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More than 1,100 employees from Meta, Anthropic, OpenAI and Google have called on the U.S. government to support international tools for controlling the pace of advanced artificial intelligence development. The Pacing the Frontier initiative argues that increasingly powerful systems could outstrip existing safety, governance and oversight mechanisms. Its statement requests tools to “deliberately pace the frontier of automated AI development.” Signatories include Anthropic chief executive Dario Amodei, OpenAI chief scientist Jakub Pachocki and Meta AI research executive Dawn Song. OpenAI and Anthropic acknowledged that rapid advances and recursive self-improvement may eventually require coordinated limits, while Nvidia separately formed an industry coalition focused on AI safety and cybersecurity following concerns about autonomous agents.

 

U.S. News

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Meta Platforms chief executive Mark Zuckerberg has called on U.S. policymakers to accelerate AI development rather than impose restrictions that could slow innovation, arguing that AI's benefits outweigh its risks. He said the current debate around AI is overly pessimistic and urged regulators to minimize delays in reviewing new AI models, warning that even short approval periods could hinder progress in a rapidly evolving industry. Mr. Zuckerberg also argued against restricting access to open-source AI models, including those developed outside the U.S., saying policymakers should instead focus on strengthening America's AI industry and removing barriers to AI-driven innovation. The comments come as Meta significantly increases its investment in AI infrastructure, with plans to spend up to $145bn this year on chips and data centers, ahead of its second-quarter earnings release later this week.

 

New York Times

Reuters

Wall Street Journal

Shein has disclosed that its U.S. operations are under investigation by the Federal Trade Commission (FTC) and warned that the probe could result in significant monetary payments that may materially affect its financial performance. The disclosure was made in documents filed in connection with the fast-fashion retailer's planned Hong Kong IPO, with the FTC confirming it is conducting a consumer protection investigation. The company said it is cooperating with the investigation but did not disclose its subject. The filing comes after Shein shifted its IPO plans to Hong Kong following stalled listing efforts in New York and London, and amid continued regulatory scrutiny of its supply chain and business practices. Shein also revealed it had swung to a quarterly loss, partly due to weaker sales after the U.S. removed the de minimis tariff exemption for low-value imports.

 

CNBC

Reuters

South China Morning Post

Wall Street Journal

The trend of "tokenmaxxing," where companies maximize the use of AI tokens, is facing backlash as costs rise without a corresponding increase in productivity. Vincent Gusdorf, head of AI analytics at Moody's Ratings, said: "It's very easy to create something you don't need with AI." Initially celebrated in Silicon Valley, high token consumption is now seen as a financial burden, with Microsoft chief executive Satya Nadella warning that customers are paying twice for AI. Many companies are now reassessing their AI investments, with Bain & Company consultant Jue Wang noting that token costs have been doubling frequently. As firms seek more efficient AI solutions, the focus is shifting towards better "routing" of AI tasks to optimize costs. Open-source alternatives from Chinese startups are also gaining traction, offering similar capabilities at lower prices. Raffi Krikorian, chief technology officer at Mozilla, remarked that the industry is realizing "tokenmaxxing is a dumb thing," suggesting a shift in perspective on productivity metrics.

 

U.S. News

U.S. business investment remained resilient in June as spending on artificial intelligence continued to boost demand for technology equipment, according to the Commerce Department, with core capital goods orders and shipments exceeding expectations despite geopolitical uncertainty and tariffs. Non-defense capital goods orders excluding aircraft, a key measure of business investment, increased 0.9% in June after an upwardly revised 1.9% gain in May, while shipments of those goods surged 1.9%, providing a strong signal for second-quarter equipment spending. Growth was led by a 3.1% jump in orders for computers and electronic products, alongside gains in electrical equipment and primary metals. The broader durable goods report showed orders rebounded 0.3% after a 4.0% decline in May, although transportation equipment orders remained weak. Economists said AI-related capital expenditure, inventory rebuilding, and tax incentives continue to support U.S. manufacturing and the wider economy, with second-quarter GDP expected to grow at an annualized 2.1%. 

 

Reuters

Wall Street Journal

Microsoft has introduced its first AI model, MAI-Cyber-1-Flash, designed to identify cybersecurity vulnerabilities. When integrated with OpenAI's GPT-5.4, it reportedly outperforms competitors like Anthropic's Mythos 5 and Google's 3.5 Flash Cyber. “We have world-leading performance at 50% of the cost,” said Mustafa Suleyman, chief executive of Microsoft AI, during a San Francisco event. This launch marks a significant move for Microsoft’s cybersecurity division, led by Hayete Gallot, who rejoined the company in February. The model will be part of Project Perception, which aims to assist in discovering and fixing weaknesses in systems. Gallot noted that this technology could help attract more talent to security operations centers, which currently face staffing challenges. Despite a 19% drop in Microsoft shares this year, analysts recommend buying the stock, citing the potential of the new AI model.

