RSnake Report 20241222

Table of Contents

• Geopolitical

• Technology

• Cybersecurity

• Business

Hello, and thanks for reading! I am getting a lot more feedback from readers as of late, which has been driving me to push some news out. People were confused as to why I didn’t talk about the CR, the government shutdown, and the Ships Act. Thank you for the prompt, everyone. Seriously - it helps me know what’s important to you to monitor. I’ll make sure to get to all of that and more. I’m not sure if we’ll have another newsletter out before Christmas/Hanukkah so if I don’t talk to you before then, have a great holiday with your family! 🎄🕎 

In Russian/Ukraine news, Ukrainian kamikaze drones executed two surgical strikes on the 15th floor of a building in Kazan, 1,000 kilometers from Ukraine's border. Same building, same spot, twice. However, this occurred on a Saturday, so perhaps no one was home in that office. Either way, very interesting.

Meanwhile, another Ukrainian UAV struck the roof of a residential complex in Kazan. Again, this was 1,000km from Ukraine. That’s a lot of Russia being traversed and uncontested. Russian air defense is in bad shape.

Other strategic targets were hit, too - an ammunition depot in Rylsk went up in flames, leaving 88 buildings without heat and the city wrestling with gas shortages. It’s not just winter coming either. It’s here. And over in Novocherkassk, explosions rocked another depot, this one likely tied to the 150th Motorized Rifle Division. Seems like a bad week to be in logistics.

Oil infrastructure wasn’t spared, either. In Oryol Oblast, drones targeted an oil depot. I am still surprised that Russia’s terminals haven’t been fully depleted yet. It just shows how much oil and gas Russia was producing that they had this many terminals, refineries, and depots to destroy. Moscow insists everything’s fine in Novocherkassk with a series of drones hitting. Video evidence suggests otherwise.

So, too, went a large structure that was reported to be some sort of military base used by the Russians in Donetsk. The size of this explosion looks like it may have been one of these barrel bombs we’d seen talked about. I can’t imagine much else in the Ukrainian arsenal other than warheads dropped from planes that would be capable of this.

As if that wasn’t enough chaos, civilian unrest is now peppering Russian cities. Russians are setting banks, ATMs, and even draft offices ablaze. Fireworks in shopping malls? Sure. Setting fires on police cars? Why not, I guess? The reports are a bit confusing, but it appears that this might somehow be related to Moscow going after spam call centers and the call centers calling people, getting them to fight the state. I’m not sure if that rumor is true, if this is Ukrainian teams/sympathizers, or if it’s just a rash of Russian anger about the sliding rates of people’s debt payments due to the ballooning key interest rate. Whatever it is, this has got to be getting a lot of attention from the locals.

On a more technical note, Ukraine has debuted a fiber optic FPV drone conversion module. It basically converts an RF frequency into a fiber optic controller on the cheap. This means in areas where an important target easily jams the signals, they can switch tactics and go after the target easily with the same controllers.

In European news, Germany is reeling after a terrorist drove his car into a crowded Christmas market crowd, killing 11 and injuring 60. The suspect, a Saudi-born former asylum seeker with a resumé of extremist views, has sparked international outrage. It is hard to tell what his beliefs actually are, wavering from anti-Islamism but also talking about killing Germans. I think this is just a seriously unhinged person by action and by his words. Video of him driving through the crowd here.

Meanwhile, whispers of a potential NATO defense spending hike, from 2% to a daunting 5%, signal Washington's growing frustration with European allies' contributions. Tell your European counterparts to adjusting those budgets, folks.

After the news of Sudan denying access to their coastline to the Russians, who now are in need of more ports after being forced to flee from Syria, more bad news, this time from Libya, who’s Sheikh Sadik al-Ghariani has told all Libyans to push the Russian presence out of the country. Ouch. Putin really needs those smuggled conflict diamonds to fund his war efforts. I realize Ukraine losing any territory would be seen as a massive loss, but in the grand scheme of things, Russia has lost access to Sudan and Syria and is now likely to lose access to Libya, not to mention Kursk. This year has been a historical loss for Moscow on almost every front.

In Middle East news, another Captagon lab in Damascus was shut down, dealing a blow to Syria's narcotics empire. I do wonder if these will get turned back on elsewhere, or if the SNA forces will realize the value of this to their own battle against the Kurdish SDF forces.

