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Chinese hackers breached email accounts of top U.S. diplomats

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Chinese hackers breached email accounts of top U.S. diplomats

US Secretary of State Antony Blinken (L) shakes hands with China’s Director of the Office of the Central Foreign Affairs Commission Wang Yi at the Diaoyutai State Guesthouse in Beijing on June 19, 2023. (Photo by Leah MILLIS / POOL / AFP) (Photo by LEAH MILLIS/POOL/AFP via Getty Images)

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China-linked hackers breached the email account of U.S. Ambassador to China Nicholas Burns, as part of a recent targeted intelligence-gathering campaign, NBC News has confirmed.

The hackers also accessed the email account of Daniel Kritenbrink, the assistant Secretary of State for East Asia, who recently travelled with Secretary of State Antony Blinken to China, said NBC, citing two U.S. officials familiar with the matter. 

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CNBC reached out to China’s Foreign Ministry for comment but has yet to hear back.

The beach was limited to the diplomats’ unclassified email accounts, NBC said adding that Secretary of Commerce Gina Raimondo’s email account was also accessed in the breach, as previously reported.

The news, first reported by the Wall Street Journal, further fuels the fallout for the U.S. of the alleged Chinese hack first revealed last week. 

Late Tuesday, Microsoft announced it had discovered that China-based hackers breached email accounts of about 25 organizations, including some U.S. government agencies, in a significant breach.

The compromise was “mitigated” by Microsoft cybersecurity teams after it was first reported to the company in mid-June 2023, Microsoft said in two blog posts about the incidents. The hackers had been inside government systems since at least May, the company said.

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U.S. warns China

Blinken said he raised the issue of the Chinese hacking when he met China’s top diplomat Wang Yi in Jakarta last week, on the sidelines of the Association of Southeast Asian Nations regional meeting.

The U.S. Secretary noted he made clear to Wang that Washington will ensure the hackers are held responsible for alleged breaches of U.S. government agencies.

“First of all, this is something that the State Department actually detected last month, and we took immediate steps to protect our systems, to report the incident – in this case, notifying a company, Microsoft, of the event,” Blinken said at a press briefing.

“I can’t discuss details of our response beyond that, and most critically this incident remains under investigation,” he added.

Still, Blinken said that as a general matter, “we have consistently made clear to China as well as to other countries that any action that targets the U.S. Government or U.S. companies, American citizens, is of deep concern to us, and we will take appropriate action in response.”

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The secretary’s latest meeting with Wang came less than a month after Blinken made a rare trip to Beijing under the Biden administration.

The visit was aimed at soothing ties between the world’s two largest economies amid escalating tensions.

Security experts have argued the incidents demonstrate an acceleration in Beijing’s digital spying capabilities.

“Chinese cyber espionage operators’ tactics had steadily evolved to become more agile, stealthier, and complex to attribute” over the last decade, researchers at cybersecurity firm Mandiant wrote in a blog post Tuesday.

— CNBC’s Rohan Goswami contributed to this report.

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Genetic data is worth more than warm spit

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Genetic data is worth more than warm spit

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A quarter of a century ago, Scott McNealy, then chief executive of Sun Microsystems, famously dismissed consumer privacy in the internet age as an anachronistic distraction. “You have zero privacy anyway,” he said. “Get over it.” Judging by the way in which consumers have since posted details of their private lives all over social media and breezily ticked the intrusive terms and conditions boxes of many online companies, McNealy may have had a point.

But how we act and what we think can be two different things. Internet users do not appear to have “got over it” when it comes to privacy. Indeed, consumers are now telling pollsters that they increasingly worry about the misuse of their personal data and want stricter controls. A Pew Research poll in the US last year found that 81 per cent of respondents were concerned about how companies collected their data; 71 per cent expressed similar concerns about the government (compared with 64 per cent in 2019).

Such anxieties are all the more acute when it comes to highly sensitive personal information, such as genetic data, which not only affects one individual but all their relatives, too. When you spit into a tube and send it off for DNA testing, you are handing over unique data that cannot be anonymised. You are also sharing information about all your biological family, most likely without their consent. That makes it all the more critical that such data is secure. 

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In some cases, there are glaring concerns about who can access — or sell — that data. Several users of the London-based DNA testing company Atlas Biomed have recently expressed alarm about the security of their personal information. The business appears to be inactive — it is late filing its annual accounts and has not been active online. It reportedly did not respond to recent enquiries from the BBC and there has been speculation about its links with Russian business interests.

