Category Archives: Business

Saudi Arabia pushes back on UAE opposition to OPEC+ deal

DUBAI, July 4 (Reuters) – Saudi Arabia’s energy minister pushed back on Sunday against opposition by fellow Gulf producer the United Arab Emirates to a proposed OPEC+ deal and called for “compromise and rationality” to secure agreement when the group reconvenes on Monday.

It was a rare public spat between allies whose national interests have increasingly diverged, spilling over into OPEC+ policy setting at a time consumers want more crude to aid a global recovery from the COVID-19 pandemic.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies, voted on Friday to raise output by some 2 million barrels per day from August to December 2021 and to extend remaining cuts to the end of 2022, but UAE objections prevented agreement, sources had said. read more

“The extension is the basis and not a secondary issue,” Saudi Energy Minister Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel.

“You have to balance addressing the current market situation with maintaining the ability to react to future developments … if everyone wants to raise production then there has to be an extension,” he said, noting uncertainty about the course of the pandemic and output from Iran and Venezuela.

The UAE said on Sunday it backs an output increase from August but suggested deferring to another meeting the decision on extending the supply pact. It said baseline production references – the level from which any cuts are calculated – should be reviewed for any extension. read more

The standoff could delay plans to pump more oil through to the end of the year to cool oil prices.

“Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. … Some compromise and some rationality is what will save us,” the Saudi energy minister said.

“We are looking for a way to balance the interests of producer and consumer countries and for market stability in general, especially when shortages are expected due to the decrease in stockpiles,” he added.

Responding to oil demand destruction caused by the COVID-19 pandemic, OPEC+ agreed last year to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd.

OPEC+ sources said the UAE contended its baseline was originally set too low, but was ready to tolerate if the deal ended in April 2022. The UAE has ambitious production plans and has invested billions of dollars to boost capacity.

Prince Abdulaziz, who stressed Riyadh’s “sacrifice” in making voluntary cuts, said no country should use a single month as a baseline reference, adding there was a mechanism to file objections and that “selectivity is difficult”.

The regional alliance that saw Saudi Arabia and the UAE join forces to project power in the Middle East and beyond — coordinating use of financial clout and, in Yemen, military force — has loosened as national interests came to the fore.

Abu Dhabi extricated itself from the Yemen war in 2019, saddling Riyadh. Saudi Arabia this year took the lead to end a row with Qatar despite reluctance from its Arab allies.

The kingdom has also moved to challenge the UAE’s dominance as the region’s business and tourism hub as Riyadh vies for foreign capital to diversify its economy away from oil.

Reporting by Marwa Rashad in London, Ghaida Ghantous in Dubai and Alaa Swilam in Cairo; Writing by Ghaida Ghantous; Editing by Hugh Lawson, Peter Cooney and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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No, You Cannot Bolt A SpaceX Starlink Antenna To Your Car

A SpaceX Falcon 9 rocket carrying the company’s Crew Dragon spacecraft is launched on NASAs SpaceX Crew-2 mission to the International Space Station.
Photo: Joel Kowsky/NASA (Getty Images)

One motorist in California was ticketed for attaching a satellite dish bolted to the hood of his Toyota Prius that was designed to look like one of SpaceX’s Starlink antennas. This is a good reminder that, no, you cannot do that.

The California Highway Patrol of Antelope Valley posted two images on Facebook that were credited to have been captured by Officer T. Caton. It read:

“Sir I stopped you today for that visual obstruction on your hood. Does it not block your view while driving? Motorist: Only when I make right turns….”

Yes, it is in fact illegal to mount a satellite dish to the hood of your vehicle, obstructing your view under section 26708(a)(2) of the California Vehicle Code. You also may not hang things from your rear view mirror, mount a GPS or cell phone in an unapproved location on your windshield, or display a handicap placard while the vehicle is in motion under this section. It’s about safety folks. These are the real stories of the Highway Patrol. Safe travels everyone.

