strategic plan revised the 2030 product mix to 20% electric vehicles, 40% hybrids, and 40% internal combustion engines. This adjusted the previous 2022 projections of 40% EVs, 40% hybrids, and 20% ICE models.

FEBRUARY 2026

Preview images of the first electric model were released, disclosing the name Luce, which translates to light in Italian. LoveFrom, the design firm co-founded by former Apple designer Jony Ive, participated in the project.

Vigna announced that pre-orders for the Luce would open in March following “very positive” customer reactions.

($1 = 0.8519 euros)

Former workers at an Australian-based restaurant chain have taken legal action in Illinois, claiming the company violated federal employment laws when it abruptly shuttered all its Chicago-area locations last week.

The lawsuit targets Guzman y Gomez, a Mexican-themed fast-food company traded on the Sydney stock exchange that made headlines with a major public offering in 2024. The chain announced its complete withdrawal from the United States market last week, citing disappointing sales performance.

According to court documents filed Monday, the company permanently shuttered all six of its Chicagoland restaurants last Thursday, immediately ending employment for all workers without advance warning. Staff members only learned of the closures through an internal messaging system later that evening.

“GYG is aware of legal action filed in the United States, and we are confident we have met all of our legal obligations to our U.S. employees. We are not in a position to provide further comment on this matter,” a spokesperson told Reuters.

The legal complaint estimates that roughly 500 workers were impacted by the sudden restaurant closures, according to court filings.

Former employees are demanding 60 days worth of unpaid wages and benefits under both federal and state Worker Adjustment and Retraining Notification Acts, along with maximum civil penalties permitted under the legislation.

Despite the legal challenges, Guzman shares surged more than 10% when trading opened Monday, though gains were later erased. The stock was trading flat at A$19.805 at 0543 GMT, but remained 24% higher since the company announced its U.S. market exit on Friday.

A Chinese technology executive has emerged as a pivotal figure in her country’s quest for semiconductor independence, rising to prominence during more than two decades at one of the world’s largest telecommunications companies.

He Tingbo took control of Huawei’s semiconductor development operations in 2003, receiving a $400 million yearly budget and responsibilities that would eventually place her at the heart of China’s most significant technology initiative.

Now known within Chinese tech communities as Huawei’s “chip queen,” He has evolved into one of the corporation’s key leaders and represents China’s resolve to withstand American trade restrictions while establishing an independent semiconductor industry.

Currently serving as president of Huawei’s chip division and director of its Scientist Committee, He holds one of just two female positions on the company’s 17-person board of directors, sharing that distinction with Meng Wanzhou, who is both the founder’s daughter and the company’s rotating chairwoman.

During a Monday keynote presentation called “New Semiconductor Path in Practice” at the IEEE International Symposium on Circuits and Systems in Shanghai, He positioned herself at the center of worldwide discussions about the future of chip development beyond traditional scaling methods.

The semiconductor industry has historically advanced by making transistors smaller and fitting more components onto individual chips, creating faster, more affordable, and energy-efficient computers through what became known as Moore’s Law. However, as chip manufacturing reaches physical and atomic boundaries, this traditional approach has lost effectiveness, compelling companies to discover alternative performance enhancement strategies.

Huawei faced this challenge sooner and more severely than many competitors when U.S. trade restrictions starting in 2019 blocked access to crucial foreign chip technologies and cutting-edge manufacturing capabilities, jeopardizing operations spanning mobile devices to telecommunications infrastructure.

Additional American restrictions later placed many of Huawei’s domestic partners and rivals in comparable situations, amplifying the significance of post-Moore’s Law semiconductor innovations.

He unveiled what Huawei terms the Tau Scaling Law during Monday’s presentation, describing it as a guiding principle for chip advancement as traditional scaling methods diminish in effectiveness.

According to Huawei, her team has dedicated six years to implementing this approach and has successfully manufactured 381 chips using these methods in large-scale production.

This principle advocates for the semiconductor sector to redirect attention from transistor miniaturization toward accelerating transmission speeds throughout devices, circuits, chips, and computing systems.

He’s professional journey has mirrored Huawei’s international expansion, its challenging period under U.S. sanctions, and subsequent revival as the central force behind China’s ambition to become a technology powerhouse.

Born in 1969 in Changsha within Hunan province, she became a Huawei engineer in 1996 following completion of dual bachelor’s degrees in semiconductor physics and communication engineering, plus a master’s degree from Beijing University of Posts and Telecommunications.

The company officially created HiSilicon, its chip design division, in 2004, which He helped transform from a modest internal department into one of the globe’s most comprehensive semiconductor operations.

Through her guidance, Huawei developed expertise in system-on-chip design, optoelectronics, and advanced packaging technologies.

The company’s chip portfolio eventually encompassed smartphones, artificial intelligence, general-purpose processors, telecommunications, networking, and consumer electronics, contributing substantially to Huawei’s 2025 revenue of 880.9 billion yuan ($130 billion).

Following the implementation of sanctions, He became closely linked with Huawei’s internal resilience efforts. In a 2019 letter to HiSilicon staff that gained widespread attention, she described the unit as “building a backup lifeline for Huawei and for the whole country.”

TOKYO (AP) — Toshifumi Suzuki, the business executive who transformed 7-Eleven into a worldwide convenience store phenomenon, passed away at age 93.

The honorary adviser at Seven & i Holdings succumbed to heart failure on May 18 at his residence in Tokyo, according to a company announcement made Monday.

Suzuki established the Japanese division that runs the widespread 7-Eleven “conbini” locations, where customers can quickly purchase sandwiches, rice balls, beverages, snacks and ready-to-eat meals, access ATMs, settle utility payments and make photocopies.

With more than 80,000 locations across the globe, the 7-Eleven chain has become Japan’s largest convenience store network.

The enterprise launched in Japan through a licensing deal with the American 7-Eleven company in 1973. The inaugural Japanese location opened its doors the next year.

When The Southland Corp., the original 7-Eleven founder, encountered financial troubles, the Japanese firm purchased a controlling interest during the 1990s. By 2005, it had acquired complete ownership of the American operations.

In recent years, Canadian retail company Alimentation Couche-Tard, operator of the worldwide Circle K convenience chain, attempted to acquire Seven & i Holdings. However, the company abandoned these efforts in 2024, expressing disappointment with discussions that demonstrated “a lack of constructive engagement.”

Born in Nagano Prefecture in northern Japan in 1932, Suzuki earned his degree from the respected Chuo University in Tokyo.

Prior to entering the convenience store industry, he was employed at Ito-Yokado, a prominent Japanese retail company offering diverse merchandise including food items, beauty products and apparel, which is also under Seven and i Holdings ownership.

Beyond managing 7-Eleven operations, Suzuki orchestrated the purchase of Barney’s Japan in 2015 and incorporated banking services into the business empire.

He expressed his goal of offering customers what he described as a lifestyle shopping experience. Throughout the years, the retail conglomerate also acquired the Sogo and Seibu department store chains.

Suzuki assumed the role of chief executive at 7-Eleven Japan in 1978. He is broadly recognized for transforming Japanese consumer shopping habits. Convenience stores have pioneered the adoption of innovative retail technologies among Japanese retailers.

