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World News

Floods in Europe and China disrupt international delivery, provide chains

The floods in China and Europe are another “body blow” for global supply chains, the CEO of a shipping company told CNBC on Monday.

“Seldom goes a week without something new,” says Tim Huxley, CEO of Mandarin Shipping.

Shipping has already experienced massive disruptions this year. As parts of the world recovered from the pandemic, increased spending resulted in a shortage of containers, causing delays and driving up prices.

In April one of the largest container ships in the world got wedged in the Suez Canal and stopped traffic for almost a week. The waterway is one of the busiest in the world, carrying about 12% of all trade.

In June, a spike in COVID cases in southern China caused further delays in the region’s ports, pushing shipping prices soaring again.

“Broken railway connections” due to floods in Europe

Heavy rains and floods have devastated parts of Western Europe. Some of the worst floods occurred in Germany and Belgium. Parts of Switzerland, Luxembourg and the Netherlands are also affected.

“This will really disrupt the supply chain because the rail links have all been cut,” Huxley told CNBC’s Squawk Box Asia.

These include railways from the Czech Republic and Slovakia to the German ports of Rotterdam and Hamburg, which are “seriously disrupted”.

“And that will delay freight movements back and forth,” he said. “This is going to really mess up the industry.”

Huxley pointed to Thyssenkrupp and stated that the German steel giant could not get any raw materials because of the flooding.

“That will ultimately affect industries like automotive, home appliances and the like,” he said.

S&P Global Platts reported, citing a customer letter, that Thyssenkrupp had declared force majeure on July 16. A force majeure event occurs when unforeseeable circumstances, such as natural disasters, prevent a party from fulfilling its contractual obligations and release it from sanctions.

A source at the company’s plants told S&P Global Platts that parts of the railroad in Hagen were “missing”, adding that it was even more difficult than before to get trucks for delivery. Hagen is a city in western Germany that has been hardest hit by the floods.

Floods in inland Henan cut the supply of wheat and coal

The disruption caused by the floods in China’s Henan Province, meanwhile, is made worse by the province’s being inland, Huxley said.

Read more about China from CNBC Pro

The interruption of the railway will again have “great effects”, he said.

“Of course that will affect the shipping, that will increase the shipping costs,” said Huxley.

The distribution of wheat and coal is affected, said Huxley, who pointed out that Henan is China’s “bread basket” and has produced 38 million tons of wheat this summer.

Categories
Politics

Biden presses Putin to disrupt cybercriminals in Russia

United States President Joe Biden speaks before signing an executive order in the State Dining Room of the White House in Washington, DC, the United States, on Friday, July 9, 2021.

Alex Edelmann | Bloomberg | Getty Images

WASHINGTON – President Joe Biden in a phone call Friday morning urged Russian President Vladimir Putin to take action to contain recent ransomware attacks by groups based in Russia.

“I made it very clear [Putin] that when a ransomware operation comes off its soil despite not being state sponsored, the United States expects that if we give them enough information to act who it is, we expect them to act said Biden at the White House on Friday afternoon.

When asked by a reporter whether there would be “consequences” for such attacks, Biden replied, “Yes”.

The US and Russia, according to the President, have “now regularly set up a means of communication in order to be able to communicate with each other when each of us thinks that something is happening in another country that affects our home country”.

Overall, the call “went well, I’m optimistic,” said Biden.

The conversation came just days after a massive new cyber attack by the REvil group believed to be based in Russia.

The hacking gang is demanding $ 70 million in cryptocurrency to unlock data from the attack that spread to hundreds of small and medium-sized businesses in a dozen countries.

A senior government official said Friday that the United States will take “action” to respond to the attack.

“We will not telegraph what exactly these actions will be. Some will be obvious and visible, others may not, but we expect these to take place in the coming days and weeks,” said the official, who asked for anonymity discuss sensitive negotiations.

The official spoke just moments after Biden, who boarded Air Force One en route to Delaware, was asked if it made sense for the United States to attack the actual servers that are hosting ransomware attacks. Biden replied, “Yes.”

The latest REvil attack is part of a series of serious ransomware attacks carried out by groups originating in Russia this spring and summer.

In May, REvil targeted JBS, the world’s largest meat supplier. The company eventually paid a $ 11 million ransom, but not before it temporarily ceased all of its U.S. operations.

Earlier that month, another cybercriminal targeted the operator of the country’s largest gas pipeline, the Colonial Pipeline. The attack forced the company to shut down a pipeline roughly 5,500 miles long, cutting fuel supplies to the east coast of almost half.