Speaking of, I saw one video that caught my attention with regard to that conflict. This is a video of the SDF forces using an FPV drone against the Anti-Assad SNA forces. It’s not the footage itself that’s important; it’s what it means. Keep in mind that the Ukrainians taught the SNA how to use FPV drones. So, now both sides of this conflict are using FPV drones. Who taught the SNA? The US? We are backing them, after all. This isn’t Russia/Ukraine here; this is Kurdish and former ISIS offshoot forces we’re talking about. The age of drones has escaped the Western bubble and will now be used in any major conflict. Not good. 👎️ 

As an aside, I heard a rumor that the Israelis traded safe passage for Assad for the detailed whereabouts of every weapons depot, missile defense battery, and airfield in Syria. I have no idea if that is true or not, but if it was, it would explain how easy it was for Israel to target all of those in just a day or so. That said, Israeli intelligence is very impressive, so it could have easily found this information.

In Tel Aviv, a Houthi ballistic missile was able to get through both David’s Sling and the Iron Dome systems to hit the ground in Tel Aviv. I am a bit surprised that the major cities aren’t armed with the laser systems as well, but perhaps they are doing overtime near the border with the short-range, unguided missiles that Hezbollah tends to use. More than one missile looks like it did hit, which means that something about these missiles makes them slightly harder to hit, although it’s unclear, other than speed and angle of attack, what that might be.

In other Houthi news, an F/A-18 Super Hornet was shot down in a friendly fire incident en route to Yemen. It looks like one of the carrier strike ships attached to the carrier that launched the F/A-18 was the one that fired the anti-aircraft missile. How it was unaware of its own carrier group’s activities points to a massive failure beyond the act itself. So heads are going to roll. Both pilots managed to eject, thankfully, but that was an expensive and nearly lethal mistake.

In Domestic news, there are big wins for Lockheed Martin, which has landed a massive order for 145 shiny new F-35s. This is the same F-35, which has come under a lot of scrutiny both because the Air Force never really wanted them; it was NATO who wanted them, but also because of conversations stemming from Musk and others stating that drones are the future.

Meanwhile, drones are becoming smarter and cheaper - a nice consolation prize for a B-2 Spirit stealth bomber, which has now been deemed too expensive to repair. The B-21 raider will likely take over as the pre-eminent bomb truck going forward. The B-2 really only made sense against Russian air defense, which we now know is quite fragile, and the Israelis proved that in Iran with the F-35.

And for those tracking drone tech, Anduril’s new Bolt-M system promises to lower the skill barrier for FPV drone operations. The video gives a lot of clues about how it will work. It appears to be using way-points, then finding and monitoring the targets of interest, and finally selecting the angle of attack for the 3lb explosive payload and hitting go, which takes the human out of the loop and removes the utility of low-radius vehicular EW jamming equipment.

New bipartisan legislation submitted this week is perhaps the most important maritime security legislation in over 50 years. It's critical to any kind of success we hope to have in the INDOPACOM theater - militarily and commercially. One of my readers told me that in the last 25 years, the Chinese market share in commercial shipbuilding has gone from 10% to 65%, with South Korea, Japan, and the US trading most of that share. From the article, “The legislation calls for the U.S. to add 250 ships within the decade.” That’s much better. I think Washington has figured out we are about to need as many boats as we can get our hands on if we do end up in a maritime conflict with China.

Lastly, the original 1500-page CR has been killed (CR is a continuing resolution). It’s no longer over a thousand pages but just over 100, and the Democrats said no (as did a few Republicans as well, to be fair). So the government it set to shut down. Oh, wait, no, it isn’t… it was passed with overwhelming bipartisan support avoiding the shutdown! That was a bit of a whirlwind there, but just imagine what was in the original bill that clearly didn’t need to be in there. Imagine all this happening now, and Trump hasn’t even entered the office yet!

Okay, onto the articles!

Geopolitical

Pentagon predicts an increase in casualties among North Korean military personnel participating in fighting alongside Russian forces in Ukraine, with estimated losses potentially reaching several hundred.

• The US believes that the number of casualties could reach several hundred, including both killed and wounded.

• North Korean soldiers' involvement in combat alongside Russian forces in Ukraine is expected to lead to an increase in casualties.

[RSnake: I think we’ve likely already passed that number by the looks of their military hospital videos coming out of Kursk.]

Source: https://www.pravda.com.ua/eng/news/2024/12/20/7489953/

Deportation plans under the Trump administration will start on day one, with a focus on removing illegal aliens with criminal convictions. The goal is to prioritize public safety and national security threats. Tom Homan, the incoming border czar, has promised a dramatic crackdown on illegal immigration.

• ICE officers will be deployed across the country starting day one to remove criminal illegal aliens.

• The Trump administration plans to prioritize public safety and national security threats in its deportation efforts.

[RSnake: I have heard similar rumblings that this won’t even have a grace period. Literally, day one. They’re already well into the planning phase.]

