Today's News You Need2Know

• The headache that is Pete Hegseth

• Big week ahead for tech’s magnificent seven

• Inside the Google antitrust case

• Trump’s approval rating hits 80-year low

• Deliveroo surges on DoorDash takeover offer

• Chinese manufacturers shifting focus

Companies mentioned in today’s newsletter

$AMZN ( ▼ 0.68% ) , $MSFT ( ▼ 0.18% ) , $META ( ▲ 0.45% ) , $AAPL ( ▲ 0.41% ) , $GOOGL ( ▼ 0.83% ) , $ROO.L ( 0.0% ) , $DASH ( ▲ 0.06% )  

FROM OUR D.C. CORRESPONDENT

The headache that is Pete Hegseth

Defense Secretary Pete Hegseth has given President Trump a lot of headaches lately. He’s stirred controversy after sharing details of military attacks over Signal — some allegedly with family members. Much of his top staff has been fired amid accusations they are leaking to the press. They deny this but haven’t been shy about sharing their anger over the firings with reporters, saying there is turmoil at the Pentagon.

Trump, however, is standing behind Hegseth, a veteran and former Fox News host. But Trump’s comments about his Pentagon chief in a recent interview with The Atlantic — yes, the publication that brought his Signal chat’s to light — caught my attention.

“I think he’s gonna get it together,” Trump said in an April 24 interview that was published yesterday. “I had a talk with him, a positive talk, but I had a talk with him.”

That sounds like a president who isn’t happy with the controversies at the Pentagon even as he expresses support. While nothing suggests Trump is going to push Hegseth aside any time soon, reading the interview left me scratching my head. I decided to press the White House on the president’s half-hearted defense of Hegseth.

During yesterday’s press briefing, I asked White House press secretary Karoline Leavitt directly: Does Trump think Hegseth has it together right now? Leavitt, who speaks on behalf of the president, responded that Trump “absolutely has confidence in the secretary’s ability to lead the Pentagon. It’s why he nominated him for this position. It’s why the Senate voted to confirm him in this position.”

It remains a wait-and-see type of situation. And it comes as political headwinds intensify at the 100-day mark for the president. Recent polls show Trump’s actions and policies are starting to trouble more and more voters.

Trump is resistant to looking like he’s giving in to the media, to Democrats or to anyone else who he views as an adversary. That’s helping Hegseth stay in his job for now. But that could change quickly if, in the president’s view, he doesn’t “get it together.”

—Margaret Chadbourn

Big week ahead for tech’s magnificent seven

This week, Wall Street’s attention turns to the powerhouse technology stocks collectively known as the “Magnificent Seven.” Amazon $AMZN ( ▼ 0.68% ) , Microsoft $MSFT ( ▼ 0.18% ) , Meta $META ( ▲ 0.45% ) and Apple $AAPL ( ▲ 0.41% ) are gearing up to release their much-anticipated quarterly earnings reports — a critical moment that could shape the market’s trajectory. These tech giants wield outsized influence, and even minor fluctuations in their performance can ripple across the financial landscape.

Early signals suggest cautious sentiment, as shares of Amazon fell 1.6%, Microsoft dipped 0.8%, Meta shed 0.2%, and Apple slipped 0.1% yesterday ahead of their earnings releases. Investors are closely watching these results, not only for profit metrics but also for broader indications of how tech companies are navigating uncertain economic conditions. Stay tuned, but not necessarily to your 401(k)!

Inside the Google antitrust case

Google $GOOGL ( ▼ 0.83% ) is facing potential "massive changes to the structure of its business and the ways that it does business," according to Axios tech and policy reporter Ashley Gold, who sat down with us to discuss the antitrust ruling against the firm.

The core issue is Google's monopoly on Internet search and the browser market. Google's popularity is bolstered by "these agreements that Google has with device makers like Samsung, and other browsers like Mozilla Firefox that use the Google search engine and also on Apple devices." This "paid ecosystem of keeping Google products locked into the devices and the browsers we use every day" is what makes Google a monopoly.

