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The federal judge who will decide how to limit Google’s monopoly in search is looking closely at its power in a more nascent market: artificial intelligence.
On Friday in US District Court in Washington, Alphabet Inc.’s Google and the Justice Department began answering Judge Amit Mehta’s final questions in the government’s monopoly case against the search giant. It will be up to Mehta to decide whether to break up the company and reshape the internet or impose more limited penalties.
Mehta’s first questions to the government focused on whether curbing Google’s position in generative AI was a fitting way to address the company’s dominance in search.
President Donald Trump on Friday will host a press event to celebrate Elon Musk as the Tesla CEO concludes his official government service after four turbulent months leading the so-called Department of Government Efficiency.
Musk’s scheduled departure comes at a precarious moment, both for DOGE and for his relationship with the president.
Multiple top staffers at DOGE have either recently left or are on their way out of the federal workforce-slashing group. They include Steve Davis, the president of Musk’s Boring Company, and DOGE spokeswoman Katie Miller, White House officials told NBC News. Attorney James Burnham is also reportedly leaving the group.
Musk worked for Trump temporarily as a powerful and highly visible “special government employee” after spending over $250 million helping to get the president elected.
A solid month for stocks is ending on a weak note as President Donald Trump said Beijing “totally violated” a tariff agreement, with the market briefly extending losses on a news report that the US plans to broaden restrictions on China’s technology sector.
Following a torrid rally that put the S&P 500 on track for its best May since 1990, the gauge fell about 1% Friday. A slide big tech weighed heavily on trading, with Nvidia Corp. down 3.5%. Taiwan Semiconductor Manufacturing Co. is evaluating building an advanced production facility in the United Arab Emirates, according to people familiar with the matter.
Amazon.com Inc.’s cloud services chief says the company is aggressively expanding server farms globally and looking to boost access to the latest artificial intelligence chips from Nvidia Corp.
Amazon Web Services, the world’s largest seller of rented computing power and data storage, opened a cluster of data centers in Mexico earlier this year, AWS Chief Executive Officer Matt Garman said Friday in an interview with Bloomberg Television. The cloud division is also building out new facilities in Chile, New Zealand, Saudi Arabia and Taiwan, Garman said.
Amazon has said that its AI franchise is on pace to bring in multiple billions of dollars over the course of a full year. Garman said Friday that the figure “is AWS” and represents customer use of its on-demand AI services.
The Trump administration plans to broaden restrictions on China’s tech sector with new regulations to capture subsidiaries of companies under US curbs.
Officials are drafting a rule that would impose US government licensing requirements on transactions with companies that are majority-owned by already-sanctioned firms, according to people familiar with the matter.
Some of China’s biggest semiconductor design and fabrication firms are subject to US sanctions via the so-called Entity List, from Huawei Technologies Co. to Yangtze Memory Technologies Co., as part of a far-reaching US campaign to rein in a geopolitical rival’s technological ascent.
The goal of the new policy is to prevent workarounds to the curbs via the creation of new subsidiaries — a trend that’s produced what some US policymakers describe as a whack-a-mole problem.
Elon Musk was using drugs more heavily than previously known while on the campaign trail to help elect Donald Trump president, worrying some people close to the mercurial billionaire, the New York Times reported.
The chief executive officer of Tesla Inc. and SpaceX traveled with a medication box that held about 20 pills and was taking so much ketamine that it was affecting his bladder, according to the report, which cited private messages and interviews with people who know or work with Musk. He also took Ecstasy and psychedelic mushrooms on occasions, the New York Times said.
The report adds to Musk’s troubles as the world’s richest person formally steps away from his role advising Trump to return to a business empire under stress.
Gap Inc. slumped on Friday after the apparel retailer predicted a tariff impact of as much as $300 million, offsetting better-than-expected results at its biggest brands.
The shares fell 21% at 11:21 a.m., the most intraday since US President Donald Trump announced sweeping tariffs in early April. The drop erased Gap’s year-to-date gain.
On Thursday, Gap said tariffs could result in a $250 million to $300 million hit if they remain at current levels of 30% for most goods from China and 10% for other countries. The retailer said it has strategies to mitigate more than half of that cost.
Eutelsat Communications SA, the European satellite operator working to rival Elon Musk’s Starlink, is in talks with investors to raise €1.5 billion in a deal that would more than double the French government’s stake to 30%, people familiar with the matter said.
