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North America
Fortune

‘The assertion that the AI is an autonomous being is insane’: Cyber expert says companies should face criminal charges when their AI hacks

Cybersecurity experts are calling this month “Black October,” and unfortunately, the name has nothing to do with Halloween. Over the past several weeks, AI developers, government agencies, and private companies have disclosed a wave of cybersecurity incidents. One of the most significant: a pair of decade-old flaws in PHP, the programming language behind an estimated 70% of websites, which researchers uncovered with the help of AI models. Some of this month’s incidents involved hackers using AI tools to hammer an organization’s digital defenses at machine speed; others resulted from plain human error. But many cybersecurity experts agree that this is the beginning of a new era, one in which AI can be used both to defend people’s cybersecurity and to attack it. “AI is making the old vulnerabilities cheaper to discover and exploit, but on the other side, the defense side… that’s not sped up,” Junfeng Yang, a computer science professor at Columbia University, told Fortune. “That is the asymmetry right now.” That asymmetry, Yang explained, is what leaves internet users and organizations vulnerable. In many of these incidents, the remedy is a patch, a software update engineered to close the vulnerability. But it takes time to properly test a patch and make sure everyone affected can deploy it. That struggle was on display Monday, when the U.S. Cybersecurity and Infrastructure Security Agency added last week’s PHP vulnerabilities, known collectively as “php2shell,” to its catalog of flaws being actively exploited by attackers and ordered civilian federal agencies to fix affected systems by Oct. 29. Five days earlier, CISA had said it had not yet seen exploitation. Still, Yang and other cybersecurity experts believe the asymmetry could be temporary. “Maybe in the future, AI can help us with the patching process by updating automatically whenever a high-security vulnerability is discovered,” Yang said. “Like your AI, running together with your website, could automatically apply these patches, without interrupting normal operations.” Some incidents involved AI models themselves taking actions nobody authorized after being given access to the live internet. Over the weekend, Anthropic confirmed that a Claude model used internally for a statistics project accessed aggregate vote-count data from a Georgia state data hub without being asked. Anthropic initially told Axios the model had gotten around a paywall, but Georgia’s secretary of state’s office said Monday that Anthropic had confirmed the model had not bypassed a paywall and had used the state’s public Data Hub. Both say the model never accessed the state’s voter registration system or individual voter records. In some cases, AI agents targeted real people. During cyber testing by the UK AI Security Institute in July, a Claude Mythos 5 agent that couldn’t solve a test challenge within the rules tried to slip malicious code into an unrelated open-source GitHub project, then used fake accounts to pressure the project’s human maintainers into accepting it. The maintainers refused, and AISI said the incident caused no real-world harm; Anthropic called it a serious alignment failure. In another peculiar case, an OpenAI research agent took cryptocurrency from a wallet it didn’t own to pay the fees needed to finish a coding task, though the tokens were on an Ethereum test network and had little real-world value. Joseph Steinberg, a cybersecurity expert and consultant, believes many incidents involving AI models on the internet are easily avoidable. He says all AI testing should happen on air-gapped servers, which are not connected to the internet, to keep models from causing harm outside the test. AISI has since said it will run such tests without internet access until it has stronger controls in place. “I think that if an AI goes out and hacks, the parties that own it should be held responsible criminally,” Steinberg said. “The assertion that the AI is an autonomous being is insane.” The profits, he argued, go to the AI’s owners, not the AI. “It’s their entity.”

‘The assertion that the AI is an autonomous being is insane’: Cyber expert says companies should face criminal charges when their AI hacks
North America
CNBC Economy

