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Why Kamala Harris’s price proposals could be damaging for the US economy

Published

2 hours ago

September 3, 2024

Why Kamala Harris’s price proposals could be damaging for the US economy

This article is an on-site version of our Chris Giles on Central Banks newsletter. Premium subscribers can sign up here to get the newsletter delivered every Tuesday. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Whether she is outlining her economic policies in a rally or answering questions in a CNN interview, Kamala Harris complains that grocery prices are wrong and she will stamp down on the injustices created.

It is good politics. In a YouGov poll last week, 60 per cent of US respondents supported the US vice-president’s plan to cap increases in grocery prices with only 27 per cent against. This is more popular than tariffs.

It is true, as my colleague Martin Sandbu has written, that Harris is unclear about her exact policy, but the Democratic presidential nominee clearly wants the public to believe that grocery prices are wrong and that she will lower them. The following sounds awfully like price controls to me.

Prices in particular for groceries are still too high. The American people know it. I know it. Which is why my agenda includes what we need to do to bring down the price of groceries. For example, dealing with an issue like price gouging.”

Since the topic of such controls tends to get supporters and detractors into a froth, I’m going to outline some obvious economic analysis on the topic I hope the majority of people can agree upon. Then we can look at what a Harris victory would imply.

Price controls are bad

It is important to restate the standard economic finding. Price controls are bad in the majority of markets and circumstances. Even proponents of occasional controls do not think they are a policy for all seasons. In next week’s Economics Show with Soumaya Keynes, for example, Isabella Weber agrees with me that in normal times they have no place and her discourse about sellers’ inflation (often referred to as “greedflation”) is an exception rather than a rule, at least in the past.

The full horror story of price controls — whether on groceries, rents or other goods and services — is set out comprehensively and simply in The War on Prices, edited by Ryan Bourne. The effects of a cap can be summarised as destroying valuable price signals, creating shortages and queues, reducing quality, hindering innovation, generating inequality between those benefiting and those not, and (for rent controls) locking people into homes, preventing them moving.

Alan Beattie outlined the beneficial effects of price signals in global agriculture (upstream groceries) last week.

Let me repeat. Price controls are bad.

History is also not kind to them as a way of helping restrain increases in the cost of living. For a near contemporary view of president Richard Nixon’s early 1970s price controls, Alan Blinder and William Newton found that they did restrain increases, but this mostly unravelled when the limits were dismantled in 1974. Controls in the UK were no more successful.

It’s fair to present the following chart with the period of widespread price control highlighted and allow readers to draw their own conclusions.

The evidence from theory and practice that price controls are bad does not mean all examples of unconstrained pricing cannot go wrong.

The sale of Oasis concert tickets in the UK over the weekend was an example where price signals were doing their thing in matching supply and demand but at the same time having all the downsides of queueing normally expected of a controlled price.

There are some general exceptions

Almost every economic rule comes with some exceptions. Here, the most notable and widespread are in wages and pharmaceutical prices. Both of these have been found to be governed by significant market power, undermining the price-setting process.

Low wages used to be considered simply a market price, demonstrating the low value of “unskilled” work. But empirical economic research, starting in the 1990s and led by David Card, showed that the expected relationships of raising minimum wages did not apply. Employment did not fall in New Jersey fast-food restaurants that were on the border of Pennsylvania when New Jersey’s minimum wage was raised. Card won a share of the Nobel Prize in 2021 for this body of work.

The finding that employers of low-wage workers might have market power has encouraged many countries to raise minimum wages significantly since the 1990s and without many downsides, although it has undoubtedly raised relative prices.

Take the UK, for example, which has raised minimum wages significantly since they were introduced in 1999. Unlike the $7.25 federal minimum, the chart below shows that the UK one definitively raises wages of the lowest paid. As the minimum wage has gone up, employment has not been noticeably affected and wage inequality has fallen a lot.

Minimum wages can have some unhelpful effects, of course, such as the elimination of pay premiums for unsocial hours. If you want to read how this affected a single company, I would recommend this legal judgment in the past month on a pay discrimination case for the retailer Next.

