WASHINGTON (Reuters) -Software company Blackbaud Inc has agreed to pay $3 million to settle charges it made misleading disclosures about a 2020 ransomware attack that impacted over 13,000 customers, the U.S. Securities and Exchange Commission said on Thursday.

In July 2020, the South Carolina-based provider of donor data management software disclosed a ransomware attacker and said the attacker had not accessed bank account information or Social Security numbers of donors, the SEC said.

“Within days” of those disclosures, some company employees learned the attacker had accessed and taken that information, but the employees did not tell senior managers responsible for public disclosure because the firm failed to maintain disclosure controls and procedures, the SEC said.

In August 2020, the SEC said, Blackbaud filed a quarterly report with the agency that omitted material information about the scope of the attack.

Representatives for Blackbaud, which did not admit or deny the SEC’s findings, did not respond immediately to a request for comment.

The regulator has pushed public companies and registered entities to make more timely and specific disclosures about cyber attacks.

The SEC is set to unveil a new effort next week to control how broker-dealers and others tackle the risk of hacking and respond to theft of customer data, continuing a regulatory drive on cybersecurity in the financial sector.

(Reporting by Kanishka Singh in Washington and Chris Prentice in New York; Editing by Chris Reese, Leslie Adler and Richard Chang)

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By Brendan Pierson

(Reuters) – The founder of a medical device company has been charged with leading a scheme to create and sell a completely non-functional plastic implant purporting to treat chronic pain, resulting in millions of dollars of fraudulent bills to government insurance programs including Medicare.

Laura Perryman, who founded Stimwave LLC in 2010 and served as its chief executive until 2019, was arrested Thursday in Delray Beach, Florida, where she lives. Perryman, 54, is charged by federal prosecutors in Manhattan with conspiracy and health care fraud, with the most serious charges carrying a maximum sentence of 20 years in prison.

Stimwave, which filed for bankruptcy last year, has also agreed to pay $10 million to avoid criminal prosecution and to settle a related civil whistleblower lawsuit, prosecutors said Thursday.

“Our office will continue to do everything in its power to bring to justice anyone responsible for perpetuating health care fraud, which in this case led to patients being used as nothing more than tools for financial enrichment,” U.S. Attorney Damian Williams in Manhattan said in a statement.

Jared Dwyer of Greenberg Traurig, Perryman’s lawyer, said the allegations are false and that Perryman looked forward to addressing them in court.

“Every piece of that system had a function and was necessary depending on the patient’s needs,” he said in an email.

An attorney for Stimwave did not immediately respond to requests for comment.

Florida-based Stimwave was founded to provide alternatives to opioid drugs for chronic pain. For that purpose, it marketed the StimQ PNS System, which delivered electrical currents to nerves outside the spinal cord, according to court filings.

The StimQ device consisted of an implantable array of electrodes, an external battery and another implantable component, called the receiver, that transmitted energy from the battery to the lead.

Soon after the StimQ was released in 2017, doctors began reporting that the receiver was too long to fit in some patients, according to court filings.

In response, Perryman directed the company to begin selling an alternative version of the receiver that could be cut to size. That version was made entirely of plastic and did not transmit electricity, prosecutors said, even though the company claimed it was effective.

As a result, authorities said, the non-functional devices were implanted in patients, and government health insurance programs were fraudulently billed “millions” of dollars. It was not clear exactly how many patients received the devices or how much was fraudulently billed.

The criminal case is United States v. Laura Perryman, in the U.S. District Court for the Southern District of New York, No. 23-cr-117.

The whistleblower case is United States et al ex rel SWFC LLC v. Stimwave Technologies Inc et al, in the same court, No. 18-cv-4599.

For the government: Assistant U.S. Attorneys Louis Pellegrino, Jacob Bergman and Monica Folch

For Perryman: Jared Dwyer of Greenberg Traurig

For Stimwave: Rebecca Martin and Rachel Page of Jones Day

(NOTE: This story has been updated to include a comment from Perryman’s attorney.)

(Reporting By Brendan Pierson in New York)

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NEW YORK, NY – One lucky winner in Manhattan picked four out five Powerball numbers drawn in Wednesday night’s drawing, winning $50,000.

While it wasn’t a jackpot winner, the third-tier winning ticket sold at Morning Star News on West 43rd Street. There were no jackpot tickets sold for Wednesday’s drawing and the pot is now $45 million.

The winning numbers for the Powerball drawing held on March 8 are: 26-27-43-61-69 and the Powerball is 4.

Players can securely check their tickets on the New York Lottery app. The winning numbers for the Powerball game are drawn from a field of one to 69. The Powerball number is drawn from a separate field one to of 26. The Powerball drawing is televised every Monday, Wednesday and Saturday at 11 p.m.

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By Ari Rabinovitch

JERUSALEM (Reuters) -Israel’s president urged the government to abandon attempts to push through bitterly contested plans to overhaul the judiciary and seek a model with broad support as tens of thousands of protesters returned to the streets on Thursday.

The drive by Prime Minister Benjamin Netanyahu’s hard-right government to enact sweeping changes to Israel’s courts has sparked domestic uproar and alarm among the country’s Western allies. If the proposal passed, it would mean greater government sway in selecting judges and limit the power of the Supreme Court to strike down legislation.

After weeks of demonstrations across the country that have exposed deep divisions in Israeli society, President Isaac Herzog, who has been mediating between the sides, warned in a televised prime time address of a “disaster”.

He said Israel had reached a “point of no return” and called on the coalition government to rethink the proposed legislation, which is strongly backed by nationalist and religious parties.

“It is wrong, it is harsh, it undermines our democratic foundations. And therefore it must be replaced with another, agreed upon outline immediately,” Herzog said.

As Prime Minister Benjamin Netanyahu left on a visit to Rome, he had to elude flag-waving Israelis who clogged the access routes to Ben Gurion Airport with motor convoys.

Before leaving, he managed to greet visiting Pentagon chief Lloyd Austin, who later underlined Washington’s concern over the proposals by saying that both U.S. and Israeli democracy were built on an independent judiciary.

The interventions by Herzog and Austin underlined the unusual depth of concern over the proposals, which Netanyahu – on trial on graft charges he denies – says are needed to rein in what it calls activist judges who have interfered in political decision making.

Critics, who range from the business elite to former military officers as well as opposition parties, say they would destroy the system of checks and balances needed in a democracy and hand uncontrolled powers to the government of the day.

THREE WOUNDED IN SHOOTING

Opinion polls have found that most Israelis want the proposals shelved or amended to satisfy a national consensus. Tens of thousands have demonstrated and some military reservists have also refused to show up for training exercises.

The sense of broader crisis was further underlined when a Palestinian gunman from the Islamist movement Hamas opened fire on a main street in central Tel Aviv, wounding three people.

Austin postponed and shortened his Israel leg of a regional tour. Rather than travel to Israel’s Defence Ministry in Tel Aviv, around which demonstrators were facing off with police, his meetings were relocated to an aerospace compound near Ben Gurion.

At a news conference later with his Israeli counterpart, Austin evoked comments by President Joe Biden, who has called for reaching a consensus on the issue in Israel.

“The genius of American democracy and Israeli democracy is that they are both built on strong institutions, on checks and balances, and on an independent judiciary,” he said.

Israeli police minister Itamar Ben-Gvir told reporters at the airport, where he was coordinating the response to the demonstrations, that “nobody said don’t protest.”

“But it’s not okay, it’s not right, it’s not proper to ruin the lives of 70,000 people,” he said.

He appeared to be referring to people stuck in traffic as well as those travelling through Ben Gurion, whose spokesperson said the expected passenger volume for Thursday was 65,000.

As Thursday’s protest came to an end it was announced that the commander of police in Tel Aviv was being reassigned. Ben-Gvir said the transfer had been planned in advanced and was not a dismissal.

(Reporting by Ari Rabinovitch; Writing by Dan Williams; Editing by Nick Macfie, William Maclean and Grant McCool)

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(Reuters) -Oracle Corp narrowly missed quarterly revenue estimates on Thursday, but the company remained bullish on demand for its cloud software following the recent acquisition of electronic medical records firm Cerner.

Oracle has been beefing up its offerings with a focus on subscriptions to win large customers and better compete in the booming cloud services market dominated by tech heavyweights Microsoft Corp and Amazon.com Inc.

On a conference call with analysts, company executives said Oracle expects to sign more healthcare customers over the next few quarters.

Cloud revenue jumped 45% to $4.1 billion in the third quarter.

However, while hybrid work has helped growth, a rally in the U.S. dollar has also hit the bottom-lines of multinational firms such as Oracle, with the company’s net income in the third quarter falling to $1.89 billion from $2.32 billion a year earlier.

Oracle earned $1.22 per share on revenue of $12.39 billion in the quarter ended Feb. 28, while analysts were expecting a profit of $1.20 per share on revenue of $12.42 billion, according to Refinitiv data.

The mixed results sent shares down over 3% in trading after the bell.

The company forecast fourth-quarter revenue to grow between 15% and 17%, compared with analysts’ estimate of 16.2%.

Oracle also expects adjusted profit per share in the range of $1.56 to $1.60, above market expectations of $1.46.

(Reporting by Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)

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By Jane Lanhee Lee and Stephen Nellis

OAKLAND, California (Reuters) – Groq, a Silicon Valley chip startup founded by a former Alphabet Inc engineer, said on Thursday it has adapted technology similar to the underpinnings of the wildly popular ChatGPT to run on its chips.

Groq modified LLaMA, a large language model released last month by Facebook parent Meta Platforms Inc that can be used to power bots to generate human-like text.

The move is significant because Meta’s researchers originally developed LLaMA using chips from Nvidia Corp, which has a market share of nearly 90% for AI computing according to some estimates. Showing that a cutting-edge model can be moved to Groq’s chips easily could help the startup prove that its products are a viable alternative to Nvidia.

Groq has been trying to chip away at Nvidia’s market share, along with startups such as SambaNova and Cerebras and big companies like Advanced Micro Devices Inc and Intel Corp.

Efforts to find alternative chips to Nvidia’s have gained extra steam with the popularity of ChatGPT which has focused attention on Nvidia’s dominant role in AI. The public battle to dominate the AI technology space kicked off late last year with the launch of Microsoft Corp-backed OpenAI’s ChatGPT and prompted tech heavyweights from Alphabet to China’s Baidu Inc to trumpet their own offerings.

Meta made its code available to researchers for noncommercial use. Groq used Meta’s model but stripped out the code that was included in order to make the model run on an Nvidia chip, Groq CEO Jonathan Ross told Reuters.

Groq then ran that model through Groq Compiler which automatically adds specific code for it to run on its own computing system. A compiler turns code into ones and zeros so a chip can read them.

Ross said the company’s goal is to make it easy to move models from Nvidia’s chips to its own. He said using the Groq system can also eliminate engineering effort each time changes are made to the LlaMA or other models to get it to work on the chips.

Meta Platforms declined to comment. The company has been working on making it easier for developers to use non-Nvidia chips and in October launched a set of free software tools for AI applications that enable switching back and forth between Nvidia and AMD chips.

(Reporting by Jane Lanhee Lee in Oakland, California, and Stephen Nellis in San Francisco; Editing by Matthew Lewis)

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(Reuters) -A Brooklyn federal jury on Thursday convicted a former 21st Century Fox executive and acquitted another after a trial over an alleged scheme to bribe South American soccer officials to secure lucrative broadcasting rights.

Jurors found Hernan Lopez guilty but acquitted Carlos Martinez on the same charges. South American sports marketing company Full Play Group SA was also convicted.

An attorney for Lopez, John Gleeson, said in a statement that he was disappointed with the verdict but looked forward to appealing based on “legal and factual errors” in the case.

Martinez’s attorney, Steven McCool, told reporters he was “tremendously grateful to the jury for bringing justice to Carlos.”

Lawyers for Full Play Group did not immediately respond to requests for comment.

A cooperating witness testified at trial that he paid tens of millions of dollars in bribes with the blessing of defendants Martinez and Lopez, both former Fox executives.

The case stems from a sweeping probe of corruption in international soccer and its governing body, FIFA, that has resulted in scores of convictions since U.S. and international authorities made their first arrests in 2015.

“Today’s verdict is a resounding victory for justice and for soccer fans around the world,” Brooklyn U.S. Attorney Breon Peace said in a statement.

Lawyers for Martinez and Lopez denied wrongdoing claimed that the witness, Argentine businessman Alejandro Burzaco, falsely accused the two men in hopes of getting a lighter sentence under his plea agreement with prosecutors. A lawyer for Burzaco denied those claims.

Jurors saw emails, contracts and business records that prosecutors say revealed a years-long plot by Martinez and Lopez to advance their careers by funneling payments to soccer officials through sham contracts and consulting agreements.

The government’s case hinged largely on testimony by Burzaco, who has yet to be sentenced. Burzaco told jurors that Martinez and Lopez were aware of and approved the scheme, which he said they discussed during multiple meetings.

Lawyers for Martinez and Lopez denied Burzaco’s account and said their clients were unaware of his scheme. None of the emails and documents cited by prosecutors directly implicated the two men in the scheme, they argued.

Prosecutors said Burzaco’s testimony was “devastating” and alleged that emails showed him discussing the bribes with Martinez and Lopez in coded terms.

(Reporting by Jack Queen; Editing by Lisa Shumaker and Daniel Wallis)

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SOUTH PLAINFIELD, NJ – The New Jersey Lottery has announced one lucky New Jersey player in Wednesday’s Powerball drawing won a $50,000 second-tier prize.

The ticket was sold at Little Store on Clinton Avenue in South Plainfield.

The winning numbers for the Wednesday, March 8, drawing were: 26, 27, 43, 61 and 69. The Red Power Ball number was 04. The Power Play was 3X. 14,426 New Jersey players took home an estimated $89,975 in prizes ranging from $4 to $300.

The Powerball jackpot rolls to $45,000,000 for the next drawing to be held Saturday, March 11, at 10:59 pm.

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By Ananya Mariam Rajesh

(Reuters) -Gap Inc on Thursday posted a bigger-than-expected fourth-quarter loss and forecast full-year sales below Wall Street estimates, signaling a slowdown in demand for its apparel as inflation-weary consumers curb discretionary spending.

Shares of the company fell about 8% in extended trading after the Banana Republic parent also forecast first-quarter sales below estimates.

With the Federal Reserve prepared to raise interest rates more than expected in an attempt to control inflation, consumers, especially at the lower- to mid-income rung, have turned more cautious and curbed spending on non-essential items.

The company’s efforts to offer promotions and steeper discounts during the holiday quarter to get rid of excess inventory and spur demand further hurt its margins.

Gap also said the chief executive officer of Athleta, Mary Beth Laughton, was exiting the business effective immediately and a search is underway to find a new CEO for the brand.

The company is also seeing a slowdown in demand for casual and active wear as people returning to social occasions prefer more formal clothing. Sales at all of Gap’s four brands were down in the reported quarter, with Athleta falling 1%.

While Old Navy, Gap’s biggest brand has been struggling with outdated inventory, Chief Finance Officer Katrina O’Connell said Banana Republic had some holiday product misses including over-assorted sweaters and outerwear, with the gifting assortment not resonating with the consumer.

“We expect the next few quarters to be tough on Gap with a weaker economic backdrop than the previous two years and new management,” CFRA Research analyst Zachary Warring said.

Gap expects first-quarter and annual gross margin expansion but Warring added this margin improvement is “nothing to get excited about.”

The company expects fiscal 2023 net sales to decrease in the low- to mid-single digit range, compared with analysts’ expectations of 1.64% rise, according to Refinitiv IBES data.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel)

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Pile of money

PISCATAWAY, NJ – If you live in Piscataway and played the Jersey Cash 5 lottery for Monday night’s drawing, you might want to double-check your tickets.

One lucky ticket worth $50,000 was sold at Quick Chek on River Road.

A green ball was drawn Monday night, meaning everyone who played got a second chance to win, even if their ticket was a losing one.

“Because the Green Ball was drawn, all players with tickets for last night’s drawing were given a free second chance as the Jersey Cash 5 machine was reset and numbers were drawn again for the Green Ball drawing,” the Lottery Commission said today.

In that second drawing, one winning ticket was announced, giving that winner a nice little bonus on the night.

That ticket matched all five numbers drawn winning the $50,000 Green Ball jackpot.  The Green Ball numbers were: 02, 05, 06, 11 and 21. The XTRA number was 02. An additional 170 players had four out of five numbers for the Green Ball drawing, and won $280. Those tickets with the XTRA add-on won $560.

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By Blake Brittain

(Reuters) – Bytedance’s TikTok Inc persuaded a federal jury in Los Angeles on Thursday that its Stitch feature does not violate trademark rights belonging to British video-editing company Stitch Editing Ltd.

The jury rejected Stitch Editing’s argument that TikTok confuses consumers by using the Stitch name to brand the popular social-media platform’s technology for “stitching” videos together.

A Stitch spokesperson said the company was disappointed with the verdict. A representative for TikTok had no immediate comment.

Stitch Editing has edited commercials for Nike, Samsung and Louis Vuitton and music videos for artists like the Rolling Stones and Lady Gaga. It sued in 2021 over TikTok’s Stitch technology, which allows users to splice other videos on the platform into their own.

Stitch Editing told the court that TikTok’s use of “Stitch” gave users the mistaken impression that the companies are affiliated and threatened to drown out its brand.

TikTok has argued that Stitch Editing’s trademark in its name does not give it a “global monopoly on use of the word ‘Stitch’ to refer to the process of combining video clips together.”

Stitch Editing had requested $116 million in damages, a spokesperson for the company said.

The case is Stitch Editing Ltd v. TikTok Inc, U.S. District Court for the Central District of California, No. 2:21-cv-06636.

(Reporting by Blake Brittain in Washington)

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LAREDO, Texas – Laredo Sector Border Patrol recovered a stolen weapon at the Highway 83 Checkpoint.

On March 5, Border Patrol agents encountered a tractor trailer at the primary inspection lane when a Service canine alerted to the trailer. The driver was referred to secondary inspection. While on secondary, agents found two firearms and small amount of marijuana inside the vehicle.  Record checks revealed that one of the firearms was previously reported stolen.  The driver and passenger were taken into custody and the case was turned over to ATF . 

Please visit www.cbp.gov  to view additional news releases and other information pertaining to Customs and Border Protection. Follow Laredo Sector on Twitter at USBPChiefLRT, on Instagram at USBPChiefLRT and Facebook at US Border Patrol Laredo Sector for breaking news, current events, human interest stories and photos.

 U.S. Customs and Border Protection welcomes assistance from the community. Citizens are encouraged to report suspicious activity to the U.S. Border Patrol while remaining anonymous by calling 1-800-343-1994.

 

 

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AGUADILLA, Puerto Rico –US Border Patrol Agents apprehended 21 non-citizen migrants from Haiti and the Dominican Republic that entered illegally into Puerto Rico and the US Virgin Islands in separate incidents.

BP agent inspecting Haitians

On Mar. 8, Ramey Sector Border Patrol Agents (BPAs) received a report from the Virgin Islands Police Department of a possible non-citizen boarding a passenger ferry at the Cruz Bay pier in St. John, USVI that was heading to St. Thomas, USVI. 

Border Patrol agents responded to the Red Hook passenger ferry pier in St. Thomas and arrested 10 non-citizens from Haiti.

Meanwhile in the Tortuguero area of the municipality of Vega Baja, Ramey Sector Border Patrol Agents arrested eleven non-citizens from the Dominican Republic, after landing on board a 25-foot “yola” type vessel.

All migrants will be processed and removed under federal immigration law. 

The Ramey Sector is one of the twenty-one Sectors spread out across the United States. Encompassing the U.S. territorial islands of Puerto Rico and the Virgin Islands, it is the only Border Patrol Sector located outside the continental United States. The Sector’s entire border area is made up of coastline and its area of responsibility is made up of some 6,000 square miles of land and water area, including the twelve-mile band of territorial water surrounding the Islands.

For anonymous tips contact us at 1(800)981-1313.

Follow us on Twitter: @CBPCaribbean

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By Andy Sullivan

WASHINGTON (Reuters) – U.S. President Joe Biden’s budget proposal, released on Thursday, envisions a dramatic expansion of the federal safety net for children and families. Unlike programs that benefit older Americans, it stands little chance of gaining traction.

Biden’s fellow Democrats widely back his family-focused proposals: Tax credits, free preschool, subsidies for child care and paid family leave.

But Democrats failed to pass them into law when they controlled both chambers of Congress last year, and Republicans who now control the House of Representatives are considering steep cuts to existing family programs.

At a total cost of $1.6 trillion over 10 years, Biden’s family programs would amount to roughly 2% of all federal spending, according to a Reuters analysis, a proposal that Republican House Speaker Kevin McCarthy called “completely unserious” on Thursday.

That would be dwarfed by the $31.8 trillion spent on Social Security and Medicare, the retirement and health plans for people over 65, according to Biden’s budget.

Those two programs are due to balloon as the Baby Boom generation ages, with Biden’s budget projecting they will account for 42% of federal spending in 2033, up from 34% today.

But Republicans and Democrats have said any cuts to either program are off limits as they gird for difficult negotiations to raise the nation’s $31.4 trillion debt ceiling this year.

“I guarantee you I will protect Social Security and Medicare,” Biden said at a rally in Philadelphia on Thursday.

That makes good political sense. Republican proposals to scale the two programs back have been met with fierce resistance from Democrats and interest groups over the past 20 years. Even modest efforts to rein them in, such as by adjusting the way benefit increases are calculated, have gotten nowhere in Congress.

The 60 Plus Association, a conservative group that backed then-President George W. Bush’s proposal to partially privatize Social Security, now says the program should be preserved as is.

Lawmakers have reason to be wary: Older Americans are more likely to vote than their younger counterparts, with Census Bureau data showing that 76% of voters aged 65 to 74 cast a ballot in the 2020 elections, about 10 percentage points higher than the population at large.

A presentation by the nonpartisan Congressional Budget Office to House lawmakers on Wednesday laid out options for addressing the deficit and projected that spending cuts would have substantially less effect on the deficit than increased tax collections.

Biden’s budget proposal projects a deficit of $1.7 trillion for the current fiscal year. His proposal would address it by hiking taxes on wealthy Americans and corporations; Republicans have yet to put forward a budget of their own, but many are calling for steep domestic spending cuts.

HEAD START: CUT OR EXPAND?

One proposal by the conservative Republican Study Committee calls for phasing out the Head Start preschool program for low-income families over 10 years.

Another plan circulated by Russell Vought, who served as former President Donald Trump’s budget director, would cut Head Start immediately by 50%.

Biden, by contrast, would boost Head Start funding by 9% next year.

His proposal comes after a surge of COVID-19 pandemic spending, including child tax credits and expanded benefits for antipoverty programs, that analysts say helped bring a record low child poverty rate of 5.2% in 2021.

That tax credit expired at the end of 2021. If revived, it would cost the government $259 billion in the next fiscal year — equal to 4% of total federal spending.

Federal spending on children is on track to decline from 9.4% of the budget in 2021 to 6.4% in coming years as growing entitlement spending eats up a growing share of the budget, according to a 2022 report from the Urban Institute think tank.

Elaine Maag, who helped author that report, said lawmakers usually do not consider that safety-net programs for children can yield benefits later on, such as higher graduation rates and better physical health.

“We generally don’t think about the benefits of these investments in children, we just think about the cost side,” she said. “If we thought more about the benefits, we might do more investing in kids.”

(Reporting by Andy Sullivan; editing by Scott Malone and Josie Kao)

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MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador said Thursday he discussed fentanyl and arms trafficking in a meeting with U.S. Homeland Security Adviser Elizabeth Sherwood-Randall.

Lopez Obrador also said on Twitter the two talked about U.S. President Joe Biden’s “decision to respect (Mexico’s) sovereignty.” Some Republican lawmakers have called on the U.S. military to intervene in Mexico after two Americans were killed last week in Mexico’s northern state of Tamaulipas.

(Reporting by Kylie Madry; Editing by Sarah Morland)

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By David Shepardson

WASHINGTON (Reuters) – U.S. Senator Marco Rubio on Thursday introduced legislation that takes aim at Ford Motor’s deal to use technology from Chinese battery company CATL as part of the automaker’s plan to spend $3.5 billion to build a battery plant in Michigan.

Rubio, the top Republican on the Intelligence Committee, introduced legislation that would block tax credits for electric vehicle batteries produced using Chinese technology, saying it would “significantly restrict the eligibility of IRA tax credits and prevent Chinese companies from benefiting.”

Ford said in response to Rubio that “making those batteries here at home is much better than continuing to rely exclusively on foreign imports, like other auto companies do. A wholly owned Ford subsidiary alone will build, own and operate this plant. No other entity will get U.S. tax dollars for this project.”

Last month, Rubio asked the Biden administration to review Ford’s deal to use technology from CATL.

Rubio called for an immediate Committee on Foreign Investment in the United States (CFIUS) review of the licensing agreement between Ford and CATL.

Rubio said the deal “will only deepen U.S. reliance on the Chinese Communist Party for battery tech, and is likely designed to make the factory eligible for Inflation Reduction Act (IRA) tax credits.”

CFIUS is a U.S. Treasury-led interagency panel that reviews proposed transactions to ensure they do not harm national security.

Treasury declined to comment, but Energy Secretary Jennifer Granholm said last month the Ford deal will “bringing advanced manufacturing capabilities from overseas to the United States is key to our competitiveness, will stimulate our economy, and create good-paying American jobs.”

Ford has said the plant would create 2,500 jobs and begin producing lower cost and faster recharging lithium-iron-phosphate batteries in 2026.

The $430 billion IRA imposes restrictions on battery sourcing and is designed to wean the United States off the Chinese supply chain for electric vehicles (EVs). The IRA will eventually bar credits if any EV battery components were manufactured by a “foreign entity of concern,” in a provision aimed at China.

Separately, Democratic Senator Joe Manchin criticized comments by a White House adviser that Chinese companies will be “big players” in growing domestic energy production.

“It is beyond irresponsible for someone speaking on behalf of the White House to not only condone but also advocate for sending American tax dollars to Chinese companies,” Manchin said.

(Reporting by David Shepardson; Editing by Lincoln Feast and Diane Craft)

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By Pavel Polityuk and Andriy Perun

KYIV/ZOLOCHIV, Ukraine (Reuters) – Russia fired a huge wave of missiles across Ukraine on Thursday as people slept, killing at least nine civilians and knocking out power in an attack Kyiv said included six Kinzhal hypersonic cruise missiles, one of Moscow’s most valuable weapons.

The mass strikes on targets far from the front were the first such wave since mid-February and shattered the longest calm since Moscow began an air campaign against Ukraine’s civil infrastructure five months ago.

They also briefly forced Europe’s biggest nuclear power plant off the grid.

“The occupiers can only terrorise civilians. That’s all they can do. But it won’t help them. They won’t avoid responsibility for everything they have done,” said Ukrainian President Volodymyr Zelenskiy, describing strikes that hit infrastructure and residential buildings in ten regions.

Russia’s defence ministry said it had carried out a “massive retaliatory strike” as payback for a cross-border raid last week. It claimed to have hit all its intended targets, destroying drone bases, disrupting railways and damaging facilities that make and repair arms.

Villagers in Zolochiv in Ukraine’s western Lviv region carried a body in a black plastic bag over the rubble of a brick house completely destroyed by a missile. They put the body into the back of a white van with another. A dog lay curled up on a carpet in the ruins.

Oksana Ostapenko said the house belonged to her sister Halyna, whose body was still buried under the rubble with two other family members.

“They still haven’t found them. We were hoping that they’re alive. But they’re not alive,” she said.

Another civilian was reported killed by the missiles in the central Dnipro region. Three civilians were separately reported killed by artillery in Kherson.

Moscow says such hits are intended to reduce Ukraine’s ability to fight. Kyiv says the air strikes have no military purpose and aim to harm and intimidate civilians, a war crime.

In the capital Kyiv, a seven-hour alert through the night was the longest of Russia’s five-month air campaign.

“I heard a very loud explosion, very loud. We quickly jumped out of bed and saw one car on fire. Then the other cars caught on fire as well. The glass shattered on the balconies and windows,” said Liudmyla, 58, holding a toddler in her arms on a Kyiv street near wrecked cars.

“The child got scared and jumped out of bed,” she said. “How can they do this? How is this possible? They are not humans.”

HYPERSONIC MISSILES

Moscow confirmed it had used hypersonic Kinzhal – Russian for dagger – missiles in Thursday’s attack. Ukrainian officials said it was the first time they had faced so many of the weapons, which Ukraine has no way to shoot down.

The White House said that the barrage was “devastating” to see and Washington would continue to provide Ukraine with air defence capabilities.

Russia is believed to have just a few dozen Kinzhals, which fly many times faster than the speed of sound and are built to carry nuclear warheads with a range of more than 2,000 km (1,200 miles). In his speeches, President Vladimir Putin regularly touts the Kinzhal as a weapon for which the transatlantic NATO alliance backing Kyiv has no answer.

Ukraine said the attacks had knocked out power in various places including to the Zaporizhzhia nuclear power plant, Europe’s largest, severing it from the grid and forcing it onto emergency diesel power to prevent a meltdown. It was later reconnected to Ukraine’s energy grid, operator Ukrenergo said.

The plant, which Russia has held since capturing it early in the war, is near the front line and both sides have warned in the past of a potential for disaster. Moscow said it was safe.

U.N. nuclear watchdog chief Rafael Grossi appealed for a protection zone around the plant.

“Each time we are rolling a dice. And if we allow this to continue time after time then one day our luck will run out,” Grossi told the IAEA’s 35-nation Board of Governors.

Kyiv, the Black Sea port of Odesa and Kharkiv were all hit. Targets stretched from Zhytomyr, Vynnytsia and Rivne in the west to Dnipro and Poltava in central Ukraine, officials said.

UKRAINE FIGHTS ON AT BAKHMUT

On the battlefield, the week has seen an apparent shift as Ukraine has decided to fight on in Bakhmut, a small city that has borne the brunt of a Russian winter offensive in the bloodiest fighting of the war.

Moscow says Bakhmut is important as a step to securing the surrounding Donbas region, a major war aim. The West says the ruined city has little value and Russian forces are sacrificing lives to give Putin his only victory since sending hundreds of thousands of reservists into battle at the end of last year.

Ukraine had appeared likely to withdraw from Bakhmut, but commanders now say they are inflicting enough damage on Russia’s assault force to justify staying and fighting on.

Yevgeny Prigozhin, head of Russia’s Wagner private army which has led the fighting in Bakhmut, said on Wednesday his forces controlled all of the city east of a river through it.

Moscow, which claims to have annexed a fifth of Ukraine, says it launched its “special military operation” a year ago to combat a security threat. Kyiv and the West call it an unprovoked war to subdue an independent state.

(This story has been refiled to remove extraneous words in paragraph 18)  

(Reporting by Reuters bureaux,; Writing by Peter Graff, Alexandra Hudson, Editing by Angus MacSwan)

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CINCINNATI, Ohio (Reuters) – General Electric Co is working on addressing issues with the durability of its LEAP jet engines and changes will be rolled out next year, Karl Sheldon, a senior executive at the company’s aerospace unit, said on Thursday.

The problems with LEAP engines, which power Airbus and Boeing jets, is occurring in regions like the Middle-East.

Sheldon said changes are being made to the engine’s turbine blades and nozzles, which are getting affected by hot and harsh conditions.

“Hotter engines running in hotter environment is driving this issue,” he said on the sidelines of GE’s investor conference.

CFM International, a joint venture between GE and France’s Safran, manufactures the engine.

Sheldon said enhancements are being made to the cooling jacket around the turbine blade to make it more durable.

(Reporting by Rajesh Kumar Singh in Cincinnati, Ohio; Editing by Leslie Adler and Lincoln Feast)

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By Simon Lewis

WASHINGTON (Reuters) – The Biden administration’s budget plan put forward on Thursday includes requests for billions of dollars of funding for the Indo-Pacific region aimed at countering China through infrastructure investments and other support for U.S. partners and allies in the region.

Acting Deputy Secretary of State for Management and Resources John Bass told reporters Washington’s competition with Beijing was “unusually broad and complex” and justified new forms of funding.

“Our approach towards the generational challenge posed by the PRC focuses on investing in our own domestic capabilities, aligning our efforts with those of allies and partners and competing with the PRC where interests and values differ,” Bass said, referring to the People’s Republic of China.

Biden’s budget proposal already faces stiff opposition from Republican lawmakers, although party leaders generally support efforts to counter China.

The budget proposal for 2024 includes $400 million for a fund to “counter specific problematic PRC behaviors globally,” according to a State Department fact sheet.

The administration is requesting mandatory spending, in addition to traditional discretionary funding, including $2 billion to support infrastructure projects and $2 billion to strengthen Indo-Pacific economies and support partners to push back against China, Bass said.

The budget also includes funding to expand the U.S. presence in the Pacific Islands, a region where Washington is competing with growing Chinese influence, he said.

The amount of funding is likely to pale in comparison with China’s own largess overseas through the Belt and Road infrastructure initiative, but officials say U.S. efforts are focused on “high-quality” infrastructure projects and would rally private sector investment.

“We are not looking to match China dollar for dollar, in part because any number of Chinese investments… don’t make a lot of commercial sense,” Bass said.

(Reporting by Simon Lewis, Rami Ayyub and Daphne Psaledakis; Editing by David Gregorio)

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By Jonathan Stempel

NEW YORK (Reuters) -A U.S. judge on Thursday ordered JPMorgan Chase & Co to hand over more documents concerning Chief Executive Jamie Dimon to the U.S. Virgin Islands for the territory’s lawsuit accusing the bank of aiding in Jeffrey Epstein’s sex trafficking.

U.S. District Judge Jed Rakoff in Manhattan said the bank must turn over requested documents from 2015 to 2019, a period after JPMorgan had dropped Epstein as a client. Rakoff did not explain his reasoning in his one-sentence order.

JPMorgan declined to comment.

The U.S. Virgin Islands is seeking damages from JPMorgan for allegedly aiding in Epstein’s sex trafficking by keeping him as a client, and missing red flags about his misconduct on Little St. James, a private island he owned.

Epstein had been a JPMorgan client from 2000 to 2013. He killed himself in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges.

The U.S. Virgin Islands has called Dimon “a likely source of relevant and unique information” about why JPMorgan kept Epstein on, and discussions on Epstein’s referrals of prominent and wealthy potential clients.

JPMorgan countered by accusing the U.S. Virgin Islands of going on a “fishing expedition” after having obtained a “massive trove” of information in litigation in which the territory recovered more than $105 million from Epstein’s estate.

Lawyers for the U.S. Virgin Islands did not immediately respond to requests for comment.

Rakoff scheduled a March 16 conference in the case.

JPMorgan also faces a proposed class action over its ties to Epstein by Jane Doe 1, a former ballet dancer who said Epstein abused and trafficked her from 2006 to 2013.

On Wednesday, the bank filed two lawsuits accusing former private banking chief Jes Staley of “intentional and outrageous conduct” in concealing information about Epstein, with whom he had been friends.

JPMorgan wants Staley to reimburse it for damages it might incur in the other lawsuits, and return eight years of compensation.

Its lawsuits attempt to portray Staley as a “bad apple” solely at fault for the bank’s relationship with Epstein, said Alison Taylor, a corporate governance professor at New York University’s Stern School of Business.

The case is Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, U.S. District Court, Southern District of New York, No. 22-10904.

(Reporting by Jonathan Stempel in New York; Additional reporting by Lananh Nguyen and Tatiana Bautzer; Editing by Leslie Adler and Daniel Wallis)

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(Reuters) – The U.S. Food and Drug Administration said on Thursday all mammography facilities in the country will be required to notify patients about the density of their breast tissues, as that can potentially make detection of tumors more difficult.

Breast density can influence the accuracy of mammography, which relies on X-rays passing through breast tissues to diagnose and locate tumors.

Mammograms remain the best tool for screening and detection of breast cancer, which is the second most common form of cancer among women in the United States, according to the Centers for Disease Control and Prevention.

The agency recommends patients with dense breasts, a normal and common finding in mammograms, to discuss their individual situation with their respective healthcare providers.

The updated rules will help ensure patients receive information on the potential need for further evaluation or a repeat mammogram, the health regulator said.

“Increasing early detection is the best way to improve outcomes, and this new standard does just that,” Congressman Brian Fitzpatrick said in a statement.

(Reporting by Aditya Samal; Editing by Shinjini Ganguli)

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By Nate Raymond

(Reuters) – The U.S. Supreme Court is asking Congress to approve $5.9 million in new funds to bolster the protection of the nine justices following threats and protests that began after the May 2022 leak of a draft version of the blockbuster ruling ending the recognition of a constitutional right to abortion.

The proposed funding was included as part of a $9.1 billion budget request released on Thursday to fund the Supreme Court and the rest of the federal judiciary in the fiscal year that begins on Oct. 1.

Conservative Justice Samuel Alito, who wrote the abortion ruling, said last October that the leak made him and his fellow justices “targets for assassination.”

The budget request includes the money to expand security activities by the Supreme Court police to protect the justices as part an overall request to boost discretionary spending on the nation’s top judicial body by 16% to $127.1 million. Separately, the court is seeking $6.5 million to improve physical security at its building.

The additional money to protect the justices would provide for “contract positions, eventually transitioning to full-time employees, that will augment capabilities of the Supreme Court police force and allow it to accomplish its protective mission.”

“Ongoing threat assessments show evolving risks that require continuous protection,” the judiciary said in the budget document.

Congress last year approved legislation to expand police protection to the families of the justices and senior officers of the court following the leak of the ruling overturning the 1973 Roe v. Wade ruling that had legalized abortion nationwide.

The draft opinion and final ruling in June prompted protests outside the home of some justices and calls by Republican lawmakers for greater protection for members of a court with a 6-3 conservative majority. An armed California man was charged in June 2022 with attempted murder after being arrested near the home of conservative Justice Brett Kavanaugh.

(Reporting by Nate Raymond in Boston; Editing by Will Dunham)

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By Jonathan Stempel

NEW YORK (Reuters) -New York’s attorney general on Thursday sued KuCoin for failing to register with the state before letting investors buy and sell cryptocurrencies on its platform, as part of her effort to rein in what she calls “shadowy” cryptocurrency companies.

Attorney General Letitia James said the fourth-largest cryptocurrency platform violated the Martin Act, a powerful state securities law, by transacting in cryptocurrencies, selling the product “KuCoin Earn” to generate income for itself and investors, and wrongfully calling itself an “exchange.”

In papers filed with a state court in Manhattan, James is seeking a permanent injunction to stop KuCoin from operating in New York until it complies with the law.

KuCoin did not immediately respond to requests for comment.

Launched in September 2017, KuCoin describes itself on its website as the “People’s Exchange,” with more than 27 million users across 207 countries and regions.

KuCoin trails Binance, Coinbase and Kraken in trading volume among cryptocurrency spot exchanges, according to the data company CoinMarketCap. It raised $150 million in a funding round last May, giving it a $10 billion valuation.

James said KuCoin has let investors trade popular virtual currencies such as ETH, LUNA and TerraUSD, and that her case is among the first by a regulator calling ETH a security.

“One by one my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk,” James said in a statement.

Last month, James sued the CoinEx cryptocurrency platform for failing to register with the state.

In January, 10 states including New York secured up to $24 million from the cryptocurrency company Nexo Inc, which they also accused of operating illegally.

KuCoin is headquartered in the Seychelles. James said its owners are Mek Global Ltd, also based in the Seychelles, and PhoenixFin PTE Ltd, based in Singapore.

(Reporting by Jonathan Stempel in New York; Editing by Diane Craft and Daniel Wallis)

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WASHINGTON (Reuters) – U.S. President Joe Biden will visit Canada on March 23-24 to meet with Canadian Prime Minister Justin Trudeau and address Canada’s parliament, the White House said on Thursday.

During the visit to Ottawa, Biden will discuss with Trudeau Russia’s war with Ukraine, defense cooperation, climate change and the opioid crisis, White House press secretary Karine Jean-Pierre said in a statement.

Biden and Trudeau “will discuss ongoing efforts to support Ukraine, to increase the costs to Russia and those supporting its war effort, and to counter the negative impacts of the war on the rest of the world,” Jean-Pierre said.

Trudeau welcomed news of the visit, which will be Biden’s first since becoming president.

“Keeping North Americans safe from new and emerging threats requires a coordinated response,” he said in a statement, which also said the leaders would highlight ongoing continental defense efforts and advance cooperation in the Arctic.

(Reporting by Katharine Jackson and Kanishka Singh; editing by Rami Ayyub)

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By Jamie McGeever

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.

Investors waking up in Asia on Friday hoping for a quiet day to ease into the weekend will be as well going back to bed, following the volatility that slammed Wall Street on Thursday and crushed the banking sector in particular.

Not only will they pick up the pieces of Thursday’s global equity selloff, they have the Bank of Japan’s (BOJ) last policy decision under the stewardship of Governor Haruhiko Kuroda on tap and will be bracing for the latest U.S. employment report.

Risk appetite in equities, especially financials, will be minimal. The S&P 500 bank index plunged 6.5% on Thursday in its biggest one-day drop in nearly three years, following SVB Financial Group’s share sale announcement and crypto bank Silvergate’s decision to wind down operations.

For those who were around at the time, Thursday’s sea of red across financials and near double-digit declines in bank stocks brought back hazy memories of 2007-09.

This is the market backdrop against which the BOJ delivers its last policy decision under Kuroda. It is widely expected to start reversing its super-loose policy later this year, once Kuroda has long left the building.

Kazuo Ueda, ratified by the lower house on Thursday and set to receive Senate approval on Friday, will take over from Kuroda on April 8.

It will be under his watch that Japan will attempt to steer a smooth exit from ultra-loose monetary policy which has seen interest rates anchored around zero for decades and the BOJ’s balance sheet swell to a record 130% of GDP.

The BOJ already tweaked Kuroda’s ‘yield curve control’ policy in December, doubling the effective cap on the 10-year government bond yield to 0.50%. Markets have bet heavily that the BOJ will be forced to restore ‘normal’ bond market functioning by raising it again soon or even abandoning it.

Although global and domestic pressures are pushing yields higher, the economic picture is less clear-cut. Inflation at 4.2% – the highest in 40 years – has driven the fastest fall in real wages since 2014, and revised figures on Thursday showed that Japan’s economy barely grew in the fourth quarter.

Here are three key developments that could provide more direction to markets on Friday:

– Japan monetary policy decision

– U.S. non-farm payrolls & unemployment (February)

– India industrial production (January)

(By Jamie McGeever; Editing by Josie Kao)

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