Good morning. In today's newsletter, we're focusing on a significant trend in the business world: CEOs are increasingly using the word "pause" to describe their approach to decision-making amid growing uncertainty. The Big Story: The P-Word CEOs from small startups to large corporations like Morgan Stanley are slowing down their decision-making processes by employing the term "pause." This simple word has become a common way to convey that companies are taking a step back before making major moves that could appear impulsive or misguided in the near future. For smaller firms, this pause often means holding off on significant investments or hiring. For example, Oxidizers, a pollution-control firm near Los Angeles, is waiting to see the full impact of President Donald Trump's tariffs before making any major commitments. Similarly, Megan Gluth, CEO of Catalynt Solutions, a materials company, has put contracts on hold due to global instability. This trend is not limited to small businesses. Larger corporations, such as Morgan Stanley, are also adopting the pause strategy. Ted Pick, CEO of Morgan Stanley, emphasized that while a pause can be beneficial for reassessment, it must not become a protracted delay. "If adjusting to the new normal takes too long, companies' willingness to do deals and other normal activities could fade, to the point where 'the pause effectively becomes a relook and the books get put away,'" he said. The goal is to take a breather, but not to get left behind. Market Insights Trump vs. the Fed: President Trump has repeatedly criticized the Federal Reserve, particularly its Chairman Jerome Powell, whom he nominated in 2017. This ongoing feud has raised concerns about the independence of the Fed. Economic experts warn that undermining the Fed's independence could shrink the American economy and lead to capital flowing to other countries. Diversity in Wall Street: Despite stereotypes, the average Wall Street banker is not necessarily a Harvard graduate or white, according to a demographic breakdown by Business Insider. However, lack of diversity at the top echelons of these firms remains a persistent issue. JPMorgan on Trump's Trade War: JPMorgan recently released research predicting that the U.S. effective tariff rate will hover between 10% and 20%. They also forecast that the U.S. will narrowly avoid a recession. The firm provided two investment recommendations to navigate these turbulent times. Tech Highlights Nvidia's Corporate Culture: Nvidia, known for its demanding work environment, has a unique corporate culture centered around direct accountability to CEO Jensen Huang. Stephen Witt, Huang's biographer, shared insights into how Huang maintains this demanding culture while steering the company toward innovative AI advancements. Huang even draws inspiration from Marvel's Doctor Strange for advancing physical AI. Tesla's Cybertruck in the Middle East: Tesla's Cybertruck is set to make its way to Saudi Arabia and Dubai, but this expansion is unlikely to significantly boost the company's lagging sales. Business Insider notes that the truck's futuristic design has also sparked a "brand crisis tornado," turning it into a target for criticism and even vandalism. AMD vs. Nvidia: AMD is looking to challenge Nvidia's dominance in the data center market, particularly in the area of AI inference. While Nvidia has had a 10-year head start in AI training, AMD sees an opportunity to gain market share as the focus shifts to the more efficient and cost-effective AI inference workload. Business Updates Riyadh Air's Luxury Flights: Saudi Arabia's new airline, Riyadh Air, plans to offer premium experiences for first-class passengers, including 32-inch TVs and seats that can be converted into double beds. The airline will operate long-haul flights using Boeing 787s to major cities, including destinations in the U.S. ALT Sports Data Raises $5 Million: ALT Sports Data, a startup collaborating with Formula 1, has secured $5 million in funding to expand its betting operations on niche and emerging sports. The company's CMO outlined how their business model drives fan engagement and attracts new investors to these lesser-known sports. Trump's Tariffs Backfire: President Trump's tariffs, intended to encourage American consumers to buy domestic products, are actually harming the very businesses he aims to protect. Small business owners have expressed their frustration, noting that the tariffs are causing more economic hardship and uncertainty. Industry Evaluation and Company Profiles The trend of pausing decisions is a prudent approach for CEOs, especially in a rapidly changing economic landscape. However, the effectiveness of this strategy depends on the duration of the pause. Industry insiders like Ted Pick highlight the risk of prolonged indecision, which can erode confidence and dampen business activities. Balancing caution with timely action is crucial. Morgan Stanley, under the leadership of Ted Pick, is a global investment bank and financial services company. Known for its conservative and strategic approach, the firm's decision to pause major activities reflects its commitment to prudent financial management. Similarly,/email*Nvidia, led by Jensen Huang, is a leader in graphics processing units (GPUs) and AI solutions. The company's unique culture and direct accountability to the CEO have contributed to its success and innovation. In the tech and business sectors, pausing decisions can provide a critical window for reassessment and strategic planning, ensuring companies are better positioned to adapt to new challenges and opportunities. However, the key lies in executing this pause effectively and not letting it turn into a permanent delay.