The Information Commissioner’s Office, which enforces Britain’s data privacy laws, also confirmed that it received a complaint about the company.

In the US, customers of the 23andMe DNA-testing service are also anxiously following the fate of the company, which this week admitted there was “substantial doubt” over its survival without the injection of fresh funds. Some 15mn people have used the service and around 80 per cent of them have agreed to share their data for scientific research. 

Anne Wojcicki, 23andMe’s co-founder and chief executive, has said she intends to take the company private and will not consider a third-party takeover. “We are committed to protecting customer data and are consistently focused on maintaining the privacy of our customers. That will not change,” the company said in a statement to the FT.

But users are unlikely to be reassured. 23andMe’s genetic data is not covered by the US federal Health Insurance Portability and Accountability Act (HIPAA), which applies to most medical data. It also suffered a serious data breach last year in which 6.9mn user accounts were compromised. Wojcicki has fallen out with the rest of the board, who have resigned en masse. And it is not clear what would happen to 23andMe’s data if the company went bust.

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“23andMe highlights very valid anxieties and fears people feel when they have given highly sensitive information to a company for a specific purpose,” says Sara Geoghegan, senior counsel at the Electronic Privacy Information Center in Washington DC. “Users deserve more than a pinky promise that their privacy wishes will be respected.” For more than 20 years, Epic has been campaigning for a federal privacy law that would protect users’ rights.

Such legislation seems unlikely given the anti-regulation stance of the incoming Trump administration — even if many Republicans are themselves concerned about data privacy. The only real alternative is for consumers to assert their power by wresting more control. They must press tech companies to minimise the data they collect, become more transparent about its use and ensure that user consent is voluntary and informed. “Even with the best possible laws, it will not be possible to stop criminals or foreign governments hacking into your data,” says Carissa Véliz, author of Privacy is Power. “Tech solutions are very important.”

Some digital services already offer privacy by design but there is currently little market incentive for their expansion. Users should contest McNealy’s fatalism and stimulate that consumer demand.

john.thornhill@ft.com

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Lindsey Vonn announces a comeback at 40, saying she's ready to race

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Lindsey Vonn announces a comeback at 40, saying she's ready to race

Record-setting skier Lindsey Vonn says she is mounting a comeback at age 40. She’s seen here in 2017, speaking to media ahead of the Pyeongchang Winter Olympics.

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Lindsey Vonn got a new knee earlier this year — and now she wants to test herself at the highest levels, announcing that she is training to return to competitive alpine skiing. Vonn, 40, says she’s finally feeling healthy, five years after she retired.

“Well, it’s off to Colorado…. I hope the [U.S. Ski Team] uniform still fits,” Vonn said on Thursday via Instagram.

News of Vonn’s comeback bid comes 20 years after she won her first World Cup race. The women’s season for the 2024-25 Alpine World Cup began on Oct. 26 and will end in March 2025.

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“Getting back to skiing without pain has been an incredible journey,” Vonn said in a release from U.S. Ski & Snowboard. “I am looking forward to being back with the Stifel U.S. Ski Team and to continue to share my knowledge of the sport with these incredible women.”

Vonn is one of the most decorated skiers of all time, and she still holds a number of records, including most World Cup victories by a woman or man in the downhill and the super-G. Her 82 World Cup wins trail only American Mikaela Shiffrin and Ingemar Stenmark of Sweden. She and Shiffrin are in an elite club of female skiers who have won World Cup events in all five disciplines: downhill, super-G, giant slalom, slalom and combined.

“Her dedication and passion towards alpine skiing is inspiring and we’re excited to have her back on snow and see where she can go from here,” U.S. Ski & Snowboard President and CEO Sophie Goldschmidt said.

Vonn’s ability to excel in speed disciplines has taken a toll on her body, with knee injuries — and at least nine surgeries — disrupting her career on the competitive circuit, even as she continued to rack up wins between setbacks.

“I have severe tri-compartment degeneration but the main compartment that has been painful is the lateral compartment, or the outside of my knee,” Vonn said in April. She described a type of knee replacement surgery in which bone is removed and replaced with titanium pieces.

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“With this new knee that is now a part of me… I feel like a whole new chapter of my life is unfolding before my eyes,” she said last month on Instagram.

If Vonn is able to return, it would be the latest sign that her abilities aren’t subject to the same constraints as other athletes. Back in 2012, her thirst for speed and competition led her to argue for being allowed to race against men, a request that the International Ski Federation rejected.

