US and Saudi Cozying Up
Thursday, May 15th, 2025
World Events — US Saudi Defense Deal
Bloomberg
The Trump administration’s announcement of a $142 billion defense deal with Saudi Arabia-touted as the largest in US history-has sparked widespread skepticism and raised more questions than answers, as the agreement lacks details on specific systems, contract terms, and delivery timelines. Critics note that the deal’s headline figure far exceeds Saudi Arabia’s entire annual defense budget of $78 billion, casting doubt on how much of the package is genuinely new versus a repackaging of previous agreements or non-binding commitments. While the deal underscores the strategic depth of the US-Saudi partnership and is expected to yield real gains in areas like missile defense and military modernization, analysts caution that the scale and complexity of the proposed purchases may be more about optics and reassurance than immediate, concrete outcomes-especially given Saudi Arabia’s fiscal constraints and ongoing efforts to diversify its economy. The absence of specifics has also fueled concerns about potential impacts on Israel’s qualitative military edge, though experts say such risks remain unclear without further details.
Tech — Meta’s Anti-trust Troubles
The Verge
In the ongoing antitrust trial against Meta, the U.S. Federal Trade Commission (FTC) argues that Meta unlawfully maintains a monopoly over “personal social networking services” (PSNs)-platforms primarily designed for users to connect and share updates with friends and family-by acquiring Instagram and WhatsApp to eliminate competition. The FTC’s case hinges on defining this market narrowly, asserting that only Facebook, Instagram, Snapchat, and the lesser-known MeWe genuinely serve this need, while platforms like TikTok, YouTube, and X are geared more toward entertainment or interest-based content and thus are not direct substitutes. Meta, in contrast, contends that social media competition is broader, emphasizing that all platforms vie for users’ attention and that rivals like TikTok have significantly eroded its dominance, as shown by user migration during TikTok’s temporary U.S. suspension. Testimonies from executives and internal Meta documents reveal that connecting with friends and family remains a core, if shrinking, function of Facebook and Instagram, yet the FTC maintains this niche is still significant enough for Meta to wield monopoly power. The trial’s outcome may ultimately depend on whether the judge accepts the FTC’s narrow market definition and agrees that Meta’s acquisitions stifled competition, potentially forcing Meta to divest Instagram and WhatsApp if the FTC prevails.
Business — Boeing Coming Back From Crisis
Bloomberg
Qatar Airways has signed a record-breaking deal to purchase up to 210 Boeing widebody aircraft-including 130 787 Dreamliners and 30 777X jets, with options for an additional 50 planes-in an agreement valued at $96 billion, marking the largest order in Boeing’s history. The signing, witnessed by President Donald Trump and Qatar’s Emir in Doha, comes as a major boost for Boeing following a turbulent period marked by safety incidents, production halts, and financial losses, and is expected to help sustain approximately 154,000 U.S. jobs annually during production. The deal also includes over 400 GE Aerospace engines, representing the engine maker’s largest-ever widebody order, and is part of a broader package of U.S.-Qatar economic agreements exceeding $240 billion. This landmark order not only cements Qatar’s relationship with Boeing and the U.S., but also signals a strategic shift in the region’s aviation landscape as Gulf carriers race to modernize their fleets amid surging demand for long-haul travel.
Health — What Is Your Stress Personality
The Daily Sparks
Typically, currency values track differences in interest rates between countries-for example, when the Federal Reserve keeps rates higher to combat inflation, the U.S. dollar tends to strengthen. However, since the onset of the trade war, this link has weakened, and the dollar’s movements are now influenced by other factors such as tariffs, fiscal policy, and geopolitical risks, rather than just interest rate differentials. Recent analysis suggests that, based on interest rate spreads alone, EUR/USD should be trading much closer to parity, implying the dollar is currently about 10% weaker than what those differentials would predict.
Song Rec — Some Protector (Role Model)
Quote of the Day
"Change your life today. Don't gamble on the future, act now, without delay." - Simone de Beauvoir