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Category: Economics/Business

The high-seas black market that keeps Iran’s sanctioned oil flowing

The high-seas black market that keeps Iran’s sanctioned oil flowing

The Wall Street Journal reports: In this nautical no-man’s-land 45 miles off the coast of Malaysia, tankers laden with sanctioned Iranian oil sit low in the water, waiting to offload their cargo to vessels bound for Chinese refineries. They lower tarps and other objects over the names on their hulls and use black paint to conceal identity numbers. They’re here to carry out an elaborate deception: offshore trysts known as ship-to-ship transfers, in which one vessel offloads sanctioned oil onto…

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The AI boom is heading toward a massive financial crash

The AI boom is heading toward a massive financial crash

Joachim Klement writes: I calculate that over the past four quarters, 93 per cent of US GDP growth was explained by tech investments. Even at the peak of the technology, media and telecom bubble [which burst in 2000], it barely reached 60 per cent. The developers of large language models such as OpenAI and Anthropic are preparing for blockbuster initial public offerings later this year to benefit from investor optimism about their growth. Meanwhile, the hyperscalers Microsoft, Alphabet, Amazon, Meta…

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AI costs are hitting corporate America

AI costs are hitting corporate America

Axios reports: Corporate leaders are starting to question whether soaring AI spending is delivering meaningful returns. Why it matters: Companies that rushed to embrace AI are now confronting ballooning IT costs, uncertain productivity gains and growing employee skepticism. Driving the news: Microsoft canceled most of its Claude Code licenses, in part over costs, according to The Verge, and Uber’s COO said AI costs are getting “harder to justify.” An AI consultant tells Axios one of their clients recently spent half a billion dollars in a single…

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Uber’s COO says it’s getting harder to justify the money spent on AI tokenmaxxing

Uber’s COO says it’s getting harder to justify the money spent on AI tokenmaxxing

Business Insider reports: A top Uber exec said AI is not giving the company bang for its buck. In a Rapid Response interview released on Saturday, Uber’s operations chief, Andrew Macdonald, said it was becoming harder to justify AI costs within the company. He said that Uber CTO Praveen Neppalli Naga went viral after telling The Information in an April interview that Uber had already blown through its Claude Code budget for 2026. The comment led to what he described…

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The world is heading toward a financial crisis. ‘The political fundamentals are really bad’

The world is heading toward a financial crisis. ‘The political fundamentals are really bad’

Eduardo Porter writes: A bona fide financial crisis has not broken out since the US housing meltdown of 2007. Even the Covid pandemic and subsequent upsurge in inflation didn’t lead to financial upheaval. The jitters produced by the collapse of Silicon Valley Bank in 2023 were soon forgotten. Given this stability, it might take some effort to convince financial markets that another big one is around the corner. But it is. Financial markets and their regulating governments may believe they…

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Lawyers, policy experts, and business leaders react to Trump’ green card crackdown

Lawyers, policy experts, and business leaders react to Trump’ green card crackdown

Business Insider reports: President Donald Trump’s latest immigration crackdown is triggering alarm, confusion, and fierce debate among lawyers, advocates, and many in the business world who rely on visa holders for skilled labor. On Friday, US Citizenship and Immigration Services announced it would grant “adjustment of status” — the process that allows some immigrants already in the US to apply for a green card without leaving the country — “only in extraordinary circumstances,” potentially forcing many applicants to return to…

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Trump said gas prices are ‘peanuts.’ Only if you’re rich

Trump said gas prices are ‘peanuts.’ Only if you’re rich

The Washington Post reports: Surging gas prices have hit American drivers hard — but some much harder than others. For households in the bottom quarter of the income distribution — those earning roughly $40,000 a year or less — commuting fuel costs now consume an average of about 4 percent of their income, according to a Washington Post analysis. For households in the top quarter, earning $100,000 or more, the same costs amount to less than 1 percent. The gap…

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A first among major nations, India is industrializing with solar

A first among major nations, India is industrializing with solar

Fred Pearce writes: A sea of solar panels is rapidly engulfing one of the world’s largest salt deserts. By 2029, nearly 60 million panels will cover 280 square miles of India’s Rann of Kutch, extending right up to the border with Pakistan. The Khavda solar park is set to be the world’s largest and most powerful supplier of electricity from the sun, with a generating capacity of 30 gigawatts — 30 times the size of a typical coal or nuclear…

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Iran consolidates control of Hormuz with island checkpoints, diplomatic deals – and sometimes ‘fees’

Iran consolidates control of Hormuz with island checkpoints, diplomatic deals – and sometimes ‘fees’

Reuters reports: The tanker crew gathered their courage and carefully navigated along a route designated by Iran, hugging the coastline and maneuvering their hulking vessel between island checkpoints through the Strait of Hormuz. The 330-metre-long Agios Fanourios I, laden with Iraqi crude oil and bound for Vietnam, had been bottled up off the coast of Dubai since late April. But on May 10 it set off for the strait after a direct deal with Iran overseen by Iraq’s prime minister….

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A ferocious backlash against AI — especially among young people — is everywhere

A ferocious backlash against AI — especially among young people — is everywhere

Michelle Goldberg writes: When Eric Schmidt, the former chief executive of Google, started talking about artificial intelligence during a commencement speech at the University of Arizona on Friday, the graduates erupted in boos. “A.I. is going to touch everything,” said Schmidt, as his stadium-sized audience roared its disapproval. “Whatever path you choose, A.I. will become part of how work is done.” Maybe he meant this as a promise of opportunity, but the students seemed to hear it as a threat…

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Trump’s deportations are costing Americans jobs

Trump’s deportations are costing Americans jobs

The New York Times reports: The Trump administration has long claimed that mass deportations would deliver more jobs and higher wages to American-born workers. But a new study casts doubt on that assertion, undermining a central tenet of the president’s immigration policy. Recent surges in deportations have led to job losses for both immigrant and American-born workers, while wages have stayed flat, according to the study, published by the National Bureau of Economic Research, a nonpartisan research organization. Construction, which…

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A utility mega-merger is all about data centers

A utility mega-merger is all about data centers

Inside Climate News reports: A proposed merger of the largest utility in the country by market value, NextEra Energy, with the sixth-largest, Dominion, would create a megacompany at a time when data centers and rapid increases in electricity demand are reshaping the industry. The proposal, announced Monday morning and contingent on state and federal regulatory approval, would result in a company that leads in nearly every aspect of the U.S. power and utility industry, including overall electricity generation, natural gas…

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As the American epoch of oil is collapsing, fossil fuel fascists are trying to turn back the clock

As the American epoch of oil is collapsing, fossil fuel fascists are trying to turn back the clock

Jonathan Watts writes: “Farewell,” the flag-waving Chinese children chanted to Donald Trump as he strolled along the red carpet back to Air Force One at the end of his summit with Xi Jinping in Beijing. The US leader claimed he was leaving with a cluster of “fantastic” trade deals to sell US oil, jets and soya beans to China. That has not been confirmed by his smiling host, but one thing was crystal clear from the two days of meetings:…

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Iran eyes a new source of power deep beneath the Strait of Hormuz

Iran eyes a new source of power deep beneath the Strait of Hormuz

CNN reports: Emboldened by its successful wartime blockade of the Strait of Hormuz, Iran is turning to one of the hidden arteries in the global economy: subsea cables beneath the waterway that carry vast internet and financial traffic between Europe, Asia and the Persian Gulf. The Islamic Republic wants to charge the world’s largest tech companies for using the subsea internet cables laid under the Strait of Hormuz, and state-linked media outlets have vaguely threatened that traffic could be disrupted…

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Thieves are cloning trucks and blowing up pipelines to steal $1 billion in Texas crude oil every year

Thieves are cloning trucks and blowing up pipelines to steal $1 billion in Texas crude oil every year

Moneywise reports: West Texas is losing roughly a billion dollars in crude oil each year to theft — and the people taking it have gotten good enough that they clone service trucks, launder barrels through brokers and occasionally blow up the pipeline they’re trying to rob. “It’s like any other commodity,” Jim Wright, chairman of the Texas Railroad Commission, told Texas Public Radio. “When the price is high, they just get sexier.” With oil prices elevated by the Iran war…

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Rising diesel costs from Iran war strain U.S. school budgets

Rising diesel costs from Iran war strain U.S. school budgets

Reuters reports: Soaring diesel prices since the onset of the Iran war are draining already tight U.S. school district budgets, making it more expensive to bus students and run generators in a shock officials say they will not be ​able to afford for long. School districts from Yakima, Washington, to Waco, Texas, are tapping emergency funding reserves to keep buses running. In remote Alaska, officials are scrambling to secure enough ‌fuel to keep the lights on, according to Reuters interviews….

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