Flagship

US economy shrinks

The US economy shrank in the first quarter, new data showed, as consumer spending slowed and businesses rushed to import inventory to get ahead of President Donald Trump’s tariffs. The imports surge is likely temporary, Bloomberg’s Jonathan Levin argued, and other macroeconomic data “hinted at an economy that was vulnerable, but not collapsing.” But analysts broadly agree that economic damage “could be substantial” if Trump continues with his whipsaw tariff approach and if companies start laying off workers. Investors will be closely watching April’s employment figures out Friday: Anything below six figures would indicate Trump’s tariffs are hampering the economy faster than expected, Investopedia noted.

Meta, Microsoft beat earnings expectations

Meta and Microsoft on Wednesday reported better-than-expected earnings for the last quarter, as both companies’ core businesses weathered the beginnings of US President Donald Trump’s trade war. The results came hours after Silicon Valley titans and White House officials met at the Hill and Valley Forum, a gathering “stacked with decision-makers” across defense and tech, underscoring tech companies’ thawing relationship with the Trump administration, Bloomberg wrote. Still, Trump has overall proven “disastrous” for Big Tech, The Economist argued: Market gyrations and tariffs have wiped trillions off six of the biggest tech companies’ combined value, and the government has doubled down on antitrust enforcement even as tech executives donated generously to Trump’s campaign to curry favor.

China faces export slump

China’s export orders dropped sharply in April as US President Donald Trump’s tariffs took a toll on the world’s second largest economy. American importers have cancelled or delayed orders, causing a gauge of new export orders to drop to its lowest level since COVID-19 shut down China in 2022. While the country has quietly offered some concessions in its brewing trade war with the US, reportedly easing retaliatory tariffs on some US goods, Beijing has vowed to “never kneel down” to American pressure. While the strain of tariffs has pushed China to boost stimulus efforts, it is holding off on additional measures, Reuters reported, “betting on Washington blinking first” in a drawn-out trade conflict.

US-Ukraine signs minerals deal

The US and Ukraine signed a long-anticipated minerals agreement Wednesday. The US Treasury secretary said the deal, which will give Washington priority access to Kyiv’s mineral resources, is a sign that the Trump administration is committed to “a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.” The weekslong negotiations over the agreement have been contentious, and came to a head during Ukrainian President Volodymyr Zelenskyy’s doomed White House visit in February. The deal is at the heart of Kyiv’s efforts to improve ties to Washington, and while the agreement does not provide US security guarantees, it reportedly does say the document demonstrates the US’ “support for Ukraine’s security.”

TikTok plans Finland data center

TikTok plans to build a data center in Finland as it moves to address privacy concerns over its Chinese parent company’s access to European users’ data, Reuters reported. TikTok will invest $1.14 billion in the project as part of an effort to bolster its social media business in Europe. Tech companies are increasingly turning to northern European nations to help build out their AI infrastructure, thanks to lower energy costs and access to cleaner electricity. Microsoft on Wednesday announced it would expand its European data center capacity by 40% over the next two years, despite growing concerns that US tech companies could get caught up in a transatlantic trade war, Politico wrote.

FBI uses lie detector tests for leaks

US government agencies are using lie detector tests to root out leaks. The FBI director ordered the administration of polygraphs, while the defense secretary threatened their use at the Pentagon, after a series of high-profile exposés. Earlier this month, a far-right activist called on the national security director to “polygraph every single intelligence employee” to hunt leaks. “The sense of dread is palpable” across both agencies, The Washington Post reported. Polygraph tests are highly controversial: They measure stress responses, such as skin conductivity (a proxy for sweatiness) and heart rate, assuming that lying is stressful. But as science writer Stuart Ritchie noted in 2022 when the UK introduced their use, there is no solid research establishing that they work.

Beijing ramps up dissident crackdown

Beijing is increasingly targeting Chinese dissidents living abroad. Critics of the country have faced repressive tactics in France, the UK, Switzerland, Ireland, and elsewhere: One Paris-based activist described threats to his family at home in China, the International Consortium of Investigative Journalists reported, while campaigners who fled Hong Kong for the UK after anti-democratic crackdowns told The Guardian that Beijing was allegedly attempting to stoke “far-right violence” against them. The ICIJ noted that the tactics closely match Chinese security services’ domestic policies. Beijing also allegedly uses groups masquerading as NGOs to quash anti-China narratives at the United Nations, The Washington Post reported.

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Satellite photos help find land mines

Declassified photos from US spy satellites are helping find forgotten mine fields in Cambodia. More than 10 million mines and other explosives were scattered across Cambodia during the Vietnam War and subsequent conflicts, killing more than 20,000 people after the fighting ended. The 40-year-old images have been a “game changer” for deminers to find now-abandoned roads suspected of being mine fields, Space.com wrote. But across Southeast Asia, US mine removal projects and cleanup of leftover traces of the toxic Agent Orange weapons from the Vietnam War, which ended 50 years ago, have faced challenges due to the Trump administration’s sweeping cuts to foreign aid. China, meanwhile, has ramped up its demining efforts in Cambodia, pledging millions in additional funding.

Toyota, Waymo explore collab

Toyota and Waymo signed a preliminary agreement to work together on creating autonomous vehicles. The deal is vague, TechCrunch wrote — “a hey-let’s-see-how-we-might-work-together arrangement” — but could have profound implications if it progresses: Toyota is the world’s largest auto manufacturer, and Waymo is the most successful self-driving car company. The goal would be to develop an entirely new vehicle specifically designed for use as a robotaxi under Waymo’s umbrella, and perhaps to bring Waymo self-driving tech into future generations of Toyota vehicles sold to customers. Waymo has focused on ridehailing services until now, but the CEO of its parent company, Alphabet, recently said it was also considering consumer autonomous vehicles.

Farmers trained to use salty soil

Farmers in Bangladesh are learning to grow crops in increasingly salty soil. Salt intrusion is a growing problem, driven by a combination of climate change, poor water management, and shrimp farming. It means much of the country’s coastal farmland is unusable in the dry season as saltwater evaporates. The government and foreign NGOs are providing farmers with salt-resistant crops, salinity meters, and rainwater irrigation systems, and are training them to minimize evaporation that increases salinity. As a result, according to one analysis, the amount of high-salinity land used for farming in the dry season has gone up 270% since 2016. Bangladeshi farmers have overcome many challenges, Context noted: Rice production has more than tripled since 1970.

May 1:

• The UK holds elections for local council seats.
• Apple, Amazon, and Eli Lilly report quarterly earnings.
• Markets are closed in many countries for Labour Day.

The largest-ever Australian exhibition of Terracotta Warriors is set to open this summer, with more than 225 artifacts going on display at Perth’s WA Museum, many for the first time outside of China. Terracotta Warriors: Legacy of the First Emperor will feature ten of the more than 8,000 eponymous soldiers — all of whom possess unique faces — erected 2,000 years ago on the orders of China’s first emperor to defend his tomb. Qin Shi Huang’s dynasty lasted only 15 years, the museum head told The Guardian, “but… changed China for ever.” His tomb remains unopened to this day, showing “extraordinary” patience and respect.

One of the top firms telling investors how to vote in corporate elections wants out, Semafor’s Liz Hoffman and Rohan Goswami reported.

Glass Lewis has angered both corporate executives and conservative politicians by supporting, among others, ballot measures for McDonald’s to audit its racial diversity, and for Starbucks to produce an independent report on its labor practices. Now, Glass Lewis is shifting its focus to bespoke voting policies for its clients — and “making more money while getting yelled at less is a good business model,” Hoffman wrote.