Good morning, Quartz readers!
What to watch for today
The UK releases retail sales data for April. Investors will be watching after seeing the biggest quarterly drop in retail sales in seven years last month, and getting news of slowing wage growth yesterday. If retail sales fall short of expectations, concerns about Britain’s economic outlook will worsen even further.
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.
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.
While you were sleeping
US stocks took a tumble as scrutiny of 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 health-care reforms are unlikely to proceed.
… and a former FBI director was put in charge of the Trump-Russia investigation… It’ll now be up to Robert Mueller to see whether there was collusion between Trump’s presidential campaign and the Russian government. In a promising sign, the official who gave Mueller the task, deputy attorney general Rod Rosenstein, didn’t consult with the White House before doing so.
Japan reported its longest growth streak in over a decade. The country’s economy has expanded for five consecutive quarters. In the first three months of this year, GDP grew at an annualized rate of 2.2%, compared to expectations of 1.7%, led by solid exports and private consumption. GDP rose 0.5% on a quarter-on-quarter basis, versus expectations of 0.4%.
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.
Google unveiled new AI and VR offerings. The company is expanding its use of artificial intelligence on phones and devices like Google Home, and is bringing its Alexa-like Google Assistant to the iPhone. Google is also working with HTC to build a VR headset that doesn’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.
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 20 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 an animated talking cat. It’s part of a string of odd deals between Chinese conglomerates and Western videogame 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 the latest Pirates of the Caribbean hostage. Disney has refused to pay a ransom for the upcoming sequel.
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