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      Aukus will ‘get done’ despite jitters in Congress, Biden tells Albanese at White House meeting

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      Joe Biden has played down congressional jitters over the Aukus nuclear-powered submarine deal and has revealed he assured Xi Jinping that the countries involved are not aiming to “surround China”.The US president welcomed the Australian prime minister, Anthony Albanese, to the White House and insisted he was “confident that we’re going to be able to get the money for Aukus because it’s overwhelmingly in our interest”.“So the question is not if, but when,” Biden said during a joint press conference with Albanese in the rose garden on Wednesday US time (Thursday Australian time).Biden also relayed a conversation he previously had with China’s president about the Aukus security partnership, in which Australia, the US and the UK have pledged to work together on advanced defence capabilities.“When I was asked when we put together the deal, I was asked by Xi Jinping, were we just trying to surround China?,” Biden said“I said, no, we’re not surrounding China. We’re just making sure that the sea lanes remain open, it doesn’t unilaterally to be able to change the rules of the road in terms of what constitutes international airspace and water, space, etc.”Biden and Albanese spoke to reporters after wide-ranging talks at the White House. They pledged to cooperate in numerous fields, including space, with a deal paving the way for launches of US commercial space vehicles from Australia.There was a heavy emphasis on working with Pacific countries amid intensifying competition for influence in the region.The leaders announced plans for the US and Australia to “co‑finance critical maritime infrastructure projects in Kiribati, including the rehabilitation of Kanton Wharf and Charlie Wharf in Tarawa”. They will also assist Pacific countries with banking services and undersea cables.The climate crisis formed a significant part of the talks, with plans to collaborate on battery supply chains “to explore the deepening of both countries’ manufacturing capability and work on battery technology research and development”.In their joint statement, Biden and Albanese acknowledged that “achieving the goals of the Paris Agreement will require rapid deployment of clean energy and decarbonisation technologies, and increased electrification in our countries this decade, alongside the phasedown of unabated coal power”.It was the ninth time Albanese has met with Biden since the May 2022 election, although the earlier meetings mostly occurred on the sidelines of international events.Biden and the first lady, Jill Biden, welcomed Albanese and his partner, Jodie Haydon, to the White House for a private dinner on Tuesday evening but the main diplomatic talks were held on Wednesday.The day began with a welcome on the south lawn of the White House before the two leaders held a formal meeting in the Oval Office.Biden began that meeting by apologising “again for not being able to make my visit to Australia” in May when the Quad summit in Sydney was called off because of debt ceiling negotiations in the US.“Things were a little bit in disarray here and required to be home,” Biden told Albanese.Albanese will be feted at a state dinner later on Wednesday US time (late Thursday morning AEDT).Biden described ties with Australia as “strong” and getting “stronger”, while Albanese said the alliance was based on “a faith in freedom and democracy, a belief in opportunity, a determination to build a prosperous and more peaceful world”.However, seven months after Albanese joined Biden and the British prime minister, Rishi Sunak, in San Diego to announce the Aukus plans, there remains uncertainty over congressional approvals needed for them to succeed.Aukus will require reforms to the US export control system. Congress will also need to authorise the sale of at least three Virginia-class submarines to Australia in the 2030s but some Republicans have raised concerns that will come at the cost of the US’s own needs. Australian-built nuclear-powered submarines are due to enter into service from the 2040s.Standing alongside Albanese on Wednesday, Biden urged Congress to “pass our Aukus legislation this year”.Albanese played down concerns about the deal, saying he regarded the US “as a very reliable partner”.“And I regard the relationship that I have with the president as second to none of the relationships that I have around the world, or indeed domestically, for that matter,” Albanese said.The prime minister said he was “very confident in the discussions that I’ve had with Democrats and Republicans that there is very broad support for the Aukus arrangements”.Albanese said he looked forward to “a constructive dialogue” when he visits China next month, describing such talks as important to build understanding and reduce tensions.Biden and Albanese also discussed the Israel-Hamas conflict. In their joint statement, they said Hamas attacks on Israel “can have no justification, no legitimacy, and must be universally condemned”.While pledging to “support Israel as it defends itself and its people against such atrocities”, the two leaders also called on “all parties to act consistent with the principles of international law and to protect civilians as an utmost priority”.“We are concerned at the humanitarian situation in Gaza and call on all actors to ensure the provision of humanitarian supplies to populations in need,” Biden and Albanese said.“Our two countries support equal measures of dignity, freedom, and self-determination for Israelis and Palestinians alike and we mourn every civilian life lost in this conflict. We continue to support Palestinian aspirations for a state of their own and consider a two-state solution as the best avenue towards a lasting peace.”Albanese announced that Australia would provide an additional $15m in humanitarian assistance for civilians in Gaza. More

