S. 315 would direct the Department of Transportation (DOT) to issue a rule requiring that AM broadcast stations be accessible in all passenger motor vehicles imported into, shipped within, or manufactured and sold within the United States. (Passenger motor vehicles are those designed to primarily carry their operator and up to 12 passengers; the definition does not include motorcycles.) The bill would require DOT to issue the rule within one year of enactment and report to the Congress at least every five years on the rule’s effects. The rule would sunset 10 years after enactment.
Additionally, S. 315 would require the Government Accountability Office (GAO) within 18 months of enactment to report on the role AM broadcasts in passenger vehicles play in disseminating emergency alerts through the Integrated Public Alert and Warning System.
Using information on the cost of issuing similar rules and reports, CBO estimates that implementing the bill would cost DOT and GAO a total of $1 million over the 2025-2030 period. Any spending would be subject to the availability of appropriated funds.
Additionally, S. 315 would authorize DOT to assess civil penalties on manufacturers that fail to comply with the new rule; such penalties are recorded as revenues. CBO estimates that any additional revenues collected would total less than $500,000 over the 2025-2035 period because the number of violations would probably be small.
The bill would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) on the manufacturers of passenger vehicles sold in the United States by requiring them to provide access to AM broadcast stations at no cost to the consumer. Prior to the regulation taking effect, manufacturers would be required to provide access to AM broadcast stations in unequipped vehicles at no cost if requested.
CBO expects this would primarily affect manufacturers of electric vehicles (EVs) who have removed, or announced plans to remove, standard AM radio equipment from their vehicles. The bill also would prohibit future phase-outs in other vehicles where the equipment is standard, such as gasoline and diesel passenger vehicles, while the rule is in effect.
Based on sales data for EVs, the legislation would require manufacturers to update radio equipment in about 2 to 2.5 million vehicles each year. Since most EVs are already equipped with FM radio, this would likely result in a small increase in production costs to update the media system software and modify other radio components. CBO estimates the total cost of the mandate would be several millions of dollars each year the requirement is in effect and would not exceed the annual threshold established in UMRA for private-sector mandates ($206 million in 2025, adjusted annually for inflation).
As a result of the legislation, some manufacturers may elect to make other modifications to the vehicle as well to improve audio quality. These modifications are not considered part of the costs to comply with the mandate because they would be made at the discretion of the manufacturer.
The bill also would preempt state and local laws by prohibiting those entities from enforcing any laws or regulations pertaining to the access of AM broadcast stations in passenger vehicles. CBO estimates that the preemption would not result in an increase in or loss of revenue to state or local governments and therefore would fall well below the threshold in UMRA for intergovernmental mandates ($103 million in 2025, adjusted annually for inflation).
The CBO staff contacts for this estimate are Willow Latham-Proença (for federal costs) and Brandon Lever (for mandates). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
Headline: NCDHHS Announces First Pediatric Flu Deaths of 2024-25 Season, Urges Vaccination for Children Ages 6 Months and Older
NCDHHS Announces First Pediatric Flu Deaths of 2024-25 Season, Urges Vaccination for Children Ages 6 Months and Older jwerner
The North Carolina Department of Health and Human Services is reporting two pediatric flu-related deaths, the first for the 2024-2025 flu season. One child in the Eastern region and another in the Central region of the state recently died due to complications of influenza. To protect both families’ privacy, additional information will not be released about these cases.
“We at the North Carolina Department of Health and Human Services extend our deepest sympathies to the families of these children,” said State Epidemiologist Zack Moore, M.D, MPH. “This is a sad reminder that seasonal influenza can be serious and, in some cases, even fatal. If you or your loved ones have not received the flu vaccine this season, please consider doing so to help protect your family and those around you.”
North Carolina has seen a rise in flu cases in recent weeks in combination with continued COVID-19 activity, and 171 adult flu-associated deaths have already been reported in North Carolina this season. NCDHHS tracks influenza, COVID-19, RSV and other respiratory viruses that may be circulating and publishes data weekly on the Respiratory Virus Surveillance Dashboard.
Flu vaccinations are especially important for children who are at higher risk of developing severe disease or complications, including those younger than 5 years old, especially under 2 years, or those with chronic health conditions like asthma, diabetes or a weakened immune system.
The CDC recommends all children ages 6 months and older receive a seasonal flu vaccine and an updated COVID-19 vaccine. Parents should also talk with their health care provider about options to protect infants from severe RSV disease, including vaccines for pregnant women during weeks 32 through 36 of pregnancy.
Early testing and treatment with an antiviral drug can also help prevent flu and COVID-19 infections from becoming more serious in children. Antiviral treatment works best if started soon after symptoms begin.
In addition to vaccines and treatment, everyone should take the following preventive actions to protect themselves and their loved ones against respiratory viruses:
Regularly wash your hands with soap and water or use an alcohol-based cleaner or sanitizer to prevent the spread of viruses to others
Avoid touching your eyes, nose and mouth
Clean and disinfect frequently touched surfaces and objects that may be contaminated
Cover coughs and sneezes with a tissue and then discard the tissue promptly
Stay home when sick, except to seek medical care or testing, and take steps to avoid spreading infection to others in your home, including:
Staying in a separate room from other household members, if possible
Using a separate bathroom, if possible
Avoiding contact with other members of the household and pets
Not sharing personal household items, like cups, towels and utensils
Wearing a mask when around other people
For more information on respiratory viruses, including how to access vaccines, testing and treatment in your community, visit vaccines.gov/en, flu.ncdhhs.gov or covid.19.ncdhhs.gov.
El Departamento de Salud y Servicios Humanos de Carolina del Norte (NCDHHS, por sus siglas en inglés) informa sobre dos muertes pediátricas relacionadas con la influenza (gripe), la primera de la temporada de 2024-2025. Un niño en la región oriental y otro en la región central del estado murieron recientemente debido a complicaciones de la influenza. Para proteger la privacidad de ambas familias, no se divulgará información adicional sobre estos casos.
“En el Departamento de Salud y Servicios Humanos de Carolina del Norte expresamos nuestro más sincero pésame a las familias de estos niños”, dijo el epidemiólogo estatal Zack Moore, MD, MPH. “Este es un triste recordatorio de que la influenza estacional (gripe estacional) puede ser grave y, en algunos casos, incluso mortal. Si usted o sus seres queridos no han recibido la vacuna contra la influenza esta temporada, considere hacerlo para ayudar a proteger a su familia y a quienes lo rodean”.
Carolina del Norte ha visto un aumento en los casos de gripe en las últimas semanas en combinación con la continua actividad de COVID-19, y ya se han reportado 171 muertes asociadas a la gripe en adultos en Carolina del Norte esta temporada. NCDHHS rastrea la influenza, COVID-19, virus sincitial respiratorio (VSR) y otros virus respiratorios que pueden estar circulando y publica datos semanalmente en elTablero de control de vigilancia de virus respiratorios.
Las vacunas contra la gripe son especialmente importantes para los niños que corren un mayor riesgo de desarrollar enfermedades o complicaciones graves, incluidos los menores de 5 años, especialmente los menores de 2 años, o aquellos con afecciones crónicas de salud como asma, diabetes o un sistema inmunitario debilitado.
Los CDC recomiendan que todos los niños de 6 meses o más reciban una vacuna contra la gripe estacional y una vacuna actualizada contra COVID-19. Los padres también deben hablar con su proveedor de atención médica sobre las opciones para proteger a los bebés de la enfermedad grave por VSR, incluidas las vacunas para mujeres embarazadas durante las semanas 32 a 36 del embarazo.
Las pruebas y el tratamiento tempranos con un medicamento antiviral también pueden ayudar a prevenir que la gripe y las infecciones por COVID-19 se vuelvan más graves en los niños. El tratamiento antiviral funciona mejor si se inicia poco después de que comiencen los síntomas.
Además de las vacunas y el tratamiento, todos deben tomar las siguientes medidas preventivas para protegerse a sí mismos y a sus seres queridos contra los virus respiratorios:
Lávese las manos regularmente con agua y jabón o use un limpiador o desinfectante a base de alcohol para evitar la propagación de virus a otras personas
Evite tocarse los ojos, la nariz y la boca
Limpie y desinfecte las superficies y los objetos que podrían estar contaminados.
Cubra la tos y los estornudos con un pañuelo de papel y luego deseche el pañuelo de papel rápidamente
Quédese en casa cuando esté enfermo, excepto para buscar atención médica o pruebas, y tome medidas para evitar transmitir la infección a otras personas en su hogar, como:
Alojarse en una habitación separada de otros miembros del hogar, si es posible
Usar un baño separado, si es posible
Evitar el contacto con otros miembros del hogar y mascotas
No compartir artículos personales de uso doméstico, como tazas, toallas y utensilios
Usar una mascarilla cuando esté cerca de otras personas
Para obtener más información sobre los virus respiratorios, incluido cómo acceder a las vacunas, las pruebas y el tratamiento en su comunidad, visite vaccines.gov/en,flu.ncdhhs.govocovid.19.ncdhhs.gov.
SAN JUAN, Puerto Rico, Feb. 12, 2025 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced it has entered into an agreement for up to $20 million and closed on the initial tranche of $16.5 Million in debt financing with The Lind Partners, a New York based institutional fund manager (“Lind”). Details of the agreement include:
Debt Financing convertible at $16.15 share price
Initial Tranche proceeds of $15 million
1 million warrants exercisable at $15.00 per share non cashless
Additionally, Red Cat has applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital (OSC). OSC implements strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security. They have identified 14 critical technology areas vital to maintaining the United States’ national security. These have been grouped into three categories as found in the 2023 National Defense Science and Technology Strategy.
Seed Areas of Emerging Opportunity
Effective Adoption Areas
Defense-Specific Areas
The investment is expected to provide Red Cat with the working capital needed to scale up production and the ongoing development of its Arachnid Family of Systems, which includes Black Widow™, Edge 130, and a new line of FANG™ First-Person View (FPV) drones. The goal of the Family of Systems is to meet the needs of the U.S. Department of Defense and NATO Allies for drone systems that are low-cost, portable, field repairable, and recoverable.
“The recent financing will allow us to expedite and expand the Edge 130 factory and build-out and ramp up mass production of the Black Widow,” said Jeff Thompson. Red Cat CEO. “As a company focused on technology that advances the Department of Defense capabilities, we are a strong candidate for the Office of Strategic Capital’s low-cost debt program. The potential total financing of $93 million is the least dilutive option for our shareholders.”
About Red Cat, Inc. Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry’s first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.
About The Lind Partners The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind’s funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 150 direct investments totaling over US$1.5 Billion in transaction value, Lind’s funds have been flexible and supportive capital partners to investee companies since 2011.
Forward-Looking Statements This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.
To address this, retrofit programs that improve home energy efficiency have become one of Canada’s main strategies to cut emissions in the housing sector. These programs focus on upgrades like air sealing, enhanced insulation, upgrading heating and cooling systems and installing energy-efficient windows and doors.
But do these programs deliver on their promises of lower bills and reduced carbon emissions? Our recent study, forthcoming in Energy Economics, examined the outcomes of the federal ecoENERGY home retrofit program, a predecessor to the Greener Homes Initiative.
Our findings shed light on where the program succeeded, where it fell short and what this all means for Canadian families and policymakers moving forward.
Real-world energy savings
Our study analyzed a decade of monthly electricity and natural gas consumption data from Medicine Hat, Alta., where residents participated in the federal ecoENERGY retrofit program that was in place between 2008 to 2012.
We found that households undertaking comprehensive envelope retrofits — which includes insulation and air sealing — reduced their total energy use by an average of 25 per cent per household. Natural gas usage dropped by 35 per cent on average for these same households, and these savings lasted for at least 10 years after the retrofit.
However, our study found that homes achieved only about 60 per cent of the predicted savings projected in pre-retrofit estimates. While measures like air sealing and attic and wall insulation were relatively effective, other upgrades, such as basement insulation and energy-efficient windows, showed zero effect on energy use.
This gap between projected and actual savings suggests that the estimates shown to households during pre-retrofit audits might be overestimating the benefits. This could leave families with lower-than-expected savings on their energy bills after making significant financial investments. These findings align with similar studies in the United States and Europe, where realized energy savings hover at around 60 per cent of pre-retrofit projections.
Despite this gap, there are promising opportunities for low-cost, high-return investments. Our research suggests that relatively cheap measures like air sealing generate high returns. Adopting electric heat pumps and fuel switching also show promise for delivering both energy savings and reductions in greenhouse gas emissions.
The need for broader participation
Our study also revealed significant gaps in program access and the distribution of benefits. Although the ecoENERGY program was available to all Canadian households, participation was highest among families of mid-valued houses.
Participation among families in lower-valued houses was disappointingly low: about four per cent of the families in lowest-valued houses took part, even though they stood to benefit the most from reduced energy bills. Homes in our study saw bill savings ranging from eight to 17 per cent, based on a comparison of their actual consumption before and after the retrofit. The highest savings were observed in homes with assessed values of $100,000.
Middle-valued homes with the highest retrofit program participant rate tended to save the least amount of money; this group had average gas bill reductions of approximately 10.5 per cent.
The maximum amount that could be claimed under the ecoENERGY program was $5,000, yet the average rebate received was $1,100. This disparity not only limited the program’s potential to reduce emissions on a large scale, but also means Canada’s current approach to energy retrofits may be missing an opportunity to improve energy affordability for those who need it most.
Room for improvement
Energy-saving retrofits have significant potential, but current prediction models often overestimate the savings homeowners can achieve. Improving these models could allow homeowners to make better-informed choices, leading to greater efficiency and improved household welfare.
Upfront costs also remain a significant barrier, particularly for lower-income families. Many cannot afford the upfront expenses associated with retrofitting their homes. Expanded financial support, such as rebates or no-interest loans, may provide much-needed support necessary to allow more households to participate, and more research is needed to evaluate how best to incentivize household participation.
Another major challenge is a lack of awareness. Many Canadians are unaware of the benefits of deep retrofits. Public awareness campaigns, possibly delivered in collaboration with community organizations, may also help educate homeowners on the long-term value of retrofits and make the process more accessible and appealing.
Our project is the first in Canada to use detailed household-level data to assess energy savings from retrofits in houses of various values. We were able to achieve this through partnerships between academia, utilities and the federal government. Such collaborations are crucial for advancing research that informs effective policies and programs.
As Canada advances toward net-zero emissions by 2050, energy-efficient housing should remain central to its climate strategy. Achieving sustainable progress in this area will require retrofit programs that deliver on their promises by enhancing household welfare, addressing energy affordability and ensuring continued public support.
Maya Papineau receives funding from Social Sciences and Humanities Research Council and the National Science and Engineering Research Council and the National Research Council of Canada.
Nicholas Rivers receives funding from the Social Sciences and Humanities Research Council and the National Science and Engineering Research Council. He is affiliated with the Canadian Climate Institute.
Kareman Yassin 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.
United States Vice President JD Vance made headlines this week by refusing to sign a declaration at a global summit in Paris on artificial intelligence.
In his first appearance on the world stage, Vance made clear that the U.S. wouldn’t be playing ball. The Donald Trump administration believes that “excessive regulation of the AI sector could kill a transformative industry just as it’s taking off,” he said. “We’ll make every effort to encourage pro-growth AI policies.”
But upon a closer look, events this week point to signs that just the opposite may be unfolding. A host of nations took notable steps towards address growing safety and environmental concerns about AI, indicating that a regulatory tipping point has been reached.
Prime Minister Justin Trudeau delivered the keynote address at the AI Action Summit in Paris, France.
The Paris communiqué calls for an “inclusive approach” to AI, seeking to “narrow inequalities” in AI capabilities among countries. It encourages “avoiding market concentration” and affirms the need for openness and transparency in building and sharing technology and expertise.
The document is not binding. It does little more than tout principles, or affirm a collective sentiment among the parties. One of these — perhaps the most important — is to keep talking, meeting and working together on the common concerns that AI raises.
While nothing is binding on the parties, the goals are notably specific. They include coming up with standards for measuring AI’s environmental impact and more effective ways for companies to report on the impact. Parties also aim to “optimize algorithms to reduce computational complexity and minimize data usage.”
Even if most of this turns out to be merely aspirational, it’s important that the coalition offers a platform for collaboration on these initiatives. At the very least, it signals a likelihood that sustainability will be at the forefront of debate about AI moving forward.
The convention commits parties to pass domestic laws on AI that deal with privacy, bias and discrimination, safety, transparency and environmental sustainability.
The treaty has been criticized for containing no more than “broad affirmations” and imposing few clear obligations. But it does show that countries are committed to passing law to ensure that AI development unfolds within boundaries — and they’re eager to see more countries do the same.
If Canada were to ratify the treaty, Parliament would likely revive Bill C-27, which contained the AI and Data Act.
The act aimed to do much of what Canada agrees to do under the convention: impose greater oversight of the development and use of AI. This includes transparency and disclosure requirements on AI companies, and stiff penalties for failure to comply.
What does this really mean?
