[1/5]Union members with the International Longshore and Warehouse Union Canada (ILWU) remove strike signs from a picket line outside the despatch hall in Vancouver, British Columbia, Canada July 13, 2023. REUTERS/Chris Helgren
VANCOUVER, British Columbia, July 13 (Reuters) – Dock workers at ports along Canada’s Pacific coast and their employers accepted a tentative wage deal on Thursday, ending a 13-day strike that disrupted trade at the country’s busiest ports and risked worsening inflation.
“The British Columbia Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union (ILWU) Canada are pleased to advise that the parties have reached a tentative agreement on a new 4-year deal,” the BCMEA said in a statement.
The ILWU also said there was an agreement, which must now be ratified by both sides. The union had made demands including wage increases and expansion of their jurisdiction to regular maintenance work on terminals.
Some 7,500 dock workers represented by the ILWU walked off the job on July 1 after failing to reach a new work contract with the BCMEA representing the companies involved.
The strike upended operations at two of Canada’s three busiest ports, the Port of Vancouver and the Port of Prince Rupert – key gateways for exporting the country’s natural resources and commodities and bringing in raw materials.
Economists have warned that the strike could trigger more supply-chain disruptions and fuel inflation while the Bank of Canada tries to cool the economy.
“The scale of the disruption has been significant,” Labour Minister Seamus O’Regan and Transport Minister Omar Alghabra said in a joint statement.
“We do not want to be back here again. Deals like this, made between parties at the collective bargaining table, are the best way to prevent that.”
On Tuesday, O’Regan said the differences between the parties were not sufficient to justify a continued work stoppage.
He offered terms drafted by a federal mediator and gave the union and employers 24 hours to decide if they were satisfied. The deal was reached at 10:20 am PT (1720 GMT), 10 minutes before the deadline, the ILWU said.
The parties, with help from federal mediators, had been negotiating a new contract since late April.
More than half of Canadian small business owners in a survey released on Tuesday said the strike at the Port of Vancouver will affect their operations, according to preliminary results from the Canadian Federation of Independent Business.
The strike is estimated to have disrupted C$6.5 billion of cargo movement at the ports, based on the industry body Canadian Manufacturers & Exporters’ calculation of about C$500 million in disrupted trade each day.
Reporting by Ismail Shakil and Steve Scherer in Ottawa, editing by Deepa Babington, Alexandra Hudson
July 13 (Reuters) – The sale of struggling Silicon Valley startup zGlue’s patents in 2021 was unremarkable except for one detail: The technology it owned, designed to cut the time and cost for making chips, showed up 13 months later in the patent portfolio of Chipuller, a startup in China’s southern tech hub Shenzhen.
Chipuller purchased what is referred to as chiplet technology, a cost efficient way to package groups of small semiconductors to form one powerful brain capable of powering everything from data centers to gadgets at home.
The previously unreported technology transfer coincides with a push for chiplet technology in China that started about two years ago, according to a Reuters analysis of hundreds of patents in the U.S. and China and dozens of Chinese government procurement documents, research papers and grants, local and central government policy documents and interviews with Chinese chip executives.
Industry experts say chiplet technology has become even more important to China since the U.S. barred it from accessing advanced machines and materials needed to make today’s most cutting edge chips, and now largely underpins the country’s plans for self-reliance in semiconductor manufacturing.
“U.S.-China competition is on the same starting line,” Chipuller chairman Yang Meng said about chiplet technology in an interview with Reuters. “In other (chip technologies) there is a sizeable gap between China and the United States, Japan, South Korea, Taiwan.”
Barely mentioned before 2021, Chinese authorities have highlighted chiplets more frequently in recent years, according to a Reuters review. At least 20 policy documents from local to central governments referred to it as part of a broader strategy to increase China’s capabilities in “key and cutting-edge technologies”.
“Chiplets have a very special meaning for China given the restrictions on wafer fabrication equipment,” said Charles Shi, a chip analyst for brokerage Needham. “They can still develop 3D stacking or other chiplet technology to work around those restrictions. That’s the grand strategy, and I think it might even work.”
Beijing is rapidly exploiting chiplet technology in applications as diverse as artificial intelligence to self-driving cars, with entities from tech giant Huawei Technologies to military institutions exploring its use.
More major investments in the area are on the way, according to a review of corporate announcements.
CHINA’S CHIPLET ADVANTAGE
Chiplets, or small chips, can be the size of a grain of sand or bigger than a thumbnail and are brought together in a process called advanced packaging.
It is a technology the global chip industry has increasingly embraced in recent years as chip manufacturing costs soar in the race to make transistors so small they are now measured in the number of atoms.
Bonding chiplets tightly together can help make more powerful systems without shrinking the transistor size as the multiple chips can work like one brain.
Apple’s high-end computer lines use chiplet technology, as do Intel and AMD’s more powerful chips.
About a quarter of the global chip packaging and testing market sits in China, according to Dongguan Securities.
While some say this gives China an advantage in leveraging chiplet technology, Chipuller chairman Yang cautioned the proportion of China’s packaging industry that could be considered advanced was “not very big”.
Under the right conditions, chiplets that are personalised according to the needs of the customer can be completed quickly, in “three to four months, this is the unique advantage China holds,” according to Yang.
Needham’s Shi said according to import data published by China’s customs agency, China’s purchase of chip packaging equipment soared to $3.3 billion in 2021 from its previous high of $1.7 billion in 2018, although last year it fell to $2.3 billion with the chip market downturn.
Since early 2021 research papers on chiplets started surfacing by researchers of the Chinese military People’s Liberation Army and universities it runs, and state-run and PLA-affiliated laboratories are looking to use chips made using domestic chiplet technology according to six tenders published over the past three years.
Public documents by the government also show millions of dollars worth of grants to researchers specializing in chiplet technology, while dozens of smaller companies have sprouted throughout China in recent years to meet domestic demand for advanced packaging solutions like chiplets.
CHIPLETS ON THE TABLE
Against the backdrop of escalating U.S.-China tension, Chinese company Chipuller acquired 28 patents either owned by zGlue or invented by people whose names are on zGlue’s patents, according to an analysis using IP management technology firm Anaqua’s Acclaim IP database.
The acquisition was through a two-step transfer, first through British Virgin Islands-registered North Sea Investment Co Ltd, according to documents seen by Reuters and confirmed by Yang.
The Committee on Foreign Investment in the United States (CFIUS), a powerful Treasury-led committee that reviews transactions for potential threats to U.S. security, did not respond to a Reuters request for comment about whether such sales would require their approval.
CFIUS lawyers Laura Black at Akin’s Trade Group, Melissa Mannino at BakerHostetler and Perry Bechky at Berliner Corcoran & Rowe say patent sales alone would not necessarily give CFIUS authority over the deal, as it depends whether the assets purchased constitute a U.S. business.
Representative Mike Gallagher, an influential lawmaker whose select committee on China has pressed the Biden administration to take tougher stances on China, told Reuters zGlue’s case highlights the “urgent need to reform CFIUS”.
“(People’s Republic of China) entities should not be able to act with impunity to take advantage of distressed U.S. firms to transfer their IP to China,” he said in an emailed statement.
Chipuller’s Yang said zGlue’s lawyer communicated with both CFIUS and the Department of Commerce to ensure the sale to North Sea would not fall foul of export controls.
These discussions did not include mention of Chipuller or the possibility of a Chinese entity ending up in possession of the patents, according to a Chipuller spokesperson.
“Everything was done very transparently and in accordance with (U.S.) law,” Yang said.
Yang said he considered himself a founder of zGlue as he became an investor in the company in 2015, soon after its formation, and later became a director and chairman.
CFIUS visited zGlue offices in 2018 to conduct an investigation because the company’s largest non-U.S. investor, Yang, was from China, the chairman said.
“So we have spent a lot of time communicating with CFIUS,” Yang said, adding that Chipuller currently does not supply any Chinese military or U.S.-sanctioned entities.
Chipuller isn’t the only firm with chiplet technology.
Huawei, China’s tech and chip design giant that has been put on the U.S.’s most restricted list, has been actively filing chiplet patents.
Huawei published over 900 chiplet-related patent applications and grants last year in China, up from 30 in 2017, according to Anaqua’s director of analytics solutions Shayne Phillips.
Huawei declined to comment.
Reuters identified over a dozen announcements over the past two years for new factories or expansions of existing ones from companies using chiplet technology in manufacturing across China’s tech sector, representing an investment totalling over 40 billion yuan.
They include domestic giants TongFu Microelectronics (002156.SZ) and JCET Group (600584.SS), as well as fast-growing startups such as Beijing ESWIN Technology Group, which spent 5.5 billion yuan on a factory for its chiplet-focused subsidiary that began operating in April.
One article published in May by an outlet run by China’s Ministry of Industry and Information Technology (MIIT) urged big Chinese tech firms the use of domestic packaging companies such as TongFu to help build China’s self-sufficiency in computing power.
“Use Chiplet technology to break through the United States’ siege of my country’s advanced process chips,” it said.
MIIT did not respond to a request for comment.
Chipuller chairman Yang puts it this way: “Chiplet technology is the core driving force for the development of the domestic semiconductor industry,” he said on the company’s official WeChat channel. “It is our mission and duty to bring it back to China.”
