Good morning. Donald Trump is upping the stakes in LA. Mark Zuckerberg wants to assemble an AI brains trust. And why free breakfast waffles are the key to success in the lodging business. Listen to the day’s top stories.

Donald Trump escalated his response to anti-deportation protests in LA with the mobilization of 700 Marines, increasing tensions with California officials. The city had a fourth night of clashes as largely peaceful daytime protests morphed into scattered confrontations with police. Trump’s move to deploy US troops fulfills his longtime goal of leaning on the military for a show of force and political power. Here’s an explainer on what’s at stake in the standoff.

Mark Zuckerberg is putting together a team to achieve artificial general intelligence, a reflection of his frustration with Meta’s AI shortfalls. The company is also planning a multibillion dollar investment in Scale AI, a data-labeling startup, which would be Meta’s biggest-ever external AI investment. Zuckerberg has made AI a top priority, saying Meta will invest as much as $65 billion in the technology this year. This glossary may help distinguish your AGIs from your GPTs.

More tech. Apple introduced AI-powered features at its Worldwide Developers Conference, including an expanded relationship with ChatGPT-maker OpenAI. It also unveiled a new software redesign called Liquid Glass, aiming to make its device lineup more cohesive and useful. Despite the enhancements, Apple's effort to start an AI comeback at this year’s conference fell short.

Trade talks between the US and China resume in London today, as the two sides look to ease tensions over shipments of technology and rare earth elements. There’s little firm information on progress, though Trump told reporters yesterday: “We are doing well with China. China’s not easy.” Investors are on edge as they await firm news from the discussions.

Abigail Johnson at the Greater Boston Chamber of Commerce annual meeting in May 2022. Photographer: Boston Globe

A venture capital fund backed by Fidelity’s billionaire Johnson family plans to unload its Chinese technology holdings, amid the heightened tensions between Beijing and Washington. People familiar said the Eight Roads fund is selling the companies at a discount ranging from 60% to 80% of their peak valuation. Read how Fidelity’s Abigail Johnson is tightening her grip on the family empire.

Deep Dive: US-Iran Nuclear Talks

Foreign Minister Abbas Araghchi, Iran’s lead negotiator in the nuclear talks. Photographer: Amer Hilabi/Getty Images

Iran said it will hold another round of nuclear talks with the US in Oman on Sunday as all signs point to the difficult nature of the discussions. 

• Trump said yesterday that Iran is pressing to be allowed to enrich uranium, and expressed worry that Tehran was seeking too much. “They are good negotiators, but they’re tough,” the US president said.
• The UN’s nuclear watchdog said Iran’s rapidly increasing uranium stockpile cannot be ignored, as it convenes this week in Vienna to discuss the Islamic Republic’s failure to cooperate in a years-long probe.
• In its latest report, the UN agency said Iran has significantly expanded its stockpile of near weapons-grade uranium over the past three months, enough to fuel about 10 nuclear bombs. Iran has rejected the claims, accusing the watchdog of slander and presenting sloppy evidence.
• Here’s an explainer on what’s at stake in the US-Iran talks. 

The Big Take

Xi Jinping shakes hands with Lula da Silva in Beijing on May 13. Photographer: Tingshu Wang/AFP/Getty Images

Six months after emergency brain surgery and in his second stint as president, the 79-year-old Luiz Inacio Lula da Silva remains as energetic and ambitious as ever on the world stage. But the bravado is now masking a ugly truth: Back home in Brazil, Lula is falling apart.

Opinion

SpaceX's Starship rocket launches during a test flight from Texas, on May 27. Photographer: Eric Gay/AP

The feud between Elon Musk and Donald Trump carries costly lessons for the $630 billion space economy dominated by Musk's SpaceX, Lionel Laurent writes. A prolonged conflict could make space a chillier place for everyone.

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Before You Go

The temple at the heart of every Hampton. Photographer: Jared Soares/Bloomberg Businessweek

Secret formula. By offering free breakfast waffles and being seen as dependable, Hilton's Hampton Inn has grown to become the US’s largest lodging chain. The key ingredient? Being rigorously OK.

Bloomberg Green Seattle: Join us July 14-16 for two days of compelling conversations where we’ll explore the urgent environmental challenges of today and the innovative ideas shaping tomorrow. Click here for details.

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