Trump looks for Saudi deals

Good morning. Yesterday China, today Saudi Arabia. The Middle East is the latest focus for Donald Trump's frenetic deal-making. Samsung beats Apple to market with a slimmed-down phone. And Kim Kardashian takes the stand in Paris. Listen to the day's top stories.

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The focus of Donald Trump's latest bout of frenzied deal-making has shifted to the Middle East, with the president arriving in Saudi Arabia on his first major overseas trip since taking office. Dozens of agreements are expected, covering everything from AI and chips, to rare metals and transportation. But hopes for as much as $1 trillion in Saudi investment commitments might clash with another costly ambition—transforming the kingdom's own economy.

Trump raised the possibility he may fly to Turkey on Thursday to join a potential meeting between Volodymyr Zelenskiy and Vladimir Putin. European leaders are waiting for the meeting (if indeed it happens) before pushing the US to announce fresh sanctions on Moscow. And what's the common thread behind all the diplomatic activity in recent days? According to one analyst, it's "a desire for a telegenic deal, almost irrespective of what the terms of the deal are."

Boeing's China Deliveries to Resume

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Markets caught their breath after yesterday's powerful rally, with stock futures slightly lower and European shares only modestly higher. Goldman strategists lifted their targets for US stocks, predicting the S&P 500 will hit 6,500 in the next 12 months, implying a further gain of about 11%. Citadel founder Ken Griffin said it would have been smart to sit out the recent market turmoil in cash.

An attendee takes a photograph of a Samsung Galaxy S25 Edge smartphone during a launch event in South Korea, on Tuesday. Photographer: SeongJoon Cho/Bloomberg

Samsung beat Apple to market, rolling out a slimmed-down Galaxy S25 Edge smartphone. It goes on sale in the US on May 30, months ahead of Apple's iPhone 17. Meanwhile, there's another signal that crypto is going mainstream with news that Coinbase is being added to the S&P 500—sending the shares sharply higher in premarket trading. And in more tech news, Google is facing at least $13 billion in damage claims from dozens of price comparison websites across the European Union.

Bloomberg Tech: Join top tech decisionmakers and influencers on June 4-5 in San Francisco. Decode technology's evolving role across business, culture and healthcare as we discuss the advances transforming industries and how they impact society. Learn more.

The temporary US-China trade deal may reduce the risk of a full-blown recession later this year, according to forecasters, but it won't prevent an economic slowdown. And the burst of interest in US jobs following the pandemic has all but vanished, a shift that threatens to exacerbate labor shortages in industries such as health care.

Deep Dive: The House GOP Tax Bill

The Capitol in Washington on May 10. Photographer: Aaron Schwartz/Bloomberg

Republicans injected some populist elements to their latest draft plan for Trump's tax cuts, while failing to silence criticism that it ultimately puts the rich ahead.

The House Ways and Means Committee released its draft measures ahead of a planned debate on the tax-writing panel later today.
It does much more than just extend Trump's 2017 reductions, many of which expire at year-end. Benefits for middle- and lower-income workers include an end to taxes on overtime work and on tips. There's also a benefit for car buyers, and one for senior citizens.
To help pay for the $4 trillion package, there's at least $1.5 trillion in spending reductions, but also some populist revenue raisers. Elite universities, such as Harvard and Yale, face higher taxes, as do private foundations.
SALT, tips and auto loans: here's a guide to the House GOP tax bill.

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Before You Go

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Kim Kardashian is expected to take the stand today against the 10 men accused of orchestrating the 2016 robbery that left her locked in a marble bathroom while masked assailants made off with more than $6 million in jewels. She's set to speak about the trauma that redefined the risks of celebrity in the age of social media.

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