Private funeral arrangements are being conducted with family members, and the company respectfully requested no messages, floral arrangements or sympathy gifts. Plans for a public memorial service will be announced at a later date, the company stated.

Suzuki leaves behind his spouse and two children.

Markets across Asia climbed to new heights Monday as speculation mounted about a possible agreement to resolve the Iran conflict and reopen the critical Strait of Hormuz shipping route, according to a global market analysis.

Tokyo and Taipei stock exchanges reached record levels while oil prices and the dollar declined as investors embraced a more optimistic outlook. However, uncertainty persists following President Trump’s comments downplaying the likelihood of an immediate resolution, as he revealed instructing his negotiators to avoid hastily entering any agreement with Iran despite mounting pressure for a solution.

Trading activity remained limited Monday with both British and American markets closed for holidays, leaving traders focused on developing news coverage.

The ongoing uncertainty surrounding potential negotiations has created anxiety among investors, though most maintain optimism that an agreement to conclude the nearly three-month conflict is inevitable rather than unlikely.

Market confidence received additional support from shipping reports indicating two liquefied natural gas vessels have departed the Strait of Hormuz, while a large tanker carrying Iraqi oil bound for China left the Gulf region Saturday after remaining stuck for almost three months.

However, analysts note that any resolution would not restore oil prices to pre-conflict levels, and energy supply networks will require significant time to normalize, ensuring that inflation concerns and expectations for extended higher interest rates will persist.

Financial markets now anticipate a 25-basis-point interest rate hike from the Federal Reserve in January 2027, representing a dramatic shift from the two rate reductions projected earlier this year before hostilities commenced.

Market watchers will be monitoring developments in negotiations between the United States and Iran as key factors that could impact trading Monday.

Markets across Asia experienced gains on Monday while petroleum prices dropped significantly following statements from U.S. President Donald Trump indicating that diplomatic efforts to conclude the conflict with Iran are advancing.

Japan’s primary Nikkei 225 index jumped 3.1% during morning sessions, reaching 65,321.56. Australia’s S&P/ASX 200 climbed 0.4% to 8,692.70, while the Shanghai Composite increased 0.4% to 4,127.53.

Markets remained closed in South Korea and Hong Kong due to holiday observances for Buddha’s birthday. U.S. trading will also be suspended Monday in observance of Memorial Day.

Trump characterized the diplomatic discussions with Iran as “proceeding in an orderly and constructive manner.” Additionally, regional officials informed The Associated Press on Sunday that the United States is approaching an agreement with Iran that would conclude the conflict, restore access to the Strait of Hormuz, and require Iran to surrender its reserves of highly enriched uranium.

The potential reopening of the Strait of Hormuz represents a crucial factor for petroleum market direction. The current blockade has stopped oil vessels from leaving the Persian Gulf and transporting crude to global customers. Japan, which relies on imports for nearly all its oil supply, receives most shipments through this waterway.

“Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes said in a commentary.

During early Monday trading, benchmark U.S. crude dropped $4.35 to $92.25 per barrel. Brent crude, the global benchmark, fell $4.16 to $99.38 per barrel.

Currency markets saw the U.S. dollar weaken to 158.80 Japanese yen from 159.16 yen. The euro increased to $1.1641, rising from $1.1605.

Wall Street concluded Friday with stocks completing their eighth consecutive week of gains, marking the longest winning streak since 2023. This occurred despite survey data indicating U.S. consumers have grown more pessimistic about economic conditions.

The S&P 500 increased 0.4% and moved nearer to its record high established earlier in the week. The Dow Jones Industrial Average gained 0.6%, while the Nasdaq composite advanced 0.2%.

Strong earnings reports from U.S. corporations that exceeded analyst forecasts provided additional market support. However, concerns about inflation have driven bond yields upward globally.

The 10-year Treasury yield decreased slightly to 4.56% on Friday from Thursday’s 4.57%, though it remains significantly above the pre-war level of 3.97%.

Seven & I Holdings announced Monday that Toshifumi Suzuki, the company’s former chairman, passed away on May 18 at 93 years old.

Suzuki earned recognition as the pioneer behind Japan’s convenience store sector when he founded Seven-Eleven Japan in 1973. His leadership in developing the franchise business model fundamentally changed how Japan’s retail industry operated.

The business executive’s innovations in convenience retail helped reshape the commercial landscape throughout Japan during his career.

A major Hong Kong conglomerate announced Monday it will purchase Australia’s biggest medical imaging company in a deal worth $2.4 billion.

Jardine Matheson, a business empire that has operated for 190 years across property, retail, and automotive industries, revealed plans to buy I-MED Radiology Network for an enterprise value of A$3.4 billion ($2.43 billion).

The Hong Kong company will take complete ownership of I-MED from private equity firm Permira and additional shareholders who currently control the business.

The purchase agreement encompasses I-MED’s partial ownership in Harrison.ai, an Australian company that creates artificial intelligence technology for medical imaging, including brain and chest CT scan applications.

I-MED operates as Australia’s top medical imaging service provider, running more than 230 facilities throughout urban and rural locations in both Australia and New Zealand, according to the company’s website.

The Hong Kong conglomerate stated it will finance the complete transaction using available cash and borrowed funds, anticipating the deal will boost earnings once finalized.

Back in 2015, I-MED abandoned plans for a A$500 million stock market debut due to unstable conditions in worldwide financial markets, Reuters previously reported.

The US dollar weakened during Monday’s Asian trading session as speculation about a potential agreement to reopen the Strait of Hormuz drove oil prices down below $100 per barrel, despite the Trump administration cautioning against expectations of a quick deal with Iran.

The dollar fell 0.2% against the yen to 158.87, while the euro climbed 0.3% to $1.1642 and the British pound increased 0.4% to $1.3485.

Trading volume remained light across the region as numerous global markets were closed for Monday holidays.

The Australian dollar rose 0.4% to $0.7160, while New Zealand’s currency added 0.5% to $0.5877.

“There are early signs that risk sentiment remains supported, early Sydney trade revealing a broad-based selloff in the USD, with ‘riskier’ currencies like the AUD benefitting as a result,” analysts from Westpac wrote in a research note.

Weekend developments suggested fragile optimism for a lasting peace agreement. U.S. President Donald Trump posted Saturday that a memorandum of understanding on a peace deal with Iran had been “largely negotiated,” with both nations and Pakistani mediators reporting advancement.

Nevertheless, the U.S. blockade on Iranian ships in the Strait of Hormuz would “remain in full force and effect until an agreement is reached, certified, and signed,” Trump posted on Truth Social Sunday. Iran’s government had not immediately responded.

Energy markets dropped sharply, with Brent crude falling 5.1% to $98.29 per barrel and U.S. West Texas Intermediate declining 5% to $91.76 per barrel.

Market participants showed cautious doubt about whether any agreement would hold.

“Markets have become conditioned to be incredibly patient on a tangible breakthrough, but the base case of a deal remains firm, with the weekend news providing further conviction, even if the timing remains unclear,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.

Bitcoin increased 0.6% to $77,043.60, while ether gained 0.4% to $2,099.77.

Financial markets displayed cautious optimism Monday morning as potential progress toward ending the conflict with Iran boosted investor confidence, though uncertainty about the timeline for reopening critical shipping lanes tempered the enthusiasm.

Stock futures climbed while crude oil prices and the U.S. dollar weakened following signals that diplomatic efforts might resolve the nearly three-month conflict that has disrupted global energy markets and reshaped economic forecasts due to inflation concerns. The standoff has effectively blocked the strait that serves as a passage for a significant portion of worldwide energy supplies.

On Sunday, U.S. President Donald Trump advised his negotiating team against rushing into any agreement with Iran, as his administration sought to manage expectations about quick resolution prospects.

This came after Trump indicated just one day prior that the United States and Iran had “largely negotiated” a memorandum of understanding regarding a peace agreement that would restore access to the waterway, which previously handled one-fifth of international oil and liquefied natural gas transportation before hostilities began.

Energy markets responded dramatically, with crude oil hitting two-week lows at the start of trading. Brent crude futures dropped more than 4% to $98.83 per barrel, while U.S. West Texas Intermediate fell over 4% to $92.03 per barrel.

Currency markets also shifted as the euro gained 0.37% to $1.1646, and the Japanese yen strengthened to 158.85 against the U.S. dollar during early trading sessions, as the safe-haven dollar retreated from recent highs.

Technology-heavy Nasdaq futures advanced 0.89% while S&P futures increased 0.6%.

Nick Twidale, chief market analyst at ATFX Global, anticipates markets will embrace additional risk Monday but expects restraint until concrete confirmation emerges about the Strait of Hormuz reopening.

“We will need to see an agreement out in place in the coming sessions as we know there are still some major sticking points,” he said.

Asian markets prepared for strong Monday performance, with Japan’s Nikkei positioned for significant gains.

Commonwealth Bank of Australia strategists identified the most crucial concerns for financial markets in a research note, focusing on the timing of the Strait of Hormuz reopening.

“Under what conditions the Strait will re‑open and how long it will take to repair production facilities and infrastructure to ramp up production of energy and other goods to pre‑war levels,” they said.

Crude oil markets experienced significant declines on Monday, with prices falling to their lowest levels in two weeks as investors responded to growing expectations that the United States and Iran may be advancing toward a diplomatic agreement, despite ongoing disagreements on critical matters such as blockades affecting the Strait of Hormuz that continue to limit Middle Eastern oil supplies.

Brent crude futures dropped $4.71, representing a 4.55% decline to $98.83 per barrel by 2234 GMT, while U.S. West Texas Intermediate decreased $4.57, or 4.73%, reaching $92.03 per barrel.

Earlier during trading, both oil benchmarks reached their weakest levels since May 7.

Over the weekend, U.S. President Donald Trump announced that Washington and Iran had “largely negotiated” a memorandum of understanding regarding a peace agreement that would result in the reopening of the Strait of Hormuz, a waterway that previously handled one-fifth of worldwide oil and liquefied natural gas shipments before the current conflict.

Nevertheless, significant disagreements persist between the nations on various challenging matters, with Trump stating on Sunday that he had instructed his negotiating team not to rush into any agreement with Iran.

MST Marquee analyst Saul Kavonic commented: “Notwithstanding all the caveats and risks that remain to the peace deal and Strait of Hormuz, there is now some light at the end of the tunnel, which will bring some near-term oil price relief.”

Market experts anticipate that normalizing oil transportation through the strait and repairing damaged energy infrastructure will require several months to complete.

Uber’s board of directors gathered on Saturday to consider increasing their acquisition proposal for German food delivery company Delivery Hero, following rejection from a significant shareholder, according to a Financial Times report published Sunday.

The initial offer from Uber would have placed Delivery Hero’s value at more than 11.5 billion euros, equivalent to approximately $13.39 billion. However, a major shareholder turned down this proposal, prompting the ride-sharing company’s board to explore a higher bid.

Reuters has not been able to independently confirm the Financial Times report at this time.

Retailers nationwide are experiencing a sudden surge in demand for hacky sacks, the iconic 1990s toy that involves keeping a small bean bag aloft using feet and other body parts, following a wave of viral social media content that has sparked widespread interest.

Multiple vendors are documenting an unexpected boom in sales of the nostalgic toy after videos showcasing hacky sack tricks and gameplay began circulating widely on social platforms, creating supply chain challenges as demand outpaces availability.

A subsidiary of Nissan Motor has abandoned its investment plans for electric vehicle powertrain manufacturing in Britain due to weak European demand for the company’s electric vehicles, according to a report from the Nikkei business daily on Sunday.

JATCO had announced in January 2025 its intention to invest 48.7 million pounds ($65.39 million) in a Sunderland facility that would produce up to 340,000 electric vehicle powertrain units annually. These powertrains would combine the motor, inverter and reducer components for Nissan vehicles.

The cancellation follows Nissan’s announcement later in 2025 that the automaker would reduce its global manufacturing footprint from 17 production facilities to 10, while also reviewing its powertrain manufacturing operations. The company has been struggling with declining sales performance in both the United States and China markets.

Representatives from Nissan were not available to provide comment outside of normal business hours, and inquiries sent through JATCO’s official website have not yet received responses.

Milwaukee renters have launched an organized campaign aimed at removing one of the city’s biggest corporate property owners, according to a new investigative series by WUWM.

The radio station’s reporters Sam Woods and Jimmy Gutierrez are documenting this tenant organizing effort in their series titled “How to Evict Your Landlord,” which chronicles how residents are banding together to challenge a major landlord in their community.

The series explores the tactics and strategies being used by tenants as they work collectively to push back against corporate ownership of their housing.

A major German food delivery company announced Saturday that it has received an acquisition proposal from Uber, with the American ride-sharing giant offering 33 euros ($38.29) for each share of Delivery Hero.

The proposed price reflects a nearly 1.76% reduction from where Delivery Hero’s stock closed on Friday, based on LSEG market data.

Just one week ago, Delivery Hero revealed that the American company had expanded its ownership position to approximately 19.5% of outstanding shares, up from around 7%, establishing Uber as the German firm’s biggest shareholder. Reuters calculations indicate this stake has a value of roughly 1.7 billion euros.

The German company’s chief executive Niklas Oestberg announced his intention to resign last week, following pressure from multiple major investors calling for a comprehensive strategic evaluation.

Delivery Hero emphasized that its primary focus remains on implementing its strategic review process, though the company declined to provide further specifics regarding Uber’s acquisition proposal.

Financial news outlet Bloomberg had reported Friday that Uber was considering a complete buyout of Delivery Hero, news that caused Uber’s stock price to drop 1.6%.

The current exchange rate stands at $1 equals 0.8619 euros.

Economic pressures and rising costs dominated headlines this past week, with Americans feeling the pinch at grocery stores and gas pumps more acutely than a year ago. These financial strains are influencing decisions made by both families and companies nationwide.

Here’s an overview of significant economic developments from the past week and their potential impact on consumers.

Borrowing costs for potential homebuyers reached their peak in almost nine months this week, as the average long-term U.S. mortgage rate increased during what is typically the housing market’s most active season.

The standard 30-year fixed mortgage rate increased to 6.51% from the previous week’s 6.36%, according to Thursday’s report from mortgage buyer Freddie Mac. While this represents a significant jump, the current average still falls short of the 6.86% rate from one year ago.

Mortgage rates have generally moved upward since the conflict with Iran commenced. Energy markets have been disrupted by the Strait of Hormuz closure, which has caused crude oil prices to surge dramatically — becoming a major factor driving inflation.

Anticipation of elevated oil costs and concerns about mounting debt burdens for the U.S. government and other entities have driven long-term bond yields upward, pushing mortgage rates higher.

American retailers have been managing an unpredictable economic landscape for months, dealing with everything from President Donald Trump’s tariffs to the effects of skyrocketing fuel costs related to the Iran conflict. According to AAA, the average cost of regular gasoline increased once more this week, reaching approximately $4.55 per gallon by Friday. Current gas prices stand roughly 45% higher than they were during the same period last year.

Financial reports from major retailers including Walmart, Target, Home Depot, Lowe’s and TJX reveal that consumers remain cautious yet continue purchasing, supported by more substantial tax refunds. However, economists widely believe that spending will decline once these refunds are exhausted. Since consumer spending drives the U.S. economy, any reduction would have far-reaching consequences.

On Thursday, Walmart released projections for the current quarter that fell short of Wall Street’s expectations. Target increased its annual revenue projections on Wednesday, indicating expected continued momentum throughout the year. However, even these improved sales forecasts remained below first-quarter performance levels.

Applications for unemployment benefits decreased last week as job cuts stay minimal despite various uncertainties affecting the economy.

U.S. unemployment benefit applications for the week ending May 16 dropped by 3,000 to 209,000, according to Thursday’s Labor Department report. This figure came in lower than the 213,000 new applications predicted by analysts surveyed by data firm FactSet.

Weekly unemployment benefit filings serve as an indicator of U.S. layoffs and provide near real-time insight into job market conditions.

While layoffs remain historically low, economists describe the current labor market as being in a “low-hire, low-fire” phase. This situation has maintained the unemployment rate at a low 4.3%, but has made it difficult for jobless individuals to secure new positions.

The gap between Wall Street performance and typical American household experiences widened further on Friday, as U.S. stocks climbed toward completing their eighth consecutive winning week — the longest such run since 2023. This occurred despite a survey revealing that U.S. consumers feel more pessimistic about economic conditions.

Stock prices for Workday and Zoom Communications increased after both companies reported quarterly profits that exceeded analyst predictions.

These companies join a growing list that have surpassed profit expectations for early 2026. This series of positive earnings reports has helped keep U.S. stocks close to record levels. Over time, stock valuations typically align with corporate profit trends.

The head of Nvidia confirmed Saturday that China is part of the company’s ambitious $200 billion central processing unit market projection, indicating the tech giant still anticipates substantial future demand despite ongoing trade tensions between the United States and China.

Jensen Huang, Nvidia’s CEO, made the remarks to reporters after arriving in Taipei on Saturday. When questioned whether his market forecast encompassed China, he responded: “I would think so.”

The focus on central processing units has intensified as corporations increasingly adopt agentic AI technology – automated systems that operate independently – expanding demand beyond the graphics processing units typically used for training large-scale models.

Earlier this week, Huang worked to reassure investors that the world’s most valuable company could maintain its exceptional growth trajectory through a diverse customer base, with new products helping achieve the $1 trillion sales target for its primary AI chips.

During Wednesday’s earnings call, Huang announced that Nvidia’s new “Vera” central processors would open access to the new $200 billion market opportunity.

The company has obtained licenses from U.S. authorities to market its H200 chips but still awaits approval from Chinese regulators, who are promoting domestic chip manufacturers.

Recent discussions between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing failed to produce immediate progress for Nvidia’s H200 chip sales. Huang participated in those talks as part of the American delegation.

Last week, Reuters revealed that approximately 10 Chinese companies received U.S. clearance to purchase Nvidia’s second-most advanced AI chip, the H200, though no shipments have occurred yet.

“H200 has been licensed to ship to China. It would be terrific to be able to serve that market. The Chinese market is very important. It’s very large, of course,” Huang stated while speaking at Taipei’s downtown Songshan airport.

Huang’s visit to Taipei precedes next month’s Computex trade show. He indicated plans to meet with TSMC during his Taiwan visit, the global leader in contract chip manufacturing that produces many advanced semiconductors driving artificial intelligence advancement.

Travelers planning to use their accumulated airline miles and credit card points this summer are facing disappointing news.

Credit card holders who collect airline miles and travel rewards points will discover their accumulated balances provide less value during the upcoming travel season.

Jet fuel prices have surged due to the Iran conflict, pushing up both airline ticket costs and baggage fees. The Labor Department’s recent data shows airfares climbed 21% in April compared to the same month last year. Summer flights typically carry higher price tags due to increased passenger demand.

Travel industry experts warn that consumers hoping to redeem airline-branded credit cards or bank travel rewards for specific destinations or premium seats may need to contribute additional cash, select alternative locations, or accept less convenient flight times to maximize their account benefits.

During the initial phase of frequent flyer programs, airlines provided clear charts showing customers the exact mile requirements for upgraded service or distance-based flights. Today, nearly every carrier employs continuous fare adjustments through algorithm-driven dynamic pricing systems.

Point-based flight pricing now follows overall demand patterns, similar to cash fares. The monetary value of seats typically matches their point equivalent. Elevated airfares generally result in higher mile or point requirements for ticket purchases.

Well before current global oil supply disruptions, consumers, two U.S. senators, and former Transportation Secretary Pete Buttigieg criticized airline practices of raising point or mile requirements for free flights and reducing available reward seats before customers could use their loyalty earnings.

“There’s no question that dynamic award pricing, higher redemption rates on some domestic routes, and added fees have made it harder to find the outsized deals that travelers enjoyed a decade ago,” said Brian Kelly, the travel and credit card rewards expert better known as The Points Guy. “But that doesn’t necessarily mean points have lost value. It just means consumers need to be more strategic about how they redeem them.”

However, positive aspects exist for travelers.

Multiple methods exist for accumulating airline miles, with most programs offering no expiration dates. Enrolling in an airline’s frequent flyer program represents the most straightforward approach and typically requires no fees. Based on the carrier, members accumulate miles through flights with the airline or partner companies and can exchange them for benefits including flight discounts, seat improvements, or baggage allowances. Premium loyalty program levels also provide advantages such as priority boarding or waived baggage costs.

Leading airlines collaborate with financial institutions to offer co-branded credit cards that include annual fees. These cards generate miles for users with every purchase.

“When you’re going to spend money anyway, you might as well get something back for it,” said Adam Morvitz, a credit card miles expert and CEO of point.me, a travel loyalty platform. “If you’re already buying groceries, paying for gas or booking a hotel, a travel rewards card turns that everyday spending into points that can fund your next trip.”

Frequent flyer status or airline credit cards may provide summer cost savings in this area. To compensate for increased jet fuel expenses, several U.S. airlines have elevated checked baggage fees for domestic and many short-distance international flights. United Airlines increased first checked bag costs from $40 to $50. Delta Air Lines raised their initial checked bag fee from $35 to $45.

Airlines continue permitting customers with high-tier loyalty status or holders of credit cards like the Delta SkyMiles Card from American Express or United’s card with Chase to check bags without charge.

Financial companies including American Express, Chase Bank and CitiBank offer their own travel credit cards that provide points through purchases. Travelers seeking flexibility to fly with multiple airlines typically prefer these options. Card benefits may include airport lounge access, travel insurance, eliminated foreign transaction fees, and TSA PreCheck or Global Entry credits.

“For those who spend responsibly, the value is incredible as you’re able to get more in value from the perks, even if there is an annual fee,” he said.

For newcomers, Morvitz suggests flexible points cards rather than airline-specific choices because they allow transfers between loyalty programs and offer more redemption possibilities if airlines modify their award pricing. He advises consumers to select cards matching their actual spending patterns — such as cards offering bonus categories for groceries or dining — while evaluating whether annual fees justify the benefits they’ll genuinely utilize.

Many banks are advertising substantial sign-up bonuses as people develop summer travel plans, including offers of 100,000 miles or up to 150,000 miles or points for new customers who meet qualifications and spend specified amounts within designated timeframes — typically the initial three months. Kelly noted these bonuses create favorable timing for obtaining such cards, potentially making trips more affordable for those requiring additional points.

These enrollment offers can represent among the most valuable reward card features, sometimes worth over $1,000 in travel benefits, Morvitz explained. However, consumers should carefully monitor minimum spending requirements for qualification. He also suggests utilizing category bonuses and shopping portals to maximize rewards while always including frequent flyer numbers with airline bookings.

The crucial consideration is that bank travel cards or airline loyalty cards lose their value if balances are carried over. Average credit card interest rates range between 21% and 24%, meaning even a $1,000 balance can rapidly eliminate savings from complimentary checked bags.

“Travel rewards cards are one of the best financial tools available to responsible cardholders, but they’re designed for people who treat them like a debit card,” Morvitz said. “Spend what you’d spend anyway and always pay the balance in full each month. The moment you start carrying a balance and paying interest, the math works against you.”

Hotels present another area where travelers may receive reduced value from reward points this summer. Hyatt restructured its loyalty program this week, expanding from three tiers to five. While some budget hotel stays will maintain current point requirements, the same may not apply to Hyatt’s premium properties.

The travel blog One Mile at a Time calculated that some of Hyatt’s most exclusive properties could cost up to 67% more with points under the revised system.

“If you’re sitting on hotel points, don’t sit and hoard them. … They quickly seem to be getting less valuable,” said Sally French, who covers credit cards and loyalty programs for Nerd Wallet.

A major Silicon Valley law firm has agreed to pay $54 million to settle allegations that it played a role in enabling the massive fraud at collapsed cryptocurrency exchange FTX.

Fenwick & West, which served as outside legal counsel to FTX during its rise to become one of the world’s largest crypto platforms, reached the preliminary settlement agreement on Friday. The deal was filed in federal court in Miami and requires judicial approval.

FTX customers who brought the lawsuit claimed that the technology-focused law firm “helped to craft and implement strategies that facilitated FTX’s fraud.” Fenwick had been a primary external legal advisor as the exchange gained prominence before its spectacular 2022 collapse and bankruptcy filing.

Lead plaintiff attorneys, including litigator David Boies, told the court the settlement with Fenwick was fair and would help avoid the uncertainties of prolonged and complicated litigation.

In its Friday statement, Fenwick maintained its innocence, saying it “was not aware of the fraud at FTX, stands by the integrity of its legal work, and disputes wrongdoing of any kind, as we have consistently stated throughout this matter.” The firm, which has more than 500 attorneys on staff, added that “we look forward to putting this matter behind us” and concentrating on its business operations.

This settlement represents part of a second round of agreements stemming from the FTX legal battles. Previous settlements involved two former FTX executives.

FTX founder Sam Bankman-Fried received a 25-year prison sentence in 2024 after being convicted of stealing $8 billion from customers through a massive fraud operation. He entered a not guilty plea and has filed an appeal of his conviction.

A federal jury in Seattle has cleared Boeing of fraud allegations on Friday, rejecting claims that the aircraft manufacturer concealed safety issues with 737 MAX planes sold to LOT Polish Airlines in the previous decade.

The Polish carrier had alleged that Boeing committed fraud by concealing a crucial modification to the widely-used narrow-body aircraft’s flight control systems. This modification was connected to two deadly 737 MAX accidents in 2018 and 2019 that resulted in the aircraft being banned from flying worldwide for 20 months.

LOT Polish Airlines had been pursuing $153 million in compensation for losses it claimed were caused by the aircraft grounding.

Following a two-week court proceeding, jury members spent three hours in deliberation before reaching their decision.

“We are gratified by the jury’s verdict in our favor today,” a Boeing spokesperson said.

LOT Polish Airlines released a statement recognizing the decision while keeping open the possibility of filing an appeal.

“As the legal process may not yet be concluded, LOT will not comment further on the details of the proceeding at this stage,” the company said.

Florida Governor Ron DeSantis revealed on Friday that Blue Origin will invest $600 million to grow its Rocket Park operations in Cape Canaveral.

This major investment announcement comes at a time when Blue Origin’s competitor, Elon Musk’s SpaceX, is moving toward a public offering with an estimated worth of $1.75 trillion.

Key highlights of the expansion include:

• A massive 830,000-square-foot facility dedicated to manufacturing upper stages will create 500 aerospace positions, with workers earning an average of more than $98,000 annually.

• Blue Origin CEO Dave Limp described the initiative in a statement: “Project Horizon is the latest and most ambitious chapter in Blue Origin’s decade-long commitment to Florida.”

• According to Limp, Blue Origin has grown to employ nearly 4,000 people since 2015 and has invested over $2.3 billion through partnerships with 500 Florida suppliers.

• Financial backing for the project will come through the Spaceport Improvement Program, a collaborative effort between Space Florida and the Florida Department of Transportation, which previously supported Blue Origin’s new launch pad at Launch Complex 36.

• Blue Origin, the space venture owned by billionaire Jeff Bezos, currently holds the distinction of being the sole company that both builds and launches rockets from Florida.

• Federal aviation authorities directed Blue Origin in April to examine an upper-stage failure of its New Glenn rocket following an unsuccessful satellite mission launched from Florida.

Lantheus Holdings is considering a possible sale following a takeover proposal from Curium Pharma that puts the company’s value at approximately $7 billion, according to a Bloomberg News report published Friday citing sources with knowledge of the situation.

According to the report, both companies have been engaged in talks regarding a possible transaction that could be finalized within weeks, though sources noted that no definitive agreement has been reached and negotiations may not lead to a completed deal.

The report indicated that Curium received a valuation of roughly $7 billion in the previous year when CapVest Partners, the company’s owner, secured funding for a continuation vehicle for the nuclear medicine business.

Neither Lantheus nor Curium provided immediate responses to requests for comment from Reuters.

The radiopharmaceutical company’s stock declined almost 2% during after-hours trading. The shares have climbed 54.8% year-to-date, bringing the company’s market value to approximately $6.15 billion.

WASHINGTON, May 22 – Two federal banking agencies have given their approval to emergency shutdown blueprints submitted by America’s biggest financial institutions, outlining procedures for safely dissolving operations during bankruptcy proceedings.

The Federal Reserve and Federal Deposit Insurance Corporation found no deficiencies in these emergency plans, known as “living wills,” from the country’s 8 biggest banks and 56 foreign banking organizations. On Friday, the regulatory agencies also revealed that previously identified problems in submissions from Bank of America, Goldman Sachs, JPMorgan Chase and Citigroup have been properly resolved. These four institutions had received criticism from regulators in 2024 for failing to demonstrate adequate methods for safely dismantling their derivatives portfolios during potential bankruptcy scenarios.

Two top-level Walmart officials are stepping down in what represents significant organizational changes happening under CEO John Furner, according to reports from May 22.

Tom Ward, who serves as COO of the warehouse chain Sam’s Club, will be retiring from his position by month’s end. Meanwhile, Cedric Clark, who oversees store operations for the retailer’s U.S. business, is also exiting, though his departure has not received an official announcement.

The Wall Street Journal broke this story on Friday.

These executive departures come one day after the retail giant restated its cautious yearly sales and earnings projections.

The company had previously disclosed multiple leadership transitions earlier this year when CEO John Furner assumed control in February, taking over from Doug McMillon.

A Chinese technology company has initiated fresh legal proceedings against a Dutch semiconductor firm, seeking massive financial compensation in a dispute that could reignite international tensions over chip manufacturing control.

Wingtech Technology, along with a subsidiary, has taken legal action against Nexperia B.V. and five additional entities, claiming that restrictions on its authority over the Dutch chipmaker continue to impact operations. The company is provisionally requesting 8 billion yuan, equivalent to approximately $1.18 billion, to cover economic damages.

The legal filing was accepted by a court in China’s southern Guangdong province, according to documents submitted to the Shanghai Stock Exchange on Friday.

Nexperia responded to the lawsuit announcement, stating: “Nexperia has taken note of Wingtech’s announcement and understands that the relevant court has not opened the case for trial.”

The Dutch company expressed disappointment with the legal approach, adding: “We regret that Wingtech appears not to be interested at all in reaching a solution that would be beneficial to all stakeholders, including Wingtech’s shareholders, and continue to urge Wingtech to engage in an open dialogue.”

This renewed legal battle traces back to events that unfolded last September, when Dutch authorities assumed control of the Netherlands-based semiconductor company. Officials cited concerns that the firm was relocating operations and transferring intellectual property to China. The Dutch government subsequently reversed this decision.

The ongoing dispute has significantly impacted Wingtech’s financial performance. The company reported that its net losses expanded to 8.7 billion yuan in 2025, compared to a 2.8-billion-yuan loss the previous year, with the Nexperia control conflict contributing to the deteriorating results.

Earlier this year in January, Wingtech pursued international arbitration proceedings, seeking damages that could reach as high as $8 billion.

The current legal action references China’s anti-foreign sanctions law, which Beijing has been implementing with increased strictness. Wingtech Technology and Yucheng Holdings claim they are legally entitled to seek compensation under this framework.

In Friday’s court filing, Wingtech argued: “The defendants’ unlawful implementation of, or assistance in implementing, the discriminatory restrictive measures of the Dutch side has caused the plaintiffs irreparable and enormous losses.”

This latest lawsuit represents a potential escalation in a conflict that had remained relatively dormant since late last year. At that time, China agreed to reduce export restrictions on Nexperia semiconductor products in exchange for the Netherlands postponing its plans to seize operational control of Nexperia from Wingtech.

WASHINGTON — Kevin Warsh officially became the new Federal Reserve chair during a White House ceremony on Friday, with President Donald Trump presiding over the oath-taking and expressing optimism about economic cooperation while stressing the central bank’s independence.

Trump had repeatedly criticized Warsh’s predecessor, Jerome Powell, for hesitating to reduce interest rates, with the Republican president contending that decreased borrowing costs would boost the economy. The decision to conduct the ceremony in the East Room rather than at Federal Reserve headquarters demonstrated Trump’s satisfaction with the leadership change.

Rising gas prices, unsettled financial markets, and inflation worries stemming from the war with Iran have created economic uncertainty. These factors have raised questions about whether Warsh might respond to Trump’s appeals and advocate for the Fed to reduce rates.

However, Trump expressed confidence that Warsh would focus on economic strength.

“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is, that’s a good thing,” the president said. Trump said it was not necessary “to go crazy. Just let it go. We want it to boom.”

Supreme Court Justice Clarence Thomas conducted the oath administration. House Speaker Mike Johnson, R-La., Justice Brett Kavanaugh, CIA Director John Ratcliffe and Cabinet members attended the event.

“I expect he will go down as one of the truly great chairmen of the Federal Reserve that we’ve ever had,” Trump said of Warsh.

Republican President Ronald Reagan conducted Alan Greenspan’s Fed chair swearing-in at the White House in 1987. Republican President George W. Bush participated in the 2006 ceremony at central bank headquarters when Ben Bernanke assumed the role.

However, hosting the event at the White House creates additional concerns about the Fed’s independence during a period when Trump has repeatedly attempted to influence the independent central bank according to his preferences.

Trump’s Department of Justice initiated an investigation into Powell and the Fed’s extensive building renovations. Lawmakers criticized this action and the department abandoned the investigation. The Fed’s internal watchdog now oversees the matter. Powell’s term as chair concluded last week, although he has chosen to continue serving on the Fed board for the time being.

Trump emphasized during his comments, “Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent.”

“I want him to be independent and just do a great job,” Trump said. “Don’t look at me, don’t look at anybody. Just do your own thing.”

In the next breath, however, Trump said that “in the eyes of many, the Fed has lost its way in recent years” under his predecessor, Democratic President Joe Biden. Trump also suggested that Warsh is looking to lead policies that promote “positive economic growth” and that doing so did not have to mean higher inflation.

Trump also noted that the stock market had risen Friday. “That means they like you,” he said of Warsh.

Warsh once harshly criticized Fed’s policies, including its low interest rate policies coming out of the coronavirus pandemic, which he says contributed to the largest U.S. inflation spike in four decades in 2021-2022. More recently, he has sometimes echoed Trump’s demands for lower rates.

Warsh says productivity gains from artificial intelligence will help the economy grow more quickly without spurring inflation, enabling the Fed to reduce borrowing costs. Many Fed officials, however, disagree that AI’s development will support rate cuts, especially because the technology has also been blamed for large-scale layoffs in the computer sector and other parts of the economy.

On Friday, Warsh promised “to lead a reform oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.”

He told Trump that he believes “these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life. And the Fed has something to do with it.”

Warsh further noted that the Fed’s mandate “is to promote price stability and maximum employment. When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower; growth, stronger; real take home pay, higher and America can more prosperous.”

As he left the ceremony, Treasury Secretary Scott Bessent reinforced Trump’s message, predicting to reporters that Warsh will “do the right thing for inflation and growth.”

A massive $40 billion beauty industry merger crumbled Thursday evening when negotiations between American cosmetics giant Estée Lauder and Spanish fragrance company Puig suddenly collapsed after months of detailed planning.

The combination would have united major beauty brands including Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, creating a luxury beauty powerhouse appealing to social media influencers and wealthy younger consumers.

However, information leaks, disputes between the influential founding families, and specific requirements from beauty entrepreneur Charlotte Tilbury caused the discussions to break down, according to five individuals with direct involvement in the negotiations who spoke to Reuters.

During Thursday evening Barcelona time and morning hours in New York, Puig executive Marc Puig contacted Estée Lauder chairman William Lauder by telephone to evaluate the worsening circumstances, one source revealed.

Following that conversation, representatives from both companies began sending messages back and forth, a second knowledgeable source reported. Among those communications was a skull emoji indicating the merger was finished.

Representatives from both Puig and Estée Lauder refused to provide statements.

The final obstacle involved requirements connected to Charlotte Tilbury, who established the beauty company bearing her name that Puig controls through majority ownership, concerning her minority ownership terms, all five sources confirmed.

Charlotte Tilbury’s company also declined to comment.

The five sources, who had access to both negotiating parties, requested anonymity due to the private nature of the discussions.

Three individuals said both organizations had repeatedly approached the point of announcing their combination.

Estée Lauder had organized an advisory team that spent the previous weekend working on Puig’s valuation, which Spain’s securities regulator required for the planned deal, one source stated.

Conversations between the companies started in late 2023, according to one source.

After becoming publicly known in March, investors considered the potential agreement more beneficial for Puig than Estée Lauder. Puig’s stock price jumped while the American company’s shares declined.

The opposite occurred when negotiations failed, with Estée Lauder climbing approximately 10% Friday while Puig dropped 13%.

Estée Lauder shareholders’ opposition to the merger presented another challenge during talks, three sources indicated.

The company’s return to improved earnings performance in its latest quarterly report boosted its determination to stay independent, the same three sources noted.

The extended negotiations featured sessions in Paris, New York and Barcelona, reaching apparent preliminary agreements on matters including the new organization’s leadership structure.

Additional topics covered a potential stock exchange listing in both New York and Madrid, maintaining Barcelona as headquarters for the unified fragrance operations, and specifics for achieving the combined company’s cost savings, two people explained.

Both founding families, the Lauders and Puigs, sought to maintain influence in the merged organization, two knowledgeable sources said.

The companies also faced difficulties determining how to handle assets like Charlotte Tilbury and sun care brand Isdin – two of Puig’s primary revenue sources where the group lacks complete ownership, two sources revealed.

Economic pressures and rising prices dominated headlines this past week, affecting American families from shopping trips to major financial decisions. The combination of economic uncertainty and inflation continues to shape choices for both consumers and businesses nationwide.

Here’s what key economic developments from the week could mean for your finances.

Home loan rates jumped significantly this week, reaching their peak in almost nine months and making it more expensive for potential buyers during the spring housing season’s most active period.

According to mortgage buyer Freddie Mac’s Thursday report, the standard 30-year fixed rate mortgage increased to 6.51% from the previous week’s 6.36%. While this represents a notable jump, current rates still sit below the 6.86% level recorded one year ago.

Mortgage costs have generally moved upward since conflict with Iran started. Energy markets have been disrupted by the Strait of Hormuz closure, pushing crude oil prices significantly higher and fueling inflation concerns.

Rising oil price projections and concerns about expanding government debt levels have driven long-term bond yields upward, pushing mortgage rates in the same direction.

Retail companies across the nation have been managing challenging economic conditions for months, dealing with President Donald Trump’s tariff policies and the effects of rising fuel costs from the Iran conflict. AAA reported that regular gasoline averaged approximately $4.55 per gallon by Friday, marking another weekly increase. Current gas prices stand roughly 45% higher than the same period last year.

Financial earnings reports from major retailers including Walmart, Target, Home Depot, Lowe’s and TJX show consumers remain careful but continue purchasing, supported by larger tax refund amounts. However, many economists predict spending will decline once these refunds are exhausted. Since consumer purchases drive the majority of U.S. economic activity, any pullback would create widespread effects.

On Thursday, Walmart released current quarter projections that fell short of Wall Street predictions. Target increased its yearly revenue projections Wednesday, indicating expected continued momentum through year-end. However, even these improved sales forecasts remained below first quarter performance levels.

Unemployment benefit applications decreased last week as job cuts stay minimal despite ongoing economic uncertainties.

The Labor Department reported Thursday that U.S. unemployment benefit applications for the week ending May 16 dropped by 3,000 to 209,000. This figure came in below the 213,000 new claims that FactSet-surveyed analysts had predicted.

These weekly unemployment filings serve as an indicator for U.S. job losses and provide near real-time insight into employment market conditions.

While job losses remain historically minimal, economists describe the current labor market as being in a “low-hire, low-fire” phase. This situation maintains the unemployment rate at a low 4.3%, but creates difficulties for job seekers trying to find new positions.

The gap between Wall Street performance and typical American household experiences widened Friday, as U.S. stock markets climbed toward completing their eighth consecutive winning week, the longest such run since 2023. This occurred despite survey results showing declining consumer confidence about economic conditions.

Stock prices for Workday and Zoom Communications increased after both companies reported quarterly profits exceeding analyst predictions.

These companies join growing numbers that have surpassed profit expectations for early 2026. This series of positive earnings reports has helped maintain U.S. stock values near record levels. Over time, stock market performance typically aligns with corporate profit trends.

Three major international shipping companies have urged European Union finance ministers to adopt a gradual implementation strategy for upcoming customs duty regulations affecting small-value shipments.

DHL, FedEx and UPS submitted their request on Friday, advocating for a stepped approach to the new rules rather than implementing all provisions simultaneously.

According to a correspondence reviewed by Reuters, the shipping giants stated: “We therefore call on Ministers to endorse a phased approach: proceed with the EUR 3 flat-rate duty per item from 1 July 2026, while deferring the more complex and unresolved elements until they are legally certain and operationally viable.”

The companies are seeking to have the straightforward flat-rate fee of 3 euros per package take effect as scheduled in July 2026, while pushing back more complicated aspects of the regulation until operational concerns can be addressed.

The private space exploration company is preparing an innovative stock release strategy that would break from traditional market practices when it eventually goes public, according to recent regulatory documents.

Rather than following the standard 180-day waiting period that prevents early investors from selling shares after an initial public offering, the rocket manufacturer wants to implement a gradual release system tied to company performance metrics.

This departure from conventional practice is designed to prevent a massive dump of shares flooding the market simultaneously, which typically occurs when the standard restriction period expires for most newly public companies.

The space company is wagering on its own success to justify this accelerated timeline. Given the firm’s goal of reaching a $1.75 trillion market value, even modest share sales could generate tens of billions in transactions.

“It is probably better for the market that there will not be one big lock-up cliff,” explained Mayer Brown attorney Ali Perry, who focuses on public market debuts.

This uncommon but not unheard-of framework would permit select stockholders to begin selling as soon as the first quarterly financial report following the public debut, assuming strong company results.

Should the business and its stock price exceed expectations, the majority of restricted holdings could become available for sale over subsequent months, with any leftover shares freed up after the standard six-month window.

These limitations typically affect current stakeholders, staff members, major institutional backers, and individuals with access to confidential company information.

According to the filing, Musk controls 85.1% of voting authority and 12.3% of economic stake in Class A shares, and has committed to a 366-day sales restriction.

AI processor company Cerebras, worth over $100 billion, has similarly embraced a phased selling approach, which became more popular during the 2020-2021 IPO surge when businesses had greater negotiating power.

The gradual rollout distributes potential sales across time and promotes more stable post-IPO trading, though it may create extended volatility throughout the six-month timeframe instead of concentrated on one date, legal experts note.

“The staggered approach smoothes out the initial impact, but doesn’t eliminate the impact, just redistributes it,” Perry noted.

The proposal allows up to 20% of restricted holdings to be sold soon after second-quarter earnings are announced. Another 10% depends on the stock price climbing at least 30% beyond its initial offering value.

Additional 7% portions would become available at five intervals between 70 and 135 days post-listing, followed by another 28% after a subsequent earnings announcement.

Any remaining shares would become sellable at the 180-day milestone.

The space company has not yet revealed the total share count subject to the staged restrictions or the precise percentage of outstanding stock eligible for early release, with crucial numbers currently blacked out.

Beyond stock stabilization, companies often use staggered restriction periods to create different liquidity options for various shareholder categories, including workers and early backers, or to maintain tighter sales controls on senior leadership.

The rocket manufacturer has also not disclosed which holders make up the early-eligible group — such as those with privileged access versus institutional investors — and how achievable the performance-linked stock price targets will prove.

Beyond Musk, other major investors have similarly agreed to 366-day sales restrictions, though the filing doesn’t specify what portion of total holdings they represent.

Phased releases echo the previous major IPO wave of 2020 and 2021, when investment capital was plentiful and market appetite was strong. Some of that period’s largest public debuts — including Airbnb, DoorDash and Snowflake — implemented staged frameworks allowing certain shareholders to sell portions earlier while keeping directors and executives restricted for extended periods.

Recently, though, the market has mostly returned to straightforward structures. When variations do emerge, they tend to be focused rather than comprehensive.

Cerebras has also employed a phased insider release framework in its recent public listing, while Rubrik introduced performance-driven triggers connected to stock price benchmarks and earnings schedules.

Reddit and Ibotta have similarly used combined mechanisms linking share releases to earnings periods and trading blackout windows.

The sustainable clothing retailer that challenged fast-fashion practices by offering ethically-made affordable apparel is now owned by China’s leading fast-fashion company, Shein.

The Associated Press obtained a communication to Everlane staff from CEO Alfred Chang on Friday that confirmed the acquisition.

Financial terms of the transaction were not revealed by Everlane. Shein did not provide a statement when contacted.

Michael Preysman and Jesse Farmer established Everlane in 2011 with goals of creating environmentally responsible and reasonably priced garments. The brand promoted transparency through regular reviews of worker compensation, workplace conditions, and environmental effects. The digital-first company launched its initial brick-and-mortar location in 2017.

However, recent years brought scrutiny over the company’s employee relations practices, based on published reports.

Investment firm L Catterton purchased controlling interest in Everlane starting in September 2020. The private equity company also holds major positions in Boll & Branch, Etro and Birkenstock.

Preysman departed his leadership role in 2022.

“Like many brands, we’ve faced increasing pressure in a rapidly changing retail landscape,” Chang wrote in the letter. “This partnership allows us to remain independent, and gives us the stability and resources to make a larger impact, without compromising on the quality and standards that make Everlane, Everlane.”

Chang, who assumed the CEO position in 2024, stated the agreement would allow increased investment in products, innovation and personnel. He stressed that Everlane would maintain its independence while honoring its “sustainability” principles.

Chang confirmed he would stay as CEO with existing management remaining intact.

The acquisition comes as Everlane faces challenges. Revenue has declined while debt has increased, according to Neil Saunders, managing director of GlobalData Retail. The retailer requires new ownership for survival and Shein offers that financial support, he explained.

Through Everlane, Shein can expand beyond fast fashion, Saunders noted, as expansion within that sector becomes more challenging. Trade barriers and restrictions under the Trump administration have disrupted imports of low-cost garments that fuel fast fashion.

However, Everlane and Shein make an unusual pairing, Saunders observed.

While Shein probably won’t completely restructure Everlane’s supply chain, Saunders said, simply being connected to the Shein organization could be “somewhat jarring for core Everlane customers.”

“Ultimately, the deal likely saves Everlane,” he said. “But that salvation comes at a price.”

A federal appeals court has restored most of a massive judgment against Ford Motor Company in a software licensing dispute, bringing back $82.2 million of an original $104.6 million award won by Versata Software.

The U.S. Court of Appeals for the Federal Circuit on Friday reinstated damages that a Detroit jury had granted to Versata in 2022 for Ford’s contract violations, while ordering a new trial to establish appropriate compensation for the theft of trade secrets.

The original jury verdict had been thrown out in 2023 by U.S. District Judge Matthew Leitman.

Neither Ford nor Versata representatives immediately provided statements when contacted for comment.

According to court documents, Austin, Texas-based Versata provided automotive software licensing to Ford between 1998 and 2015, enabling the company’s engineers and marketing teams to work together on vehicle design with “seamless real time updates” across the globe. Versata alleged that Ford, headquartered in Dearborn, Michigan, started duplicating its software technology to avoid paying millions in yearly licensing costs.

The original jury had granted Versata $82.2 million for the contract breach and an additional $22.4 million for trade secret misappropriation. Judge Leitman had reversed the decision, ruling that Versata failed to provide sufficient evidence for jurors to properly determine damages.

However, the Federal Circuit determined Friday that the jury had established the contract breach damages with “reasonable certainty.”

Beauty industry giant Estee Lauder has called off acquisition discussions with Spanish fragrance company Puig, ending negotiations that could have brought together major cosmetic brands including MAC, Clinique, Charlotte Tilbury and Jean Paul Gaultier.

The New York-based cosmetics company had acknowledged the discussions in March, though officials stated at that point no deal had been finalized with the Spanish firm that has operated for over a century.

“We are grateful for the conversations we have had with Puig,” Estee Lauder CEO Stéphane de La Faverie said in a prepared statement late Thursday. “Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company.”

In February 2025, the cosmetics company announced potential workforce reductions affecting up to 7,000 positions through fiscal 2026, representing more than 11% of its total employees. De La Faverie had described the changes as part of efforts to make Estee Lauder “leaner, faster, and more agile” in its operations.

The Spanish company Puig manages various makeup, skincare and fragrance labels including Nina Ricci, Jean Paul Gaultier and Dr. Barbara Sturm. Puig became a publicly traded company on Madrid’s stock exchange in early 2024.

Following news of the terminated merger talks, Estee Lauder’s stock price surged more than 12% during Friday morning trading.