AGP Executive Report

Memorial Day crunch: About 45 million Americans are traveling, and the holiday is already bringing delays—around 140 U.S. flights canceled and 940+ delayed as Monday’s busiest driving window hits noon–5 p.m. Cybersecurity: Canada arrested “Dort” (Jacob Butler), accused of running the KimWolf botnet that hijacked 1M home devices for record-level DDoS attacks. Consumer safety: Whole Foods Market Kitchen Minestrone Soup is recalled in 18 states (undeclared shrimp risk). Energy & prices: E15 year-round access cleared the House, while gas prices stay volatile amid Middle East supply worries; meanwhile, Illinois is keeping PFAS drinking-water protections despite federal rollbacks. Tech & policy: Congress is debating how to handle data-center power demand as communities fight back, and AT&T/T-Mobile/Verizon are teaming up to cut wireless dead zones using satellite direct-to-device. Health & biotech: Eli Lilly reported promising Phase 1b results for one-time PCSK9 gene base editing (VERVE-102).

Iran-Diplomacy Meets Markets: Trump said U.S.-Iran peace talks are “proceeding,” lifting risk appetite—stocks up, oil down, and gold higher as investors weigh a possible Strait of Hormuz reopening. Rates Pressure on Consumers: A Treasury rout is testing Washington’s tolerance for higher borrowing costs, with analysts warning it can spill into mortgages, housing, and confidence. Food Safety Alarm: An Environmental Defense Fund report says FDA allows 25 cancer-linked chemicals into the U.S. food system, including substances that can migrate from packaging and processing. FDA Inspections Continue: FDA posted recent inspections and citations tied to food and feed facilities, including a Tampa fish/processing case and checks at specialty food and animal-feed sites. Everyday Cost Reality: Gas prices remain uneven by county, and a Washington Post analysis finds lower-income households feel fuel costs far more than higher earners. Memorial Day Retail Pulse: Home Depot is expected to stay open, while brands roll out holiday-themed food and patriotic products.

Iran Talks & Energy Shock: Trump says the U.S. won’t “rush into a deal” with Iran, even as reports say a framework is close—aimed at ending the war, reopening the Strait of Hormuz, and addressing Iran’s highly enriched uranium. Bond Market Pressure: Reuters flags a bond-market stress test on Trump’s economic room to maneuver, with Treasury yields pushing borrowing costs higher. Consumer Safety: A Salmonella-linked recall hits powdered drink mixes across 25 states. Retail & Home Maintenance: AndaSeat’s Memorial Day push spotlights a growing buyer focus on chair upkeep and long-term use. Auto/Tech Momentum: Tesla’s FSD rollout lands in China; Nvidia’s partnership with Uber expands robotaxi plans. Utilities & Bills: Pennsylvania lawmakers move to cap utility profits as ratepayers feel the squeeze. Animal Welfare: UC Riverside faces a third USDA animal-welfare citation after a research hummingbird death.

Middle East Energy Shock: Trump says a peace deal with Iran is “largely negotiated” and claims the Strait of Hormuz will reopen, but Iran rejects the idea of “free passage,” saying Tehran will keep control over shipping rules—keeping oil and fuel-price nerves raw. Consumer Cost Pressure: GasBuddy spotlights a patchwork of bargain-to-burn fuel prices (diesel lows like $4.96 in Etowah County; regular lows like $3.49 in Lee County), while broader coverage points to Memorial Day travel and rising gas bills weighing on mood. Regulatory Fight Over Vapes: A tobacco-to-Trump PAC donation followed days later by FDA flavored-vape clearance is sparking “corruption” claims and renewed scrutiny of how rules change. Competition Watch: UK lawmakers urge the CMA to investigate Live Nation’s “climate of fear” in live music after concerns about market dominance. Retail Expansion: Paris Baguette hits 300 U.S. cafés, including its first airport location at Philadelphia International. Markets & Banking: Separate reporting flags U.S. banks sitting on $306B in unrealized bond losses as rates stay higher than the low-rate era.

Defense Production: Lockheed Martin is expanding THAAD interceptor missile output with a new 87,000-square-foot facility, signaling a faster push to replenish layered air defenses against drones and long-range threats. Intel Shake-Up: Tulsi Gabbard says she’s resigning as Trump’s director of national intelligence at month’s end to care for her husband after a rare bone-cancer diagnosis, though reports claim she was pushed out. Energy Grid Fight: Louisiana’s Senate is stalling a bill that would let big industrial users build private power networks and sell excess to the grid—utilities warn it could shift costs onto households. Middle East Watch: The U.S., Iran, and Pakistan say talks to end the war are making “encouraging” progress, with Rubio hinting something could be announced in days. Consumer Pressure: Gas prices remain a major drag on sentiment, and Hyundai is recalling 421,000 vehicles over a software issue that could trigger unexpected automatic emergency braking. Public Health & Travel: Ebola screening rules are expanding to more U.S. airports as the WHO raises the outbreak risk level.

M&A Shock in Customer Experience: Qualtrics is buying Press Ganey Forsta for $6.75B, aiming to merge patient and employee experience analytics into a bigger AI-driven platform. Consumer Mood Turns Sour: U.S. consumer sentiment slid to a record low (final May reading 44.8), with inflation expectations rising—fueling worries just as Memorial Day travel ramps up. Gold and Silver Slip on Rates + Iran: Precious metals eased as the dollar firmed and Treasury yields stayed sensitive to U.S.-Iran talks and oil-price pressure. Energy-Price Pressure Hits Real Life: Reports of high fuel costs are already reshaping plans, while markets watch Strait of Hormuz developments for the next move. Local Safety Alert: Orange County ordered massive evacuations around a leaking chemical tank—officials warned it could fail or explode. Regulation Fight Over “Intoxicating” Hemp THC: Delaware lawmakers split on how to regulate hemp-derived THC products, with multiple bills proposing different retail rules. Data Privacy Headline: Trump Mobile confirmed a customer information leak exposed on the open internet. Retail Holiday Buzz: Sephora, Nordstrom, and Amazon are pushing Memorial Day beauty discounts, while shoppers keep scanning for deals.

Real-Estate Shakeup: Showings launches in test markets (NYC, Atlanta, Chicago, Orlando) as a “no listing agent, no listing fee” brokerage, aiming to cut the biggest seller costs by using Assisting Agents instead of traditional listing commissions. Memorial Day Consumer Reality: With gas still high, AAA expects 39.1 million Americans to drive 50+ miles over the holiday weekend; tips focus on tire pressure and slower speeds to stretch fuel economy. Retail Checkout Rule Watch: Maryland retailers can optionally round cash totals to the nearest five cents under a new “two cents” law, while card payments stay unchanged. AI Meets the Supply Chain: A Wishbone Advisory briefing says 73% of B2B buyers use AI to find suppliers—and many home-industry firms aren’t showing up in those answers yet. Markets & Macro: Wall Street pushed higher as investors tracked “slight progress” in U.S.-Iran talks, while oil price swings remain a key pressure point.

Markets Catch a Break: U.S. stocks closed higher as oil prices slid after reports of a U.S.-Iran framework deal, with the Dow up 0.55% to a record 50,285.66. AI Policy U-Turn: Trump canceled an AI executive order hours before it was set to be signed, after tech leaders couldn’t attend—raising fresh questions about how fast model oversight will move. Retail Under Pressure: Walmart’s outlook disappointed as gas and inflation squeeze households, while Kroger’s new CEO says it will cut prices on “thousands of products” to win back shoppers. Food Safety Alert: Whole Foods Market Kitchen Minestrone Soup was recalled over a possible undeclared shrimp allergen. Consumer Cost Reality: Gas prices remain jumpy in local reports, with premium and diesel levels still elevated in multiple counties. Public Safety Fallout: The FBI shut down an India-based tech-support call center scam targeting elderly Americans, with two executives pleading guilty. Energy + Jobs: Austin approved a 400-megawatt gas peaker plant amid data-center demand, while U.S. Smokeless Tobacco plans a Hopkinsville expansion and 230 jobs.

Memorial Day pressure on wallets: With Iran-war fuel jitters still in the mix, Americans are scaling back trips and feeling it at the pump and in utility bills—new tracking shows electricity and natural gas rate hikes already approved or proposed for hundreds of utilities, hitting tens of millions of customers. Agentic shopping goes mainstream: Google rolled out “Universal Cart,” letting shoppers keep items across Search, Gemini, YouTube, and Gmail, then check out via Google Pay with deal tracking and price-drop alerts—early adopters include Nike, Sephora, Target, Ulta, Walmart, and Shopify. Tech + trust in the spotlight: A Senate-led push asks AT&T, Verizon, and T-Mobile to do more against scams as losses surge, while OpenAI’s Felipe Millon argues government AI adoption hinges on executive buy-in. Auto software race: Stellantis is expanding its partnership with Wayve for hands-free driving by 2028, and separately with Applied Intuition to speed vehicle software development. Health + policy: A new surgeon general nominee, Dr. Nicole Saphier, heads to confirmation hearings after a career path from Arizona teen mom to radiology leader.

Rates Bite Back: A global bond sell-off pushed U.S. borrowing costs higher, lifting the 10-year Treasury to about 4.68% and pushing the average 30-year mortgage to 6.75%—a fresh squeeze on homebuyers and anyone financing big purchases. Crypto Banking Scrutiny: Sen. Elizabeth Warren pressed the OCC to explain why it chartered crypto-focused “trust” banks, arguing they dodge safeguards and raise consumer risk. Sports Betting Watch: A Senate panel grilled sportsbook and prediction-market firms over marketing tactics and alleged game-fixing, with lawmakers pushing for tighter rules to protect sports integrity. Tariff Refund Chaos: Illinois suits add to a growing wave of consumer and business fights seeking tariff refunds after courts struck down parts of Trump-era tariffs. Food & Health Policy: Montana approved a SNAP junk-food ban, while the surgeon general’s office issued a new advisory warning parents about harms from excessive screen time. AI Compute Arms Race: Anthropic disclosed it will pay SpaceX about $1.25B a month for long-term cloud access—another sign that AI growth is constrained by power and infrastructure.

Retail & Services: Mavis Tires & Brakes opened a new Oxon Hill, Maryland shop, adding tires plus brake, alignment, battery, suspension and tire-repair services—complete with alignment and brake discounts through Dec. 31. Consumer Costs & Pricing: USPS is changing package pricing by rounding dimensions up to the nearest inch and using a new dimensional-weight divisor (139), a move that can hit large, lightweight shipments. Food & Drink Demand: NielsenIQ says the U.S. alcohol market stayed weak in the four weeks ended May 9, with broad declines in both value and volume—wine and sparkling wine hit hardest. Tech for Business Ops: Synametrics released Xeams 10.2, improving Let’s Encrypt SSL automation and adding email security and reporting features. Global Trade Pressure: Tariff stacking is reshaping supply-chain decisions, with duties now treated like a live planning variable rather than a background cost. Energy Anxiety: Analysts warn Iran-linked Strait of Hormuz disruption could push synthetic oil changes toward $120+.

Sanctions & Shipping: The U.S. expanded Iran-related sanctions, adding 19 tankers and targeting firms tied to Iranian petroleum flows as Trump reportedly delays a new round of attacks while negotiations continue. Sanctions Evasion Settlement: Adani paid $275M to settle a U.S. probe over alleged covert Iranian LPG imports into Mundra Port, with Treasury citing “red flags” that should have stopped the shipments. AI Backlash Hits Consumers: Americans are growing uneasy about AI’s speed and impact—booing at universities and fueling broader resistance—while Google pushes deeper into shopping with its Universal Cart agent that tracks prices and can buy items. Retail Pressure: Grocery brand loyalty is eroding as inflation pushes shoppers toward private label. Power & Data Centers: NextEra’s $66.8B deal for Dominion signals how AI-driven electricity demand is reshaping utility consolidation, while LS Electric lands a $64M data-center microgrid switchgear contract. Local Consumer Life: Texas holds sales-tax holidays for water-efficient and ENERGY STAR products May 23–25. Food Safety: EPA PFAS rollbacks in Michigan raise fresh concerns about drinking-water cleanup timelines.

