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CrowdStrike rejects Delta Air Lines claims over flight woes

WASHINGTON – CrowdStrike on Sunday rejected a claim by Delta Air Lines that it should be blamed for flight disruptions following a July 19 global outage sparked by a faulty update, and suggested it had minimal potential liability.

Delta CEO Ed Bastian said last week the outage had cost the US airline $500 million and that it planned to take legal action to get compensation from the cybersecurity firm.

CrowdStrike reiterated its apology to the airline operator, but said in a letter from an external lawyer that it is “highly disappointed by Delta’s suggestion that CrowdStrike acted inappropriately and strongly rejects any allegation that it was grossly negligent or committed misconduct.”

Delta canceled more than 6,000 flights over a six-day period, impacting more than 500,000 passengers. It faces a U.S. Transportation Department investigation into why it took so much longer for it to recover from the outage than other airlines.

The CrowdStrike letter said that “any liability by CrowdStrike is contractually capped at an amount in the single-digit millions.”

Delta declined to comment on the CrowdStrike letter.

Within hours of the outage incident, CrowdStrike reached out to Delta to offer assistance.

“Additionally, CrowdStrike’s CEO personally reached out to Delta’s CEO to offer onsite assistance, but received no response,” the letter said.

Bastian told CNBC last week CrowdStrike had offered “free consulting advice to help us.”

Delta told US lawmakers last week in a letter seen by Reuters that CrowdStrike’s faulty update “impacted more than half of Delta computers, including many of Delta’s workstations at every airport in the Delta network.”

The letter added Delta’s “complex IT system which distributes and synchronizes all our data, including the data that feeds our crew tracking and gating software, required manual recovery.”

The CrowdStrike letter added that if Delta files suit, it will need to answer “why Delta’s competitors, facing similar challenges, all restored operations much faster” and “why Delta turned down free onsite help from CrowdStrike professionals who assisted many other customers to restore operations much more quickly than Delta.”

A CrowdStrike spokesperson said “public posturing about potentially bringing a meritless lawsuit against CrowdStrike as a long-time partner is not constructive to any party. We hope that Delta will agree to work cooperatively to find a resolution.” – Reuters

Bitcoin, ether sink to multi-month lows as recession worries take hold

JONATHAN BORBA-UNSPLASH

Bitcoin and ether tumbled on Monday to multi-month lows as worries over a possible US recession in the wake of soft data gripped financial markets and triggered a rush to safe-haven assets.

Crypto markets have gotten a boost this year after the US Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether.

More recently, however, bitcoin has fallen alongside other assets including global equities in a broad selloff as investors fear that a US recession could be on the horizon, with rising geopolitical worries also weighing. The cryptocurrency is off nearly 20% from its March 2024 high.

“It’s a big reminder that Bitcoin and crypto in general are risk assets and sit at the pointy end of the risk spectrum,” said Tony Sycamore, market analyst at IG.

Bitcoin sank to $53,091, its lowest since late February and last fetched $54,112, while ether slid to its weakest since mid-January and was last down 16% at $2,300.

Sycamore said bitcoin is testing trend channel support at $54,000/$53,000 area and needs to hold that level to “prevent further capitulation towards $48,000.” – Reuters

North Korea’s Kim oversees delivery of new tactical ballistic missile launchers

KREMLIN.RU/EVENTS/PRESIDENT/NEWS/60363/PHOTOS-COMMONS.WIKIMEDIA.ORG

SEOUL – North Korean leader Kim Jong Un oversaw the delivery of 250 new tactical ballistic missile launchers to frontier troops, state media KCNA reported on Monday, which Seoul said he would use to threaten South Korea.

The launchers have been described by state media as a modern tactical attack weapon personally designed by Kim and ready to be transferred to Korean People’s Army units on the frontier with the South.

North Korea said it test-fired a new tactical ballistic missile last month.

“We believe (the missile launchers) are intended to be used in various ways, such to attack or threaten South Korea… Deploying near the border would mean that the range is not long,” Lee Sung-joon, spokesperson for South Korea’s Joint Chiefs of Staff, told a media briefing.

