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Internet

French police to investigate vandalism behind internet outage

PARIS, April 27 (Reuters) – The Paris prosecutor’s office said it has opened a probe into the causes of a major internet outage which affected France’s telecommunications network on Wednesday following reports of coordinated acts of vandalism.

The French Telecoms Federation said attacks of vandalism had impacted telecoms networks in several regions, including the Ile-de-France region around Paris, eastern France and the Auvergne-Rhone-Alpes and Bourgogne-France-Comte regions.

The investigation will be co-handled by France’s internal intelligence services and the national judicial police, the prosecutor’s office said, citing a potential threat to the fundamental interests of the nation.

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Earlier, Minister for Digital Affairs Cedric O said on Twitter that internet cables had been cut in the Ile-de-France region, which was affecting the landline and mobile network and that the ministry was working with operators to restore service.

A spokesperson for Altice’s French telecoms operator SFR said the group had been the target of acts of vandalism that affected the company’s broadband fiber optic network after 3 am local time (0100 GMT) on Wednesday.

The attacks concerned long-distance cables linking Paris with the cities of Strasbourg and Lyon, the spokesperson said.

These long distance cables link large hubs to the broadband network and the internet, potentially affecting direct customers as well as other operators that rent SFR’s network, such as Free, which also pointed to vandalism in a tweet.

SFR declined to provide further details on the location of the damaged underground cables. It also declined to say when full service would summarize or elaborate on the number of cities and customers potentially affected.

Another long distance fiber network connection, linking Paris to the city of Lille, was also damaged, an industry source said.

French rival Orange (ORAN.PA), which operates a substantial part of the fiber network in the country, said it was not affected by the attacks.

French media reported major internet outages in big cities like Paris, Lyon, Bordeaux, Reims and Grenoble, quoting officials saying that vandalism or sabotage was suspected.

Le Parisien newspaper reported that underground cables had been damaged in France’s Seine-et-Marne and Essone departments, adding that these cables were linking the hubs of Paris and Lyon.

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Reporting by Tassilo Hummel, Geert De Clercq and Mathieu Rosemain; editing by Tomasz Janowski, Elaine Hardcastle

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Categories
Markets

World stocks clamber off 18-month lows, but markets on recession watch

 

  • S&P futures up 1.13%, European stocks gain 0.96%
  • MSCI Asia ex-Japan +1.8%, Nikkei +2.64%
  • Worries over inflation, tightening policy remain
  • Dollar hovers near 20-year highs on safe-haven demand

LONDON/SHANGHAI, May 13 (Reuters) – World stocks rose from the previous day’s 18-month lows and the dollar pulled back from 20-year highs on Friday, though investors remained nervous about high inflation and the impact of rising interest rates.

Markets are becoming anxious about the possibility of recession, with the S&P getting close to a bear market on Thursday, at nearly 20% off its January all-time high.

In an interview late on Thursday, US Federal Reserve Chair Jerome Powell said the battle to control inflation would “include some pain.” Powell repeated his expectation of half-percentage-point interest rate rises at each of the Fed’s next two policy meetings, while pleading that “we’re prepared to do more.” read more

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The war in Ukraine has aggravated supply chain disruptions and inflationary pressures already in place after more than two years of the COVID-19 pandemic, but stocks enjoyed a bounce on Friday.

“There’s an awful lot of negative sentiment out there, we’re looking at a 40% chance of recession,” said Patrick Spencer, vice chairman of equities at Baird Investment Bank.

“A lot of fund managers have cut their equity allocations and raised cash, though we think this is a correction rather than a bear market.”

MSCI’s world equity index (.MIWD00000PUS) rose 0.32% after hitting its lowest since November 2020 on Thursday, though it was heading for a 4% fall on the week, its sixth straight week of losses.

S&P futures bounced 1.13% after the S&P index dropped 0.13% overnight, with the index also eyeing a sixth straight week of declines.

S&P 500 set for a sixth straight week of falls

European stocks (.STOXX) rallied 0.96% and Britain’s FTSE 100 (.FTSE) gained 1.17%.