As a little reminder, Starlink is one of SpaceX’s many projects. This one is designed to build a network of thousands of satellites that will ideally bring high-speed internet to consumers around the world. The Starlink Kit has four components: the user terminal or antenna, a tripod mount, WiFi router, and a power supply; the beta program costs $99 per month. If you want rooftop mounting, you can nab that for a little extra.

But you cannot actually mount it to your car. I know, it would be nice to have access to high-speed internet no matter where you go. But obstructing your vision? Not the way to go.

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The Tech Cold War’s ‘Most Complicated Machine’ That’s Out of China’s Reach

SAN FRANCISCO — President Biden and many lawmakers in Washington are worried these days about computer chips and China’s ambitions with the foundational technology.

But a massive machine sold by a Dutch company has emerged as a key lever for policymakers — and illustrates how any country’s hopes of building a completely self-sufficient supply chain in semiconductor technology are unrealistic.

The machine is made by ASML Holding, based in Veldhoven. Its system uses a different kind of light to define ultrasmall circuitry on chips, packing more performance into the small slices of silicon. The tool, which took decades to develop and was introduced for high-volume manufacturing in 2017, costs more than $150 million. Shipping it to customers requires 40 shipping containers, 20 trucks and three Boeing 747s.

The complex machine is widely acknowledged as necessary for making the most advanced chips, an ability with geopolitical implications. The Trump administration successfully lobbied the Dutch government to block shipments of such a machine to China in 2019, and the Biden administration has shown no signs of reversing that stance.

Manufacturers can’t produce leading-edge chips without the system, and “it is only made by the Dutch firm ASML,” said Will Hunt, a research analyst at Georgetown University’s Center for Security and Emerging Technology, which has concluded that it would take China at least a decade to build its own similar equipment. “From China’s perspective, that is a frustrating thing.”

ASML’s machine has effectively turned into a choke point in the supply chain for chips, which act as the brains of computers and other digital devices. The tool’s three-continent development and production — using expertise and parts from Japan, the United States and Germany — is also a reminder of just how global that supply chain is, providing a reality check for any country that wants to leap ahead in semiconductors by itself.

That includes not only China but the United States, where Congress is debating plans to spend more than $50 billion to reduce reliance on foreign chip manufacturers. Many branches of the federal government, particularly the Pentagon, have been worried about the U.S. dependence on Taiwan’s leading chip manufacturer and the island’s proximity to China.

A study this spring by Boston Consulting Group and the Semiconductor Industry Association estimated that creating a self-sufficient chip supply chain would take at least $1 trillion and sharply increase prices for chips and products made with them.

That goal is “completely unrealistic” for anybody, said Willy Shih, a management professor at Harvard Business School who studies supply chains. ASML’s technology “is a great example of why you have global trade.”

The situation underscores the crucial role played by ASML, a once obscure company whose market value now exceeds $285 billion. It is “the most important company you never heard of,” said C.J. Muse, an analyst at Evercore ISI.

Created in 1984 by the electronics giant Philips and another toolmaker, Advanced Semiconductor Materials International, ASML became an independent company and by far the biggest supplier of chip-manufacturing equipment that involves a process called lithography.

Using lithography, manufacturers repeatedly project patterns of chip circuitry onto silicon wafers. The more tiny transistors and other components that can be added to an individual chip, the more powerful it becomes and the more data it can store. The pace of that miniaturization is known as Moore’s Law, named after Gordon Moore, a co-founder of the chip giant Intel.

In 1997, ASML began studying a shift to using extreme ultraviolet, or EUV, light. Such light has ultrasmall wavelengths that can create much tinier circuitry than is possible with conventional lithography. The company later decided to make machines based on the technology, an effort that has cost $8 billion since the late 1990s.

The development process quickly went global. ASML now assembles the advanced machines using mirrors from Germany and hardware developed in San Diego that generates light by blasting tin droplets with a laser. Key chemicals and components come from Japan.

