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Marco Rubio warns diplomats not to mention the 'kill switch" in American technology
According to a recent cable, U.S. State Secretary Marco Rubio asked diplomats to fight against the idea of a "kill button" on American technology products. This follows the White House's decision to keep foreigners away from America's advanced AI models. The talking points that were distributed worldwide show how U.S. Diplomats are dealing with the international backlash caused by Trump's attempts to control who and how American AI companies release models. The State Department refused to comment, and the White House didn't respond to a comment request. Anthropic was forced to suspend global access to its most advanced models Mythos and Fable after the Trump administration blocked non-U.S. citizens from using them on June 12, citing national security concerns. Asian tech executives used the "disruption" to promote their own alternatives, while European legislators redoubled calls for digital independence. The fallout from the ban lingers even though it was lifted the following month. The U.S. government's desire to police AI products, and possibly yank them from allies' hands at any moment, was heightened by the June 2 executive orders of?Trump, who asked AI companies to submit their models for 30 days to cybersecurity testing before their release. The episode, according to European legislator Christophe Grudler, showed that the U.S. has a "kill-switch" over vital technologies that it is more than willing to use. Aura Salla of the European People's Party (the largest political group in the European Parliament) said that Europe "cannot continue building its tech stack on access that could be turned off overnight by a foreign government." The State Department cable dated July 16 did not refer to Anthropic or specifically to Trump's executive orders or last month's banning of the company, but provided American diplomats talking points designed for countering arguments that have arisen in their wake. The cable stated that "Kill Switch" is not the requirement of a 30-day test window or the suspension of certain uses prior to releasing a new, highly-potent technology. There is no'magic' button on the government's part. This narrative is exaggerated, and it doesn't capture all the nuanced aspects of U.S. Technology Policy." AMERICAN AI SALE PITCH Rubio’s cable urged diplomats to oppose "so-called "digital sovereignty" initiatives. It defined these as?efforts that restrict American tech companies' access to foreign market, subject them localization requirements, or force them follow local rules such as content moderating. Rubio already told American diplomats earlier this year to oppose similar measures against data sovereignty. The cable discussed also how to counter "AI sovereign" arguments. It instructed American diplomats that American AI products were the best available tools and to describe efforts to build rival AI systems from scratch as a waste time and resources. The cable stated that "American AI firms can build large, autonomous AI infrastructure with secure and robust supplies chains that minimize backdoor risks." They build it. It's yours." Edward Fishman, the director of the Maurice R. Greenberg Center for Geoeconomics, at the Council on Foreign Relations said that he understood the safety concerns which led the U.S. Government to impose first restrictions on Anthropic’s models. These can be used to turbocharge complex hacking activities. Fishman, however, said that Trump's administration's tendency to use coercive economic instruments such as tariffs or sanctions against friends and enemies alike made the State Department pitch difficult to sell. He said that European partners were worried that if they became "ultra-reliant" on U.S. frontier AI models, such as those produced by Anthropic or OpenAI, the U.S. might use this against them in the future. Salla, a European legislator, said that Trump's administration had repeatedly threatened countries such as Denmark, creating an atmosphere of distrust that could not be dispelled by rhetoric. She said, "They haven't shown us any evidence that they are reliable business partners." (Reporting and editing by Deepa Babyington, Raphael Satter)
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Wall St futures fall as caution grows ahead of Big Tech earnings