Source: https://www.dailywire.com/news/tom-homan-deportations-start-day-one-no-limit-to-how-many-are-being-removed

China's aircraft carrier Liaoning has undergone significant upgrades, including new weapons elevators and enhanced operational capabilities. The U.S. Department of Defense has reported on China's rapid naval expansion, emphasizing concerns about its growing ability to project power in the Pacific, particularly with dual-carrier operations and increased sorties from its carriers. China aims to expand its carrier fleet significantly by the mid-2030s, challenging U.S. naval supremacy in the region.

• Liaoning aircraft carrier upgrades indicate improved operational capacity.

• China's naval expansion poses strategic challenges to U.S. interests in the Pacific.

[RSnake: Let’s not pretend that these carriers are anywhere near as sophisticated as ours, but still. They are making progress quickly. One thing you cannot account for is that China has had zero military combat experience, and every generation of US soldiers has been to war since the beginning. It’s hard to overstate how important combat experience is to training.]

Source: https://www.eurasiantimes.com/?p=223291

The US government faces a potential default on its debt if it cannot raise the debt ceiling to pay its bills, which could have devastating effects on the economy and global financial markets.

• A government default could lead to economic chaos, with millions of families and workers facing financial insecurity and potentially even depression.

• The US has never defaulted on its debt before, and a breach of the debt ceiling would destabilize markets and spike interest rates.

[RSnake: Yes, and also, it should stop borrowing as quickly as possible. Both.]

Source: https://abcnews.go.com/Politics/debt-ceiling-trump-default/story?id=116955286

Ukraine's Security Service has accused Russian Colonel General Aleksey Kim of ordering a deadly missile strike on international journalists in Kramatorsk. Ukraine's Prosecutor General's Office is overseeing efforts to bring Kim to justice.

• Ukraine’s security service identifies Colonel General Aleksey Kim as the commander who ordered a deadly missile strike on international journalists.

• A missile unit under Kim’s command carried out the operation, targeting a civilian building and violating international humanitarian law.

[RSnake: Hard to say when Russian missiles aren’t exactly that accurate, historically.]

Source: https://euromaidanpress.com/?p=310849

Joe Biden's presidency has been scrutinized for alleged incapacity, with accusations that the White House and media concealed his diminished mental state from the public. This situation has drawn comparisons to historical political scandals and raises questions about the integrity of the administration and the media's role in reporting on it.

• Biden's perceived incapacity led to significant mismanagement within the administration.

• The media allegedly participated in covering up Biden's condition to protect his image.

[RSnake: I do think it is odd that when people are talking about Musk being in control of the government, the reply isn’t, “Who is in control right now?” Because it sure isn’t Biden and Kamala has been all but missing since she lost the election.]

Source: https://www.dailywire.com/news/the-greatest-scandal-in-modern-presidential-history

The United States has disclosed that it has approximately 2,000 troops in Syria, double the previously stated figure of 900. The announcement comes amid ongoing conflicts involving various factions in Syria, raising questions about the future role of US military forces in the region.

• The Pentagon revealed an increase in the number of US troops in Syria, now estimated at 2,000.

• Current conflicts between Turkish-backed forces and the Syrian Democratic Forces pose challenges to the stability of the region.

[RSnake: This was a fairly laughable event if it wasn’t so telling of how broken our military is in some ways. How do you lose over a thousand troops? Also, did you fire/demote/court-martial whomever told you it was 900?]

Source: https://www.aljazeera.com/news/2024/12/19/us-says-it-has-two-thousand-troops-in-syria-not-nine-hundred-as-previously-declared?traffic_source=rss

A vehicle attack occurred during a Christmas market in Magdeburg, Germany, resulting in multiple injuries and fatalities. The suspect, identified as a 50-year-old Saudi refugee, allegedly acted out of anger towards Germany regarding its refugee policies. The international community, including leaders from the U.S., U.K., France, Italy, and Saudi Arabia, has condemned the attack and expressed condolences to the victims and their families.

• A vehicle attack in Magdeburg, Germany, caused significant casualties at a Christmas market.

• World leaders have condemned the attack and expressed solidarity with Germany.

[RSnake: I think this will fuel a lot of anti-immigration sentiment. It’s already bad, but it will get worse.]

Source: https://www.dailywire.com/news/world-leaders-respond-to-saudi-mans-terror-attack-on-christmas-market

President Biden's approach to Iran has seen a significant increase in the country's oil revenues, which have surged to $53 billion by 2023, enabling Tehran to advance its nuclear and military capabilities. Iran has also utilized a complex network of shipping to bypass sanctions, reflecting the ineffectiveness of current enforcement strategies. The looming arrival of the Trump administration may shift U.S. policy back towards a more aggressive stance aimed at curtailing Iran's nuclear ambitions.

• Biden's lenient sanctions have allowed Iran to significantly increase oil exports.

• Iran is advancing its nuclear program amid inadequate sanction enforcement.