Peter Wennink, ASML’s chief executive, said a lack of money in the company’s early years had led it to integrate inventions from specialty suppliers, creating what he calls a “collaborative knowledge network” that innovates quickly.

“We were forced to not do ourselves what other people do better,” he said.

ASML built on other international cooperation. In the early 1980s, researchers in the United States, Japan and Europe began considering the radical shift in light sources. The concept was taken up by a consortium that included Intel and two other U.S. chip makers, as well as Department of Energy labs.

ASML joined in 1999 after more than a year of negotiations, said Martin van den Brink, ASML’s president and chief technology officer. Other partners of the company included the Imec research center in Belgium and another U.S. consortium, Sematech. ASML later attracted big investments from Intel, Samsung Electronics and Taiwan Semiconductor Manufacturing Company to help fund development.

That development was made trickier by the quirks of extreme ultraviolet light. Lithography machines usually focus light through lenses to project circuit patterns on wafers. But the small EUV wavelengths are absorbed by glass, so lenses won’t work. Mirrors, another common tool to direct light, have the same problem. That meant the new lithography required mirrors with complex coatings that combined to better reflect the small wavelengths.

So ASML turned to Zeiss Group, a 175-year-old German optics company and longtime partner. Its contributions included a two-ton projection system to handle extreme ultraviolet light, with six specially shaped mirrors that are ground, polished and coated over several months in an elaborate robotic process that uses ion beams to remove defects.

Generating sufficient light to project images quickly also caused delays, Mr. van den Brink said. But Cymer, a San Diego company that ASML bought in 2013, eventually improved a system that directs pulses from a high-powered laser to hit droplets of tin 50,000 times a second — once to flatten them and a second time to vaporize them — to create intense light.

The new system also required redesigned components called photomasks, which act like stencils in projecting circuit designs, as well as new chemicals deposited on wafers that generate those images when exposed to light. Japanese companies now supply most of those products.

Since ASML introduced its commercial EUV model in 2017, customers have bought about 100 of them. Buyers include Samsung and TSMC, the biggest service producing chips designed by other companies. TSMC uses the tool to make the processors designed by Apple for its latest iPhones. Intel and IBM have said EUV is crucial to their plans.

“It’s definitely the most complicated machine humans have built,” said Darío Gil, a senior vice president at IBM.

Dutch restrictions on exporting such machines to China, which have been enforced since 2019, haven’t had much financial impact on ASML since it has a backlog of orders from other countries. But about 15 percent of the company’s sales come from selling older systems in China.

In a final report to Congress and Mr. Biden in March, the National Security Commission on Artificial Intelligence proposed extending export controls to some other advanced ASML machines as well. The group, funded by Congress, seeks to limit artificial intelligence advances with military applications.

Mr. Hunt and other policy experts argued that since China was already using those machines, blocking additional sales would hurt ASML without much strategic benefit. So does the company.

“I hope common sense will prevail,” Mr. van den Brink said.

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Jeff Bezos retires 739,489 times richer than average American

When Jeff Bezos steps down Monday as Amazon’s CEO at age 57, he will carry with him an estimated $197 billion — a staggering fortune that is 739,489 times the median net worth of an American at age 65.

That median net worth is $266,400, Business Insider reported, citing data from the
Federal Reserve.

Amazon announced in February that Bezos would step down this year and assume the mantle of executive chairman of the e-commerce giant’s board.

He is expected to dedicate more time toward initiatives like the Bezos Earth Fund, his Blue Origin spaceship company, The Washington Post and the Amazon Day 1 Fund, CNBC reported.

Bezos received an $81,840 salary and $1.6 million in other compensation from the company last year, according to Business Insider.

His net worth exploded by $75 billion during 2020 as the COVID-19 pandemic drove sales into the stratosphere on his company’s online marketplace, sending shares skyward.  

