Technologies
iPhone Fold and iPhone Air 2: Launch Dates, Prices and Everything We Know
Apple’s rumored foldable could come as soon as 2026, though it may have company with a possible iPhone Air 2 or other devices.
With over half a decade of foldable phones released, devices from Samsung, Google and Motorola, such as the Galaxy Z Fold 7, the Motorola Razr Ultra and the Pixel 10 Pro Fold (as well as others from Oppo, Huawei and more) have given consumers plenty to choose from. Notably absent is a foldable iPhone, leaving the folding phone niche handily dominated by Android devices.
While we’ve yet to see any official word on a foldable iPhone from Apple, the company launched the iPhone 17 series along with the new super-thin iPhone Air in September. Given all the engineering it took to cram cameras and components into the top half of the Air, some have theorized that the device is a stepping stone to a foldable, which could take advantage of the Air’s internal design.
Foldable phones represent a tiny fraction of all phones sold globally. CNET found that 64% of people surveyed said they don’t want a foldable phone. But those numbers could change if Apple were to sell a foldable iPhone. There is a lot of hope and expectation placed on Apple to release one, and if rumors are correct, we won’t have to wait much longer for the company to do so.
iPhone Fold history
Rumors suggest Apple is developing a book-style foldable like the Galaxy Z Fold 7. Years ago, in 2017, folks predicted that a foldable iPhone could launch in the then-near future of 2020 — which didn’t happen. Analysts and leakers have been kicking the release date down the road ever since, and rumors and wish lists have lingered as phone fans keep their hopes alive. Absent any confirmed details from Apple, here’s everything we know so far about the company’s future foray into foldables.
A new patent granted to Apple in July 2024, which was applied for years ago, shows how long the company has been working on a folding iPhone. Kuo’s report in early March said that an Apple foldable could launch at the end of 2026, with a 7.8-inch crease-free inner display and a 5.5-inch outer display.
Accordingly, Kuo believes the price would match that of other similar folding devices, at $2,000 to $2,500. Despite the high price tag, he says projected shipments are 3 to 5 million devices, which is a confident estimate given only 19.3 foldables were sold in 2024, market research firm IDC reported.
Although many reports have focused on the company’s struggles to eliminate the crease within the internal folding display, Apple’s patent indicates that the development has been ongoing for some time. Creases have plagued foldable phones since their introduction in 2020, and although the most recent Samsung Galaxy Z Fold 7 and Samsung Galaxy Z Flip 7 have reduced the crease, it is still visible and noticeable.
By mid-2024, market analysts at TrendForce estimated that display crease issues might push back an Apple foldable until 2027, according to 9to5Mac. Prior rumors said Apple may not launch its own flexible screen device until 2025, and Samsung hasn’t let phone fans forget it by releasing an app that will let Apple phone owners experience a Z Fold-esque experience by placing two iPhones side-by-side.
Read more: I Visited Samsung’s Home Turf to See if Foldable Phones Are Really the Future
iPhone 2026 lineup
There’s no guarantee about which phones Apple will release during its usual September window, but the safest bet is on another series of flat phones, which we expect to be the iPhone 18 series. But what else could be coming alongside the usual lineup?
There could be an iPhone Air 2, though rumors conflict on whether to expect one next year or not. There’s been a lot more evidence for an iPhone Fold, though whether it comes out in 2026 or in later years is still uncertain. If the iPhone Fold does launch next year, more rumors have suggested a clamshell device has been prioritized and may come first — given reports of Apple researching a book-style foldable, we could get one of those as well.
iPhone Fold or iPhone Air 2?
There’s the chance that we get an iPhone Fold next year, which rumors have said could launch in 2026 at the earliest, though it could also come out in 2027 or later. It should be noted that analysts and rumors had predicted a foldable iPhone release from as far back as 2022, so the rolling prospective launch windows don’t lend confidence that we’ll necessarily see the device come out next year. Given Samsung’s six-year head start on making foldables, Apple seems to be in no rush to get one out.
