RSnake Report 20241105

Election day report, Russia will start bartering with China, etc.

Author

Robert "RSnake" Hansen
November 05, 2024

Table of Contents

Hello, and welcome to the thunder-dome… er… election day! It rained like crazy last night here in Austin, so I hope you stay safe out there on the road and with the radicals who seem to have nothing better to do with their time than get violent about politics. One photo that really stood out to me about a boarded-up restaurant in DC, preparing for whatever unrest is about to be unleashed upon them. I think this picture is how many people feel, and why the financial markets are confused. Will there be mass rioting in the streets tomorrow? Let’s hope not.

“a restaurant with plywood covering the windows near the White House”

I could write pages about what is about to happen today in the United States. It is a war of ideas, not a war of good politics. The gloves were off from the beginning, shots were fired at Trump, and sexual allegations against him, he was embroiled in tons of court cases, Kamala was seemingly unable to decide if a border wall was good or not, and she was unable to finish interviews without losing her temper, there was a semi-functional Biden somewhere in the middle that no one on the left could tell was suffering from the effects of two strokes, and so much more. Democrats calling the Republicans literal Nazis, and the Republicans calling the Democrats literal communists.

I will go out on a limb and say we are a long, long way from being ready to heal as a country after today. Whatever happens, whoever wins, the country has lost because about half of our nation cannot stand the other half. The division between our nation is precisely what KGB Agent Yuri Bezmenov said they were working on decades ago. It worked. If you want to understand why this is happening, watch this video. Send it to a friend. It’s the answer to almost everything we see that doesn’t match the values we grew up with. We have to find a way to heal and push out foreign influence from our homes, our schools, our companies, and our government.

A good friend of mine said, “All right, slacker, where's the election eve RSnake report?” Frankly, I’ve been reluctant to write about it because it’s a messy topic, full of speculation, bad reporting, impassioned idiots, and breaking news that doesn’t meet the minimum bar of what I think is useful news. But here we go. What I know you’re after, my dear reader.

Who’s going to win? Polls are pointing in a slight Trump lead, and that is my prediction - he will win. But I don’t have a crystal ball. We shall see soon. Either way, my other predictions are that Trump won’t give up without a fight, even if he loses by a landslide - maybe even especially if he loses by a landslide. Also, there will be plenty of allegations of cheating and likely many small pockets of evidence of it. To what effect, I do not know.

Now, let’s shift to Ukraine/Russia. it looks like winter is starting to set in, with snow and rain hitting Ukrainian territories. As if the power situation wasn’t already bleak, blackouts are now projected for up to 20 hours a day. The fear of energy system collapse is very real, and if Russia decides to target critical infrastructure more aggressively, it could spell disaster for Ukrainians this winter. So, expect this season to be even harsher than previous ones.

“It is already snowing in Kharkiv. The heating is not on in several cities.”

In Stavropol, an oil depot was hit by drones. Although it’s still unclear who was behind the attack, the strike adds to an ongoing pattern of hits on Russian infrastructure. Meanwhile, the Russian Air Force lost a Su-34 fighter bomber, reportedly downed under "mysterious circumstances." Some sources are pointing to possible involvement from Ukrainian F-16s, and if confirmed, it’s going to be interesting to see more air-to-air combat kills for Russia.

“loss of a Russian fighter-bomber Su-34”

Both sides report intense clashes near Kurakhove, with mechanized Russian units engaging Ukrainian air assault brigades. The momentum on this front seems precarious, with rapid shifts in control noted, especially around Donetsk, where Russian gains are accelerating. This front is moving fast, and no side seems willing to back down.

“Donetsk is by far the fastest-moving front”

In a move showing Ukraine’s adaptation to the battlefield, they’re deploying AI-driven drones with impressive utility in areas that are otherwise protected by Russian electronic warfare systems. These drones reportedly achieve around 80% target accuracy, a massive improvement from manually operated versions. There was an exciting super-cut video, that is worth a watch of drone catcher nets being deployed. I know these have been discussed a lot in the past, but I have never seen one field deployed before, and apparently, they are being used a lot by the looks of it, and quite effectively, assuming the small drones can be located and intercepted.