($1 = 7.2205 Chinese yuan renminbi)
Reporting by Jane Lanhee Lee and Eduardo Baptista; Additional reporting by Echo Wang and Stephen Nellis; editing by Kenneth Li, Brenda Goh and Lincoln Feast.
Reports on global trends in computing from covering semiconductors and tools to manufacture them to quantum computing. Has 27 years of experience reporting from South Korea, China, and the U.S. and previously worked at the Asian Wall Street Journal, Dow Jones Newswires and Reuters TV. In her free time, she studies math and physics with the goal …
July 13 (Reuters) – A threatened U.S. strike at United Parcel Service (UPS.N) could be “one of the costliest in at least a century,” topping $7 billion for a 10-day work stoppage, a think tank specializing in the economic impact of labor actions said on Thursday.
That estimate from Michigan-based Anderson Economic Group (AEG) includes UPS customer losses of $4 billion and lost direct wages of more than $1 billion. A 15-day UPS strike in 1997 disrupted the supply of goods, cost the world’s biggest parcel delivery firm $850 million and sent some customers to rivals like FedEx (FDX.N).
Roughly 340,000 union-represented UPS workers handle about a quarter of U.S. parcel deliveries and serve virtually every city and town in the nation. A strike could delay millions of daily deliveries, including Amazon.com (AMZN.O) orders, electronic components and lifesaving prescription drugs, shipping experts warned. They added this also could reignite supply-chain snarls that stoke inflation.
A strike by roughly 340,000 U.S. workers at the world’s biggest package delivery firm threatens to delay millions of shipments, snarl supply chains and send shipping costs higher.
Talks are deadlocked between UPS and the International Brotherhood of Teamsters union.
The Teamsters have vowed to strike if a deal is not ratified before the current contract expires at midnight on July 31.
“Consumers are going to feel this within days,” AEG CEO Patrick Anderson said of a potential strike, adding his analysis does not include the human cost of disruption to shipments of critical and perishable medicines to treat cancer and other life-threatening illnesses.
A sticking point in negotiations is pay increases for part-time workers who account for roughly half the UPS workforce. Tenured part-timers are particularly frustrated because they make just slightly more than new hires whose wages have jumped in a tight labor market.
Anderson said a UPS employee walkout would be a bigger risk to the U.S. economy than a work stoppage by UAW workers at the “Detroit Three” automakers, who started contract talks on Thursday.
He noted that the automaker talks cover fewer workers and have a limited geographic impact. In fiscal 2019, GM’s (GM.N) fourth-quarter profit took a $3.6 billion hit from a 40-day UAW strike that shut down its profitable U.S. operations.
UPS is urging Teamster negotiators to return to the bargaining table, but union officials say UPS needs to sweeten its offer for workers who risked their lives during the pandemic to help the company generate outsized profits.
UPS faces two unappealing choices, Stifel analyst Bruce Chan said in a recent note: Risk a strike and resulting customer losses or acquiesce to Teamster demands that could worsen the company’s labor cost disadvantage versus nonunion rivals in an inflationary environment.
“Both situations would create pain for UPS, so it could just be a question of when and how the company wants to take its medicine,” Chan said.
Reporting by Lisa Baertlein in Los Angeles, additional reporting by Priyamvada C in Bengaluru; Editing by Pooja Desai, Jonathan Oatis and David Gregorio
Lisa Baertlein covers the movement of goods around the world, with emphasis on ocean transport and last-mile delivery. In her free time, you’ll find her sailing, painting or exploring state and national parks.
MEXICO CITY, July 3 (Reuters) – The U.S. wants Mexico’s government to build strong institutions to protect worker rights as companies aiming to avoid supply chain disruptions in far-off production spots bring more jobs to the country, a top U.S. labor official told Reuters.
Mexico has begun to benefit from “nearshoring” in which companies seek to move production closer to the U.S. market while maintaining competitive costs.
The trend is further testing a trade deal known as the U.S.-Mexico-Canada Agreement (USMCA), in effect since July 2020.
The pact has tougher labor rules than its 1994 predecessor and underpins new Mexican laws that empower workers to push for better wages and conditions after years of stagnant salaries and pro-business union contracts.
Three years into the deal, experts say, some workers have begun to benefit but broad impacts are still far off.
“Hopefully that will ensure that Mexico doesn’t become a dumping ground for companies looking for cheap labor and lax regulations,” said Thea Lee, U.S. Deputy Undersecretary for International Labor Affairs who polices USMCA compliance.
She said in an interview that Mexico was working to fulfill its commitments, backed by leadership keen on helping workers.
Mexico’s new regulations favor companies taking on higher ethical standards, she said.
“Maybe 20 years ago it was okay for a multinational corporation to throw up their hands and say, ‘we have no idea what’s in our supply chain, what the labor conditions are,’” she added.
“That doesn’t seem to be acceptable anymore.”
Mexico has made progress improving labor courts, resolving worker complaints faster and easing union organization, but needs to do more, Lee said.
“Our hope is that Mexico will be well-poised to take advantage of nearshoring … if they continue on the path towards really building labor institutions that work, where workers can have confidence.”
Since 2020, several U.S. labor complaints in Mexico have paved the way for independent unions to land pay raises and even expand. Lee said such examples inspire workers who in the past may have feared threats or dismissals for trying to organize.
Yet one employer that faced two USMCA complaints, U.S.-based VU Manufacturing that makes interior car parts in the northern city of Piedras Negras, recently dismissed dozens of employees just months after a new union, La Liga, pressed for better wages. VU did not respond to a request for comment.
Lee said the company risks penalties if it does not uphold an agreement around worker rights. But La Liga members have already been laid off, and fear the company aims to discourage organizing, said union leader Cristina Ramirez, who lost her job.
“It’s very disappointing and frustrating,” Ramirez said. “We wanted to fight for things to improve.”
Reporting by Daina Beth Solomon; Editing by David Gregorio
TORNIO, Finland/KARLSKRONA, Sweden, July 3 (Reuters) – High above a railway bridge spanning a foaming river just outside the Arctic Circle, Finnish construction workers hammer away at a project that will smooth the connections from NATO’s Atlantic coastline in Norway to its new border with Russia.
“We will be removing some 1,200 of these one by one,” says site manager Mika Hakkarainen, holding up a rivet.
Until February 2022, the 37-million euro ($41 million) electrification of this short stretch of rail – the only rail link between Sweden and Finland – simply promised locals a chance to catch a night train down to the bright lights of Stockholm.
After Russia invaded Ukraine, that changed.
Now Finland is part of NATO, and Sweden hopes to join soon.
As the alliance reshapes its strategy in response to Russia’s campaign, access to these new territories and their infrastructure opens ways for allies to watch and contain Moscow, and an unprecedented chance to treat the whole of northwest Europe as one bloc, nearly two dozen diplomats and military and security experts told Reuters.
“PUT RUSSIA AT RISK”
The Finnish rail improvements around Tornio on the Swedish border are one example. Due for completion next year, they will make it easier for allies to send reinforcements and equipment from across the Atlantic to Kemijarvi, an hour’s drive from the Russian border and seven hours from Russia’s nuclear bastion and military bases near Murmansk in the Kola peninsula.
Among forces based there, Russia’s Northern Fleet includes 27 submarines, more than 40 warships, around 80 fighter planes and stocks of nuclear warheads and missiles, data collected by the Finnish Institute of International Affairs (FIIA) shows.
In a military conflict with NATO, the Fleet’s main task would be to secure control of the Barents Sea and stop ships bringing reinforcements from North America to Europe through the waters between Greenland, Iceland and the UK.
That’s something Finland can help NATO resist.
“It’s all about containing those kinds of capabilities from the north,” retired U.S. Major General Gordon B. Davis Jr. told Reuters.
Maps showing marine traffic through the Baltic
Besides opening its territory, Helsinki is buying the right assets, particularly fighter jets, “to add value to (the) northeastern defence and, frankly, in a conflict put Russia at risk,” he said.
Sweden’s contribution will, by 2028, include a new generation of submarines in the Baltic Sea that Fredrik Linden, Commander of Sweden’s First Submarine Flotilla, says will make a big difference in protecting vulnerable seabed infrastructure and preserving access – currently major security headaches, as the September 2022 destruction of the Nord Stream gas pipelines read more showed.
“With five submarines we can close the Baltic Sea,” Linden told Reuters. “We will cover the parts that are interesting with our sensors and with our weapons.”
Analysts say the change is not before time. Russia has been actively developing its military and hybrid capabilities in the Arctic against the West, partly under the cover of international environmental and economic cooperation, the FIIA’s Deputy Director Samu Paukkunen told Reuters. Russia’s defence ministry did not respond to a request for comment.
Paukkunen’s institute estimates Western armed forces are militarily about 10 years behind Russia in the Arctic.
Even with the losses that Russia has sustained in Ukraine, the naval component of the Northern Fleet and the strategic bombers remain intact, Paukkunen said.
NATO-member Denmark phased out its submarine fleet in 2004, part of a move to scale back its military capabilities after the end of the Cold War, and it has yet to decide on future investments. Norway is also ordering four new submarines, with delivery of the first due in 2029.
“It seems to me that we have some catching up to do, because we haven’t done it properly for the last 25 years,” said Sebastian Bruns, a senior researcher into maritime security at Kiel University’s Institute for Security Policy.