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      in US Politics

      US orders immediate stop to some AI chip exports to China; Lloyds profits up but lending margins fall – business live

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      Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.The US has ordered the immediate halt of exports to China of hi-tech computer chips used for artificial intelligence, chipmaker Nvidia has said.Nvidia said the US had brought forward a ban which had given the company 30 days from 17 October to stop shipments. Instead of a grace period, the ban is “effective immediately”, the company said in a statement to US regulators.The company did not say why the ban had been brought forward so abruptly, but it comes amid a deep rivalry between the US and China over who will dominate the AI boom.Nvidia said that shipments of its A100, A800, H100, H800, and L40S chips would be affected. Those chips, which retail at several thousand dollars apiece, are specifically designed for use in datacentres to train AI and large language models.Demand for AI chips has soared as excitement has grown about the capabilities of generative AI, which can produce new text, images and video based on the inputs of huge volumes of data.Nvidia said it “does not anticipate that the accelerated timing of the licensing requirements will have a near-term meaningful impact on its financial results”.Lloyds profits up but competition squeezes marginsIn the UK, Lloyds Banking Group has reported a rise in profits even as it said competition was hitting its margins as mortgage rates fall back.Britain’s biggest bank said it made £1.9bn in profits from July to September, an increase compared to the £576m for the same period last year. The comparison has an important caveat, however: the bank has restated its financials to conform to new accounting rules.Net interest margin – the measure of the difference between the cost of borrowing and what it charges customers when it lends – was 3.08% in the third quarter, down 0.06 percentage points in the quarter “given the expected mortgage and deposit pricing headwinds”, it said.The bank did set aside £800m to deal with rising defaults from borrowers, but said that it was still seeing “broadly stable credit trends and resilient asset quality”.The agendaFilters BETAAn EY-linked auditor to the Adani Group is under scrutiny from India’s accounting regulator, Bloomberg News has reported.The National Financial Reporting Authority, or NFRA, has started an inquiry into, S.R. Batliboi, a member firm of EY in India, Bloomberg said, citing unnamed sources.S.R. Batliboi is the auditor for five Adani companies which account for about half Adani’s revenues.Bloomberg reported that representatives for NFRA and the Adani Group didn’t respond to an emailed request for comments. A representative for EY and S.R. Batliboi declined to comment to Bloomberg.China’s economic slowdown is causing worries at home, as well as in Germany and other big trade partners.A series of Chinese government actions have signalled their concern about slowing growth, which could cause problems for an authoritarian regime.Xi Jinping, China’s president, visited the People’s Bank of China for the first time, according to reports yesterday. “The purpose of the visit was not immediately known,” said Reuters, ominously.State media also reported that China had sharply lifted its 2023 budget deficit to about 3.8% of GDP because of an extra $137bn in government borrowing. That was up from 3%. The Global Times, a state-controlled newspaper, said the move would “benefit home consumption and the country’s economic growth”, citing an unnamed official.Germany’s economic fortunes were better than expected in October, according to a closely watched indicator – but whether it’s overall good news or bad depends on who you ask.The ifo business climate index rose from 85.8 to 86.9 points, higher than the 85.9 expected by economists polled beforehand by Reuters.Germany has been struggling as growth slows in China, a key export market, as well as the costs of switching from Russian gas to fuel its economy. You can read more context here:Franziska Palmas, senior Europe economist at Capital Economics, a consultancy, is firmly in team glass half empty. She said:
      The small rise in the Ifo business climate index (BCI) in October still left the index in contractionary territory, echoing the downbeat message from the composite PMI released yesterday. This chimes with our view that the German economy is again recession.
      Despite the improvement in October, the bigger picture remains that the German economy is struggling. The Ifo current conditions index, which has a better relationship with GDP than the BCI, is still consistent with GDP contracting by around 1% quarter-on-quarter. This is an even worse picture than that painted by the composite PMI, which fell in October but points to output dropping by “only” 0.5% quarter-on-quarter.
      But journalist Holger Zschaepitz said it looks like things are improving:UK house prices will continue to slide this year and in 2024 and will not start to recover until 2025, Lloyds Banking Group has forecast.The lender, which owns Halifax and is Britain’s largest mortgage provider, said that by the end of 2023 UK house prices will have fallen 5% over the course of the year and are likely to fall another 2.4% in 2024.Those forecasts, which were released alongside its third-quarter financial results on Wednesday, suggest UK house prices will have dropped 11% from their peak last year, when the market was still being fuelled by a rush for larger homes in the wake of the coronavirus pandemic.Lloyds said the first signs of growth would only start to emerge in 2025, with its economists predicting a 2.3% increase in house prices that year.You can read the full report here:The Israel-Hamas conflict adds another cloud on the horizon for the global economy, according to the head of the International Monetary Fund (IMF).Kristalina Georgieva was at “Davos in the desert”, a big conference hosted by Saudi Arabia.The Future Investment Initiative conference was the subject of boycotts five years ago when Saudi crown prince Mohammed bin Salman allegedly ordered the murder of exiled critic Jamal Khasoggi. The distaste of global leaders has apparently faded since, however.Speaking on the Israel-Hamas conflict, Georgieva said (via Reuters):
