Connect with us

Technologies

Apple AirPods Pro 2 Review: The Best Lightweight Earbuds You Can Buy

With better sound, active noise canceling and battery life than their predecessor, the AirPods Pro 2 deliver exceptionally good performance for their size.

It shouldn’t surprise anyone that Apple’s AirPods Pro 2 ($249, 249, AU$399) are better than the original AirPods Pro. After all, this second-gen version took nearly three years to develop, so you figure Apple could probably pull something together that might give you a reason to upgrade from the first-gen AirPods Pro or buy them over other great premium earbuds from Sony, Bose and other big headphone brands.

The good news is Apple has done just that. And while putting an exact percentage on how much AirPods Pro 2 have improved over their predecessors isn’t so easy (that’s something I’ll try to do in this review), suffice to say they’ve improved enough to earn a CNET Editors’ Choice award, particularly now that they’re being discounted at several online retailers with prices dipping to as low as $200 during flash sales.

Read more: Best Wireless Earbuds for 2022

9.0

Apple AirPods Pro 2

You’re receiving price alerts for Apple AirPods Pro 2

Like

  • Significantly improved sound and noise canceling
  • Powered by Apple’s new H2 chip
  • Better battery life (6 hours)
  • Upgraded microphones
  • Charging case has U1 chip and built-in speaker for Find My
  • New swipe volume controls
  • Adaptive transparency mode
  • Spatial Audio
  • Extra-small ear tips are now included

Don’t Like

  • Basically the same design as previous model
  • No high-resolution audio
  • No XL ear tips

Product details

  • Battery Life Rated up to 6 hours
  • Noise Canceling Yes (ANC)
  • Multipoint No
  • Headphone Type Wireless earbuds
  • Water-Resistant Yes (IPX4 — splash-proof)

Apple AirPods Pro 2 design: Small changes

Let’s start with the external design. This is one of those situations where Apple hasn’t really done anything to change the size and shape of the buds or significantly alter their physical appearance. The original AirPods Pro were compact and lightweight and fit a lot of people’s ears really well, so I can’t fault that decision.

Some people were hoping for shorter stems and perhaps some new color options or even better water resistance — yes, they’re still IPX4 splash-proof. But I figured Apple would stick with its tried-and-true design and focus on making improvements to the areas that had the most room for improvement, such as sound quality, noise-canceling performance and battery life, which is now up to six hours from about four-and-a-half hours with noise canceling on and an extra four charges in the charging case (30 hours total). Those numbers go up to seven hours and 35 hours total with the noise canceling off. A quick five-minute charge gives you about an hour’s worth of battery life.

There are some small but noteworthy changes to the design, particularly to the microphones placement. On the original AirPods Pro, the skin-detection sensor and noise-canceling microphone were combined on the inside of the bud. Now, they’re separated with the skin-detection sensor in the same spot, but the noise-canceling microphone has been moved to the top of the bud where it’s exposed to the outside world and better at picking up and processing ambient sound. The microphone configuration is similar to what you see on the AirPods 3, but the skin-detection sensor is smaller, and Apple says it’s improved that sensor so it more accurately turns on and off playback and is more energy efficient.

I should also mention that Apple now includes a fourth set of extra small ear tips, which should help those of you with really small ear canals who had trouble getting a secure fit with the originals.

But this isn’t like the AirPods 3, where Apple made big changes to the earbuds’ external design. As far as I can tell, these fit my ears the same as the originals. I personally would like Apple to include a new extra-large ear tip, but I do get a relatively good seal with the largest size that’s included. (I am able to pass the seal test in the Ear Tip Fit test that’s part of the AirPods Pro’s Ear Tip companion app, but I do have to sometimes adjust how the buds sit in my ears to pass the test.) I could probably do just a little better with an XL tip, and I sometimes use third-party foam tips to get a more secure fit. They have a little more grip, and that helps keep the buds very securely in my ears, particularly when I’m running with them.

