• The US economy is headed for a recession and a wave of corporate failures, Jeffrey Gundlach said.
•  Several sectors are slowing and higher interest rates are squeezing people and businesses, he said.
• Higher prices and interest costs are spurring consumers to rack up credit card debt, Gundlach said.

Prepare for a recession to strike and companies to collapse as stubborn inflation and sticky interest rates take their toll, Jeffrey Gundlach warned.

The economy will suffer a prolonged downturn this year or next, the billionaire investor told Fox Business on Tuesday. Gundlach pointed to "quite concerning" data released in the past month showing the majority of economic sectors are declining and others are growing more slowly.

The DoubleLine Capital founder and CEO also underlined the pain caused by inflation — which soared to over 9% in 2022 and remains well above the Fed's 2% target — and interest rates, which have surged from virtually zero to over 5%.

Consumers have faced a double whammy of higher prices for basics such as food, gas, and housing, while also owing more interest each month on their car loans, credit cards, mortgages, and other debts.

"All of these things are up tremendously, the things you have to buy," Gundlach said, citing car insurance and homeowners' insurance as examples. "Those credit card bills are really starting to add up."

Persistently higher rates will drive some companies to ruin and tank the wider economy, he predicted.

"I think that higher for longer is going to lead to a recession," Gundlach said. "You're not going to take out Tesla necessarily — they might have other problems, but it's not going to be because of interest rates.

"What you take out is the people, small businesses, medium businesses," as they'll run out of cash borrowing at 10% instead of 4%, he said.

Gundlach did note that softening economic data has raised the probability of two Fed rate cuts this year, but he doesn't expect that to stave off disaster.

It's worth emphasizing that the veteran fund manager has been ringing the recession alarm for more than two years.

He predicted last fall that a downturn would occur in the first half of this year, which seems unlikely at this point. Yet Gundlach is one of several experts who see cracks forming in the economy.

• Cambridge University professor Thomas Roulet has hit back at the idea that Gen Z is lazy.
• He said younger people just have a different idea about what work means to them.
• JPMorgan CEO Jamie Dimon said people shouldn't "feel so bad" for Gen Z and millennials this week.

Gen Z is often called lazy — but a Cambridge University professor thinks younger people just have a different idea about what work means.

Thomas Roulet, who teaches organizational sociology and leadership at the Judge Business School, defended the generation's work ethic in a video posted on the university's YouTube channel.

"All generations have been saying that younger generations are lazier at work — allegedly, even Socrates said that," he said, referring to the Greek philosopher's belief that the children of his day were vain and lazy. "If we look at motivational drivers, research shows that across generations, motivational drivers are the same."

Roulet added: "The expectations toward work have changed. Younger generations want growth, purpose, and, at the same time, a work-life balance — and organizations have to rise to meet those demands."

"The third element is the economic context. While a job 30 or 20 years ago would have provided further security, this is not necessarily the case, and it doesn't, for example, help younger generations get on the property ladder."

Roulet's comments are in conflict to some degree with the views advanced by several top executives including JPMorgan CEO Jamie Dimon.

The billionaire said at the bank's investor day this week that he had little sympathy for younger generations because they had better life expectancy and were likely to work fewer hours.

"I don't feel so bad for Gen Z and millennials," Dimon said, adding that his grandparents were Greek immigrants who arrived in the US with nothing but "a shirt on their back."

"Let's put things in perspective a little bit," the Wall Street titan added. "They're going to be working probably 3.5 days a week. They're going to live to 100. They're not going to have cancer. They're going to be in pretty good shape, provided the world doesn't destroy it all with nuclear weapons, which is the biggest risk in the world."

• Neom canceled a desalination project worth $1.5 billion, according to a report.
• It comes as Saudi Arabia reportedly plans on scaling back part of the project. 
• Enowa, a Neom subsidiary, told Meed it's water requirements had evolved. 

A project to build a $1.5 billion water desalination plant in the Saudi Arabian desert city of Neom appears to have been scrapped.

A consortium made up of Neom subsidiary Enowa, Japan's Itochu, and France's Veolia had agreed to develop the plant in December 2022. 

The plan was to create a desalination plant that ran on 100% renewable energy and delivered two million cubic meters of water a day to Neom, or about 30% of the city's projected needs.

