RSnake Report 20240924

Wagner is back, Lebanese citizens to evac, etc.

Author

Robert "RSnake" Hansen
September 24, 2024

Table of Contents

Hello, and thanks for reading! I am writing this from Europe, at the opening of Oktoberfest, and at a very interesting marketing conference. While Oktoberfest is a lot of fun, and hanging out with good friends is worth its weight in gold, I can report having a hangover so shhhhh… stop reading so loudly.

“Oktoberfest in Munich”

Speaking of being loud, let’s talk about the explosive news in Russia and Ukraine. There is much scrutiny on how the ammo was stored in Russian ammo depots. It’s worth thinking through how wildly dangerous it is to have ammo stored above ground at all, let alone uncovered and close enough for fires to spread. It points to dangerous unprofessionalism in their ranks. It’s not just the ammo that is being destroyed. In some cases, the fires spread and catch nearby equipment ablaze, like the Tikhoretsk airbase. Why critical gear is stored near above-ground ammo is beyond me. Some of these detonations are seriously amazingly large, like the large explosions recorded in the Krasnodar region.

“Air Base on fire”

Do you recall the Wagner group? The ones that marched on Moscow to no avail and had their leader killed shortly afterward, to no one’s surprise? The ones who got redeployed and left Ukraine. Yeah, that group. Well, their headquarters have been destroyed. Why would they have headquarters in a war zone if they weren’t involved in the war anymore? Welll…. It turns out there is evidence that they are back in the conflict. That’s not a huge surprise, as there is a severe shortage of professional soldiers in Russia.

“The Wagner Group”

We know that because other forces are being pushed into the conflict. The very last aircraft carrier that Russia had apparently no longer needed her crew. They’ve been deployed into mechanized combat roles. Which leads me to a point I have wanted to talk about for some time - the survivability of mechanized units in Ukraine vs Russia. If you notice, there is a lot of footage of when Western armor is hit the crew manages to escape the wreckage. The damage is done, but the crew lives. That’s a huge win.

“the crew seems to have safely evacuated”

You might be thinking that they’re losers, and that is not a good thing. Clearly, the loss of the armor is significant, but the fact that the crew now has actual battle experience and knows what getting hit is like and how it happens is amazingly useful. That crew is significantly more experienced than a crew that hasn’t survived an attack. That Russia lost most of its crews means that there are very few professional veterans. It’s hugely useful to have lower attrition, as the memories from those combat situations can be replayed to other teams to broaden knowledge and improve survivability through better tactics, advice on improving the armor, etc.

Russia just plans to outspend this war of attrition. There are two pieces of evidence to that end. The first is that Russia flatly declined the peace accord with Ukraine. It’s hard to find peace when they won’t even show to the meeting. Secondly, there is news about their budget estimates for 2026 (and here), and there is a massive spending increase for military. It is clear they at minimum plan to modernize their military, but more likely they will push the conflict for at least a few more years.

“Russia continues to prioritize war”

It is clear there is a bit of a brain drain in Russian defense. There was a 4th failed missile launch of the Russian Satan 2 missile. This appears to also have destroyed the launch facility as well. It’s not clear how far this puts them back, but I don’t think this missile system is a threat to anyone other than Russian engineers at this point.

“complete failure”

Onto European news. The first was some footage of Polish border guards getting into conflict with migrants coming in from Belarus. These are claimed to be “Arab migrants” but either way, it is clear that Poland is on the front lines in a different way. I think border defense is going to become an extremely big deal over the next handful of years for a great many countries in Europe.

The UK is field testing and plans to deploy directed energy weapons by 2026. Like we talked about before and Israel knows, this is not a first line of defense, this is virtually the last line of defense… the last being armor. The reason being, this only works line of sight, vs missiles which can go over the horizon or over tree-lines/mountains, etc. But it is still very cool tech to keeping costs low for defense. All it takes is power.

“Directed Energy Weapon”

In China, it appears that stocks are net negative since 1993. Quite a few years back I sat through a number of meetings where traders wanted to bet against Chinese stocks but were worried that the CCP would hunt them down. That was because they wanted to go public with the fact that many Chinese stocks were over-inflated with fake revenue numbers, not based on real sales which was obvious if you look at the real books as opposed to the reported books. So to me this is not even slightly a surprise, but it does mean that investors now have provable numbers that show there is no upside in being in Chinese markets. Quite the opposite actually.

