—— Amazon Orders Corporate Workers to Relocate Closer to Teams; US Officials Prepare for Potential Strike on Iran as Conflict Intensifies; Powell Signals Inflation Risks from Tariffs as Fed Holds Rates Steady; US NTSB Urges Action on Boeing 737 Max Engine Fault That Can Cause Cabin Smoke; SpaceX Starship Explodes During Test in Texas; Trump’s Tariffs to Raise US Car Prices by Nearly $2,000 Per Vehicle

1. Amazon Orders Corporate Workers to Relocate Closer to Teams

Amazon.com Inc. is directing some corporate employees to relocate closer to their teams and managers, unsettling a workforce already on edge over looming job cuts and warnings that artificial intelligence will reduce staffing levels in coming years.

The relocation orders apply to cities such as Seattle, Arlington, Virginia, and Washington, DC, according to people familiar with the matter. In many cases, employees are being asked to move across the country. Amazon is mostly delivering the message in one-on-one conversations and internal town halls, rather than companywide announcements.

One source said the policy is expected to impact thousands of employees across various departments. Mid-level workers with families and partners in established careers are reportedly especially resistant to relocating, citing concerns about Amazon’s broader cost-cutting efforts.

An Amazon spokesperson stated, “For more than a year now, some teams have been working to bring their teammates closer together to help them be as effective as possible, but there isn’t a one-size-fits all approach and there hasn’t been a change in our approach as a company.”

Internal Slack documents reviewed by Bloomberg show employees discussing the mandate. One employee said their manager gave the team 30 days to decide whether to relocate, followed by 60 days to complete the move. Employees who resign instead of relocating reportedly won’t receive severance pay.

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Source: Bloomberg – Amazon Orders Employees to Relocate to Seattle and Other Hubs

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2. US Officials Prepare for Potential Strike on Iran as Conflict Intensifies

Senior US officials are preparing for the possibility of a military strike on Iran in the coming days, according to people familiar with the matter, as hostilities between Israel and the Islamic Republic escalate.

Some officials pointed to potential plans for a strike this weekend, with top leaders at several federal agencies beginning to ready themselves for possible action, one person said.

On Thursday, a missile from Iran struck Israel’s Soroka Medical Center — the first direct hit on a hospital since the war began nearly a week ago. Israel’s Health Ministry said only minor injuries were reported, as the affected department had been evacuated hours earlier.

Prime Minister Benjamin Netanyahu vowed that Israel would make the Iranian government pay “the full price” for the attack.

President Donald Trump has for days openly discussed the possibility of the US joining Israeli strikes, a move that would dramatically escalate the regional conflict. The situation remains fluid, and decisions could change, said the people familiar with internal discussions.

Israeli Defense Minister Israel Katz said the country would escalate strikes on Iran’s strategic and government targets “to remove threats to the State of Israel and undermine the Iranian regime.”

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Source: Bloomberg – US Officials Plan for Possible Strike on Iran in Coming Days

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3. Powell Signals Inflation Risks from Tariffs as Fed Holds Rates Steady

There are still many unknowns about the economic outlook and the future path of interest rates, but Federal Reserve Chair Jerome Powell made one thing clear on Wednesday: higher consumer prices are likely coming.

Fed policymakers unanimously voted to hold interest rates steady for a fourth consecutive meeting, as they await more clarity on whether the latest tariffs will have a temporary or lasting impact on inflation.

“It’s still unclear how much of the tariff burden will fall on consumers,” Powell said at a press conference. “But we do know that ultimately, the cost has to be paid, and some of it will be passed through to the end consumer.”

Powell added that the Fed expects to get more data over the summer that will help assess how tariffs are influencing price pressures — and that policymakers prefer to wait for that clarity before making any premature moves.

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Source: Bloomberg – Fed’s Powell Says Rate Path Unclear But Tariff Impact Is Coming

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4. US NTSB Urges Action on Boeing 737 Max Engine Fault That Can Cause Cabin Smoke

US safety investigators have issued an urgent recommendation to address an engine fault on Boeing Co.’s 737 Max aircraft that can lead to smoke filling the cockpit or cabin.

The National Transportation Safety Board (NTSB) issued the call after investigating two recent incidents in which birds struck engines on Southwest Airlines-operated 737 Max jets, causing significant smoke inside the aircraft. Both planes were powered by Leap-1B engines manufactured by CFM International, a joint venture between GE Aerospace and Safran SA.

