Category: Europe

  • MIL-OSI USA: Senate Intelligence Committee Chairman Presses Domain Registrars Providing Support to Russian Influence Efforts

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON  U.S. Senator Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, today wrote to American domain registrars NameCheap, GoDaddy, Cloudflare, NewFold Digital, NameSilo, and Versign – which were identified in a Department of Justice affidavit as providing domain services to the “Doppelganger” Russian covert influence network – pressing them to take immediate steps to address the continued abuse of their services for foreign covert influence, particularly in the period preceding and following Election Day.

    Through the maintenance of both inauthentic social media accounts and websites, the hallmark of the Russian government-directed foreign malign influence campaigns known as “Doppelganger” has been the impersonation of Western media institutions online, including outlets like the Washington Post, Fox News, and Forward. Russian influence operatives have been attributed impersonating dozens of legitimate organizations online as early as September 2022, when researchers at the nonprofit EU Disinfo Lab first identified the network’s campaigns, using misleading domains (such as www.washingtonpost.pm, www.washingtonpost.ltd, www.fox-news.in, www.fox-news.top and www.forward.pw) to covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the 2024 presidential election. 

    Citing research conducted by Meta in 2023, Warner noted several ways in which the global domain name industry has enabled Russian malign influence activity, including withholding vital domain name registration information from good-faith researchers and digital forensic investigators, ignoring inaccurate registration information submitted by registrants, and failing to identify repeated instances of intentional and malicious domain name squatting used to impersonate legitimate organizations.

    Wrote Warner today, “Information included in the affidavit supporting recent seizure of a number of these domains provides further indication of your industry’s apparent inattention to abuses by foreign actors engaged in covert influence. Specifically, Russian influence actors utilized a number of tactics, techniques, and procedures that – against the backdrop of extensive open source literature on Doppelganger’s practices – should have alerted your company to abuse of its services, including the use of cryptocurrency to purchase domains, heavy reliance on anonymizing infrastructure to access your registration services (including the use of IPs widely associated with cybercriminal obfuscation network activity), the use of credit cards issued to a U.S. company “that has significant ties to, and employees based in, Russia,” use of fictitious and poorly-backstopped identities for registrants, and in at least one instance the use of a Russian address.”

    Noted Warner, “While foreign covert influence represents one of the most egregious abuses of the domain name system, the industry’s inattention to abuse has been well-documented for years, enabling malicious activity such as phishing campaigns, drive-by malware, and online scams – all possible because of malicious actors using your services… Given the continued lapses of your industry to address these abuses, I believe Congress may need to evaluate legislative remedies that promote greater diligence across the global domain name ecosystem.”

    “In the interim, your company must take immediate steps to address the continued abuse of your services for foreign covert influence – particularly in the days preceding, and weeks immediately following, Election Day. With the prospect of a close election – and declassified intelligence demonstrating the past practice of foreign adversaries in spreading narratives that undermine confidence in election processes– Americans will be particularly reliant on media organizations and state and local government websites to provide authoritative and accurate election information. It is imperative that your company work to diminish the risk that foreign adversaries use impersonated domains to promote false narratives in this context,” Warner concluded.

    As Chairman of the Senate Select Committee on Intelligence, Warner has been consistently warning about the threat posed by foreign covert influence networks ahead of the 2024 elections. Last month, he convened a public hearing with representatives from Alphabet, Meta and Microsoft examining the roles and responsibilities of U.S. platforms to prevent the spread of foreign propaganda and misinformation on their networks.

    A copy of the letters are available here.

    MIL OSI USA News

  • MIL-OSI Europe: Philip R. Lane: Underlying inflation: an update

    Source: European Central Bank

    Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Inflation: Drivers and Dynamics Conference 2024 organised by the Federal Reserve Bank of Cleveland and the ECB

    Cleveland, 24 October 2024

    Introduction

    My aim today is to provide an update on underlying inflation in the euro area.[1] The concept of underlying inflation plays a central role in the conduct of the ECB’s monetary policy: our interest rate decisions are based on our assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. This three-pronged reaction function complements the traditional focus on the inflation forecast for inflation-targeting central banks with the signals embodied in underlying inflation measures, while also incorporating the evolving evidence on the strength of monetary policy transmission in the calibration of the monetary stance. This pragmatic approach reflects the value of data dependence under highly atypical macroeconomic conditions.

    Latest developments in euro area underlying inflation

    Underlying inflation is the persistent component of inflation, signalling where headline inflation will settle in the medium term after temporary factors have vanished. In practice, underlying inflation is unobservable and needs to be proxied or estimated. There are two broad categories of measures that aim to capture this concept. Exclusion-based measures omit certain items – such as energy and food – that are typically volatile and more sensitive to global factors than domestic fundamentals. Model-based measures, meanwhile, capture more complex channels and dynamics, subject to the limitations imposed by sensitivity to model estimation. An overview of such measures is shown in Chart 1.

    Model-based measures at the ECB include the Persistent and Common Component of Inflation (PCCI), which is constructed by estimating a dynamic factor model that extracts the persistent and common component of inflation from granular price data at the item-country level, thereby exploiting the relative advantages of both cross-sectional and time series approaches.[2] Another model-based measure is Supercore inflation, which picks out those items that are estimated to co-move with the business cycle. These model-based measures are reduced form in nature and, among other factors, reflect the empirical contribution of monetary policy tightening to delivering disinflation. That is to say, if current inflation is above target, one reason why underlying inflation might run below current inflation is that the projected mean reversion is partly driven by endogenous monetary policy tightening that has historically contributed to the return of inflation to the target over the medium term. In turn, monitoring the evolution of underlying inflation is an important element in diagnosing whether monetary policy is appropriately calibrated.

    Each of the underlying inflation indicators tracked by the ECB has declined significantly since the post-pandemic inflation surges, with the range narrowing towards its historical average. The majority of indicators are hovering around 1.9 per cent to 2.8 per cent, down from a much wider range between 3.4 per cent to 7.5 per cent at its peak (Chart 1). Core inflation is the most prominent exclusion-based measure, defined as HICP inflation excluding energy and food: this edged down to 2.7 per cent in September, continuing the marked decline from 4.5 per cent a year ago.[3]In terms of model-based measures, the PCCI today is at the bottom of the range, standing at 1.9 per cent in September and having hovered around 2.0 per cent since the end of last year. Most other measures that we regularly monitor have also come down over the past year and show signs of continued easing in September.

    One challenge in interpreting standard indicators of underlying inflation is that these were affected by the past extraordinary supply shocks, as well as by temporary mismatches between demand and supply. As I pointed out in my March 2023 speech, it is helpful to think of headline inflation as being driven by three factors: (i) underlying inflation; (ii) a reverting component; and (iii) pure noise.[4] In particular, the major dislocations of recent years induced a substantial reverting component of inflation that was sufficiently long-lasting not to constitute pure noise but that was also expected to fade out over time. These dislocations included the impact of energy inflation and supply bottlenecks. To capture their indirect impact on measures of underlying inflation, we have in parallel monitored adjusted measures of underlying inflation that “partial out” these indirect influences. These adjusted measures had a significantly lower peak rate of underlying inflation than the un-adjusted measures but, by construction, were also less affected by the sharp turnaround in energy prices and easing of supply bottlenecks during 2023 that flattered the speed of progress in the un-adjusted measures. Currently, these adjustments bring down the range to between 2 per cent and 2.5 per cent, as the impact of past supply-side shocks has greatly diminished. In particular, the forward-looking PCCI measures are by now free of such impacts.

    Chart 1

    Euro area underlying inflation measures and their adjusted counterpart

    (annual percentage changes)

    Exclusion-based measures

    Model-based measures

    Sources: Eurostat and ECB calculations.

    Notes: HICPX stands for HICP inflation excluding energy and food; HICPXX for HICP inflation excluding energy, food, travel-related items, clothing and footwear; PCCI is the persistent and common component of inflation, while Supercore aggregates HICPX items sensitive to domestic business cycle. See also Bańbura et al. (2023), “Underlying inflation measures: an analytical guide for the euro area”, Economic Bulletin, Issue 5, ECB. The ‘adjusted’ measures abstract from energy and supply-bottlenecks shocks using a large SVAR, see Bańbura, M., Bobeica, E. and Martínez-Hernández, C. 2023, “What drives core inflation? The role of supply shocks.”, ECB Working Paper No 2875.

    The latest observations are for September 2024.

    Each measure of underlying inflation provides useful information about future headline inflation, although their forecasting performance varies. Chart 2 shows the root mean squared forecast error (RMSFE) for each measure vis-à-vis inflation two years ahead and vis-à-vis a smoothed inflation rate. Forecasting performance is normalised to the predictive power of current headline inflation: that is, a ratio below unity means that the measure does a better job than current headline inflation in forecasting future inflation. Indeed, most measures beat current headline inflation in forecasting future inflation. The PCCI measures have the best predictive power, while most exclusion-based measures perform less well.

    However, in understanding the inflation process and calibrating monetary policy, it is essential to look beyond overall predictive power and also examine how the various underlying inflation measures can shed light on the speed and sequencing of the disinflation process. For instance, external shocks were a prominent feature of the post-pandemic economic landscape.[5] While the PCCI measures provided a powerful signal that these shocks would ultimately fade out, the delayed and lagged adjustment in indicators such as services inflation, domestic inflation and wage growth served to highlight that convergence to the medium-term target would not be immediate.[6] I will focus on these indicators in the next part of my talk.

    Chart 2

    Predictive properties of underlying inflation measures for HICP inflation

    (RMSFE of each measure relative to RMSFE of headline inflation)

    Sources: Eurostat and ECB calculations.

    Notes: RMSFE 24 months and RMSFE smoothed HICP are the root mean squared forecast errors of each measure with respect to headline inflation 24 months ahead and the two-year centred moving average of inflation covering two years of future data, respectively, divided by the RMSFE of headline inflation. A ratio lower than unity indicates that the measure performs better than headline inflation. The sample covers the period from April 2001 to September 2024.

    Services, domestic inflation and wages

    Domestic inflation captures price dynamics in consumption items that are less influenced by external factors, being more determined by domestic economic conditions, including monetary policy. While trends in the relative prices of globally-determined components (mostly in the energy, food and goods categories) mean that the two per cent target for overall inflation is not a target for domestic inflation, domestic inflation cannot remain at an excessive level if the target is to be sustainably achieved.[7] Moreover, assessing the strength of domestic inflation is essential to the calibration of monetary policy, since domestic inflation will be more responsive than global inflation components to the impact of monetary policy via the dampening of domestic demand.

    The domestic inflation indicator monitored at the ECB is an aggregation of HICP items with low import content.[8] As shown in Chart 3, domestic inflation and services inflation co-move closely. This reflects the dominance of services items in the domestic inflation measures, accounting for 97 per cent of the overall index. At the same time, it remains useful to maintain domestic inflation and services inflation as separate measures: while almost 80 per cent of the services items are included in the domestic inflation index, the overall services category also includes highly-traded services items (Chart 4). These internationally-traded services items currently have a lower contribution to services inflation than domestic services items.

    Chart 3

    Services inflation and domestic inflation

    (annual percentage changes)

    Sources: Eurostat and ECB staff calculations.

    Notes: Domestic inflation is an aggregate of HICP items with a relatively low import intensity, as explained in Fröhling, A., O’Brien, D. and Schaefer, S. (2022), “A new indicator of domestic inflation for the euro area”, Economic Bulletin, Issue 4, ECB. 
    The latest observations are for September 2024.

    Chart 4

    Services inflation and domestic inflation

    (percentage point contribution to services inflation)

    Sources: Eurostat and ECB staff calculations.

    Notes: The chart shows all services items and the x axis shows the contribution of each item to total services inflation in September 2024. In weighted terms, 80 per cent of services are in domestic inflation and 97 per cent of domestic inflation is composed of services items. Domestic inflation also includes three good items which are not shown on the chart.

    The large supply-side shocks of the post-pandemic period have been feeding through to domestic inflation with a lag compared with other measures of underlying inflation. Large supply-side shocks have travelled across sectors and consumption items at different speeds, so it is unsurprising that these had differential impacts on the various measures of underlying inflation, depending on their nature and construction.

    Domestic inflation and services inflation tend to lag headline inflation more than other measures, exhibiting a lower frequency of price adjustment compared with the energy, food and goods categories in the HICP.[9] For this reason, many items in services inflation and domestic inflation were late movers that responded with a much longer lag to the latest inflationary shock, such that annual services inflation remains elevated.[10] Chart 5 shows the impact of energy and supply-chain bottlenecks on the PCCIs, domestic inflation and other measures of underlying inflation. Among these measures, PCCIs are more forward-looking and have picked up certain shocks faster, but with the byproduct that the effects of the shocks also faded quicker. Other indicators, like domestic inflation, are more backward-looking, and the currently higher levels also reflect the still ongoing propagation of past shocks. In similar vein, the past shocks took longer to build up in domestic inflation and are also taking longer to dissipate.

    Chart 5

    Impact of energy and supply-side bottlenecks shocks across measures of underlying inflation

    (percentage points)

    Impact of energy-related shocks

    Impact of global supply chain-related shocks

    Sources: Eurostat and ECB calculations

    Notes: The range covers the estimated impact of shocks across all monitored underlying inflation measures. The impact of the energy and supply bottleneck shocks are estimated in a large SVAR, see Bańbura, M. et al. (2023), op. cit..

    The latest observations are for September 2024.

    The PCCI for services indicates that there is currently a sizeable gap between services inflation and its medium-term underlying trend, suggesting there is scope for downward adjustment in services inflation in the coming months. Services PCCI has been around 2.4 per cent since the end of last year, well below the current annual rate for services (Chart 6, left panel).[11] This difference suggests that idiosyncratic and non-persistent factors are currently driving services inflation. Examples of such idiosyncratic factors include the base effect related to the introduction of the cheap travel Deutschland-ticket in Germany in May 2023, rent inflation in the Netherlands, and items that reprice less frequently, such as insurance or other administered prices (like hospital services) in some countries.

    Over time, the fading out of these idiosyncratic and temporary factors should means that services inflation declines towards the underlying rate. Indeed, momentum indicators for services confirm the slight easing of inflation dynamics. While services momentum (i.e. the three-month-on-three-month growth rate of the seasonally-adjusted index) remains high, it has been continuously easing since May (Chart 6, right panel). The month-on-month seasonally-adjusted rate markedly dropped in September. [12]

    Chart 6

    Services inflation

    (annual percentage changes (left panel) and annualised three-month-on-three-month and month-on-month changes (right panel))

    Gap compared with PCCI

    Momentum of services inflation

    Sources: Eurostat and ECB staff calculations.

    Note: The latest observations are for September 2024.

    Services and domestic inflation are closely linked to wage growth: the expected easing of wage growth in 2025, together with the impact of past monetary policy tightening, should contribute to further disinflation. Wages constitute a higher direct share in costs of services than goods and Chart 7 highlights the strong link between domestic inflation, services and wages: their level is normally similar and they closely co-move with each other.[13] Chart 7 also shows how pressures in these three components can take time to moderate following a tightening in policy.

    Chart 7

    Services and domestic inflation and wage growth after episodes of monetary policy tightening

    (annual percentage changes)

    Sources: Eurostat, ECB and ECB calculations.

    Notes: Shaded areas show monetary policy tightening episodes. CPE stands for compensation per employee. The dotted line shows latest Eurostat data up to Q2 2024 for CPE carried forward with quarter-on-quarter rates from the September ECB staff projections. The latest observations are for the second quarter of 2024 for CPE and the third quarter of 2024 for the rest.

    Wage growth is expected to ease from its current high level, with the cumulative increase in nominal wages over 2023-2024 largely restoring the purchasing power that was lost during the inflation surges of 2021-2022. Wage pressures are currently still high: the growth rate of compensation per employee stood at 4.5 per cent in the second quarter of 2024, albeit down from its peak of 5.6 per cent in the second quarter of 2023.

    Recently, the incoming information for 2024 in the ECB wage tracker indicator of latest agreements shows that wage agreements signed in 2024 had substantially lower structural wage growth for the next 12 months if their previous agreement was signed in 2023 or 2022, as compared with 2021 (Chart 8, left panel). Moreover, in the months ahead, there are fewer wage agreements coming up for renegotiation that have not had an agreement since the surge in inflation (Chart 8, right panel). This suggests that the catching up motive in wage negotiations is losing ground as inflation normalises. Forward-looking indicators suggest further diminishing wage pressures into 2025 (Chart 9). The forward-looking wage tracker (dark blue line in Chart 9) shows the wage growth until the end of 2025 in the available contracts that have been agreed and signed.

    One caveat in interpreting developments in the forward- looking wage tracker is that, since it only considers agreements that are active in the future, the contract coverage on which it is based declines as contracts expire (solid grey area in Chart 9). For this reason, scenarios for the expiring contracts (in the grey striped area) can help to assess risks around the outlook for wages. The scenarios illustrated in Chart 9 assume different renegotiated annual wage growth for expired contracts: (i) full pass-through of HICP and real productivity growth top-up to wages; (ii) HICPX and real productivity growth top-up to wages; (iii) wages increase at the same very strong level as contracts signed in the second quarter of 2024 that were still recouping large real wage losses (this is an upper bound scenario). Even this upper-bound scenario points to a slowdown in wage pressures in 2025 compared with 2024. This reflects in part that base effects, for example those related to high one-off payments this year, will dampen future wage growth in year-on-year terms.

    Chart 8

    Euro area wage tracker

    (annual percentage changes (left panel) and millions of workers (right panel))

    12-months-ahead growth for contracts signed in 2024 by its preceding agreement signing year

    Expiring agreements by preceding contract signing

    Sources: Calculated based on micro data on wage agreements provided by the Deutsche Bundesbank, Banco de España, the Dutch employer association (AWVN), Oesterreichische Nationalbank, Bank of Greece, Banca d’Italia, Bank of Ireland and Banque de France.

    Note: The latest observations are for June 2025 for the workers under expiring agreements.

    Chart 9

    Euro area wage tracker – forward-looking scenarios

    (annual percentage changes)

    Sources: ECB staff calculations based on the ECB wage tracker database.

    Notes: The forecast scenarios take sectors with contracts expiring after the current date and assumes that new contracts are concluded with a structural wage increase per year based on a full pass-through of projected (September 2024 ECB staff projections) HICP or HICPX inflation and productivity growth (scenarios HICP+PROD and HICPX+PROD), or at the same rate of wage increase observed for contracts signed in the second quarter of 2024 (forecast scenario Q2 2024). The forward-looking tracker only considers active agreements. All scenarios include one-off payments smoothed over 12 months.

    The latest observations are for December 2025.

    The latest information from surveys reinforces the projection of easing wage growth that will underpin the moderation in services inflation and domestic inflation. Chart 10 presents consecutive rounds of various ECB surveys, which provide a wealth of valuable information that helps us gauge the pulse of the economy in real time. The incoming survey information on wage growth provided by both firms and professional forecasters confirm the narrative embedded in our September 2024 ECB staff projection that wage growth will ease in 2025 compared with 2024, primarily owing to the fading out of the catch-up dynamic that has dominated wage negotiations between 2022 and 2024.

    Chart 10

    Eurosystem and ECB staff macroeconomic projections on wages and survey-based wage expectations

    (annual percentage changes)

    Sources: Survey of Professional Forecasters (SPF), June 2024 Eurosystem Staff Macroeconomic Projections and September 2024 ECB Staff Macroeconomic Projections, September and October 2024 Consensus Economics Forecasts, July and October Corporate Telephone Survey (CTS) and the survey on the access to finance of enterprises (SAFE) for the first and second quarters of 2024. Notes: The SAFE survey asks 12-month-ahead wage growth, while all the other surveys are for calendar years.

    In summary, in analysing services inflation and domestic inflation, it is crucial to distinguish between the underlying persistent component that matters for the medium term and the backward-looking reverting component that takes time to fade out but that ultimately reflects the staggered nature of the adjustment process to the original and extraordinary inflation shocks. This backward-looking component has been substantial: the inflation shocks of 2021-2022 spread across sectors at varying speeds. The slowest-moving sectors were those in which prices adjust more slowly or are most closely tied to wage adjustment. For these indicators, we need patience as the normalisation process takes time.

    Conclusion

    In my remarks today, I have sought to provide an update on the dynamics of underlying inflation. I have emphasised that underlying inflation measures not only serve to extract the persistent component from the latest inflation readings but also provide insights into the nature of disinflation, especially in relation to the staggered nature of the adjustment process. In particular, the analysis of underlying inflation suggests that 2024 is a transition year, in which backward-looking components are still playing out. But the analysis of underlying inflation also indicates that the disinflation process is well on track, and inflation is set to return to target in the course of 2025.

    MIL OSI Europe News

  • MIL-OSI Economics: WTO hosts event on role of youth in promoting “Trade for Peace” in fragile states

    Source: WTO

    Headline: WTO hosts event on role of youth in promoting “Trade for Peace” in fragile states

    In his opening remarks, Deputy Director-General Xiangchen Zhang said: “The youth are not just the leaders of tomorrow; they are the change-makers of today.” He stressed the importance of including young voices in decision-making, noting that the WTO’s Trade for Peace (T4P) Programme’s Future Leaders Initiative aims to empower youth as active agents of stability and prosperity.
    An “Intergenerational Perspectives on Trade and Peace” panel brought together Ambassador Alan Wolff, Distinguished Visiting Fellow at the Peterson Institute for International Economics, Ms. Afomia Andualem, CEO and Co-Founder of Agelgil Eco- Packaging in Ethiopia, Mr. Eric Andrew, a WTO Young Trade Leader and Founder of AgrofixiNG in Nigeria, and Ms. Maria Guterres, Vice-Coordinator of the Timorese Youth Initiative for Development.
    The panelists explored the historical connection between trade and peace, with each speaker sharing their perspectives on how youth can contribute to fostering peace through trade.
    The event saw the launch of videos showcasing findings from students of the University of St. Gallen University in Switzerland and from experts in the area of trade and peace. These videos stemmed from a project with the University of St. Gallen undertaken from September to December 2023 aimed at delving into the intersection of trade and peace.
    The videos sparked lively breakout discussions, where participants explored practical steps to enhance youth involvement in the link between trade and peace. The discussions also encompassed the research findings of students taking part in the autumn 2023 TradeLab International Economic Law Clinic at the Geneva Graduate Institute, who explored the interlinkages between trade and peace agreements and negotiations.
    The event culminated in a collective call to action, delivered by Kérshia Cavele, Project Coordinator of the Trade for Peace Programme, urging policymakers to support youth-driven initiatives and create pathways for sustainable peace through trade. She noted that the event underscored the growing recognition of youth as essential players in addressing the challenges facing fragile and conflict affected states. By fostering academic insights with real-world experiences, the “Trade for Peace: Future Leaders Initiative” continues to pave the way for innovative solutions that leverage the multilateral trading system as a tool for peacebuilding.
    The youth event was organized during the 2024 Geneva Peace Week, which brings together organizations in Geneva and their international partners to share knowledge and best practice. At the Opening Ceremony, Ms. Milzat Salime of the WTO’s Trade for Peace team emphasized the vital role of youth in peacebuilding. WTO Deputy Director General Xiangchen Zhang participated in a high-level panel titled Peace, Trade, Development and Innovations: Insights from International Leaders and Ms Maika Oshikawa, Director of the WTO’s Accessions Division, delivered opening remarks in the session titled Trade and SME-led Growth in Fragile and Conflict-Affected Settings: Key Principles for Inter-Agency Collaboration.
    Background
    The Trade for Peace (T4P) Programme emerged from the vision of the g7+ WTO Accessions Group, a group of fragile and conflict-affected states (FCS) associated with WTO accession. Launched at the 11th WTO Ministerial Conference in 2017, the Group’s aim is to integrate FCS into the multilateral trading system through WTO membership, strengthening economic and trade policy frameworks while promoting transparency and good governance. Initially organized under the “Trade for Peace through WTO Accession” initiative, it expanded into the T4P Programme in 2021.
    The T4P Programme highlights trade and economic integration as key components in fostering durable peace and stability in fragile regions. Building on this foundation, the Trade for Peace: Future Leaders Initiative extends these efforts by engaging youth, focusing on raising awareness of their role in peacebuilding through trade, providing platforms for their voices, and fostering innovative solutions.

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    MIL OSI Economics

  • MIL-OSI Europe: Immobilised assets: Council greenlights up to €35 billion in macro-financial assistance to Ukraine and new loan mechanism implementing G7 commitment

    Source: Council of the European Union

    The Council today adopted a financial assistance package to Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to €35 billion and a loan cooperation mechanism that will support Ukraine in repaying loans for up to €45 billion provided by the EU and G7 partners.

    The financial assistance package aims at supporting Ukraine in covering its urgent financing needs that have increased due to Russia’s intensified aggression against Ukraine. The exceptional MFA will contribute to covering Ukraine´s financing gap, thereby supporting macro-financial stability in Ukraine and easing Ukraine´s external financial constraints.

    The exceptional MFA loan and eligible bilateral loans from G7 partners under the ‘Extraordinary Revenue Acceleration (ERA) Loans for Ukraine’ initiative will be repaid by future flows of extraordinary profits accruing to central securities depositories in the EU as a result of the implementation of the immobilisation of Russian sovereign assets.

    The Ukraine loan cooperation mechanism will disburse these funds – as well as possible amounts received as voluntary contributions from Member States and third countries or other sources – in the form of financial support to Ukraine, to assist it in servicing and repaying all G7 loans.

    The up to €35 billion MFA loan is the EU’s contribution to the G7 loan of up to €45 billion. The new MFA operation will be linked to policy conditions that are consistent with the Ukraine Facility, in particular the Ukraine Plan. The management and control systems proposed under the Ukraine Plan and specific provisions on the prevention of fraud and other irregularities will also apply to the MFA loan.

    EU borrowing to fund the extraordinary MFA loan to Ukraine will be guaranteed by the EU budget headroom.

    The MFA loan is expected to be made available to Ukraine before the end of 2024 and have a maximum duration of 45 years.

    According to new rules also adopted today, 95% of the proceeds that have been generated by central securities depositories (CSDs) in the EU as a result of their implementation of the immobilisation of Russian sovereign assets and that have been transferred to the Union will be allocated to the EU budget and will now be used for the Ukraine Loan Cooperation Mechanism (ULCM), which will disburse these funds in the form of financial support to Ukraine, to assist it in servicing and repaying the loans. The remaining 5% will continue to be allocated to the European Peace Facility.

    The new allocation will start applying from the second half of 2025 (to the second biannual payment of the financial contribution made in 2025 and to all payments thereafter).

    Next steps

    The legal acts adopted today will enter into force on the day after its publication in the Official Journal of the EU.

    Background

    On 19 September 2024 the Commission presented a proposal for a regulation on an exceptional macro-financial assistance (MFA) loan and a Ukraine loan cooperation mechanism. At the same time, the High representative presented a proposal for a Council implementing decision on restrictive measures in view of Russia’s actions destabilising the situation in Ukraine and, together with the Commission, a joint proposal for a Council implementing regulation concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.

    Subject to EU law, Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by this war.

    In view of a speedy adoption and ensuring that the macro-financial assistance reaches Ukraine as soon as possible, the European Parliament and the Council adopted the Commission’s proposal for a regulation without changes. The European Parliament voted on the text in first reading on 22 October 2024 and the Council by written procedure, which ended today. The two implementing acts were also adopted by the Council by written procedure today.

    G7 Leaders announced in June 2024 the launch of the “Extraordinary Revenue Acceleration” loans for Ukraine, to make available approximately $ 50 billion (€45 billion) for Ukraine that will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilisation of Russian sovereign assets held in the European Union and other relevant jurisdictions.  In its conclusions, the European Council on 27 June 2024 invited the Commission, the High Representative and the Council to take work forward. The financial package adopted today implements these commitments.

    Until now, extraordinary profits stemming from the immobilisation of Russian sovereign assets and available to the EU have been channelled principally through the European Peace Facility to support Ukraine’s military capabilities, and to a lesser extent through the Ukraine Facility to support the country’s reconstruction and modernisation. On 26 July 2024, a first instalment of €1.5 billion was made available by the EU in support of Ukraine.

    MIL OSI Europe News

  • MIL-OSI: Origin Bancorp, Inc. Reports Earnings For Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $18.6 million, or $0.60 diluted earnings per share for the quarter ended September 30, 2024, compared to net income of $21.0 million, or $0.67 diluted earnings per share, for the quarter ended June 30, 2024. Pre-tax, pre-provision (“PTPP”)(1) earnings was $28.3 million for the quarter ended September 30, 2024, compared to $32.0 million for the linked quarter.

    “I am pleased with the balance sheet trends we showed in the third quarter,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am confident these trends will continue and our bankers will capitalize on opportunities throughout our markets.”

    (1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

    Financial Highlights

    • Total loans held for investment (“LHFI”) were $7.96 billion at both September 30, 2024, and June 30, 2024. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.46 billion at September 30, 2024, reflecting an increase of $8.9 million, or 0.12%, compared to June 30, 2024.
    • Noninterest-bearing deposits were $1.89 billion at September 30, 2024, reflecting an increase of $27.1 million, or 1.5%, compared to June 30, 2024.
    • Net interest income was $74.8 million for the quarter ended September 30, 2024, reflecting an increase of $914,000, or 1.2%, compared to the linked quarter.
    • Our book value per common share was $36.76 as of September 30, 2024, reflecting an increase of $1.53, or 4.3%, compared to June 30, 2024. Tangible book value per common share(1) was $31.37 at September 30, 2024, reflecting an increase of $1.60, or 5.4%, compared to June 30, 2024.
    • Stockholders’ equity was $1.15 billion at September 30, 2024, reflecting an increase of $49.8 million, or 4.5%, compared to June 30, 2024.
    • At September 30, 2024, and June 30, 2024, the ratio of Company-level common equity Tier 1 capital to risk-weighted assets was 12.46%, and 12.15%, respectively, the Tier 1 leverage ratio was 10.93% and 10.70%, respectively, and the total capital ratio was 15.45% and 15.16%, respectively. The ratio of tangible common equity to tangible assets(1) was 9.98% at September 30, 2024, compared to 9.47% at June 30, 2024.