“return on Chinese stocks since 1993 is negative”

Onto the middle east, where Hamas and Hezbollah are still in conflict with Israel. One thing I thought was interesting was an informational cartoon that was used to explain what Palestinians can do to stop people from getting in the way of Hamas operations. It was quite professionally done for being output from a terrorist organization and shows how important social coercion is for Hamas to remain operational.

“Pro-Hamas Cartoon”

More Hezbollah positions are being hit in Lebanon. There were also a number of larger targets being hit, like an ammo depot (another video here and pictures here). What was fairly interesting was that at least in one case the Israelies appear to be using bunker buster munitions - likely to hit deep underground where the tunnel networks house militants or munitions.

“wave of Israeli airstrikes”

A rocket depot was hit, creating a huge explosion. And there was also some footage of what appears to be a suburban building that shows secondary explosions. That means that Hezbollah is storing munitions amongst the civilian population. It’s not clear if that is long-term storage or not, but either way, that is extremely dangerous for the unwitting people who live nearby. Israel sent a warning to residents in southern Lebanon to evacuate if they live near Hezbollah. This explains why.

“secondary explosions”

It’s not all good news for Israel operations. While Iron Dome is definitely doing its job, and saving countless Israeli lives, a few missiles are landing in Israel with a handful of injuries. Iron Dome is easily one of the best investments Israel could have made, and it shows just how vital these systems are in modern combat operations. It may hint at why the United States is wary of sending too many over to Ukraine - we jealously want to hoard them. We may need them in future conflicts with China.

“Shot and Chaser”

Also worth mentioning is that Egypt is buying Chinese fighters. It is starting to show who is going to be on which side of a future conflict in a greater war if things expand outside of a regional conflict. One one side is the US, Western Europe, Israel, Japan and a handful of countries in the pacific, vs China, Russia, North Korea, and likely some Muslim countries like Iran and Egypt. This is especially odd due to the Chinese genocide of the Muslim Uyghurs.

“Vigorous Dragon”

Lastly, a US oiler ran aground. The USNS Big Horn which is a replenishment oiler, is taking on water. It’s not clear how this happened, but hopefully, it can be repaired quickly, as it appears it is the only one deployed to support the USS Abraham.

Okay, onto the articles!

The US is sending additional troops to the Middle East due to escalating violence between Israel and Hezbollah, with tensions rising towards a regional war. The US currently has 40,000 troops in the region. The State Department warns Americans to leave Lebanon as the risk of a wider conflict increases.

  • The US is sending additional troops to the Middle East due to escalating violence between Israel and Hezbollah

  • The US currently has 40,000 troops in the region

  • The State Department warns Americans to leave Lebanon as the risk of a wider conflict increases

It’s not clear what the thinking here is exactly. Do we expect the Israeli incursion into Lebanon to spark a larger conflict that we want to be involved in? Iran hasn’t escalated anything and don’t appear to ramping up operations. So unless Israel sends a force into Iran, I don’t see that conflict expanding, sans whatever nuclear arsenal, needs to be destroyed.

Hundreds of national security experts have endorsed Kamala Harris' election, citing a need for serious leadership over what they see as vengeful impulsiveness from Donald Trump. The group, comprised of Democrats, Republicans, and Independents, includes former Secretaries of Defense, CIA Directors, and cabinet secretaries. They argue that reelecting Trump would threaten the democratic system and undermines faith in elections.

  • Hundreds of national security experts have endorsed Kamala Harris' election.

  • The group, comprised of Democrats, Republicans, and Independents, includes former Secretaries of Defense, CIA Directors, and cabinet secretaries.

  • They argue that reelecting Trump would threaten the democratic system and undermine faith in elections.

The IRS union also endorsed her.

Intense Israeli bombardment of southern Lebanon has caused thousands to flee, with at least 1,645 people injured and widespread destruction reported. The Israeli military claims to be targeting Hezbollah weapons sites, while the group has been firing rockets into Israel in support of Palestinians. The conflict has resulted in significant displacement on both sides of the border.

  • Thousands flee southern Lebanon due to intense Israeli bombardment

  • Israeli military targets Hezbollah weapons sites, claims innocence for prior attacks on Lebanon

  • Hezbollah fires rockets into Israel in support of Palestinians

I think what they should say is “the Iranian proxy army formerly known as Hezbollah” because that is what is actually happening.

A looming dock worker strike could shut down five of North America's busiest ports, causing massive supply chain issues and potentially impacting consumers past Election Day. The Biden administration has the power to stop strikes that threaten national security or severely impact the economy, but has chosen not to intervene in this case.

  • A potential dock worker strike could shut down five of North America's busiest ports.

  • The Biden administration has chosen not to intervene in this case.

  • A strike would likely have significant ripple effects on global trade and economies.

This won’t help inflation at all. There is another article about it here.

Iran is facing a severe economic crisis, characterized by high inflation and significant housing unaffordability. Most Iranians are struggling to meet housing costs, which consume a large portion of their income, leading to widespread poverty and a long wait for homeownership for many families.

  • Iran ranks as the seventh most unaffordable country for housing relative to income.

  • Economic sanctions and inflation have driven property prices up, leading to a significant portion of the population living below the poverty line.

I bet investing in a war in Lebanon is helping out tremendously… 🙄 

Federal agents have boarded a vessel managed by the same company responsible for the containership that struck the Francis Scott Key Bridge in Baltimore, killing six people. The US Justice Department has filed a civil suit against the company's owner and manager to recover over $100 million in costs incurred by the United States in responding to the disaster.

  • The US Justice Department has filed a civil suit against the owner and manager of the containership that struck the Francis Scott Key Bridge, seeking over $100 million in damages.

  • Federal agents have boarded a vessel managed by the same company responsible for the containership that struck the Francis Scott Key Bridge in Baltimore, killing six people.

The FBI is claiming that the ship had known vibration issues that caused it to lose power and it wasn’t fixed. That’s gross negligence.

The situation in Sudan has escalated, particularly in the city of el-Fasher, where reports indicate a full-scale assault by the paramilitary Rapid Support Forces (RSF). The ongoing conflict, which began in April 2023, has resulted in over 14,000 fatalities and has triggered a significant displacement crisis, with worsening violence threatening to exacerbate intercommunal strife in the Darfur region.

  • UN Secretary-General Antonio Guterres has called for an immediate halt to the RSF's attacks in el-Fasher.

  • The conflict has led to the world's largest displacement crisis, with hundreds of thousands of civilians at risk of mass violence.

Russia has suffered significant losses in ammunition following a Ukrainian drone strike on a storage facility in Toropets, with an estimated 750,000 shells destroyed, equivalent to a 2-3 month supply. This loss is expected to impact Russian forces on the front in the coming weeks. Estonia's intelligence chief reported that additional supplies were transported to the depot shortly before the attack.

  • Ukrainian drone strike destroyed an estimated 750,000 shells in Toropets, Russia.

  • The loss is expected to impact Russian forces on the front for 2-3 months.

Maybe they should stop storing ammo above ground. 🔥 

Russia has announced it will not attend the second Peace Summit, with Maria Zakharova stating that the preparation for the summit is a manifestation of fraud by the Anglo-Saxons and their Ukrainian puppets. Russia's Foreign Ministry spokesperson also stated that Moscow is prepared to discuss genuinely serious proposals for resolving the conflict in Ukraine, but will not negotiate with terrorists. The Russian government has been critical of the Peace Formula proposed by Ukraine, describing it as an ultimatum.

  • Russia announced they will not attend the second Peace Summit.

  • Maria Zakharova stated that Russia views the preparation for the summit as a manifestation of fraud by the Anglo-Saxons and their Ukrainian puppets

  • The Russian government is critical of Ukraine's Peace Formula, describing it as an ultimatum

The one thing to Russia’s defense on this, is that it would break the narrative about Ukraine being full of literal Nazis to sit with them and break bread. In a war dressed up as a moral imperative it would seem odd to suddenly be okay with the enemy.

The United States has recognized the United Arab Emirates as a major defense partner, which will strengthen military cooperation despite tensions over the conflicts in Gaza and Sudan. President Biden and UAE President Sheikh Mohamed bin Zayed discussed military collaboration and humanitarian issues amid escalating violence in the region, including significant casualties in Gaza and the humanitarian crisis resulting from the war in Sudan.

  • The US has designated the UAE as a major defense partner to enhance military ties.

  • There are escalating tensions in the Middle East due to conflicts in Gaza and Sudan, with significant humanitarian concerns.

Good news for the US and Israel.

UN officials are calling for an end to atrocities in Gaza as Israeli raids kill dozens and humanitarian aid is severely restricted, with over 2.1 million residents in urgent need of food and healthcare.

  • Israeli military attacks continue to cause significant harm to civilians in Gaza

  • Humanitarian aid is severely restricted, with over 2.1 million residents in urgent need of food and healthcare

  • Nearly 300 humanitarian aid workers have been killed since the start of the war between Israel and Hamas

Pointless grandstanding… but it might be a first wave before we start seeing sanctions against Israel by UN members.

Vladimir Putin's government is reportedly targeting and harassing ordinary people, including those who fled Russia to avoid the war in Ukraine, across the world. Many have been subjected to surveillance, kidnappings, and other forms of repression, often with the tacit consent or inadequate prevention of the countries they have fled to. This has resulted in a number of reported cases of individuals being detained, harassed, or worse, under Moscow's watchful eye.

  • Hundreds of thousands of Russians who left their homes due to Putin's war are being targeted and harassed by the Kremlin across the world.

  • Ordinary people, including those in exile, are being subjected to surveillance, kidnappings, and other forms of repression by Russia's intelligence services, often with little consequence.

  • Many countries have failed to adequately prevent or respond to these incidents, allowing the Kremlin to continue its campaign of intimidation and harassment against Russian exiles.

The Kremlin has operatives all over the world. One of the things they specialized in was human-intelligence gathering, and to be good at that, you need spies on the ground. So it’s no surprise those same spooks can act as a remote enforcement arm as well.

California's Governor Gavin Newsom has signed nine AI-related laws aimed at regulating artificial intelligence technology, with a total of 38 bills currently under consideration. These new laws address various issues, including the regulation of AI-generated voice robocalls, the prohibition of AI deepfake nudes, and guidelines for the responsible use of AI in media and political advertisements.

  • Governor Newsom has signed nine laws related to AI regulation.

  • The laws target issues such as AI-generated robocalls, deepfake nudes, and AI use in political campaigns.

I am not a fan of ultra-specific legislation like this because things keep changing. Deep-fake robo-call legislation is too specific. Why not just have rules about disclosing that it is a robo-call period, for instance? Either way, this is the kind of thinking that makes compliance extremely difficult for companies. The SAG one, for instance, more or less shuts down anything like Stable Diffusion or DALL-E, which are all trained on likenesses of famous people. Knowing who is and isn’t well known is very difficult and if you have to carve each of them out and individually get compliance, you’re talking about a near impossibility. This should fall into the public domain realm. Either way, what a mess.

OpenAI CEO Sam Altman predicts that superintelligent AI could emerge within a few thousand days, emphasizing the potential for significant advancements in technology and global prosperity driven by AI. He highlights the importance of building infrastructure to ensure equitable access to AI's benefits while acknowledging possible labor market disruptions. Altman's vision portrays the dawning of an 'Intelligence Age' akin to previous transformative eras in human history.

  • Sam Altman forecasts the arrival of superintelligent AI within a decade.

  • He stresses the need for AI infrastructure to ensure broad accessibility.

  • Altman views this era as the beginning of a transformative phase in human development.

Weird turn of phrase there. I think he means years, but whatever. This seems correct to me, though, based on the rate of improvement in the models and the huge dollars racing towards AGI. It’s already smarter than average people on most knowledge metrics, so it won’t be long before reasoning improves. Only people with domain specialty that can best LLMs currently, and this, right now, is the worst LLMs will ever be.

A malicious software developer kit has been found to be responsible for infecting two Google Play apps with malware, resulting in 11 million downloads. The malware, known as Necro, allows attackers to upload user data and download malicious code that can run on infected devices with elevated system rights. Researchers believe a similar tactic was used five years ago, when a legitimate Android app was found to be infected with the same malware family.

  • A malicious software developer kit has been found to be responsible for infecting two Google Play apps with malware.

  • The malware, known as Necro, allows attackers to upload user data and download malicious code that can run on infected devices with elevated system rights.

MIT researchers have developed a novel AI-based estimator for medication manufacturing that accelerates the process of determining particle size distribution by 60 times, reducing analysis time from 15 seconds to just 0.25 seconds.

  • MIT has developed a faster method for estimating particle size distribution in medications.

  • The new technique allows real-time monitoring, potentially improving pharmaceutical manufacturing efficiency.

A theoretical physicist has developed a breakthrough in photonics research aimed at creating faster and more efficient processors essential for AI and quantum computing. The startup, Ephos, has secured $8.5 million in funding to establish a manufacturing facility in Italy, with backing from NATO and the European Innovation Council, as it seeks to address the growing demands for computational infrastructure. This initiative reflects a broader global focus on enhancing technological resilience in response to geopolitical and economic challenges.

  • Ephos is developing glass-based quantum photonic circuits to improve data processing efficiency.

  • The startup has received significant funding and support from NATO and European entities to enhance computational infrastructure.

There has been quite a bit of work on photonics and pre-computing all of the data of a convolutional model with prisms - sorta the photonic version of an ASIC. There will likely be some useful innovations here, but the real problems aren’t with the speed of moving bits around; the problem is doing work on them, so the faster we can get to a fully capable system that run calculations with photons, the faster we’ll get to a useful photonic computing system.

Letta, an AI startup from UC Berkeley, has emerged from stealth mode with technology that enables AI models to retain memory of users and conversations. The startup has secured $10 million in seed funding and aims to provide tools for building stateful AI agents while positioning itself as an open-source alternative to existing solutions.

  • Letta has developed a system that allows AI models to manage long-term memory, addressing a critical limitation of current models.

  • The company has received significant seed funding and is backed by notable investors, signaling strong interest and potential in its technology.

There are a lot of people working on LLMs, not a lot of people working on memory. Memory is the thing that makes LLMs useful, so I am bullish on tech like this. It’s not clear who the winner will be, though. It’ll likely end up having to be a graph database with N-dimensional space.

Next-generation radio access networks are being integrated with artificial intelligence, and researchers have proposed a deep learning model to optimize spectrum access and power allocation.

  • The integration of AI in next-generation radio access networks is poised to feature an AI-native interface for wireless cellular networks.

  • A new deep learning model called OpenRANet has been proposed to optimize spectrum access and power allocation in these networks.

People's personal data is being used to train artificial intelligence models without explicit consent. Social media platforms are updating their terms of service to clarify how user information is being used. Some users may opt-out of having their data used for AI training.

  • Microsoft-owned LinkedIn uses personal user data to train artificial intelligence models without first informing its members.

  • LinkedIn has updated its terms of service to include language clarifying how it uses user information, including for training AI models used for content generation and security measures.

  • Users in certain regions, such as the European Union, may opt-out of having their data used for AI training, while others will be automatically included.

This is now illegal in California. Interesting legal times ahead. I think that copyright law is incongruent with LLMs. It’s not clear who will win, but I suspect the machines will - there is too much utility in having them work well, and the only way to make them work well is to feed them more data.

Researchers have developed a robust control system for close proximity quadcopter flight using residual reinforcement learning, allowing for stable and accurate flight in challenging conditions such as in-air docking. The system does not require communication between quadcopters, reducing bandwidth requirements and enabling adaptation to changing system models. The method has been validated through simulation and real-world testing, demonstrating improved performance compared to traditional controllers.

  • A robust control system for close proximity quadcopter flight has been developed using residual reinforcement learning.

  • The system does not require communication between quadcopters, reducing bandwidth requirements and enabling adaptation to changing system models.

  • The method has been validated through simulation and real-world testing, demonstrating improved performance compared to traditional controllers.

Cloudflare plans to launch a marketplace allowing website owners to sell access for AI models to scrape their content within the next year. This initiative aims to provide small publishers with more control and potential revenue from their content, addressing the challenges they face in an AI-dominated landscape where scraping is prevalent without compensation.

  • Cloudflare is launching a marketplace to help website owners monetize access for AI models to scrape their content.

  • The initiative aims to give smaller publishers more control and revenue opportunities in the wake of widespread AI scraping.

You can use models like Llama3.1 with CloudFlare right now, today. I haven’t analyzed the cost, but it is an area I want to dig into and further understand how it works with worker models.

Kaspersky antivirus customers in the U.S. have been automatically transitioned to UltraAV antivirus software following a ban on Kaspersky's products due to national security concerns. This transition occurred without explicit consent from many users, causing dissatisfaction among customers who were unaware of the update.

  • Kaspersky's antivirus software was banned in the U.S., leading to mandatory updates for customers.

  • Many users were frustrated by the lack of consent for the automatic installation of new software.

Not a surprise. They were often alleged to be in bed with the Kremlin.

Microsoft has eliminated hundreds of thousands of unused applications and millions of inactive tenants within its cloud environment as part of its Secure Future Initiative. The company has also deployed new devices for software production teams, implemented video-based identity verification, and updated processes for generating and rotating access token signing keys.

  • Microsoft has eliminated hundreds of thousands of unused applications and millions of inactive tenants within its cloud environment as part of its Secure Future Initiative.

  • The company has also deployed new devices for software production teams, implemented video-based identity verification, and updated processes for generating and rotating access token signing keys.

  • Microsoft's Secure Future Initiative is the largest cybersecurity engineering effort in history, with the equivalent of 34,000 full-time engineers dedicated to it.

One of the first public instances where reduction of attack surface has been successfully accomplished. Most companies increase technical debt and surface area, through HR attrition and acquisitions.

Cryptographic errors were identified in the Ada Web Services Library used by eVACS, a direct recording electronic voting system, affecting the security of the system. The errors were disclosed to the relevant electoral authorities and made publicly available in March 2024. Remediation efforts are likely underway as a result of this discovery.

  • Cryptographic errors were identified in the Ada Web Services Library used by eVACS.

  • The errors were disclosed to the relevant electoral authorities and made publicly available in March 2024.

  • Remediation efforts are likely underway as a result of this discovery.

No, no, no. This is wrong. I was assured that election tallying systems were perfectly safe. This must be fake news. 🤣 To be fair this is an Australian system, but still. Same same. Btw, I have also found similar issues with Ukrainian voting systems, California’s voter registration systems, etc.

A large-scale malware operation, attributed to a cybercriminal group called 'Marko Polo', has been discovered targeting users in the cryptocurrency and gaming sectors. The campaign has involved multiple distribution methods and has resulted in significant potential financial losses, affecting thousands of devices and exposing sensitive personal and corporate data on a global scale.

  • Marko Polo's operation includes over thirty campaigns and targets high-value users through diverse malware techniques.

  • The malware has the potential to generate millions in illicit revenue and poses risks to consumer privacy and business continuity.

Companies are using AI voice cloning to narrate promotional tutorials without consent, with no clear legal precedent for unauthorized use.

  • AI voice cloning is being used in product demos and tutorials without the consent of the original speaker.

  • There is no clear legal precedent for unauthorized AI voice cloning, making it difficult to take action against companies that engage in this practice.

Well, there is precedent incoming if they attempt to market to Californian residents. I cannot overstate how wide-sweeping that law will end up being.

Mastercard has announced a $2.65 billion acquisition of Recorded Future, emphasizing the growing significance of cyber threat intelligence (CTI) for enterprise security strategies. Analysts suggest this move aligns with increasing demand for CTI services, projected to reach $11.5 billion in revenue in 2024, driven by a rise in cyberattacks and regulatory pressures.

  • Mastercard's acquisition of Recorded Future indicates a significant investment in cyber threat intelligence.

  • The market for cyber threat intelligence services is expected to see substantial growth in revenue over the next few years.

Big congrats to the Recorded Future team!

Organizations are accelerating their time to value for data security posture management, achieving stakeholder alignment and planning being a key step. Data discovery and classification are foundational for data security, data governance, and data protection, with the first phase of a DSPM deployment taking less than six months for 76% of respondents.

  • Data discovery and classification are foundational for data security, data governance, and data protection.

  • Achieving stakeholder alignment and planning is a key step in successful data security posture management deployment.

  • The first phase of a DSPM deployment takes less than six months for 76% of respondents.

Federal Chief Information Officers (CIOs) have identified cybersecurity, workforce transformation, and artificial intelligence (AI) as their top priorities for the upcoming fiscal year 2025. Challenges such as budget constraints and skills gaps could hinder progress in these areas despite a strong focus on modernizing technology and improving operational efficiency.

  • Cybersecurity and risk management are prioritized by 67% of Federal CIOs.

  • CIOs face challenges related to budget constraints and staffing in implementing their technology goals.

Kaspersky has removed its antivirus software from U.S. customers' computers and replaced it with UltraAV antivirus due to being added to the U.S. Entity List, which restricts U.S. operations. The transition occurred without prior notification to users, leading to concerns over potential malware infections and overall cybersecurity risk. Meanwhile, the U.S. government continues to scrutinize foreign technology providers for national security reasons, including a proposed ban on connected vehicle technology from China and Russia.

  • Kaspersky's antivirus software was forcibly removed and replaced by UltraAV due to national security regulations.

  • Several users reported anxiety and confusion over the abrupt software change, fearing malware infections.

Such a weird decision. I wonder if there was a back-room agreement to do data sharing after the switch. Either way, I would not trust UltraAV… at all.

OpenAI's official account on X has been compromised by cryptocurrency scammers who posted about a non-existent blockchain token, $OPENAI, leading users to a phishing site. This incident marks a continuation of previous phishing attacks on OpenAI's accounts, with a notable increase in cryptocurrency scams reported in recent years, contributing to significant financial losses for consumers.

  • OpenAI's X account was hacked to promote a fake cryptocurrency token.

  • Phishing attacks targeting high-profile accounts have been on the rise, causing substantial financial losses.

A deadly shootout at Wildberries, Russia's largest online retailer, resulted in two fatalities. The incident involved the company's founder, Tatyana Bakalchuk, and her ex-husband, Vladimir. The incident is linked to a controversial merger with an outdoor advertising firm, supported by regional strongman Ramzan Kadyrov, and has drawn a notable silence from the Kremlin amidst ongoing investigations and arrests related to the event.

  • A shootout occurred at the Wildberries office, leaving two dead and seven injured.

  • The conflict is related to a corporate merger and familial disputes over ownership.

Domestic intermodal volumes are not increasing despite growth in international and inland point intermodal moves. Railroads have been unable to gain a larger share of the domestic freight market, remaining around 10% for several quarters. The trucking sector continues to struggle with overcapacity, making rail options less attractive.

  • Intermodal transportation has not gained a larger share of the domestic freight market despite growth in international and inland point intermodal moves.

  • The trucking sector continues to struggle with overcapacity, making rail options less attractive.

  • There are signs that the capacity glut in for-hire trucking is finally coming to an end, which could lead to increased demand for intermodal services.

Advancements in artificial intelligence, particularly towards Artificial General Intelligence (AGI), are leading to significant economic shifts, including a decline in the role of labor and potential issues around productivity gains, job disruption, and income inequality. Eight critical economic policy challenges have been identified, including education, social stability, macroeconomic policies, and global AI governance.

  • AI advancements will change the fundamental structure of economies.

  • Key economic policy challenges include inequality, education, and regulation.

And proliferation… That is what I think a lot of governments are very concerned about. Right now some things are simply out of reach and AGI removes a lot of barriers.

Major tech companies are mandating a full return to the office for employees, reversing previous flexible work policies that allowed remote work. Cisco has announced significant layoffs, reducing its workforce by approximately 5,600 employees after an earlier round of layoffs earlier in the year. Additionally, Qualcomm is pursuing a takeover of rival Intel amid ongoing market shifts in the technology sector.

  • Big tech firms are returning to full in-office work policies.

  • Cisco is executing substantial layoffs, impacting thousands of employees.

  • Qualcomm is attempting to acquire Intel to consolidate its position in the chip market.

The Federal Reserve is expected to cut interest rates by 50 basis points in November, following a recent half-point cut. The decision to adjust rates will depend on upcoming job reports, with a focus on maintaining economic stability and a strong labor market amidst cooling inflation.

  • The Fed is poised to implement further interest rate cuts based on economic data.

  • Analysts predict potential changes in the labor market will influence future Fed decisions.

Global financial markets have experienced significant fluctuations due to ongoing conflicts, interest rate decisions, and economic trends. The global economy is facing challenges related to inflation, recession risks, and the impact of high-interest rates on various sectors. European countries are also navigating issues with taxation, green initiatives, and start-up hubs.

  • The Israel-Hamas war has led to a significant decline in global financial markets.

  • The Fed's high-interest rate era has resulted in a $1 trillion windfall for US banks.

  • European countries are exploring ways to incentivize green pioneers and navigate tax breaks, while also facing challenges related to start-up hubs.

Keep in mind that $1 trillion came from you and me.

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!