While the U.S. signed the convention on AI and human rights, democracy and rule of law in the fall of 2024, it likely won’t be implemented by a Republican Congress. The same might happen in Canada under a Conservative government led by Pierre Poilievre. He could also decide not to fulfil commitments made under other agreements about AI.
The Trump administration may have ushered in a period of more lax tech regulation in the U.S., and Silicon Valley is indeed a key player in tech — especially AI. But it’s a wide world, with many other important players in this space, including China, Europe and Canada.
The events in Paris have revealed a strong interest among nations around the globe to regulate AI, and specifically to foster ideas about inclusion and sustainability. If the Paris summit was any indication, the hope of sheltering AI from effective regulation won’t last long.
Robert Diab 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.
Source: Africa Press Organisation – English (2) – Report:
BRAZZAVILLE, Congo (Republic of the), February 12, 2025/APO Group/ —
As part of the Republic of Congo’s strategy to double its oil production, the government is encouraging independent operators to revitalize mature fields and boost output. Companies like AMMAT – participating as a Platinum Sponsor at the inaugural Congo Energy & Investment Forum (CEIF) 2025 – are playing a key role in this effort. In an in-depth conversation with Energy Capital & Power (https://EnergyCapitalPower.com), AMMAT CEO Massimiliano Mignacca outlines the company’s approach to technological innovations, a focus on sustainability and optimizing oil and gas operations in mature fields in Congo.
Can you provide an overview of AMMAT’s activities in Congo?
When we began exploring opportunities in 2021, we focused on West Africa and found promising prospects in the Republic of Congo. The Congolese authorities recognized our potential and supported our asset management approach. By the end of 2022, we had officially established our presence in the country. In March 2023, we secured exploration and production permits for the Zatchi and Loango fields – mature assets previously operated by a joint venture between Eni and Total until 2021 – followed by a transition period under SNPC [Congo’s national oil company Société nationale des pétroles du Congo]. We commenced operations in July 2023, applying our proven asset management strategies from Italy to optimize production in Congo.
How does your partnership with SNPC contribute to Congo’s plan to double oil production?
We operate under a joint venture framework, where SNPC plays a key role alongside two Congolese companies that collectively hold a 25% stake. Managing mature fields presents significant challenges, requiring close coordination with SNPC at all levels. We conduct regular meetings to align on work plans, performance, and projects that enhance safety, boost production and improve asset management. Our close collaboration with SNPC’s leadership ensures that our initiatives contribute directly to Congo’s production growth targets.
AMMAT employs a data-driven approach to reservoir management. What technologies and methodologies are you using?
One major initiative is the modernization of the sea pipeline linking our Loango treatment platform to peripheral platforms. We are also implementing an environmental risk mitigation program in partnership with other operators. Additionally, we have launched a campaign to replace outdated pumps and reactivate wells, utilizing advanced workover techniques such as ESP pump upgrades to enhance production. In 2024, we successfully revamped three platforms in Loango and are currently rehabilitating two more in the Zatchi field. We remain committed to integrating cutting-edge technology into our operations to maximize efficiency and sustainability.
What sustainable practices does AMMAT implement in its operations?
Sustainability is at the core of our asset management approach. The [oil and gas] sector has been central to Congo’s economy since the 1970s, producing a strong engineering workforce. Recognizing this, we have initiated partnerships with local universities and currently host three graduates in our maintenance, IT and HSE [health, safety and environment] divisions. This initiative strengthens local talent and ensures the long-term sustainability of our operations.
AMMAT will be a Platinum Sponsor at the Congo Energy & Investment Forum (CEIF) in March 2025. What do you aim to achieve at this event?
Our primary objective [at CEIF 2025] is to showcase AMMAT as a reliable and committed partner in Congo. The country entrusted us with two crucial production fields, and we want to demonstrate how our asset management expertise adds value. Additionally, we are looking to expand our upstream presence in Congo and other markets. Being a Platinum Sponsor allows us to make a strong impact, emphasizing our commitment to compliance with local regulations, collaboration and sustainable operations. This event provides an excellent platform to engage with stakeholders and reinforce our role in driving growth in Congo’s oil and gas industry.
Source: United States Senator for Washington State Patty Murray
Murray calls for Budget hearing with Elon Musk
Murray: “Republicans are going down this partisan path because they know Democrats are not going to join them in throwing Medicaid, nutrition assistance, and veterans’ benefits into the wood chipper so they can throw more tax cuts at billionaires.”
Murray: “There is a serious, bipartisan path forward for our country–but it is one where Congress works together to avoid a shutdown, stops the de facto shutdown that is already happening, and reasserts its authority to protect the funding our communities need. Unfortunately, that is a far cry from the path Republicans are setting out on today with this pro-billionaire, anti-middle-class budget resolution.”
***VIDEO HERE***
Washington, D.C. — Today, at the Senate Budget Committee’s mark up of Senate Republicans’ budget resolution, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee and a senior member and former Chair of the Senate Budget Committee, underscored in opening comments that the resolution Senate Republicans have put forth is a roadmap to devastating cuts to programs families count on every day—from Medicaid to SNAP to veterans benefits—so that Republicans can later pass more tax breaks for the ultra-rich.
Senator Murray underscored that right now Congress’ focus should be on addressing the fast-approaching March 14 funding deadline and addressing President Trump and Elon Musk’s sweeping, illegal funding freeze—not a partisan measure to gut investments in working people. She also called for Elon Musk to come before the Committee to discuss his already in-motion efforts to decimate programs people count on.
Senator Murray’s remarks, as delivered, are below:
“I would like to remind my colleagues that we are just a month away from a deadline to pass bills to fund our government and as we approach that deadline, the entire world is watching as President Trump and Elon Musk effectively shut the government downpiece by piece, bit by bit–whatever parts Elon doesn’t like.
“I want to repeat that: we are already in a partial shutdown. Trump and Musk are shuttering entire agencies, locking workers out of their devices and out of their buildings, and demanding the work of the American people come to a screeching halt.
“They are illegally blocking hundreds of billions in funding we all secured for the people we represent back home–putting good-paying jobs on the chopping block, creating incredible uncertainty for businesses, and choking off key funds for infrastructure and energy projects, anda lot more.
“Remember, this is the richest man on earth—with deep ties to China and a direct line to Putin—unilaterally, clandestinely, and illegally deciding if our constituents will see the taxpayer dollars they are owed.
“What they are doing is not just illegal–it is devastating for working people in every single zip code.
“Right now, we need to be speaking out with a unified voice to ensure that when Congress passes a bill, that law is followed. And we need to focus on negotiating serious funding bills on a bipartisan basis ahead of the fast-approaching March 14 deadline. That is what I am trying to do right now.
“But–and this is really critical–we’ve got to know that once those bills become law, Trump will actually follow them.
“We cannot just reach an agreement, pass a bill, and then stand by while President Trump rips our laws in half.
“There is a serious, bipartisan path forward for our country–but it is one where Congress works together to avoid a shutdown, stops the de facto shutdown that is already happening, and reasserts its authority to protect the funding that our communities need.
“Unfortunately, that is a far cry from the path Republicans are setting out on today with this pro-billionaire, anti-middle-class budget resolution.
“Let’s be clear: the Chairman’s mark doesn’t just accept, but doubles down on what Trump and Musk are doing—adding both another distraction from the urgent bipartisan work that needs to happen to fund our government and a roadmap for partisan policies and absolutely painful cuts to programs families count on each and every day.
“Republicans are going down this partisan path because they know Democrats are not going to join them in throwing Medicaid, nutrition assistance, and veterans benefits into the wood chopper so they can throw more tax cuts at billionaires.
“Make no mistake: this budget resolution is the DOGE resolution, as it assumes the staggering amount of $1 trillion in unspecified cuts in 2025 alone and $9 trillion over 10 years.
“Where do we think those sort of dramatic cuts are going to come from? It’s going to come out of SNAP benefits that keep kids from going hungry. It is going to come out of public schools and community health centers. It is going to come out of life-saving medical research.
“Make no mistake: if you are cutting that deeply, that painfully, you are going to start cutting things like veteran’s health care, assistance to our farmers, Medicare, and Medicaid, which, for the information of all Senators, 30 million children rely on.
“There is just no other way to make these numbers work–especially when we know that this is just step one inthe plan and step two is more tax breaks for billionaires and massive corporations.
“So, first they are handing Elon Musk a chainsaw to cut programs families rely on with no accountability and then they are rewarding him with enormous tax breaks.
“That is completely unacceptable to me. We should not be cutting health care for working families to deliver massive tax breaks for the wealthiest billionaires.
“So I urge all of my colleagues: hit the breaks, and not just on this devastating, partisan budget resolution. Hit the breaks on what President Trump and Elon Musk are doing right now. Let’s come together, and work on a serious, bipartisan bill to fund the government—and get investments that are sorely needed out to the folks we represent. And let’s come together to demand real accountability for the shutdown they are conducting right now.
“Instead of a markup to hand Elon Musk more power, we need a hearing to hold him accountable. This billionaire is operating completely in the dark, hoping his lies about corruption are loud enough to drown out any calls for truth.
“When he tweeted out the names of government employees months ago, that was ‘accountability’ – but when reporters name people gaining illegal access to Treasury’s payment system, that is a ‘crime?’
“He gets to look at all of our most sensitive data–but no one gets to look at what he is actually doing? That cannot be the standard.
“So when are we going to have a hearing with the people who are illegally firing workers who protect families from scams, illegally cancelling grants to community health centers, illegally freezing funds to rebuild your local highway, illegally shuttering entire agencies that are keeping our country safe, and now this plan is outsourcing $1 trillion in cuts for this year alone?
“That is not rhetorical: I hope the Chair will answer. When will we have a hearing with Elon Musk? He seems to be central to your budget plan–but no one, at least no one on our side of the aisle, has heard from him.No one.
“And he is making big decisions about our country’s spending, and he is not just doing it without Congress–he is doing it in spite of what Congress has decided.
“We should not be giving up our power of the purse. We should be getting answers. If Elon Musk really has nothing to hide, then he should try to leave his safe place on X and Trump rallies and come before this Committee, Mr. Chairman, to be accountable to the public.”
CORAL GABLES, Fla., Feb. 12, 2025 (GLOBE NEWSWIRE) — MarketGrader, a leader in smart beta investment solutions, today announced the vast majority of the firm’s MarketGrader Indexes beat their passive equity benchmarks and actively managed peers1 in 2024. The outperformance of MarketGrader’s Indexes relative to both their stock market benchmarks and active peers was even more pronounced over the recent three- and five-year windows.
“2024 was another great year for MarketGrader Indexes when compared to both widely-followed passive benchmarks and peer groups of active managers. Our strategies were again rewarded for identifying consistent creators of economic value and unemotionally selling those companies whose fundamentals no longer held up. The level of outperformance persistence that MarketGrader Indexes demonstrate over multi-year windows is rare in the world of asset management and speaks to the efficacy of our proprietary growth at a reasonable price (GARP) + Quality methodology,” said Carlos Diez, Founder and CEO of MarketGrader.
Some statistical highlights of MarketGrader’s fundamentals-based stock selection indexes relative to market capitalization weighted indexes include:
68% of MarketGrader Indexes outperformed their benchmarks across global markets in 2024.
18 out of 19 (95%) MarketGrader Core U.S. Indexes outpaced their benchmark in 2024, and over the recent three-, five- and ten-year windows.
Nine out of every 10 MarketGrader Indexes lead their bogey on an annualized basis over the last decade. In contrast, over the recent 10-year period, 96% of Large-Cap Core active funds underperformed the S&P 500, while 90% of All Domestic active funds, 81% of active International funds and 86% of active Emerging Markets funds underperformed their benchmarks, according to SPIVA.
When comparing MarketGrader Indexes to active managers, some notable highlights include:
80% of MarketGrader Indexes ranked in the top half of their peer group in 2024 (77% of U.S. indexes and 83% of international indexes).
92% of MarketGrader Indexes ranked in the top half of their peer group over five years (89% of domestic and 95% international indexes).
Top decile: Over five years, 73% of MarketGrader Indexes ranked in the top 10% of their active manager peer group (55% of U.S. indexes and 81% of international indexes).
The market cap weighted version of the Barron’s 400 Index (B400X), live since 2007, ranked in the top 6% among 1,911 active managers in Morningstar’s All Cap U.S. Equity Category in 2024, and top 5% over five years.
“It’s been over twenty years since we launched our first index using our fundamentals-based GARP + Quality framework to picking index constituents. These results show that our unique rules-based approach to indexing transcends geographies, market cycles, interest rate regimes, and stock market sector, size and style segments. Index investors can be stock selectors, harnessing the underlying market return (beta) while adding excess returns (alpha) by systematically choosing only the best companies. The persistence of alpha in our indexes makes them an attractive alternative to actively managed funds, for whom consistent outperformance is famously elusive,” continued Diez.
MarketGrader currently publishes 89 indexes, 47 across domestic U.S. equities and 42 on foreign / ex-U.S. stocks. The indexes cover regions, countries, sectors, styles and income. All MarketGrader’s indexes are fully replicable, transparent and rules-based with screens for constituent liquidity to ensure tradability. Further index product development plans are in the works, including an expansion of the company’s U.S. sectors lineup, new Middle East-focused indexes and single country indexes for Asia Pacific and Europe.
Asset managers, wealth managers, institutions and investment platforms can license MarketGrader’s indexes for the basis of ETFs, mutual funds, annuities, model portfolios or more custom delivery like direct indexing. For more information on the index library and for index licensing opportunities, please write the MarketGrader team.
ABOUT MARKETGRADER MarketGrader.com Corp. (“MarketGrader”) founded in 1999, is a Miami-based provider of global equity research and index-based solutions. The company’s mission is to become the leading provider of next generation Smart Beta investment solutions, helping investors achieve superior risk-adjusted returns by identifying and owning the highest quality companies in the world. MarketGrader’s proprietary “GARP + Quality” methodology is used to screen over 41,000 publicly traded companies across 92 countries, representing over $127 trillion in market capitalization. Over 100 Smart Beta indexes have been created using MarketGrader’s methodology. MarketGrader delivers smart beta solutions in three ways; 1) licensing its indexes to investment management firms; 2) offering smart beta portfolio solutions to wealth managers; and 3) providing access to their proprietary GARP + Quality ratings to retail and institutional clients. Institutional clients include Dow Jones, SS&C ALPS, VanEck and BMO. In 2007, MarketGrader created the Barron’s 400 Index in partnership with Barron’s, America’s premier financial magazine. Follow MarketGrader on X @MarketGrader and connect on LinkedIn. For more information, please visit www.marketgrader.com.
_______________ 1 Performance for all actively managed funds was gross of fees, providing a fair comparison against MarketGrader Indexes, which do not have management fees or trading costs. Source: Morningstar Direct.
Media Contact Paul Damon for MarketGrader +1 802.999.5526 paul@keramas.net
Check against delivery.
1 Introduction
Ladies and gentlemen, It’s a pleasure and an honour for me to speak here before such a distinguished audience.
Remember to look up at the stars and not down at your feet. This was advice from Stephen Hawking, the famous English physicist and author of numerous books on the cosmos. And who would want to contradict the genius?
So today I invite you to join me on a stargazing tour. If you don’t have a telescope with you, no worries. However, I should add a disclaimer here: When a couple look up at the stars, things could get romantic. When astronomers observe the stars, impressive images can come into view. When economists talk about stars, it usually gets complicated. Now you know what you’re getting into!
I’m sure you’ve already guessed what topic I have in mind: the natural rate of interest – also known as r-star. It is a concept that economists have been grappling with for more than 125 years.[1] And it has perhaps never received more attention than in the current era of monetary policy.
From a central banker’s perspective, I would like to discuss what role r-star can and should play in the monetary policy universe. I will structure my lecture around four key questions: What is r-star and why is it of interest for monetary policy? How have estimates for r-star evolved over the past decades? What drives uncertainty about current estimates and the future evolution of r-star? What conclusions should monetary policy draw from this?
2 Definition of r-star and use for monetary policy
Let’s start with the definition. The natural rate is the real interest rate that would prevail if the economy were operating at its potential and prices were stable. R-star is commonly thought to be driven by real forces that structurally affect the balance between saving and investment. Think of technological progress and demographics, for example. This also means that r-star should, by definition, be independent of monetary policy. The latter follows from the widely held belief that monetary policy can affect real variables only temporarily, but is neutral in the long term.
At first glance, the natural rate could be a guiding star for the conduct of monetary policy. If a central bank sets its policy rates so that the real interest rate is above r-star, monetary policy is restrictive or “tight”. Consequently, economic activity slows and the inflation rate should decrease. If the real rate is below r-star, monetary policy is expansionary or “loose”. It provides incentives for consumers to purchase more and for enterprises to step up investment and output. Hence, this should result in more economic activity and a higher inflation rate.
However, the idea of the natural rate serving as a guiding star for monetary policy comes with profound challenges. Perhaps the name r-star evokes associations with astronomy and navigation. But these would be misleading. If r-star were like a star in the sky, it would be relatively easy to locate. Stars emit light and are therefore observable.