The plant was to be based in Oxagon, Neom's industrial zone and the first phase was scheduled for completion next year.

However, sources familiar with the project told Middle East business-trade publication MEED that the joint development agreement for the project had expired and not been renewed.

Detailed reasons for the cancellation are unclear. BI contacted Enowa, Itochu and Veolia for comment.

In a statement sent to MEED, Enowa said Neom's water requirements have evolved over the last year, "leading us to adopt a stepwise approach to expanding capacity."

Under the plans, the desalination plant would have diverted brine, the main waste product in desalination, toward industrial projects instead of discharging it into the sea.

Brine is one of the main pollutants caused by desalination plants.

Earlier in May, Malcolm Aw, a UK energy entrepreneur, said he canceled a $100 million contract to develop renewable energy desalination plants in Neom over human rights concerns.

It's a blow for the desert city. Neom is being built in deserts in the northwest of Saudi Arabia, one of the dryest and hottest parts of the world, meaning that desalination is key to the success of the project.

Planners have said Neom will be an eco-city, running without cars or roads and powered with 100% sustainable energy. It's part of Saudi ruler Mohammed bin Salman's Vision 2030 plan to reorient the country's economy away from the fossil fuels that are the source of its wealth and toward innovation, technology, and tourism.

But In April Bloomberg reported that Saudi Arabia had been forced to scale back plans for the project, which could cost as much as $1.5 trillion. According to the report, The Line, a planned mirrored "vertical skyscraper," may be reduced in size from more than 100 miles to just over one mile.

In an apparent effort to refute the report, the Saudi economy minister, Faisal Al Ibrahim, told CNBC last month that all Neom projects were continuing at the planned scale.

"There is no change in scale. It is a long-term project that's modular in design," he said.

• Netflix's "Buying London" is a reality show about London's luxury real estate market and the agents behind it.
• The show is centered on the super-prime property agency DDRE Global.
• It follows the success of Netflix's other reality real-estate show, "Selling Sunset."

A new reality show, "Buying London," dropped on Netflix on Wednesday, and it's all about London's luxury real estate market.

The show is centered on Daniel Daggers and his team of real estate agents at the property company DDRE Global. Daggers says he's sold over £5 billion ($6.4 billion) of real estate over the course of his 25 years in the industry. This includes a £95 million ($120 million) mansion to hedge fund tycoon Ken Griffin in a previous role, per The Times of London.

He calls himself "Mr. Super Prime," referring to the multimillion-dollar properties sold to ultra-high-net-worth individuals. And London has no shortage of expensive properties or wealthy buyers.

The new Netflix series takes viewers around London's super-prime housing market, showcasing properties in some of the city's most expensive areas, including Mayfair and Holland Park.

Most of DDRE's current London listings cost over £10 million ($13 million), with some stretching over £20 million ($25 million), according to its website.

But it is a reality show — so much of the drama comes from the interpersonal relationships and rivalries between the other agents, who are competing for big commissions. Some agents are familiar with the industry, including DDRE's top agent, Lauren Christy, while others are new to the industry, such as 21-year-old Reme Nicole.

The reviews so far have been harsh. "I hate almost everything about 'Buying London,'" Rebecca Nicholson wrote in The Guardian, "I hate its reverence for billionaires and bad taste." 'It's tired, tone-deaf, and shamefully crass."

"I'm delighted to say it's every bit as ghastly as you would hope," wrote Carol Midgley in The Times. 'I'm delighted to say it's every bit as ghastly as you would hope."

The London version of 'Selling Sunset'

Netflix has had success with reality real-estate crossover shows in the past. "Selling Sunset" proved to be a big hit with viewers after it debuted in 2019, and has since run for seven seasons.

It gave viewers a look at Los Angeles' high-end real estate market — and the agents handling the multimillion-dollar deals. 

And it's also been a success for the real estate agents involved. Mary Fitzgerald, a real-estate agent on "Selling Sunset," previously told BI that she has got more clients since appearing on the show and now sells at higher prices than before. It has meant she now won't sell any house under $2 million, unless as a favor for a friend.

• A Ukrainian commander said his unit was forced to watch as Russia amassed troops across the border.
• He said they weren't allowed to attack them with US-supplied weaponry, per the Times of London.
• If the US had lifted its ban, they could've taken out the troops and stopped an attack, he said.