The US dollar eased 0.22% to 104.54 against a basket of currencies, but remained close to 20-year highs due to safe haven demand.

Russia has bristled over Finland’s plan to apply for NATO membership, with Sweden potentially following suit.

Moscow called Finland’s announcement hostile and threatened retaliation, including unspecified “military-technical” measures. read more

The dollar rose 0.36% to 128.76 yen , while the euro gained 0.3% to $1.0408, recovering from Thursday’s five-year lows.

Cryptocurrency bitcoin also turned higher, cracking through $30,000 after the collapse of TerraUSD, a so-called stablecoin, drove it to a 16-month low of around $25,400 on Thursday. read more

“Some traders may see the sharp fall this month as an opportunity to buy the dip, but given the hugely volatile nature of the coins, the crypto house of cards could tumble further,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown .

The moves higher in equities were mirrored in US Treasuries, with the benchmark US 10-year yield edging up to 2.9221% from a close of 2.817% on Thursday.

The policy-sensitive 2-year yield was at 2.6006%, up from a close of 2.522%.

“Within the shape of the US Treasury curve we are not seeing any particularly fresh recession/slowdown signal, just the same consistent marked slowing earmarked for H2 2023,” Alan Ruskin, macro strategist at Deutsche Bank, said in a note.

German 10-year government bond yields edged up to 0.9250%.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up almost 2% from Thursday’s 22-month closing low, trimming its losses for the week to less than 3%.

Australian shares (.AXJO) gained 1.93%, while Japan’s Nikkei stock index (.N225) jumped 2.64%.

In China, the blue-chip CSI300 index (.CSI300) was up 0.75% and Hong Kong’s Hang Seng (.HSI) rose 2.71%, encouraged by comments from Shangahi’s deputy mayor that the city may be able to start easing some tough COVID restrictions this month. read more

“We had some pretty big moves yesterday, and when you see those big moves it’s only natural to get some retracement, especially since it’s Friday heading into the weekend. There’s not really a new narrative that’s come through,” said Matt Simpson, senior market analyst at City Index.

Oil prices were higher against the backdrop of a pending European Union ban on Russian oil, but were still set for their first weekly loss in three weeks, hit by concerns about inflation and China’s lockdowns slowing global growth.

US crude rose 0.75% to $106.97 a barrel, and global benchmark Brent crude was up 1.05% at $108.58 per barrel.

Spot gold , which had been driven to a three-month low by the soaring dollar, was up 0.2% at $1,824.61 per ounce.

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Reporting by Andrew Galbraith; Editing by Simon Cameron-Moore, Lincoln Feast and Kim Coghill

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Business

Siemens to leave Russia due to Ukraine war, take hefty charge

  • Siemens to leave Russia after 170 years
  • Russia makes up around 1% of total revenues
  • Shares fall after earnings miss
  • CEO condemns the war in Ukraine

ZURICH, May 12 (Reuters) – Siemens (SIEGn.DE) will quit the Russian market due to the war in Ukraine, it said on Thursday, taking a 600 million euro ($630 million) hit to its business during the second quarter, with more costs to eat.

The German industrial and technology group became the latest multinational to announce losses linked to its decision to leave Russia following the Feb. 24 invasion, which Moscow calls a “special military operation”.

Several companies, from brewers Anheuser-Busch InBev (ABI.BR) and Carlsberg to sportswear maker Adidas (ADSGn.DE), carmaker Renault and several banks have been counting the cost of suspending operations in or withdrawing from Russia. read more

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Siemens Chief Executive Roland Busch described the conflict as a “turning point in history.”

“We, as a company, have clearly and strongly condemned this war,” Busch told reporters.

“We’re all moved by the war as human beings. And financial figures must take a back seat in the face of the tragedy. Nevertheless, like many other companies, we’re feeling the impact on our business.”

During the second quarter Siemens incurred 600 million euros in impairment and other charges mostly recorded in its train-making mobility business subsequent to sanctions on Russia, Siemens said.