The natural rate is a theoretical concept. It is based on a hypothetical state of the world. That means the natural rate is, by nature, unobservable. It can only be estimated. For example, models use assumptions about the relationship between measurable variables and r-star. In this respect, the natural rate is not so much like a star shining brightly in the sky. It is more a case of dark matter. As it is invisible, astronomers infer dark matter indirectly by observing its gravitational effects.
If something is hard to find, it only spurs researchers to look even harder – whether they are astronomers or economists. Therefore, we can draw on a variety of estimation methods for the evolution of the natural rate.
3 Estimates for r-star over time
Since around the 1980s various estimates of different types have been pointing to a downward trend for r-star over several decades and across many advanced economies.[2] In the wake of the global financial crisis, the estimates slumped to exceptionally low levels.[3] This development was roughly in line with the observed trajectory of actual real interest rates of short- and long-term government bonds during this period. And no wonder: In the long run, both should be driven by the same fundamental forces affecting the balance between saving and investment.
So the question is this: what has lifted saving and depressed investment? A simple answer would be: in the long term, the most important driver is potential growth. But this finding is not very enlightening. Potential growth is also not observable. It is determined by underlying forces such as demographics and technological progress. This is where we need to look for the causes.
Indeed, according to a number of recent studies, waning productivity growth and population ageing were the key factors in pushing saving up and investment down.[4] Lower productivity reduces the return on investment, so people are less willing to invest. As they expect to live longer, they are more willing to save.
In addition, inequality, risk aversion and fiscal policy could be other factors. For example, growing inequality raises saving, as richer households save a larger share of their income. Similarly, higher risk aversion leads to higher saving, especially in safe assets, while lowering investment.[5]
Many of the estimates for r-star reached their lowest point in the pandemic years 2020 and 2021. After that, there were signs of a partial reversal. A recent analysis by Eurosystem economists across a suite of models and data up to the end of 2024 suggests that estimates of r-star range from − ½ % to ½ % in real terms. In nominal terms, they find that it ranges between 1¾ % and 2¼ %.[6]
It is clear that these ranges depend on the estimating approaches considered. Taking into account an even wider array of measures, Bundesbank staff calculations using data up to the end of 2024 reveal a range of 1.8 % to 2.5 %.[7] And the ECB found for the third quarter of 2024: When three estimates derived from versions of the Holston-Laubach-Williams model are factored in, the range of real r-star is − ½ % to 1 % and the nominal range is 1¾ % to 3 %.
All in all, the results suggest that the range of r-star estimates most likely increased by about one percentage point from their lows. The latest estimates by economists from the Bank for International Settlements come to similar findings.[8]
The reasons for the increase after the pandemic are not yet fully clear. For example, high fiscal spending with rising public debt levels could play a role. Or higher needs for capital, as companies make their value chains more resilient by duplicating structures and increasing stock levels.
4 Uncertainties around r-star estimates
Stargazing tours in economics are a journey into the uncertain. This is also and especially true for r-star. Estimates of the natural rate of interest are subject to major uncertainties, shaped by three M’s: megatrends, methodology and monetary policy.
First, we are facing a number of megatrends. Think of climate change, ageing societies, digitalisation, and the risks of de-globalisation and increasing geopolitical divisions. The effects of these megatrends on natural rates are difficult to gauge and may change over time.
On the one hand, they could contribute to a higher natural rate. Here are some examples: The widespread uptake of artificial intelligence could boost productivity growth. The green transition could lead to higher investment. Fiscal deficits could persist at an elevated level due to higher defence spending given geopolitical tensions. The entry of the baby boomer generation into retirement could reduce savings.
On the other hand, life expectancy is predicted to keep rising; the high hopes for the productivity-enhancing effect of AI could turn out to be too optimistic; and given high public debt levels, fiscal space for additional spending is limited in many countries. Overall, it is virtually impossible to predict which developments will prevail in affecting r-star.
The second factor of uncertainty is methodology. The methods used to define and estimate r-star differ in important ways, especially in terms of time and risk.
Ricardo Reis demonstrates this impressively in a recent paper.[9] He presents four different “r-stars”. They are based on four different conceptual approaches. And they developed quite differently between 1995 and 2019.
One major difference is the risk dimension. Knut Wicksell’s original definition of the natural rate was the rate of return on physical capital in equilibrium.[10] The rate of return on physical capital is the return on investment in the real economy. And this rate is very much associated with risks.
However, this perspective has been lost in virtually all of the model approaches. Generally, they use rather secure government bond yields as a starting point. Again, with regard to the real economy, a risky return on capital would be a more appropriate yardstick. When we look at measures for the return on private capital, we see a strong contrast with risk-free rates. Returns on private capital have remained broadly stable over the last decades in the US,[11] Germany[12] and the euro area as a whole.[13]
From these observations, Ricardo Reis draws the following conclusion: focusing exclusively on the return on government bonds as the measure of r-star, while neglecting the return on private capital, leads to the wrong policy advice.[14]
Another case in point is the time horizon that is considered. Commonly cited estimates seek to assess the real rate that prevails in the longer run, when all shocks have dissipated. Most of these estimates are highly imprecise. Many methods simply project the current or the historical level of real rates into the future. This may confound permanent trends with cyclical factors, which may not be representative for the future. As a result, such methods could miss important turning points in real rate trends.
Other approaches characterise a short-run real rate in a hypothetical world without frictions. While interesting, this concept is of limited value for actual policymaking in the real world. Methods based on a short-term equilibrium tend to produce more volatile estimates of r-star.
There is a third reason for caution: monetary policy itself may play a role in shaping the natural rate or its estimates. A number of studies challenge the view that money is neutral in the long run.[15]
There are different channels through which monetary policy could have lasting effects on real interest rates. Prolonged tight monetary policy, for example, may lower investment, innovation and productivity growth.[16] By contrast, persistent monetary easing could fuel financial imbalances and contribute to zombification.[17]
Moreover, recent research suggests that central bank announcements provide guidance about the trend in real rates. For instance, a narrow window around Fed meetings captures most of the trend decline in US real long-term yields since 1980.[18] This could mean: when central banks look for r-star in financial market prices, they might actually be looking in a mirror.[19] Feedback loops between monetary policy and markets could unduly reinforce their perceptions about r-star. And shifts in perceived r-star could affect actual r-star as it influences saving and investment decisions.
5 Conclusions for monetary policy
Against the backdrop of these major uncertainties, the final key question of my speech is this: what role can and should r-star play for monetary policy in practice?
Let’s approach the answer with a thought experiment: Put yourself in the shoes of a monetary policymaker who only looks at r-star. The relevant interest rate with which you steer the monetary policy stance is currently 2.75 %. After a previous series of interest rate cuts, you consider whether a further cut would be appropriate.
Your staff inform you that various point estimates of r-star range from around 1.8 % to 2.5 % in nominal terms. If r-star were at the upper end of the estimates, the policy rate would become neutral with the next rate cut. Things would be different if r-star were at the lower end of the estimates: Monetary policy would continue to be restrictive, even after several further rate cuts.
So how would you proceed, given a certain stance you want to achieve? Beware: If you rely on a wrong estimate, your decision may have a different effect on inflation than you intended. Simply choosing the middle of the range might not be a happy medium. Around the point estimates, there are often uncertainty bands of different sizes and with asymmetries.
As you have probably guessed: It is no coincidence that I have described this particular decision-making situation. It looks similar in the euro area ahead of the next monetary policy meeting of the ECB Governing Council at the beginning of March. After several rate cuts, the neutral rate could already be near – or there may still be some way to go.
The President of the New York Fed, John Williams, put the problem in a nutshell when he said: as we have gotten closer to the range of estimates of neutral, what appeared to be a bright point of light is really a fuzzy blur.[20]
The bottom line here is this: The closer we get to the neutral rate, the more appropriate it becomes to take a gradual approach. For this purpose, r-star is a helpful concept: it indicates when we need to be more cautious with policy rate moves so that we don’t take a wrong step.
At the same time, the limits of the concept are also clear: it would be risky to base decisions mainly on r-star estimates. Much more is needed to assess the current monetary policy stance and the optimal policy path for the near future.
That is why the Eurosystem uses a variety of financial, real economic and other indicators along the monetary policy transmission mechanism. We want the fullest picture possible. And, of course, r-star also has a place in this picture. For instance, r-star is included in model-based optimal policy projections that we use in the decision-making process.
In my opinion, proceeding in a data-driven and gradual manner has served the ECB Governing Council well. There is no reason to act hastily in the present uncertain environment. The data will tell us where we need to go.
Away from day-to-day monetary policymaking, the concept of the natural rate of interest provides a useful framework. This is also exemplified in the policy scenarios that Ricardo Reis presented last week in Brussels.[21]
He works with the assumption that government bond rates remain around current levels. I would add the assumption that inflation stays on target – actually, that is what I am in office for and committed to. Assuming output is at capacity, policy rates would be persistently higher than in the past. But the recommendations on actual monetary policy depend on the driving forces: is the new setting caused by less demand for safe and liquid assets or by an increase in productivity? And he has two more scenarios in his paper!
That provides a good example of why we should take a close look at the factors behind r-star estimates. Here it is important to even better understand the forces that are shifting real interest rate trends. We need to find out how these forces and trends affect our work to ensure price stability.
Reviewing our monetary policy strategy from time to time is therefore vital. That is precisely what we are doing right now in the Eurosystem. And, of course, in this process, we look at all the questions I mentioned about r-star.
Our stargazing tour is drawing to a close. It turns out we were dealing more with dark matter than with a shining star. Just as dark matter is an exciting field for astronomers, r-star is a rewarding topic for economists.
Using r-star alone to navigate the monetary policy universe could be like flying almost blind. But having it as one of many instruments in your cockpit is highly useful.
I would like to end by quoting Stephen Hawking again: Mankind’s greatest achievements have come about by talking, and its greatest failures by not talking.
Footnotes:
Wicksell, K. (1898), Geldzins und Güterpreise: eine Studie über die den Tauschwert des Geldes bestimmenden Ursachen, Jena, G. Fischer (English version as ibid. (1936), Interest and prices: a study of the causes regulating the value of money, London, Macmillan).
Obstfeld, M., Natural and Neutral Real Interest Rates: Past and Future, NBER Working Paper, No 31949, December 2023.
Brand, C., M. Bielecki and A. Penalver (2018), The natural rate of interest: estimates, drivers, and challenges to monetary policy, ECB Occasional Paper, No 217.
Cesa-Bianchi, A., R. Harrison and R. Sajedi (2023), Global R*, CEPR Discussion Paper No 18518; Davis, J., C. Fuenzalida, L. Huetsch, B. Mills and A. M. Taylor (2024), Global natural rates in the long run: Postwar macro trends and the market-implied r* in 10 advanced economies, Journal of International Economics, Vol. 149; International Monetary Fund (2023), The natural rate of interest: drivers and implications for policy, World Economic Outlook, April, Chapter 2.
On the development of risk appetite in financial markets, see Deutsche Bundesbank, Risk appetite in financial markets and monetary policy, Monthly Report, January 2025.
Brand, C., N. Lisack and F. Mazelis (2025), Natural rate estimates for the euro area: insights, uncertainties and shortcomings, ECB Economic Bulletin, 1/2025.
Additional models would also provide values outside this range, but are currently not deemed sufficiently robust.
Benigno, G., B. Hofmann, G. Nuño and D. Sandri (2024), Quo vadis, r*? The natural rate of interest after the pandemic, BIS Quarterly Review, March.
Reis, R. (2025), The Four R-stars: From Interest Rates to Inflation and Back, draft working paper.
Wicksell, K. (1898), op. cit.
Caballero, R., E. Farhi and P.-O. Gourinchas (2017), Rents, Technical Change, and Risk Premia Accounting for Secular Trends in Interest Rates, Returns on Capital, Earning Yields, and Factor Shares, American Economic Review: Papers & Proceedings 107(5), pp. 614‑620.
Deutsche Bundesbank, The natural rate of interest, Monthly Report, October 2017.
Brand, C., M. Bielecki and A. Penalver (2018), The natural rate of interest: estimates, drivers, and challenges to monetary policy, ECB Occasional Paper, No 217.
Reis, R., Which r-star, public bonds or private investment? Measurement and policy implications, Unpublished manuscript, September 2022.
Jordà, Ò., S. Singh and A. Taylor, The long-run effects of monetary policy, NBER Working Papers, No 26666, January 2020, revised September 2024; Benigno, G., B. Hofmann, G. Nuño and D. Sandri (2024), Quo vadis, r*? The natural rate of interest after the pandemic, BIS Quarterly Review, March.
Baqaee, D., E. Farhi and K. Sangani, The supply-side effects of monetary policy, NBER Working Paper, No 28345, January 2021, revised March 2023; Ma, Y. and K. Zimmermann, Monetary Policy and Innovation, NBER Working Paper, No 31698, September 2023.
Borio, C., P. Disyatat, M. Juselius and P. Rungcharoenkitkul (2022), Why so low for so long? A long-term view of real interest rates, International Journal of Central Banking, Vol. 18, No 3.
Hillenbrand, S. (2025), The Fed and the Secular Decline in Interest Rates, The Review of Financial Studies, forthcoming.
Williams, J. C. (2017), Comment on “Safety, Liquidity, and the Natural Rate of Interest”, by M. Del Negro, M. P. Giannoni, D. Giannone, and A. Tambalotti, Brookings Papers on Economic Activity, Vol. 1, pp. 235‑316; Rungcharoenkitkul, P. and F. Winkler, The natural rate of interest through a hall of mirrors, BIS Working Paper No 974, November 2021.
Williams, J. C., Remarks at the 42nd Annual Central Banking Seminar, Federal Reserve Bank of New York, New York City, 1 October 2018.
Reis, R. (2025), op. cit.
Professor Ian Graham will rejoin the Board for a second term.
Professor Ian Graham has been reappointed to the board of Royal Botanic Gardens, Kew for a second term of three years.
His term will run from 1 May 2025 to 30 April 2028.
The reappointment has been made in accordance with the Governance Code on Public Appointments.
Biography
Professor Graham is currently based at the University of York, in the Centre for Novel Agricultural Products and holds the Weston Chair in Biochemical Genetics. He has previously held roles in the University of Glasgow, University of Oxford, and Stanford University.
Professor Ian Graham completed his PhD in Plant Molecular Biology from the University of Edinburgh. His research interests now focus on plant natural products such as noscapine (anti-cancer), codeine (analgesic), and artemisinin (antimalarial).
Ian was elected as a Fellow of the Royal Society in 2016 and won the Biochemical Society’s 2017 Heatley Medal and Prize for “exceptional work in applying advances in biochemistry, and especially for developing practical uses that have created widespread benefits and value for society”.
The Royal Botanic Gardens, Kew
The Royal Botanic Gardens, Kew is a world-famous scientific organisation, internationally respected for its outstanding collections as well as its scientific expertise in plant and fungal diversity, conservation and sustainable development in the UK and around the world.
Kew Gardens is a major international and a top London visitor attraction. Kew Gardens’ 132 hectares of landscaped gardens, and Wakehurst, Kew’s wild botanic garden in Sussex, attract over 2.5 million visits every year. Kew Gardens was made a UNESCO World Heritage site in July 2003 and celebrated its 260th anniversary in 2019. Wakehurst is home to Kew’s Millennium Seed Bank, the largest wild plant seed bank in the world, as well as over 500 acres of designed landscapes, wild woodlands, ornamental gardens and a nature reserve.
The Kew Madagascar Conservation Centre is Kew’s third research centre and only overseas office. RBG Kew receives approximately one third of its funding from government through the Department for Environment, Food and Rural Affairs and research councils. Further funding needed to support RBG Kew’s vital work comes from donors, membership and commercial activity including ticket sales.
The Community Emergency Preparedness Fund (CEPF) is funded by the Ministry of Emergency Management and Climate Readiness and administered through the Union of British Columbia Municipalities. The CEPF funds projects that support First Nations and local governments to better prepare for disasters and reduce risks from hazards in a changing climate.
Communities throughout British Columbia will receive approximately $1 million in provincial funding as follows:
Boothroyd Indian Band – Knowledge keepers’ information and sharing for culturally safe emergency response Amount: $31,000
Bulkley-Nechako Regional District – Cultural competency in emergency-response training Amount: $31,650
Central Okanagan Regional District – Cultural safety and humility training Regional partners: Kelowna, Peachland, Lake Country, Westbank First Nation, West Kelowna Amount: $237,000
Coquitlam – Cultural safety and humility training Amount: $40,000
East Kootenay Regional District – Indigenous cultural awareness training Amount: $25,000
Fraser Valley Regional District – Contextual cultural awareness training Amount: $40,000
Hope – Cultural safety training Amount: $39,600
Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations – Training for emergency responders to work effectively and safely with the Ka:’yu:’k’t’h’/Che:k’tles7et’h’ Amount: $40,000
Kamloops – Emergency program cultural safety and humility training Amount: $40,000
Kitimat – Haisla Nation cultural awareness training Amount: $10,000
Merritt – Emergency-management program Indigenous engagement Amount: $40,000
North Coast Regional District – Indigenous cultural safety and humility training Regional partners: Prince Rupert, Port Edward Amount: $110,000
North Vancouver – Truth and reconciliation training Amount: $33,960
Port Moody – Indigenous cultural safety and cultural humility training Amount: $40,000
Sema:th First Nation (Sumas) – Transforming emergency management through cultural safety Amount: $40,000
Splatsin First Nation (Spallumcheen) – Resilient Roots: cultural safety in emergencies Amount: $40,000
Sqwá First Nation (Skwah) – Community capacity building to foster shared understanding of trauma in emergency response Amount: $40,000
Strathcona Regional District – This Territory You Are On training Regional partners: Village of Tahsis, Gold River, Klahoose First Nation, Xwémalhkwu (Homalco) First Nation, Nuchatlaht First Nation, Ehattesaht Amount: $157,300
Vernon – Cultural safety educators Amount: $40,000
West Vancouver – Reconciliation, equity, diversity and inclusion workshop Amount: $40,000
The General Assembly is INTERPOL’s supreme governing body and comprises delegates appointed by the governments of member countries.
