Goldman cuts AI access in Hong Kong as UAE quits OPEC

Susie Wiles met with Anthropic CEO Dario Amodei Friday in damage control mode. The White House Chief of Staff and Treasury Secretary Scott Bessent called the talks "productive" as they try to separate Pentagon disputes from broader government access to the company's Mythos AI model. Agencies including Treasury and CISA are testing Mythos for cybersecurity after the Trump administration labeled Anthropic a "supply chain risk" weeks ago. The reversal shows how AI capabilities can override political hostility when agencies face technological gaps versus China.

A "capability gap" in AI governance could trigger a multi-billion pound scandal comparable to PPI within two weeks, warns UK regulatory firm Zango. British financial services are "ploughing ahead" with AI deployment despite insufficient oversight standards, risking compliance failures that MIT found hit 95 percent of AI pilots. The warning comes as US markets dropped sharply on hot PPI data and AI bubble fears, with the Nasdaq falling 1.15 percent. Finance firms betting on AI efficiency gains without proper controls risk becoming the next mis-selling headline.

The coming financial crisis will unfold as a "slow, silent breakdown" rather than 2008's sudden collapse. Rising interest rates are straining a debt-dependent global economy while credit markets show dangerously tight spreads, similar to pre-crisis lows that signal vulnerability to rapid shifts. Commercial real estate distress from empty offices and maturing debt at higher rates will likely trigger the unraveling. Unlike banking failures in 2008, this crisis stems from prolonged high rates suffocating money flows between institutions, businesses, and consumers.

AI disruption just hit private credit portfolios hard. Ares Management wrote down loans to three Clearlake Capital software companies, with Quest Software debt trading at 25 cents on the dollar as legacy analytics and learning tools face obsolescence. Ares stock fell over 10 percent alongside peers as investors price in forced restructurings across a $50 billion universe of PE software deals. The write-downs come even as Ares led a $5.75 billion loan for Clearlake's Dun & Bradstreet buyout, showing lenders triaging existing problems while chasing new fees.

Gold's safe-haven appeal is losing to inflation fears as US-Iran talks stall and the Strait of Hormuz remains closed. Higher oil prices from the supply disruption are driving expectations of prolonged high interest rates, making non-yielding assets like gold less attractive despite geopolitical tensions. The metal is on track for a weekly decline as investors bet central banks will prioritize fighting oil-driven inflation over cutting rates. Gold's dual role as inflation hedge and rate-sensitive asset is creating conflicting signals for traders.

Australia's largest independent oil producer is riding the energy crisis wave. Woodside expects stronger LNG earnings in coming quarters as Q3 revenue surged 19 percent to $1.53 billion on 40 percent higher natural gas prices and increased spot market exposure. The company is targeting 50 percent growth in oil and gas sales to 300 million barrels of oil equivalent by 2032, with LNG capacity doubling from 19 million tons to 40 million tons annually. Morningstar analyst Mark Taylor calls the stock undervalued at $24.07 versus a $40 fair value, arguing oil and LNG price spikes create a "make hay while the sun shines" opportunity.

The world's largest iron ore producer couldn't escape margin compression despite higher volumes and prices. Vale missed Q1 2026 consensus EPS estimates as elevated input costs outweighed operational improvements, with one forecast predicting a $2.3 billion net loss as Chinese steel demand softens. Iron ore production hit 90.4 million tons in Q4 2025, up 6 percent year-over-year, but pricing reality and unit cost pressures offset volume gains. Vale's struggles highlight the commodity cycle's unforgiving math: volume growth means nothing if costs rise faster than prices.

Purdue Pharma agreed to an $8 billion fine and guilty pleas to criminal conspiracy charges, while the Sackler family will pay $225 million in civil penalties to resolve opioid marketing allegations. The deal transitions Purdue to a "public benefit company" post-bankruptcy, continuing drug production while prioritizing overdose rescue and addiction treatment donations. Critics from 25 state attorneys general argue the settlement inadequately punishes individuals, with no criminal indictments despite outlined crimes. The resolution still requires judicial approval and leaves Sacklers vulnerable to additional claims.

A federal grand jury indicted James Comey on two counts of threatening President Trump, stemming from an Instagram post showing "86 47" that prosecutors interpret as intent to harm. The Justice Department alleges "86" means "to kill" and "47" refers to Trump as the 47th President, calling the May 2025 post a "disgraceful" public encouragement viewable worldwide. Comey faces up to 10 years per count if convicted. The case tests the boundaries of online political expression and could set precedent for symbolic speech prosecution in the social media age.

King Charles III urged Congress to preserve the UK-US "special relationship" during a 25-minute address marking America's 250th anniversary, calling the alliance "more important today than it has ever been" amid global instability.