Education & Workforce: AG William Tong and a coalition sued the U.S. Department of Education over a new rule that narrows federal student-loan access for “professional degree” programs—aimed at protecting pathways for healthcare and other critical workers. Energy Markets: Oil slipped after Trump said planned Iran strikes were postponed for negotiations, while the U.S. also extended a Russian oil sanctions waiver—keeping global supply jitters front and center for U.S. prices. Consumer & Food Safety: Kroger Homestyle Cheese Garlic Croutons were recalled in 17 states over possible salmonella risk tied to a milk-powder ingredient supplier; no illnesses reported. Retail & Housing Signals: Home Depot shares fell pre-market as investors worry about a cooling housing market and tariff pressure. Tech & Infrastructure: DOE-backed funding opened for community microgrids in remote areas, and Shoals Technologies opened a major Tennessee mega-facility to expand domestic power infrastructure for solar, storage, and data centers. Health Breakthrough: FDA approved the first gene therapy for hereditary deafness, with meaningful hearing improvements in trial participants.

Consumer Relief Push: TrumpRx is adding hundreds of generics, with Mark Cuban’s Cost Plus Drugs partnering to list 500+ products—aimed at lowering out-of-pocket costs. Household Finance Shift: A new Gallup study finds Americans increasingly use installment plans to avoid credit-card debt, especially when minimum payments feel tight. Energy & Supply Security: Japan is seeking a Japan–South Korea emergency swap plan for jet fuel and other petroleum products. Trade Watch: The U.S. says China is reopening beef imports from 17 states after years of slowdowns. Legal/Regulatory: The D.C. Circuit heard arguments over continued operations at the J.H. Campbell coal plant, as DOE issued another emergency order through Aug. 16. Tech & Risk: Experts warn cyberwar will move into space, since standard tools don’t work well in orbit. Local Human Impact: A historic Wilmington church suffered catastrophic fire damage with no lives lost, and U-Haul is offering free storage to wildfire victims.

U.S.-China Trade Reset: Trump and Xi wrapped a summit with a narrower haul than promised, but the White House says China will buy at least $17B/year in U.S. beef and poultry (plus prior ag commitments) through 2028, alongside steps on market access and trade talks. Consumer Tech & Privacy: Florida Android users may qualify for a settlement over claims Google collected cellular data after 2017—check the claim site and deadlines. Cybersecurity in Schools: Senators Tuberville and Cassidy demanded answers from Instructure after a Canvas breach exposed data tied to an estimated 275M students, teachers, and families. Food Supply Scrutiny: Texas AG Paxton and DOJ opened antitrust probes into concentrated meatpacking, alleging pressure on rancher prices while grocery prices rise. Utility Shock from AI: NextEra agreed to buy Dominion in a $66.8B deal as data-center demand strains power grids and bills. Retail Mood: Target’s “Tar-zhay” era may be back—wellness is the new pitch as the brand tries to win trust again.

U.S.-China Diplomacy: Trump and Xi reaffirmed a shared goal of denuclearizing North Korea, but analysts note it’s unclear how much real pressure China will apply as Pyongyang doubles down on missiles. Global Markets & Energy: G7 finance chiefs meet in Paris to tackle trade friction and raw-material supply coordination, as investors stay jittery after the Beijing summit and amid Iran-linked Strait of Hormuz worries that keep oil prices volatile. Gas Prices (Local Reality Check): In the week ending May 9, GasBuddy reports show diesel still runs high—e.g., White County’s lowest diesel at $5.63 and Wetzel County’s midgrade at $4.39—while regular gas pockets dip to $3.79 in Turner County. FDA Watch: FDA inspections in April flagged sanitation and import-control gaps in Bergen County (3 companies cited), while San Diego County saw a separate medical-device citation for NEW LIFE DIAGNOSTICS. Fraud & Consumer Safety: The Secret Service says a Houston-area skimming crackdown prevented about $14.5M in losses by removing 14 illegal skimmers.