Maps showing marine traffic through the Baltic
“A WHOLE PIECE”
Both developments show how the expanded alliance will reshape Europe’s security map. The region from the Baltic in the south to the high north may become almost an integrated operating area for NATO.
“For NATO it’s quite important to have now the whole northern part, to see it as a whole piece,” Lieutenant Colonel Michael Maus from NATO’s Allied Command Transformation told Reuters. He chaired the working group which led Finland’s military integration into NATO.
“With (existing) NATO nations Norway and Denmark, now we have a whole bloc. And thinking about potential defence plans, it’s for us a huge step forward, to consider it as a whole area now.”
This became clear in May, when Finland hosted its first Arctic military exercise as a NATO member at one of Europe’s largest artillery training grounds 25 km above the Arctic Circle.
The nearby town of Rovaniemi, known to tourists as the home of Santa Claus, is also the base of Finland’s Arctic air force and would serve as a military hub for the region in case of a conflict. Finland is investing some 150 million euros to renew the base to be able to host half a new fleet of 64 F-35 fighter jets, due to arrive from 2026.
An undated artist’s rendition depicts divers and an unmanned vehicle exiting the A26 submarine. Saab AB/Handout via REUTERS
For the May manoeuvres, nearly 1,000 allied forces from the United States, Britain, Norway and Sweden filled the sparse motorways as they joined some 6,500 Finnish troops and 1,000 vehicles.
Captain Kurt Rossi, Field Artillery Officer of the U.S. Army, led a battery bringing in an M270 multiple rocket launcher.
It was first shipped from Germany across the Baltic Sea, then trucked nearly 900 km to the north.
“We haven’t been this close (to Russia) and been able to train up in Finland before,” Rossi said.
If there was a conflict with Russia in the Baltic Sea area – where Russia has significant military capabilities at St. Petersburg and Kaliningrad – the shipping lane NATO used for that exercise would be vulnerable. Finland relies heavily on maritime freight for all its supplies – customs data shows almost 96% of its foreign trade is carried across the Baltic.
The east-west railway link across the high north will open up an alternative, which could prove crucial.
“I think the Russians can quite easily interrupt the cargo transportation by sea so basically this northern route is the only accessible route after that,” said Tuomo Lamberg, manager for cross border operations at Sweco, the Swedish company designing the electrification.
Maps showing marine traffic through the Baltic
“NOTHING BEATS THEM”
But that risk, too, may recede when Sweden joins NATO.
Down beneath the Baltic Sea waterline, the submarine commander Linden shows a reporter the captain’s quarters of the Gotland, one of four submarines currently in Sweden’s fleet, which will bring NATO’s total in the Baltic countries to 12 by 2028.
The Kiel institute expects Russia to add one to three submarines in the coming years, to bring its Baltic submarine total to four, along with its fleet of around six modern warships. Its capabilities at Kaliningrad also include medium-range ballistic missiles.
“This can be the loneliest place in the world,” says Linden, who captained the vessel for many years. On a typical mission, which lasts two to three weeks, there is no communication with headquarters, he said.
The Gotlands, like Germany’s modern Type 212 submarines, will be among NATO’s most advanced non-nuclear submarines and can stay out of port for significantly longer than most other conventional models, the researcher Bruns said read more .
“I would say, without a doubt, that the Gotland-class and the German Type 212 are the most capable non-nuclear submarines in the world,” said Bruns.
“There is nothing that beats them, quite literally. In terms of how quiet they are, the engines they use, they are particularly quiet and very maneuverable.”
In submarine warfare, Linden said, the primary question is where the adversary is. A careless crew member dropping a wrench or slamming a cupboard door can lead to detection.
“We talk quietly on board,” Linden said. “You shouldn’t believe … films where orders are shouted.”
The Gotland is based at Karlskrona, about 350 km across the Baltic from Kaliningrad. With an average of 1,500 vessels per day trafficking the Baltic according to the Commission on Security and Cooperation In Europe, it is one of the world’s busiest seaways – and there is really only one way out, the Kattegatt Sea between Denmark and Sweden.
The shallow and crowded seaway can only be accessed through three narrow straits that submarines can’t pass through without being detected.
LISTENING POWERS
If any of the straits were to be closed, the sea freight traffic to Sweden and Finland would be hit hard and the Baltic states completely cut off. But with Sweden in the alliance, that becomes more preventable, because Sweden’s submarines will add to NATO’s listening powers.
Linden says the Gotland’s crew can sometimes hear Russia’s vessels. The range of sound travel varies partly depending on the seasons. In winter, he said, you can hear as far as the island of Oeland – just a bit further than the distance between London and Birmingham in the UK.
“You can lie outside Stockholm and hear the chain rattling on Oeland’s northern buoy,” Linden said. “In the summer you can hear maybe 3,000 meters.”
By 2028, once Sweden takes delivery of a new design of vessel, this capacity will increase. The new design, known as A26, will allow submarine crews to deploy remotely operated vehicles (ROVs), combat divers or autonomous systems of some sort without putting the submarine or crew at risk, Bruns said.
“Depending on the mission it could be an ROV that safeguards a pipeline or data cable, it could be combat divers that go ashore in the cover of darkness, it could be almost anything.”
That capacity will increase Sweden’s scope to control comings and goings through the Baltic.
“If you count all the forces, with Germany in the lead and Sweden and Finland coming on board, all those have really shifted the balance in the Baltic Sea quite significantly,” said Nick Childs, Senior Fellow for Naval Forces and Maritime Security at the International Institute for Strategic Studies.
“It would make it very difficult for the Russian Baltic Sea fleet to operate in a free way,” he said. “But it could … still pose challenges for NATO.”
Anne Kauranen reported from Tornio, Johan Ahlander from Karlskrona; additional reporting from Gwladys Fouche in Oslo, Jacob Gronholt-Pedersen in Copenhagen and Sabine Siebold in Brussels; Edited by Sara Ledwith
HANOI, July 3 (Reuters) – Vietnam has banned Warner Bros’ highly-anticipated film “Barbie” from domestic distribution over a scene featuring a map that shows China’s unilaterally claimed territory in the South China Sea, state media reported on Monday.
The U-shaped “nine-dash line” is used on Chinese maps to illustrate its claims over vast areas of the South China Sea, including swathes of what Vietnam considers its continental shelf, where it has awarded oil concessions.
“Barbie” is the latest movie to be banned in Vietnam for depicting China’s controversial nine-dash line, which was repudiated in an international arbitration ruling by a court in The Hague in 2016. China refuses to recognise the ruling.
In 2019 the Vietnamese government pulled DreamWorks’ animated film “Abominable” and last year it banned Sony’s action movie “Unchartered” for the same reason. Netflix also removed an Australian spy drama “Pine Gap” in 2021.
[1/2]Actor Margot Robbie is photographed during a photocall for the upcoming Warner Bros. film “Barbie” in Los Angeles, California, U.S., June 25, 2023. REUTERS/Mike Blake
“Barbie”, starring Margot Robbie and Ryan Gosling, was originally slated to open in Vietnam on July 21, the same date as in the United States, according to state-run Tuoi Tre newspaper.
“We do not grant license for the American movie ‘Barbie’ to release in Vietnam because it contains the offending image of the nine-dash line,” the paper reported, citing Vi Kien Thanh, head of the Department of Cinema, a government body in charge of licensing and censoring foreign films.
Warner Bros did not immediately respond to a request for comment.
Vietnam and China have long had overlapping territorial claims to a potentially energy-rich stretch in the South China Sea. The Southeast Asian country has repeatedly accused Chinese vessels of violating its sovereignty.
Reporting by Phuong Nguyen; Editing by Kanupriya Kapoor
MADRID, June 23 (Reuters) – The co-founder of OceanGate Expeditions, which owned the submersible that imploded during a dive to the Titanic wreck, defended on Friday the chief executive’s commitment to safety and risk management after he died with four others on the craft.
Guillermo Söhnlein, who co-founded OceanGate with Stockton Rush in 2009, left the company in 2013, retaining a minority stake. Rush was piloting the Titan submersible on the trip that began on Sunday. Debris from the vessel was found on Thursday.
“Stockton was one of the most astute risk managers I’d ever met. He was very risk-averse. He was very keenly aware of the risks of operating in the deep ocean environment, and he was very committed to safety,” Söhnlein told Reuters.
Questions about Titan’s safety were raised in 2018 during a symposium of submersible industry experts and in a lawsuit by OceanGate’s former head of marine operations, which was settled later that year. This incident has prompted further debate.
“I believe that every innovation that he took … was geared toward two goals: One, expanding humanity’s ability to explore the deep ocean. And secondly, to do it as safely as possible,” he said in video interview from his home in Barcelona.
The Titan submersible, operated by OceanGate Expeditions to explore the wreckage of the sunken SS Titanic off the coast of Newfoundland, dives in an undated photograph. OceanGate Expeditions/Handout via REUTERS/ File Photo
Söhnlein said he completely trusted Rush, even though they did not always see “eye-to-eye on things”.
OceanGate has not addressed queries by industry experts about its decision to forgo certification from industry third parties such as the American Bureau of Shipping or the European company DNV.
“There’s this tendency in the community to equate classification with safety. While that could be the case, it doesn’t mean that you can’t be safe without classification,” he said, adding that people should wait for an official report analyzing the incident rather than speculate.