The NTSB traced the smoke to a malfunction in a key safety feature of the engines and is now urging the Federal Aviation Administration (FAA) to make sure flight crews are properly alerted. The agency also called on the FAA to highlight changes Boeing has made to flight manuals with revised pilot response protocols for such incidents.

The board further requested that the FAA, along with regulators in the EU and China, assess whether the same defect could be present in other versions of the Leap engine used on aircraft made by Airbus SE and Commercial Aircraft Corp. of China (Comac).

Once software modifications developed by Boeing and CFM are completed, the NTSB recommended that regulators mandate their adoption across affected fleets. Given that the Leap engine powers the entire 737 Max series and is the leading option for Airbus’s A320neo family, the issue has global implications for the world’s most widely used narrow-body jets.

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Source: Bloomberg – NTSB Warns About Boeing 737 Max Engine Issue That Could Lead to Smoke in Cabin

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5. SpaceX Starship Explodes During Test in Texas

A SpaceX Starship rocket exploded on a test stand in Texas, marking another setback for Elon Musk’s space ambitions, including future missions to Mars.

Video footage from late Wednesday showed the rocket engulfed in flames while standing upright on the test pad. Massive plumes of fire and smoke billowed into the night sky, and local media reported that the blast shook windows and rattled dishes in the area.

The incident occurred during what appeared to be a routine “static fire test,” in which the rocket’s engines are fired while the vehicle remains secured to the ground — a crucial step before an actual launch to validate engine and system performance.

Musk wrote on X that a specialized nitrogen bottle may have failed. “If further investigation confirms that this is what happened, it is the first time ever for this design,” he noted.

No injuries were reported and SpaceX said there is no risk to local residents. The company called the event “a major anomaly” as Starship was preparing for its 10th flight test.

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Source: Bloomberg – SpaceX’s Starship Explodes on Test Stand in Yet Another Setback

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6. Trump’s Tariffs to Raise US Car Prices by Nearly $2,000 Per Vehicle

Car buyers in the US are likely to absorb most of the $30 billion in additional costs stemming from President Donald Trump’s tariffs, with vehicle prices expected to rise by nearly $2,000 on average, according to consulting firm AlixPartners.

In its annual global automotive outlook, the firm estimates that automakers will pass on roughly 80% of the tariff costs to consumers — translating to an increase of $1,760 per vehicle. “These tariffs bring a big wall of cost,” said Mark Wakefield, AlixPartners’ global auto market lead. “We see consumers taking the majority of the hit.”

The report also warned that the Trump administration’s anti-EV stance risks sidelining US automakers in the fast-growing global electric vehicle market.

General Motors Co. and Ford Motor Co. have already flagged tariff impacts of $5 billion and $2.5 billion, respectively, this year. Both companies said they plan to offset some of the costs through price hikes.

Wakefield noted that the higher vehicle prices could result in 1 million fewer cars sold in the US over the next three years. However, AlixPartners still expects US auto sales to rebound to 17 million units by 2030 — 1 million more than last year — as the tariff effects ease over time.

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Source: Bloomberg – Auto Tariffs Seen Hiking Car Prices by Nearly $2,000 Per Vehicle

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7. Nvidia posts 69% revenue surge

Nvidia reported a 69% year-on-year jump in revenue to $44.1 billion for the quarter ending April 27, surpassing Wall Street’s forecast of $43.3 billion, even as it absorbs a major revenue hit from US export restrictions targeting China.

The chipmaker, central to the global AI infrastructure boom, expects revenue of about $45 billion for the current quarter, plus or minus 2%. That range puts its guidance slightly below the Bloomberg consensus estimate of $45.5 billion. Nvidia shares rose 5% in early Thursday trading.

The company is navigating the fallout from President Donald Trump’s renewed trade tensions with China, including export controls introduced in April that barred Nvidia from selling its AI chips specifically tailored for the Chinese market. Nvidia said those curbs led to a $4.5 billion charge last quarter and an additional $2.5 billion in missed sales. The company also expects to lose roughly $8 billion in Chinese revenue this quarter as a result.

CEO Jensen Huang said demand for Nvidia products remains “incredibly strong,” but he reiterated criticism of the US government’s export control measures on a call with analysts.

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Source: Financial Times – Nvidia quarterly revenue surges nearly 70% despite China curbs

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