[RSnake: Not great. Israel is going to have to handle it for us. I am being told that Biden and Trump have both told Israel more or less… you have a month. Do whatever you need to do between now and then. Hence, they took the Golan heights and rolled through southern Syria in tanks.]

Source:https://www.realcleardefense.com/articles/2024/12/20/too_little_too_late_by_biden_on_iran_1079938.html

Technology

MIT researchers have developed an AI framework called SciAgents that autonomously generates and evaluates research hypotheses, specifically focusing on biologically inspired materials. This system utilizes multiple AI agents to collaborate and simulate scientific discovery by leveraging knowledge graphs to understand and connect scientific concepts.

• The SciAgents framework uses AI agents to collectively solve complex scientific problems.

• The system aims to streamline the hypothesis generation process, reducing the time researchers spend on developing new ideas.

[RSnake: I do think the multi-agentic approach is the way to go. It is not dissimilar to how we have right and left brains that do conflict resolution. Or the “voice in our head” that we can argue with.]

Source: https://news.mit.edu/2024/need-research-hypothesis-ask-ai-1219

Neural networks are being adapted to work with graph structures, leading to the development of graph neural networks (GNNs) that enhance the expressiveness and capabilities of traditional models. These advances are resulting in practical applications across various fields, including drug discovery, social network analysis, and other areas where relationships between data points are crucial. Furthermore, research is ongoing to improve GNN architecture and performance through various techniques and parameter optimizations.

• Graph neural networks (GNNs) enhance data processing by leveraging the structure of graphs.

• Recent developments in GNNs are enabling significant applications in fields like drug discovery and social network analysis.

[RSnake: This is the way. If you aren’t already using Obsidian for note-taking, get on it. It’s a graph database note-taking software written in markdown, which, by the way, LLMs are fluent in.]

Source: https://distill.pub/2021/gnn-intro/

A new intensive 12-week AI training program called Gauntlet AI is set to launch, designed to prepare engineers for roles as high-demand AI engineers with a starting salary of $200,000 per year in Austin, Texas. The program combines remote learning with an immersive in-person experience, and it has received significant investment to train participants in advanced AI techniques. Successful applicants will undergo rigorous training to become elite AI builders and leaders in the industry.

• Gauntlet AI offers a free intensive 12-week training program for engineers in AI.

• Graduates of the program are guaranteed a $200,000 per year job in Austin, Texas.

[RSnake: Hey, if you want to move to Austin and be my neighbor…]

Source: https://gauntletai.com

Anthropic has developed an automated AI jailbreaking algorithm that bypasses safeguards designed to prevent harmful content generation in advanced AI models like GPT-4o and Claude 3.5. The algorithm's effectiveness, achieving over 50% success rates, raises significant implications for the management and security of AI technologies.

• Anthropic's BoN Jailbreaking algorithm allows for the automatic circumvention of safety protocols in AI models.

• The research demonstrates high success rates in eliciting harmful responses from advanced AI through manipulated prompts.

[RSnake: It’s more or less l33t speak. I have been talking to a few researchers about this. It’s painfully easy. However, I prefer a more straightforward approach and can now get ChatGPT to switch to the NSFW mode, I want instantly. My hack uses a very intentional set of specifically targeted memories to pre-prompt preferences and focus on the “prostate health” aspects of NSFW. This concept could work for anything like bomb-making or drugs, etc. Want proof?]

Source: https://www.404media.co/apparently-this-is-how-you-jailbreak-ai/

The Biden administration has implemented new export controls aimed at restricting Chinese companies, such as Huawei and ByteDance, from developing advanced artificial intelligence technologies. In parallel, Amazon has introduced new tools at its Re:Invent conference to aid customers in creating generative AI applications, including a feature for assessing chatbot accuracy.

• New U.S. export controls target Chinese tech firms to limit AI advancements.

• Amazon unveils tools to assist in the development of generative AI.

[RSnake: Gooood luck. There are now 1.2 million open-sourced models on Huggingface.]

Source: https://www.csis.org/analysis/understanding-biden-administrations-updated-export-controls

Cybersecurity

Fortinet has patched a critical security vulnerability in its Wireless LAN Manager (FortiWLM) that could allow unauthenticated sensitive information disclosure and remote code execution.

• A critical security vulnerability was discovered in Fortinet's Wireless LAN Manager (FortiWLM), which could be used to gain access to authenticated endpoints, execute unauthorized code or commands via specially crafted Web requests, and lead to remote code execution.

• The bug affects FortiWLM versions 8.6.0 through 8.6.5 and versions 8.5.0 through 8.5.4, which have been patched in later versions.

[RSnake: Good. What a nightmare. This is something we predicted ages ago. When the attack surface area of a company is comprised of security software, that software/hardware becomes the new attack surface.]