The second general exception is in drug prices. Again market power is the culprit where some companies raise prices way beyond what is reasonable and necessary to provide incentives to invent new drugs.

Competition policies would normally be the first port of call for government when companies are abusing a dominant position, but it can sometimes be simpler just to regulate the price. The Biden administration has done this with Medicare for insulin. The UK’s NHS and government negotiate drug prices on behalf of about 70mn people. This is not price control as such, but balancing one powerful supplier with an equally powerful purchaser, which has much the same effect.

There are some rare temporary exceptions

Weber’s concept of sellers’ inflation is an offshoot of much economic cost-push thinking. A shock disturbs prices, giving companies market power they do not normally have and this inflation becomes amplified and embedded as workers seek to defend their real wages.

Weber advocates governments taking early action to stop price rises and entering the conflict stages of inflation — through holding buffer stocks, price controls or subsidies. She praises Europe’s 2022 energy price intervention which limited the peak of inflation after wholesale natural gas prices rose 10-fold.

While Weber thinks these policies might be needed quite often in a future world of supply shocks, trade tensions and global warming, more mainstream economists disagree. But they do not disagree that price controls can be helpful.

For example, the IMF’s chief economist, Pierre-Olivier Gourinchas, highlighted last year how Europe’s energy subsidies probably lowered inflation and kept it closer to target by reducing headline inflation and limiting subsequent wage claims. It worked because there was significant slack in the Eurozone, he said. His chart is below. Note that the actions did not prevent inflation and only mitigated the effects a little.

The difference here among economists is not that the mainstream thinks it is impossible that Weber’s sellers’ inflation can happen; it is that they think the conditions are rare and the effects of price controls in these rare instances are pretty small.

An even more limited application is anti-price gouging laws. These exist in most US states, including red-blooded ones such as Texas, and are implemented generally after a natural disaster, aimed at stopping excessive profiteering by a few lucky suppliers who have stocks.

Just as in the European energy crisis, the price signal still applies, encouraging both new supply and a drop in demand, but the state imposes limits on the extent of price rises. While it is reasonable to have an argument about the effectiveness of these laws, they are, almost by definition, extremely limited in scope and not used in normal times.

Come on down, the price is wrong

Economists are happy for there to be competition investigations to ensure companies cannot exploit a position of market dominance.

The difficulty with Harris’s position on grocery pricing is that where Federal price-control regulations would be used sparingly, they cannot be very effective. Were the powers used extensively, they would be undesirable.

What I’ve been reading and watching

In a sign of what might be to come in the US if Donald Trump wins the race to the White House, Brazil’s President Luiz Inácio Lula da Silva has chosen a political ally and former deputy finance minister to head its central bank. Lula has railed against Brazil’s 10.5 per cent interest rate
Russia’s central bank has warned that its overheating economy will slow sharply next year
Danger money. The Libyan central bank governor, Sadiq al-Kabir, and his staff have been forced to flee his divided country after threats from armed militia, leading to the shutdown of most of the country’s oil production
My column on the Bank of England’s coming decision on quantitative tightening provocatively suggested it was more important than the coming Budget

A chart that matters

In a must-read speech last week, Isabel Schnabel, an executive board member of the European Central Bank, said Eurozone inflation was on track to hit the ECB’s forecasts. But there was a sting in the tail. She put up a version of the chart below to show that the predictive power of ECB inflation forecasts become steadily worse the longer the forecasting horizon. They are pretty accurate one quarter ahead, but at two-year horizons, the forecasts are essentially useless.

Her conclusion was that you need to look closely at scenarios of what might go wrong. Very sensible. All three of her scenarios were of inflation proving higher than the central forecast, which was quite revelatory of her stance.

That said, the charts are marvellous. They came from Christian Conrad and Zeno Enders of Heidelberg university, using more than 20 years of data. Be a little careful in interpreting the 45 degree line in these charts, however, as the FT’s graphics software cannot produce an accurate line and I had to hack it as best I could.

