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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
Washington Hilton attack highlights hotel industry's costly and nagging security issue
The suspect accused of storming a checkpoint on Saturday and firing a gun near the White House Correspondents' Association Dinner mocked the security measures at Washington Hilton that allowed him to be so close to Donald Trump.
In a manifesto written before the attack, the hotel guest Cole Allen, identified by law as a 31-year-old man, wrote: "I expected surveillance cameras everywhere, bugged rooms, armed officers every 10 feet and metal detectors to the roof." "What I got," Allen added, "is absolutely nothing."
Allen's attack has 'heightened a problem that the hotel industry has been facing for decades: how to maintain a warm and welcoming atmosphere while tightening security. Some security companies are now offering AI-powered monitoring systems, but hotels are reluctant to use anything that might increase costs or invade the privacy of their guests.
Security will continue to improve as technology continues to identify strange behavior. "At the end of it all, this is a hospitality industry where the customers must feel welcomed," said Nicolas Graf a professor at New York University.
Allen then moved up the building, before charging the checkpoint located on the floor above the dining room where Trump and 2,600 journalists were having dinner with government officials. Trump and his guests were able to escape safely, but this breach shows that the real risks at events like these are inside the hotels.
Hotel attackers exploit the same vulnerabilities repeatedly: multiple entry points, guests arriving all hours of the day, uneven screening and blurred boundaries between public and protected areas.
Morgan Stevens is the senior vice president of global security operations for Crisis24. She noted that not every guest is screened in the same way.
Hotels need to increase security in order to save lives but they also have to be careful with their expenditure. The top nine hotels, casinos and resorts by revenue are expected to generate about $102 billion between 2025 and 2025. However, margins have been squeezed in recent years.
Washington Hilton Hotel said that it operated under "stringent Secret Service protocols" after the attack. Hilton Worldwide Holdings refused to comment on this story. However, the steps taken after the attack Saturday were familiar.
The hotel was sealed off by law enforcement. Investigators traced the suspect’s steps. Experts in security debated whether anything could have been done better.
Allen was accused of attempted assassination and discharging a gun during a violent crime, and illegally transporting firearms and ammunition across state lines. He had taken a train to his hometown in California. He hasn't yet entered a guilty plea.
Hard to Secure
Hotel rooms are rarely closed for major events, but access is restricted by separate elevators and restricted floors.
Experts say that it usually takes a few days or a week to prepare a hotel for a big event. Security teams carry out site surveys, create credential systems and divide the hotel into controlled zones.
Other guests can still enter the lobbies and restaurants, as well as the guest floors, alongside those who have been screened. They said that this creates insurmountable security gaps.
A spokesperson for the American Hotel and Lodging Association said that hotels employ a multi-layered approach to safety and protection. The spokesperson stated that precautions include trained personnel, surveillance systems and access control, as well as coordination with law enforcement.
Robert McDonald, assistant Professor at the University of New Haven, and retired supervisory Secret Service Agent, said that the agency usually works with hotel security, the local police, and the White House administration in order to develop a plan for security rather than shutting down hotels outright.
The latest incident has shaken confidence in this model. Trump claimed that the hotel "was not a particularly safe building." Reports said that U.S. officials were reassessing the security of the Washington Hilton. President Ronald Reagan had been shot outside the hotel by John Hinckley in 1981, prompting some to call it the "Hinckley Hilton."
McDonald stated that after the shooting, the Hilton installed a garage that allowed presidential motorcades access to the building. It also increased the use of magnetometers, as well as tightened press controls.
Other major hotel attacks around the world have led to a change in security. The 2008 attack on the Taj Mahal Palace Hotel, Mumbai, that left 31 people dead in the hotel was a turning point.
Graf, from NYU, said that "the industry has improved significantly" since the Mumbai attacks.
A man who shot out of the window from a 32nd floor suite in the Mandalay Bay Hotel in Las Vegas in 2017 killed 58 people at a concert nearby. It was the deadliest mass killing in U.S. History. Many more people were injured.
Costly Security Upgrades
Experts say that implementing AI-powered weapon detection in hotels would be expensive and complex.
In December 2024, shortly before the murder of UnitedHealthcare CEO Brian Thompson in front of a Hilton hotel in Midtown Manhattan by a gang of terrorists, AI security company Xtract One received a request from the chief security officer for a major hotel 'chain regarding its weapons detection system. No rollout has yet taken place.
Peter Evans, CEO of?XtractOne, said that the problem is complex and cannot be solved by a single device. He noted the large number of people, the multiple entrances and the wide variety of luggage that moved through large hotels.
Evans noted that interest has increased in certain international markets. This is especially true in Mexico, where cartel violence and fear of travel have hurt revenues.
Anthony Varchetto said that hotels allocate resources to external threats, while underestimating the risks posed by guests.
He said that this is a common mistake. "People become complacent and understaff. A lot of this comes down to the budget."
(source: Reuters)