 

CNBC

On Tuesday, Apple briefly became only the second company to surpass a $5tn market capitalization, with its stock rising as much as 1.3% as investors sought the relative safety of the iPhone maker amid a sharp sell-off in AI and semiconductor stocks. The milestone came a day after Apple overtook Nvidia to reclaim its position as the world's most valuable publicly traded company for the first time since May 2025. Apple's stock has gained about 25% this year, outperforming many technology peers as investors have favored its more measured approach to AI spending over the aggressive capital investment plans announced by rivals including Alphabet, Microsoft, Amazon, and Meta. The company is also beginning to shed its reputation as an AI laggard, with positive early feedback on its revamped Siri assistant ahead of a broader rollout later this year, while investors now await Apple's quarterly earnings later this week.

 

CNBC	Financial Times

Coca-Cola has raised its full-year guidance after reporting better-than-expected second-quarter results, with revenue rising 7% to $13.38bn and adjusted earnings of 97 cents per share, ahead of analysts' forecasts. The company now expects comparable earnings per share growth of 9%-10%, up from 8%-9%, and organic revenue growth of around 5%. The drinks maker said strong consumer demand, supported by its FIFA World Cup marketing campaign, drove 5% global volume growth, with Coca-Cola volumes increasing 5% and Powerade volumes rising 8%. Net income increased to $4.43bn from $3.81bn a year earlier, while shares rose more than 7% following the results.

 

CNBC

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Wall Street Journal

BuzzFeed is cutting approximately 35% of its workforce, which translates to about 180 staff and contract positions across BuzzFeed, HuffPost, and Tasty. The layoffs were announced in a Securities and Exchange Commission filing and are part of efforts to achieve "profitable and sustainable growth," according to the company's leadership. The restructuring follows Byron Allen's acquisition of a majority stake in BuzzFeed for $20m in cash and a $100m promissory note. Despite a reported $15m net loss in the first quarter, BuzzFeed said it aims to enhance its audience and strengthen its position in free streaming content. The company is set to release its second-quarter results on August 4.

 

Los Angeles Times

The American Federation of Government Employees (AFGE), representing around 800,000 federal workers, has filed a lawsuit against the Equal Employment Opportunity Commission (EEOC) for suspending all class action federal-sector cases. The lawsuit, lodged in the U.S. District Court for the District of Columbia, claims that the EEOC violated the Administrative Procedure Act by halting the processing of these cases. This legal action is part of the union's ongoing efforts to counter what it perceives as destabilizing actions by the Trump administration against the federal workforce. As a result of the freeze, administrative judges are unable to certify lawsuits, set hearings, or provide classwide relief.

 

Bloomberg Tax

eBay has agreed to pay $55.7m to settle a civil lawsuit brought by e-commerce bloggers Ina and David Steiner, over a coordinated harassment campaign launched after the couple published critical coverage of the retailer. The settlement includes $48.7m in compensation for the Steiners, $6m for charitable organisations and a $1m donation from former chief executive Devin Wenig to a free speech charity in Ina Steiner's name. The campaign involved threatening messages, disturbing deliveries including live cockroaches, a funeral wreath and a pig's head mask, as well as surveillance and vandalism by former eBay employees. eBay, which pleaded guilty to criminal charges in 2023 and paid a $3m penalty, said the conduct was "wrong, reprehensible and should never have happened", adding that all employees involved were dismissed and acknowledging the inappropriate tone of internal communications. 

 

CNBC

Financial Times

New York Times

Reuters

The U.S. goods trade deficit narrowed in June as imports declined more sharply than exports, although economists expect trade to remain a drag on second-quarter economic growth. According to the Commerce Department, the goods trade deficit fell 4.2% to $101.5bn in June. Goods imports declined 2.6% to $306.2bn, led by lower purchases of consumer goods, capital goods, automobiles, food, and industrial supplies, while goods exports fell 1.8% to $204.7bn, reaching a five-month low as shipments of industrial supplies, including petroleum, dropped amid lower crude oil prices following the U.S.-Iran ceasefire. Exports of automobiles and consumer goods, however, increased during the month. Despite the narrower deficit, economists said trade is still likely to subtract about one percentage point from second-quarter GDP growth, marking a third consecutive quarter in which net exports have weighed on the economy.

 

Reuters

U.S. consumer confidence fell for a third consecutive month in July, as Americans became more pessimistic about current business conditions and the labor market, according to The Conference Board. The Consumer Confidence Index declined 1.4 points to 90.8, while the Present Situation Index, which measures views on current business and labor market conditions, fell 3.6 points to 114.9. The Expectations Index was unchanged at 74.7, remaining below the threshold that typically signals concern about future economic conditions. Consumers were less likely to describe business conditions as "good," and perceptions of job availability also weakened, with fewer respondents saying jobs were plentiful. The Conference Board said expectations for business conditions over the next six months deteriorated further, although income expectations remained relatively positive.

 

AP News

Quartz

Reuters

Wall Street Journal

U.S. home prices declined for a third consecutive month in May, according to the S&P Cotality Case-Shiller Home Price Index, as elevated mortgage rates and persistent inflation continued to weigh on housing demand. The national home price index was essentially flat month over month on a seasonally adjusted basis and increased 1.1% from a year earlier. After adjusting for inflation, however, home prices fell 0.3% from April and were down 2.1% year over year. The 20-City Composite Index rose 0.1% month over month and 1.6% annually, while the 10-City Composite Index increased 0.3% from April and 2.4% from a year earlier.

 

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