>>> Weekend Papers Summary

FINANCIAL TIMES
-US stocks rose on Friday, wiping out losses following Donald Trump's "liberation day" tariff announcement. Labor market data showed 177,000 jobs added in April, surpassing the 135,000 predicted by Bloomberg economists. The S&P 500 jumped 1.5%, marking the ninth consecutive daily gain for the S&P 500 since 2004. The S&P 500 had plunged as much as 15% in turbulent trading after Trump's announcement, triggering tumult across global financial markets. However, global equities have since largely recovered, thanks to signs of a possible thaw in trade tensions, including comments by China's commerce ministry that Washington expressed "a desire to engage in discussions" on trade.
-Canada's Prime Minister Mark Carney is set to meet with Donald Trump in Washington on Tuesday to revive a crucial trading relationship with the US. This is Carney's first foreign visit since winning the general election after a campaign overshadowed by Trump's taunts about Canada and tariffs on some of its exports. The two leaders have agreed to meet next week in the US capital. Carney said he had held a "very constructive call" with Trump and the focus will be on both immediate trade pressures and the broader future economic and security relationship between the two sovereign nations. King Charles will also deliver a speech to open the new parliament in Ottawa later this month, marking the first time in nearly 50 years that the monarch takes part in parliament's opening. Trump's mockery of Canada and threats to annex the country have sparked tensions between the two allies and trading partners.
-In 2022, Citigroup hired 27 analysts to work from its newly opened office in Malaga, Spain, to improve work-life balance and attract new talent. The office, which offered eight-hour days and free weekends, was criticized by rivals as a publicity stunt. However, Manolo Falcó, the bank's global co-head of investment banking, defended the initiative as not a gimmick. Less than three years later, the office closed and most staff moved to London. A few employees have been let go as the initiative aimed to break from traditional working conditions faced by junior analysts in investment banking. Citigroup selected 27 analysts from over 3,000 applicants when it launched its Málaga hub less than three years ago. Former employees and those involved in the project say the reality differed from the bank's pitch, with many working long hours in hopes of earning coveted roles in cities like London and Paris. The project was conceived by a trio of Citi executives, including Nacho Gutiérrez-Orrantia, María Díaz del Río, and Falcó. Each analyst was allocated to one of the industry teams in London, with Málaga potentially serving as a springboard to a job in the City if they performed well.
-Donald Trump has proposed a $163B budget cut to federal spending, aiming to eliminate programs deemed "woke," "wasteful," or "weaponized against ordinary working Americans." The budget, submitted to Congress, aims to cut non-defense spending by 22.6% to the lowest level since 2017, while increasing the defense budget. The plan would cut billions of dollars previously spent on foreign aid, healthcare, education, and the environment, codifying many of the cuts being implemented by the Department of Government Efficiency. Trump's budget wishlist comes as he intensifies his assault on the administrative state, with Elon Musk and Doge leading the effort to shrink the size of the federal government. However, many of the measures will face an uphill battle in Congress, where Trump's Republican Party holds a slim majority in the Senate and House of Representatives. The proposal outlines the president's priorities for discretionary spending, which does not include longer-term mandatory spending such as Social Security, Medicare, and interest paid on the federal debt.
-Two Congressional panels, John Moolenaar and Rick Scott, have urged the Securities and Exchange Commission (SEC) to delist Chinese groups, including Alibaba that they believe have military links that threaten US national security. The lawmakers wrote to SEC chair Paul Atkins to request action against 25 Chinese groups listed on American exchanges, including Baidu, JD.com, and Weibo. They claim these entities benefit from American investor capital while supporting military modernization and human rights violations. Despite their commercial appearance, the Chinese groups are "ultimately harnessed for nefarious state purposes" due to China's military-civil fusion program, which requires Chinese companies to share technology with the People's Liberation Army when ordered by Beijing. The push is part of the latest US effort to counter China and reduce its ability to use American capital, technology, and expertise to modernize its military. The US-China trade war has exacerbated tensions between the two countries.
-Cardinal Kevin Farrell, born in 1947, is the 'camerlengo', the custodian responsible for overseeing the Holy See's day-to-day operations during the interregnum between popes. He is the Church official responsible for organizing next week's conclave, the secretive election held to choose Francis's successor. Vatican insiders say he is the perfect person for the role, as he has always been a practical man with very good skills in administration and managing money. Farrell enacted centuries-old rituals intended to prevent attempted misuse of papal authority after Francis's death. The papal apartment was sealed to prevent looting, once common after popes died. Francis's fisherman signet ring was destroyed to thwart attempts to create fake documents with his seal. For the conclave, the camerlengo is now responsible for ensuring an "orderly election and its privacy", according to Universi Dominici Gregis — the apostolic constitution governing papal succession. Tasks range from ensuring the Sistine Chapel is swept for surveillance devices to vetting the cooks and housekeepers who will serve the cardinals — swearing them to perpetual secrecy about what they may see or overhear.
-Germany's new agriculture minister, Alois Rainer, has urged meat to be served at every school and kindergarten in Germany, as Friedrich Merz prepares to become chancellor. Rainer, a butcher by training, will replace Cem Özdemir as the top official in charge of food and farming after Merz takes office. He called for cheaper meat prices and inclusion of meat on menus for children, particularly in schools and kindergartens. Rainer's comments were met with enthusiasm by Markus Söder, the head of Rainer's Christian Social Union (CSU), who is a fan of the döner kebab and made Green-bashing a personal hobby during the campaign for February's nationwide elections.
-The US Department of Justice plans to force Google parent Alphabet to sell key parts of its digital advertising business, which was found to be an illegal monopoly. The DoJ told a federal judge that divestments of Google's ad exchange and publisher ad server businesses are the only way to break its dominance. The tech giant should also be required to share real-time ad bidding data with competitors. A trial date for the proposals and Google's rebuttals is set for September 22.
-The Israeli military is proposing a new system of aid distribution points in Gaza, manned by soldiers or private contractors, to address the extreme food shortages faced by 2M Palestinian civilians. The proposal would require Palestinians to travel to a humanitarian zone and pick up food parcels to carry back to their families. The military has ruled out distributing aid itself, but the system would allow Israel to screen Palestinians and decide which ones receive food. Implementing this system could remove some of the largest, most experienced, and deeply resourced relief agencies from the process of distributing aid to the besieged population. This is one of multiple options discussed by Israeli officials for allowing aid back into Gaza, a prospect that Prime Minister Benjamin Netanyahu's far-right coalition allies are opposed to.

