Markets & Business

Business

Macro signals, central banks, earnings, and the deals moving capital today.

10 stories · Edition of 2026-10-06 · Curated by AI at Invalid Date

BUSINESS

Pentagon halts use of Anthropic AI tools after supply chain designation

17d ago · Source: bbc

The Pentagon has stopped using Anthropic's AI tools, an official confirmed to the BBC, months after the company was placed on a national security supply chain blacklist. Defence Secretary Pete Hegseth designated Anthropic a supply chain risk in February and set a deadline for removal by late August. The department said it has now 'ceased the use of Anthropic products' following a review.

Multiple sources told the BBC that Anthropic's Claude model remained embedded in the Pentagon's Maven Smart System as recently as last week. The system, operated by Palantir, serves as the department's primary platform for organizing intelligence data, including satellite imagery and drone footage. Analysts used Claude through Maven for tasks such as identifying potential military targets and generating briefing documents.

Lauren Kahn, a senior research analyst at Georgetown's Center for Security and Emerging Technology, noted that removing Claude required more than a simple software update due to its deep integration with existing workflows. 'Once these tools become part of the system, extraction can be difficult,' she said.

The shift follows a dispute in which the Pentagon demanded Anthropic remove safety guardrails from Claude to allow unrestricted military use. When the company declined over concerns about mass surveillance and autonomous weapons, it was added to the blacklist. The Pentagon has since signed contracts with other AI firms, including Google, xAI, and OpenAI, which have seen broader adoption in recent months.

Anthropic declined to comment on the Pentagon's statement. The company had previously worked with U.S. government agencies since 2024, becoming the first advanced AI firm to deploy tools in classified government work.

The development comes as relations between Anthropic and the White House appear to improve. Former President Donald Trump met with Anthropic CEO Dario Amodei twice last week, praising the company's work while acknowledging ongoing discussions about AI risk mitigation. Amodei stated that collaboration with the administration could help address safety concerns while advancing national objectives.

BUSINESS

China's LOGINK logistics platform faces expansion setbacks amid U.S. scrutiny

17d ago · Source: reuters

Four years after U.S. officials warned that China was preparing to deploy a trade superweapon through a digital logistics platform, the initiative has stalled and retreated from international engagement.

The system, known as LOGINK or the National Transportation and Logistics Public Information Platform, was presented as a tool to streamline global shipping by linking customs data, port operations and transport services into a single digital network. Originally developed as a regional project in Zhejiang province, it was later adopted by China’s transport ministry and promoted as a "key project" with ambitions for global reach.

According to interviews with more than 20 industry insiders and a review of legal records, LOGINK’s international partnerships have largely dissolved. It withdrew from an influential maritime data-sharing association, its website went offline, and it has become entangled in domestic legal disputes over unpaid bills. A visit to its former operations center in Wenzhou in September revealed an abandoned office space with stripped cabling and no staff.

The platform had previously secured cooperation agreements with Japanese and South Korean authorities, linking to their national logistics systems, and had pursued ties with European ports including Rotterdam and Sines in Portugal. However, participation in a key international data-sharing initiative through the International Port Community Systems Association (IPCSA) ended in 2024 after LOGINK ceased paying membership fees. IPCSA confirmed the project is now inactive.

U.S. policymakers grew increasingly concerned that the platform could enable Beijing to collect sensitive commercial and shipping data, potentially giving Chinese firms an advantage in global trade. Some officials feared it might also be used to monitor military-related cargo movements. In response, the U.S. government prohibited its use within federal agencies and encouraged allies to limit collaboration.

Despite these pressures, some partners noted that data sharing with LOGINK was more limited than feared. South Korea and Japan reported that only basic vessel arrival and departure information was exchanged, without details on cargo contents. Nevertheless, U.S. lawmakers, including members of Congress, publicly urged the administration to take action against LOGINK’s expansion.

