Ambassador Mike Waltz spoke off the record to share frank insights about his prognosis for everything from Iran to the future of the UN. His perspective was in stark contrast with Richard Haass, a veteran diplomat, scholar and senior counselor with Centerview Partners who’s been a longtime critic of Trump’s policies. He pointed to two crises, in particular, that are “eroding confidence in American competence and leadership.” The first is a disdain for expertise, whether it’s scientific expertise or the policy expertise that’s guided previous presidents in making decisions such as whether to go to war. The second is the fiscal crisis as U.S. national debt this week surpassed $39 trillion. If unfunded entitlements are added, the fiscal gap is closer to $100 trillion. Said Haass: “I think we’re living on borrowed time.”
Few are more aware of that than younger Americans who are struggling to find jobs, afford homes, and see themselves in the political parties that claim to represent them. It was especially refreshing to speak with Jack Schlossberg, a Democratic congressional candidate and grandson of JFK, who told attendees that the Democrats’ “reactionary” and “anti-everything” stance has been a turnoff to many younger voters. “The Republican Party has embraced modernity in a way the Democratic Party used to own,” he told us, later speaking of priorities like service, innovation and opportunity.
There were disagreements, some vehement, and an energy that I value at these gatherings. One takeaway for me was the high number of CEOs who start their day at around 5 a.m. (A lot) And another was the sense that opportunities to come together from different sides of the table with a shared desire to learn are rare. One CEO told me it’s hard to even get opposing sides of his family to talk these days, saying “I miss a good debate.” I agree. If you want to find out more about the CEO Initiative, click here or reach out to my new colleague, John Pentin.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top leadership news
CEOs need a wartime mindset
With the U.S.-Israel war against Iran roiling supply chains and sending energy prices higher, scenario planning has become more important than ever. The most prepared CEOs are readying for a number of possible futures—and rehearsing what they’d do in each one. “Scenario testing or stress testing: If you’re not already doing it, you need to start yesterday,” says Rebecca Patterson, a senior fellow at the Council on Foreign Relations.
Supermicro’s cofounder is in federal custody
Supermicro’s cofounder Yih-Shyan “Wally” Liaw was arrested on Thursday, charged by the U.S. Department of Justice with allegedly secretly funneling billions of dollars worth of the company’s AI servers to China in violation of U.S. export control laws.
‘Factory to the factories’
China is shifting from exporting finished goods to supplying critical components, becoming a “factory to the factories” as global manufacturing disperses to emerging markets. Southeast Asia, in particular, is playing “matchmaker” between China and the U.S., says McKinsey partner Jeongmin Seong.
The markets
S&P 500 futures are up 0.1%, after a 0.3% drop on Thursday. South Korea’s KOSPI is up 0.3%, Hong Kong’s Hang Seng Index is down 0.9%. (Japan’s market is closed today). Vietnam’s VN-Index is down 3.0%. India’s NIFTY 50 is up 0.8%, the STOXX Europe 600 is up 0.8% in early trading. Bitcoin rose to above $71,000.
Around the watercooler
Baked by Melissa’s founder was fired at 24. Two decades later, she’s ‘so freaking thrilled’ to step down as CEO by Eva Roytburg
DOGE cancelled a $349,000 grant to replace a museum’s HVAC after ChatGPT flagged it as DEI, court documents show by Sasha Rogelberg
Uber will operate its own robotaxis again—this time with Rivian’s not‑yet‑built EVs by Jessica Mathews
France is experiencing a wave of crypto assault. One involved an influencer’s father doused with gasoline by Carlos Garcia
War, oil, and an unpaid TSA: The perfect storm of travel chaos feels like the pandemic all over again by Catherina Gioino
How an MBA internship led Mitsubishi to e-commerce platform Yami—and into the U.S. snacks market by Nicholas Gordon
Today’s edition of CEO Daily was compiled and edited by Joey Abrams, Nicholas Gordon and Lee Clifford.