NEW YORK TIMES
-The expansion of a tariff-free shipments loophole nearly a decade ago led to low-cost online retailers like Temu and Shein offering items directly from Chinese factories at significant discounts. This also led to billions of dollars in digital advertising, benefiting tech giants like Meta and Alphabet. In the last two years, only Amazon spent more on online advertising in the US than Temu or Shein. However, the shipping loophole's demise may end the advertising bonanza, as President Trump eliminated the exemption that allowed goods made in mainland China and Hong Kong valued at less than $800 to enter the US without import taxes. This means Temu and Shein are now subject to tariffs of up to 145% for importing Chinese goods.
-Temu, a Chinese e-commerce platform, has stopped shipping products from China directly to US customers. Instead, all US orders will be shipped from local warehouses in America. This change comes as the Trump administration closed a loophole that allowed products made in China and worth no more than $800 to enter the US without import fees. The exemption, which President Trump has called a "big scam" that hurt American small businesses, ended Friday. Temu said it would adjust its prices after Trump announced his intention to close the loophole, known as the de minimis exemption. Last week, the company started charging import charges for US customers who wanted to buy items from China, which in some cases more than doubled their purchase prices.
-President Trump has proposed a fundamental rewrite of the American tax code, suggesting that the US could stop taxing income under $200,000 and instead rely on revenue from his extensive tariffs. Trump stated that it may take a while before a complete tax cut is achieved, as the tariffs could be enough to cut all income tax. This idea was news to Republicans on Capitol Hill, who are already working on translating Trump's impulses for cutting taxes into law. Congressional Republicans are trying to incorporate several of Trump's previous tax proposals into the legislation, including not taxing tips, overtime pay, and Social Security benefits.
-President Trump has proposed the elimination of the National Endowment for the Arts and the National Endowment for the Humanities in his budget for the next fiscal year. The proposal, along with the Institute of Museum and Library Services, aligns with Trump's efforts to reduce the size of the federal government for accountability, waste reduction, and unnecessary governmental entities. The endowments, which were proposed in 2017 during Trump's first term, have remained alive due to bipartisan support in Congress, despite their budgets growing during the first Trump administration. The proposal aligns with Trump's efforts to decrease the size of the federal government.
-The US Army is planning a parade in Washington to celebrate its 250th anniversary on June 14, which coincides with President Trump's 79th birthday. The parade will feature 150 vehicles, 50 aircraft, and 6,600 soldiers. A fireworks display and a daylong festival will also be held, featuring equipment displays, musical performances, and a fitness competition. The Army is exploring ways to make the celebration even bigger, including more capability demonstrations, additional displays of equipment, and more community engagement. The celebration is in honor of the 250th anniversary of the Army's founding.
-Harvard University has resisted President Trump's threat to revoke its tax-exempt status, stating that there is no legal basis for such a move. Harvard has not explicitly pledged to challenge the revocation, which would impact the university's finances. However, a spokesperson for the university stated that there is no legal basis to rescind Harvard's tax-exempt status. The move would endanger the university's ability to carry out its educational mission, result in diminished financial aid for students, abandonment of critical medical research programs, and lost innovation opportunities. Trump declared on social media that the government would be "taking away Harvard's Tax Exempt Status" and defended the move as "what they deserve."
-Ghana's national cathedral, designed by celebrity architect David Adjaye, is a $400 million project that has been a major financial burden for the country, which is in "severe distress" due to the country's debt and the ongoing construction of the cathedral. The walls surrounding the cathedral are made of aging plywood and its spires are yellow construction cranes. The choir of frogs that frequently reverberates with singing during the half-finished foundations fill with rainwater. The new finance minister has stated that Ghana's economy is in "severe distress."
-Health and Human Services Secretary Robert F. Kennedy Jr. will direct federal health agencies to explore new treatments for the measles disease, including vitamins, as the US faces its largest single outbreak in 25 years. This decision is part of a series of actions that experts fear will undermine public confidence in vaccines as essential public health tools. The outbreak has swept through low vaccination rates in the Southwest, infecting hundreds and killing two young girls. Critics argue that Kennedy has focused too much on untested treatments and offered only muted support for the measles vaccine, which is 97% effective in preventing infection. The decision to focus more resources on potential treatments could have grave consequences at the center of the outbreak.
-Australia is set to vote in a general election, becoming the third major U.S. ally after Germany and Canada, amid a global economic and political landscape impacted by the second Trump administration. The two candidates, Prime Minister Anthony Albanese of the center-left Labor Party and opposition leader Peter Dutton of the conservative coalition, agree that the country faces a challenging environment. The country heavily relies on the U.S. for security and benefits from trade with China, which is exerting military ambitions closer to Australia's shores. However, the persistent cost-of-living crisis and worsening housing affordability have dampened the optimism that Australia is a recession-proof country with rich resources, high wages, and a stable government.