    (1) Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their most directly comparable GAAP measures.

    Results of Operations for the Three Months Ended September 30, 2024

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended September 30, 2024, was $74.8 million, an increase of $914,000, or 1.2%, compared to the quarter ended June 30, 2024, $813,000 of which was driven by one additional day in the current quarter. Higher interest rates drove a net increase of $147,000 in net interest income, which was reflected in a $1.2 million increase in interest income earned on interest-earnings assets offset by a $1.1 million increase in interest expense paid on interest-bearing liabilities.

    Higher interest rates on LHFI drove a $2.0 million increase in the yield for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, $1.5 million of which was driven by real estate-based loans. The average rate on LHFI increased to 6.67% for the quarter ended September 30, 2024, compared to 6.58% for the quarter ended June 30, 2024. Higher interest rates on savings and interest-bearing transaction accounts drove a $1.1 million increase in interest expense, compared to the quarter ended June 30, 2024. The average rate on interest-bearing deposits increased to 4.01% for the quarter ended September 30, 2024, compared to 3.95% for the quarter ended June 30, 2024.

    The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020.

    The NIM-FTE was 3.18% for the quarter ended September 30, 2024, representing a one- and a four-basis-point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2024, was 6.09%, an increase of five and 40 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2024, was 4.04%, representing a six- and 45-basis point increase compared to the linked quarter and the prior year same quarter, respectively.

    As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, we reversed $1.2 million of accrued loan interest during the quarter ended June 30, 2024, due to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. This reversal of accrued loan interest income negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points for the linked quarter. Had we not experienced the reversal of the $1.2 million of accrued interest income during the quarter ended June 30, 2024, our NIM-FTE would have been 3.22% for the linked quarter, and we would have experienced a four-basis point decrease in our current NIM-FTE compared to the linked quarter. There was no equivalent interest income reversal during the current quarter and these loans remain on non-accrual.

    Credit Quality

    The table below includes key credit quality information:

      At and For the Three Months Ended   Change   % Change
    (Dollars in thousands, unaudited) September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      Linked
    Quarter
      Linked
    Quarter
    Past due LHFI $ 38,838     $ 66,276     $ 20,347     $ (27,438 )   (41.4)%
    Allowance for loan credit losses (“ALCL”)   95,989       100,865       95,177       (4,876 )   (4.8 )
    Classified loans   107,486       118,254       64,021       (10,768 )   (9.1 )
    Total nonperforming LHFI   64,273       75,812       31,608       (11,539 )   (15.2 )
    Provision for credit losses   4,603       5,231       3,515       (628 )   (12.0 )
    Net charge-offs   9,520       2,946       2,686       6,574     223.2  
    Credit quality ratios(1):                  
    ALCL to nonperforming LHFI   149.35 %     133.05 %     301.12 %     16.30 %   N/A
    ALCL to total LHFI   1.21       1.27       1.26       (0.06 )   N/A
    ALCL to total LHFI, adjusted(2)   1.28       1.34       1.30       (0.06 )   N/A
    Classified loans to total LHFI   1.35       1.49       0.85       (0.14 )   N/A
    Nonperforming LHFI to LHFI   0.81       0.95       0.42       (0.14 )   N/A
    Net charge-offs to total average LHFI (annualized)   0.48       0.15       0.14       0.33     N/A

    ___________________________

    (1) Please see the Loan Data schedule at the back of this document for additional information.
    (2)  The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, our credit metrics were negatively impacted by certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. Our investigation of this activity remains ongoing and is not final; however, as a result of a forbearance agreement with one of our impacted customer relationships, our past due LHFI declined $26.4 million when compared to the quarter ended June 30, 2024. There was no material change in the level of our nonperforming or classified LHFI principal balances between the current quarter and the linked quarter as a result of the questioned activity. We continue to work with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity, targeting a conclusion of this analysis by the end of this year. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

    Past due LHFI were $38.8 million for the quarter ended September 30, 2024, compared to $66.3 million at June 30, 2024. Of the $27.4 million decrease, $26.4 million were impacted by or related to the questioned activity. The remaining net decrease in past due LHFI was primarily due to charge-offs or payoffs in commercial and industrial past due loans during the quarter ended September 30, 2024.

    Nonperforming LHFI decreased $11.5 million for the quarter reflecting a decrease in the percentage of nonperforming LHFI to LHFI to 0.81% compared to 0.95% for the linked quarter. The decrease in nonperforming loans was primarily driven by three commercial and industrial loan relationships totaling $14.6 million at June 30, 2024, $10.4 million of which were charged-off and $4.2 million were paid down during the current quarter.

    Classified loans decreased $10.8 million to $107.5 million at September 30, 2024, reflecting 1.35% as a percentage of total LHFI, down 14 basis points from the linked quarter. The decrease in classified loans was primarily driven by the same three commercial and industrial loan relationships mentioned in the nonperforming loan paragraph directly above.

    Noninterest Income

    Noninterest income for the quarter ended September 30, 2024, was $16.0 million, a decrease of $6.5 million, or 28.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.2 million, $725,000 and $621,000 in the change in fair value of equity investments, mortgage banking revenue and other income, respectively.

    The decrease in change in fair value of equity investments was due to a $5.2 million positive valuation adjustment on a non-marketable equity security recognized during the linked quarter with no comparable amount recognized during the current quarter.

    The decrease in mortgage banking revenue was primarily due to an $833,000 combined decrease in the pipeline and interest rate lock commitment fair values during the current quarter compared to the linked quarter.

    The decrease in other income was primarily due to an $818,000 gain on sale of bank property recognized in the linked quarter with no comparable amount recognized in the current quarter.

    Noninterest Expense

    Noninterest expense for the quarter ended September 30, 2024, was $62.5 million, a decrease of $1.9 million, or 2.9% from the linked quarter. The decrease was primarily driven by a decrease of $1.6 million and in other noninterest expense.

    The decrease in other expenses resulted from recognizing contingent liabilities totaling approximately $1.2 million related to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market, as described previously, in the linked quarter with no comparable liability incurred in the current quarter. Also, contributing to the quarter over quarter decline was a $357,000 decrease in corporate membership fees.

    Financial Condition

    Loans

    • Total LHFI were $7.96 billion at both September 30, 2024, and June 30, 2024, and reflected an increase of $388.7 million, or 5.1%, compared to September 30, 2023.
    • Total LHFI, excluding MW LOC, were $7.46 billion at September 30, 2024, representing an increase of $8.9 million, or 0.1%, from June 30, 2024, and an increase of $179.8 million, or 2.5%, from September 30, 2023.
    • During the quarter ended September 30, 2024, compared to the linked quarter, we experienced declines in construction/land/land development loans and MW LOC of $25.8 million and $11.3 million, respectively, partially offset by growth in multi-family real estate loans of $36.1 million.

    Securities

    • Total securities were $1.18 billion at both September 30, 2024, and June 30, 2024, and reflected a decrease of $129.8 million, or 9.9%, compared to September 30, 2023.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $94.2 million at September 30, 2024, an improvement of $32.9 million, or 25.9%, from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.21 years as of September 30, 2024, compared to 4.28 years as of June 30, 2024.

    Deposits

    • Total deposits at September 30, 2024, were $8.49 billion, a decrease of $24.3 million, or 0.3%, compared to the linked quarter, and represented an increase of $112.1 million, or 1.3%, from September 30, 2023. The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $205.2 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits. The decrease in brokered deposits was primarily replaced with customer deposits.
    • Excluding brokered deposits, total deposit increased $180.9 million, or 2.3%, to $8.05 billion, primarily due to increases of $87.0 million, $64.4 million and $27.1 million in money market deposits, interest-bearing demand deposits and noninterest-bearing demand deposits, respectively.
    • At September 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 22.3%, compared to 21.9% and 24.0% at June 30, 2024, and September 30, 2023, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 23.5%, compared to 23.7% and 26.1% at June 30, 2024, and September 30, 2023, respectively.

    Borrowings

    • FHLB advances and other borrowings at September 30, 2024, were $30.4 million, a decrease of $10.3 million, or 25.3%, compared to the linked quarter and represented an increase of $18.2 million, or 149.3%, from September 30, 2023.

    Stockholders’ Equity

    • Stockholders’ equity was $1.15 billion at September 30, 2024, an increase of $49.8 million, or 4.5%, compared to $1.10 billion at June 30, 2024, and an increase of $146.7 million, or 14.7%, compared to September 30, 2023.
    • The increase in stockholders’ equity from the linked quarter is primarily due to a decrease in accumulated other comprehensive loss of $32.9 million and net income of $18.6 million, partially offset by dividends declared of $4.8 million during the current quarter.

    Conference Call

    Origin will hold a conference call to discuss its third quarter 2024 results on Thursday, October 24, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 84865 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ324.

    If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high-profile bank failures, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; changes in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

    Contact:

    Investor Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
    (Unaudited)

      Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                       
    Income statement and share amounts (Dollars in thousands, except per share amounts)
    Net interest income $ 74,804     $ 73,890     $ 73,323     $ 72,989     $ 74,130  
    Provision for credit losses   4,603       5,231       3,012       2,735       3,515  
    Noninterest income   15,989       22,465       17,255       8,196       18,119  
    Noninterest expense   62,521       64,388       58,707       60,906       58,663  
    Income before income tax expense   23,669       26,736       28,859       17,544       30,071  
    Income tax expense   5,068       5,747       6,227       4,119       5,758  
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    PTPP earnings(1) $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
    Basic earnings per common share   0.60       0.68       0.73       0.43       0.79  
    Diluted earnings per common share   0.60       0.67       0.73       0.43       0.79  
    Dividends declared per common share   0.15       0.15       0.15       0.15       0.15  
    Weighted average common shares outstanding – basic   31,130,293       31,042,527       30,981,333       30,898,941       30,856,649  
    Weighted average common shares outstanding – diluted   31,239,877       31,131,829       31,078,910       30,995,354       30,943,860  
                       
    Balance sheet data                  
    Total LHFI $ 7,956,790     $ 7,959,171     $ 7,900,027     $ 7,660,944     $ 7,568,063  
    Total LHFI excluding MW LOC   7,461,602       7,452,666       7,499,032       7,330,978       7,281,770  
    Total assets   9,965,986       9,947,182       9,892,379       9,722,584       9,733,303  
    Total deposits   8,486,568       8,510,842       8,505,464       8,251,125       8,374,488  
    Total stockholders’ equity   1,145,673       1,095,894       1,078,853       1,062,905       998,945  
                       
    Performance metrics and capital ratios                  
    Yield on LHFI   6.67 %     6.58 %     6.58 %     6.46 %     6.35 %
    Yield on interest-earnings assets   6.09       6.04       5.99       5.86       5.69  
    Cost of interest-bearing deposits   4.01       3.95       3.85       3.71       3.47  
    Cost of total deposits   3.14       3.08       2.99       2.84       2.61  
    NIM – fully tax equivalent (“FTE”)   3.18       3.17       3.19       3.19       3.14  
    Return on average assets (annualized) (“ROAA”)   0.74       0.84       0.92       0.55       0.96  
    PTPP ROAA (annualized)(1)   1.13       1.28       1.30       0.82       1.33  
    Return on average stockholders’ equity (annualized) (“ROAE”)   6.57       7.79       8.57       5.26       9.52  
    Book value per common share $ 36.76     $ 35.23     $ 34.79     $ 34.30     $ 32.32  
    Tangible book value per common share(1)   31.37       29.77       29.24       28.68       26.78  
    Adjusted tangible book value per common share(1)   34.39       33.86       33.27       32.59       32.37  
    Return on average tangible common equity (annualized) (“ROATCE”)(1)   7.74 %     9.25 %     10.24 %     6.36 %     11.48 %
    Efficiency ratio(2)   68.86       66.82       64.81       75.02       63.59  
    Core efficiency ratio(1)   67.48       65.55       65.24       70.55       60.49  
    Common equity tier 1 to risk-weighted assets(3)   12.46       12.15       11.97       11.83       11.46  
    Tier 1 capital to risk-weighted assets(3)   12.64       12.33       12.15       12.01       11.64  
    Total capital to risk-weighted assets(3)   15.45       15.16       14.98       15.02       14.61  
    Tier 1 leverage ratio(3)   10.93       10.70       10.66       10.50       10.00  

    __________________________

    (1) PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (3) September 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
       

    Origin Bancorp, Inc.
    Selected Year-To-Date Financial Data
    (Unaudited)

      Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts)   2024       2023  
           
    Income statement and share amounts  
    Net interest income $ 222,017     $ 226,568  
    Provision for credit losses   12,846       14,018  
    Noninterest income   55,709       50,139  
    Noninterest expense   185,616       174,310  
    Income before income tax expense   79,264       88,379  
    Income tax expense   17,042       18,004  
    Net income $ 62,222     $ 70,375  
    PTPP earnings(1) $ 92,110     $ 102,397  
    Basic earnings per common share   2.00       2.29  
    Diluted earnings per common share   2.00       2.28  
    Dividends declared per common share   0.45       0.45  
    Weighted average common shares outstanding – basic   31,051,672       30,797,399  
    Weighted average common shares outstanding – diluted   31,160,867       30,903,222  
           
    Performance metrics      
    Yield on LHFI   6.61 %     6.19 %
    Yield on interest-earning assets   6.04       5.50  
    Cost of interest-bearing deposits   3.94       3.03  
    Cost of total deposits   3.07       2.22  
    NIM-FTE   3.18       3.24  
    Adjusted NIM-FTE(2)   3.18       3.21  
    ROAA (annualized)   0.84       0.94  
    PTPP ROAA (annualized)(1)   1.24       1.37  
    ROAE (annualized)   7.62       9.45  
    ROATCE (annualized)(1)   9.04       11.47  
    Efficiency ratio(3)   66.83       62.99  
    Core efficiency ratio(1)   66.09       59.94  

    ____________________________

    (1) PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for nine months ended September 30, 2024, by removing the $20,000 net purchase accounting amortization from net interest income. And, for the nine months ended September 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
    (3) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
       

    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)

      Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                       
    Interest and dividend income (Dollars in thousands, except per share amounts)
    Interest and fees on loans $ 133,195   $ 129,879   $ 127,186     $ 123,673     $ 121,204  
    Investment securities-taxable   6,536     6,606     6,849       7,024       8,194  
    Investment securities-nontaxable   905     893     910       1,124       1,281  
    Interest and dividend income on assets held in other financial institutions   3,621     4,416     3,756       3,664       4,772  
    Total interest and dividend income   144,257     141,794     138,701       135,485       135,451  
    Interest expense                  
    Interest-bearing deposits   67,051     65,469     62,842       59,771       55,599  
    FHLB advances and other borrowings   482     514     518       220       3,207  
    Subordinated indebtedness   1,920     1,921     2,018       2,505       2,515  
    Total interest expense   69,453     67,904     65,378       62,496       61,321  
    Net interest income   74,804     73,890     73,323       72,989       74,130  
    Provision for credit losses   4,603     5,231     3,012       2,735       3,515  
    Net interest income after provision for credit losses   70,201     68,659     70,311       70,254       70,615  
    Noninterest income                  
    Insurance commission and fee income   6,928     6,665     7,725       5,446       6,443  
    Service charges and fees   4,664     4,862     4,688       4,889       4,621  
    Other fee income   2,114     2,404     2,247       2,118       2,006  
    Mortgage banking revenue (loss)   1,153     1,878     2,398       (719 )     892  
    Swap fee income   106     44     57       196       366  
    Gain (loss) on sales of securities, net   221         (403 )     (4,606 )     (7,173 )
    Change in fair value of equity investments       5,188                 10,096  
    Other income   803     1,424     543       872       868  
    Total noninterest income   15,989     22,465     17,255       8,196       18,119  
    Noninterest expense                  
    Salaries and employee benefits   38,491     38,109     35,818       35,931       34,624  
    Occupancy and equipment, net   6,298     7,009     6,645       6,912       6,790  
    Data processing   3,470     3,468     3,145       3,062       2,775  
    Office and operations   2,984     3,072     2,502       2,947       2,868  
    Intangible asset amortization   1,905     2,137     2,137       2,259       2,264  
    Regulatory assessments   1,791     1,842     1,734       1,860       1,913  
    Advertising and marketing   1,449     1,328     1,444       1,690       1,371  
    Professional services   2,012     1,303     1,231       1,440       1,409  
    Loan-related expenses   751     1,077     905       1,094       1,220  
    Electronic banking   1,308     1,238     1,239       1,103       1,384  
    Franchise tax expense   721     815     477       942       520  
    Other expenses   1,341     2,990     1,430       1,666       1,525  
    Total noninterest expense   62,521     64,388     58,707       60,906       58,663  
    Income before income tax expense   23,669     26,736     28,859       17,544       30,071  
    Income tax expense   5,068     5,747     6,227       4,119       5,758  
    Net income $ 18,601   $ 20,989   $ 22,632     $ 13,425     $ 24,313  
    Basic earnings per common share $ 0.60   $ 0.68   $ 0.73     $ 0.43     $ 0.79  
    Diluted earnings per common share   0.60     0.67     0.73       0.43       0.79  
                                       

    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)

    (Dollars in thousands) September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets                  
    Cash and due from banks $ 159,337     $ 137,615     $ 98,147     $ 127,278     $ 141,705  
    Interest-bearing deposits in banks   161,854       150,435       193,365       153,163       163,573  
    Total cash and cash equivalents   321,191       288,050       291,512       280,441       305,278  
    Securities:                  
    AFS   1,160,965       1,160,048       1,190,922       1,253,631       1,290,839  
    Held to maturity, net of allowance for credit losses   11,096       11,616       11,651       11,615       10,790  
    Securities carried at fair value through income   6,533       6,499       6,755       6,808       6,772  
    Total securities   1,178,594       1,178,163       1,209,328       1,272,054       1,308,401  
    Non-marketable equity securities held in other financial institutions   67,068       64,010       53,870       55,190       63,842  
    Loans held for sale   7,631       18,291       14,975       16,852       14,944  
    Loans   7,956,790       7,959,171       7,900,027       7,660,944       7,568,063  
    Less: ALCL   95,989       100,865       98,375       96,868       95,177  
    Loans, net of ALCL   7,860,801       7,858,306       7,801,652       7,564,076       7,472,886  
    Premises and equipment, net   126,751       121,562       120,931       118,978       111,700  
    Mortgage servicing rights                     15,637       19,189  
    Cash surrender value of bank-owned life insurance   40,602       40,365       40,134       39,905       39,688  
    Goodwill   128,679       128,679       128,679       128,679       128,679  
    Other intangible assets, net   39,272       41,177       43,314       45,452       42,460  
    Accrued interest receivable and other assets   195,397       208,579       187,984       185,320       226,236  
    Total assets $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
    Liabilities and Stockholders’ Equity                  
    Noninterest-bearing deposits $ 1,893,767     $ 1,866,622     $ 1,887,066     $ 1,919,638     $ 2,008,671  
    Interest-bearing deposits excluding brokered interest-bearing deposits   5,137,940       4,984,817       4,990,632       4,918,597       4,728,263  
    Time deposits   1,023,252       1,022,589       1,030,656       967,901       968,352  
    Brokered deposits   431,609       636,814       597,110       444,989       669,202  
    Total deposits   8,486,568       8,510,842       8,505,464       8,251,125       8,374,488  
    FHLB advances and other borrowings   30,446       40,737       13,158       83,598       12,213  
    Subordinated indebtedness   159,861       159,779       160,684       194,279       196,825  
    Accrued expenses and other liabilities   143,438       139,930       134,220       130,677       150,832  
    Total liabilities   8,820,313       8,851,288       8,813,526       8,659,679       8,734,358  
    Stockholders’ equity:                  
    Common stock   155,837       155,543       155,057       154,931       154,534  
    Additional paid-in capital   535,662       532,950       530,380       528,578       525,434  
    Retained earnings   548,419       534,585       518,325       500,419       491,706  
    Accumulated other comprehensive loss   (94,245 )     (127,184 )     (124,909 )     (121,023 )     (172,729 )
    Total stockholders’ equity   1,145,673       1,095,894       1,078,853       1,062,905       998,945  
    Total liabilities and stockholders’ equity $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
                                           

    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                       
    LHFI (Dollars in thousands)
    Owner occupied commercial real estate $ 991,671     $ 959,850     $ 948,624     $ 953,822     $ 932,109  
    Non-owner occupied commercial real estate   1,533,093       1,563,152       1,472,164       1,488,912       1,503,782  
    Construction/land/land development   991,545       1,017,389       1,168,597       1,070,225       1,076,756  
    Residential real estate – single family   1,414,013       1,421,027       1,373,532       1,373,696       1,338,382  
    Multi-family real estate   434,317       398,202       359,765       361,239       349,787  
    Total real estate loans   5,364,639       5,359,620       5,322,682       5,247,894       5,200,816  
    Commercial and industrial   2,074,037       2,070,947       2,154,151       2,059,460       2,058,073  
    MW LOC   495,188       506,505       400,995       329,966       286,293  
    Consumer   22,926       22,099       22,199       23,624       22,881  
    Total LHFI   7,956,790       7,959,171       7,900,027       7,660,944       7,568,063  
    Less: ALCL   95,989       100,865       98,375       96,868       95,177  
    LHFI, net $ 7,860,801     $ 7,858,306     $ 7,801,652     $ 7,564,076     $ 7,472,886  
                       
    Nonperforming assets(1)                  
    Nonperforming LHFI                  
    Commercial real estate $ 2,776     $ 2,196     $ 4,474     $ 786     $ 942  
    Construction/land/land development   26,291       26,336       383       305       235  
    Residential real estate(2)   14,313       13,493       14,918       13,037       13,236  
    Commercial and industrial   20,486       33,608       20,560       15,897       17,072  
    Consumer   407       179       104       90       123  
    Total nonperforming loans   64,273       75,812       40,439       30,115       31,608  
    Repossessed assets   6,043       6,827       3,935       3,929       3,939  
    Total nonperforming assets $ 70,316     $ 82,639     $ 44,374     $ 34,044     $ 35,547  
    Classified assets $ 113,529     $ 125,081     $ 88,152     $ 84,474     $ 67,960  
    Past due LHFI(3)   38,838       66,276       32,835       26,043       20,347  
                       
    Allowance for loan credit losses                  
    Balance at beginning of period $ 100,865     $ 98,375     $ 96,868     $ 95,177     $ 94,353  
    Provision for loan credit losses   4,644       5,436       4,089       3,582       3,510  
    Loans charged off   11,226       3,706       6,683       3,803       3,202  
    Loan recoveries   1,706       760       4,101       1,912       516  
    Net charge-offs   9,520       2,946       2,582       1,891       2,686  
    Balance at end of period $ 95,989     $ 100,865     $ 98,375     $ 96,868     $ 95,177  
                       
    Credit quality ratios                  
    Total nonperforming assets to total assets   0.71 %     0.83 %     0.45 %     0.35 %     0.37 %
    Nonperforming LHFI to LHFI   0.81       0.95       0.51       0.39       0.42  
    Past due LHFI to LHFI   0.49       0.83       0.42       0.34       0.27  
    ALCL to nonperforming LHFI   149.35       133.05       243.27       321.66       301.12  
    ALCL to total LHFI   1.21       1.27       1.25       1.26       1.26  
    ALCL to total LHFI, adjusted(4)   1.28       1.34       1.30       1.31       1.30  
    Net charge-offs to total average LHFI (annualized)   0.48       0.15       0.13       0.10       0.14  

    ____________________________

    (1) Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
    (2) Includes multi-family real estate.
    (3) Past due LHFI are defined as loans 30 days or more past due.
    (4) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
    (Unaudited)

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Balance   Yield/Rate   Average Balance   Yield/Rate   Average Balance   Yield/Rate
                           
    Assets (Dollars in thousands)
    Commercial real estate $ 2,507,566   5.93 %   $ 2,497,490   5.91 %   $ 2,428,969   5.73 %
    Construction/land/land development   1,019,302   7.37       1,058,972   6.98       1,044,180   7.04  
    Residential real estate(1)   1,824,725   5.56       1,787,829   5.48       1,663,291   5.06  
    Commercial and industrial (“C&I”)   2,071,984   7.96       2,128,486   7.87       2,024,675   7.62  
    MW LOC   484,680   7.64       430,885   7.57       376,275   7.21  
    Consumer   22,739   7.93       22,396   8.06       23,704   7.74  
    LHFI   7,930,996   6.67       7,926,058   6.58       7,561,094   6.35  
    Loans held for sale   14,645   6.28       14,702   6.84       11,829   5.81  
    Loans receivable   7,945,641   6.67       7,940,760   6.58       7,572,923   6.35  
    Investment securities-taxable   1,038,634   2.50       1,046,301   2.54       1,310,459   2.48  
    Investment securities-nontaxable   146,619   2.46       143,232   2.51       216,700   2.35  
    Non-marketable equity securities held in other financial institutions   66,409   2.85       56,270   6.53       58,421   6.47  
    Interest-bearing balances due from banks   229,224   5.46       254,627   5.53       279,383   5.42  
    Total interest-earning assets   9,426,527   6.09       9,441,190   6.04       9,437,886   5.69  
    Noninterest-earning assets   559,309         567,035         597,678    
    Total assets $ 9,985,836       $ 10,008,225       $ 10,035,564    
                           
    Liabilities and Stockholders’ Equity                    
    Liabilities                      
    Interest-bearing liabilities                      
    Savings and interest-bearing transaction accounts $ 5,177,522   3.88 %   $ 5,130,224   3.80 %   $ 4,728,211   3.28 %
    Time deposits   1,469,849   4.47       1,534,679   4.46       1,626,935   4.04  
    Total interest-bearing deposits   6,647,371   4.01       6,664,903   3.95       6,355,146   3.47  
    FHLB advances and other borrowings   40,331   4.75       41,666   4.96       230,815   5.51  
    Subordinated indebtedness   159,826   4.78       159,973   4.83       196,792   5.07  
    Total interest-bearing liabilities   6,847,528   4.04       6,866,542   3.98       6,782,753   3.59  
    Noninterest-bearing liabilities                      
    Noninterest-bearing deposits   1,850,046         1,894,141         2,088,183    
    Other liabilities   162,565         163,273         151,716    
    Total liabilities   8,860,139         8,923,956         9,022,652    
    Stockholders’ Equity   1,125,697         1,084,269         1,012,912    
    Total liabilities and stockholders’ equity $ 9,985,836       $ 10,008,225       $ 10,035,564    
    Net interest spread     2.05 %       2.06 %       2.10 %
    NIM     3.16         3.15         3.12  
    NIM-FTE(2)     3.18         3.17         3.14  

    ____________________________

    (1) Includes multi-family real estate.
    (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
       

    Origin Bancorp, Inc.
    Notable Items
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      $ Impact   EPS
    Impact(1)
      $ Impact   EPS
    Impact(1)
      $ Impact   EPS
    Impact(1)
      $ Impact   EPS
    Impact(1)
      $ Impact   EPS
    Impact(1)
                                           
      (Dollars in thousands, except per share amounts)
    Notable interest income items:                                    
    Interest income reversal on relationships impacted by questioned banker activity $     $     $ (1,206 )   $ (0.03 )   $     $     $     $     $     $  
    Notable provision expense items:                                    
    Provision expense related to questioned banker activity               (3,212 )     (0.08 )                                    
    Provision expense on relationships impacted by questioned banker activity               (4,131 )     (0.10 )                                    
    Notable noninterest income items:                                    
    MSR gain (impairment)                           410       0.01       (1,769 )     (0.05 )            
    Gain (loss) on sales of securities, net   221       0.01                   (403 )     (0.01 )     (4,606 )     (0.12 )     (7,173 )     (0.18 )
    Gain on sub-debt repurchase               81                                            
    Positive valuation adjustment on non-marketable equity securities               5,188       0.13                               10,096       0.26  
    Gain on bank property sale               800       0.02                                      
    Notable noninterest expense items:                                    
    Operating expense related to questioned banker activity   (848 )     (0.02 )     (1,452 )     (0.04 )                                    
    Total notable items $ (627 )     (0.02 )   $ (3,932 )     (0.10 )   $ 7           $ (6,375 )     (0.16 )   $ 2,923       0.07  

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
       

    Origin Bancorp, Inc.
    Notable Items – Continued
    (Unaudited)

      Nine Months Ended September 30,
        2024       2023  
      $ Impact   EPS Impact(1)   $ Impact   EPS Impact(1)
                   
      (Dollars in thousands, except per share amounts)
    Notable interest income items:              
    Interest income reversal on relationships impacted by questioned banker activity $ (1,206 )   $ (0.03 )   $     $  
    Notable provision expense items:              
    Provision expense related to questioned banker activity   (3,212 )     (0.08 )            
    Provision expense on relationships impacted by questioned banker activity   (4,131 )     (0.10 )            
    Notable noninterest income items:              
    MSR gain   410       0.01              
    Loss on sales of securities, net   (182 )           (7,029 )     (0.18 )
    Gain on sub-debt repurchase   81             471       0.01  
    Positive valuation adjustment on non-marketable equity securities   5,188       0.13       10,096       0.26  
    Gain on bank property sale   800       0.02              
    Notable noninterest expense items:        
    Operating expense related to questioned banker activity   (2,300 )     (0.06 )            
    Total notable items $ (4,552 )     (0.12 )   $ 3,538       0.09  

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
       

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                       
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:                  
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    Provision for credit losses   4,603       5,231       3,012       2,735       3,515  
    Income tax expense   5,068       5,747       6,227       4,119       5,758  
    PTPP earnings (non-GAAP) $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
                       
    Calculation of PTPP ROAA:                  
    PTPP earnings $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
    Divided by number of days in the quarter   92       91       91       92       92  
    Multiplied by the number of days in the year   366       366       366       365       365  
    PTPP earnings, annualized $ 112,473     $ 128,571     $ 128,184     $ 80,455     $ 133,249  
                       
    Divided by total average assets $ 9,985,836     $ 10,008,225     $ 9,861,236     $ 9,753,847     $ 10,035,564  
    ROAA (annualized) (GAAP)   0.74 %     0.84 %     0.92 %     0.55 %     0.96 %
    PTPP ROAA (annualized) (non-GAAP)   1.13       1.28       1.30       0.82       1.33  
                       
    Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:
    Total assets $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (39,272 )     (41,177 )     (43,314 )     (45,452 )     (42,460 )
    Tangible assets   9,798,035       9,777,326       9,720,386       9,548,453       9,562,164  
                       
    Total common stockholders’ equity $ 1,145,673     $ 1,095,894     $ 1,078,853     $ 1,062,905     $ 998,945  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (39,272 )     (41,177 )     (43,314 )     (45,452 )     (42,460 )
    Tangible common equity   977,722       926,038       906,860       888,774       827,806  
    Accumulated other comprehensive loss   94,245       127,184       124,909       121,023       172,729  
    Adjusted tangible common equity   1,071,967       1,053,222       1,031,769       1,009,797       1,000,535  
    Divided by common shares outstanding at the end of the period   31,167,410       31,108,667       31,011,304       30,986,109       30,906,716  
    Book value per common share (GAAP) $ 36.76     $ 35.23     $ 34.79     $ 34.30     $ 32.32  
    Tangible book value per common share (non-GAAP)   31.37       29.77       29.24       28.68       26.78  
    Adjusted tangible book value per common share (non-GAAP)   34.39       33.86       33.27       32.59       32.37  
    Tangible common equity to tangible assets (non-GAAP)   9.98 %     9.47 %     9.33 %     9.31 %     8.66 %
                                           
    Calculation of ROATCE:                
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    Divided by number of days in the quarter   92       91       91       92       92  
    Multiplied by number of days in the year   366       366       366       365       365  
    Annualized net income $ 74,000     $ 84,417     $ 91,025     $ 53,262     $ 96,459  
                       
    Total average common stockholders’ equity $ 1,125,697     $ 1,084,269     $ 1,062,705     $ 1,013,286     $ 1,012,912  
    Average goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Average other intangible assets, net   (40,487 )     (42,563 )     (44,700 )     (46,825 )     (43,901 )
    Average tangible common equity   956,531       913,027       889,326       837,782       840,332  
                       
    ROATCE (non-GAAP)   7.74 %     9.25 %     10.24 %     6.36 %     11.48 %
                       
    Calculation of core efficiency ratio:                  
    Total noninterest expense $ 62,521     $ 64,388     $ 58,707     $ 60,906     $ 58,663  
    Insurance and mortgage noninterest expense   (8,448 )     (8,402 )     (8,045 )     (8,581 )     (8,579 )
    Adjusted total noninterest expense   54,073       55,986       50,662       52,325       50,084  
                       
    Net interest income $ 74,804     $ 73,890     $ 73,323     $ 72,989     $ 74,130  
    Insurance and mortgage net interest income   (2,578 )     (2,407 )     (2,795 )     (2,294 )     (2,120 )
    Total noninterest income   15,989       22,465       17,255       8,196       18,119  
    Insurance and mortgage noninterest income   (8,081 )     (8,543 )     (10,123 )     (4,727 )     (7,335 )
    Adjusted total revenue   80,134       85,405       77,660       74,164       82,794  
                       
    Efficiency ratio (GAAP)   68.86 %     66.82 %     64.81 %     75.02 %     63.59 %
    Core efficiency ratio (non-GAAP)   67.48       65.55       65.24       70.55       60.49  
                                           

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures – Continued
    (Unaudited)

      Nine Months Ended September 30,
        2024       2023  
           
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:      
    Net income $ 62,222     $ 70,375  
    Provision for credit losses   12,846       14,018  
    Income tax expense   17,042       18,004  
    PTPP earnings (non-GAAP) $ 92,110     $ 102,397  
           
    Calculation of PTPP ROAA:      
    PTPP Earnings $ 92,110     $ 102,397  
    Divided by the year-to-date number of days   274       273  
    Multiplied by number of days in the year   366       365  
    Annualized PTPP Earnings $ 123,037     $ 136,904  
           
    Divided by total average assets $ 9,951,890     $ 10,004,097  
    ROAA (annualized) (GAAP)   0.84 %     0.94 %
    PTPP ROAA (annualized) (non-GAAP)   1.24       1.37  
           
    Calculation of ROATCE:    
    Net income $ 62,222     $ 70,375  
    Divided by the year-to-date number of days   274       273  
    Multiplied by number of days in the year   366       365  
    Annualized net income $ 83,114     $ 94,091  
           
    Total average common stockholders’ equity $ 1,091,018     $ 995,395  
    Average goodwill   (128,679 )     (128,679 )
    Average other intangible assets, net   (42,576 )     (46,391 )
    Average tangible common equity   919,763       820,325  
           
    ROATCE   9.04 %     11.47 %
           
    Calculation of core efficiency ratio:      
    Total noninterest expense $ 185,616     $ 174,310  
    Insurance and mortgage noninterest expense   (24,895 )     (25,768 )
    Adjusted total noninterest expense   160,721       148,542  
           
    Net interest income $ 222,017     $ 226,568  
    Insurance and mortgage net interest income   (7,780 )     (5,187 )
    Total noninterest income   55,709       50,139  
    Insurance and mortgage noninterest income   (26,747 )     (23,714 )
    Adjusted total revenue   243,199       247,806  
           
    Efficiency ratio   66.83 %     62.99 %
    Core efficiency ratio   66.09       59.94  

    The MIL Network

  • MIL-OSI USA: FBI Ignoring Real Threats To Election Integrity

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    Originally appeared in The Daily Caller

    I entered the Senate SCIF (sensitive compartmented information facility) Sept. 25 to attend an “All Members Classified Briefing on Foreign Threats to U.S. Elections.” I was a little late and arrived during the presentation of Avril Haines, the Director of National Intelligence. Her presentation was followed by FBI Director Christopher Wray and CISA Director Jen Easterly. As Republican Utah Sen. Mike Lee, quoting Yogi Berra, later described the briefing, “It was deja vu all over again.” 

    With straight faces, these directors of federal intelligence and law enforcement were once again warning the U.S. Senate that foreign actors were trying to influence our election. Well, duh! Unfortunately, most of my Senate colleagues seemed to be lapping it up and taking the briefing seriously. After a few minutes of listening to Director Haines, I could only shake my head in disgust. 

    I fully acknowledge that foreign threats are real and serious, but we are well aware they exist and have been persistent for decades. Except for maybe a few specific details, I heard nothing new, and certainly nothing that should be considered or kept classified. And I heard absolutely nothing about the most egregious examples of election interference in our lifetime, or the most significant threats to the integrity of the 2024 election. 

    I was the last senator given the opportunity to ask a question. By this time, there were only four senators left in the briefing. I began my questioning by pointing out that the most egregious act of election interference in our lifetime was the letter solicited by current Secretary of State Antony Blinken, engineered by former Deputy CIA Director Mike Morrell and fast tracked by then-CIA Director Gina Haspel. That letter was written Oct. 19, 2020, less than a month before the November election.  

    A bipartisan group of former U.S. intelligence officials signed the letter, which stated, without evidence, that the Hunter Biden laptop “has all the classic earmarks of a Russian information operation.” Keep in mind, the FBI had seized Hunter’s laptop almost a year earlier and knew full well it was authentic. In the small world and circles of U.S. intelligence and law enforcement, it is inconceivable that those intelligence officials were unaware or unable to ascertain that fact.  

    That letter itself was a “U.S. intelligence information operation.” And it worked exceedingly well. Because of that letter, the Hunter Biden laptop story was effectively suppressed as Russian disinformation, and Joe Biden became president. Subsequent polls show that had the public known about the laptop, Joe Biden would have lost the election. Election interference doesn’t get more egregious or effective than that.

    After making that point, I asked who within the Office of the Director of National Intelligence directed the unsolicited August 2020 FBI briefing given separately to Republican Iowa Sen. Chuck Grassley and me. That briefing, about us being targets of Russian disinformation, also provided no new information and was later leaked to the Washington Post to smear me, thereby interfering in my 2022 reelection. Four years after the briefing, and our relentless efforts to find out who directed it, we still have not been told. I didn’t get the answer Wednesday either.  

    Next, I asked Director Wray what the FBI was doing to investigate smurfing. This clear violation of campaign finance law was first revealed in March 2023 by investigative journalist, James O’Keefe. Using ActBlue, the Democrats’ donation platform, thousands of low-dollar donations are attributed to individuals allegedly without their knowledge — in one instance 5,776 donations totaling $754,124. Director Wray seemed clueless on the issue, and had no idea if the FBI was doing anything to investigate it. 

    At that point, the Democrat senator who chaired the briefing, concluded it. I wasn’t able to ask about my greatest concern regarding the 2024 election — illegal immigrants registering and voting in it. Don’t be under the illusion that just because noncitizens are ineligible to vote, Democrats aren’t willing to overlook that legal technicality to win an election. We already have plenty of evidence that illegal immigrants are registering, sometimes without their knowledge. Ohio just purged 499 illegal immigrants from its voter rolls following a multi-phase audit. Boston officials disclosed that 70 illegal aliens contacted county election officials asking to be  removed from voter registration lists. Virginia recently cancelled 6,303 noncitizen voter registrations. Oregon “mistakenly registered nearly 1,260 possible noncitizens to vote,” its DMV admits.  

    President Biden threw open the borders and directed federal departments to register voters. Does anyone believe that registration effort will be non-partisan, or that some percentage of the millions of illegal immigrants won’t vote in November? Based on last Wednesday’s briefing, I’m confident federal law enforcement won’t have any interest in investigating those crimes either.

    Ron Johnson is a Republican senator from Wisconsin.

    MIL OSI USA News

  • MIL-OSI Security: Former Federal Employee Pleads Guilty to Mishandling Classified Materials

    Source: Office of United States Attorneys

    Margaret Anne Ashby, 26, of Henderson, Nevada, pleaded guilty today for mishandling sensitive documents as a former employee of a Department of Defense component agency.

    As described in the plea agreement, starting in March 2020, Ashby was a civilian employee of a Department of Defense component agency located in the Southern District of Georgia, and during this time held a top secret security clearance as required for her employment.

    From February 2022 to May 2022, Ashby, without authority, knowingly removed documents and materials containing classified information “concerning the national defense or foreign relations of the United States . . . with the intent to retain them at unauthorized locations, including her residence in the Southern District of Georgia and in digital files saved via a personal computing device located in the Southern District of Georgia.”

    A sentencing date has not yet been set. Ashby faces a maximum penalty of five years in prison and three years of supervised release for mishandling sensitive documents, along with substantial financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jill E. Steinberg for the Southern District of Georgia, and Robert Wells of the FBI National Security Branch announced the case.

    The FBI investigated the case.

    Assistant U.S. Attorneys L. Alexander Hamner and Darron J. Hubbard for the Southern District of Georgia and Trial Attorney David J. Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL Security OSI

  • MIL-OSI Banking: Charting the course: prudential regulation and supervision for smooth sailing

    Source: Bank for International Settlements

    Introduction

    Good afternoon, and thank you for inviting me to speak at this conference today.

    It is a privilege to be speaking today as the Chair of the Basel Committee, following my appointment by the Group of Governors and Heads of Supervision (GHOS) in May of this year.1 This is a position that has been previously enjoyed by only 11 people during the Committee’s 50 years. As a Reserve Officer in the Royal Swedish Navy, I would liken this honour as akin to taking the helm of a well steered vessel by seasoned captains. 

    As you know, the work of the Basel Committee since the Great Financial Crisis (GFC) – under the leadership of Nout Wellink, Stefan Ingves and, more recently, Pablo Hernández de Cos – has fundamentally reshaped the regulatory landscape for internationally active banks. The Basel Framework is the cornerstone of the international community’s response to the GFC. Since 2011, banks’ Common Equity Tier 1 (CET1) risk-based capital ratio has increased by over 70% and now stands at around 13.8%.2 Global banking system leverage has almost halved during this period, with an average Tier 1 leverage ratio of just over 6%.3 And banks’ holdings of high-quality liquid assets have more than doubled to over €12.5 trillion, with a corresponding Liquidity Coverage Ratio of over 135%.4

    The Basel III reforms have brought tangible benefits. In sailing, no matter how skilled you are, you can’t control the weather. However, you can prepare your boat with safety protocols and solid equipment. The Committee helps ensure that the global banking system is prepared for the unexpected. There is now an extensive empirical literature that suggests that the Basel III reforms have had an unambiguously positive net macroeconomic effect.5 The reforms have clearly strengthened bank resilience at both the bank and system-wide level, which in turn will help reduce the likelihood and impact of future banking crises. At the same time, banks, particularly strongly capitalised ones, have continued to meet the demand for lending from households and businesses.6

    Just as important as the effects of Basel III is the process by which the reforms were finalised. The Committee consulted extensively when developing Basel III – we do not operate in a vacuum or opaquely. It published no fewer than 10 consultation papers, which collectively spanned a consultation period of almost three years. It engaged extensively with a wide range of external stakeholders. Each consultation was accompanied by a rigorous quantitative impact study, which was supplemented by a half-yearly public Basel III monitoring exercise. So it is reassuring and appropriate to find that a recent academic study concluded that the Committee’s consultation approach is “one of the most procedurally sophisticated” processes among policymaking bodies.7 Moreover, member jurisdictions have undertaken their own rigorous domestic rule-making processes to transpose these standards.

    But the work to fix the banking system fault lines exposed by the GFC is not done. We need to lock in the financial stability benefits of implementing the outstanding Basel III standards in full and consistently, and as soon as possible. I take comfort in the recent unanimous reaffirmation by the GHOS to achieve such an outcome.8 The Committee has been actively monitoring and assessing the full and consistent implementation of Basel III and will continue to do so.

    As this is my maiden speech as Committee Chair, I will outline some high-level principles that I will be relying upon to help guide how I view the work of the Committee. I will also offer a few personal reflections on some topical issues. As a keen sailor, I should apologise in advance for my continued use of maritime language!

    Principle 1: Sail forward but always glance back

    My starting point is that we cannot afford to ignore, or forget, the lessons of history. This time is not different. There have been no fewer than 150 systemic banking crises since 1970.9 Just last year, we saw the most significant system-wide banking stress since the GFC, including the distress of five banks with total assets exceeding one trillion US dollars. While each banking crisis may have had its unique characteristics, the common thread throughout history is that we simply cannot predict when or from where the next crisis will emerge. We therefore need to ensure robust and durable resilience for the global banking system to withstand a range of potential shocks.    

    Banking crises have a profound impact on our economies and social welfare. In my home country of Sweden, the 1990s banking crisis and the GFC resulted in output losses of over 30% and 25%, respectively.10 These are not just numbers, but reflect economic hardships endured by citizens, including job losses and foregone growth potential. We must always remember this stark reality when regulating and supervising banks.

    And yet, despite the painful effects of banking crises, history suggests that the lessons from such events are often forgotten as part of a “regulatory cycle”.11 Memories fade over time, and a view takes hold that this time really is different. As the cycle turns, policymakers, supervisors and risk managers at banks sometimes become complacent and give in to pressures to dilute regulatory safeguards. Such a journey never ends well: it is only a matter of time until stormy waters reveal banks’ stress points and fractures.

    This is not a course that I intend to chart. The reality is that a banking system built upon leverage and maturity transformation will inevitably face episodes of distress. Misconduct, governance failures and imprudent risk management practices further increase the likelihood and impact of crises.

    To be clear, the first and most important source of resilience comes from banks’ own risk management practices and governance arrangements. The boards and management of banks should be the first port of call in managing and overseeing risks; they cannot outsource these functions to supervisors. Yet history suggests that some banks’ boards and senior management occasionally fail in their most elementary responsibilities. So it is critical that bankers, policymakers and supervisors do not forget the lessons from the past and take a medium-term perspective. Consider, for example, the recent growth in the use of so-called synthetic risk transfers (SRTs) by banks across several regions.12 Such transactions are intended to reduce banks’ capital requirements by “transferring” the risks associated with some exposures to a third party – often a non-bank financial intermediary (NBFI) – which provides credit protection or insurance. The Basel Framework allows for such transactions to take place subject to meeting certain criteria, and they may in instances be an effective risk management technique. However, I personally believe that we should not lose sight of the bigger picture and lessons from the GFC. In particular, we should ask ourselves: are there system-wide risks that warrant closer attention? For example, what are the risks if NBFI investors of SRTs are in turn borrowing from other banks? Is there sufficient transparency about the interconnections and potential spillover of risks between banks and NBFIs in these – and other – markets? A natural starting point to help answer these questions is to remind ourselves of the lessons from the GFC. 

    Just like a sailor needs steady winds, strong sails and safety gear for times of stress to ensure a smooth voyage, a bank requires strong prudential regulation and supervision to ensure stability. And its board and senior management should display the leadership and competency of a veteran captain. In addition, it is critical that the Committee remains vigilant and pursues a forward-looking approach to assessing risks and vulnerabilities to help reduce the risk of the global banking system being blown off course into financial storms.

    The Committee’s work should also continue to be anchored by rigorous empirical analysis and not succumb to short-term or specific interests of some external stakeholders. And the GHOS agreed to mark a clear end to the Basel III policy agenda in 2020 when it noted that any further potential adjustments to Basel III “will be limited in nature and consistent with the Committee’s evaluation work”.13 This is why the Committee is pursuing analytical work based on empirical evidence to assess whether specific features of the Basel Framework performed as intended during the 2023 banking turmoil, such as liquidity risk and interest rate risk in the banking book.14 On this note, we recently provided a progress report to the G20 which outlines the progress we have made in the area of liquidity risk.15 This is a good start, but there is still more work to be done. Structural changes affecting the financial system, such as the ongoing digitalisation of finance and role of social media, require policymakers and supervisors to remain alert and be open-minded as to whether any additional regulatory and supervisory measures are needed.

    Principle 2: All hands on deck

    My second guiding principle is the need for global and transparent engagement with a wide range of stakeholders.

    Financial stability is a global public good that requires cross-border cooperation. An open global financial system requires global prudential standards. Failure on this count could result in regulatory fragmentation, regulatory arbitrage and a potential “race to the bottom” leading to a dilution of banks’ resilience.16

    So I will strive to build on the strong track record of Committee members to cooperate and collaborate in tackling cross-border financial stability challenges and shoring up the resilience of the global banking system. We have witnessed the benefits of global cooperation throughout the Committee’s history, including with the Concordat, Basel I, II and III, and the Basel Core Principles, and of course more recently during the Covid-19 period and last year’s banking turmoil. And in a world facing major geopolitical uncertainty, and where the merits of multilateralism are sometimes questioned, it is even more critical for the Committee to remind all stakeholders of the necessity of cross-border cooperation.

    The need for cooperation is not just among Committee members themselves. Given the increasingly cross-sectoral and cross-cutting nature of developments affecting the global financial system – such as the ongoing digitalisation of finance, the growing role of NBFIs, the increasing nodes of interconnections among banks, central counterparties and NBFIs, or climate-related financial risks – the Committee will need to increasingly liaise with a wide range of authorities. This includes ongoing cooperation with central banks and supervisory authorities outside the Basel Committee’s membership, but also financial sector authorities in charge of overseeing conduct, resolution, deposit insurance, payment systems, securities and other NBFIs. In fact, for certain topics there may also be a need to go beyond the financial sector sphere and liaise with authorities with responsibility for accounting, competition, data privacy and security, just to mention a few.

    To this end, it is critical that the Committee continues to seek the views of a wide range of stakeholders, including academics, civil society, legislators, market participants and the general public. Even if we may have different views on specific elements of the Committee’s work, these engagements unquestionably enhance the Committee’s outputs by bringing in different perspectives.

    Principle 3: Keep your heading steady

    My third principle is the importance for the Committee to act as a lighthouse, cutting through the fog and stormy conditions.

    Bank regulation and financial supervision are an anchor to help prevent banks from drifting into risky waters that could endanger the entire economy. A resilient and healthy banking system is one that can best support households and businesses through the robust provision of key financial services across the financial cycle.17

    Let me give you an example from my home country. Before the pandemic, the initial set of Basel III standards were fully implemented in Sweden. These reforms significantly increased Swedish banks’ resilience to shocks. In addition, the Swedish authorities activated the Basel III countercyclical buffer and set it at 2.5%, with the aim to further enhance Swedish banks’ resilience. Doing so allowed us to release this buffer in response to the Covid-19 crisis, which in turn helped Swedish banks to absorb shocks and to lend to creditworthy households and companies throughout the pandemic. The releasability of this buffer facilitated its drawdown by banks in a way that made it genuinely usable.

    It may be tempting for some to argue that regulations should be watered down and that supervision should be less intrusive, in order to promote lending to specific sectors or to “unlock” economic growth. But, as with other areas of economic policymaking, any perceived short-term gains are usually more than offset by longer-term pain. Shaving off a few basis points of capital will not unlock a wave of new lending, but it will weaken your resilience. More generally, being well capitalised is a competitive advantage for banks and their shareholders, as it ensures that they can continue to grow and invest in profitable projects across the financial cycle. The Committee’s work should therefore continue to be centred around its mandate.

    To be clear, this is entirely compatible with stable and healthy earnings that are fundamental to banking and financial stability. So it is reassuring that the sample of banks for which we regularly collect data – many of which are represented here today – have over time been able to both meet new regulatory requirements, make healthy profits and pay out significant dividends. For example, in 2011 banks faced a CET1 capital shortfall from Basel III of about €485 billion. Since then, their profits have exceeded €4 trillion and banks have paid out over €1.3 trillion of common share dividends, while at the same time building capital and liquidity buffers to meet the new requirements.18

    More generally, the Committee will continue to focus its work on those prudential areas that require a global and coordinated response. Its outputs will continue to take the form of global minimum standards to provide a common financial stability baseline across jurisdictions. Jurisdictions are, of course, free to go beyond this baseline if the size and structure of their banking system and the associated risks warrant additional measures. Such measures only reinforce global financial stability. Just as importantly, we will continue to promote strong supervision, including by sharing supervisory experiences and, when needed, developing additional guidance to assist supervisors worldwide.

    In that regard, I am sure all of us can agree that it is in our collective best interest to have global standards. We may have different opinions about Basel III, but I think we can all agree that having a globally consistent level playing field is preferable to a patchwork of disparate regulations. A global compromise – however imperfect it may appear to some – is preferable to a free-for-all framework. Internationally active banks then have a common minimum regulatory baseline which they can manage their business around. Supervisors are able to better assess the relative resilience of their banks across jurisdictions. The scope for regulatory arbitrage is reduced. Level playing fields are enhanced. Now compare this with a fragmented bank regulatory world, where banks would have to comply with completely different rules across borders with no common minimum baseline. Such a scenario could also trigger a race to the bottom across jurisdictions, resulting in a frail regulatory framework that would threaten global financial stability and banks’ own viability. We would all be worse off in such a situation. It is therefore in your own interest to avoid such a scenario and to promote a common and consistent implementation of Basel III.

    Finally, we should keep the fundamentals of bank regulation and supervision in mind. While it may be tempting to focus on the “newest” trends affecting the banking system, we should not lose sight of the more traditional risks, such as credit risk and liquidity risk. Regarding the former, despite repeated headwinds over the past few years, the feared wave of financial problems for households and corporate defaults has yet to appear. Yet I am personally concerned about some stakeholders’ seeming complacency in assuming that the worst is over and that the seas are calm. It is a universal truth that a calm sea does not make a clever sailor.

    With continued uncertainty about interest rate trajectories and the economic outlook, hidden currents and unseen reefs could still pose a challenge. Banks and supervisors must remain vigilant to such risks.

    Principle 4: Sailing to simplicity

    My last principle is to ensure that the Committee continues to adequately balance risk sensitivity with simplicity and comparability. Finance and banking are complex activities, so there is perhaps an understandable temptation to match that complexity in the regulatory framework.

    Yet one does not always fight fire with fire. Undue complexity in prudential regulation can undermine the ability for a bank’s board and senior management to fully understand the risk profile of their bank. It can also impede supervisors’ ability to effectively assess the resilience of banks and create opaque opportunities for arbitrage. And while complex rules may sound conceptually appealing, they may also prove to be challenging to operationalise in practice.

    Banking is as much about risk as it is about uncertainty.19 In such a world, simpler approaches can sometimes be more robust and outperform more complex ones.20 So I personally think that policymaking initiatives should ensure that sufficient attention is placed at striking the right balance between risk sensitivity, simplicity and comparability.

    Conclusion

    In conclusion, the Committee will continue to be guided by its mandate of strengthening the regulation, supervision and practices of banks worldwide. In the near term, when it comes to Basel III, all GHOS members have unanimously reaffirmed their expectation of implementing all aspects of the framework in full, consistently and as soon as possible.21

    More generally, fulfilling our mandate requires us all to remember that:

    • Banks’ boards and senior management are the captains of their ships. You have both the primary and ultimate responsibility for overseeing and managing risks. Regulation and supervision can provide safeguards, but cannot and should not be a substitute for your role in managing your risks prudently.
    • Global bank prudential standards are a public good. We are collectively all better off in a world with global standards than in an autarkic one. Lobbying for deviations at a national level can perhaps provide short-term (private) gains but will ultimately threaten global financial stability. As internationally active banks, it is not in your interest to sail in such an environment.
    • We cannot forget the lessons from past banking crises to prepare effectively for the future. In a financial system undergoing profound structural transformations, such as the digitalisation of finance, the Committee should keep an open mind as to whether additional adjustments to the Basel Framework are warranted over the medium term. And we will focus on global financial stability issues that require a global response.

    As Chair, I am fully committed to leading the Committee in that direction.

    References

    Aikman, D, M Glaesic, G Gigerenzer, S Kapadia, K Kastikopoulos, A Kothiyal, E Murphy and T Neumann (2021): “Taking uncertainty seriously: simplicity versus complexity in financial regulation”, Industrial and Corporate Change, vol 30, no 2, April.

    Basel Committee on Banking Supervision (BCBS) (2020): “Governors and Heads of Supervision commit to ongoing coordinated approach to mitigate Covid-19 risks to the global banking system and endorse future direction of Basel Committee work”, press release, 30 November.

    — (2022a): Evaluation of the impact and efficacy of the Basel III reforms, December.

    — (2022b): Evaluation of the impact and efficacy of the Basel III reforms – Annex, December.

    — (2023): Report on the 2023 banking turmoil, October.

    — (2024a): “Erik Thedéen appointed as Chair of the Basel Committee on Banking Supervision”, press release, 13 May.

    — (2024b): “Governors and Heads of Supervision reiterate commitment to Basel III implementation and provide update on cryptoasset standard”, press release, 13 May.

    — (2024c): “BCBS dashboards”, September.

    — (2024d): The 2023 banking turmoil and liquidity risk: a progress report, October.

    Carstens, A (2019): “The role of regulation, implementation and research in promoting financial stability”, keynote address at the Bank of Spain and CEMFI Second Conference on Financial Stability, Madrid, 3 June.

    Hernández de Cos, P (2019): “The future path of the Basel Committee: some guiding principles”, keynote speech at the Institute for International Finance Annual Membership Meeting, Washington DC, 17 October.

    — (2022): “A resilient transition to net zero”, remarks at the International Economic Forum of the Americas, 28th edition of the Conference of Montreal, 11 July.

    — (2024): “Building on 50 years of global cooperation”, keynote speech at the 23rd International Conference of Banking Supervisors, Basel, 24 April.

    Knight, F (1921): Risk, uncertainty and profit, Houghton Mifflin.

    Laeven, L and F Valencia (2018): “Systemic banking crises revisited”, IMF Working Paper, no 18/206.

    S&P Global (2024): “Banks ramp up credit risk transfers to optimise regulatory capital”, 22 February.

    Viterbo, A (2019): “The European Union in the transnational financial regulatory arena: the case of the Basel Committee on Banking Supervision”, Journal of International Economic Law, vol 1, no 24, June.


    This speech and the views expressed are those of the individual and do not necessarily reflect the views and/or position of the BIS or CPMI.

    MIL OSI Global Banks

  • MIL-OSI United Kingdom: Aid organisations must be able to provide assistance in Syria without interference: UK statement at the UN Security Council

    Source: United Kingdom – Executive Government & Departments

    Statement by Ambassador Barbara Woodward, UK Permanent Representative to the UN, at the UN Security Council meeting on Syria.

    The conflict in Lebanon has had a devastating impact on civilians including Syrians who had sought refuge from the Assad regime in Lebanon. Hundreds of thousands of Syrian, Lebanese and Palestinian people are now fleeing into Syria where, tragically, they will face further conflict.

    However, let me be clear that this movement of people does not mean that Assad has met the conditions to facilitate the safe return of Syrians, something we and the international community have long called for. Syria remains unsafe for voluntary, safe and dignified returns. Sadly, those fleeing are motivated by desperation and not the promise of a safe home.

    We urge Syrian authorities to protect the rights and safety of these displaced civilians. Whilst UNHCR’s increased monitoring capacity on the border is welcome, it is essential that the UN has full access to continue this monitoring across the country.

    Second, as we have heard from our briefers, the humanitarian situation in Syria, with a record 16.7 million people in need, threatens to deteriorate even further with dwindling resources.

    We cannot allow essential services to collapse. A coordinated response across Syria, building on existing humanitarian structures, is urgently needed to respond to these needs.

    For our part, the UK has mobilised programming and funding in response to the displacement crisis in Syria, committing over $3.8 million.

    As needs continue to grow, it is essential that humanitarian organisations can deliver lifesaving assistance free from interference or restriction.

    Third, we are concerned by the increased violence and civilian casualties across Syria in recent weeks. This includes in north west Syria, where attacks by the Assad regime and its Russian backer have displaced thousands of Syrians and resulted in civilian casualties.

    Airstrikes have been conducted near displacement camps, have halted schools and health services, and have impacted water distribution facilities. All of this in a region where humanitarian need is already staggering.

    The escalation across the region is a sobering reminder of the devastating price civilians pay for ongoing conflict and violence. The solution in Syria is clear and I reiterate our call for the Assad regime and all parties to Syria’s conflict to engage meaningfully in the political process in line with Resolution 2254.

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Human rights go hand in hand with sustainable development: UK Statement at the UN Third Committee

    Source: United Kingdom – Executive Government & Departments

    Statement by Alex Berelowitz, Second Secretary Human Rights at the General Debate of the UN Third Committee.

