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Good morning. Today we're bringing you an exclusive story about a plan that could mark the biggest shake-up ever for Google's search business.
The company is considering charging fees for new “premium” features powered by generative AI, people familiar with Google’s plans told the Financial Times.
This will be the first time that Google, which for many years has provided free consumer services funded entirely through advertising, will make people pay for improvements to its core search product.
Google is looking at options including adding AI-powered search features to its premium subscription services, which already provide access to the new Gemini AI assistant in Gmail and Docs. Engineers are developing the technology needed to deploy the service, but executives have not yet made a final decision on whether or when to launch it, one of the people said.
FT AI editor Madhumita Murgia and West Coast editor Richard Waters have more details on the potential renewal.
Here are the other things I'm tracking today:
Economic Data: S&P Global has its own services PMIs for the UK, France, Germany and Italy, and the EU Composite PMI. The Bank of England publishes data on the UK's international reserves.
NATO: The Alliance celebrates its 75th anniversary with a ceremony in Brussels and statements by Secretary General Jens Stoltenberg. The Financial Times reported yesterday that he proposed a $100 billion military aid package for Ukraine to be discussed at a meeting of NATO foreign ministers.
Goldman Sachs: The Wall Street bank is set to reveal in a report today that the gender pay gap at its UK operations widened last year, reaching its highest level in six years.
Joe Louis: The British billionaire, whose family owns Tottenham Hotspur football club, is set to be sentenced after pleading guilty to criminal charges in a US insider trading case in January.
Kuwait: The oil-rich Gulf state holds parliamentary elections today.
Five more stories top
1. Exclusive: Switzerland's financial regulator has tried to prevent disclosure of key files from Credit Suisse investors suing it after $17 billion worth of bonds were wiped out in the bank's bailout. Finma has written to the Swiss court hearing the case, claiming that publishing the documents would undermine confidence in the regulator and strengthen potential legal claims against the Swiss state. Here's more from the letter seen by the FT.
2. US institutional investors are selling more of their private equity holdings at a discount, as they reduce their exposure to the illiquid asset class. Led by pension funds and endowments, large investors sold 99 percent of their private equity holdings at or below their net asset value on the secondary market last year, according to Jefferies, the most since the investment bank began tracking the figure in 2017. That compares with 95 percent in in 2022 and 73 percent in 2021. Read the full story.
3. Exclusive: Abrdn shareholders have been urged to vote against the new CFO's pay report. The report, prepared by influential consultant Glass Lewis, noted that Jason Windsor's “substantial” basic salary of £675,000 was 25 per cent more than his predecessor's salary, and appeared to be higher than usual for such a position. Emma Dunkley has more details.
4. Israeli war cabinet member Benny Gantz called for early elections, increasing pressure on Prime Minister Benjamin Netanyahu and his increasingly unpopular right-wing coalition. Gantz said the elections should be held in September, as the first anniversary of the start of the war against Hamas in Gaza approaches. Elections are scheduled to be held in 2026 under current rules. This is why he calls for its introduction.
5. The UK has once again postponed the deadline for airports to install new security scanners that would allow passengers to leave liquids inside hand luggage. The Department for Transport had given all major UK airports until June to install the advanced scanners, but extended the deadline by up to 12 months today. Here's more about the late rollout.
Great reading
Fear of “Disease X” has already sparked several rounds of painstaking international negotiations on the world's first pandemic treaty. The ominous codename refers to the as-yet-unknown disease that is expected to one day devastate the world in a repeat of Covid-19 – or perhaps do worse damage. But ahead of the World Health Organization's May deadline, internal politics over “sovereignty” and geopolitical tensions threaten to derail a crucial plan to avoid the deadly mistakes made by the latest pandemic.
We read too. . .
Moscow attack: Why did Russian intelligence reject US warnings about the terrorist threat before the March 22 attack on Crocus City Hall?
Middle East tensions: Iran is considering how to respond to the killing of a Revolutionary Guard commander in a suspected Israeli airstrike without sparking a wider conflagration.
UK Transport: After years of quiet renationalization, politicians and industry chiefs agree that a comprehensive rethink of Britain's railways is urgently needed.
Interest rates: Mixed inflation numbers are raising expectations that the European Central Bank may cut interest rates earlier than the Fed.
To learn more about interest rate setters' battle with inflation, subscribe to Chris Giles' Central Banking newsletter. Or upgrade your subscription here.
Today's chart
Gold prices rose to an all-time high yesterday as traders responded to signals that the US Federal Reserve is preparing to cut interest rates later this year, even as inflation remains above the central bank's target. Safe-haven assets, also supported by concerns about the potential escalation of conflict in the Middle East, have risen 15 percent since mid-February.
Take a break from the news
There are about 4,000 species of snakes, living in oceans, lakes, deserts, forests and even underground. A new study has revealed the twisty back story of an animal touted as a new superfood, writes science commentator Anjana Ahuja.
Additional contributions from Benjamin Wilhelm and Gordon Smith
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