It meets once a year and takes all the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances and programmes of activities. These decisions are in the form of resolutions.
Source: The Conversation – UK – By Blane Savage, Lecturer in MA Creative Media Practice and BA(Hons) Graphic Art & Moving Image, University of the West of Scotland
The exhibition curator James Knox is to be congratulated on bringing together an impressive collection of work that tells the story of a diverse group of artists who helped transform and modernise British art in the early 20th century and contains work held in private collections not seen by the public before.
The Scottish colourists, as they were known, all visited and lived in Paris and were heavily influenced by the burgeoning avant-garde movement there in the early years of the 20th century. This was during its most dynamic and transformative stages, when cubism, post-impressionism and fauvism movements were evolving.
The exhibition highlights and contrasts the work produced by the colourists to that of Roger Fry’s Bloomsbury group members, Vanessa Bell and her amour Duncan Grant. It also includes work by the Fitzroy Street Group and several distinguished Welsh artists of that time, Augustus John and James Dickson Innes, as well as fauvist artists Andre Derain and Kees van Dongen.
The colourists’ paintings stand out in the exhibition through the maturity and confidence of their artworks, the tonal qualities and vibrancy of their colour palettes consistently rising above the more muted works surrounding them.
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The capacity of the colourists to study, travel and seek inspiration internationally, away from a grey Scottish Presbyterian climate, and particularly, embedding themselves in the Paris art scene in the early 20th century is impressive.
These artists stood shoulder to shoulder with their European contemporaries, inspired by the post-impressionist work of Cezanne, Matisse, Van Gogh and Derain. They delivered consistent and highly sophisticated artworks throughout their careers exploring light, shape and dynamic colour ranges, and often painted outdoors.
Each of the Scottish colourists returned to Scotland bringing new approaches to art with them. Peploe experimented with Cezanne-like geometric forms, whereas Fergusson’s practice was heavily influenced by the fauves. Hunter experimented with simplified post-impressionist blocks of colour to create dynamic shapes, while Cadell often focused on bold shapes and stylish impressionistic compositions.
Peploe, Hunter and Cadell exhibited in London’s Leicester Gallery in 1923 where they were first described as the “three colourists” by critic P.G. Konody.
Peploe, Fergusson and Hunter’s reputations were enhanced in 1924 when their work was bought by the French state after an exhibition organised by one of the most influential art dealers in Europe, Glaswegian Alexander Reid. He represented the four artists at the Galerie Barbazanges in Paris entitled Les Peintres de L’Ecosse Moderne, and turned their loose affiliation into an art movement.
Reid had also been responsible for developing the profile of The Glasgow Boys – a group of radical young painters whose disillusionment with academic painting signalled the birth of modernism in Scotland in the late 19th century. Reid was also a central figure in developing Sir William Burrell’s art collection. This was closely followed by a further exhibition in London’s Leicester Gallery in 1925 and then in Paris in 1931.
Peploe was the most commercially successful of the four artists, having a still life purchased by the Tate in 1927. His painting of Paris Plage captures the atmospherically startling white light of that French region. His studio work with a still life of flowers and fruit had the hallmarks of Cezanne’s style.
His love of outdoor landscapes, as shown in Kirkcudbright, painted in south-west Scotland, also resemble Cezanne’s primary geometric forms. He visited the island of Iona on a number of occasions with Cadell and other painters, revealing his love of the white sands, rocks and water which can be seen in Green Sea, Iona.
Cadell was known for his powerful still lifes, stylish portraits of elegant women in hats, and for his landscape painting on Iona. Cadell’s Green Sea on Iona and Ben More on Mull on show are part of a series of paintings of the white sands he produced on his regular visits there.
J.D. Fergusson‘s The Blue Hat, Closerie de Lilas is an outstanding piece on show which dazzles with the vibrancy of Parisian cafe life. He was attracted to fauve-like expressive colours and strong outlines in his work. The one piece of sculpture on display is by Fergusson, whose foray into sculptural medium in the Eastre, Hymn to the Sun is striking in its modernist aesthetic – like the female robot character in Fritz Lang’s Metropolis.
Having no art training like the others, Lesley Hunter’s Still Life with White Jug and Peonies in a Chinese vase highlight his developing skills as a still life painter and they have a striking vibrancy to them. His outdoor scenes use loosely styled daubs of colour in a post-impressionistic style often in vibrant colours.
All the Scottish colourists were recognised for their influence and contribution to the development of Scottish art during their lifetimes, combining aspects of The Glasgow School and cutting-edge Parisian avant garde. But they fell out of fashion due to economic decline before the second world war.
They were rediscovered and packaged as a collective in the 1950s initially by art historian T.J. Honeyman in his book Three Scottish Colourists and were brought together with the inclusion of J.D. Fergusson in the 1980s. Although their key role in the development of Scottish art history is assured, interestingly their appreciation in France is even greater than in Britain.
The Scottish Colourists: Radical Perspectives is on at the Dovecot Studios in Edinburgh until June 28.
Blane Savage 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.
We are in the early days of a seismic shift in the global AI industry. DeepSeek, a previously little-known Chinese artificial intelligence company, has produced a “game changing”“ large language model that promises to reshape the AI landscape almost overnight.
But DeepSeek’s breakthrough also has wider implications for the technological arms race between the US and China, having apparently caught even the best-known US tech firms off guard. Its launch has been predicted to start a “slow unwinding of the AI bet” in the west, amid a new era of “AI efficiency wars”.
In fact, industry experts have been speculating for years about China’s rapid advancements in AI. While the supposedly free-market US has often prioritised proprietary models, China has built a thriving AI ecosystem by leveraging open-source technology, fostering collaboration between government-backed research institutions and major tech firms.
This strategy has enabled China to scale its AI innovation rapidly while the US – despite all the tub-thumping from Silicon Valley – remains limited by restrictive corporate structures. Companies such as Google and Meta, despite promoting open-sourceinitiatives, still rely heavily on closed-source strategies that limit broader access and collaboration.
What makes DeepSeek particularly disruptive is its ability to achieve cutting-edge performance while reducing computing costs – an area where US firms have struggled due to their dependence on training models that demand very expensive processing hardware.
Where once Silicon Valley was the epicentre of global digital innovation, its corporate behemoths now appear vulnerable to more innovative, “scrappy” startup competitors – albeit ones enabled by major state investment in AI infrastructure. By leveraging China’s industrial approach to AI, DeepSeek has crystallised a reality that many in Silicon Valley have long ignored: AI’s centre of power is shifting away from the US and the west.
It highlights the failure of US attempts to preserve its technological hegemony through tight export controls on cutting-edge AI chips to China. According to research fellow Dean Ball: “You can keep [computing resources] away from China, but you can’t export-control the ideas that everyone in the world is hunting for.”
DeepSeek’s success has forced Silicon Valley and large western tech companies to “take stock”, realising that their once-unquestioned dominance is suddenly at risk. Even the US president, Donald Trump, has proclaimed that this should be a “wake-up call for our industries that we need to be laser-focused on competing”.
But this story is not just about technological prowess – it could mark an important shift in global power. Former US secretary of state Mike Pompeo has framed DeepSeek’s emergence as a “shot across America’s bow”, urging US policymakers and tech executives to take immediate action.
DeepSeek’s rapid rise underscores a growing realisation: globally, we are entering a potentially new AI paradigm, one where China’s model of open-source innovation and state-backed development is proving more effective than Silicon Valley’s corporate-driven approach.
The Insights section is committed to high-quality longform journalism. Our editors work with academics from many different backgrounds who are tackling a wide range of societal and scientific challenges.
I’ve spent much of my career analysing the transformative role of AI on the global digital landscape – examining how AI shapes governance, market structures and public discourse, and exploring its geopolitical and ethical dimensions, now and far in the future.
I also have personal connections with China, having lived there while teaching at Jiangsu University, then written my PhD thesis on the country’s state-led marketisation programme. Over the years, I have studied China’s evolving tech landscape, observing firsthand how its unique blend of state-driven industrial policy and private-sector innovation has fuelled rapid AI development.
I believe this moment may come to be seen as a turning point not just for AI, but for the geopolitical order. If China’s AI dominance continues, what could this mean for the future of digital governance, democracy, and the global balance of power?
China’s open-source AI takeover
Even in the early days of China’s digital transformation, analysts predicted the country’s open-source focus could lead to a major AI breakthrough. In 2018, China was integrating open-source collaboration into its broader digitisation strategy, recognising that fostering shared development efforts could accelerate its AI capabilities.
Unlike the US, where proprietary AI models dominated, China embraced open-source ecosystems to bypass western gatekeeping, scale innovation faster, and embed itself in global AI collaboration. China’s open-source activity surged dramatically in 2020, laying the foundation for the kind of innovation seen today. By actively fostering an open-source culture, China ensured that a broad range of developers had access to AI tools, rather than restricting them to a handful of dominant companies.
The trend has continued in recent years, with China even launching its own state-backed open-source operating systems and platforms in 2023, to further reduce its dependence on western technology. This move was widely seen as an effort to cement its AI leadership and create an independent, self-sustaining digital ecosystem.
Video: BBC.
While China has been steadily positioning itself as a leader in open-source AI, Silicon Valley firms remained focused on closed, proprietary models – allowing China to catch up fast. While companies like Google and Meta promoted open-source initiatives in name, they still locked key AI capabilities behind paywalls and restrictive licenses.
In contrast, China’s government-backed initiatives have treated open-source AI as a national resource, rather than a corporate asset. This has resulted in China becoming one of the world’s largest contributors to open-source AI development, surpassing many western firms in collaborative projects. Chinese tech giants such as Huawei, Alibaba and Tencent are driving open-source AI forward with frameworks like PaddlePaddle, X-Deep Learning (X-DL) and MindSpore — all now core to China’s machine learning ecosystem.
But they’re also making major contributions to global AI projects, from Alibaba’s Dragonfly, which streamlines large-scale data distribution, to Baidu’s Apollo, an open-source platform accelerating autonomous vehicle development. These efforts don’t just strengthen China’s AI industry, they embed it deeper into the global AI landscape.
This shift had been years in the making, as Chinese firms (with state backing) pushed open-source AI forward and made their models publicly available, creating a feedback loop that western companies have also – quietly – tapped into. A year ago, for example, US firm Abicus.AI released Smaug-72B, an AI model designed for enterprises that built directly upon Alibaba’s Qwen-72B and outperformed proprietary models like OpenAI’s GPT-3.5 and Mistral’s Medium. But the potential for US companies to further build on Chinese open-source technology may be limited by political as well as corporate barriers.
In 2023, US lawmakers highlighted growing concerns that China’s aggressive investment in open-source AI and semiconductor technologies would eventually erode western leadership in AI. Some policymakers called for bans on certain open-source chip technologies, due to fears they could further accelerate China’s AI advancements.
But by then, China’s AI horse had already bolted.
AI with Chinese characteristics
DeepSeek’s rise should have been obvious to anyone familiar with management theory and the history of technological breakthroughs linked to “disruptive innovation”. Latecomers to an industry rarely compete by playing the same game as incumbents – they have to be disruptive.
China, facing restrictions on cutting-edge western AI chips and lagging behind in proprietary AI infrastructure, had no choice but to innovate differently. Open-source AI provided the perfect vehicle: a way to scale innovation rapidly, lower costs and tap into global research while bypassing Silicon Valley’s resource-heavy, closed-source model.
From a western and traditional human rights perspective, China’s embrace of open-source AI may appear paradoxical, given the country’s strict information controls. Its AI development strategy prioritises both technological advancement and strict alignment with the Chinese Communist party’s ideological framework, ensuring AI models adhere to “core socialist values” and state-approved narratives. AI research in China has thrived not only despite these constraints but, in many ways, because of them.
Video: CNBC.
China’s success goes beyond traditional authoritarianism; it embodies what Harvard economist David Yang calls “Autocracy 2.0”. Rather than relying solely on fear-based control, it uses economic incentives, bureaucratic efficiency, and technology to manage information and maintain regime stability.
The Chinese government has strategically encouraged open-source development while maintaining tight control over AI’s domestic applications, particularly in surveillance and censorship. Indeed, authoritarian regimes may have a significant advantage in developing facial-recognition technology due to their extensive surveillance systems. The vast amounts of data collected through these networks enable private AI companies to create advanced algorithms, which can then be adapted for commercial uses, potentially accelerating economic growth.
China’s AI strategy is built on a dual foundation of state-led initiatives and private-sector innovation. The country’s AI roadmap, first outlined in the 2017 new generation artificial intelligence development plan, follows a three-phase timeline: achieving global competitiveness by 2020, making major AI breakthroughs by 2025, and securing world leadership in AI by 2030. In parallel, the government has emphasised data governance, regulatory frameworks and ethical oversight to guide AI development “responsibly”.
A defining feature of China’s AI expansion has been the massive infusion of state-backed investment. Over the past decade, government venture capital funds have injected approximately US$912 billion (£737bn) into early-stage firms, with 23% of that funding directed toward AI-related companies. A significant portion has targeted China’s less-developed regions, following local investment mandates.
Compared with private venture capital, government-backed firms often lag in software development but demonstrate rapid growth post-investment. Moreover, state funding often serves as a signal for subsequent private-sector investment, reinforcing the country’s AI ecosystem.
China’s AI strategy represents a departure from its traditional industrial policies, which historically emphasised self-sufficiency, support for a handful of national champions, and military-driven research. Instead, the government has embraced a more flexible and collaborative approach that encourages open-source software adoption, a diverse network of AI firms, and public-private partnerships to accelerate innovation. This model prioritises research funding, state-backed AI laboratories, and AI integration across key industries including security, healthcare, and infrastructure.
Despite strong state involvement, China’s AI boom is equally driven by private-sector innovation. The country is home to an estimated 4,500 AI companies, accounting for 15% of the world’s total.
As economist Liu Gang told the Chinese Communist Party’s Global Times newspaper: “The development of AI is fast in China – for example, for AI-empowered large language models. Aided with government spending, private capital is flowing to the new sector. Increased capital inflow is anticipated to further enhance the sector in 2025.”
China’s tech giants including Baidu, Alibaba, Tencent and SenseTime have all benefited from substantial government support while remaining competitive on the global stage. But unlike in the US, China’s AI ecosystem thrives on a complex interplay between state support, corporate investment and academic collaboration.
Recognising the potential of open-source AI early on, Tsinghua University in Beijing has emerged as a key innovation hub, producing leading AI startups such as Zhipu AI, Baichuan AI, Moonshot AI and MiniMax — all founded by its faculty and alumni. The Chinese Academy of Sciences has similarly played a crucial role in advancing research in deep learning and natural language processing.
Unlike the west, where companies like Google and Meta promote open-source models for strategic business gains, China sees them as a means of national technological self-sufficiency. To this end, the National AI Team, composed of 23 leading private enterprises, has developed the National AI Open Innovation Platform, which provides open access to AI datasets, toolkits, libraries and other computing resources.
DeepSeek is a prime example of China’s AI strategy in action. The company’s rise embodies the government’s push for open-source collaboration while remaining deeply embedded within a state-guided AI ecosystem. Chinese developers have long been major contributors to open-source platforms, ranking as the second-largest group on GitHub by 2021.
Founded by Chinese entrepreneur Liang Wenfeng in 2023, DeepSeek has positioned itself as an AI leader while benefiting from China’s state-driven AI ecosystem. Liang, who also established the hedge fund High-Flyer, has maintained full ownership of DeepSeek and avoided external venture capital funding.
Though there is no direct evidence of government financial backing, DeepSeek has reaped the rewards of China’s AI talent pipeline, state-sponsored education programs, and research funding. Liang has engaged with top government officials including China’s premier, Li Qiang, reflecting the company’s strategic importance to the country’s broader AI ambitions.
In this way, DeepSeek perfectly encapsulates “AI with Chinese characteristics” – a fusion of state guidance, private-sector ingenuity, and open-source collaboration, all carefully managed to serve the country’s long-term technological and geopolitical objectives.
Recognising the strategic value of open-source innovation, the government has actively promoted domestic open-source code platforms like Gitee to foster self-reliance and insulate China’s AI ecosystem from external disruptions. However, this also exposes the limits of China’s open-source ambitions. The government pushes collaboration, but only within a tightly controlled system where state-backed firms and tech giants call the shots.