    Almost eighty years ago, the UN Charter established the three founding pillars of the UN system: peace and security, development and human rights.

    As our Prime Minister said before the General Assembly, one of these – human rights – speaks to the very essence of what it is to be human.

    We have made many advances in the years since the Universal Declaration of Human Rights.

    But we cannot ignore the challenges we now face.

    Widespread conflict and violence, misuse of new technologies, entrenched inequality, rollback of women and girls’ rights, climate vulnerability, and – all too often – downright impunity where power is abused.

    In seeking solutions we must have human rights and the rule of law front and centre. As all member states agreed in the Pact for the Future, human rights are key to meeting the needs of everyone – especially the most vulnerable.

    This includes women and children in the Occupied Palestinian Territories and Lebanon.

    The humanitarian implications of the conflict are devastating and compounding an existing crisis in Lebanon.

    We remain deeply concerned at the escalation of violence, the number of deaths and injuries, the displacement of families from their homes, and unacceptable attacks on UN Peacekeepers.

    We call for an immediate ceasefire, and the release of all hostages in Gaza and the rapid provision of humanitarian aid into Gaza and Lebanon.

    Diplomacy, not violence, is the way to achieve peace, stability and security across the region.

    In Ukraine, Russia continues to disregard the UN Charter through its illegal invasion.

    Many Russian atrocities amount to war crimes. Russia’s attacks on energy infrastructure, as well as the widespread and systematic use of torture against Ukrainian POWs are beyond reprehensible. We must hold perpetrators to account.

    With conflict driving most of the world’s humanitarian needs, the UN’s role in independently monitoring and documenting human rights abuses and violations is more critical than ever.

    We welcome the Human Rights Council’s recent renewal of the Fact-Finding Mission in Sudan. While international attention is on the Middle East and Ukraine, a brutal war has displaced over 10 million people, with atrocities carried out by both warring parties.

    But in non conflict situations too, human rights are under threat.

    Two years after the Office of the High Commissioner for Human Right’s Assessment on Xinjiang, China continues to persecute and arbitrarily detain Uyghurs and Tibetans, restricting civil society and independent media, and targeting human rights defenders and lawyers.

    We again call upon China to implement its OHCHRs recommendations

    The use of the death penalty in Iran has also reached a critical level – we cannot ignore politically motivated executions of protesters, dissidents, and juvenile offenders.

    With so many global challenges we must recommit to collective action underpinned by responsible global leadership.

    In 2025 the United Kingdom will stand for election to the Human Rights Council. We will do all we can to advert greater conflict, instability and injustice. 

    Realising human rights goes hand-in-hand with sustainable development. But that too is throttled in places like Afghanistan, where we have seen a wholesale regression of the rights of women and girls. Banned from education and employment, with numerous restrictions on their presence in public spaces.

    And in Syria we have seen the targeting of girls, subjected to forced marriage, and forced to take on increased care-giving responsibilities.

    We will not progress on sustainable development if women and girls are denied their human rights.

    Let us recommit, together, to the UN Charter and Universal Declaration and continue to strive for a world where nobody is left behind.

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Russia: Government meeting (2024, No. 31)

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    1. On the draft federal law “On Amendments to Article 121 of the Federal Law “On State Social Assistance”” The draft law is aimed at implementing the possibility of transferring powers to establish and pay regional social supplements to pensions to the Pension and Social Insurance Fund of the Russian Federation.

    2. On the allocation of budgetary appropriations from the reserve fund of the Government of the Russian Federation to the Ministry of Labor of Russia for the purpose of sending in 2024 an interbudgetary transfer to the budget of the Pension and Social Insurance Fund of the Russian Federation for the provision of subsidies to legal entities and individual entrepreneurs in the Belgorod Region, Bryansk Region and Kursk Region for partial compensation of expenses for payment of downtime of employees for reasons beyond the control of the employer and the employee. The draft act was prepared in pursuance of the instruction of the President of the Russian Federation.

    3. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of permanently securing the results of the experiment on optimization and automation of permitting processes, including licensing) The draft law is aimed at reducing the time frame for the provision of public services and the list of documents submitted by the applicant, optimization and automation of the processes of filing, receiving, and reviewing applications for permits and licenses, and the transition to a registry model for recording the results of the provision of public services.

    4. On the draft federal law “On Amending Article 2 of the Federal Law “On Basic Guarantees of Electoral Rights and the Right to Participate in a Referendum of Citizens of the Russian Federation” The adoption of the draft law will bring the legislative regulation of electoral relations in the part concerning the indication of the occupation of a candidate into line with the legal position of the Constitutional Court.

    5. On the draft federal law “On Amendments to the Federal Law “On Production and Consumption Waste” and Certain Legislative Acts of the Russian Federation” The draft federal law is aimed at reducing the number of territories contaminated with solid municipal waste, clarifying the powers of the subjects of the Russian Federation and municipalities in terms of identifying and eliminating such territories, as well as providing the necessary funding for elimination measures.

    6. On amendments to certain acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Federal Agency for Youth Affairs) The draft resolution grants Rosmolodezh the authority to prepare a report on the situation of youth in the Russian Federation.

    Moscow, October 23, 2024

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: ChampionX Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Revenue of $906.5 million
    • Net income attributable to ChampionX of $72.0 million
    • Adjusted net income of $85.9 million
    • Adjusted EBITDA of $197.5 million
    • Income before income taxes margin of 11.2%
    • Adjusted EBITDA margin of 21.8%
    • Cash from operating activities of $141.3 million and free cash flow of $108.1 million

    THE WOODLANDS, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced third quarter of 2024 results. Revenue was $906.5 million, net income attributable to ChampionX was $72.0 million, and adjusted EBITDA was $197.5 million. Income before income taxes margin was 11.2% and adjusted EBITDA margin was 21.8%. Cash from operating activities was $141.3 million and free cash flow was $108.1 million.

    CEO Commentary

    “The third quarter demonstrated the resiliency of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated robust free cash flow. These results were the direct result of our employees around the world remaining laser-focused on serving our customers well, and I am grateful to them for their dedication to our corporate purpose of improving lives,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

    “During the third quarter of 2024, we generated revenue of $907 million, which decreased 4% year-over-year, as growth in North America, Middle East & Africa, Europe, and Asia Pacific was offset by Latin America, which was impacted by lower sales in Mexico. Revenue from all areas other than Mexico increased 6% year-over-year. Our revenue increased 1% sequentially, with both North America and international revenues increasing slightly versus the second quarter. North America revenues were up 2% sequentially, driven primarily by higher sales volumes in our artificial lift business. International revenues were up 1% sequentially, driven, in part, by the contribution of RMSpumptools, which was acquired during the quarter. We generated net income attributable to ChampionX of $72 million, income before income taxes margin of 11.2%, and we delivered adjusted EBITDA of $198 million, representing a 21.8% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the productivity and profitability focus of our team.

    “Cash flow from operating activities was $141 million during the third quarter, which represented 196% of net income attributable to ChampionX, and we generated strong free cash flow of $108 million, which represented 55% of our adjusted EBITDA for the period. We remain confident in achieving at least 50% adjusted EBITDA to free cash flow conversion for 2024. Our balance sheet and financial position remain strong, ending the third quarter with approximately $1.1 billion of liquidity, including $389 million of cash and $671 million of available capacity on our revolving credit facility.”

    Agreement to be Acquired by SLB

    On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions. It is currently anticipated that the closing of the transaction will occur in the first quarter of 2025.

    ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its third quarter 2024 results.

    Production Chemical Technologies

    Production Chemical Technologies revenue in the third quarter of 2024 was $559.5 million, a decrease of $10.0 million, or 2%, sequentially, due primarily to lower international sales volumes.

    Segment operating profit was $87.3 million and adjusted segment EBITDA was $120.6 million. Segment operating profit margin was 15.6%, an increase of 60 basis points, sequentially, and adjusted segment EBITDA margin was 21.6%, an increase of 94 basis points, sequentially. The sequential increase in segment operating profit margin and adjusted segment EBITDA margin was driven by strong cost management, productivity improvements, and favorable product mix.

    Production & Automation Technologies

    Production & Automation Technologies revenue in the third quarter of 2024 was $275.7 million, an increase of $31.2 million, or 13%, sequentially, due primarily to higher artificial lift systems demand in North America, and the acquisition of RMSpumptools, which was completed during the quarter. Revenue from digital products was $57.9 million in the third quarter of 2024, an increase of 7% sequentially, driven by increased customer activity in North America.

    Segment operating profit was $34.1 million and adjusted segment EBITDA was $69.6 million. Segment operating profit margin was 12.4%, an increase of 330 basis points, sequentially, and adjusted segment EBITDA margin was 25.2%, an increase of 118 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes, productivity improvements, and favorable product mix.

    Drilling Technologies

    Drilling Technologies revenue in the third quarter of 2024 was $51.8 million, a decrease of $1.1 million, or 2%, sequentially, driven by lower sales volumes in the bearings product line associated with customers managing inventory levels.

    Segment operating profit was $11.5 million and adjusted segment EBITDA was $12.9 million. Segment operating profit margin was 22.2%, compared to 22.4% in the prior quarter, and adjusted segment EBITDA margin was 24.8%, a decrease of 2 basis points, sequentially, due primarily to lower volumes.

    Reservoir Chemical Technologies

    Reservoir Chemical Technologies revenue in the third quarter 2024 was $20.5 million, a decrease of $6.6 million, or 24%, sequentially, driven by lower sales volumes in the U.S. and internationally.

    Segment operating profit was $1.7 million and adjusted segment EBITDA was $3.3 million. Segment operating profit margin was 8.2%, a decrease of 793 basis points, sequentially, and adjusted segment EBITDA margin was 16.0%, a decrease of 592 basis points, sequentially. The decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower volumes.

    Other Business Highlights

    • ChampionX won the Gulf Energy Information Excellence Award for best coating / corrosion advancement technology for its AnX coiled rod product line. The company was a finalist in four additional categories: SMARTEN™ XE ESP control system in the best controls, instrumentation, automation technology category; Pump Checker™ gas lift analysis module in the best digital transformation – upstream category; Chemical Technologies Decarbonization Program in the best HSE contribution category; and the ChampionX Diversity, Equality, and Inclusion programs in the DE&I in energy category.

    Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

    • In the Asia Pacific region, ChampionX secured a significant new contract to provide both engineering services and the initial chemical supply for a new Floating Production Storage and Offloading (FPSO) unit, set to be deployed at a large gas condensate field in Australasia. Operations are scheduled to begin in the first half of 2025 and contribute significantly to regional Liquified Natural Gas (LNG) production capacity. This strategic win further strengthens our presence in the region and reinforces our commitment to delivering innovative, high-quality solutions to our upstream customers.
    • ChampionX was awarded a large first-fill contract to supply multiple production chemicals for corrosion inhibitors, scale inhibitors, and biocides for a major onshore oil and gas incremental project in Saudi Arabia.
    • ChampionX has secured a first-fill contract to supply production chemicals for a significant gas development program in Qatar.
    • ChampionX secured a multi-million-dollar order for a novel application of UltraFab in Carbon Capture, Utilization, and Storage (CCUS) for delivery in 2025.
    • ChampionX recently completed the pre-commission cleaning, chemical treatment, and readiness work for the 303-mile natural gas Mountain Valley Pipeline connecting Marcellus and Utica shale production to markets in the Mid- and South-Atlantic regions.
    • In the Canadian oil sands, ChampionX completed a steam additive first-fill program for a major technology development trial, leading to additional market interest.
    • ChampionX was awarded a three-year contract extension from a major producer in the San Juan Basin in California, recognizing our service, people, and commitment to helping the producer achieve their strategic goals as reasons for the extension.
    • As part of an initiative to expand our technology into adjacent markets, ChampionX Reservoir Chemical Technologies was awarded business with a premier supplier of local sand used for hydraulic fracturing in the Permian Basin. Our solution affords the supplier a significant savings on sand drying costs and is designed to increase operational throughput.

    Other Business Highlights: Production & Automation Technologies

    • In the third quarter, ChampionX completed the acquisition of RMSpumptools, a provider of advanced mechanical and electrical solutions for complex ESP systems. The acquisition expands ChampionX’s international footprint while providing greater opportunities for RMSpumptools in North America. Soon after the acquisition close, our Permian ESP team collaborated with RMSpumptools to deliver a sand control solution to a major oil company operating in the Permian basin.
    • ChampionX Artificial Lift expanded its Latin America footprint into Ecuador with a contract award for two 400HP multiplex surface pump systems for jet lift applications. This accomplishment is the result of a strengthening partnership with a Latin America independent operator that is expanding its operations from Colombia to Ecuador. Unlike typical systems, the surface pump and oil vessel required for jet lifted wells will be built on one skid with all the necessary piping, which reduces assembly time at the wellsite.
    • Building on the combined strengths of our XSPOC artificial lift software and the acquisition of Artificial Lift Performance Limited Pump Checker software, ChampionX introduced ALLY™ production optimization digital solutions, debuting a modern interface with user-friendly dashboards and intuitive workflows, paired with powerful performance—ingesting, processing, and displaying more data than ever before. It is a one-stop-shop for production teams to manage and optimize their producing assets, regardless of lift type or equipment provider. Building on the launch of this new digital solution, in the third quarter ChampionX secured seven new clients for our production optimization software solution.
    • ChampionX launched the PCS Ferguson new generation SMARTEN™ Unify control system, which is engineered to deliver sophisticated digital automation and optimization capabilities at a cost of ownership that fits within the narrow economic profile of plunger lifted wells. SMARTEN Unify provides enhanced visibility to what is happening “live” at any second in a plunger lift system, eliminating the need for operating based on calculated guesses.

    Other Business Highlights: Drilling Technologies

    • Drilling Technologies’ diamond bearings products continue to see positive test results in additional downhole drilling and completion tools applications.
    • Drilling Technologies’ diamond inserts business had significant new products launches with four major customers.

    About Non-GAAP Measures

    In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

    About ChampionX

    ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

    These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

    Investor Contact: Byron Pope
    byron.pope@championx.com 
    281-602-0094

    Media Contact: John Breed
    john.breed@championx.com 
    281-403-5751

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    (in thousands, except per share amounts)   2024       2024       2023       2024       2023  
    Revenue $ 906,533     $ 893,272     $ 939,783     $ 2,721,946     $ 2,814,730  
    Cost of goods and services   608,764       613,426       647,923       1,845,127       1,957,309  
    Gross profit   297,769       279,846       291,860       876,819       857,421  
    Costs and expenses:                  
    Selling, general and administrative expense   180,501       182,995       162,317       535,910       485,617  
    (Gain) loss on sale-leaseback transaction and disposal group   57                   (29,826 )     12,965  
    Interest expense, net   14,137       15,421       13,744       43,493       40,754  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992       793       21,683  
    Other expense (income), net   (2,176 )     938       (1,994 )     1,689       (13,494 )
    Income before income taxes   101,745       83,259       109,801       324,760       309,896  
    Provision for income taxes   28,078       27,868       29,009       82,542       69,334  
    Net income   73,667       55,391       80,792       242,218       240,562  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081       4,718       3,522  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711     $ 237,500     $ 237,040  
                       
    Earnings per share attributable to ChampionX:                  
    Basic $ 0.38     $ 0.28     $ 0.40     $ 1.25     $ 1.20  
    Diluted $ 0.37     $ 0.27     $ 0.39     $ 1.23     $ 1.18  
                       
    Weighted-average shares outstanding:                  
    Basic   190,496       190,426       195,881       190,575       197,058  
    Diluted   193,362       193,257       199,592       193,655       201,025  
                                           

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (in thousands) September 30, 2024   December 31, 2023
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 389,109     $ 288,557  
    Receivables, net   434,107       534,534  
    Inventories, net   546,817       521,549  
    Prepaid expenses and other current assets   68,218       80,777  
    Total current assets   1,438,251       1,425,417  
           
    Property, plant and equipment, net   760,775       773,552  
    Goodwill   729,783       669,064  
    Intangible assets, net   270,361       243,553  
    Other non-current assets   178,490       130,116  
    Total assets $ 3,377,660     $ 3,241,702  
           
    LIABILITIES AND EQUITY      
    Current Liabilities:      
    Current portion of long-term debt $ 6,203     $ 6,203  
    Accounts payable   455,485       451,680  
    Other current liabilities   278,498       324,866  
    Total current liabilities   740,186       782,749  
           
    Long-term debt   592,161       594,283  
    Other long-term liabilities   246,296       203,639  
    Stockholders’ equity:      
    ChampionX stockholders’ equity   1,814,310       1,676,622  
    Noncontrolling interest   (15,293 )     (15,591 )
    Total liabilities and equity $ 3,377,660     $ 3,241,702  
                   

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

      Nine Months Ended September 30,
    (in thousands)   2024       2023  
    Cash flows from operating activities:      
    Net income $ 242,218     $ 240,562  
    Depreciation and amortization   183,291       177,226  
    (Gain) loss on sale-leaseback transaction and disposal group   (29,826 )     12,965  
    Loss on Argentina Blue Chip Swap transaction   7,086        
    Deferred income taxes   (16,810 )     (15,380 )
    Loss (gain) on disposal of fixed assets   868       (1,480 )
    Receivables   115,269       85,181  
    Inventories   (40,118 )     (50,011 )
    Accounts payable   (30,577 )     (7,018 )
    Other assets   6,665       17,470  
    Leased assets   (24,193 )     (38,597 )
    Other operating items, net   (31,442 )     (49,600 )
    Net cash flows provided by operating activities   382,431       371,318  
           
    Cash flows from investing activities:      
    Capital expenditures   (101,403 )     (110,965 )
    Proceeds from sale of fixed assets   9,323       12,328  
    Proceeds from sale-leaseback transaction   44,292        
    Purchase of investments   (31,526 )      
    Sale of investments   24,358        
    Acquisitions, net of cash acquired   (123,269 )      
    Net cash used for investing activities   (178,225 )     (98,637 )
           
    Cash flows from financing activities:      
    Proceeds from long-term debt         15,500  
    Repayment of long-term debt   (4,652 )     (43,625 )
    Repurchases of common stock   (49,399 )     (159,730 )
    Dividends paid   (52,430 )     (48,309 )
    Other   3,854       (384 )
    Net cash used for financing activities   (102,627 )     (236,548 )
           
    Effect of exchange rate changes on cash and cash equivalents   (1,027 )     (1,314 )
           
    Net increase in cash and cash equivalents   100,552       34,819  
    Cash and cash equivalents at beginning of period   288,557       250,187  
    Cash and cash equivalents at end of period $ 389,109     $ 285,006  
                   

    CHAMPIONX CORPORATION
    BUSINESS SEGMENT DATA
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Segment revenue:          
    Production Chemical Technologies $ 559,539     $ 569,577     $ 604,254  
    Production & Automation Technologies   275,700       244,487       256,148  
    Drilling Technologies   51,792       52,888       54,869  
    Reservoir Chemical Technologies   20,531       27,123       25,093  
    Corporate and other   (1,029 )     (803 )     (581 )
    Total revenue $ 906,533     $ 893,272     $ 939,783  
               
    Income before income taxes:        
    Segment operating profit (loss):          
    Production Chemical Technologies $ 87,260     $ 85,388     $ 94,560  
    Production & Automation Technologies   34,136       22,207       28,299  
    Drilling Technologies   11,501       11,863       12,255  
    Reservoir Chemical Technologies   1,675       4,363       2,461  
    Total segment operating profit   134,572       123,821       137,575  
    Corporate and other   18,690       25,141       14,030  
    Interest expense, net   14,137       15,421       13,744  
    Income before income taxes $ 101,745     $ 83,259     $ 109,801  
               
    Operating profit margin / income before income taxes margin:          
    Production Chemical Technologies   15.6 %     15.0 %     15.6 %
    Production & Automation Technologies   12.4 %     9.1 %     11.0 %
    Drilling Technologies   22.2 %     22.4 %     22.3 %
    Reservoir Chemical Technologies   8.2 %     16.1 %     9.8 %
    ChampionX Consolidated   11.2 %     9.3 %     11.7 %
               
    Adjusted EBITDA          
    Production Chemical Technologies $ 120,622     $ 117,421     $ 133,101  
    Production & Automation Technologies   69,604       58,848       59,288  
    Drilling Technologies   12,867       13,149       13,786  
    Reservoir Chemical Technologies   3,292       5,954       4,198  
    Corporate and other   (8,873 )     (12,139 )     (12,837 )
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Adjusted EBITDA margin          
    Production Chemical Technologies   21.6 %     20.6 %     22.0 %
    Production & Automation Technologies   25.2 %     24.1 %     23.1 %
    Drilling Technologies   24.8 %     24.9 %     25.1 %
    Reservoir Chemical Technologies   16.0 %     22.0 %     16.7 %
    ChampionX Consolidated   21.8 %     20.5 %     21.0 %
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711  
    Pre-tax adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group(1)   57              
    Russia sanctions compliance and impacts(2)   109       32       95  
    Restructuring and other related charges   5,317       7,927       1,228  
    Merger transaction costs(3)   8,312       15,059        
    Acquisition costs and related adjustments(4)   753       574        
    Intellectual property defense   69       531       220  
    Merger-related indemnification responsibility               722  
    Tulsa, Oklahoma storm damage               1,895  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992  
    Loss on Argentina Blue Chip Swap transaction         2,994        
    Tax impact of adjustments   (4,259 )     (5,722 )     (2,702 )
    Adjusted net income attributable to ChampionX   85,871       71,197       87,161  
    Tax impact of adjustments   4,259       5,722       2,702  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081  
    Depreciation and amortization   63,508       60,203       61,839  
    Provision for income taxes   28,078       27,868       29,009  
    Interest expense, net   14,137       15,421       13,744  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  

    _______________________

    (1) Amount represents the gain on the sale and leaseback of certain buildings and land.
    (2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
    (3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
    (4) Includes costs incurred for the acquisition of businesses.
       
      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Diluted earnings per share attributable to ChampionX $ 0.37     $ 0.27     $ 0.39  
    Per share adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group                
    Russia sanctions compliance and impacts                
    Restructuring and other related charges   0.03       0.04       0.01  
    Merger transaction costs   0.04       0.08        
    Acquisition costs and related adjustments                
    Intellectual property defense                
    Merger-related indemnification responsibility               0.01  
    Tulsa, Oklahoma storm damage               0.01  
    Foreign currency transaction (gains) losses, net   0.02       (0.01 )     0.04  
    Loss on Argentina Blue Chip Swap transaction         0.02        
    Tax impact of adjustments   (0.02 )     (0.03 )     (0.02 )
    Adjusted diluted earnings per share attributable to ChampionX $ 0.44     $ 0.37     $ 0.44  
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Production Chemical Technologies          
    Segment operating profit $ 87,260     $ 85,388     $ 94,560  
    Non-GAAP adjustments   7,073       5,851       9,079  
    Depreciation and amortization   26,289       26,182       29,462  
    Segment adjusted EBITDA $ 120,622     $ 117,421     $ 133,101  
               
    Production & Automation Technologies          
    Segment operating profit $ 34,136     $ 22,207     $ 28,299  
    Non-GAAP adjustments   1,656       6,000       2,089  
    Depreciation and amortization   33,812       30,641       28,900  
    Segment adjusted EBITDA $ 69,604     $ 58,848     $ 59,288  
               
    Drilling Technologies          
    Segment operating profit $ 11,501     $ 11,863     $ 12,255  
    Non-GAAP adjustments   54             (8 )
    Depreciation and amortization   1,312       1,286       1,539  
    Segment adjusted EBITDA $ 12,867     $ 13,149     $ 13,786  
               
    Reservoir Chemical Technologies          
    Segment operating profit $ 1,675     $ 4,363     $ 2,461  
    Non-GAAP adjustments   3       11       72  
    Depreciation and amortization   1,614       1,580       1,665  
    Segment adjusted EBITDA $ 3,292     $ 5,954     $ 4,198  
               
    Corporate and other          
    Segment operating profit $ (32,827 )   $ (40,562 )   $ (27,774 )
    Non-GAAP adjustments   9,336       12,488       920  
    Depreciation and amortization   481       514       273  
    Interest expense, net   14,137       15,421       13,744  
    Segment adjusted EBITDA $ (8,873 )   $ (12,139 )   $ (12,837 )
                           

    Free Cash Flow

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Free Cash Flow          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Less: Capital expenditures, net of proceeds from sale of fixed assets   (33,248 )     (29,310 )     (48,469 )
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
               
    Cash From Operating Activities to Revenue Ratio          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Cash from operating activities to revenue ratio   16 %     8 %     17 %
               
    Free Cash Flow to Revenue Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Free cash flow to revenue ratio   12 %     4 %     12 %
               
    Free Cash Flow to Adjusted EBITDA Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Free cash flow to adjusted EBITDA ratio   55 %     21 %     58 %

    The MIL Network

  • MIL-OSI Video: President Ramaphosa on a bilateral meeting with President Putin of Russia

    Source: Republic of South Africa (video statements)

    President Ramaphosa on a bilateral meeting with President Putin of Russia

    Checkout more: http://www.thepresidency.gov.za

    Get Social
    Facebook ► https://www.facebook.com/PresidencyZA
    Instagram ► https://www.instagram.com/presidencyza/?hl=en
    Twitter ► @PresidencyZA

    #ThePresidencyofSouthAfrica #PresidencyZA

    https://www.youtube.com/watch?v=9gSl2zP51-c

    MIL OSI Video

  • MIL-OSI Video: President Ramaphosa arrives in Russia for the 16th BRICS Summit

    Source: Republic of South Africa (video statements)

    President Ramaphosa arrives in Russia for the 16th BRICS Summit

    Checkout more: http://www.thepresidency.gov.za

    Get Social
    Facebook ► https://www.facebook.com/PresidencyZA
    Instagram ► https://www.instagram.com/presidencyza/?hl=en
    Twitter ► @PresidencyZA

    #ThePresidencyofSouthAfrica #PresidencyZA

    https://www.youtube.com/watch?v=yg8UfIE0eR8

    MIL OSI Video

  • MIL-OSI USA: Human Adaptation to Spaceflight: The Role of Food and Nutrition

    Source: NASA

    The latest book marks our third effort to review available literature regarding the role of nutrition in astronaut health. In 2009, we reviewed the existing knowledge and history of human nutrition for spaceflight, with a key goal of identifying additional data that would be required before NASA could confidently reduce the risk of an inadequate food system or inadequate nutrition to as low as possible in support of human expeditions to the Moon or Mars. We used a nutrient-by-nutrient approach to address this effort, and we included a brief description of the space food systems during historical space programs.
    In 2014, we published a second volume of the book, which was not so much a second edition, but rather a view of space nutrition from a different perspective. This volume updated research that had been published in the intervening 6 years and addressed space nutrition with a more physiological systems-based approach.
    The current version is an expanded, updated version of that second book, providing both a systems approach overall, but also including details of nutrients and their roles within each system. As such, this book is divided into chapters based on physiological systems (e.g., bone, muscle, ocular); highlighted in each chapter are the nutrients associated with that particular system. We provide updated information on space foodsystems and constraints of the same, and provide dietary intake data from International Space Station (ISS) astronauts.
    We present data from ground-based analog studies, designed to mimic one or more conditions similar to those produced by spaceflight. Head-down tilt bed rest is a common analog of the general (and specifically musculoskeletal) disuse of spaceflight. Nutrition research from Antarctica relies on the associated confinementand isolation, in addition to the lack of sunlight exposure during the winter months. Undersea habitats help expand our understanding of nutritional changes in a confined space with a hyperbaric atmosphere. We also review spaceflight research, including data from now “historical” flights on the Space Shuttle, data from the Russian space station Mir, and earlier space programs such as Apollo and Skylab. The ISS, now more than20 years old, has provided (and continues to provide) a wealth of nutrition findings from extended-duration spaceflights of 4 to 12 months. We review findings from this platform as well, providing a comprehensive review of what is known regarding the role of human nutrition in keeping astronauts healthy.
    With this latest book, we hope we have accurately captured the current state of the field of space food and nutrition, and that we have provided some guideposts for work that remains to be done to enable safe and successful human exploration beyond low-Earth orbit.
    Human Adaptation to Spaceflight: The Role of Food and Nutrition – 2nd Edition
    Download 2nd Edition PDF
    Human Adaptation to Spaceflight: The Role of Food and Nutrition – 1st Edition
    Download 1st Edition PDF

    MIL OSI USA News

  • MIL-OSI USA: Press Briefing by Press Secretary Karine Jean-Pierre and National Security Communications Adviser John  Kirby

    US Senate News:

