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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
The top cases in the US Supreme Court docket
During its current term, the U.S. Supreme Court will decide a number of important cases involving voting rights, presidential power, tariffs and birthright citizenship. Other issues include race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through the end of June. Separately, the court has also acted in emergency cases in several cases that challenge President Donald Trump's policy.
VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of the Voting Right Act, making minorities less likely to challenge a map as racially biased under the landmark civil right law. The court blocked an electoral map which would have given Louisiana a 2nd U.S. Congress district with a majority of Black people. The decision severely undermined Section 2 the Voting Rights Act which Congress passed to prohibit electoral maps that could dilute the power of minority voters. The ruling allowed Republican-led Southern States to demolish Democratic-held districts with majority-Black or majority-Latino voters ahead of November's midterm elections. After the Supreme Court gutted another part of the Voting Right Act in 2013, Section 2 gained more importance as a "bulwark" against racial bias in voting. Black and Latinos tend to vote for Democratic candidates.
Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict the birthright citizenship in the United States. The justices asked the administration's attorney about the legal validity and practical implications of Trump's order. The lower court blocked Trump’s executive order that instructed U.S. agencies to not recognize citizenship for children born in?U.S. If neither parent is a legal permanent resident or American citizen, this is also known as a "green-card" holder. The court found that Trump's policies violated the 14th Amendment of the U.S. Constitution and federal laws codifying birthright citizenship. The Supreme Court will likely rule by June's end.
TRUMP'S TARIFFS On February 20, the justices struck down Trump's sweeping trade tariffs, which he imposed under a law intended for national emergencies. This ruling has major implications?for global economic growth. The 6-3 decision upheld the lower court's ruling that Trump had exceeded his authority in using this 1977 law. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty.
TRUMP'S FIRE OF FED OFFICIAL Justices expressed skepticism about Trump's attempt to fire Federal Reserve governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions designed to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" if the president so deemed. However, the law did not define this term or establish procedures for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her position for now, said that the allegations were a pretext used to fire Cook over differences of monetary policy, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June.
IMMIGRANTS WITH PROTECTED STATUS The Justices heard arguments April 29 on the Trump administration's move to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of Trump's signature immigration crackdown. The Trump administration appealed two federal judge's rulings that halted its efforts to terminate Temporary Protected Status (TPS), which the U.S. Government had previously granted to over 350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the challengers' claim that the administration didn't follow mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June.
Federal Trade Commission Firing The conservative justices of the court have indicated that they will uphold Trump's legality in firing a Federal Trade Commission Member and give an historic boost to president power, while also putting at risk a 90-year old legal precedent. On December 8, the court heard arguments in the Justice Department appeal of the lower court's ruling that the Republican President exceeded his authority by dismissing Democratic FTC member Rebecca Slaughter before the term she was due to finish. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to independent agency heads unlawfully infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June.
TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban?transgender sports players from participating in female teams, amid an escalating nationwide effort to restrict rights for transgender individuals. On January 13, the court heard arguments from Idaho and West Virginia in appeals of lower court decisions siding with transgender student who challenged the bans as being in violation of the U.S. Constitution, and a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June.
LGBT "CONVERSION THERAPEUTY" The court rejected on March 31, a Democratic-backed Colorado Law that prohibited psychotherapists from utilizing "conversion talk therapy" intended to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor who argued that the ban was an infringement on his right to free speech. The Colorado court rejected the argument that their law only protected speech, but regulated professional conduct. The court reversed a lower-court decision which had upheld a law brought by Kaley Chiles who argued it violated First Amendment protections from government abridgment.
HAWAII GUNS LAW The conservative Justices expressed skepticism about a Hawaii gun law which restricts the carry of handguns in public places, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a ruling by a judge that Hawaii's Democratic backed measure probably complies with U.S. Constitution Second Amendment rights to bear and keep arms. Hawaii's law demands that a property owner "expressly authorize" the handgun to be brought onto public property. Four other states in the United States have laws similar to Hawaii's. The ruling is expected to be made by the end June.
Drug Users and Guns On March 2, the justices heard arguments in a case in which a dual American/Pakistani national in Texas was defending a federal gun law that prohibits users of illegal drugs to own guns. Hunter Biden, son of former president Joe Biden, was charged under this law in 2023. The Justice Department appealed a ruling by a lower court that the gun restrictions were in violation of the Second Amendment rights to "keep and carry arms" guaranteed under the U.S. Constitution. Gun possession by illegal drug users was prohibited under the landmark Gun Control Act 1968. The decision is expected to be made by the end June.
CAMPAIGN-FINANCE On December 9, the court heard arguments in a Republican led bid to strike down "federal limits" on spending by parties and candidates coordinated with each other in a case that involved Vice President JDVance. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether federal limits on campaign spending coordinated with candidates' input violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that ruled on restrictions on how much money can be spent on campaigns by parties with input from the candidates they support. This type of spending is called coordinated party expenses. The ruling is expected to be made by the end June.
MAIL-IN-BALLOTS On March 23, conservative justices expressed skepticism about a Mississippi law that was challenged by Republicans. The law allows for a five-day period of grace to allow mail-in votes received after Election Day be counted. This case could lead to stricter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end June.
U.S. ASYLUM - PROCESSING: The court seemed likely to rule for the Trump administration's defense of its authority to reject asylum seekers if officials deem U.S. - Mexico border crossings to be too overloaded to handle more claims. On March 24, the court heard arguments in a dispute over a policy known as "metering," which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. Immigration officials to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June.
WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s efforts to stop thousands of lawsuits alleging that the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure. Bayer's claim that U.S. pesticide law prohibits lawsuits based on state laws was rejected by the lower court. The court is expected to rule by the end of June.
Human Rights Abuses Around the World The court heard arguments in April 28 on a case that has broad implications for American human rights litigation. Members of the Falun-Gong spiritual movement have accused Cisco Systems, in a long running lawsuit, of facilitating religious persecusion in China. Cisco appealed the 2023 ruling of a lower court that gave new life to the 2011 lawsuit brought under the Alien Tort Statute of 1789 that accused the company of developing technology which allowed China's Government to monitor and persecute Falun-Gong members. Cisco asked the court to limit the scope the Alien Tort Statute which allows non-U.S. Citizens to sue in American courts over violations of international laws. The court is expected to make a ruling by the end June.
SEC "DISGORGEMENT" POWER On June 4, the court rejected a challenge against the U.S. Securities and Exchange Commission’s broad authority to recover illicit profits through a financial remedy known as disgorgement. This strengthened one of the key powers of the Wall Street watchdog. The court upheld the decision of a lower-court that had supported a broad use of disgorgement powers by the SEC. In this case, the Trump administration defended the SEC. The SEC was defended by the Trump administration in this case.
FCC FINES FOR WIRELESS CARRIERIES The Supreme Court ruled on June 4, defending the Federal Communications Commission system of levying fines and ruling against AT&T's and Verizon's challenge against the agency. Trump's administration defended FCC's system of assessing financial penalties known as forfeiture order. The carriers argued that FCC's internal proceedings deprived them their right to a trial by jury under the U.S. Constitution.
'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case about whether or not law enforcement's use a "geofence warrant" to identify suspects using data from?cellphones near crime scene violates Fourth Amendment's bar on unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google, to search for mobile devices near crime scenes around the time of the crime. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June.
CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator in New Jersey of Christian faith-based "crisis pregnancies centers" that are anti-abortion and trying to obstruct a state probe into whether these facilities engage in misleading practices. First Choice Women's Resource Centers brought a federal suit against a subpoena issued by the state attorney general in 2023 seeking information about the organization's doctors and donors. A lower court had dismissed the lawsuit. First Choice's facilities are designed to discourage women from getting abortions.
RASTAFARIAN INMATE The conservative justices seemed inclined to reject the Rastafarian inmate's attempt to sue Louisiana state prison officials after they shaved his head in violation of religious beliefs. On November 10, the case was brought before the court under a federal statute protecting incarcerated persons from religious discrimination. Plaintiff Damon Landor's religion requires that he let his hair grow. He appealed the decision of a lower court to dismiss his lawsuit, because they found that the statute in question did not allow him to sue officials individually for monetary damage. The ruling is expected to be made by the end June.
DEATH ROW INMATE A man convicted in Alabama of a murder committed in 1997 was spared the execution on May 21, after the court upheld a ruling that the inmate has intellectual disabilities and is therefore ineligible to receive the death sentence. Alabama officials appealed a lower court's method of determining Joseph Clifton Smith’s intellectual capacity. The justices rejected the appeal. This method involved weighing the multiple intelligence quotient (IQ) test scores along with expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person with intellectual disabilities violated the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment.
JURY COMPOSITION On May 28, the justices sided with an inmate on death row who claimed that prosecutors had discriminated against him by excluding Black potential jurors in a trial where he was found guilty in 2006 of his involvement in the murder?of a supermarket owner. The justices found that the state courts of Mississippi had not evaluated Terry Pitchford’s claim that four Black prospective jurors were unlawfully dismissed, in violation a 1986 Supreme Court precedent called Batson v. Kentucky which prohibits exclusion based on race.
SENTENCE REDUCTIONS The court ruled that on May 28, judges could not order early release of prisoners based on the fact that they would receive shorter sentences following the 2018 criminal justice reform law. The court upheld lower-court decisions against two Pennsylvania men who were convicted of armed burglaries and sought compassionate release on the basis of the First Step Act that Congress passed many years after their sentences.
SECURITIES LITIGATION The court sided on June 11, with a group investment funds affiliated to BlackRock and other asset management firms in their attempt to defend against certain lawsuits filed by private plaintiffs, under a federal securities law. The court reversed an earlier ruling allowing hedge fund Saba Capital Master Fund, to sue the Investment Company Act of 1980 to invalidate fund bylaws that restricted the voting rights of activist shareholders. The Trump administration backed BlackRock and FS Credit Opportunities, as well as other funds in the case including Adams Diversified Equity Funds, Adams Natural Resources Funds and Royce Global Trust.
COX COPYRIGHT DISSENSION The court ruled that Cox Communications could not be held responsible for the piracy of songs by subscribers to its internet service. These labels included Sony Music, Warner Music Group Universal Music Group, and others. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP.
PHARMACEUTICAL SKINNY LABELS The court ruled that the generic version of Amarin Pharma Vascepa, a cardiovascular medication made by Hikma, did not violate Amarin Pharma patents. This decision could make generic drugmakers more resistant to patent suits involving "skinny label" claims. The justices reversed a decision by a lower court in favor of Amarin. Generic drugmakers argued that Amarin's victory in the case could have deterred them from producing and selling their cheaper drugs, and raised U.S. drug costs.
(source: Reuters)