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Amazon engineers expressed frustration over the company's mass layoffs while committing to spend $200bn on AI infrastructure this year. At a Seattle City Council meeting, Patrick Schloesser, a software engineer at Amazon Web Services, said: “What that tells me is that Big Tech is desperate to build as much compute capacity as it can, as fast as it can.” The council unanimously approved a one-year moratorium on new large-scale AI data centers to regulate their development. This decision follows public outcry against proposed projects, with 14 states considering similar legislation. Schloesser, along with other engineers, urged for renewable energy commitments and better job provisions in data center projects. The layoffs, totaling over 30,000 since October, are part of chief executive Andy Jassy's strategy to streamline operations.

 

CNBC

Infrastructure Face Off: On-Premises vs. Cloud

A concise comparison of on-premises and cloud infrastructure options for organizations running SAP workloads.

This infographic outlines the operational and financial case for migrating SAP environments to the cloud, covering cost predictability, security, compliance, and scalability. It draws on NTT DATA's experience as an SAP-certified partner and positions Microsoft Azure's global infrastructure as the underlying platform for organizations looking to reduce the burden on internal IT teams while maintaining reliability.

The resource addresses how a single consolidated fee structure — covering infrastructure, support, backups, and upgrades — can free IT resources to focus on higher-value work.

Download free

 

U.S. automakers, retailers, technology companies, and medical device manufacturers are warning that a growing shortage of memory chips, fueled by surging demand from artificial intelligence data centers, is driving up costs and threatening supply chains across multiple industries. In a letter to the U.S. Treasury and Commerce departments, industry groups including the Alliance for Automotive Innovation, the National Retail Federation, and the Medical Device Manufacturers Association said an “urgent imbalance” in the memory chip market could lead to significant near-term price increases for consumers and disrupt critical manufacturing sectors. The groups argue that AI data centers are consuming an increasing share of global memory chip capacity, causing an unprecedented rise in memory chip prices and reducing supplies available for consumer-facing industries.

 

Reuters

Meta Platforms has repeatedly postponed the release of the developer API for its latest AI model, Muse Spark, in a setback to the company’s efforts to generate revenue from its growing AI investments. The API, which would allow developers to build applications using Meta’s proprietary AI technology, was originally expected to launch shortly after Muse Spark’s release in April. However, according to reports, the rollout has been delayed multiple times due to technical issues, testing requirements and additional infrastructure needs. Meta now says it plans to release the API later this month. The delays come as Meta significantly increases spending on AI infrastructure, with capital expenditure expected to reach as much as $145bn this year. The company is seeking to compete with rivals such as OpenAI and Anthropic, which generate substantial revenue by charging customers for access to their AI models through APIs.

 

Wall Street Journal

Morgan Stanley is set to allow external AI agents to connect with its stock administration platforms, a move that could transform how corporate clients manage complex stock plans. Mark Mitchell, chief product officer of Morgan Stanley at Work, stated: “The way we see it, in a future state, our corporate clients will not be logging into ShareWorks or Equity Edge.” Instead, clients will utilize AI-powered tools directly, enhancing efficiency without increasing headcount. The initiative is part of a broader trend on Wall Street, where firms are exploring AI's potential to streamline operations. Morgan Stanley's wealth management division, which oversees $7.35tn in client assets, aims to convert employees into advisory clients through effective stock plan administration. The bank's collaboration with OpenAI and the adoption of the Model Context Protocol signify its commitment to integrating AI into its services.

 

CNBC

Humanoid robots are projected to grow into a $200bn market within the next decade, according to Barclays. Zornitza Todorova, head of thematic FICC research at Barclays, stated: “It’s the decade of the robot,” highlighting the expected 100-fold growth in the industry as AI technology advances. Currently valued at $2bn-$3bn, the market is anticipated to reach $200bn by 2035. The report, “AI Gets Physical,” emphasizes that humanoid robots are designed to fill labor gaps in various sectors, particularly as populations age and job preferences shift. China is leading in this field, accounting for 85% of global installations and producing robots at significantly lower costs than Western competitors. Dan Ives from Wedbush Securities noted that humanoid robots could represent a major market opportunity in the AI Revolution, predicting a transformative impact on consumer and business operations over the next decade.

 

CNBC

Uber is reducing its people team by 23%, impacting human resources and recruitment staff, as part of a strategy to streamline operations under new president Jill Hazelbaker. Chief executive Dara Khosrowshahi stated that the “changes are necessary to maximize the effectiveness of the People team and the enormous potential ahead of us.” Although Uber did not directly link the layoffs to artificial intelligence, it confirmed that it has established budget tiers for agentic tools used by employees. The layoffs represent “well under 1%” of Uber's 34,000 employees. Hazelbaker emphasized the need for a “more connected, modern, operationally excellent organization,” citing issues of complexity and fragmentation within the team.

 

CNBC

U.S. businesses faced another month of energy-driven cost increases and economic uncertainty in May, according to the Federal Reserve’s latest Beige Book. The survey found that higher energy prices have continued to pressure businesses and consumers, contributing to weaker sentiment and reinforcing concerns that inflation will remain above the Federal Reserve’s target. While higher-income households have largely remained resilient, lower-income consumers are experiencing increasing financial strain, with several regions reporting rising loan delinquencies. Most Federal Reserve districts reported stronger inflationary pressures than in the previous survey period. Input costs, particularly energy-related expenses, increased faster than selling prices, squeezing profit margins and forcing companies to adopt mitigation strategies such as supply chain adjustments, product changes, reduced offerings, and absorbing some costs to maintain demand.