Eutelsat has been in talks with the French government, investor Fonds Strategique de Participations, shipping company CMA CGM and the UK government about participating in the fundraising, the people said, asking not to be identified because the deliberations are private. The funds would help build out Eutelsat’s low-Earth orbit satellite network, they said.
Eutelsat shares have gained about 50% this year, giving it a market value of €1.6 billion ($1.8 billion). The French government currently owns about 13.6% of Eutelsat’s shares. No final decisions have been made and the talks may not lead to an investment.
Former Goldman Sachs Group Inc. banker Tim Leissner didn’t think he should go to prison for his role in the looting of the Malaysian investment fund 1MDB. Neither did US prosecutors, who praised his cooperation with their investigation.
But US Judge Margo Brodie in Brooklyn, New York, paid more attention to what the bank had said in a letter to the court last week, which pushed back on the calls for leniency for Leissner. She sentenced the former banker to two years in prison Thursday, saying that without Leissner, the massive fraud may never have happened.
Leissner had faced as many as 25 years in prison over his involvement in the fraud that toppled the Malaysian government and led to investigations in six countries. Goldman paid more than $5 billion to settle global probes related to 1MDB, including $2.9 billion in the US in one of the largest penalties in history for a violation of US anti-bribery laws.
Turkish President Recep Tayyip Erdogan reiterated his opposition to interest rates while endorsing the country’s orthodox economic program, which relies on high borrowing costs to curb inflation.
“I’ve fought against an interest-based economic system,” Erdogan said at an event on Islamic banking, which prohibits charging interest and endorses profit-sharing. He added that he would continue to express his “longing” for an interest-free economy.
Erdogan said the current economic program would remain in place “until we reach our aims.” The ultimate goal of the program is to lower inflation to single digits, he added.
A decision that the Bank of England has to make in the next few months is posing a £4.3 billion ($5.8 billion) threat to Chancellor of the Exchequer Rachel Reeves’ spending plans.
By September, the BOE will announce the pace at which it will offload the gilts it owns next year under so-called quantitative tightening. The central bank has been shrinking the portfolio by £100 billion ($135 billion) a year but pressure is mounting to scale back the run-off amid strains in the UK government bond market.
The decision has potentially serious consequences for Reeves as the BOE is losing money on its £620 billion of gilt holdings and taxpayers are picking up the bill. The chancellor, whose slim £10 billion buffer against her fiscal rules is already under strain from proposals to reverse a cut to winter fuel payments and generous public-sector pay deals, can barely afford further costs.
The Energy Department is canceling some $3.7 billion in government support for clean energy projects it said did not warrant continued backing from the Trump administration.
The agency said the move came after the agency found the projects “failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars.”
Sixteen of the 24 projects were awarded during the Biden administration between Election Day and President Donald Trump’s Jan. 20 inauguration, the department said in a statement.
The Trump administration’s emergency order last week to extend the life of an ageing coal plant that faced permanent closure this weekend is baffling experts and enraging clean-power advocates.
The decree thrust the J.H. Campbell power plant on the shores of Lake Michigan to the fore of President Donald Trump’s push to revive the country’s struggling coal industry. Conservative lawmakers who called for the extension hailed the move as a way to help a Midwest electric system facing occasional stress, and to counteract a years-long shift away from the dirtiest fossil fuel.
The regional grid’s operator, however, said it did not ask for the action to be taken, raising questions on why it was deemed to be so urgent by the Trump administration.
OPEC+ is considering accelerating production increases further by discussing a potential hike of more than 411,000 barrels a day in July at a meeting on Saturday as the group seeks to recoup lost market share, according to people familiar with the matter.
Eight key members of the Organization of the Petroleum Exporting Countries and its partners are due to hold a video conference on Saturday to discuss output levels in July.
They stunned oil markets in April by announcing an increase of 411,000 barrels a day that was three times the volume planned, even as markets faltered amid slowing demand. The increase, which briefly dragged crude prices to a four-year low below $60 a barrel, was repeated at the same level the following month.
A strong jump in tariff-driven exports fueled Canada’s growth at the start of this year, offsetting domestic weakness in other parts of the economy.
Gross domestic product grew at an annualised pace of 2.2%, up slightly from 2.1% at the end of last year, Statistics Canada said Friday. The expansion exceeded even the most optimistic economist’s projection in a Bloomberg survey and was above the Bank of Canada’s forecast for a 1.8% increase.
Preliminary data also suggests some continued momentum at the start of the second quarter, with output rising 0.1% in April, led by mining, oil and gas, and finance industries. March’s growth of 0.1% — which matched expectations — was also driven by resource extraction sectors.
The European Central Bank is escalating its scrutiny of lenders’ exposures to private markets amid concerns that the fast ascent of related asset classes raises substantial new risks.
The watchdog has signaled that it’s sending letters to executives at certain banks cautioning them on their practices in financing private funds, according to people familiar with the matter.
In another indication of the ECB’s determination, it plans to conduct on-site investigations on the matter at several major European banks, the people said. The regulator’s staff recently visited Societe Generale SA in one of the first such exercises, they said.
President Donald Trump accused China of violating its preliminary trade deal with the U.S.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,” Trump said in a Truth Social post.
The personal consumption expenditures price index was expected to show a 2.2% annual rate in April, according to the Dow Jones consensus forecast.
Stock futures fell Friday morning after President Donald Trump said China violated its preliminary trade agreement, reigniting fears that the U.S. could enter a global trade war.
Futures tied to the Dow Jones Industrial Average lost 174 points, or 0.4%. S&P 500 futures and Nasdaq-100 futures each slid 0.6%.
Futures took a leg down on Friday morning after Trump claimed in a social media post that China “violated” its current trade agreement with the U.S. That comes after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks “are a bit stalled.”
US Treasuries are on track to deliver their first monthly loss this year, buffeted by renewed tariff uncertainty and growing anxiety over mounting levels of government debt.
A Bloomberg index that tracks the bonds is down more than 1.2% in May after all maturities came under pressure. The 30-year yield rose for a third consecutive month, its longest losing streak since 2023, while yields on two- and 10-year tenors posted their first monthly increase this year.
The poor monthly performance reflects the growing headwinds Treasuries face as the US administration’s unpredictable policies shake investor confidence. May saw a resurgence in worries over the US budget deficit as Donald Trump wrestles with Congress over a bill that promises to cut taxes.
New World Development Co. said that it plans to defer coupon payments due in June on perpetual bonds, as a deadline neared for the cash-strapped builder to notify holders of its decision.
The company said it has notified all holders of two perpetual securities with scheduled coupon payments on June 9 and June 10 that it has elected a deferral, according to a Friday filing to the Hong Kong Stock Exchange. It added that it intends to defer payments on two other bonds originally scheduled later next month.
China plans to allocate 500 billion yuan ($70 billion) of capital that could be leveraged up to fast-track new infrastructure projects as authorities seek to cushion the economy from US tariffs, according to people familiar with the matter.
Under the so-called “new financing policy tool,” the nation’s three policy banks will raise funds and buy stakes in projects, one of the people said, asking not to be identified discussing a private matter. The policy lenders may issue bonds or use other methods to tap financing, according to the person.
The initial capital injection of 500 billion yuan could amplify total investments by multiple times that amount, since it allows the projects to raise additional bank loans or other forms of financing, the person said.
Elon Musk attempted to scuttle a major AI infrastructure deal in the UAE after being excluded from the project, deepening his rivalry with OpenAI’s Sam Altman and complicating President Trump’s efforts to cement American AI dominance.
The Stargate AI campus — a joint venture involving OpenAI, Oracle, Nvidia, Cisco and Emirati firm G42 — was delayed after Musk intervened, claiming Trump would not support a deal that sidelined his xAI startup. Sources say the White House fielded backlash from Musk, who has become a polarising figure in Trump’s AI agenda.
Musk, who co-founded OpenAI but has since become one of its fiercest critics, was reportedly frustrated by Altman’s central role in the Stargate project. He has filed a lawsuit against OpenAI, questioning its for-profit shift and Microsoft ties, while his investor group’s $97.4bn takeover attempt failed earlier this year.
Despite his protestations, Musk was not in the UAE for the signing. He had been travelling with Trump in Saudi Arabia, and a senior official confirmed Musk had raised fairness concerns over how AI companies were being treated.
The feud has complicated Trump’s Middle East tech diplomacy. While the White House hailed the deal as a landmark US-UAE AI partnership, Musk’s involvement highlights growing frictions within America’s AI elite — and their global implications.
Donald Trump is preparing to ramp up US weapons sales to Taiwan beyond levels seen in his first term, as part of a broader strategy to deter China’s growing military assertiveness, Reuters reports. US officials expect arms approvals over the next four years to “easily exceed” the $18.3bn sold during Trump’s previous presidency.
