US companies are canceling investment into China at a faster clip, survey shows

However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. Just over half of the surve


However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. Just over half of the surve
US companies are canceling investment into China at a faster clip, survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: evelyn cheng
Keywords: news, cnbc, companies, canceling, tariffs, clip, shows, companies, investment, trade, china, respondents, report, faster, american, local, foreign, survey


US companies are canceling investment into China at a faster clip, survey shows

Chinese shipping containers are stored beside a US flag after they were unloaded at the Port of Los Angeles in Long Beach, California on May 14, 2019. – Global markets remain on red alert over a trade war between the two superpowers China and the US, that most observers warn could shatter global economic growth, and hurt demand for commodities like oil. (Photo by Mark RALSTON / AFP) (Photo credit should read MARK RALSTON/AFP/Getty Images) MARK RALSTON | AFP | Getty Images

Some American companies in China are speeding up their move away from the mainland as increasing tariffs continue to hurt their businesses. That’s according to a survey released by the American Chamber of Commerce in Shanghai on Wednesday. More than a quarter of the respondents – or 26.5% – said that in the past year, they have redirected investments originally planned for China to other regions. That’s an increase of 6.9 percentage points from last year, the AmCham report said, noting that technology, hardware, software and services industries had the highest level of changes in investment destination. The research, conducted in partnership with PwC, surveyed 333 members of the American Chamber of Commerce in Shanghai. It was conducted from June 27 to July 25 — during the period when U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks, and before the latest escalation in retaliatory tariffs. U.S. firms in the mainland also said restrictions to accessing the local market have made it difficult for them to carry out their business, the report said. Asked about the best possible scenarios in ongoing trade negotiations, more than 40% of respondents said greater access to the domestic market would be the most important outcome to help their businesses succeed. That was followed by more than 28% that ranked improved intellectual property protection as key. The third most hoped-for outcome of the trade talks was “increased purchases of U.S. goods,” at 14.3%, the survey showed. That’s in contrast to the Trump administration’s latest efforts to pressure China into buying more American products, especially in agriculture.

Barred from market access

One of the longstanding complaints U.S. companies have about operating in China is that many industries are closed to foreign businesses. In the sectors that are open, it is difficult to compete with state-owned enterprises or privately owned companies that may benefit from local connections or policies, they say. Allegations of forced transfer of critical technology to Chinese partners and lack of intellectual property protection are just some of the challenges U.S. businesses cite for operating in China. The latest AmCham survey found accessing the local market remained one of the key problems companies faced, with more than half the respondents — or 56.4% — saying that obtaining licenses was not easy.

Still, with no sign of a trade agreement, 2019 will be a difficult year; without a trade deal, 2020 may be worse. AmCham Shanghai and PwC survey

By industry, the one that most sought improved market access was the banking, finance and insurance sector. The high 81% of respondents in that sector seeking a better business environment contrasts with Beijing’s announcements in the last 18 months that it will be relaxing foreign ownership rules in the financial sector. Some measures include allowing majority foreign ownership of a local securities venture and increased foreign ownership of local stocks. However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey.

Tariffs hurting US firms

The U.S. business presence in China remains strong, with American companies and their affiliates raking in more than $450 billion in sales in the Asian country, according to an August report from research firm Gavekal Dragonomics. The analysis also pointed out that sales figure is more than twice the value of U.S. exports of goods and services to China. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. If Washington were to impose all the duties as threatened, essentially all Chinese goods exported to the U.S. will be subject to tariffs by the end of the year. In response to the increasing American duties, Beijing has countered with tariffs of its own on U.S. exports to China.

Just over half of the survey respondents said revenue has decreased as a result of the increased tariffs. One third of them attributed a drop of between 1% and 10% of revenue to the higher duties. Overall profitability did not decline in 2018, the report said. But more respondents said revenue and margins declined last year, especially compared with operations in other countries. Pessimism levels shot up by 14 percentage points to about 21% — respondents felt less optimistic about the outlook for 2019 due in part to a slowing domestic economy.