In a speech, Mr. Kim blamed the United States for creating a “nuclear-based military block” that forced his country to further strengthen military capabilities.

North Korea has long condemned joint drills between the United States and South Korea as a rehearsal for invasion.

A spokesperson for Seoul’s unification ministry handling inter-Korean affairs said North Korea’s illegal nuclear and missile programs were the primary threat to peace and stability on the Korean peninsula.

Pyongyang will have enhanced nuclear readiness in the near future to deter nuclear threats and protect itself, Kim was quoted as saying in the speech to troops and military scientists.

Mr. Kim’s daughter, Kim Ju Ae, attended the event, KCNA photos showed, making her first public appearance in nearly three months. South Korean lawmakers said last month she was being trained to become the next leader.

North Korea’s state media has reported on her public activities, but not on her political future. – Reuters

Australia raises terror threat level to ‘probable’ from ‘possible’

STOCK PHOTO | Image by Rebecca Lintz from Pixabay

SYDNEY – Australia on Monday raised its terror threat level to “probable” from “possible”, citing an increase in extremist views in the country leading to a more than 50% chance of the planning of an onshore attack in the next 12 months.

Prime Minister Anthony Albanese said he had raised the country’s threat level following advice from security services, but said there was no imminent threat of an attack.

“The advice that we have received is that more Australians are embracing a more diverse range of extreme ideologies and it is our responsibility to be vigilant,” he told a news conference.

Australia lowered the threat level to “possible” in 2022, following eight years at “probable”.

Mike Burgess, director general of the Australian Security Intelligence Organization, the country’s main intelligence agency, said tensions in the Middle East, including a conflict between Israel and Hamas that began on Oct. 7, were a contributing factor to raising the threat level.

“The conflict has fueled grievances, promoted protests, undermined social cohesion and elevated intolerance,” he said.

Australia has seen several violent attacks in recent months, some of which have been designated as motivated by extremism.

In April Australian police said a knife attack on an Assyrian church bishop and some of his followers in Sydney was a terrorist act motivated by suspected religious extremism. – Reuters

APEC businesses propose new climate bonds, carbon credit network

TOKYO – Asia-Pacific business executives urged emerging economies in the region to issue climate bonds indexed to a basket of currencies, which would reduce the risk from foreign exchange fluctuation in raising funds for clean energy transition.

The group of business executives comprising ABAC, which is APEC’s Business Advisory Council, also proposed on Sunday launching a pilot program to develop a voluntary carbon market (VCM) for the Asia-Pacific region.

“What we’re trying to establish is an interoperable, or mutually tradeable, voluntary carbon credit network within the Asia-Pacific region that can accelerate the region’s transition to a low-carbon society,” Hiroshi Nakaso, head of ABAC’s finance and investment task force, told a news conference on Sunday.

Under the program, like-minded countries will conduct cross-border carbon credit transactions on a trial basis to identify problems and possible solutions, Mr. Nakaso said.

The Asia-Pacific region lacks cross-border standards or regulatory infrastructure for a voluntary carbon market, a mechanism that channels private financing into climate projects.

The proposals, compiled at a meeting in Tokyo on Aug. 1-4, underscore a growing awareness in Asia about the need for private and public sectors to cooperate in financing the huge cost of energy transition.

ABAC, an Asia-Pacific Economic Cooperation (APEC) advisory council, will present its recommendations at the APEC leaders’ summit to be held in Lima in November. Peru is this year’s chair of APEC, a bloc that accounts for almost half of world trade.

In the list of proposals, ABAC called on governments in the region to issue 10-year bonds with interest and principal payments indexed to a basket of currencies.

Such bonds would give developing nations access to hard currency to buy solar farms and storage facilities, and mitigate risk from exchange-rate fluctuation for lenders, said Tom Harley, one of the task force’s project leaders from Australia.