“There’s going to be a time for (making assessments), and I don’t think right now is the right time to do that,” he said.
Despite the tragedy, he said continuing with deep-sea exploration was vital for humanity and that it was the best way to honor those who died in the submersible.
“Let’s figure out what went wrong, learn some lessons and let’s get down there again,” he said.
Reporting by David Latona; Editing by Aislinn Laing and Edmund Blair
Madrid-raised German-American breaking news in Spain and Portugal. Previously covered markets in Germany, Austria and Switzerland, with a special focus on chemical companies and regular contributions to Reuters’ German-language service. Worked at Spanish news agency EFE (Madrid/Bangkok) and the European Pressphoto Agency (Frankfurt).
WASHINGTON, June 23 (Reuters) – Indian Prime Minister Narendra Modi met with U.S. and Indian technology executives in Washington on Friday, the final day of a state visit where he agreed new defense and technology cooperation and addressed challenges posed by China.
U.S. President Joe Biden rolled out the red carpet for Modi on Thursday, declaring after about 2-1/2 hours of talks that their countries’ economic relationship was “booming.” Trade has more than doubled over the past decade.
Biden and Modi gathered with CEOs including Apple’s (AAPL.O) Tim Cook, Google’s (GOOGL.O) Sundar Pichai and Microsoft’s (MSFT.O) Satya Nadella.
Also present were Sam Altman of OpenAI, NASA astronaut Sunita Williams, and Indian tech leaders including Anand Mahindra, chairman of Mahindra Group, and Mukesh Ambani, chairman of Reliance Industries, the White House said.
“Our partnership between India and the United States will go a long way, in my view, to define what the 21st century looks like,” Biden told the group, adding that technological cooperation would be a big part of that partnership.
Observing that there were a variety of tech companies represented at the meeting from startups to well established firms, Modi said: “Both of them are working together to create a new world.”
Modi, who has appealed to global companies to “Make in India,” will also address business leaders at the Kennedy Center for Performing Arts.
The CEOs of top American companies, including FedEx (FDX.N), MasterCard (MA.N) and Adobe (ADBE.O), are expected to be among the 1,200 participants.
NOT ‘ABOUT CHINA’
The backdrop to Modi’s visit is the Biden administration’s attempts to draw India, the world’s most populous country at 1.4 billion and its fifth-largest economy, closer amid its growing geopolitical rivalry with Beijing.
Modi did not address China directly during the visit, and Biden only mentioned China in response to a reporter’s question, but a joint statement included a pointed reference to the East and South China Seas, where China has territorial disputes with its neighbors.
Farwa Aamer, director for South Asia at the Asia Society Policy Institute, in an analysis note described that as “a clear signal of unity and determination to preserve stability and peace in the region.”
Alongside agreements to sell weapons to India and share with it sensitive military technology, announcements this week included several investments from U.S.-firms aimed at spurring semiconductor manufacturing in India and lowering its dependence on China for electronics.
White House national security spokesperson John Kirby said the challenges presented by China to both Washington and New Delhi were on the agenda, but insisted the visit “wasn’t about China.”
“This wasn’t about leveraging India to be some sort of counterweight. India is a sovereign, independent state,” Kirby said at a news briefing, adding that Washington welcomes India becoming “an increasing exporter of security” in the Indo-Pacific.
“There’s a lot we can do in the security front together. And that’s really what we’re focused on,” Kirby said.
Some political analysts question India’s willingness to stand up to Beijing over Taiwan and other issues, however. Washington has also been frustrated by India’s close ties with Russia while Moscow wages war in Ukraine.
DIASPORA TIES
Modi attended a lunch on Friday at the State Department with Vice President Kamala Harris, the first Asian American to hold the No. 2 position in the White House, and Secretary of State Antony Blinken.
In a toast, Harris spoke of her Indian-born late mother, Shyamala Gopalan, who came to the United States at age 19 and became a leading breast cancer researcher.
“I think about it in the context of the millions of Indian students who have come to the United States since, to collaborate with American researchers to solve the challenges of our time and to reach new frontiers,” Harris said.
Modi praised Gopalan for keeping India “close to her heart” despite the distance to her new home, and called Harris “really inspiring.”
On Friday evening, Modi will address members of the Indian diaspora, many of whom have turned out at events during the visit to enthusiastically fete him, at times chanting “Modi! Modi! Modi!” despite protests from others.
Activists said Biden had failed to strongly call out what they describe as India’s deteriorating human rights record under Modi, citing allegations of abuse of Indian dissidents and minorities, especially Muslims. Modi leads the Hindu nationalist Bharatiya Janata Party (BJP) and has held power since 2014.
Biden said he had a “straightforward” discussion with Modi about issues including human rights, but U.S. officials emphasize that it is vital for Washington’s national security and economic prosperity to engage with a rising India.
Asked on Thursday what he would do to improve the rights of minorities including Muslims, Modi insisted “there is no space for any discrimination” in his government.
“There is no end to data that shows Modi is lying about minority abuse in India, and much of it can be found in the State Department’s own India country reports, which are scathing on human rights,” said Sunita Viswanath, co-founder Hindus for Human Rights, an advocacy group.
Reporting by Steve Holland, Simon Lewis and Jeff Mason; additional reporting by Trevor Hunnicutt, Doina Chiacu, David Brunnstrom and Kanishka Singh; Editing by Don Durfee and Grant McCool
Jeff Mason is a White House Correspondent for Reuters. He has covered the presidencies of Barack Obama, Donald Trump and Joe Biden and the presidential campaigns of Biden, Trump, Obama, Hillary Clinton and John McCain. He served as president of the White House Correspondents’ Association in 2016-2017, leading the press corps in advocating for press freedom in the early days of the Trump administration. His and the WHCA’s work was recognized with Deutsche Welle’s “Freedom of Speech Award.” Jeff has asked pointed questions of domestic and foreign leaders, including Russian President Vladimir Putin and North Korea’s Kim Jong Un. He is a winner of the WHCA’s “Excellence in Presidential News Coverage Under Deadline Pressure” award and co-winner of the Association for Business Journalists’ “Breaking News” award. Jeff began his career in Frankfurt, Germany as a business reporter before being posted to Brussels, Belgium, where he covered the European Union. Jeff appears regularly on television and radio and teaches political journalism at Georgetown University. He is a graduate of Northwestern University’s Medill School of Journalism and a former Fulbright scholar.
Prigozhin says army bombed his men, vows ‘justice’
Moscow accuses him of calling for armed mutiny
Wagner chief takes feud with top brass to new level
Prigozhin earlier accused army of deceiving Putin
LONDON, June 24 (Reuters) – Russia accused mercenary chief Yevgeny Prigozhin of armed mutiny on Friday after he alleged, without providing evidence, that the military leadership had killed a huge number of his fighters in an air strike and vowed to punish them.
The standoff, many of whose details remained unclear, looked like the biggest domestic crisis President Vladimir Putin has faced since he ordered a full-scale invasion of Ukraine – something he called a “special military operation” – in February last year.
As the standoff between Prigozhin, founder of the Wagner mercenary force, and the defence ministry appeared to come to a head, the ministry issued a statement saying Prigozhin’s accusations were “not true and are an informational provocation”.
Prigozhin said his actions were not a military coup. But in a frenzied series of audio messages, in which the sound of his voice sometimes varied and could not be independently verified, he appeared to suggest that 25,000 fighters were en route to oust the leaders of the defence establishment in Moscow.
He said: “Those who destroyed our lads, who destroyed the lives of many tens of thousands of Russian soldiers, will be punished. I ask that no one offer resistance …
“There are 25,000 of us and we are going to figure out why chaos is happening in the country,” he said, promising to tackle any checkpoints or air forces that got in Wagner’s way.
At about 2 a.m. on Saturday morning, Moscow time (2300 GMT), Prigozhin issued a new message saying his forces had crossed the border from Ukraine, and were in the southern Russian city of Rostov.
He said they were ready to “go all the way” against the top brass, and to destroy anyone who stood in their way.
At around the same time, the state news agency TASS quoted Kremlin spokesman Dmitry Peskov as saying all Russia’s main security services were reporting to Putin “round the clock” on the fulfilment of his orders with respect to Prigozhin.
Security was being tightened in Moscow, TASS said, focusing on what it called the capital’s most important government sites and infrastructure.
Earlier on Friday, Prigozhin had appeared to cross a new line in his increasingly vitriolic feud with the ministry, saying that the Kremlin’s rationale for invading Ukraine was based on lies concocted by the army’s top brass.
The FSB domestic security service said it had opened a criminal case against him for calling for an armed mutiny, a crime punishable with a jail term of up to 20 years.
“Prigozhin’s statements are in fact calls for the start of an armed civil conflict on Russian territory and his actions are a ‘stab in the back’ of Russian servicemen fighting pro-fascist Ukrainian forces,” the FSB said.
“We urge the … fighters not to make irreparable mistakes, to stop any forcible actions against the Russian people, not to carry out the criminal and traitorous orders of Prigozhin, to take measures to detain him.”
Founder of Wagner private mercenary group Yevgeny Prigozhin leaves a cemetery before the funeral of Russian military blogger Maxim Fomin widely known by the name of Vladlen Tatarsky, who was recently killed in a bomb attack in a St Petersburg cafe, in Moscow, Russia, April 8, 2023. REUTERS/Yulia Morozova/File Photo
GENERALS URGE PRIGOZHIN TO BACK DOWN
Army Lieutenant-General Vladimir Alekseyev issued a video appeal asking Prigozhin to reconsider his actions.