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A photographer captures life in America’s last remaining old-growth forests

Published

3 hours ago

September 3, 2024

Press Room

A photographer captures life in America’s last remaining old-growth forests

From mosses to mountain lions, the temperate old-growth rainforests of the Pacific Northwest provide the complexities and conditions necessary to support high levels of biodiversity. The Northwest Forest Plan has provided protection for these ancient ecosystems over the last 30 years and has helped advance forest management in Oregon, Washington and California. Developed in response to decades of unsustainable logging practices, the plan has helped restore forest ecosystems in 17 national forests.

David Herasimtschuk

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David Herasimtschuk

“As humans, our everyday lives are sustained by the behaviors and interactions of forest organisms,” photographer David Herasimtschuk writes of old growth forests. “Yet, because these processes and relationships occur in places and at scales rarely observed, our connection with forest biodiversity and the role it plays in nurturing our well-being often goes completely unnoticed.”

In the last 10 years, Herasimtschuk has photographed forests across the Pacific Northwest, documenting the inhabitants of these last remaining old-growth ecosystems. From salamanders and salmon to bears and mountain lions, his images illustrate not only the beauty of the forests and their creatures but the symbiotic relationships which are vital to the forests’ health and the planet’s welfare.

We interviewed Herasimtschuk about his efforts to educate people about the importance of preserving these ancient forests. The interview has been edited for clarity and length.

A group of pink salmon return home to the waters where they were born, bringing with them a pulse of nutrients that helps drive stream and forest ecosystems. From old-growth trees to aquatic insects, hundreds of species rely on the large amount of marine-derived nutrients that salmon provide. As salmon numbers have declined throughout the Pacific Northwest, this important ecological resource has been lost from many forest and river environments in the region. It’s now estimated that only 3-7% of the nutrients salmon deliver make it back into freshwater environments.

David Herasimtschuk

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David Herasimtschuk

What motivates you to photograph old-growth forests?

Protecting intact, mature and old-growth forests worldwide has been found to be one of the most immediate and cost-effective solutions to mitigating the impacts of climate change, yet adequate policy to manage these forests for ecosystem health and carbon storage has been limited.

The temperate rainforests of western North America have the highest carbon storage potential of any forest type in the world and are recognized as some of the most valuable ecosystems on the planet. Yet, conflicts over these forests have been ongoing since the 1980s, with the timber industry and conservation community battling over how they are managed.

Celebrating the beauty and importance of these environments, this photo essay is a present-day look at the complex connections we share with these forests. Currently, there are numerous proposed policy initiatives that are focused on creating a new framework for forest health and old-growth protection in the Pacific Northwest. This includes a movement to protect mature forests, which are made up of trees that are 80-150 years old and viewed as comprising the next generations of old-growth forests.

Climbing through an understory of fallen Douglas firs, a young black bear explores an old-growth forest in Oregon’s Coast Range. Researchers are finding that fallen trees, also known as “dead wood,” play an important role in forest ecosystems and influence everything from moisture and carbon storage to providing habitat for a number of species.

David Herasimtschuk

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David Herasimtschuk

These legislative actions also contain policy to update and rethink how private and state forests are managed in the state of Oregon, as well as work to modernize forest protection on federal lands nationwide. In an effort to advance our country’s climate initiatives, the Biden administration enacted an executive order in 2022 that committed the federal government to protecting the few remaining mature and old-growth forests we have left. In response to that order, the U.S. Forest Service plans to make major revisions to both the National Forest Plan and Northwest Forest Plan this year.

With many decisions currently being discussed about the fate of our forests in the Pacific Northwest, it’s important that the public and decision-makers understand how healthy forests function, and have the information they need to make science-based decisions in regard to forest management.

A clear-cut forest in Oregon’s Coast Range Forest. Recent research and analysis has shown that industrial logging practices impact both water quality and quantity. In Oregon’s Coast Range, stream flow was found to decrease by 50% on tree plantations that were cut on 40- to 50-year rotations.

David Herasimtschuk

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David Herasimtschuk

How long have you been working on this project?

I have been working, living and exploring in the Pacific Northwest since 2011, and started this old-growth focused project in 2022.

What kinds of images were you hoping to capture with your work?

From the top of the canopy to the waters below, my goal for this project is to create a series of photos that provide an entire ecosystem aesthetic. To do this, I work to create wide-angle images that put a species, or human, in context of the forest or habitat type.

