Thursday, June 4, 2015

US hit by massive data breach; South Africa drops out of top-40 mining list; Try telling Sepp Blatter we live in a post-American world

1 US hit by massive data breach (Tom Bateman on BBC) Chinese hackers are suspected of carrying out a "massive breach" affecting the data of millions of US government workers, officials said. The Office of Personnel Management (OPM) confirmed that almost four million current and past employees have been affected. The breach could potentially affect every federal agency, officials said.

Susan Collins, a member of the Senate Intelligence Committee, said the attack was thought to originate in China. The Chinese embassy in Washington warned against "jumping to conclusions".

It is the scale of what the OPM calls a "cyber intrusion" in April this year that is breathtaking - the records of four million former and current government employees may have been breached. The agency is contacting all of those potentially affected, offering to insure them against identity fraud. Of even greater concern may be the fact that security clearance information on government officials could have been targeted.

OPM serves as the human resource department for the federal government. The agency issues security clearances and compiles records of all federal government employees. Ken Ammon, chief strategy officer of Xceedium - a cyber security firm - warned that the hacked data could be used to impersonate or blackmail federal employees with access to sensitive information.


3 South Africa drops out of top 40 mining list (Johannesburg Times) The Top 40 mining companies in the world lost $156 billion‚ or about 16% of their combined market value‚ in 2014. The prolonged downswing in commodity prices has forced companies to fight hard to implement various measures to improve free cash flow. A major focus was on reducing costs.

This is according to Mine: PwC’s 12th annual review of the top trends in the global mining industry. This year saw no companies in South Africa from the Top 40 list – “the first time a company from this traditional mining heavyweight has not been part of our analysis‚ and a far cry from the five companies included in our 2004 first edition of Mine‚” PwC said.

The report analysed 40 of the largest listed mining companies by market capitalisation. Two of the three new entrants in this year’s Top 40 were Chinese companies and one was North American. Commodity prices remained under pressure‚ as iron ore‚ coal‚ and copper took another tumble in 2014. Gold prices  were volatile‚ but remained relatively steady compared to prior years‚ it noted. Iron ore was hardest hit in 2014‚ with prices falling by half as a result of oversupply and a negative short-term demand outlook.

On the positive side‚ “lower crude oil prices and a stronger US dollar are proving beneficial for miners by helping to lower operating costs”. A slowdown in China’s economic growth‚ to around 7% from double-digit growth in recent years‚ is expected to weigh on the industry in the months to come. China accounts for as much as 40% to 50% of global commodity demand.


3 Try telling Sepp Blatter we live in a post-American world (Natalie Nougayrede in The Guardian) The Fifa corruption investigation stands out not only as a momentous event for football fans and sport overall. It also comes as a thunderbolt in international relations. First, the notion of a multipolar world has taken a hit. Here we have one power – the US – calling the shots. Vladimir Putin has complained about US interference, but mainly because he’s worried about the prospects for the 2018 World Cup in Russia. No one has taken his cue, nor has he been able to save Sepp Blatter.

Second, we have been reminded that some rules do carry weight. The reach of the US justice department is such that no one can ignore the criminal charges it has brought nor pretend that it can be business as usual. In a global environment, it turns out that there is no free-for-all, and acts can have serious global consequences.

Third, soft power is back. What the Harvard professor Joseph Nye coined as “soft power” – the ability to get your way without resorting to armed force, through influence and persuasion – had come to look like a somewhat quaint ineffective concept. That may no longer be the case. The Fifa-Blatter empire has been brought down without a shot being fired. If this says something about the future, there is cause to rejoice – and worry.

The rejoicing is obvious. There may not be much consensus in the world today, but fighting corruption is something everyone agrees on. Equally, if soft power is back, who could possibly complain? Those who do not have much hard power might see an opportunity.

Europe lacks a joint army but does have influence – and it is right that Europe is increasingly using that influence: sanctioning Russia over its armed aggression against Ukraine, putting pressure on dictatorships, and waging anti-trust campaigns against big players such as Microsoft, Gazprom or Google. And China worries many with its sabre-rattling in Asia, but it could also be applauded for its Silk Road strategy of developing infrastructure along land and maritime trade routes all the way to Europe.

But there are reasons to worry. American power in the Fifa case has been applied through the extraterritorial dimension of US legislation. There is far from a consensus about this globally. But it will be harder to cast this American extraterritorial legalistic power as a solution to global woes, simply because it runs counter to multilateralism. It sets rules, but unilaterally. It brings progress in the Fifa case, but will be hard to duplicate beyond football.

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