Flagship

Trump suggests Iran talks could take time

US President Donald Trump signaled an extended timeline for peace talks with Iran, saying he is “not satisfied” with the current terms of negotiations. Iranian officials “thought they were going to outwait me,” Trump said Wednesday, adding that he doesn’t care about the upcoming US midterm elections, in which rising costs stemming from the conflict are set to play a central role. Both countries have delivered inconsistent messages on the state of talks: The White House dismissed a draft memorandum of understanding published by Iranian state media as a “complete fabrication.” Markets, though, appeared optimistic, with oil prices falling after the US secretary of state said Washington would give talks “every chance to succeed.”

Trump risks financial crisis, ECB warns

The European Central Bank warned US President Donald Trump’s policies could lead to a financial crisis, as inflation risks grow more urgent. The bank on Wednesday cited the war with Iran, coupled with Trump’s shifting trade positions that have “become a structural feature of the global environment.” Europe is bracing for higher prices stemming from the energy shock of the war, and an interest rate hike is “starting to look close to a done deal,” ING analysts wrote. The oil price spike has “upended the outlook for inflation and interest rates” globally, Reuters wrote: Indonesia last week raised rates for the first time in two years, British policymakers have warned they could take a similar step, and US Federal Reserve officials are discussing the possibility of rate hikes.

Why the US isn’t winning wars

The US’ approach to war is deeply flawed, as most recently illustrated by its strategic blunders in Iran, two prominent analysts argued. Despite having the world’s strongest military, the US keeps losing the conflicts it starts, because Washington believes “overwhelming force can compensate for asymmetric motivation,” Ivo Daalder, a former US ambassador to NATO, wrote in Politico. The US’ strategy in Iran — “performative diplomacy” followed by a bombing campaign — is the “most radical manifestation” of this thinking. Relying on pure firepower with the hopes of coercing Tehran into compliance has led Washington into a “dead end,” a British academic argued in Foreign Affairs. “America may have the force, but the other side has the will,” Daalder noted.

Russia tells banks to shoot down drones

Russia authorized its central bank and other financial institutions to shoot down drones, as the country’s cities and infrastructure increasingly come under attack from Ukraine. A central bank branch in Russian-annexed Crimea was struck by a rocket Wednesday; a local official accused Ukraine of trying to destabilize Russia’s financial system. Ukraine has stepped up attacks on targets deep within Russian territory, including oil and military facilities. Moscow scaled back its recent Victory Day celebrations, citing security threats. Kyiv is approaching a “turning point” in the war, and has six months to make battlefield gains to increase its leverage in peace talks, a senior Ukrainian commander told Reuters.

Musk floats SpaceX, Tesla merger

Elon Musk has reportedly discussed merging SpaceX with Tesla, a deal that would give the world’s richest person even more control over his sprawling tech empire. Musk floated the idea just weeks before SpaceX, the satellite and rocket giant, is expected to launch its massive IPO on the Nasdaq, CNBC reported. One early SpaceX investor said the merger was “only a matter of when,” not if. Such a deal would mark the fourth time Musk has overseen a billion-dollar transaction between companies he controls, Electrek wrote: Earlier this year, SpaceX acquired Musk’s AI firm, xAI. But in many ways, the combination makes sense, an expert said, given that both SpaceX and Tesla are increasingly focused on AI, and already share resources and personnel.

Tech firms deepen Asia chip push

Tech giants are deepening their investments in Asia’s chip sector as demand for compute explodes. Nvidia is planning to invest $150 billion annually in Taiwan; CEO Jensen Huang called the island the “epicenter” of the AI revolution, days after challenger AMD announced a $10 billion investment there. And Samsung is planning to build a $1.5 billion semiconductor testing plant in Vietnam. Asian chip stocks have soared in recent months amid a global shortage for the technology that underpins the AI boom. But that crunch — set to last until at least the end of next year — is hurting other industries in Asia: China’s world-beating EV sector is feeling cost pressures from the memory chip shortage.

China balances AI push with job fears

China is trying to balance its society-wide AI push with mounting concerns over the tech’s disruptive socioeconomic effects. Beijing’s vice premier was “shaken” after China’s largest employers warned him last year of AI’s potential impact on their workforces, The Wall Street Journal reported. While policymakers have touted AI’s “job creation” effect, analysts expect China’s strained labor market to worsen in coming months, and the government is worried about the public worrying about losing jobs to AI, a China tech expert noted. Beijing warned companies not to eliminate roles because of AI, and a court recently ruled that firms cannot lay off employees on AI grounds. “A world anxious about an AI jobs apocalypse will be watching the Chinese experiment,” The Economist wrote.

On Thursday, June 11, Emma Bloomberg, Founder & CEO of Murmuration, will join Semafor on stage for The Future of Philanthropy.

For generations, philanthropy has backed ideas ahead of their time — from early childhood education to breakthrough research that later became public goods. As the United States approaches its 250th anniversary, the sector faces a pivotal moment: under increasing political scrutiny, yet more vital than ever to expanding opportunity and driving innovation.

Semafor will host on-the-record conversations on how philanthropy can scale solutions for workforce mobility and community resilience. Featuring: Tim Shriver, Chairman of Special Olympics and CEO & Co-Founder, UNITE; Rep. Blake Moore (R-UT), Bipartisan Philanthropy Caucus; Marla Blow, President & Chief Operating Officer, Skoll Foundation; Richard Buery, Jr., CEO, Robin Hood Foundation; Asha Curran, CEO, GivingTuesday; Steve Preston, President & CEO, Goodwill Industries International; and Stacey D. Stewart, CEO, MADD and former CEO, March of Dimes.

June 11 | Washington, DC | Request Invite

AI agents can control stock trades

Financial platform Robinhood on Wednesday unveiled new tools that allow AI agents to trade stocks on a user’s behalf, in a first-of-its-kind move for retail investing. The tech allows anyone with a Robinhood account to compete more closely with institutional investors that have long deployed automated systems and, more recently, have invested in AI to do that work. Financial tech companies, including Robinhood, are also allowing agents to make credit card purchases on a user’s behalf. “There are clear red flags here,” Semafor’s Tech newsletter wrote. “But tech CEOs have long promised that agents will make the lives of consumers, not just businesses, easier. This is a chance to see that promise in action.”