Currently, a large amount of my work focuses on the connections between forests, rivers and fish. In the Pacific Northwest, the relationship between salmon and forests embodies a sense of connection that seems almost mystical. Delivering a pulse of nutrients, returning adult salmon nourish some of the largest trees in the world, and in return, these ancient forests provide a foundation for the complexity of conditions that salmon and other fish rely on. For millions of years, salmon, trout and numerous other aquatic species have adapted to the conditions created by these massive trees. From bank stabilization and water filtration to the creation of cover and spawning habitat, large trees provide a multitude of ecosystem services for aquatic environments.

In the Pacific Northwest it’s becoming increasingly difficult to experience large salmon runs that are similar to what was seen historically. With the forests of the Pacific Northwest having some of the highest carbon storage potential of any forest type in the world, and the ability for certain tree species to grow up to three times faster with salmon nutrients. It is believed that salmon restoration could be an important tool to help increase a forest’s ability to sequester carbon in the region.

In the Pacific Northwest, it’s becoming increasingly difficult to experience large salmon runs that are similar to what was seen historically. The forests of the Pacific Northwest have some of the highest carbon storage potential of any forest type in the world. With certain tree species’ ability to grow up to three times faster when supported by the nutrients salmon bring to a forest’s ecosystem, it’s believed that salmon restoration could be an important tool to help increase a forest’s ability to sequester carbon in the region.

David Herasimtschuk/Freshwaters Illustrated

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David Herasimtschuk/Freshwaters Illustrated

To illustrate these relationships, or to show how these connections have been lost, I work to find opportunities where I can put fish and forests in the same image. This type of image often helps share the story of how forest management plays a critical role in salmon conservation.

A male coho salmon migrates to its spawning waters in a small creek in Oregon’s Coast Range. Over a century of commercial logging has removed most of the old-growth trees from the region, resulting in riparian forests that are made up of much smaller trees. This lack of larger trees has had a major impact on forest and river ecosystems in the Northwest and remains as a major factor limiting in the conservation of federally protected fish, like coho salmon.

David Herasimtschuk/Freshwaters Illustrated

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What have you learned about the forest’s ecosystem since you’ve started this project?

One of the most important concepts I’ve come to understand while working on this project is that not all forests are equal. How we manage a forest can have huge repercussions that impact numerous species and processes, and can often lead to changes in ecosystem services that humans rely on.

Historically, the idea of old-growth forests as important natural systems was not the dominant perspective in our society. These ancient trees were once considered crops and perceived as “biological deserts.” Industrial logging in the 20th century removed most of the old growth, resulting in the younger forests we experience today. While some areas on federal land have been protected, allowing forests to regrow, there have also been large tracts of private land that are now managed for timber, and are cut every 50-80 years to meet the demand for timber.

A giant Douglas Fir disappears into the fog in Oregon’s Coast Range. The temperate rainforests of western Oregon have some of the highest potential to capture carbon of any forest type in the world, storing an average of 1,127 metric tons per hectare.

David Herasimtschuk

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David Herasimtschuk

Over the last 50 years, science has been working to understand how these impacts have changed forest ecosystems in the region. Beyond carbon sequestration, scientists are finding these environments play an important role in a multitude of ecosystem services, including water quantity and quality, and that management decisions can greatly impact these processes.

What have you learned that’s surprised you?

Looking beyond their physical beauty, scientists are discovering that old-growth forests are home to a network of almost unfathomable connections that showcase the importance and complexity of regions biodiversity. One of the greatest examples is the relationship between salmon and trees. Salmon are fundamental to the health of forest ecosystems in the Pacific Northwest. As they return home to spawn and die, they bring with them a large pulse of nutrients that helps drive stream and forest ecosystems. By absorbing the nutrients from decaying fish, researchers have found that salmon actually provide nitrogen to trees, which is a limited nutrient in forest ecosystems. It’s even been discovered that certain tree species can grow up to three times faster when influenced by salmon. As populations of these vital fish continue to decline throughout the Pacific Northwest, scientists worry that trees and forests no longer receive nutrients they need to reach their full ecological potential.

