Good morning. Elon Musk has noted that he is in the U.S. because of the H-1B visa. I came to the U.S. on one, too. So did Melania Trump. Odds are high that none of us would have been able to work here, had it cost our employers $100,000 a pop. Donald Trump’s decision to dramatically raise the cost of this key visa for foreign workers caused chaos over the weekend, followed by mild relief that existing holders are exempt, but widespread confusion about what this means for business. “We’re being inundated with member requests,” U.S. Chamber of Commerce CEO Suzanne Clark told me yesterday. “We’re working with the Administration and our members to understand the full implications and the best path forward.”
Tech and consulting giants will bear the brunt of this cost—Amazon alone would have had to pay more than $1 billion had that fee been charged for its visa holders—but thousands of smaller companies and startups rely on the program. It will no doubt be challenged in court as new visa fees are typically the domain of Congress but, for now, the fee stands. Here’s the reaction I’ve heard from some leaders this weekend, many of whom are in town for Climate Week and the U.N. General Assembly.
The system needs reform–I was surprised to hear a veteran tech leader agree with the White House contention that the H-1B has made it too easy for U.S. companies to hire entry-level foreign talent rather than look for workers at home. “A lottery is not a meritocracy,” he told me. “Companies have been using these visas to displace American workers. That’s just a fact.” With Gen Z struggling to find work, something had to give.
Foreign workers fuel innovation–Attracting the best and brightest from around the world is part of America’s secret sauce. Many entrepreneurs come as foreign students, ultimately getting an H-1B that enables them to build successful companies and careers here. The Bureau of Labor Statistics estimated that the U.S. would need more than one million additional STEM workers between 2023 and 2033. AI and automation may reduce labor demand, but the multiplier effect of top talent doesn’t diminish.
Industry will fight back–CEOs have been remarkably tepid in response to various White House moves, from tariffs to directives on how to run their businesses. But fear of the President’s wrath is giving way to frustration: Says one foreign-born CEO I spoke to: “Show me a country that wins by turning away talent, firing experts and making it more costly to do business.”
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
Murdochs and Dell named in TikTok deal talks
President Trump said Rupert and Lachlan Murdoch and Michael Dell might be involved in a deal to acquire the U.S. operations of TikTok. He has previously said Oracle’s Larry Ellison might also be involved. Others reportedly include Silver Lake and Andreessen Horowitz. Axios reports the deal would leave ByteDance with a stake of less than 20% in the company.
Pfizer to acquire obesity drugmaker Metsera for $7.3 billion
Metsera’s GLP-1 drug candidate MET-097i produced an 11.3% reduction in weight in a phase two trial. Pfizer needs an obesity drug after its own candidate failed a trial erlier this year.
Trump will reportedly link Tylenol to autism
At a White House event today, President Trump will suggest that taking Kenvue’s Tylenol during pregnancy can cause autism, Axios reports. “President Trump pledged to address America’s rising rate of autism, and to do so with Gold Standard science,” a White House spokesperson said. A study of 2 million children in Sweden found no link between Tylenol and autism although smaller studies have shown a risk. Kenvue denies there is evidence of a link.
Goodwill CEO is preparing for jumps in unemployment
Goodwill CEO Steve Preston told Fortune that the charity is “preparing for a flux of unemployed young people—as well as other people—from AI.” His solution to those affected: equip yourself with digital skills.
Trump and Musk reunite
President Donald Trump and Elon Musk reunited Sunday night at a memorial service for conservative activist Charlie Kirk, just a few months after the former allies had a public falling out on social media. Following the event, Elon Musk posted a picture of the two figures together captioned “For Charlie.”
The Great RTO keeps not happening
A survey of 8,709 companies found that although many of them have issued return-to-office orders to their staff, workers and middle managers are largely finding ways not to show up.
Elsewhere: Trump ordered Afghanistan to give back Bagram Air Base but Taliban authorities say they won’t … The president is planning a summit with Arab leaders to discuss a future for Gaza … As the White House proposes higher H-1B visa fees the U.K. is considering dropping talent visa fees to zero.
The markets
S&P 500 futures were down 0.19% this morning. The index closed up 0.49% in its last session, hitting a new all-time high at 6,664.36. STOXX Europe 600 was flat in early trading. The U.K.’s FTSE 100 was flat in early trading. Japan’s Nikkei 225 was up 0.99%. China’s CSI 300 was up 0.46%. The South Korea KOSPI was up 0.68%. India’s Nifty 50 was down 0.21% before the end of the session. Bitcoin fell to $112.7K.
Around the watercooler
The Fed doesn’t actually have a ‘dual’ mandate—there’s a third part it rarely mentions, and economists want it to stay that way by Eleanor Pringle
U.S. stocks are chipping away at Europe’s outperformance, and Powell slipped in this dovish signal on Fed rates that Wall Street overlooked by Jason Ma
Top economists and Jerome Powell agree that Gen Z’s hiring nightmare is real—and it’s not about AI eating entry-level jobs by Nick Lichtenberg and Eva Roytburg
Insomnia Cookies’ CEO runs a sweets empire worth $350 million—but as a college junior he delivered cookies across campus at 2 a.m. by Emma Burleigh
London teenager orchestrated ‘help desk’ extortion scheme against 47 U.S. companies that netted $115 million, says DOJ by Amanda Gerut
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
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