“Only the president has the right to appoint the top leadership of the armed forces, and you are trying to encroach on his authority,” he said.
Army General Sergei Surovikin, the deputy commander of Russian forces in Ukraine whom Prigozhin has praised in the past, in a separate video said that “the enemy is just waiting for our internal political situation to deteriorate”.
“Before it is too late … you must submit to the will and order of the people’s president of the Russian Federation. Stop the columns and return them to their permanent bases,” he said.
Prigozhin, whose men spearheaded the capture of the Ukrainian city of Bakhmut last month, has for months been openly accusing Defence Minister Sergei Shoigu and Russia’s top general, Valery Gerasimov, of rank incompetence and of denying Wagner ammunition and support.
An unverified video posted on a Telegram channel close to Wagner showed the purported scene of an air strike against Wagner forces. It showed a forest where small fires were burning and trees appeared to have been broken by force. There appeared to be one body, but no more direct evidence of any attack.
It carried the caption: “A missile attack was launched on the camps of PMC (Private Military Company) Wagner. Many victims. According to eyewitnesses, the strike was delivered from the rear, that is, it was delivered by the military of the Russian Ministry of Defence.”
Prigozhin has tried to exploit Wagner’s battlefield success, achieved at enormous human cost, to publicly berate Moscow with seeming impunity, while carefully avoiding criticism of Putin.
But on Friday he for the first time dismissed Putin’s core justifications for invading Ukraine on Feb. 24 last year, something for which many Russians have been fined or jailed.
“The war was needed … so that Shoigu could become a marshal … so that he could get a second ‘Hero’ [of Russia] medal,” Prigozhin said in a video clip. “The war wasn’t needed to demilitarise or denazify Ukraine.”
Marat Gabidullin, a former Wagner commander who moved to France when Russia invaded Ukraine, told Reuters that Wagner’s fighters were likely to stand with Prigozhin.
“We have looked down on the army for a long time … Of course they support him, he is their leader,” he said.
“They won’t hesitate (to fight the army), if anyone gets in their way.”
Reporting by Reuters; Writing by Andrew Osborn and Kevin Liffey; Editing by Daniel Wallis
NEW YORK, June 13 (Reuters) – Meta Platforms (META.O) said on Tuesday that it would provide researchers with access to components of a new “human-like” artificial intelligence model that it said can analyze and complete unfinished images more accurately than existing models.
The model, I-JEPA, uses background knowledge about the world to fill in missing pieces of images, rather than looking only at nearby pixels like other generative AI models, the company said.
That approach incorporates the kind of human-like reasoning advocated by Meta’s top AI scientist Yann LeCun and helps the technology to avoid errors that are common to AI-generated images, like hands with extra fingers, it said.
Meta, which owns Facebook and Instagram, is a prolific publisher of open-sourced AI research via its in-house research lab. Chief Executive Mark Zuckerberg has said that sharing models developed by Meta’s researchers can help the company by spurring innovation, spotting safety gaps and lowering costs.
“For us, it’s way better if the industry standardizes on the basic tools that we’re using and therefore we can benefit from the improvements that others make,” he told investors in April.
The company’s executives have dismissed warnings from others in the industry about the potential dangers of the technology, declining to sign a statement last month backed by top executives from OpenAI, DeepMind, Microsoft (MSFT.O) and Google (GOOGL.O) that equated its risks with pandemics and wars.
Lecun, considered one of the “godfathers of AI,” has railed against “AI doomerism” and argued in favor of building safety checks into AI systems.
Meta is also starting to incorporate generative AI features into its consumer products, like ad tools that can create image backgrounds and an Instagram product that can modify user photos, both based on text prompts.
Reporting by Katie Paul; Editing by David Gregorio
WASHINGTON, June 13 (Reuters) – A vast majority of Republicans believe federal criminal charges against Donald Trump are politically motivated, according to a Reuters/Ipsos poll completed on Monday that also showed him far ahead of his nearest rival in the race for the Republican presidential nomination.
The polling, which began on Friday, a day after Trump was indicted, found that 81% of self-identified Republicans said politics was driving the case, reflecting the deep polarization of the U.S. electorate. President Joe Biden, a Democrat, has repeatedly said he has no involvement in the case brought by the Department of Justice.
The number of Republicans who believe the former president is being unfairly targeted vastly exceeds the 30-35% of Trump supporters who are estimated by political analysts to make up his core base.
Some 62% of respondents in the Reuters/Ipsos poll, including 91% of Democrats and 35% of Republicans, said it was believable that Trump illegally stored classified documents at his home in Florida as alleged by prosecutors.
The indictment did not appear to dent Trump’s standing in the Republican nominating contest for the 2024 presidential election. The specific charges, including obstruction of justice, became public on Friday afternoon when the indictment was unsealed.
Some 43% of self-identified Republicans said Trump was their preferred candidate, compared to 22% who picked Florida Governor Ron DeSantis, Trump’s closest rival.
In early May, Trump led DeSantis 49% to 19%, but that was before DeSantis formally entered the race.
The rest of the Republican field, which includes former Vice President Mike Pence who declared his candidacy last week, had low single-digit levels of support.
Trump flew to Miami on Monday to face federal charges of unlawfully keeping U.S. national security documents and lying to officials who tried to recover them. Trump, who will appear in court on Tuesday, has proclaimed his innocence and vowed to continue his campaign to regain the presidency in the November 2024 general election.
Many Republican contenders in the 2024 race have accused the U.S. Justice Department of political bias and say it is being “weaponized” against Biden’s biggest Republican challenger. The department says all investigative decisions are made without regard to partisan politics.
Trump also faces charges in New York in a state criminal case related to alleged hush money payments to a pornographic film star. A Reuters/Ipsos poll in March found that Republicans also saw that investigation as politically motivated.
Biden’s approval rating stood at 41% last week, close to the lowest level of his presidency. Trump had a 40% approval rating at this point in his 2017-2021 presidency.
The latest poll included responses from 1,005 adults nationwide and had a credibility interval, a measure of precision, of 4 percentage points for all voting-age Americans and between 6 and 7 percentage points for Republicans.
Reporting by Jason Lange; Editing by Andy Sullivan, Ross Colvin and Howard Goller
MOSCOW, June 3 (Reuters) – Russia’s Gazprom (GAZP.MM) will send 40.3 million cubic metres (mcm) of gas to Europe via Ukraine on Saturday, the company said, down from 40.6 mcm on Friday.
BAHANAGA, India, June 3 (Reuters) – At least 288 people have died in India’s worst rail crash in over two decades, officials said on Saturday, after a passenger train went off the tracks and hit another one in an accident a preliminary report blamed on signal failure.
One train in Friday’s accident also hit a freight train parked nearby in the district of Balasore in Odisha state in the east of the country, leaving a tangled mess of smashed rail cars and injuring 803.
The death toll has reached 288, said K. S. Anand, chief public relations officer of the South Eastern Railway.
Dead bodies are still trapped in the mangled coaches and the rescue operation is continuing, a Reuters witness said, while the death toll is expected to rise.
A preliminary report indicates that the accident was the result of signal failure, Anand said.
“The Coromandel Express was supposed to travel on the main line, but a signal was given for the loop line instead, and the train rammed into a goods train already parked over there. Its coaches then fell onto the tracks on either side, also derailing the Howrah Superfast Express,” he said.
Surviving passenger Anubha Das said he would never forget the scene. “Families crushed away, limbless bodies and a bloodbath on the tracks,” he said.
Video footage showed derailed train coaches and damaged tracks, with rescue teams searching the mangled carriages to pull the survivors out and rush them to hospital.
Dead bodies were lying on the bloodstained floor of a school used as a makeshift morgue, and police helped relatives identify the bodies, covered with white cloths and placed inside chained bags.
Prime Minister Narendra Modi arrived at the scene, talked to rescue workers and inspected the wreckage. He also met the survivors at hospitals.
“(I) took stock of the situation at the site of the tragedy in Odisha. Words can’t capture my deep sorrow. We stand committed to providing all possible assistance to those affected,” Modi said.
A witness involved in rescue operations said the screams and cries of the injured and the relatives of those killed were chilling. “It was horrific and heart-wrenching,” he said.
Families of the dead will receive 1 million rupees ($12,000), while the seriously injured will get 200,000 rupees, with 50,000 rupees for minor injuries, Railway Minister Ashwini Vaishnaw said. Some state governments have also announced compensation.
[1/20] Rescue workers search for survivors at the site of a train collision after the accident in Balasore district in the eastern state of Odisha, India, June 3, 2023. REUTERS/Adnan Abidi
“It’s a big, tragic accident,” Vaishnaw told reporters after inspecting the accident site. “Our complete focus is on the rescue and relief operation, and we are trying to ensure that those injured get the best possible treatment.”
At least 261 people died in an accident involving two long-distance passenger trains in eastern Indian state of Odisha on June 2.
DISMEMBERED BODIES
“I was asleep,” an unidentified male survivor told NDTV news. “I was woken up by the noise of the train derailing. Suddenly I saw 10-15 people dead. I managed to come out of the coach, and then I saw a lot of dismembered bodies.”