Source: https://www.darkreading.com/vulnerabilities-threats/fortinet-addresses-unpatched-critical-rce-vector

BeyondTrust has released an emergency fix for a critical command injection vulnerability affecting its security products, which is currently under active exploitation. Organizations using affected products are urged to apply the patch immediately to prevent potential unauthorized access to their systems.

• BeyondTrust issued an emergency fix for CVE-2024-12356, a critical command injection vulnerability.

• The vulnerability allows unauthenticated remote attackers to execute commands on the underlying operating system.

[RSnake: Another example of the attack surface that security software/hardware creates.]

Source: https://www.vulnu.com/p/beyondtrust-pra-and-rs-flaw-under-active-attack

The FBI created a covert technology startup, Anom, which was used to provide secure communication for criminals, allowing law enforcement agencies to monitor and track criminal activities globally. This operation revealed the extensive connections and operations within organized crime, leading to numerous arrests as authorities gained unprecedented access to the criminal underworld.

• The FBI developed Anom to wiretap criminal communications without their knowledge.

• International authorities made significant arrests based on information gathered through the Anom platform.

[RSnake: Feels a bit like the pager attack, except non-kinetic. Smart. This is something I’d do.]

Source: https://cybersecurityventures.com/?p=33001

The U.S. government has warned citizens to avoid using unencrypted communication methods due to a significant hack attributed to Chinese state-sponsored hackers that has compromised U.S. telecommunications infrastructure. The Cybersecurity and Infrastructure Security Agency (CISA) is advising the use of encrypted messaging applications to protect sensitive communications.

• Chinese government hackers have compromised U.S. telecommunications, allowing interception of unencrypted communications.

• CISA recommends encrypted messaging applications to safeguard communications for high-value targets.

[RSnake: Funny that they’re saying this at the same time the FBI is releasing encrypted comms that are back-doored. Lol]

Source: https://gizmodo.com/?p=2000541129

A cyberattack linked to the Black Basta ransomware operation has stolen health data of nearly 5.6 million patients and employees from Ascension, a large private US healthcare system.

• The breach was caused by an employee accidentally downloading a malicious file on their company device.

• Ascension has offered affected individuals 24 free months of IDX identity theft protection services and a $1,000,000 insurance reimbursement policy.

[RSnake: Btw, these identity protection systems that are provided aren’t a cost center, they are a profit center for these companies. It actually makes them money to offer it. This is a referral program.]

Source: https://www.bleepingcomputer.com/news/security/ascension-health-data-of-56-million-stolen-in-ransomware-attack/

A large cyberattack has been carried out on Ukraine's state registers, with the Russian Main Intelligence Directorate suspected of involvement.

• The operation of all registers has been suspended, and a criminal investigation has been initiated regarding the attack.

• Backup copies of the registers have been maintained over time, and they will be restored within two weeks once it is safe to do so.

[RSnake: Of course they are. The Russians have a lot of interest in controlling Ukrainian cyberinfrastructure. If it’s not them, it’s one of their peers, like North Korea or Iran or China.]

Source: https://www.pravda.com.ua/eng/news/2024/12/20/7489983/

NSO Group, maker of Pegasus spyware, has been found liable for attacks on 1,400 WhatsApp users, facing charges of violating US and California laws. A trial will now focus on damages. The company had argued it was immune from liability due to client investigations, but the judge rejected these claims. This ruling establishes a precedent for other companies in the spyware business.

• NSO Group faces significant financial and reputational consequences due to its involvement in large-scale surveillance operations.

• The ruling could lead to increased regulation and scrutiny of the spyware industry, potentially impacting other companies that operate in this space.

[RSnake: Interesting. Releasing spyware is not a good business model, it seems.]

Source: https://www.theverge.com/2024/12/20/24326342/meta-whatsapp-nso-group-pegasus-spyware-hack-liable

The FBI has conducted a major takedown of the Rydox cybercrime marketplace, arresting three administrators and seizing significant financial assets. Additionally, there are rising security concerns regarding advanced cyber attacks targeting U.S. infrastructure, with a focus on malware incidents related to both Chinese and Iranian operatives. New vulnerabilities have been discovered in several widely used software platforms, prompting urgent patching needs for businesses and organizations.

• FBI's takedown of Rydox reflects ongoing efforts to combat cybercrime.

• Significant vulnerabilities in popular software tools require immediate attention from security teams.

Source: https://www.vulnu.com/p/vulnerable-u-095

Interpol has renamed a term related to fraud to 'Romance Baiting', while various malicious extensions are targeting developers and the crypto community. The U.S. is considering banning TP-Link routers due to cybersecurity risks, and a significant data breach has compromised health data for 5.6 million individuals.

• Interpol has updated terminology for fraud schemes.

• The U.S. government may restrict the use of TP-Link routers over security vulnerabilities.