 

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Wall Street Journal

U.S. factory orders rose 4.8% in April, marking their largest monthly increase since May 2025, driven by a surge in commercial aircraft demand and broad-based strength across several manufacturing sectors. The increase exceeded economists’ expectations of a 4.6% rise and followed an upwardly revised 1.8% gain in March. On an annual basis, factory orders were up 6.0%, highlighting continued resilience in the manufacturing sector despite ongoing geopolitical and supply chain challenges. Commercial aircraft orders jumped 165.9% during the month, with Boeing reporting 136 new orders in April, up from 33 in March. Demand also strengthened for primary metals, where orders rose 2.0%, fabricated metal products, up 3.5%, machinery, up 0.7%, and electrical equipment and appliances, up 0.5%. However, orders for computers and electronic products fell 0.7%, including a 2.5% decline in computer orders. Meanwhile, non-defense capital goods orders excluding aircraft, a key measure of business investment plans, declined 1.0%, although shipments of these core capital goods increased 0.4%.

 

Reuters

U.S. services activity strengthened in May, with the ISM nonmanufacturing PMI rising to 54.5 from 53.6 in April, above economists’ expectations of 53.8 and signaling continued expansion across the sector. The increase was driven by businesses placing orders early and rebuilding inventories amid concerns that the U.S.-Israel war with Iran could worsen shortages and push prices higher. New orders rose to 57.3 from 53.5, while the inventories index jumped to 62.5 from 53.1. Cost pressures remained elevated, with the prices-paid index increasing to 71.3 from 70.7, suggesting higher energy, aluminum, and fertilizer prices are spilling into the broader services economy. Supplier deliveries also remained slow, reflecting supply chain strains rather than only stronger demand. 

 

Reuters

Wall Street Journal

As key federal solar and wind tax credits are phased out by the end of 2027, state and local tax incentives are expected to become increasingly important in determining where renewable energy projects are developed. Industry experts argue that tax incentives are often as critical to project economics as the underlying value of the energy assets themselves. States such as Texas, New York, and New Mexico are positioned to benefit from a combination of favorable tax policies, stable incentive programs, strong infrastructure, and growing energy demand. Conversely, states including California, Pennsylvania, Tennessee, and West Virginia may face challenges attracting future renewable investment. California continues to benefit from an established solar market, but expiring incentives, reduced compensation for exported solar power, higher taxes, and regulatory complexity could weigh on future development. Pennsylvania’s solar growth has been constrained by limited incentives, while Tennessee and West Virginia lack the scale of support needed to attract significant new projects.

 

Bloomberg Tax

In May, the job market demonstrated robust growth, with 57,000 new hires in education and health services, followed by 36,000 in trade, transportation, and utilities. Nela Richardson, chief economist at ADP, said, "Hiring was more broad-based in May than we've seen in the last few years." Companies with fewer than 50 employees led the way with 67,000 new hires, while larger firms added 40,000. Annual pay increased by 4.4% for those staying in their jobs, and job-switchers experienced a higher growth of 6.6%. This report precedes the Bureau of Labor Statistics' upcoming release on nonfarm payrolls, with expectations of 80,000 new jobs. Federal Reserve officials are closely monitoring these numbers ahead of their policy meeting.

 

CNBC

U.S. News

Insurers that provide directors-and-officers liability coverage to private-credit firms are preparing for a potential wave of lawsuits and regulatory actions, prompting higher premiums and stricter policy terms amid growing scrutiny of valuation practices across the industry. Insurance executives expect premium increases to accelerate, with some forecasting double-digit rises as concerns mount over how private-credit funds value their loan portfolios. Marsh reported that premiums for private-credit and private-equity D&O policy renewals increased 3% year-over-year in the first quarter, while rates for public companies generally remained flat. The heightened caution follows a surge in investor redemption requests and concerns that some private-credit assets, particularly loans to software companies vulnerable to AI disruption, may be overvalued. Industry leaders have pushed back on those fears, although Apollo Global Management chief executive Marc Rowan recently pledged greater transparency, including daily pricing for private-credit funds by September.

 

Wall Street Journal

Macy’s has raised its full-year guidance after delivering better-than-expected first-quarter results, with comparable sales recording their strongest first-quarter growth in four years as the retailer's turnaround strategy continues to gain traction. Comparable sales rose 3% during the quarter, including growth of 1.6% at the Macy’s banner and 10.2% at Bloomingdale’s, helping drive net sales up 1.8% to $4.68bn, ahead of analyst expectations of $4.61bn. Adjusted earnings per share came in at 13 cents, comfortably ahead of forecasts of three cents. Net income increased to $63m from $38m a year earlier, while management said improved sales and profitability prompted an upgrade to full-year expectations.

 

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Wall Street Journal

PVH, the owner of Calvin Klein and Tommy Hilfiger, has lowered its full-year revenue outlook, citing the prolonged impact of the conflict in Iran on consumer spending across Europe, the Middle East, and Africa (EMEA), despite reporting better-than-expected first-quarter results. The company now expects full-year revenue to be broadly flat, compared with previous guidance for slight growth. Management said stronger brand momentum and continued growth in the Americas and Asia-Pacific are being offset by weaker consumer demand in EMEA as geopolitical tensions weigh on spending. First-quarter trading was stronger than anticipated, with revenue rising 2.5% to $2.03bn from $1.98bn a year earlier, while adjusted earnings per share increased to $2.01, ahead of consensus forecasts of $1.82. Net profit improved to $88m, compared with a loss of $44.8m in the prior-year period.

 

Wall Street Journal