Connect with us

News

Why Trump is focusing on business deals on his Middle East trip

Published

on

Why Trump is focusing on business deals on his Middle East trip

President Trump waves after taking questions from reporters outside the White House on May 8.

Jim Watson/AFP


hide caption

toggle caption

Advertisement

Jim Watson/AFP

President Trump leaves Monday for the first major foreign trip of his second term, focusing on business deals in Saudi Arabia, Qatar and the United Arab Emirates as his administration struggles to broker an end to the war in Gaza.

Trump pledged to bring peace to the region as he ran for a second term, but that is proving to be elusive. On this trip, he will showcase a promise by Saudi Arabia to invest $600 billion in the United States over the next four years and pledges from the UAE to spend $1.4 trillion over 10 years.

“The Saudis, the Emiratis and Qataris are going to fall all over themselves over who can outdo themselves to welcome the president,” said Steven Cook, a senior fellow for the Middle East at the Council on Foreign Relations. “And then they will outdo themselves over the number of deals that they can announce as the president is there.”

Advertisement

In many ways, the trip is a replay of the inaugural foreign trip of Trump’s first term. The Saudis welcomed Trump with a lavish ceremony and announcements of billions of dollars in investments.

In this May 21, 2017, photo, Egyptian President Abdel Fattah el-Sisi, Saudi King Salman and President Trump place their hands on an illuminated globe as they stand around it.

In 2017, Egyptian President Abdel Fattah el-Sisi (from left), Saudi King Salman and President Trump attend a ceremonial launch of the Global Center for Combating Extremist Ideology.

AP/Saudi Press Agency


hide caption

toggle caption

Advertisement

AP/Saudi Press Agency

Cook said the Gulf leaders understand what Trump wants — and have an interest in giving it to him — because there are other things they don’t want Trump to ask about.

“It’s good for them because when he comes to them and says, ‘We want your help doing something on Gaza,’ and they’re not inclined to do it, they will be insulated from the criticism that would likely come if they just didn’t do anything,” Cook said.

Back in 2017, Trump sought to shore up relationships in the region after implementing a travel ban on some Muslim-majority countries — and did some business with autocratic leaders seeking global credibility.

Advertisement
In this 2017 photo, taken at a welcome ceremony in Riyadh, Saudi Arabia, President Trump is wearing a dark suit and holding a sword while flanked by men wearing traditional white robes who are also holding swords.

President Trump joins dancers with swords at a welcome ceremony in Riyadh, Saudi Arabia, on May 20, 2017.

Mandel Ngan/AFP


hide caption

toggle caption

Mandel Ngan/AFP

Advertisement

The White House said this trip will highlight strengthening ties in the region.

“President Trump will return to reemphasize his continued vision for a proud, prosperous and successful Middle East, where the United States and Middle Eastern nations are in cooperative relationships and where extremism is defeated in place of commerce and cultural exchanges,” press secretary Karoline Leavitt told reporters on Friday.

But the unrest and uncertainty in the region have complicated the messaging, said Karen Young, a political economist focusing on the Gulf at the Middle East Institute.

“A lot of the rhetoric is the same, but the world has changed,” she said.

Advertisement

Trump’s biggest policy goals are currently beyond reach

Trump has some big goals in the region for his second term: end fighting in Gaza, stop Iran’s advances toward becoming a nuclear power and persuade Saudi Arabia to normalize relations with Israel by joining what’s known as the Abraham Accords.

But Saudi Arabia — which has long called for an independent Palestinian state — is unlikely to be interested in those accords right now because of the war in Gaza, said Dennis Ross, who worked on Middle East issues for both the George H.W. Bush and Clinton administrations.

“Mohammed bin Salman [Saudi Arabia’s crown prince] is very likely to say that so sours the atmosphere, that that’s not something that he can be engaging in at this time,” said Ross, who’s now at the Washington Institute for Near East Policy.

In this 2017 photo, President Trump and Saudi Crown Prince Mohammed bin Salman are shaking hands while standing in front of U.S. and Saudi flags. Trump is on the right, wearing a suit and tie, and Salman is on the left, wearing a traditional Saudi robe.

President Trump and Saudi Crown Prince Mohammed bin Salman meet in Riyadh on May 20, 2017.

Mandel Ngan/AFP


hide caption

Advertisement

toggle caption

Mandel Ngan/AFP

Any discussions about the accords are likely to happen behind closed doors, Ross said.

Advertisement

It also makes the business deals more important for Trump.

“Right now, the president doesn’t have a lot of successes to point to,” Ross said.” So I think he’s going to want to play up the trip in terms of showing, ‘Look what I’m producing for the United States.’”

What happened on Trump’s first trip to Riyadh

During Trump’s first trip to Riyadh, the Saudi capital, in 2017, nearly $110 billion in arms deals were announced, and the administration said that other investments could boost that total to as much as $350 billion.

Since then, the State Department said, the U.S. government has “implemented” $30 billion in foreign military “cases” with Saudi Arabia. Put another way: The Riyadh announcement was the easy part.

Advertisement

“There are a lot of steps in any arms sales process,” said John Parachini, a senior defense researcher at the Rand Corp. The process involves complex negotiations, multiple federal agencies, Congress, arms manufacturers and the customer countries.

But that complexity wasn’t part of how Trump sold it.

“That’s the style of this particular president. He’s going to send a strong signal that he’s supporting American business, but these things are really complicated and can take years,” Parachini said.

News

Amazon accused of listing products from independent shops without permission

Published

on

Amazon accused of listing products from independent shops without permission

Unlock the Editor’s Digest for free

Amazon has been accused of listing products from independent retailers without their consent, even as the ecommerce giant sues start-up Perplexity over its AI software shopping without permission.

The $2.5tn online retailer has listed some independent shops’ full inventory on its platform without seeking permission, four business owners told the Financial Times, enabling customers to shop through Amazon rather than buy directly.

Two independent retailers told the FT that they had also received orders for products that were either out of stock or were mispriced and mislabelled by Amazon leading to customer complaints.

Advertisement

“Nobody opted into this,” said Angie Chua, owner of Bobo Design Studio, a stationery store based in Los Angeles.

Tech companies are experimenting with artificial intelligence “agents” that can perform tasks like shopping autonomously based on user instructions.

Amazon has blocked agents from Anthropic, Google, OpenAI and a host of other AI start-ups from its website.

It filed a lawsuit in November against Perplexity, whose Comet browser was making purchases on Amazon on behalf of users, alleging that the company’s actions risked undermining user privacy and violated its terms of service.

In its complaint, Amazon said Perplexity had taken steps “without prior notice to Amazon and without authorisation” and that it degraded a customer shopping experience it had invested in over several decades.

Advertisement

Perplexity in a statement at the time said that the lawsuit was a “bully tactic” aimed at scaring “disruptive companies like Perplexity” from improving customers’ experience.

The recent complaints against Amazon relate to its “Buy for Me” function, launched last April, which lets some customers purchase items that are not listed with Amazon but on other retailers’ sites.

Retailers said Amazon did not seek their permission before sending them orders that were placed on the ecommerce site. They do not receive the user’s email address or other information that might be helpful for generating future sales, several sellers told the FT.

“We consciously avoid Amazon because our business is rooted in community and building a relationship with customers,” Chua said. “I don’t know who these customers are.”

Several of the independent retailers said Amazon’s move had led to poor experiences for customers, or hurt their business.

Advertisement

Sarah Hitchcock Burzio, the owner of Hitchcock Paper Co. in Virginia, said that Amazon had mislabelled items leading to a surge in orders as customers believed they were receiving more expensive versions of a product at a much lower price.

“There were no guardrails set up so when there were issues there was nobody I could go to,” she said.

Product returns and complaints for the “Buy for Me” function are handled by sellers rather than Amazon, even when errors are produced by the Seattle-based group.

Amazon enables sellers to opt out of the service by contacting the company on a specific email address.