Investors were cautious as they awaited the first batch Big?Tech earnings that will determine whether Wall Street's AI driven rally still has room to run. After months of gains, which lifted the major indices from their lows in March, momentum has slowed as volatility among heavyweight semiconductor stocks has slowed risk appetite. Investors will be looking for new evidence after the bell that the multi-billion dollar AI investments of these companies are paying off. Alphabet is 'under special scrutiny? after the delay in launching a model that was central to their AI ambitions heightened concerns. Ipek Ozkardeskaya is a senior analyst at Swissquote Bank. She said that if Big Tech, which funnels its free cash into the pockets of chipmakers, shows signs of slowing down the pace of their spending, another selling wave could hit the semiconductor industry. In premarket trading Texas Instruments, which is also scheduled to report after close, fell 1.7%, following broader weakness in semiconductor stocks. Geopolitical risk and the heavy earnings schedule set up markets for a potentially volatile week. The Middle East conflict remained in the spotlight as the Houthi militia of Yemen, backed by Iran, threatened shipping and a wider conflict disrupted the two most important energy chokepoints in the world. U.S. Secretary of State Marco Rubio stated that Washington is still willing to discuss an end to Iran's crisis but Tehran "is not serious" in its talks. The oil price hovered around a six-week high, which complicated the outlook for central banks. According to a median forecast of economists in a recent poll, the Federal Reserve will likely keep interest rates steady through the remainder of 2026. However, respondents indicated that the risk of an increase was still high. CME Group’s FedWatch tool revealed that traders are pricing in a probability of more than 70% that the Fed will leave rates unchanged during?next weeks meeting. At 5:39 am. Dow E-minis fell 45 points or 0.09% and S&P E-minis dropped 22 points or 0.29%. Nasdaq?E -minis fell 208.75 or 0.71%. Super Micro Computer, one of the premarket movers, soared 16.8%. The AI server maker announced that it had received more than $60 billion worth of new orders for its fourth quarter and expects to see a gross margin exceeding its previous forecast. (Reporting and editing by Amanda Cooper, Joyjeet Das, and Ragini Mathur from Bengaluru)
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Copper prices rise, but Chinese buyers are wary, and inflation worries arise.
Copper prices rose on Wednesday, after reaching a six-week high the day before due to shortages and falling inventories outside of the U.S. However, gains were capped by resistance from China to higher 'prices and inflation fears. The benchmark three-month copper price on the London Metal Exchange rose 0.1% to $13,894 per metric tonne by 0930 GMT, after reaching its highest level in over six weeks on February 22 at $13,934. Alastair Munro is a senior base metals strategist with broker Marex. He said: "That it stalls before $14,000 reminds all of us that China is not a chasing price, but there on dips." The dollar's rise amid rising crude prices was "some sort of overnight headwind" with rates markets reflecting the inflationary risks. As hostilities in the Middle East escalated, oil prices reached near six-week highs. The dollar index has risen?during the last four sessions?, but was slightly lower on Wednesday. Traders weighed the possibility that Japan would intervene to support the weak yen. The dollar is stronger, making commodities priced in U.S. dollars more expensive to buyers of other currencies. Due to local shortages, the most traded copper contract at the Shanghai Futures Exchange reached its highest level since June 3, reaching?106.760 yuan. Craig Lang, principal analyst at CRU, said that "Traders continue to deliver metal to the U.S. because they are incentivized by the CME and LME import arbitrage before the U.S. decides whether or not to impose tariffs on refined copper." He said that typhoons and smelter maintenance are impacting the supply of copper cathode in China. A tight scrap supply also adds to demand. Yangshan Copper Premium On Wednesday, the, which measures import demand, reached its highest level since November 2022 at $115 per?ton. Other metals saw a 0.7% increase in LME aluminium to $3179 per ton. Zinc rose by 0.9% to $3585.50; lead increased 0.5% to $1877.50; nickel grew 0.3% to $17.135; and tin climbed 0.4% to $54,100. ($1 = 6.7722 Chinese Yuan) (Reporting and additional reporting by Solomon Cefai, Singapore; Editing Leroy Leo).
