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Europe
BBC Business

Anthropic suspends new AI tools over US government security concerns

Anthropic has suspended its powerful new AI model after US authorities raised security concerns just days following its public release. In a statement published on its website, Anthropic said it was ordered to suspend foreign nationals from using Claude Fable 5, a program that the company self-described as "too powerful". "The net effect of this order is that we must abruptly disable Fable 5 and Mythos 5 for all our customers to ensure compliance," the company wrote. Anthropic and the Trump administration are involved in a separate ongoing lawsuit over an order to stop government agencies using the company's AI tools. The BBC has approached the US Department of Commerce for comment. Anthropic said US national security authorities had not identified specific concerns. "Our understanding is that the government believes it has become aware of a method of bypassing, or 'jailbreaking' Fable 5," the company said. Jailbreaking is a process of getting past software restrictions designed to protect a cyber network, allowing hackers to access sensitive information or unblock features. "We reviewed a demonstration of this specific technique being used to identify a small number of previously known, minor vulnerabilities," Anthropic said. "These vulnerabilities all appear relatively simple, and we have found that other publicly-available models are able to discover them as well without requiring a bypass." Ahead of the release of Claude Fable 5, the company touted various "safeguards" it had implemented to prevent cyber hacking. Finance, technology and government leaders had expressed concerns about its public rollout, following a private release in April for previewing and testing vulnerabilities within its own system. Anthropic said it enabled pre-release access for a handful of organisations because the tool was so intelligent that it could be dangerous because of its ability to exploit or hack computer systems.

Anthropic suspends new AI tools over US government security concerns
Asia
The Economic Times

Lenskart Solutions among top 5 midcap stocks with highest mutual fund buying in May

These top 5 mid cap stocks that witnessed highest net buying by mutual funds in May. Here is a detailed breakup, according to a report by Motilal Oswal Financial Services. Lenskart Solution witnessed the highest net buying in mutual funds in May. The value change in May was Rs 86.7 billion and on a monthly basis the value change was 59.4%. The percentage of midcap value was 1% JSW Energy witnessed a net buying in mutual funds in May. The value change in May was Rs 73.9 billion and on a monthly basis the value change was 59.4%. The percentage of midcap value was 0.9%. Billionbrains witnessed a net buying in mutual funds in May. The value change in May was Rs 86.2 billion and on a monthly basis the value change was 21.5%. The percentage of midcap value was 1%. Yes Bank witnessed a net buying in mutual funds in May. The value change in May was Rs 38.3 billion and on a monthly basis the value change was 57.1%. The percentage of midcap value was 0.5%. Premier Energies witnessed a net buying in mutual funds in May. The value change in May was Rs 56.4 billion and on a monthly basis the value change was 36.6%. The percentage of midcap value was 0.7%.

Lenskart Solutions among top 5 midcap stocks with highest mutual fund buying in May
Asia
The Economic Times

NFO Watch: 3 mutual funds will open for subscription this week. Check dates and key details

Three new mutual funds will open for subscription this week. Fund houses launch new schemes to complete their bouquet of offerings. Here is a detailed breakdown. (Source: ACE MF) The data further showed that among these three funds, two are passive funds and one is an actively managed fund. Tata Multi Sector Passive FoF will open for subscription on June 22 and close on July 6. The minimum investment amount is Rs 5,000. HDFC Nifty Auto Index Fund will open for subscription on June 22 and close on July 3. The minimum investment amount is Rs 100. JM Multi Asset Allocation Fund will open for subscription on June 24 and close on July 8. The minimum investment amount is Rs 5,000. Always choose a fund that suits your risk appetite, investment horizon and financial goals. Your decision should not be based on where others are investing.

NFO Watch: 3 mutual funds will open for subscription this week. Check dates and key details
Europe
The Guardian

Elon Musk on track to become world’s first trillionaire today as SpaceX lists on US stock market – business live

Good morning. Elon Musk’s SpaceX will touch down on the US stock market today after successfully conducting a record-breaking initial public offering, but will its shares head towards the moon? Shares in the rockets-to-satellites-to-AI company will begin trading in Wall Street today, after SpaceX raised $75bn through its IPO. The listing will put SpaceX among the largest public companies, and could see Musk declared the world’s first trillionaire later today. Last night, SpaceX announced it had has raised $75bn in a record-breaking initial public offering, which values the company at $1.77tn. It successfully sold 555,555,555 shares of its Class A common stock, at $135.00 per share. Banks underwriting the deal have also been given an “over-allotment option” to buy an extra 83.3m shares, which would pump up the size of the IPO to about $86bn. SpaceX attracted orders for more than three times the amount on offer, the Financial Times reports – with strong demand from institutions and also retail investors. That could help propel SpaceX’s shares up today, as those who missed out in the IPO (or didn’t get as many shares as they wanted) try to get on board. This strong demand came despite concerns that the company was overvalued – being sold at 92 times last year’s revenues (a hefty valuation). Investment research group Morningstar claimed earlier this week that SpaceX was worth only $63 a share – less than half the IPO price of $135 – and warned there is “a major disconnect between market expectations and underlying fundamentals”. Michael Field, the chief equity strategist at Morningstar, suggests investors should sit out the IPO and wait for “a more attractive entry point down the line”.

Elon Musk on track to become world’s first trillionaire today as SpaceX lists on US stock market – business live
Asia
The Hindu BusinessLine

Bengaluru’s start-up ecosystem: Aiming for global top five by 2030

The latest global start-up ecosystem report has brought both validation and a clear roadmap for Karnataka’s digital growth. With Bengaluru firmly holding its position among the top 15 start-up hubs globally and ranking second in Asia for its ecosystem cluster performance, the focus has now shifted to sustaining this momentum. BV Naidu, Chairman of the Karnataka Digital Economy Mission (KDEM), weighs in on what the report signifies, the critique surrounding talent and funding, and why a copy-paste blueprint from Silicon Valley will not work for India. How do you view the findings of the latest report, particularly regarding areas of improvement and what has already been achieved? We have been engaging with this report for the last two years. Whenever such a report comes out, it becomes a little benchmark for us to see how well we are performing, what needs to be improved, and where we are doing well. I look at this report more as a reflection of what we are doing right and what needs to be improved. Over the past year, we have maintained our global ranking more or less at the same level, which is a significant achievement. In Asia, we are number two in cluster performance, which signals very well. If you look at the specific parameters contributing to this ranking, we scored nine out of ten on the performance of the overall cluster. Secondly, in terms of R&D, we did much better than Silicon Valley regarding patents and the overall R&D ecosystem. These are areas where we have performed remarkably well on a global scale. The report highlights some gaps as well. Where does the ecosystem need to step up? There are two or three areas we need to further improve. One is local market access for start-ups, which we will be focusing on moving forward. The second is funding access, which we are continuously working to improve. However, the report gave us a score of four out of ten for talent. We need to look closely at what exactly made them give such a low marking for talent, compare it with what was there last year, and focus heavily on that this year. Improving talent and local market access will be key to helping us scale up further. Bengaluru’s software engineer salaries remain significantly lower than global standards. Is affordable talent still an advantage, or does it risk a brain drain where people relocate for better pay? The talent is affordable, but the situation globally is changing. I just came back from Silicon Valley, and the situation is not that great there either. Our quality talent availability in India, even though they are paid less, remains competitive to global wages—even if it is much lower than global averages. With everything we have put in place over the last few years, we have done well and will continue to do well. I do not see this causing a major problem for our ecosystem.

Bengaluru’s start-up ecosystem: Aiming for global top five by 2030
Europe
BBC Business

US inflation surges to three-year high of 4.2%

US prices in May rose at their fastest rate in three years, with inflation surging to 4.2%. The rise, from 3.8% a month earlier, was largely driven by rising energy costs, the Bureau of Labor Statistics (BLS) said. It marked the third month in a row the Consumer Price Index (CPI) has risen, with households increasingly feeling the strain of the US and Israel's war in Iran. Higher inflation raises the likelihood of the US Federal Reserve raising interest rates in a bid to curtail spending. The last time inflation was higher was in April 2023, when the US was still grappling with the fallout from the energy shock sparked by Russia's invasion of Ukraine. Overall energy bills including gas and electricity were almost a quarter higher in May than a year earlier, with petrol responsible for much of the increase. According to separate figures from motoring group the AAA, the average price of a gallon of regular petrol in the US is currently $4.15, a sharp increase from $2.98 on February 28, when President Donald Trump launched strikes on Iran. In response to the strikes, Iran has effectively shuttered the crucial Strait of Hormuz waterway, typically responsible for shipping around a fifth of the world's oil and gas which has resulted in a surge in prices. Elsewhere, the BLS pointed to the increasing cost of plane tickets, personal and medical care, recreation and communication. The CPI is a measure of how much prices have risen in a given month compared to the same month a year prior. The Fed's long-term inflation target is 2%. May's inflation increase captures the challenge facing President Trump and the Republicans ahead of November's midterm elections. Economists have warned that, even with a swift resolution to the war, it could take until 2027 for the the normal flow of goods through the Strait of Hormuz to be restored.

US inflation surges to three-year high of 4.2%
North America
CNBC Finance

How pandemic car shortages are still making new and used cars expensive

The shockwaves of the Covid-19 pandemic are still hitting the U.S. car market and pushing prices up, even for exceptionally old cars. The pandemic dealt a severe blow to the total supply of new cars, which has rippled down to the used market. About 8 million vehicles that would have been made for U.S. buyers during those years never were, largely due to production shutdowns and supply shortages, said Jeremy Robb, chief economist for Cox Automotive. Automakers faced with curtailed production weighted their lineups toward money-making high-end vehicles, a strategy they have largely continued. These factors have been pushing up prices for everyone — even customers buying decade-old used vehicles. "I think it's kind of the new normal outside of a big economic impact," Robb said. "Supply is not getting a lot better over the next three to four years." About 16.2 million cars were sold in 2025, up from the pandemic-era low of 13.8 million in 2022, according to the U.S. Bureau of Economic Analysis. Cox is forecasting about 15.8 million vehicles will be sold in 2026, while JD Power is predicting 16.3 million. Volumes were already dropping before the pandemic set in. The auto market is historically cyclical, so sales go up and down. But JD Power Senior Vice President Tyson Jominy said the U.S. auto industry has sold roughly 16 million fewer vehicles than it would have if annual sales had held at the 2016 record of 17.5 million. That is about a year's worth of volume gone — about half of it since the pandemic. Fewer vehicles coming to the new market have constrained supply in the used one. "A new vehicle sale is the marble at the top of the mousetrap game," Jominy said. "And when you drop that marble, it's going to go through all the chutes and ladders all the way down to the bottom." In addition to tighter supply, automakers and dealers have also cut back on industry practices like leasing and incentives because supply was so short. "Leasing is really expensive for an OEM," Robb said, referring to the acronym that stands for original equipment manufacturer, another name for automakers.

How pandemic car shortages are still making new and used cars expensive
Asia
The Hindu BusinessLine

Need to further strengthen women's contribution to make India a developed nation by 2047: Mandaviya

Labour and Employment Minister Mansukh Mandaviya on Saturday stressed that women's contribution to Indian politics, economy and decision-making system should be further strengthened to achieve the goal of becoming a developed nation by 2047. Addressing a conference organised by the realtors' body Naredco's women wing, the minister said the government has taken various measures for women's empowerment over the last 12 years, and highlighted the passage of the Women's Reservation Bill in Parliament. Mandaviya noted that Indian women have historically played an important role in nation-building. "It is the need of the hour that women should contribute more in the Indian economy, politics and decision-making system," he said at the 5th Naredco Mahi Real Estate Convention here. Addressing the event, former Union minister Smriti Irani asked the association's Women wing 'Naredco-Mahi' to help women realise their potential to have home ownership. She noted that women should have access to the housing finance ecosystem so that they can own properties. Irani said there is a need to increase women's participation in the real estate sector. Naredco Mahi President Smita Patil spoke about the initiatives taken by the women's wing to increase female participation in the sector. Patil said it is helping in imparting skill training, besides promoting green buildings and water conservation. At the event, real estate consultant Square Yards released a report, 'Square Yards Green Living Index'. The index introduces a 100-point scoring model for evaluating housing projects across resource efficiency, health and comfort, safety and resilience, and connectivity. Vivek Aggarwal, Co-founder & CTO, Square Yards, said, "Sustainability cannot become mainstream unless it becomes measurable, transparent, and easily understandable for consumers."

Need to further strengthen women's contribution to make India a developed nation by 2047: Mandaviya
Europe
The Guardian

After SpaceX’s huge IPO, Americans’ financial future will be bound to AI

The so-called ‘magnificent seven’ tech goliaths already account for more than a third of the S&P 500’s market value. Illustration: Alvaro Dominguez/Guardian Design/Getty ImagesView image in fullscreenThe so-called ‘magnificent seven’ tech goliaths already account for more than a third of the S&P 500’s market value. Illustration: Alvaro Dominguez/Guardian Design/Getty ImagesUS economyAnalysisAfter SpaceX’s huge IPO, Americans’ financial future will be bound to AIEduardo PorterThey’re about to get more AI rammed down their throats, stuck into their pension plans and investment portfolios Americans are growing worried about what artificial intelligence portends for their futures. Eight in 10 Americans report concern over AI, compared with a third who report being excited, according to a recent Quinnipiac poll. More than half think it will do more harm than good in their daily lives. Seven out of 10 think it will reduce the number of available jobs. Skeptical though they may be, they are about to get more AI rammed down their throats and stuck into their pension plans and their investment portfolios, whether they want it or not – binding their futures ever more tightly to the frenzied, risky, multibillion-dollar dash by technology moguls to develop machines capable of mimicking human thought processes to take over cognitive tasks. First up is this week’s massive $75bn initial public offering (IPO) for Elon Musk’s SpaceX, the largest ever, which at $135 a share will value the company at a cool $1.77tn, among the 10 largest companies in the world by market capitalization. While the company makes most of its money these days selling internet access, it largely needs the money to finance Musk’s vast AI ambitions, which include blasting datacenters into orbit. The offering is just the first in a series: both Anthropic and OpenAI have already filed paperwork for their own IPOs later in the year, which will add two multitrillion-dollar artificial intelligence behemoths to the US’s main stock indices. Even investors who don’t care to buy their stock will end up owning a bunch, either in their 401(k) retirement plans or among their holdings of market index funds – supposedly safer investments for non-professional investors, built to reflect the entire market – which are forced to buy AI shares in proportion to their weighting in stock indices like the Nasdaq and the S&P. Musk has been lobbying for SpaceX to be quickly invited onto the indices, which would force index funds to buy the stock, no matter its price, and providing it a hefty boost. The tech-heavy Nasdaq changed its rules to fast-track the listing of behemoths like SpaceX. So did the FTSE Russell, to ease the entry of megacaps to its US indices. Standard & Poor’s is sticking to its rules. This means SpaceX will have to post a profit – which it has not yet done – make a minimum set of shares available to the public and wait about a year to get onto the S&P 500, the most tracked index. The SpaceX offering, moreover, amounts to less than 5% of its shares – which will limit its immediate footprint. But if SpaceX follows the pattern set by large firms after their IPOs, some half of its shares could be trading openly by the time it joins the S&P 500 next year. This would give it about a 1.5% share of the S&P 500’s market capitalization of more than $60tn – forcing index funds to plow hundreds of billions into Elon Musk’s gambit to become the world’s first trillionaire. If this sounds like a risky bet, it is. Musk, the guy who at the helm of “Doge” tried to devastate the federal bureaucracy, firing employees hand over fist, and who helped dismantle USAID despite knowing it would lead to hundreds of thousands of deaths, will have sole control over the company on which the retirement of many Americans may depend, allowing him to follow his baser instincts wherever they lead. And that’s not the half of it. The so-called “magnificent seven” tech goliaths – Nvidia, Alphabet, Apple, Amazon, Microsoft, Meta and Tesla – already account for more than a third of the S&P 500’s market value. Investors’ views on the tech titans’ massive AI investments have largely driven the ups and downs of the equity market as a whole. Adding SpaceX, OpenAI and Anthropic to this set will give tech billionaires an even tighter grip on Americans’ financial future as they pursue their dystopian sci-fi dreams, free from any sort of government regulation. There may be a silver lining – of sorts. Having a lot of AI stock in a retirement plan may offer a hedge for the newly irrelevant workers displaced by artificial intelligence, granting them some stake in the economic fruits of the new hi-tech economy. But the balance of risks points in the wrong direction. A future in which the new AI agents hypercharge economic productivity and propel human prosperity to where it has never gone before remains an aspiration. Claims of astonishing progress by the latest AI models may well be true. But they have not been matched by significant gains in productivity. Dystopian scenarios appear ever more probable even as the economic rewards investors are counting on remain stuck far off on the horizon.

After SpaceX’s huge IPO, Americans’ financial future will be bound to AI