Asia is among the world’s most vulnerable regions to climate-related natural disasters. It also consists of many economies reliant on fossil fuel or vulnerable to currency market swings, heightening challenges for energy transition. – Reuters

China coast guard monitors Philippine patrol boats in Sabina Shoal

PHILIPPINE STAR/RYAN BALDEMOR

China‘s coast guard said it was monitoring Philippine patrol and fishing vessels that have gathered around the contested Sabina Shoal, citing China‘s “indisputable sovereignty” over the Spratly Islands in the South China Sea.

China‘s coast guard had been monitoring the vessels since Saturday, spokesperson Gan Yu said in a statement late on Sunday.

Mr. Gan said patrol boats from the Philippine Fisheries and Aquatic Resources Bureau and multiple fishing boats have gathered in the waters near a Philippine ship which China has said was “illegally stranded” at the shoal.

The stranded ship “violates” China‘s territorial sovereignty and maritime rights and interests, and “undermines” peace and stability in the South China Sea, the Chinese coast guard reiterated.

China refers to Sabina Shoal as Xianbin Reef, while the Philippines calls it Escoda Shoal. – Reuters

India plans tougher ad curbs on liquor makers such as Carlsberg, Diageo, Pernod

FREEPIK

NEW DELHI – India, which bans direct advertising of liquor, is set to announce sweeping rules that will bar even surrogate ads and sponsoring of events, which could force firms such as Carlsberg, Pernod Ricard and Diageo to redraw marketing campaigns.

Such “surrogate ads” often get round the ban by ostensibly showing less desirable items instead, such as water, music CDs or glassware garbed in logos and hues linked to their key product, and often promoted by popular Bollywood film stars.

Now they could bring fines for companies and bans for celebrities endorsing tobacco and liquor ads deemed misleading, according to the top civil servant for consumer affairs and draft rules being reported for the first time by Reuters.

“You can’t take a circuitous way to promote products,” the official, Nidhi Khare, told Reuters, adding that final rules were expected to be issued within a month.

“If we find ads to be surrogate and misleading, then even those who are endorsing (products), including celebrities, will be held responsible.”

For example, brewer Carlsberg promotes its Tuborg drinking water in India, with an ad showing film stars at a rooftop dance party and the slogan “Tilt Your World”, which echoes its beer ads elsewhere, emblazoned with the message: “Drink Responsibly”.

Competitor Diageo’s YouTube ad for its Black & White ginger ale, which has drawn 60 million views, features the signature black-and-white terriers from its scotch of the same name.

The changes threaten a seachange for liquor makers in India, the world’s eighth-biggest alcohol market by volume, with annual revenues Euromonitor estimates at $45 billion.

Growing affluence among its 1.4 billion people makes India a lucrative market for the likes of Kingfisher beer maker, United Breweries, part of the Heineken Group, which has more than a quarter of market share by volume.

Popular for their whiskies, Diageo DGE.L and Pernod PERP.PA, taken together, have a market share of about a fifth, while for Pernod, India contributes about a tenth of global revenues.

The new rules call for “prohibition against engaging in surrogate advertisement”, which extends to sponsorships and ads for products viewed as “brand extensions” that share the characteristics of an alcohol brand, the draft said.

Penalties under the new rules rely on consumer law, opening manufacturers and endorsers to fines of up to 5 million rupees ($60,000), while promoters risk endorsement bans running from one to three years.

Carlsberg declined to comment, while other companies did not respond to Reuters’ queries, including those on sales of non-alcohol products.

Members of the International Spirits and Wines Association of India, which represents Diageo and Pernod, “are committed to a compliant way of building brand extension businesses,” said its outgoing chief executive, Nita Kapoor.

The group was in talks with the government and supported advertising of “genuine” brand extensions, she added.

 

HEALTH IMPACT

The World Health Organization says bans or comprehensive curbs on alcohol advertising “are cost-effective measures” in the interest of public health.

Its data shows India’s consumption of alcohol per person will rise to nearly 7 liters in 2030, from about 5 liters in 2019, a period over which fellow Asian giant China’s consumption will drop to 5.5 liters.

And alcohol-related deaths in India stood at 38.5 for every 100,000 of its population, versus 16.1 for China.