Amazon said: “Shop Direct and Buy for Me are programmes we’re testing that help customers discover brands and products not currently sold in Amazon’s store, while helping businesses reach new customers and drive incremental sales.

Advertisement

“We have received positive feedback on these programmes. Businesses can opt out at any time.”

Continue Reading

News

Trump says Venezuela will turn over 30 million to 50 million barrels of oil to US | CNN Business

Published

on

Trump says Venezuela will turn over 30 million to 50 million barrels of oil to US | CNN Business

President Donald Trump said Tuesday night that Venezuela will turn over 30 million to 50 million barrels of oil to the United States, to be sold at market value and with the proceeds controlled by the US.

Interim authorities in Venezuela will turn over “sanctioned oil” Trump said on Truth Social.

The US will use the proceeds “to benefit the people of Venezuela and the United States!” he wrote.

Energy Secretary Chris Wright has been directed to “execute this plan, immediately,” and the barrels “will be taken by storage ships, and brought directly to unloading docks in the United States.”

CNN has reached out to the White House for more information.

Advertisement

A senior administration official, speaking under condition of anonymity, told CNN that the oil has already been produced and put in barrels. The majority of it is currently on boats and will now go to US facilities in the Gulf to be refined.

Although 30 to 50 million barrels of oil sounds like a lot, the United States consumed just over 20 million barrels of oil per day over the past month.

That amount may lower oil prices a bit, but it probably won’t lower Americans’ gas prices that much: Former President Joe Biden released about four to six times as much — 180 million barrels of oil — from the US Strategic Petroleum Reserve in 2022, which lowered gas prices by only between 13 cents and 31 cents a gallon over the course of four months, according to a Treasury Department analysis.

US oil fell about $1 a barrel, or just under 2%, to $56, immediately after Trump made his announcement on Truth Social.

Selling up to 50 million barrels could raise quite a bit of revenue: Venezuelan oil is currently trading at $55 per barrel, so if the United States can find buyers willing to pay market price, it could raise between $1.65 billion and $2.75 billion from the sale.

Advertisement

Venezuela has built up significant stockpiles of crude over since the United States began its oil embargo late last year. But handing over that much oil to the United States may deplete Venezuela’s own oil reserves.

The oil is almost certainly coming from both its onshore storage and some of the seized tankers that were transporting oil: The country has about 48 million barrels of storage capacity and was nearly full, according to Phil Flynn, senior market analyst at the Price Futures Group. The tankers were transporting about 15 million to 22 million barrels of oil, according to industry estimates.

It’s unclear over what time period Venezuela will hand over the oil to the United States.

The senior administration official said the transfer would happen quickly because Venezuela’s crude is very heavy, which means it can’t be stored for long.

But crude does not go bad if it is not refined in a certain amount of time, said Andrew Lipow, the president of Lipow Oil Associates, in a note. “It has sat underground for hundreds of millions of years. In fact, much of the oil in the Strategic Petroleum Reserve has been around for decades,” he wrote.

Advertisement
Continue Reading

News

Video: Nvidia Shows Off New A.I. Chip at CES

Published

on

Video: Nvidia Shows Off New A.I. Chip at CES

new video loaded: Nvidia Shows Off New A.I. Chip at CES

transcript

transcript

Nvidia Shows Off New A.I. Chip at CES

At the annual tech conference, CES, Nvidia showed off a new A.I. chip, known as Vera Rubin, which is more efficient and powerful than previous generations of chips.

This is the Vera CPU. This is one CPU. This is groundbreaking work. I would not be surprised if the industry would like us to make this format and this structure an industry standard in the future. Today, we’re announcing Alpamayo, the world’s first thinking, reasoning autonomous vehicle A.I.

Advertisement
At the annual tech conference, CES, Nvidia showed off a new A.I. chip, known as Vera Rubin, which is more efficient and powerful than previous generations of chips.

By Jiawei Wang

January 6, 2026

Continue Reading
Advertisement

Trending