DALY: RISKS TO FED'S GOALS OF FULL EMPLOYMENT, INFLATION ARE BALANCED

Geopolitics & Diplomacy - Greer says meeting planned Friday with Chinese officials to discuss policy outcomes for Trump-Xi meeting - U.S. Department of State will host a meeting next week to discuss ongoing ceasefire negotiations with Israel and Lebanon - official - Trump is considering withdrawing some US troops from Europe, White House official says - Netanyahu: there is no ceasefire in Lebanon - Trump: Israel is scaling back Lebanon operations - NBC - Iran’s demands include the unfreezing of Iranian assets by the Americans within two weeks — a senior Iranian official - Iran’s Deputy Foreign Minister said that the Strait of Hormuz is open to all civilian shipping and reports it is closed are wrong Trade & Policy - Trump may use emergency law for Iran tariffs despite court ruling, adviser says - Trump administration will continue relaxing sanctions on Russian oil, as the markets remain unconvinced by the ceasefire narrative - Semafor - EU warns of “stagflationary shock” despite Iran–US ceasefire, Commission to cut growth forecast: FT - Japan considering releasing about 20 days of oil reserves, Kyodo says Technology & AI - Alibaba and Unitree Robotics preparing overseas collaboration project; details to be announced next week, confirms insider - Intel: multiyear collaboration with Google to advance AI infrastructure with Xeon CPUs, custom IPUs - Alibaba Group has anonymously released a new AI video generation model called HappyHorse-1.0 - The Information - Amazon says AWS’s AI revenue run rate is over $15 billion in Q1 2026 and ascending rapidly - CEO letter - OpenAI projects $100 billion in ad revenue by 2030 - Axios - OpenAI to limit release of advanced cybersecurity model amid AI risks - Tencent Cloud to raise AI compute, TKE and EMR prices by 5% from May 9 Corporate & Industry - Sources: Tesla plans to produce new, affordable compact EVs in China - China explores aid for state airlines amid rising fuel costs

VANCE: WE WON'T BE RECEPTIVE IF IRAN TRIES TO PLAY US