Video footage from Friday showed rescuers climbing on one of the mangled trains to find survivors, while passengers called for help and sobbed next to the wreckage.
“We rescued at least 30 people, and some of them managed to survive, but three or four of them died,” said Sanjeev Rout, an electrician. A few metres away, rescue workers tried to cut their way into a damaged red-coloured coach.
The collision occurred at around 7 p.m. (1330 GMT) on Friday when the Howrah Superfast Express from Bengaluru to Howrah in West Bengal collided with the Coromandel Express from Kolkata to Chennai.
Indian Railways says it transports more than 13 million people every day. But the state-run monopoly has had a patchy safety record because of ageing infrastructure.
Odisha Chief Minister Naveen Patnaik described the crash as “extremely tragic”.
Opposition Congress party leader Jairam Ramesh said the accident reinforced why safety should always be the foremost priority of the rail network.
Modi’s administration has launched high-speed trains as part of plans to modernise the network, but critics say it has not focused enough on safety and upgrading ageing infrastructure.
Experts said Friday’s train accident came as a blow to Modi’s makeover plans for railways.
India’s deadliest railway accident was in 1981 when a train plunged off a bridge into a river in Bihar state, killing an estimated 800 people.
Canadian Prime Minister Justin Trudeau, British Prime Minister Rishi Sunak and French President Emmanuel Macron expressed condolences over the accident.
($1 = 82.40 rupees)
Additional reporting by Akriti Sharma, Subrata Nag Choudhury, Mayank Bhardwaj, Sakshi Dayal, Anirudh Saligrama, Baranjot Kaur, Nandini S, Adnan Abidi and Sunil Kataria; Editing by Edwina Gibbs, William Mallard, Mark Potter and Giles Elgood
WASHINGTON, May 23 (Reuters) – Florida Governor Ron DeSantis suffered a chaotic start to his 2024 presidential election race on Wednesday when glitches marred an online forum hosted by Twitter owner Elon Musk that was meant to showcase DeSantis’ fitness for the job.
The Twitter broadcast of the hour-long interview , which had been intended as the formal launch for the DeSantis campaign, lost sound for extended stretches and thousands of users were either unable to join or were dropped.
It was an inauspicious start for a campaign predicated on the governor’s executive competence.
“We must end the culture of losing that has infected the Republican Party in recent years,” DeSantis said in the event with Musk once the problems were largely resolved. The hashtag #DeSaster was trending on Twitter.
DeSantis’ entrance in the Republican contest sets up a showdown with his one-time ally, former President Donald Trump, who lost the 2020 presidential election to Democrat Joe Biden.
The Florida governor framed himself as a get-it-done executive who stood up to the federal government over COVID policies and who has put an indelibly conservative stamp on his home state.
He defended his efforts in Florida to prohibit the teaching of concepts such as gender identity and systemic racism as protecting young children and pushing back against progressive ideology.
With a rising national profile and what are expected to be deep financial resources, DeSantis, 44, immediately became Trump’s biggest rival for the Republican nomination.
“Government is not about entertainment, not about building a brand,” DeSantis said, taking a veiled swipe at Trump. Notably he never mentioned Trump by name during the event.
Trump, 76, didn’t hesitate to mock DeSantis on his social media platform, Truth Social, over the stumbling start to his campaign.
“My Red Button is bigger, better, stronger, and is working (TRUTH!)” Trump posted, “Yours does not.”
Musk conceded there had been “technical issues because of the sheer scale” of the event, but added that “it’s just really great for the people to hear directly from presidential candidates.”
[1/6] Florida Governor Ron DeSantis speaks as he announces he is running for the 2024 Republican presidential nomination in this screen grab from a social media video posted May 24, 2023. Twitter @RonDeSantis/Handout via REUTERS
At one point, the Twitter event drew more than 600,000 listeners. By its conclusion, there were fewer than 300,000.
DeSantis’ campaign spokesman Bryan Griffin said on Twitter that enthusiasm for DeSantis had “literally busted up the internet.”
The campaign raised $1 million in an hour, Griffin said.
TRUMP AHEAD IN POLLS
Polls show Trump with more than a 2-to-1 edge over the Florida governor, who has long been considered a Republican rising star and the herald of a new generation of leaders in the party. Trump, who announced in November, also has a head start in organizing his campaign in key early voting states.
DeSantis’ central argument for his candidacy likely will be that he is the only Republican who can defeat Biden.
“Our president, while he lacks vigor, flounders in the face of our nation’s challenges and he takes cues from the woke mob,” DeSantis said.
Mainstream Republicans will be watching DeSantis carefully to see if he can recover from his missteps on foreign policy, such as his initial reluctance to express support for Ukraine in its war with Russia.
In the weeks leading up to his presidential bid, DeSantis toured the country, visiting states such as Iowa and New Hampshire that will hold early nominating contests. He has boasted of his record as Florida’s governor, including his battles with the federal government over pandemic policies.
DeSantis and his advisers were determined to wait to enter the race until the Florida Legislature could hand him a series of policy victories – and lawmakers have done just that.
He signed measures that severely restricted abortions in the state, made it easier for residents to carry concealed weapons, expanded a voucher program to allow students to attend private schools and eliminated funding for diversity programs at public universities, among other things.
DeSantis remains in a pitched battle with Walt Disney Co (DIS.N) over the company’s criticism of laws prohibiting the teaching of gender identity concepts in public schools. The company has filed a federal lawsuit accusing DeSantis of weaponizing state government to punish its operations.
Other declared Republican candidates include Nikki Haley, former U.S. ambassador to the United Nations, and Tim Scott, a U.S. senator from South Carolina.
LUXEMBOURG, April 24 (Reuters) – China respects the status of former Soviet member states as sovereign nations, its foreign ministry said on Monday, distancing itself from comments by its envoy to Paris that triggered an uproar among European capitals.
Several European Union foreign ministers had said comments by ambassador Lu Shaye – in which he questioned the sovereignty of Ukraine and other former Soviet states – were unacceptable and had asked Beijing to clarify its stance.
Asked if Lu’s comments represented China’s official position, foreign ministry spokesperson Mao Ning said that Beijing respected the status of the former Soviet member states as sovereign nations following the collapse of the Soviet Union.
Mao told a regular news briefing that it was her remarks on sovereignty that represented China’s official government stance.
The Chinese embassy in Paris issued a statement later on Monday to say that Lu’s comments on Ukraine “were not a political declaration but an expression of his personal views”.
Both statements, following the backlash, appeared to be an effort to ease the tension with the EU while Washington also cited growing closeness between Beijing and Moscow.
“Beijing has distanced itself from the unacceptable remarks by its ambassador,” Josep Borrell told a news conference, saying it was “good news”.
The French foreign ministry said it was “taking note” of Beijing’s “clarifications” and that the minister’s chief of staff had met with Lu on Monday, told him his comments were unacceptable and urged him to speak in a way “that is in line with his country’s official stance.”
Lu has earned himself a reputation as one of China’s “wolf warrior” diplomats, so-called for their hawkish and abrasive style.
Asked about his position on whether Crimea was part of Ukraine or not, Lu had said in an interview aired on French TV on Friday that historically it was part of Russia and had been offered to Ukraine by former Soviet leader Nikita Khrushchev.
“These ex-USSR countries don’t have actual status in international law because there is no international agreement to materialize their sovereign status,” Lu added.
Czech Foreign Minister Jan Lipavsky speaks during a news conference, in Riga, Latvia April 21, 2023. REUTERS/Ints Kalnins
‘TOTALLY UNACCEPTABLE’
Monday’s statements from the Chinese foreign ministry and embassy in Paris came after criticism from across the EU.
Speaking ahead of a Luxembourg meeting of EU foreign ministers earlier in the day, Czech Foreign Minister Jan Lipavsky said Lu’s comments were “totally unacceptable”.
“I hope the bosses of this ambassador will make these things straight,” he told reporters.
A spokesperson for Germany’s foreign ministry said it had taken note of Lu’s comments “with great astonishment, especially as the statements are not in line with the Chinese position we have known so far.”
Lithuanian Foreign Minister Gabrielius Landsbergis said the three Baltic countries would summon Chinese representatives to officially ask for clarification.
He said Beijing was “sending the same message” as Moscow on questioning the sovereignty of former Soviet countries, which he described as “dangerous”.
Lithuania and its Baltic neighbours Latvia and Estonia were incorporated into the Soviet Union in 1940, but regained independence after its break-up in 1991.
EU leaders would discuss the bloc’s stance towards China and its future relations with Beijing during their next summit in June, EU Council President Charles Michel said.
Lu has been summoned to France’s foreign ministry several times in the past, including for suggesting France was abandoning old people in nursing homes during the COVID-19 pandemic and for calling a respected China scholar at a French think-tank a “mad hyena”.
Asked about Chinese officials’ comments, White House spokesperson John Kirby told MSNBC broadcaster that China and Russia are clearly aligning, adding: “These are two countries that want to challenge outright the international rules-based order … that respects sovereignty around the world.”
“They want to undermine it. They want to reduce and diminish not only the United States and our influence around the world but also our allies and partners.”
RATINGEN, Germany, April 14 (Reuters) – In the German town of Ratingen, exploding cash machines are a hot-button topic.