    Source: The White House
    James S. Brady Press Briefing Room
    1:42 P.M. EDT
    MS. JEAN-PIERRE:  All right.  Good afternoon, everyone. 
    Q    Good afternoon.
    MS. JEAN-PIERRE:  I have just one thing at the top, and then I’ll hand it over.
    So, today, as part of the White House Initiative on Women’s Health Research, First Lady Jill Biden announced $110 million in awards from the Advanced Research Projects Agency for Health — for Health, ARPA-H, to accelerate transformative research and development in women’s health care.
    These new ARPA-H awardees will spur innovation and advance bold solutions to diseases and conditions that affect women uniquely, disproportionately, and differently.
    In less than a year since the president and the first lady launched the effort, the White House Initiative on Women’s Health Research has galvanized nearly one — nearly a billion dollars in funding for women’s health research.
    And now, I’m going to turn it over to my NSC colleague, Admiral John Kirby, who will talk to you more about the news of North Korea’s — Korean soldiers traveling to Russia, today’s historic announcement of the — of the use of frozen Russian sov- — sovereign assets to support Ukraine, and other foreign policy matters. 
    Admiral. 
    MR. KIRBY:  Thank you very much, Karine. 
    Good afternoon, everybody. 
    Q    Good afternoon.
    MR. KIRBY:  So, just before I kick off on those issues, I do want to start off by extending our thoughts to the victims of the horrible terrorist attack in Ankara, Turkey, this morning. 
    Our prayers are with all of those affected and their families and, of course, also the people of Turkey during this difficult time.
    Now, Turkish authorities, as they’ve said, are investigating this as a possible terrorist attack.  And while we don’t yet know the motive or who is exactly behind it, we strong — strongly condemn this — this act of violence.
    Now, I think, as you have all heard earlier this morning, we have seen the public reporting indicating that North Korean soldiers are traveling to Russia to fight against Ukraine.  We’re working closely with our allies and partners to gain a full understanding of this situation, but today, I’m prepared to share what we know at this stage.
    We assess that between early- to mid-October, North Korea moved at least 3,000 soldiers into eastern Russia.  We assessed that these soldiers traveled by ship from the Wonsan area in North Korea to Vladivostok, Russia.  These soldiers then traveled onward to multiple Russian military training sites in eastern Russia where they are currently undergoing training.
    We do not yet know whether these soldiers will en- — enter into combat alongside the Russian military, but this is a certain — certainly a highly concerning probability.
    After completing training, these soldiers could travel to western Russia and then engage in combat against the Ukrainian military.  We have briefed the Ukrainian government on our understanding of this situation, and we’re certainly consulting closely with other allies, partners, and countries in the region on the implications of such a dramatic mov- — move and on how we might respond. 
    I expect to have more to share on all of that in the coming days.
    For the time being, we will continue to monitor the situation closely.  But let’s be clear, if North Korean soldiers do enter into combat, this development would demonstrate Russia’s growing desperation in its war against Ukraine. 
    Russia is suffering extraordinary casualties on the battlefield every single day, but President Putin appears intent on continuing this war.  If Russia is indeed forced to turn to North Korea for manpower, this would be a sign of weakness, not strength, on the part of the Kremlin. 
    It would also demonstrate an unprecedented level of direct military cooperation between Russia and North Korea with security implications in Europe as well as the Indo-Pacific.
    As we have said before, Russia’s cooperation with the North Korean military is in violation of multiple U.N. Security Council resolutions which prohibit the procurement of arms from North Korea and military arms training.  This move is likewise a violation.
    At President Biden’s direction, the United States continues to surge security assistance to Ukraine.  In just the past week, which I think you’ve seen, the United States has announced more than $800 million in security assistance to meet Ukraine’s urgent battlefield needs.
    Now, looking ahead, the United States is on track to provide Ukraine with hundreds of additional air defense interceptors, dozens of tactical air defense systems, additional artillery, significant quantities of ammunition, hundreds of armored personnel can- — carriers and infantry fighting vehicles, and thousands of additional armored vehicles, all of which will help keep Ukraine effective on the battlefield.
    And in coming days, the United States will announce a significant sanctions tranche targeting the enablers of Russia’s war in Ukraine located outside of Russia.
    The Ukrainian military continues to fight bravely and effectively, and President Biden is determined to provide Ukraine with the support that it needs to prevail.  To that end, the president announced today that of the $50 billion that the G7 committed to loan Ukraine back in June, the United States will provide a loan of $20 mil- — $20 billion.  The other $30 billion in loans will come from a combination of our G7 partners, including the European Union, the United Kingdom, Canada, and Japan. 
    Now, this is unique.  Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party, all while respecting the rule of law and maintaining solidarity. 
    These loans will support the people of Ukraine as they defend and rebuild their country, and it’s another example of how Mr. Putin’s war of aggression has only unified and strengthened the resolve of G7 countries and our partners to defend shared values.
    And — yep, that’s it.  Thank you.  (Laughter.)  Sorry.  I had an extra page in there, and I wasn’t sure where it was going.  So —
    MS. JEAN-PIERRE:  Go ahead, Aamer.  
    Q    Does the pre- — is the assessment that the presence of North Korean troops can have a meaningful trajectory on thou- — the war?
    And then, secondly, you’ve said earlier even that it shows a sign of desperation on the Russians, but does it also demonstrate North Korea’s commitment to this burgeoning alliance with Russia?  And is that, in of itself, a broadening and discouraging concern for America?
    MR. KIRBY:  So, on your first question, too soon to tell, Aamer, what kind of an impact these troops can have on the battlefield, because we just don’t know enough about what the intention is in terms of using them.  So, I — I think that’s why I said at the top, we’re going to monitor this and watch it closely.
    To your second question: yeah, absolutely.  As we’ve also said, yes, I’ve called this a sign of desperation and a sign of weakness.  It’s not like Mr. Putin is being very honest with the Russian people about what he doing here.  I mean, Mr. Peskov, his spokesman, just the other day dec- — denied knowing anything about it.
    But — but we’ve also talked many, many times about the burgeoning and growing defense relationship between North Korea and Russia and how reckless and dangerous we think that is, not only for the people of Ukraine — and clearly we’ll watch to see what this development means for them — but also for the Indo-Pacific region.
    MS. JEAN-PIERRE:  Go ahead, Nadia.
    Q    Thank you.  With the U.S. diplomats in the region, Mr.  Hochstein in Lebanon and the Secretary of State in Saudi Arabia now before Israel, do you be- — do you believe there is a chance now for the ceasefire to be back on the table? 
    And do you believe that with the demise of Mr. Sinwar and Hassan Nasrallah, you have better chances or worse chances for somebody to negotiate with?
    MR. KIRBY:  The ceasefire you’re talking about, I’m assuming, is with Gaza.
    Q    Well, both.  I mean, you have Lebanon and you have Gaza —
    MR. KIRBY:  Yeah.
    Q    — implementation 1701 and in Gaza.
    MR. KIRBY:  I mean, look, the short answer to your question, Nadia, is — is yes.  And we wouldn’t be s- — we wouldn’t be engaged in this — these diplomatic efforts if we didn’t think there was still an opportunity here to get a ceasefire — a ceasefire for Gaza that brings the hostages home and increases humanitarian assistance, and certainly a ceasefire between Israel and — and Hezbollah. 
    And as for the — the implication that the — the deaths of the two leaders, Nasrallah and Sinwar, as President Biden said last week, that does open up — we believe opens up, should open up an opportunity to try to get there. 
    But I don’t want to sound too sanguine here.  I’ll let Secretary Blinken speak for his travels.  He’s still on the road.  He talked about it a little bit today that, you know, they had good, constructive conversations, specifically with respect to — to Gaza while he was in Israel.  But there’s still a lot of work before us.
    Q    Okay.  And one more, quickly.  The number of civilians killed in Gaza was 779 in the last 20 days, especially in Jabalia, and the total number is 100,000 between the dead and the wounded.  Ninety percent of Gaza is destroyed.  Does the U.S. still believe that Israel’s strategy in Gaza is working, and do you still support it?
    MR. KIRBY:  We still support Israel’s right and responsibility to defend itself against these threats, including the continued threat of Hamas.  And we still urge Israel to be mindful — ever mindful of civilian casualties and the damage to civilian infrastructure, and we’re going to continue to work with them to that end.
    Q    Has the U.S. made an assessment about the type of weapons training or what type of training the North Korean soldiers are undergoing in Russia that could potentially be used in Ukraine? 
    And does this represent a new type of an — an agreement, in terms of an information-sharing agreement between the North Koreans and the Russians?
    MR. KIRBY:  I don’t believe we have a very specific assessment at this time of the exact nature of all the training.  There’s — there’s three sites that we assess right now that the — this first tranche of about 3,000 are being trained. 
    I — I think I could go so far as to say that, at least in general terms, it’s — it’s basic kind of combat training and familiarization.  I think I’ll go — I could go as far as that and no further. 
    But, as I also said, we’re going to monitor this and watch this closely.  And obviously, if we have more information that we can share with you, we certainly will.
    To your second question about information-sharing, as I’ve said before, in answer to — to Aamer, we have been watching this relationship grow and deepen now for many, many months.  And the — the question that we’re asking ourselves — and we don’t have an answer for right now — is: What does Kim Jong Un think he’s getting out of this?
    And so, you talked about information-sharing.  I mean, they’re — maybe that’s part of this.  Maybe it’s technology.  Maybe it’s capabilities. 
    We don’t have a good sense of that.  But that’s what’s so concerning to us, is — is not only the concern for the impact on the war in Ukraine but the impact that this could have in the Indo-Pacific, with Kim Jong Un benefiting to some degree.
    Q    Can you talk about that just briefly?  Like, how significant is this for U.S. allies in the region and the U.S. as a whole?
    MR. KIRBY:  It could be significant.  Again, we don’t know enough right now. 
    So, when you say “region,” I think you mean Indo-Pacific.  Until we have a better sense of what the North Koreans at least believe they’re getting out of this, as opposed to what they actually get, it’s hard to know and to put a metric on exactly what the impact is in the Indo-Pacific.
    But it is concerning.  It’s been concerning.  Certainly, this development — this — this willingness of — of Kim to literally put skin in the game here, soldiers in Russia for the potential deployment — and we haven’t seen them deployed, but for the potential deployment — certainly would connote an expectation that he thinks he’s getting something out of this.
    MS. JEAN-PIERRE:  Go ahead, Selina.
    Q    You mentioned that the U.S. is discussing how we would possibly respond.  What are the possibilities for how the U.S. could respond to this?
    MR. KIRBY:  Well, for one thing, we’re going to continue to surge security assistance, as I just mentioned in my — my topper.  And you’re going to continue to see — the president has made it clear that we’re going to continue to provide security assistance all the way up to the end of his administration, for sure.  So, you’re going to see that continue to flow, and we’re talking to allies and partners about what the right next steps ought to be. 
    I’m not at liberty today to go through any specific options, but — but we’re going to — we’re going to have those conversations, and — and we have been.
    Q    And China is a critical trading partner to North Korea.  What’s the U.S. assessment for how China is looking at all of this?
    MR. KIRBY:  We don’t know how President Xi and the Chinese are looking at this.  One would think that — if you take their comments at face value about desiring stability and security in the region, particularly on the Korean Peninsula, one would think that they’re also deeply concerned by this development.
    But you can expect that we’ll be — we’ll be communicating with the — with the Chinese about this and certainly sharing our perspectives to the degree we can and — and gleaning theirs. 
    Q    And local South Korean press is reporting that, according to intelligence, these troops — North Korean troops lack understanding of modern warfare, such as drone attacks, and it’s anticipated there will be a high number of casualties when deployed to the front lines.
    MR. KIRBY:  I — too soon to know.  I mean, we — we don’t really know what they’re going to be used for or where they’re going to — if they’re going to — if they’re going to deploy, where they’re going to deploy and to what purpose. 
    I can tell you one thing, though.  If they do deploy to fight against Ukraine, they’re fair game.  They’re fair targets.  And the Ukrainian military will defend themselves against North Korean soldiers the same way they’re defending themselves against Russian soldiers. 
    And so, the — the possibility that there could be dead and wounded North Korean soldiers fighting against Ukraine is — is absolutely real if they get deployed. 
    MS. JEAN-PIERRE:  Go ahead, M.J.
    Q    Just to clarify something you said earlier about what Kim Jong Un possibly gets out of this.  As far as you know, has he gotten anything in return?
    MR. KIRBY:  Well, I mean, from this particular move, I can’t speak to that, M.J.  I — I don’t think we have seen any specific, you know, quid — quid pro quo with respect to this provision of troops. 
    But we know that — that he and Mr. Putin have, again, been growing in their defense relationship.  And we know Mr. Putin is — has been able to purchase North Korean artillery.  He’s been able to get North Korean ballistic missiles, which he has used against Ukraine.  And in return, we have seen, at the very least, some technology sharing with North Korea. 
    But what this particular development means going forward, we just don’t know.  We’re going to have to watch that. 
    Q    And do you know if this came about because Putin specifically first asked for help, or whether it’s that Kim Jong Un offered the help first? 
    MR. KIRBY:  Don’t know.  Don’t know what precipitated it, but I think it’s important to remember that in the three-plus years that he’s been fighting in — in and around Ukraine, Mr. Putin and — and his military has suffered 530,000 casualties.  And as we’re speaking today, he’s losing, casualties alone — and that’s killed and wounded — 1,200 — 1,000 to 1,200 per day. 
    Now, 530,000 is a lot.  I mean, there were — in the American Civil War, there were, like, 620,000 killed, just to put this into some perspective.  This is three years fighting in Ukraine.  Five hundred and thirty [thousand] casualties is — is a lot. 
    And he hasn’t been fully transparent with the Russian people about this.  And he hasn’t been transparent at all with the Russian people about this particular move, about br- — bringing in North Korean soldiers.  So, that he has to farm out the fighting to a foreign country, I think, speaks volumes about how much his military is suffering and — and how uncertain he believes, how untenable he believes his — his situation is. 
    Q    And I guess, just if you had to guess, how would the training — what would the training even look like, given the language barrier?  And once these North Korean soldiers are deployed, like, what would the command structure even look like, given —
    MR. KIRBY:  It’s a great question.  I — I wish we had an answer to it.  You’re — you’re not wrong to highlight the language barrier.  I mean, these are — these aren’t even similar languages.  They’re — and they are going to have to overcome that.  It’s not like they have a long, productive history of working together as two militaries, even at all.  So, that’s going to be a challenge. 
    Command and control is going to be a challenge.  And this is not a challenge that the Russians have even solved amongst themselves.  They’re still having command and control challenges: logistics and sustainment, getting things to the battlefield, keeping their troops in the field.  They haven’t solved that for their own soldiers.  So, they’re going to have to figure that out here too, if, in fact, they deploy.  We haven’t seen that. 
    So, there are — there are some pretty big challenges they’re — they’re going to have to overcome. 
    Q    And I have a non-Ukraine question.  Do you think that Donald Trump meets the definition of a fas- — fascist?
    MR. KIRBY:  That — I’m going to —
    MS. JEAN-PIERRE:  We got to move on.  (Laughs.)
    MR. KIRBY:  Yeah, I’m —
    MS. JEAN-PIERRE:  Go ahead, Michael.
    MR. KIRBY:  — I’m not going to talk about that stuff.
    Q    John, there — there’s concern among Democrats on the Hill that Donald Trump’s team has not entered into these critical transition agreements with the White House that could potentially, in their words, endanger national security.  Is that a concern of yours?
    MR. KIRBY:  Well, look, with a caveat that I’ll — I’m going to defer to Karine on anything to do with the election and — and the transition.  That’s really for her. 
    All I’ll say is that no matter how things play out in the election, the National Security Council, under Mr. Sullivan’s leadership, is and will make sure we’re ready for proper transition handover. 
    Q    And there are intelligence officials who have warned that foreign adversaries might be looking to stoke violence in the next 13 days ahead of the election.
    MR. KIRBY:  I saw the DNI assessment, yeah. 
    Q    What are you doing in preparation?
    MR. KIRBY:  Well, we’re working hard across the interagency, as you might expect we would, to share information not only inside the — at the federal level but working very hard to make sure we’ve got good handshakes and — and information sharing at state and local levels as well. 
    That’s the last thing we want, of course, is to see any violence or protest activity that — that leads to intimidation and that kind of thing.  So, we’re working hard, again, with local and state officials.
    MS. JEAN-PIERRE:  Need to start wrapping it up.  Go ahead, sir.  Yeah.
    Q    Thank you.  So, would North Korea’s possible engagement in combat in Ukraine trigger a bolder move from the White House, like decision to lift the restrictions on usage of American weapons?
    MR. KIRBY:  Yeah, again, number one, we’re monitoring this closely, and that’s where we are right now.  I came and gave you a very honest assessment of exactly where we are, and we just don’t know if these troops are going to be deployed against Ukraine in combat and, if so, where, when, and how. 
    So, number one, we’re monitoring this closely.  I don’t have any policy decisions or options to speak to today.  I can tell you the last thing I’ll say is that there’s been no change to the president’s policy when it comes to what we’re providing Ukraine and — and how they’re using it.
    MS. JEAN-PIERRE:  Go ahead, Jacqui.
    Q    Thank you, Karine.  John, why not?  Why not green-light the long-range missiles for Ukraine’s use, which is Zelenskyy’s number one ask, as you’re sounding the alarm about what could have far-reaching implications if North Korean soldiers go into Ukraine? 
    MR. KIRBY:  Well, for one thing, Jacqui, we don’t exactly know what these guys are going to do. 
    Q    What else could they be there for?
    MR. KIRBY:  We don’t know what they’re going to do.  We don’t know if they’re going to deploy into combat or not.  We don’t know, if they do, in what strength.  We certainly don’t have a sense of what capability they might be able to bring to the field with them.  Now —
    Q    Doesn’t this seem, though, like —
    MR. KIRBY:  Hang on, now.  Just a second.
    Q    — we were — a couple years ago, they were staged — you had Russian troops staged on the Ukrainian border, and this administration was saying, “We don’t know if they’re going to go in.  We don’t want to impose any sanctions.”  We didn’t do it ahead of time. 
    MR. KIRBY:  No, no, no, no, no, no.
    Q    Where — why is there not a consequence first?
    MR. KIRBY:  Well, first of all, let’s not rewrite history, Jacqui.  We — we were the first country to go out publicly and say, “Here’s what we think the Russians are going to do.  Here’s the timeline.”
    Q    But didn’t do anything about it. 
    MR. KIRBY:  That is not true, Jacqui. 
    Q    There was no preemptive sanction.  Nothing. 
    MR. KIRBY:  Jacqui, that is not true.  It is true we didn’t levy sanctions originally because we were hoping that the threat of sanctions might deter or dissuade Mr. Putin.  You lay sanctions on before the man makes a decision, then he might as well just go ahead and do it. 
    Q    Well, he did it anyway.
    MR. KIRBY:  And we — and we did levy sanctions on him — heavy sanctions — not just us but around the world. 
    Number two, we mobilized support for Ukraine even before Mr. Putin decided to step across that line.  And no country — no country has done more than the United States to make sure Ukraine is ready.  So —
    Q    Well, why not do something —
    MR. KIRBY:  — let’s not —
    Q    — to prevent —
    MR. KIRBY:  Wait, wait.  Jac- —
    Q    — this from happening? 
    MR. KIRBY:  Jacqui, let me finish the second question, and then we’ll get your third one. 
    So, let’s not rewrite history.  The United States didn’t sit idly by here.  We’ve been Ukraine’s staunchest and most prolific supporter in terms of security assistance.
    And as for the policy decision, the — the president remains and we all remain in direct contact with our Ukrainian counterparts.  We’re talking to them over what the — what they need.  As I said, we’ve just announced $800 million more, and there’ll be more coming in security assistance. 
    I just don’t have any policy changes to —
    Q    But why —
    MR. KIRBY:  — to speak to today. 
    Q    Why would you not u- — put a restriction on the type of target that can be hit, rather than the distance from a border that obviously Russia doesn’t recognize?  And you’ve got training happening with North Korean troops, I would assume, on the types of military installations that would be fair game if that decision was made. 
    MR. KIRBY:  Yeah, we’ll see —
    Q    That —
    MR. KIRBY:  We’ll see — we’ll see what the Russians and North Koreans decide to do here.  As I said earlier, if these North Korean soldiers decide to join the fight against Ukraine, they will become legitimate military targets. 
    MS. JEAN-PIERRE:  All right, Jacqui.  We got to go.
    Aurelia.
    Q    Yeah.  Thank you.  John, would you still describe the Israeli operation in Lebanon as targeted?
    MR. KIRBY:  I’m sorry, I do-
    Q    Yeah.  The Israeli strikes on Lebanon, would you still describe them as targeted?
    MR. KIRBY:  Again, I’m not going to get into scorecarding each and every strike that the Israelis take.  I’ll just say a couple of things.  They have a right to defend themselves.  There are legitimate threats that Hezbollah still poses to the Israeli people.  I mean, rockets and missiles are still being fired at Israeli cities. 
    So, let’s not forget what Hezbollah continues to be able to do.  That’s number one. 
    Number two, we have said many, many times that we don’t support daily, you know, strikes into heavily populated areas, and that remains the case today.  We still oppose, you know, daily strikes into densely populated areas —
    Q    But they still are coming — the strikes.
    MR. KIRBY:  — and we have had those conversations.  Secretary Blinken has had that exact conversation when he was in Israel for the last couple of days.  We’ll continue to press the Israelis on that. 
    MS. JEAN-PIERRE:  Go ahead.
    Q    Hi.  So, the interest from the frozen assets, does it apply only to the European Union or also the U.S. assets?
    MR. KIRBY:  It is — it’s for all the frozen assets.
    Q    Also in the U.S.?
    MR. KIRBY:  I believe so.  I believe so.
    Q    Because this morning, I heard Daleep Singh said just European Union, so I wasn’t sure. 
    MR. KIRBY:  Okay.  You know what?  Let me take the question.  When I — I can’t even balance my checkbook at home, so — (laughter).
    MS. JEAN-PIERRE:  Go ahead.
    Q    Thank you.  I wanted to ask about Kursk specifically with the North Korean troops in Russia.  Russia and North Korea have this mutual security pact.  If they were to use North Korean troops against Ukrainians in Kursk, would it be legitimate to try to reclaim sovereign territory, or would that be seen as an escalation in the war against Ukraine?
    MR. KIRBY:  Again, I don’t want to get ahead of where we are right now and hypothesize what these troops may or may not be doing and, if the Russians are going to deploy them, where they’re going to deploy them, whether it’ll be inside Russia or inside Ukraine. 
    Let me just please go back to what I said before.  If these North Korean troops are employed against Ukraine, they will become legitimate military targets. 
    MS. JEAN-PIERRE:  All right.  Janne, you have the last one. 
    Q    Thank you very much.  (Inaudible) questions. 
    MS. JEAN-PIERRE:  Well, you’re about to jump out of your seat, so —
    Q    Thank — thank you, John.
    MR. KIRBY:  This — this seems like a fair day for Janne.
    MS. JEAN-PIERRE:  That’s true.  Truly. 
    Q    On same — same topic, on North Korea.  The chairman of the House Intelligence Committee recently sent a letter to President Biden requesting a briefing regarding the seriousness of North Korea’s troops deployment and the neglect of the Korean Peninsula issue.  What is the White House’s response to this?
    MR. KIRBY:  Well, we’ll respond.  We’ll respond as — as appropriate to the chairman, and we won’t do that from the podium here in the briefing room.  We’ll do it appropriately with him and his staff.
    I’ll just say — and hopefully my being here today and the — my statement at the top should reflect how seriously we’re taking this issue and how closely we’re going to monitor it.  We recognize the potential danger here, and we’re going to be talking to allies and partners, including the Ukrainians, about what the proper next steps are going to be. 
    But as for our response to the chairman, I’ll let that stand in legislative channels.
    Q    Last quick one.  Your colleague said at the State Department briefing that the United States does not reflect other countries’ intelligence analyses.  So, what is your assessment of intelligence cooperation with allies at this —
    MR. KIRBY:  What — what did my colleague at the State Department say?
    Q    Said that — at the briefing that the United States does not reflect other countries’ intelligence analyses.
    MR. KIRBY:  About — about —
    Q    About the —
    MR. KIRBY:  — the North Korean troops?
    Q    Yeah, about the North Korean troops, so —
    MR. KIRBY:  I just shared with you — to- — today’s opening statement was a downgrade of U.S. intelligence of what — what we’re seeing.  And I think you can see similarities between what I said today and what our South Korean counterparts have — have said.  Ukrainian intelligence has — has released information very, very similar. 
    And again, we’re — you know, today isn’t the end of this conversation.  It’s — it’s, quite frankly, the beginning of the conversation that we’re going to be having with allies and partners, including through the intelligence community. 
    MS. JEAN-PIERRE:  All right.  Thank you so much, Admiral. 
    MR. KIRBY:  Thank you. 
    MS. JEAN-PIERRE:  Go ahead, Toluse.
    Q    Thanks, John.
    MR. KIRBY:  Thank you.
    MS. JEAN-PIERRE:  Thank you.  Sorry, guys.  Give me one second. 
    Let’s let Toluse take — I know he’s been waiting patiently on the sides- — sideline. 
    We don’t have much time because I have to be in the Oval in about 20 minutes, but go ahead.
    Q    Can I ask about the McDonald’s outbreak, the E. coli outbreak? 
    MS. JEAN-PIERRE:  Yeah.
    Q    And this follows a couple of big ones that we’ve seen over the summer, including Boar’s Head.  I think there’s another nationwide one.  Is the president tracking this?  And more importantly, how confident should Americans feel about the food supply right now?
    MS. JEAN-PIERRE:  So, what I would say is the administration’s top priority — its top priority is to make sure that Americans are safe.  And so, we are taking this very seriously.  We’re monitoring the situation. 
    CDC, as it relates to McDonald’s specifically, is working to determine the source of the outbreak, as we speak abou- — as you asked me about the E. cola — E. coli outbreak.  And so, what I would suggest is that families, they need to and they must follow the latest CDC guidance. 
    Obviously, we’re aware.  The president is — is also aware.  And going back to this particular outbreak with McDonald’s, I understand that the company has halted sales of product to protect customers, and CDC is certainly in touch with — with local authorities to — to prevent infection. 
    So, look, we’re always concerned when we hear these types of — these types of situations — right? — poten- — outbreaks.  And so — and the president wants to make sure that the American people are safe.  So, it is a — it is certainly a priority for us, and CDC is on top of this and looking into it.
    Q    And then just one more.  Any reaction to Jill Stein asserting the U.S. and the UK have blocked a peace agreement between Russia and Ukraine?
    MS. JEAN-PIERRE:  I have not seen those reporting.  I’m not going to respond to a — a political candidate in — for this — for this —
    Q    Well, it seems (inaudible) — it’s a factual thing that’s —
    MS. JEAN-PIERRE:  I — I have not even seen the — the comments that —
    Q    Okay.
    MS. JEAN-PIERRE:  — you are mentioning to me, so I — I can’t give you an honest response from here.
    So, go ahead, M.J.
    Q    Karine, what did the president mean when he said last night, about Donald Trump, “We got to lock him up”? 
    MS. JEAN-PIERRE:  So, look, and I — the president spoke to — about this very clearly as well in his statement, and he — and he said he meant, “lock him out” politically — politically lock him out.  That’s what he said, and that’s what we have to do.  That was the part of his quote that he said last night while he was in — in New Hampshire. 
    Look, let’s not forget, this is a president that has not –never shied away from being very clear and laying down what is at stake in this election. 
    I’m going to be really m- — mindful in not speaking about 2024 election that’s just a — less than two weeks away. 
    But this is just speaking to what the president said last night.  He made clear — he made very clear yesterday that he was referring to defeating — to defeating Donald Trump.  That is what he was talking about.  He said, politically — politically, lock him — lock him out.  That is what he was referring to. 
    Q    Well, he first said twice, “lock him up.”  So, you’re saying —
    MS. JEAN-PIERRE:  And then — and —
    Q    — when he said “lock him up,” he meant, defeat Donald Trump?
    MS. JEAN-PIERRE:  Well, it’s not what saying.  It’s what he said.  He said —
    Q    Well, when —
    MS. JEAN-PIERRE:  — to the au- —
    Q    — he clarified.
    MS. JEAN-PIERRE:  Wa- — wait. 
    Q    But he initially said —
    MS. JEAN-PIERRE:  He — he — right.  
    Q    — “lock him up.”
    MS. JEAN-PIERRE:  Exactly, he clarified himself.  He wanted to make sure that things were put into context.  He wanted to make sure that it — while we are — you know, while not just New Hampshire folks that were there were going to see it but also the Americans who are watching and pay attention to what the president is saying.  He wanted to put it into context.  And he, himself — this is not me; this is the president himself going back to explain — to explain — to say that he was talking about politically — politically locking him out. 
    Q    Is the president aware of John Kelly’s assertion that Donald Trump meets the definition of a fascist and that Trump wanted the kinds of generals Hitler had?
    MS. JEAN-PIERRE:  I mean, look, you have heard from this president over and over again about the threats to democracy, and the president has spoken about that.  You’ve heard from the former president himself saying that he is going to be a dictator on day one.  This is him, not us.  This is him. 
    And it’s not just all — it’s not just us, the White House, saying this.  You’ve heard it from officials — former officials that worked for the former president say this as well. 
    So, you know, do we agree — I know that the — the vice president just spoke about this.  Do we agree about that determination?  Yes, we do.  We do. 
    Let’s not forget — I will point you to January 6th.  What we saw on January 6th: 2,000 people were told to go to the Capitol to undo a free and fair election by the former president.  It was a dark, dark day in our democracy and a dangerous one.  We have people who died because of what happened on January 6th.  And, you know, we cannot forget that.  We cannot forget that.
    And so — and I will add — I will add this, that — and I can’t believe I even have to say this — but our nation’s veterans are heroes.  They are heroes.  They’re not losers or suckers; they are heroes. 
    And to be praising Adolf Hitler is dangerous, and it’s also disgusting. 
    Q    So, just to be clear, when you said, “we do” agree, President Biden believes that Donald Trump is a fascist?
    MS. JEAN-PIERRE:  I mean, yes, we have said — he said himself — the former president has said he is going to be a dictator on day one.  We cannot ignore that.  We cannot.
    And we cannot ignore or forget what happened on January 6th, 2021.  That is real.  Real people were affected by this — law enforcement who were trying to protect — protect the Capitol, protect law — elected officials in the Capitol, congressional members, senators, House members.  Their lives were ruined because of that day, because 2,000 people — again, 2,000 people were told by the former president to go there to find the former vice president to stop a free and fair election.  That is what — that is what happened. 
    Some of you — some of your colleagues were there, reported it, and saw it for yourself. 
    We cannot forget that. 
    Go ahead.
    Q    Karine, I mean, you talk about the context of the president’s comments yesterday.  I want to put them in the fuller context as well.  The president went to New Hampshire to make a policy argument against Republicans on the issue of prescription drugs, but the majority — more of his comments yesterday were really some of the most dire warnings we’ve heard from this president yet about a return to a Donald Trump presidency and what it would mean — could mean for this country.  He talked about world leaders pulling him aside, saying, “He can’t win.”  He talked about the concern — what it would mean for future generations of America. 
    How concerned is the president about — at this point, about the state of the race?  Is he worried that Trump is on a path to victory at this point?
    MS. JEAN-PIERRE:  So, look, I’m not going to talk about the state of the race.  You heard from the president.  You just laid out very clearly about what the president talked about yesterday in New Hampshire.  He laid out what his thoughts were.  He laid out what the stakes are for this country, and this is somebody who cares, clearly, very deeply about the future of this country.
    And so, I’m not going to get into what he thinks about this — the race in this current moment.  That is not something that I’m here to do.  I am not — I am no longer a political pundit.  I am the White House press secretary.  I speak for the president, but obviously I cannot speak to the 2024 election.
    And you did talk about something else — right? — when you talked about what he went to do on the official side.  And I would read you some quotes here — some headlines that we — that we saw in New Hampshire today from New Hampshire press, which I think is really important: “Biden, Sanders tout prescription drug cost-savings at New — New Hampshire event.”  Another one, “Biden and Bernie Sanders highlight lower prescription drug costs in New Hampshire stop.”  That is important. 
    The president wanted to go to New Hampshire to talk about what he and the vice president have been able to do in more than three and a half years: lowering prescription drugs, beating Big Pharma.  He talked about the Inflation Reduction Act.  By the way, no Republican voted for that.  Now it is popular with Democrats and Republicans, and this is something that is going to change people’s lives. 
    And so, that’s what he was there for.  He talked about — let’s not forget, what — what they’ve been — oth- — other things they’ve been able to do, whether it’s the bipartisan gun violence protection — being able to do that in a bipartisan way, and dealing with COVID that t- — put our economy in a downturn.  And this president has been able to empower — powering the economy, and we are now leading as a country in the world when it comes to the economy.
    So, I think he was able to do both things.  I think he was able to speak his mind on — on the political, you know, nature of where we are right now, which he can — obviously, he spoke to.  And I think people in New Hampshire got a sense of what the president is trying to do on behalf of them in talking about lowering costs.  We saw that in — in the New Hampshire papers.  So, it broke through, and I think that’s important. 
    Q    You were with the president last week in Germany —
    MS. JEAN-PIERRE:  Yes.
    Q    — when he says he had these conversations with world leaders expressing their dire concern about the election here.  What has been his response to those world leaders about that?
    MS. JEAN-PIERRE:  I — I’m not going to get into private diplomatic conversations, and I will just leave it there.
    Q    And then, I’ll ask you — we — NBC News is reporting that the vice president is likely to spend election night here in Washington, perhaps at her alma mater of Howard University.  Do we have an understanding yet of where the president will be —
    MS. JEAN-PIERRE:  (Laughs.)
    Q    — and when — how he plans to vote?
    MS. JEAN-PIERRE:  As soon as — you all know, we certainly will share that with all of you. 
    I will say is that the president is certainly looking forward to casting his ballot in Delaware.  And so, once we have the full information on what his day is going to look like or what the last couple of days leading up to November 5th will look like, we certainly will share that with all of you.
    Go ahead.
    Q    Since we’re talking about scheduling, it is traditional for the president to hold a press conference after —
    MS. JEAN-PIERRE:  Oh boy.  I knew that was coming.  (Laughter.)
    Q    Can’t stop.  Won’t stop.
    MS. JEAN-PIERRE:  You were- — you weren’t here for the — the drop-by.  Were you here for the drop-by?
    Q    Yes, I was. 
    MS. JEAN-PIERRE:  Oh.  It was great.
    Q    It was great.  We’d love to see him again.
    MS. JEAN-PIERRE:  Yeah.
    Q    So, the — and —
    MS. JEAN-PIERRE:  And you know what?  He had a really good time.  He enjoyed — he enjoyed it.
    Q    So, just an —
    Q    Come on back.  (Laughter.)
    Q    — open invitation for the president to follow tradition and do a press conference after the election, which I think —
    MS. JEAN-PIERRE:  I —
    Q    — is standard and important.
    MS. JEAN-PIERRE:  I — I totally hear that, Tam, and I know it is a tradition. 
    I — I don’t want to get ahead of what the schedule is going to look like.  As we know, in less than two weeks, we will have an important election.  Obviously, I’m not speaking about that election specifically, but we want to share — we will share more as we get closer.  And we — we certainly are tracking that tradition, and we’ll certainly have more to share. 
    Q    Are we going to see him with the vice president much in the next couple of weeks?
    MS. JEAN-PIERRE:  I mean, look, I — I know you all have asked this question of him.  You’ve asked this question of me.  They have, as you know, campaigned together.  They’ve done official events together in the past just couple of weeks. 
    They speak regularly.  And — and I would say the president — you’ve heard the president just, you know, tout how proud and how he thinks she will be a great leader on day one, which is –he also said in 2020, which is why he chose her as his running mate, and he has said as well, this was the best decision that he’s made.  And understands that she’s going to cut her own path.  Said this himself just last week when he was in — in Philadelphia. 
    Don’t have anything to share, again, on the schedule.  I know this is all part of a scheduling question, and we certainly will have more to share as the days — as the days — as you know, I mean, one day is like an eternity in — in this space, as you know.  (Laughs.)  And so, less than two weeks is — feels like so far away.  So, we will have more to share, for sure.
    Go ahead, Selina.
    Q    I just want to follow up on M.J.’s question. 
    MS. JEAN-PIERRE:  Yeah.
    Q    So, did the president actually read former Marine General Kelly’s comments or listen to them?  And did you —
    MS. JEAN-PIERRE:  So —
    Q    — do you know how he reacted after doing so?
    MS. JEAN-PIERRE:  So, look — I mean, look, I just gave a really good — I think a good sense of the — what the president has said about our reaction here from the White House.  The president is aware of John Kelly’s comments.  And I gave you a reaction as part of the — as — as the president’s White House press secretary.  And what I’m saying to you today is something that the president has said over and over and over again and repeated. 
    And let’s not forget the words that we have heard from the former president.  And it matters here, because we’re talking about our democracy.  We’re talking about what’s at stake here with our democracy.  And when you have a former president saying that they will be a dictator on day one, that is something that we cannot forget. 
    And so, you know, the president has spoke- — spoken about this and given speeches on this.  And that’s why I continue to point to January 6th, 2020 — -21 — 2021, because it was — it’s something that we cannot forget, a dark day on our democracy — a dark day on our democracy, because of what was — what — what occurred — what occurred.
    Q    Was the president surprised by any of the comments from Kelly?
    MS. JEAN-PIERRE:  No, not at all.  I mean, again, the president has made comments and spoken about this over and over again.  So, no.  I will say no. 
    Go ahead.
    Q    Thanks, Karine.  Elon Musk has been, you know, campaigning with former President Donald Trump, and he is offering $1 million to voters.  I just was wondering: Has the president expressed any concern to, you know, this interference by Elon Musk?  And I don’t know if he — you know, his — the administration maybe has any plans or has discussed maybe how to sort of maybe move forward with what’s El- — Elon Musk is doing with — with the $1 million.
    MS. JEAN-PIERRE:  So, on — on this particular question, I’m going to have to refer you to the FEC.  I just have to be — that one, I — I — that’s a place that I’m going to have to refer you.  I can’t speak to it beyond that. 
    Q    But has the president mentioned it at all, Elon Musk or —
    MS. JEAN-PIERRE:  He’s aware of it.  He’s aware of it.  That I can tell you.  I just can’t speak to it beyond that.  I have to refer you to the FEC.
    Go ahead, Jared. 
    Q    You talk and you’ve taken questions today, and obviously throughout the — the presidency, President Biden has talked a lot about democratic institutions.  I’m just curious if between now and Election Day, the president is going to speak sort of more broadly about the confidence in the votes being counted accurately.
    MS. JEAN-PIERRE:  Well, the president has talk — talked about this.  He believes in our institution.  He believes in — in — this will be a free and fair election.  He’s talked about this.  We have to give the American people, who some of them are voting right now — to make sure that they have the confidence in their vote and how important it is to cast their vote. 
    I’m not going to go beyond that, but I think the president has been very clear about that. 
    Q    But you don’t — should we talk about schedules or something?  (Laughs.)
    MS. JEAN-PIERRE:  Yeah.
    Q    Is there, like, a big sort of — because he’s done these types of addresses on issues like this before. 
    MS. JEAN-PIERRE:  Yeah, I —
    Q    So, I’m just curious if, like, this is a time that he would do that.
    MS. JEAN-PIERRE:  Oh, no, I hear you.  And I hear you’re talking about the moment that we’re in and if the president is going to speak about it in a more formal way — in remarks, in a speech. 
    I don’t have anything to share with you, but he’s been very clear about having the confidence in our institutions, and so I’ll leave it there.
    Go ahead.
    Q    I just want to ask you briefly about congressional outreach for the $10 billion that would be military aid.  Has the White House started that process, reaching out to members of Congress to get their buy-in to kind of help expedite this process?
    MS. JEAN-PIERRE:  I mean, we’re in regular touch with congressional members about any type of initiative that we’re trying to push through, especially if it involves Congress, obviously.
    I don’t have anything to read out to you at this time, but we are in regular conversation about a myriad of things when it comes to legislation, things that we’re trying to push forward.  Again, certainly that is important to the American people.  I just don’t have anything to share at this time.
    Q    Just a quick —
    MS. JEAN-PIERRE:  Yeah.
    Q    — 2024 question.  You said the president is going to vote.  It’s a scheduling question.
    MS. JEAN-PIERRE:  Yeah. 
    Q    Will he vote ear- —
    MS. JEAN-PIERRE:  You guys are very into schedules today.
    Q    Yeah, we’re — we’re into this.  We’re into this.
    MS. JEAN-PIERRE:  Yeah, I know.  Into th- —
    Q    Will he vote early?  Early voting —
    MS. JEAN-PIERRE:  — into the POTUS schedule.
    Q    Early voting starts in Delaware, obviously, this week, and will he go early, before Election Day?
    MS. JEAN-PIERRE:  I — as — as soon as we have something to share, I will certainly share that.
    Q    Final try.
    MS. JEAN-PIERRE:  I — I appreciate the effort here.  The president — I can say for sure the president is looking forward to casting his ballot.  And when we have more to share about his schedule — I mean, we’re not — we’re — the president can’t not just go vote and not tel- — for you guys not to know, right?  So, you guys follow him wherever he is, which is good —
    Q    Thanks.
    MS. JEAN-PIERRE:  — which is a good thing.  (Laughs.)
    Go ahead.
    Q    Thanks, Karine.  The former president described the vice president as “lazy as hell” yesterday.  She had a day when she was not on the campaign trail.  I was going to give you an opportunity to respond to that.
    MS. JEAN-PIERRE:  I would check the source.  Pay real close attention to who’s saying that.  That’s all I’ll say.
    Q    Okay.  Another question about the vice president’s interview with NBC.  She talked — she was asked about whether there should be any concessions on the issue of abortion and the situation — 
    MS. JEAN-PIERRE:  Wait, say that one more time.
    Q    She was asked whether or not there should be concessions on the issue of abortion — the scenario being a potential divided government like we have now — whether or not she would be willing to offer concessions, things like religious freedom, on the issue of abortion.  And I wanted to see if —
    MS. JEAN-PIERRE:  Meaning like on- — once she’s in office? 
    Q    Yes.
    MS. JEAN-PIERRE:  Oh, look, I’m not going to — I’m not going to get into hypotheticals.  It’s not — that is something that certainly, you know, when she be — when she is in office and becomes pre- — and all of the things happen — I’m not going to get into hypotheticals — she’s going to make her own decisions and decide what’s best for the American people.  I can’t speak to that at this time.  Not going to get into hypotheticals. 
    What you know and what you have seen from this president and this vice president is their commitment to continue to fight for women’s rights and continue to call on Congress to — to — you know, to reinstate Roe v. Wade, make sure that legislation is put out there, voted on.  And so, he would sign that, obviously, if that were to happen. 
    And so, that is what they — he — they both have asked for.  That is what we’ve been saying during this administration.  And she has been, obviously, a passionate fighter on that issue, understanding what this means to women, understanding what this means to people’s rights and freedoms, and so has this president. 
    And so that’s what we’re — you’re going to continue to see.  You just — you just heard us — I forget all the days — all the days come together — recently talk about how we’re expanding in the ACA for contraception, because understanding how that — how important that is to women and families, or — or women and Americans who are trying to make decisions on their family or how to move forward, and they should have that right — and so — and that freedom.
    And so, again, that action shows you the commitment from the — and I hope the American people — from the Biden-Harris administration.
    What she’s going to do next, how she’s going to govern, that’s not for me to say.
    Q    Another question from the interview.  She was asked whether or not sexism would come into play in this election.  She said, “I don’t think of it that way.”  Obviously, the former president, Barack Obama, said that he did believe that sexism was coming into play in this election.  What does the president think about (inaudible)?
    MS. JEAN-PIERRE:  Oh, I’ll say this.  Clearly, the vice president spoke to this, and this is her campaign, and she sees — she’s going to say how she sees things. 
    The president has always said and will continue to say that she is ready to lead on day one.  And you don’t have to just look at her record with him as a critical partner over the last more than three and a half years as vice president, but as senator, as attorney general, as district attorney, she is someone that has always fought for Americans, fought for people, whether it is citizens in California or more broadly, obviously. 
    And I think that’s what the American people — I know that’s what the American people want to see.  They want to see a fighter.  And that’s what the president sees in her.
    And, again, just look at what we’ve been able to do in the more than three and a half years when it comes to trying to beat back COVID and make sure that we all could come together in this room again without masks and make sure there was a strategy to deal with this pandemic; turn the economy around because of this pandemic; make sure that, you know, schools were open, businesses were open.  Now we have a record number of people applying to open up small businesses. 
    They’re doing that because they believe that the economy is working for them.  Nobody wants to open a small business if they don’t think the economy is working — is — is working for them. 
    Now, there’s always a lot more work to be done, and we’re going to continue to do that work.  You saw what the president did with Senator Bernie Sanders in New Hampshire — in Concord, New Hampshire, answering and lay- — and laying out what the — what the Inflation Reduction Act has been able to do, saving people a billion dollars because of that Inflation Reduction Act — which, I may add, Republicans did not vote for.  They did not vote for it. 
    I know I have to get — I’m getting the pull here. 
    Go ahead, Jon. 
    Q    Thanks a lot, Karine.  What’s the level of concern that the administration has about election interference, specifically from Russia? 
    MS. JEAN-PIERRE:  I mean, we spoke to that.  We’ve laid out — we made an — an announcement on what we were seeing from Russia on election interference.  We sent a very clear message on that just a couple of weeks ago.  So, obviously, that is something that continues to be a concern.  We will speak loud and clear about that, as we did just a couple of weeks ago.
    But we also want Americans to know th- — to trust the institution, and that’s what the president is going to continue to say and — and — and also continue to lay out the stakes — what’s at stakes.
    Okay.  Thanks, everybody.  Hopefully, see you on the road.
    2:30 P.M. EDT