Reports of censorship on Gitee reveal how Beijing carefully manages innovation, ensuring AI advances stay in line with national priorities. Independent developers can contribute, but the real power remains concentrated in companies that operate within the government’s strategic framework.
The conflicted reactions of US big tech
DeepSeek’s emergence has sparked intense debate across the AI industry, drawing a range of reactions from leading Silicon Valley executives, policymakers and researchers. While some view it as an expected evolution of open-source AI, others see it as a direct challenge to western AI leadership.
Microsoft’s CEO, Satya Nadella, emphasised its technical efficiency. “It’s super-impressive in terms of both how they have really effectively done an open-source model that does this inference-time compute, and is super-compute efficient,” Nadella told CNBC. “We should take the developments out of China very, very seriously”.
Silicon Valley venture capitalist Marc Andreessen, a prominent advisor to Trump, was similarly effusive. “DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen – and as open source, a profound gift to the world,” he wrote on X.
For Yann LeCun, Meta’s chief AI scientist, DeepSeek is less about China’s AI capabilities and more about the broader power of open-source innovation. He argued that the situation should be read not as China’s AI surpassing the US, but rather as open-source models surpassing proprietary ones. “DeepSeek has profited from open research and open source (e.g. PyTorch and Llama from Meta),” he wrote on Threads. “They came up with new ideas and built them on top of other people’s work. Because their work is published and open source, everyone can profit from it. That is the power of open research and open source.”
Not all responses were so measured. Alexander Wang, CEO of Scale AI – a US firm specialising in AI data labelling and model training – framed DeepSeek as a competitive threat that demands an aggressive response. He wrote on X: “DeepSeek is a wake-up call for America, but it doesn’t change the strategy: USA must out-innovate & race faster, as we have done in the entire history of AI. Tighten export controls on chips so that we can maintain future leads. Every major breakthrough in AI has been American.”
Elon Musk added fuel to speculation about DeepSeek’s hardware access when he responded with a simple “obviously” to Wang’s earlier claims on CNBC that DeepSeek had secretly acquired 50,000 Nvidia H100 GPUs, despite US export restrictions.
Beyond the tech world, US policymakers have taken a more adversarial stance. House speaker Mike Johnson accused China of leveraging DeepSeek to erode American AI leadership. “They abuse the system, they steal our intellectual property. They’re now trying to get a leg up on us in AI.”
For his part, Trump took a more pragmatic view, seeing DeepSeek’s efficiency as a validation of cost-cutting approaches. “I view that as a positive, as an asset … You won’t be spending as much, and you’ll get the same result, hopefully.”
The rise of DeepSeek may have helped jolt the Trump administration into action, leading to sweeping policy shifts aimed at securing US dominance in AI. In his first week back in the White House, the US president announced a series of aggressive measures, including massive federal investments in AI research, closer partnerships between the government and private tech firms, and the rollback of regulations seen as slowing US innovation.
The administration’s framing of AI as a critical national interest reflects a broader urgency sparked by China’s rapid advancements, particularly DeepSeek’s ability to produce cutting-edge models at a fraction of the cost traditionally associated with AI development. But this response is not just about national competitiveness – it is also deeply entangled with private industry.
Musk’s growing closeness to Trump, for example, can be viewed as a calculated move to protect his own dominance at home and abroad. By aligning with the administration, Musk ensures that US policy tilts in favour of his AI ventures, securing access to government backing, computing power, and regulatory control over AI exports.
At the same time, Musk’s public criticism of Trump’s US$500 billion AI infrastructure plan – claiming the companies involved lack the necessary funding – was as much a warning as a dismissal, signalling his intent to shape policy in a way that benefits his empire while keeping potential challengers at bay.
Not unrelated, Musk and a group of investors have just launched a US$97.4 billion (£78.7bn) bid for OpenAI’s nonprofit arm, a move that escalates his feud with OpenAI CEO Sam Altman and seeks to strengthen his grip on the AI industry. Altman has dismissed the bid as a “desperate power grab”, insisting that OpenAI will not be swayed by Musk’s attempts to reclaim control. The spat reflects how DeepSeek’s emergence has thrown US tech giants into what could be all-out war, fuelling bitter corporate rivalries and reshaping the fight for AI dominance.
And while the US and China escalate their AI competition, other global leaders are pushing for a coordinated response. The Paris AI Action Summit, held on February 10 and 11, has become a focal point for efforts to prevent AI from descending into an uncontrolled power struggle. France’s president, Emmanuel Macron, warned delegates that without international oversight, AI risks becoming “the wild west”, where unchecked technological development creates instability rather than progress.
But at the end of the two-day summit, the UK and US refused to sign an international commitment to “ensuring AI is open, inclusive, transparent, ethical, safe, secure and trustworthy … making AI sustainable for people and the planet”. China was among the 61 countries to sign this declaration.
Concerns have also been raised at the summit about how AI-powered surveillance and control are enabling authoritarian regimes to strengthen repression and reshape the citizen-state relationship. This highlights the fast-growing global industry of digital repression, driven by an emerging “authoritarian-financial complex” that may exacerbate China’s strategic advancement in AI.
Equally, DeepSeek’s cost-effective AI solutions have created an opening for European firms to challenge the traditional AI hierarchy. As AI development shifts from being solely about compute power to strategic efficiency and accessibility, European firms now have an opportunity to compete more aggressively against their US and Chinese counterparts.
Whether this marks a true rebalancing of the AI landscape remains to be seen. But DeepSeek’s emergence has certainly upended traditional assumptions about who will lead the next wave of AI innovation – and how global powers will respond to it.
End of the ‘Silicon Valley effect’?
DeepSeek’s emergence has forced US tech leaders to confront an uncomfortable reality: they underestimated China’s AI capabilities. Confident in their perceived lead, companies like Google, Meta, and OpenAI prioritised incremental improvements over anticipating disruptive competition, leaving them vulnerable to a rapidly evolving global AI landscape.
In response, the US tech giants are now scrambling to defend their dominance, pledging over US$400 billion in AI investment. DeepSeek’s rise, fuelled by open-source collaboration, has reignited fierce debates over innovation versus security, while its energy-efficient model has intensified scrutiny on AI’s sustainability.
Yet Silicon Valley continues to cling to what many view as outdated economic theories such as the Jevons paradox to downplay China’s AI surge, insisting that greater efficiency will only fuel demand for computing power and reinforce their dominance. Companies like Meta, OpenAI and Microsoft remain fixated on scaling computational power, betting that expensive hardware will secure their lead. But this assumption blinds them to a shifting reality.
DeepSeek’s rise as the potential “Walmart of AI” is shaking Silicon Valley’s foundation, proving that high-quality AI models can be built at a fraction of the cost. By prioritising efficiency over brute-force computing power, DeepSeek is challenging the US tech industry’s reliance on expensive hardware like Nvidia’s high-end chips.
This shift has already rattled markets, driving down the stock prices of major US firms and forcing a reassessment of AI dominance. Nvidia, whose business depends on supplying high-performance processors, appears particularly vulnerable as DeepSeek’s cost-effective approach threatens to reduce demand for premium chips.
Video: CBS News.
The growing divide between the US and China in AI, however, is more than just competition – it’s a clash of governance models. While US firms remain fixated on protecting market dominance, China is accelerating AI innovation with a model that is proving more adaptable to global competition.
If Silicon Valley resists structural change, it risks falling further behind. We may witness the unravelling of the “Silicon Valley effect”, through which tech giants have long manipulated AI regulations to entrench their dominance. For years, Google, Meta,and OpenAI shaped policies that favoured proprietary models and costly infrastructure, ensuring AI development remained under their control.
More than a policy-driven rise, China’s AI surge reflects a fundamentally different innovation model – fast, collaborative and market-driven – while Silicon Valley holds on to expensive infrastructure and rigid proprietary control. If US firms refuse to adapt, they risk losing the future of AI to a more agile and cost-efficient competitor.
A new era of geotechnopolitics
But China is not just disrupting Silicon Valley. It is expanding “geotechnopolitics”, where AI is a battleground for global power. With AI projected to add US$15.7 trillion to the global economy by 2030, China and the US are racing to control the technology that will define economic, military and political dominance.
DeepSeek’s advancement has raised national security concerns in the US. Trump’s government is considering stricter export controls on AI-related technologies to prevent them from bolstering China’s military and intelligence capabilities.
As AI-driven defence systems, intelligence operations and cyber warfare redefine national security, governments must confront a new reality: AI leadership is not just about technological superiority, but about who controls the intelligence that will shape the next era of global power.
China’s AI ambitions extend beyond technology, driving a broader strategy for economic and geopolitical dominance. But with over 50 state-backed companies developing large-scale AI models, its rapid expansion faces growing challenges, including soaring energy demands and US semiconductor restrictions.
China’s president, Xi Jinping, remains resolute, stating: “Whoever can grasp the opportunities of new economic development such as big data and artificial intelligence will have the pulse of our times.” He sees AI driving “new quality productivity” and modernising China’s manufacturing base, calling its “head goose effect” a catalyst for broader innovation.
To counter western containment, China has embraced a “guerrilla” economic strategy, bypassing restrictions through alternative trade networks, deepening ties with the global south, and exploiting weaknesses in global supply chains. Instead of direct confrontation, this decentralised approach uses economic coercion to weaken adversaries while securing China’s own industrial base.
Video: AP.
China is also leveraging open-source AI as an ideological tool, presenting its model as more collaborative and accessible than western alternatives. This narrative strengthens its global influence, aligning with nations seeking alternatives to western digital control. While strict state oversight remains, China’s embrace of open-source AI reinforces its claim to a future where innovation is driven not by corporate interests but through shared collaboration and global cooperation.
But while DeepSeek claims to be open access, its secrecy tells a different story. Key details on training data and fine-tuning remain hidden, and its compliance with China’s AI laws has sparked global scrutiny. Italy has banned the platform over data-transfer risks, while Belgium and Ireland launched privacy probes.
Under Chinese regulations, DeepSeek’s outputs must align with state-approved narratives, clashing with the EU’s AI Act, which demands transparency and protects political speech. Such “controlled openness” raises many red flags, casting doubt on China’s place in markets that value data security and free expression.
Many western commentators are seizing on reports of Chinese AI censorship to frame other models as freer and more politically open. The revelation that a leading Chinese chatbot actively modifies or censors responses in real time has fuelled a broader narrative that western AI operates without such restrictions, reinforcing the idea that democratic systems produce more transparent and unbiased technology. This framing serves to bolster the argument that free societies will ultimately lead the global AI race.
But at its heart, the “AI arms race” is driven by technological dominance. The US, China, and the EU are charting different paths, weighing security risks against the need for global collaboration. How this competition is framed will shape policy: lock AI behind restrictions, or push for open innovation.
DeepSeek, for all its transformational qualities, continues to exemplify a model of AI where innovation prioritises scale, speed and efficiency over societal impact. This drive to optimise computation and expand capabilities overshadows the need to design AI as a truly public good. In doing so, it eclipses this technology’s genuine potential to transform governance, public services and social institutions in ways that prioritise collective wellbeing, equity and sustainability over corporate and state control.
A truly global AI framework requires more than political or technological openness. It demands structured cooperation that prioritises shared governance, equitable access, and responsible development. Following a workshop in Shanghai hosted by the Chinese government last September, the UN’s general secretary, António Guterres, outlined his vision for AI beyond corporate or state control: “We must seize this historic opportunity to lay the foundations for inclusive governance of AI – for the benefit of all humanity. As we build AI capacity, we must also develop shared knowledge and digital public goods.”
Both the west and China frame their AI ambitions through competing notions of “openness” – each aligning with their strategic interests and reinforcing existing power structures.
Western tech giants claim AI drives democratisation, yet they often dominate digital infrastructure in parts of Africa, Asia and Latin America, exporting models based on “corporate imperialism” that extract value while disregarding local needs. China, by contrast, positions itself as a technological partner for the rest of the global south; however, its AI remains tightly controlled, reinforcing state ideology.
China’s proclaimed view on international AI collaboration emphasises that AI should not be “a game of rich countries”“, as President Xi stated during the 2024 G20 summit. By advocating for inclusive global AI development, China positions itself as a leader in shaping international AI governance, especially via initiatives like the UN AI resolution and its AI capacity-building action plan. These efforts help promote a more balanced technological landscape while allowing China to strengthen its influence in global AI standards and frameworks.
However, beneath all these narratives, both China and the US share a strategy of AI expansion that relies on exploited human labour, from data annotation to moderation, exposing a system driven less by innovation than by economic and political control.
Seeing AI as a connected race for influence highlights the need for ethical deployment, cross-border cooperation, and a balance between security and progress. And this is where China may face its greatest challenge – balancing the power of open-source innovation with the constraints of a tightly controlled, authoritarian system that thrives on restriction, rather than openness.
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Peter Bloom 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.
Source: The Conversation – UK – By Ivo Vlaev, Professor of Behavioural Science, Warwick Business School, University of Warwick
Sir Keir Starmer has become the first sitting UK prime minister to publicly take an HIV test to reduce stigma around Aids and encourage more people to get tested.
There are historical parallels. In 1956, when Elvis Presley, at the height of his fame, was filmed receiving his polio vaccine on US television.
Do these high-profile gestures really change attitudes and behaviour, or are they just headline-grabbing stunts?
A closer look at the behavioural science behind celebrity endorsements suggests that, under the right conditions, public demonstrations by famous figures can indeed shift social norms, reduce stigma and influence health outcomes. However, the effects depend a lot on the credibility of the endorser, the authenticity of the act and the presence of sustained, follow-up campaigns.
Elvis Presley’s polio jab is one of the most iconic examples of celebrity-led health campaigns. But many other well-known figures have encouraged the public to adopt protective health measures, from actors promoting annual flu jabs to footballers advocating organ donation drives.
The premise is that a celebrity’s endorsement can normalise certain behaviour by tapping into the principles of “social learning theory”, particularly observational learning. That is, when we see someone we admire or trust do something, we are more likely to follow suit.
In the 1950s, polio was a serious threat, capable of causing paralysis or death. After witnessing Elvis roll up his sleeve on national television, many teenagers – previously sceptical or apathetic – became far more willing to accept the polio vaccine. That event is now hailed as a masterclass in leveraging popular culture to address a public health crisis.
A masterclass in leveraging popular culture.
A cornerstone of behavioural science is the recognition that who delivers a message can be as important as – or sometimes more important than – what the message contains. The so-called “messenger effect” highlights how we are often more persuaded by people we perceive to be credible, relatable or high status.
In the case of Elvis, he was already idolised by millions. He was the perfect conduit to promote vaccination among teenagers who might otherwise dismiss appeals from older authority figures.
Starmer occupies a different kind of influence. Supporters of the Labour party may see him as a trustworthy figure, while others could be sceptical of a politician’s motives. This underscores a key aspect of the messenger effect: if a large segment of the target audience views the figure as partisan or self-serving, the endorsement can backfire or simply fail to register.
Another powerful effect identified in behavioural science is social norms – our shared understandings of what is typical or appropriate – which strongly influence whether we take certain actions.
Stigma around HIV remains a major barrier to testing and treatment. Even though medical advances have changed the landscape of HIV/Aids care, many people still fear the societal consequences of a positive diagnosis. According to the UK Health Security Agency, around 5,000 people in the UK are unaware they are living with HIV, partly because they hesitate to test in the first place.
By publicly taking an HIV test, Starmer aimed to shift perceptions and normalise testing. In terms of social identity theory, seeing a prominent figure within the national community – especially one involved in shaping policies – undergo testing can communicate that “people like us” view HIV testing as a routine, responsible health measure. This may be particularly powerful for people who identify politically with Starmer or who respect his leadership position.
Despite the potential of celebrity or high-profile endorsements, behavioural science also points to authenticity as a vital ingredient. Audiences are more likely to change their behaviour if they believe the celebrity genuinely cares about the issue rather than simply seeking publicity. If endorsements are perceived as insincere or politically opportunistic, their effect can be muted or even counterproductive.
In Elvis’s case, he was known for engaging with young fans and had a track record of public good works, which helped bolster the sense that his polio vaccination was done for more than just a publicity boost.
For Starmer, sustaining the momentum beyond a single test – through continued advocacy, support of free testing programmes, and visibility in HIV-awareness campaigns – could reinforce the perception of a real commitment rather than a fleeting photo opportunity.
Nudges
Behavioural scientists also often talk about “nudges” – small interventions that change people’s choices without forbidding options or significantly changing incentives. A celebrity endorsement can serve as a nudge by making a desirable health behaviour (like getting tested) more top-of-mind or socially acceptable.
However, historically, Elvis’s vaccination was not a standalone act. It was part of a broader public health strategy involving schools, local campaigns and continued outreach. Those elements ensured that once people were motivated to get the polio jab, they could do so easily.
For HIV testing, the same principle applies: visible leadership from Starmer may spark initial interest, but practical measures – such as pop-up testing centres, free home-test kits and confidential testing support – are vital to maintain engagement.
