Klaus Schwab’s abrupt departure from the World Economic Forum is said to have complicated carefully laid plans to persuade Christine Lagarde to take the helm in a seamless transition.

Schwab, 87, founded and led the storied organization for more than half a century. He had initially intended to stay on until early 2027, the same year Lagarde’s term as European Central Bank president comes to an end. But he left last month amid accusations of financial misconduct and a clash with the Forum’s directors.

Christine Lagarde Photographer: Liesa Johannssen/Bloomberg

Schwab denies any wrongdoing. But his exit effectively leaves the WEF without a clear choice of leader at a pivotal moment. Whomever is chosen will have to ensure the WEF’s flagship gathering in Davos remains an event of choice for the world’s financial and political elite. They also may need to address allegations of sexism and bullying from the Schwab era while at the same time keeping CEOs paying membership fees that bring in hundreds of millions of dollars every year.

All of this upheaval comes at a critical time for the WEF. It has in recent years championed causes like diversity and inclusion as part of its self-proclaimed commitment to “improving the state of the world.” But as US President Donald Trump actively seeks to dismantle DEI projects, scores of companies are cutting back on such initiatives. —David E. Rovella

On the new episode of Trumponomics: Stephen Moore of the conservative Heritage Foundation argues Trump and the GOP Congress are on the right path. Listen on Apple, Spotify, or wherever you get your podcasts.

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US factory production declined in April for the first time in six months, marking a soft start to the second quarter for manufacturers encumbered by higher import duties. The 0.4% decrease in manufacturing production followed an upwardly revised 0.4% gain a month earlier. Excluding autos, factory production fell 0.3% in April. The retreat in manufacturing, which accounts for three-fourths of total US industrial production, followed a healthy advance in the first quarter as many customers boosted orders before the brunt of Trump’s tariffs took effect.  

Markets rose on Thursday but trepidation remained amid concern over when tariff-induced inflation will finally hit—if it does. The S&P 500 rose for a fourth straight day, but growth in retail sales decelerated notably and confidence among homebuilders slumped. “If you are in the stagflation camp, these data aren’t confirming your thesis,” said Jamie Cox at Harris Financial Group. “While growth is slowing, disinflation remains intact.”

So what did Warren Buffett do before his big announcement? It turns out Berkshire Hathaway made no major purchases during the market nosedive that preceded Trump’s trade war, choosing instead to whittle down or sell off holdings in financial stocks.

In the last year of his tenure as Berkshire’s chief executive, Buffett exited his position in Citigroup. The firm also shrank its pile of Capital One Financial shares, as well as its longtime stake in Bank of America. Buffett, 94, started cutting his BofA stake in July last year, without providing any explanation for the move. The firm now owns 8.3% of the US lender and is no longer its biggest shareholder.

Buffett largely refrained from making large acquisitions in recent years, instead building a cash pile that reached nearly $350 billion by the end of March. At the conglomerate’s annual meeting this month, the billionaire said the recent market downturn was “really nothing,” pointing to times in Berkshire’s history when his company’s stock lost half of its value in short spans.

Hackers are said to have had near-constant access to some of Coinbase Global’s most valuable customer data since January. The largest US crypto exchange disclosed earlier on Thursday that hackers bribed customer representatives to steal the data and then demanded a $20 million ransom to delete it. Coinbase began noticing unusual activity from some of these representatives in January, the company confirmed in an interview with Bloomberg News.

Hacks have long plagued the crypto industry, thanks to its heavy reliance on user anonymity and complex digital software. Around $2.2 billion was lost to such incidents in 2024, according to researcher Chainalysis. Operating under the threat of attack has been particularly painful for crypto exchanges, which are often major targets and face high ongoing costs to maintain tight security.

Delta Air Lines will stop selling tickets under the “basic economy” label that many large carriers have adopted in recent years to compete with no-frills offerings of discount competitors. The airline on Thursday announced a reorganization of its fare categories aimed at giving passengers more options within each cabin section, with varying features such as assigned seats, the ability to change flights or loyalty benefits. 

The change is part of a strategy Delta detailed last year to respond to a growing preference for premium products. Some carriers have been focusing recently on more-lucrative upscale fare categories, deemphasizing the base-level fares that had been popularized by the likes of Spirit Airlines and spread to legacy carriers. But the risk of customer confusion may make the entire endeavor problematic.

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