    MIL OSI USA News

  • MIL-OSI USA: REPS. BISHOP, SCOTT, AND BROWN HIGHLIGHT FARM BILL IN SUMTER COUNTY

    Source: United States House of Representatives – Congressman Sanford D Bishop Jr (GA-02)

    LESLIE, Ga. – On Monday, Congressman Sanford D. Bishop, Jr. (GA-02) – the top Democrat on the U.S. House Appropriations Agriculture Subcommittee as well as a member of the U.S. House Agriculture Committee – visited Minor Brothers Farms in Sumter County to discuss the Farm Bill. He was joined by Congressman Austin Scott (GA-08) and Congresswoman Shontel Brown (OH-11) who are the Republican and Democratic leaders of the U.S. House Agriculture Subcommittee on General Farm Commodities, Risk Management, and Credit.

    “Congressman Austin Scott, Congresswoman Shontel Brown, and I are working hard in Congress on a new Farm Bill,” said Congressman Bishop. “Meeting in the field with peanut and cotton farmers allowed us to hear from them and see, first-hand, the challenges they face producing the food and fiber that feeds America and clothes the world. We were able to have a frank, bipartisan conversation about the immediate need for economic assistance and swift passage of the Farm Bill as well as disaster relief our producers require following the recent hurricane.”

    “And of course, we were eager to join with them in discussing how Congress can provide urgent help,” added Congressman Bishop.

    Congressman Bishop noted it is important for Members of Congress from other areas of the country to visit America’s farmers and producers in places like Middle and Southwest Georgia so that they are armed with sufficient information to support agriculture in the Farm Bill and get the nation’s farmers and producers the resources that they need.

    “I appreciated the opportunity to visit Minor Brothers Farms in Sumter County with Congressman Bishop and Congressman Scott. My sincere thanks are extended to Congressman Bishop for welcoming me to his district to hear directly from peanut and cotton farmers. As a member of the House Committee on Agriculture, I will continue working with my colleagues to pass a Farm Bill that supports farmers and producers as well as people in need,” said Congresswoman Shontel Brown.

    Dick Minor, a Sumter County farmer, commented, “We were pleased to host Representatives Sanford Bishop, Austin Scott, and Shontel Brown this week at our farm. In addition to these Members of Congress, we had numerous agricultural organizations to participate in discussions involving the 2024 Farm Bill, agricultural economic assistance, H2A issues, and disaster relief for those that were impacted by Hurricane Helene. These Members hold senior positions for agricultural policy in the U.S. House of Representatives, and we appreciate their interest in bipartisan solutions to very important issues to the agricultural industry.”

    The Farm Bill is the definitive law that governs food and agriculture policy by authorizing federal programs important to farmers, producers, nutrition programs, the agriculture industry, and rural development.

    In May 2024, Congressman Bishop voted in support of the Farm Bill passed by the U.S. House Agriculture Committee. In September, he sent a letter to House and Senate leaders and to the House Agriculture Committee leadership urging them to set aside differences and commit to pass a Farm Bill before the end of this Congress.

    Among its many provisions, the bill increases reference prices for commodities and crop insurance payments to help stabilize income for farmers and protect them from market volatility. It also authorizes voluntary and locally led incentive-based conservation programs and global promotion of U.S. agriculture.

    House Republican leaders have not scheduled the Farm Bill for a vote. Some Republicans and Democrats have raised budgetary concerns about the bill and the U.S. Senate is working on its own version of the Farm Bill. Congressman Bishop remains committed to working towards a bipartisan bill this year that will get the full support of the U.S. Congress and that can be signed into law by President Biden.

    ###

    PHOTO CAPTION: Congressman Bishop (center) flanked by Congresswoman Shontel Brown of Ohio and Congressman Austin Scott from the neighboring Georgia’s 8th Congressional District visit Minor Brothers Farms in Leslie, GA.

    MIL OSI USA News

  • MIL-OSI Global: Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom

    Source: The Conversation – Canada – By Frederick John Packer, Associate Professor of Law and Director of the Human Rights Research and Education Centre, L’Université d’Ottawa/University of Ottawa

    Global freedom has been in decline for nearly two decades, according to Freedom House, an American non-profit organization devoted to supporting democracy around the world.

    That means the role of high-profile freedom activists, including activists in exile — people who are displaced from their countries of origin due to their activism but continue to affect change through various means — has become ever more crucial.

    A recent incident involving Alexander Lapshin, a Soviet-born Israeli travel journalist turned human rights advocate, at Armenia’s Yerevan airport highlights the ongoing persecution faced by activists even in seemingly secure environments.

    On Sept. 21, during Armenia’s Independence Day celebrations, Lapshin said he was detained at the request of Belarusian authorities, accused of insulting the honour and dignity of Belarusian President Aleksandr Lukashenko by highlighting the authoritarian nature of his regime in social media posts.

    Though not formally expelled from any one country, Lapshin’s circumstances have effectively left him with no safe or stable place to settle. He says legal and political pressures in both Ukraine and Israel prevent him from returning.

    Armenia ultimately refused to arrest him, but Lapshin and his family were forced to endure four hours of distressing uncertainty at the Yerevan police station before his release was formally registered by Armenia’s Prosecutor General’s Office.

    This provocation underscored the persistent threats activists face even in countries offering relative safety.

    Extradited to Azerbaijan

    Just weeks before his arrest in Yerevan, we met with Lapshin in Ottawa to learn about his odyssey, and by extension, the suffering of his family resulting from his work as a travelling journalist.

    It’s not the first time Lapshin had been targeted by authoritarians. In 2016, while in Minsk, the capital of Belarus, Lapshin was detained by the authorities at the request of the Azerbaijani government. He was subsequently extradited to Azerbaijan on charges related to his travel in 2012 to the disputed region of Nagorno-Karabakh/Artsakh — an area claimed by both Armenia and Azerbaijan.

    The Azerbaijani government accused Lapshin of violating its laws by entering the enclave without permission and promoting its independence. However, at that point Lapshin had never been involved in politics nor called for the region’s independence. The Azerbaijani court dropped this charge, though convicted him of taking an unauthorized journalistic trip.

    The story of Lapshin’s arrest and extradition drew widespread condemnation from human rights organizations and various governments, who viewed it as a blatant violation of his rights to freedom of movement and expression.

    Lapshin was nevertheless found guilty and sentenced to three years in prison. However, following significant international pressure and diplomatic negotiations, he was pardoned and released in September 2017.

    Lapshin’s Azerbaijani ordeal

    In his subsequent testimony to the Centre for Truth and Justice, a U.S.-based non-profit organization, Lapshin detailed the severe abuse he endured during his imprisonment in Azerbaijan.

    Upon arrival at Kurdakhani prison — known for holding political prisoners — Lapshin was subjected to humiliating strip searches and invasive medical checks. For seven months, he was confined to a small, windowless cell, kept under constant artificial light and allowed only one hour of exercise in a similarly confined yard. His diet was minimal and of poor quality, leading to significant physical and psychological distress.

    Lapshin testifies about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The most harrowing part of his imprisonment came on Sept. 10, 2017, when four masked men brutally assaulted him in his cell. Lapshin described the attack in detail:

    “I felt three of them holding my legs and chest while one strangled me. They punched my ribs, my head and my genitals. I lost consciousness within seconds.”

    He sustained severe injuries, including broken ribs, a broken wrist and multiple broken teeth. Azerbaijani authorities maintained that he had attempted suicide.

    Lapshin’s further testimony about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The European Court of Human Rights eventually examined his complaints and found a violation of his “right to life.” The United Nations Human Rights Committee found multiple violations of his rights (including freedom from torture) under the International Covenant on Civil and Political Rights.

    According to Lapshin, Azerbaijan released him not because of the European Court’s decision, but due to his near death following an attempted murder in custody. He believes the president of Azerbaijan decided to release him without formalities to avoid international tension if he’d died in prison.

    Broader implications

    Lapshin’s recent detention in Armenia is part of a continued pattern of harassment against him as he’s morphed from a travel blogger to a human rights advocate.

    Despite the ordeal, Lapshin sees these provocations as an opportunity to create greater public awareness. The media coverage generated from such incidents often works to his advantage, drawing more attention to the plight of political prisoners and the excesses of authoritarian regimes.

    Lapshin sees his ordeals as helping to raise public awareness about authoritarians.
    (WikiMedia), CC BY

    Lapshin’s collaboration with Jivan Avetisyan, a prominent film director focusing on human rights issues, exemplifies his strategic approach to advocacy — turning personal trauma into powerful narratives that reach a global audience.

    Such collaborations contribute significantly to keeping human rights abuses in the spotlight.

    Activists like Lapshin are crucial figures in the global struggle against authoritarianism. Despite enduring harsh persecution, they persist in their advocacy efforts from the relative safety of democracies, and work to raise awareness among policymakers and the public.

    Lapshin’s recent trip to Ottawa is one example of this. He met with Global Affairs Canada officials and presented them with a sanctions list targeting Azerbaijani officials he alleges are responsible for war crimes and abuses, including those involved in his prison mistreatment.

    Impact and challenges

    Activists like Lapshin employ diverse strategies to advance their causes, such as social media engagement and public mobilization, as well as partnerships with global human rights organizations.

    These efforts often result in positive changes, including the release of detained activists and the imposition of sanctions on oppressive governments. Lapshin’s resilience, along with that of notable exiled activists like Chinese-born Chen Guangcheng and Belarus’ Sviatlana Tsikhanouskaya, demonstrates the power and influence that individuals can wield against repressive regimes from afar.




    Read more:
    Fighting for a future: The Belarusian regiment in Ukraine is staking its claim on democracy


    Activists, in particular those in exile, face numerous challenges, including transnational repression and a lack of resources. Authoritarian regimes employ measures like surveillance, intimidation, physical assaults and even murder to target activists beyond their borders. These activists must also navigate legal, financial and cultural barriers in foreign countries when they seek asylum, find work and try to integrate into new societies, all while continuing their advocacy.

    Lapshin’s experiences illustrate these challenges. The ongoing threats and harassment against him continue even today. Nonetheless, his dedication to human rights advocacy remains unwavering.

    I am a member of various professional / academic associations and some human rights NGOs including (pro bono) the Canada Committee of Human Rights Watch. None of these would be affected by this article nor would I gain any benefit as a result.

    Philip Leech-Ngo does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom – https://theconversation.com/human-rights-advocate-alexander-lapshin-no-place-to-go-but-still-fighting-for-global-freedom-241550

    MIL OSI – Global Reports

  • MIL-OSI Security: Defense News: Secretary of the Navy Visits Georgia Tech Research Institute, Underscoring Commitment to Innovation and Collaboration

    Source: United States Navy

    ATLANTA – Oct. 23, 2024 – The Secretary of the Navy Hon. Carlos Del Toro visited the Georgia Tech Research Institute today to highlight the vital role of research and development in maintaining naval dominance and warfighting excellence. The Secretary addressed Georgia Tech students and faculty, and Naval Reserve Officers Training Corps students from Georgia Tech, Spelman College and Morehouse College, emphasizing the importance of their contributions to national security. 

    The Secretary’s visit underscored the Navy’s commitment to fostering strategic partnerships with academic institutions like Georgia Tech. GTRI, the applied research division of Georgia Tech, plays a crucial role in developing cutting-edge technologies for the Department of the Navy and the Department of Defense. 

    “Georgia Tech is a powerhouse of innovation, and GTRI’s research is critical to ensuring our Sailors and Marines have the technological edge they need to prevail in any conflict,” said Secretary Del Toro. “The work being done here, particularly in areas like artificial intelligence, cyber-physical systems, and electromagnetic spectrum operations, is directly aligned with the Navy’s strategic priorities.” 

    The Secretary highlighted GTRI’s contributions to the DON, including: 

    • Collaborative Research: GTRI works closely with the Office of Naval Research (ONR) and other DoD entities to address specific technological needs. 
    • R&D Contributions: GTRI develops advanced systems such as autonomous vehicles, millimeter wave radar technologies, and electronic warfare solutions. 
    • Prototyping and Testing: GTRI provides facilities for testing and validating new technologies to meet military specifications. 
    • Technology Transition: GTRI focuses on translating research outcomes into practical applications, enhancing operational capabilities for the Navy and broader defense community. 

    The Secretary’s remarks also emphasized the importance of innovation in the face of evolving global challenges. 

    “To win the fight of the future, we must embrace and implement emerging technologies,” said Del Toro. “We are in an innovation race, and it is one we must win.” 

    The Secretary highlighted several DON innovation initiatives, including: 

    • The Naval Science and Technology Strategy: This strategy guides the Navy and Marine Corps’ investments in science and technology research. 
    • The Naval Innovation Center (NIC) at the Naval Postgraduate School: The NIC accelerates the innovation process by bringing research concepts out of the lab and into the field faster. 
    • The Department of the Navy’s Science and Technology Board: This board provides independent advice and counsel on matters relating to science, technology, and acquisition. 
    • The Disruptive Capabilities Office (DCO): The DCO identifies and implements already-available or emerging technologies to address the fleet’s capability gaps. 

    “With today’s enemies developing more advanced technological threats, we are grateful that the Secretary of the Navy made time to visit our Atlanta Region NROTC Midshipmen,” said Atlanta Region NROTC Commanding Officer Capt. Jesus Rodriguez. “Our future Naval officers were provided with a once-in-a-lifetime opportunity when the Secretary personally impressed on them the importance of continued studies in science and technology. Our Midshipmen and NROTC staff are all appreciative for the opportunity to meet with and listen to our Navy’s leadership emphasize the importance of our students’ initiative in technological development during their Naval careers.” 

    The Secretary concluded by issuing a call to action to the students in attendance. 

    “Innovation must permeate every aspect of our department’s approach to deliver technologies and capabilities at a speed and scale necessary for our Navy and Marine Corps to confront the challenges of today and the future.” 

    Read Secretary Del Toro’s remarks here.

    ###

    MIL Security OSI

  • MIL-OSI Security: Defense News: Secretary Del Toro As-Written Remarks at the Georgia Tech Research Institute

    Source: United States Navy

    Introduction/Thank You

    Good afternoon, everyone!

    It is wonderful to be with you at Georgia Tech Research Institute, the future of engineering, science, and technology.

    President Cabrera, thank you for your leadership of the students here at Georgia Tech, the future scientists, engineers, innovators, and problem-solvers of our country.

    Dr. Hudgens, thank you for your leadership and vision for the Georgia Tech Research Institute, and all that you are doing to advance our national security interests.

    I thank the future Navy and Marine Corps Officers from the NROTC consortium here with us today.

    Thank you for answering the call to service—for choosing a path both challenging and difficult. I look forward to you joining our Fleet and Force.

    To all of our Georgia Tech faculty and students, distinguished visitors, and guests—welcome, and thank you for your time today.

    World Today

    As you have read in the news, we face challenges in every corner of the world—from the Indo-Pacific, to Europe, to the Red Sea.

    In Europe, we are approaching the third anniversary of Russia’s full-scale and illegal invasion of Ukraine.

    Ukraine is fighting not only for their own liberty and freedom—they are fighting to protect democracy in Europe and indeed around the world.

    We proudly stand beside them in support for their just and noble cause.

    For the first time since World War II, we face a comprehensive maritime power—our pacing challenge—in the Indo-Pacific.

    The People’s Republic of China continues to exert its excessive maritime claims through their navy, coast guard, and maritime militia.

    In the Red Sea and Gulf of Aden, we have been working tirelessly alongside our NATO allies and Middle Eastern partners to protect innocent civilian mariners and commercial shipping from Iranian-aligned Houthi attacks.

    Following the October 7th attacks in Israel one year ago, our Navy and Marine Corps were swiftly deployed to the region, forming an integrated force capable of responding to any threat.