By early 2024, LOGINK had also faced mounting legal challenges in China. A subsidiary of China Mobile sued the platform over a contract dispute, and a court ruled in its favor, though it remains unclear whether payment was made. Additional lawsuits related to unpaid utilities and lease disputes have accumulated, contributing to financial and operational instability.

The retreat of LOGINK reflects broader tensions over control of maritime data infrastructure, a sector that handles approximately 80% of global trade. While Beijing has continued to promote the platform domestically, its international ambitions have faltered amid diplomatic pushback and legal challenges.

A recent visit to the Wenzhou site revealed no signs of active operations, though a slogan on the wall still proclaimed China’s goal of leveraging global supply chains by 2035.

BUSINESS

Trump expands tax-exempt diesel access amid rising fuel costs

17d ago · Source: reuters

President Donald Trump signed an executive order on Monday to broaden access to tax-exempt diesel fuel, a move announced during a rally in Nebraska. The order comes as high diesel prices — reaching a record $6.50 per gallon last month — pose a political risk ahead of the November 3 midterm elections, when control of Congress will be decided. Republicans currently hold a slim majority in both chambers.

The directive waives the off-road requirement for tax-free diesel, permitting purchases of red-dyed diesel used by agricultural operations and certain off-road vehicles. Trump indicated the measure would be temporary, stating, "We are not going to need it long, I hope."

The White House release instructs the Treasury Secretary, in coordination with the Pentagon Chief, to suspend federal excise taxes on dyed diesel used for on-road purposes through the end of the year, without interest or penalties, and to assess options for eliminating the deferred taxes. Additionally, the Agriculture Secretary is directed to ensure farmers maintain access to dyed diesel in high-demand regions, while the Transportation Secretary is tasked with collaborating with state officials, industry groups, and labor organizations on distribution logistics.

The order follows a G7 agreement to release 100 million barrels of diesel in response to supply pressures, though the extent of new supply versus compliance with prior commitments remains unspecified. The move aligns with Trump’s broader stance on fuel policy, which includes previous considerations of restricting U.S. diesel exports.

A recent Reuters/Ipsos poll found Trump’s approval rating at 32%, with economic concerns — particularly inflation driven by elevated gasoline and diesel prices — cited as top voter anxieties. The administration attributes rising fuel costs in part to geopolitical disruptions, including conflicts involving Iran and Russia, which have impacted global refining infrastructure.

The policy shift reflects an intersection of energy, agricultural, and transportation priorities, with potential implications for supply chains and regional fuel availability in the coming months.

BUSINESS

India's equity markets struggle despite robust economic growth

India's benchmark Sensex and Nifty indices have recorded their longest losing streak in 25 years, with the Nifty posting eight consecutive weeks of declines through Monday.

17d ago · Source: bbc · 2 min read

India's benchmark Sensex and Nifty indices have recorded their longest losing streak in 25 years, with the Nifty posting eight consecutive weeks of declines through Monday. The downturn has erased roughly 15% of wealth for domestic retail investors who hold mutual fund shares linked to the index, while comparable markets in South Korea and Taiwan have delivered double-digit returns over the same period.

The disconnect between macroeconomic momentum and market performance stems from several interrelated pressures. Energy security concerns dominate the outlook, as India imports more than 90% of its crude oil needs, with nearly half of those shipments passing through the Strait of Hormuz. Ongoing regional tensions have kept crude prices between $90 and $100 per barrel for eight months, a level that analysts say strains inflation and corporate margins. Franklin Templeton fund manager Hari Shyamsunder noted that price thresholds above $100 per barrel create measurable stress on economic variables.

Global interest rate increases compound the challenge. With U.S. Treasury yields exceeding 5% — near 25-year highs — foreign capital has shifted toward safer assets, reducing inflows into emerging market equities. Currency depreciation has further eroded returns for international investors, as rupee weakness translates to lower dollar-denominated gains even when local returns appear positive.