A western red-backed salamander navigates the understory leaf litter in a mature forest in Oregon’s Coast Range. Researchers in the Northwest have found that woodland salamanders actually play an important role in carbon storage by feeding on invertebrates that release carbon.

David Herasimtschuk/Freshwaters Illustrated

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David Herasimtschuk/Freshwaters Illustrated

Beyond the salmon and trees, some of the largest surprises in these forests come from some of the smallest species, like salamanders. Due to the cryptic nature of these amphibians, it’s hard to grasp their true importance within an ecosystem, but recent research has demonstrated that these amphibians play an important role in the global carbon cycle.

In Northern California, scientists have revealed that, by hunting and preying on insects that spend their lives ripping, shredding and feeding on leaves — a behavior that actually releases carbon dioxide into the atmosphere — salamanders effectively prevent this carbon from entering the atmosphere and allow it to stay locked in leaves and on the forest floor.

A group of rough-skinned newts interact with a breeding pair of newts in a small pond in Oregon’s Coast Range Mountains.

David Herasimtschuk/Freshwaters Illustrated

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What is your process for documenting the wildlife in the forest? Do you need special equipment?

Working and photographing in old-growth forests definitely comes with a unique set of challenges, and through trial and error, I’ve been able to develop methods that work relatively well in these environments. Documenting these forests from an ecosystem perspective often means I need a wide range of gear. This includes everything from underwater housings and drysuits to document fish, to camera traps to photograph large mammals like bears.

For me, personally, I also really enjoy the process and exploration that goes into the creation of each photograph. For each image, this often results in many miles hiked, and snorkeled, to learn the best locations and approaches to photograph different species. Most days aren’t a great success, photographically speaking, but I love being in the forest, and with each outing, I feel like I learn a little more.

Biologists from Oregon State University survey for trout and amphibians at HJ Andrews Experimental Forest. Tucked in the Cascade Mountain Range in Western Oregon, this long term ecological research site is one of the most studied old-growth ecosystems on the planet and has laid the foundation for how we understand forests world-wide.

Biologists from Oregon State University survey for trout and amphibians in the H.J. Andrews Experimental Forest. Tucked in the Cascade Mountain Range in western Oregon, this long-term ecological research site is one of the most studied old-growth ecosystems on the planet and has laid the foundation for how we understand forests worldwide.

David Herasimtschuk/Freshwaters Illustrated

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Do you work with scientists studying forest ecosystems? If so, how does that collaboration work?

Working at the confluence of science, conservation and storytelling, I’ve been fortunate to collaborate with many passionate scientists working at the forefront of forest ecology. Much of the imagery created for this project has been guided and inspired by the research and science from H.J. Andrews Experimental Forest, a forest co-managed by the U.S. Forest Service and Oregon State University. Tucked in the Cascade Mountain Range in western Oregon, this long-term ecological research site is one of the most studied old-growth ecosystems on the planet and has laid the foundation for forest science, understanding and policy worldwide.

As we move forward in our approach to address climate change, finding engaging and novel ways to communicate science becomes more important than ever. Working closely with the researchers who are uncovering the importance and mysteries of our natural world, this project focuses on creating imagery that sparks curiosity and helps celebrate the interactions and relationships in nature that are difficult to see.

A young black-tailed deer blends in among a pair of decomposing Douglas fir snags in Oregon’s Coast Range. Providing critical habitat for over one hundred species, snags help create locations for nesting, shelter and foraging, and are an incredibly important component to healthy old-growth ecosystems.

David Herasimtschuk

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David Herasimtschuk

What are some of your favorite images?

I think some of my favorite images so far for this project have been the ones created using camera traps. Communicating the size of old-growth trees is often difficult, so it’s helpful to have a subject in the image to convey scale. Few species symbolize wild environments better than mountain lions and bears, so to be able to create images of these elusive predators as they explore their old-growth habitats is truly special.

Navigating a maze of giant Douglas firs, a large black bear explores its home in one of the last old-growth stands left in Oregon’s Coast Range. These towering trees provide important habitat for bears, who use tree cavities as denning sites for their young and for hibernation.