While the iPhone Air came out with the iPhone 17 handsets, there are conflicting rumors on whether we’ll see an iPhone Air 2 in 2026. A recent report from The Information says that Apple is delaying the release of the next version of the iPhone, citing people familiar with the matter. This follows rumors that disappointing iPhone Air sales after launch led Apple to dial back production, though even that claim was denounced by TD Cowen, according to a note from the investment research firm that was seen by AppleInsider that asserted the company would continue producing the thin phone. The Information’s story was amended to say that the delay could be caused by engineers who are re-considering the Air’s design so that it could support a second rear camera.
All of which casts doubt on whether we’ll get an iPhone Air 2 next year, but there’s not enough evidence yet to roundly dismiss the possibility.
iPhone Fold specs
There are no confirmed specs for the iPhone Fold, because Apple hasn’t even confirmed one exists or is coming out. Given we don’t have a year of expected release, we can’t much predict what kind of internal specs the iPhone Fold will have — presumably, Apple will want its most powerful A-series chip to run it, along with enough RAM to handle two or three displays (depending on whether it folds inward or outward and needs a dedicated outer screen).
We do have some predictions for other specs, though only for the book-style Fold (not the clamshell). In March, analyst Kuo predicted the larger Fold could have a 5.5-inch outer screen and 7.8-inch inner display. When folded up, it will be 9-9.5mm thick and 4.5-4.8mm when unfolded. A front-facing camera will be available whether the phone is folded or unfolded, while it will also have two rear cameras.
Kuo predicted that the device will use the same high-density battery cells as used in what he referred to then as the «ultra-thin iPhone 17» which is presumably the iPhone Air. But that trim thickness means the foldable may forgo Face ID, so the device may use Touch ID in a side button.
iPhone Fold release date
Apple has neither confirmed the iPhone Fold nor announced a proper release date. Analysts and rumors have predicted that the foldable could come out in 2026 or be pushed until next year.
As for timing, since the iPhone Air was released alongside the iPhone 17 models, the Fold could come alongside the iPhone 18 series. But since Apple released the iPhone 16E early this year, far before the September window for its main iPhone release, the company could do the same with the iPhone 17E in 2026. Apple could even delay the launch of the standard iPhone 18 to the spring of 2027 to make room for the iPhone Fold in Apple’s Sept. 2026 launch, according to an ET News report. Given that Samsung offsets its standard and foldable phone releases at Unpacked events months apart from each other, Apple could do the same.
What Apple’s new patent says about the iPhone Flip
After years of rumors that Apple was working on foldable phones, a patent was finally granted to the company, confirming that it has been working toward a folding iPhone. The 22-page patent (PDF), simply titled «Electronic Devices With Durable Folding Displays,» was filed in November 2021 and granted on July 16, 2024.
Sadly for folding iPhone hopefuls, the patent doesn’t offer much illumination of what an iPhone Flip might look like. Most of the pages show figures depicting cross-sections of potential displays that fold about a hinge but not the device they’re folding around.
There are some tidbits deeper into the text of the patent that hint at potential design choices Apple might make, like a hinge that holds the display flat when unfolded but which would let the display «slightly fold about the bend axis when the electronic device is jolted during the drop event» — in other words, if dropped, the device would fold inward slightly so that it lands on its edges to protect the inner display.
It’s important to note that all evidence shows Apple working on a foldable iPhone, but the patent broadly applies to folding displays in general — to wit, some figure schematics describe a device that «may be a cellular telephone, tablet computer, laptop computer, wristwatch device or other wearable device, a television, a stand-alone computer display or other monitor» or screens as far-ranging as on vehicles, in kiosks, in media players or other electronic equipment.
The rest of the patent describes what an Apple device with a folding display may have and categorically lists things like batteries and wireless charging, Bluetooth and Wi-Fi connectivity, LED or LCD displays, microphones and capacitive sensors, haptics and so on. There’s explicit mention of a display folding 180 degrees, or fully flat, which follows most other foldables — presumably, Apple isn’t going to leapfrog the competition in following Samsung’s concept displays we saw at CES that unfold nearly 360 degrees.
Two foldable iPhone Flips?
Foldable iPhone hopefuls will at least be encouraged that Apple seemingly continues to tinker with an iPhone Flip design. The company is said to be working on two sizes of folding iPhones: a book-style and a clamshell-style, according to an older report by The Information, although this may be contradicted by a newer report by the same site suggesting Apple had settled on the latter for a smaller device. This aligns with prior rumors hinting the iPhone Flip will be in the clamshell format similar to the Samsung Galaxy Z Flip series or Motorola Razr Ultra.
It sounds like Apple’s been struggling to meet its high expectations: The company’s design team wants the iPhone Flip to be half as thin as current iPhone models and to have displays on the outside that are visible when the device is folded shut, according to the report.
Development on the iPhone Flip was halted around 2020, the older report noted, in order to focus on a new project, a folding iPad. This device would have an 8-inch display, around the size of the iPad Mini. The foldable tablet supposedly had less strict durability and thickness requirements, as it wouldn’t need to fit in pockets like an iPhone Flip. Apple was still working on ways to reduce the crease in the middle of the folding display and get the iPad to lie fully flat.
Release date: The iPhone Flip could launch in 2027
The latest indications of an iPhone Flip release date came back in June, when analyst Kuo suggested production could kick off in 2026 with phones coming out that year. This follows Kuo’s earlier prediction in March that the company could release a crease-free foldable by the end of 2026. Furthermore, this would likely be a book-style foldable with a 7.8-inch internal display and 5.5-inch external screen, which is counter to other predictions anticipating a clamshell-style foldable.
It’s possible that these timeline predictions apply to one or the other or, due to the vague nature of rumors, even both — that is, Apple could be working on both a book-style and clamshell style foldable, though it’s less clear if release date expectations would be interchangeable or if Apple would stagger their release.
It’s been an open secret for years that Apple is working toward a foldable iPhone. The company has been registering patents for foldable technologies for almost a decade, and while there’s no guarantee that one will come out even after all that research (remember AirPower?), there’s still been buzz and possible release dates floated for years — though still not one solid enough to get excited about.
Early rumors pointed as far back as 2021 as a potential target date, but the year passed with no foldable iPhone in sight. A March 2021 report from longtime analyst Kuo (via MacRumors) suggested 2023 might be more realistic (though that year has come and gone). According to Kuo, Apple still needs to figure out technology and mass production issues before bringing a device like this to market, hence the wait. Speculation later in 2021 from Bloomberg’s Mark Gurman aligned with Kuo’s predictions: In his Power On Newsletter, Gurman said that the foldable iPhone may not arrive for another two to three years.
Since then, new rumors have pointed to an even later release. Reliable display analyst Ross Young said in February 2024 that the foldable iPhone had been pushed back to 2025, and Kuo reaffirmed his predicted release window in a tweet in April 2022.
«Apple may launch its first foldable product in 2025 at the earliest, which may be a foldable iPad or a hybrid of iPad and iPhone,» Kuo wrote in the tweet.
Another rumor, first noticed by MacRumors in February of 2024 by Weibo-based blogger Fixed Focus Digital, suggested that the foldable iPhone project is delayed for the foreseeable future. The problem? Apple, which is rumored to be using Samsung folding panels for its iPhone Flip’s display, was dissatisfied with the screens’ performance after they broke down a few days into testing.
That’s echoed by the most recent estimate by TrendForce market analysts, reported in 9to5Mac, which predicted that an Apple foldable might not be released until 2027 at the earliest. Why? Apple’s strict requirements for reliability and the phone display’s crease. But Kuo’s more recent March 2025 predictions explicitly noted a crease-free foldable display, suggesting Apple might have moved past this roadblock — if all these rumors are to be believed, of course.
Read more: Top Foldable Phones for 2025
Design: What will the foldable iPhone look like?
A 2021 report from Bloomberg indicated Apple already had a working prototype of a foldable iPhone display. While it wasn’t a working model, it was a step up from a patent — which, until then, was all we had seen.
Apple seems to have taken out every patent under the sun when it comes to foldable displays, including an origami-style folding display, a flip-up display and even a wraparound display. We don’t know which one will make the final cut, but both Kuo and Bloomberg seem to agree that the current prototype is more of a traditional fold-out design.
Unlike Microsoft’s Surface Duo, which has hinges on the exterior, Apple’s would have one continuous display with a hidden hinge mechanism like the Galaxy Fold.
Apple leaker Jon Prosser reported in early 2021 that the iPhone Flip will likely use a clamshell design and come in several «fun colors.» Between the bright pastels of the iPhone 15 and Plus and the sleeker deep blue of the iPhone 15 Pro and Pro Max, an array of fun colors for Apple’s first foldable device is definitely a possibility.
YouTuber ConceptsiPhone also gave us a glimpse into what the iPhone Flip could look with concept art of the foldable iPhone in the colors blue, red, gold and green.
In March 2025, analyst Kuo had some very specific but non-clamshell predictions: that Apple would release a book-style foldable with a 5.5-inch outer screen that unfolded to have a 7.8-inch internal screen, and be 4.5-4.8mm when unfolded but 9-9.5mm thick. It would have the same high-density battery cells as the «ultra-thin iPhone 17» and a hinge with stainless steel and titanium alloy (a favorite material of Apple’s iPhone 16 Pro and Pro Max as well as the Apple Watch Ultra 2).
Per Kuo’s predictions, the foldable will have two rear cameras and a front-facing camera on both the external and internal displays. Most interestingly, Kuo also expects that Apple’s book-style foldable will see the return of Touch ID as a side button, as Face ID might be left out due to space constraints — presumably for the array of depth-of-field sensors and cameras needed for the tech.
Roadblocks: What still stands in Apple’s way?
Samsung and others have been testing the waters, but Apple has been learning from the pain points of their foldable devices and figuring out how they’d be used.
One of these pain points is the crease. A lot of the current cover materials, including the glass and plastic mix that Samsung uses for the Z Fold and Z Flip, show a visible crease when folded out to full screen. To avoid it, Apple would likely have to wait for Corning, Apple’s glass provider, to create some kind of bendable version of its Ceramic Shield screen. The company is already working on a bendable glass but hasn’t announced a launch date for it.
Kuo tweeted in April 2022 that Apple was testing a foldable OLED screen. Korean tech news site The Elec also reported that Apple was working with LG to develop a foldable OLED panel.
Cost: Foldable phones don’t come cheap
Price is another major problem for these types of devices. Although Samsung still has the most affordable folding phone with the clamshell Motorola Razr at $700, most others in the category are book-style foldables like the Galaxy Z Fold 7 and the Pixel 9 Pro Fold, which are around twice the price of most flagship phones. We wouldn’t expect a foldable iPhone to be cheaper than its rivals. Apple’s foldable needs to be in line with current foldable and nonfoldable models to be able to compete against other brands and entice iPhone users to ditch their single-screen devices and pay more for a foldable.
Analyst Kuo predicted that a book-style iPhone foldable coming in 2026 could be priced anywhere from $2,000 to $2,500 as it’s «expected to generate strong replacement demand-despite the premium price-provided quality meets expectations.»
A report last year found that half of American consumers are interested in buying a foldable phone, though Apple customers are slightly less willing to make the leap than Samsung or LG users. Perhaps the «Apple effect» will change those stats if and when a foldable iPhone ever becomes a reality.
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.
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.
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&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>
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