Busch said further impacts were to be expected, mainly from non-cash charges related to the winding-down of legal entities, revaluation of financial assets and restructuring costs.

“From today’s perspective, we foresee further potential risks for net income in the low- to mid-triple-digit million range, although we can’t define an exact timeframe,” he added.

Siemens shares dropped 5% in early trading as the company missed analysts’ expectations for second-quarter profit.

The Munich company employs 3,000 people in Russia, where it has been active for 170 years. It first went to Russia in 1851 to deliver devices for the telegraph line between Moscow and St Petersburg.

The country now contributes about 1% of Siemens’ annual revenue, with most of the present day business concerned with maintenance and service work on high-speed trains.

Its sites in Moscow and St Petersburg are now being ramped down, Busch said.

The costs weighed on Siemens’ second quarter earnings, with net income halved to 1.21 billion euros ($1.27 billion), missing analysts’ forecasts of 1.73 billion.

The company posted industrial profit of 1.78 billion euros, down 13% from a year earlier and also missing forecasts.

But demand stayed robust, with orders 22% higher on a comparable basis and revenue 7% higher.

As a result it confirmed its full-year outlook, with comparable revenue growth of 6% to 8% for the full year, with a downturn in mobility expected to be compensated by faster growth in factory automation and digital buildings.

JP Morgan analyst Andreas Willi described the results as “mixed with strong orders, industry leading growth in automation and strong cash conversion.”

($1=0.9508 euros)

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Reporting by John Revill; Editing by Kim Coghill and Clarence Fernandez

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Business

Stocks in a tailspin, dollar soars as hard landing fears grow

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India, February 1, 2020. REUTERS/Francis Mascarenhas

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  • World stocks drop to 1-1/2 yr low, down almost 20% YTD
  • Europe opens down 2% US equity futures struggle
  • Dollar hits 2yr highs on AUD, NZD
  • Bitcoin tumbling, hits new 16-month low
  • Copper buckles to lowest since October

LONDON, May 12 (Reuters) – Shares sank to a 1-1/2 year low on Thursday and the dollar hit its highest in two decades, as fears grew that fast-rising inflation will drive a sharp rise in interest rates that brings the global economy to a standstill.

Those nerves and the still-escalating war in Ukraine took Europe’s main markets down more than 2% in early trade and left MSCI’s top index of world shares (.MIWD00000PUS) at its lowest since late 2020 and down nearly 20% for the year.

The global growth-sensitive Australian and New Zealand dollars fell about 0.8% to almost two-year lows. The Chinese yuan slid to a 19-month trough while the dollar powered to its highest level since late 2002.

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Nearly all the main volatility gauges were signaling danger. Bitcoin was caught in the fire-sale of risky crypto assets as it fell another 8% to $26,570, having been near $40,000 just a week ago and almost $70,000 just last November.

“We have had big moves,” UBS’s UK Chief Investment Officer Caroline Simmons, said referring as well to bond markets and economic expectations. “And when the market falls it does tend to fall quite fast.”

Data on Wednesday had shown US inflation running persistently hot. Headline consumer prices rose 8.3% in April year-on-year, fractionally slower than the 8.5% pace of March, but still above economists’ forecasts for 8.1%. read more

US markets had whipsawed after the news, closing sharply lower, and futures prices were pointing to another round of 0.2%-0.7% falls for the S&P 500, Nasdaq and Dow Jones Industrial later.

“We’re now very much embedded with at least two further (US) hikes of 50 basis points on the agenda,” said Damian Rooney, director of institutional sales at Argonaut in Perth.

“I think we were probably delusional six months ago with the rise of US equities on hopes and prayers and the madness of the meme stocks,” he added.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 2.3% to a 22-month low overnight. Japan’s Nikkei (.N225) fell 1.8%.

Treasuries were bid in both Europe and Asia, especially at the long end, flattening the yield curve as investors braced for near-term hikes to hurt long-run growth – an outcome that would most likely slow or even reverse rate hikes.