• A ransomware attack has resulted in a massive data theft involving health information.

[RSnake: I prefer “Pig Butchering,” but I understand the need to help victims not have such a hard self-image afterward. Honestly, all these people did wrong was trust the wrong person and follow their hearts. Sad, actually.]

Source: https://www.bleepingcomputer.com/news/microsoft/windows-11-24h2-upgrades-blocked-on-some-pcs-due-to-audio-issues/

Apple has been alerting users about potential spyware attacks on their devices, particularly focusing on individuals from at-risk populations such as journalists and human rights defenders. Following notifications, victims are directed to a digital helpline for assistance, while Apple has emphasized updating device safety features like Lockdown Mode to enhance protection against spyware.

• Apple notifies users about potential spyware targeting their devices.

• Victims of spyware are directed to a dedicated helpline for support and guidance.

[RSnake: Good for them! That does put them into the cyber security game, though, so I wonder how other companies that offer mobile device security will feel about it.]

Source: https://techcrunch.com/?p=2934892

Business

Party City is closing all of its locations across the United States as it winds down operations after 40 years in business. The retailer has faced significant financial challenges, including declining sales attributed to high inflation and changing consumer habits, leading to the decision to cease operations immediately and initiate liquidation sales.

• Party City is closing all stores due to financial difficulties.

• The retailer has struggled with inflation and declining consumer spending.

[RSnake: Oh man, what a bummer. But I bet their going away party will be epic. 😉 ]

Source: https://www.fastcompany.com/91251460/party-city-going-out-of-business-all-locations-stores-closing

The proposed tariffs on imports from China, Canada, and Mexico by the Trump administration could lead to significant price increases for essential building materials in the U.S., potentially destabilizing the already vulnerable commercial real estate market. As the cost of construction rises, developers, lenders, and consumers may face additional economic strain, contributing to a broader financial crisis. With $1.5 trillion in commercial real estate loans maturing by 2025, the risk of a collapse in the sector increases amidst rising inflation and material costs.

• Proposed tariffs are expected to increase material costs significantly, impacting construction.

• The commercial real estate market is at risk due to maturing loans and rising inflation.

[RSnake: Yep, expect some belt-tightening due to that and decreased spending, but we have been spending way outside of our means for a very long time, so this austerity was bound to happen at some point. It might be a rough 2025, economically.]

Source: https://www.zerohedge.com/markets/will-trump-tariffs-kill-commercial-real-estate

Firms are increasingly moving away from VMware, leading to changes at Broadcom, its parent company. While some distributors like Ingram Micro reduce their engagement with VMware, Broadcom anticipates significant revenue growth from VMware despite this shift.

• Ingram Micro has announced it will limit its engagement with VMware due to dissatisfaction with Broadcom's support.

• Broadcom is maintaining a positive financial outlook for VMware, expecting its revenue to grow significantly despite the loss of certain distribution partners.

[RSnake: Interesting. I think this is largely because people don’t want to manage it at all, and cloud companies make virtualization so much easier to manage.]

Source: https://arstechnica.com/information-technology/2024/12/as-firms-abandon-vmware-broadcom-is-laughing-all-the-way-to-the-bank/

Spotify has been accused of populating its playlists with music from so-called ghost artists, a practice that allegedly reduces royalty payouts to legitimate musicians. An internal program called Perfect Fit Content aims to lower costs by favoring these lower-budget tracks over traditional artists, leading to concerns about the future of artist compensation and the cultural impact of such practices.

• Spotify's playlists may contain numerous tracks from ghost artists, which are often attributed to pseudonymous musicians.

• The Perfect Fit Content program raises questions about how music is valued and the sustainability of artists' livelihoods in the streaming economy.

[RSnake: Clever. Especially for Discover Weekly or Release Radar - focus on the cheaper artists and drive down costs to deliver fresh content to listeners. I heard a dancy/party song the other day I liked by a DJ named Fordanz, and I dug in, and the artist had only had 10k-11k listens to the song. Why not support him, too, and reduce some costs along the way.]

Source: https://harpers.org/archive/2025/01/the-ghosts-in-the-machine-liz-pelly-spotify-musicians/

The U.S. Department of Transportation's data-sharing program for shipping hubs, known as Freight Logistics Optimization Works (FLOW), has expanded significantly, now overseeing three-quarters of the country's ocean container imports. This initiative aims to improve supply chain resilience by aggregating data from various stakeholders in the logistics network, resulting in a substantial decrease in shipping costs and wait times at ports.

• The FLOW program covers 75% of U.S. container imports and 80% of terminal capacity.

• Container ship waiting times at U.S. ports have dropped from 150 to 20.