Ms. Khare said India’s draft followed a review of global best practices, in countries such as Norway, which bans ads for alcohol and other goods relying on features of a liquor brand, in curbs that researchers say have cut alcohol sales over time.

The new draft rules prohibit marketing of items such as soda or music CDs employing a “similar label, design, pattern, logo” to that of alcohol products, explicitly targeting efforts to get around current bans.

Ads for items such as glasses and soda cans allow “brand names to appear in all their ads, creating its recall value for the consumers,” however, the draft states.

The new rules follow warnings to some liquor companies, such as Pernod, and some domestic tobacco firms to halt misleading ads, a senior government source said, speaking on condition of anonymity.

India is not against brand extension ads, the official added, but wants them to properly depict the product being showcased, rather than giving consumers the impression that the ad is for a liquor brand.

One India video promoted by Pernod, ostensibly for glassware products linked to its whisky brand, Blenders Pride, shows Bollywood star Alia Bhatt walking a ramp under flashing disco lights, and saying, “My life, my pride.”

While it has a logo similar to that of the whisky brand, the video, which also appears on the website of the Blenders Pride Glassware Fashion Tour, shows no glassware products. – Reuters

US expected to propose barring Chinese software in autonomous vehicles

Self-driving Car | Adobe Stock Photo

WASHINGTON – The US Commerce Department is expected to propose barring Chinese software in autonomous and connected vehicles in the coming weeks, according to sources briefed on the matter.

The Biden administration plans to issue a proposed rule that would bar Chinese software in vehicles in the United States with Level 3 automation and above, which would have the effect of also banning testing on US roads of autonomous vehicles produced by Chinese companies.

The administration, in a previously unreported decision, also plans to propose barring vehicles with Chinese-developed advanced wireless communications abilities modules from U.S. roads, the sources added.

Under the proposal, automakers and suppliers would need to verify that none of their connected vehicle or advanced autonomous vehicle software was developed in a “foreign entity of concern” like China, the sources said.

The Commerce Department said last month it planned to issue proposed rules on connected vehicles in August and expected to impose limits on some software made in China and other countries deemed adversaries.

Asked for comment, a Commerce Department spokesperson said on Sunday that the department “is concerned about the national security risks associated with connected technologies in connected vehicles.”

The department’s Bureau of Industry and Security will issue a proposed rule that “will focus on specific systems of concern within the vehicle. Industry will also have a chance to review that proposed rule and submit comments.”

The Chinese Embassy in Washington did not immediately comment but the Chinese foreign ministry has previously urged the United States “to respect the laws of the market economy and principles of fair competition.” It argues Chinese cars are popular globally because they had emerged out of fierce market competition and are technologically innovative.

On Wednesday, the White House and State Department hosted a meeting with allies and industry leaders to “jointly address the national security risks associated with connected vehicles,” the department said. Sources said officials disclosed details of the administration’s planned rule.

The meeting included officials from the United States, Australia, Canada, the European Union, Germany, India, Japan, the Republic of Korea, Spain, and the United Kingdom who “exchanged views on the data and cybersecurity risks associated with connected vehicles and certain components.”

Also known as conditional driving automation, Level 3 involves technology that allows drivers to engage in activities behind the wheel, such as watching movies or using smartphones, but only under some limited conditions.

In November, a group of US lawmakers raised alarm about Chinese companies collecting and handling sensitive data while testing autonomous vehicles in the United States and asked questions of 10 major companies including Baidu, Nio, WeRide, Didi Chuxing, Xpeng, Inceptio, Pony.ai, AutoX, Deeproute.ai and Qcraft.

The letters said in the 12 months ended November 2022 that Chinese AV companies test drove more than 450,000 miles in California. In July 2023, Transportation Secretary Pete Buttigieg said his department had national security concerns about Chinese autonomous vehicle companies in the United States.

The administration is worried about connected vehicles using the driver monitoring system to listen or record occupants or take control of the vehicle itself.