Is Keir Starmer the new Elvis? In reality, the two scenarios differ in time and context. A 21st-century political leader raising awareness about HIV testing in the UK operates within a more complex media landscape than a 1950s rock ’n’ roll icon on American primetime television. Yet, there is a parallel: both used their public status to tackle a widespread health concern, hoping to overcome stigma and promote an important preventative measure.
Ultimately, celebrity moments can open the door, but only a sustained, evidence-based strategy will keep it open – and encourage people to walk through.
Anyone in England can order a free and confidential HIV test from www.freetesting.hiv to do the test at home.
Ivo Vlaev 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.
Source: United States Senator for North Dakota John Hoeven
02.12.25
WASHINGTON – Senator John Hoeven issued the following statement after President Donald Trump nominated North Dakota’s State Superintendent of Public Instruction Kirsten Baesler to serve as the Assistant Secretary for Elementary and Secondary Education (OESE) at the U.S. Department of Education (ED).Hoeven worked with incoming Education Secretary Linda McMahon during her time as the Director of the Small Business Administration (SBA) and recommended to McMahon both in person and over the phone that Baesler be nominated to this position.
“We appreciate President Trump and Department of Education Secretary-elect McMahon nominating Kirsten to this position. Kirsten has done a tremendous job overseeing the education of students in North Dakota and will be a great asset to the Trump administration,” said Hoeven. “Kirsten has spent her career focused on education and has experience ranging from teaching in a classroom to leading the NDPPI. We congratulate her on her nomination and will work with our colleagues to ensure she is confirmed by the Senate as quickly as possible.”
Baesler has served as state school superintendent since January 2013, where she leads the 86-person team responsible for overseeing the education of both public and nonpublic school students in North Dakota. Prior to her election as superintendent, Baesler spent 24 years working in the Bismarck Public School System including as a vice principal, classroom teacher and library media specialist. She spent nine years on the Mandan School Board, serving as president of the board for seven years. Baesler is a native of Flasher and graduated from Bismarck State College, Minot State University and Valley City State University.
Source: United States Senator for Colorado John Hickenlooper
WASHINGTON – U.S. Senator John Hickenlooper joined 21 of his Senate colleagues in a letter urging Department of the Interior Secretary Doug Burgum to immediately take action to resolve looming staffing shortages at the National Park Service.
The letter follows President Trump’s hiring freeze, his cancellation of thousands of job offers for seasonal National Park Service employees, and his buyout offers made without clear legal authority. These actions pave the way for a damaging loss of staff at national parks in Colorado and across the nation in the coming summer months and beyond.
“Americans showing up to national parks this summer and for years to come don’t deserve to have their vacations ruined by a completely preventable – and completely irresponsible – staffing shortage. And local economies don’t deserve to have their livelihoods destroyed for political gain,” wrote the senators.
Full text of the letter can be found HERE and below:
Dear Secretary Burgum:
We urge you to immediately reissue seasonal employment offers for the National Park Service, officially rescind damaging and short-sighted deferred resignation and early retirement offers, and to instead work to safeguard, grow, and shape the National Park Service workforce to meet the needs of our national parks and their visitors.
We are alarmed that the National Park Service revoked employment offers for seasonal staff for the upcoming summer season. Incoming seasonal staff – whose work is critical to managing the influx of visitors during the summer “peak season” – had offers in their hands that were yanked away just days after the inauguration.
National Park Service rangers carry out a wide array of functions critical to protecting natural resources, keeping visitors safe, providing for recreation, and creating an inspiring and educational experience for visitors. National Park units experience a summer surge in visitation that peaks in July, and the Service hires more than 6,000 seasonal employees to manage that extra work. Without seasonal staff during this peak season, visitor centers may close, bathrooms will be filthy, campgrounds may close, guided tours will be cut back or altogether cancelled, emergency response times will drop, and visitor services like safety advice, trail recommendations, and interpretation will be unavailable.
We are also alarmed that the administration’s offer of deferred resignation and voluntary early retirement, made without clear legal authority, as well as open threats about future terminations will lead to a damaging loss of full-time staff at the National Park Service, which is already operating well below prior staffing levels despite significant increases in visitation. As a result of onerous budget caps during the 2010s, the National Park Service lost 15% of its staff while park visitation also increased by 15%. If a significant number of National Park Service employees take one of the offers – or further terminations are made – park staffing will be in chaos. Not only does this threaten the full suite of visitor services, but could close entire parks altogether.
Gutting staffing at national park units will devastate local “gateway” communities where parks generate significant economic activity – from hotels to restaurants to stores to outfitters. In 2023, an estimated 325 million park visitors spent an estimated $26.4 billion in local gateway regions, supporting an estimated 415,000 jobs and $55.6 billion in total economic output in the national economy.
Americans showing up to national parks this summer and for years to come don’t deserve to have their vacations ruined by a completely preventable – and completely irresponsible – staffing shortage. And local economies don’t deserve to have their livelihoods destroyed for political gain. We urge your cooperation in protecting national parks for the enjoyment of everyone by ensuring National Park Service staffing meets the needs of the 433 national park units in all 50 states.
Source: United Kingdom – Executive Government & Departments
A commission for advice from the Home Office to the Animals in Science Committee (ASC) on strengthening the functioning of AWERBs and Named Information Officer.
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Recommendations sought for strengthening the functioning of Animal Welfare and Ethical Review Bodies (AWERBs) and the Named Information Officer (NIO) role. Advice is sought in the following specific areas:
best practice guidance for AWERBs, particularly relating to their duties regarding the 3Rs (replacement, refinement, and reduction) and training
the questions that AWERBs should ask project applicants to check that replacement methodologies have been fully considered
a review of the ASC AWERB network model to assure dissemination of leading practice
leading practice to ensure that the NIO role functions effectively at establishments, where required
While the first world war and the Spanish civil war had already drawn children in Europe and beyond into the orbit of conflict, the second world war marked a pivotal period in how young people have experienced the horrors of war.
During the 1940s, children faced unprecedented mobilisation and violence. From bombings and massacres to forced displacement and genocide, the impact was staggering. Millions of children were directly affected by these atrocities, while countless others endured the indirect consequences: shortages, family separations and grief.
In the aftermath of the war, childhood experts such as pediatricians, psychologists and nutritionists, as well as political leaders and humanitarian workers, feared for this potentially “lost generation”. With recognition of the vulnerability of children as a social group, there was a transnational push to implement protective measures. This shared awareness led to milestones such as the establishment of the United Nations International Children’s Emergency Fund (UNICEF) in December 1946 and, later, the adoption of the Declaration of the Rights of the Child.
The period from 1939 to 1949 not only highlighted the need to protect children worldwide, but also underscored their importance in building a peaceful future. As detailed in La Seconde Guerre mondiale des enfants (The second world war of children), published in September 2024 by Presses Universitaires de France, children embodied hope for postwar nations. They were seen not only as victims of war but also as active participants in shaping a peaceful world.
Schools as foundations of reconstruction
After 1945, schools became central to Europe’s social reconstruction. Seen as spaces of socialisation that included nearly all children, schools were viewed as critical for rebuilding society. Some measures mirrored those introduced after the first world war. Children, particularly those aged 6 to 14 (the typical age for compulsory education in Europe), were tasked with preserving the memory of fallen soldiers, resistance fighters and civilian victims. They cleaned and adorned graves, attended public ceremonies and paid homage to the dead.
However, postwar education went further. In some countries, particularly those that formerly had authoritarian or totalitarian regimes such as Italy and Germany, school curricula underwent significant transformation. Lessons on democratic governance and peaceful figures were either reinforced or reintroduced, and history classes began emphasising cultural, political and economic exchanges between nations. These reforms aimed to counteract the nationalist ideologies that had fuelled war and division.
Unlike the post-WWI era, the years after 1945 saw efforts to strengthen ties between nations by fostering connections among their youngest citizens. Programs promoting international school exchanges flourished. French students corresponded with Canadian peers, British children sent books to Germans and Swedish students traveled to Belgium.
Germany hosted one of the most ambitious programs: the US-led “World Friendship Among Children Program”. This initiative included pen-pal projects, student travel and even the symbolic adoption of war orphans by classrooms. The program also established the “World Friendship Council of the Future”, where young people proposed initiatives for international dialogue, mimicking the operations of newly formed organisations such as the United Nations, UNESCO (United Nations Educational, Scientific and Cultural Organization) and the World Health Organization.
It was also in Germany that Houses of America, or Youth Centres, were established. While the goal was to offer children sports and cultural activities, they were primarily seen by Americans as tools of soft power and political instruments to (re)educate youth about the principles of democracy.
Active pedagogy for European education
Indeed, after 1945, educating children for peace also meant educating them about democracy. Across Western Europe, teaching methods inspired by progressive education movements – championed by figures such as Maria Montessori, Ovide Decroly and John Dewey – became widespread.
For educational leaders, merely teaching democratic principles wasn’t enough: children needed to practice them. Classrooms became miniature societies where students elected class representatives, voted on school matters and debated everyday and political issues. This active engagement aimed to cultivate civic responsibility and critical thinking.
Some postwar experiments went further. Communities of children or “children’s republics” emerged across Europe to provide homes for children who had lost their homes and parents. While their primary mission was humanitarian, these communities were also intended to form the foundations of new, peaceful societies. Self-governance was central to their goal of preparation for active citizenship. In the Repubblica dei Ragazzi (boys’ republic) in Santa Marinella, near Rome, children ran their own court, deliberative assembly and union.
Ideological differences
While schools are indeed the cornerstone of global peacebuilding, debates about fostering peace go beyond the classroom to encompass all aspects of children’s lives. This includes the private sphere, as evidenced by numerous transnational legislative efforts to ban violent comic books and war-themed toys, which are accused of inciting aggression in children and thus threatening a peaceful future.
This surge of post-WWII initiatives underscores the fact that educating for peace and democracy was a European – if not global – project. However, its interpretation varied depending on country and region. In France, West Germany and Italy, the project was rooted in liberal ideals; in Eastern Europe, it reflected a different understanding of democracy.
In the West, the focus was on the individual, with boys and girls assigned traditional, gendered roles: girls were encouraged to become future mothers, while boys were groomed to be workers contributing to economic growth. In contrast, the Eastern model emphasised collective values within a socialist framework, promoting more egalitarian relationships between boys and girls, albeit in service of political objectives.
Regardless of ideological differences, these post-1945 initiatives left a lasting legacy. Their influence can still be seen today in school activities such as student elections and class trips, which continue to echo the democratic ideals of that era.
Camille Mahé ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’a déclaré aucune autre affiliation que son organisme de recherche.
Statement by Ambassador Barbara Woodward, UK Permanent Representative to the UN, at the UN Security Council meeting on Syria.
I will make three points today.
First, a little over two months have passed since the interim authorities took control of Damascus, offering hope for a brighter future and a more peaceful future for the Syrian people.
We are encouraged by efforts made in the weeks since and we welcome the interim authorities’ pledges to form an inclusive transitional government, leading to free and fair elections.
We welcome the engagement between the Special Envoy, his office and the interim authorities and his plans to return to Damascus shortly.
As the Special Envoy has said, Syria’s political transition cannot afford to fail.
As Syrians take the next steps towards a political process, we expect to see appointments to the transitional government and the recently announced Legislative Council and the Preparatory Committee which represent the diversity of Syrian society.
We hope there will be a clear process and timeline for this next phase of the transition, which respects the rights and safety of all Syrians.
Second, we have been clear, as others have too, that Syrians should chart their own future and that a political process should be Syrian-owned and Syrian-led.
However, as Special Envoy Pederson and ASG Msuya both reminded us, it is essential that the international community step in and support as the challenges are vast and humanitarian needs acute.
It is imperative that the UN, alongside the international community, plays a vital role in supporting Syrians to stabilise and then rebuild their country.
The deep scars and the damage of over a decade of conflict cannot be healed in a matter of months.
Last week the UK, working with the World Food Programme, committed over $3.7 million to the ‘Grain from Ukraine’ initiative which will enable Ukraine to support the most vulnerable Syrians and alleviate suffering.
So we endorse the Special Envoy’s call that we must also take this opportunity to scale up early recovery and sustainable programming to enable Syrians to feed themselves, to keep the lights on, to create jobs and build a better future.
Finally, we welcome the visit to Damascus of the Director-General of the Organisation for the Prohibition of Chemical Weapons on 8 February.
This marks a positive step forward.
We must use this window of opportunity and the work to support the OPCW and Syria to declare and destroy Assad’s remaining chemical weapons programme, for a more stable and secure Syria.
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February 12, 2025
Albany, NY
Governor Kathy Hochul today announced that she is demanding the New York Power Authority suspend its proposed electric rate hike, protecting consumers from sky-high utility costs that are making New York State less affordable.
“Today, I’m calling for an end to the Power Authority’s unacceptable proposal to raise electric rates on its customers statewide,” Governor Hochul said. “Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign in these astronomical costs. While I recognize the Power Authority’s critical importance in providing invaluable, clean, baseload power from its large hydroelectric power plants Upstate, I expect NYPA to go back to the drawing board, shelve this existing proposal, and figure out a better way forward.”
Source: The Conversation – Canada – By Jennifer Clapp, Professor and Canada Research Chair in Global Food Security and Sustainability, and Member of the International Panel of Experts on Sustainable Food Systems, University of Waterloo
History has shown us again and again that, so long as inequality goes unchecked, no amount of technology can ensure people are well fed.
Today, the world produces more food per person than ever before. Yet hunger and malnutrition persist in every corner of the globe — even, and increasingly, in some of its wealthiest countries.
The major drivers of food insecurity are well known: conflict, poverty, inequality, economic shocks and escalating climate change. In other words, the causes of hunger are fundamentally political and economic.
The urgency of the hunger crisis has prompted 150 Nobel and World Food Prize laureates to call for “moonshot” technological and agricultural innovations to boost food production, meaning monumental and lofty efforts. However, they largely ignored hunger’s root causes — and the need to confront powerful entities and make courageous political choices.
Food is misallocated
To focus almost exclusively on promoting agricultural technologies to ramp up food production would be to repeat the mistakes of the past.
The Green Revolution of the 1960s-70s brought impressive advances in crop yields, though at considerable environmental cost. It failed to eliminate hunger, because it didn’t address inequality. Take Iowa, for example — home to some of the most industrialized food production on the planet. Amid its high-tech corn and soy farms, 11 per cent of the state’s population, and one in six of its children, struggle to access food.
Even though the world already produces more than enough food to feed everyone, it’s woefully misallocated. Selling food to poor people at affordable prices simply isn’t as profitable for giant food corporations.
They make far more by exporting it for animal feed, blending it into biofuels for cars or turning it into industrial products and ultra-processed foods. To make matters worse, a third of all food is simply wasted.
Meanwhile, as the laureates remind us, more than 700 million people — nine per cent of the world’s population — remain chronically undernourished. A staggering 2.3 billion people — more than one in four — cannot access an adequate diet.
Women queue up to receive food distributed by local volunteers at a camp in Somalia in May 2019. Conflicts hinder the effective delivery of humanitarian aid during food security crisis. (AP Photo/Farah Abdi Warsameh)
Confronting inequity
Measures to address world hunger must start with its known causes and proven policies. Brazil’s Without Hunger program, for example, has seen dramatic 85 per cent reduction in severe hunger in just 18 months through financial assistance, school food programs and minimum wage policies.
Our politicians must confront and reverse gross inequities in wealth, power and access to land. Hunger disproportionately affects the poorest and most marginalized people, not because food is scarce, but because people can’t afford it or lack the resources to produce it for themselves. Redistribution policies aren’t optional, they’re essential.
Governments must put a stop to the use of hunger as a weapon of war. The worst hunger hotspots are conflict zones, as seen in Gaza and Sudan, where violence drives famine. Too many governments have looked the other way on starvation tactics — promoting emergency aid to pick up the pieces instead of taking action to end the conflicts driving hunger.
Governments must also break the stranglehold of inequitable trade rules and export patterns that trap the poorest regions in dependency on food imports, leaving them vulnerable to shocks.
Instead, supporting local and territorial markets is critical in helping build resilience to economic and supply chain disruptions. These markets provide livelihoods and help ensure diverse, nutritious foods reach those who need them.
Mitigating and adapting to climate change requires massive investments in transformative approaches that promote resilience and sustainability in food systems.
Agroecology — a farming system that applies ecological principles to ensure sustainability and promotes social equity in food systems — is a key solution, proven to sequester carbon, build resilience to climate shocks and reduce dependence on expensive and environmentally damaging synthetic fertilizers and pesticides.
More research should explore agroecology’s full potential. And we must adopt plant-rich, local and seasonal diets, ramp up measures to tackle food waste and reconsider using food crops for biofuels.
This means pushing back against Big Meat and biofuel lobbies, while investing in climate-resilient food systems.
Bold political action needed
This is not to say that technology has no role — all hands need to be on deck. But the innovations most worth pursuing are those that genuinely support more equitable and sustainable food systems, and not corporate profits. Unless scientific efforts are matched by policies that confront power and prioritize equity over profit, then hunger is likely to here to stay.
The solutions to hunger are neither new nor beyond reach. What’s missing is the political will to address its root causes.