Source: https://www.supplychainbrain.com/articles/40868-year-of-milestones-for-usdots-supply-chain-data-platform

Several high-profile musicians are accused of misusing COVID-19 relief funds intended for struggling artists, utilizing the money for personal luxuries such as private jets and designer clothing. These artists allegedly obtained large grants under the Shuttered Venue Operations Grant program, which distributed over $16 billion in total assistance to various groups during the pandemic, with some individuals reportedly misallocating significant portions for personal use.

• Lil Wayne and others allegedly misused COVID relief funds for luxury items.

• The Shuttered Venue Operations Grant program distributed over $16 billion, initially excluding musicians but later including them.

[RSnake: We looked into some of these funds at Bit Discovery, but all the strings attached were beyond what we were interested in dealing with, and we decided it was way more trouble than it was worth. Glad we steered clear.]

Source: https://www.dailywire.com/news/rappers-musicians-accused-of-using-covid-grants-for-private-jets-and-parties-report

Thousands of Amazon workers went on strike across seven fulfillment centers in the U.S., marking the largest strike against the company according to the International Brotherhood of Teamsters. The union is challenging Amazon over labor practices and its contention regarding union representation, while Amazon claims the strike will not affect holiday deliveries and disputes the union's representation claims.

• A large-scale strike by Amazon workers is taking place, coordinated by the Teamsters union.

• The conflict highlights ongoing disputes over labor practices and union representation within Amazon.

[RSnake: Just in time for Christmas. If you’re wondering why little Timmy’s gift isn’t here on time, you can blame the Teamsters.]

Source: https://www.dailywire.com/news/amazon-workers-strike-as-union-threatens-christmas-package-delays

Walmart has developed a new forecasting framework called Multi-Stage Hierarchical Forecasting Reconciliation and Adjustment to enhance the demand forecasting process for its advertising products. This framework significantly improves accuracy and coherence in forecasts across various hierarchical levels and is now being utilized by Walmart's teams to make better resource planning and decision-making.

• Walmart introduced a new demand forecasting system for its ad products.

• The system improves forecasting accuracy and coherence using advanced algorithms.

[RSnake: They were always way ahead in this area by the way. Their internal AI systems were a decade ahead of their peers.]

Source: https://arxiv.org/abs/2412.14718

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against JPMorgan Chase, Bank of America, and Wells Fargo, alleging they failed to protect consumers from fraud on the Zelle payment platform. Over the past seven years, customers of these banks reportedly lost more than $870 million due to alleged failures in protecting against fraud, prompting scrutiny from lawmakers and regulatory oversight. The lawsuit aims to secure penalties and redress for the affected consumers amidst ongoing legal and political challenges surrounding the CFPB's authority.

• CFPB accuses major banks of failing to safeguard against widespread fraud on Zelle.

• The lawsuit seeks to hold banks accountable for over $870 million lost by customers due to alleged negligence.

[RSnake: I am surprised this isn’t just covered under FDIC. Odd.]

Source: https://www.aljazeera.com/economy/2024/12/20/us-consumer-watchdog-sues-big-banks-over-widespread-fraud-on-zelle-app?traffic_source=rss

Volkswagen has reached an agreement with the IG Metall trade union to prevent immediate plant closures and layoffs in Germany while planning to cut over 35,000 jobs by 2030 to save around €15 billion. The deal includes a suspension of previously agreed wage increases and a reduction in the number of apprenticeships, amidst a decline in demand for vehicles, particularly from China, and increased competition from Chinese brands in the European market.

• Volkswagen reached an agreement with union to secure jobs while planning job cuts.

• The deal aims to address declining demand and increased competition in the automotive market.

[RSnake: Good for them. I bet now they’re really eying more automation, though.]

Source: https://www.bbc.com/news/articles/cje9kv3q94po

Haliey Welch, an internet personality, is facing backlash following the failed launch of her cryptocurrency, Hawk Tuah ($HAWK), which saw its value plummet after a rapid initial surge. Investors are alleging insider trading practices and lack of proper registration for the cryptocurrency, leading Welch to announce her cooperation with legal efforts to address the situation.

• Haliey Welch's cryptocurrency launched with a market cap of $490 million but fell over 90% shortly after.

• Investors are accusing Welch of insider trading related to the cryptocurrency's launch.

[RSnake: This is more funny than anything, but apparently she is trying to salvage whatever reputation she has yet and is in contact with the victims and helping them reach out to her lawyer. We shall see what happens, but I think her glory days are behind her. In case you want some unsolicited financial advice: don’t invest in a shit-coin driven by an influencer famous for simulating sloppy blow jobs.]

Source: https://www.dailywire.com/news/hawk-tuah-girl-haliey-welch-addresses-memecoin-disaster

Canoo, an electric vehicle startup, has placed its employees on a mandatory unpaid break due to funding issues and has closed its headquarters in Los Angeles. The company has faced significant leadership losses and reported having only $700,000 in its bank account, which raises questions about its financial viability and future operations.