    Carrier Air Wing Three, our “Battle Axe,” played a pivotal role in protecting civilian mariners, deploying over sixty air-to-air missiles and over 420 air-to-surface weapons.

    We mourn the loss of two trailblazing, combat-decorated naval aviators from Carrier Air Wing Three who passed away during a training event last week: Lieutenant Commander Lyndsay “Miley” Evans and Lieutenant Serena “Dug” Wileman.

    Their sacrifice reminds us that what we ask of our Sailors and Marines is anything but routine.

    And our hearts go out to the families and friends of these brave and selfless warfighters.

    The Bataan Amphibious Ready Group, with the embarked 26th Marine Expeditionary Unit, made significant contributions in the region by deterring hostile Houthi attacks and preventing the conflict from escalating throughout the region.

    Our warships—including the Carney, Mason, Gravely, Laboon, Eisenhower, and Thomas Hudner—have demonstrated exceptional performance under fire, successfully deterring and defeating missile and drone attacks targeting innocent maritime shipping.

    Two of our highly capable destroyers, the USS Cole (DDG 67)—a warship which carries a proud legacy of standing tall to acts of terrorism—and the USS Bulkeley (DDG 84)—which will always have a special place in my naval carer as her first Commanding Officer—aided our Israeli allies in shooting down Iranian ballistic missiles. 

    I am incredibly proud of the professionalism, dedication, and resilience shown by our Cole and Bulkeley Sailors.

    These brave young men and women illustrate the consistent excellence and effectiveness expected of our United States Navy.

    Our Navy-Marine Corps Team remains at the center of global and national security—maintaining freedom of the seas, international security, and global stability.

    DON Innovation Initiatives

    To win the fight of the future, we must embrace and implement emerging technologies.

    We stand on the shoulders of giants in innovation.

    And delivering technology which changes the very nature of warfighting is in our DNA.

    A little over a year ago, I stood in the courtyard of the Pentagon to celebrate the 100-year anniversary of the Naval Research Lab—the place that invented radar, GPS, and the first satellite tracking system—and a place I worked at as a young lieutenant commander.

    At that time, I challenged the research, engineering, and technology developers of today to take their place in the company of those innovation giants.

    I challenged my team to innovate at the speed of relevance to deliver concepts of operations and capabilities which bolster deterrence and expand our warfighting advantage.

    I challenged my Chief of Naval Research to align the Office of Naval Research’s investment in science and technology research—including the research conducted here at Georgia Tech—with each effort aimed at addressing issues we face as a maritime nation.

    Within three months of my challenge to the Chief of Naval Research, he delivered.

    Our new Naval Science and Technology Strategy now drives our Navy and Marine Corps’ innovation investments in science and technology research during this decisive period.

    This strategy is a global call to service for scientists, engineers, inventors, and innovators from academia, industry, and government to work with us in solving naval problems to ensure our freedom and way of life.

    And the Georgia Tech Research Institute has answered this call.

    During this past fiscal year, ONR completed 22 grants here at GTRI worth $23.6 million, and Georgia Tech currently has 72 active contracts and grants with the Navy worth $216 million.

    These ONR grants support research and development of technology in cyber, AI and autonomy, materials and electronics, as well as ocean, atmosphere, and space—focus areas in our Naval S&T Strategy.

    Service to our national security is indeed the engine of GTRI.

    Another critical investment we have made as a result of our strategic change is the establishment of the Naval Innovation Center at the Naval Postgraduate School.

    The NIC will enhance and accelerate the innovation process at NPS by driving “ideas to impact,” bringing research concepts out of the lab and into the field faster by empowering students and partners across the entire Naval Research and Development Establishment to work with the Naval innovation ecosystem and industry—in a whole-of-Navy approach—to speed the delivery of warfighting advantages to our Naval forces.

    Furthermore, we are supporting the construction of a purposefully-designed facility to house the NIC at the Naval Postgraduate School, providing a space for collaboration, defense-focused experimentation, and demonstration of operational use cases to ensure the right technology is evolving.

    S&T Board One Year Update

    Last fall, I also announced the establishment of the Department of the Navy’s Science and Technology Board, with the intent that the board provide independent advice and counsel to the Department on matters and policies relating to scientific, technical, manufacturing, acquisition, logistics, medicine, and business management functions.

    Our Science and Technology Board just completed its inaugural year.

    Under the expert leadership of former Secretary of the Navy Richard Danzig, this impressive group of thought leaders with expertise in government, industry, and academia has completed an ambitious research agenda to identify new technologies for rapid adoption.

    Since I signed out the Board’s initial tasking in February, they have achieved the impressive feat of undertaking and concluding six studies, delivering near term, practical recommendations, that the Department of the Navy can quickly implement.

    I have accepted recommendation reports from the Board and issued implementation guidance related to the path forward on unmanned systems, improving sailor physical and mental health, mission assurance of digital infrastructure, and capitalizing on opportunities for additive manufacturing.

    In fact, Georgia Tech’s own Chief Manufacturing Officer and Manufacturing Institute Executive Director Dr. Tom Kurfess, lent his breadth and depth of expertise in leading a study on additive manufacturing which I accepted last month.

    It is a testament to the Board’s energy and dedication, that it is already embarking on additional projects to keep our Navy at the leading edge of technology and innovation.

    Innovation Closer to the Fight

    Similar to the focus of our S&T Board of Advisors, who are looking at today’s problems and ways that technology can provide new ways to tackle our operational challenges, I chartered a Disruptive Capabilities Office last January to look at already-available or emerging technology to address the Fleet’s capability gaps. 

    And they have delivered.

    DCO identified meaty organizational, doctrinal, and technological advancements that the Navy has implemented, within six months, to close an emergent warfighting gap in Counter-UAS base defense for the CENTCOM area of responsibility.

    DCO is also leading an effort to combine innovative commercial space-enabled capabilities in coordination with the National Reconnaissance Office, the National Geospatial-Intelligence Agency, U.S. Coast Guard, and other governmental agencies to enhance Maritime Domain Awareness for the Department of the Navy along with our allies and partners.

    Replicator and Capability-Based Delivery

    My call to innovation has also put more “ready players on the field” as we look to grow force structure in the near term.

    In the last twelve months, I have fielded varying sizes of unmanned surface vessels into the hands of our operators for use in experimentation, CONOP development, and for operation.

    We are expanding our systems to include not only homogeneous but also heterogeneous collaborative autonomy.

    I am extremely proud of my team’s leadership in this domain, to include our leadership in identifying and quickly procuring the capabilities that support Deputy Secretary of Defense Hicks’s “Replicator” initiative.

    It is no accident that four of the five selected “Replicator” systems came out of the Department of the Navy’s innovation ecosystem.

    And over the last year, our Department has expended more missiles than we have since the Second World War.

    My Program Executive Office for Integrated Warfare Systems has been at the forefront of this fight.

    Last year, I challenged that office to operate and field its systems as a “portfolio of capabilities”—and they have delivered.

    The IWS RCO has been working hand-in-hand with our operators in the fight in the Red Sea to deliver innovations, in near-real time, as we continue to innovate—at speed.

    Call to Action/Closing

    I am extremely proud of everything our department has accomplished over the last three years, and I am excited for our Navy-Marine Corps team as we chart a course for the future—a future that will require us to respond and adapt to whatever geopolitical challenges our Nation may face.

    To those Georgia Tech, Spellman, and Morehouse College students who are not affiliated with the NROTC program—if anything that I said today interests you, I encourage you to speak with me or a member of my staff to learn more about how you can join our team in the Navy or Marine Corps.

    Service in the Navy and Marine Corps is more than just a job—it represents a chance to serve and become something much bigger than yourself.

    And the Department of the Navy also provides numerous opportunities for public service beyond serving in uniform—we need engineers, scientists, and analysts in our Department.

    As our Department continues to re-imagine and refocus our innovation efforts, I encourage all of you—our nation’s scientists, engineers, researchers, and inventors—to join us.

    No matter how you serve, you’ll be part of a team working together toward a shared goal.

    We are indeed in an innovation race—and it is one we must win.

    Innovation must permeate every aspect of our Department’s approach to deliver technologies and capabilities at a speed and scale necessary for our Navy and Marine Corps to confront the challenges of today and the future.

    Thank you all for your commitment to the Department of the Navy, the maritime services, and indeed our Nation.

    May God continue to bless our Sailors, Marines, Civilians, and their families stationed around the globe with fair winds and following seas.

    MIL Security OSI

  • MIL-OSI Australia: Australia outperforms on global budget league tables

    Source: Australian Treasurer

    The Albanese Government’s responsible budget strategy has seen Australia become one of the top ranked economies in the world for fiscal management in 2024, according to figures released by the International Monetary Fund.

    Australia is expected to have the third strongest budget balance as a share of GDP among G20 countries in 2024, and up from 14th in 2021 under the Coalition according to the IMF Fiscal Monitor.

    This is a big vote of confidence in Labor’s management of the nation’s finances.

    From 14th to a podium finish in less than one term is a powerful demonstration of our responsible economic management.

    Our budget has become one of the best in the world under the Albanese Government and that’s what this data shows.

    We’re getting the budget in better nick and paying down billions of dollars of Liberal debt.

    Our responsible economic management has helped in the fight against inflation and has helped make room in the budget for things that matter like healthcare, aged care, and defence. 

    Under the Albanese Government, Australia is ranked ahead of all G7 economies on budget management in 2024, including the US, UK, Canada, France and Germany.

    Since the election, Australia has seen one of the biggest budget improvements of the G20.

    Australia also has the fifth lowest gross debt to GDP ratio in the G20 in 2024, a position which improved in 2023, and has been maintained since then.

    The 2024 budget balance ranking for Australia has also improved since the April projections.

    This endorsement of Labor’s responsible economic management comes after the Final Budget Outcome for 2023‑24 which confirmed the Albanese Government delivered the first back‑to‑back surpluses in nearly two decades.

    The underlying cash surplus of $15.8 billion (0.6 per cent of GDP) for 2023‑24 followed the $22.1 billion (0.9 per cent of GDP) surplus delivered in 2022‑23.

    In dollar terms, these were the biggest back-to-back surpluses on record, meaning the Albanese Government has delivered the largest nominal improvement in the budget position in a Parliamentary term.

    If we took the same approach as our predecessors, we wouldn’t have come close to delivering back-to-back surpluses.

    The budget position has improved by $172.3 billion across the past two years compared to what we inherited from our predecessors.

    The government’s budget strategy strikes the right balance between fighting inflation, rolling out responsible cost-of-living relief, supporting growth in our economy and strengthening public finances.

    We’ve delivered two surpluses at the same time as we’ve rolled out responsible cost-of-living relief including tax cuts for every taxpayer, energy bill relief for every household, cheaper medicines, cheaper child care and the first consecutive real increases to the maximum rates of Commonwealth Rent Assistance in three decades.

    Our economic plan is all about easing the cost of living and fighting inflation at the same time as we lay the foundations for a stronger economy for the future, and back-to-back budget surpluses help on each of these fronts.

    MIL OSI News

  • MIL-OSI USA: ICYMI: US Navy: Projecting Strength and Building the Fleet of Tomorrow

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham

    US Navy: Projecting Strength and Building the Fleet of Tomorrow

    By Senator Lindsey Graham and Morgan Ortagus

    Fox News

    October 23, 2024

    https://www.foxnews.com/opinion/us-navy-projecting-strength-and-building-fleet-tomorrow

    It’s time for all Americans to grasp a hard truth: in a world that may be on the brink of World War III, our military budgets are inconsistent with the threats we face. This is especially the case with the budget of the Department of the Navy.  

    The bad news: the current Navy budget will not make a stronger military or a larger U.S. fleet a reality. The good news: through American innovation and more agile products, we can build a bigger and more efficient Navy.  

    However, President Biden’s proposed FY2025 budget of $257.6 billion for the Department of the Navy is well below inflation and does not provide for a more lethal Navy. 

    As both President Biden and President Trump certified, the most direct challenge facing the U.S. Navy today is from the People’s Republic of China. Therefore, strong investments must be made now to ensure the Navy, and most importantly the United States, can meet this threat head-on.

    It comes as no shock to the reader that America and its allies and partners are facing an unprecedented deluge of maritime threats by the People’s Republic of China. The Chinese Navy alone has provoked a U.S. destroyer in the Taiwan Strait with dangerous maneuvers, harassed Taiwan with aggressive military exercises, entered America’s Exclusive Economic Zone in the Bering Sea, developed a jam-resistant submarine torpedo, and injured several Filipino sailors at and around Second Thomas Shoal.  

    These developments incrementally set the conditions for a direct conflict on the open seas. Meanwhile, Washington has been lulled into complacency by decades of maritime supremacy. Most concerning, the United States lacks the political resolve to shed the Navy’s Soviet-era mentality and adapt to the new era of great power competition. 

    To meet the moment’s maritime threats, America must choose between tough and tougher: make significant investments in our fleet or face the costs of inaction.

    Section One: Expanding U.S. Shipbuilding Capacity and Cooperation with Allies

    Our shipbuilding industrial base is grappling with significant delays and challenges, affecting major programs like the Columbia-class submarines, Constellation-class frigates, and Ford-class carriers. These delays are not only impacting the procurement of new ships, they are also impacting the ability to maintain the current fleet. 

    A great first step to combating the maritime threats our nation faces is to expand the physical footprint of the U.S. shipbuilding industry.  

    The U.S. shipbuilding industry is first in its class and the men and women that come to work every day in our nation’s shipyards build the world’s most lethal and capable warships. In states like South Carolina, there are a wealth of maritime industry suppliers and shipbuilders diligently producing the necessary components to construct our nation’s ships.  

    But that alone is not enough. China’s Bohai Shipyard boasts an annual capacity exceeding the total number of ships our Navy has launched since 2014.  

    In addition, China is rapidly expanding its existing shipyards and according to experts “has been investing so much in shipbuilding over the past 18 years that it can now build more ships in a month than the United States can in a year.” 

    By comparison, America only has four public shipyards and these yards focus on maintenance of submarines and aircraft carriers and not the construction of new vessels.

    The Department of the Navy should look at states like South Carolina to build new shipyards to maximize the U.S. shipbuilding capacity and our maritime industry. 

    In addition, the Navy must expand maintenance capacity here in the states as well as in the Pacific. The U.S. Navy has already decided to augment its capacity by placing a submarine maintenance facility in Guam. This should be replicated for other vessels elsewhere. 

    It is clear that the need for more shipbuilding capacity is great and immediate. Investing here at home will certainly help address the need. At the same time, our nation should also not discount opportunities to work with others when the opportunity presents itself.  

    The U.S. Navy cannot afford to leave any stone unturned when thinking of innovative ways to grow the fleet as quickly as possible.

    Section Two: Fleet Requirements and Capabilities

    A fundamental step toward a 21st-century U.S. Navy is improving both the size and modernity of our existing fleet. The fleet currently consists of carriers, surface combatants, submarines, amphibious warships, combat logistics ships, fleet support vessels and mine warfare assets.  

    Yet this fleet is hardly agile or scalable enough to meet a Chinese maritime threat that includes drones, hypersonic missiles and other high-tech tools of warcraft.

    Persistent gaps also remain in amphibious warfare and in contested logistics. Amphibious combat vehicles, landing vessels, and light warships are all needed in higher quantities for rapid and effective landings. 

    Unmanned and underwater systems are especially relevant to modern naval operations. Often at a fraction of the cost of manned vessels, these vessels – both large and small – perform intelligence, surveillance, reconnaissance missions, logistics and strike operations.  

    They also relieve pressure on our high-demand, low-density assets while augmenting the fleet. The proof is in their success in Ukraine, where naval drones have successfully countered Russia’s Black Sea Fleet, forcing them into safe harbors and destroying dozens of Russian vessels.

    In addition to their combat roles, unmanned systems are revolutionizing naval logistics. Unmanned logistics platforms can autonomously deliver supplies, ammunition, and fuel to forward-deployed forces, significantly extending the operational reach of our fleet.  

    These systems reduce the need for manned resupply missions, which are often vulnerable to enemy attacks, thereby enhancing the safety and efficiency of our operations. By integrating unmanned logistics into our naval strategy, we can maintain sustained operations in contested environments, ensuring our forces remain equipped and ready for extended engagements.

    A possible way to advance the construction of these unmanned vessels is through an international partnership. Such a partnership could be modeled after the trilateral security partnership between the United States, the United Kingdom and Australia (AUKUS) for submarine production in Australia. An AUKUS-like agreement for unmanned systems could create a new pathway for faster construction of these unmanned platforms and increase the integration between partners.

    China’s naval power is growing at an alarming rate, with close to 400 ships currently in service and projections of 435 by 2030. The impact of this expansion is worsened by our diminishing technology gap, as China advances its naval technology while the U.S. Navy struggles to build ships.  

    Meanwhile, the U.S. Navy’s latest shipbuilding assessment calls for 381 battle force ships (carriers, destroyers, amphibious ships, submarines, etc.) and 134 unmanned vehicles, totaling 515 vessels.  

    While it is great to have a roadmap, the U.S. Navy’s own shipbuilding plan projects that we would not reach 381 battle force ships until 2043 under the best scenario. This delay poses an unacceptable risk to our national security and could force our sailors into a fight they are underequipped to win.

    To avoid that scenario and reduce the exposure of manned ships to enemy attacks, we must expedite shipbuilding with a focus on unmanned surface and subsurface systems that are affordable and quick to produce. America does not have to win a shipbuilding foot race, but we must strategically invest in both the capabilities and capacities to counter China’s growing maritime capabilities and protect our interests.

    Section Three: Funding the Department of the Navy

    The U.S. military budget is woefully underfunded for the threats our nation faces today. The U.S. is on target to spend only 3.1% of total GDP on defense in Fiscal Year 2025 and that percentage is projected to fall to a paltry 2.4% in 2034 under the Biden-Harris budget plan.  

    Budgetary “business as usual” will only widen the gap between U.S. and Chinese naval capabilities. With China’s defense budget growing in both size and sophistication, it is imperative the United States make greater, and smarter, investments of our own. 

    Increasing funding for the Navy’s ship procurement, known as the Shipbuilding and Conversion account, alone will not be enough.  In order to address the shipbuilding problem, Congress should consider a comprehensive approach that includes strong and consistent funding across procurement, operations and maintenance, research and development, personnel and military construction accounts.  

    In order to do this, Congress will need to think outside the box as the current budgetary restraints limit the needed investments. Congress should form a “Fleet Investment Fund” – codifying the Navy’s entire budget growth at least 5% above inflation and more than the department’s topline request – covering all aspects of naval development and readiness. 

    Most importantly, this account should not be subject to any caps or restrictions within the president’s budget request to Congress each fiscal year. The formation of this account must be seen as a national imperative.

    Conclusion

    There is no doubt that the costs of these investments are great and will require tradeoffs and significant political capital, but the costs of inaction will be far greater. History demonstrates that adversaries are emboldened by America’s hesitation and deterred by its resolve. History proves that the U.S. Navy can adapt to evolving defense needs. 

    Since 1945, America has served as the global guarantor of open seas and freedom of navigation in contested waterways and critical trade routes. President Theodore Roosevelt stated before Congress in 1902 that “a good Navy is not a provocation to war. It is the surest guaranty of peace.”

    Morgan Ortagus is the founder of Polaris National Security and formerly served as the spokesperson for the U.S. State Department under President Trump. 

    Republican Lindsey Graham represents South Carolina in the United States Senate. 

    MIL OSI USA News

  • MIL-OSI USA: FEMA Administrator Checks on Recovery Efforts in Georgia, Meets with State and Local Officials as Hurricane Helene Recovery Continues Throughout the Southeast

    Source: US Federal Emergency Management Agency 2

    em>More than 141,000 Georgia households have been approved for $156 million in FEMA housing and other types of assistance
    FEMA Administrator to travel to South Carolina on Thursday, October 24 to check on long-term recovery
    WASHINGTON – Today, FEMA Administrator Deanne Criswell is in Augusta, Georgia to meet with state and local officials, survivors and FEMA staff supporting recovery efforts. She will also meet with Georgia Emergency Management Agency to discuss long-term recovery. Tomorrow, she will travel to South Carolina to meet with Gov. McMaster, check on federal recovery efforts and visit local Disaster Recovery Centers. 
    To date, the Biden-Harris Administration has approved over $2 billion in federal assistance for individuals and communities affected by Hurricanes Helene and Milton. FEMA has over 5,000 personnel deployed throughout the Southeast, contributing to a total of over 6,000 federal responders who are working together to support state and local governments in their recovery efforts. FEMA personnel remain on the ground in communities across the Southeast and are actively coordinating with local officials, conducting damage assessments and helping individuals apply for disaster assistance programs. 
    Federal assistance for those affected by the hurricanes includes $940 million to support survivors with housing repairs, personal property replacement and other essential recovery efforts. Additionally, over $1.1 billion has been approved for debris removal and emergency protective measures, which are necessary to save lives, protect public health and prevent further damage to public and private property.
    Applying for assistance is a critical first step towards recovery. Disaster survivors in certain areas of Georgia, Florida (Helene), Florida (Milton), North Carolina, South Carolina, Tennessee and Virginia can begin their recovery process by applying for federal assistance through FEMA. Individuals affected by the hurricanes are encouraged to apply as soon as they are able to by visiting DisasterAssistance.gov, which is the fastest way to get an application started. Individuals can also apply using the FEMA App, calling 1-800-621-3362 or in person at a local Disaster Recovery Center. Disaster Recovery Centers in the affected communities can provide survivors with in-person help on their applications and answer questions. Center locations can be found at FEMA.gov/DRC. FEMA also has Disaster Survivor Assistance team members in the field supporting survivors and helping them with the application process. 
    Federal assistance for individuals may include upfront funds to help with essential items like food, water, baby formula, breastfeeding supplies and other emergency supplies. Funds may also be available to repair storm-related damage to homes and personal property, as well as assistance to find a temporary place to stay. Homeowners and renters with damage to their home or personal property from previous disasters, whether they received FEMA funds or not, are still eligible to apply for and receive assistance for other federally declared disasters.   
    Recovery Update
    For those affected by Hurricane Helene, FEMA has approved over $1.3 billion in assistance. This includes $797 million in assistance for individuals and families, along with more than $524 million for debris removal and efforts to protect public health and safety. In response to Hurricane Milton, FEMA has approved more than $749 million in assistance, with $142 million allocated for individuals and families and over $606 million for debris removal and safety measures.
    FEMA now has 57 Disaster Recovery Centers open throughout the affected communities to provide survivors with in-person assistance with more opening each day. These centers offer help with applications for FEMA assistance, information on available resources and guidance through the recovery process. Over 1,300 Disaster Survivor Assistance team members remain on the ground in neighborhoods in all affected states helping survivors apply for assistance and connecting them with additional state, local, federal and voluntary agency resources. 
    Support for Georgia
    FEMA has approved over $156 million in housing and other types of assistance for more than 141,000 households.
    There are 214 Disaster Survivor Assistance members in communities providing support. There are also nine Disaster Recovery Centers now open in Augusta, Baxley, Douglas, Lyons, Midway, Sandersville, Savannah, Thompson and Valdosta where survivors can speak to state and federal personnel to help with their recovery. Survivors may find their closest center by visiting FEMA.gov/DRC.
    Residents can find resources like shelters and feeding sites at gema.georgia.gov/hurricane-helene. 
    Support for South Carolina
    FEMA has approved over $166 million in housing and other types of assistance for more than 176,000 households. 
    More than 1,800 survivors who cannot return home are currently staying in safe and clean lodging through FEMA’s Transitional Sheltering Assistance program.
    There are 124 Disaster Survivor Assistance members in communities providing support. There are also eight Disaster Recovery Centers now open in Allendale, Anderson, Gaffney, Graniteville, Greenville, Greenwood, Newberry and Union where survivors can speak to state and federal personnel to help with their recovery. Survivors may find their closest center by visiting FEMA.gov/DRC.
    Residents with questions on Helene can call the state’s toll-free hotline, open 24 hours a day, at 1-866-246-0133. Residents who are dependent on medical equipment at home and who are without power due to Helene may be eligible for a medical needs shelter. Call the state’s Department of Public Health Care Line at 1-855-472-3432 for more information. 
    Support for North Carolina
    FEMA has approved over $134 million for over 94,000 households and other types of assistance. Additionally, FEMA has approved more than $189 million for debris removal and reimbursement of emergency protective measures for the state.
    More than 2,600 survivors who cannot return home are currently staying in safe and clean lodging through FEMA’s Transitional Sheltering Assistance program. Mass shelter numbers remain steady, with 11 shelters housing just over 440 occupants. 
    FEMA delivered over 7.8 million meals and 10.3 million liters of water to North Carolina. Commodity distribution, mass feeding and hydration operations remain in areas of western North Carolina. Voluntary organizations are supporting feeding operations with bulk food and water deliveries coming via truck and aircraft. Residents can visit ncdps.gov/Helene to get information and additional assistance.  
    There are over 420 Disaster Survivor Assistance members in communities providing support. There are also 15 Disaster Recovery Centers now open in Asheville, Bakersville, Boone, Brevard, Charlotte, Hendersonville, Jefferson, Lenoir, Marion, Morgantown, Newland, Old Fort, Sparta, Sylva and Waynesville where survivors can speak directly with FEMA and state personnel for assistance with their recovery. To find the nearest center, visit FEMA.gov/DRC.
    Support for Florida
    In response to Helene, FEMA has approved over $319 million in housing and other types of assistance for more than 99,000 households. Additionally, FEMA has approved more than $335 million in Public Assistance for debris removal and emergency work. In response to Milton, FEMA has approved over $142 million in housing and other types of assistance for over 121,000 households. Additionally, FEMA has approved more than $606 million in Public Assistance for debris removal and emergency work.
    In response to Helene and Milton, FEMA delivered over 4.6 million meals and 4.4 million liters of water to Florida.
    More than 5,500 survivors who cannot return home are currently staying in safe and clean lodging through FEMA’s Transitional Sheltering Assistance program. Mass shelter numbers continue to decline, with 14 shelters housing just over 650 occupants. 
    There are 495 Disaster Survivor Assistance members in communities to provide support. There are also 16 Disaster Recovery Centers now open in Alligator Point (Mobile), Branford, Brooksville, Fort Pierce, Homosassa, Lake City, Largo, Live Oak, Madison, Old Town, Palmetto (Mobile), Perry, Punta Gorda (Mobile), Sarasota, Stuart, and Vero Beach supporting survivors from Debby, Helene and Milton where survivors can speak to state and federal personnel to help with their recovery. Survivors may find their closest center by visiting FEMA.gov/DRC.
    Residents in need of information or resources should call the State Assistance Information Line (SAIL) at 1-800-342-3557. English, Spanish and Creole speakers are available to answer questions.  
    Support for Virginia
    To date, FEMA has approved over $6.6 million in housing and other types of assistance for more than 2,200 households.
    There are about 76 Disaster Survivor Assistance members in communities providing support. There are also six Disaster Recovery Centers open in Christiansburg, Damascus, Dublin, Independence, Marion and Tazewell where survivors can speak to state and federal personnel to help with their recovery. Survivors may find their closest center by visiting FEMA.gov/DRC.
    Residents can find resources like shelters and feeding sites at: Recover – Hurricane Helene | VDEM (vaemergency.gov).
    Support for Tennessee
    FEMA has approved more than $14.3 million in housing and other types of assistance for more than 3,900 households.
    There are more than 56 Disaster Survivor Assistance members in communities providing support. There are now three Disaster Recovery Center open in Erwin, Greenville and Morristown where survivors can speak to state and federal personnel to help with their recovery. Survivors may find their closest center by visiting FEMA.gov/DRC.
    Counties continue to establish donation centers. For the evolving list, visit TEMA’s website.

    MIL OSI USA News

  • MIL-OSI USA: “Grave Concern”: Senator Reverend Warnock and Rep. Johnson Question BioLab’s Leadership Over Safety Concerns at Conyers Facility

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    “Grave Concern”: Senator Reverend Warnock and Rep. Johnson Question BioLab’s Leadership Over Safety Concerns at Conyers Facility

    In a letter to Michael Sload, CEO of KIK Consumer Products, the owner of the lab, Senator Reverend Warnock requested details regarding the September fire and what the company is doing to ensure it doesn’t happen again
    Additionally, the lawmakers inquired about the company’s plans to work with residents in the community that were impacted by the smoke plume
    ICYMI from the AJC: Sen. Warnock, Rep. Johnson want answers from BioLab as pressure mounts following fire
    Senator Reverend Warnock, lawmakers: “This fire is just one of BioLab’s safety violations, and BioLab cannot continue to put the Rockdale community in this position”
    Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), led a bicameral push alongside U.S. Congressman Hank Johnson (D-GA-04) to Michael Sload, the CEO of KIK Consumer Products, the company that owns and operates the BioLab in Conyers, GA, urging responses to a series of questions about the company’s plans to address long-standing safety lapses and prevent future emergencies at the facility, as well as its efforts to compensate local families following the September 29th fire that produced a chemical smoke plume over the surrounding area and impacted local residents. 
    “We write with grave concern regarding BioLab’s September 29, 2024, fire at the company’s Conyers, Georgia facility, the resulting chemical plume and debris, and the immediate and potential long-term effects on communities in Georgia. This fire is just one of BioLab’s safety violations, and BioLab cannot continue to put the Rockdale community in this position,” wrote the lawmakers.
    “While any fire of this magnitude is concerning, we are particularly alarmed that the September 2024 fire was the third major chemical event at BioLab’s Conyers facility in the past two decades. In May 2004 and again in September 2020, chemical incidents at this exact facility caused residential evacuations and shut down U.S. Interstate 20 (I-20)—just as we saw on September 29. Chemical incidents are not the only failures to occur at BioLab.” continued the lawmakers. 
    Specifically, the lawmakers requested the company’s leadership respond in detail to questions regarding the events of September 29, BioLab’s prior safety failures and workplace violations, and BioLab’s plan to address any financial, health, and potential environmental harms to the Rockdale County and metro Atlanta community.
    “BioLab must correct its pattern of safety failures to prevent similar incidents from occurring in the future,” the lawmakers concluded.
    This latest effort to hold BioLab accountable for the September 29 fire and its impact on the local community follows a letter sent recently, led by Senator Warnock and Congressman Johnson urging the Environmental Protection Agency (EPA) to strengthen federal oversight of facilities manufacturing or storing certain hazardous chemicals. The lawmakers pushed EPA Administrator Michael Regan to enhance federal oversight of facilities that manufacture and/or store Trichloroisocyanuric Acid (TCCA), which is at the heart of the incident at the BioLab plant in Conyers. 
    The letter can be found HERE.

