WhatsApp founder resigning, US tariff deadline, hot mic “In the Money”
Good morning, Quartz readers!
What to watch for today
South Korea pulls its loudspeakers from the DMZ. The defense ministry is removing a sound system that blared K-Pop and propaganda across the border, in the wake of a groundbreaking summit with Kim Jong-un last week. Meanwhile, China’s foreign minister will visit Pyongyang.
A deadline looms on US steel and aluminum tariffs. The Trump administration will decide whether to extend an exemption for European countries and other US allies, which is set to expire May 1. “The president has not made any decision yet,” said Treasury secretary Steven Mnuchin.
A chastened Facebook kicks off its annual developer conference. The company has halted new products and rolled back developer access to its massive social network in the wake of the Cambridge Analytica scandal. The company is expected to focus on virtual reality, gaming, and messaging for businesses.
Apple’s second-quarter earnings. The company’s stock has dipped 8% in the past two weeks and investors are anxious after analysts lowered expectations for iPhone sales.
While you were sleeping
WhatsApp co-founder Jan Koum is reportedly leaving Facebook. The billionaire who sold WhatsApp for $19 billion has clashed with Facebook over its plans to use personal data from the world’s biggest messaging app and to weaken its encryption (paywall), the Washington Post reports. Co-founder Brian Acton, who resigned in November, has also become a Facebook critic.
US consumer spending ticked up. Purchases rose 0.4% from the prior month, and inflation hit the Federal Reserve’s 2% target for the first time in a year. Despite that, the central bank is still likely to stick to its plan of gradual interest-rate hikes. Separately, the US Treasury said it borrowed a record $488 billion in the first quarter, as it prepares for bigger budget deficits.
Marathon Petroleum offered $23 billion for Andeavor. The combined company would be largest US independent fuel refiner, overtaking Valero Energy. Marathon offered a 24% premium over its rival’s closing price Friday, making the offer the biggest-ever for an oil refinery.
McDonald’s earnings crushed expectations. The fast-food giant blew past expectations thanks to robust overseas sales and more spending by US consumers. Shares rose 5% on the news.
Disney signed a deal to make content for Twitter. The company’s ESPN sports network will work with the social media platform to create live sports programming and other content as a part of the latter’s pivot to streaming video. Specific content in development will be announced later this week; Twitter share rose 6% on the news.
Quartz obsession interlude
Tim Fernholz on Jeff Bezos’s attempt to save human civilization. “Now take the scenario, where you move out into the Solar System. The Solar System can easily support a trillion humans. And if we had a trillion humans, we would have a thousand Einsteins and a thousand Mozarts and unlimited (for all practical purposes) resources and solar power unlimited for all practical purposes. That’s the world that I want my great-grandchildren’s great-grandchildren to live in.” Read more here.
Matters of debate
Cold shipping is so hot right now. Refrigerated containers known as reefers are satisfying a new global demand for more exotic produce (paywall).
The plan to rescue the Great Barrier Reef is too little, too late. Australia’s $400 million plan can only slow coral deaths in the face of climate change.
Europe can save the Iran nuclear deal. Donald Trump should be forced to make a choice: preserve the deal, or lose EU cooperation (paywall) on other issues.
Surprising discoveries
Trump and Macron’s tree is missing. Planted at the White House during the French president’s visit, it’s been pulled from the ground until its quarantine is complete.
The world’s oldest spider died at 43. The female trapdoor spider, who outlasted the next-oldest known arachnid by more than a decade, was killed by a wasp sting.
Sainsbury’s CEO was caught singing “We’re in the Money” after the Asda deal. Mike Coupe apologized for an “unguarded moment” as he prepared for a TV interview.
China is mining data directly from workers’ brains. Manufacturers are outfitting employees with wireless sensors that can “detect emotional spikes such as depression, anxiety or rage.”
South Korea and North Korea broke the ice with magic tricks. A banquet featured a magician who turned $10 into a $100 bill (paywall) and made some jokes about the “trump card.”
Our best wishes for a productive day. Please send any news, comments, elderly spiders, and dead trees to [email protected]. You can follow us on Twitter for updates throughout the day or download our apps for iPhone and Android. Today’s Daily Brief was written by Preeti Varathan and Sangeeta Singh-Kurtz and edited by Adam Pasick.