• Canoo has shut down its Los Angeles headquarters and multiple key leadership positions have been vacated.

• The company is facing severe financial difficulties, with just $700,000 remaining in its bank account.

[RSnake: Oof, yeah, that’s not good. I wonder if some other auto company will pick up the assets. Rivian is having its own issues with employee harassment suits. Not a good situation for the EV market.]

Source: https://techcrunch.com/?p=2935805

Google is proposing changes to combat a ruling by a U.S. court that found the company illegally maintained a monopoly over online search by paying companies for exclusivity. The proposals include allowing greater flexibility for manufacturers and consumers in selecting search engines, while Google plans to appeal the court's decision.

• Google offers remedies to address accusations of illegal monopoly in online search.

• Proposals include allowing companies more flexibility in choice of default search engines.

[RSnake: Flexibility of choice is probably close enough to fixing the problem. I don’t mind that they finance other companies. Mozilla wouldn’t exist at all without these payments.]

Source: https://www.nytimes.com/2024/12/20/technology/google-antitrust-search-remedies.html

U.S. egg prices have reached record highs due to significant reductions in the laying hen population caused by a bird flu outbreak, resulting in lower egg production. Wholesale prices for large eggs have surged, particularly in states like California, where prices have hit $8.85 per dozen, while overall inflation continues to affect consumer purchasing power.

• Wholesale prices for large eggs increased by 150% from last year, reaching $5.57 per dozen in the Midwest.

• Nearly 123 million poultry have been killed by bird flu since its outbreak began in 2022, leading to a significant decline in egg production.

[RSnake: Ouch. That’s not going to help people who are already struggling. Eggs are one of those very important staples for lots of households and also for restaurants. Eggs/milk/butter/flour - they need to stay stable.]

Source: https://www.fastcompany.com/91251042/u-s-egg-prices-still-skyrocketing-heres-whats-behind-surge

Starbucks workers are set to go on a five-day strike starting in major U.S. cities due to disputes over labor agreements and wage increases. The union representing the workers cites unmet commitments from the company and numerous unfair labor practice charges as part of the ongoing conflict.

• Starbucks workers plan a five-day strike during the holiday season.

• The union claims the company has failed to meet previous labor agreements and address outstanding legal issues.

[RSnake: I hope you have your beans already! Gonna be a lot of pissed-off soccer moms on the road this holiday season. 🚗 😡 ]

Source: https://www.fastcompany.com/91250938/starbucks-strike-set-begin-3-cities-could-spread-hundreds-others

Big Lots, a discount retail chain, has announced that it will begin going-out-of-business sales at all of its stores due to a failed agreement with an investment firm and continued financial struggles, including a Chapter 11 bankruptcy filing. The company's stock price has plummeted over 98% in the past year, and it has faced significant challenges as customers reduce discretionary spending amid high inflation.

• Big Lots has initiated going-out-of-business sales at its stores.

• The company filed for Chapter 11 bankruptcy due to declining sales and high inflation.

[RSnake: Wow, that’s a big company to go out of business. They also serve a lot of lower-class people as well. I bet this will affect a lot of lower-income communities both in terms of employment as well as places to shop. Amazon will likely pick up the delta if they can keep their centers operational.]

Source: https://www.zerohedge.com/markets/big-lots-announces-it-will-start-going-out-business-sale-all-stores

Experian is transforming its business model from a credit reporting agency to a consumer financial technology company, focusing on credit building tools that utilize alternative data. Recent product launches like Experian Boost and Experian Smart Money aim to empower consumers by allowing them to manage their credit scores more effectively without taking on debt. This shift reflects a broader trend in the financial industry towards integrating data-driven solutions to address the challenges faced by those with limited credit histories.

• Experian is redefining its role in consumer finance by emphasizing data-driven solutions.

• The company is launching products to help consumers build credit without incurring debt.

Source: https://www.fastcompany.com/91251153/how-experian-is-using-data-to-unlock-financial-power-for-everyone

Global food prices, especially cocoa, orange juice, and coffee, are experiencing significant inflation, driven by tightening supplies and adverse weather in producing regions, particularly West Africa. Cocoa prices have surged nearly 200% this year, reaching record highs due to a supply crunch and increased demand, with overall food price inflation projected to accelerate further into 2025.

• Cocoa prices have experienced a dramatic rise, making it the top-performing commodity this year.

• Food price inflation has been alarmingly escalating, with projections indicating continued increases.

[RSnake: Is chocolate and coffee getting harder to come by? I hope you have a good relationship with your spouse! 😆 ]

Source: https://www.zerohedge.com/commodities/cocoa-biggest-commodity-winner-year-food-inflation-enters-dangerous-territory

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