Bright spots remain in China

The survey, however, did find some areas of optimism among respondents in China. The pharmaceuticals, medical devices and life sciences category ranked among the industries with the most respondents reporting revenue growth last year. That sector also came in second among those most optimistic about 2019. The AmCham report said the positive outlook was “likely due to government policy changes, including accelerated approvals of foreign drugs.” More than two-thirds of companies in food and agriculture planned to increase investment in 2019, the most of any industry, the report said. Retail and consumer companies also intended to invest more in China, especially in smaller cities where many analysts still see a major growth opportunity. However, businesses are getting ready for a drawn out trade war between the two economic giants. Of those surveyed, 35% expect trade tensions to continue for another 1 to 3 years, while nearly 13% say it will go on for 3 to 6 years. About 17%, however, were even more pessimistic, and predict that the trade conflict will drag on indefinitely. The report added: “Still, with no sign of a trade agreement, 2019 will be a difficult year; without a trade deal, 2020 may be worse.”


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: evelyn cheng
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Amazon expands its online grocery business to India

Amazon is expanding its online grocery business to India as part of its plans for the fast-growing market, the company announced Thursday. The move comes one day after Amazon launched its biggest campus in the world in Hyderabad, India, according to Reuters. The company has invested roughly $5 billion in the first five years of its business there, according to BloombergQuint. Last year, CNBC affiliate CNBC TV-18 reported the company is set to invest another $2 billion in the country. While India


Amazon is expanding its online grocery business to India as part of its plans for the fast-growing market, the company announced Thursday. The move comes one day after Amazon launched its biggest campus in the world in Hyderabad, India, according to Reuters. The company has invested roughly $5 billion in the first five years of its business there, according to BloombergQuint. Last year, CNBC affiliate CNBC TV-18 reported the company is set to invest another $2 billion in the country. While India
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Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: lauren feiner
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Amazon expands its online grocery business to India

Amazon Founder and CEO Jeff Bezos addresses the audience during a keynote session at the Amazon Re:MARS conference on robotics and artificial intelligence at the Aria Hotel in Las Vegas, Nevada on June 6, 2019.

Amazon is expanding its online grocery business to India as part of its plans for the fast-growing market, the company announced Thursday.

Amazon Fresh will be available to customers in some parts of Bengaluru through its main India website and app, the company said, and it will later be rolled out to other cities. The service will deliver groceries within two hours between 6 a.m. and midnight, according to a press release.

The move comes one day after Amazon launched its biggest campus in the world in Hyderabad, India, according to Reuters. The campus will serve as an outpost for 15,000 employees and sprawl over 9.5 acres, Reuters reported, saying the company currently has 62,000 employees in the country.

Amazon has already invested heavily in India, with hundreds of open positions listed in the region as of January, including in its retail and marketplace divisions. The company has invested roughly $5 billion in the first five years of its business there, according to BloombergQuint. Last year, CNBC affiliate CNBC TV-18 reported the company is set to invest another $2 billion in the country.

While India’s large population represents a huge opportunity for Amazon, local regulations could also slow down its growth in the region. India’s new e-commerce law came into effect in February, banning companies like Amazon and its local competitor Flipkart from selling products from companies in which they have an equity stake. Analysts estimated the rules would have a short-term impact on the e-commerce companies while they build new models to comply with the rules.

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WATCH: How America’s biggest grocer is fighting back against Amazon and Walmart


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: lauren feiner
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Texas ransomware attacks show big gaps in cyber defenses — expect more like them

The ransomware attacks against more than 20 Texas towns this week are significant. That’s because local governments commonly share single service providers, making many vulnerable at once. Two Texas municipalities caught up in the recent spate of ransomware have now confirmed that an unnamed managed service provider was exploited. “Ransomware is a threat that basically everyone is facing,” Simonds said, including local governments and counties, large cities and utility providers. Two of the larg


The ransomware attacks against more than 20 Texas towns this week are significant. That’s because local governments commonly share single service providers, making many vulnerable at once. Two Texas municipalities caught up in the recent spate of ransomware have now confirmed that an unnamed managed service provider was exploited. “Ransomware is a threat that basically everyone is facing,” Simonds said, including local governments and counties, large cities and utility providers. Two of the larg
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Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: kate fazzini
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Texas ransomware attacks show big gaps in cyber defenses — expect more like them

The ransomware attacks against more than 20 Texas towns this week are significant. Though little is known about the origins of the attacks, the spread of ransomware across small-town America has exposed a deep problem in how the country approaches cybersecurity. That’s because local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious activity by nation-states, and there are clear indications this will happen again in the future. Ransomware, which is malicious software that spreads across networks and shuts down computers until a ransom is paid, can have a significant impact on the technology that runs local services, including water, power, wastewater treatment and emergency services.

Shared service providers, small towns

Small towns can’t afford significant information technology departments, so they frequently outsource those services to managed service providers, who in turn use the same software and same applications for all of the governments they serve, explains Chris Morales, head of security analytics for Vectra AI, a cyberthreat detection company. That ubiquity makes them vulnerable to one big attack and provides a big target to criminal hackers who want to increase their odds by hitting as many at once as possible, he said. Two Texas municipalities caught up in the recent spate of ransomware have now confirmed that an unnamed managed service provider was exploited. There is no quick, easy solution to this problem, said Morales. “They work off a tax budget,” Morales said. “Can you imagine telling taxpayers you are spending millions on cybersecurity when there are potholes in the roads?” In addition, small towns aren’t subject to wider initiatives to secure government infrastructure, such as the relatively recent designation of elections infrastructure as critical. Indeed, smaller towns and cities are “largely under-funded, and live on what we call the ‘edge of existence’ in terms of cyber,” said George Simonds, president of cybersecurity company InfraShield and founder of the International Critical Infrastructure Security Institute. “Ransomware is a threat that basically everyone is facing,” Simonds said, including local governments and counties, large cities and utility providers. Simonds agreed that there is no quick budgetary fix for the problem.

Ransomware as a cover story

This long-term, widespread budgetary issue is a problem, because while criminals may be exploiting cities in this latest round of attacks, hostile nation-states often use attacks like these as a convenient cover for more insidious activity. Two of the largest-ever single-incident ransomware attacks, known as WannaCry and NotPetya, took place in 2017. The attacks shut down health-care services by Britain’s NHS, hobbled the logistics operations of shipping giant AP Moeller-Maersk and stymied the production of the HPV vaccine by drugmaker Merck, among a slew of other case studies. But the attacks weren’t “ransomware” in the traditional sense. These attacks netted a relatively paltry profit for the instigators and are largely believed to have served as a way to spread chaos rather than obtain funds. WannaCry was ultimately attributed by the U.S. government to North Korea and NotPetya to the Russian military. The Texas attacks have not yet been attributed to any group, and investigating the origin of the attackers is taking a backseat — as it usually does — to containing the situation, according to the state’s Department of Information Resources. But if city systems are susceptible to this kind of damage, even if from simple criminals, they would be just as susceptible to an attack from other hostile forces. The DIR originally said 23 towns had been affected, then it lowered the number to 22 without explanation.

A worrisome connection to services

For years, government pundits have warned that nation-state attackers, whether from Iran, Russia or China, could directly take down one of the country’s critical industries, often through supposedly highly sophisticated processes and long-term hacks. But the ransomware incidents of 2017 and the relative ease ransomware criminals have had in attacking U.S. cities — including major hubs such as Baltimore, Atlanta, San Francisco and Albany — show the vulnerability of local government infrastructure is plenty worrisome. “The fact that we are seeing an acceleration of attacks that are reportedly successful tells me that we have not prepared,” said Eddie Habibi, CEO of industrial systems security company PAS Global. While many industrial systems are administered on unique systems that “require greater sophistication,” Habibi explained, “some of these [ransomware] attacks are made on the Windows operating system that is used to run the utilities that run power plants or water utilities. Consequences of attacks on the industrial sector can be a lot more serious than on data,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: kate fazzini
Keywords: news, cnbc, companies, attacks, defenses, ransomware, expect, systems, providers, texas, cities, gaps, service, local, towns, big, infrastructure, cyber


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Alarm in Texas as 23 towns hit by ‘coordinated’ ransomware attack

Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources. Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities. “The State of


Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources. Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities. “The State of
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Alarm in Texas as 23 towns hit by 'coordinated' ransomware attack

Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources.

Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. In many cases, ransomware significantly damages computer hardware and linked machinery and leads to days or weeks with systems offline, which is why it can be so costly to cities.

According to a weekend update by the Texas DIR, the attacks started Friday morning and though the locations aren’t named, “the majority of these entities were smaller local governments.”

The attacks follow recent state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums — either in ransom demands to criminals or in repairs for the damaged caused by them. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities.

“The State of Texas systems and networks have not been impacted. It appears all entities that were actually or potentially impacted have been identified and notified,” the DIR said. While the state has determined that one “threat actor” was responsible for all 23 attacks, they have not yet determined who was responsible. “Investigations into the origin of this attack are ongoing; however, response and recovery are the priority at this time,” the department said.

Texas is being assisted by numerous federal and state agencies, including FEMA, the Department of Homeland Security, Texas A&M’s Information Technology and Electronic Crime Unit and the Texas Military Department, which includes branches of the National Guard.

This is a developing story. Check back for updates.

Follow @CNBCtech on Twitter for the latest tech industry news.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: kate fazzini
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Trade war is turning China’s local manufacturers to the domestic market, says e-commerce giant JD.com

As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. “Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer. Importantly, JD.com’s margin ticked up sha


As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. “Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer. Importantly, JD.com’s margin ticked up sha
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Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: evelyn cheng arjun kharpal, evelyn cheng, arjun kharpal
Keywords: news, cnbc, companies, billion, turning, ecommerce, jdcom, yuan, quality, market, huang, chinese, products, war, domestic, net, trade, local, manufacturers, giant, company


Trade war is turning China's local manufacturers to the domestic market, says e-commerce giant JD.com

Several boxes of goods, bought from JD.com, are stacked on the floor.

BEIJING — Chinese e-commerce giant JD.com sees a business opportunity in factories that have been affected by trade tensions between the world’s two largest economies, the company’s chief financial officer told CNBC on Wednesday.

As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. Chinese exports to the U.S. have fallen for eight straight months, according to China Customs data from Wind Information.

“Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer.

“This is a phenomena actually already happening for quite some time, slowly, that there are excess capacities for those manufacturing facilities,” Huang said. “So there are a lot of very, very low-priced products at good quality they used to produce (as) branded products for global brands. So we think it’s a good opportunity for us to reach down to those quality manufacturers, so we can provide those products at a really good value to our consumers.”

JD.com’s shares surged nearly 13% in New York trading overnight after the company delivered second quarter numbers showing exactly what the market wanted — profitability.

On Tuesday, the Chinese e-commerce giant reported these results for the June quarter:

Net revenue of 150.3 billion yuan ($21.9 billion), a 22.9% year-on-year rise

Net income attributable to ordinary shareholders of 618.8 million yuan ($90.1 million), compared to a net loss in the same period last year.

Importantly, JD.com’s margin ticked up sharply and management raised adjusted net income guidance to between 8 billion yuan and 9.6 billion yuan for the full year. JD has reported full year losses for the past three years. That improving profitability picture helped propelled shares higher in U.S. trade on Tuesday, with the company adding about $5 billion to its market capitalization.

“The street didn’t expect them to do well on the bottom line … this is not (just) going to be the first time, it’s going to be the beginning of a new trend,” Tian Hou, founder and CEO of T.H. Capital, told CNBC’s “Street Signs” on Wednesday.

For CFO Huang, the latest results indicate that the company’s spending on warehouses, delivery people and other investments are beginning to pay off. He pointed out that fulfillment expenses as a percentage of net revenues decreased to 6.1% in the second quarter, the lowest since the company went public in 2014. The IPO was the last time Huang spoke with the media before sitting down on Wednesday with CNBC, he said.

Fulfillment costs overall did rise, even if the ratio fell. But the company also revealed Tuesday that its logistics business broke even from an operating income perspective.

“We are seeing operating leverage,” Huang said, noting that July sales numbers are pretty robust.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: evelyn cheng arjun kharpal, evelyn cheng, arjun kharpal
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2020 candidate Kirsten Gillibrand, Rep. Bass say their infrastructure bill will boost local jobs, rebuild communities

Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019. America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that. Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there. It turns out that even our infrastructure policies fall into that category. They blocked workers from new opp


Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019. America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that. Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there. It turns out that even our infrastructure policies fall into that category. They blocked workers from new opp
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Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: senator kirsten gillibrand, d-ny, us rep karen bass, d-ca
Keywords: news, cnbc, companies, infrastructure, say, gillibrand, need, communities, senator, candidate, kirsten, sure, highways, supposed, rep, workers, rebuild, local, jobs, second, policies


2020 candidate Kirsten Gillibrand, Rep. Bass say their infrastructure bill will boost local jobs, rebuild communities

Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019.

America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that.

If you’ve driven around or done some traveling lately, you probably had the exact same thought that we hear from our constituents all the time: our highways, bridges, airports, and public transportation are just not working right.

The same goes for our contaminated water supplies, our patchwork access to high-speed internet, and our crumbling schools.

We have to fix all of it – and here’s how:

First, we need to get building, and finally clean up the state of disrepair that much of our infrastructure is in now.

Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there.

And third, when that new project goes up, we need to make sure it’s bringing the community together – not tearing it apart.

We’re in an extraordinary moment right now in which Americans are demanding that we correct the injustices of the last century – especially government policies that hurt poor communities and communities of color. It turns out that even our infrastructure policies fall into that category.

Here’s a glaring example: Highways. Highways are supposed to connect people. They’re supposed to make it easier for neighbors to come together, for kids to get to school, for workers to get to their jobs. But that’s not what happened when our country built them.

Instead, highways like I-81 in Syracuse, freeways like the 10 in Los Angeles, and so many more in between divide cities and neighborhoods in half. They closed local businesses. They blocked workers from new opportunities and better jobs, and the comfortable life that follows.

Because of those bad policies, in cities all over the country today, you see the same disturbing pattern: green spaces, grocery stores, and good jobs on one side of the overpass, and none of them on the other.


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: senator kirsten gillibrand, d-ny, us rep karen bass, d-ca
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Cisco settles with cybersecurity whistleblower, setting a precedent

Cisco has settled with federal, state and local agencies for $8.6 million in a first-of-its-kind whistleblower case involving a cybersecurity flaw. The case involves attempts by a Denmark-based employee of a Cisco partner, who alerted the company in November 2008 to a flaw in software made for a line of Cisco surveillance cameras. The problem wasn’t fixed for years, and the funds are meant to reimburse the whistleblower and federal, state and local entities to whom Cisco misrepresented the safet


Cisco has settled with federal, state and local agencies for $8.6 million in a first-of-its-kind whistleblower case involving a cybersecurity flaw. The case involves attempts by a Denmark-based employee of a Cisco partner, who alerted the company in November 2008 to a flaw in software made for a line of Cisco surveillance cameras. The problem wasn’t fixed for years, and the funds are meant to reimburse the whistleblower and federal, state and local entities to whom Cisco misrepresented the safet
Cisco settles with cybersecurity whistleblower, setting a precedent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: kate fazzini
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Cisco settles with cybersecurity whistleblower, setting a precedent

Cisco has settled with federal, state and local agencies for $8.6 million in a first-of-its-kind whistleblower case involving a cybersecurity flaw.

The case involves attempts by a Denmark-based employee of a Cisco partner, who alerted the company in November 2008 to a flaw in software made for a line of Cisco surveillance cameras. The problem wasn’t fixed for years, and the funds are meant to reimburse the whistleblower and federal, state and local entities to whom Cisco misrepresented the safety of the cameras.

Though the settlement is relatively small, it’s a case that many companies will be watching closely as they navigate the hundreds or thousands of vulnerability reports they receive from outside researchers each month, and try to parse which ones need attention and which are just hype.

In a statement, Cisco said, “We are pleased to have resolved a 2011 dispute involving the architecture of a video security technology product we added to our portfolio through the Broadware acquisition in 2007. There was no allegation or evidence that any unauthorized access to customers’ video occurred as a result of the architecture.”


Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: kate fazzini
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Louisiana declares state of emergency after cybercriminals attack school districts

In a first for Louisiana, the governor has declared a state of emergency over a cybersecurity issue after a series of attacks shut down phones and locked and encrypted data at three of the state’s school districts. In Louisiana, the incidents have disrupted school districts in Sabine, Morehouse and Ouachita parishes in North Louisiana. The district staff reported this electronic viral attack to local law enforcement, state officials and the FBI. An investigation involving local, state and federa


In a first for Louisiana, the governor has declared a state of emergency over a cybersecurity issue after a series of attacks shut down phones and locked and encrypted data at three of the state’s school districts. In Louisiana, the incidents have disrupted school districts in Sabine, Morehouse and Ouachita parishes in North Louisiana. The district staff reported this electronic viral attack to local law enforcement, state officials and the FBI. An investigation involving local, state and federa
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Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: kate fazzini
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Louisiana declares state of emergency after cybercriminals attack school districts

In a first for Louisiana, the governor has declared a state of emergency over a cybersecurity issue after a series of attacks shut down phones and locked and encrypted data at three of the state’s school districts.

Gov. John Bel Edwards declared the emergency Wednesday. His office has said the threat is “ongoing.”

It’s an escalation of a problem that has plagued states and cities in the past year, including Atlanta, Baltimore, several cities in Florida, and others throughout the country. Cybercriminals have increasingly targeted state and local governments with ransomware tools – which infect an organization’s computer networks and lock up critical files in exchange for a ransom payment.

Unlike most companies that have been hit by ransomware, and can handle ransomware attacks and transactions privately, states and municipalities are often forced to make their payments and woes public. The publicity around the attacks often forces governments to quickly pay up in order to get back online and keep their residents happy. This often forces a new and painful cycle that shows no signs of slowing down.

In Louisiana, the incidents have disrupted school districts in Sabine, Morehouse and Ouachita parishes in North Louisiana. Phones, files and computer equipment have been inaccessible. The districts have said federal law enforcement is helping with the issues.

“The Sabine Parish School System was hit with an electronic virus early Sunday morning,” reads a statement on the school district’s website. “This virus has disabled some of our technology systems and our central office phone system. The district staff reported this electronic viral attack to local law enforcement, state officials and the FBI. All available resources are being utilized to get the district systems back on line. An investigation involving local, state and federal law enforcement is ongoing at this time.”

The emergency declaration allows Louisiana to access resources from the state’s national guard, technology office, state police and other organizations, according to a statement from the governor’s office.

Few states or cities have declared states of emergency over information technology problems, and only one agency – the Colorado Department of Transportation – has made such a declaration in the past, because of a ransomware attack.

Follow @CNBCtech on Twitter for the latest tech industry news.


Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: kate fazzini
Keywords: news, cnbc, companies, districts, louisiana, state, declares, local, law, ransomware, school, emergency, office, cybercriminals, technology, attack, states


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Google’s project to fill local news void announces first city: Youngstown, Ohio

Google has pledged to create a new digital news outlet in Youngstown, Ohio, as part of a multi-million dollar project with McClatchy to fill some of the void left by the closure of local newspapers. The company announced Thursday that Youngstown has been selected as the inaugural city for its joint news initiative, called the Compass Experiment. The Compass Experiment is part of the Google News Initiative, an effort launched by Google in March 2018. As part of the initiative, Google committed to


Google has pledged to create a new digital news outlet in Youngstown, Ohio, as part of a multi-million dollar project with McClatchy to fill some of the void left by the closure of local newspapers. The company announced Thursday that Youngstown has been selected as the inaugural city for its joint news initiative, called the Compass Experiment. The Compass Experiment is part of the Google News Initiative, an effort launched by Google in March 2018. As part of the initiative, Google committed to
Google’s project to fill local news void announces first city: Youngstown, Ohio Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: annie palmer
Keywords: news, cnbc, companies, city, youngstown, local, initiative, project, million, void, experiment, google, weeks, compass, sites, ohio, googles, announces


Google's project to fill local news void announces first city: Youngstown, Ohio

Google has pledged to create a new digital news outlet in Youngstown, Ohio, as part of a multi-million dollar project with McClatchy to fill some of the void left by the closure of local newspapers.

The company announced Thursday that Youngstown has been selected as the inaugural city for its joint news initiative, called the Compass Experiment. The program was rolled out in March with the goal of providing local news coverage to three small to mid-sized U.S. communities that are underserved.

The announced plan for Youngstown comes just a few weeks after the city’s daily newspaper, The Vindicator, said it would close its doors on Aug. 31. It’s just the latest paper to cease operations. The estimated circulation of U.S. daily newspapers plunged to 28.6 million in 2018 from 48.6 million a decade earlier, according to data from Pew Research Center.

Google said it expects to launch the new local news operation in Youngstown later this year.

“There has been much impassioned commentary around the closure of The Vindy after 150 years and we are pleased to play our part alongside McClatchy in helping local journalism develop new approaches for the future,” Richard Gingras, Google’s vice president of news, said in a statement to CNBC. “We want to explore evolving business models in local news that can benefit not only the people of Youngstown, but communities across the country.”

Mandy Jenkins, general manager of the Compass Experiment, said the team has been on the ground in Youngstown for the past several weeks meeting with local leaders and residents to discuss the “area’s news needs” following the Vindicator’s closure.

“We have found many allies eager to help bring this to life,” Jenkins added.

The Compass Experiment is part of the Google News Initiative, an effort launched by Google in March 2018. As part of the initiative, Google committed to spend $300 million over three years on a variety of local journalism projects.

Google said it’s spending millions on the Local Experiments Project, which will ultimately include the Youngstown site and two other local news sites as part of the Compass Experiment.

McClatchy said Thursday that it will select two additional cities in need of digital news sites “over the next several months.”

WATCH: Google’s Philipp Schindler talks about the shift to breaking news


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: annie palmer
Keywords: news, cnbc, companies, city, youngstown, local, initiative, project, million, void, experiment, google, weeks, compass, sites, ohio, googles, announces


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Blue states file suit against IRS over rules on SALT workarounds

Lucas Jackson | ReutersNew Jersey is suing the Internal Revenue Service, challenging new rules that would block states’ attempts to get around a new $10,000 cap for state and local tax deductions. The state’s governor, Democrat Phil Murphy, announced the lawsuit on Wednesday morning, naming Treasury Secretary Steven Mnuchin among the defendants. “It was a complete and total utter politicization of the federal tax code,” he said. This way, the taxpayers could write off the payment as a charitable


Lucas Jackson | ReutersNew Jersey is suing the Internal Revenue Service, challenging new rules that would block states’ attempts to get around a new $10,000 cap for state and local tax deductions. The state’s governor, Democrat Phil Murphy, announced the lawsuit on Wednesday morning, naming Treasury Secretary Steven Mnuchin among the defendants. “It was a complete and total utter politicization of the federal tax code,” he said. This way, the taxpayers could write off the payment as a charitable
Blue states file suit against IRS over rules on SALT workarounds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: darla mercado, annie nova
Keywords: news, cnbc, companies, workarounds, suit, file, blue, jersey, irs, state, treasury, federal, local, rules, states, claim, york, tax, salt


Blue states file suit against IRS over rules on SALT workarounds

New Jersey Governor Phil Murphy speaks after taking the oath of office in Trenton, New Jersey, January 16, 2018. Lucas Jackson | Reuters

New Jersey is suing the Internal Revenue Service, challenging new rules that would block states’ attempts to get around a new $10,000 cap for state and local tax deductions. The state’s governor, Democrat Phil Murphy, announced the lawsuit on Wednesday morning, naming Treasury Secretary Steven Mnuchin among the defendants. “As I said when the IRS rule was finalized in June, it was nothing more than a gut punch to the middle-class New Jersey families who know that the Trump tax plan is a complete sham,” Murphy said at a press conference in South Orange, New Jersey. “It was a complete and total utter politicization of the federal tax code,” he said. New York and Connecticut have also joined the suit, which was filed in the Southern District of New York.

This same court is hearing another lawsuit filed last year by these three states, plus Maryland, against Mnuchin and the Treasury, challenging the $10,000 SALT cap itself. When the Tax Cuts and Jobs Act of 2017 imposed a $10,000 limit on deductions for state and local income, sales and property tax that itemizers could claim on their federal returns, New Jersey, New York and Connecticut responded with a workaround. The three states passed legislation that would permit municipalities to establish charitable funds to pay for local services and offer property tax credits to incentivize homeowners to give. This way, the taxpayers could write off the payment as a charitable deduction on their federal tax returns. In June the IRS and Treasury blocked this strategy, saying that the receipt of a state or local tax credit in return for making this contribution would be a “quid pro quo.” Separately, the village of Scarsdale, New York, has also filed suit against the tax agency and Mnuchin, pushing back against the new rules.

Quid pro quo

The Internal Revenue Service (IRS) headquarters in Washington, D.C. Janhvi Bhojwani | CNBC

The new rules from the IRS would reduce the amount of the federal deduction a taxpayer can claim for a charitable contribution to one of these funds. For example, if you received an 85% state tax credit for donating to a state fund, you would only be able to claim 15% of your contribution on your federal tax return. In effect, it would greatly reduce the amount residents in high-tax states can claim. Consider that, in 2016, New Yorkers writing off state and local taxes took an average SALT deduction of $21,779, according to the Tax Policy Center. Meanwhile, in New Jersey and Connecticut the average deductions were $18,092 and $19,563, respectively.

Preexisting programs


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: darla mercado, annie nova
Keywords: news, cnbc, companies, workarounds, suit, file, blue, jersey, irs, state, treasury, federal, local, rules, states, claim, york, tax, salt


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