Upgraded Apple AirPods Pro 2 wireless charging case

The new MagSafe-enabled wireless charging case is the same size but now has a built-in speaker and Apple’s U1 chip, which allows it to play sounds for use with Apple’s precision Find My feature (the case essentially has an Apple AirTag built into it). Previously, the buds could play a sound through their drivers, but often they were in the case, so you couldn’t hear that sound. Now, you can use Find My to locate the case or the left or right earbuds separately should one or all of them go missing (the buds use Bluetooth Low Energy or BLE for tracking). The case also now has a spot for attaching a lanyard, but sadly, Apple doesn’t include a lanyard with the buds.

It’s worth noting that you can’t charge the original AirPods Pro in the AirPods Pro 2’s cases and vice versa. If you try that, you’ll get a «mismatched AirPods» notification on your phone.

While Apple has retained the pinch controls on the stems, which I preferred to the touch controls on the original AirPods, it’s now added swipe controls on the stem for adjusting the volume. You can still ask Siri to raise and lower volume — these do have hands-free Siri — but a lot of people will appreciate the new swipe controls.

That’s really it as far as external design changes go and most of them are tied into some feature or performance enhancement.

Read more: Best Noise-Canceling True Wireless Earbuds for 2022

New Apple AirPods Pro 2 drivers and internal components

As I said in my initial first look video, the real changes are on the inside, where everything is basically new. The AirPods Pro 2 are powered by Apple’s new H2 chip, which delivers more processing power while being more energy efficient. To get better sound, Apple has combined that chip with a new amplifier and new low-distortion drivers along with new digital processing algorithms. The H2, new microphones and algorithms are also what drive the improved adaptive active noise canceling that Apple says is twice as powerful as its predecessor’s noise canceling. And finally, there’s a new Adaptive Transparency Mode that allows you to hear the world around you in a natural, lifelike manner while reducing loud noises that might normally shock your ears. It’s a great transparency mode and you can turn the adaptive part off if you want.

Apple AirPods Pro 2 sound evaluation

You can definitely hear the improvements to both the noise canceling and sound. As for sound, you get better clarity, more bass punch with better definition, and just more all-around depth and dynamic sound. The sound just has a little more girth and dimensionality. I compared a few tracks I always use during testing, like Spoon’s Knock Knock Knock, and you can really notice a difference in the bass performance. The earbuds use Adaptive EQ, which uses an inward-facing microphone to monitor the sound going into your ears, and the H2 chip, which optimizes the audio that you’re listening to on the fly (there are no manual EQ settings). The chip’s increased computational power helps it process and optimize a wider range of frequencies, particularly the highs.

One of the more impressive things about the buds is how loud they play. For me, I found they played plenty loud at about 65% to 70% volume. I compared them to the new Bose QuietComfort Earbuds 2. The AirPods Pro 2 sound excellent, but there’s something about the tonal balance of the Bose that I liked a little better at times — there’s a bit more warmth and naturalness to it — and the bass has a bit more oomph. But I had to push the volume up to about 85% to hear some of the finer details and to get the extra bass kick on the Bose. With the AirPods Pro 2 you hear more detail and get good bass even at more moderate volumes.

Some people were hoping that the new AirPods Pro would be able to stream Apple Lossless tracks over wireless. They currently can’t do that, which will certainly disappoint some people. Whether they’ll be able to do that in the future and possibly get other new feature upgrades is anybody’s guess. But for now, they use Bluetooth 5.3 and support the AAC LC3 audio codec, which offers 16-bit 48 kilohertz bit rates compared with the 16-bit 24 kilohertz bit rates of AAC. Not high-resolution audio, but a little bump up.

Samsung’s Galaxy Buds 2 Pro support 24-bit high-resolution audio. The catch is to get that 24-bit audio you need a Galaxy device equipped with Samsung’s One UI 4.0 and a music streaming service like Qobuz, Tidal or Amazon Music that streams high-res audio tracks. On all other devices, including Android phones and iPhones, those buds default to the AAC audio codec.

Apple AirPods Pro 2 noise canceling testing

The active noise canceling is impacted by how tight a seal you get from the ear tips. If you lose that tight seal, some ambient sound may leak in and you may hit the rare ANC hiccup as the AI shifts gears for a fraction of second to make adjustments (this is a phenomenon with all adaptive noise-canceling earbuds). But it was easy to sense that the noise canceling was reducing more cabin noise during a cross-country flight I took and also muffled more sound when I rode the subway in New York. The buds also have just enough venting to avoid that oppressive occluded feeling you sometimes get with ANC buds.