NEW YORK POST
-The Trump administration plans to cut staffing at the CIA and other intelligence agencies, including the National Security Agency, over several years. The CIA workforce will be reduced by 1,200, and thousands of positions at the NSA and other intelligence agencies will be cut. The reductions at the CIA include several hundred people who have already opted for early retirement. The rest of the cuts will be achieved partly through reduced hiring and would not likely necessitate layoffs. The CIA issued a statement saying CIA Director John Ratcliffe is working to align the agency with Trump's national security priorities. The CIA and NSA have already offered voluntary resignations to some employees. The CIA also plans to lay off an unknown number of recently hired employees. The new administration has also eliminated diversity, equity, and inclusion programs at intelligence agencies, though a judge has temporarily blocked efforts to fire 19 employees working on DEI programs who challenged their terminations.
-The State Department has approved the sale of F-16 fighter jet training, sustainment, and equipment to Ukraine in the first deal related to the recently signed mineral rights agreement. The $310.5M equipment and services will allow the US to earn credit in an investment fund established by the minerals deal, where profits will be split 50/50. Ukraine's purchase includes aircraft modifications, personnel training, spare parts, consumables, accessories, repair and return support, ground handling equipment, software delivery and support, publications and technical documentation, studies and surveys, US Government and contractor engineering, technical, and logistics support services, and other related elements of logistics and program support. The Defense Security Cooperation Agency (DSCA) stated that the proposed sale will support the US's foreign policy goals and national security objectives by improving the security of a partner country that is a force for political stability and economic progress in Europe.

WWD : Four Watches for the Formula 1 Fan

Four Watches for the Formula 1 Fan
IWC Schaffhausen, Tag Heuer, Roger Dubuis and Richard Mille have timekeepers that will get the hearts of the elite motorsports’ fans racing.

F1 Watches

Gears, wheels, movements galore. There’s no shortage of connections between mechanical beauties worth driving and those that can be worn on the wrist.
For the Formula 1 fan, WWD picked a quartet of watches that are likely to get the heart racing thanks to innovative materials, high-flying complications and feats of engineering.
Tag Heuer Formula 1 Solargraph, From $1,800
Tag Her Formula 1 Solagraph
Courtesy of Tag Heuer

When it was introduced in 1986, the colorful Formula 1 model design broke into a landscape dominated by gray scale metallic tones and serious timekeepers, fast becoming a bestseller that sold some 3 million units for its first generations, the watchmaker’s heritage director Nicholas Biebuyck told WWD last year.

With a 38mm size and a solar-powered movement, its 2025 descendants are just as color-filled as the original and already have a cool-kid collectible feel to them.

  • Two minutes of sun exposure are enough to power the watch’s Solargraph movement for a day. Once fully charged, it has 10 months of autonomy in total darkness.
  • The life accumulator that stores the energy in the Calibre TH50-00 movement has a 15-year lifespan — 10 times longer than a traditional battery. It is hidden under the semitransparent dial.
  • Its vibrant color-filled versions are made of TH-Polylight, a new lightweight, durable bio-sourced material that has been introduced for the occasion.
Which Formula 1 fan are you? Nine colors say that motor racing isn’t your only competitive sport. When it comes to fashion, you’re up to speed, too.
IWC Schaffhausen Ingenieur 40, $12,900
IWC Schaffhausen Ingenieur
Courtesy of IWC
Marking its 70th anniversary this year, this design family is best known for the Ingenieur SL, aka “Jumbo” or reference 1832, designed in 1976 by the legendary Gérald Genta. While not a commercial success at launch — the company even dubbed it “our most brilliant failure” in a short film released after Watches and Wonders — it’s getting its movie star ending.