      What we see is more jitters in what has already been an anxious world. And on a horizon that had plenty of clouds, one more – and it can get deeper.
      The war has been devastating for Israel and Gaza. Hamas killed more than 1,400 people and took more than 220 people as hostages in an assault on Israel. The health ministry in Gaza, which is run by Hamas, said last night that Gaza’s total death toll after 18 days of retaliatory bombing was 5,791 people, including 2,360 children.The broader economic impacts have been relatively limited, but Georgieva said that some neighbouring countries were feeling them:
      Egypt, Lebanon, Jordan. There, the channels of impact are already visible. Uncertainty is a killer for tourists inflows. Investors are going to be shy to go to that place.
      Reckitt, the maker of Dettol bleach and Finish dishwasher products, has missed sales expectations as revenues dropped 3.6% year-on-year in the third quarter.Its shares were down 2.3% on Wednesday morning, despite it also committing to buy back £1bn in shares.It missed expectations because of the comparison with strong sales in the same period last year in its nutrition division, which makes baby milk powder.Kris Licht, Reckitt’s chief executive, said:
      Reckitt delivered a strong quarter with 6.7% like-for-like growth across our hygiene and health businesses and has maintained market leadership in our US nutrition business.
      We are firmly on track to deliver our full year targets, despite some tough prior year comparatives that we continue to face in our US Nutrition business and across our OTC [over-the-counter medicines] portfolio in the fourth quarter.
      Speaking of Deutsche Bank, it posted its own earnings this morning: third-quarter profits dropped by 8%, but that was better than expected by analysts.Shares in Deutsche, which has struggled in the long shadow of the financial crisis, are up 4.2% in early trading.Reuters reported:
      The bank was slightly more optimistic on its revenue outlook for the full year, forecasting it would reach €29bn ($30.73bn), the top end of its previous guidance range, as it upgraded the outlook for revenue at the retail division.
      Net profit attributable to shareholders at Germany’s largest bank was €1.031bn, better than analyst expectations for profit of around €937m.
      Though earnings dropped, it marked the 13th consecutive profitable quarter, a considerable streak in the black after years of hefty losses.
      Here are the opening snaps from across Europe’s stock market indices, via Reuters:
      EUROPE’S STOXX 600 DOWN 0.1%
      FRANCE’S CAC 40 DOWN 0.4%
      SPAIN’S IBEX DOWN 0.3%
      EURO STOXX INDEX DOWN 0.2%
      EURO ZONE BLUE CHIPS DOWN 0.3%
      European indices appeared to be taking their lead from the US, where Google owner Alphabet’s share price dropped in after-hours trading last night. That dragged down futures for US tech companies, even though another tech titan, Microsoft, pleased investors.Analysts led by Jim Reid at Deutsche Bank said:
      Microsoft saw its shares rise +3.95% in after-market trading as revenues of $56.52bn (+13% y/y) beat estimates of $54.54bn and EPS came in at $2.99 (v $2.65 expected). The beat comes on the back of recovering cloud-computing growth with corporate customers spending more than expected. The other megacap, Alphabet, missed on their cloud revenue estimates at $8.4bn (v $8.6bn) with the share price falling -5.93% after hours as operating income and margins both surprised slightly to the downside.
      You can read more about Google’s performance here:We’re off to the races on the London Stock Exchange this morning: and the FTSE 100 has dipped at the open.Shares on London’s blue-chip index are down by 0.15% in the early trades. Lloyds Banking Group shares initially moved higher, but now they are down 2.1% after they flagged increasing competition hitting net interest margins.Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.The US has ordered the immediate halt of exports to China of hi-tech computer chips used for artificial intelligence, chipmaker Nvidia has said.Nvidia said the US had brought forward a ban which had given the company 30 days from 17 October to stop shipments. Instead of a grace period, the ban is “effective immediately”, the company said in a statement to US regulators.The company did not say why the ban had been brought forward so abruptly, but it comes amid a deep rivalry between the US and China over who will dominate the AI boom.Nvidia said that shipments of its A100, A800, H100, H800, and L40S chips would be affected. Those chips, which retail at several thousand dollars apiece, are specifically designed for use in datacentres to train AI and large language models.Demand for AI chips has soared as excitement has grown about the capabilities of generative AI, which can produce new text, images and video based on the inputs of huge volumes of data.Nvidia said it “does not anticipate that the accelerated timing of the licensing requirements will have a near-term meaningful impact on its financial results”.Lloyds profits up but competition squeezes marginsIn the UK, Lloyds Banking Group has reported a rise in profits even as it said competition was hitting its margins as mortgage rates fall back.Britain’s biggest bank said it made £1.9bn in profits from July to September, an increase compared to the £576m for the same period last year. The comparison has an important caveat, however: the bank has restated its financials to conform to new accounting rules.Net interest margin – the measure of the difference between the cost of borrowing and what it charges customers when it lends – was 3.08% in the third quarter, down 0.06 percentage points in the quarter “given the expected mortgage and deposit pricing headwinds”, it said.The bank did set aside £800m to deal with rising defaults from borrowers, but said that it was still seeing “broadly stable credit trends and resilient asset quality”.The agenda More

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      in US Politics

      ‘A dangerous game’: Republican chaos and indecision as crises shake the world

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      The US’s closest ally in the Middle East is reeling from what many call its “9/11” and now a humanitarian disaster looms in Gaza. Winter is approaching in Ukraine, which needs urgent supplies to maintain its counteroffensive against Russia. From China’s expansive ambitions, to coups in Africa, to the climate crisis, the world is crying out for leadership.But on Capitol Hill in Washington, Republicans can’t find one. Friday marked the 10th day of paralysis as the party struggles to elect a speaker of the House of Representatives to replace the ousted Kevin McCarthy. This after majority leader Steve Scalise won a closed-door vote but abandoned his run because he lacked enough support to win on the House floor.Such petty bickering, grievances and vendettas might typically fascinate seasoned Washington watchers and readers of political insider newsletters but be met by a shrug by many Americans and indifference overseas. This time, however, is different. The ripples of Republican dysfunction could soon be felt across a troubled world.“It’s a dangerous game that we’re playing,” Michael McCaul, chairman of the House foreign affairs committee, told reporters on Thursday. “It just proves our adversaries right that democracy doesn’t work. Our adversaries are watching us and Israel is watching. They need our help.”McCaul, a Republican congressman from Texas, has put forward a bipartisan resolution with Gregory Meeks of New York, the top Democrat on the committee, condemning Hamas and reaffirming support for Israel. But the House cannot vote on it until there is a speaker in the chair.McCaul added: “I’m going to remind my colleagues about how dangerous this is. If we don’t have a speaker, we can’t assist Israel in this great time of need after this terrorist attack. So I think we’re playing with fire and we need to stop playing games and politics with this and vote a speaker in.”The House speaker is the third-highest-ranking elected official in the country, second in line to the presidency. Without one, legislative business is at a standstill. The House is currently under the control of Representative Patrick McHenry of North Carolina, who was named as the temporary speaker after McCarthy’s departure, but his ability to move legislation is unclear.Joe Biden said on Tuesday that he would seek approval from Congress for additional funding for Israel in the wake of the devastating attack by Hamas. But the fight over the speakership puts a question mark over how soon such aid could be approved and sent.Biden has also requested $24bn in additional funding for Ukraine but this too hangs in limbo. Although the White House has claimed that the vast majority of House Republicans still support such assistance, there has been growing dissent in recent weeks and the issue was a factor in McCarthy’s downfall.Then there is the threat of a government shutdown that would further dent US credibility overseas. Congress has until a self-imposed deadline of 17 November to pass 12 new bills to fund the government for the rest of the year and into 2024. The leadership vacuum is sucking up precious time and energy and making a shutdown more likely.Biden had spent the first two years of his presidency seeking to restore order and rebuild alliances after the “America first” mayhem of the Donald Trump years. But when Republicans gained control of the House in January with a narrow majority that empowered the far right, that effort was always likely to suffer erosion.skip past newsletter promotionafter newsletter promotionKarine Jean-Pierre, the White House press secretary, told reporters: “What we’re seeing is certainly shambolic chaos over there on the other side of Pennsylvania Avenue, and they need to get their act together … We’ve never seen a conference behave this way or be this chaotic.”Biden’s speech on Tuesday was described as one of the most powerful statements of support for Israel ever given by a US president; he has previously spoken of his deep-rooted love for the country. Huge uncertainties remain: Israel has ordered a million people to evacuate northern Gaza ahead of an expected ground invasion; Hamas could still have more surprises in store; Hezbollah, an Iran-backed militia based in Lebanon, could still open a second front.But instead of addressing the crisis with one voice, Republicans are consumed with a bogus impeachment inquiry into Biden and the publicity-seeking antics of members such as Matt Gaetz, Marjorie Taylor Greene and Nancy Mace. And this week New York Republicans moved to expel accused fraudster George Santos.Kyle Herrig, executive director of the Congressional Integrity Project, said: “Since day one the Maga Republicans in the House majority have failed to work on real domestic priorities and instead focused on partisan stunts in their extreme efforts to return Donald Trump to the White House.“Their ongoing dysfunction, misplaced priorities and failures now impede the efforts of President Biden to come to the aid of key allies internationally. Chaos, not governance, defines the House Republican Caucus.” More

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      in US Politics

      Aukus could weaken China deterrence,

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      Doubts about Australia’s willingness to join forces with the US in a war against China are being cited by congressional researchers as a potential obstacle to the Aukus nuclear-powered submarine deal.A new research paper looks at the US plan to sell Australia between three and five Virginia-class submarines in the 2030s but suggests the idea “could weaken deterrence of potential Chinese aggression”.That stage of the deal aims to help Canberra bridge a “capability gap” before Australian-built nuclear-powered submarines begin to enter into service in the 2040s.The paper, prepared by the Congressional Research Service, aims to provide members of the US congress with a neutral summary of key arguments likely to be raised by supporters and sceptics of the plan.It lists six “potential arguments from sceptics”, including that the sale could weaken deterrence “if China were to find reason to believe, correctly or not, that Australia might use its Virginia-class boats less effectively than the US Navy would use them”.That weakening of deterrence could also be the case if Beijing were to conclude “that Australia might not involve its military, including its Virginia-class boats, in US-China crises or conflicts that Australia viewed as not engaging important Australian interests”.The report cited comments by the Australian defence minister, Richard Marles, in March that the Aukus deal did not include any pre-commitments to the US regarding involvement in a potential future conflict over Taiwan.
      Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup
      The report added: “Virginia-class boats are less certain to be used in a US-China conflict over Taiwan, or less certain to be used in such a conflict in the way that the United States might prefer, if they are sold to Australia rather than retained in US Navy service.”In another argument that may embolden Republican critics of the submarine sale, the paper noted “the challenges that the US submarine industrial base is experiencing in achieving a desired construction rate of two Virginia-class boats per year”.The ability of the US to build replacement submarines for Virginia-class boats sold to Australia was “uncertain”, according to the paper first reported by the Australian Financial Review.The paper also suggested that the costs for Australia to acquire, operate and maintain Virginia-class submarines “could reduce, perhaps significantly, funding within Australia’s military budget for other Australian military capabilities” – especially if the figures “turn out to be higher than expected”.“If this were to occur, there could be a net negative impact on Australia’s overall military capabilities for deterring potential Chinese aggression.”The Australian government has repeatedly argued it will retain sovereign control of the submarines, despite arguments from the former prime ministers Malcolm Turnbull and Paul Keating that the multi-decade arrangement relies on US support and reduces Australia’s room to move.skip past newsletter promotionafter newsletter promotionBut the new paper suggested it might be “more cost-effective to pursue a US-Australian division of labor” under which US submarines would perform both American and Australian missions “while Australia invests in other types of military forces”. It pointed to such arrangements between the US and its Nato allies.The paper also mentioned concerns about the impact of a potential accident, even though it said the Australian navy was “a fully professional force that would operate and maintain its Virginia-class boats in a manner fully adhering to the US Navy’s strict and exacting safety, quality-control, and accountability standards”.It said the sale “would unavoidably make another country responsible for preventing an accident” with a US-made submarine and any significant problem “might call into question for third-party observers the safety of all US Navy nuclear-powered ships”.On the other side of the ledger, the paper said supporters could argue that the Aukus deal “would substantially enhance deterrence of potential Chinese aggression by sending a strong signal to China of the collective determination of the United States and Australia, along with the UK, to counter China’s military modernization effort”.“The fact that the United States has never before sold a complete SSN [nuclear-powered submarine] to another country – not even the UK – would underscore the depth of this determination, and thus the strength of the deterrent signal it would send.”Instead of waiting for Australia to build its own submarines, the interim sale of Virginia-class submarines in the 2030s “would substantially accelerate the creation of an Australian force” of nuclear-powered submarines.That would “present China much sooner with a second allied decision-making center” for submarine operations in the Indo-Pacific region, “which would enhance deterrence of potential Chinese aggression by complicating Chinese military planning”. More

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      in Elections

      Maldives Votes in Presidential Runoff Overshadowed by India and China

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      The election has become a referendum on the two Asian giants’ influence on the small nation’s direction.As voting began on Saturday in the presidential runoff in the Maldives, the race was proving to be as much a referendum on the competition between India and China for influence as it was a chance to determine the small island nation’s next leader.The pro-India incumbent, President Ibrahim Mohamed Solih, has trailed Mohamed Muizzu, the mayor of the capital, Malé City, who has pushed for stronger ties with China. When neither managed a first-round victory with half of the vote early this month, the race was pushed into a runoff.The campaign season has focused on a range of issues, including a housing crisis in the overcrowded capital, which is scarce on land, and the country’s dwindling dollar reserves. That problem has prompted parties to offer competing “de-dollarization” proposals relating to trade.But none of the issues have hung as heavily as the influence of the two Asian giants over the future of the Maldives, a nation of about a half-million people that lies 450 miles south of India. The Maldives is particularly important because it sits along busy shipping routes in the Indian Ocean.“The fact is, either of them will try to control the Maldives — it is inevitable,” Mohamed Rauhan Ahmed, 27, a political science student, said of China and India on Saturday outside a polling station in Malé City. “But I think Solih can do a better job of managing them both and keeping them at an arm’s length.”While his preferred candidate was not in the runoff, he said, “For a change, we experienced peace and freedom in the last five years” under Mr. Solih.For China and India, the jostling for influence among their neighbors is nothing new. China enjoyed an early advantage because of its deep pockets and the development loans it brought as part of its Belt and Road Initiative, but India has asserted itself more in the region in recent years.New Delhi stepped in to assist Sri Lanka with billions of dollars when the country’s economy crashed last year. It has also expanded its presence and projects in the Maldives since Mr. Solih won the presidency in 2018, ending the five-year tenure of the pro-Beijing Abdulla Yameen, who is now in prison for corruption.Outside a voting site in the Hulhumalé district of the capital, Ahmed Rassam, 36, complained Saturday of government graft and a lack of a promised judicial overhaul. “But mostly, we sensed the unpleasant feeling of losing our nation’s sovereignty to India,” he said in explaining his support for Mr. Muizzu. “He can bring progressive change.”As the election race heated up, the main opposition coalition, which includes Mr. Muizzu’s People’s National Congress, made maligning the current government’s growing relations with India a main focus. Using slogans like “India Out,” it has denounced Mr. Solih’s government for bringing a small contingent of Indian military personnel to the island.While Mr. Solih has embraced his ties to India, inviting investment from its companies and development aid from its government, he has denied that it has been at the cost of relationships with other countries. During one election debate, Mr. Solih also rejected the opposition’s assertion about the nature of foreign troops’ activity, saying, “There is no Indian military personnel conducting military work in the Maldives.”In the initial round of voting, which featured eight candidates, Mr. Solih got 39 percent, trailing Mr. Muizzu’s 46 percent.The president has been undermined by a messy public split in his Maldivian Democratic Party, with Mr. Solih’s childhood friend Mohamed Nasheed, a former president, parting ways before the election to create his own party. Mr. Nasheed, who helped Mr. Solih become president, had felt increasingly marginalized.The candidate put forward by Mr. Nasheed’s new party received 7 percent of the vote, making it a potential kingmaker in the runoff. But Mr. Nasheed, now the speaker of Parliament, has found himself in a difficult spot, torn between his longtime closeness to India and the breakdown of his relationship with the president, which he has said cannot be surmounted.Mr. Nasheed’s party announced that it would “refrain from supporting either candidate” in the runoff, results of which were expected on Saturday evening. More

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      in Elections

      The Fraud Ruling Against Trump

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      More from our inbox:Reducing Gun ViolenceThe Embattled SpeakerInvesting in Artistic Creators, Not BuildingsBar Russian PerformersChinese Truth Tellers Doug Mills/The New York TimesTo the Editor:Re “Fraud by Trump Found as Judge Issues Penalties” (front page, Sept. 27):Justice Arthur F. Engoron’s ruling that Donald Trump engaged in a pattern of widespread fraud, whereby he embellished the size and scope of his various business entities for accounting advantages, is very much in keeping with his propensity for engaging in similar grandiose fabrication as president.In fact, literally on the very first day of his presidency, Mr. Trump found it necessary to overstate the size of the inaugural crowd to a demonstrably laughable degree. Such reflexive and self-serving exaggeration, regarding matters large and small, by Mr. Trump persisted to the end of his term, culminating in his wildly fantastical claims of election fraud.Mr. Trump’s fraudulent business practices over a period of several years were a glaring road map, for anyone bothering to look, as to how he would conduct himself as commander in chief. His fate now rests in the combined hands of the judicial system and the electorate.Mark GodesChelsea, Mass.To the Editor:In an extraordinary ruling, Justice Arthur F. Engoron held that Donald Trump, by illegally inflating the value of his properties, committed fraud by as much as $2.2 billion. A trial in this case, brought by New York’s attorney general, Letitia James, is scheduled for Monday morning, but this ruling is a huge blow to Mr. Trump and his entire family.The ruling called for the cancellation of some of Mr. Trump’s business certificates in New York, which could spell the end of the Trump real estate dynasty, or what’s left of it. The possible financial cost for Mr. Trump could be enormous, as Ms. James is seeking fines up to $250 million.It seems “Teflon Don” will not slip away from the damning case against him here in New York.Henry A. LowensteinNew YorkTo the Editor:Somewhere the late Wayne Barrett is smiling. He mapped out Donald Trump’s crooked business deals years ago. The bookkeeping and tax-evading maneuvers were all laid out in his 1992 investigative biography, “Trump: The Deals and the Downfall.” Tuesday’s court ruling was long overdue.That it took so long for someone to bring the hammer down on Mr. Trump is an indictment of a legal system that has too many escape hatches. Delay, appeal after appeal, loophole-seeking lawyers, statutes of limitations, dismissals on technical grounds — all strands woven into Mr. Trump’s web of corruption.Fred SmithBronxReducing Gun ViolenceSurvivors of school shootings and those who had lost loved ones to gun violence were among the hundreds of attendees at the Rose Garden event.Kent Nishimura for The New York TimesTo the Editor:Re “Biden Forms a New Office to Address Gun Violence” (news article, Sept. 23):In his effort to combat gun violence, President Biden should consider issuing an executive order stating that gun manufacturers who currently market to the U.S. military must agree to sell only to our armed forces, to foreign militaries approved of by the U.S., and to American citizens who have undergone extensive background checks and are on a federal registry list.If these manufacturers wish to continue to sell assault weapons to the public at large, then they will lose the U.S. military as a major client.This order would be issued under the president’s authority as commander in chief and would not require congressional approval.Susan AltmanWashingtonThe Embattled Speaker Kenny Holston/The New York TimesTo the Editor:Re “Maybe Matt Gaetz Is Right,” by Michelle Cottle (Opinion, Sept. 21):With the continuing threat of the Freedom Caucus to file motions to “vacate the chair” (depose the speaker), Hakeem Jeffries, the minority leader, has a golden opportunity: Form a group of 25 to 30 Democrats to either support Kevin McCarthy or find a centrist Republican member who can be elected speaker with their aid.Then, by abolishing the rule permitting any one member from calling a vote to vacate the chair, the House could function without threats of blackmail and do the people’s business. Mr. Jeffries, go for it.Doug McConeWayne, Pa.Investing in Artistic Creators, Not BuildingsA view of the new Perelman Performing Arts Center at night, when the white marble building turns amber and becomes a beacon in Lower Manhattan.George Etheredge for The New York TimesTo the Editor:Re “A Dazzling Arts Haven Blossoms at Ground Zero,” by Michael Kimmelman (Critic’s Notebook, front page, Sept. 14):As dazzling as the Perelman Performing Arts Center is — and it is truly dazzling — Mr. Kimmelman’s comment that the building itself cost “enough to support who knows how many existing community organizations around the city for who knows how many years” struck me as the story of America’s perpetual disregard of the arts.The building always comes first, followed by whatever potpourri of productions the owners can scrabble together to put inside it. Can we never begin the investment with the people, the artistic creators themselves? Is it always because the donors need an edifice on which to implant his or her name?America doesn’t believe in financing the arts; America believes the arts are a business and should finance itself.The Times recently ran an article saying that our theaters are in crisis, as is our creative community in general. When are we going to finance the creators instead of the buildings?Jennifer WarrenLos AngelesThe writer is a professor of directing at the U.S.C. School of Cinematic Arts and chair of the Alliance of Women Directors.Bar Russian PerformersNetrebko bowing on the stage of the State Opera after performing in Verdi’s “Macbeth.”Annette Riedl/DPA, via Associated PressTo the Editor:Re “Receiving Boos, and an Ovation” (Arts, Sept. 18), about the Russian soprano Anna Netrebko, who has supported Vladimir Putin:Your article raises the issue of whether citizens of countries with criminal regimes should be allowed to participate or perform in international events and forums. While punishing individual artists, performers and athletes for their country’s bad acts seems to be unfair, the fact is that their participation promotes their nation’s prestige and interests, even if indirectly.In addition, changes in Russia’s behavior will occur only if the populace forces those in power to change course. The international community should not endorse Russian talent by allowing those individuals to participate in international events or competitions.The message of the international community to the most talented Russians should be that they need to change their country. And while those individuals may be unhappy, that’s exactly the point; history shows that changes in authoritarian governments occur when the population is unhappy and demands change.Russians should be barred from participation in all international events until Russia ends the war in Ukraine and removes its troops from all of Ukraine.Daniel ShapiroSuffern, N.Y.Chinese Truth Tellers Illustration by Linda Huang; source photograph by Tsering DorjeTo the Editor:I write to commend you for “China’s Underground Historians,” by Ian Johnson (Opinion, Sept. 24). These are brave individuals dedicated to ensuring that their country’s past is documented as accurately as possible.As a historian myself, I am increasingly aware of how authoritarian leaders want to cover up their country’s misdeeds, whether in the U.S. or abroad.I stand in awe of the courage of these Chinese truth tellers.Glenna MatthewsSunnyvale, Calif. More