“These drones could achieve up to 80% accuracy in strike zones”

And speaking of drone tech, jam-resistant U.S.-made V-BAT drones are now in Ukrainian hands, helping to cut through Russian jamming to pinpoint and neutralize air defense systems. I haven’t read up on them enough to know why they are so resistant to jamming, but either way, apparently, they are being used to great effect, causing Ukraine to order hundreds more.

“detected 11 Buk anti-aircraft missile systems, aimed at them and triggered HIMARS missile strikes”

In a rather nostalgic turn to the 1990s, Russia is turning to barter trade with China due to payment issues. “Peas for tangerines” isn’t exactly high finance, but it does tend to be efficient for commodities, and it shows how far they are from getting their currencies to be used for trade. It’ll be fascinating to see how Russia manages its economy under these conditions if bartering continues to grow.

“Russia returns to 1990s barter trade over payment problems”

Shifting to Europe, Poland isn’t taking any chances on its eastern front. They’re building the “Eastern Shield,” a 700-kilometer fortified border designed to counter threats from Belarus and Russia. Poland is also beefing up its arsenal with another 100 HIMARS rocket launchers in addition to the 486 already ordered. Poland is on a serious path to becoming a regional military power, and this border fortification is a clear signal of their concerns about potential threats from the East even as Ukraine is asking them to protect their own sovereignty by downing Russian missiles and drones over their country.

“The shield will be 700 kilometers long, will cost nearly $2.5 billion, and is scheduled to be completed by 2028”

Over Southeast Asia, China has been making notable military moves, and it looks like they’re even tapping Western AI tech for battlefield uses. Reports show that the PLA is experimenting with Meta’s Llama model - re-training it for use with their military apparatus. They’re also developing floating nuclear power plants for strategic positions in the South China Sea. Also worth noting was an anti-sniper system that the Chinese military has developed that uses acoustics to identify inbound fire and return fire or incoming drones with air-burst grenades.

“Chinese anti-sniper system may be applicable as an anti-drone weapon”

Taiwan, meanwhile, received the first of its HIMARS rocket systems as part of an ongoing strategy to counter Chinese threats. Both sides are clearly preparing for any potential escalation, though they seem to be taking different tactical routes.

“Taiwan has bought a total of 29 HIMARS from the U.S.”

In the Middle East, the situation is tense, with Iran possibly planning a major offensive against Israel, timed for the U.S. election night - tonight, reportedly involving missiles and drones targeting Israeli air defenses around Haifa. With over 400 missiles expected to be in play, including Iran’s Khorramshahr-4 ballistic missiles and potential involvement from Iranian-backed forces in Iraq and Syria, this could be a significant escalation. I don’t know if this reporting is correct, but it would definitely give Israel plenty of political air cover for retaliatory strikes.

“the Attack likely to involve at least 400 Missiles aimed at Israeli Air Defense Bases and Sites”

On the Gaza front, a potential ceasefire deal involving hostage exchanges was proposed by the U.S. and Egypt, but Hamas rejected it. The offer included releasing humanitarian hostages in exchange for Palestinian prisoners, but Hamas refused, demanding more substantial concessions from Israel. It’s clear they aren’t willing to compromise on their own terms, even if it means further hardship for Gaza’s civilians. I mean, why would they accept a deal when they can play the victim so much more effectively when they’re being martyred? 🤡 

“Hamas refuses to release even a limited number of hostages”

Iraqi and Syrian forces have also reportedly launched attacks on Israeli positions in Haifa. With multiple fronts now active, Israel’s response will be critical, especially given the potential for wider regional involvement in these conflicts.

On the tech side, Sophos reported a five-year battle with Chinese hackers, who repeatedly exploited their firewall vulnerabilities. In a rare move, Sophos actually installed spy implants on compromised devices, tracking hackers back to a university in Chengdu. This is a game of “hack-back,” which, if you talk to most lawyers, will say is not legal, but this is also a question of how many prosecutors will bother going after Sophos in such a situation. Zero is the likely answer.

It seems ChatGPT search is now officially powered by Bing. So, if you’re seeing Bing’s fingerprints in your search results, that’s why. This partnership could signify what’s to come in search technology, blending AI-driven results with existing search data. How this impacts user experience remains to be seen, but it’s worth watching.

“Bing's index powers ChatGPT Search.”

Okay, onto the articles!

Over 50 children have been reported killed in Israeli airstrikes in Gaza's Jabalia refugee camp within 48 hours. The ongoing conflict has led to a high death toll among children, with more than 16,700 casualties reported since October last year, amidst a severe humanitarian crisis exacerbated by blocked aid and medical supplies. The situation has drawn urgent calls for humanitarian assistance as the violence continues to escalate.

  • More than 50 children killed in Israeli strikes in Jabalia in two days.

  • Over 16,700 children have died in Gaza since October last year.

  • The ongoing siege has severely impacted humanitarian aid and access to medical supplies.

[RSnake: Right, and Hamas rejected a peace deal. So I guess Al Jazeera would consider that an important fact, right? Right? I often think about removing Al Jazeera from my news feed, but it’s essential to understand what radicals are thinking, even if they are misreporting badly. As Sun Tzu said, “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained, you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle."]

Misinformation regarding voting fraud is rapidly spreading online as the US election approaches, affecting public trust in the electoral process. Allegations of ballot irregularities are being circulated by various groups, including foreign actors, which complicates efforts by election officials to maintain order and integrity leading up to and during the election.

  • Misinformation about voter fraud is proliferating on social media, with significant involvement from both partisan groups and foreign entities.

  • The spread of false claims poses challenges for election officials trying to ensure a smooth electoral process amid heightened distrust.

[RSnake: Obviously, some of this will be misreporting or true disinformation campaigns, but there are also actual, real occurrences of it as well. The question is how much and why we tolerate any of it unless the people tolerating it need cheating to win. If they need it to win and accept it, that means they are complicit. If they are complicit, that means they are bad actors. I sickens me what that says about so many people who “vote blue no matter who” and the like. I am not a fan of strict partisanship - it creates weird incentives.]

Source: https://www.bbc.com/news/articles/czj7eex29r3o

As of November 3, 2024, Russian forces have suffered significant losses in their ongoing conflict against Ukraine, including 1,410 soldiers killed and wounded in just one day. The total estimated combat losses for Russia since the beginning of the war are around 699,090 military personnel, along with substantial losses in military equipment including tanks, armored vehicles, and artillery systems.

  • Russia has lost approximately 699,090 soldiers since February 2022.

  • Recent reports indicate Russia lost 12 tanks and 39 armored personnel carriers in one day.

[RSnake: It’s over 700k now. Ouch. That’s about ½ of a percent of Russia’s entire population dead or wounded… and accelerating.]

Source: https://www.pravda.com.ua/eng/news/2024/11/3/7482696/

The US faces serious and challenging national defense threats from its adversaries, including near-term major war, global warming impacts, and unprecedented cooperation among nations, as well as the growing nuclear capabilities of China and Russia.

  • The US must prioritize maintaining an effective nuclear deterrent and ensure adequate budgets for defense and intelligence to counter these threats.

  • The new administration and Congress should focus on modernizing military technology and cooperation with allies to address the growing array of national defense challenges.

Severe flooding in eastern Spain has led to at least 214 fatalities and significant destruction of towns and infrastructure. Thousands of military personnel and police are deployed for rescue operations, while anger mounts among residents towards government officials for their response and management of the crisis.

  • Severe flash floods in eastern Spain have caused mass casualties and destruction.

  • Frustration with government response is growing as military and police are mobilized for recovery efforts.

[RSnake: That was a fairly unprecedented flood, to be fair, but I also don’t blame the residents for their ire. The videos and footage of the destruction were out of a Hollywood blockbuster.]

Source: https://www.aljazeera.com/news/2024/11/3/what-to-know-about-flash-floods-that-killed-over-200-people-in-spain?traffic_source=rss

The U.S. is deploying B-52 bombers and Navy destroyers to the Middle East amid ongoing conflicts involving Israel.

  • The U.S. is reinforcing its military presence in the Middle East with B-52 bombers and Navy destroyers.

  • North Korea has deployed troops to support Russia's efforts in Ukraine, increasing regional tensions.

[RSnake: This is because we pulled out a naval strike group and didn’t want to give the Iranians any ideas that we weren’t committed to the region. There was some talk about them being nuclear capable, but I don’t think our mandate allows them to be carrying nuclear warheads in that region.]

Source: https://sofrep.com/?p=209975


India has made significant advancements in its space program, recently allocating 227 billion rupees ($2.7 billion) for ambitious missions, including Chandrayaan-3 and plans for a manned mission to the Moon by 2040. The country has maintained a competitive edge in space exploration through low-cost missions, with a focus on indigenously developed technology and minimal outsourcing, allowing for cost savings compared to agencies like NASA.

  • India's space program includes plans for a moon mission, a Venus orbiter, and a space station.

  • The country's successful low-cost missions challenge assumptions about expensive space exploration.

[RSnake: I see this as a good thing. We need more contenders for space to drive down costs. Musk said something like we need to see a 100-fold decrease in price to make planetary expeditions make sense. Competition forces the costs down through innovation, as it already has. Of course, we should be the best, but having a close second and third is always good.]

Source: https://www.bbc.com/news/articles/cn9xlgnnpzvo

An open-source base model for conversational audio generation named hertz-dev has been released, boasting 8.5 billion parameters and a latency significantly lower than existing models. The system is designed for efficient audio-only speech generation and aims to enhance real-time voice interaction capabilities in research and development.

  • Hertz-dev is the first publicly released audio base model specifically for conversational audio generation.

  • The model's low latency and large parameter count enable more human-like interaction and higher quality audio generation.

Google has been evolving its data center networking infrastructure for the past 25 years to meet increasing demands for speed, reliability, and scalability. The latest advancements have led to a fifth-generation architecture capable of handling 13 Petabits/sec of bandwidth, supporting a diverse range of applications including artificial intelligence and cloud services.

  • Google's network now supports 13 Petabits/sec, enabling global connectivity for billions of users.

  • Recent innovations focus on software-defined networking to enhance flexibility, lower latency, and support AI applications.

[RSnake: Pretty impressive. At Bit Discovery, we were processing multiple petabits a month. That’s something on the order of 16 million times faster than what we built.]

Source: https://cloud.google.com/blog/products/networking/speed-scale-reliability-25-years-of-data-center-networking

James Cameron has joined the board of Stability.AI, a company focused on generative AI and known for its text-to-image tool. The film industry is exploring the potential of AI in visual effects, aiming to reduce costs and transform production processes, while facing legal challenges regarding copyright and ethical use of training data for AI models.

  • James Cameron's involvement with Stability.AI signifies a shift in the film industry's approach to visual effects.

  • The use of generative AI in film could potentially reduce costs while raising ethical and legal questions regarding copyright.

[RSnake: Anything to drive the costs of production down and increase the speed of output. Jim knows better than anyone that one of the greatest drawbacks to film is the people - that’s why he built so much automation around his visual effects. This is just another example of that line of thinking and why if you are in the show-biz and you aren’t researching tech, you’ll be replaced by tech and the people who embrace it. It will drive the costs down, and you’ll be gone.]

Source: https://thenextweb.com/news/ai-could-transform-visual-effects-in-film-but-the-emerging-field-is-mired-in-copyright-issues

The U.S. Army is advancing research on AI-enabled autonomous drones that can support military operations by autonomously launching and adapting in real-time to battlefield conditions. This development aims to integrate advanced AI algorithms with human decision-making to enhance the effectiveness and adaptability of warfare strategies in the future.

  • The U.S. Army is developing AI systems that allow drones to autonomously adapt and learn in real-time during combat.

  • Efforts are being made to create a human-machine interface that enables soldiers to provide critical inputs to AI systems on the battlefield.

[RSnake: I was assured by the Pentagon that this was a terrible idea. And I assured them it would happen anyway. We are only one step away from kill decisions, and that’s just because we’re afraid of collateral damage. We’re very close.]

Source: https://sofrep.com/?p=210014

Northern Virginia is experiencing a surge in data center development, driven by demand for computing power, especially from the AI sector. Environmental activists in the region are opposing this expansion due to concerns about its impact on local infrastructure, air quality, and water use, while similar movements are emerging globally in places like Ireland and South America. Major tech companies are attempting to address these concerns through commitments to renewable energy and sustainability initiatives.

  • Northern Virginia has the highest concentration of data centers in the world, significantly affecting local infrastructure.

  • Environmentalists globally are protesting against data centers due to their negative impacts on climate and resource consumption.

[RSnake: None of this investment will go to Europe by the way. It’s all going to stay here, as long as we can keep our regulator’s dirty hands off it.]

Source: https://www.bbc.com/news/articles/cz0mlrx0jxno

Nellis Air Force Base has implemented a new automated asset tracking system to improve its munitions and logistics management, significantly reducing the manual labor required for inventory tracking. The new technology, which uses 5G passive labels and smart tags, has led to a dramatic decrease in man-hours and enhanced operational efficiency, with potential applications across various Air Force operations.

  • Implementation of a new automated logistics system at Nellis Air Force Base.

  • Significant reduction in manual labor and increased efficiency in asset tracking.

  • Potential for system application across multiple Air Force operations.

[RSnake: Yeaaaah…. but unless you can prevent it from being read at a distance, it also allows adversaries to know what is being shipped, where and who manages the logistics, when they check the logistics, and where logistics are held. I’m not a massive fan of this tech, even if it does save some time. There are lower-tech solutions, like bar codes/QR codes, that could easily do the same thing without the radio frequency.]

Source: https://www.supplychainbrain.com/articles/40611-a-us-air-force-base-automates-and-streamlines-asset-tracking

Research on self-healing machine learning systems is advancing, introducing a framework for autonomous adaptation to handle performance degradation from shifting data environments. The proposed self-healing approach utilizes large language models for diagnosing issues and implementing corrective actions, demonstrating its effectiveness in maintaining model integrity in real-world applications.

  • Self-healing machine learning systems can autonomously diagnose issues affecting their performance.

  • The framework utilizes large language models to propose and evaluate corrective actions based on the identified problems.

[RSnake: I built some of this tech almost 30 years ago. Amazing it’s not more common.]

Source: https://arxiv.org/abs/2411.00186

A significant breach of U.S. telecommunications companies by a Chinese cyber espionage group has been identified, with major implications for national security. The hack is believed to have compromised sensitive information and communications of prominent political figures and U.S. officials. Investigations are ongoing, and the scale of the breach is reportedly unprecedented.

  • China's cyber espionage has targeted major U.S. telecom companies, including Verizon and AT&T.

  • The breach raises serious national security concerns regarding the access to communications of U.S. officials.

[RSnake: I would hardly call it the most serious breach ever. But it’s bad, yes. I think Mr. Rubio has a failure of imagination. Trans-pacific fiber is likely been tapped and monitored for years.]

Source: https://www.dailywire.com/news/rubio-chinas-hack-of-u-s-telecom-companies-most-serious-breach-ever

Multiple security vulnerabilities have been identified in all Nvidia GeForce GPUs, with attackers able to gain access to systems and execute malicious code. Nvidia has issued an urgent warning advising users to update their drivers to mitigate these high-severity flaws affecting various GeForce-related software on both Windows and Linux platforms.

  • Urgent driver updates are required for all Nvidia GeForce GPU users.

  • Eight security vulnerabilities have been classified as high severity, posing significant risks to system security.

There have been significant cybersecurity incidents recently, including a major ransomware attack on UnitedHealth that compromised data for 100 million people. Sophos released a report on a five-year campaign against Chinese APT groups targeting network devices, while Russian hackers were sentenced for their involvement in cyber crimes. Additionally, North Korea appears to be collaborating with criminal ransomware groups, marking a notable shift in their cyber activities.

  • UnitedHealth confirmed that a ransomware attack affected healthcare data for 100 million people.

  • Sophos documented a five-year investigation into sophisticated attacks from Chinese APT groups focused on critical infrastructure.

  • North Korea's Andariel group has begun partnering with ransomware-as-a-service providers, indicating a shift in their cyber strategy.

A critical vulnerability has been discovered in a photo app on Synology network-attached storage devices, potentially exposing millions of these devices to attacks that could lead to data theft and ransomware infections. The flaw allows attackers to exploit the app without user interaction, gaining root access to execute malicious code directly over the internet.

  • A zero-click vulnerability in Synology's photo application could allow unauthorized remote access to sensitive data.

  • Research indicates that many Synology devices, including those used by organizations such as law firms and police departments, are potentially vulnerable.

[RSnake: I never enable these types of services on NAS devices, but if you do, make sure you patch up!]

Source: https://www.wired.com/story/synology-zero-click-vulnerability/

A significant scam campaign is targeting LastPass users through fake reviews promoting a fraudulent customer support phone number. This number leads individuals to a malicious site where scammers can gain remote access to their computers, compromising personal data. The same phone number is linked to multiple large companies, indicating a broad and organized effort to exploit users.

  • Scammers are using fake LastPass customer support numbers to facilitate remote access to victims' computers.

  • The scheme is part of a larger campaign affecting multiple well-known companies, indicating a widespread threat.

Canada is facing significant cyber threats from state-backed actors linked to the People's Republic of China, who have been compromising government networks for five years. The Canadian Centre for Cyber Security has identified these cyber operations as highly sophisticated and warns that attackers may attempt further intrusions, particularly as tensions escalate between the West and China.

  • Chinese state-backed actors are the most urgent cyber threat to Canada.

  • At least 20 Canadian government entities have experienced breaches by these actors.

The latest U.S. jobs report indicates that only 12,000 jobs were added in October, significantly below the expected 100,000, marking the lowest monthly gain since December 2020. This report also included downward revisions for job growth in August and September, revealing a total loss of 112,000 jobs compared to previous estimates. The unemployment rate is currently at 4.1%, with 7 million individuals unemployed, which is higher than the same period last year.

  • Only 12,000 jobs were added in October, the lowest since December 2020.

  • The unemployment rate stands at 4.1%, with 7 million people unemployed.

  • Job losses occurred in manufacturing and temporary help services due to a Boeing strike and hurricanes.

[RSnake: Everyone is worried, and automation continues to make hiring seem like a bad choice - especially at the board level. I heard one friend say that their board is eager to find ways to stop hiring at all, and all new hires need to be first put through the rubric of “can it be automated” first.]

Source: https://www.dailywire.com/news/disaster-final-jobs-report-before-election-shows-just-12000-jobs-added-in-october

Intel has reported a $16.6 billion quarterly loss, the largest in its history, primarily due to significant charges related to asset valuation and workforce restructuring. The company is facing challenges in profit margins while attempting to catch up in manufacturing technology amidst a declining stock price and market value.

  • Intel's loss for the third quarter totaled $16.6 billion due to various financial charges.

  • The company is restructuring and cutting over 15,000 jobs in response to its financial difficulties.

A push is underway to revitalize the United States' manufacturing sector amid concerns over supply chain resilience and national security. Advocates emphasize the need for government support and educational initiatives to address labor shortages and promote domestic production over offshore manufacturing.

  • The U.S. is facing challenges in its domestic manufacturing capacity, which impacts national security and supply chain stability.

  • Proposals include establishing a Defense Industrial Base Agency to support smaller manufacturers and suggesting increased educational focus on manufacturing careers for youth.

[RSnake: I think the people who need education are our representatives, actually.]

Source: https://www.supplychainbrain.com/articles/40610-a-call-for-reinvigorating-the-us-as-the-worlds-manufacturing-superpower

Automakers are facing pressure to create environmentally sustainable vehicles while managing complex global supply chains. Renault has implemented a control tower system to enhance real-time visibility in parts transportation, leveraging AI and machine learning technology from partners to optimize logistics and production operations. This initiative aims to improve efficiency, meet sustainability goals, and mitigate disruptions in their supply chain.

  • Renault implemented an AI-driven control tower to optimize supply chain logistics.

  • The new system helps Renault reduce costs and improve delivery times, supporting sustainability targets.

[RSnake: The problem is they aren’t very popular. Or at least not anywhere near popular enough to ditch the gasoline and diesel variants entirely.]

Source: https://www.supplychainbrain.com/articles/40609-renault-group-acquires-a-supply-chain-control-tower-to-manage-transportation-in-europe-and-beyond

The ultra-wealthy in the US have a unique tax position, with much of their wealth invested in stocks that aren't taxed until sold, and this has implications for tax policy.

  • The current tax system in the US may not be equitable for the ultra-wealthy, who can avoid paying taxes on most of their wealth until it's sold.

  • Taxing the top 1 per cent could be a key aspect of addressing income inequality and ensuring that everyone contributes to the system.

[RSnake: Correct, they aren’t sold, ever, ideally. They take out loans on the proposed value.]

Source: https://www.ft.com/content/4d8740dc-a092-41df-925e-761f6e37d6a3

Traders and investors are preparing for heightened volatility and increased trading volumes in bond and currency markets ahead of the upcoming US presidential election. Market makers are adjusting their risk exposures and logistics to ensure liquidity and minimize disruptions as they anticipate significant market swings in the wake of the election results.

  • Traders are bracing for a long period of high trading volumes and volatility.

  • Market makers are cutting back risk exposures and logistics for anticipated election-related market movements.

[RSnake: In other words, tomorrow will be a heavy trading day.]

Source: https://www.ft.com/content/8fce4fc5-c2e7-474a-9053-55c749aca88a

Berkshire Hathaway has liquidated a significant portion of its holdings, particularly reducing its stake in Apple by 70% as part of an unprecedented selling spree, resulting in a record cash position of $325 billion. The company's strategy reflects a cautious stance in a perceived overvalued market, with Buffett emphasizing the absence of attractive investment opportunities and decreasing his holdings in other stocks like Bank of America.

  • Berkshire Hathaway's cash reserves have reached a record high due to substantial sales of stock.

  • Warren Buffett is strategically reducing holdings in stocks he views as overvalued, particularly Apple.

[RSnake: They expect tax hikes. That means they believe whoever comes next will want to push more taxes, or he wants to hedge against that possibility now while the timing is good.]

Source: https://www.zerohedge.com/markets/buffett-calls-top-berkshire-dumps-100-million-apple-shares-unprecedented-selling-spree

Nvidia is set to replace Intel in the Dow Jones Industrial Average, marking a shift in the semiconductor industry. This change reflects Nvidia's dramatic share price increase of over 170% this year, while Intel's shares have plummeted by more than half, amid growing competition and manufacturing struggles.

  • Nvidia is experiencing rapid growth in the artificial intelligence sector.

  • Intel is facing significant challenges with market share and manufacturing.

[RSnake: Not with those vulns! Gotta get on top of those if they want to stay ahead.]

Source: https://www.cnbc.com/2024/11/01/nvidia-to-join-dow-jones-industrial-average-replacing-intel.html

Dockworkers in British Columbia are planning a strike starting November 4, 2024, which could disrupt operations at Canada's largest ports, including Vancouver. The BC Maritime Employers Association has threatened a lockout in response to the strike notice, which could halt significant trade estimated at C$800 million per day. This labor dispute follows previous strikes this year that impacted North American transportation and logistics sectors.

  • Dockworkers issued a strike notice threatening operations at Vancouver and Prince Rupert ports.

  • A potential lockout by employers could disrupt C$800 million in daily trade.

[RSnake: Not a good situation for Canada, just like it wasn’t for us. Thankfully, we got to a conclusion quickly, though. But that said… the next article below points to the fact we may not be out of the woods entirely.]

Source: https://gcaptain.com/?p=216569

U.S. shippers are diverting shipments to West Coast ports due to uncertainty surrounding contract negotiations with dockworkers, who may strike again if no agreement is reached by January. The International Longshoremen's Association has tentatively agreed to wage increases but left unresolved issues regarding automation, which could threaten jobs and impact port operations.

  • Shippers are avoiding East and Gulf Coast ports due to fears of potential strikes.

  • Negotiations about automation remain contentious between labor unions and employers.

[RSnake: They really can more or less shut down International trade if we aren’t careful.]

Source: https://gcaptain.com/?p=216538

Boeing's union workers will vote on a new pay offer that includes a significant raise and a $12,000 bonus. The company has been impacted by a strike that began in September, leading to slow production and major financial losses. Boeing is also under scrutiny from the FAA for safety compliance issues amid plans for workforce layoffs.

  • Boeing has proposed a new pay offer to union workers including a bonus.

  • The company is facing significant financial difficulties and scrutiny from safety regulators.

[RSnake: It’s amazing how Boeing continues to stay in the news virtually every week with more bad news. I honestly have no bone to pick with them and wish them the best, but it’s striking how bad their press has been the last few months.]

Source: https://www.supplychainbrain.com/articles/40618-new-offer-from-boeing-endorsed-by-union-awaiting-vote

The Pentagon's inspector general reported that Boeing overcharged the U.S. Air Force nearly $1 million for C-17 cargo plane spare parts, including an 8,000% markup on soap dispensers. Boeing has faced scrutiny in recent years, including a recent felony count of conspiracy to defraud the government and financial losses exceeding $6 billion in the last quarter due to production issues and ongoing strikes.

  • Boeing marked up soap dispensers by 8,000% and was found to have overcharged the Air Force for spare parts.

  • Boeing is currently facing federal investigations and financial losses while undergoing significant layoffs.

[RSnake: Like this. It feels like they need to get a full reset from some PE firm somewhere.]

Source: https://fortune.com/2024/11/01/boeing-markup-soap-dispensers-c17-8000-percent-air-force-overcharges/

A significant trend is emerging where companies are increasingly adopting AI technologies for various hiring processes. By 2025, it is projected that up to 70% of companies will utilize AI tools for tasks such as résumé screening, conducting interviews, and onboarding.

  • 70% of companies are expected to use AI for hiring by 2025.

  • AI is being used in recruitment processes, including résumé screening and interviews, but may introduce bias.

[RSnake: Think of how many jobs that replaces. In coding, I am getting an approximate 3x speed boost. That’s two people I don’t need to do the same work. And that is at my level. At junior levels, it could be 10x speed boosts.]

Source: https://www.fastcompany.com/91220282/70-of-companies-will-use-ai-for-hiring-in-2025-says-new-study

Thanks so much for reading, and once again, please forward this newsletter to anyone you think should be reading it. It’s how the newsletter grows, how I know you love it, and encourages me to keep going. I’d really appreciate it!