Valuation metrics reveal another layer of complexity. While Indian equities have become less expensive relative to their ten-year average, they remain priced above earnings compared to peers in South Korea and Taiwan, where artificial intelligence-driven profit growth has been pronounced. Bernstein Research observed that domestic corporate investment patterns reflect a reluctance to fund transformative technologies, with many large firms focusing on consolidation rather than future-oriented development.

The structural shift toward domestic savings has partially offset outflows. Mutual fund assets under management have grown from approximately $125 billion in 2016 to nearly $900 billion this year, with participation from over 150 million individual investors. This domestic capital base has so far prevented a sharper market decline, even as households face weak employment conditions, elevated inflation, and stagnant consumption.

Foreign portfolio investors have withdrawn nearly $40 billion over the past two years alone, according to Bernstein Research. While some analysts suggest that easing geopolitical tensions and attractive valuations could eventually reverse this trend, the path forward remains uncertain. The critical test will be whether sustained domestic investment flows can withstand a more pronounced market correction in the coming months.

BUSINESS

Boeing secures two major US fighter jet contracts

17d ago · Source: reuters

Boeing announced on October 5 that it had won the US Navy's next-generation fighter contract and the Air Force's F-47 program, marking the company's second major fighter jet victory in recent years. The company outperformed Lockheed Martin and Northrop Grumman for the Navy's F/A-XX competition, a program valued at more than $20 billion in its initial development phase.

The wins come after years of investment in carrier-based jet experience and a design approach that aligned closely with the Pentagon's emphasis on upgradeable aircraft. Boeing's defense, space and security division now holds contracts that could shape US tactical aviation for decades, according to Richard Aboulafia, managing director of AeroDynamic Advisory.

The Pentagon required all competitors — Boeing, Lockheed Martin and Northrop Grumman — to adopt common design standards to streamline future upgrades and respond to evolving threats. A former Pentagon official noted that Boeing demonstrated the most effective adoption of these standards.

Boeing also distinguished itself through the use of digital design tools, which facilitate testing and refinement across engineering, military and maintenance teams. Northrop Grumman stated it offered a "highly survivable, digitally advanced sixth-generation fighter" and has requested a debriefing on the selection process, a prerequisite for any appeal.

The contracts do not guarantee financial success. Boeing has previously absorbed $20.5 billion in losses on fixed-price development programs, including the KC-46 tanker, T-7 trainer, MQ-25 refueling drone, Air Force One replacement and Starliner spacecraft. Analysts caution that fixed-price terms could pose risks, and Boeing's CEO Kelly Ortberg has indicated the company will avoid such contracts moving forward.

Details about the aircraft remain limited. The F-47 is expected to fly in 2028 and enter service in 2029, with plans to purchase at least 185 units to replace the F-22. The F/A-XX is projected to enter service in the 2030s and eventually replace the Navy's F/A-18 fleet. While development contracts each exceed $20 billion, long-term production could generate hundreds of billions of dollars.

After losing the F-35 contract to Lockheed Martin in 2001, Boeing preserved its engineering expertise through classified projects and upgrades to existing platforms like the F-15EX. Following the pandemic, the company invested heavily in new production facilities, engineering capabilities and digital design tools to position itself for next-generation fighter contracts.

Boeing argues that developing two advanced fighters in parallel reduces risk by sharing technologies and design features. Both programs aim to establish air superiority alongside autonomous drones in potential conflicts with China, according to defense analyst Roman Schweizer of TD Cowen.

The story was updated to remove the word "naval" from the headline without changes to the article text.

BUSINESS

How to manage anxiety when speaking publicly at work

17d ago · Source: bbc

A recent report highlights strategies for reducing anxiety during workplace presentations. One individual described experiencing panic attacks severe enough to require a medical exemption from speaking in school and university settings. Now 28 and employed in political research, she regularly presents in parliamentary forums and on social media platforms.

She emphasizes selecting topics that generate genuine enthusiasm as a foundational step. According to her, avoiding anxiety-provoking situations reinforces fear rather than building resilience. A pivotal moment occurred during her university studies when she was invited to discuss a subject she cared about, which led to presenting her dissertation research on sexual misconduct in academic fieldwork. She notes that passion for a subject naturally eases the speaking process.

Practical techniques include rehearsing with virtual reality tools that simulate audience interaction. One journalist described using a low-cost headset to create a mock audience environment, which she found more effective than solitary practice. A cognitive neuroscientist recommends controlled breathing patterns — specifically six breaths per minute (five seconds in, five seconds out) — to enhance brain-heart coordination and reduce physiological stress responses.

Another expert advises focusing on a single, defining word for each presentation to maintain clarity of purpose. This word serves as a post-presentation evaluation metric rather than a performance standard. Additional recommendations include establishing pre-presentation routines that prioritize physical comfort, such as adequate rest, hydration, and familiar attire, while minimizing distractions from appearance concerns.

Experts caution against interpreting audience facial expressions during delivery, as such reactions can carry ambiguous meanings. Instead, they suggest maintaining internal focus on the message rather than external reactions. Acknowledging that mistakes are inevitable and often forgotten by audiences is presented as a normal part of the learning process. One commentator noted that frequent participation in virtual meetings has normalized public speaking as a developable skill, comparable to mastering any new technical ability.

The guidance collectively frames public speaking as a learnable competency that improves with deliberate practice and exposure, rather than an innate talent.

BUSINESS

CNN chief Mark Thompson to remain after Skydance merger

17d ago · Source: washingtonpost

Mark Thompson will continue as CNN's chief executive following the completion of the Skydance merger, which is scheduled for Tuesday. Thompson has held the position for nearly three years. His decision to stay was announced on Monday and may indicate that David Ellison, who leads Skydance, does not plan to immediately integrate CNN with CBS News, where Bari Weiss serves as editor in chief. In a staff memo, Thompson expressed confidence that both Ellison and Weiss understand and will uphold CNN's tradition of independent journalism. He will serve as editor in chief with full editorial authority, though operational details under the new parent company remain unresolved. The merger between Skydance and Paramount has drawn scrutiny over concerns about potential political influence on CNN's coverage. To address these concerns, Skydance has committed to forming a five-member journalist board to safeguard CNN and CBS News independence. The board's effectiveness has been met with skepticism by some observers. Thompson emphasized that Ellison and Skydance leadership view news as a strategic priority alongside entertainment. The article does not include promotional content or calls to action.

BUSINESS

White House bars Politico from Air Force One pool flight to Nebraska

17d ago · Source: washingtonpost

The White House announced that Politico will not travel aboard Air Force One for President Donald Trump’s scheduled trip to Nebraska on Monday, marking the first recent instance in which the president’s primary print pool reporter was excluded from the flight. The decision was confirmed by a Politico spokesperson and came after the administration requested that another news organization assume the primary print pool role for the out‑of‑town rotation. All outlets approached declined, leaving the position unfilled. The Washington Post, which had previously committed to serving as a secondary print pooler, will continue in that capacity and will provide occasional updates, while CBS, representing the television networks, will also share pool notes on behalf of the White House Correspondents’ Association. Neither CBS nor the Post are replacing Politico’s primary pool responsibilities. The move follows a broader dispute between the administration and several news organizations, including a recent ban of Politico, CNN and MSNBC from White House grounds that was temporarily blocked by a federal judge. The White House has defended the exclusion by stating that traveling aboard Air Force One is a privilege rather than a right, and it emphasized the president’s extensive access to the press through daily briefings and social‑media posts. No replacement primary print pooler has been identified for this trip.

BUSINESS

Mattel faces investor pressure to explore sale amid stalled growth

17d ago · Source: reuters

A shareholder group led by Ariel Investments urged Mattel's board to consider a sale, citing stalled performance and profitability, according to a letter reviewed by Reuters. The investor, which holds a 5.4% stake in the Barbie manufacturer, argued that the company's shares remain significantly undervalued and that a strategic buyer would likely offer a premium.

Mattel's options, as outlined in the correspondence, include divesting assets, merging with another entity, or pursuing an outright acquisition. The firm noted that toy and entertainment companies, as well as private equity groups, might find the Mattel portfolio attractive.

The request follows a period of mixed financial results for Mattel. After benefiting from the cultural impact of the 2023 Barbie film, the company experienced declining operating income across six consecutive quarters and faced rising input costs. In extended trading on October 5, its stock rose 0.9% to $16.20.

Mattel is also navigating leadership changes. CEO Ynon Kreiz stepped down in late September to assume a co-CEO role at Paramount Skydance. Roger Lynch, a board member with prior experience at Condé Nast, is slated to assume the CEO position in November. The company stated that its board and management remain focused on shareholder interests and will evaluate the investor's proposal alongside feedback from other stakeholders.

This is not the first time in 2024 that an investor has called for strategic review. In May, Southeastern Asset Management recommended exploring privatization, a merger with Hasbro, or acquisition by a media firm. More recently, Authentic Brands Group expressed interest in a potential takeover, with sources indicating a valuation exceeding $6 billion. No formal sale process has been initiated, and Mattel's openness to such overtures remains unconfirmed.

Despite a recent share price increase following the Authentic Brands approach, the stock has declined approximately 20% year-to-date. Mattel currently trades at a forward 12-month price-to-earnings ratio of 9.99, below the industry average of 14.03, per LSEG data. Analysts suggest that the current valuation may present an inflection point for reconsidering the company's strategic direction.

Morningstar analyst Jaime Katz noted a growing sense of frustration among investors regarding stalled growth and the potential benefits of taking the company private at its current valuation level.

BUSINESS

US services sector growth slows as price pressures rise

17d ago · Source: reuters

The US services sector showed signs of deceleration in September, with a key measure of prices paid by businesses climbing to its highest level in over four years, indicating that inflationary pressures may persist into 2027. The Institute for Supply Management's survey released on Monday highlighted that complaints about rising fuel costs were the most frequently cited factor affecting supply chains. The US-Israeli conflict involving Iran has driven up energy and commodity prices, contributing to record-high diesel costs that have impacted farmers and trucking operations. Economists noted that these price increases could spread to other economic sectors, potentially broadening inflationary trends. Some analysts argued that the mounting pressure reinforced calls for the Federal Reserve to consider additional interest rate hikes in the coming months. While inflation readings for July and August came in cooler than expected and nonfarm payroll growth slowed sharply in September, the likelihood of a rate increase at the Fed's October 27-28 meeting appeared to have diminished. The ISM reported that its nonmanufacturing PMI fell to 54.9 from 55.4 in August, remaining above the 50-point threshold that signals expansion in the services sector, which represents more than two-thirds of US economic activity. Economists had anticipated a more stable reading around 55.2. The survey indicated broad-based growth across 13 industries, including wholesale trade, retail, transportation, finance, and accommodation, while mining and construction were among the sectors reporting contraction. Supply chain challenges intensified, with supplier delivery times extending for the 22nd consecutive month, pushing input prices higher. Issues such as tariffs and fuel costs were frequently mentioned as disruptors, with fuel-related concerns cited twice as often as any other single factor. The measure of prices paid by services firms rose to 74.0, the highest level since July 2022, reflecting increases in costs for commodities like copper, diesel, steel, and petroleum-based products. These trends align with similar patterns observed in the ISM's manufacturing survey, suggesting inflationary pressures may build gradually. Employment in the services sector edged up to 50.1 from 47.8 in August, indicating modest job growth after two months of contraction. Some firms attributed hiring to backfilling roles vacated by retirees or promotions, while others cited efficiency gains from AI adoption as a reason for workforce adjustments. Economic projections suggest moderate job gains may continue through the fourth quarter, even as broader economic growth remains supported by consumer spending and business investment in artificial intelligence and related infrastructure.