Good morning. Breaking overnight: not the global economy. After talks in Switzerland this weekend, the US and China agreed to a large reduction in tariffs on each other. The US is lowering its tariffs on China from 145% to 30%, while China is lowering its tariffs on the US from 125% to 10%. The new tariff rates will be in effect for 90 days while the two sides continue talking.
Stocks are soaring. More tomorrow.
—Neal Freyman, Brendan Cosgrove (welcome!), Holly Van Leuven
Markets: After stomach-churning ups and downs this spring, the stock market was more lazy river than roller coaster last week, with all three major indexes holding steady and closing just a hair lower. This week, investors will be glued to the details of the trade agreement with China, an inflation report, and more earnings.
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President Trump and Saudi Crown Prince Mohammed bin Salman in 2019. Anadolu/Getty Images
President Trump is traveling to the Middle East today for his first major international trip of his second term. And it’s strictly business.
Over the next four days, Trump will roll through Saudi Arabia, Qatar, and the United Arab Emirates in what’s expected to be an economics-heavy visit focused on securing investments from these oil-rich nations, who’ve become increasingly influential in sectors spanning AI to entertainment (remember where Disney is opening its next park? Abu Dhabi, in the UAE).
It’s a repeat of Trump’s inaugural foreign trip from his first term, when he visited Saudi Arabia’s capital, Riyadh, and placed his hands on a glowing orb in a viral photo.
Chasing $1 trillion in investments
The first world leader to pick up the phone and call Trump after he was elected last year was Saudi Crown Prince Mohammed bin Salman (MBS), who promised to invest $600 billion in the US over four years. Trump said that MBS agreed to “round out” that pledge to $1 trillion, which is why he’s heading to Saudi first.
America’s biggest companies are keen on grabbing some of that investment, so they’re sending over the top brass for some face time. Citigroup CEO Jane Fraser, IBM CEO Arvind Krishna, BlackRock CEO Larry Fink, and other execs will head to Riyadh this week for a Saudi–US Investment Forum.
Plus, a new Air Force One, courtesy of Qatar
The royal family of Qatar will reportedly hand over a tricked-out Boeing 747-8 plane to Trump for use as Air Force One before he leaves office. The plane, estimated at ~$400 million, could be the most valuable gift ever sent to the US from a foreign government and raises legal and ethical questions over bribes, according to ABC News (the DOJ insists it doesn’t violate the Constitution; outraged Democrats say it does, and want to launch an investigation). Boeing has struggled immensely to deliver a new Air Force One: The planemaker inked the contract in 2018, but won’t have the aircraft ready until 2027, earliest.—NF
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Elizabeth Holmes and Billy Evans in 2023. Philip Pacheco/Getty Images
🩸 Elizabeth Holmes’s partner is getting into the blood-testing business. Holmes, the founder of failed startup Theranos, is currently in prison for defrauding investors, but her partner, Billy Evans, is after some investors of his own. Evans, who has two children with Holmes, is trying to raise money for a new company that, like Theranos, tests blood (plus saliva and urine). The company aims to revolutionize medical testing and achieve “human health optimization,” according to the New York Times, which notes the investor presentation doesn’t mention Evans’s connection to Holmes.—BC
President Trump announces intention to bring down prescription costs. In a Sunday post to Truth Social, Trump said he would sign an executive order at 9am today to institute a most-favored-nation policy with pharmaceutical companies that he predicted could lower drug prices by 30% to 80%. “The United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” the president said in the post. While Americans pay more for pharmaceuticals than any other country, Bloomberg reported that the American market fuels innovation and drives growth in the industry. Drugmakers have pushed back on previous efforts to revamp the system in the US, saying it would make revenue evaporate and hinder the development of potentially lifesaving drugs.—HVL
Convenience fees on concert ticket orders may go the way of McDonald’s PlayPlaces, and get replaced with something less likely to get their purveyors in legal trouble.
Starting today, the Federal Trade Commission’s rule on misrepresenting fees and bait-and-switch pricing takes effect for businesses selling live-event tickets and short-term lodging.
Will fees just fade away?
According to the FTC’s FAQ about the new policies, some add-on fees won’t be illegal, but surcharges can’t be surprising anymore:
Companies have to prominently display the total cost, including “all charges or fees the business knows about and can calculate upfront,” before asking for payment.
They must “avoid vague phrases like ‘convenience fees,’ ‘service fees,’ or ‘processing fees,’” per the FTC, and be clear about what a charge is for.
Tax and government charges, shipping costs, and fees for “optional goods or services” that can be purchased simultaneously can all be disclosed “later in the transaction.”
On deck: U-Haul. The moving fleet that only uses Arizona license plates often advertises rentals for under $20 on the sides of its trucks. The problem? The legal director of the advocacy group Truth in Advertising told Business Insider, “There’s not a consumer on the entire planet who will pay this $19.95 for a U-Haul truck,” after mandatory extra fees, “so the price is false.” U-Haul did not respond to BI’s request for comment.—HVL
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Fresh consumer data will drop: The April consumer price index report comes out on Tuesday, providing an early look at inflation in the post-Liberation Day-tariff era. Thursday will offer a gut check on if/how Americans are shopping: April retail sales numbers will be released, plus the world’s biggest retailer, Walmart, reports earnings.
Legal test for Trump’s tariffs: The Court of International Trade is having a moment. The little-known court will be in the spotlight on Tuesday, when a three-judge panel will hear arguments on whether Trump has the sweeping authority to impose tariffs. The case, brought by New York-based wine importer V.O.S. Selections and four other small businesses, could throw a wrench into Trump’s trade plans and disrupt ongoing negotiations with other countries. It’s the first of several tariff challenges working through the court system.
The Cannes Film Festival is back: Grab the popcorn and fire up the superyacht, because France’s fanciest film festival kicks off on Tuesday. The red carpet is expected to be packed with A-list actors, directors, and actor-slash-directors. Tom Cruise will be there pushing Mission: Impossible–The Final Reckoning, while Wes Anderson’s newest movie, the star-studded Phoenician Scheme, will be up for the festival’s top prize, the Palme d’Or. Last year’s winner, Anora, went on to sweep the Academy Awards, including a win for best picture.
Everything else…
Kim Kardashian is set to testify in Paris on Tuesday against defendants accused of tying her up at gunpoint in 2016 and stealing nearly $10 million in cash and jewelry, including her $4 million engagement ring.
Google will offer a look at the latest version of Android on Tuesday, with more product announcements slated for the following week.
Europe’s favorite way to confuse Americans is back: The Eurovision Song Contest begins Tuesday.
The PGA Championship tees off on Thursday.
Coming off its most-watched regular season in 24 years, the WNBA is back on the court this Friday, when fans can see the league’s newest franchise, the Golden State Valkyries.
A lot of bettors’ money went up in smoke this past week when Cardinal Robert Prevost of Chicago was named the new pope. The prediction market Kalshi says Prevost—now known as Pope Leo XIV—had less than a 1% chance of landing the top job, showing prediction markets are no match for divine intervention and clandestine deliberation. A handful of gamblers made out big, though, with one bettor netting $52,641 on a $526 bet. Overall, more than $40 million was spent betting on the conclave on Kalshi and fellow prediction platform Polymarket.—BC
Pope Leo XIV will likely still need to file US income tax returns, the Washington Post says.
Apple users who were snooped on by Siri from 2014 through 2024 can get a piece of a class action lawsuit.
Kosmos 482, the Soviet-era spacecraft turned space junk, returned to Earth and plunged into the Indian Ocean, according to Russian and European officials.
The jockey of Kentucky Derby-winner Sovereignty, Junior Alvarado, was fined over $60,000 for hitting the horse with his riding crop too many times during the race.
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Today’s Word of the Day is: clandestine, meaning “kept secret or done secretively.” Thanks to Jack Undercover from Spygate, NH, which appears on no maps, for the suggestion. Submit another Word of the Day here.
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President Trump announces intention to bring down prescription costs. In a Sunday post to Truth Social, Trump said he would sign an executive order at 9am today to institute a most-favored-nation policy with pharmaceutical companies that he predicted could 
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