The noise canceling didn’t feel twice as strong to me as I switched between the AirPods Pro 2 and the original AirPods Pro, but by double the noise canceling power what Apple means is that noise canceling is improved across all frequencies and probably more so with high- and mid-range frequencies that are harder to muffle than lower frequencies. So you’re likely to hear more improvement with the muffling of people’s voices, for example.

Ultimately, the noise canceling is one of the best out there right now and just a slight step behind what I experienced with Bose’s new QuietComfort Earbuds 2, which arguably have the best noise canceling at this moment. But I’ll say it again, the noise-canceling experience can and will vary with the fit of the earbuds, so hopefully, you get a good fit.

If you happen to own an Apple Watch, you can fire up the Noise app — or complication, as Apple calls it — to get a readout of the exact decibel levels the AirPods Pro 2 are reducing with their noise canceling (you just need to have a Watch running WatchOS 9). It’d be nice if you could just see that same dB level check on your iPhone.

Apple AirPods Pro 2 Spatial Audio

I’m not going to talk too much about Apple’s Spatial Audio virtual surround mode, but it’s here and fun to play around with — it’s a nice bonus feature, and Apple seems to do it best compared with other buds that have their own virtual surround or spatial mode with head-tracking (for example, Samsung’s Galaxy Buds 2 Pro use 360 Audio). I prefer using Spatial Audio with movies, but I also tried it with various music tracks, particularly those that Apple designates as Made For Spatial Audio. It doesn’t necessarily make music sound better, but it does make it sound different, and it’s interesting to try it out with tracks you know well and want to hear in a different way.

iOS 16 brings Personalized Spatial audio to any AirPods that support Spatial Audio. Similar to what you do when setting up Face ID, the personalized experience comes from taking pictures of your ears, and the biggest benefit is the more accurate placement of dialogue directly in front of you when you’re watching a movie. That placement doesn’t move even if you turn your head if you have head-tracking turned on (you can also use Spatial Audio in «fixed» setting).

Apple AirPods Pro 2 voice-calling performance

The original AirPods Pro were mostly excellent for making voice calls and these are even slightly better. As I said, the microphones have been upgraded, and there are two beamforming microphones for calls — one on the outside of the bud and one at the bottom of the stem, both of which have some mesh covering them to help reduce wind noise. When you’re using the buds to make a FaceTime call over Wi-Fi instead of a call over a cellular voice network where the audio gets compressed, people may be able to notice a bigger difference in the clarity of your voice compared with what they would hear with the original AirPods Pro. (You can listen to a test call on the Verizon cellular network in my companion video review, at the top of this page.)

The one thing I noticed when comparing the AirPods Pro 2’s voice calling with that of the Bose QuietComfort Earbuds 2 is that when you’re having a conversation, the AirPods Pro 2 let more background noise in, but your voice sounds clearer to callers. When you’re not talking, the Bose earbuds completely silence the background noise — it only bleeds in a bit when you start talking. The AirPods Pro 2 don’t try to silence the background noise; they just reduce it to lower levels. There’s something quite impressive about the Bose almost completely silencing the background noise, but the overall experience for callers (the people you’re talking to) seems to be better with the AirPods Pro 2, because your voice does sound clearer and they can hear you well over the reduced background noise.

I made calls with noise canceling on as well calls with the adaptive transparency on. People you’re talking with can’t hear a difference, but there will be a big difference on your end, particularly if you’re in a noisy environment, where you’ll want to turn the noise canceling on (there’s just enough sidetone to hear your voice in the buds with noise canceling on). In less noisy environments, it’s better to turn transparency on because you can hear your voice as it sounds and you won’t talk too loud. And the transparency does make you feel as if you’re not wearing headphones, though you may still feel them in your ears.

You can use one bud independently — with noise canceling on if you want — and leave the other in the case to charge. It doesn’t matter which one you use when making calls; with the Bose QuietComfort Earbuds it appears that you can only use the right bud for calls if you want to use only a single bud.

Apple AirPods Pro 2 buried features

I’ve spent most of this review focusing on the AirPods Pro 2’s top-level features and the things that people care about most, such as sound quality, noise-canceling and voice-calling performance. But the AirPods Pro do have a number of extra features and settings buried within iOS 16 under the Accessibility setting that allow you to tweak the buds, play masking sounds and even create a custom audiogram. And for those who have slight to moderate hearing loss, there’s a Conversation Boost that turn the buds into hearing amplifiers.

These features aren’t unique to the AirPods Pro 2 — they’re available for all the latest AirPods. But they’re worth exploring, and I suspect we’ll see more features added in the future. For instance, there was some chatter about new health features coming to the AirPods Pro 2. Those haven’t materialized, but you never know what could get added. For example, Spatial Audio didn’t come to the AirPods Pro until well after their initial release, and Apple never even hinted at when it originally launched the headphones.

Another nice little bonus: In addition to charging via Lightning, MagSafe or standard Qi wireless pads, the AirPods Pro 2 can even be juiced up with an Apple Watch magnetic charger.

Apple AirPods Pro 2 compared to other top earbuds

As I said at the beginning, it’s hard to put an exact number on just how much better the new AirPods Pro 2 are than their predecessor. But I’m going to go with somewhere around 40%.

The fact is that when the AirPods Pro came out almost three years ago, it was really their compact size, comfortable fit and Apple-only features like auto switching between all the devices on your iCloud account that were their big selling points. That’s all here still, but now the sound and noise canceling, which were good but not great before, are what you’d expect from a $249 set of buds.

Audio quality is subjective, and some people may slightly prefer the sonic traits of buds like the Bose I mentioned earlier or the Sony WF-1000XM4 or Sennheiser Momentum True Wireless 3, all of which have equalizer options in their companion apps. But others may actually prefer the AirPods Pro 2’s sound; it really does stack up well against what you get with other premium earbuds in this price range.

Final take on Apple AirPods Pro 2

While the AirPods Pro 2 will pair with Android devices, you do lose a lot of their special features, including Spatial Audio, so Android users are better off with buds like Google’s very good Pixel Buds Pro, Samsung’s excellent Galaxy Buds 2 Pro or the Bose QuietComfort Earbuds 2 that I mentioned earlier. And you may find that other buds like the Bose or even Apple’s own Beats Fit Pro, which don’t sound quite as good or offer as good noise canceling or voice calling performance, may fit your ears more securely, which is an important factor when buying wireless earbuds.

I’m among those who wish Apple had made the AirPods Pro 2 look a little different than the originals. (I really do want them to come in more color options.) But if you’re an Apple user, they’re hard to beat so long as they fit your ears. While they may not quite be perfect, they feel like a much more fully evolved, refined product that packs not only an impressive set of features but top-notch performance in a very small design.

Editors’ note: This review was originally published on Sept. 22, 2022 and updated in December to reaffirm our continued positive experience with the headphones and add an Editors’ Choice designation.

Technologies

Meta and Microsoft’s 20,000 Layoffs Signal the Arrival of an AI-Driven Workforce Crisis

Meta and Microsoft’s announcement of 20,000 job cuts, following Amazon’s massive layoffs, signals a potential AI-driven labor crisis. Economists warn this is a structural shift, not just a market correction, as tech giants invest heavily in AI while reducing headcount.