    MIL OSI USA News

  • MIL-OSI Australia: Qube’s proposed acquisition of MIRRAT raises preliminary concerns

    Source: Australian Competition and Consumer Commission

    The ACCC has published a Statement of Issues outlining preliminary competition concerns with Qube Holdings Limited’s (ASX:QUB) proposed acquisition of Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT).

    The ACCC is also seeking views on a court-enforceable undertaking offered by Qube, which it has put forward to remedy competition concerns.

    MIRRAT operates the automotive/Roll-on Roll-off terminal at Webb Dock West in Melbourne. The proposed acquisition would permit Qube to acquire sole operating rights for roll-on roll-off trade through the Port of Melbourne.

    Qube, through its wholly owned subsidiary, Australian Amalgamated Terminals Pty Ltd (AAT), operates automotive cargo terminals at the Port of Brisbane and Port Kembla, as well as a general cargo terminal at Appleton Dock at the Port of Melbourne.

    Qube is Australia’s largest provider of import and export logistics services including port-related activities of terminal management, stevedoring, processing, pre-delivery inspection (PDI) and delivery. 

    Webb Dock West is the key facility for the processing of automotive and roll on-roll off cargo through the Port of Melbourne, according to feedback received by the ACCC.

    “The proposed acquisition would result in Qube, which is one of Australia’s largest integrated terminal and freight logistics providers, owning a further interest in a critical component of the automotive delivery supply chain at the Port of Melbourne,” ACCC Commissioner Dr Philip Williams said.

    “We are concerned that the proposed acquisition may have a significant effect on competition in downstream services such as automotive stevedoring and pre-delivery inspection (PDI) services.”

    “If this transaction goes ahead, Qube would be operating the terminal while also being in active competition with other automotive stevedores or PDI providers,” Dr Williams said.

    The ACCC is concerned that Qube could raise the costs of access for rival stevedores and PDI operators, preventing them from competing effectively.

    Qube could do this by restricting access to the terminal or related services, raising prices and lowering the quality of terminal services.

    Concerns were also raised with the ACCC that Qube would have access to rivals’ commercially sensitive information as the terminal operator.

    Proposed undertaking

    Qube’s proposed undertaking, which would vary the current court-enforceable undertakings in place at Port Kembla and Port Brisbane, would:

    • require AAT to not discriminate between terminal users in favour of its own interests in the automotive supply chain by providing for certain price and non-price dispute resolution processes, ring fencing certain confidential information and report periodically on its compliance with the undertaking
    • provide independent oversight (including by an independent auditor), and
    • impose restrictions on AAT’s ability to introduce or change certain tariffs.

    “We are now seeking feedback on both the preliminary competition concerns associated with the acquisition identified in the Statement of Issues and the proposed undertaking, which has been put forward by Qube,” Dr Williams said.

    “While the ACCC has decided to publicly consult on the undertaking, this should not be interpreted to mean that this or any undertaking will ultimately be accepted.”

    The Statement of Issues and proposed undertaking is available on the ACCC’s public register here: Qube Holdings Limited (Qube) – Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT).

    The ACCC invites submissions in response to the Statement of Issues by 7 November 2024.

    Background

    MIRRAT’s ultimate parent company is Wallenius Wilhelmsen ASA (WW). WW is a Norway-based global provider of roll on roll off shipping and vehicle logistics and operates automotive terminals in Europe, the UK, the US and the Asia-Pacific. MIRRAT’s only operation in Australia is the automotive/RoRo terminal at Webb Dock West.

    MIRRAT operates Webb Dock West subject to a section 87B undertaking accepted by the ACCC on 27 March 2014 (MIRRAT Undertaking). The MIRRAT Undertaking was accepted by the ACCC in relation to MIRRAT’s acquisition of a long-term lease to operate the Webb Dock West Roll on Roll off terminal at Port Melbourne. The MIRRAT Undertaking commenced on 1 January 2018. It expires when MIRRAT ceases to operate the Terminal, which may occur on or before 30 June 2040, and when the ACCC confirms this in writing.

    The MIRRAT Undertaking includes a provision regarding change of control of MIRRAT’s business (that is, the operation of the Roll On Roll Off terminal at Webb Dock West). Under the change of control provision, control of the operation of the automotive terminal at Webb Dock West may only change to a new person or entity, if that person or entity has given a s87B undertaking to the ACCC that:

    • requires it to comply with the same obligations as are imposed on MIRRAT pursuant to the MIRRAT Undertaking, or
    • on terms that are otherwise acceptable to the ACCC,

    unless the ACCC has notified MIRRAT in writing that a s87B undertaking under the change of control provision is not required.

    The full text of the existing MIRRAT Undertaking can be found on the ACCC’s s87B undertakings register.

    Qube is Australia’s largest integrated provider of import and export logistics services. Its port-related activities include facilities management, stevedoring, processing, PDI and delivery. It manages and develops strategic properties such as inland rail terminals and related logistics facilities. It provides road and rail transport of freight to and from ports, operation of container parks, customs and quarantine services, warehousing, intermodal terminals, and international freight forwarding.

    In addition to being a terminal operator, Qube provides general stevedoring, automotive stevedoring and PDI services at each of its eastern seaboard ports. It provides general and automotive stevedoring through its affiliated entity ‘Qube Ports’. Qube provides PDI services through its 50% interest in K Line Auto Logistics which owns and operates PrixCar.

    AAT (Qube) operates automotive cargo terminals in Port of Brisbane and Port Kembla, as well as a general cargo terminal at Appleton Dock in Port of Melbourne.  The facilities are operated under a s87B undertaking accepted by the ACCC in 2016 (AAT Undertaking).

    The AAT Undertaking was accepted in relation to Qube’s acquisition of a 50 per cent shareholding in AAT, resulting in Qube holding 100 per cent of AAT. The AAT Undertaking commenced on 23 November 2016 (and was varied on 25 June 2018). It has no end date.

    The AAT Undertaking requires that any stevedore or transport operator may apply to have access to the site to service their customers. The access is on a non-discriminatory basis so that all parties are provided services to the same level. Stevedores or transport operators seeking access to the terminal can apply through AAT who will provide a stevedore licence or permit access to approved applicants. The full text of the AAT Undertaking can also be found on the ACCC’s s87B undertakings register.

    The proposed acquisition will give rise to a Change of Control for the purpose of the MIRRAT Undertaking. AAT does not propose to enter a section 87B undertaking with identical terms to the MIRRAT Undertaking. Instead, AAT (Qube) proposes that its operation of the Terminal would be subject to the AAT Undertaking already in place for its existing terminals with additional clauses including in relation to the Price Dispute Resolution Process.

    MIL OSI News

  • MIL-Evening Report: How do genes shape the structures in our brains? We studied 70,000 people and found new links to ADHD and Parkinson’s

    Source: The Conversation (Au and NZ) – By Luis M. García Marín, Postdoctoral Researcher, Brain & Mental Health Program, QIMR Berghofer Medical Research Institute

    SeanidStudio/Shutterstock

    The human brain is a marvel of complexity. It contains specialised and interconnected structures controlling our thoughts, personality and behaviour.

    The size and shape of our brains also play a crucial role in cognitive functions and mental health. For example, a slightly smaller hippocampus, the structure responsible for regulation of memory and emotion, is commonly seen in depression. In dementia, atrophy of the hippocampus is correlated with memory loss and cognitive decline.

    Despite these insights, we have only scratched the surface of understanding the brain and its connection to mental health.

    In collaboration with scientists around the world, we have conducted the world’s largest genetic study of the volume of regional structures of the brain. This study is now published in Nature Genetics.

    We discovered hundreds of genetic variants that influence the size of structures such as the amygdala (the “processing centre” for emotions), the hippocampus and the thalamus (involved in movement and sensory signals).

    We uncovered their potential overlap with genes known to influence the risk of certain developmental, psychiatric and neurological disorders.

    More than 70,000 brains

    To understand how the brain connects to mental health, scientists like ourselves engage in large-scale scientific studies that span the globe.

    These studies, which involve thousands of volunteers, are the bedrock of modern biomedical research. They help us discover genes associated with brain size and mental health conditions. In turn, this can improve diagnostic precision and even pave the way for personalised medicine, which uses a person’s genetic test results to tailor treatments.

    We screened the DNA and closely examined magnetic resonance imaging (MRI) scans from more than 70,000 people across 19 countries. We wanted to find out if there are specific genetic variants influencing differences in brain size between individuals.

    What we found was stunning. Some of these genes seem to act early in life, and many genes also increase the risk for conditions like attention-deficit hyperactivity disorder (ADHD) and Parkinson’s disease.

    What did we find out?

    Brain-related disorders are common, with an estimated 40% of Australians experiencing a mental health disorder in their lifetime.

    Our genetic findings reveal that larger regional brain volumes (the size of specific parts of the brain) are associated with a higher risk of Parkinson’s disease. In comparison, smaller regional brain volumes are statistically linked with a higher risk of ADHD.

    These insights suggest that genetic influences on brain size are fundamental to understanding the origins of mental health disorders. And understanding these genetic links is crucial. It shows how our genes can influence brain development and the risk of mental health conditions.

    By investigating shared genetic causes, we could one day develop treatments that address multiple conditions simultaneously, providing more effective support for individuals with various conditions. This is especially important in mental health, where it is common for someone to experience more than one disorder at the same time.

    Our study also revealed that genetic effects on brain structure are consistent across people from both European and non-European ancestry. This suggests that certain genetic factors have stuck around throughout human evolution.

    Bridging the gaps

    Our research also lays the groundwork for using genetic data to develop statistical models that predict disease risk based on a person’s genetic profile.

    These advancements could lead to population screening, identifying those at higher risk for specific mental health disorders. Early intervention could then help prevent or delay the onset of these conditions.

    In the future, our goal is to bridge the gaps between genetics, neuroscience, and medicine. This integration will help scientists answer critical questions about how genetic influences on brain structure affect behaviour and disease outcomes.

    Understanding the genetics of brain structure and mental health susceptibility can help us better prevent, diagnose and treat these conditions.

    The concept of the “human brain” first appeared in ancient Greece around 335 BCE. The philosopher Aristotle described it as a radiator that prevented the heart from overheating. While we now know Aristotle was wrong, the complexities of the brain and its links to mental health remain largely mysterious even today.

    As we continue to unlock the genetic secrets of the brain, we move closer to unravelling these mysteries. This type of research has the potential to transform our understanding and treatment of mental health.

    Luis M. García Marín receives funding from The University of Queensland (UQ).

    Miguel E. Rentería receives funding from the Rebecca L Cooper Medical Research Foundation, the Shake It Up Australia Foundation, The Michael J. Fox Foundation for Parkinson’s Research & the Medical Research Future Fund.

    ref. How do genes shape the structures in our brains? We studied 70,000 people and found new links to ADHD and Parkinson’s – https://theconversation.com/how-do-genes-shape-the-structures-in-our-brains-we-studied-70-000-people-and-found-new-links-to-adhd-and-parkinsons-231824

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Security: Justice Department Announces Four Cases Brought by Election Threats Task Force

    Source: Office of United States Attorneys

    WASHINGTON — The Justice Department’s Election Threats Task Force (ETTF) announced developments this week in four cases involving interstate transmissions of threats to election personnel and other victims.

    Teak Brockbank, 45, of Cortez, Colorado, pleaded guilty today to threatening a Colorado election official, and admitted to making other threats to an Arizona election official, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024.

    Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced on Monday to 30 months in prison for sending messages threatening violence to election workers with Maricopa County Elections in Phoenix on Aug. 2-4, 2022, during and immediately following the Arizona primary elections.

    Richard Glenn Kantwill, 61, of Tampa, Florida, was charged on Monday for allegedly sending a threat on Feb. 9 to an election official in addition to already pending charges for threats made to three other victims based on their political commentary in 2019 and 2020.

    John Pollard, 62, of Philadelphia, was charged on Monday for allegedly threatening on Sept. 6 to kill a representative of a Pennsylvania state political party who was recruiting official poll watchers.

    “As we approach Election Day, the Justice Department’s warning remains clear: anyone who illegally threatens an election worker, official, or volunteer will face the consequences,” said Attorney General Merrick B. Garland. “Over the past three and a half years, the Justice Department has been aggressively investigating and prosecuting those who threaten the public servants who administer our elections, and we will continue to do so in the weeks ahead. For our democracy to function, Americans who serve the public must be able to do their jobs without fearing for their lives.”

    “Threats to election workers are threats to our democratic process,” said Deputy Attorney General Lisa Monaco. “No one should face violence or threats of violence simply for doing their job. The actions announced today make clear that we will not tolerate those who use or threaten violence in an effort to undermine our democratic institutions. To carry out their essential work, election officials must be free from improper influence, physical threats, and others forms of intimidation.”

    “Our elections are made by possible by the hard work and patriotism of election workers in communities across the country who are also our neighbors, relatives and friends, and they deserve to do this important work without being subjected to threats,” said FBI Director Christopher Wray. “The fact that election workers need to be worried about their security is incomprehensible and unacceptable. While these four cases are examples of the kinds of threats election workers are unfortunately facing, these cases also represent the FBI’s dedication in holding accountable those who undermine our democracy with this conduct. The FBI and our partners on the ETTF will work tirelessly to charge and arrest those callous enough to make these threats and make sure they are held accountable. Free, fair, and safe elections are critical to our country and our democratic ideals.”

    “These defendants made serious threats of violence against members of the election community. Threats like these strike at the very heart of our democracy,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases announced today underscore the Criminal Division’s commitment to defending our democracy, safeguarding our elections, and protecting all election workers. Through the ETTF, the Department will vigorously investigate and prosecute all criminal threats against members of the election community.”

    The four cases were all brought by the ETTF. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.

    Under the leadership of the Attorney General and the Deputy Attorney General, the task force is led by the Criminal Division’s Public Integrity Section (PIN) and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

    United States v. Brockbank (District of Colorado)

    According to court documents, Brockbank admitted to using three social media accounts to post messages threatening Colorado and Arizona election officials between September 2021 and July 2024.

    On Sept. 22, 2021, Brockbank posted the following message on social media:

    “[Election Official-1] . . . needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”

    As part of his plea, Brockbank also admitted to posting a message on Aug. 4, 2022 referring to election officials in Arizona and Colorado, stating: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”

    In addition, Brockbank admitted to posting a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”

    Brockbank further admitted to threatening federal law enforcement on July 13, 2024, posting: ““I believe every single FBI agent deserves to go explain themselves to our creator right away!!!! I am more than willing to send any/All of you there.”

    Finally, Brockbank admitted to illegally possessing multiple firearms and ammunition.

    “The security and sanctity of the American election system is core to the foundation of our Democracy,” said Acting United States Attorney Matt Kirsch for the District of Colorado. “We will prosecute people who threaten elections, election officials, or election workers to the fullest extent of the law.”

    Brockbank pleaded guilty today to interstate transmission of a threat. He is scheduled to be sentenced on Feb. 3, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Denver Field Office is investigating the case.

    Acting Deputy Director Jonathan E. Jacobson of PIN’s Election Crimes Branch and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.

    United States v. Ogstad (District of Arizona)

    According to court documents, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad sent multiple threatening direct messages to a social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated: (1) “You did it! Now you are f*****.. Dead. You will all be executed for your crimes”; (2) F*** you! You are caught! They have it all. You f****** are dead”; (3) “You are lying, cheating m****** f******* . . . you better not come in my church, my business or send your kids to my school. You are f****** stupid if you think your lives are safe”; and (4) “You f******  are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking stupid. Everyone knows you are lots, cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang f******!” ” In the course of his messages to the recipient, Ogstad transmitted an image of the character “Woody,” from the Toy Story film franchise, lying face down with an unidentified projectile in its back.

    “In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said U.S. Attorney Gary Restaino for the District of Arizona. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”

    Ogstad was sentenced on Monday to 30 months in prison, followed by three years of supervised release and a $1,000 fine, after pleading guilty on July 25 to one count of interstate transmission of a threat.

    The FBI Phoenix Field Office investigated the case, with substantial assistance from the FBI Birmingham Field Office.

    Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona prosecuted the case.

    United States v. Kantwill (Middle District of Florida)

    According to court documents, from September 2019 to July 2020, Kantwill, a dentist, sent over 100 threats to various public figures via Facebook and Instagram messages, email, and text. As charged in the superseding information filed on Monday, those threats included a threat sent via email to an author, a threat sent via text to a religious leader, and a threat sent via Instagram to a television personality. From April 2022 to April 2024, Kantwill also sent at least seven additional threats to four public figures via Facebook, including a threat to an election official in another state on Feb. 9, when Kantwill wrote: “You are a degenerate c***. and you are now the target of our own investigation. Take note because liberal t***s like you get raped in alleys, by really big black guys that serve our cause. So, you t*** are going to get raped by at least 5 n*****s, and do nothing. You are the number 1 target, you degenerate t***.”

    “If you threaten someone with violence, we will take you at your word,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Law enforcement officers and members of my office will work together to hold accountable and federally prosecute individuals who threaten to injure or kill others.”

    Kantwill is charged with four counts of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Trial Attorney Aaron L. Jennen of PIN and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado.

    An information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    United States v. Pollard (Western District of Pennsylvania)

    According to the indictment, on Sept. 6, Pollard sent threatening text messages to Victim 1, a resident of the Western District of Pennsylvania. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1: (1) “I will KILL YOU IF YOU DON’T ANSWER ME!”; (2) “Your days are numbered, B****!”; and (3) “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”

    “Threats of violence have no place in our society,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This is no less true when those threats of violence are directed at individuals associated with our electoral process — in this case, someone seeking to organize poll watchers. This conduct will not be tolerated in our district, and we will continue to work with our partners at the FBI to prosecute these offenses with the full weight of the law.”

    Pollard was arrested on Monday and appeared in federal court in Philadelphia. He is charged with one count of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Pittsburgh Field Office is investigating the case.

    Trial Attorney Jacob R. Steiner of PIN and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    *****

    To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

    MIL Security OSI

  • MIL-OSI Security: Bank fraud scheme sends Georgia man to federal prison for four years

    Source: Office of United States Attorneys

    MISSOULA — A federal judge today sentenced a Georgia man to four years in prison, to be followed by five years of supervised release, for a scheme that involved recruiting homeless individuals to cash fraudulent checks at Montana financial institutions, U.S. Attorney Jesse Laslovich said.

    The defendant, Akia Demetrius Hills, 30, of Atlanta, Georgia, pleaded guilty in June to bank fraud and aggravated identity theft.

    U.S. District Judge Dana L. Christensen presided. The court also ordered $226,500.69 in restitution.

    In court documents, the government alleged that Hills and others stole mail and checks, and then fraudulently used the identities of various individuals to cash fraudulent checks throughout Montana financial institutions. On May 10, 2019, Hills and others instructed a man to enter numerous banks to attempt to cash a fraudulent check. Eventually, one bank accepted the fraudulent check, which totaled $6,734. Hills traveled across the country to defraud banks and attempted to use homeless individuals to cash fraudulent checks at banks.

    The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.

    XXX

    MIL Security OSI

  • MIL-OSI USA: Kennedy urges Blinken to secure Indo-Pacific naval base from Chinese threat after U.K. reaches Chagos Archipelago sovereignty deal

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)
    View Kennedy’s remarks here. 
    MADISONVILLE, La. – Sen. John Kennedy (R-La.) today released this statement and sent a letter to U.S. Secretary of State Antony Blinken raising national security concerns over China’s growing influence in the Indo-Pacific region, and specifically the threat to the Chagos Archipelago, where a key U.S. Navy support facility currently operates on the island of Diego Garcia. 
    Earlier this month, the United Kingdom reached a deal to transfer sovereignty of the Chagos Archipelago to Mauritius while allowing the U.S. Navy’s Diego Garcia facility to operate for the next 99 years. 
    “As you know, the Chagos Archipelago, specifically Diego Garcia, is of particular strategic significance to U.S. national security and our ability to maintain stability and project power in the region. The decision to give up the islands is dangerous and irresponsible, especially in the face of China’s increasing aggression,” Kennedy wrote. 
    “The presence of the U.S. military on Diego Garcia is a vital component of our defense posture in the Indo-Pacific. With the transfer of control to Mauritius, I am concerned about our ability to maintain the integrity of our operations in the region. Chinese ambitions, particularly their strategic interest in expanding influence over critical maritime chokepoints and naval installations, present a clear and present threat to regional stability. We are all but guaranteed to see an increase in nefarious Chinese behavior around Diego Garcia following what has become a familiar playbook—Chinese fishing boats conducting surveillance, and debt trap diplomacy to ensure Chinese control of critical infrastructure,” he continued.
    “Given the evolving geopolitical landscape, America must act proactively to secure this region from external influences that could jeopardize a free and open Indo-Pacific,” Kennedy concluded.
    Kennedy’s full statement is available here. 
    The full letter is available here. 

    MIL OSI USA News

  • MIL-OSI United Kingdom: New data laws unveiled to improve public services and boost UK economy by £10 billion

    Source: United Kingdom – Executive Government & Departments

    New Bill to unlock the secure and effective use of data for the public interest has been introduced into Parliament.

    • New government Bill will unlock the power of data to grow the economy and improve people’s lives
    • Measures will free up 1.5 million hours of police time and 140,000 NHS staff hours every year, potentially saving lives
    • The legislation will also support the creation of a national map of the UK’s underground infrastructure, reducing excavation accidents causing traffic jams and safety hazards on our streets

    A new Bill which will harness the enormous power of data to boost the UK economy by £10 billion, and free up millions of police and NHS staff hours has been introduced to Parliament today (Wednesday 23rd October).

    The Data Use and Access Bill will unlock the secure and effective use of data for the public interest, without adding pressures to the country’s finances. The measures will be central to delivering three of the five Missions to rebuild Britain, set out by the Prime Minister:

    • kickstarting economic growth
    • taking back our streets
    • and building an NHS fit for the future

    Some of its key measures include cutting down on bureaucracy for our police officers, so that they can focus on tackling crime rather than being bogged down by admin, freeing up 1.5 million hours of their time a year. It will also make patients’ data easily transferable across the NHS so that frontline staff can make better informed decisions for patients more quickly, freeing up 140,000 hours of NHS staff time every year, speeding up care and improving patients’ health outcomes.

    The better use of data under measures in the Bill will also simplify important tasks such as renting a flat and starting work with trusted ways to verify your identity online, or enabling electronic registration of births and deaths, so that people and businesses can get on with their lives without unnecessary admin.

    Vital safeguards will remain in place to track and monitor how personal data is used, giving peace of mind to patients and victims of crime. IT systems in the NHS operate to the highest standards of security and all organisations have governance arrangements in place to ensure the safe, legal storage and use of data. 

    Technology Secretary Peter Kyle said:

    Data is the DNA of modern life and quietly drives every aspect of our society and economy without us even noticing – from our NHS treatments and social interactions to our business and banking transactions.  

    It has the enormous potential to make our lives better, boosting our National Health Service, cutting costs when we shop, and saving us valuable time.

    With laws that help us to use data securely and effectively, this Bill will help us boost the UK’s economy, free up vital time for our front-line workers, and relieve people from unnecessary admin so that they can get on with their lives.

    The Bill, delivered by the Department for Science, Innovation, and Technology, has three core objectives: growing the economy, improving UK public services, and making people’s lives easier. The measures will be underpinned by a revamped Information Commissioner’s Office, the UK’s independent authority responsible for regulating data protection and privacy laws, with a new structure and powers of enforcement – ensuring people’s personal data will be protected to high standards.

    Improving public services

    The Bill will unlock the power of data to relieve front-line workers in the NHS and police forces across the country from bureaucracy and enable them to better serve the public.  

    Police officers across the country will benefit from measures that will remove unnecessary manual logging requirements whenever accessing personal data to work on a case, for example every time an officer needs to look up a suspect or person of interest on the police database, freeing up to 1.5 million hours of valuable police time for our officers, so that they can be on the streets fighting crime rather than being bogged down by admin. This will help save around £42.8 million in taxpayers’ money every year.

    The legislation will also ensure that healthcare information – like a patient’s pre-existing conditions, appointments and tests – can easily be accessed in real time across all NHS trusts, GP surgeries and ambulance services, no matter what IT system they are using. It will require IT suppliers for the health and care sector to ensure their systems meet common standards to enable data sharing across platforms. The measure will free up 140,000 hours in NHS staff time every year, providing quicker care for patients and potentially saving lives.

    Health and Social Care Secretary Wes Streeting said:

    The NHS is broken, but imagine its enormous potential if each part of the system communicated properly with each other.

    That starts with sharing vital medical records between healthcare providers, because it shouldn’t be the patient’s responsibility to join the dots for their doctor.

    How can a GP diagnose a problem without knowing about someone’s recent hospital surgery?

    This Bill and our Ten Year Health Plan will ensure important data flows safely and securely through the NHS, freeing up staff time and speeding up patient care.

    I know people worry about Big Brother, which is why data will only be shared to the most relevant staff and anybody using data must comply with strict security protocols.

    Minister for Crime, Policing and Fire, Dame Diana Johnson said:

    It is vital police officers are able to dedicate their time to protecting the public on the beat, not in the office.

    Freeing up this valuable resource will see more officers out on our streets, making a real difference in fighting and solving crime.

    As part of our mission to make streets safer, this government will bring back neighbourhood policing, ensuring thousands of additional police and community officers are out patrolling our towns and communities.

    Vin Diwakar, National Director of Transformation at NHS England, said:

    This Bill is a significant step in creating a more responsive and efficient healthcare system. As an NHS doctor myself, I know it is vital that NHS staff have quicker access to more accurate and comprehensive data, giving them more face-to-face time with patients who need it most.

    These changes will lay the foundations for patient information to flow safely, securely and seamlessly, which will improve clinical outcomes, make decision-making more informed and speed up the delivery of care. By simply using data more efficiently, we can save time and money, and create a modern, digital NHS that continues to improve care for patients.

    Growing the economy

    The Bill is expected to generate approximately £10 billion towards the UK economy across ten years by legislating on data sharing to generate a host of benefits for both consumers and businesses.   

    Delivering on a key government manifesto commitment, the Bill will create the right conditions to support the future of open banking and the growth of new smart data schemes, models which allow consumers and businesses who want to safely share information about them with regulated and authorised third parties, to generate personalised market comparisons and financial advice to cut costs.

    This will pave the way for the model to expand in sectors such as energy, which could give customers the ability to compare utility prices, find better deals, and reduce their energy use, as well as foster tech innovation and boost competition, which will ultimately grow the UK economy. This potential has already been demonstrated in open banking, where 82 firms alone have raised over £2 billion of private funding and created over 4,800 skilled jobs in the financial year 2022-2023.

    The Bill will also help reduce the risk of accidents on underground water and energy pipes and broadband cables, which currently amount to 60,000 every year and cause prolonged disruption of roadworks and access to key amenities like energy and broadband to homes.

    The National Underground Asset Register (NUAR) will be put on a statutory footing, mandating that owners of underground infrastructure, such as water companies or telecoms operators, register their assets on the NUAR, which is a complete map of underground pipes and cables.

    The use of the Register will mean that companies will know exactly where any underground asset is placed, reducing the risk of accidents on pipes and cables, making construction safer for workers and reducing the disruption – and hazards – caused by holes being dug up in the streets. This will generate approximately £400 million a year, boost construction and tackle accidental damage currently costing the economy £2.4 billion a year.

    Davey Stobbart, Water Networks Regional Manager, Northumbrian Water:

    Our field crews have found the way information is presented in NUAR to be more useful than anything they have seen or used before.  It has reduced the time taken for crews to understand what lies below the ground where they are about to dig.  

    In the field, we frequently find the precise point of excavation needs to be made not-quite where our office-based planners predicted and previously in this case the job would have been delayed whilst a new plan pack was prepared.  Now with NUAR, our crews are simply able to pan and zoom to that point instantly, seeing everything they would have seen on all those individual plans without the back-office cottage industry and without these delays.  In fact, they will be seeing more because we’re now able to easily access information from local authorities through NUAR too, such as street lighting, highways gulleys and tree preservation orders all in one place. 

    We have found NUAR to be a great additional tool in the toolbox to help us reduce the likelihood of high potential utility strikes.

    Making people’s lives easier

    The rules proposed in the Bill will make Britons’ day-to-day lives easier, by simplifying important tasks such as renting a flat, starting work, or registering births and deaths, so that people and businesses can get on with their lives rather than being bogged down by admin.

    The Bill will legislate on digital verification services, meaning companies who provide tools for verifying identities will be able to get certified against the government’s stringent trust framework of standards, and receive a ‘trust mark’ to use as a result. As well as increasing trust in the market, these efficiency gains will boost the UK economy by £4.3 billion over the next decade. 

    The trust mark will be a new logo to show digital verification services are approved by the new Office for Digital Identities and Attributes (OfDIA) within Department for Science, Innovation and Technology (DSIT).

    The Bill will help make sure digital verification services are inclusive, secure and privacy-preserving, and will make it easier for people to know which services they can trust.

    The Data Bill will pave the way towards modernising the registration of deaths in England and Wales from a paper-based system to an electronic birth and death register – in turn supporting people at one of the most challenging times in life. The new law will enable registrations, which are required by local authorities, to be carried out over the phone, removing the need for face-to-face registration while retaining that choice.

    Access to data for research into online safety

    The Bill will also boost the UK’s approach to tackling online harms through a power to create a researcher data access regime.

    This will support researchers in accessing data held by online platforms so they can conduct robust and independent research into online safety trends. The move will boost transparency and evidence on the scale of online harms and the measures which are effective in tackling them. 

    Further details on the specific measures can be found below:

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom