Good morning, Quartz readers!
What to watch for today
Barack Obama starts an awkward trip to Saudi Arabia. The Saudis are unhappy with America’s nuclear deal with Iran, and with recent US criticism of the Gulf kingdom.
New York’s presidential primaries. Donald Trump and Hillary Clinton are both heavily favored. Trump needs a big margin victory if he wants a chance at winning the Republican nomination outright, while Clinton is looking for a knock-out blow against Bernie Sanders.
Nawaz Sharif comes home to deal with the Panama Papers. The Pakistani prime minister has been in London, reportedly for medical treatment, during a growing scandal about his family’s offshore companies. He has called a meeting of senior officials in Islamabad on Wednesday.
Earnings: Coca Cola, Qualcomm, American Express, Yum Brands and Mattel all report their quarterly results.
While you were sleeping
Yahoo fell into the red as it made “substantial progress” selling itself. The struggling internet giant reported an 11% drop in revenue and a net loss of $99 million—making its potential sale or spin-off all the more pressing. Verizon is the most likely buyer.
Huge job cuts at Intel. The chipmaker announced a restructuring plan that involves laying off about 12,000 people, or 11% of its total workforce. Plummeting PC sales have spurred the company to focus on cloud-based services and internet-connected devices.
The FBI continued its feud with Apple… The bureau’s officials and the tech giant’s lawyers rehashed their arguments over encryption, privacy, and security at a congressional hearing. But lawmakers were more interested in hearing about how the FBI cracked an iPhone without Apple’s help.
… And Apple hired an supercar designer from Tesla. Chris Porritt reportedly created the chassis on Tesla’s Model 3, and previously worked for Aston Martin. His hiring suggests that Apple’s secretive electric car project is getting in gear.
Goldman Sachs shocked the market with a precipitous profit decline. The bank reported a $1.14 billion first-quarter profit, 60% lower than the $2.84 billion it made a year earlier. Goldman is struggling with a bond-trading slump, stricter regulations, and market volatility.
Quartz markets haiku
It’s odd to see stocks
And bonds rising together
And yet, here we are
Quartz obsession interlude
Amy Wang on how a lawsuit against Kanye West gets at the heart of the problem with music streaming. “Baker-Rhett wants to turn the suit into a class action with other fans who were allegedly misled into buying Tidal subscriptions. His claims implicitly raise a trickier question: In the new era of widely available digital music, what does ‘exclusive’ mean?” Read more here.
Matters of debate
Canada is the global economy’s last hope. Prime minister Justin Trudeau’s deficit spending is a bold move that other countries should emulate.
Dilma Rousseff’s impeachment won’t save Brazil. An economy that’s solely dependent on commodity exports needs more than new leadership.
The global CEO is a myth. The newest batch of corporate leaders is more male and white than ever, especially in the US and Canada.
You can pay someone to name your baby. Stressed-out parents fear the wrong choice could ruin their children’s lives.
Donald Trump’s plane isn’t registered to fly. The Republican frontrunner could face fines or even jail time after failing to pay a $5 fee.
Half of the people who buy vinyl records don’t listen to them. Even people with turntables may choose not to use them.
Trees are connected by the “fungal internet.” The network exchanges carbon between different arboreal species.
The US may finally stop making pennies. But Treasury secretary Jack Lew’s proposal is opposed by the zinc industry.
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