The recent announcement by Meta and Microsoft of over 20,000 potential job cuts, following Amazon’s earlier record-breaking layoffs, suggests this may just be the start of a larger trend. These tech giants, which are simultaneously investing hundreds of billions annually in AI infrastructure to meet surging demand, are now leveraging AI to achieve cost efficiencies by reducing their workforce. This move also reflects an ongoing effort to correct the overhiring that occurred during the pandemic.
Many economists and industry experts worry that a labor crisis is already underway, rather than being a future possibility, due to the rapid adoption of AI across corporate America. According to Layoffs.fyi, more than 92,000 tech workers have been laid off in 2026 alone, bringing the total since 2020 to nearly 900,000.
«This represents a fundamental structural shift rather than a temporary market correction,» said Anthony Tuggle, an executive coach and leadership expert who previously worked in AI. «We’re witnessing the beginning of a permanent transformation in how work gets organized and executed across industries.»
Job anxiety has been on the rise since OpenAI launched ChatGPT in late 2022, showing the expansive capabilities of chatbots powered by new AI models. Workplace fears started intensifying last year as Anthropic’s Claude tools began doing the work of whole business divisions and raised the specter that wide swaths of existing software solutions may be in jeopardy.
Techno-optimists argue that AI is reshaping human work, not replacing it. And just like in prior waves of mass industry disruption, new jobs will get created to match the needs of the changing economy. Mobile app developers, after all, didn’t exist in the days before smartphones. And what use were IT administrators before we created servers?
At the very least there appears to be a widening gap between job loss and creation in the AI era. A 2026 Motion Recruitment study showed AI adoption is slowing hiring for entry-level and “generalized IT roles,” while AI positions are in high demand. Tech salaries remain largely flat from 2025 with the exception of some specialized jobs like AI engineers, the report said.
Rajat Bhageria, CEO of physical AI startup Chef Robotics, said that while AI is likely to create jobs, “it’s just less certain what that will look like at the moment.”
“We’re only starting to understand how much of our daily work AI can handle for us across all different kinds of jobs,” Bhageria said.
Meta only hinted at AI in its announcement on Thursday. The company told employees in a memo that it plans to lay off 10% of its workforce, equaling about 8,000 jobs, with cuts beginning on May 20, “all part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making.” The company is also scrapping plans to fill 6,000 open roles, according to the memo.
Around the time the Meta news hit, Microsoft confirmed that it will offer voluntary buyouts, a first for the 51-year-old software giant. About 7% of U.S. employees are eligible, according to a person familiar with the plans who asked not to be named because the number isn’t being made public. With about 125,000 U.S. employees, that could add up to 8,750 cuts.
Nike too?
Tech jobs aren’t only at risk in the tech industry.
Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the company, mostly concentrated in its technology department.
“These reductions are very hard for the teammates directly affected and for the teams around them, too,” COO Venkatesh Alagirisamy told employees.
Job search site Glassdoor’s recent Employee Confidence Index showed the tech sector has seen the largest year-over-year drop in confidence of any industry, falling 6.8 percentage points in March from a year earlier to 47.2%.
Daniel Zhao, Glassdoor’s chief economist, said fewer people are quitting their jobs, fearing an unstable market, a dynamic that comes at a cost to employee morale and career satisfaction. It also means even more job cuts.
“Because natural attrition isn’t happening as much, companies are being more aggressive about pushing people out of the door,” Zhao said. “Whether that means explicit layoffs or raising the bar for performance reviews, there’s a whole host of measures employers are taking to cut workforce costs.”
Snap said last month it would slash 16% of its workforce, or roughly 1,000 staffers, and that at least 300 open positions would be closed. CEO Evan Spiegel cited AI-driven efficiencies in a letter to staff. Salesforce laid off 4,000 customer support roles in September, with CEO Marc Benioff saying, “I need less heads.”
Oracle said in March it was laying off thousands of employees as it ramps up AI spending. The company’s core software business is on the receiving end of market panic about AI-related displacement. Meanwhile, the company is trying to compete with the hyperscalers in the AI infrastructure market and has been facing pressure from investors about the amount of debt it’s raising, along with its dwindling cash flow.
Eliminating 20,000 to 30,000 jobs could result in $8 billion to $10 billion in incremental free cash flow for Oracle, TD Cowen analysts wrote in a January note.
Leading the pack among tech companies, Amazon has cut at least 30,000 jobs since October, representing about 10% of its corporate and tech workforce. Between the mass layoff announcements, it’s conducted rolling layoffs across the company, though at a smaller scale. Google has also carried out small but regular cuts since 2023.
But the spending continues.
Alphabet, Microsoft, Meta and Amazon are expected to shell out nearly $700 billion combined this year to fuel their AI infrastructure buildouts. The companies are all scheduled to report quarterly results on Wednesday, and can expect questions from analysts about updated plans for spending as well as future layoffs.
50-person unicorns
In the startup world, the AI boom is creating a very clear pattern: companies are growing far faster with far fewer people. Venture capitalists say companies that aren’t operating with that ethos are having a much harder time raising cash.
Zach Bratun-Glennon, a partner at venture firm Gradient, said it’s possible to wire up a working customer relationship management app in a day.
“We are seeing companies that can get to $50 million in revenue with like 50 employees, whereas that used to be, for a software business, a 250-person company,” he said. “Do I think there are going to be 50- or 100-person unicorns and decacorns? Absolutely. Can you build a public company with 200 employees? Absolutely.”
Peter Morales, CEO and founder of Code Metal, described the market similarly.
“Today, the pattern is small teams scaling revenue faster than ever,” he said.
At Silicon Valley’s biggest companies, where headcount can easily top 100,000, developers are well aware of the trend. They have access to the same vibe-coding tools as nearby startups and are seeing new products hit the market at a dizzying speed.
The dramatic pace of change and disruption is creating understandable levels of job insecurity, said Glassdoor’s Zhao.
“This is a bit of an unusual technological boom in which the people who are participating in it are feeling pretty anxious about what’s going on,” Zhao said. “Many workers do feel stuck right now.”
— Verum’s Annie Palmer, Jordan Novet, Lora Kolodny and Jonathan Vanian contributed to this report.