The benchmark 10-year Treasury yield had dropped in the US and fell a further 7 bps to 2.8569% on Thursday. The gap between the highly rate-rise sensitive two-year yields and 10-year ones narrowed 4.2 bps .

In Europe, Germany’s 10-year yield, the benchmark for the bloc, fell as much as 12 bps to 0.875%, its lowest in nearly two weeks.

“I think a lot of it is catch up from what happened yesterday, and also there’s still a lot of negative sentiment in the US Treasury curve,” said Lyn Graham-Taylor, senior rates strategist at Rabobank.

SELL IN MAY

The rates outlook is driving up the US dollar and taking the heaviest toll on riskier assets that shot up through two years of stimulus and low-rate lending.

The Nasdaq (.IXIC) is down nearly 8% in May so far and more than 25% this year. Hong Kong’s Hang Seng Tech index (.HSTECH) slid 1.5% on Thursday and is off more than 30% this year.

Cryptocurrency markets are also melting down, with the collapse of the so-called TerraUSD stablecoin highlighting the turmoil as well as the selling in bitcoin and next-biggest-crypto, ether. read more

A weakening growth picture outside the United States is battering investor confidence, too, as war in Ukraine threatens an energy crisis in Europe and lengthening COVID-19 lockdowns in China throw another spanner into supply chain chaos.

Nomura estimated this week that 41 Chinese cities are in full or partial lockdowns, making up 30% of the country’s GDP.

Heavyweight property developer Sunac (1918.HK) said it missed a bond interest payment and will miss more as China’s real estate sector remains in the grip of a credit crunch. read more

The yuan fell to a 19-month low of 6.7631 and has dropped almost 6% in under a month.

The Australian dollar fell 0.8% to a near two-year low of $0.6879. The kiwi slid by a similar margin to $0.6240, though the euro and yen held steady to keep the dollar index just shy of a two-decade peak.

Sterling was at a two-year low of just under $1.22 as well as economic data there caused worries and concerns grew that Britain’s Brexit deal with the EU was in danger of unraveling again due to the same old problem of Northern Ireland’s border. read more

In commodity trade, oil wound back a bit of Wednesday’s surge on growth worries.

Brent crude futures fell 2.3% to $104.93 a barrel, while highly growth-sensitive metals copper and tin slumped over 3.5% and 9% respectively. That marked copper’s lowest level since October.

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Additional reporting by Tom Westbrook in Singapore; Editing by Kim Coghill

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Business

EXCLUSIVE Google paying more than 300 EU publishers for news, more to come

BRUSSELS, May 11 (Reuters) – Alphabet (GOOGL.O) unit Google has signed deals to pay more than 300 publishers in Germany, France and four other EU countries for their news and will roll out a tool to make it easier for others to sign up too, the company told Reuters.

The move to be announced publicly later on Wednesday followed the adoption of landmark EU copyright rules three years ago that require Google and other online platforms to pay musicians, performers, authors, news publishers and journalists for using their work.

News publishers, among Google’s fiercest critics, have long urged governments to ensure online platforms pay fair remuneration for their content. Australia last year made such payments mandatory while Canada introduced similar legislation last month. read more

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“So far, we have agreements which cover more than 300 national, local and specialist news publications in Germany, Hungary, France, Austria, the Netherlands and Ireland, with many more discussions ongoing,” Sulina Connal, director for news and publishing partnerships, said in blogpost seen by Reuters and expected to be published later on Wednesday. The blog did not say how much publishers were being paid.

Two-thirds of this group are German publishers including Der Spiegel, Die Zeit and Frankfurter Allgemeine Zeitung.

“We are now announcing the launch of a new tool to make offers to thousands more news publishers, starting in Germany and Hungary, and rolling out to other EU countries over the coming months,” Connal said in the blogpost.

The tool offers publishers an extended news preview agreement that allows Google to show snippets and thumbnails for a licensing fee.

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Reporting by Foo Yun Chee; Editing by Lisa Shumaker

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Categories
Business

Shares drop, yields shoot up after US inflation data

MILAN, May 11 (Reuters) – World shares turned lower on Wednesday and bond yields shot up after US data showed inflation there slowed down less than expected last month, cementing expectations of aggressive rate hikes by the Federal Reserve.