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Gold reaches two-week highs as investors watch Mideast developments
Gold reached a two week high on Wednesday. This was supported by some technical 'buying' and safe-haven demand. Investors were watching developments in the Middle East, while also preparing for the U.S. Federal Reserve Meeting next week to get clues about interest rate outlook. Gold spot rose by 0.9% to $4.112,29 per ounce at 0811 GMT. It had already reached its highest level since the 7th of July earlier in that day. U.S. gold futures for delivery in August gained 1%, to $4116.80. Safe-haven demand, and the hope that diplomatic efforts between the U.S., and Iran, could lead to a reduction of tensions, are reducing concerns that higher oil costs could fuel inflation and keep interest rates high for longer. The current price rebound is likely to?face headwinds due to volatile energy prices, but the $4,000 an ounce level still provides strong technical support. Marco Rubio, the U.S. secretary of state, said earlier on Wednesday that Washington was willing to negotiate a solution to the Iran Crisis but Tehran wasn't serious about talking. Three oil tankers carrying Saudi crude bound for China and India changed course in the Red Sea after receiving threats from Yemeni Houthis who are aligned with Iran. This pushed up oil prices. Gold prices are down from the record highs reached in January, after the war stoked inflation fears and increased the likelihood of longer-term higher interest rates. Gold is often seen as a hedge against inflation, but high interest rates can make it less appealing. A poll showed that the Fed will likely keep its main interest rate steady until the end of 2026. Markets are pricing in two rate increases by the end of March next year. CME FedWatch Tool data shows that traders now expect a 67% probability of an interest rate increase in September. Silver spot rose by 0.7% per ounce to $59.2135, platinum rose 0.8% to 1,642.74, while palladium grew by 1% to $1,294.19.
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Investors focus on US tech earnings as South Korean shares lose early gains
South Korean shares closed slightly higher on Tuesday, after a sharp rise in the early going. However, caution before key U.S. technology earnings and chip earnings underscored the market's reliance on heavyweight chipmakers. The benchmark KOSPI Index settled 0.7% higher, at 6,797.7, after rising 6.2% during early trading. This was largely due to a 9% increase in AI memory chips maker SK Hynix. SK Hynix reversed its course and ended marginally lower, while Samsung Electronics finished slightly higher. The'sharp swings' highlighted the dominance and power of Samsung Electronics, SK Hynix and other companies that together account for more than half of the KOSPI. These companies can have a major impact on the benchmark by leveraging their products and share prices. Wei Li is the head of multi-asset investment at BNP Paribas Securities in China. The performance of an equal-weighted index would be lower because traditional exporters like shipbuilders and autos, as well as?chemicals, have seen limited upside due to a softer global market. The KOSPI surged in early trading, but the 11th sidecar trading ban in 15 sessions in this month was triggered by it. This highlights the increased volatility caused by the heavy concentration of chipmakers, at the heart of the AI boom. Wall Street's overnight rebound set the tone for Wednesday's rally. Market participants, however, remained focused on Alphabet's results and those of chipmakers Intel and Texas Instruments. Jason Lui is the head of APAC equity derivate strategy at BNP Paribas. He said that after the sharp drop in share prices, which was largely due to valuation, there should be a less crowded positioning going into major tech earnings. Lui explained that this will help investors "better assess the growth prospects of companies in a fundamental way." Other notable stocks included Hyundai Motor, Kia?Corp, and Samsung BioLogics. In the week ending Tuesday, foreigners have invested around 2.71 trillion dollars. However, they remain net sellers for the year with more than $100 billion of?outflows. On the onshore settlement platform the won last traded at 1.478 U.S. dollars, up from the previous day's 1,471.
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Shanghai copper reaches 7-week high due to supply concerns and strong China demand
Shanghai copper prices rose on Wednesday to a seven week high as supply concerns and a 'firm Chinese demand' pushed up the price. London copper fell after reaching a six week peak just a day before. As of 0700 GMT, the most traded?copper?contract at the Shanghai Futures Exchange had risen by 0.94% to 105,820 Yuan ($15.625.65) per metric ton. It had reached its highest level since June 3, at 106760 yuan, earlier in the day. The benchmark three-month copper price on the London Metal Exchange fell 0.57%, to $13,806.5 per ton. This was after it hit a six-week-high on Tuesday. Copper inventories have dropped in LME-registered storage warehouses Warehouses that are SHFE monitored . The Chinese demand is strong, and the market still awaits news about potential U.S. metal tariffs. "Traders continue to deliver metal to the U.S. due to the CME-LME?arbitrage import?ahead of the 'U.S. Craig Lang, Principal Analyst at CRU said that the U.S. would decide whether or not to impose tariffs on refined copper. The Chinese market remained active. The Yangshan Copper Premium On Tuesday, the, which measures import demand, reached its highest level since December 2023, reaching $109 per?ton. Lang explained that typhoon-related maintenance at smelters and the stockpiling of scrap metal due to their impact on the supply are both affecting supply. The tight scrap supply has also increased demand for "copper cathode". The Middle East conflict is also pushing up oil prices. According to economists polled, the U.S. Federal Reserve will keep rates the same for the rest of the year. Copper became more expensive to buyers who used other currencies because the dollar was strong. Aluminium was up by 0.02% on the LME, while?zinc gained 0.23%. Lead fell 0.27%. Nickel rose 0.5%, and Tin climbed 0.2%. The SHFE saw aluminium gain 0.59%. Zinc gained 0.68%. Lead lost 0.88%. Nickel climbed 1.07%. Tin added 0.87%. $1 = 6.7722 Chinese Yuan (Reporting and editing by Subhranshu Sahu).
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Gold reaches two-week highs as Fed outlook and Mideast conflict remain in focus
Gold rose to a?high? of two weeks?on a technical basis?on Wednesday as investors assessed a deteriorating Middle East conflict. They also waited for the U.S. Federal Reserve's meeting next week, which will provide clues about the interest rate outlook. Gold spot rose 0.9% by 0705 GMT to $4,112.70 an ounce, after hitting its highest level since July 7 earlier that day. U.S. Gold Futures for August Delivery jumped 1% to $4,116.90. The escalating tensions in Middle East have pushed up oil prices, stoked inflation fears and increased expectations of interest rate increases. This has led to gold's steepest weekly decline since early June. Tim Waterer is the chief market analyst for KCM Trade. He said that buyers are stepping in to find a bargain after a recent pullback. Meanwhile, hopes of diplomatic progress between Iran and the U.S. also help price movements. Marco Rubio, the U.S. secretary of state, said that Washington was still willing to talk to Iran about a resolution to the crisis. However Tehran did not seem to be serious. After threats by the Iran-aligned Houthis of Yemen, three oil tankers carrying Saudi crude towards Asia reversed their course in Tuesday's Red Sea. This raised concerns over?energy supplies. A poll suggests that the Fed will maintain its key interest rate for the rest of 2026. However, a majority who responded to a question regarding the possibility of a hike in this year rated it "high". This is a change from last month, when the majority rated it "low". The opportunity cost of holding?bullion that does not yield increases as interest rates rise over time. Silver spot?was 0.7% higher at $59.18 an ounce, after reaching its highest level since July 10 earlier that day. Palladium rose by 1.5%, to $1300.58, while platinum jumped 1.2%, to $1649.03. (Reporting and editing by Rashmi aich and Subhranshu sahu in Bengaluru, and Pablo Sinha based in Bengaluru.
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Kyrgyzstan approves a plan to build a mini oil refinery amid Russian shortages
Kyrgyzstan agreed to build a mini-oil refinery worth $25 million in the south of the nation as part of its efforts to increase domestic fuel production and reduce dependence on imports due to tightening Russian supplies. Central Asian Energy LLC of Kyrgyzstan, who will finance the project, recently signed an agreement with the Kyrgyz company to build the refinery. The plant will produce bitumen, motor oil and gasoline that meets?K5 or K6 environmental standards. The first phase of the construction should be completed by autumn 2026. Kyrgyzstan imports a majority of its gasoline from Russia. Fuel shortages in Russia have been a problem since late May, due to production reductions following drone attacks on Russian refineries. The Association of Oil Traders of Kyrgyzstan (AOTK) reported a shortage of AI 95 and AI 98?grade gas in late June due to a lack of supplies from Russia, and a seasonal rise in demand. In recent weeks, authorities have taken a series of steps to stabilize the fuel market. These include temporary price controls and lifting state price regulation for AI-95 gasohol. They also imposed a ban on exports of petroleum products. Kyrgyzstan?also awaits fuel deliveries from China, and Belarus. Separately the energy ministry announced that it had 'agreed with Uzbekistan to refine a part of its petroleum products in Uzbek refineries, before shipping them back to Kyrgyzstan. Reporting by Aigerim Turgunbaeva; Writing by Felix Light; Editing by Louise Heavens
Trump's SEC gives companies more control over investors. They were pushed back by lawsuits
Activists said that a new federal approach, which gives U.S. firms more control over the proposals that shareholders vote on during their annual meetings, creates regulatory uncertainty and leads to litigation. In November, the U.S. Securities and Exchange Commission changed its tradition of having staff approve shareholder proposals before a company rejects them. It gave executives greater discretion in deciding which resolutions to include on their proxy statement, the mandatory document distributed before shareholder meetings.