A Ukrainian commander operating near the Russian border described how his unit watched as Russia amassed a huge force but had to wait for the troops to cross the border to hit them.

"There were a lot of Russians gathering, and we could have destroyed them on the way in, but we don't have many ATACMS, and we have a ban on using them over there," he told The Times of London.

Drago, a special forces commander with Ukraine's Kraken detachment, was redeployed, along with his unit and other special forces troops, in April from the eastern Donbas region to Kharkiv to strengthen Ukraine's forces there, per the Times.

But instead of hitting the Russians, he and his unit were forced to watch as the troops gathered on their side of the border, according to the outlet.

"We had to wait for them to cross," he said, referring to a US policy that bans Ukrainian forces from using US-supplied weapons to strike targets inside Russia.

Since the start of the war, the US and other Western countries have supplied Ukraine with billions of dollars of weaponry, but have long drawn the line on it using them against Russia itself, fearful of escalating the conflict.

The Pentagon and US Army officials have repeatedly stated US opposition to Ukraine using the weapons it has supplied to strike targets on Russian soil.

But the rule cost Drago's unit "dearly," he told the Times, with Russian troops then encircling them and attacking them from the rear.

On May 10, Russian forces ambushed a nearby position occupied by another unit and ambushed Drago's group from behind, the outlet reported.

Drago's six-person crew found itself divided into two groups and quickly encircled, pinned down in a system of trenches with two dugouts, each holding three soldiers.

Drago ultimately called in artillery fire that left at least three Russian soldiers dead, and the Russians retreated, he told the outlet.

According to Drago, "none of this would have happened if we could use ATACMS."

Ukrainian officials have echoed Drago's remarks about fighting with one hand tied behind their backs.

Oleksandr Lytvynenko, Ukraine's Secretary of the National Security and Defense Council, told the Financial Times this week that the US should lift its "absolutely unfair" ban on Ukraine using its weapons to strike targets in Russia, so that it can stop its new offensive in Kharkiv.

Ukrainian President Volodymyr Zelenskyy, meanwhile, told The New York Times that Ukraine's inability to fire US-supplied missiles or weaponry at military targets inside Russia gave the Kremlin a "huge advantage" in cross-border warfare.

Ukraine is negotiating with Western partners to lift such bans, but talks have yielded "nothing positive" so far, Zelenskyy told Reuters on Monday.

• Rebecca Cafiero felt that staying connected to her business meant being on her phone constantly. 
• After deleting Gmail, Slack, and Voxer from her phone, she noticed positive changes in her life. 
• Deleting the apps has helped her spend more time with her kids and improved her focus.

This as-told-to essay is based on a transcribed conversation with Rebecca Cafiero, 44, from Palo Alto, California, about deleting work-related communication apps from her phone. The following has been edited for length and clarity.

Living in Silicon Valley, I see people who are crazily connected to their phones, especially people in startup mode who feel they need to be all-in with their businesses.

I'm a serial entrepreneur. My current focus is a business growth accelerator called "The Pitch Club," which I launched in September 2020. I coach female entrepreneurs on getting more visibility. At the moment, I have three part-time staff.

My team uses Slack to communicate. I use Voxer and text to message clients. Back in 2020, I noticed I would pick up my phone dozens of times during the day to check Slack or emails, feeling like I needed to stay connected to my business. Sometimes, I resented my business because I couldn't get away from it.

What really got me to change things was a moment from two years ago. I was on my phone, and my son, who was six then, wanted me to play a game with him. I kept telling him to wait a minute, and eventually he started crying. I felt terrible. My child needed connection, but I was showing him that my device was more important. I knew it was time to do better.

I started by setting screen limits and eventually deleted work-related communication apps from my phone. It's made me feel better about my parenting and more focused on my work.

I decided to delete work-related communication apps from my phone after experimenting with it at a retreat

I initially set screen time limits on my iPhone so that I couldn't use my communication apps during certain hours of the day. The issue was I could still pick up my phone and press "ignore limit," so it didn't bring significant change.

In October 2023, I attended a fully immersive retreat for entrepreneurs. I usually don't schedule calls during retreats and consider myself out of the office. However, I was in the middle of a situation where I needed to fire one of my clients.

I decided to email her about parting ways, but I knew that if I had Gmail on my phone, I'd be constantly refreshing it under the table, waiting for a response. I wanted to be present at the retreat, so I deleted the app and didn't check my emails until I was back in my hotel room that night.

I noticed I was really present throughout the day because I couldn't check my email. I kept the app off my phone for the rest of the retreat and felt more connected than usual.

When I got home, I deleted Slack and Voxer from my phone. I told my clients I'd be checking emails less frequently and to text me if anything was urgent.

I spend more quality time with my kids

Within the first few days, I felt I had more mental peace and thinking space. I hadn't realized how much space these apps were taking up, but now I had time to listen to podcasts and audiobooks in the time I would have spent scrolling; I got through two or three books in the first 10 days. This productivity has plateaued a bit since then, but I'm still listening to more audiobooks and podcasts than I was before.

I started to feel more present as a mom. Instead of checking my phone while making breakfast, I get stuff done faster, which has created a more enjoyable morning routine for us.

I'm getting my kids out the door earlier and can walk my daughter to school instead of driving her because we aren't rushing as much. The quality time has really strengthened our relationship.

My son and I play a board game almost every morning, and my husband and daughter join sometimes. I didn't think I had time for that previously because my time was getting sucked up with checking my phone.

I reply to work messages on my desktop and feel much more focused

I haven't really experienced any downsides to my decision. My team and clients all think it's been a great move for me, and several have been inspired to follow suit.

I used to wake up and check my emails immediately, but I no longer let communication apps control my day.

I've adjusted by setting dedicated time slots in my calendar for when I'm going to reply to people using my desktop. Usually, it's 30 minutes during the day and 30 minutes at the end of the day for responding to emails and planning the next day's priorities. I don't often check my apps outside those times. Instead of checking my emails multiple times an hour like I used to, I probably check it four or five times a day.

I used to think I was great at multitasking, but I've realized all I was doing was switching my focus between tasks, so I was always in a state of shallow focus. Now that I can have a set block solely for replying to emails, I feel more intentional about what I'm doing.

I used to reply to messages on my phone or computer during calls with my team members, which was rude — I'm much more present now.

As business owners, we often tell ourselves we need to be constantly available to solve things, but it's not helping our happiness, and it's disconnecting us from the reasons we work in the first place.

I've since deleted about a third of the apps I used to have on my phone, as I felt I wasn't even using them. I still have some apps I use for work purposes, like ChatGPT, Google Drive, and Calendly.

This is now how I run my business and I have no desire to go back to being on my phone 24/7.

• Cities remain at the forefront of economic growth. 
• Six US cities have been ranked as having world-leading economic vitality by the Oxford Economics Global Cities Index.
• But while they perform well on economic factors, the cities fall down on governance and quality of life. 

News of the housing crises, worker exoduses, and budget slashing tells a tale of the slow decline of US cities.

However, according to the latest Global Cities Index from research group Oxford Economics, six US cities are still the leading "engines of the global economy."

New York, Los Angeles, San Jose, Seattle, San Francisco, and Dallas topped the index's economics category.

The index, produced annually by the economic advisory firm Oxford Economics, ranks the largest 1,000 cities by five categories: economics, human capital, quality of life, environment, and governance.

The prosperity of cities is often viewed through the lens of their busy financial centers, with New York, London, Singapore, and Hong Kong typically leading global rankings.

However, Oxford Economics' index purposefully assesses cities by a range of factors contributing to overall economic vitality and the potential for sustained growth and development.

GDP growth, employment growth, economic stability, GDP per person, and economic diversity were all measured in addition to overall GDP size.

"The cities topping the Economics category are the engines of the global economy. In this category, American cities dominate," the report states.

New York excelled in the economics category with a perfect score of 100, followed closely by Los Angeles. San Jose, the largest city in Silicon Valley, came in third place and was highlighted as having the highest GDP per person globally.

A less expected entrant in the top 10 was Dallas, which ranked sixth globally for economic vitality.

The Texan city has experienced the largest numerical population increase of any US metro area in recent years, and more than 175 companies have moved their headquarters there since 2010, setting it up as one of the economic powerhouses of the South.

London, Paris, and Tokyo are the only three non-American cities to crack the top 10. They trail the US cities due to lower levels of GDP per person, according to the report.

Chicago also made it onto the list for its economic vitality, coming in eighth after London.

However, while the six US cities may score high in economics, they barely appear in the top rankings across the other four categories: human capital, quality of life, governance, and environment. 

Cities in Europe, New Zealand, and Brazil bettered them on factors like income equality, life expectancy, air quality, civil liberties, and business environment.

Nonetheless, the report noted that "cities in North America are all clumped at the higher end of the rankings."

New York, San Jose, Seattle, Los Angeles, and San Francisco ranked in the top 10 of Oxford Economics' overall list of top global cities, with New York coming out on top.

• Saudi Arabia's Neom project is one of the world's most ambitious ventures.
• Designs for the megaproject include a city between twin mirrored skyscrapers and a desert ski resort.
• Some experts have expressed doubts that Neom will live up to its promises.

Saudi Arabia has grand plans for its Neom megaproject.

It's been touted as one of the most ambitious in the world and is expected to cost the Kingdom at least $500 billion — with some estimates reaching up to $1.5 trillion.

The city is part of Saudi Crown Prince Mohammed bin Salman's Vision 2030 project, which plans to revolutionize the country's oil-dependent economy for a post-fossil fuel future. However, some critics have cast doubt on whether the project will be completed as planned.

Recent reports indicate Saudi Arabia may be facing difficult questions about the megaproject's financial, environmental, and humanitarian impacts.

From a year-round ski resort in the desert to a network of futuristic robots, here are the some of the most ambitious aspects of Neom.

1. A city inside twin mirrored skyscrapers

The Line is perhaps the best-known element of Neom thus far.

Designs for the city include twin 1,640-foot-high mirrored skyscrapers positioned 656 feet apart.

According to Neom's website, the city will have no roads, cars, or emissions and run only on renewable energy.

The first stage of the project was due to be finished by 2030, but recent reports suggest developers may be facing financial difficulties.

Planners have also raised environmental and design concerns, including the risk the mirrored skyscrapers pose to migrating birds.

2. Swim lanes for commuters

The megacity is also considering including swim lanes for commuters, according to a Neom "style catalog" seen by Bloomberg.

Neom planners are reportedly considering including canals with swimmable water, which would allow residents to swim to work or school.

Jan Paterson, Neom's managing director for sport, described the idea to Bloomberg in 2022, claiming a sixth grader living in Neom could carry a waterproof backpack and swim all the way to school.

3. A year-round ski resort

The desert city is also set to have a year-round ski and adventure resort called Trojena. Located in the mountains of the Tabuk region, it will host more than 100,00 feet of ski slopes, according to Neom's website.

Planners say they will use "a combination of real and artificial snow to create a truly magical place for alpine sports all year round."

4. A robot and AI network

Neom has grand plans to be the most high-tech city in the world.

CEO Nadhmi Al-Nasr claimed in 2017 that the project would host more robots than people.

High-tech plans for the megacity range from "digital twins" that will mirror residents' biometrics and health data, to humanoids at hotel check-in desks.

Neom will also feature an "immersive, mixed-reality metaverse," according to its website.

5. A suspended infinity pool

Neom is planning to host the world's longest infinity pool.

Stretching some 1,500 feet, the pool would be suspended 220 feet above the sea on the southern end of the Gulf of Aqaba in Treyam — one of Neom's recently-announced regions.

Planners have described it as a "premier resort" designed for "adventure and endeavor." The region will also offer other activities such as sailing, diving, and other water sports.

6. Mixed-reality theme park

Neom also plans to build theme parks that integrate virtual and physical experiences.

The planned attractions are aimed at offering a personalized, immersive gaming experience that blends with real-world interactions.

Neom's managing director of media, entertainment, culture, and fashion, Wayne Borg, told Wired in April 2021: "For gamers, it's taking their online experience and extending seamlessly into a mixed-reality theme park experience. These will be hyper-personalized, transformative experiences that don't exist today."

7. Rewilding projects

Neom officials plan to protect 95% of the sites' land and sea as nature reserves.

This means embarking on an extensive rewilding program, including restoring natural water flows to the area.

Paul Marshall, Neom's chief environment officer, told Wired the land in question has a long history of use — and overuse.

"Large parts of the landscape are quite heavily over-grazed by camels and goats, and the marine waters are quite over-fished. And so we don't want to preserve — we want to actively restore," he said.