Jeff Bezos’ net worth skyrocketed as Amazon purchases increased during the pandemic.
AP
Jeff Bezos has faced criticism for his wealth as Amazon workers live on food stamps and toil in poor conditions.
AP

Bezos, who makes more money every second than the average American worker makes in a week, has drawn criticism for getting richer while thousands of Amazon workers live on food stamps and toil in poor conditions.

He will be replaced by Andy Jassy, current CEO of Amazon Web Services, the company’s cloud platform.

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Why many Uber and Lyft drivers aren’t coming back

A ride share driver picks up passengers at O’Hare Airport on April 10, 2019 in Chicago, Illinois.

Scott Olson / Getty Images

After a dramatic decline in traveling this past year, people are moving again. Yet, despite offering cash incentives, rideshare giants Uber and Lyft are still struggling to bring drivers back to full speed, leading to longer wait times for customers and soaring prices.

Uber and Lyft have put millions into these efforts, but some former drivers aren’t even looking at these stimulus packages or trying to get in on surge pricing. A large percentage who are still holding out.

“Drivers are in a low-key strike,” Nicole Moore, a volunteer organizer with Rideshare Drivers United, told CNBC.

“Right now it’s a mini debacle for Uber and Lyft in terms of driver shortages and surge pricing throughout the US,” Wedbush’s Dan Ives said in an email. “Drivers are ~40% below capacity.”

Former ride-sharing drivers are staying off the road for a variety of reasons.

For many it’s fear of the continued pandemic, which is what made them stop driving in the first place. Currently, less than 50% of the U.S. population is fully vaccinated against Covid-19, according to data from the Centers for Disease Control and Prevention.

“This thing is not over yet, people can still get sick,” Louis Wu, a Texas resident and former rideshare driver, told CNBC. According to Uber, 80% of drivers planned to come back once vaccinated. The company has also heavily invested resources into getting people vaccinated, offering free rides to vaccine spots through early July, as a part of its effort to get people back on the road.

Others, wanting to stay in the gig economy but fearful of transmission, have switched to food or grocery delivery. That’s also allowed them to put less wear-and-tear on their cars, especially as gas prices and car parts prices increase.

“In times of Covid, there’s a lot less customer interaction with food delivery vs transporting a passenger in your backseat,” Harry Campbell, who runs The Rideshare Guy blog, said in an email. “You also put less miles on your car as a delivery driver since people order from nearby restaurants vs a full-time ride-hail driver that can easily do 1,000 miles per week or more. A lot of ride-hail drivers just get tired of dealing with people too.”

Some drivers have also remained on unemployment benefits, which are set to expire later this year. For those former drivers, they may be coaxed back into offering services once extended benefits phase out in the fall.

“September will be the big tell tale sign if drivers were holding out because of unemployment,” said Chris Gerace, a driver and contributor to Campbell’s blog.

Better jobs

Uber and Lyft said they thought the supply and demand problems would see recovery in the third quarter, which started July 1. However, if demand continues to outpace supply, it could pressure the rideshare companies to make more fundamental changes to cater to drivers.

Uber, for example, is considering funding education and career-building programs, according to The Wall Street Journal. Lyft is also exploring ways to reduce drivers’ expenses, according to the report published Friday.

But many drivers have gotten a taste of what working outside of the gig economy is like. Moore said she knows former drivers who have since gotten office jobs or switched to driving semi trucks, with no intention of coming back.

Some gig workers have become increasingly frustrated with how the rideshare giants pay out, especially as surge pricing continues.

The Washington Post reported last month that despite the high rates passengers are paying, drivers aren’t getting their cut. And drivers have continued to call out the companies, saying it’s increasingly difficult to make a living on the apps, especially when compared with the early days of the companies.

“When I started driving, I was guaranteed 80% of the fare,” Moore said. “If that’s where we were right now, you would see a very different equation on the road. Drivers are seeing 20, 30, 40% of the fare at times.”

But it’s a question of if rideshare companies will listen and be open to fundamental changes, Gerace said.

The shortage also comes parallel with Uber’s and Lyft’s promises to reach profitability on an adjusted EBITDA basis by the end of the year, and pressure on the balance sheet could make that goal even harder.

“If these companies had a paradigm-shifting core belief, you could have good pay for drivers, you could have good competitive rates and you could become profitable and have that win-win-win, but you have to take that initiative and be open to trying new things,” Gerace said.

Uber declined to comment, pointing to an April blog post on its $250 million stimulus. A Lyft spokesperson pointed toward comments its president, John Zimmer, made in late May, saying the company was “extremely confident” in supply recovery.

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China bans Didi, its biggest ride-hailing service, from app stores

The Cyberspace Administration of China on Sunday banned Didi from app stores after saying it posed a cybersecurity risk for customers.

“Didi Chuxing app is found to have severely violated the laws by illegally collecting and using personal information,” the regulator said. It called on Didi to fix the issue with its app to comply with the country’s laws and to ensure its customers’ safety.

The company, which has 377 million active users in China alone, said in a statement it is complying with China’s demands, pulling the app from stores as it works to make changes to its app to satisfy regulators. Didi said customers and drivers who have already downloaded the app will be able to continue to use it.

“We sincerely thank the … department for its instruction in troubleshooting Didi’s risks,” the company said. “We will rectify and improve risk avoidance and … provide safe and convenient services to our users.”

The ban comes less than a week after Didi went public on the New York Stock Exchange in the biggest US share offering by a Chinese company since Alibaba debuted in 2014.

Just two days later, on Friday, China suspended the registration of new users on the app. The suspension was put in place “to prevent the expansion of risk” during a “cybersecurity review” into the company, according to a statement from the country’s cyberspace administration. The company’s stock price tumbled Friday.
Sunday’s ban represents an escalation of China’s action against Didi, but it’s part of a larger crackdown on Big Tech companies in China.
In March, Chinese President Xi Jinping stressed the need to regulate “platform” companies, businesses that offer online services for customers, in the country. Several tech companies in the past few months have faced investigations for alleged monopolistic behavior or breaches of customer rights leading to record fines and massive overhauls.

Several tech companies in the past few months have faced investigations for alleged monopolistic behavior or breaches of customer rights leading to record fines and massive overhauls. Chinese President Xi Jinping has endorsed the probes, setting regulatory crackdowns as one of the country’s top priorities in 2021, and he has continued to call on regulators to scrutinize tech companies.

In April, Alibaba (BABA), the online shopping giant co-founded by Jack Ma, was fined a record $2.8 billion after antitrust regulators concluded the company had behaved like a monopoly. Days after the fine was issued, Ant Group, another part of Jack Ma’s business empire, was ordered to to overhaul its operations and become a financial holding company supervised by the central bank.

Following these crackdowns, China’s State Administration for Market Regulation gathered 34 companies and issued a warning to stop any anti-competitive behavior and ordered internal inspections. Didi was among the summoned companies.

— CNN Business’ Yong Xiong, Shawn Deng and Moira Ritter contributed to this report

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Tesla’s Elon Musk talks final Cybertruck design and new feature that boosts agility

It’s a few days later than expected, but Elon Musk appears to have stayed true to his word, posting some pertinent updates about the Tesla Cybertruck’s production version. As per the CEO, the production version of the all-electric pickup would be familiar to those who have followed the vehicle since its unveiling, but it would have a pretty cool new feature that would significantly boost its agility. 

While responding to a post by the Tesla Owners Online group on Twitter, Musk mentioned that Fridays are typically Tesla studio design time for him. He also stated that the final version of the Cybertruck would be “almost exactly” the same as what was unveiled back in November 2019. This was not much of a surprise considering that Musk has only mentioned slight possible changes to the vehicle in the past, such as a minor size reduction. 