At least three lawsuits have been filed by investors against AT&T and Axon Enterprises, and there could be more. Giovanna Eichner, a shareholder advocate with Green Century Capital Management in Boston, said that the SEC's decision to step back created uncertainty for the engagement process.
Eichner stated that "this lack of rules and structure is more than anything else leaving everyone in a state of confusion about how to proceed." In November, activists expressed concern that the changes were in line with other efforts by Trump's appointed regulators to reininforce shareholder efforts in environmental, social, and governance (ESG investing). Republicans from states that produce energy have criticized ESG initiatives for reducing corporate profits.
However, the legal threat has made U.S. listed companies more cautious about their new power. As You Sow, a shareholder activist group, has filed 47 proxy proposals this year. Companies have blocked up to half of them using their new power. This is roughly the same as last year when companies only blocked 8 out of 63 resolutions.
"Companies must decide whether they want to maintain a good relationship between themselves and their shareholders or if they want to pay millions to corporate lawyers." Andy Behar, CEO of As You Sow. A SEC spokesperson declined to comment. In November, a person who was familiar with agency thinking stated that the change was primarily motivated by the desire to save time for staff.
LAWSUITS CHANGE TACK: CHANGING TACK
Pepsi informed the SEC on January 5 that it would not be submitting a proposal to review animal welfare practices in its supply chain. For example, whether bulls are being forced at Indian sugar factories to pull sugarcane carts with excessive weight. Pepsi claimed that the applicant failed to provide details about their availability to discuss this proposal in the manner required. The plaintiff sued the company on February 19, stating that she had offered to have a meeting with them. The following day, Pepsi announced that it would include this resolution in its proxy.
Asher Smith, an attorney representing the People?for Ethical Treat of Animals Foundation and the filer, said: "It's us who brought the lawsuit. We forced Pepsi into following the proper procedure."
Pepsi did not respond to any questions.
New York City pension funds sued AT&T on February 17, after the company refused shareholders the opportunity to vote on a proposal that sought details about its workforce demographics. Mark Levine, the New York Comptroller who oversees the pension funds of the city, announced a week later that AT&T had agreed to settle by allowing shareholders to vote. He called it a "major victory" for investors in the face of corporate efforts to undermine transparency and accountability.
AT&T declined to comment on requests. Axon, the maker of stun guns, plans to avoid a vote that would require a report about its political contributions. The company says it will "micromanage" their business. Nathan Cummings Foundation sued the company at the U.S. District Court for the District of Columbia in order to force a vote. This suit is still pending.
Laura Campos is a senior director of the?foundation. She said that shareholders needed to sue to protect their rights to submit resolutions. She said that when the Securities and Exchange Commission stopped providing substantive answers to no-action requests it left shareholders with limited options to protect their rights.
Axon didn't answer any questions.
Other companies have chosen a different path. On November 7, Starbucks asked that a conservative think tank, National Center for Public Policy Research, skip a resolution filed on the topic of transsexual health care coverage. Starbucks claimed that the issue was "ordinary business" and therefore a vote could be skipped. Starbucks could have ignored the resolution after the SEC made its change, but chose to schedule the vote for their annual meeting on March 25, instead. The company declined to comment.
(source: Reuters)