Good morning, Quartz readers!
What to watch for today
Alibaba’s quarterly results. Revenue growth is expected to be close to 50% but analysts are concerned that the Chinese e-commerce giant’s profit margins are slipping.
An update on Japan’s economic growth. Analysts expect quarterly GDP to climb by an annualized 1.7%. That would be the fifth consecutive quarter in positive territory and the longest expansion in about a decade.
A high-profile congressional hearing on the FBI director’s firing. Deputy attorney general Rod Rosenstein will answer lawmakers’ questions and discuss his controversial role in James Comey’s dismissal.
While you were sleeping
US stocks took a tumble as scrutiny of Donald Trump intensified. Republican lawmakers joined a call for an independent investigation of the president’s interference in an FBI investigation—and one GOP congressman even discussed his possible impeachment. The Dow and S&P 500 had their worst day in eight months, as investors concluded that tax and healthcare reforms are unlikely to proceed.
Qualcomm stepped up its battle against Apple, suing four contract manufacturers. The lawsuit alleges that Foxconn, Pegatron, and other firms withheld royalty payments due to Qualcomm, amid an escalating licensing dispute. Apple and Qualcomm have been mired in negotiations for more than five years.
Ireland’s prime minister announced his resignation. Enda Kenny will remain PM until a June 2 general election but will step down immediately from his leadership of the Fine Gael party. In the running to succeed him: social protection minister Leo Varadkar, the odds-on favorite, and housing minister Simon Coveney.
French president Emmanuel Macron unveiled his cabinet. Macron’s 22 appointees are evenly split between men and women, with many positions being filled by people with backgrounds outside of politics. Defense secretary Sylvie Goulard was the only woman appointed to one of the top five cabinet positions.
Google unveiled new AI and VR offerings. The company is expanding its use of artificial intelligence on phones and devices like the Google Home, and is bringing its Alexa-like Google Assistant to the iPhone. Google is also working with HTC to build standalone VR headsets that don’t rely on a smartphone.
Quartz obsession interlude
Steve Mollman considers what a North Korean refugee crisis would look like. The DMZ “is heavily guarded by two of the world’s largest militaries, strewn with landmines, and arguably the most fortified border on the planet. If you want to flee North Korea, this is not your recommended route. It makes much more sense to head north instead toward China, where the Yalu and Tumen rivers straddle Mount Paektu to create a 1,420-km (880-mile) border.” Read more here.
Markets haiku
Analysts never / Say sell. Except for Twitter. / Twitter you should sell.
Matters of debate
Indifferent relationships are the key to workplace success. The colleagues we can barely name play a crucial role in innovation and productivity.
The MP3 is far from dead. After twenty years, the audio format that’s universally supported is finally free from patents.
Can America still be trusted with classified information? The Trump leak to Russia is a bad misstep—but it’s probably not catastrophic.
Surprising discoveries
A chemical company paid $1 billion for a talking cat. It’s part of a string of odd deals between Chinese conglomerates and western video game companies.
The king of the Netherlands is a secret airline pilot. He’s been co-piloting flights unnoticed for more than 20 years.
Chanel is apologizing for a $1,900 boomerang. The luxury goods maker received complaints for appropriating aboriginal culture.
Cicadas are waking up early in Washington, DC. A portentous sign in tumultuous times.
Internet pirates are holding “Pirates of the Caribbean” hostage. Disney has refused to pay a ransom for the upcoming sequel.
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