Originally a custom prop worn by Brad Pitt in the upcoming “F1” feature film, one of the most anticipated releases of the year, its 1,000-piece limited edition with a striking green dial has the markings of a classic.
  • The caliber 32111 is automatic with pawl winding, a 4Hz frequency and 120-hour power reserve. It has a hacking seconds hand and quick-adjust date, too.
  • The movement is encased in a soft-iron inner cage, which shields it from magnetic fields that can negatively affects the accuracy of mechanical timepieces.
  • Its glass is secured against displacement by drop in air pressure, and it is water resistant to 100 meters.
Which Formula 1 fan are you? You’re all about those racetracks where experience and a sure hand are the only way to win.
Roger Dubuis Excalibur Spider Pirelli RDDBEX0826, $81,500
Roger Dubuis Excalibur Spider Pirelli
Courtesy of Roger Dubuis
The partnership between Roger Dubuis and Italian tire manufacturer Pirelli races on. Meant as a watch for those who live in the fast lane, the design brings together the “no rules, our game” ethos of the watchmaker with a winning flair: pieces of tires that won the world’s most demanding motor races in the world are inlaid in the straps.
  • Its automatic skeleton caliber is powered by a micro-rotor positioned at 11 o’clock and reduced to its most pared-back expression.
  • This iteration takes the line’s customization possibilities a step further thanks to a patented innovative lock technology that makes changes pit-stop fast. In addition to the strap and crown’s quick release system, the bezel has a precise position alignment snaps into place with one click.
  • Only winning Formula 1 tires make the cut as watch straps and you can trace the race and driver via a code on each one.

Which Formula 1 fan are you? Staying in the lead is all about shaving seconds wherever possible, whether it’s on a track or changing styles.
Richard Mille RM 43-01 Tourbillon Split-seconds Chronograph Ferrari, From $1.3 Million
Richard Mille Ferrari Carbon TPT
Courtesy of Richard Mille
What do Charles Leclerc, Lando Norris and Lewis Hamilton have in common? Richard Mille timepieces, of course.


This million-dollar number comes in two versions, one in titanium and the other in Carbon TPT, a high-tech material that shares properties of lightness and resistance with those used in Formula 1 cars. The former has red detailing while the latter sports Modena yellow tones. And of course, there are nods to the design elements seen on Ferrari cars, giving markers and even the logo plate on the bottom left corner a distinctive silhouette.
  • The skeletonized caliber has been tested to resist shocks of over 5,000g — the highest g-force crash survived by a human clocked in at 214.
  • Just like a car’s gearbox, the function indicator allows you to see the winding, neutral and hand-setting positions as the crown is pulled out.
  • Its latest-generation split-seconds mechanism was developed by Richard Mille and movement manufacturer Audemars Piguet Le Locle, or APLL. Among its features is the tourbillon at 5 o’clock, two six-column wheels to operate the different levers of the split-seconds function, a specific clamp design and a blade instead of the traditional helical spring.

FT : Saudi-led Opec+ expands production despite falling oil prices

Saudi-led Opec+ expands production despite falling oil prices
Oil cartel agrees to add 411,000 barrels a day for the second consecutive month

Eight Opec+ members, including Saudi Arabia and Russia, announced a second consecutive monthly increase of 411,000 barrels a day for June, even as oil prices continue to slide because of fears of oversupply and economic weakness. 

The oil cartel surprised the market last month by announcing a jump in production of the same size, more than three times as much as was expected. The combination of increased Opec supply and fears that US trade tariffs will dampen the global economy saw benchmark Brent crude fall by nearly a fifth since April 2 to $61 a barrel, near a four-year low. 

The move by Opec+ to again pump more oil into a falling market marks a significant change of approach, said Jorge León, a former Opec employee now at energy consultancy Rystad.

“Opec+ has just thrown a bombshell into the oil market,” he said, adding: “Last month’s decision was a wake-up call. Today’s decision is a definitive message that the Saudi-led group is changing strategy and pursuing market share after years of cutting production.”

For the past three years, Opec+ had cut collective output by nearly 6mn b/d to bolster prices, a strategy that initially kept crude above $90 a barrel through much of 2022. But its effectiveness has waned amid tepid demand, rising US output, and lax quota discipline among members.

Tensions within the cartel have grown, particularly with Kazakhstan, which has expanded output from its Chevron-led Tengiz field and indicated it would prioritise “national interests” over group quotas.