US futures turned negative after data showed US annual consumer price growth slowed to 8.3% in April from 8.5% in March, suggesting that inflation has probably peaked. The number, however, was above the 8.1% analyst had expected.

Paolo Zanghieri, senior economist at Generali Investments, said the data confirmed the view that the return of inflation to more tolerable values ​​will take time.

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“Overall today’s data add to the case of the strong front-loading called for by (|Fed Chair Jerome) Powell in the last meeting, who also suggested the possibility of two more 50bps rise in June and July,” Zanghieri said. “However, this will keep concern about the possibility of a recession high, and ultimately weakening growth may lead the Fed to temper it tightening after the summer.”

MSCI’s benchmark for global stocks (.MIWD00000PUS) was flat by 1247 GMT, having earlier risen as much as 0.3%. On Tuesday, the index fell to its lowest level since November 2020 on fears Fed tightening could significantly slow down the global economy.

US equity futures turned sharply negative, with the Nasdaq and S&P 500 e-minis down 1% and 0.6% respectively. The pan-European STOXX 600 (.STOXX) equity benchmark index also trimmed gains, and was last up 0.2%.

Money markets ramped up bets of Fed rate hikes by end-2022 to 208 basis points after the US inflation numbers, compared to around 195 bps before.

Earlier in Asia, equities squeezed higher from near two-year lows. Chinese blue chips (.CSI300) rose 1.4% after Shanghai officials said half the city had achieved “zero COVID” status, and after US President Joe Biden said he was considering eliminating Trump era tariffs on China.

Chinese data released on Wednesday, however, showed consumer prices rose 2.1% from a year earlier, more than expected and at the fastest pace in five months, partly due to food prices.

YIELDS SHOOT UP

After falling to their lowest levels in almost a week earlier on Wednesday, benchmark 10-year Treasury yields turned positive after the inflation data, marching back towards the three-year high of 3.203% hit on Monday.

The 10-year yield was last up 6 basis points on the day to 3.0502%, while the 2-year yield , which often reflects the Fed rate outlook, jumped 11 bps to 2.717%.

Euro area government bond yields also sold off following the US data, sending German 10-year yields up 8 bps to 1.084% .

Bets on aggressive Fed tightening have also supported the dollar this year.

The dollar index, which measures its performance against six main peers, reversed earlier weakness and was last up 0.1% to 104.04, closer to the two-decade high of 104.19 reached at the start of the week.

The Fed last week raised interest rates by 50 basis points and Chair Jerome Powell said two more such hikes were likely at the upcoming policy meetings.

There has also been speculation in markets the US central bank will need to move by 75 basis points at one meeting and currently money markets are pricing over 190 basis points of combined rate hikes per year.

“The current problem is that the market is convinced that the Fed is determined to fight inflation and therefore willing to tolerate market volatility and some demand destruction more than in the past. Personally, I’m less convinced of this determination,” said Giuseppe Sersale , fund manager at Anthilia.

Morgan Stanley forecasts 2022 global economic growth to be less than half of last year’s at 2.9%, down from a previous estimate of 3.2%. read more The US bank also cut its year-end target for the S&P 500 by 11% to 3,900 points, while raising its US 10-year yield forecast by 55 bps to 3.15%.

Oil bounced back, buoyed by supply concerns as the European Union works on gaining support for a ban on Russian oil.

Brent rose 2.6% to $105.12 a barrel and US crude rose 3% to $102.77.

Spot gold dipped 0.1% to $1,836.2 an ounce.

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Reporting by Danilo Masoni in Milan, Sujata Rao in London and Alun John in Hong Kong, Editing by William Maclean and Tomasz Janowski

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Categories
Business

Musk says he would reverse Twitter ban on Donald Trump

May 10 (Reuters) – Billionaire Elon Musk said on Tuesday he would reverse Twitter’s ban on former US President Donald Trump when he buys the social media platform, the clearest signal yet of Musk’s intention to cut moderation of the site.