This message is shared by my colleagues with the International Panel of Experts on Sustainable Food Systems, IPES-Food, whose work covers a range of expertise and experience. Hunger persists because we allow injustice to endure. If we are serious about ending it, we need bold political action, not just scientific breakthroughs.
Jennifer Clapp receives funding from the Canada Research Chairs program and the Social Sciences and Humanities Research Council of Canada. She is a member of the International Panel of Experts on Sustainable Food Systems (IPES-Food).
At a recent summit in Dar Es Salaam, Tanzania, leaders of eight African states released a statement calling for an immediate and unconditional ceasefire in the Democratic Republic of Congo (DRC).
The statement comes after a flareup in fighting in eastern DRC that has killed hundred and wounded thousands.
On Jan. 31, 2025 the rebel group known as the March 23 Movement (M23) captured the city of Goma in the eastern DRC. At a news conference, Corneille Nangaa, leader of the Congo River Alliance that includes M23, declared that they were there to stay and would march to the DRC’s capital of Kinshasa.
The World Health Organization reported 900 bodies had been recovered from the streets of Goma, with about 3,000 people injured and thousands forced to flee. The Congolese government said that it had started burying more than 2,000 people and thousands had been displaced.
On Feb. 4, 2025, the Congo River Alliance declared a ceasefire. This isn’t the first time M23 attacked Goma and then declared a ceasefire. The renewed violence is the latest in a long-running conflict in the region that has grown to involve local militias, regional countries and foreign companies seeking to exploit Congo’s mineral wealth.
However, a faction within the CNDP disapproved of the Goma agreement and created a militia group in 2012 that came to be known as M23. A United Nations group has said senior government officials from Rwanda and Uganda have provided M23 with weapons, intelligence and military support.
The roots of the conflict lie in the history of Belgium’s colonial rule of the region that pitted the Tutsi and Hutu ethnic groups against each other. In 1956, ethnic tensions in Rwanda forced many Tutsis to seek refuge in Congo (then Zaire), Uganda, Tanzania and beyond.
Tutsis who fled to Congo and Uganda were not accorded full citizenship rights, and this led to resentment.
In the mid-1990s, Rwandan President Paul Kagame and Ugandan President Yoweri Museveni collaborated with Congolese rebel leader Laurent-Désiré Kabila to create the AFDL. The group waged the First Congo War from October 1996 to May 1997 that ended with the overthrow of the DRC’s long-time ruler, Mobutu Sese Seko. Kabila became president.
Kagame and Museveni fought along with Congolese Tutsis to assert their citizenship once the war ended. However, when Kabila turned against his backers, it led to the waged Second Congo War from 1998 to 2003, with Rwandan and Ugandan-backed militas fighting against the DRC government.
The FDLR was implicated in orchestrating the 1994 Rwandan genocide that killed 800,000 people, most of whom were Tutsi. The FDLR has been based in eastern Congo since 1996, after the Rwandan Patriotic Front, led by Kagame and others, pushed them out of Rwanda.
Fear of the FDLR was one of the drivers for the First Congo War. In a recent interview with CNN, Kagame said:
“If you want to ask me, is there a problem in Congo that concerns Rwanda? And that Rwanda would do anything to protect itself? I’d say 100 per cent.”
Control of minerals
Before the fall of Goma in February 2025, M23 captured mineral-rich areas like Rubaya, the largest coltan mine in the Great Lakes region; Kasika and Walikale, where there are numerous gold mines; Numbi, which is rich with tin, tungsten, tantalum and gold; and Minova, which is a trade hub.
In December 2024, a UN expert group noted that M23 exported about 150 tonnes of coltan to Rwanda, and was involved with Rwanda’s production, leading to “the largest contamination of mineral supply chain.”
One of the central dynamics of this conflict is the control and profit from natural resources. The DRC is rich in minerals and metals needed around the world, including the critical minerals used in the technology and renewable energy industries.
The World Bank has noted that the “DRC is endowed with exceptional mineral resources.” However, administration of the sector is dysfunctional and handicapped by insufficient institutional capacity.
Ending the M23 insurgency requires taking Tutsi citizenship seriously. Politics researcher Filip Reyntjens has argued that any peaceful transition in the DRC needed to take regional countries seriously. He emphasized:
“By turning a blind eye to Rwanda’s hegemonic claims in eastern Congo, the future stability of the region remains in doubt. Rwanda may once again, in the not too distant future, become the focal point of regional violence.”
A factor contributing to the violence is the lack of measures to ensure ceasefires are respected by different parties engaged in conflicts. In addition, armed groups and their backers have not been effectively prosecuted. A 2010 UN mapping report describes 617 alleged war crimes, crimes against humanity and human rights between March 1993 and June 2003. No perpetrators have never been prosecuted.
Furthermore, there must be strong international efforts to prevent conflict minerals from getting into international supply chains. M23 and other militias smuggle Congo’s minerals through regional neighbours, where they are considered conflict-free.
Tech giants that rely on these minerals must do more to scrutinize where they come from. Equally, all of us, as consumers of products made from the DRC’s minerals, must demand accountability.
It’s usually only men who participate in such talks. Women, who endure the brutality of sexual violence and other human rights violations, must be represented in peace and security talks.
In his 2018 Nobel Peace Prize acceptance speech, Congolese physician and human rights activist Dr. Dennis Mukwege noted that:
“What is the world waiting for before taking this into account? There is no lasting peace without justice. Yet, justice in not negotiable. Let us have the courage to take a critical and impartial look at what has been going on for too long in the Great Lakes region.”
To effectively respond to the plight of the people of eastern Congo will take more than situational and short-term intervention. National, regional and international parties must negotiate peaceful and just access to minerals. Peace and security in Congo will happen when sectarian and partisan politics is replaced with commitment to democracy, sovereignty and peoples’ well-being.
Evelyn Namakula Mayanja receives funding from the Social Sciences and Humanities Research Council Canada and Carleton University.
Source: United States Senator for Kentucky Rand Paul
FOR IMMEDIATE RELEASE:
February 12, 2025
Contact:Press_Paul@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) reintroduced the National Right to Work Act to preserve and protect the free choice of individual employees to form, join, or assist labor organizations or to refrain from such activities.
“The National Right to Work Act ensures all American workers have the ability to choose to refrain from joining or paying dues to a union as a condition for employment,” said Dr. Paul. “Kentucky and 26 other states have already passed right to work laws. It’s time for the federal government to follow their lead.”
“More Congressmen and Senators than ever before cosponsored the National Right to Work Act in the previous Congress, and we’re grateful to Senator Paul for introducing it again this year. Union bosses don’t get to decide what policies are “pro-worker.” That’s up to workers themselves, and the overwhelming majority support the Right to Work principle that union dues should always be a voluntary choice. The National Right to Work Act protects that choice. Anyone who truly stands with workers and against the union boss special interests that seek to force workers to pay union dues should support Senator Paul’s bill,” said Mark Mix, President of National Right to Work Committee.
The legislation is cosponsored by U.S. Senators Ted Cruz (R-TX), Chuck Grassley (R-IA), Roger Wicker (R-MS) Tommy Tuberville (R-AL), Cynthia Lummis (R-WY), Katie Britt (R-AL), Thom Tillis (R-NC), Mike Rounds (R-SD), James Lankford (R-OK), Tim Scott (R-SC), Cindy Hyde-Smith (R-MS), Rick Scott (R-FL), Pete Ricketts (R-NE), Mike Crapo (R-ID), Ted Budd (R-NC), John Barrasso (R-WY), and Mike Lee (R-UT).
Consistent with his continued efforts to reduce the massive size of government, Dr. Paul’s legislation does not add to existing federal law but instead deletes existing federal forced unionism provisions.
The National Right to Work Act repeals six statutory provisions that allow private-sector workers, and airline and railroad employees, to be fired if they don’t surrender part of their paycheck to a union. Dr. Paul’s legislation will put bargaining power back where it belongs: in the hands of the American workers.
Source: United Kingdom – Executive Government & Departments
Gozetotide binds to the cancer cells with prostate-specific membrane antigen (PSMA) on their surface, making them visible during the PET scan.
The Medicines and Healthcare products Regulatory Agency (MHRA) has today, 12 February 2025, approved gozetotide (brand name Illuccix) to be used in a type of medical imaging procedure called a Position Emission Tomography (PET) scan which is used to detect specific types of cancer cells in adults with prostate cancer.
Gozetotide binds to the cancer cells with prostate-specific membrane antigen (PSMA) on their surface, making them visible during the PET scan.
This gives healthcare professionals valuable information about the disease to help inform treatment options.
The pharmaceutical form of this medicine is administered as one solution for injection.
Julian Beach, MHRA Interim Executive Director of Healthcare Quality and Access, said:
“Patient safety is our top priority, which is why I am pleased to confirm approval of gozetotide to detect specific types of cancer cells in adults with prostate cancer.
“We’re assured that the appropriate regulatory standards of safety, quality and effectiveness for the approval of this new formulation have been met.
“As with all products, we will keep its safety under close review.”
A number of pivotal and supportive studies from the literature were presented to demonstrate efficacy and safety in the proposed indication, which are summarised in the Summary of Product Characteristics (SmPC).
Like all medicines, this medicine can cause side effects, although not everybody gets them.
Some of the potential side effects include a temporarily increased blood level of a digestive enzyme (amylase), constipation, feeling weak, and warmth where the injection site is given.
For the full list of all side effects reported with this medicine, see Section 4 of the Patient Information Leaflet (PIL) or the SmPC available on the MHRA website.
Anyone who suspects they are having a side effect from this medicine are encouraged to talk to their doctor, pharmacist or nurse and report it directly to the MHRA Yellow Card scheme, either through the website (https://yellowcard.mhra.gov.uk/) or by searching the Google Play or Apple App stores for MHRA Yellow Card.
ENDS
Notes to editors
The new marketing authorisation was granted on 12 February 2025 to TELIX PHARMACEUTICALS (UK) LIMITED
This product was submitted and approved via a national procedure.
More information can be found in the Summary of Product Characteristics and Patient Information leaflets which will be published on the MHRA Products website within 7 days of approval.
The Medicines and Healthcare products Regulatory Agency (MHRA) is responsible for regulating all medicines and medical devices in the UK by ensuring they work and are acceptably safe. All our work is underpinned by robust and fact-based judgements to ensure that the benefits justify any risks.
The MHRA is an executive agency of the Department of Health and Social Care.
For media enquiries, please contact the newscentre@mhra.gov.uk, or call on 020 3080 7651.
With the acquisition of a central Preston property, Preston City Council is launching a night service.
The aim of the service is to work with rough sleepers in taking steps to get them off the streets and into accommodation, whilst offering them safety, support and advice to help them gain independence.
Supported by MEAM (Making Every Adult Matter) a consultation was carried out over a six-month period, by Preston City Council’s Housing Advice Services and Rough Sleeper Initiative team (RSI).
Led by Preston City Council’s Service User Involvement Worker, a small peer group made up of frontline workers and service users, gave feedback on what a nighttime provision could offer.
The most common answer from service users when asked what was needed was ‘more beds’.
Preston City Council is committed to delivering this, especially for vulnerable, homeless women, whose numbers are growing, and who need gender specific accommodation alongside trauma-informed help and recovery.
Based on the feedback, the night service, which plans to open its doors in March 2025, will comprise of cubicles for up to 14 people, and allocate places based on referrals from the Outreach Team working with our partners.
The plans around increasing accommodation options for rough sleepers will see a focus on trauma informed recovery and breaking the cycle. Preston City Council will build on the successes of the Rough Sleeper Initiative Outreach
The team who have worked relentlessly for positive change on challenging cases. From the Target Priority Group identified in 2021, 90% are now in accommodation.
Alongside recovery models, Preston City Council will be addressing ways to aid prevention due to an increase in single homeless applications, and to avoid them becoming entrenched rough sleepers.
Working with partner agencies to offer support around mental health, drugs and alcohol addiction in a supportive and inclusive environment, service users will also be able to partake in activities and support groups, helping them take positive steps towards gaining independence.
Councillor Nweeda Khan, Cabinet Member for Communities and Social Justice at Preston City Council said:
Preston City Council firmly believes that any individual sleeping on the streets in our city is unacceptable, and we stand committed to getting people off the streets and into secure and safe accommodation. National challenges around homelessness and housing have risen dramatically in recent years and we work hard with our community partners to stem the tide of increasing numbers of homelessness in Preston.
We thank all our partners who time to take part in the research that was carried out.
Currently there is limited emergency accommodation in the city and the Council have made opening a new Night Shelter Service a priority project, supported as part of a wider package, by the limited funding it has available, to tackle the problem.
The Night Service will also provide longer term help and solutions through gender specific pathways, to more permanent housing and work with clients to break the cycle of an ‘on the street lifestyle.
The Council continues to explore all avenues for additional funding to support homelessness and rough sleeping.
An agreement has now been reached with the Foxton Centre, a charity that supports vulnerable communities in Preston. The Council will continue to support the Foxton Day Centre which is, according to data from the Foxton Centre, is used mainly for food during the breakfast session, some showers and some laundry.
John Parkinson, Chair of the Trustees at the Foxton Centre said:
We welcome PCC investment in a night shelter in the city. This adds to the range of facilities provided in Preston to support rough sleepers and address the growing problem of homelessness.
The agreement between PCC and The Foxton to continue to invest in the Foxton Day Centre and create a steering group to coordinate and build on the range of partnerships is a positive step forward. This will enable the further development of joined up services including medical, mental health, addiction and legal support which are currently in place at the Day Centre.
Multi-agency coordination between statutory and voluntary sector providers is the most effective way to use the resources needed to support rough sleepers.
As well as nighttime support, Preston’s Severe Weather Emergency Protocol (SWEP), was activated in early January and has seen 44 people assisted during its operation, 10 have moved on for a variety of reasons and 34 of those currently in accommodation will be allocated support workers.
SWEP is a good practice requirement offered by Preston City Council Housing and Homelessnes Services to ensure that people sleeping rough are not at risk of harm during extreme cold or severe weather.
Drop-in Sessions
Preston City Council is holding a series of drop-in sessions at the Town Hall between 4 – 8pm, in collaboration with MEAM for local businesses, answering questions and offering more information about the night service.
Follow-up workshops are being offered for those interested in being involved or discussing ways in working together with the Council and MEAM.
SANTA CLARA, Calif., Feb. 12, 2025 (GLOBE NEWSWIRE) — Cloudera, the only true hybrid platform for data, analytics, and AI, welcomed Tom Brady as a guest speaker during the company’s annual Sales Kick Off, ELEVATE26, on February 11. Brady—interviewed onstage by Cloudera CEO Charles Sansbury and CRO Frank O’Dowd—offered attendees his advice on leadership, perseverance, teamwork, and what it takes to win.
Taking place February 10-13 at the Fontainebleau Miami Beach, Cloudera’s ELEVATE26 marks the beginning of a new fiscal year for the data and AI leader. Brady’s perspective on his personal and professional journey set the tone as the company plans for another successful year. In particular, his advice on how to stay motivated, maintain a solution-first mindset, and excel beyond expectations aligned with the business strategies and goals that Cloudera delivered to its more than 700 staff in attendance.
“As one of the undisputed greatest athletes of all time, Tom was the perfect keynote speaker for our team this week,” said O’Dowd. “Cloudera has an unwavering commitment to being the best at what we do. We’ve had an incredibly successful year and are prepared to continue to lead the AI and data space and model the way into the future.”
“The success we achieved last year is just the beginning,” said Sansbury. “Tom said it best: never settle. That’s exactly the mantra we’re going to bring into 2025 as we continue to push the boundaries of what’s possible for our customers by delivering on the promise of supporting true hybrid, enabling modern data architectures, and accelerating enterprise AI.”
Cloudera is the only true hybrid platform for data, analytics, and AI. With 100x more data under management than other cloud-only vendors, Cloudera empowers global enterprises to transform data of all types, on any public or private cloud, into valuable, trusted insights. Our open data lakehouse delivers scalable and secure data management with portable cloud-native analytics, enabling customers to bring GenAI models to their data while maintaining privacy and ensuring responsible, reliable AI deployments. The world’s largest brands in financial services, insurance, media, manufacturing, and government rely on Cloudera to use their data to solve what seemed impossible—today and in the future.
To learn more, visit Cloudera.com and follow us on LinkedIn and X. Cloudera and associated marks are trademarks or registered trademarks of Cloudera, Inc. All other company and product names may be trademarks of their respective owners.
2024: improved financial results in what remains a degraded environment
Revenues: 526.7 million euros (+10%)*
EBITDA before non-recurring items: 91.1 million euros (+15%)*
Net income: 29.6 million euros (-9%)*
Free cash flow before non-recurring items: 72.1 million euros (+59%)*
Dividend**: €0.40 per share (+11%)
* Change at actual exchange rates (%) ** Proposed to the Annual Shareholders’ Meeting on April 25, 2025
In millions of euros
October 1 – December 31
January 1 – December 31
2024(1)
2023
2024(1)
2023
Revenues
132.5
119.3
526.7
477.6
Change at actual exchange rates (%)
11%
10%
EBITDA before non-recurring items(2)
22.6
19.8
91.1
79.0
Change at actual exchange rates (%)
14%
15%
EBITDA margin before non-recurring items (in % of revenues)
17.1%
16.6%
17.3%
16.5%
Income from operations before non-recurring items(2)
11.9
12.3
49.3
49.1
Change at actual exchange rates (%)
-3%
0%
Net income
8.4
7.7
29.6
32.6
Free cash flow before non-recurring items(2)
22.2
13.2
72.1
45.3
(1) 2024 figures include Launchmetrics since January 23,2024 (2) The definition for performance indicators appears in the Management Discussion of December 31, 2024
Paris, February 12, 2025. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2024. Audit procedures have been performed by the Statutory Auditors. The certification report will be issued at the end of the Board of Director’s meeting of February 27, 2025.
To facilitate analysis of the Group’s results, the accounts of Lectra excluding Launchmetrics (the “Lectra 2023 scope”) are analyzed separately from the Launchmetrics accounts. The detailed 2024 vs 2023 comparisons for the Lectra 2024 scope and for Launchmetrics are based on actual exchange rates, whereas the comparisons for the Lectra 2023 scope are stated on a like-for-like basis.
1. SUMMARY OF THE YEAR 2024
The year 2024 was marked by a severely degraded macroeconomic and geopolitical environment, prompting the Group’s customers to exercise prudence in their investment decisions, though situations varied across geographies and market sectors.
Under these conditions, for the Lectra 2023 scope, orders for new systems were stable, and new SaaS subscriptions grew by 8%, confirming their success and increasing adoption by the Group’s customers.
2024 earnings in line with recent estimates
On October 30, the Group reported that revenues and EBITDA before non-recurring items were expected to be near the lower end of the ranges indicated on February 14, i.e., revenues of 480 million euros and EBITDA before non-recurring items of 85 million euros for the Lectra 2023 scope; and 42 million euros in revenues and EBITDA margin before non-recurring items of over 15% for Launchmetrics, i.e., revenues of 522 million and 91.3 million euros of EBITDA margin before non-recurring items for the Lectra 2024 scope.
In total, full-year 2024 revenues grew 10% to 526.7 million euros and EBITDA before non-recurring items increased 15% to 91.1 million euros.
Successful integration of Launchmetrics
Launchmetrics achieved revenues of 41.2 million euros and an EBITDA before recurring items of 7.0 million euros, and exceeded the Group’s profitability expectations with an EBITDA margin before non-recurring items of 16.9%.
What’s more, this acquisition has considerably expanded Lectra’s SaaS activity, providing the basis for a twofold increase in SaaS revenues to 77.4 million euros at end-2024 and strengthening SaaS’s future potential.
The integration — in terms of processes, teams and products — is already a proven success and enables Lectra to form a coherent set of SaaS activities. Launchmetrics has also contributed its top-level practices in the area of SaaS, thus enriching the customer experience across the Group.
Continuing improvement in the fundamentals of the Group’s business model
The fundamentals of the Group’s business model were substantially improved, notably on the basis of the strict cost control policy implemented since May 2023, and the contribution of Launchmetrics. Recurring revenues increased by 18%, with margins covering nearly all fixed costs. The EBITDA margin before non-recurring items rose 0.8 percentage point, to 17.3%. Free cash flow before non-recurring items generated in 2024 came to 72.1 million euros (+59%) and the Group’s net debt was brought down to 20.6 million euros at December 31, 2024.
2. Q4 2024
Q4 2024 revenues were up 11% compared to Q4 2023, at 132.5 million euros, with Launchmetrics contributing 11.0 million euros.
EBITDA before non-recurring items (22.6 million euros) was up 14% and the EBITDA margin before non-recurring items came to 17.1% (+0.5 percentage points).
Free cash flow before non-recurring items rose sharply to 22.2 million euros (+68%).
Lectra 2023 scope
Currency changes had only a limited impact on revenues and results.
Orders for new systems were stable compared to Q4, 2023, at 38.6 million euros, and new SaaS subscriptions came up to 3.6 million euros (+17%).
Revenues came to 121.5 million euros, up 1%: revenues for new systems were down 6%, while recurring revenues were 5% higher.
EBITDA before non-recurring items was 21.0 million euros and the EBITDA margin before non-recurring items came to 17.3%, up 0.3 percentage point.
3.2024
Full-year 2024 revenues came to 526.7 million euros, up 10% with the following breakdown: 28% of total revenues for new systems, down 5%, 72% of total revenues in recurring revenues, up 18%, including Saas revenues of 77.4 million euros (x2.5).
Launchmetrics, which has been consolidated since January 23, 2024, contributed 41.2 million euros to 2024 revenues.
Gross profit came to 376.9 million euros, up 13%, and the gross profit margin was 71.6%, up 1.8 percentage points over 2023.
EBITDA before non-recurring items came to 91.1 million euros, up 15%, and the EBITDA margin before non-recurring items rose 0.8 point to 17.3%.
Income from operations before non-recurring items amounted to 49.3 million euros, stable compared to 2023. This included a 22.7-million-euro charge for amortization of intangible assets arising from the acquisitions carried out since 2021.
Research and development costs, which were fully expensed in the period and included in fixed overhead costs, represented 12.8% of revenues (11.7% in 2023).
Financial income and expenses represented a net charge of 6.0 million euros (2.8 million euros in 2023) due to higher interest rates and the financing of the Launchmetrics acquisition.
Foreign exchange gains and losses generated a net loss of 2.2 million euros.
Taking into account the amortization of intangible assets, the increase in financial expenses, and an income tax expense of 10.9 million euros, net income amounted to 29.6 million euros, down 9% compared to 2023.
Free cash flow before non-recurring items was significantly higher, at 72.1 million euros (+59%).
A particularly robust balance sheet
At December 31, 2024, the Group had a particularly robust balance sheet with a consolidated shareholders’ equity of 374.4 million euros, a negative working capital requirement of 25.2 million euros and net debt of 20.6 million euros. The net debt consisted of financial debt of 102.5 million euros and cash of 81.9 million euros.
Lectra 2023 scope
Currency changes had only a limited impact on revenues and results.
Orders for new systems (144,9 million euros) were stable compared to 2023.
Orders for perpetual software licenses (11.4 million euros) fell by 18% — as most new software is now sold in SaaS mode— while orders for equipment and accompanying software (113.0 million euros), and for training and consulting (17.3 million euros) rose by 2% and 9%, respectively.
Revenues were up 2% at 485.5 million euros, and recurring EBITDA was up 7% at 84.2 million Euros.
4.DIVIDEND
The Company maintained its attractive shareholder compensation policy with dividends representing a payout ratio of about 40% of net income in 2023 and, as a result of the strong increase in free cash flow, the company has decided on a payout ratio of 50% of net income for the year 2024.
The Board of Directors will propose to the Shareholders’ Meeting of April 25, 2025 the payment of a dividend at €0.40 per share in respect of fiscal year 2024.
5.CHANGES IN GOVERNANCE
Following a disagreement with the Chairman and Chief Executive Officer regarding the role of the Lead Director, Ross McInnes has decided to resign from his position as Director, effective April 24, 2025. The Board of Directors thanks him for his contribution over the past three years.
As of April 25, 2025, the Board of Directors of Lectra will consist of 7 members: Daniel Harari (Chairman and Chief Executive Officer), Nathalie Rossiensky (Lead Director, Independent Director), Céline Abecassis-Moedas (Independent Director), Karine Calvet (Independent Director), Pierre-Yves Roussel (Independent Director), Jérôme Viala (non-Independent Director) and Hélène Viot-Poirier (Independent Director).
6.ASSESSMENT OF THE 2023-2025 STRATEGIC ROADMAP – SECOND PROGRESS REPORT
Launched in 2017, the Lectra 4.0 strategy aims to position the Group as a key Industry 4.0 player in its three strategic market sectors: fashion, automotive and furniture, before 2030. The strategy has been implemented up to now through three strategic roadmaps.
The first strategic roadmap, which covered the 2017-2019 period, established the key fundamentals for the future of the Group.
The second roadmap, which ran from 2020 through 2022, achieved a new dimension for the Group – primarily through the acquisition of Gerber in June 2021 – and opened new perspectives, with a financial position stronger than ever before, an extended worldwide presence, a broader customer base, a powerful product portfolio, a growing number of customers using its new offers for Industry 4.0, and a new brand image.
The Group’s ambition over the 2023-2025 period is to take full advantage of its change in dimension to accelerate growth, to significantly increase the volume of SaaS in revenues, and to seize acquisition opportunities.
Despite the unstable economic and geopolitical climate, Lectra successfully maintained its long-term strategic orientations. Further, all the fundamentals of the Group’s business model improved significantly and customer adoption of the SaaS model accelerated. The Group acquired Launchmetrics and strategic partnerships were concluded with Six Atomic and AQC.
With the commitment of employees and recognition by customers, Lectra stands at the forefront in building a more sustainable future. The Group has taken numerous steps to enhance its offering to reduce environmental impact for its customers, notably through material traceability for fashion, thanks to the acquisition of a majority stake in TextileGenesis in early 2023.
Details of the second progress report on this 2023-2025 strategic roadmap can be found in the December 31, 2024 “Management Discussion and Analysis” document, available on Lectra.com.
7.OUTLOOK
In the challenging environment of 2024, Lectra proved to be highly resilient, confirming the relevance of its strategy and the quality of its fundamentals—crucial assets for the Group’s continued development.
Outlook for 2025
While initial positive signs can be detected, the lack of visibility in what remains an uncertain economic and geopolitical context, could continue to weigh on investment decisions by the Group’s customers going forward.
In this context, the Group has begun the year 2025 with confidence and will pursue its strategy by meeting the needs of its customers as closely as possible via the quality of its offers for Industry 4.0 and by developing its SaaS activity.
As in the previous two years, visibility regarding orders for new systems remains low, with no way of anticipating the timing or magnitude of a possible rebound, which could nevertheless occur during the course of the year.
Recurring revenues, which accounted for 72% of total revenues in 2024, are expected to grow further in 2025, largely on the strength of expanding SaaS activity.
Furthermore, the Group will maintain strict cost controls and anticipates a mix of orders that will favorably impact the gross margin.
In light of the above, Lectra has set the 2025 objective of achieving recurring revenues of over 400 million euros, including 90 million euros of SaaS revenues.
Overall, revenues are expected to be between 550 and 600 million euros, with an EBITDA margin before non-recurring items close to 20%, based on exchange rates at December 31st, 2024, particularly of $1.04/€1.
The Management Discussion and Analysis of Financial Conditions and Results of Operations and the financial statements for Q4 and the fiscal year 2024 are available on lectra.com. First quarter earnings for 2025 will be published on April 24. The Annual Shareholders’ Meeting will take place on April 25, 2025.
About Lectra
As a major player in the fashion, automotive and furniture markets, Lectra contributes to the Industry 4.0 revolution with boldness and passion by providing best-in-class technologies.The Group offers industrial intelligence solutions – software, equipment, data and services – that facilitate the digital transformation of the companies it serves. In doing so, Lectra helps its customers push boundaries and unlock their potential. The Group is proud to state that its 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators.Founded in 1973, Lectra reported revenues of 527 million euros in 2024. The company is listed on Euronext, where it is included in the following indices: CAC All Shares, CAC Technology, EN Tech Leaders and ENT PEA-PME 150.
Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris • France Tel. +33 (0)1 53 64 42 00 – www.lectra.com A French Société Anonyme with capital of €37,966,274 • RCS Paris B 300 702 305
HARTFORD, Conn. — U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the U.S. Attorney’s Office for the District of Connecticut announced on Feb. 7 the return of $328,573 to the victim of a computer support scam as the result of an ICE HSI cybercrime investigation.
According to the complaint (3:24cv840), in February 2024, an elderly woman was tricked by a scammer who mimicked Microsoft customer support. The victim transferred approximately $550,000 to the scammers in two wire transfers. Within two days of the transfers, the victim and a family member reported the incident to the Simsbury Police Department, who then partnered with HSI to investigate the crime. Fortunately, one of the wire transfers, in the amount of $221,000, was reversed by the bank and returned to the victim. ICE HSI special agents traced the remaining money, totaling approximately $328,573, and seized it. The U.S. Attorney’s Office then filed a civil asset forfeiture action to forfeit the money to the government, and HSI special agents and the U.S. Attorney’s Office then worked with the Department of Justice’s Money Laundering and Asset Recovery Section to return the money to the victim on Feb. 4, 2025.
“Cyber scams run by foreign malign actors are becoming more common and more sophisticated every day,” said ICE HSI New England Special Agent in Charge Michael J. Krol. “The victim in this case contacted authorities quickly resulting in the recovery of most of her money by the bank and by HSI — a best case scenario and rare result. It is essential for victims of these kinds of cybercrimes to come forward as soon as possible. We want the public to know that help is available and to reach out immediately if they’ve been victimized by international scammers.”
“The U.S. Attorney’s Office is committed to helping victims of crime, and civil asset forfeiture is a powerful tool that allows the government to return money to victims of fraud schemes,” said Acting U.S. Attorney Silverman. “As we continue to pursue criminal prosecution of the individuals responsible for this and other computer crimes, it is equally important to ensure that the government uses all of its tools to minimize, and in this case, undo, the financial impact these crimes have on victims. This case represents the best case scenario, where nearly every dollar taken from the victim was returned to her. While it can be difficult to come forward and admit that you have been victimized by online scammers, know that federal law enforcement and our state and local partners stand ready to help you to the fullest extent possible.”
This case was investigated by ICE HSI New England’s Hartford Resident Agent in Charge office. If you or someone you know is a victim of elder fraud, call the HSI Tip Line at 877-4-HSI-TIP or the National Elder Fraud Hotline at 833-FRAUD-11.
Follow us on X, formerly known as Twitter, at @HSINewEngland to learn more about HSI’s global missions and operations.
Today, under the direction of the Acting Chairman, Staff Legal Bulletin 14L is now rescinded by the issuance of Staff Legal Bulletin 14M (“SLB 14M”). SLB 14M moves the goalposts smack dab in the middle of this year’s shareholder proposal process. Doing so at this hour creates undue costs and uncertainty for investors and corporations alike. This type of political policy shifting mid-season serves to undercut capital formation, not facilitate it.
SLB 14M implements different rules of the road for the process of excluding shareholder proposals from issuers’ proxy statements.[1] Such proposals include topics relating to poison pills, compensation, emerging issues such as AI, political and lobbying expenditures, and environmental or other issues that shareholders have identified as materially impacting the firm’s financial value.[2] The fact that the change is taking place at this time is significant. As anyone familiar with the shareholder proposal process knows, excluding a proposal from the proxy statement all but guarantees it will never make it to a shareholder vote.
The rescission comes as no surprise given that the shareholder proposal process has become the target of politicized messaging and a preferred punching bag of those who wish to diminish corporate democracy. This is the case even though there are already numerous other mechanisms in place to limit the availability of the proxy ballot to shareholders.[3] Though the shareholder proposal process is designed merely to facilitate a dialogue with investors, today’s actions drowns out investor voices and facilitates corporate monologues instead.[4]
Even though the rescission may not be a surprise, the timing of this action is arbitrary and inequitable. Shareholders have already crafted and submitted their proposals for this season. Corporations and shareholders will incur costs to supplement or alter no-action requests and responses. Further, SEC staff have already issued no-action letter responses related to proposals for this proxy season. Even for those stakeholders and observers who prefer a different approach to this process, the end result is quite possibly disparate treatment not just for shareholders, but for issuers as well. We are so focused on undoing the prior Commission’s agenda that we sow chaos now. By choosing this path, we forsake all consistency, and perhaps even the legitimacy, of the independent, historically staff-governed process to the detriment of all parties.
While costly and confusing, corporations will still have a chance to revise their no-action requests to exclude proposals. Shareholders, of course, will have no such opportunity. The 14a-8 no-action process is fact-intensive, and exactly how a proposal is crafted is often determinative of its exclusion or inclusion. It is now too late for most shareholders to design proposals in line with SLB 14M.
Instead of taking a measured approach that would ensure market stability and a meaningful consideration of cost and benefit, this leadership has rushed out staff guidance for the sake of political expediency, and at significant cost to shareholders, corporations, and SEC staff resources.
[1] SLB 14M rescinds Staff Legal Bulletin No. 14L and, in large part, reinstates previous guidance on staff views relating to the (i)(5) and (i)(7) substantive bases for exclusion. See Staff Legal Bulletin No. 14M. It is important to note that (i)(7) was the most often used exclusion in the 2024 proxy season. See Merel Spierings, the Conference Board, 2024 Proxy Season Review: Corporate Resilience in a Polarized Landscape, H. L. School Forum on Corp. Gov. (Oct. 12, 2024).
[3] For example, shareholders must meet certain ownership and resubmission thresholds to submit a proposal, and proposals are subject to a 500 word limit. See CFR 240.14a-8(b)(1), (d), & (i)(12).
[4] Additionally, shareholder proposals are precatory, or merely advisory, in nature. See CFR 240.14a-8(i)(1).