Hello, my most beloved subscribers!

If you want to de-escalate tensions there’s nothing better than meeting on famously neutral ground like Switzerland, right? Although how neutral are the Swiss, really? Meanwhile, Weight Watchers is declaring bankruptcy (and we think Ozempic is the reason), we take a tour around Google’s new AI-powered Notebook product, and we got a hot-take economic analysis on Trump’s first 100 days from the Wall Street Journal. The quick version, let’s say, is that they have not been great, according to the paper’s chief economics commentator.

Table of Contents

• U.S., China to hold trade talks in Switzerland

• Weight Watchers bust: Ozempic ate their lunch, but …

• GoDaddy IPO’d a decade ago, thriving on repeat bus …

• Inside Google’s new AI-Powered NotebookLM

• The WSJ is worried about the future under Trump

Save me a truffle, at least?

—Matt Davis, Need2Know Chedditor

P.S. Did you know we offer paid subscriptions that mean you never have to see an ad in this newsletter?

Companies mentioned in today’s newsletter

$WW ( ▼ 7.3% )  $NVO ( ▲ 4.12% )  $GOOGL ( ▲ 0.21% )  $AAPL ( ▼ 1.23% )  $GDDY ( ▼ 0.17% )  

U.S., China to hold trade talks in Switzerland

What a glorious spectacle the U.S.-China trade war has become! Nothing screams "diplomatic finesse" louder than cranking tariffs up to triple-digit levels and then being shocked when the other side is upset. President Trump’s strategy of economic brinkmanship — otherwise known as “let’s see who blinks first” — has now finally led us to a meeting between top officials in Switzerland this weekend.

Treasury Secretary Scott Bessent and trade representative Jamieson “My name sounds serious so I must be” Greer are off to Geneva to chat with their Chinese counterparts, who, presumably, are equally thrilled about the chance to negotiate their way out of this thing. China, naturally, has called these tariffs “illegal and unreasonable,” and the U.S. has said a lot of nasty things about China’s role in global trade.

A spokesman for the Chinese embassy in the U.S. said on Wednesday that the trade negotiations were requested by the U.S.

“Recently, the U.S. said repeatedly it wants to negotiate with China,” said Lin Jian.

Meanwhile, businesses on both sides of the Pacific are doing a fantastic job of showcasing capitalism’s resilience — by buckling under the weight of crushing tariffs. But hey, it’s not all doom and gloom! Trump assures us that China is “eager to meet,” although their enthusiasm likely stems more from watching entire industries collapse than genuine friendship. Will these talks lead to real progress? Or will they just fuel more posturing? Let us know what you think in today’s poll of the day.

Weight Watchers bust: Ozempic ate their lunch, but only a little bit because Ozempic suppresses your appetite, but it was still enough to bankrupt them

WeightWatchers $WW ( ▼ 7.3% ) , the 62-year-old bastion of dieting discipline, has officially bowed to the new kings of weight loss — injectable medications like Ozempic and Wegovy (both made by Novo Nordisk $NVO ( ▲ 4.12% ) ). Filing for Chapter 11 bankruptcy, the company is apparently seeking to “reduce $1 billion in debt” and “pivot” to become a telehealth provider.

Nothing quite says "thriving business" like scrambling to jump on the latest trend while bleeding members, revenue, and Oprah Winfrey. She quit the board last year, donating her 10% stake in the company to the African American History Museum. Presumably they’ve been delighted with the shares’ performance since, slimming down more than 75%.

CEO Tara Comonte assures us that all 3.4 million remaining members of WeightWatchers have nothing to worry about. The pivot to telehealth includes prescribing weight-loss drugs, presumably for those unimpressed by decades of group chats about kale. WeightWatchers promises to emerge stronger and more "innovative" in just 40 days.

Today on the ‘gram: Return of Return of the Jedi

Post of the day: $GOOGL ( ▲ 0.21% ) down on $AAPL ( ▼ 1.23% ) AI search news

GoDaddy IPO’d a decade ago, thriving on repeat business

GoDaddy $GDDY ( ▼ 0.17% ) recently celebrated its 10th anniversary as a publicly listed company on the New York Stock Exchange, marking a decade of growth and evolution. CFO Mark McCaffrey joined us on the trading floor, highlighting the company’s journey from a domain provider to a one-stop shop for micro-businesses.

"You think about 10 years ago, it was about bringing people to the Internet," said McCaffrey. Today, GoDaddy serves over 20 million customers, with revenues exceeding $4 billion. Their focus? "Defending the small businesses in this country all over the world," ensuring they can compete with larger players by using AI tools effectively.

McCaffrey emphasized GoDaddy's strong Q1 performance, driven by their strategy of attracting "high-intent customers" who need various online services. Their model thrives on repeat business, with a high retention rate especially after a customer adopts a second product. "The compounding free cash flow element of this is just tremendous," McCaffrey noted, allowing for innovation and marketing improvements.

Despite stock market fluctuations, GoDaddy remains confident. McCaffrey attributes this to the "resilience of our customers" and the "durability of our model."

Should you check your 401(k) today?

👎️ 

No.

Inside Google’s new AI-Powered NotebookLM

Google $GOOGL ( ▲ 0.21% ) gave us a tour of their new AI tool, NotebookLM, designed to revolutionize how we process and understand information. NotebookLM allows users to upload various source materials, such as documents and meeting notes, and then it helps to "figure out the connections between the two," as Justin Burr from Google explained. The tool excels at generating summaries, FAQs, and action items, simplifying complex information.

One of NotebookLM's standout features is its commitment to source verification. "Notebook is grounded in the source information that you give it," Burr emphasized. When the AI generates key themes or answers questions, it provides "inline citations" to show exactly where that information came from in the uploaded documents. This ensures accuracy and builds trust, crucial for researchers and students alike. It also cuts down on so-called hallucinations, a major issue for other AI tools.

Furthermore, NotebookLM can make study guides, mind maps, and even audio overviews, based on the information it’s processing. That makes learning and research more engaging and efficient. Whether you're diving into dinosaur facts or synthesizing complex reports, NotebookLM offers a new way to explore and understand information.

Quote of the Day: Who blinked first?

The WSJ is worried about the future under Trump

The economic landscape under President Trump's second first 100 days is a complex and often contradictory picture, according to Greg Ip, chief economics commentator for the Wall Street Journal. While hard data, such as consumer spending and payroll growth, show an economy that "looks a lot like the economy under Biden, almost no distinction whatsoever," the softer data paints a picture of anxiety and uncertainty, he said.

"Confidence surveys show that people are very worried about the future. Businesses are extremely concerned about the impact on them of higher prices and so forth," he said.

Ip pointed out the immediate impact of tariff policies, noting, "We've seen a very big surge in imports. That seems to be companies that are trying to get ahead of Trump's tariffs." He suggested that the impact of tariffs on actual consumer behavior will become clearer as "we're going to have to see more material impact on actual prices."

Small and medium-sized businesses are particularly vulnerable. "You do see surveys of small businesses was a great deal of concern and we hear anecdotally companies tell us, ’I need to, like, find a ton of money to, like, pay these tariffs up front when I bring my goods in through the port,’ and those cash flow pressures are very real," Ip said. He contrasted this with larger companies that "obviously have much more resources ability to turn the lines of credit and other things." However, he cautioned that the stress on small businesses has not yet translated to widespread hiring freezes, but "the time to look for that would be the next three or four weeks as these tariffs start to bite."

When discussing the metrics he follows most closely, Ip highlighted the "weekly data on how many people are making a first claim for unemployment insurance" and "looking at the stock market" as key indicators. Personally I think he should just check this newsletter and look for our thumb in the air about whether you should check your 401(k) today, but he’s the expert. Right?

Poll of the Day: Swiss Missed the boat?

Poll Results: You like freedom of speech

We asked: Should the Washington Post have run Ann Telnaes' cartoon?

You answered:

🟩🟩🟩🟩🟩🟩 Yes. And I'm glad she won the Pulitzer for quitting over it. (913)

⬜️⬜️⬜️⬜️⬜️⬜️ No. And the Pulitzer Board are a bunch of woke morons. (42)

955 Votes — via @beehiiv polls