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  • Nvidia says US curbs on AI chip sales to China would cause ‘permanent loss of opportunities’ | CNN Business

    Nvidia says US curbs on AI chip sales to China would cause ‘permanent loss of opportunities’ | CNN Business

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    Hong Kong
    CNN
     — 

    Nvidia warned Wednesday that if the United States imposes new restrictions on the export of AI chips to China, it would result in a “permanent loss of opportunities” for US industry.

    The company’s chief financial officer, Colette Kress, said she didn’t anticipate any “immediate material impact” but tighter curbs would impact earnings in the future.

    US officials plan to tighten export curbs announced in October to restrict the sale of some artificial-intelligence chips to China, according to multiple media reports, including the Wall Street Journal and Financial Times. Washington has ramped up efforts to cut China off from key technologies that can support its military.

    The US Department of Commerce has not replied to a CNN request for comment.

    The rules, as reported, could make it harder for companies like Nvidia

    (NVDA)     to sell advanced chips to China. Fueled by a boom in demand for its AI chips, the company briefly hit a market capitalization of $1 trillion in late May.

    “We are aware of reports that the US Department of Commerce is considering further controls that may restrict exports of our A800 and H800 products to China,” Kress told an investment conference.

    “Over the long-term, restrictions prohibiting the sale of our datacenter GPUs to China, if implemented, would result in a permanent loss of opportunities for US industry to compete and lead in one of the world’s largest markets and impact on our future business and financial results,” she said.

    GPUs refer to graphics processing units, which are chips or electronic circuits capable of rendering graphics for display on electronic devices.

    “Given the strength of demand for our products worldwide, we do not anticipate that such additional restrictions, if adopted, would have an immediate material impact on our financial results. We do not anticipate any immediate material impact on our financial results,” Kress added.

    Last October, the Biden administration unveiled a sweeping set of export controls that ban Chinese companies from buying advanced chips and chip-making equipment without a license.

    The new move is aimed in part at Nvidia’s A800 chip, which the US-based company created following the introduction of last year’s curbs in order to continue to sell to China, Bloomberg reported.

    China is a key market for Nvidia. Revenues from mainland China and Hong Kong accounted for 22% of the company’s revenue last year, according to its financial statements.

    On Wednesday, shares of Nvidia slumped as much as 3.2%, before recouping some of the losses. It ended down 1.8%. Chinese AI stocks suffered much heavier losses.

    Inspur Electronic Information Industry fell by 10%, the maximum allowed, on Wednesday in Shenzhen. It dropped again by 5.3% on Thursday. Chengdu Information Technology of Chinese Academy of Sciences slid 12% on Wednesday. Baidu

    (BIDU)    , which is developing a rival to ChatGPT, sank 4.4% on Thursday in Hong Kong.

    “The US could ruin China’s AI party,” Jefferies analyst said in a research note. Local chipsets do not have Nvidia’s GPU ecosystem, thus every update may require reworking, resulting in lower efficiency and higher costs.

    The Biden administration’s chip curbs would be “much more effective” in limiting China’s advances in military power driven by AI than rules restricting US investment in China’s tech sector, the analysts added.

    China has strongly criticized US restrictions on tech exports, saying earlier this year that it “firmly opposes” such measures.

    In May, Beijing banned Chinese operators of critical information infrastructure from buying products from Micron Technology

    (MU)    , in apparent retaliation against sanctions imposed by Washington and its allies on the country’s chip sector.

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  • Tesla smashed it last quarter but China’s BYD did even better | CNN Business

    Tesla smashed it last quarter but China’s BYD did even better | CNN Business

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    Hong Kong
    CNN
     — 

    BYD outpaced Tesla in the second quarter as the Chinese carmaker posted record sales of hybrid and electric vehicles.

    Between April and June, BYD

    (BYDDF)     sold more than 700,000 vehicles, almost double the number sold in the same quarter last year and setting a new quarterly record.

    On Sunday, Tesla

    (TSLA)     announced it had achieved its best quarterly results. The company produced nearly 480,000 vehicles and delivered over 466,000.

    In June, BYD, which is backed by Warren Buffett, sold a total of 253,046 new energy vehicles, up 89% from a year ago, according to a company filing released Sunday. It was the best monthly sales it has ever achieved. New energy vehicles include both battery powered EVs and plug-in hybrids.

    Tesla and BYD are among the bestselling EV makers in the world. BYD still lags behind Tesla globally in terms of pure EV sales. But in China, the Shenzhen-based company has raced ahead as the top brand.

    In May, BYD sold around 119,000 pure EVs, more than double from the same period last year.

    In comparison, Tesla’s Shanghai Gigafactory delivered 77,695 vehicles in May, up 142% from a year ago, according to the most recent statistics released by the China Association of Automobile Manufacturers.

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  • Former Rep. Mondaire Jones announces new election bid in New York | CNN Politics

    Former Rep. Mondaire Jones announces new election bid in New York | CNN Politics

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    CNN
     — 

    Former Democratic Rep. Mondaire Jones announced Wednesday that he is running for Congress in New York’s 17th District, the seat he previously represented before redistricting thwarted his reelection plans last year.

    “I’ve never been Washington’s choice. It’s because I stand up to corruption. I battle with Republicans trying to overthrow our democracy and ban abortion, even as I push my party to fight harder for working people. I’m running to finish the work I began,” Jones said in a tweet accompanying his campaign launch video.

    “Most people in Washington didn’t grow up like me. They have no idea what it’s like to struggle. We got to get Washington back on the side of working people. I know we can do better. For me, this is personal,” he said.

    Jones’ bid will pit him against Republican Rep. Mike Lawler of Rockland County and sets up a potentially brutal Democratic primary in the swing district.

    Westchester residents Liz Whitmer Gereghty, the sister of Michigan Gov. Gretchen Whitmer who previously served on the district’s school board, and MaryAnn Carr have also declared their candidacies for the 17th District. Gereghty is planning to run as a more moderate candidate in her bid to flip the seat.

    Jones became one of the first two openly gay Black men elected to Congress when he first won the race to succeed former Democratic Rep. Nita Lowey in 2020. He served as a member of the Congressional Progressive Caucus and was elected unanimously by his colleagues to serve as the freshman representative to House Democratic Leadership.

    Jones was seen as a rising star in the party for his positions on expanding the size of the Supreme Court and supporting the “Green New Deal” while also voting for the 2021 bipartisan infrastructure deal and increased police funding.

    Jones chose not to run for reelection for his old seat after redistricting placed him in the same district as former Rep. Sean Patrick Maloney, the then-chairman of the Democratic Congressional Campaign Committee. He instead ran in New York’s 10th District, and ultimately lost to Dan Goldman in the Democratic primary. Goldman went on to win the race, but Maloney ultimately lost his election to Lawler.

    Democrats are now eager to flip the 17th District seat and ensure a Democrat succeeds in the 2024 congressional race.

    Jones was an on-air CNN political commentator for several months earlier this year before leaving the network.

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  • 14 promises Donald Trump has made in his campaign for a second term | CNN Politics

    14 promises Donald Trump has made in his campaign for a second term | CNN Politics

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    CNN
     — 

    Former President Donald Trump has hit the 2024 campaign trail and is giving voters a preview of what a second Trump presidency could look like if he’s elected. He’s made many campaign promises – many of which are often vague and lacking in details or specifics – including ending the war in Ukraine, building 10 new cities and giving drug smugglers the death penalty.

    Here are some of the policies he says he would enact if elected for a second term.

    “The drug cartels are waging war on America—and it’s now time for America to wage war on the cartels,” former President Donald Trump said in a January campaign video.

    If elected, Trump said in his November 2022 campaign announcement that he would ask Congress to ensure that drug smugglers and human traffickers can receive the death penalty for their “heinous acts.” The former president also vowed to “take down” drug cartels by imposing naval embargos on cartels, cutting off cartels’ access to global financial systems and using special forces within the Department of Defense to damage the cartels’ leadership.

    “When I am president, we will put parents back in charge and give them the final say,” Trump said in a January campaign video, speaking about education

    The former president said he would give funding preferences and “favorable treatment” to schools that allow parents to elect principals, abolish teacher tenure for K-12 teachers, use merit pay to incentivize quality teaching and cut the number of school administrators, such as those overseeing diversity, equity and inclusion initiatives.

    Trump also said in the campaign video that he would cut funding for schools that teach critical race theory and gender ideology. In a later speech, Trump said he would bring back the 1776 Commission, which was launched in his previous administration to “teach our values and promote our history and our traditions to our children.”

    Lastly, the former president said he would charge the Department of Justice and the Department of Education with investigating civil rights violations of race-based discrimination in schools while also removing “Marxists” from the Department of Education. A second Trump administration would pursue violations in schools of both the Constitution’s Establishment and Free Exercise clauses, which prohibit the government establishment of religion and protect a citizen’s right to practice their own religion, he said.

    “I will revoke every Biden policy promoting the chemical castration and sexual mutilation of our youth and ask Congress to send me a bill prohibiting child sexual mutilation in all 50 states,” Trump said at the 2023 Conservative Political Action Conference in March.

    Trump added in a campaign video that he would issue an executive order instructing federal agencies to cut programs that promote gender transitions, as well as asking Congress to stop the use of federal dollars to promote and pay for gender-affirming procedures. The former president added that his administration would not allow hospitals and healthcare providers to meet the federal health and safety standards for Medicaid and Medicare if they provide chemical or physical gender-affirming care to youth.

    Trump said in two February campaign videos that, if “Marxist” prosecutors refuse to charge crimes and surrender “our cities to violent criminals,” he “will not hesitate to send in federal law enforcement to restore peace and public safety.”

    Trump added that he would instruct the Department of Justice to open civil rights investigations into “radical left” prosecutors’ offices that engaged in racial enforcement of the law, encourage Congress to use their legal authority over Washington, DC, to restore “law and order” and overhaul federal standards of disciplining minors to address rising crimes like carjackings.

    Addressing policies made in what Trump calls the “Democrats’ war on police,” the former president vowed in a campaign video that he would pass a “record investment” to hire and retrain police, strengthen protections like qualified immunity, increase penalties for assaulting law enforcement officers and deploy the National Guard when local law enforcement “refuses to act.” The former president added that he would require law enforcement agencies that receive money from his funding investment or the Department of Justice to use “proven common sense” measures such as stop-and-frisk.

    “Shortly after I win the presidency, I will have the horrible war between Russia and Ukraine settled,” Trump said at a New Hampshire campaign event, adding in another speech that it would take him “no longer than one day” to settle the war if elected. Trump offered no details on how he would end the war in Ukraine.

    Trump further addressed his strategy of stopping the “never-ending wars” by vowing to remove warmongers, frauds and “failures in the senior ranks of our government,” and replace them with national security officials who would defend America’s interests. The former president added in a campaign video that he would stop lobbyists and government contractors from pushing senior military officials towards war.

    Trump said he would restore his “wonderful” travel ban on individuals from several majority-Muslim countries to “keep radical Islamic terrorists out of our country” after President Joe Biden overturned the ban in 2021.

    Trump said in multiple campaign videos that he would spearhead an effort to build Freedom Cities to “reopen the frontier, reignite American imagination, and give hundreds of thousands of young people and other people, all hardworking families, a new shot at home ownership and in fact, the American Dream.”

    In his plan, the federal government would charter 10 new cities on federal land, awarding them to areas with the best development proposals. The former president said in a campaign video that the Freedom Cities would bring the return of US manufacturing, economic opportunity, new industries and affordable living.

    In the March video, Trump added that the US under a second Trump administration would lead in efforts to “develop vertical-takeoff-and-landing vehicles for families and individuals,” not letting China lead “this revolution in air mobility.” The former president said these airborne vehicles would change commerce and bring wealth into rural communities.

    “When I am president, this whole rotten system of censorship and information control will be ripped out of the system at large. There won’t be anything left,” Trump said in a January video.

    To address the “disturbing” relationship between technology platforms and the government, the former president said he would enact a seven-year cooling off period before employees at agencies such as the FBI or CIA can work for platforms that oversee mass user data.

    Trump added in multiple campaign releases that he would task the Department of Justice with investigating and prosecuting the online censorship “regime,” ban federal agencies from “colluding” to censor citizens, fire bureaucrats who are believed to engage in federal censorship and suspend federal money to universities participating in “censorship-supporting activities.”

    On false information, the president would ban the use of taxpayer dollars to label any domestic speech as mis- or disinformation, as well as stopping federal funding of nonprofits and academic programs that study mis- or disinformation.

    Under the proposed Trump Reciprocal Trade Act, the former president said if other countries impose tariffs in the US, “we charge THEM – an eye for an eye, a tariff for a tariff, same exact amount.”

    Trump vowed in a campaign video to impose the same tariffs that other countries may impose on the US on those countries. The goal, the former president said, is to get other countries to drop their tariffs.

    As part of a larger strategy to bring jobs back into the US, Trump said he would also implement his America First trade agenda if elected. Setting universal baseline tariffs on a majority of foreign goods, the former president said Americans would see taxes decrease as tariffs increase. His proposal also includes a four-year plan to phase out all Chinese imports of essential goods, as well as stopping China from buying up America and stopping the investment of US companies in China.

    “With victory, we will again build the greatest economy ever,” Trump said in his November campaign announcement. “It will take place quickly. We will build the greatest economy ever,” though he didn’t provide specific policy proposals or explain how he would improve the economy.

    Trump said he would repeal Biden’s tax hikes, “immediately tackle” inflation and end what he called Biden’s “war” on American energy production.

    At CPAC, Trump promised to, “fire the unelected bureaucrats and shadow forces who have weaponized our justice system like it has never been weaponized before…” Trump also said in a campaign video that he would reinstate a 2020 executive order to remove “rogue” bureaucrats and propose a constitutional amendment for term limits on members of Congress.

    Trump also pledged to “appoint US Attorneys who will be the polar opposite of the Soros District Attorneys and others that are being appointed throughout the United States.” The former president added on to this message, vowing to end the “reign” of such investigations and district attorneys and overhaul the Department of Justice and the FBI.

    “I will take Biden’s executive order directing the federal government to target the firearms industry, and I will rip it up and throw it out on day one,” Trump said at the 2023 National Rifle Association Institute for Legislative Action leadership forum in April.

    The former president also promised in the speech that the government would not infringe on citizens’ Second Amendment rights and that he would push Congress to pass a concealed carry reciprocity.

    “I will create a special team to rapidly review every action taken by federal agencies under Biden’s ‘equity’ agenda that will need to be reversed. We will reverse almost all of them,” Trump said in a campaign video.

    Trump added in multiple campaign videos that he would revoke Biden’s equity executive order that required federal agencies to deliver equitable outcomes in policy and conduct equity training. If elected, Trump said he would also fire staffers hired to implement Biden’s policy, and then reinstate his 2020 executive order banning racial and sexual stereotyping in the federal government.

    “When I’m president, I will ensure that America’s future remains firmly in American hands just as I did when I was president before,” Trump said in a campaign video.

    Trump vowed to restrict Chinese ownership of US infrastructure such as energy, technology, telecommunications and natural resources. The former president also said he would force the Chinese to sell current holdings that may put national security at risk. “Economic security is national security,” he said.

    Trump vowed in a June campaign video to reinstate his previous executive order that the US government would pay the same price for pharmaceuticals as other developed countries to “end this global freeloading on American consumers for once and for all.”

    Some of the former presidents’ pharmaceutical policies were overturned by Biden. Trump said in the video his administration would pay the best prices offered to other countries, who he said often pay lower pharmaceutical prices than Americans. This policy, Trump believes, would cause the pharmaceutical industry to raise prices for other countries while lowering costs for Americans.

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  • Meta cut election teams months before Threads launch, raising concerns for 2024 | CNN Business

    Meta cut election teams months before Threads launch, raising concerns for 2024 | CNN Business

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    CNN
     — 

    Meta has made cuts to its teams that tackle disinformation and coordinated troll and harassment campaigns on its platforms, people with direct knowledge of the situation told CNN, raising concerns ahead of the pivotal 2024 elections in the US and around the world.

    Several members of the team that countered mis- and disinformation in the 2022 US midterms were laid off last fall and this spring, a person familiar with the matter said. The staffers are part of a global team that works on Meta’s efforts to counter disinformation campaigns seeking to undermine confidence in or sow confusion around elections.

    The news comes as Meta, the parent company of Facebook and Instagram, is celebrating the unparalleled success of its new Threads platform, surpassing 100 million users just five days after launch and opening a potential new avenue for bad actors.

    A Meta spokesperson did not specify, when asked, how many staffers had been cut from its teams working on elections. In a statement to CNN on Monday night, the spokesperson said, “Protecting the US 2024 elections is one of our top priorities, and our integrity efforts continue to lead the industry.”

    The spokesperson did not answer CNN questions about what additional resources had been deployed to monitor and moderate its new platform. Instead, Meta said the social media giant had invested $16 billion in technology and teams since 2016 to protect its users.

    But the decision to lay off staffers ahead of 2024, when elections will not only take place in the United States but also in Taiwan, Ukraine, India and elsewhere, has raised concerns among those with direct knowledge of Meta’s election integrity work.

    The disparate nature of Meta’s work on elections makes it difficult for even people inside the company to say specifically how many people are part of the effort. One group of relevant employees hit harder by the layoffs were “content review” specialists who manually review election-related posts that may violate Meta’s terms of service, a person familiar with the cuts told CNN.

    Meta is trying to offset those cuts by more proactively detecting accounts that spread false election-related information, said the person, who spoke on the condition of anonymity because they were not authorized to speak to the press.

    For years, the social media giant has invested heavily in teams of personnel to root out sophisticated and coordinated networks of fake accounts. That “coordinated inauthentic behavior,” as Meta calls it, began in the lead up to the 2016 election when an infamous Russian government-linked troll operation ran amuck on Facebook.

    The team tasked with combating the influence campaigns – which includes former US government and intelligence officials – has been generally seen as the most robust in the social media industry. The company has published quarterly reports in recent years that expose governments and other entities found to have been operating covert campaigns pushing disinformation on Meta’s platforms.

    Those teams investigating disinformation campaigns now must further prioritize which campaigns and countries to focus on, another person familiar with the situation said, a trade-off that could result in some deceptive efforts going unnoticed.

    The person emphasized that Meta still has a dedicated team of professionals working on these issues, many of whom are widely respected in the cyber and information security communities.

    But while artificial intelligence and other automated systems can help detect some of these efforts, unearthing sophisticated disinformation networks is still a “very manual process” that involves intense scrutiny from expert staff, another person with direct knowledge of Meta’s counter disinformation efforts told CNN.

    The person said they feared Meta was regressing from progress it had made from learning from past mistakes. “Lessons that were learned at great costs,” they said, citing the company’s 2018 admission that its platforms were used to incite violence in Myanmar.