Interestingly enough, Musk actually specified one of the new features that the Cybertruck’s final iteration would have. According to the CEO, the vehicle would have rear-wheel steering capabilities, which should allow the Cybertruck to perform tight turns and maneuver through tricky terrains with high agility. Such a feature would be incredibly useful, especially among those who are fond of taking their pickups on adventures. Musk also mentioned “lots of other great things” that are coming, though whether this statement was for the Cybertruck alone was unclear. 

Being a large truck, it is pertinent for the Cybertruck to be as maneuverable as possible. Together with its dynamic air suspension feature, the Cybertruck’s four wheel steering could help the vehicle in events such as Baja, which Elon Musk has hinted at in the past. The Baja 500 and Baja 1000 are extreme, deadly endurance races across a literal desert, so the Cybertruck would have to be extremely nimble and capable just to finish the event in one piece. The Tesla Cybertruck has already received a Baja challenge from Glickenhaus, whose hydrogen-powered Boot has already finished the 1000-mile race. 

As Tesla becomes a more mainstream carmaker, the company has started achieving accolades worthy of only the best automakers in the world. Just recently, for example, Tesla’s most powerful production car today, the Model S Plaid, conquered one of America’s deadliest races in the form of the 2021 Pikes Peak Hill Climb. With the help of legendary racer Randy Pobst, who personally helped Tesla develop the Model 3 Performance’s Track Mode, as well as Tesla tuning house Unplugged Performance, the Model S Plaid dominated the 2021 Pikes Peak Hill Climb Exhibition Class. 

The Tesla Cybertruck is expected to start initial deliveries later this year, though this is dependent on Gigafactory Texas’ progress. So far, however, it appears that Giga Texas’ construction is going well, which means that at least the first batches of the Cybertruck may actually be delivered to customers’ hands before the end of the year.

Don’t hesitate to contact us for news tips. Just send a message to [email protected] to give us a heads up.

Tesla’s Elon Musk talks final Cybertruck design and new feature that boosts agility








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‘I can’t live on $709 a month’: Americans on social security push for its expansion | US social security

Nancy Reynolds, age 74, of Cape Canaveral, Florida, works as a cashier at Walmart while struggling to make ends meet on her work income and social security benefits of just $709 a month.

“I can’t live on $709 a month, so I have to work. I have no choice, even though my body says you can’t do much more,” said Reynolds.

She explained her benefits are lower due to years where an abusive husband didn’t allow her to work, and she had also taken time off to care for her father before he died. Reynolds relies on Medicare insurance, though she still has to pay co-pays for doctor visits, and receives only $19 a month in food stamp assistance.

Reynolds is one of millions of Americans who are either senior, disabled or survivors of a deceased worker, and rely on social security benefits for the majority of their income, but the average benefit of just over $1,500 a month doesn’t provide enough income to cover basic necessities.

“The government is failing all of us seniors. We have to choose whether we eat or we go to the doctor, do we eat or do we buy medicine? The struggle is out there even though I’m working,” added Reynolds. “I’m wondering how long am I going to have my home, how long am I going to be able to pay for it? Should I buy a tent now and store it, because if I lose my job, I’ll be homeless because no one wants to hire a 74-year-old.”

Approximately 65 million Americans receive a monthly social security benefit, with the majority of payments going to retired workers and their dependents.

Senior citizens and disabled Americans who rely on benefits for the majority of their income are pushing for expansion of social security. Calls for reforms include increasing benefits in line with the cost of living, as employers are providing fewer retirement pensions to workers and the US population at retirement age of 65 is expected to grow from 56 million to 78 million in 2035.

“The nation is really facing a retirement income crisis, where too many people aren’t going to be able to retire and maintain savings to live on,” said Nancy Altman, president of Social Security Works, an advocacy organization for expanding the program. “It’s a very strong system, but its benefits are extremely low by virtually any way you measure them.”

Altman argued an expansion of the program is long overdue, noting that payouts haven’t increased since 1972.

Public opinion polls on social security demonstrate there is strong bipartisan support for the system and opposition to cuts. Congressman John Larson of Connecticut introduced a bill last legislative session to expand social security, along with 209 co-sponsors, and Altman expressed optimism social security legislation could move forward after the Biden administration finalizes the bipartisan infrastructure deal.

Currently, social security benefits in the US are lower than in the majority of developed nations, compared with the percentage of earnings the benefits provide to the average worker. The benefits are also taxed and Medicare costs are deducted as well.

Susan Aubrey Wilde, 74, of Sacramento, California, lives alone in an apartment for seniors on fixed incomes, but her social security benefits of $1,122 a month barely covers little more than her rent of $794. After paying for utilities, internet, phone and the costs to upkeep and insure her car, there is little left to survive. She’s concerned that she won’t be able to afford to stay in her apartment amid rising rents.

Wilde has dental issues, but cannot afford recommended treatment, and she struggles to carry heavy loads up the two flights of stairs to her apartment. Her washing machine is currently broken and she can’t afford to fix or replace it. In 2004, she was diagnosed with breast cancer and still experiences ongoing issues from treatment. She also suffers from chronic obstructive pulmonary disease.

“I keep a tent by the door because if the rent goes any higher, I may soon be in the street. So much for retiring with dignity,” said Wilde. “I worked all my life until the cancer diagnosis. I raised two children alone on clerical wages and I did my best.”

Nearly 10 million disabled Americans and their dependents rely on social security benefits for their income. The majority of applicants for social security disability benefits are denied, with only 20-25% of applicants awarded benefits from their initial claims.

It took one year for Rocky Giammatteo, 49, of Las Vegas, to receive her disability benefits for multiple sclerosis in 2016.

“I had lost my life savings and was evicted before they finally reached a decision a year later,” said Giammateo. “If it hadn’t been for friends pitching in to help me out those last couple of months, so I could stay in a dive hotel and avoid being homeless, in Vegas’ 110-degree weather, with my poor health, I would’ve been dead.”

After she was awarded benefits and backpay, Giammateo decided to move to Mexico, where the cost of living is much lower than in the US. The benefits she receives barely covered her rent in Las Vegas.

“Moving abroad to a country with a lower cost of living was my only realistic option to survive,” concluded Giammatteo. “I’m basically a medical refugee. It’s painful, but I’m alive to tell you this tale now, so it was the right decision.”

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July 4th ransomware attack may be the largest ever – expert

Kaseya provides IT management tools for some 40,000 customers worldwide. The company has said that REvil managed to target only about 40 of its clients, but that some of those are Managed Service Providers (MSPs) that may each work with hundreds of businesses.

“That means the viral distribution of this thing is going to be massive,” Ben-Ari said. “What has been reported so far is that more than a thousand companies have been affected, including some chains, like Swedish grocery retailer Coop, which was forced to close more than 800 stores. Their systems are literally all down.”

This attack is significantly different from the recent SolarWinds attack, which exposed sensitive data from government offices and thousands of private companies in what was possibly the largest security breach ever, Ben-Ari said. In this attack, companies are being told to pay a large ransom – in some cases, as much as $50,000 per employee at each company. “If you just multiply the numbers, the magnitude is massive,” he said.

The US government prefers that companies don’t give money to their attackers so not to encourage them, but many corporate ransomware victims conclude that the cost of resisting is much greater than paying.

Last month, JBS, one of the largest meat producers in the US, paid an $11 million ransom after a similar attack knocked out operations at some of its largest facilities. (The FBI has blamed that attack on REvil as well.) And in May, Colonial Pipeline, one of the US’s largest gas providers, was forced to shut down gas delivery to the East Coast until it paid the hackers $4.4 million to get back online.

“REvil is only interested in getting money and like other Russian ransomware groups, is believed to be sponsored by the Russian government, although that hasn’t been proven,” Ben-Ari said.

“It is not a coincidence that this attack was conducted on the eve of the Fourth of July holiday, when many of the victims are out of the office and may not even find out about it until Tuesday. This was a super-targeted operation intended to make a lot of money.”