Saudi Arabia has been under further scrutiny after a BBC News investigation found that forces had been authorized to kill residents to clear the way for the megacity.

• A Singapore Airlines passenger died Tuesday after a flight was hit by turbulence.
• Serious injuries due to turbulence are extremely rare, per FAA data.
• The incident also serves as a reminder for passengers to wear their seatbelts whenever possible.

The dangers of turbulence were made apparent on Tuesday when Singapore Airlines announced a passenger died on board a flight.

Geoff Kitchen, 73, had a heart condition, according to officials at Bangkok Airport, where the flight was diverted. 71 others were injured on the flight, six of whom are in critical condition.

It marks one of the worst turbulence incidents in recent years. It is also the first death on a Singapore Airlines flight since 2000. The carrier is regarded as one of the world's best, one of just 10 worldwide to be ranked five stars by Skytrax.

The National Transportation Safety Board announced it would send five people to support the Singaporean investigation. It has jurisdiction because an American plane, a Boeing 777, was involved.

"NTSB has long been concerned about turbulence-related accidents and incidents," it said in a post on X.

Serious injuries due to turbulence are very rare.

According to data from the Federal Aviation Administration, just 163 people were seriously injured by turbulence between 2009 and 2022 — an average of less than 12 people a year.

The majority, 129, were crew members. In 2022, only four passengers were seriously injured by turbulence.

For context, the FAA oversees more than 16 million flights in US airspace every year.

Not wearing a seatbelt is the biggest risk factor. That's why crew members are more susceptible because they could be in the middle of service when turbulence strikes. Alongside its data, the FAA pointed out that its regulations require passengers to fasten their seatbelts when the sign is illuminated.

However, sometimes, there isn't enough time between the sign turning on and the onset of turbulence.

Andrew, a passenger on the Singapore Airlines flight, told the BBC that the plane "suddenly dropped" just moments after the seatbelt sign came on. It's a reminder that passengers should wear a seatbelt whenever possible.

While severe injuries due to turbulence remain incredibly rare, the number of incidents involving turbulence has increased over the past several decades, largely due to alterations in wind dynamics linked to the climate crisis.

According to a 2023 study by researchers at the UK's University of Reading, there were around 17.7 hours of severe turbulence over an average point above the Atlantic Ocean in 1979. By 2020, this had jumped to 27.4 hours, an increase of 55%.

• Massachusetts' new tax on the wealthy generated $1.8 billion, exceeding expectations.
• Approved in 2022, the tax added 4% on incomes over $1 million.
• The increased revenue comes amid high-income earners leaving the state.

Massachusetts' new tax on the wealthy has become a bigger boon for the state than expected. It could help make up for the loss of high-income earners in recent years.

The state announced on Monday that the tax brought in $1.8 billion in the first three quarters of the fiscal year, blowing away predictions for the entire year, according to the Boston Globe. The additional income for the state is already $800 million more than what lawmakers had budgeted to spend from the new tax.

The new tax on the wealthy, dubbed the "millionaires tax," was approved by voters in 2022 and added an additional 4% tax on those earning more than $1 million.

According to the Boston Globe, after the tax was approved, the state initially estimated it would generate $1.4 to $1.7 billion in the first year. However, the state budgeted just $1 billion for the first year out of concerns that the impact of the new tax could be unreliable in the first year.

This new windfall for the state comes despite concerns that high-income earners would leave the state, exacerbating a problem seen in Massachusetts even before the new tax.

A study by the Pioneer Institute published in 2023 showed that Massachusetts saw a net loss of 25,200 tax filers in 2021. Those who left the state had an adjusted gross income of $4.3 billion greater than those who moved in. The change in the number of tax filers increased from the net loss of 20,400 tax filers in 2020 and an adjusted gross income of $2.4 billion.

Those who left tended to be middle- to high-income earners, per a study by Boston Indicators published in April. Most were on the high end, defined "as a family of four with an income of at least $140,000 — five times the poverty level in 2022.

However, a closer look at the data shows Massachusetts' retention of millionaires is doing just fine. According to the IRS, Massachusetts tax filers with an adjusted gross income of at least $1,000,000 grew by nearly 10,000 in 2021, the year before the new tax was approved.

The real test for Massachusetts comes now as we wait and see if the highest earners start to dwindle moving forward and how much that might impact the revenue generated by the "millionaires tax."