Musk, the world’s richest person and chief executive of electric vehicle maker Tesla Inc (TSLA.O), has inked a $44 billion deal to buy Twitter Inc (TWTR.N). He has called himself a “free speech absolutist,” but given few specific details of his plans.

Musk is expected to become Twitter’s temporary CEO after closing the deal, Reuters previously reported, citing a source familiar with the matter. read more

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The question of reinstating Trump has been seen as a litmus test of how far Musk will go in making changes, even though Trump himself has said he would not return.

Twitter, like other US-based social media platforms, has banned various individuals for violating its policies on misinformation and glorification of violence.

Musk, speaking to a Financial Times conference, added that he and Twitter co-founder Jack Dorsey believe permanent bans should be “extremely rare” and reserved for accounts that operate bots or spread spam.

“Wrong and bad” tweets should be deleted or made invisible and a temporary account suspension could be appropriate, Musk said. “I think permabans just fundamentally undermine trust in Twitter as a town square where everyone can voice their opinion.”

Musk said the decision to ban Trump amplified Trump’s views among people on the political right, and he called the ban “morally wrong and flat-out stupid.”

The suspension of Trump’s account, which had more than 88 million followers, silenced his primary megaphone days before the end of his term and followed years of debate about how social media companies should moderate the accounts of powerful global leaders.

Trump was permanently suspended from Twitter shortly after the Jan. 6, 2021, attack on the US Capitol. Twitter cited “the risk of further incitement of violence” in its decision.

Megan Squire, a senior fellow for data analytics at the Southern Poverty Law Center, said a permanent ban from mainstream networks, or de-platforming, has been a successful tactic in reducing the reach of abusive messaging and behaviors.

Musk has endorsed some limits, telling a European Union official on Monday that EU policy was “exactly aligned” with his own thinking on controlling illegal content. read more

‘THOUGH TO BE EVERYWHERE’

Conservatives, who have accused San Francisco-based Twitter of bias against right-leaning views, have cheered the prospect of Trump’s return to the platform.

Trump “ought to be everywhere he can,” Republican Senator Rick Scott told reporters when asked about Musk’s comments. “We shouldn’t have social media companies that are restricting people’s ability to get their message out.”

Senator Roy Blunt, an establishment Republican who is retiring, was one of several Republicans who said they had no opinion about the possibility of Trump’s returning to Twitter.

“But I suspect that’s a good business decision on (Musk’s) part,” Blount said with a smile.

Democrats have said Trump’s potential reinstatement could constitute a threat to democracy, although some hope Trump could upset their base and rev up turnout in the November midterm elections, with Democrats facing tough challenges in retaining their majority in both houses of Congress.

Twitter declined to comment.

Trump previously told Fox News that he would not return to Twitter if allowed. read more His own social media app, Truth Social, launched on the Apple app store in late February.

Trump has revved up his messaging on the new platform after a slow start, posting about 50 times, mostly in the last week, to his 2.7 million followers. He averaged 18 tweets a day when he was president.

There was no immediate comment from a Trump spokesperson.

White House press secretary Jen Psaki said on Tuesday that Twitter’s ban on Trump was a matter for the company to decide. The Biden administration wants online platforms to protect freedom of speech but also ensure they are not forums for disinformation, she said.

During the conference, Musk said the deal to acquire Twitter could be done in two to three months in the “best-case scenario.”

Earlier on Tuesday, Twitter shares fell to a level that indicated the stock market believed it was unlikely Musk would make the acquisition for $44 billion, as he originally agreed. read more

Musk’s decision to buy Twitter has concerned some Tesla investors and put pressure on Tesla’s stock. Musk on Tuesday added that he would stay at Tesla “as long as I can be useful.”

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Reporting by Sheila Dang in Dallas; additional reporting by Alexandra Ulmer, David Morgan, Eva Mathews, Jeff Mason, Nandita Bose, Greg Roumeliotis, Katie Paul and Peter Henderson Editing by Nick Zieminski and Leslie Adler

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Mobile

‘Taking the pistachio’ – Tesco rapped by watchdog over mobile phone ads

A general view of Tesco Extra store, in Warrington, Britain, January 13, 2022. REUTERS/Jason Cairnduff

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LONDON, May 11 (Reuters) – Britain’s advertising regulator has banned five adverts for Tesco’s (TSCO.L) mobile phone business, saying its use of the words “shiitake” and “pistachio” alluded to expletives and were offensive.

The Advertising Standards Authority (ASA) said on Wednesday three of the ads were also banned because they were inappropriate for display where they could be seen by children.

The watchdog said one full-page newspaper ad for Tesco Mobile in the Daily Express and in the Daily Mail featured text which stated: “What a load of shiitake” in large text, followed by an image of a mushroom. Underneath that, text stated: “The big mobile networks are raising your bills again. Join us for prices that stay fixed.”

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It said another ad in the same newspapers featured text which stated: “They’re taking the pistachio” in large text, followed by an image of a nut.

The ASA said a digital outdoor poster stated “For F”, followed by three images of pasta, and the text “sake”. The three images of pasta then rolled away to reveal the text “For fettuccine’s sake”.

A paid-for Twitter post and another digital poster had similar messages.

The ASA concluded the allusion to expletives were likely to cause serious and widespread offense. It ruled the ads must not appear again in the form in which they had been complained about.

Tesco, Britain’s biggest retailer, said it prepared the ads with consumers in mind who were facing increasing prices and believed they were unlikely to cause offence.

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Reporting by James Davey Editing by Mark Potter

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Internet

Russia downed satellite internet in Ukraine -Western officials

  • US: Russian hack aimed at disrupting Ukrainian communications
  • UK: Hack was ‘deliberate and malicious’
  • EU: Attack on Viasat caused ‘indiscriminate’ outages
  • Russia routinely denies it carries out cyberattacks

NEWPORT, Wales, May 10 (Reuters) – Russia was behind a massive cyberattack against a satellite internet network which took tens of thousands of modems offline at the onset of Russia-Ukraine war, the United States, Britain, Canada, Estonia and the European Union said on Tuesday.

The digital assault against Viasat’s (VSAT.O) KA-SAT network in late February took place just as Russian armor pushed into Ukraine. US Secretary of State Antony Blinken said the cyberattack was intended “to disrupt Ukrainian command and control during the invasion, and those actions had spillover impacts into other European countries.”

British Foreign Secretary Liz Truss called the satellite internet hack “deliberate and malicious” and the Council of the EU said it caused “indiscriminate communication outages” in Ukraine and several EU member states.

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The Viasat outage remains the most publicly visible cyberattack carried out since Russia’s invasion of Ukraine, in part because the hack had immediate knock-on consequences for satellite internet users across Europe and because the crippled modems often had to be replaced manually.

“After those modems were knocked offline it wasn’t like you unplug them and plug them back in and reboot and they come back,” the US National Security Agency’s Director of Cybersecurity Rob Joyce told Reuters on the sidelines of a cybersecurity conference on Tuesday.

“They were down and down hard; they had to go back to the factory to be swapped out.”

The precise consequences of the hack on the Ukrainian battlefield have not been made public, but government contracts reviewed by Reuters show that KA-SAT has provided internet connectivity to Ukrainian military and police units. read more

The satellite modem sabotage caused a “huge loss in communications in the very beginning of war,” Ukrainian cybersecurity official Victor Zhora said in March. read more

In a statement, Ukraine’s State Service of Special Communications and Information Protection said that Russia “is an aggressor country attacking Ukraine not only on our land, but in cyberspace too.”

The Russian Embassy in Washington did not immediately return a message seeking comment. Moscow routinely denies it carries out offensive cyber operations.