Kaseya immediately advised customers to shut their servers temporarily to avoid being attacked, and to be wary of any communications from the attackers. The scope of the damage from the attack will not be clear for several more days, Ben-Ari noted.

He said that companies can prepare themselves for such attacks by evaluating risks to their system and securing vulnerabilities using cybersecurity services like that of Panorays, and implementing a plan to get back online in case of attacks. “I believe this type of attack will be a paradigm that companies of all sizes must prepare for.  Smaller companies that don’t invest in cybersecurity will be the easiest to breach, and then there is a risk that the attack could go viral,” he said.

“The only solution is preparing ahead, because the question isn’t whether something like this will happen, but when.”



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UAE ‘unconditionally’ supports OPEC+ supply increase, minister says

UAE’s Minister of Energy and Industry Suhail al-Mazrouei arrives for the 177th Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria, on December 5, 2019.

JOE KLAMAR | AFP | Getty Images

The United Arab Emirates has pushed back on OPEC+ leaders Saudi Arabia and Russia, claiming its “sovereign right” to negotiate fairer terms for an oil production increase.

“For us, it wasn’t a good deal,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC’s Hadley Gamble, referring to OPEC+ production cuts which were based on a “level of production that goes back to 2018.”

“We knew that the UAE position in that agreement was the worst in terms of comparing our current capacity with the level of production” he said Sunday.

“But an agreement is an agreement.”

Asked if the UAE would be willing to walk away, the minister said “we cannot extend the agreement or make a new agreement under the same conditions. We have the sovereign right to negotiate that.”

The comments come after the United Arab Emirates blocked some aspects of an OPEC+ proposal to increase output on Friday, seeking better terms for itself.

“Let’s increase the production, and talk about the extension and the agreement and the conditions associated with it at a later meeting,” he said, adding that the UAE unconditionally supports a supply increase.

“We are meeting on Monday, and I think we are all in agreement that we need to do something regarding the increase in production,” Al Mazrouei said. “The issue is putting a condition on that increase, which is the extension of the agreement,” he added.

Standoff

The high-stakes standoff comes as oil prices surge above $75 dollars a barrel for the first time in two years. Failure to reach a deal on Monday could risk the market recovery, and even unravel the fragile OPEC+ alliance if the deadlock is left unresolved.

“We have plenty of time to meet and discuss the terms of the extension with justification that can involve independent bodies to review it” he said. “I’m still hopeful that by Monday we will segregate the two decisions,” he added.

The UAE threatened to leave OPEC late last year, and an exit would almost certainly trigger a repeat of the OPEC+ price war that pushed oil prices to -$40 in April last year.

“It’s not wise nor a target for anyone to raise prices to a level that the world economy cannot handle,” he said. “We think we need to do it and we need to do it for August” Al Mazrouei added.

Baseline dispute

At the core of the current proposal is a plan to increase production by 2 million barrels per day (mb/d) between August and December in 400,000 barrels per day monthly installments. OPEC+ also plans to extend its production cut agreement from April 2022 to December 2022.

“Now we think that linking the extension of the agreement for a reference that goes back to 2018, and for a period that starts from 2022, is just not realistic, because this is four years” Al Mazrouei said.

“That is totally unfair.”

The UAE has spent billions investing in its oil production capacity, seeking to ramp up output. With Iran also set to return to the oil market in the coming months, the UAE sees good scope to review the terms.

“UAE crude oil production in October 2018 was 3.160 mb/d. But it increased to 3.841 mb/d in April 2020. By changing the base, UAE can increase its production drastically & immediately,” tweeted Anas Alhajji, Managing Partner at Energy Outlook Advisors.

“They do not want OPEC+ agreement to limit their production and potential,” he added.

In what could perhaps be another sign of strain in the relationship, Saudi Arabia moved to restrict travel to the UAE late Friday, citing the pandemic.

Asked about the silence from the White House on the production group’s internal dispute, Mazrouei replied “Happy Fourth of July.”

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