David Herasimtschuk

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David Herasimtschuk

Creating a useful image with a camera trap can often take months of work and fine-tuning, and even then, it’s rare to get the shot you hoped for. The cameras sit in the forests for long periods of time, exposed to the elements and curious wildlife. It’s not uncommon to return to a trap to find it has been dismantled by a bear or knocked over from falling trees and branches.

Yet, with a little luck and a lot of persistence, every now and then you create a photo where all the elements come together. These unique photos provide an intimate perspective of these environments that few have ever seen, making them a valuable tool to help teach audiences about the importance of these forests.

What do you want people to come away with after looking at these images?

As the climate and planet continue to change, many people are trying to understand and grasp how the natural world is connected to their everyday lives. So often, the question is asked, what is the value of an individual species? Or what is the value of biodiversity? By creating storytelling imagery that helps audiences recognize the relevance of forest life, my hope is that this project will engage and inform audiences about the importance of old-growth ecosystems in the Pacific Northwest. Bringing to attention the individual species and relationships within ecosystems that play a role in maintaining our planet, my goal is to spark curiosity and wonder, encouraging people to want to learn more.

As our demand and impact on forests continues to grow worldwide, I believe images and stories of the environments and species affected will play a critical role in visually connecting forest ecosystems to their would-be stewards. Understanding the importance of biodiversity and how forests function is a critical part in creating that connection.

A hiker photographs a large Western hemlock in and old-growth forest in Oregon’s Coast Range. Coastal forests in the region have some of the highest carbon storing potential of any forest type in the world.

A hiker photographs a large western hemlock in an old-growth forest in Oregon’s Coast Range. Coastal forests in the region have some of the highest carbon-storing potential of any forest type in the world.

David Herasimtschuk

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David Herasimtschuk

David Herasimtschuk is a documentary photographer whose work focuses on forest and freshwater environments. You can find more of his photography on his website, DavidHerasimtschuk.com, and on Instagram, at @davidherasimtschuk.

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Huawei’s buggy software hampers China’s efforts to replace Nvidia in AI

Published

9 hours ago

September 3, 2024

Press Room

Huawei’s buggy software hampers China’s efforts to replace Nvidia in AI

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China’s efforts to match US computing power in artificial intelligence are being hampered by bug-ridden software, with customers of leading AI chipmaker Huawei complaining about performance issues and the difficulty of switching from Nvidia products.

The Chinese technology giant has emerged as the frontrunner in the race to develop a domestic alternative to industry leader Nvidia, after Washington further tightened export controls on high-performance silicon last October.

Its Ascend series has become an increasingly popular option for Chinese AI groups to run inference, a process that applications such as OpenAI’s ChatGPT use to generate responses to queries.

But multiple industry insiders, including an AI engineer at a partner company, said the chips still lagged far behind Nvidia’s for the initial training of models. They blamed stability issues, slower inter-chip connectivity and inferior software developed by Huawei called Cann.

Nvidia’s software platform Cuda is renowned as the company’s “secret sauce” for being easy for developers to use and capable of vastly accelerating data processing. Huawei is one of many companies trying to break Nvidia’s stranglehold on AI chips by creating alternative software.

Huawei’s own employees are among those complaining about Cann. One researcher, who declined to be named, said it made the Ascend product “difficult and unstable to use” and work on testing it was being hampered.

“When random errors occur, it is very difficult to find out where it comes from due to poor documentation. You need talented developers to read the source code to see what the issue is, which slows everything down. The coding is imperfect,” they said.

Another Chinese engineer briefed on Baidu’s use of the Huawei processors said the chips crashed frequently, complicating AI development work.

The Huawei researcher said crashes happened because it was difficult to use the hardware. “It is easy to get bad results because people don’t know much about the hardware itself,” they said.

To tackle the problem, Huawei has been sending engineers to help customers on site with transferring training code previously written on Cuda into Cann, according to multiple people familiar with the matter. Baidu, iFlytek and Tencent are among the tech companies that have received teams of engineers, these people said.

Huawei declined to comment. Baidu, iFlytek and Tencent did not respond to requests for comment.

A former Baidu employee said: “Huawei excels at customer service, so of course they have engineers on site at their big customers, helping them to use their chips.”