Two got blown up early on the same morning last month, at branches of Santander (SAN.MC) and Deutsche Bank (DBKGn.DE) across the street from each other close to the Duesseldorf suburb’s main square.
A year ago, residents of the apartments above Santander unsuccessfully sued to have the machines removed due to concerns they could be raided – a gesture that might in retrospect be deemed prophetic in other countries.
But in Germany, thieves are blowing ATMs up at the rate of more than one a day.
Attacks are up more than 40% since 2019, according to the interior ministry, and investigators say two factors are driving the increase.
Europe’s largest economy has 53,000 ATM machines, a disproportionately high number that reflects Germans’ preference for cash rather than bank cards. The country also boasts an extensive network of highways, or Autobahns, on much of which no speed limit is enforced.
Ratingen lies just 70km (40 miles) from the Dutch border, and investigators say gangs from the Netherlands are the prime culprits for the attacks, which send glass flying, cause building facades to crumble and money cartridges to crack open.
Raiders got away with nearly 20 million euros ($22.1 million) in 2021, when 392 ATM explosions were recorded, a tally that rose to 496 in 2022. Police in the state of North Rhine-Westphalia, where Ratingen lies and which has borne the brunt of the attacks, have recorded 47 incidents so far in 2023, up on last year’s rate.
Reuters Graphics Reuters Graphics
DUTCH RAIDERS
Meanwhile the frequency of ATM attackers is falling in the Netherlands, partly due to security measures such as glue that makes blocks of cash inside ATMs unusable, Dutch police say.
So Dutch cash machine raiders are crossing the border and, German police estimate, have carried out between 70% to 80% of attacks in Germany since 2018.
Dutch police suspect around 500 men are responsible, working in ever-evolving groups as new recruits replace those who get caught. Prosecutors in Frankfurt this week charged six Dutch citizens with causing explosions, theft and property damage.
Reuters Graphics
Ratingen police are investigating a possible Dutch connection in last month’s twin raid too, having identified a small vehicle that sped from the scene to a nearby Autobahn.
On Thursday, nearly a month after the attacks, Santander’s facade remained boarded up. Deutsche Bank’s sign was still damaged, and a sign asked for customers’ understanding that ATMs were out of order while under repair.
In Germany, roughly 60% of everyday purchases are paid in cash, according to a Bundesbank study that found Germans, on average, withdrew more than 6,600 euros annually chiefly from cash machines.
Germany is also working with officials in Belgium and France and at Europol to combat the cash machine crime wave. The partner authorities did not respond to requests for comment.
Noting that ATM raids endangered lives, German Interior Minister Nancy Faeser this week urged banks to step up safety measures for ATMs.
Both Santander and Deutsche said they prioritised safety and were continuously improving ATM security, but banks inside Germany are reluctant to adopt blanket measures, instead advocating a case-by-case approach depending on individual security risk.
A spokesperson for Deutsche Kreditwirtschaft, a umbrella lobby group for the nation’s financial institutions, said: “Different locations come with different risks. There is currently no one-size-fits-all solution.”
($1 = 0.9044 euros)
Additional reporting by Milan Pavicic; editing by John Stonestreet
Covers German finance with a focus on big banks, insurance companies, regulation and financial crime, previous experience at the Wall Street Journal and New York Times in Europe and Asia.
LONDON, April 13 (Reuters) – The latest bid by the world’s leading institutions and creditors to speed up debt restructurings and get bankrupt countries back on their feet has been greeted by a mix of cautious optimism and weary scepticism by veteran crisis watchers.
Standoffs between major Western-backed lenders like the International Monetary Fund (IMF) and the world’s top bilateral creditor, China, have been blamed for keeping countries such as Zambia mired in default for nearly three years.
The somewhat loose framework around sovereign restructurings has seen Beijing seek to influence the traditional rules of engagement in these processes.
The renewed push to overcome the logjams came after a “roundtable” at the IMF Spring Meetings and included pledges from the Fund and World Bank to share assessments of countries’ troubles more quickly, provide more low-interest and grant funding and stricter timeframes on restructurings overall.
The idea is that Beijing would then drop its insistence that the multilateral lenders take losses, or “haircuts”, on the loans they have provided or underwritten in crisis-hit countries.
Beijing has not commented directly on the demand for multilateral lender haircuts, but in remarks published on Friday People’s Bank of China Governor Yi Gang reiterated China’s willingness to implement debt talks under the Common Framework, the platform introduced by leading G20 nations in 2020 to streamline talks with all creditors.
“If the multilateral development banks are now making real commitments to provide fresh grants to distressed countries this is a breakthrough,” said Kevin Gallagher, director of the Boston University Global Development Policy Center.
But he added that as the new plans lacked specific mention of China’s intentions it suggested the “lack of a strong and clear consensus” in Washington.
The IMF’s managing director Kristalina Georgieva has stressed that with around 15% of low income countries already in debt distress and dozens more in danger of falling into it, far more urgency is needed.
Besides members of the Paris Club of creditor nations such as the United States, France and Japan, cash-strapped nations now have to rework loans with lenders such as India, Saudi Arabia, South Africa and Kuwait – but first and foremost China.
Beijing is now the largest bilateral creditor to developing nations, extending $138 billion in new loans between 2010 and 2021, according to World Bank data, and some estimates put total lending at almost $850 billion.
Reuters Graphics
HEADWINDS
Global headwinds are about to get stronger too.
Financially weaker countries with “junk”-grade sovereign credit ratings need to repay or refinance $30 billion worth of government bonds next year between them, compared to just $8.4 billion for the remainder of this one.
The rise in global borrowing costs, though, means that many countries under the greatest stress are now unable to borrow in the international capital markets or, if they can, only at unsustainably high interest rates.
The Chinese debt, meanwhile, is often opaque and muddied by arguments about whether the loans have been given by “official” entities – i.e by the government – or by “private” entities.
Authorities in Beijing also prefer to roll over debt payments rather than write them off, and given it is an increasingly dominant creditor, it has little incentive to follow co-operative Paris Club-like principles.
“It would be great to have China on board (with the push to speed up restructurings) but I don’t really have high hopes because there is a lot of geopolitics involved,” said Viktor Szabo, an emerging market debt manager at Abrdn in London.
Select IMF loans to low and middle income countries by date of Board approval
COMMON PROBLEMS
Recent research by Boston University estimated that up to $520 billion in debt needs to be written off to help developing nations at greatest risk of default return to a sounder fiscal footing.
But lengthy delays in Zambia, and more recently in Sri Lanka, have elicited widespread criticism of the Common Framework.
Wednesday’s promises by the IMF to provide its assessments more quickly was an admission that the Common Framework was currently failing, Szabo added.
“You have to make it functional. The fact that it’s been in place for three years and there is nothing to really show for it, that is really appalling.”
Anna Ashton, director of China research at Eurasia Group, said this week’s developments underscored the benefits for China to give some ground on some of its concerns.
“Being willing to compromise and facilitate debt restructuring right now is likely crucial to China’s continued credibility with the developing world writ large,” Ashton said.
Patrick Curran, senior economist with Tellimer, added that China dropping demands for the big multilateral development banks (MDBs) to swallow losses on their loans could also be “a major breakthrough”.
“There is likely to be broad support for the alternative proposal that MDBs mobilize their resources more aggressively, especially at a time when most low-income countries are locked out of the market,” Curran said.
Germany’s finance minister Christian Lindner on Thursday too said all the talk now needed to be converted into action.
The group that took part in Wednesday’s roundtable plans to meet again in coming weeks to address remaining issues, including how various creditors are treated, principles for cut-off dates and suspending debt payments.
Ultimately, whether the new terms help Zambia, and countries like Sri Lanka, Ghana and Ethiopia that are also in the midst of bailout talks, finalise deals will be the only proof of whether the new terms work.
“China is a difficult partner to talk to but we need China at the table for the solution of debt problems, because otherwise we won’t see any progress,” Lindner said.
Reuters Graphics
Additional reporting by Rodrigo Campos in New York and Joe Cash in Beijing
Editing by Mark Potter
NEW DELHI, April 4 (Reuters) – India’s Bank of Baroda (BOB.NS) has stopped clearing payments for Russian oil sold above the price cap set by the West from this month, three sources with direct knowledge of the matter said, a move that could expedite transition to a rupee trade mechanism.
Some Indian refiners were paying in the United Arab Emirates dirham currency for Russian low-sulphur crude priced above the $60 a barrel cap using Bank of Baroda, mainly to Dubai-based traders, sources said.
The Group of Seven economies, the European Union and Australia, set the price cap late last year to bar Western services and shipping from trading Russian oil unless sold at an enforced low price to deprive Moscow of funds for its Ukraine war.
“Bank of Baroda is extremely cautious in settling payments for Russian oil bought (at levels) above the price cap,” one of the sources said.
“They have told us no for settling payments for above-cap barrels,” the person said.
The state-run lender told refiners last month that it would not settle payment from Russian barrels bought above the price cap, the three sources said.
Bank of Baroda did not respond to requests for comment from Reuters.
Before the Ukraine war, Indian refiners rarely bought oil from Russia due to higher freight costs. After Western sanctions on Moscow for its invasion of Ukraine, Indian refiners have been gorging on discounted Russian oil.
Russia has replaced Iraq as the top oil supplier to India in the last few months, data from trade sources showed.