As of early Friday afternoon, the Kremlin had not yet published its own reading of the Biden Putin appeal, so it is unclear how the Russian president reacted to Biden’s pressure.

White House press secretary Jen Psaki told reporters Friday the United States had no new information suggesting the Russian government was directly responsible for the attacks.

Putin has always denied any involvement or direct knowledge of ransomware attacks from Russia.

However, US officials say the idea that Putin does not know who these attackers are is not credible as he has a tight grip on Russia’s intelligence services and its more opaque network of contractors.

In June, Biden met personally with Putin in Geneva, where he warned the Russian President to crack down on cyberattacks from Russia.

US President Joe Biden gestures at a press conference after the US-Russia Summit with Russia’s President Vladimir Putin on June 16, 2021 in Geneva, Switzerland.

Kevin Lamarque | Reuters

There, Biden said he presented Putin with a list of critical infrastructures in the United States that, if attacked by Russia-based cybercriminals, would pose a serious national security threat to the United States

“Certain critical infrastructures should be closed to attacks, cyber or other means,” said Biden after the meeting. “I gave them a list, 16 specific entities that are defined as critical infrastructure under US policy, from the energy sector to water systems.”

“So we agreed to hire experts in our two countries to work on specific agreements on what is forbidden and investigate specific cases that come from other countries or from one of our countries,” he said.

By identifying critical infrastructure as locked down, Biden also circled targets that, if attacked by state or non-state actors, would likely deserve a government response.

The White House has so far declined to detail the retaliatory measures taken by the United States in several recent attacks against the cybercriminals themselves on the grounds that such information must remain confidential.

During the phone call on Friday, Putin and Biden also praised their teams’ joint work after the meeting in Geneva, the White House said.

This work led to an important vote in the UN Security Council on Friday to resume the delivery of humanitarian aid to Syria.

4:00 p.m. – This story has been updated to include President Joe Biden’s comments on the call, as well as remarks from a senior administrator.

– CNBC’s Kevin Breuninger contributed to this report.

Categories
Business

Turkey and China disrupt the multibillion-dollar armed drone market

The widespread use of drones in Iraq and Afghanistan by the United States to combat and kill insurgents opened a new chapter in the history of the conflict. These soaring and remote-controlled aircraft were able to attack targets with impunity while operators worked safely in a ground control station.

To keep the crews out of danger, the drones were also politically cheap to use over dangerous skies. Now more and more countries like China and Turkey are gaining this military capability for their own ends.

“At the moment we have seen over 100 countries around the world that have used military drones, and that number is growing significantly,” said Wim Zwijnenburg, project manager for humanitarian disarmament at the Dutch peace organization PAX. “We have over 20 states that use armed drones in or outside of armed conflict.”

Although larger and more complex drones like the General Atomics MQ-9 Reaper are more powerful, they are not cheap to develop or operate, which is why smaller drones are becoming more ubiquitous in conflict areas.

Limiting the proliferation of these smaller drones and the ability to arm them is a government nightmare for government agencies around the world.

“Drones are just model airplanes with great sensors. All of these airplanes have a dual purpose and have been used in the civilian sector,” said Ulrike Franke, Senior Policy Fellow at the European Council on Foreign Relations. “In fact, drones have grown enormously in the civilian population in the last five to ten years, so it’s really difficult to control their export.”

Check out the video above to find out why the multibillion dollar armed drone market is in demand beyond the US.

Categories
World News

Protesters Disrupt Dodger Stadium Vaccinations

Motorists queuing at one of the largest vaccination stations in the country were stopped briefly on Saturday afternoon when protesters arrived at Dodger Stadium, authorities said.

At around 1:50 p.m. Pacific time, authorities closed the entrance to the stadium, said David Ortiz, a spokesman for the Los Angeles Fire Department. The closure lasted for about an hour before the entrance reopened while vaccinations continued at the stadium, Ortiz said. About 50 demonstrators were present at the entrance.

The Los Angeles Police and Fire Department did not comment on whether the protesters belonged to groups or what exactly they were demonstrating against.

However, photos posted on social media show people holding posters saying “99.96% survival rate” and “End the lockdown” and other paraphernalia that appear to condemn the existence of the pandemic and coronavirus vaccinations.

The vaccination site at Dodger Stadium opened on January 15th. Since then, those seeking to get vaccinated have faced a variety of waiting times, with the spot highlighting some of the logistical hurdles involved in vaccinating people in one of America’s largest cities. For the past week, an average of nearly 7,000 cases per day were reported in Los Angeles County, according to a New York Times database. The city of Los Angeles has one of the highest vaccination rates in the country, as nearly 83 percent of the doses the city has received have been given.