In response, Saudi Arabia has begun to unwind production curbs, pushing for this month’s increase.

The kingdom, which had cut its own production by 2mn b/d over the past three years, has grown increasingly frustrated with shouldering the biggest portion of the cuts, while other members, including Kazakhstan and Iraq, consistently pumped above their quotas.

Saudi officials are now comfortable with bringing back supply even if it leads to a prolonged period of lower prices, according to people familiar with the kingdom’s thinking. It is unclear why Saudi, which is struggling to balance its national budget because of lower oil prices, has pivoted to the new strategy, which is likely to lead to lower oil prices for the rest of this year. 

Some analysts questioned how much oil would actually reach the market. Bjarne Schieldrop, chief commodities analyst at SEB, noted that Opec+ production in April fell by 200,000 b/d due to Venezuelan sanctions, and said the planned increases might fall short if past quota violators such as Kazakhstan, Iraq and the UAE reined in output.

WSJ : Warren Buffett Kicks Off Berkshire Meeting With Staunch Defense of Trade

Warren Buffett Kicks Off Berkshire Meeting With Staunch Defense of Trade
Buffett said the U.S. benefits when the rest of the world prospers; ‘Trade should not be a weapon’

OMAHA, Neb.—Warren Buffett’s many followers didn’t have to wait long to hear his views on the global trade war.

The legendary investor made a vigorous case for trade as Berkshire Hathaway’s annual meeting kicked off Saturday, though he acknowledged it makes sense to try to limit trade deficits.

“We should be looking to trade with the rest of the world, and we should do what we do best and they should do what they do best,” Buffett said.

President Trump’s trade policies have rocked the markets in recent weeks, and were the focus of the very first question posed to the legendary investor in the lengthy question-and-answer session that has long been the annual gathering’s highlight.

On Saturday, Buffett was asked about a 2003 article in Fortune magazine in which he proposed the U.S. seek to balance its foreign trade by issuing certificates that would be required to import goods. Giving the certificates to U.S. exporters who could then sell them to parties wanting to bring goods into the country would allow American producers to cut their prices in international markets, he wrote.

“Charlie thought it was a little Rube Goldberg,” Buffett said of Charlie Munger, his longtime business partner who died in 2023, and his views on the import-certificates idea. “It’s gimmicky, but it’s certainly a lot better than what we’re talking about now. … Look at the attitudes it’s brought out in the United States.

“I don’t think it’s a great idea to design a world where a few countries say ‘ha-ha-ha, we won’ and the rest of the countries are envious,” Buffett added.

Buffett, Berkshire’s chairman and chief executive, took the stage at 8 a.m. central time in Omaha, home to his conglomerate and the site of Saturday’s annual meeting. Flanked by his successor-in-waiting, Greg Abel, and Ajit Jain, the executive who runs Berkshire’s insurance business, Buffett will answer shareholders’ questions until 1 p.m.

There is much to discuss. This year’s meeting comes at a tumultuous moment for the markets and the global business world. President Trump’s trade war has dominated the headlines, and investors were eager to hear Buffett’s views on his policies. But there are other subjects that have stoked their curiosity, too, including his thoughts on Berkshire’s stake in Apple and its massive cash trove.

At the start of Saturday’s meeting, Buffett paid tribute to Apple Chief Executive Tim Cook, one of the luminaries in attendance. “I’m somewhat embarrassed to say Tim Cook has made Berkshire a lot more money than I’ve ever made,” Buffett said.

James Sinanis, a shareholder from Raleigh, N.C., who works for a home-building company, said before the start of the gathering that he wanted to know what Buffett thought about tariffs.

At past meetings, Berkshire stock owners have pressed Buffett for his opinions on everything from broad economic trends and general investment advice to highly specific reviews on Berkshire’s portfolio of businesses and stockholdings. A question asking whether Buffett saw similarities between the current stock market and the lead-up to the dot-com crash might be followed by one asking about profit margins at Berkshire’s BNSF Railway.

Shareholders and fans lined up early Saturday morning to ensure their seats in the arena before the legendary stock picker speaks. A day earlier, long lines wound around the front of Omaha’s CHI Health Center, located near the Missouri River, as visitors and locals waited to pick up their meeting credentials and enter a shopping exhibit.

Inside, they perused products and swag from Berkshire subsidiary companies: Justin cowboy boots, plush geckos from insurer Geico, Berkshire-branded shoes from Brooks Running, icy Dairy Queen treats going for as little as $1. They lined up to examine a mock NetJets aircraft as well as a Clayton home that had been built in Minnesota and then driven to Omaha before being reassembled.

Shoppers at Oriental Trading could snap up memorabilia including a Buffett bobblehead and rubber ducks styled as Buffett and Charlie Munger, Buffett’s friend and partner who died in 2023.

Visitors spoke of their admiration and affection for the two men. Elizabeth Rosen and Bill Craft, retirees from Fayetteville, Ark., had followed Berkshire from afar. After Munger’s death, they decided to travel to Omaha to check out the scene and to see Buffett, who is 94 years old.

“They are icons,” Rosen said. “It may never be the same once Warren is gone.”

Saturday kicked off with the release of Berkshire’s results for the first quarter. The company reported net income of $4.6 billion, or $3,200 a Class A share equivalent. That was down from $12.7 billion, or $8,825 a Class A share equivalent, a year earlier.

Operating earnings, which exclude some investment results, fell to $9.64 billion from $11.22 billion last year.

Buffett emphasizes operating earnings as a gauge of Berkshire’s performance, because unrealized gains and losses in the company’s investment portfolio can drive big swings in its quarterly net income.

Berkshire’s trove of cash and Treasury bills rose to a record $333 billion, after accounting for a payable for purchasing some of the short-term government debt, from $321 billion at the end of last year.

One contributor to the continued cash buildup: Berkshire was a net seller of stocks for a 10th consecutive quarter. The company sold $4.7 billion of equity securities in the first three months of the year while buying $3.2 billion.

Berkshire also held off again for another quarter on buying back its own stock.

In his annual letter in February, Buffett played down the growth in cash, saying that most of shareholders’ money was in equities when Berkshire’s subsidiary companies were counted along with its stock portfolio.

Berkshire’s Class A and B shares have climbed 19% this year, compared with a 3.3% drop in the S&P 500.

FT : Spain’s power and information blackout

Spain’s power and information blackout
If governments want to decarbonise while maintaining public trust, they will need to invest in the right infrastructure

Spain and Portugal suffered a catastrophic power outage on Monday, bringing both countries to a sudden halt.

The Iberian peninsula is something of an energy island, with few connections to European grids. But with its abundance of wind and sunshine, the region is at the vanguard of efforts to decarbonise power systems. A failure there has potentially huge implications for the energy transition in the rest of Europe, arguably the biggest industrial, economic and societal transformation for decades — one that is being increasingly contested politically. For critics of net zero policies and the shift to renewables it was a gift.

Many experts have rebutted claims that the rise in solar and wind power per se is to blame. But as the FT’s editorial board observed, such a systemic grid collapse should serve as a wake-up call for governments everywhere to bolster network resilience. I’m at ben.hall@ft.com.

Radio silence
The blackout caused massive disruption and for some people distress, shutting businesses, stranding travellers and cutting off mobile communications. Spaniards once again showed the impressive civismo or public spiritedness that characterised their handling of the pandemic and the catastrophic flood in Valencia last year. For some, it offered a brief journey back in time to the pre-digital age, with analogue radio the only source of information. Battery-powered sets quickly sold out in stores in Madrid.

The lights mostly came back on in the early hours of Tuesday. But Spaniards, Portuguese and their European neighbours were left in the dark for days about the causes of the outage.

Blame game
In Spain’s highly polarised political climate, it was not surprising that the leftwing government led by prime minister Pedro Sánchez would take the blame. It has accelerated the renewables rollout and is planning to phase out nuclear power from 2027.

After the Valencia floods, Sánchez’s government and the opposition conservative People’s Party, which runs the regional government, attacked each other for failing to warn residents of the impending deluge.

This week Alberto Núñez Feijóo, the PP leader, criticised the government’s “information blackout” and said the nuclear phase out plan would make Spain’s energy supply more unstable. Santiago Abascal, the leader of the hard-right Vox party, demanded the government abandon its “climate fanaticism”. He and other Vox figures have mischievously pointed out that the blackout hit shortly after a judge in Badajoz said she would be pressing charges against the prime minister’s brother David for abuse of public office.

The prime minister has meanwhile pinned the responsibility on Spain’s private-sector energy companies, including Red Eléctrica, which operates the high-voltage grid. Electricity generators including Iberdrola have said it is up to RE to explain what went wrong. RE in turn has blamed the generators.


Beatriz Corredor, RE’s chair and a longtime friend and political ally of Sanchez, gave a round of interviews defending the operator, saying it had done nothing wrong. Its rapid reconnection of the entire grid proved it was the “best” network operator in Europe, she claimed. In terms of corporate communications, it was as tone-deaf as it gets. Whatever the original cause of the blackout, RE did not prevent the whole power supply collapsing which is its job. Punto.

Inertia good and bad
Many experts believe the grid’s inability to manage a predominance of solar energy in the supply mix on Monday was the reason for the grid’s collapse. My colleague Ian Johnston spoke to some of them in this piece and here’s our explainer earlier in the week.

In a nutshell, a sudden and unexplained drop off in supply to the grid shortly after 12.30pm caused the grid’s frequency to drop below the required 50hz and the voltage to surge. The operator normally uses the inertia of spinning turbines in conventional power plants to balance the frequency. But for some reason, it appears, it did not have enough of what the experts call “rolling synchronous capacity” to do the job before the system tripped out.