“The national security risks are quite significant,” Commerce Secretary Gina Raimondo said in May. “We decided to take action because this is really serious stuff.” – Reuters

Britain’s Starmer condemns ‘far-right thuggery’ as unrest flares again

REUTERS

LONDON – British Prime Minister Keir Starmer on Sunday condemned what he described as “far-right thuggery” and said perpetrators would face the full force of the law after days of violent anti-immigration protests culminated in hotels being targeted.

Violent protests have erupted in towns and cities across Britain after three girls were killed in a knife attack at a children’s dance class in Southport in northwest England last week.

The murders were seized on by anti-immigrant and anti-Muslim groups as misinformation spread that the suspected attacker was an immigrant and a radical Islamist. Police have said the suspect was born in Britain and are not treating it as a terrorist incident.

The protests have spread through cities across the country, including in Liverpool, Bristol and Manchester on Saturday, resulting in dozens of arrests as shops and businesses were vandalized and looted and several police officers were injured.

On Sunday, hundreds of anti-immigration protesters gathered by a hotel near Rotherham, northern England, which Britain’s interior minister said was housing asylum seekers.

The protesters, many wearing masks or balaclavas, threw bricks at police and broke several hotel windows, a Reuters witness said, before setting a large bin close to the hotel on fire.

“I utterly condemn the far-right thuggery we’ve seen this weekend,” Mr. Starmer said in a statement, adding it was criminal violence and not legitimate protest.

“Be in no doubt, those that have participated in this violence will face the full force of the law.”

The National Police Chiefs’ Council said 147 people had been arrested since Saturday evening and more would follow in the coming days.

Mr. Starmer, who took office a month ago after his Labor Party won a decisive election victory over the long-ruling Conservatives, said residents were in “absolute fear” from the “marauding gangs” in Rotherham.

Local police said 10 officers were injured in Rotherham during confrontations with the crowd of 700 people, some of whom threw planks of wood and sprayed officers with fire extinguishers before smashing hotel windows.

One officer was knocked unconscious and others had suspected broken or fractured bones, police said.

“The mindless actions of those today have achieved nothing other than sheer destruction and leaving members of the public and the wider community in fear,” said Lindsey Butterfield, Assistant Chief Constable at South Yorkshire Police.

Sunday’s disorder was based in smaller towns than on Saturday, including the northwest towns of Lancaster and Bolton as well as Aldershot, southern England.

Police said they arrested 14 people after a march through Middlesbrough in the northeast resulted in “mindless violence” and a public warning to avoid the town center.

The interior ministry said mosques would be offered extra security under new arrangements after threats against them, including in Middlesbrough.

Members of the public were also urged to avoid the area around a hotel in Tamworth, central England, by local police who said “a large group of individuals are in the area and have been throwing projectiles, smashing windows, starting fires and targeting police. One officer has been injured.”

The last time violent protests erupted across Britain was in 2011 when thousands of people took to the streets after police shot dead a Black man in London. Mr. Starmer was the country’s chief prosecutor at that time.

Community leaders and families of the victims of the murders in Southport, near Liverpool, have criticized the unrest.

“Since Monday, too many people have sought to use the tragedy to create division and hate,” a group of faith leaders from Liverpool said in a joint statement.

“It can – and has – left communities in fear and has put people in danger.” – Reuters

PayMongo partners with YelloX to strengthen supply chain enterprises

Photo shows (from left) Ken Miguel, YelloX Business Development Officer; Marcus Francisco, YelloX ECommerce Division Manager; Roderick Chua, YelloX COO; Jojo Malolos, PayMongo CEO & President; Jordan Jacinto, PayMongo Head of Growth; and Ryan Tongson, Chief Commercial Officer.

PayMongo, a leading digital financial services company, partnered recently with YelloX, a renowned platform for end-to-end supply chain management, to streamline payment processing and fund management for supply chain enterprises.

PayMongo Founder and Chairperson Luis Sia underscored the strategic importance of the collaboration in utilizing the fintech company’s expansion from payments to financial services.

“We are thrilled to embark on this transformative journey with YelloX. Together, we aim to revolutionize the financial landscape of supply chain businesses, driving efficiency and growth in this dynamic sector,” Mr. Sia said.

