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Amy Hood, Microsoft's chief financial officer, is under growing scrutiny as she navigates the company’s massive artificial intelligence (AI) investment cycle, having paused parts of the company's data center expansion in 2024 over concerns about unsustainable spending and uncertain demand forecasts. The decision, while aimed at maintaining financial discipline, has since contributed to a shortage of computing capacity, limiting Microsoft’s ability to meet surging demand for AI and cloud services and allowing competitors to secure some of the abandoned projects. Hood has earned strong support from investors for preserving margins through tight cost controls, including layoffs, hiring restrictions, and rigorous capital allocation, even as rivals ramp up spending. However, Microsoft now faces a delicate balancing act: continuing to invest heavily in AI infrastructure while avoiding overextension in a market increasingly clouded by fears of an AI-driven tech bubble. The situation underscores the broader industry challenge of predicting long-term demand for transformative technologies while managing short-term financial performance and operational constraints.

 

Bloomberg

Amazon is reportedly in advanced talks to acquire satellite operator Globalstar in a potential $9bn deal aimed at accelerating its low Earth orbit internet ambitions and competing with SpaceX’s dominant Starlink network. Negotiations are ongoing and may still collapse, with complexity arising due to Apple’s 20% stake in Globalstar and its existing agreement to use the majority of the company’s satellite capacity for iPhone connectivity services. Globalstar has recently attracted takeover interest from multiple parties, with its valuation rising sharply amid speculation. An acquisition would strengthen Amazon’s Project Kuiper satellite initiative, which currently lags far behind Starlink’s more than 10,000 satellites, with Amazon having launched just over 180 and facing delays due to limited launch capacity. The move would help Amazon scale its network more quickly as it targets commercial services, including in-flight connectivity deals with major airlines later this decade. 

 

Bloomberg

Financial Times

Reuters

Hasbro is investigating a cyberattack that forced the company to take parts of its network offline, potentially causing delays to product ordering, shipping, and other key operations. The toy maker detected unauthorized access over the weekend and has engaged external cybersecurity experts, with contingency procedures expected to remain in place for several weeks as systems are restored. The disruption has raised concerns about operational and revenue impacts, with shares falling 5% on Wednesday following the announcement.

 

Bloomberg

Reuters

Wall Street Journal

The U.S. has secured access to critical rare earth minerals as part of a $565m loan to Brazil’s Serra Verde, with the agreement including offtake controls to direct production toward the U.S. and allied buyers. The deal, led by the U.S. International Development Finance Corporation, aims to reduce reliance on China by securing supply from one of the few producers of heavy rare earths outside the country, while broader efforts - including potential equity stakes and additional financing deals - highlight Washington’s push to strengthen control over strategic mineral supply chains.

 

Latin Lawyer

Financial Times

A majority of Supreme Court justices appeared skeptical of the Trump administration’s attempt to end automatic citizenship for those born in the country, in oral arguments ahead of a ruling that is expected by early July. The case, which tests what it means to be an American, could affect an estimated 250,000 children born to undocumented immigrants and temporary visitors each year. The administration says Trump's order, which would restrict birthright citizenship to babies with at least one parent who is a U.S. citizen or green-card holder, would not apply retroactively, but Democrats say it would also strip millions of current Americans of their citizenship, as well as their ability to vote and obtain passports. Chief Justice John Roberts dismissed contentions by President Donald Trump’s top Supreme Court lawyer, Solicitor General D. John Sauer, that the U.S. faced a “new world” in which so-called birth tourism was undermining the historic understanding of the nation. “Well, it’s a new world,” Roberts said. “It’s the same Constitution.”

 

Chicago Sun Times

ABA Journal

Bloomberg

Financial Times

Los Angeles Times

The American Bar Association’s lawsuit challenging President Donald Trump’s attacks on law firms can move forward after a federal judge rejected the Justice Department’s motion to dismiss the case. The ABA plausibly alleged “a realistic threat of sanctions to establish its standing,” Judge Amir Ali ruled. Ali said the ABA's suit "details at length the chilling effect the alleged policy has had on firms and lawyers," including claims that law firms have declined ​to take on some matters that challenge the Trump administration out of fear of retaliation. ABA President Michelle ​Behnke said the organization was "confident in the soundness" of its lawsuit. "The ABA believes this case is crucial to defending our members’ ​rights to represent clients of their choice and the public’s right to secure counsel of choice," Behnke said.

 

Law

Bloomberg Tax

Law

Reuters

EY has instructed its U.S. tax employees to work in the office or at client sites an average of three days per week, requiring at least 12 in-person days per month starting July 1, as it tightens its hybrid working policy. The firm said the move is intended to strengthen collaboration, learning, and mentorship, while still allowing flexibility in how employees schedule their office time. The change reflects a broader trend across financial and professional services firms toward increased in-person work following pandemic-era remote policies.

 

Bloomberg

U.S. retail sales increased 0.6% in February, outperforming expectations of a 0.4% rise and reversing a revised 0.1% decline in January, indicating that consumer spending remains resilient despite a backdrop of weak job growth and subdued sentiment. The rebound was broad-based, with spending rising across most categories, led by department stores, up 3%, personal care, up 2.3%, and clothing, up 2%, while only grocery and furniture sales declined by 1% each. Underlying demand also strengthened, with the closely watched “control group” measure, excluding volatile categories such as autos, fuel, and building materials, rising 0.45%, above forecasts of 0.3%. However, the data reflects conditions before the recent escalation of the Middle East conflict, which has pushed oil prices above $100 per barrel and gasoline prices past $4 per gallon. Economists warn that higher energy costs, increased inflationary pressure, and heightened geopolitical uncertainty could weigh on consumer spending in the coming months, potentially dampening the current momentum.

 

ABC News

CNN

Bloomberg

Reuters

U.S. manufacturing activity expanded in March, with the ISM purchasing managers’ index rising to 52.7 from 52.4 in February, remaining above the 50-mark separating expansion from contraction, and beating analyst expectations. However, the survey also signalled intensifying inflationary pressures, with the prices index jumping to 78.3, its highest level since 2022, as all tracked commodity categories recorded price increases, driven in part by disruption and higher costs linked to the war in Iran. Employment remained in contraction at 48.7, highlighting ongoing weakness in manufacturing jobs despite broader activity growth. A separate report on Thursday also indicated manufacturing sector growth, with the S&P Global Manufacturing PMI rising to 52.3 from 51.6, marking an eighth consecutive month of growth despite ongoing geopolitical tensions. Additionally, it suggested sharp increases in input costs driven by higher oil prices, worsening supplier delays, and early signs of stockpiling, while hiring has slowed as firms brace for potential disruption to demand, supply chains, and production in the months ahead.

 

Advisor Perspectives

Wall Street Journal

Business activity in the Chicago region continued to expand in March, though at a slower pace, with the Chicago Business Barometer falling to 52.8 from 57.7 in February and below expectations of 55.1. While readings above 50 indicate growth, the slowdown was driven by declines in employment, production, and new orders, with employment returning to contraction and production and orders weakening but remaining in expansion. Order backlogs rose to their highest level since December 2022, while input costs increased, with the prices paid index reaching its highest level since December amid rising metals prices and geopolitical pressures.

 

MarketScreener

RTT News

U.S. consumer confidence unexpectedly improved in March, with the Conference Board index rising to 91.8 from 91.0, driven by more positive assessments of current business and labor market conditions. However, expectations for the next six months declined, highlighting continued caution among consumers. Despite the uptick, confidence remains relatively subdued as inflation concerns, particularly linked to rising energy costs amid the Iran conflict, intensify. Labor market perceptions were mixed, with more consumers saying jobs are both plentiful and hard to get, while spending intentions showed strength for big-ticket items like appliances but weakness for housing and travel.

 

Bloomberg

US News and World Report

The recent overhaul of the Tax Code under President Donald Trump has led to significant reductions in federal cash income taxes for many of the largest corporations in the U.S. A Bloomberg analysis revealed that nearly a dozen of the top 50 companies reported lower tax payments directly linked to the $3.4tn tax law, resulting in a $65bn drop in annual corporate tax revenues. Amazon.com exemplified this trend, with its tax liability decreasing from over $7bn to $2.8bn despite increased revenue. Brandon Pizzola, an economist at EY, noted that the law provided a "roughly 15% tax cut to Corporate America." Matthew Gardner from the Institute on Taxation and Economic Policy highlighted that corporate effective tax rates are at their lowest in 40 years, indicating a clear trend of substantial tax savings for corporations. "If filing season ended right now, we'd have the lowest effective corporate tax rates overall that I've ever seen," Gardner said.

 

Accounting Today

A recent report by Coinbase and Cointracker found that while 74% of cryptocurrency holders recognize their transactions are taxable, many face challenges in compliance. Despite 56% feeling confident about their knowledge of crypto tax rules, 61% are unaware of the current regulations. Lawrence Zlatkin, vice president of tax at Coinbase, said: "The story this data tells is one of confusion." Only 49% understand that selling crypto triggers a tax event, and many struggle with cost basis calculations due to incomplete data from exchanges. While 76% acknowledge the need for cost basis adjustments, only 35% have made them. The report highlights that 78% of users rely on general tax software, with only 8% using crypto-specific solutions.

 

Accounting Today

Unilever's European works council has said that the company's $65bn merger with McCormick could precipitate union action over potential job losses. The labor pushback comes as Unilever CEO Fernando Fernández seeks to streamline operations and focus on high-growth categories. The deal, which combines brands including Hellmann's and Knorr with McCormick's spices, is expected to close next year pending approvals. "We fear that ​a possible transaction could be accompanied by further personnel measures," the ​Unilever European Works Council (UEWC), which represents nearly 20,000 employees in Europe and Britain, told Reuters. "Uncertainty among the workforce is high." The UEWC said it would weigh what action might be taken if Unilever does not "find ​good solutions for ​affected employees," adding "It could ⁠lead from negotiations to maybe strikes in different countries where that is possible. It depends on ​the legislation around Europe."

 

Reuters

Oxfam estimates that the world’s wealthiest individuals may have concealed up to $3.55tn from tax authorities through offshore holdings, despite increased transparency measures introduced in recent years. The charity said total offshore wealth reached $13.25tn in 2023, with the majority of hidden assets likely held by the richest 0.1% of households, and it renewed calls for a global wealth tax and stronger international cooperation to close tax loopholes and improve reporting standards.

 

The Guardian