For a more detailed account of what probably happened, see this interview with Jorge Sanz, a leading former Spanish energy official and International Energy Agency board member, for the website Ethic (in Spanish). Ed Conway of Sky News illustrates the importance of inertia to power grids in this thread on X.

These are complex and technical issues and, as experts warn, it is easy to jump to the wrong conclusions. Is Spain really endangering Europe’s energy security with its “over-reliance” on intermittent solar and wind? Or does it just lack adequate tools for managing those sources?

Alongside keeping some conventional turbine capacity, grids should be investing in technologies to keep the power supply stable, including artificial intelligence. Batteries can provide instant balancing, but according to this report for El Confidencial (in Spanish) Spain is years behind other countries in installing battery storage.

Antonio Cabarga, an electrical systems engineer, pointed out on LinkedIn that it is relatively easy for renewable power installations to put in place frequency inverters, which can provide “synthetic inertia” to the grid, mimicking turbines. But Spanish regulation does not yet allow it to be used, he said.

Governments do not pay enough attention to upgrading power networks, perhaps because it means acknowledging that there are additional costs to the renewables rollout. To its credit, the European Commission has been banging the drum on this for some time. Its 2023 grid action plan noted that 40 per cent of Europe’s network infrastructure is more than 40 years old and with the planned doubling of cross-border interconnections by 2030, it would need €584bn in new investment.

Mario Draghi’s competitiveness report also underscored the importance of investing in grids and in cross-border interconnectors. More extensive power links with France may not have prevented Monday’s blackout but could help to make power supply more stable and more efficient.

Governments and grid operators across Europe will now come under pressure to show they are doing everything necessary to ensure that a blackout on this scale does not happen again otherwise voters may lose confidence in the green transition.

FT : Bordeaux wine producers slash prices as wealthy collectors stay away

Bordeaux wine producers slash prices as wealthy collectors stay away
Falling demand hits centuries-old ‘en primeur’ system under which fine wine is sold before it is bottled

Some of Bordeaux’s top winemakers have slashed prices for their latest vintage of yet-to-be-bottled wines by more than 30 per cent in a further blow to a centuries-old market as wealthy investors step back from fine wine purchases.

A poor quality harvest last year due to heavy rainfall and cooler temperatures, a large amount of higher quality bottled wine already available on the market and a lack of interest among younger collectors have all made this year’s so-called en primeur campaign a particularly tough one for the French region’s producers.

The system, which dates back to the 18th century and centres on an annual spring festival, offers Bordeaux’s best wines for sale before bottling via local dealers, known as négociants, for delivery a year or more later. Popularised in the late 1970s, it once offered the best way to gain access to wines in high demand before they rose in price.

But less interest in fine wine among the younger generation of wealthy investors and declining alcohol consumption have all hit demand. Consultancy Bain says that 65 per cent of drinkers in the top 10 consumer markets are moderating their alcohol intake.

In April, two of the best-known producers, Lafite Rothschild and Angélus, both released their priciest 2024 red wines at 31 per cent discounts to 2023’s vintage. Lafite’s is priced at €288 per bottle wholesale while Angélus’s is €180. Both are the lowest prices since 2014.

Many in the industry are now questioning the viability of the system in Bordeaux.

“If en primeur offers value then it is a valid sales model,” said Ella Lister at consultants Wine Lister. “But it’s just that [recently] en primeur has not done so.”


Prices have fallen sharply in recent years. An index of the 10 most recent vintages of five top Bordeaux producers compiled by wine exchange Liv-ex has declined almost 27 per cent in sterling terms in the two years to March.

With so much matured wine now available at similar or lower prices, many wealthy collectors have shied away from the 2024 vintage that has been offered en primeur since last month. Last year’s en primeur sales for the better-rated 2023 vintage also struggled.

“The major theme is that most investors [in Bordeaux wine] no longer need to buy and hold [en primeur] for the long term, given the stocks of back vintages available,” said Chloe Ashton, of 1275 Fine Wine in Switzerland, a merchant and adviser to wealthy collectors.

“High-end claret buyers everywhere have drastically reduced their volumes,” she added.


Bordeaux is also facing increased competition from other wine-growing regions. Both Burgundy in France and other countries such as Italy and the US have grabbed market share. In 2014, Bordeaux accounted for well over half of the trade in fine wine, according to Liv-ex. Last year, that proportion had dropped to about a quarter.

Last year’s poor harvest, as the region’s climate changes, did not help.

“It’s a really tough time to sell these wines. This is not an unmissable vintage,” said wine critic Jane Anson.

Merchants hoping for a positive reaction from buyers to the lower prices have so far been disappointed.

“It’s very challenging now, the most I’ve ever known,” said Miles Davis, fine wine consultant at merchant Vinum Fine Wines. “The worst [market] in at least 20 years.”

