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The World
As the U.S. and its allies provide Ukraine with increasingly sophisticated arms, Washington has held discussions with Kyiv about the danger of escalation if it strikes deep inside Russia, U.S. and diplomatic officials tell Reuters. The behind-the-scenes discussions, which are highly sensitive and have not been previously reported, do not put explicit geographic restrictions on the use of weapons supplied to Ukrainian forces. But the conversations have sought to reach a shared understanding of the risk of escalation, three U.S. officials and diplomatic sources said. (Reuters)
Countries around the world have enacted a wave of export curbs on food since the start of the Ukraine war, a trend that economists say risks aggravating shortages and global food-price inflation. On nearly every continent, nations have put new restrictions and bans on products ranging from wheat, corn and edible oils to beans, lentils and sugar. Lebanon has even banned the export of ice cream and beer. The cascade of restrictions marks another setback for unfettered global trade, which has been dented in recent years by tariff and regulatory spats between the U.S. and China and moves by countries to safeguard supplies of medical equipment and vaccines during the coronavirus pandemic. (Wall Street Journal)
Russia's foreign ministry said that reporters from Western countries will be expelled from Russia if YouTube blocks access to its spokeswoman's briefings. (Reuters)
US secretary of state Antony Blinken says Washington will stay focused on China as the most serious threat to the international order despite Russia’s invasion of Ukraine. In the first broad articulation of the Biden administration’s policy toward Beijing, Blinken said China was the only country with the intent and capabilities to reshape the international order and that it was doing so in a way that would undermine global stability. “Beijing’s vision would move us away from the universal values that have sustained so much of the world’s progress over the past 75 years,” Blinken said at the Asia Society in Washington. “Under President Xi [Jinping], the ruling Chinese Communist party has become more repressive at home and more aggressive abroad,” he said. (Financial Times)
China is attempting to assemble a regional agreement with 10 Pacific island nations that would increase Beijing's role in their security while also extending educational and cultural opportunities in China for local young people, according to draft versions of the deal sent to the states. Foreign Minister Wang Yi is now touring the region to build support, but not everyone is on board: President David Panuelo of the Federated States of Micronesia warned the effort was meant "to acquire access and control of our region. (New York Times)
China unseats Japan as 'important partner' to top the ASEAN poll, as the Belt and Road Initiative seen expanding Beijing's influence in region. (Nikkei Asia Review)
World leaders, financiers and chief executives said they were leaving this week's World Economic Forum with an urgent sense of the need to reboot and redefine 'globalization'. The framework of open markets that has shaped the last three decades of commerce and geopolitics looks increasingly wobbly as trade spats fan economic nationalism, a pandemic exposes the fragility of global supply networks and a war in Europe could reshape the geopolitical landscape. (Reuters)
Brazilian President Jair Bolsonaro has decided to attend the Summit of the Americas in Los Angeles next month and plans to meet with U.S. President Joe Biden. (Associated Press)
As Senate Democrats push for gun safety legislation in the wake of two mass shootings, they’re running into a familiar problem: They need 10 Republicans to vote with them. Here are 10 Republicans to watch: Sen. John Cornyn (R-Texas); Sen. Thom Tillis (R-N.C.); Sen. Rob Portman (R-Ohio); Sen. Roy Blunt (R-Mo.); Sen. Susan Collins (R-Maine); Sen. Mitt Romney (R-Utah); Sen. Marco Rubio (R-Fla.); Sen. Lindsey Graham (R-S.C.); Sen. Pat Toomey (R-Pa.); Sen. Bill Cassidy (R-La.). (Politico)
The cityhood movement that’s been sweeping through Metro Atlanta came to an abrupt halt in Georgia’s May 24 elections: Voters defeated ballot referendums for three unincorporated areas that were hoping to turn into the newest cities of Cobb County, just west of Atlanta. The would-be cities — East Cobb, Lost Mountain, and Vinings — represent some of the wealthiest, and whitest, real estate in Atlanta’s western suburbs. Proponents of the proposals rallied around the issue of housing density, specifically whether these enclaves of mostly single-family homes would have to surrender to zoning changes requiring them to build larger quantities of smaller housing units to alleviate housing affordability problems. (City Lab)
The Middle East's $13 billion sandstorm problem is about to get worse. (CNN)
Economy
Russia’s central bank slashed interest rates for the third time since early April, taking aim at a blistering rally in the rouble that has seen the currency more than double against the dollar from its March nadir. The Bank of Russia cut its main interest rate to 11% from 14%. The dash to lower borrowing costs is a sign that Russian authorities are growing increasingly uncomfortable with the rouble’s rapid ascent, investors and economists said. The rouble’s strength not only belies a struggling domestic economy, which is expected to slump into a severe recession this year, but it puts pressure on government finances by lowering the local currency value of dollar-denominated oil and gas revenues. (Financial Times)
Anonymous tipsters, angry at Russia, help detect sanctions-busters. (The Economist)
One-click checkout company Bolt Financial laid off one-third of its workforce, just months after raising $355 million in VC funding at nearly an $11 billion valuation. Bolt had offered loans to employees who wanted to buy vested shares. Bolt's loans were 51% recourse, which means they're collateralized by employee's personal assets, while 49% were secured by the shares. Any loans tied to covering taxes were 100% recourse. Moreover, if an employee stops working at Bolt — for any reason — the loan must be repaid within 90 days. Imagine having your boss hand you a pink slip and then reach into your pocket, because that's exactly what's happening to some folks who worked at Bolt. A Bolt spokesperson says that only a "single digit" number of laid-off employees took out the loans, despite more than 200 people losing their jobs, and that the aggregate amount was below $200,000. Moreover, she says the company plans to "work with" those individuals. (Axios)
EY is working on a split of its audit and advisory operations worldwide in the biggest shake-up of a Big Four accounting firm in two decades, according to three people with knowledge of the plans. The proposal, which is still being thrashed out by EY’s senior partners, is a bold attempt to escape the conflicts of interest that have dogged the industry and brought regulatory action from the UK to the US. (Financial Times)
Morgan Stanley chief executive James Gorman said he had no plans to step down from the US bank he has run for more than 10 years — but that he has no intention of staying in the job until the day he dies. “‘Soon’ is the operative word and the answer to that is no,” Gorman, 63, said at the bank’s annual shareholder meeting on Thursday when asked if he planned to retire in the near term. (Financial Times)
Wall Street closed sharply higher after optimistic retail earnings outlooks and waning concerns about overly aggressive interest rate hikes by the Federal Reserve put investors in a buying mood. All three major U.S. stock indexes posted solid gains, with economically sensitive consumer discretionary and microchip stocks beating the broader market. (Reuters)
Fixed mortgage rates move lower for the second week in a row, as the 30-year fixed average dropped to its lowest level in five weeks. (Washington Post)
Technology
Apple plans to keep iPhone production roughly flat in 2022, a conservative stance as the year turns increasingly challenging for the smartphone industry. The company is asking suppliers to assemble roughly 220 million iPhones, about the same as last year, according to people familiar with its projections, who asked not to be named as they’re not public. Market forecasts have hovered closer to 240 million units, driven by an expected major update to the iPhone in the fall. But the mobile industry has gotten off to a difficult start to the year and production estimates are down across the board. (Bloomberg)
As Broadcom announced its deal to buy VMware for $61 billion, this piece explains how Broadcom turned a chaotic chip business into an enterprise software power broker. Broadcom was once just a colorful chip company. With the acquisition of VMware, it’s trying to become a software powerhouse. (Protocol)
An interview with Epic CEO Tim Sweeney: Epic will fight Apple and Google to keep the metaverse open. ‘Fortnite’ game creator says tech giants must not be allowed to use monopoly power to dominate new platforms, as they do with smartphone apps. (Financial Times)
Sony plans to ramp up PlayStation 5 production as supply chain issues ease, and a radical broadening of its game portfolio, including more PC and mobile titles. (Reuters)
The walls are closing in on Clearview AI: The controversial face recognition company was just fined $10 million for scraping UK faces from the web. That might not be the end of it. (MIT Technology Review)
Dyson reveals its big bet … robots. The UK manufacturer aims to roll out machines capable of performing household chores such as washing up by 2030. (The Guardian)
Smart Links
Microsoft to slow hiring in Windows, Office, Teams groups. (Bloomberg)
A top China VC firm struggles to raise funds after 10% return, U.S. investor fears. (The Information)
Millions to travel for Memorial Day weekend amid record-high gas prices. (Washington Post)
Spotify creates podcast “Call To Action” cards: A new way for advertisers to engage with podcast listeners through interactive podcast ads. (Spotify)
What Netflix’s layoffs say about DEI commitments. (Protocol)
Tennessee is about to become the 1st state to make camping on public land a felony. (NPR)