Latest Sectors News

Meta commits to deploying 1 GW of custom in-house MTIA chips codesigned with Broadcom in sweeping new multiyear deal announced Tuesday View More

In this articleAMZNGOOGLAVGOMETAAMDNVDAFollow your favorite stocksCREATE FREE ACCOUNT Broadcom CEO Hock Tan.Lucas Jackson | Reuters Meta and Broadcom on Tuesday announced a sweeping deal that extends an existing partnership between the two companies for the design of Meta's custom in-house AI accelerators through 2029. At the same time, Meta said Broadcom's CEO, Hock Tan, told Meta last week that he has decided not to stand for reelection to Meta's board, according to a filing. Tan joined Meta's board in 2024.Meta has committed to an initial deployment of 1 gigawatt of its Training and Inference Accelerators according to a statement. The deal will eventually see Meta deploying multiple gigawatts of chips based on Broadcom technology.The MTIA chips will be the first AI silicon to use a 2 nanometer process, Broadcom said in its own statement."Meta is partnering with Broadcom across chip design, packaging, and networking to build out the massive computing foundation we need to deliver personal superintelligence to billions of people," Meta's co-founder and CEO, Mark Zuckerberg, was quoted as saying in the statement.Broadcom shares rose 3% in extended trading after the announcement. Meta stock was flat."Now, contrary to recent analyst reports, Meta's custom accelerator, MTIA roadmap is alive and well. We're shipping now and, in fact, for the next generation XPUs, we will scale to multiple gigawatts in 2027 and beyond," Tan said on Broadcom's March earnings call.Meta unveiled four new versions of its in-house MTIA chips in March. It first unveiled the custom silicon in 2023, following on the heels of similar chip programs at Google and Amazon.Hyperscalers are seeking alternatives to the costly, constrained graphics processing units from Nvidia and AMD, as they hustle to power AI data centers. They're making GPU alternatives called application-specific integrated circuits, or ASICs, that are smaller and cheaper than the general-purpose AI workhorse GPUs, but are limited to performing a narrower set of tasks.Google was first to the custom ASIC game, releasing its first Tensor Processing Unit in 2015. Amazon was next, with its first custom chip announced in 2018. While these tech giants incorporate their AI chips as part of their respective cloud computing platforms so customers can access them, Meta's MTIA chips are used entirely for internal purposes.The deal comes two weeks after Broadcom announced a long-term agreement with Google for producing its TPUs, and said Anthropic would access 3.5 gigawatts worth of the in-house Google chip.Broadcom shares are up 10% so far in 2026, while the S&P 500 index has gained about 2% over the same period.Tracey Travis, who last year retired from her position as Estée Lauder's finance chief, will leave Meta's board after taking a board seat in 2020, Meta said.Meta has made a flurry of deals since committing in January to spending up to $135 billion on AI this year as it tries to keep pace with its megacap peers as well as Anthropic and OpenAI.Meta's AI deals over the past couple months include commitments to deploy up to 6 gigawatts of AMD GPUs, millions of Nvidia chips and new custom chips made by chip architecture firm Arm Holdings.Meta has plans for 31 data centers, including 27 in the U.S. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Daniel Moreno-Gama allegedly threw a lit Molotov cocktail at the driveway gate of OpenAI CEO Sam Altman's home. View More

Pedestrians walk on Lombard Street past a driveway at the home of Sam Altman on Friday, April 10, 2026, in San Francisco. (Photo by Lea Suzuki/San Francisco Chronicle via Getty Images)Lea Suzuki | San Francisco Chronicle | Getty Images A lawyer representing the man accused of throwing a lit Molotov cocktail at the driveway gate of OpenAI CEO Sam Altman's home last week said Tuesday that he suffered from a mental-health crisis.Daniel Moreno-Gama, 20, was assigned a public defender team ahead of his hearing before Judge Kenneth Wine."Our defense team is just now beginning our investigation, and what's becoming clear is that Daniel's actions appear to have been driven by an acute mental health crisis," San Francisco Deputy Public Defender Diamond Solange Ward said in the courthouse hallway. Ward said Moreno-Gama has a history of autism and that the case is "clearly overcharged.""This case is a property crime at best," she said. "No one was injured, and there appears to be some damage to a gate."Moreno-Gama allegedly threatened to burn down OpenAI's headquarters last week because of his hatred for artificial intelligence technology.San Francisco District Attorney Brooke Jenkins dismissed the claim as grasping for straws and said the office has "no evidence of him having a mental health issue.""It wouldn't matter if this was a billionaire or CEO or any average San Franciscan," Jenkins said.Moreno-Gama, a Texas resident, was set to be arraigned on Tuesday in San Francisco Superior Court. His legal team asked to push the date until May 5, which the judge agreed to.Wearing an orange jumpsuit, Moreno-Gama looked solemn during the brief legal proceedings.He answered Wine's question about whether he agreed to continue his arraignment at a later day with a simple, "Yes."He was then quickly ushered out of the courtroom. Read more CNBC tech newsSuspect in attack at Altman's house aimed to kill OpenAI CEO, warned of humanity's extinction from AIOracle expands Bloom Energy deal days after receiving $400 million stock warrantIntel's stock hits 9-day winning streak, up 58% over that runOpenAI touts Amazon alliance in memo, says Microsoft has 'limited our ability' to reach clients Moreno-Gama is charged with attempted murder, attempted arson and exploding or igniting a destructive device with intent to murder.He is separately charged by federal prosecutors with attempted damage and destruction of property by means of explosives and possession of an unregistered firearm.San Francisco Police Department officers arrested Moreno-Gama on Friday and recovered a document in his possession that detailed his intentions, according to a complaint filed in San Francisco federal court on Monday. In the document, Moreno-Gama expressed his aim to kill Altman and warned of humanity's "impending extinction" from AI. He also listed the names and addresses of several additional AI executives, board members and investors, the complaint said.Altman addressed the attack on his home in a blog post on Friday, and said it has been an "extremely intense, chaotic, and high-pressure few years."He shared a photo of his family and called for de-escalation of "the rhetoric and tactics" within the AI industry."We deeply appreciate how quickly SFPD responded and the support from the city in helping keep our employees safe," OpenAI said in its statement on Friday. "The individual is in custody, and we're assisting law enforcement with their investigation."WATCH: OpenAI is chasing Anthropic right now, says Big Technology’s Alex Kantrowitz watch nowVIDEO4:2404:24OpenAI is chasing Anthropic right now, says Big Technology's Alex KantrowitzClosing Bell Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Eric Swalwell already faced a pending criminal investigation by the Manhattan DA's office over an allegation of sexual assault by another woman. View More

Lonna Drewes reacts during a press conference alleging U.S. Rep. Eric Swalwell (D-CA) sexually assaulted her alongside a photo of Drewes with Swalwell (R) on April 14, 2026 in Beverly Hills, California. Justin Sullivan | Getty Images A new accuser of Rep. Eric Swalwell on Tuesday tearfully said she believed the fallen Democratic lawmaker from California had drugged her before choking and raping her in a hotel room in that state in 2018.The woman, Lonna Drewes, spoke at a press conference in Los Angeles, where her high-powered attorney, Lisa Bloom, said she would be filing a police report detailing her allegations against Swalwell, a 2020 presidential contender who has been accused of sexual misconduct by several other women."He invited me to two public events. I knew he was married at the time and that his wife was pregnant," Drewes told reporters. "He was my friend. On the third occasion, I believe he drugged my drink. I only had one glass of wine." Read more CNBC politics coverageFed nominee Warsh filings detail vast wealth, far exceeding past chairsHouse Republican campaign arm touts tax cuts in new 2026 election adVance says ‘the ball is in Iran’s court’ to move peace talks further, as U.S. blockade takes effect "We were supposed to go to a political event, and he [Swalwell] said he needed to get paperwork from his hotel room," Drewes said."When I arrived at his hotel room, I was already incapacitated, and I couldn't move my arms or my body," Drewes said of the incident in West Hollywood."He raped me."And he choked me, and while he was choking me, I lost consciousness, and I thought I died," Drewes said. "I did not consent to any sexual activity."The press conference came several hours before Swalwell's resignation from Congress, which he had announced on Monday, became effective.A lawyer for Swalwell did not immediately respond to a request for comment on Drewes' allegations.Swalwell, 45, is already under criminal investigation by the Manhattan District Attorney's Office in New York City in connection with another alleged assault there.Swalwell, in recent public statements, has denied any criminal wrongdoing, even after copping to unspecified "mistakes" he said he had made.But the congressman, who has three children with his wife, on Sunday suspended his campaign for California governor, and a day later said he would give up his seat in the House of Representatives. A picture showing Lonna Drewes (L) and former US Representative Eric Swalwell, Democrat of California, is shown during a press conference where she described her claims about sexual misconduct by Swalwell in Beverly Hills, California, on April 14, 2026. Patrick T. Fallon | Afp | Getty Images Bloom said, "We will not rest until we get justice for Lonna.""I want to say something now directly to Mr. Swalwell: Your recent statement — that you are just not perfect, you are not a saint — is just blather and spin. Stop it," Bloom said."Your statement that this is all just a matter between you and your wife is laughable, if not for the fact that it is a slap in the face to the victims," the attorney said.In his resignation statement on Monday, Swalwell had said, "I am deeply sorry to my family, staff, and constituents for mistakes in judgment I've made in my past. I will fight the serious, false allegation made against me."However, I must take responsibility and ownership for the mistakes I did make," Swalwell said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

For young investors, the recent market volatility can be especially unsettling. Financial advisors have tips to help you through it. View More

Specker/vedfelt | Digitalvision | Getty Images Amid the U.S. war with Iran, some young investors have gotten their first taste of market volatility. "An early decline can make the market feel unusually dangerous when volatility is a normal part of long-term investing," said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City."It can be unsettling because they don't yet have the experience of living through prior downturns and recoveries," Boneparth said.Since the war in the Middle East began on Feb. 28, the S&P 500 has seen daily drops of more than 1.7% and daily gains higher than 2.5%, according to data from Morningstar Direct. Stocks have fared slightly better since the U.S announced a two-week ceasefire on April 7.Still, within the first month of the war, the S&P 500 shed more than 7%. An initial investment of $10,000 in the index on Feb. 28 would have dropped to around $9,260 by March 29, Morningstar Direct calculated. The S&P 500 has now wiped out its losses from the Iran war, pushing that investment to $10,026 as of Monday's close. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Those market swings may have an outsized impact on new investors, said Zach Teutsch, founder and managing partner at Values Added Financial, a wealth management firm in Washington, D.C."Our first experiences weigh heavily on us emotionally and in how we see the world," said Teutsch, a member of CNBC's Financial Advisor Council. "It's hard not to overlearn our first few lessons." Gen Z, those born between 1997 and 2012, started saving and investing at 19 on average, according to a 2024 Charles Schwab report. To compare, baby boomers began investing at an average age of 35. Expect 15 bear markets in your working years The latest volatility is nothing unusual, though. Indeed, young people can expect around 15 bear markets during their working years, said Cristina Guglielmetti, a CFP and the president of Future Perfect Planning, a wealth management firm in Brooklyn, New York. A bear market occurs when an index declines 20% or more from recent highs. In recent weeks, the Nasdaq and Russell 2000 entered correction territory — a decline of at least 10% — while the S&P 500 came close. All have since rebounded."Clients sometimes ask me if the market will crash, and I tell them that it's not a question of if, but when," Guglielmetti said. Read more CNBC personal finance coverageMarket volatility can 'weigh heavily' on Gen Z, advisor says — how to copeMore buyers pick 7-year car loans 'to make the numbers fit': expertTariff refunds unlikely to benefit consumers, CNBC CFO Council survey findsAverage tax refund is 11% higher, latest IRS filing data showsSocial Security 2027 cost-of-living adjustment estimate rises with gas pricesHere's the inflation breakdown for March 2026 — in one chartHow 'married filing separately' status could affect Trump tax breaks this seasonStudent loan forgiveness may be pricier to access after new changesPersonal assistant pleads guilty to defrauding elderly couple out of $10 millionGas prices should soon start slowly easing if ceasefire holds, analysts sayHow to save money on flights as airlines raise pricesThere's a key number to know before making a last-minute IRA contributionWith gas above $4, drivers across the U.S. say they're cutting backNational College Decision Day is approaching. How to maximize aidCNBC's Financial Advisor 100: Best financial advisors, top firms ranked These inevitable market downturns actually provide disciplined young investors with the opportunity to buy stocks at a discount, said Boneparth, who is also a member of CNBC's Financial Advisor Council."Time is typically their greatest asset, and over a long investing horizon they should expect to live through many corrections, bear markets, recessions and geopolitical shocks," he said. The best strategy is 'one you can stick with' Recent market swings may have taught you about yourself as an investor, Guglielmetti said. "Nothing beats experience," she said. "You can know, intellectually, that the market is volatile, but until you actually see your numbers go down, you don't really know how you'll react." If you were overly anxious about your investments during the last few weeks, "maybe a 100% stock portfolio isn't right for you, even if you're very young," Guglielmetti said. You may want to keep a share of your money in cash, bonds, certificates of deposit or money market funds. The best investment strategy is "one you can stick with over time," she added, "not necessarily the one that gives you the highest returns if you can't stay in the market." To be sure, you don't want to invest too conservatively, and risk falling short of your financial goals, or yank money out of the market during downturns and miss the market recovery. Strategy may also need to change for near-term goals Most people in their 20s and 30s who are investing for retirement want to keep the lion's share of their money in stocks, Boneparth said. However, "where strategy may need to change is around near-term goals," he said. Money you expect to use within the next few years for, say, a home purchase or graduate school, should not be invested as aggressively, Boneparth said. A high-yield savings account can be a smart option for short-term money, while funds for medium-term goals might be in a mix of cash and other conservative investments."Young investors can invest for multiple goals at once, but they should avoid treating all dollars the same," Boneparth said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Kevin Warsh, nominee to lead the Federal Reserve, detailed his holdings in newly released financial disclosures. View More

watch nowVIDEO1:0601:06Fed nominee Kevin Warsh filings show holdings worth at least $100 millionSquawk Box Kevin Warsh's wealth eclipses that of all recent Federal Reserve chairs, newly released financial disclosure forms show.Warsh is President Donald Trump's nominee to succeed Federal Reserve Chair Jerome Powell. His financial filings show that Warsh and his wife Jane Lauder have holdings of approximately $192 million, and potentially far more. Holdings in Warsh's name, separate from his spouse, total approximately $135 million to $226 million. Nominees disclose their holdings to the Senate in broad ranges. Warsh's filings list holdings in two funds that are valued at over $50 million, without specifying an upper limit. Lauder holds several funds listed at over $1 million, with no upper limit.Warsh married Lauder in 2002. She sits on the board of Estee Lauder, the cosmetics firm founded by her grandmother. Forbes estimates her wealth at $1.9 billion. Read more CNBC politics coverageFed nominee Warsh filings detail vast wealth, far exceeding past chairsHouse Republican campaign arm touts tax cuts in new 2026 election adVance says ‘the ball is in Iran’s court’ to move peace talks further, as U.S. blockade takes effect The filings show Warsh is significantly richer than Powell, who, at the time of his 2018 confirmation, was thought to be the wealthiest Fed chair in history. Powell's most recent filing, for 2025, shows wealth between $19 million and $75 million.Warsh also disclosed $10 million in income from his work as an advisor to investor Stanley Druckenmiller, which Warsh has jokingly called his "day job." He earned some $3 million over the past year in additional income from work for a handful of Wall Street firms and at Stanford University, where he is a fellow at the conservative Hoover Institution.Warsh's filings detail roughly 1,800 individual assets. Many individual items are identified as being subject to "pre-existing confidentiality obligations" that prevent him from specifying the underlying assets. Warsh in the filings pledges to divest these assets if confirmed. The Senate Banking Committee will hold a confirmation hearing for Warsh next week on April 21.Warsh's path to a full Senate vote is still unclear, however. Sen. Thom Tillis, R.-N.C., has said he will block final approval of Warsh's candidacy until a federal criminal probe into Powell is resolved. Tillis is also a member of the Senate Banking Committee.Tillis on Tuesday told reporters he still doesn't plan to vote for Warsh, since the investigation hasn't been concluded. Stock holdings include SpaceX, Polymarket Warsh's filings detail dozens of holdings in individual companies of undisclosed value. Among them are holdings in Polymarket, SpaceX, and several companies involved in cryptocurrencies. Warsh has said he worked on a venture-capital fund for Druckenmiller. Warsh's filings also indicate he will resign from board seats at shipper UPS and Coupang, a U.S.-based retail company that is the biggest online retailer in South Korea. He will also resign his positions at Stanford and other organizations.Not all past Fed chairs have been vastly wealthy. Earlier in his career, Warsh served a term as a Fed governor under then-Chair Ben Bernanke. When Bernanke stepped down from the Fed in 2014, his filings listed assets of, at most, $2.3 million — mostly in retirement funds.Warsh declined to comment.—Emily Wilkins contributed reporting. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Joan Solotar, global head of Blackstone Private Wealth, said the capital flight from private credit isn't justified by the likely returns and potential losses. View More

In this articleBXFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO20:3520:35Inside Alts: Blackstone Private Wealth's Joan Solotar on private market landscapeInside Alts A version of this article appeared in CNBC's Inside Alts newsletter, a guide to the fast-growing world of alternative investments, from private equity and private credit to hedge funds and venture capital. Sign up to receive future editions, straight to your inbox.Fears of rising defaults and a systemic crisis from private credit don't reflect the underlying fundamentals of private loan portfolios and returns, according to Blackstone's head of private wealth.A wave of redemptions is causing fresh concerns about the risks of private credit, with Ares Management, Apollo Global Management and others capping investor withdrawals from their funds last month. Joan Solotar, global head of Blackstone Private Wealth, which manages over $300 billion, said the capital flight isn't justified by the likely returns and potential losses in individual funds."In my view, you've had all these calls that the house is on fire, when what we see is maybe a piece of burnt toast," she said.Solotar said investors and clients are asking important questions about transparency, loan losses, portfolio exposure to software and liquidity. She said some funds may see lower returns. Yet she said the broader case for private credit and access to private capital remains stronger than ever.Some of worst-case scenarios published by Wall Street analysts, she said, call for loan defaults of up to 15%. Spread over three years, the loss of total annual return would be about 300 basis points. If credit spreads widen, she said the returns for private credit funds could fall to around 3% to 5%, down from the current 6% to 9% that is common for many funds."Is 3% to 5% return a disaster?" she said. "And what's happening in the public equivalents? Because when I look at the public equivalents, they're actually down. So we're still outperforming, and that's the key. I think it's a matter of staying calm, understanding what you own, what the real downside is." Get Inside Alts directly to your inboxThe Inside Alts newsletter with Robert Frank and Leslie Picker is your guide to the fast-growing world of alternative investments.Subscribe here to get access today. Of course, many bank CEOs, analysts and investors disagree, saying private equity firms are understating the potential risks and exposure. The most cited risk is software firms, which make up a large share of private credit lending and are now seen as vulnerable to disruption from artificial intelligence. The Wall Street Journal recently found that large private credit funds managed by Blackstone, Apollo, Ares and Blue Owl had more exposure to the software firms than their filings suggest.Solotar said less than 5% of the assets in Blackstone funds are vulnerable to AI. While some investors and commentators have criticized the lack of transparency and disclosure in private credit funds, she said the funds often disclose more loan information than banks."The word 'private' only relates to the fact that these aren't publicly traded," she said. "But it doesn't mean secret or shadowy. I was a financial institutions analyst for many years, and I will tell you the banks do not let you know how they're carrying any of their loans. We actually show you at the single, individual loan level. There is so much transparency, and we report that every single quarter."Solotar likens the current period in private credit to real estate funds after the pandemic. In 2022, Blackstone limited withdrawals from its $60 billion flagship real estate fund as investors worried about the decline in commercial real estate. Over time, withdrawals stabilized, all redemptions were honored and the property market rebounded.She said the current "stress test" in private credit will actually prove its value in portfolios over the longer term. Institutional investors have proven for years that private investments provide important balance in a portfolio, with less volatility, longer time horizons and often better long-term returns than publicly traded investments. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); The private equity industry's efforts to expand private credit and private assets into 401(k) plans has come under growing criticism, especially given the current redemptions. Former Goldman Sachs CEO Lloyd Blankfein recently told Bloomberg that putting alternative assets into the retirement portfolios of everyday investors was "crazy.""Why are you going into this dangerous territory just to make your business a little bit bigger when that represents such a big potential problem in the future?" Blankfein told Bloomberg. "These securities are opaque and may be riskier than most."Solotar said Blankfein's comments highlighted the need for more education.  "I think everyone has to be very well educated on what they're putting in the portfolios, how the structures work, the limits of liquidity, how they interact with other parts of the portfolio," she said. "And I would ask Lloyd if he has private investments in his portfolio. I'm guessing the answer is yes."Solotar said the demand for private investments will only continue to grow as investors seek to mimic the returns and strategies of large institutions, like endowments, pension funds and sovereign wealth funds that have been allocating to alts for decades. Given the vastly larger size of private markets compared to public, the alts revolution is still in its early stages.Blackstone Private Wealth's $300 billion in assets today is up from $58 billion in 2017. Solotar said Blackstone aims to grow its AUM to $1 trillion in the coming years."I like to say we are not even in the first inning, I think we're still in spring training," she said. "When you think about how pension funds are allocated, about a third of their investments are in private. The top foundations and endowments are at similar levels, and the same with family offices. And if you look at retirement accounts, you're less than 1% or close to zero. So I see this as a very long-term path of travel, with the same trends happening globally, and it is super early." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Traffic through the Strait of Hormuz remains at a trickle, despite President Donald Trump proclaiming that a ceasefire with Iran depended on it reopening. View More

watch nowVIDEO5:0305:03How the Iran War is unfoldingRapid Recap A second round of negotiations between the U.S. and Iran is currently under discussion, though nothing has been officially scheduled yet, a White House official told CNBC on Tuesday morning.President Donald Trump later told the New York Post that the next U.S.-Iran talks "could be happening over next two days" in Islamabad.He had initially told the outlet in a phone interview that additional negotiations could be "a little bit slow" and would likely happen in Europe, but called back about 30 minutes later with updated information, according to the Post.The confirmation that the Trump administration is mulling further talks with Tehran followed prior reporting that the stalled peace negotiations could restart before a fragile two-week ceasefire is set to expire.Officials from both countries could return to Pakistan to resume those talks, Reuters reported earlier Tuesday morning, citing Pakistani and Iranian officials."The coming rounds ​of talks can come sometime later this week or earlier next week. But nothing is finalised as of now," an official at the Iranian Embassy in Islamabad told Reuters.CNN and NBC News also reported that in-person negotiations could resume soon. The Iranian Embassy in Islamabad did not immediately respond to CNBC's request for comment on the reporting.Talks between U.S. and Iranian negotiators in Islamabad last weekend ended without a deal in hand, as key sticking points on Tehran's nuclear ambitions remained unresolved and each side accused the other of shifting the goalposts. Jared Kushner, left, and Steve Witkoff, Special Envoy for Peace Missions listen as Vice President JD Vance speaks during a news conference after meeting with representatives from Pakistan and Iran, April 12, 2026 in Islamabad, Pakistan. Jacquelyn Martin | Getty Images Vice President JD Vance, who led the U.S. delegation alongside special envoys Steve Witkoff and Jared Kushner, said Monday that the next diplomatic move is Iran's to make."Whether we have further conversations, whether we ultimately get to a deal, I really think the ball is in the Iranian court, because we put a lot on the table," Vance told Fox News.Top Iranian officials suggested after the failed talks in Islamabad that the U.S. acted in bad faith. Iranian Foreign Minister Abbas Araghchi said in an X post that Tehran's team was met with "maximalism, shifting goalposts, and blockade," while Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, said the U.S. failed to gain Iran's trust.Trump responded to the scrapped talks by announcing a blockade in the Strait of Hormuz, the vital trade route that normally carries 20% of the world's oil.U.S. Central Command later specified that the blockade will apply to vessels "entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman."More than 10,000 U.S. sailors, Marines, and airmen are enforcing the blockade, along with over a dozen warships and dozens of aircraft, CENTCOM said Tuesday. "During the first 24 hours, no ships made it past the U.S. blockade and 6 merchant vessels complied with direction from U.S. forces to turn around to re-enter an Iranian port on the Gulf of Oman," CENTCOM said.The blockade further chokes off traffic through the strait, which has been at a trickle despite Trump proclaiming on April 7 that a two-week ceasefire agreement with Iran was subject to the route being fully reopened. Read more CNBC politics coverageFed nominee Warsh filings detail vast wealth, far exceeding past chairsHouse Republican campaign arm touts tax cuts in new 2026 election adVance says ‘the ball is in Iran’s court’ to move peace talks further, as U.S. blockade takes effect "We can't let a country blackmail or extort the world, because that's what they're doing," Trump said at the White House on Monday.The ceasefire is currently set to expire next on April 21. Despite the mounting tensions, the latest reporting and other signals are keeping hopes high that a deal could be on the way. Oil prices, which had moved on initial reports that the negotiations could restart, fell on Tuesday morning, while stocks rose.This is developing news. Please check back for updates. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The IMF said that the U.K. will be hardest hit out of all developed economies as a result of the Iran war. View More

watch nowVIDEO4:5904:59Iran war runs risk of long-term economic problems in Europe: Former NATO Secretary GeneralSquawk Box The U.K. will suffer the biggest hit to growth of all the world's richest economies because of the Iran war, the International Monetary Fund warned on Tuesday.In its latest World Economic Outlook, the IMF projected that the U.K. economy will now grow by just 0.8% in 2026, down from 2025's 1.3% projection.That's the largest cut to growth of any G7 economy, with the U.K. set to lag the U.S., which is projected to grow 2.3% in 2026, as well as the euro area (1.1%), Spain (2.1%), France (0.9%). The IMF said the global economy now faces a major test as a result of the ongoing war in the Middle East, having weathered the trade and tariff upheaval last year. It warned that a protracted conflict could further worsen the outlook, while growing public debt and eroding institutions' credibility risks further damage. 'A significant downgrade' Global growth is now likely to be around 3.1% this year — a "significant downgrade" from 3.4% in 2025, said Pierre-Olivier Gourinchas, the IMF's chief economist. Inflation, meanwhile, is forecast to rise to 4.4%, a sharp departure from earlier expectations.Speaking with CNBC's Karen Tso at the 2026 IMF-World Bank's spring meeting in Washington, D.C. on Tuesday, Gourinchas said the U.S.-Iran war has halted the global economy's momentum, and there is little central banks can do about the supply shock stemming from the war, given that oil prices are set in the Gulf region."Raising interest rates or cutting them is not going to change that fact," Gourinchas said. "So, to some extent, they can see it through, but only as long as inflation expectations remain well-anchored and there is no wage-price spiral that takes over."However, any risk that inflation becomes more persistent would mean that central banks would have to step in "and step in decisively." watch nowVIDEO3:4903:49IMF's Gourinchas: Iran war causing 'very significant' growth downgradeSquawk Box Europe The IMF report indicated that worsening geopolitical fragmentation, a reassessment of expectations surrounding AI‑driven productivity, or renewed trade tensions could further dent growth and destabilize markets."Fostering adaptability, maintaining credible policy frameworks, and reinforcing international cooperation are essential to navigating the current shock while preparing for future disruptions in an increasingly uncertain global environment," it noted. 'Worst case scenario' Even under the best assumptions, the world now faces lower growth and higher inflation, Gourinchas said.Gourinchas outlined a potential worst-case scenario in which the conflict drags on into 2027. He said inflation expectations might de-anchor as households and companies look to increase wages and prices.   "That would take us into a whole different situation," he said.In such an adverse scenario, financial markets could add another layer of risk."The market so far has been absorbing this and taking this in its stride. If it gets worse, there could be a significant tightening of financial conditions," he added.In this "severe" scenario, growth for 2026 and 2027 would reach just 2%, while inflation would hit 6% globally. "2% global growth is a very low number, which has only happened four times since 1980. In two of these times we had severe crises — the Global Financial Crisis and Covid-19," he said."This is not a situation that anyone would like." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

As efforts to reach a lasting settlement have so far proved unsuccessful, one Harvard academic estimates the total could end up far higher than was promised. View More

Source: U.S. Navy | Flickr The Iran war could end up costing U.S. taxpayers far more than official figures suggest, according to the analysis of one Harvard academic. The first 6 days of the the joint U.S.-Israeli operation against the Islamic Republic, beginning February 28, racked up costs of $11.3 billion, according to the Pentagon's briefing to Congress.While a fragile ceasefire is still in place, efforts to reach a lasting settlement have so far proved elusive, with U.S. forces starting a blockade of Iranian ports on Monday after peace talks over the weekend failed. "I am certain we will reach $1 trillion for the Iran war," said Professor Linda Bilmes, public policy expert at the Harvard Kennedy School, in an internal interview.Her research, published two days before the temporary ceasefire announcement on April 8, identified several reasons why this military operation could have catastrophic consequences for the U.S. national debt well into the future. She estimates the short-term, upfront costs as totaling around $2 billion per day during the 40 days of live conflict. This includes the price of munitions, troops, and damage to military assets — such as the shooting down of three F-15 fighter jets due to friendly fire from Kuwait.Bilmes believes the short-term costs are higher than they appear on paper, as the Pentagon reports figures based on the historical value of inventory, rather than the actual price of replacing those assets today — which is typically far higher. "These gaps are one reason why the reported $11.3 billion is closer to $16 billion, and they reflect a persistent gap between what the Pentagon reports in real time and what the war actually costs," she said. Bilmes added that large, multi-year contracts with Lockheed Martin and Boeing for interceptors and missiles mean the cost of replenishment to the U.S. will be far higher — at $4 million per interceptor — than the cost of drones fired from Iran, which can be produced for just $30,000 each. Down the road In the long run, the cost of the war is ramped up by the reconstruction of damaged facilities and inventory — not only to U.S. military assets in the region, but also to the infrastructure of its allies in the Gulf. Add that the cost of potential lifetime disability benefits for the roughly 55,000 troops deployed in the region who have been exposed to toxins and environmental hazards, said Bilmes, then further strain is put on the taxpayer. Meanwhile, the White House has asked Congress to boost the US defense budget to $1.5 trillion, which would mean the largest expansion in military spending since World War Two.And the figure doesn't include $200 billion that the Pentagon has asked to be put aside for the war in Iran. "Even if Congress does not agree to approve the full increase, it is highly likely that at least $100 billion per year will be added to the base defense budget that would not have been approved in the absence of this war," Bilmes added.Such outlays will weigh heavily on the proliferating U.S. fiscal deficit.When compared with the Iraq war, which cost $2 trillion in total, debt held by the public during that period was under $4 trillion. Today, it is over $31 trillion, and much of that stems from the previous wars in Iraq and Afghanistan, according to Bilmes. "We are borrowing to finance this war at higher rates, on top of a much larger debt base," she added."The result is that the interest costs alone will add billions of dollars to the total cost of this war. And unlike the upfront costs, these are costs we are explicitly passing on to the next generation." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The partnership will enable Novo to better use AI to analyze complex datasets, and identify promising new drugs. View More

In this articleNVONVOFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO4:5704:57Novo Nordisk CEO: This is where science meets speed and scaleMorning Call Novo Nordisk is partnering with OpenAI to "bring new and better treatment options to patients faster," the Danish drugmaker said Tuesday. The partnership will enable Novo to better use AI to analyze complex datasets, identify promising new drugs, and reduce the time it takes for a medicine to move from the research stage to patient use, the company said in a statement. "There are millions of people living with obesity and diabetes who need treatment options, and we know there are therapies still waiting to be discovered that could change their lives," said Novo CEO Mike Doustdar. "Integrating AI in our everyday work gives us the ability to analyse datasets at a scale that was previously impossible, identify patterns we could not see, and test hypotheses faster than ever.""AI is reshaping industries and in life sciences, it can help people live better, longer lives," said OpenAI CEO Sam Altman. The stock jumped 2.8% shortly after the opening bell.It comes as drugmakers are increasingly turning to AI to improve operations and lengthy processes. While AI could discover new treatments, experts say that the industry is still far from leveraging the technology's full potential and more immediate benefits could come from using it in other areas of drug development. AI can, for example, help companies in the time-consuming task of identifying patients and sites for clinical trials."We haven't heard the last of it yet... in terms of how clinical trials get designed and run, a lot of it is still very traditional, with certain points where AI is being leveraged," Arthur D. Little partner Ben van der Schaaf, told CNBC last month. "AI is not an end-to-end component yet." watch nowVIDEO8:2008:20Sanofi CEO Paul Hudson: AI will improve efficiency and change the cost and speed of drug developmentSquawk Box Novo's latest move builds on its current AI initiatives, which also include a collaboration with Nvidia to use the Gefion sovereign AI supercomputer to "accelerate drug discovery efforts through innovative AI use cases." The companies said last year that they aim to create customized AI models and agents that Novo can use for early research and clinical development.Novo Nordisk is locked in a race with U.S. rival Eli Lilly for dominance in the lucrative weight loss market, in which it has lost its first-mover advantage. Novo is now trying to claw back market share through its Wegovy pill, launched in January, and next-generation drugs. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.