FT : Warren Buffett sells stocks for tenth quarter in a row

Warren Buffett sells stocks for tenth quarter in a row
Veteran investor says ‘trade should not be a weapon’ in dig at Donald Trump’s tariffs policy

Warren Buffett continued to sell stocks in the first three months of 2025 amid a broad market sell-off, according to a regulatory filing ahead of the historic 60th annual meeting of his holding company Berkshire Hathaway.

The figures showing he offloaded stocks for the tenth consecutive quarter came in a quarterly earnings report that also noted Berkshire’s insurance arm took a $1.1bn hit from the January wildfires in California.

Buffett sold $4.7bn in stocks in the three months to March 31, more than the $3.2bn he purchased.

That helped swell Berkshire’s cash pile, which rose to another record of $348bn as money poured in from Buffett’s sprawling business empire, which spans insurance, manufacturing, utilities and one of North America’s biggest railways, along with the interest paid on his portfolio of US Treasuries.


Asked about the huge cash reserves at Saturday’s meeting, Buffett said: “Things get extraordinarily attractive very occasionally.” At some point, he said, the company would be “bombarded with offerings that we’ll be glad we have the cash for”.

Tens of thousands of Berkshire’s shareholders attended the event, with high-profile figures including Hillary Clinton and Apple chief executive Tim Cook in the crowd. Some attendees said they made the trek to Omaha in case it was Buffett’s last time presiding over the meeting.

The event provided Buffett with the first opportunity to weigh in on markets and the economy since US President Donald Trump last month launched a trade war by unveiling plans to slap new tariffs on imports from most other nations.

Buffett tries to avoid commenting on politics but, during a marathon question-and-answer session, the 94-year-old sharply criticised tariffs without mentioning Trump.

“Trade should not be a weapon,” he said. “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best.”


He later shrugged off a question about American exceptionalism, arguing that the country has undergone waves of cataclysmic change ever since its founding.

Changes in net profit at Berkshire largely reflect swings in the value of its $264bn equity portfolio and other investments. In the first quarter, bottom line earnings were $4.6bn, down from $12.7bn in the first quarter last year.

Buffett directs shareholders to pay more attention to operating profit, which was $9.6bn, down from $11.2bn. The decline largely reflected lower insurance underwriting profits, including the hit from the California fires. Wildfires raged for days across Los Angeles, destroying thousands of homes in some of the country’s wealthiest neighbourhoods.

Berkshire Hathaway shares have been on a tear in 2025, rising 20 per cent to close on Friday at a record $809,808.50 for the “A class” stock. Berkshire once again authorised no share buybacks in the first quarter.

The Information : Anthropic to Buy Back Employee Shares at $61.5 Billion Valuati

Anthropic to Buy Back Employee Shares at $61.5 Billion Valuation

The Takeaway
• The 4-year-old startup will buy shares from staff, former employees
• The buyback follows a $3.5 billion capital raising
• Startups are using share sales to reward employees

Anthropic is offering to buy back shares from hundreds of current and former employees, the first transaction of its kind for the four-year-old company. The buyback is a sign of how integral these have become in rewarding employees at fast-growing startups and retaining rare research talent in the artificial intelligence talent war.

San Francisco–based Anthropic is allowing current and former employees who worked for the company for at least two years to sell up to 20% of their equity, with a maximum of $2 million each, the person said. The buyback values the AI startup at $61.5 billion, the same valuation as in its March fundraising, according to a person familiar with the transaction, which could amount to hundreds of millions of dollars.

The buyback should be finalized by the end of the month, the person said. The company, founded by former OpenAI researchers, currently employs more than 800 people, up from about 300 at the end of 2023.

Large secondaries have become commonplace among startups nearing the decade mark, which is around the time many have historically gone public. OpenAI, now nearly a decade old, has allowed employees and ex-employees to collectively sell about $2.7 billion worth of shares in the past few years. Last year, design company Figma and enterprise software firm Databricks similarly allowed some employees to sell hundreds of millions’ worth of shares.

Not every startup allows former employees to cash in their stock. Data-labeling firm Scale AI, which is close to finalizing a $150 million share sale valuing it at around $25 billion, is excluding ex-employees from the transaction.

While many of those startups have arranged sales of employee stock to investors, profitable startups ByteDance and Stripe have bought back employee shares. This strategy can limit the number of new investors in a company and involves less work than a share sale.

Anthropic is still burning cash. But it has just raised $3.5 billion in capital led by Lightspeed Venture Partners, bringing its total raised to more than $15 billion. The latest valuation is equivalent to $56.09 per share, according to a filing.

In March, Anthropic passed $1.4 billion in annualized revenue, implying monthly revenue of around $116 million. That was up about 40% from the $1 billion in annualized revenue Anthropic hit at the end of 2024.