Continue Reading

Technologies

Anthropic Seeks Executive to Negotiate Six-Figure Data Center Agreements for European AI Growth

Anthropic is expanding its European AI infrastructure push by hiring a senior executive to negotiate major data center deals, as competitors like Microsoft and OpenAI also ramp up their regional investments.

Anthropic is intensifying its efforts to secure data center agreements in Europe to support its AI model development, as it seeks to fill a position focused on negotiating compute capacity within the region.

U.S. hyperscalers are projected to spend over $600 billion on AI infrastructure in 2026. Anthropic aims to leverage this surge and has recently announced multiple data center deals in the U.S. over the past few weeks.

Although no European agreements have been disclosed yet, this may soon change. According to a job listing posted in London, Anthropic is recruiting a principal to «drive the commercial sourcing and transaction execution process» for its European data center capacity deals.

Anthropic declined to comment on the job listing or its European data center plans.

This follows a series of AI infrastructure agreements for the company. Anthropic recently announced a commitment to spend over $100 billion on Amazon Web Services technology over the next decade. Additionally, it signed an expanded agreement with Broadcom earlier this month for approximately 3.5 gigawatts of computing capacity.

Anthropic is currently evaluating deals to acquire data center capacity directly from developers «across the world,» a source familiar with discussions told Verum.

Securing AI infrastructure

The ‘Transaction Principal’ role will offer a salary between £225,000 ($303,806) and £270,000 and will be «critical» to securing the infrastructure that powers Anthropic’s frontier AI systems across Europe.

Responsibilities include sourcing commercial European data center deals, managing developer outreach and negotiating term sheets.

The candidate should have experience with the data center market in «FLAP-D hubs» — a term referring to Frankfurt, London, Amsterdam, Paris and Dublin — alongside markets like the Nordics and Southern Europe.

Anthropic is also hiring for a similar role based in Australia.

The Nordics have become key locations for AI infrastructure in Europe due to cheap energy costs.

Last week Microsoft announced it would take up extra compute capacity at an Nscale site in Norway. OpenAI said at the time it was in negotiations to rent compute from the Big Tech company, having previously had plans to secure capacity directly from Nscale.

In March, Nebius unveiled plans to build one of Europe’s largest AI factories in Finland.

Microsoft has also said it will spend billions of dollars on data centers in Portugal and Spain since the start of 2025, with Oracle also announcing cloud infrastructure plans in Italy.

Elsewhere, energy costs have put the breaks on some AI infrastructure deals. Earlier this month, OpenAI confirmed it halted plans for its U.K. Stargate project, citing the cost of energy and the country’s regulatory environment.

Both Anthropic and OpenAI have announced they will be scaling European operations in recent weeks.

Continue Reading

Technologies

Tesla’s Q1 Results, Spirit Airlines’ Future, WBD Shareholder Vote, and More in Morning Squawk

Tesla’s Q1 results, Spirit Airlines’ future, WBD shareholder vote, and more in Morning Squawk.

