Top news
Trump imposes new tariffs on chips, drugs, furniture and trucks
The president is planning to impose a dizzying new array of import taxes, ranging from 25% to 100% on pharmaceutical products, large “semi” tractor-trailer trucks, kitchen cabinets and other home furnishings, and, according to the WSJ, semiconductor chips. The chip policy will require tech hardware companies to make the same number of chips in the U.S. as those they import, and any imported excess will face an as-yet undecided tariff.
Trump proposes some tariff revenue to help farmers
President Donald Trump told reporters on Thursday that his administration will give a portion of the country’s tariff revenue to farmers “who are, for a little while, going to be hurt until the tariffs kick into their benefit.” China received nearly a quarter of the U.S. soybean exports in 2024, but has not ordered any U.S. soybeans since May.
$6.2 billion deal overshadows Kimmel’s return to TV
Behind Jimmy Kimmel’s return to the airwaves is a $6.2 billion merger that the White House must approve, and a set of complex relationships between right-leaning affiliate chains Nexstar and Sinclair and the conservative election districts where their audiences are based.
Accenture “exiting” staff who cannot retrain for age of AI
“We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need,” Accenture chief executive Julie Sweet told analysts. Accenture booked $5.1 billion in AI projects in the last year, up from $3 billion the year before.
Evidence that AI investment is unsustainable
The WSJ has a must-read feature on whether the AI industry is in a bubble. Its central thesis is that the amount of investment going into AI far outstrips the revenues needed to cover it. Here’s the killer stat: “Consultants at Bain & Co. estimated the wave of AI infrastructure spending will require $2 trillion in annual AI revenue by 2030. By comparison, that is more than the combined 2024 revenue of Amazon, Apple, Alphabet, Microsoft, Meta and Nvidia, and more than five times the size of the entire global subscription software market.”
Amazon’s $2.5 billion settlement with FTC is a tiny fraction of its revenue
Amazon’s $2.5 billion settlement with the Federal Trade Commission over the tech giant’s alleged use of deceptive practices, which the commission said for years tricked millions of consumers into signing up for a Prime membership without their knowledge, may be welcomed inside the company’s HQ: The price equals less than two days of sales.
NATO on high alert over Russian aggression
European officials have warned President Putin that their military forces will shoot down Russian fighter jets invading their airspace, according to Bloomberg. The move comes after Moscow flew three jets over Estonia recently, in addition to drone incursions over Poland. At the same time, NATO is tracking a Russian spy ship off Europe’s western coast that appears to be mapping undersea communications cables.
Trump gives green light to $14 billion TikTok deal
The president signed an order forcing the social media company to divest its U.S. assets to American business interests. The transaction itself is not yet signed off.
Starbucks’ $1 billion restructuring
Starbucks announced a $1 billion restructuring plan on Thursday designed to return the chain to the hangout spot it was in the 1990s. CEO Brian Niccol hopes that the move, which will see the closing of more than 100 locations in North America and lead to hundreds of job cuts, will attract Gen Z back.
Kraken crypto exchange raises $500 million
The crypto exchange Kraken has completed a $500 million funding round, Fortune has exclusively learned, as co-CEO Arjun Sethi plans an IPO for next year.
Elsewhere: There is talk that ex-U.K. prime minister Tony Blair could run Gaza if a Trump peace deal is accepted (don’t hold your breath!).
The markets
S&P 500 futures were flat this morning. The index closed down 0.5% in its last session. STOXX Europe 600 was up 0.24% in early trading. The U.K.’s FTSE 100 up 0.44% in early trading. Japan’s Nikkei 225 was down 0.87%. China’s CSI 300 was up 0.6%. The South Korea KOSPI was down 2.45%. India’s Nifty 50 was down 0.91% before the end of the session. Bitcoin declined to $109.7K.
Around the watercooler
Google backs $3 billion deal with Bitcoin miner as Big Tech looks to crypto for compute by Ben Weiss
The August home sales mystery: Top analyst says ‘implausible’ housing market data ‘defies credulity’ by Nick Lichtenberg
Elon Musk just sold Grok to U.S. government for 42 cents – and signals warmer ties with Trump by Eva Roytburg
HSBC claims a quantum computing breakthrough in bond trading: ‘we are on the cusp of a new frontier’ by Beatrice Nolan
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