The integration of PayMongo’s robust financial infrastructure into the YelloX platform marks a significant leap forward in facilitating seamless financial transactions within the supply chain ecosystem.

“By leveraging digital wallets and advanced payment solutions, YelloX users can now experience enhanced financial management capabilities, propelling operational efficiency to new heights,” Mr. Sia added.

PayMongo CEO Jojo Malolos said that the integration of PayMongo’s robust financial infrastructure into the YelloX platform marks a significant leap forward in facilitating seamless financial transactions within the supply chain ecosystem.

“This partnership represents a commitment to augmenting the  ability of YelloX to empower its SME customers with the tools they need to thrive in today’s competitive market,” Mr. Malolos said.

Mr. Malolos revealed that YelloX users can now experience enhanced financial management capabilities by leveraging digital wallets and advanced payment solutions, propelling operational efficiency to new heights.

“By simplifying payment processes and offering integrated financial solutions to YelloX, we are paving the way for accelerated growth and success in the supply chain industry as these cater to the needs of SMEs in successfully growing their businesses,” Mr. Malolos added.

Mr. Sia said that as supply chain organizations embrace the enhanced financial operations facilitated by this collaboration, they can expect improved cash flow management, better control over finances, and increased operational focus.

“The synergistic blend of PayMongo’s payment processing expertise and YelloX’s innovative supply chain solutions promises to redefine financial management practices and drive business expansion,” Mr. Sia said.

During its 5th anniversary celebration last March, PayMongo announced its transformation from a payment solutions provider into a digital financial services company.

 

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[B-SIDE Podcast] Why do employees leave their company?

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In 2023, the Philippine attrition rate and voluntary turnover increased to 15.9% from 14.2% the previous year, according to a study from a risk and employment consultancy company. This means that more employees are leaving their companies for better salaries and growth opportunities.
From a company perspective, this is a potential indicator of dysfunctionality, which could lead to further problems. To address this issue, Kshitij Kohli, Head of Operations at Sun Life Global Solutions, has shared his insights about the reasons and impacts of high attrition rates for companies. He also discussed strategies that companies can use to control their attrition rates and how they can adjust to the shifting workplace demographics.

Interview by Edg Adrian A. Eva
Audio editing by Jayson John D. Mariñas

Follow us on Spotify BusinessWorld B-Side

Yulo wins men’s vault to scoop second gold in Paris

CARLOS YULO — REUTERS

PARIS – Carlos Edriel Yulo of the Philippines won his second gold medal in as many days after he soared to the top of the podium in men’s vault at the Paris Olympics on Sunday.

Twenty four hours after he became the first Filipino to capture an Olympic gymnastics title with victory in the floor exercise final, Yulo doubled his Olympic gold medal haul by eclipsing Artur Davtyan. The Armenian won silver, while Britain’s Harry Hepworth took the bronze at the Bercy Arena.

Yulo nailed his opening Dragulescu vault in the tuck position, taking just a small step backwards and was rewarded by the judges with a huge score of 15.433 points.

His second vault earned him 14.800, giving him an average of 15.116 and after the event’s final results were announced, Yulo put his hands on his head and exhaled in disbelief, bowing in gratitude before the crowd.

“Winning yesterday took away all of my stress,” the elated Filipino told reporters.

“Today I was more chilled and relaxed. It helped me give it all because there was nothing to lose anymore. And that’s what happened. It’s so crazy, I don’t know what to feel right now.”

“The first vault was really good. I was so shocked that I landed it.”

The amiable Yulo said he was bracing himself for the hero’s welcome he will undoubtedly receive when he returns home.

“I’m really excited but I know it’s also going to be tough for me because it’s kind of outside gymnastics,” he said.

“Lots of interviews, lot of media but I’m really excited to do that.

“I’m really blessed and grateful.”

The 24-year-old’s Paris exploits also earned him a new home.

Filipino gold medallists at the Paris Games have been promised a fully furnished, two-bedroom condominium in Taguig City.

Asked if he will now get two houses, one for each gold medal, he said: “I think so but I should really check if that’s true.” — Reuters

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