Washington is also pressing Taiwan’s opposition parties not to obstruct plans to raise defence spending to 3% of GDP. The US has warned that its urgency cannot exceed Taipei’s own, urging local lawmakers to back a forthcoming special defence budget.
New weapons packages are likely to focus on missiles, drones and munitions — affordable assets aimed at strengthening Taiwan’s resilience against a potential Chinese invasion. While Trump has questioned Taiwan’s financial contributions in the past, US officials now insist his team is committed to “enhancing hard deterrence”.
Despite lacking formal diplomatic ties, the US remains Taiwan’s most important security partner. However, any further arms deals are expected to inflame tensions with Beijing, which claims the self-governed island as its own.
A trade court ruling may have halted key Trump-era tariffs, but many remain in place — and they still pack a punch. Yale Budget Lab estimates the average US household will lose $950 in purchasing power this year due to duties on steel, aluminium and cars, even if the court block holds.
Tariffs targeting specific countries were ruled unlawful this week, though an appeals court has paused that decision for now. The Trump administration is also eyeing new levies on pharmaceuticals, semiconductors, copper and lumber.
Economist Ernie Tedeschi said the court ruling, if upheld, could save households over $1,800 this year — but stressed the tariff battle is far from over.
Trade talks between the US and China have hit a standstill, with Treasury Secretary Scott Bessent urging direct intervention from Presidents Trump and Xi. Despite a May breakthrough in Switzerland that paused tariff hikes for 90 days, tensions persist as Washington tightens tech restrictions and Beijing holds firm on rare earth exports.
Bessent said a call between the two leaders may be needed to move talks forward, stressing their “very good relationship.” However, analysts believe China is unlikely to engage without assurances of no unexpected moves from the US.
Beijing has criticised recent US actions, including chip curbs and student visa revocations, accusing Washington of ideological posturing. While both sides maintain diplomatic contact, the path to a durable trade truce remains uncertain.
A sweeping new US tax bill is shaking global markets, threatening to hit foreign investors with sharply higher levies. The “One Big Beautiful Bill Act,” which passed the House and now awaits Senate approval, includes Section 899 — a controversial provision aimed at countries deemed “discriminatory” towards American firms, such as those imposing digital services taxes.
If passed, Section 899 would hike taxes on US income earned by investors from those countries by 5 percentage points annually, potentially reaching 20%. Analysts warn the move effectively weaponises the US tax code, turning capital markets into a new front in Washington’s trade war strategy.
Legal and financial experts say the bill could dampen foreign appetite for US assets, especially Treasuries, with implications for dollar strength and funding America’s deficit. European firms like Compass Group and InterContinental Hotels, and even foreign central banks, could see returns squeezed. The bill’s final form remains uncertain as it heads to the Senate, where significant amendments are expected.
Sanofi’s shares fell following mixed results of its experimental drug for a deadly lung condition.
Itepekimab, a medicine that is being jointly developed by Sanofi and Regeneron, is being tested as a treatment for chronic obstructive pulmonary disease in former smokers. Two late stage trials showed contrasting results, Sanofi said Friday, with one showing a reduction in worsening of the condition — called exacerbations — of 27%. The other trial didn’t show the same benefit despite having shown it earlier in the study.
Sanofi’s shares fell as much as 7% in Paris trading. They are down about 2% since the start of the year. Shares in Regeneron fell as much as 11.6% in premarket trading on Friday.
Israel has accepted a US ceasefire proposal for Gaza that Israeli officials familiar with the matter said would involve a 60-day pause in the fighting and restore United Nations-led aid distribution to the Palestinian territory.
Yet there’s still no sign an end to the almost 20 month war in Gaza between Israel and Hamas is imminent. While Hamas hasn’t officially responded, it criticized the proposal as one-sided late on Thursday.
The White House said that Israel signed off on the offer before it was submitted to Hamas but didn’t say what was in it. Two Israeli officials confirmed that decision.
Chinese automakers captured the biggest share of Europe’s electric-vehicle market in nine months, regaining ground lost after the European Union imposed tariffs last year.
Manufacturers led by by BYD Co. grabbed 8.9% of the region’s EV market in April, the most since July, according to researcher Dataforce. Chinese hybrid and combustion models also gained traction.
The latest figures underline the potent and evolving challenge Chinese manufacturers pose to European rivals. While EU duties that took effect in November initially halted Chinese EV gains, the past two months show renewed momentum. BYD, MG and others have also ramped up sales of more-conventionally powered models, adding to the pressure.
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