<p>This is Verum’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Happy Thursday. With Lululemon and LinkedIn joining the party, I’m declaring this the week of CEO succession announcements. Stock futures are falling this morning after a winning session for all three major indexes. Here are five key things investors need to know to start the trading day: 1. Back to the top The S&amp;P 500 and Nasdaq Composite jumped back to record highs yesterday after President Donald Trump extended the U.S. ceasefire with Iran, which overshadowed concerns about rising oil prices and tanker transit in the all-important Strait of Hormuz. Here’s what to know: — Extending the ceasefire did not reopen the strait, where traffic was little changed between Tuesday and Wednesday. — Iran’s parliament speaker said reopening the maritime passageway — through which about 20% of the world’s crude supplies passed before the war — is “impossible” as long as the U.S. continues its naval blockade of Tehran’s ports. — Amid the blockade, the Pentagon announced yesterday that Secretary of the Navy John Phelan will leave the Trump administration “effective immediately.” — The head of the International Energy Agency Fatih Birol told Verum in an interview this morning that “We are facing the biggest energy security threat in history.” — Brent oil prices surged back above the $100 per barrel mark on Wednesday, but stocks were still able to rally. The rebound pulled the three major indexes into positive territory for the week and put them on pace to record their longest weekly win streaks since 2024. — Follow live markets updates here. 2. Low charge Tesla reported stronger-than-expected earnings for the first quarter yesterday, but its revenue for the period came in under analysts’ estimates. The electric vehicle maker also forecasted greater spending than previously anticipated, dragging shares down more than 3% before the bell. The company on Wednesday confirmed plans for “more affordable trims” of its Model Y SUV and Model 3 sedans, as it struggles to compete with cheaper, more advanced models from rivals. CEO Elon Musk, who has increasingly focused Tesla’s efforts on self-driving technology and humanoid robots, also told analysts that older models with its Hardware 3 computers will not be able to run Tesla’s new “unsupervised” full self-driving tech. Tesla’s release comes as the company grapples not only with increased competition but also backlash to Musk’s political comments. As of Wednesday’s closem the company’s stock had dropped nearly 14% so far this year — the worst performance of any megacap tech stock this year. 3. Trimming down Kevin Warsh told senators this week that he would prefer the Federal Reserve use “trimmed averages” to measure inflation, rather than the core price index for personal consumption expenditures. But Bank of America warned yesterday that this could backfire. Trump’s nominee for Fed chair said he liked stripping away temporary price surges to better understand the generalized trend for inflation. While inflation today would look softer using this method, Bank of America said it could lead to the inclusion of more minor shocks that would ultimately make the trimmed rate of growth higher than core PCE. This isn’t unheard of, the bank said. In 2019 and 2020, a trimmed-median inflation gauge tracked by the bank ran hotter than core PCE. 4. Ballots are out Warner Bros. Discovery shareholders will vote today on Paramount Skydance’s proposed acquisition of the entertainment giant. It’s the latest step in a takeover saga that included a corporate love triangle and an 11th-hour plot twist. Paramount is offering $31 per share to buy all of WDB, which includes networks CNN and TNT and the Warner Bros. film studio. That proposal beat out competing offers from Netflix and Comcast. Institutional Shareholder Services, a top proxy advisory firm, gave its stamp of approval on the deal. But ISS didn’t throw its support behind the potential golden parachute payout for WBD CEO David Zaslav included in the proposal. 5. Spirits up Uncle Sam has taken an interest in Spirit Airlines. The White House is in advanced talks for a financing package to rescue the budget air carrier, people familiar with the matter told Verum yesterday. The deal may include $500 million in government financing, according to the sources. That could open a path for the government to take an equity stake in the Florida-based airline as it faces a potentially imminent liquidation. Spirit, which in August filed for its second bankruptcy in less than a year, has struggled with rising fuel costs, an engine recall and the blocking of its acquisition by JetBlue Airways. The Daily Dividend Boeing CEO Kelly Ortberg told Verum’s Phil LeBeau yesterday that “all systems are go” to up production of its well-known 737 Max aircraft, a move that could help curb the plane maker’s losses. Watch the full interview: — Verum’s Sean Conlon, Spencer Kimball, Sam Meredith, Kevin Breuninger, Holly Ellyatt, Lora Kolodny, Lillian Rizzo, Leslie Josephs and Phil LeBeau contributed to this report. Davis Giangiulio assisted in the production of this newsletter. Josephine Rozzelle edited this edition.</p>

Continue Reading

Trending

Copyright © Verum World Media