Sources anticipate that prices of Russian sweet crude such as Sokol and ESPO Blend, which was sold near $60 a barrel in recent weeks, could breach the price cap due to a sharp spike in global oil prices triggered by Sunday’s OPEC+ decision to cut output.
Some refiners, mainly private operators, have been clearing payments in dirhams for Russian crude through private lender Axis Bank (AXBK.NS), sources told Reuters last month. It was not clear if Axis Bank had also stopped settling trades for Russian oil sold above the price cap.
Axis Bank did not immediately respond to Reuters’ request for comment.
Although Indian refiners buy Russian oil on a delivered basis, copies of invoices reviewed by Reuters also show shipping charges, which helps in calculating the price of crude at Russian ports.
Sources said that problems in settling trade for Russian oil could push sellers to accept rupee payments, at least for barrels that exceed the price cap.
“We have neither stopped nor reduced purchases of Russian oil after Bank of Baroda’s decision … we will consider using rupees to pay for oil purchased above the price cap,” another source said.
India does not recognise the Western price cap on Russian oil, a senior oil ministry source said last month.
SETTLEMENT MECHANISM
India set up a mechanism to settle its international trade in rupees last year. Some Russian banks later opened vostro accounts with banks in India to facilitate rupee trade.
The mechanism has not yet started given the lack of Russian appetite for rupees and India’s trade deficit with Moscow.
However, during a visit last week to India, Igor Sechin, chief executive of Russian oil major Rosneft, discussed ways to expand cooperation with India across the hydrocarbons value chain, including the possibility of making payments in national currencies.
A switch to rupee payments would help wean Russia from dollars and would save foreign exchange for India.
Reporting by Nidhi Verma; Additional reporting by Siddhi Nayak in Mumbai; Editing by Tony Munroe and Jacqueline Wong
UNITED NATIONS, April 3 (Reuters) – Russia’s commissioner for children’s rights, who is wanted by the International Criminal Court on war crimes charges, is likely to brief an informal meeting of the U.N. Security Council this week, according to a note seen by Reuters on Monday.
Russia, which holds the monthly rotating presidency of the 15-member body for April, told council members in a note that it plans to hold an informal meeting on Wednesday on Ukraine, focused on “evacuating children from conflict zone.”
“Participants will hear ‘first hand’ information from the Presidential Commissioner for Children’s Rights of the Russian Federation, as well as from children evacuated from the conflict area,” read the note.
The commissioner is Maria Lvova-Belova. The International Criminal Court (ICC) last month issued an arrest warrant against Russian President Vladimir Putin and Lvova-Belova, accusing them of illegally deporting hundreds of children from Ukraine, as well as the unlawful transfer of people to Russia from Ukraine since Moscow invaded on Feb. 24, 2022.
“They cannot invite a credible briefer because they do not have any credibility on this issue,” Britain’s Deputy U.N. Ambassador James Kariuki told Reuters in a statement. “Russian leaders have been charged by the ICC with unlawfully deporting children from Ukraine to Russia. That is a war crime.”
Russia’s U.N. Ambassador Vassily Nebenzia said on Monday that the meeting briefers would be announced shortly. Such meetings are held at U.N. headquarters, but not in the Security Council chamber, and briefings can be done virtually.
‘APRIL FOOL’S JOKE’
Moscow has not concealed a program under which it has brought thousands of Ukrainian children to Russia but presents it as a humanitarian campaign to protect orphans and children abandoned in the conflict zone.
Nebenzia told reporters last month that the informal meeting of Security Council members to be held on Wednesday had been planned long before the ICC announcement and it was not intended to be a rebuttal of the charges against Putin and Lvova-Belova.
While a feature of Russia’s presidency, members do not need to be the rotating monthly president to hold such meetings.
Russian Foreign Minister Sergei Lavrov is due to travel to New York to chair formal Security Council meetings later in the month on the Middle East and on “effective multilateralism through the defense of the principles of the U.N. Charter.”
The 193-member U.N. General Assembly has criticized Russia for violating the founding U.N. Charter by invading its neighbor and called for a “comprehensive, just and lasting peace” in line with the principles of the U.N. Charter.
Given Russia’s Security Council presidency started on April 1, U.S. Ambassador to the United Nations, Linda Thomas-Greenfield, told reporters on Monday: “It’s like an April Fool’s joke … We expect that they will behave professionally.”
“But we also expect that they will use their seat to spread disinformation and to promote their own agenda as it relates to Ukraine, and we will stand ready to call them out at every single moment that they attempt to do that,” she said.
Reporting by Michelle Nichols; Editing by Don Durfee and Bill Berkrot
Poland pledges more MiG jets for Kyiv during Zelenskiy visit
Zelenskiy cites difficult situation for Kyiv’s forces in Bakhmut
France’s Macron in China to nudge it to help end Russia’s war
KYIV, April 5 (Reuters) – Ukrainian President Volodymyr Zelenskiy said during a trip to Warsaw on Wednesday that Poland would help form a coalition of Western powers to supply warplanes to Kyiv, adding that Ukrainian troops were still fighting for Bakhmut in the east but could withdraw if they risked being cut off.
Neighbouring Poland is a close ally of Ukraine and helped galvanise support in the West to supply main battle tanks to Kyiv. During Zelenskiy’s visit, Poland announced it would send 10 more MiG fighter jets on top of four provided earlier.
“Just as your (Polish) leadership proved itself in the tank coalition, I believe that it will manifest itself in the planes coalition,” Zelenskiy said in a speech on a square in Warsaw.
Earlier in the day, Zelenskiy said Ukrainian troops faced a really difficult situation in Bakhmut and the military would take “corresponding” decisions to protect them if they risk being encircled by Russian invasion forces.
Ukrainian forces in Bakhmut sometimes advanced a little only to be knocked back, Zelenskiy said, but remained inside the city.
“We are in Bakhmut and the enemy does not control it,” Zelenskiy said.
BOMBARDMENT
Bakhmut, in Ukraine’s mainly Russian-occupied Donetsk province, has proven one of the bloodiest and longest battles of Russia’s invasion, now in its 14th month. Kyiv’s forces have held out against a Russian onslaught with heavy losses on both sides and the city, a mining and transport hub, reduced to ruin after months of street fighting and bombardment.
“For me, the most important is not to lose our soldiers and of course if there is a moment of even hotter events and the danger we could lose our personnel because of encirclement – of course the corresponding correct decisions will be taken by generals there,” Zelenskiy said.
He appeared to be referring to the idea of withdrawing.
However, Deputy Defence Minister Hanna Malyar said later in that the situation at the front was “completely under control” despite repeated Russian attempts to take Bakhmut and other cities in the east.
Reuters could not verify the battlefield reports.
Ukrainian military commanders have stressed the importance of holding Bakhmut and other cities and inflicting losses on Russian troops before an anticipated counter-offensive against them in the coming weeks or months.
[1/6] Ukrainian service member, Naza, 21, commander from 28th mechanised brigade repositions his machine gun during a fire exchange at the frontline, amid Russia?s attack on Ukraine in the region of Bakhmut, Ukraine, April 5, 2023. REUTERS/Kai Pfaffenbach
Mercenaries from the Wagner group – who have spearheaded the assault on Bakhmut – said at the weekend they had captured the city centre, a claim dismissed by Kyiv.
The U.S.-based Institute for the Study of War said the Wagner fighters had made advances in Bakhmut and were likely to continue trying to consolidate control of the city centre and push westward through dense urban neighbourhoods.
PLAYING THE CHINA CARD
French President Emmanuel Macron, meanwhile, was visiting China after he and U.S. President Joe Biden agreed they would try to engage Beijing to hasten the end of the Russian assault on Ukraine.
China has called for a comprehensive ceasefire and described its position on the conflict as “impartial”, even though the Chinese and Russian presidents announced a “no limits” partnership shortly before the invasion.
Both Macron and European Commission President Ursula von der Leyen, due in Beijing shortly after him, have said they want to persuade China to use its influence over Russia to bring peace in Ukraine, or to at least deter Beijing from directly supporting Moscow in the conflict.
The U.S. and NATO have said China was considering sending arms to Russia, which Beijing has denied.
‘SHOULDER TO SHOULDER’
Poland has played a big role in persuading Western allies to supply battle tanks and other heavy weapons to Ukraine, which helped Kyiv stem and sometimes reverse Russian advances so far.
“You have stood shoulder to shoulder with us, and we are grateful for it,” Zelenskiy said after Polish President Andrzej Duda presented him with Poland’s highest award, the Order of the White Eagle.
Duda said Warsaw was also working to secure additional security guarantees for Ukraine at a NATO summit to be held in the Lithuania in July.
Russian Foreign Minister Sergei Lavrov told state TV that Moscow needed to maintain relations with Washington even though American supplies of weapons to Ukraine meant “we are really in a hot phase of the war”.
In addition to MiG-29s, Kyiv has also pressed NATO for F-16 jet fighters but Duda’s foreign policy adviser, Marcin Przydacz, said Poland would not decide soon on whether to send any.
Reporting by Pavel Polityuk with additional reporting by Ron Popeski, Mike Stone, Alan Charlish, Pawel Florkiewicz and Tom Balmforth; writing by Angus MacSwan, Mark Heinrich and Idrees Ali; editing by Philippa Fletcher, Nick Macfie and Grant McCool
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