    In addition to its in-house team, Meta and other social media companies rely on tips from academics and other researchers who specialize in monitoring covert disinformation networks.

    Darren Linvill, a professor at Clemson University’s Media Forensics Hub, said he has sent the company valuable tips in recent months, but Meta’s response time has slowed significantly.

    Linvill, who has a long track record of successfully identifying covert online accounts, including helping to unearth a Russian election meddling effort in Africa in 2020, said that Meta recently removed a network of Russian language accounts that were posting both pro and anti-Ukraine content on Facebook and Instagram.

    “They were trying to stoke anger on both sides of the debates,” he said.

    Launched last Thursday, Threads has become an instant success with celebrities, politicians, and journalists flocking to the platform.

    The new Twitter-style app is tied to users’ existing Instagram accounts, rather than being linked directly to Facebook. Currently, Threads shares the same community standards as Instagram, but the platforms differ on issues relating to Meta’s methods to combat disinformation.

    Meta also applies labels to state-controlled accounts on Facebook and Instagram, such as Russia’s Sputnik news agency and China’s CCTV. However, these labels do not appear on state-controlled accounts on Threads.

    The launch of Threads even as Meta trims its disinformation-focused personnel comes at a turbulent and transformative time for those tasked with writing and implementing rules on social media platforms.

    Elon Musk, the billionaire who bought Twitter last year, has all but torn up that platform’s rule book and gutted the team that worked on implementing policies designed to combat disinformation efforts.

    Last month, YouTube, which has also made job cuts, announced it would allow videos that feature the false claim the 2020 US presidential election was stolen, a reversal of its previous policy.

    The rule reversals come as the Republican-controlled House of Representatives investigates interactions between technology companies and the federal government.

    Last week, a federal judge in Louisiana ordered some Biden administration agencies and top officials not to communicate with social media companies about certain content, handing a win to GOP states in a lawsuit accusing the government of going too far in its effort to combat Covid-19 disinformation.

    The restrictions and the scrutiny could give cover to social media companies that may want to pull back on some of their platforms’ rules around election integrity, said Katie Harbath, a former Facebook official who helped lead the company’s global election efforts until 2021.

    “I can [almost] hear [Meta Global Affairs President] Nick Clegg saying that ‘we’re going to be cautious of what we do, because we wouldn’t want to run afoul of the law,’” Harbath said.

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  • Exclusive: Trevor Reed is expected to make a full recovery after being wounded in Ukraine | CNN Politics

    Exclusive: Trevor Reed is expected to make a full recovery after being wounded in Ukraine | CNN Politics

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    CNN
     — 

    Former US Marine Trevor Reed is expected to make a full recovery after being wounded in battle approximately two weeks ago serving alongside Ukrainian forces fighting Russia, a source close to Reed told CNN.

    Reed is currently receiving medical care in Germany after being evacuated there by MediCare Hubs Kyiv, a German NGO, and FRIDA Ukraine, an Israeli NGO.

    Reed first traveled to Ukraine on November 1 to fight the invading Russian forces, doing so strictly as a volunteer with no affiliation with the US government, the source said.

    Reed, who spent nearly three years wrongfully detained in Russia, told friends and family he was motivated to fight by seeing the depths of Russian oppression firsthand as a prisoner, the source said, adding that Reed said he was honored to serve alongside Ukrainian fighters.

    After Reed’s unit successfully pushed back against Russian forces and recaptured about 2 km of land near Bahkmut, the source said, Reed was wounded along with others in his unit. As opposed to what US government sources told another media outlet, Reed did not step on a land mine. He was injured by shrapnel which he got in both his legs.

    He is “recuperating quickly and hopes to be home soon,” the source said.

    The source says that Reed and his family hope the news media can respect their desire for privacy as Reed recovers from his wound. He will tell his story when the time is right, the source tells CNN.

    Reed was freed from Russian detention in a high-profile prisoner swap in April 2022.

    Secretary of State Antony Blinken at a news conference Tuesday in Tonga said that Reed’s fighting in Ukraine “shouldn’t have any effect” on ongoing negotiations aimed at freeing two Americans who remain wrongfully detained in Russia: Paul Whelan and Evan Gershkovich.

    “As I’ve noted before, even with countries where we have profound differences, and almost by definition, countries that are arbitrarily detaining or unlawfully detaining Americans are usually countries with which we have profound differences, we manage to find ways to bring Americans home,” Blinken said.

    Another US official noted that “of course” they were concerned about the negative implications that Reed’s situation would have on negotiations, but stressed that the two issues are wholly separate.

    State Department principal deputy spokesperson Vedant Patel and another US administration official stressed that Reed “was not engaged in any activities on behalf of the US government.”

    “And as I indicated, we have been incredibly clear warning American citizens, American nationals not to travel to Ukraine, let alone participate in fighting,” Patel added.

    “Since the beginning of this war, we have warned that US citizens who traveled to Ukraine, especially with the purpose of participating in fighting there, that they face significant risks including the risk of capture or death or physical harm,” he said.

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  • DeSantis teases ‘more to come’ on latest twist in Disney battle: ‘You ain’t seen nothing yet’ | CNN Politics

    DeSantis teases ‘more to come’ on latest twist in Disney battle: ‘You ain’t seen nothing yet’ | CNN Politics

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    CNN
     — 

    Florida Gov. Ron DeSantis on Thursday teased future, unspecified action against Disney after the entertainment giant appeared to thwart his attempts at a takeover of its special governing powers.

    “There’s a lot of little back-and-forths going on now with the state taking control, but rest assured, you know, you ain’t seen nothing yet,” the Republican governor told a crowd in Smyrna, Georgia. “There’s more to come in that regard.”

    The comments come a day after DeSantis allies on the Central Florida Tourism Oversight District board – the body that oversees the land in and around Disney’s Orlando-area theme parks – unveiled that the company had quietly reached an agreement with the outgoing board that turned over most of its governing powers to Disney. The new board hired outside legal counsel as it weighs its options to claw back its authority.

    Yet, DeSantis on Thursday continued to claim victory over Disney in a dispute that first began last year when the company vowed to help overturn a new law that limited the instruction of sexual orientation and gender identity in schools. DeSantis responded by vowing to strip the company of its longstanding power to tax, borrow and build infrastructure projects in Central Florida in an area known as the Reedy Creek Improvement District.

    “I don’t know that it’s the appropriate use of shareholder resources to be shilling for gender ideology in kindergarten, but nevertheless, that’s what they decided to do,” DeSantis said.

    In February, DeSantis signed a bill that removed all the Disney-aligned board members and gave him the power to name their replacements. The new board took over in early March – a month after the outgoing board had already moved to turn over oversight of development to Disney and gave the company veto authority over any public project in the district.

    “They basically got everything they wanted for the many decades they’ve been operating in Florida – until now, because now there’s a new sheriff in town,” DeSantis said at Thursday’s event.

    DeSantis’ office on Thursday declined to say when the governor discovered Disney maneuvered to salvage its special powers.

    Despite his upbeat take on the latest developments, DeSantis on Thursday spoke less about his battle with Disney than he has in previous speeches on his recent book tour. The saga typically occupies a prominent space in his remarks – often with a lengthy tale about his Disney World wedding – and it’s the subject of an entire chapter of his new book.

    Now, if Disney gets its way, it will be decades before DeSantis and his successors gain significant power over the entertainment company.

    Under the agreement, quietly approved on February 8 as Florida lawmakers met in special session to hand DeSantis control of the Reedy Creek Improvement District, Disney will maintain control over much of the district for 30 years. Lawyers for the new board also said Disney has veto authority over any public project in the district.

    “The lack of consideration, the delegation of legislative authority to a private corporation, restriction of the Board’s ability to make legislative decisions, and giving away public rights without compensation for a private purpose, among other issues, warrant the new Board’s actions and direction to evaluate these overreaching documents and determine how best the new Board can protect the public’s interest in compliance with Florida Law,” the board’s legal team, Fishback Dominick LLP, Cooper & Kirk PLLC, Lawson Huck Gonzalez PLLC, Waugh Grant PLLC and Nardella & Nardella PLLC, said in a statement.

    Another provision prevents the new board from using any of its “fanciful characters” until “21 years after the death of the last survivor of the descendants of King Charles III, king of England,” according to a copy of the deal included in the February 8 meeting packet.

    “This essentially makes Disney the government,” board member Ron Peri said during a meeting of the new board on Wednesday. “This board loses, for practical purposes, the majority of its ability to do anything beyond maintaining the roads and maintaining basic infrastructure.”

    On Thursday, Florida Attorney General Ashley Moody’s office sent a records request to the district and former board members asking for documents and communications related to the February 8 vote. In a letter to the former board members, Moody’s office warned of “civil and criminal penalties” for not turning over any responsive records.

    Disney on Thursday did not respond to requests for details on the arrangement, but on Wednesday the company stood by its actions.

    “All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law,” the company said.

    Documents for the February 8 meeting show it was noticed in the Orlando Sentinel as required by law.

    This story has been updated with additional details.

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  • Tim Cook and Bob Iger to meet with House China committee members | CNN Business

    Tim Cook and Bob Iger to meet with House China committee members | CNN Business

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    Washington
    CNN
     — 

    Members of a House panel focused on US-China competition are set to meet with leaders from Silicon Valley and Hollywood during a multi-day tour of California beginning today, according to a source close to the committee.

    The House Select Committee on the Chinese Communist Party plan to meet with top execs from Google, Microsoft, Apple and Disney, among others, to discuss topics ranging from China’s investments in artificial intelligence to its cultural and human rights record; its impact on supply chains; and its goals for defense and other emerging technologies, the source said.

    “We’re going to learn and share our concerns and views on the geopolitics at play here, and what we understand the CCP’s broader ambitions to be,” the source said.

    The 10-member bipartisan congressional delegation led by Chairman Mike Gallagher, a Wisconsin Republican, will kick things off Wednesday in a meeting with Disney CEO Bob Iger, where lawmakers are expected to raise concerns about Disney’s compliance with China’s censorship regime.

    Lawmakers will also dine with entertainment producers and screenwriters who have been critical of the industry’s approach to wooing Chinese viewers, the source said.

    On Thursday, lawmakers will engage with officials from Big Tech and venture capital, the source said. Microsoft President Brad Smith will speak to members about China’s control of rare earth minerals, a key input in many modern computing technologies, while experts from Stanford University are set to discuss innovation in the defense field. The group is expected to lunch with Big Tech executives representing Google, Microsoft, Palantir and Scale AI.

    On Friday, lawmakers will have conversations with former Defense Secretary James Mattis as well as Apple CEO Tim Cook. China is Apple’s third-largest geographic business segment after the Americas and Europe, accounting for more than $74 billion in company revenues last year. Apple’s revenue from China grew by 70% between 2020 and 2021, according to its financial reports.

    The meetings will also include a session on China’s role in the digital currency space and talks with members of the cryptocurrency community based in California, the source added.

    The breadth of subjects covered on the tour highlight the range of challenges the Chinese government poses to US leadership, the source said, adding that lawmakers will seek to deliver the message to business that excessive dependence on China — whether for supplies, or as a base of potential customers — exposes the US to risk.

    “This committee was set up to build out the bipartisan consensus on the CCP and the actions we need to take to defend ourselves,” the source said. “[The goal is to] make them aware of what’s happening so they can equip themselves as appropriate.”

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  • Should parents decide what their kids do online? These states think so | CNN Business

    Should parents decide what their kids do online? These states think so | CNN Business

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    New York
    CNN
     — 

    In the future, when teenagers want to sign up for an account on Facebook or Instagram, they may first need to ask their parent or guardian to give their consent to the social media companies.

    That, at least, is the vision emerging from a growing number of states introducing — and in some cases passing — legislation intended to protect kids online.

    For years, US lawmakers have called for new safeguards to address concerns about social platforms leading younger users down harmful rabbit holes, enabling new forms of bullying and harassment and adding to what’s been described as a teen mental health crisis.

    Now, in the absence of federal legislation, states are taking action, and raising some alarms in the process. The governors of Arkansas and Utah recently signed controversial bills into law that require social media companies to conduct age verification for all state residents and to obtain consent from guardians for minors before they join a platform. Lawmakers in Connecticut and Ohio are also working to pass similar legislation.

    On the surface, providing more guardrails for teens is a step forward that some parents may welcome after years of worrying about the potential harms kids face on social media. But some users, digital rights advocates and child safety experts say the wave of new state legislation risks undermining privacy for teens and adults, puts too much burden on parents and raises serious questions about enforcement.

    Jason Kelley, associate director of digital strategy for nonprofit digital rights group Electronic Frontier Foundation, told CNN he worries about government interference where “the state is telling families how to raise their children” and said it could “trample on the rights of every resident.”

    “Requiring people to get government approval by sharing their private identification before accessing social media will harm everyone’s ability to speak out and share information, regardless of their age,” he added. “Young people should not be used as pawns to fight big tech, and we are disappointed that first Utah, and now Arkansas, are implementing such overbroad laws.”

    Parents have long worried about privacy risks from their kids using social media, but the state legislation raises a new set of privacy concerns, experts say.

    In Arkansas, for example, the law will rely on third-party companies to verify all users’ personal information, such as a driver’s license or photo ID. (The legislation in Arkansas also appeared to contain vast loopholes and exemptions benefiting companies, such as Google and presumably its subsidiary, YouTube, that lobbied on the bill.)

    The impact on privacy is even more stark for teens in some of these states. In addition to requiring parental consent, Utah’s law, for example, will give parents access to “content and interactions” on their teens’ accounts.

    Albert Fox Cahn, founder and executive director of the Surveillance Technology Oversight Project and a fellow at the NYU School of Law, said the bills are problematic because users in these states will no longer remain anonymous, which could lead to fewer people of all ages expressing themselves and seeking information online.

    He believes teens in the LGBTQ+ community will be most impacted by potentially “outing them to homophobic or transphobic parents and cutting them off from their digital community.”

    Lucy Ivey, an 18-year-old TikTok influencer who attends Utah Valley University, echoed those concerns.

    “With a new law like this, they may now be intimidated and discouraged by the legal hoops required to use social media out of fear of authority or their parents, or fear of losing their privacy at a time when teens are figuring out who they are,” Ivey told CNN when the Utah law passed.

    Devorah Heitner, author of Screenwise, Speaker: Raising Kids in the Digital Age, argued teens need to learn how to function in online communities because that is the expectation both going into college and in their professional life.

    “Keeping them off online communities until, in some cases, when they’re finishing their first year of college — but can still have jobs or drive — is backward, if they can’t even have an Instagram or a Discord account where their mom isn’t reading every message.”

    Instead, she believes teens need better digital literacy in schools with a heightened social-emotional component.

    “Literacy should not just be ‘don’t look at pornography’ or ‘stay off bad sites’ or ‘don’t cyberbully;’ that’s so limited,” she said. “It should also be understanding how algorithms work, how teens can respond or what to do when feeling excluded, or if they’re feeling insecure. We need to help kids with all these things.”

    Heitner also said the bills should focus on holding companies more accountable rather than putting the onus on parents to either keep teens off platforms or constantly feel the pressure to police or oversee their activity.

    “Not all parents are passionate, kind and supportive of their kids, and even the ones who are don’t have the capacity or time to deal with the 24/7 nature of social media,” said Heitner. “It’s an unfair burden.”

    Given that the bills are unprecedented, it’s unclear how exactly social media companies will adapt and enforce it.

    Michael Inouye, an analyst at ABI Research, said minors could “steal” identities — such as from family members who don’t use social media — to create accounts that they can access and use without oversight. VPNs could also complicate matching IP addresses to the states of the users, he said.

    Facebook-parent Meta previously told CNN it has the same goals as parents and policymakers, but the company said it also wants young people to have safe, positive experiences online and keep its platforms accessible. It did not address how it would comply with the legislation.

    In a statement provided to CNN, a TikTok spokesperson said it is “committed to providing a safe and secure platform that supports the well-being of teens, and empowers parents with the tools and controls to safely navigate the digital experience.” Representatives from Snap did not respond to a request for comment.

    But even if legislative steps from Utah, Arkansas and other states prove to be flawed, Inouye says “these early efforts are at minimum bringing attention to these issues.”

    Heitner said she is most encouraged by a small but growing number of school districts and families, and one Pennsylvania county, which have filed lawsuits against social media companies for their alleged impact on teen mental health. “These efforts are more productive than putting this on parents,” she said.

    The Arkansas legislation is expected to take effect in September and Utah’s bill aims to be implemented next year. But bills like these could “face years of litigation and injunctions before they ever take effect,” Cahn said.

    “Hopefully Congress will act before then to implement real protections for all Americans,” he said.

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  • Kevin McCarthy to make Israel first foreign trip as House speaker | CNN Politics

    Kevin McCarthy to make Israel first foreign trip as House speaker | CNN Politics

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    CNN
     — 

    US House Speaker Kevin McCarthy will visit Israel on his first trip abroad as speaker, and address its parliament, the Knesset, he announced on Tuesday.

    He’ll be only the second US speaker in history to address the Knesset, and the first one to do so this millennium, his Israeli counterpart Amir Ohana said.

    McCarthy responded to a tweet from Ohana, saying he was proud to accept the invitation.

    Ohana described McCarthy as “a steadfast supporter and longstanding friend of Israel.”

    McCarthy’s visit “is a clear expression of the strong and unbreakable bond between Israel and its closest ally, the United States of America,” Ohana said in a video announcing the visit.

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  • Ron DeSantis, facing challenges at home, will test presidential ambitions overseas | CNN Politics

    Ron DeSantis, facing challenges at home, will test presidential ambitions overseas | CNN Politics

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    CNN
     — 

    After a trying week for his national political ambitions, Gov. Ron DeSantis is headed abroad this week for a series of visits to allied nations – an opportunity for the Florida Republican to step onto the international stage for the first time as a likely presidential contender.

    The official purpose behind DeSantis’ globetrotting is for an “international trade mission,” according to his office. DeSantis, as well as first lady Casey DeSantis and two representatives from his administration, will travel to Japan, South Korea, Israel and the United Kingdom to meet with officials and chat up potential business partnerships.

    “This trade mission will give us the opportunity to strengthen economic relationships and continue to demonstrate Florida’s position as an economic leader,” the governor said in a news release Thursday.

    DeSantis met with Japanese Prime Minister Fumio Kishida on Monday in Tokyo where the two exchanged views on “regional affairs.” Kishida said he hopes DeSantis’ “visit to Japan will lead to the further strengthening of Japan-US and Japan-Florida relationship,” according to a Japanese foreign ministry statement published on Monday.

    While in Israel, DeSantis will also keynote an event hosted by The Jerusalem Post and the Museum of Tolerance Jerusalem. The appearance there comes at a time of increased tension between the US and its Middle East ally over Israeli Prime Minister Benjamin Netanyahu’s judicial overhaul proposal.

    The trip will spotlight DeSantis’ foreign policy credentials as he inches toward a White House bid. DeSantis rose to the national consciousness as a pandemic contrarian and by leading his state through a series of cultural fights, but his views on world affairs had been less scrutinized until recently, when the governor offered a series of contradicting opinions on the war in Ukraine.

    DeSantis’ remark that support for Ukraine was not of “vital” national interest set off alarm bells among hawkish Republicans in Congress before the governor backtracked in an interview with Piers Morgan and called Russian President Vladimir Putin a war criminal. He further obscured his position a few days later by dismissing the war as a fight over the “borderlands.”

    Over his nearly six years as a congressman in Washington, DeSantis, a former Navy lawyer stationed in both Guantanamo Bay and Iraq, served on the House Foreign Affairs Committee, where he was often critical of President Barack Obama’s overseas agenda. As governor, he has urged hard-line policies against communist governments in Cuba and China, most recently banning TikTok on state government devices and pushing legislation that would make it illegal for Chinese nationals to buy property in Florida.

    And even as he is scheduled to meet with allies to encourage business with his state, DeSantis on Friday poked fun at a United Nations committee resolution that criticized an anti-riot law he championed as governor.

    “I wear that criticism as a badge of honor,” he said at an event hosted by The Heritage Foundation outside Washington.

    DeSantis’ trip abroad marks the first time he has left US soil on official business since the early days of his first term as governor in 2019, when he visited Israel along with the state’s elected cabinet members. As an elected official, DeSantis has not visited a foreign country other than Israel.

    DeSantis’ predecessor, now-US Sen. Rick Scott, embarked on more than a dozen trade missions during his tenure as governor. DeSantis, though, has focused largely on issues at home while also dealing with a coronavirus outbreak that significantly restricted travel for much of his first term.

    As he now prepares for his first visits to Europe and East Asia as governor, DeSantis is leaving behind the most difficult stretch so far of the unofficial rollout of his expected presidential campaign, as well as challenges in his home state that have caused critics to raise questions about his extensive recent travel.

    Some key donors have publicly expressed reservations about DeSantis’ chances in a primary against Donald Trump, who continues to hammer his onetime ally on social media. The former president last week upstaged DeSantis’ return to Capitol Hill to seek support from within the chamber he once served in by rolling out a string of congressional endorsements – including a handful from Florida lawmakers. Eleven Florida Republicans have endorsed Trump over DeSantis so far – including seven last week.

    DeSantis has also faced scrutiny for his response this month to torrential storms – described as a 1-in-1,000-year rainfall event – that left Fort Lauderdale and surrounding communities underwater. Amid the severe flooding, DeSantis took his book tour to Ohio and spoke at a fundraiser for New Hampshire Republicans – returning to Florida in between trips for a late-night, closed-door signing of a six-week abortion ban – and said little publicly about the storms.

    “Fort Lauderdale is under water and DeSantis is campaigning in Ohio right now instead of taking care of the people suffering in his state,” Donald Trump Jr., the former president’s son, tweeted earlier this month.

    The storms also caused gasoline shortages throughout South Florida, leading the state’s US senators, both Republicans, to criticize the response, though without directly calling out DeSantis. Sen. Marco Rubio called the situation “crazy,” adding, “They gotta get this thing fixed.”

    “Florida families shouldn’t have uncertainty about their next tank of gas. Every resource available should be deployed to fix this,” Scott tweeted.

    Asked about the comments from Florida’s senators, DeSantis spokesman Bryan Griffin told CNN that “the state emergency response apparatus has been at work since the flooding occurred and continues in full swing responding to the needs of the localities as they are communicated to us. The governor issued a state of emergency the day after the flooding occurred.”

    On Saturday, DeSantis requested a major disaster declaration from the Biden administration.

    Meanwhile, in his state’s capital of Tallahassee, the Florida Legislature is nearing the end of a 60-day session where GOP lawmakers have been tasked with helping DeSantis rack up policy victories before he launches a campaign for president. He has already signed several of those bills, including the abortion ban, a measure to allow Floridians to carry concealed guns in public and an overhaul of the state’s tort laws.

    With DeSantis mostly on the road, though, several of his priorities appear to have stalled in the GOP-controlled legislature. A bill that would make it easier to sue media outlets for libel hasn’t moved in weeks. State lawmakers have also balked at a provision in DeSantis’ immigration package that would eliminate in-state tuition for undocumented residents.

    US Rep. Greg Steube, who previously served in the Florida Senate and endorsed Trump last week, accused state lawmakers on Friday of “carrying the water for an unannounced presidential campaign.”

    “Your constituents voted you into those positions to represent them, not to kowtow to the presidential ambitions of a Governor!” the GOP lawmaker tweeted. “Be strong and courageous, the people of Florida will thank you.”

    Appearing unfazed by the chatter, DeSantis on Friday rattled off his conservative victories as governor before a friendly audience at the Heritage Foundation event.

    DeSantis also looked briefly ahead to the 2024 race, laying out what was at stake in the next presidential election and suggesting the country needed a “determined and disciplined chief executive to root out politicization and corruption throughout the old executive branch” – a likely jab at the distracted and often chaotic presidency of Trump.

    “We need to reject the pessimism that is in the air about our country’s future,” DeSantis said. “Because at the end of the day, decline is a choice, success is attainable and freedom is worth fighting for.”

    This story has been updated with additional details.

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  • White House unveils an AI plan ahead of meeting with tech CEOs | CNN Business

    White House unveils an AI plan ahead of meeting with tech CEOs | CNN Business

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    CNN
     — 

    The White House on Thursday announced a series of measures to address the challenges of artificial intelligence, driven by the sudden popularity of tools such as ChatGPT and amid rising concerns about the technology’s potential risks for discrimination, misinformation and privacy.

    The US government plans to introduce policies that shape how federal agencies procure and use AI systems, the White House said. The step could significantly influence the market for AI products and control how Americans interact with AI on government websites, at security checkpoints and in other settings.

    The National Science Foundation will also spend $140 million to promote research and development in AI, the White House added. The funds will be used to create research centers that seek to apply AI to issues such as climate change, agriculture and public health, according to the administration.

    The plan comes the same day that Vice President Kamala Harris and other administration officials are expected to meet with the CEOs of Google, Microsoft, ChatGPT-creator OpenAI and Anthropic to emphasize the importance of ethical and responsible AI development. And it coincides with a UK government inquiry launched Thursday into the risks and benefits of AI.

    “Tech companies have a fundamental responsibility to make sure their products are safe and secure, and that they protect people’s rights before they’re deployed or made public,” a senior Biden administration official told reporters on a conference call.

    Officials cited a range of risks the public faces in the widespread adoption of AI tools, including the possible use of AI-created deepfakes and misinformation that could undermine the democratic process. Job losses linked to rising automation, biased algorithmic decision-making, physical dangers arising from autonomous vehicles and the threat of AI-powered malicious hackers are also on the White House’s list of concerns.

    It’s just the latest example of the federal government acknowledging concerns from the rapid development and deployment of new AI tools, and trying to find ways to address some of the risks.

    Testifying before Congress, members of the Federal Trade Commission have argued AI could “turbocharge” fraud and scams. Its chair, Lina Khan, wrote in a New York Times op-ed this week that the US government has ample existing legal authority to regulate AI by leaning on its mandate to protect consumers and competition.

    Last year, the Biden administration unveiled a proposal for an AI Bill of Rights calling for developers to respect the principles of privacy, safety and equal rights as they create new AI tools.

    Earlier this year, the Commerce Department released voluntary risk management guidelines for AI that it said could help organizations and businesses “govern, map, measure and manage” the potential dangers in each part of the development cycle. In April, the Department also said it is seeking public input on the best policies for regulating AI, including through audits and industry self-regulation.

    The US government isn’t alone in seeking to shape AI development. European officials anticipate hammering out AI legislation as soon as this year that could have major implications for AI companies around the world.

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  • Russia’s jamming of US-provided rocket systems complicates Ukraine’s war effort | CNN Politics

    Russia’s jamming of US-provided rocket systems complicates Ukraine’s war effort | CNN Politics

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    Washington
    CNN
     — 

    Russia has been thwarting US-made mobile rocket systems in Ukraine more frequently in recent months, using electronic jammers to throw off its GPS guided targeting system to cause rockets to miss their targets, multiple people briefed on the matter told CNN.

    Ukrainian military officials, with the US’ help, have had to come up with a variety of different workarounds as it continues to use the High Mobility Artillery Rocket System (HIMARS) which has been perhaps the most revered and feared piece of weaponry in Ukraine’s fight.

    The medium-range rocket systems were hailed as a game changer in the conflict and have played a key role since the moment they arrived in Ukraine last summer, including in last year’s offensive that allowed Ukraine to take back significant swaths of territory from Russia.

    But in recent months, the systems have been rendered increasingly less effective by the Russians’ intensive blocking, five US, British and Ukrainian sources tell CNN, forcing US and Ukrainian officials to find ways to tweak the HIMARS’ software to counter the evolving Russian jamming efforts.

    “It is a constant cat-and-mouse game” of finding a countermeasure to the jamming, a Pentagon official said, only to then have the Russians counteract that countermeasure. And it is not clear how sustainable that game is in the long term.

    With a major Ukrainian counteroffensive expected to start very soon and Ukraine’s reliance on HIMARS, solutions are even more of a priority so that Ukrainian troops can make significant headway.

    “It’s one thing to be able to hold the Russians off where they are right now. It’s another thing to drive them out,” retired US Army Brig. Gen. Steven Anderson told CNN. “They’re dug in, they’ve been there for a year.”

    HIMARS “have been extremely important,” he added. “They have to be able to keep those HIMARS in the game and keep using them to be able to make effective deep strikes.”

    Ukraine has received 18 American HIMARS to date and the US has committed to sending 20 more. Other NATO allies have donated 10 Multiple Launch Rocket Systems, according to the State Department.

    The routine announcements from the Biden administration of hundreds of millions of dollars of military aid for Ukraine, including one on Wednesday, regularly include HIMARS munitions, called GMLRs, as a top item, though notably the exact number is not revealed.

    The US has also helped the Ukrainians locate the Russian jammers and destroy them – a “high priority” effort, according to a secret Pentagon document that was part of a trove allegedly leaked by Airman Jack Teixeira.

    “We will continue to advocate/recommend that those jammers are disrupted/destroyed,” the document says, “to the maximum extent possible.”

    GPS jamming can affect other “smart” US munitions like the precision-guided Excalibur artillery shells fired from Howitzers and air-dropped bombs called JDAMs. The leaked Pentagon document described the JDAMS as being particularly susceptible to the disruption.

    A US official confirmed that the US has been advising the Ukrainians on how to identify and destroy Russian jammers since there are a limited number of ways to modify HIMARS and their rockets.

    A senior Pentagon official downplayed the impact of the interference, telling CNN that on Monday Ukrainian forces fired 18 rockets without issue, about the daily rate of the past few weeks. The official declined to comment on the broader impact of the jamming. HIMARS are manufactured by Lockheed Martin, which deferred questions on jamming to the US government.

    Electronic warfare is carried out by both sides, up and down the front line where there is heavy drone activity used for surveillance and in partnership with artillery targeting. The hardware can also be mounted on or around whatever might be targeted.

    Depending on the location and strength of the jamming, a rocket can still launch and result in a successful strike with significant damage. In addition to GPS guidance, the rockets have inertial navigation systems that are not susceptible and remain accurate, though not as precise as when guided by GPS coordinates.

    Widespread Russian jamming can have drawbacks for their own forces as well, impacting their ability to communicate and operate.

    But even when they do function, the HIMARS have increasingly been missing targets, said one Ukrainian source briefed by drone operators on the frontlines.

    One drone pilot on the Eastern front described the jamming of the mobile HIMARS as “significant,” according to the source, something he hadn’t seen in his area before last November, several months after the HIMARS first arrived in Ukraine at the beginning of the summer.

    Another drone operator in the southern Kherson region claimed to the source that the effectiveness of HIMARS was down dramatically while cautioning that they’re still very necessary and relied on but no longer as dominant as they once were.

    For nearly a year, the HIMARS system has been the longest-range rocket system Ukraine has, allowing troops to fire up to six rockets in quick succession at Russian positions as far as 50 miles away. With an accuracy of around 10 feet, the 200-pound warheads have taken out logistics hubs, ammunition depots, command posts and communication nodes, among other targets.

    They were also instrumental in helping Ukraine retake significant amounts of territory in the south and northeast last fall, and as of February, Ukraine had expended approximately 9,500 HIMARS rockets, according to a daily update from the time reviewed by CNN.

    A US official familiar with the workarounds said they include updates to the software on both the targeting system software as well the rockets.

    The senior Pentagon official described it as: “constant tweaking to get them to stay effective,” adding that updates had been made as recently as this week.

    “If their jamming gets more sophisticated, then your countermeasures have to get more sophisticated,” a British official agreed.

    Russia’s use of electronic warfare has not been nearly as widespread as expected when Russia first invaded but they have made use of it since the beginning of the war. It’s a routine part of modern warfare that can be cheap and easy to implement. It’s expected, so the focus is on ways to “dilute” the impact, the official said.

    But with Russian units largely stalled on the Ukrainian frontlines and stuck in defensive positions, Russian forces have made increasing use of their jamming systems to counteract the HIMARS, sources said.

    A separate but related problem for Ukraine is that the Russians have been moving some of their equipment further back and out of reach of the HIMARS systems, which have a range of about 50 miles.

    While the rocket systems are capable of firing longer-range missiles called ATACMS – which can reach targets over 185 miles away – the US has resisted providing them to Ukraine both because the missiles are in limited supply and because the US is worried Russia would see them as too provocative.

    The British official acknowledged that since HIMARS were first introduced, the requirements, the training and supplementary equipment has changed as Russia’s electronic interference has evolved.

    “Jamming is like the weather or the terrain, it’s something that happens that you have to deal with,” the official said. Still, he added, HIMARS remains a “highly useful piece of kit.”

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  • Why Montana’s TikTok ban may not work | CNN Business

    Why Montana’s TikTok ban may not work | CNN Business

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    CNN
     — 

    Montana has become the first US state to ban TikTok on all devices, even personal ones, triggering renewed doubts about the short-form video app’s future in the country.

    On Wednesday, the state’s governor, Greg Gianforte, signed a bill into law that would fine TikTok and online app stores for making the service available to state residents. It takes effect next year.

    The move goes a step beyond other states that have restricted TikTok from government devices. It also comes at a time when some federal lawmakers are pushing for a nationwide ban.

    But legal and technology experts say there are huge hurdles for Montana, or any state, to enforce such a law. The TikTok ban immediately prompted one lawsuit from TikTok users who allege it violates their First Amendment rights, with more legal challenges expected. Even if the law is allowed to stand, the practicalities of the internet may make it impossible to keep TikTok out of the hands of users.

    Montana’s new law, SB419, makes it illegal for TikTok and app marketplaces to offer the TikTok service within state lines.

    Passed in April, the bill establishes fines of $10,000 per violation per day, where a single violation is defined as “each time that a user accesses TikTok, is offered the ability to access TikTok, or is offered the ability to download TikTok.”

    Individual users themselves would not be on the hook just for accessing TikTok, according to the law.

    If the law survives in the courts, TikTok, and companies such as Apple and Google, could be forced to find ways to restrict TikTok from Montana smartphone users — or face huge penalties.

    But that’s a big if.

    TikTok and other civil society groups warn that the law as written is unconstitutional. There are two main arguments TikTok’s defenders have cited.

    One is that the law violates the First Amendment rights of Montanans, by restricting their ability to access legal speech and by infringing on their own rights to free expression through the app.

    On Thursday, the American Civil Liberties Union accused Gianforte and the state legislature of having “trampled on the free speech of hundreds of thousands of Montanans who use the app to express themselves, gather information, and run their small business in the name of anti-Chinese sentiment.”

    A group of TikTok users echoed that complaint in a lawsuit filed Wednesday evening in the US District Court for the District of Montana, hours after the governor’s signature. “Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” according to the complaint.

    Another allegation is that the law represents an unconstitutional “bill of attainder,” or a law that penalizes somebody absent due process.

    NetChoice, an industry trade group that counts TikTok as a member, said the bill “ignores the U.S. Constitution.”

    “The government may not block our ability to access constitutionally protected speech – whether it is in a newspaper, on a website or via an app,” said Carl Szabo, NetChoice’s general counsel.

    A spokesperson for Gianforte didn’t immediately respond to a request for comment.

    Even if the law survives a legal challenge, experts say its breadth could make it difficult to effectively implement and enforce.

    For one thing, app stores such as Apple’s operate on a country-by-country basis and aren’t able to filter apps at the state level, multiple experts have said.

    As a result, there would be no way for companies such as Apple and Google to practically comply with the law, TechNet, a trade organization that counts those companies as members, told Montana lawmakers at a hearing in March.

    “App stores,” a TechNet witness said at the hearing, “do not have the ability to geofence on a state-by-state basis. It would thus be impossible for our members to prevent the app from being downloaded specifically in the state of Montana.”

    The open-ended nature of the law means enormous unbounded liabilities for TikTok and app store operators.

    “What this really does is create a huge potential liability for both TikTok and the mobile app stores,” said Nicholas Garcia, policy counsel at the consumer advocacy group Public Knowledge. “And what it requires them to do is to figure it out, under threat of Montana coming in and saying, ‘You have not been complying with the law.’”

    It’s unclear how, exactly, Montana officials might determine noncompliance.

    One sure-fire way would be for Montana officials to attempt to download or access TikTok themselves on devices they control, and if they are successful, to sue TikTok or app store companies for those violations, said Alan Rozenshtein, an associate law professor at the University of Minnesota. But that would not identify violations occurring on devices used by the wider public, which is the entire point of the ban, he added.

    “That would require Montana to do surveillance of its own citizens of who’s downloading, and how,” Rozenshtein said. Alternatively, he added, Montana could try to obtain court orders compelling the companies to hand over business information — such as billing data or other non-content information related to users — that could identify them as Montana residents.

    Authorities could also try to subpoena TikTok or the app stores for information on users who have accessed or downloaded TikTok from within the state, but those requests wouldn’t capture the many people who would likely circumvent the ban using more sophisticated methods.

    Virtual private networking (VPN) services would make it trivial for users to get around the restrictions, according to Evan Greer, director of Fight for the Future, a consumer advocacy group. A VPN could make a user in Montana appear as if they are connected to the internet from outside state lines.

    “Any teenage anime fan or British TV aficionado can tell you how to circumvent such a silly ban using a VPN,” said Greer.

    Officials could potentially try to expand their dragnet by asking companies to use additional data they possess on their users to make inferences about who may be accessing TikTok. But depending on the scope of such a request, it could trigger legal objections and privacy concerns — if the additional data is even available.

    Asking internet providers to implement statewide network filters might be another way to enforce the law, said Garcia. But internet providers are not named as a type of entity subject to the TikTok ban.

    “So the only reason they would get involved would be if TikTok or Apple and Google wanted them to,” Garcia said, “and made some business case for why they should go through that effort on a contractual basis or something.”

    Still, said Rozenshtein, just because the Montana law is silent on internet providers does not preclude Montana from potentially seeking a court order forcing broadband companies to filter TikTok traffic at the network level.

    As with the dozens of other states that have imposed some level of TikTok restrictions, Montana’s government has cited the app as a potential privacy and security risk.

    US officials worry that TikTok’s links to China through its parent company, ByteDance, might result in American’s personal information leaking to the Chinese government. That could help China with spying or disinformation campaigns against the United States, according to authorities.

    So far, though, the risk appears to be hypothetical: There is no public evidence to suggest that the Chinese government has actually accessed TikTok’s US user data. And TikTok isn’t the only company that collects large amounts of data, or that might be an attractive target for Chinese espionage.

    TikTok has said it is executing on a plan to store US user data on cloud servers owned by the US tech giant Oracle, and that when the initiative is complete, access to the data will be overseen by US employees.

    More than half of US states have announced some restrictions on TikTok affecting the app on government devices. Montana’s ban marks the beginning of a new phase, however — and the widely expected legal challenges may determine whether other states soon follow suit.

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  • US senator introduces bill to create a federal agency to regulate AI | CNN Business

    US senator introduces bill to create a federal agency to regulate AI | CNN Business

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    Washington
    CNN
     — 

    Days after OpenAI CEO Sam Altman testified in front of Congress and proposed creating a new federal agency to regulate artificial intelligence, a US senator has introduced a bill to do just that.

    On Thursday, Colorado Democratic Sen. Michael Bennet unveiled an updated version of legislation he introduced last year that would establish a Federal Digital Platform Commission.

    The updated bill, which was reviewed by CNN, makes numerous changes to more explicitly cover AI products, including by amending the definition of a digital platform to include companies that offer “content primarily generated by algorithmic processes.”

    “There’s no reason that the biggest tech companies on Earth should face less regulation than Colorado’s small businesses – especially as we see technology corrode our democracy and harm our kids’ mental health with virtually no oversight,” Bennet said in a statement. “Technology is moving quicker than Congress could ever hope to keep up with. We need an expert federal agency that can stand up for the American people and ensure AI tools and digital platforms operate in the public interest.”

    The revised bill expands on the definition of an algorithmic process, clarifying that the proposed commission would have jurisdiction over the use of personal data to generate content or to make a decision — two key applications associated with generative AI, the technology behind popular tools such as OpenAI’s viral chatbot, ChatGPT.

    And for the most significant platforms — companies the bill calls “systemically important” — the bill would create requirements for algorithmic audits and public risk assessments of the harms their tools could cause.

    The bill retains existing language mandating that the commission ensure platform algorithms are “fair, transparent, and safe.” And under the bill, the commission would continue to have broad oversight authority over social media sites, search engines and other online platforms.

    But the added emphasis on AI highlights how Congress is rapidly gearing up for policymaking on a cutting-edge technology it is scrambling to understand. The debate over whether the US government should establish a separate federal agency to police AI tools may become a significant focus of those efforts following Altman’s testimony this week.

    Altman suggested in a Senate hearing on Tuesday that such an agency could restrict how AI is developed through licenses or credentialing for AI companies. Some lawmakers appeared receptive to the idea, with Louisiana Republican Sen. John Kennedy even asking Altman whether he would be open to serving as its chair.

    “I love my current job,” Altman demurred, to laughter from the audience.

    Thursday’s bill does not explicitly provide for such a licensing program, though it directs the would-be commission to design rules appropriate for overseeing the industry, according to a Bennet aide. Bennet’s office did not consult with OpenAI on either the original bill or Thursday’s revised version.

    But even as some lawmakers have embraced the concept of a specialized regulator for internet companies — which could conflict with existing cops on the beat at agencies including the Justice Department and the Federal Trade Commission — others have warned of the potential risks of creating a whole new bureaucracy.

    Gary Marcus, a New York University professor and self-described critic of AI “hype,” told lawmakers at Tuesday’s hearing that a separate agency could fall victim to “regulatory capture,” a term that describes when industries gain dominating influence over the government agencies created to hold them accountable.

    Connecticut Democratic Sen. Richard Blumenthal, a former state attorney general who has prosecuted consumer protection cases, said no agency can be effective without proper support.

    “I’ve been doing this stuff for a while,” Blumenthal said. “You can create 10 new agencies, but if you don’t give them the resources — and I’m not just talking about dollars, I’m talking about scientific expertise — [industry] will run circles around them.”

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  • Biden picks Air Force general to lead NSA and Cyber Command | CNN Politics

    Biden picks Air Force general to lead NSA and Cyber Command | CNN Politics

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    CNN
     — 

    President Joe Biden has nominated an Air Force general to head the nation’s powerful electronic spying agency and the US military command that conducts offensive cyber operations – a crucial position as the US continues to battle Russia, China and other foes in cyberspace.

    Lt. Gen. Timothy Haugh, who has served for years in senior US military cyber positions, is Biden’s choice to replace outgoing Army Gen. Paul Nakasone as head of the National Security Agency and US Cyber Command, an Air Force official confirmed to CNN.

    Politico first reported on Haugh’s nomination.

    The White House did not respond to a request for comment.

    Haugh’s nomination could face a roadblock in the Senate after Republican Sen. Tommy Tuberville of Alabama put a hold on senior military nominations because he objects to the department’s abortion travel policy.

    Haugh is currently deputy of US Cyber Command, a command of thousands of US military personnel who conduct offensive and defensive cyber operations to protect US critical infrastructure. Officials from the command traveled to Ukraine in late 2021 to prepare Kyiv for an onslaught of Russian cyberattacks that accompanied the full-scale Russian invasion.

    The command and NSA also have taken an increasingly active role in helping defend American elections from foreign interference under Nakasone’s leadership over the last five years.

    During the 2020 election, Iranian hackers accessed a US municipal website for reporting unofficial election results and Cyber Command kicked the hackers off the network out of concern that they might post fake results on the website, a senior US military official revealed last month.

    Haugh’s nomination signals a continued emphasis on election security work at Fort Meade, the sprawling military base in Maryland where the NSA and Cyber Command are housed. As a senior US military cyber official, Haugh has been involved in election security discussions in recent midterm and general elections.

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  • Supreme Court rules against Alabama fisherman who sought to block retrial based on venue | CNN Politics

    Supreme Court rules against Alabama fisherman who sought to block retrial based on venue | CNN Politics

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    CNN
     — 

    The Supreme Court unanimously ruled against an Alabama fisherman convicted of stealing valuable information related to prime fishing locations, saying that when his trial was conducted in the wrong place, the proper fix was to retry the case in the correct venue.

    The case was being watched at least in part because of questions about what might happen if federal criminal charges against former President Donald Trump were brought in what turned out to be an inappropriate forum.

    Trump has been indicted in federal court in south Florida, which is seen as a more favorable forum for the former president compared to Washington, DC, where a grand jury had been hearing evidence in the classified documents case.

    Timothy Smith is a computer scientist and avid fisherman who was convicted of theft of trade secrets for a scheme in which he hacked into a company’s computers and then posted their data on social media. The company he hacked into sold the coordinates of private fishing reefs that other people had set up for a considerable amount of money, and Smith said he was posting the information to let those fisherman know the locations of their private reefs were being sold.

    Smith tried to argue that historical precedent proved that venue was a prime concern for the framers of the Constitution because they included provisions in the Constitution itself and the Bill of Rights. As such, Smith argued that a violation of proper venue requires legal acquittal with no chance at a re-trial.

    Article III mandates that “the trial of all crimes … shall be held in the state” where a crime is committed, and the Sixth Amendment requires a “jury of the state and district wherein” the crime was committed.

    The government, conversely, said that venue is merely a procedural requirement that implicates nothing more than the right to a new trial.

    There is some concern that the court’s ruling will allow prosecutors to pick where they want to try a case without any real fear that an error in venue would let defendant go free.

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  • Malaysia to take legal action against Meta over ‘undesirable’ content | CNN Business

    Malaysia to take legal action against Meta over ‘undesirable’ content | CNN Business

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    Malaysia said Friday it would take legal action against Facebook parent company Meta for failing to remove “undesirable” posts, the strongest measure the country has taken to date over such content.

    Last year’s closely fought national election has led to a rise in ethnic tensions, and since coming to power in November, Prime Minister Anwar Ibrahim’s administration has vowed to curb what it calls provocative posts that touch on race and religion.

    Facebook

    (FB)     has recently been “plagued by” a significant volume of undesirable content relating to race, royalty, religion, defamation, impersonation, online gambling and scam advertisements, the Malaysian Communications and Multimedia Commission said in a statement.

    It also said Meta had failed to take sufficient action despite the body’s repeated requests and that legal action was necessary to promote accountability for cybersecurity and protect consumers.

    Meta did not immediately respond to a request for comment. The commission also did not immediately respond to a request for comment on what legal action might be taken.

    Race and religion are thorny issues in Malaysia, which has a majority of Muslim ethnic Malays alongside significant ethnic Chinese and ethnic Indian minorities.

    Commentary on the country’s revered royals is also a sensitive issue, and negative remarks toward them can be tried under sedition laws.

    The action against Facebook comes just weeks ahead of regional elections in six states that are expected to pit Anwar’s multi-ethnic coalition against a conservative Malay Muslim alliance.

    Facebook is Malaysia’s biggest social media platform, with an estimated 60% of its population of 33 million having a registered account.

    Globally, big social media firms that include Meta, Google’s

    (GOOGL)     YouTube, and TikTok are often under regulatory scrutiny over content posted on their platforms.

    Some Southeast Asian governments have frequently requested that content be taken down.

    In 2020, Vietnam threatened to shut down Facebook in the country if it did not bow to government pressure to censor more local political content on its platform. The authorities said last year that social media platforms operating in Vietnam removed more than 3,200 posts and videos in the first quarter that contained false information and violated the country’s law.

    In Indonesia in 2019, Facebook took down hundreds of local accounts, pages and groups linked to a fake news syndicate.

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  • Putin’s ruthless power play may not preclude a revival of Ukraine grain deal | CNN Politics

    Putin’s ruthless power play may not preclude a revival of Ukraine grain deal | CNN Politics

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    CNN
     — 

    Russian President Vladimir Putin just reminded the world that he has the capacity to apply pain far beyond the excruciating torment he’s inflicting on Ukraine.

    Russia’s suspension of a deal allowing the export of Ukrainian grain from a region fabled as the world’s bread basket threatens to cause severe food shortages in Africa and send prices spiraling in supermarkets in the developed world. In the United States, it represents a political risk for President Joe Biden, who is embarking on a reelection campaign and can hardly afford a rebound of the high inflation that hounded US consumers at its peak last year.

    Russia’s decision looked at first sight like a face-saving reprisal for an attack claimed by Ukraine on a bridge linking the annexed Crimean peninsula to the Russian mainland. The bridge was a vanity project for Putin and the apparent assault represented another humiliation for the Russian leader in a war that has gone badly wrong.

    The Black Sea grain deal, agreed last year and brokered by Turkey and the United Nations, was a rare diplomatic ray of light during a war that has shattered Russia’s relations with the US and its allies and has had global reverberations.

    By refusing to renew it, Putin appears again to be seeking to impose a cost on the West, in return for the sanctions strangling the Russian economy. He may reason that a food inflation crisis might help splinter political support in NATO nations for the prolonged and expensive effort to save Ukraine. And grain shortages afflicting innocent people in the developing world could exacerbate international pressure for a negotiated end to a war that has turned into a disaster for Russia.

    The United States and other Western powers reacted to Russia’s announcement that the deal had been “terminated” with outrage, mirroring Ukrainian President Volodymyr Zelensky’s warning that Putin was trying to “weaponize hunger.”

    Secretary of State Antony Blinken warned that Russia was trying to use food as a tool in its war on Ukraine, adding that the tactic would make “food harder to come by in places that desperately need it and have prices rise … The bottom line is, it’s unconscionable. It should not happen.”

    Singling Russia out as a moral transgressor might be understandable given the horror it has visited on Ukraine and may rally fury over Putin’s move in the West and the developing world. But humanitarian arguments won’t sway a Russian president who launched an unprovoked onslaught on a sovereign neighbor and is accused of presiding over brutal war crimes.

    Still, Russia’s rhetoric after canceling the deal and the reactions from key players elsewhere in Eurasia suggest that the agreement may not be quite as terminated as the Kremlin claims. There’s a chance Putin sees a grain showdown as a way to improve his dire position.

    In a clear sign of diplomatic maneuvering, Russia justified its cancellation of the agreement by saying that it was not getting its share of the benefits. noting that it had faced obstacles with its own food exports. Kremlin spokesman Dmitry Peskov hinted, however, that Moscow might allow the return of exports from Ukraine’s Black Sea ports once its objectives were achieved.

    But UN Secretary General António Guterres underscored how difficult it might be to return to the deal with a categorical repudiation of Russia’s points in a letter to Putin, arguing that under the agreement, the Russian grain trade had reached high export volumes and fertilizer markets were nearing full recovery with the return of Russian produce. Guterres said that he’d sent Russia proposals to keep the grain deal alive but that he was “deeply disappointed” that his efforts went unheeded.

    The UN chief’s comments reinforced a view that, for now, Russia sees a point of leverage in refusing to renew the Black Sea grain deal. The decision comes against a complicated geopolitical backdrop following last week’s NATO summit at which G7, nations pledged to offer Ukraine the means of its self-defense for years to come.

    It may also represent the latest chess move in a shady double game of great power geopolitics being waged by a pair of Machiavellian autocrats — Putin and Turkish President Recep Tayyip Erdogan, who are due to meet in August.

    Erdogan won prestige and the gratitude of his fellow NATO leaders and developing nations for brokering the original grain deal. But he has angered Russia in recent days, despite keeping open channels with Putin during the war. It’s conceivable the Russian leader could be sending a shot across the bows of his Turkish partner by canceling out his achievement.

    Russia was infuriated last week when Turkey sent a group of captured Ukrainian military commanders back to Zelensky despite a previous agreement they would not go home until after the war. Erdogan also risked his relationship with Putin by dropping opposition to Sweden’s entry into NATO, a move that significantly weakened Russia’s strategic position in Europe.

    But it was noticeable that Erdogan, who has a reputation for cannily playing his cards to enhance his own and Turkey’s influence, referred to Putin as his “friend” on Monday and suggested that the Russian leader might want to keep the “humanitarian bridge” of grain exports open.

    If he could somehow engineer a return to the deal, Erdogan could again bolster his place at the hinge of Eurasian great power politics. He’d also boost his goal of emerging as a leader among developing world nations and do a favor for Western leaders fearing an inflationary spike.

    Michael Kimmage, who served on the policy planning staff at the State Department between 2014 and 2016 and is now a professor at Catholic University of America in Washington, argues that Turkey is in a unique position, since it possesses considerable leverage inside NATO but also has robust relationships with both Ukraine and Russia.

    “I think it’s very possible that even before the Putin-Erdogan meeting there could be a resumption of the grain deal because that keeps Russia to a degree in the good graces of the international community,” Kimmage said.

    Reviving the grain deal would show that Russia, in its isolation, retains some Turkish support, Kimmage added, but the episode also demonstrates to the rest of the world that “when Russia wants, it can turn off the grain deal and be an enormous pain in the neck in the Black Sea.”

    First video of damage to Crimean bridge surfaces after reported strike

    While the war in Ukraine has consumed Russia’s foreign policy, Moscow has also made intense efforts to carve out its own influence in Africa and elsewhere in opposition to the United States. So it may risk damaging its own priorities by triggering widespread food shortages, especially since much of Ukraine’s grain is used in World Food Programs to alleviate famine in Africa.

    While the White House is fueling a sense of moral outrage over Russia’s move, it quickly dismissed another potential response – an attempt to bust a Russian blockade in the Black Sea.

    “That’s not an option that’s being actively pursued,” John Kirby, the coordinator for strategic communications at the National Security Council, said Monday in a comment that was in line with Biden’s goal of avoiding any direct NATO clash with Russia, a nuclear superpower.

    While the end of the grain deal would cause significant global hardship, its worst effects may be weeks away – so there could be time for diplomacy to work.

    Nicolay Gorbachov, the President of the Ukrainian Grain Association, told Isa Soares on CNN International on Monday that exports by road, rail and river could mitigate the most damaging effects of the collapse of the deal for two or three weeks, even if such transportation methods lacked the volume of shipborne cargoes.

    But he also warned that ultimately, if Ukraine could not export its grain – “all of us, in developed countries, in developing countries, will face food inflation.”

    “In my opinion, the international community, the developed countries have to find the leverage to move grain from Ukraine to the world market,” he said.

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  • TSMC says skilled worker shortage delays start of Arizona chip production | CNN Business

    TSMC says skilled worker shortage delays start of Arizona chip production | CNN Business

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    Shares of Taiwan Semiconductor Manufacturing Co slumped more than 3% Friday after the world’s largest contract chipmaker flagged a 10% drop in 2023 sales and said production due to start next year at its first plant in Arizona would be delayed.

    On Thursday, TSMC

    (TSM)     reported a 23% fall in second-quarter net profit — its first year–on-year drop in quarterly profit since 2019 — as global economic woes take a toll on demand for chips used in everything from cars to cellphones.

    “While the company’s declining revenue and profit were disappointing, its long-term growth prospects remain encouraging,” said Brady Wang, associate director at Counterpoint Research. “Despite facing macroeconomic headwinds, TSMC’s long-term outlook remains robust, supported by mega trends like 5G and high-performance computing.”

    As TSMC steps up its global expansion, the company said production at its first plant in Arizona will be delayed until 2025 due to a shortage of specialist workers.

    “While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025,” TSMC chairman Mark Liu said Thursday.

    TSMC’s total investment in the US project amounts to $40 billion.

    The company said its position as the largest manufacturer of artificial intelligence chips and high demand for AI have not offset broader end-market weakness as the global economy recovers more slowly than it had expected.

    “The short-term frenzy about the AI demand definitely cannot extrapolate for the long term. Neither can we predict the near future — meaning next year — how the sudden demand will continue or flatten out,” Liu said.

    Still, the company’s earnings of 181.8 billion Taiwan dollars ($5.85 billion) for the quarter ending in June beat forecasts.

    “We see TSMC well-positioned for a strong growth outlook in 2024,” Goldman Sachs said in a research note. “We believe the US expansion delay is also well-expected by investors.”

    Other analysts, too, were upbeat on TSMC, thanks in part to strong demand for AI, which currently accounts for around 6% of the company’s revenue.

    “We expect a solid 2024-onward outlook on the back of its leading position in AI chip manufacturing,” Citi Research analysts said in a note.

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