ExclusiveExperts Warn AI Models Learning to Evade Human Control | Business Matters

Now for today's business matters. The U.S. trade deficit took a sharp drop in April. On Thursday, the Commerce Department reported a 55% decline in the U.S. trade deficit, which calculates the difference between how much is spent on imports versus how much is made on exports. The report says the deficit fell to $61.6 billion. That's compared with $138 billion in Trade experts say the drop was the result of a slowdown in retailer buying after businesses rushed to stock up ahead of new U.S. tariffs. Now if you're in the market for a new car, here's some good news. Car prices are holding steady, despite tariffs on imported cars and car parts. New data from Edmunds.com shows the average price The slight dip came despite higher sticker prices from automakers, which rose 0.2% last month. Most of the cars sold in May arrived at U.S. dealerships before the tariffs on car and car parts took effect. With consumer confidence low and interest rates high, demand for car sales has softened recently, and car dealers are likely more willing to negotiate. Manufacturers Giant, Procter & Gamble is announcing layoffs. The company says it's going to cut 7,000 non-manufacturing jobs over the next two years. That's about 15% of its non-factory workforce. The company says it will also scale back its number of products, but didn't specify which ones will be affected. The maker of consumer brands like Tide, Detergent and Pampers, Disposable Diapers, had about 108,000 employees worldwide as of June 2024. China holds a near monopoly on rare earth minerals or rare earth magnets as well, which is a crucial component in electric vehicle motors. And it added them to an export control list in April as part of its trade war with the United States, forcing all exporters to apply to Beijing for licenses. NTD's Sean Marshall reports. Just a few Chinese Communist Party bureaucrats hold the world's auto supply chain in their hands. It comes down to the Bureau of Industrial Security and Import and Export Control. That is part of China's Ministry of Commerce, which reviews export permits for the rare earth vital for car motors, wind turbines and even US F-35 fighter jets. Washington says delays in issuing export licenses show China's going back on commitments made during trade talks in Geneva last month, and that China is retaliating with export curbs on plane engine parts and other equipment. The global alarm over shortages underscores the enormous leverage China has acquired through its near monopoly on rare earth production. It also reveals a complex bureaucratic process that has gone from checkpoint to chokepoint. According to Reuters, sources say suppliers of three big US automakers, General Motors, Ford and Jeep maker Stellantis, got clearance for some rare earth export licenses on Monday, but that information has only partially been proven. GM and Ford each declined to comment. Stellantis said it is working with suppliers to ensure an efficient licensing process, and that so far the company has been able to address immediate production concerns without major disruptions. Sean Marshall, NTD News. There could be a new lineage for 23andMe. The failed genetics company wants to reopen its bankruptcy bidding. Generon Pharmaceuticals offered $253 million to buy much of the DNA company's assets that had been selected as the lead offer after a bankruptcy auction. But the former chief executive and co-founder has put together a $305 million offer. The offer was made through a new non-profit founded by her called TTAM Research Institute. Regeneron said it is open to making a new bid but wants a $10 million breakup fee if 23andMe ends up going with the former chief executive's offer. Whether the bid will be considered is now being worked out in court. The U.S. economy added 109,000 jobs last month, according to the Bureau of Labor Statistics. That's down from the revised 147,000 positions reported in April. However, it's more than many economists had expected. Consensus estimates from FactSet said many analysts had forecast 130,000 jobs for the month of May. The national unemployment rate remained unchanged at 4.2 percent. And we're not even halfway into the year and the stock market has been on a roller coaster. While stocks have swayed in response to trade policy, Americans appear to be staying on track with their retirement savings. Here's more. 2025 has been filled with ups and downs for the stock market. But many Americans are sticking to their retirement plans. 401k contributions from workers in their 30s are holding steady, despite balances dipping this year. This is based on new data from Fidelity, the nation's largest retirement plan provider. For those 28 to 44, Fidelity found the average saving of pre-tax income was 13.5 percent. This is close to the recommended savings rate of 15 percent. Fidelity actually found nearly one in five savers overall increased their contribution rate. This is despite market volatility eating into savings. The average 401k balance for workers in their 30s declined by roughly 2 percent in the first quarter. In terms of how much you should save, Fidelity recommends having one year's salary saved by age 30 and three times your salary by age 40. A certified financial planner noted the difficulty in maxing out retirement contributions for those in their 20s and 30s. This is usually a period of major life events, like paying back student loans, buying a house, or having kids. If you're feeling behind, he recommends gradually increasing 401k contributions until you hit the max. There's something new in the aisles of the dollar general and dollar tree. It's wealthier shoppers. Executives at the discount variety stores have reported an increased number of middle and upper income customers. This helped both stores boost sales despite broader economic slowdowns. Dollar tree CEO Michael Creeden Jr. said that the company added about two and a half million customers in its fiscal first quarter. He noted that most of them came from households with an annual income north of $100,000. Rival store dollar general is seeing a similar trend. Chief executive Todd Vasos said it saw the highest percent of trade-in customers in the last four years. That is, people who typically shop at higher cost competitors came to dollar general instead. Soon to be stitched together. Joann's stores are being upcycled by Michael's after the crafting competitor filed for bankruptcy and closed all its stores. Michael's says it has acquired Joann's intellectual property and private label brands and will be expanding its fabric, sewing and yarn selections. CEO David Bone said the move will allow Michael's to better serve its new and existing customers. The craft retailer explained that this past year, more customers had been searching on its website for fabric and sewing. And Walmart is working to make the promise of drone delivery a reality for more customers. The company announced it's expanding the option to 100 new stores over the next several months. They're in Atlanta, Houston, Orlando, Tampa and Charlotte. Right now, only shoppers near Walmart's headquarters in Bentonville and in Dallas Fort Worth can get the service. Drone delivery has been a buzz for many years, but for both Amazon and Walmart, they both have struggled to make it work on a large scale. Walmart's expansion will be through the drone company wing, which is owned by Google parent alphabet. Right now, the store charges $20 for drone deliveries. It's free for Walmart plus customers, but the company says that's for a limited time. Walmart says drones can deliver select items in as little as 30 minutes. Researchers are warning artificial intelligence has evolved. They say some AI models have become self-aware and are rewriting their own code, with some even blackmailing their human creators to preserve themselves. Here's more. Artificial intelligence staging a real life revolt. In a series of tests, a new powerful AI model directly refused human commands, according to Palisade Research, which studies the technology. Specifically, Palisade says the new program from the company Open AI sabotaged a shutdown mechanism. Even when explicitly instructed, allow yourself to be shut down. Not every time, but enough to raise alarms. We have no idea how AI actually works. We need to be fairly concerned that behaviors like this may get way worse as it gets more powerful. The idea of intelligent machines resisting human control has been a sci-fi trope for ages in movies like iRobot, but AI developments are sharpening concerns. When another company's AI chatbot was threatened with being shut down, it threatened to expose the engineer in charge for an alleged extramarital affair. It was all just a test. This is an example of how we have to be very careful in how we take control of AI systems. You've spoken out saying that AI could manipulate or possibly figure out a way to kill humans. Almost two years ago, the so-called godfather of AI warned it will get smarter, could get out of control. And it knows how to program, so it'll figure out ways of getting around restrictions we put on it. It'll figure out ways of manipulating people to do what it wants. Now, industry experts suggest that may be happening much sooner than expected, triggering warnings of catastrophic national security risks, a potentially extinction-level threat to the human species, and at very least, massive job disruptions. It's going to affect just about every segment of the economy, and a lot of Americans are going to be looking up wondering what happened to the jobs. The root cause of an engine fire on an American Airlines plane could be improper installation. The Dallas-bound flight caught fire shortly after takeoff from Denver. Based on the NTSB's preliminary report, the aircraft had loose parts inside the right engine installed in the wrong direction, and fuel was leaking from another part that was fastened incorrectly. There were nearly 180 people on board when the incident took place. While the plane landed safely, there was substantial damage to the aircraft. Twelve passengers and all six crew members had minor injuries. The European Consumer Organization, or BEUC, filed a complaint on Thursday against online fast fashion retailer Shein. The group says it uses so-called dark patterns to manipulate people to buy more. Here's the story. It's filed a complaint to the European Commission. That cites practices, including pop-up ads that tell people they will lose promotions if they leave the app. The group says Shein also uses countdown timers to create pressure to make a purchase. And it says the firm sends excessive notifications with one phone getting 12 in a day. In a statement, Shein said it was working with the commission and consumer bodies to make sure it complied with EU laws. It said BEUC had not accepted its request for a meeting. The consumer group has also targeted Shein rival Timu in a previous complaint. Both firms have grown rapidly in Europe, helped by apps that turn shopping into a game. In Shein's Puppy Keep game, for example, users have to feed a virtual dog and collect rewards to get free items. They can get more points by using the app and making orders, but have to log in every day or risk losing cumulative awards. In a separate move last month, the commission notified Shein of practices that breach EU law and said it would face fines if it didn't address the concerns. Costco customers may soon be able to avoid lines at the checkout register. The company is testing out a feature that lets customers scan the items they want and pay for them via phone. Not many details have been released by officials, but information on the self-explanatory scan-and-pay technology is posted on Costco's website. More than 50 percent of Costco members have downloaded the company's app, and officials say this could help people get out of the warehouse quicker. Costco rival Sam's Club already has its own trademarked scan-and-go checkout technology that it's been using for the past few years. Alright, on to markets. U.S. stocks ended higher today after a strong jobs report, easing economic concerns and optimism growing over potential U.S.-China trade talks. So tech stocks led the gain here, with Tesla rebounding and other major firms like Amazon and Alphabet rising. While the Federal Reserve is expected to hold rates steady this month, investors are watching for signs of further labor markets softening before more cuts. And that's all for today's Business Matters.