Huawei can leverage a huge workforce to accelerate the shift. According to the company, more than 50 per cent of its 207,000 employees work in research and development, including the engineers dispatched to install technology for customers.

“Huawei’s advantage over Nvidia is it can work closely with its customers,” said technology analyst Tilly Zhang at consultancy Gavekal. “Unlike Nvidia, it has a large team of engineers to help solve clients’ problems and get them to transition to their hardware.”

Huawei has also set up an online portal for developers to give feedback on how its software can be improved.

After US tightened export controls in October, Huawei raised the price of the Ascend 910B, its chip used for training, by 20 to 30 per cent, according to people familiar with the matter.

Huawei’s customers have also expressed concern about supply constraints for the Ascend chip, likely due to manufacturing difficulties, with Chinese companies prevented from buying state of the art chipmaking machinery from the Dutch company ASML.

Huawei has seen strong demand for its AI chips. It reported a 34 per cent increase in first-half revenues on Thursday, without providing a breakdown of sales for its different businesses.

More than 50 foundational models have “been trained and iterated” on the Ascend chip, Huawei executive director Zhang Ping’an said at the World Artificial Intelligence Conference in Shanghai in July.

iFlytek has said its large language model has been trained exclusively on Huawei chips after Huawei sent a group of engineers to its headquarters in Hefei, eastern China, last year to integrate the technology.

Video: AI power demand could stifle industry’s growth | FT Energy Source

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California's Rancho Palos Verdes hit hard by landslide: Power cut, evacuations, emergency funding announced – Times of India

Published

10 hours ago

September 3, 2024

Press Room

Power has been shut off to homes on a cliff in Rancho Palos Verdes, a coastal area 25 miles south of downtown Los Angeles, as landslides worsen. The expanding landslide now covers 680 acres, threatening multimillion-dollar homes and prompting evacuation warnings for over 100 residences, officials said.
Southern California Edison (SCE) has already cut power to 140 homes, with another 105 expected to lose electricity by Monday night as the shifting ground poses a threat to utility lines.
“SCE has identified a public safety threat,” the utility company said, announcing that electricity service would be discontinued in the affected zones starting Sunday, September 1, at 12 PM. They warned residents not to use water or plumbing after the power is cut, as this could result in a sewer spill.

‘This situation is unprecedented’
“This situation is unprecedented,” said Rancho Palos Verdes City Council member Barbara Ferraro on Sunday. “We are unsure how to proceed.”
City officials reported that homes, roads, and infrastructure have already been damaged by the landslide, which has accelerated since heavy rains in the spring of 2023.
County allocates $5 million
Los Angeles County Supervisor Janice Hahn announced a $5 million allocation to address the disaster, noting the severity of the land movement.
Hahn urges governor to declare state of emergency
Hahn has urged Governor Gavin Newsom to declare a state of emergency, highlighting the unprecedented acceleration of the landslide and the need for a greater state and federal response.
On Monday, the California Governor’s Office of Emergency Services said it is working with emergency officials in Los Angeles County. “The Governor’s Office of Emergency Services is in ongoing communication with the City, County, and FEMA regarding the evolving situation in Rancho Palos Verdes,” the agency said in a statement.
Infrastructure damage and safety concerns
Officials reported that the shifting land has caused leaks in water and gas lines, with at least two homes declared uninhabitable. Earlier this month, the landslide caused a 10,000-gallon sewer spill. A fire last week, sparked by a downed power line due to shifting land, highlights the dangers in the area, according to Southern California Edison spokesperson Kathleen Dunleavy.
The landslide, which has intensified with some areas shifting up to 10 inches a week, has led to increased patrols and drone surveillance by the Los Angeles County Sheriff’s Department to prevent looting. Sheriff Robert Luna warned, “Anyone caught stealing will be arrested.”
Rancho Palos Verdes has been under a local state of emergency since October 2023, with natural gas shut off in the Portuguese Bend area on July 29. The slow-moving landslide, part of an ancient complex activated by a 1956 road expansion, is one of the largest active landslides in the US, shifting homes by hundreds of feet and costing the city about $1 million annually for road repairs.