Interestingly, the lawsuit against the firm a bipartisan effort. Gold points out, "It was brought in 2020 under President Donald Trump's, then President Donald Trump's first administration. This is very much a bipartisan effort that has pretty much stayed consistent from Trump one to Biden to Trump two." Currently, the Justice Department and Google are in court discussing the "remedies for the case." Gold notes, "They've already been found to be a monopoly. Right now they're just sorting out in court what they're going to do about it."

So, what does this mean for consumers? Gold says, "You will have more choices. You will be able to make something else like DuckDuckGo your browser from the get-go." Currently, Google Chrome is often the default browser for PCs, limiting people’s incentive to switch. Ultimately, Gold wonders, "Are consumers paying attention? Do people who use Google Chrome every day... think it's a problem?"

Like, a bit? Let us know in today’s poll 👇🏻

Today on the ‘gram: Is it a boat or a plane?

Post of the day: @harrisonkrank

Trump’s approval rating hits 80-year low

President Donald Trump holds the record for the lowest approval rating of any U.S. president at the 100-day mark in the past 80 years, according to an ABC News/Washington Post/Ipsos poll. With only 39% approval, a majority of Americans disapproved of his policies, citing concerns over economic mismanagement, inflation, and potential overreach of presidential powers. Notably, 72% feared his economic policies would lead to a recession, while 73% viewed the economy as struggling. Despite these concerns, Trump retained significant support among his core voter base.

Should you check your 401(k) today?

👎🏻

No.

Deliveroo surges on DoorDash takeover offer

Shares of London-based food delivery company Deliveroo $ROO.L ( 0.0% ) hit a three-year high on Monday following news of a $3.6 billion proposed takeover offer from U.S. delivery giant DoorDash $DASH ( ▲ 0.06% ) . The offer, announced after European markets closed last Friday, has fueled conversations about DoorDash’s ambitions to expand its global footprint.

Deliveroo, founded in 2013 and operational in 10 countries, including the U.K., France, and Italy, reported its first annual profit last year, further increasing its appeal as an acquisition target. The deal would mark a major strategic step for DoorDash, traditionally focused on markets like the U.S., Canada, Australia, and New Zealand. It could accelerate DoorDash’s European expansion, unlocking a larger addressable market and yielding long-term cash flow benefits.

Deliveroo’s stock surged by 17% on the London Stock Exchange, reflecting investor optimism about the potential tie-up.

Quote of the Day: Karoline Leavitt

Chinese manufacturers shifting focus

China’s manufacturing sector is facing significant disruption over U.S. tariffs on Chinese goods, forcing factories to halt production and explore new strategies to offset lost export revenue. Textiles, sporting goods, and low-cost consumer items are among the hardest-hit industries, with many factories furloughing workers and idling production lines. Goldman Sachs estimates that approximately 10 to 20 million Chinese workers are directly tied to U.S. export businesses, making the impact of these tariffs particularly severe. Analysts say the repercussions of the tariffs may outweigh even the economic strain caused by the COVID-19 pandemic.

Amid canceled U.S. orders, some manufacturers are looking toward alternative revenue streams. For example, some are aiming to sell more products directly to Chinese customers, with Chinese tech giants stepping in with subsidies and platforms to assist exporters transitioning to more domestic sales.

Beyond domestic markets, some businesses are pivoting toward Europe, Latin America, and Southeast Asia to sustain operations. Nevertheless Chinese exporters now face mounting challenges, including adapting products designed for U.S. consumers to local markets and navigating rising competition. While some companies are diversifying production to regions like India and Southeast Asia, others remain hopeful that reductions in tariffs might eventually ease the pressure.

Poll of the Day: Let me Google that for you

Results from Monday’s poll: Tax the rich!

We asked: Raising the top tax rate to 40% on incomes over $1 million is...

And you answered:

🟩🟩🟩🟩🟩🟩 a great idea and I'm glad Trump is considering it, however loosely (838 or 93%)

⬜️⬜️⬜️⬜️⬜️⬜️ a bad idea and I'm horrified Trump is considering it, however loosely (55 votes or 7 percent)

893 Votes — via @beehiiv polls