Viasat said in a statement that it “recognized” the announcement and would continue to work with government officials to investigate the hack. The company did not provide an update on a Viasat official’s comments to Reuters in late March that the hackers were still trying to interfere with the company’s operations, albeit to limited effect. L2N2VW2XC

The satellite modem-wrecking cyberattack remains the most visible hack of the war, but many others have taken place since and not all of them have been made public. read more

“That was the biggest single event,” said Joyce. “It certainly had new and novel tradecraft, but there have been multiple attacks.”

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Reporting by James Pearson. Writing by Raphael Satter; Additional reporting by William James in London; Editing by William Maclean, Angus MacSwan, Bernadette Baum and David Gregorio

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Business

Wall Street dips while treasury yields, oil prices drop

NEW YORK, May 10 (Reuters) – Wall Street stocks turned lower in a volatile session and oil prices fell on Tuesday with risk appetite appearing to falter as investors turned to safe havens such as Treasuries amid fears about inflation and slowing economic growth.

US Treasuries rallied, with the yield on the benchmark 10-year note tumbling from more than a three-year high to below 3% as the market reassessed the inflation outlook a day before US consumer price index (CPI) data is released.

Markets have been volatile due to a combination of surging inflation and fears that monetary tightening aimed at slowing price increases would also cause a slowdown in economic growth.

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Last week central banks in the United States, Britain and Australia raised interest rates and investors girded for more tightening as policymakers fought soaring inflation.

While all three US indexes were rebounding from Monday’s sell-off, enthusiasm for equities quickly faded.

“There’s a tonne of cross currents right now. Liquidity is drying up and volatility is the name of the game,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management in Boston.

“The tech and growth side of the (equities) market is such a big weight. Treasury yields going up as fast as they did spooked risk assets. If they could take a breather here it could let the market … find some footing. “

Miskin was reassured by Federal Reserve official comments on Tuesday that suggested efforts to engineer a soft landing. In particular he pointed to Cleveland Federal Reserve Bank President Loretta Mester’s comment that while unemployment may increase and growth slow, the Fed’s policy tightening should not push the economy into a “sustained downturn.” read more

“They’ve been so hawkish so any slight move off that the market wants to sniff that out,” said Miskin. “Sentiment wise a lot of people are looking for capitulation. The dots aren’t completely connecting yet for that.”

At 1130 EDT (1530 GMT), the Dow Jones Industrial Average (.DJI) fell 97.45 points, or 0.3%, to 32,148.25, the S&P 500 (.SPX) lost 10.91 points, or 0.27%, to 3,980.33 and the Nasdaq Composite ( .IXIC) dropped 16.49 points, or 0.14%, to 11,606.76.

The pan-European STOXX 600 index (.STOXX) rose 0.80% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS) shed 0.33%, after earlier rising as much as 1.44%.

The US dollar was choppy on Tuesday as it held near a two-decade high ahead of a key reading on inflation that could provide insight on the Fed policy path. read more

The dollar index rose 0.164%, with the euro down 0.19% to $1.0535. The Japanese yen weakened 0.03% versus the greenback at 130.29 per dollar, while Sterling was last trading at $1.2301, down 0.24% on the day.

Earlier data showed China’s export growth slowed to its weakest in almost two years, as the central bank pledged to step up support for the slowing economy. read more

Oil prices fell in volatile trade as the market balanced impending European Union sanctions on Russian oil with demand concerns related to coronavirus lockdowns in China, a strong dollar and growing recession risks.

US crude recently fell 1.85% to $101.18 per barrel and Brent was at $103.92, down 1.91% on the day.

Benchmark 10-year notes last rose 33/32 in price to yield 2.9497%, from 3.079% late on Monday.

Spot gold dropped 0.4% to $1,847.41 an ounce. US gold futures % to $1,857.10 an ounce.

Elsewhere, Bitcoin was up 4% after earlier falling to its lowest level since July 2021. Tuesday’s gain allowed it to recover some losses when it tumbled 11.8% on Monday plunge, which had been its biggest daily fall since May 2021 . read more

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Additional reporting by Herbert Lash and Chuck Mikolajczak in New York, Elizabeth Howcroft in London; Editing by Bradley Perrett, Raissa Kasolowsky and Alexander Smith

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