- In today’s CEO Daily: Diane Brady talks to Synopsys CEO Sassine Ghazi.
- The big story: More letters, more tariffs.
- The markets: Low drama.
- Analyst notes from Macquarie on the “fiscal capture” of tariffs, Wedbush on woes at ASML, and Wedbush’s Q2 tech earnings preview.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Synopsys CEO Sassine Ghazi just did something that’s making jaws drop: He convinced regulators in China and the U.S. to approve the company’s $35 billion acquisition of Ansys that’s set to close today. The reaction from fellow CEOs, he told me: “How did you get one of the most complex deals done in such a complex time?”
With tensions high, the business case for bringing together two U.S. tech companies making products critical for Chinese clients wasn’t going to sell itself. “I’ve been to China maybe eight times this year,” he said. “I found myself being a U.S. ambassador to China, explaining the Synopsys position and understanding what they care about. And, back in the U.S., representing the importance and need for us as a global company to continue leading with innovation.”
The tough part wasn’t the antitrust review of a $6.1 billion-a-year leader in chip design’s bid to buy a $2.5 billion-a-year leader in engineering software, he said. It was negotiating “access to the technology in the event things happen between the two countries.” What helped was “overwhelming customer support” and a recognition among Chinese regulators that “if they were too difficult or too constraining, it’s not good for China.” (The Federal Trade Commission had granted conditional approval in May.)
His advice for others trying to win over authorities in both markets? “From the beginning, the message was consistent with the U.S. and with China: I’m not a politician. I represent a global company with opportunities that we see across every region,” he said. “With China in particular, I believe they have a great opportunity to take their strength in manufacturing and take it to the next level of intelligent manufacturing. And the U.S. has many, many other strengths with compute, software applications, etc. It’s important for Synopsys to have access to both markets to continue leading.”
And it mattered that he went to China to speak with officials himself. “I was not getting an update once a month on how things are going. Did I have moments where it was depressing, leaving a meeting and seeing all kinds of surprises happening out of our control? Of course. At the end of May, we had a complete blackout and restriction on selling to China. That was a tough moment. I happened to be in China the week after, having to explain it, not knowing how long these uncertainties will be. I never doubted we’d get it done, but I started doubting the timing.”
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
150 more countries will get tariffs of 10%-15%
President Trump said letters would be sent to each government informing them of the “deals” they would receive. He also said he was “indifferent” to negotiating further with Europe.
Trump claims he has changed the formula for Coca-Cola
The president said the company had agreed to use cane sugar in its recipe moving forward instead of corn syrup. The company did not immediately confirm the change.
JPMorgan plans data fee that could hit crypto
JPMorgan’s plans to charge fees for access to customer account data could make it economically impossible for many consumers to use stablecoins and crypto, according to three industry executives, who declined to speak on the record for fear of retaliation. “This would cripple the crypto industry,” one of the execs said.
How Carney approaches Trump
Canadian Prime Minister Mark Carney has a remarkable way of keeping President Donald Trump calm and collaborative—so much so that he’s been dubbed the “Trump whisperer.” Here’s how he does it.
Markets fluctuate on Powell moves
Meanwhile, President Trump maintained on Wednesday that he was “highly unlikely” to fire Fed Chair Jerome Powell despite reports this week of a letter Trump had drafted to do so. Markets dropped earlier in the day, but finished slightly higher on Wednesday than where they started.
HPE reaches deal with Elliott Management
Hewlett Packard Enterprise will give activist investor Elliott Management as many as two board seats as part of a new agreement following the latter’s criticism of the struggling company. The pressure on HPE CEO Antonio Neri won’t stop, however, and he could still lose his job.
That Epstein thing won’t go away
In a long post on Truth Social, the president insisted that anyone calling for the release of further information held by the government regarding Jeffrey Epstein was participating in a “hoax.” He said he wanted a decisive break with his own supporters who continue to push for more transparency around what the Department of Justice knows about the late billionaire financier and how he gathered his fortune: “I don’t want their support anymore!” Context: Epstein claimed he and Trump were friends for many years.
The markets
S&P 500 futures were flat this morning, premarket. The index closed up 0.32% yesterday. STOXX Europe 600 was up 0.7% in early trading. China’s CSI 300 Index was up 0.68% this morning. Japan’s Nikkei 225 was up 0.6%. The UK’s FTSE 100 was up 0.4% in early trading. Bitcoin is holding on at the $118K level.
From the analysts
Macquarie on the “fiscal capture” of tariffs: “Traders are staying complacent in the face of the new ('August 1') US import tariffs; they may reason that Pres. Trump doesn't want to preside over another market crash. But there's also the more ominous possibility that Trump has "moved on" from using tariffs to extract concessions, and is now using tariffs to boost tariff revenues. If that's the case, August 1 may see a flood of new higher tariffs, as well as retaliation. This "fiscal capture" of tariff policy shouldn't seem peculiar. After all, there are a myriad of reports that Trump's desire to replace the Fed's Chair also comes from a need to "fiscally capture" monetary policy, thus reducing the federal government's interest burden should debt levels rise,” per Thierry Wizman.
Wedbush on woes at ASML: “View: ASML's preliminary remarks highlighted the impact geopolitical tensions and threatened US tariffs are having on future business prospects. While ASML's bookings (~25% ahead of prior expectations) seemingly point to solid near-term conditions; management pointed to a lack of clarity around future results given the potential impact of policy decisions. ASML management noted for instance a 30% tariff on European goods could for instance lift the price of an EUV tool from €250 to €325). As such, management suggested they could not at this juncture confidently forecast revenue growth in 2026 (a result that in turn is weighing heavily on the stock this AM),” per Matt Bryson and Antoine Legault.
Wedbush on Q2 tech earnings preview: “In our view the Street is underestimating the underlying AI driven growth ahead and we expect a very strong 2Q tech earnings season over the coming weeks that further validates our bullish thesis led by Big Tech stalwarts … Our top 5 Wedbush tech picks for the second half of the year are Nvidia, Meta, Microsoft, Palantir, and Tesla,” per Daniel Ives et al.
Around the watercooler
One of the most critical AI companies in the world just said it ‘cannot confirm’ growth in 2026, wiping out $30 billion by Nick Lichtenberg and Fortune Intelligence
JPMorgan’s plan to charge for data could ‘cripple’ crypto and fintech startups, execs warn by Luisa Beltran
CEO of $14 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea by Preston Fore
With all eyes on Apple’s next earnings report, one research firm calls on Tim Cook to step aside by Marco Quiroz-Gutierrez
Leaked message show Marc Andreessen blasting elite colleges over DEI: ‘My people are furious and not going to take it anymore’ by Christiaan Hetzner
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
