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U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell summoned major bank chiefs to a meeting in Washington this week to warn of ‌cyber risks posed by Anthropic's latest AI model. Anthropic launched the powerful Claude Mythos model earlier this week to a small number of businesses, including Amazon, Apple and Microsoft, but held back on a broader release, citing concerns that the model could expose previously unknown ​cybersecurity vulnerabilities. A blogpost published by Anthropic at the beginning of the month said that AI models had surpassed “all but the most skilled humans at finding and exploiting software vulnerabilities,” adding: “The fallout – for economies, public safety, and national security – could be severe.” The Treasury-hosted meeting aimed to ensure banks are aware of the risks posed by Mythos and similar models and are taking ‌steps ⁠to defend their systems, a source said.

 

Reuters

The Guardian

The United States and the European Union are close to an agreement to coordinate ‌on producing and securing critical minerals. The potential deal would include incentives such as minimum price ​guarantees that could favor non‑Chinese suppliers, according to a draft “action plan” seen by Bloomberg. The EU and U.S. would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China.

 

Bloomberg

Morgan Stanley analysts have said the 36 biggest U.S. banks may be able to release up to $320bn in capital - 20% above the ​current $266bn - under new draft capital rules unveiled by ​regulators last month. The exact amount of money that may ultimately be released is unclear. "Clarity on capital rules is a key catalyst for ​the banks sector," the analysts wrote.

 

Reuters

The ⁠White House ⁠warned U.S. government ​staff against improperly ‌leveraging their positions ‌to ⁠place ⁠bets in futures markets in an email ​on March 23. The  announcement was made hours ​after ⁠U.S. President Donald Trump wrote on ⁠Truth Social he would order the military ⁠to postpone any strikes against Iranian power plants and energy infrastructure. The White House confirmed the authenticity of ⁠the warning reported by the Wall Street Journal. Trump spokesman Davis Ingle said that “the only special interest that will ever guide President Trump is the best interest of the American people.”

 

Wall Street Journal

The Federal Communications Commission (FCC) plans to vote on April 30th to prohibit all Chinese labs from testing electronic devices for use in the U.S. This follows a previous ban on labs owned or controlled by the Chinese government, which affected 23 labs. Currently, about 75% of electronics testing occurs in China. The FCC will also adopt a streamlined approval process for devices tested in U.S. labs or those from countries not posing national security risks. The action is part of a broader effort by Washington to address technology-related concerns with China.

 

Reuters

U.S. economic growth slowed more sharply than previously estimated in the fourth quarter, with GDP revised down to an annualized rate of 0.5% from earlier estimates of 0.7% and 1.4%, according to the Commerce Department. The downgrade was primarily driven by weaker business investment, particularly in intellectual property, and a reduction in inventory accumulation, alongside a slight downward revision to consumer spending growth to 1.9%. Underlying domestic demand also softened, with final sales to private domestic purchasers - an indicator closely watched by policymakers - revised to 1.8%, down from 1.9% and well below the 2.9% pace seen in the prior quarter, reflecting a broader cooling in economic momentum following stronger third-quarter growth of 4.4%. Despite the slowdown in output, corporate profitability strengthened significantly, with profits rising by $246.9bn in the quarter, up from a $175.6bn increase in the previous period. Alternative measures of activity showed a somewhat stronger picture, with gross domestic income increasing at a 2.6% rate and the combined GDP/GDI measure rising 1.5%, though both also marked a deceleration from earlier in the year.

 

The Hill

Reuters

US News and World Report

U.S. consumer spending showed minimal growth in February, rising just 0.1% after stagnating in January, as households remained cautious amid persistent inflation and a weakening income backdrop. The Federal Reserve’s preferred core PCE inflation gauge increased 0.4% month-on-month and 3% year-on-year, while real disposable income fell 0.5%, marking its sharpest decline in nearly a year. Spending on goods rebounded modestly, supported by motor vehicle purchases, while services spending edged higher, but the overall trend reflects subdued demand as consumers adjust to cost-of-living pressures and a sluggish labor market. The saving rate also declined to 4%, indicating reduced financial buffers. Inflationary pressures are expected to intensify further due to rising energy and material costs linked to the Iran conflict, with businesses already signaling price increases, including airlines and postal services. Although higher tax refunds provided some support in February, economists warn that elevated fuel prices and broader inflation could further dampen consumption and economic growth in the months ahead.

 

CNN

Financial Times

Bloomberg

Market Watch

U.S. initial jobless claims increased by 16,000 to 219,000 in the seven days to April 4th, the Labor Department reported on Thursday, exceeding the 210,000 expected among economists polled by the Wall Street Journal, and reaching their highest level since February. The four-week moving average rose by 1,500 to 209,500, while continuing claims, reported with a one-week lag, dropped 38,000 to 1.79m. “The larger-than-expected rise in initial jobless claims in late-March and early-April comes in a period that typically sees greater volatility, due to holidays such as Passover and Good Friday," commented economist Eliza Winger. "Looking at smoothed data for all of March, average claims were lower in 37 states - including California, despite tech-sector layoffs - showing that layoffs remain limited geographically.”

 

AP News

Bloomberg

Reuters

Wall Street Journal

Sony Pictures Entertainment has announced a shift in business strategy, precipitating job cuts across its film, TV and corporate divisions. “As we lean into those priorities, we need to operate with greater focus, speed, and alignment to strengthen our differentiated capabilities,” Chief Executive Officer Ravi Ahuja wrote in a note to staff. “To support our growth, we are aligning our organization with where the business is going — not where it has been. That requires changes to how we are structured and where we invest.”  The company declined to specify how many would lose their jobs.

 

Bloomberg

Los Angeles Times

The Trump administration is proposing to ​cut more than 9,400 workers and just over $1.5bn from the 60,000-employee Transportation ‌Security Administration (TSA), according to a budget document for the Department of Homeland Security - which oversees the agency that handles airport security operations - that is part of the White House budget proposal ​for the next fiscal year. President Donald Trump on Friday proposed mandating smaller airports to use private security instead of TSA as a first step toward privatization of the agency, which was created after the ​September 11, 2001, attacks. The American Federation of Government Employees, the union that represents TSA security officers and which opposes privitization, said it would make air travel less safe.

 

Reuters

Nike has secured a major commercial victory by winning the rights to supply soccer match balls for Uefa’s club competitions from 2027 to 2031, agreeing a deal worth around $45m per year, roughly double the current fee paid by Adidas. The move will end Adidas’s 25-year association with the Champions League and bring to a close the use of the iconic star-panel ball design, which has been a defining feature of the competition since 2001. The final appearance of the star ball is expected at the 2027 Champions League final in Madrid, after which Nike will introduce a new design developed in collaboration with Uefa and its club joint venture.

 

Bloomberg

Financial Times

The Guardian