Analysis: Warsh is learning to wield the Fed's power without showing his hand

The Federal Reserve chairman's press conference Wednesday was sharply different from his early appearances in the job, when he often seemed backed into a corner. He's shown he is willing to let the markets guess where he is going — at least to a point. And he has started using his authority to reshape the institution. Warsh was appointed by a president who said cutting interest rates was a litmus test for his choice for Fed chair. When the Federal Open Market Committee opted to hold rates flat in June and July, even with inflation well above the Fed's 2% target, a swarm of commentators questioned the new chairman's credibility. The FOMC's subsequent decision in September to raise rates came with such a hawkish reading of the economy by Warsh that the markets swung sharply in the opposite direction. Investors thought the Fed might be locked into a rate hike this week until a pair of top officials came out and appeared to deliberately temper market expectations. This week, Warsh put all that behind him. He disavowed any expectation that the Fed is on a set course: "If we had a firm conclusion about the conduct of monetary policy, we'd announce it to much fanfare today," he said. But Warsh also gave a strong signal that his current lean is toward higher rates. "While overall financial conditions are tighter, I'm unwilling and unable to call them tight," he said. He was preserving his options while laying the intellectual groundwork for a hike in December, should inflation remain stubborn. Warsh declined to confirm the widespread assumption in the markets that the officials who had talked down the markets had done so at his direction. Fed insiders have said that the Fed's vice chairs usually coordinate messaging with the chair. "To suggest somehow that I am some kind of all-knowing person sending messages out, that's not the committee of the FOMC that I know," Warsh said. And yet the market got the message that the Fed wouldn't hike this week. If Warsh wants to give otherwise taboo forward guidance through his lieutenants, he now has plausible deniability. This is Warsh's MO: He is intellectually flexible and highly focused on achieving his goals. For instance, one of the goals of the task forces he has assembled to kick-start policy changes is to change the way the Fed measures inflation. But that was impossible while his commitment to fighting it was in question. September's rate hike does a lot to answer the skeptics who said he wasn't serious about slowing price increases, and he is willing to deliver more rate increases, if necessary. "If you think that we're tolerating some inflation target somewhere in the twos, let us disabuse you of it," Warsh said Wednesday. The target is 2% flat. His remarks are a recipe for higher rates as long as the economy stays strong. Warsh and the FOMC will have a raft of new data before the next meeting, in December, to make their case. That could, alternatively, help him make the case that productivity is rising, allowing for more growth without inflation. Meanwhile, Warsh's other changes at the Fed are starting to take effect. He announced a plan Wednesday to reduce the number of times the FOMC is scheduled to vote on interest rates over the next two years. The Fed will keep meeting eight times a year, but will skip a vote on whether to change rates at one meeting in 2027 and two in 2028. That move has the effect of devaluing a good chunk of Fedspeak. The market won't pay much mind to a marginal regional Fed president's comments when they come as much as three months ahead of a rate decision. Regional presidents also get one fewer scheduled vote in their year-long rotations as decision-makers on the FOMC.

Analysis: Warsh is learning to wield the Fed's power without showing his hand
Europe
BBC Business

US interest rates held steady and economy grows - what it means for you

Image source, Saul Loeb/AFP via Getty ImagesByRachel ClunBusiness reporterPublished28 October 2026Updated 29 October 2026The US Federal Reserve has held interest rates steady at 3.75% - 4%. The decision comes within a week of the midterm elections and after the central bank raised interest rates for the first time in three years at its September meeting. "The overwhelming consensus, the overwhelming judgement, is that what we've done in this monetary medicine is starting to work some," Fed Chair Kevin Warsh said, referring to September's interest rate rise. Figures published after the Fed's announcement showed the US economy growing at a stronger pace than expected, with inflation running above the Fed's target. An interest rate tells people and businesses how much it costs to borrow money – such as with credit cards, mortgages, or business loans – but also what return they get for saving cash. The Fed influences interest rates in the US through its target range for the federal funds rate, which is the interest rate used by commercial banks for overnight borrowing. In its decision to hold rates steady this month, the Fed said that while inflation remains high, it wanted to gather more information before making another decision to change rates. The Fed also noted that while there was uncertainty, the US economy remained resilient. Warsh acknowledged that inflation remained too high, but noted that there were other signs - such as tightening credit conditions - that the economy was moving in the right direction. There is plenty more economic data to come between now and the committee's next meeting, the Fed chair added, which should paint a more detailed picture of the state of the economy. At that point, Warsh said, "we'll be, I think, better positioned to determine the right policy decision and the stance of policy." While last month the committee signalled there could be one more rate rise this year, Warsh would not be drawn out on where he thinks they will go in six weeks' time.

US interest rates held steady and economy grows - what it means for you
North America
Yahoo Finance

Dow, S&P 500, Nasdaq Futures Mixed After Fed Holds Rates Steady: GOOG, GOOGL, IOVA, MSFT, NOW In Focus

U.S. stock futures were mixed overnight late Wednesday after the Federal Reserve held interest rates steady at a target range of 3.75%-4.00% in its October policy meeting. As of 10:33 p.m. EDT, Dow futures gained 0.32%, while the S&P 500 futures were down 0.50% and Nasdaq-100 futures fell 1.60%. On Wednesday, U.S. benchmark indexes closed higher. The Nasdaq Composite closed up 0.27%. The Dow Jones Industrial Average gained 0.19%, while the S&P 500 climbed 0.28%. Markets were largely focused on the Federal Reserve’s policy decision on Wednesday. The central bank held rates steady, passing with a 10-2 vote, and largely in line with expectations. “Inflation remains elevated,” the Fed said in the statement. “The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal. The Committee will deliver price stability.” However, market participants were split on whether this was the right decision amid rising inflation and soaring energy prices. DoubleLine Capital CEO Jeffrey Gundlach said the Fed should raise rates, pointing to the two-year Treasury yield and a steepening yield curve. Others, including University of Michigan economist Betsey Stevenson and BlackRock’s Rick Rieder, said waiting is justified. Mohamed El-Erian, Chief Economic Advisor at Allianz, said in a post on X, “Quite a few of those now calling for rate hikes because inflation has exceeded target for over five years supported a series of rate cuts last year—when inflation had already been above target for four years. This isn't an argument against a policy response; inflation demands one. But there remains far too much focus on monetary policy and far too little on tools better suited to the task, including fiscal consolidation.” Meanwhile, results from Alphabet Inc. (GOOG, GOOGL) were also in focus in the extended trading hours. The Google parent’s shares slid nearly 10% in the overnight session after third-quarter (Q3) adjusted earnings per share and revenue missed Street expectations. Negative free cash flow of $9.07 billion and a full-year capital expenditures forecast of $195 billion to $205 billion also weighed on sentiment. Other artificial intelligence stocks slipped in sympathy, with Nvidia Corp. (NVDA) falling about 1% at the time of writing, while Micron Technology Inc. (MU) fell nearly 4%. Markets will now turn their attention to the Personal Consumption Expenditures (PCE) price index report. The first reading of third-quarter GDP and weekly jobless claims are also due. Meanwhile, on the geopolitical front, Iran and the U.S. offer conflicting accounts of negotiations for a peace deal. Iranian Foreign Minister Abbas Araghchi said Tehran remains in close contact with mediators on proposals to implement its seven-day plan to reopen the Strait of Hormuz. Meanwhile, U.S. President Donald Trump denied reports that he had asked Vice President JD Vance to initiate peace talks with Iran, saying the contact instead concerned Tehran’s need for medical supplies.

Dow, S&P 500, Nasdaq Futures Mixed After Fed Holds Rates Steady: GOOG, GOOGL, IOVA, MSFT, NOW In Focus
Europe
The Guardian

Europe’s central bank chief, Christine Lagarde, steps down for ‘freedom of speech’

In a video message on social media, Lagarde said it had been a ‘great pride and huge privilege’ to serve at the ECB. Photograph: Athit Perawongmetha/ReutersView image in fullscreenIn a video message on social media, Lagarde said it had been a ‘great pride and huge privilege’ to serve at the ECB. Photograph: Athit Perawongmetha/ReutersChristine LagardeEurope’s central bank chief, Christine Lagarde, steps down for ‘freedom of speech’Possible candidate to run World Economic Forum departs ECB nine months early, saying she wants to speak her mind about world affairs Christine Lagarde, the eurozone’s top central banker, has said she is stepping down nine months early to speak her mind about world affairs and confront the “misrepresentation of the truth”. Ending months of speculation about her future at the European Central Bank, Lagarde said she would quit her role as president in March rather than October next year because the rules of neutrality that governed her job prevented her from influencing debate about financial and economics affairs. She spoke at the end of a press conference to explain the ECB’s decision to hold interest rates – maintaining its key deposit rate at 2.5% – despite inflation climbing to 3.8% last month, its highest since September 2023. Lagarde said: “I ‌want to have the freedom of speech, the freedom of expression and the freedom ‌to engage on matters that are not monetary policy matters.” The former managing director of the International Monetary Fund has been tipped as a candidate to take over the running of the World Economic Forum, which holds its annual meeting in Davos each January. The WEF founder, Klaus Schwab, stepped down last year after being accused of financial and ethical misconduct, which he denies. Lagarde’s early departure fires the starting gun on the race to replace her as ECB chief, at a time when the eurozone is struggling with weak growth and above-target inflation. Potential candidates include the former Dutch central bank president Klaas Knot, the Spanish banker Pablo Hernández de Cos, the German central bank president, Joachim Nagel, and Nadia Calviño, the president of the European Investment Bank. The European Council made up of EU heads of state appoints the head of the ECB, which sets monetary policy across the eurozone. There has been speculation that Lagarde, a former finance minister of France, has been encouraged to quit early by the French president, Emmanuel Macron, so her successor can be appointed before the possibility of a far-right or far-left presidential candidate being elected to the Élysée Palace. Lagarde will also be able to participate in next April’s elections. She noted that ECB officials were bound by strict rules on not appearing partisan. “We have an obligation of neutrality; we comment on the situation with the focus on monetary policy,” Lagarde said, adding that the mandate was “the price we pay for being independent”. Lagarde said she no longer ‌felt comfortable staying silent on broader global issues. “I’m interested in the truth, and I see the truth being very often damaged, contradicted by misrepresentation,” she ​said, without elaborating. Drawing on more than two decades in international economic and financial roles, she said she had more to contribute. “There are things that I can say – whether people will listen or not is another story. But I feel that I ⁠should say those things and I cannot do so in my current ​position.”

Europe’s central bank chief, Christine Lagarde, steps down for ‘freedom of speech’
North America
CNBC Finance

GM will switch to Nasdaq from the NYSE on Nov. 17

DETROIT — General Motors plans to transfer shares of its common stock from the New York Stock Exchange to the Nasdaq as the automaker attempts to position itself more as a technology-focused company. The Detroit automaker said Tuesday that it expects to begin trading as a Nasdaq-listed company on Nov. 17. Its ticker symbol is expected to remain "GM," the company said. "GM's customer-focused, technology-driven strategy is creating value for our stockholders, making Nasdaq a natural home for our listing as we grow," GM CFO Paul Jacobson said in a release. "We're grateful for our long-standing partnership with the New York Stock Exchange and its remarkable legacy." GM noted the move will provide eligibility for potential inclusion in the Nasdaq-100 Index. Current shareholders do not need to take any action with respect to the transfer, the company said. The switch marks a notable loss for the NYSE, as GM first listed on the exchange in 1911. The Detroit automaker also relisted on the stock exchange in 2010 following a government-backed bankruptcy. GM follows other companies such as Walmart, DoorDash and Palantir Technologies that have transferred from the more traditional NYSE to the historically technology focused Nasdaq in recent years. Hilton Worldwide Holdings last week also announced plans to move trading from the NYSE to Nasdaq. The key drivers for a listing transfer differ from company to company, but the Nasdaq in 2024 said common reasons include "index inclusion opportunities, cost effective fee structure, brand visibility partnership, access to Nasdaq's event space, and Nasdaq's suite of investor relations and ESG products." GM's decision comes a week after the automaker held a technology-focused event where executives laid out the company's roadmap for artificial intelligence and self-driving vehicle technologies. Shares of GM, which has been aggressively buying back stock, have more than doubled since 2024. GM stock closed Tuesday at $80.54 a share, up 5%. The company's market cap is roughly $64.4 billion. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

GM will switch to Nasdaq from the NYSE on Nov. 17
Europe
The Guardian

US economy grows faster than expected but inflation rises to 3.7%

A person shops for groceries in New York City on 26 August 2026. There has been a sharp deterioration in consumer sentiment. Photograph: Jeenah Moon/ReutersView image in fullscreenA person shops for groceries in New York City on 26 August 2026. There has been a sharp deterioration in consumer sentiment. Photograph: Jeenah Moon/ReutersUS economyUS economy grows faster than expected but inflation rises to 3.7%Commerce department data contrasts with sharp deterioration in consumer sentiment as midterms loom The US economy grew faster than expected in the third quarter while inflation accelerated in September, according to new commerce department data released on Thursday, less than a week before the midterm elections that will determine control of Congress. Gross domestic product (GDP) increased at a 3.4% annualized rate last quarter, the commerce department’s ⁠bureau of economic analysis said in its advance estimate of the third-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP advancing at a 3.2% pace. The growth comes as resilient consumer spending and AI-driven ⁠business investment has more than ⁠offset the impact ​of higher oil prices stemming from the conflict in the Middle East. The change is in stark contrast to ​households’ downbeat assessment of the economy, reflected in ‌Donald Trump’s record-low approval ratings ‌and a sharp deterioration in consumer sentiment. The economy is expanding at a pace that is well above what some Federal Reserve officials regard as the non-inflationary growth rate of about 2%. New data from the personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, showed that prices increased 0.5% for the month in September and the annualized inflation rate rose to 3.6%. In August, the PCE’s inflation rate was 3.4%. Core inflation, which excludes volatile food and energy prices, rose to an annualized 3.1%. The consumer price index, a separate measure of inflation released by the Department of Labor that was released earlier in October, had also shown inflation rising in September, with the annualized inflation rate going from 3.4% in August to 3.7% in September. Despite the rise in prices, the US central bank on Wednesday left its benchmark interest rate in the 3.75%-4% range while acknowledging that inflation “remains elevated”. Increasing interest rates can slow inflation, at the risk of slackening economic activity and the jobs market. Because inflation is still hot, economists expect the Fed to raise rates in December. The Fed chairman, Kevin Warsh, told reporters “economic activity is expanding ‌at a strong pace,” noting that “while uncertainty remains, owing in part to geopolitical developments, domestic spending has been resilient.” Given the increasing dominance of AI-related spending, some economists said the ​strong GDP growth was probably not a true picture of the economy. Investors are increasingly focusing on the rising costs of long-term AI projects, in which the payoff is uncertain. Tech firms have borrowed huge sums over the past year for AI spending, a potential downside risk to equipment spending. Still, economists did expect ⁠this pillar of support to weaken, though a pullback in spending was likely. Consumer spending, ​which accounts for more ​than two-thirds of the economy, increased at ​a 3.8% pace in the July-September quarter after growing at a 3.8% rate in ​the second quarter. Historically low ‌layoffs and moderate ​hiring are helping ​to underpin spending, though wage gains have at times lagged behind inflation.

US economy grows faster than expected but inflation rises to 3.7%
North America
CNBC Finance

FedEx beats expectations, raises outlook in first report since calendar adjustment

FedEx on Wednesday reported quarterly earnings that beat Wall Street expectations on the top and bottom lines and raised its full-year outlook for its newly realigned fiscal year. Here's how the company performed for the period ended Sept. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company reported net income for the quarter of $290 million, or $1.21 per share, compared with $650 million, or $2.73 per share, during the comparable period a year prior. Adjusting for one-time items — including losses related to short-term investments, gains on the extinguishment of debt and certain restructuring costs — FedEx reported adjusted earnings per share of $3.74. It marks the first report of FedEx's realigned fiscal year, moving the end of its calendar from May 31 to Dec. 31. The report also comes after the company successfully spun out FedEx Freight into a separate publicly traded company. FedEx said its express U.S. segment operating income increased in the quarter, primarily driven by higher package yields and volume. "As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook," CEO Raj Subramaniam said in a statement. For the full year, the company is now expecting adjusted earnings per share of between $18 and $18.60, compared with a prior range of $16.90 to $18.10. FedEx also said it's revising its 2026 revenue growth expectation to a roughly 12% year-over-year increase, up from previous guidance of an 11% increase. Earlier this week, FedEx named former AutoZone executive Jamere Jackson as the company's new chief financial officer, effective Nov. 30. He replaces Claude Russ, who served as the interim CFO since June 1. John Dietrich was announced as stepping down from that role in April. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

FedEx beats expectations, raises outlook in first report since calendar adjustment
Europe
DW Economy

US moves to lift sanctions on Russia's shadow fleet could undermine Western pressure on Moscow and help fund its war in Ukraine.

The US is reportedly considering ways to convert "dark tankers" into legitimate vessels, allowing them to transport crude oil that is not subject to sanctions. To curb Russia's oil export revenues, the US and Europe have stepped up efforts to intercept tankers accused of violating sanctionsImage: Thibaud Moritz/AFPAdvertisementSince Russia's full-scale invasion of Ukraine, Moscow has increasingly relied on a so-called shadow fleet to bypass Western sanctions and transport its oil around the world. Other heavily sanctioned countries, including Iran and Venezuela, have also been accused of using such vessels to export petroleum products. These tankers often rely on deceptive practices like turning off their location transponders to evade detection and conceal the cargo's true origins or destinations. The fleet, which consists largely of aging, uninsured and poorly maintained tankers, has raised widespread concern across the shipping industry. Yet it has expanded rapidly in recent years and now accounts for nearly 19% of global oil tanker capacity, according to estimates by financial intelligence firm S&P Global. "The shadow fleet is a scourge," Elisabeth Braw, senior fellow at the think tank Atlantic Council, said, adding that "it is in nobody's interest" to have these ships sailing around in the world's oceans. She pointed out that these tankers undermine the maritime order and increase the risk of accidents and environmental damage. "Every country should use its leverage with Russia to ask it not to use the fleet," she told DW, noting that ultimately all countries suffer the consequences. To clamp down on the fleet and curb Russia's oil export revenues, the United States and European countries have stepped up efforts to intercept tankers accused of violating sanctions. The Trump administration, however, is reportedly considering lifting sanctions on some shadow fleet vessels and allowing them to transport oil that is not subject to sanctions. A US official told Reuters earlier this month that the move was intended to ease record-high global freight rates. Lifting sanctions on the shadow fleet "would decrease the effectiveness of the sanctions regime overall," said Michael Carpenter, senior fellow for Transatlantic Affairs at the International Institute for Strategic Studies (IISS). Such a move "rewards the aggressor and helps Moscow gain revenues to continue attacking Ukraine," he told DW.

US moves to lift sanctions on Russia's shadow fleet could undermine Western pressure on Moscow and help fund its war in Ukraine.