Weeks later, she skied at up to 136 kilometers per hour (84.5 mph) in a downhill training run at Lake Louise in Canada — a speed reportedly unmatched by male skiers at the event.

Vonn had recently hinted at a potential return to racing. And in recent months, her presence on slopes in New Zealand and Austria caused a stir, fueling speculation that she might try to resume competitive skiing in December, when World Cup races will be held in Colorado.

Sofia Goggia, Vonn’s friend and fellow speed specialist, welcomed those rumors, saying that a) it’s a sign Vonn feels healthy; and b) it would be fun to have her back.

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“It would be great to race in the World Cup with my idol,” Goggia told the Olympics.com site last month.

Even before her knee surgery, Vonn set out last year to accomplish an imposing goal: taking on the terrifyingly steep Streif downhill course in Kitzbühel, Austria. Early in the course, racers face an 85% incline known as the Mausefalle (the Mousetrap). At the steepest jump, soaring distances can top 260 feet.

“When you look out of the starting gate and it’s dark and you can’t see the Mausefalle, it looks like you’re jumping off the edge of the world and it’s very intimidating,” Vonn said afterward.

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She tackled the roughly 2-mile course, and its soaring jumps, at night. On a pair of borrowed skis and on a knee she would soon replace, Vonn’s speed reportedly topped 62 mph.

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Ukraine’s bonds jump as investors bet Trump will end war

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Ukraine’s bonds jump as investors bet Trump will end war

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Ukraine’s sovereign bonds have surged in price as investors bet that the incoming US administration will push for a quick end to the war with Russia.

The dollar-denominated bonds have risen 12 per cent in the past month, in expectation that the re-election of Donald Trump will lead to a ceasefire and boost Ukraine’s capacity to repay creditors.

The jump in the price of Ukrainian bonds, which one investor in the country called “the unlikeliest Trump trade ever”, comes as bets relating to the new administration have swept global financial markets in recent weeks.

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Trump has said he will end the war in Ukraine “within a day” of returning to the White House, though he has not offered specifics on how this would be achieved.

The rally has come just over two months after Kyiv completed a restructuring of more than $20bn of debt in one of the fastest and biggest sovereign debt workouts in modern history.

Bond investors are betting that the country will be prepared to accept a peace deal that involves permanently giving up territory it has lost in the war, and that its economy will recover quickly in the years ahead.

“The main part of the trade has really been based on the war ending, or at least the possibility of Trump pushing through the start of negotiations,” said Thys Louw, portfolio manager at Ninety One, which owns some Ukrainian bonds.

Among investors to own significant holdings of Ukrainian debt is fund manager BlackRock, which was a member of the bondholder committee that led the restructuring talks. BlackRock declined to comment.

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Ukrainian debt has outperformed emerging market indices since mid-October, when markets began to price in a Trump election victory.

Ukraine’s bond maturing in 2036 has risen from 44 to 49 cents on the dollar over the past month. So-called “GDP warrants” — debt securities issued under an older debt restructuring that will benefit from the country’s return of growth — having climbed even more sharply.

A bond owed by Ukrenergo, Ukraine’s state grid operator, has rallied more than 160 per cent this year to 67 cents on the dollar, despite renewed Russian attacks on infrastructure.

London-based hedge fund firm Shiprock Capital has profited from the jump in the warrants and Ukrainian corporate debt and is up 31 per cent this year to the end of October, according to an investor letter seen by the Financial Times.

Shiprock did not respond to a request for comment.

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During the early stages of the war, bondholders agreed to a halt on Kyiv’s interest payments. The September restructuring, which is designed to pave the way for Ukraine’s return to bond markets, ended the two-year freeze.

Under the September deal, investors agreed to take losses of more than a third on their bonds to help Ukraine control its surging wartime deficits — years before official creditors such as the UK, the US, Germany and Japan are set to restructure their own debts.

In return for agreeing to accept upfront losses, bondholders were also given the chance to receive higher payouts if Ukraine’s war-ravaged economy beats growth targets in the years ahead.

Some investors have cautioned that the outlook for Ukraine’s bonds is far from clear.

Mohammed Elmi, a portfolio manager at Federated Hermes, said he was sceptical of the market’s belief in Trump’s ability to secure a rapid peace deal.

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“I don’t fully subscribe to that kind of bullish view,” he said. “There is still a significant amount of unanswered questions” about where a settlement would leave Ukraine’s postwar economy and whether it would be a priority for the new US administration.

“Trump has a lot to do, with a big policy agenda to go through. These negotiations could also be quite prolonged,” he said.

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