Annualized

• U.S. AI startups including OpenAI and Anthropic are facing scrutiny over the methods they use to calculate annualized revenue. • The companies are applying different accounting standards to their revenue claims as they prepare for initial public offerings. • These discrepancies create uncertainty for investors regarding the actual financial health and valuation of AI firms.

• Eurozone retail sales grew by an annualized rate of 1.6% in May, surpassing market expectations. • Jack Allen-Reynolds, Deputy Chief Eurozone Economist at Capital Economics, noted that this growth suggests the surge in energy prices will have a minimal impact on overall GDP. • The data is significant as it indicates resilient consumer spending despite economic pressures and fluctuating energy costs.

• Real GDP expanded at a 2% annualized pace in Q1 2026, driven by business investment surging to its fastest rate in nearly three years on AI equipment and software spending. • Consumer spending rose modestly at 1.6%, down from 1.9% last quarter, impacted by bad winter weather and March energy price spikes. • ISM Manufacturing PMI hit 52.7 and Services PMI 53.6 in April, marking continued expansion with Prices Paid Index steady at 70.7 signaling persistent inflation pressures.