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Home Office secretly backs facial recognition technology to curb shoplifting 2023-07-29 - Home Office officials have drawn up secret plans to lobby the independent privacy regulator in an attempt to push the rollout of controversial facial recognition technology into high street shops and supermarkets, internal government minutes seen by the Observer reveal. The covert strategy was agreed during a closed-door meeting on 8 March between policing minister Chris Philp, senior Home Office officials and the private firm Facewatch, whose facial recognition cameras have provoked fierce opposition after being installed in shops. In a development that ignores critics who claim the technology breaches human rights and is biased, particularly against darker-skinned people, minutes of the meeting appear to show Home Office officials agreeing to write to the Information Commissioner’s Office (ICO) advocating the merits of facial recognition technology in tackling “retail crime”. Mark Johnson, advocacy manager of the campaign group Big Brother Watch, said: “The Home Office must urgently answer questions about this meeting, which appears to have led officials to lean on the ICO in order to favour a firm that sells highly invasive facial recognition technology. “Government ministers should strive to protect human rights, not cosy up to private companies whose products pose serious threats to civil liberties in the UK.” The minutes of the previously undisclosed meeting reveal that Philp – appointed policing minister by Rishi Sunak last October – and Simon Gordon, the founder of Facewatch, discussed “retail crime and the benefits of privately owned facial recognition technology”. A monitor shows the video feeds of security cameras in a supermarket. Photograph: Richard Levine/Alamy Later, as part of an action plan agreed during the meeting, it is noted: “Officials to draft a letter to ICO setting out the effects of retail crime.” In addition, Philp would “consider a speech to bring the benefits of FR [facial recognition] to the fore”. It remains unclear precisely what contact followed between the Home Office and the privacy regulator regarding Facewatch. However, the minutes do suggest that Philp is aware that any attempt to apply pressure on the independent regulator might be ineffective. “CP [Chris Philp] reiterated that the ICO are independent and he can’t attempt to change their rulings or opinion,” state the minutes, obtained by Big Brother Watch through a freedom of information (FoI) request. Facial recognition technology has provoked widespread criticism and scrutiny, with the European Union moving to ban the technology in public spaces through its upcoming artificial intelligence act. However the UK’s data protection and information bill proposes to abolish the role of the government-appointed surveillance camera commissioner along with the requirement for a surveillance camera code of practice. “The UK should seek to emulate the European artificial intelligence act, which would place a ban on the use of facial recognition for surveillance purposes in all public spaces,” added Johnson. skip past newsletter promotion Sign up to TechScape Free weekly newsletter Alex Hern's weekly dive in to how technology is shaping our lives Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Advocates of biometric surveillance technology installed on retailers’ premises point to the escalating issue of retail crime, with UK shop thefts more than doubling in the past six years, reaching 8m in 2022. Last week the Co-op warned that some communities could become “no-go” areas for shops due to surging levels of retail crime. However, the use of Facewatch to tackle the issue is deeply contentious. In April, Sports Direct’s parent company defended its decision to use Facewatch cameras – which check faces against a watch list – in its shops. Mike Ashley’s Frasers Group said the cameras had cut crime, after 50 MPs and peers backed a letter opposing its use of live facial recognition technology. Gordon, who founded Facewatch in 2010, said: “We provide each individual business with a service that will reduce crime in their stores and make their staff safer. “Every store has 10 to 20 people who just constantly steal from that store. And the store knows who they are. They’ve been preventing theft for years – this isn’t a new thing. All this is doing is using new technology to stop it. One of our big retailers using it has a 25% [crime] reduction compared to stores not using Facewatch,” he added. Facial recognition software has been used by South Wales police and London’s Metropolitan police during events like the Notting Hill Carnival and, more recently, during the coronation. In 2020, appeal court judges ruled that previous trials by South Wales police of the technology were unlawful and unethical, although the force continues to use the technology. Last month, the Met revealed the results of its review into the technology’s effectiveness and claimed “no statistically significant bias in relation to race and gender, and the chance of a false match is just 1 in 6,000 people who pass the camera”. Asked about the ministerial support for Facewatch, a Home Office spokesperson said: “Shops are at the heart of our communities, and it is important that businesses are free to trade without fear of crime or disorder. “That is why we continue to work closely with retail businesses, security representatives, trade associations and policing to ensure our response to retail crime is as robust as it can be. “New technologies like facial recognition can help businesses protect their customers, staff and stock by actively managing shoplifting and crime.”

BlackRock Vows To Democratize Crypto Opportunities 2023-07-28 - BlackRock Inc. Co-Founder and CEO Larry Fink wants to "democratize" Bitcoin through a spot trading Bitcoin exchange-traded fund (ETF) Fink filed an application for the spot Bitcoin ETF on June 15 with the Securities and Exchange Commission (SEC). The application was rejected due to concerns regarding market manipulation. "We believe we have a responsibility to democratize investing. We've done a great job, and the role of ETFs in the world is transforming investing. And we're only at the beginning of that," Fink said regarding the ETF filing. BlackRock's spot Bitcoin ETF application seemed to ignite a surge in cryptocurrencies and prompted numerous similar filings from other asset managers. The initial filing for the iShares Bitcoin Trust did not specify a management fee. The crypto industry perceived BlackRock's participation and the proposed surveillance-sharing agreement in the filing as indicative of a changing momentum, even though the SEC turned down numerous similar fund applications. BlackRock is the world's largest asset management company with more than $9 trillion worth of assets under management. Since BlackRock's filing, the value of Bitcoin, the world's largest cryptocurrency by market cap, has surged by more than 20%. "We are working with our regulators because, as in any new market, if BlackRock's name is going to be on it, we're going to make sure that it's safe and sound and protected," Fink said. BlackRock's action has served as an inspiration for other financial institutions, such as Fidelity Investments, Invesco Ltd. and WisdomTree Inc., prompting them to resubmit their own applications for similar ETFs. Don’t Miss: Until 2016 it was illegal for retail investors to invest in high-growth startups. Thanks to changes in federal law, this Kevin O’Leary-Backed Startup Lets You Become a Venture Capitalist With $100 Billionaires are making their money in the private markets, and This Startup Is Revolutionizing Healthcare Investment so anyone can get involved Story continues Fink's History With Bitcoin In 2017, Fink criticized cryptocurrencies, attributing their popularity primarily to money laundering. He earlier referred to Bitcoin as an "index of money laundering." But because of increased interest from clients and the substantial transaction costs, BlackRock became motivated to explore potential involvement in the crypto space. Fink acknowledged that cryptocurrencies could play a role in diversifying investor portfolios. Democratizing new traditionally exclusive areas to invest in is becoming increasingly popular in recent years. For example, platforms like StartEngine and Wefunder allow anyone to invest in startups like gaming marketplace startup Gameflip, StartEngine itself, and hundreds of other private companies. "It has a differentiating value versus other asset classes, but more importantly, because it's so international it's going to transcend any one currency," Fink said. He also called Bitcoin the new "digital gold" and "an international asset." "It's [Bitcoin] not based on any one currency, and so it can represent an asset that people can play as an alternative," Fink said in a Fox Business interview. After Fink's interview, numerous cryptocurrency users on social media responded with enthusiasm, with one person suggesting that his statements might trigger a significant surge in the value of specific assets — a phenomenon dubbed the "Fink Pump." The billionaire also believes that Bitcoin can serve as a hedge against inflation and mitigate losses arising from unfavorable currency exchange rate movements. In the current economic climate, with most countries struggling to deal with tremendously high inflation rates, Bitcoin's potential as an inflation hedge is massive. The world's largest crypto token is already one of the best-performing assets year to date, having risen by over 76% so far this year. To stay updated with top startup news & investments, sign up for Benzinga's Startup Investing & Equity Crowdfunding Newsletter. ETF Rejection And Future Prospects An initial rejection from the SEC did not deter FInk's intent to "democratize Bitcoin" through the first-of-its-kind spot cryptocurrency ETF. BlackRock refiled its application for the alternative asset ETF after signing a surveillance-sharing agreement with Coinbase. BlackRock partnered with Coinbase, which is the largest cryptocurrency exchange in the U.S. in terms of trading volume, to ensure the SEC's concerns regarding money laundering are addressed — despite Coinbase's ongoing lawsuit with the federal regulatory authority. According to its Nasdaq Stock Exchange filing, Coinbase is vital in the U.S. Bitcoin market, accounting for approximately 56% of U.S. dollar Bitcoin trading. "The Spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between Nasdaq and Coinbase that is intended to supplement the exchange's market surveillance program," BlackRock stated in its latest filing. Will Fink Be Successful? SEC Chair Gary Gensler seems to be on a self-proclaimed warpath against the cryptocurrency industry, suing Coinbase and Binance — two of the largest crypto exchanges in the U.S. — last month. Gensler stated in a CNBC interview that "we don't need more digital currency." While industry experts believe Fink is the only person influential and resourceful enough to go toe-to-toe with the SEC chair, the initial rejection of the spot Bitcoin ETF seems to be a major roadblock to BlackRock's plans. Many members of Congress disagree with Gensler's radical point of view, leading to them filing a "crypto stabilization bill" that could lead the U.S. to adopt a more tolerant attitude toward the cryptocurrency sector. See more on startup investing from Benzinga: Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better. This article BlackRock Vows To Democratize Crypto Opportunities originally appeared on Benzinga.com . © 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Alaska has boosted its Nvidia bet 50-fold in recent years, giving it a $142 million stake in June 2023-07-28 - A dog race in Alaska. REUTERS/Mark Meyer Alaska has ramped up its bet on Nvidia by more than 50-fold since early 2017. The state's revenue department commanded a $142 million stake in the chipmaker at the end of June. Alaska's position peaked at 466,000 shares in 2020, a stake worth $212 million today. Alaska has boosted its Nvidia wager by more than 50 times within the past seven years, giving it a stake worth $142 million at the end of June, a Markets Insider analysis shows. The state's revenue department first reported a position in the microchip maker in the first quarter of 2017, Securities and Exchange Commission filings show. Adjusted for Nvidia's 4-for-1 stock split in July 2021, it owned fewer than 7,000 shares at the time, worth less than $200,000. The agency ramped up its bet to a split-adjusted 281,000 shares, worth $16 million, by early 2018. The position peaked in size at the equivalent of 466,000 shares in the second quarter of 2020 — a $44 million stake then that would be worth $212 million today. Alaskan officials have gradually pared the holding since then, to 337,000 shares worth $142 million at the end of June. But the state still counted the semiconductor giant's stock among its largest positions last quarter, which included $400 million-plus stakes in Apple and Microsoft. The state agency also invested in Tesla as early as the first quarter of 2017, SEC filings show. It commanded a $380 million stake in Elon Musk's electric-vehicle company as of June 30. Nvidia, Tesla, Microsoft, and other Big Tech stocks have surged in value this year, as investors wager the companies' artificial-intelligence efforts will supercharge their profits. In particular, Nvidia shares have more than tripled in value within the past seven months, and now trade at record highs. Growth stocks have received a boost from improved market sentiment too. Investors have cheered a drop in inflation from a 40-year high of 9.1% to 3% over the last 12 months. Many are now hoping the Federal Reserve will stop hiking interest rates, and the US economy will escape a recession. The total value of Alaska's stock portfolio declined slightly to just below $4.4 billion last quarter. The state relies on oil taxes and royalties, federal funding, and investments to finance its spending, as it doesn't tax personal incomes or sales. Read the original article on Business Insider

T-Mobile CEO on Q2 earnings: 'We can set goals, beat them, and then raise them' 2023-07-28 - T-Mobile (TMUS) CEO Mike Sievert thinks his telecom giant could dial up more guidance lifts in the quarters ahead as it wrestles market share away from Verizon (VZ) and AT&T (T). "Over two-and-a-half years ago at our analyst day, we laid out a strategy for this company that showcases that not only would we build the best network, we would have the resources to defend the best value, and we were going to go after massive under-penetrated segments where there's lots of opportunity for T-Mobile," Sievert told Yahoo Finance on Thursday moments after another earnings beat and guidance hike. "This is a differentiated strategy, and what we have been delivering ever since then is remarkably consistent execution against that strategy," Sievert added. "And that's why we can set goals, beat them, and then raise them." T-Mobile CEO Mike Sievert outlines how the Un-carrier will extend its industry leadership during T-Mobile's first-ever Analyst Day on Thursday, March 11, 2021, in Bellevue, Wash. (Stephen Brashear/AP Images for T-Mobile) The company also stood up "record" low churn in the second quarter, or a low number of subscribers leaving the network for whatever reason. Sievert added his team will continue to be aggressive in buying back stock given the performance of the business. The company's $14 billion buyback plan concludes in September — and a new plan is expected due to the cash flow the business is throwing off, suggested Sievert. "There is more opportunity in front of us," Sievert added. Still, T-Mobile stock fell 2% in after-hours trading as the company's sales fell slightly short of consensus. Here's how T-Mobile's quarter stacked up. The earnings rundown Net sales: -2% year over year to $19.2 billion vs. estimate of $19.38 billion Adjusted EPS: $1.86 ($0.09 loss a year ago) vs. estimate of $1.72 Postpaid net additions: 1.6 million vs. 1.43 million estimated Postpaid churn: 0.77% vs. 0.81% estimated What else caught our attention: Full-year forward guidance Postpaid net customer additions are expected to be between 5.6 million and 5.9 million. Prior guidance was for an increase of 5.3 million to 5.7 million. Adjusted operating profits are seen in the range of $28.9 billion to $29.2 billion. Prior guidance was for a range of $28.8 billion to $29.2 billion. Story continues What analysts were saying pre-earnings "TMUS remains our top pick in the wireless space given the company’s strong operating performance, attractive market positioning (best brand, lower pricing, at least as good a network), and continued synergy benefits as TMUS wraps the Sprint integration, and we find the underlying FCF/share growth story very compelling." — Vijay Jayant, Evercore ISI Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com. For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here Read the latest financial and business news from Yahoo Finance

Vanguard expects Fed 'hawkish hold,' recession still on the horizon 2023-07-28 - FILE PHOTO: The logo for Vanguard is displayed on a screen on the floor of the NYSE in New York By Davide Barbuscia NEW YORK (Reuters) - Vanguard, the world's second-largest asset manager, expects the Federal Reserve to maintain a hawkish stance by either keeping interest rates elevated for longer than what the market is pricing or by tightening monetary conditions even further. Global Head of Fixed Income Group Sara Devereux said on Thursday the probability of another interest rate increase by the Fed this year stood at 50%. Beyond that, the U.S. central bank was likely to maintain a "hawkish hold" on rates. "The economy has shown more resilience than we expected, despite the bank stresses, despite the debt ceiling volatility," she said in a webinar. "We don't think they're going to cut rates anytime soon ... the Fed may have more work to do." Fed funds futures traders on Thursday were pricing for rate cuts in the first half of 2024 after the Fed raised interest rates by 25 basis points on Wednesday and left open the possibility of further hikes this year depending on incoming data on the labor market and inflation. Fed Chair Jerome Powell said the central bank's staff expected a noticeable slowdown in economic growth later this year but no longer forecast a recession in 2023, as inflation could come down to target without high levels of job losses. Vanguard, which manages $8 trillion in assets, said its base case scenario remained for a shallow recession in 2024 as higher interest rates hit the economy. Devereux said there were risks to the upside, with the economy showing even more resilience than expected, which could lead the Fed to resume hiking rates. Higher rates, on the other hand, could exacerbate the anticipated economic slowdown, and even threaten financial stability, she said. "The downside risk ... is the Fed overshoots and they drive us into a deeper recession." Devereux said she had an "up-in-quality tilt" for bonds expected to rally in case of a recession such as Treasuries, municipal bonds and agency mortgage-backed securities. "Then when we go down into corporate credit we're going to recommend a more selective approach ... you want to make sure you're picking the right names to weather the storm," she said. (Reporting by Davide Barbuscia in New York; Editing by Matthew Lewis)

Standard Chartered first-half profit beats estimates, sets new $1 billion share buyback 2023-07-28 - A sign above the entrance to the headquarters of Standard Chartered Plc in London, U.K., on Monday, Feb. 14, 2022. Standard Chartered reported on Friday first-half pretax profit rose 20% and announced a new $1 billion share buyback, as rising rates and record financial markets business propelled margins at the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said statutory pretax profit for the first six months of this year reached $3.32 billion. That compared with $2.77 billion a year earlier and the $3.18 billion average of 16 analyst estimates compiled by the bank. The bank upgraded its guidance for income growth in 2023 to a 12%-14% range from 10% previously. "We are mindful of the external macroeconomic headwinds and recent challenges in the banking sector; however, our balance sheet is robust, and we have the right strategy, business model and ambition to deliver our targets," CEO Bill Winters said in a statement. The bank said income growth outpaced increases in costs, despite inflation pushing up the latter, driving a 3 percentage point improvement to its cost-income ratio to 61% for the first half. London-headquartered StanChart's transaction banking income shot up by 92% to $2.86 billion, with cash management income up 166%, benefiting from a favorable interest rate environment. Its financial markets business delivered a record $2.8 billion in income in the first half, a 4% increase from an already strong period a year ago on the back of energy price swings.

China's housing ministry is getting 'bolder' about real estate support 2023-07-28 - BEIJING — China's housing ministry has announced plans to make it easier for people to buy property. The news, out late Thursday, indicates how different levels of government are starting to act just days after Beijing signaled a shift away from its crackdown on real estate speculation. The planned measures include easing purchase restrictions for people wanting to buy a second house, and reducing down payment ratios for first-time homebuyers, according to an article on the Ministry of Housing and Urban-Rural Development's website. In an effort to reduce speculation in its massive property market, China has made it much harder for people to buy a second house. Mortgage rates for the second purchase can be a full percentage point higher than for the first, while the second-home down payment ratio can skyrocket to 70% or 80% in large cities, according to Natixis.

Fairview, Sanford Health cancel merger 2023-07-28 - MINNEAPOLIS -- A controversial hospital merger involving one of the largest healthcare providers in the Upper Midwest will not be happening. Fairview Health Services announced Thursday that it will not continue the merger process with South Dakota-based Sanford Health. The merger, which was set to wrap up in March, had been delayed multiple times after Minnesota Attorney General Keith Ellison and the University of Minnesota, a partner of Fairview, asked for more time to review its potential magnitude. Fairview President and CEO James Hereford says they determined it in their best interest to discontinue the merger process due to a lack of support from "certain stakeholders." "While this may not have been the outcome we desired, we remain committed to our people and to continue advancing the important work we do every day in caring for those in need," Hereford said. A spokesperson for Sanford Health told WCCO that it initiated the decision to discontinue the merger process. Bill Gassen, President and CEO of Sanford Health released a statement on the canceled merger, saying in part, "This is the right decision for our patients and residents, our people and the communities we serve. We remain committed to providing world-class care to patients across our footprint. We are extremely grateful for the support we have received from many Minnesotans who share our vision to invest in health care delivery and enhance access to care in both rural and urban areas." The two healthcare providers had crafted a similar deal 10 years ago, but that plan was ultimately blocked by legislators.

French luxury group Kering to buy 30% stake in Valentino for 1.7 billion euros cash 2023-07-28 - MILAN (AP) — French luxury conglomerate Kering has reached a cash deal to purchase a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm. With the purchase, Kering is seeking to shore up its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported first-half revenues of 10.1 billion euros, up 2%, as Gucci sales stagnate. Under the deal announced Thursday, Kering has the option to buy 100% of Valentino no later than 2028. The partnership could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering, as well as other potential “joint opportunities,” the statement said. Kering Chairman and CEO Francois-Henri Pinault expressed admiration for “the evolution of Valentino under Mayhoola ownership,” which Kering said turned Valentino “into one of the most admired luxury houses in the world.” “I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation,’’ citing the role of Valentino CEO Jacopo Venturini, who “will continue to lead.” Gucci, which accounts for nearly half of Kering revenues, is in the throes of a relaunch, with a new management team and a new creative director, Sabato De Sarn o, who will unveil his first collection during Milan Fashion Week in September. Valentino, founded by Valentino Garavani in 1960, recorded revenues of 1.4 billion euros in 2022. Pierpaolo Piccoli has been creative director at Valentino since 2008, working alongside Maria Grazia Chiuri from 2008-16. With its corporate base in Milan and design studio in Rome, the fashion house is a mainstay of Paris fashion week with its womenswear and couture collections while recently returning menswear to Milan.

Hong Kong’s leader may be barred from a key economic summit. The city says that breaks conventions 2023-07-28 - HONG KONG (AP) — Hong Kong government on Friday called on the United States to invite its city leader to the Asia-Pacific Economic Cooperation meeting, after reports that Washington would bar the top official from the major economic summit — a move likely to intensify China-U.S. tensions. On Thursday, the Washington Post quoted anonymous U.S. officials to report the White House’s decision to bar Hong Kong Chief Executive John Lee from attending the economic leaders’ meeting in November. The reported move could undermine ongoing efforts to restore dialogue between Washington and Beijing after their relations have sunk to a historic low. Lee is one of the Hong Kong officials sanctioned by the U.S. in 2020 after the enactment of a Beijing-imposed national security law. The tough law has prosecuted and silenced many of leading pro-democracy activists in the city following the massive 2019 pro-democracy protests. Growing numbers of young professionals have responded to the erosion of Hong Kong’s Western-style civil liberties by leaving the city. In response to inquires about the report, the Chief Executive’s Office in Hong Kong said the U.S. is “obliged to fulfil its basic responsibilities as a host” of the meeting in San Francisco and should follow the usual practice of APEC meetings to extend the invitation. “APEC meetings do not belong to any country or economy, and APEC has its rules and conventions,” the office wrote in a statement. Hong Kong is a former British colony that returned to Chinese rule in 1997 under the promise that it could retain its Western-style civil liberties for 50 years after the handover. But critics said a crackdown — overseen by Lee — on Hong Kong’s pro-democracy movement has caused the city to become increasingly like mainland China, where many freedoms are restricted. Lee was a hard-line security chief before taking over the city’s top job last year. He was the sole candidate in Hong Kong’s chief executive election in 2022 and won over 99% of the vote from a committee stacked with mostly pro-Beijing members. Before he was promoted as a security official in the administration in 2012, he spent decades in the police force. The Washington Post reported that the city could send another senior representative to attend the APEC meeting instead. But the Chinese Embassy in Washington already expressed its strong opposition over the decision by the U.S. administration, it added. Washington has launched a flurry of diplomatic missions to restore dialogue suspended by Beijing, mainly over U.S. support for the self-governing island democracy of Taiwan that China claims as its own territory. In recent weeks, multiple U.S. officials have traveled to China for meetings, including Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, and President Joe Biden’s top climate envoy, John Kerry. During a July 20 meeting with former top U.S. diplomat Henry Kissinger, Chinese leader Xi Jinping said relations between the two countries are at a crossroads and both sides need to make new decisions that could result in stable ties and joint success and prosperity.

Aid group official warns that impasse at the UN on border crossing puts 4.1 million Syrians at risk 2023-07-28 - BEIRUT (AP) — An impasse at the United Nations over a border crossing with Syria’s last rebel-held enclave is putting 4.1 million Syrian there in danger, the president of the International Rescue Committee warned this week. David Miliband’s comments came more than two weeks after the U.N. Security Council failed to renew the mandate for the Bab al-Hawa border crossing between Syria and Turkey, which secures aid for Syrians in the enclave. The vast majority of people in northwestern Syria live in poverty and rely on aid to survive — a crisis that was further worsened by a devastating magnitude 7.8 earthquake that hit southern Turkey and northern Syria in February. The earthquake killed more than 50,000 people, including over 6,000 in Syria, according to the United Nations. The quake also displaced hundreds of thousands of others. “The people of northwest Syria can ill afford a new wave of suffering, having lived through the trauma of the earthquake,” Miliband told The Associated Press in an interview on Tuesday. He urged the Security Council to “do its job” and resume the humanitarian border crossing. The council earlier in July failed to adopt one of two rival resolutions on the crossing. Russia, a top ally of the Syrian government in Damascus, vetoed a Swiss-Brazilian compromise resolution backed by Western countries that renewed authorization for the crossing of aid through Bab al-Hawa for six months. Moscow’s draft resolution with additional requirements — including increasing aid delivery to the opposition enclave through Damascus — only received China’s backing. The paralysis also comes as donor fatigue has led to aid cuts in aid to both northwestern Syria and neighboring countries hosting millions of Syrian refugees who fled the ongoing conflict, now in its 13th year. Syrian President Bashar Assad opened two additional crossing points from Turkey at Bab al-Salameh and al-Rai to increase the aid flow to the quake victims. The U.N. says that some 85% of its aid to northwestern Syria goes through Bab al-Hawa, a more efficient route. For the moment, Miliband said the International Rescue Committee is trying to cope by using other crossings and finding other ways of getting aid into the enclave. “Our point of view is that interference with the humanitarian crossing point poses severe danger to the efficiency and the effectiveness of humanitarian aid,” he explained. Additionally, the United States said Monday that it has joined major donors in demanding the U.N. be able to deliver aid through Bab al-Hawa independently and to everyone in need — a rejection of conditions set by Syria and backed by its ally Russia that Damascus control all aid and banning U.N. communications with rebels in the region. The Security Council initially authorized aid deliveries in 2014 from Turkey, Iraq and Jordan through four border crossing points into rebel-held areas in Syria. However, Russia, backed by China, over the years successfully applied pressure to reduce the authorized crossings to just Bab al-Hawa, and the mandates from a year to six months. Moscow alleges that militant groups in the northwestern province of Idlib are taking the aid and preventing it from reaching families in need. Russia and China have been calling for all aid to be routed through Damascus instead. But Syrians in the northwestern enclave, as well as Western countries critical of Assad, say they are skeptical of the push. “There’s a lot of danger for people in need in northwest Syria,” Miliband said. “And it’s very important that they’re not forgotten.”

Young Chinese opt out of the rat race and pressures at home to pursue global nomad lifestyle 2023-07-28 - BANGKOK (AP) — Shortly after China opened its borders with the end of zero-COVID, Zhang Chuannan lost her job as an accountant at a cosmetic firm in Shanghai and decided to explore the world. “The cosmetics business was bleak,” said Zhang, 34, who explained everyone wore face masks during the pandemic. After being laid off, she paid $1,400 for an online Thai course, got an education visa and moved to the scenic northern Thai city of Chiang Mai. Zhang is among a growing number of young Chinese moving overseas to escape the country’s ultra-competitive work culture, family pressures and limited opportunities after living in the country under the strict pandemic policies for three years. Southeast Asia has become a popular destination given its proximity, relatively inexpensive cost of living and tropical scenery. There is no exact data on the number of young Chinese moving overseas since the country ended pandemic restrictions and reopened its borders. But on the popular Chinese social media platform Xiaohongshu, hundreds of people have discussed their decisions to relocate to Thailand. Many get a visa to study Thai while figuring out their next steps. At Payap University in Chiang Mai, around 500 Chinese began an online Thai course early this year. Royce Heng, owner of Duke Language School, a private language institute in Bangkok, said around 180 Chinese inquire each month about visa information and courses. The hunt for opportunities far from home is partly motivated by China’s unemployment rate for people aged 16 to 24, which rose to a record high of 21.3% in June. The scarcity of good jobs increases pressure to work long hours. Opting out is an increasingly popular way for younger workers to cope with a time of downward mobility, said Beverly Yuen Thompson, a sociology professor at Siena College in Albany, New York. “In their 20s and early30s, they can go to Thailand, take selfies and work on the beach for a few years and feel like they have a great quality of life,” Thomson said. “If those nomads had the same opportunities they hoped for in their home countries, they could just travel on vacation.” During the pandemic in China, Zhang was cooped up in her Shanghai apartment for weeks at a time. Even when lockdowns were lifted, she feared another COVID-19 outbreak would prevent her from moving around within the country. “I now value freedom more,” Zhang said. A generous severance package helped finance her time in Thailand and she is seeking ways to stay abroad long-term, perhaps by teaching Chinese language online. Moving to Chiang Mai means waking up in the mornings to bird songs and a more relaxed pace of life. Unlike in China, she has time to practice yoga and meditation, shop for vintage clothes and attend dance classes. Armonio Liang left the western Chinese city of Chengdu in landlocked Sichuan province for the Indonesian island of Bali, a popular digital nomad destination. His Web3 social media startup was limited by Chinese government restrictions while his use of cryptocurrency exchange apps drew police harassment. Moving to Bali gave the 38-year-old greater freedom and a middle-class lifestyle with what might be barely enough money to live on back home. “This is what I cannot get in China,” said Liang, referring to working on his laptop on the beach and brainstorming with expatriates from around the world. “Thousands of ideas just sprouted up in my mind. I had never been so creative before.” He also has enjoyed being greeted with smiles. “In Chengdu, everyone is so stressed. If I smiled at a stranger, they would think I am an idiot,” he said. Life overseas is not all beach chats and friendly neighbors, though. For most young workers, such stays will be interludes in their lives, Thompson said. “They can’t have kids, because kids have to go to school,” Thompson said. “They cannot fulfill their responsibilities to their parents. What if their aging parents need help? They eventually will get a full-time job back home and get called back home because of one of those things.” Zhang said she faces pressure to get married. Liang wants his parents to move to Bali with him. “It’s a big problem,” Liang said. “They worry they will be lonely after moving out of China and worry about medical resources here.” Huang Wanxiong, 32, was stranded on Bohol Island in the Philippines for seven months in 2020 when air travel halted during the pandemic, and he spent his time learning free diving, which involves diving to great depths without oxygen tanks. He eventually flew home to the southern Chinese city of Guangzhou, but lost his job at a private tutoring company after the government cracked down on the industry in 2021. His next gig was driving more than 16 hours a day for a ride-hailing business. “I felt like a machine during those days,” Huang said. “I can accept a stable and unchanging life but I cannot accept not having any hope, not trying to improve the situation and surrendering to fate.” Huang returned to the Philippines in February, escaping family pressures to get a better job and find a girlfriend in China. He renewed his Bohol Island friendships and qualified as a dive instructor. But without Chinese tourists to teach and no income, he flew home again in June. He still hopes to make a living as a diver, possibly back in Southeast Asia, though he also may agree to his parents’ proposal to emigrate to Peru to work in a family-run supermarket. Huang recalled he once surfaced too quickly from a 40-meter (131-foot) dive and his hands trembled from a dangerous lack of oxygen, known as hypoxia. The lesson he took was to avoid rushing and maintain a steady climb. Until his next move, he plans to use that free diver discipline to counter the anxieties of living in China. “I will apply the calm I learned from the sea surrounding that island to my real life,” Huang said. “I will maintain my own pace.”

Who’s in charge of Nashville’s airport? US and Tennessee officials disagree under a new state law 2023-07-28 - NASHVILLE, Tenn. (AP) — While Nashville International Airport hums to the tune of live music in a terminal filled with tourists and locals alike, this trendy gateway to Tennessee has quietly confronted an identity crisis. Under a new state law, there is no clear agreement now about who’s in charge of airport operations. The confusion comes at a time when the airport is booming, its annual passengers having more than doubled over the past decade to 21.8 million by the 2023 fiscal year. The nonprofit Metro Nashville Airport Authority and state officials argue that a new group of state appointees has lawfully taken over the authority’s board. But federal officials and the city contend the old board picked by Nashville’s mayor still has power. Both boards met at the same time last week across town from each other. The dispute heads to a hearing Friday in a state court in Nashville. Earlier this year, Republican lawmakers approved plans for the state to make enough appointments to control the airport’s board starting in July. The change was among several passed by legislators seeking to curtail the power of the heavily Democratic city, whose metro council sunk a bid to bring the 2024 Republican National Convention to Nashville. The city has filed suit against the state over the changes to the airport authority, which manages, operates, finances and maintains the international airport and a smaller one in Nashville. In the meantime, the authority installed the new board members on July 1, saying it can’t defy state law without a court order. Citing the Tennessee Constitution, the city’s lawsuit argues the state violated home rule protections by singling out Nashville without requiring either a local referendum or a two-thirds vote of the metro council for the change. The state responded that Nashville can’t make its claims because the airport authority is independent of the local government. City leaders, however, reached out and received input from the Federal Aviation Administration, which can veto certain changes to the airport’s governance. The federal agency said it would keep recognizing the pre-July 1 board until a court decides the lawsuit. Nashville Mayor John Cooper, a Democrat, has cried foul on the Republican change. “Nashville’s airport has grown very successfully over the years by the direction of this board, and that’s unquestionable,” Cooper said during a recent meeting of the board he selected. “Any state action is purely about politics.” Tennessee’s situation isn’t unprecedented. Due to FAA and court action, North Carolina’s 2013 law to shift control of Charlotte Douglas International Airport from the city to a separate regional board never came to fruition. Mississippi’s 2016 law to reconfigure Jackson’s airport remains blocked by an ongoing legal challenge. Georgia lawmakers flirted with flipping the Atlanta airport’s governance in 2019 but opposition sank the proposal. Nashville officials say the state is upending an airport board without complaints about its performance, even during a time of extensive expansion. In the 2023 budget year, the airport unveiled a new lobby, added more restaurants and live music, opened an additional parking garage and made progress toward an onsite hotel. The airport hosts country, jazz and bluegrass concerts in its terminals and exhibits the work of local artists. The facility has endured growing pains, too, marked by passenger pickup lines sometimes stretching well past a nearby interstate exit. Lawmakers passed the change despite predictions in April by former FAA official Kirk Shaffer that it would create competing boards in “a messy and costly stalemate that damages all involved,” possibly jeopardizing federal grant money. So far, the fight is largely unfolding in court filings. The city says lost grant money could halt projects to accommodate more flights, spurring cancellations and delays. The state and the airport authority argue the grants aren’t in jeopardy. The authority said Nashville officials are making “sky-is-falling” exaggerations. Republican lawmakers contend the state deserves more say over the growing airport because of its regional impact. House Speaker Cameron Sexton said lawmakers created “the legally sanctioned board.” As an intervenor in the lawsuit, the airport authority has remained neutral on whether the new law is unconstitutional. Updates to the FAA have never resulted in the federal agency directing the authority to stop following the state law, while even worse disruptions would result from an order to temporarily return to the preexisting board, the authority wrote. The state-majority board met at the airport on Wednesday, conducting standard-fare business on contracts and reports. At the same time, the members of the mayoral-picked board gathered in city hall, reiterating that the FAA still acknowledges them while criticizing the state law and approving an outside attorney hire. In a letter to the Nashville community at large, the authority’s CEO has acknowledged the “frustration and confusion” caused by the dispute. But he said the authority is responsible for staying legally compliant. “As an airport authority, we do not take political positions,” airport authority President and CEO Doug Kruelen wrote in the July 6 letter.

The Mega Millions jackpot is now $910 million after months without a big winner 2023-07-28 - Lottery players will have another shot at a huge Mega Millions jackpot Friday night and a chance to break a stretch of more than three months without a big winner of the game. The estimated $910 million prize has been building since someone last matched all six numbers and won the jackpot April 18. Since then, there have been 28 straight drawings without a jackpot winner. The jackpot is now the eighth-largest ever in the U.S. It comes a little over a week after someone in Los Angeles won a $1.08 billion Powerball prize that ranked as the sixth-largest in U.S. history. It’s still a mystery who won that prize. Lottery jackpots grow so large because the odds of winning are so small. For Mega Millions, the odds of winning the jackpot are about 1 in 302.6 million. The $910 million prize would be for a sole winner choosing to be paid through an annuity with annual payments over 30 years. Jackpot winners almost always opt for a lump sum payment, which for Friday night’s drawing would be an estimated $464.2 million. Winners also would be subject to federal taxes, while many states also tax lottery winnings. Mega Millions is played in 45 states, Washington, D.C., and the U.S. Virgin Islands.

Mounting job vacancies push state and local governments into a wage war for workers 2023-07-28 - FULTON, Mo. (AP) — At the entrance to Missouri prisons, large signs plead for help: “NOW HIRING” ... “GREAT PAY & BENEFITS.” No experience is necessary. Anyone 18 and older can apply. Long hours are guaranteed. Though the assertion of “great pay” for prison guards would have seemed dubious in the past, a series of state pay raises prompted by widespread vacancies has finally made a difference. The Missouri Department of Corrections set a record for new applicants last month. “After we got our raise, we started seeing people come out of the woodwork, people that hadn’t worked in a while,” said Maj. Albin Narvaez, chief of custody at the Fulton Reception and Diagnostic Center, where new prisoners are housed and evaluated. Public employers across the U.S. have faced similar struggles to fill jobs, leading to one of the largest surges in state government pay raises in 15 years. Many cities, counties and school districts also are hiking wages to try to retain and attract workers amid aggressive competition from private sector employers. The wage war comes as governments and taxpayers feel the consequences of empty positions. In Kansas City, Missouri, a shortage of 911 operators doubled the average hold times for people calling in emergencies. In one Florida county, some schoolchildren frequently arrived late as a lack of bus drivers delayed routes. In Arkansas, abused and neglected kids remained longer in foster care because of a caseworker shortage. In various cities and states, vacancies on road crews meant cracks and potholes took longer to fix than many motorists might like. “A lot of the jobs we’re talking about are hard jobs,” said Leslie Scott Parker, executive director of the National Association of State Personnel Executives. Lingering vacancies “eventually affects service to the public or response times to needs,” she added. Workforce shortages worsened across all sorts of jobs due to a wave of retirements and resignations that began during the pandemic. Many businesses, from restaurants to hospitals, responded nimbly with higher wages and incentives to attract employees. But governments by nature are slower to act, requiring pay raises to go through a legislative process that can take months to complete — and then can take months more to kick in. Meanwhile, vacancies mounted. In Georgia, state employee turnover hit a high of 25% in 2022. Thousands of workers left the Department of Corrections, pushing its vacancy rate to around 50%. The state began a series of pay raises. This year, all state employees and teachers got at least a $2,000 raise, with corrections officers getting $4,000 and state troopers $6,000. The Georgia Department of Corrections used an ad agency to bolster recruitment and held an average of 125 job fairs a month. It’s starting to pay off. In the first week of July, the department received 318 correctional officer applications — nearly double the weekly norm, said department Public Affairs Director Joan Heath. Almost 1 in 4 positions — more than 2,500 jobs -- were empty in the Missouri Department of Corrections late last year, which was twice the pre-pandemic vacancy rate in 2019. Missouri gave state workers a 7.5% pay raise in 2022. This spring, Gov. Mike Parson signed an emergency spending bill with an additional 8.7% raise, plus an extra $2 an hour for people working evening and night shifts at prisons, mental health facilities and other institutions. The vacancy rate for entry level corrections officers now is declining, and the average number of applications for all state positions is up 18% since the start of last year. At the Fulton prison, where staff shortages have led to a standard 52-hour work week, newly hired employees can earn around $60,000 annually — an amount roughly equal to the state’s median household income. The prison also is proposing to provide free child care to correctional officers willing to work nights. If prison staffing is too low, “it can get dangerous” for both inmates and guards, Narvaez said. Public safety concerns also have arisen in Kansas City, where a country music fan attacked before a concert last month waited four minutes for a 911 call to be answered and an hour for an ambulance to arrive. About one-quarter of 911 call center positions are vacant — “a huge factor” in the longer wait times to answer calls, said Tamara Bazzle, assistant manager of the communications unit for the Kansas City Police Department. In Biddeford, Maine, a 15-person roster of 911 dispatchers dipped to just eight employees in July as people quit a “pressure cooker job” for less stress or better pay elsewhere, Police Chief JoAnne Fisk said. The city is now offering fully certified dispatchers $41 an hour to help plug the gaps on a part-time basis — $10 an hour more than comparable new workers normally would earn. This month, Biddeford also launched a $2,000 bonus for city employees who refer others who get jobs. That comes a year after Biddeford adopted a four-day work week with paid lunch periods to try to make jobs more appealing, said City Manager Jim Bennett. To attract workers, other governments have dropped college degree requirements and spiced up drab job descriptions. Nationally, the turnover rate in state and local governments is twice the average of the previous two decades, according federal labor statistics. Uncompetitive wages were the most common reason for leaving cited in exit interviews, according to a survey of 249 state and local government human resource managers conducted by MissionSquare Research Institute, a Washington, D.C. -based nonprofit. The hardest positions to fill included police and corrections officers, doctors, nurses, engineers and jobs requiring commercial driver’s licenses. Along Florida’s east coast, the Brevard County transit system and school district have been competing for bus drivers. On days when drivers are lacking, the transit system has cut the frequency of bus stops on some routes. The school system, meanwhile, has asked some bus drivers to run a second route after dropping children off at school, often resulting in the second busload arriving late. Since 2022, the county has twice raised bus driver wages to a current rate of $17.47 an hour. The school board recently countered with a $5 increase to a minimum $20 an hour for the upcoming school year. The goal is to hire enough drivers to regularly get kids to class on time, said school system communications director Russell Bruhn. In Arkansas, the goal is to get foster kids into permanent homes in less than a year. But during the first three months of this year, the state met that target for just 32% of foster children — well below the national standard of over 40%. More than one-fifth of the roughly 1,400 positions in the Arkansas Division of Children and Family Services are vacant. Many new employees leave in less than two years because of heavy caseloads and the “very difficult, emotionally tolling work,” Mischa Martin, the Department of Human Services’ deputy secretary of youth and families, told lawmakers last month. “If we had a knowledgeable, experienced workforce,” she said, “they would be able to work cases in a better way to get kids home quicker.”

AstraZeneca to buy Pfizer's rare disease gene therapy portfolio for up to $1 bln 2023-07-28 - [1/2] FILE PHOTO-Test tubes are seen in front of a displayed AstraZeneca logo in this illustration taken, May 21, 2021. REUTERS/Dado Ruvic/Illustration/File Photo July 28 (Reuters) - AstraZeneca (AZN.L) said on Friday its unit Alexion has agreed to buy U.S. drugmaker Pfizer's <PFE.N> early-stage rare disease gene therapy portfolio for up to $1 billion, plus royalties on sales. AstraZeneca bought Alexion in 2021. It focuses on rare diseases and plans to close the deal in the third quarter, the British drugmaker said. The deal will bring a number of novel adeno-associated virus (AAV) capsids to Alexion and help build on Alexion and AstraZeneca's capabilities in genomic medicine, it said. AAV capsids have been shown to be an effective mechanism for delivering therapeutic gene cargos for gene therapy and gene editing, the company said. Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee Our Standards: The Thomson Reuters Trust Principles.

Sustainable funds grab new money worldwide in Q2 but lag in U.S.- Morningstar 2023-07-28 - Companies Morningstar Inc Follow NEW YORK, July 28 (Reuters) - New money flowed into sustainable funds globally in the three months to June even as investors pulled out of funds as a whole in the face of stubborn inflation, high interest rates and fears of recession, Morningstar Direct research showed. Funds with assets focusing on sustainability or environmental, social and governance (ESG) factors welcomed $18 billion in the second quarter, less than the $31 billion deposited in the previous three months but a better showing than the $37 billion pulled from investment vehicles overall. Reuters Graphics In the United States, a smaller market for sustainable funds which has also seen Republican politicians fiercely criticise ESG, outflows slowed to $635 million from losses of more than $5 billion in each of the previous two quarters. By contrast, U.S. funds overall attracted $20 billion in the period, prompting Morningstar to remark that "weak demand for sustainable funds in the last three months was a notable departure from the total universe". The researchers blamed some of the $11.4 billion in outflows from U.S. sustainable funds over the past year on market volatility and the unforgiving macroeconomic backdrop. "Another possible factor continuing to weigh on investor demand for ESG products is the political backlash against sustainable investing in the U.S.," they added. Reuters Graphics In Europe, the pattern was reversed, with sustainable funds attracting $20 billion in net new money, while conventional funds in the region lost $19 billion, Morningstar said. Despite weakening flows, the value of assets in sustainable funds both globally and in the United States specifically continued a growth trend that began in late 2022. Sustainable funds' relatively high exposure to the technology sector, which acted as a drag last year, is now proving beneficial. "The rise in tech stocks, along with rising valuations across the markets, certainly provided a boost to sustainable fund assets and returns," said Morningstar Associate Director of Sustainability Research Alyssa Stankiewicz. Reporting by Isla Binnie; Editing by Sonali Paul Our Standards: The Thomson Reuters Trust Principles.

U.S. chipmaker AMD to invest $400 mln in India by 2028 2023-07-28 - [1/2] FILE PHOTO-A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo GANDHINAGAR, India, July 28 (Reuters) - U.S. chipmaker Advanced Micro Devices (AMD.O) said on Friday it will invest around $400 million in India over the next five years and will build its largest design center in the tech hub of Bengaluru. AMD's announcement was made by its Chief Technology Officer Mark Papermaster at an annual semiconductor conference that started Friday in Prime Minister Narendra Modi's home state of Gujarat. Other speakers at the flagship event include Foxconn (2317.TW) Chairman Young Liu and Micron (MU.O) CEO Sanjay Mehrotra. Despite being a late entrant, the Modi government has been courting investments into India's nascent chip sector to establish its credentials as a chipmaking hub. AMD said it will open its new design centre campus in Bengaluru by end of this year and create 3,000 new engineering roles within five years. "Our India teams will continue to play a pivotal role in delivering the high-performance and adaptive solutions that support AMD customers worldwide," Papermaster said. The new 500,000-square-foot (55,555 square yards) campus will increase AMD's office footprint in India to 10 locations. It already has more than 6,500 employees in the country. From personal computers to data centers, AMD chips are used in a wide range of devices. The Santa Clara, California-based firm is also working on an artificial intelligence chip that will take on market leader Nvidia Corp (NVDA.O). Unlike its top rival Intel, AMD outsources production of chips it designs to third-party manufacturers like Taiwan's TSMC. TSMC and the South Korea's Samsung are among the elite few chipmakers globally to have mastered cutting-edge chipmaking, a technology many nations are now vying for to avoid supply chain shocks, such as faced during the pandemic. India in 2021 unveiled a $10 billion incentive programme for the chip sector, but the plan has floundered as no company has so far managed to get clearance for setting up a fabrication plant, the centerpiece to Modi's ambitions. Other investments in India include a multi-year $400 million plan by U.S. chip equipment maker Applied Materials (AMAT.O) in June to set up an engineering center, and chipmaker Micron' $825 million investment in a semiconductor testing and packaging unit in Gujarat. Reporting by Munsif Vengattil in Gandhinagar, Gujarat; Editing by Aditya Kalra and Sonali Paul Our Standards: The Thomson Reuters Trust Principles.

Chipmakers signal supply glut easing but demand recovery still slow 2023-07-28 - SEOUL (Reuters) - From Intel to Samsung, global chipmakers are celebrating the beginning of the end of a semiconductor supply glut, but the outlook for demand from customers outside the artificial intelligence (AI) industry remains gloomy. FILE PHOTO: Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo/File Photo All the major markets for chips - smartphones, PCs and data centres - have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and rising interest rates. This has created an unprecedented oversupply of commodity chips, causing a record combined 15.2 trillion won ($12 billion) first-half operating loss for the world’s two largest memory chipmakers, Samsung and SK Hynix. This glut, however, has started to ease largely due to production cuts and as a decline in PC shipments eased to 11% in the June quarter compared to a 30% slump in each of the previous two quarters, data from tech analysts Canalys showed. The smartphone market is also improving, with cellphone shipments falling 8% in the June quarter, versus 14% in the first quarter, according to research firm Counterpoint. “Demand is recovering very gradually,” Woohyun Kim, chief financial officer at SK Hynix, said on an earnings call this week. “The recent improvement in PC shipments has been mainly led by promotions and low-end models, meaning it provided limited impact on chip demand recovery,” he said, adding that shipment forecasts for PCs and smartphones this year have been downgraded from earlier predictions. While demand for chips to support generative AI has rapidly increased since OpenAI’s ChatGPT was launched late last year, the sector still accounts for a small fraction of overall chip demand and is crimping corporate spending on servers, as some companies prioritize investment in AI. Intel CEO Pat Gelsinger said on Thursday an inventory glut in server central processing units (CPUs) will persist until the second half of the year and that data centre chip sales will decline modestly in the third quarter before recovering in the fourth quarter. Slideshow ( 2 images ) A sluggish recovery in China, the world’s biggest chip buyer, is also dampening the overall outlook. Both Samsung and SK Hynix said China’s reopening failed to live up to expectations that it would revive the smartphone market, and that they were extending production cuts of NAND memory chips, widely used in smartphones to store digital data. Analog chipmaker Texas Instruments, which has heavy exposure to China, forecast third-quarter revenue and profit below Wall Street targets on Tuesday, bogged down by a sluggish recovery in end-market demand that has forced clients to cancel orders. “China was roughly half of sales at the end of fiscal 2022, so China has the largest impact on TI’s business,” said Logan Purk, analyst at investment firm Edward Jones. AI WINNERS Manufacturers of the equipment used to make chips such as KLA Corp and Lam Research are early winners of the AI boom. Both companies forecast quarterly revenue above Wall Street estimates this week, sending their shares higher. “Advanced AI servers have significantly higher leading-edge logic, memory and storage content versus traditional servers, and every incremental 1% penetration of AI servers and data centres is expected to drive $1 billion to $1.5 billion of additional (chip equipment) investment,” Lam CEO Tim Archer said on a conference call with analysts. Chipmakers are also increasing production of the high-end chips used to support AI related chips. SK Hynix said demand for AI server memory had more than doubled in the second quarter compared to the first quarter. Its DRAM chips, which hold information from applications while the system is in use, sold for a higher price in the second quarter versus the first, on average. The company leads the market in high bandwidth memory (HBM) DRAM used in generative AI. It had a 50% market share in HBM as of 2022, followed by Samsung’ 40% and Micron’s 10%, according to TrendForce. ($1 = 1,278.7400 won)

US bank preferred capital issuance makes a tentative comeback 2023-07-28 - July 28 (Reuters) - Investor appetite for a type of debt issued mostly by banks to boost their capital is showing early signs of revival, just as interest rates on an estimated $120 billion of such securities are due to reset to much higher levels. So-called preferred securities, which are one of the riskiest forms of debt but also have some characteristics of stocks, are popular among banks as a way to boost their capital for regulatory purposes. Typically, these securities have no maturity date, but they can be redeemed, or called, in five or 10 years from the date they were issued. If they are not called, the rate resets to a new fixed or floating rate. More than $160 billion of preferreds were issued in 2020 and 2021 each, when rates were low. Volume dropped last year to $70 billion as the U.S. Federal Reserve embarked on an interest rate hiking cycle. Then, in March, the U.S. regional banking crisis and the collapse of Credit Suisse effectively shut the market. In the sale of the Swiss lender to rival UBS Group (UBSG.S), the European equivalent of preferreds was fully written down. The market since has been reopening. When Wells Fargo & Co (WFC.N) issued a new public preferred security earlier this month, investor demand far outweighed supply. That came on the heels of improving investor sentiment about the debt. Spreads - or difference between the yields of these securities and Treasury bonds - have tightened by 60 basis points from the height of the banking crisis in March. Some bankers now expect more deals, primarily from U.S. banks, which have billions of dollars of preferreds coming up for redemption. "There is a better understanding of the risk entailed in these preferred structures after Credit Suisse and recent regional bank failures, so investors are showing more appetite for these securities,” said Daniel Botoff, global head of debt capital markets syndicate at RBC Capital Markets. Allie Quine, a vice president and portfolio specialist at fund manager Cohen & Steers, one of the biggest investors in preferreds, said they saw buying opportunities, with prices more attractive than their long-term averages. The revival of this market is key ahead of new capital requirements being imposed on banks. On Thursday, U.S. regulators unveiled details of an overhaul of capital rules that would direct banks to set aside billions more to guard against risk. To be sure, some analysts said uncertainty about the Fed's interest rate outlook and continued caution among investors would keep a lid on new supply, which is unlikely to reach levels seen in 2020 and 2021. The impact of new regulations, which are being finalized, will also take time to be felt. "Any new issuance will likely be targeted towards refinancing more expensive floating-rate securities within their call windows," Quine said. "Net new issuance will generally remain limited depending on need." WELLS DEAL Earlier this month, Wells Fargo sold the first public preferreds since the regional banking crisis. The $1.725 billion deal received orders of over $6 billion, bringing total issuance for the year to $37 billion. If Wells Fargo had not redeemed its outstanding securities, it would have had to pay a coupon of almost 9% for life on its older preferreds, up from just 5.85% until they became callable. Its new preferreds pay a fixed coupon of 7.625%. In the next six months, some $119 billion of preferreds are reaching their call date, according to data from Informa Global Markets. That tally includes those issued by not just U.S. and European banks but also finance, insurance firms and other companies. It also includes securities that have already passed their call dates and were paying a spread of as much as 400 basis points over a floating rate benchmark, like the Secured Overnight Financing Rate, which could keep increasing as the Fed hikes rates further. RBC's Botoff said many of the large U.S. banks have as much as $20 billion of old preferred deals that need to be redeemed or extended into more expensive floating rate coupons. "The tone and support for refinancing has improved substantially over the last few weeks," he added. Reporting by Shankar Ramakrishnan in New York Editing by Paritosh Bansal and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles.