US retail sales rose 0.9% in May, exceeding forecasts, driven by strong auto purchases and service station receipts amid higher gas prices. Despite consumer anxiety over inflation, spending remains resilient, though a slowdown is anticipated as tax refund cushions deplete.
AI startup Anthropic is preparing for a potential $1 trillion IPO but faces government opposition. The US Commerce Department has blacklisted its new AI models, Fable 5 and Mythos 5, and the Department of War has migrated workflows away from its 'Claude' AI due to national security and military application concerns.
The US has reportedly delayed adding Chinese AI startup DeepSeek to a trade blacklist, despite approval last year. DeepSeek's low-cost AI model and alleged support for military operations raised concerns among US officials and AI companies.
India's trade map has been altered by the West Asia conflict. Oman rose to 10th from 30th in imports, driven by energy, while UAE slipped. Singapore overtook China as India's 3rd largest export destination.
Anthropic executives will meet with the US Department of Commerce on Monday in Washington DC to discuss AI safety concerns, specifically regarding a potential "jailbreak" vulnerability in their AI tool, Fable 5/Mythos 5. This follows a US government prohibition on foreign access to the technology.
Anthropic has disabled its new Mythos 5 and Fable 5 AI models for all customers following a US Commerce Department directive. The directive cites concerns over a potential jailbreak that could bypass safeguards related to cybersecurity, chemistry, and biology, impacting national security.
New agreements between the companies and the Commerce department build on Biden-era pacts.
Google DeepMind, Microsoft, and Elon Musk's xAI have agreed to allow the US government to review new AI models before they're released to the public. In an announcement on Tuesday, the Commerce Department's Center for AI Standards and Innovation (CAISI) says it will work with the AI companies to perform "pre-deployment evaluations and targeted research […]
Google, Microsoft, and xAI have agreed to provide the US government with early access to their AI systems, including models with reduced safeguards, for national security risk assessment by the Commerce Department's CAISI.
The US economy expanded at a 2% annual rate in the first quarter of 2026, rebounding from the previous quarter's weak performance after a 43-day federal government shutdown. Strong government and business investment offset slower consumer spending and a weak housing market, but rising energy prices and uncertainty from the Iran conflict are clouding the economic outlook.
The Commerce Department is expected to release a report showing solid US economic growth for Q1 2026, despite headwinds from the ongoing war with Iran.