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      in US Politics

      Top US and Chinese diplomats meet in Malta to smooth strained relations

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      Top US and Chinese diplomats met in Malta over the weekend as the world’s two largest economies attempted to smooth strained relations and clear a path for their respective presidents – Joe Biden and Xi Jinping – to meet in November.According to both Beijing and Washington, White House national security adviser Jake Sullivan met multiple times with China’s foreign minister, Wang Yi, in Malta, where – according to separate statements – “candid, substantive and constructive” talks were held.A readout from the White House on Sunday said the two officials had discussed the US-China bilateral relationship, global and regional security concerns, Russia’s war against Ukraine, and issues around the Taiwan strait.China’s foreign ministry said the sides came away with an agreement to maintain high-level exchanges and hold bilateral consultations on Asia-Pacific affairs, maritime issues and foreign policy.The meetings are the first to be held between Sullivan and Wang since May, four months after Biden ordered American fighter jets to shoot down a Chinese-operated balloon off the US coast. China condemned the downing as “a serious violation of international practice”.The balloon’s downing later caused the Biden administration to cancel a trip to Beijing by the US secretary of state, Antony Blinken.Strained US-China relations over American support for Taiwan, trade frictions around intellectual property and a Chinese military buildup – particularly in the area of hypersonic missiles, which the US does not have – put in doubt a meeting between Biden and Xi at an Asia-Pacific economic cooperation (Apec) meeting in San Francisco in November.Last week, China’s top security agency hinted that any meeting between the two leaders depended on the US “showing sufficient sincerity”. Biden and Xi have not met since November 2022, when they had a three-and-a-half-hour sideline meeting at the G20 in Bali, Indonesia.After that meeting, Biden said the US will “compete vigorously” with China while insisting that he’s “not looking for conflict”. Xi said the countries need to “explore the right way to get along”.But Xi was a no-show at the G20 summit in New Delhi, India, last weekend. Biden later expressed disappointment but added that he was going to “get to see him”.skip past newsletter promotionafter newsletter promotionSunday’s read-out provided by the White House said the meeting between Sullivan and Wang was part of “ongoing efforts to maintain open lines of communication and responsibly manage the relationship”.The statement added that the talks had built on the Bali conversation, the meetings of Sullivan and Wang in May, and US diplomatic visits to Beijing over the past several months by Blinken, treasury secretary Janet Yellen, special climate envoy John Kerry and commerce secretary Gina Raimondo.The US notice said that Sullivan “noted the importance of peace and stability across the Taiwan strait” during the meetings. According to the Chinese foreign ministry statement, Wang cautioned the US that Taiwan is the “first insurmountable red line of Sino-US relations”.Reuters contributed reporting More

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      in Elections

      China Sows Disinformation About Hawaii Fires Using New Techniques

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      Beijing’s influence campaign using artificial intelligence is a rapid change in tactics, researchers from Microsoft and other organizations say.When wildfires swept across Maui last month with destructive fury, China’s increasingly resourceful information warriors pounced.The disaster was not natural, they said in a flurry of false posts that spread across the internet, but was the result of a secret “weather weapon” being tested by the United States. To bolster the plausibility, the posts carried photographs that appeared to have been generated by artificial intelligence programs, making them among the first to use these new tools to bolster the aura of authenticity of a disinformation campaign.For China — which largely stood on the sidelines of the 2016 and 2020 U.S. presidential elections while Russia ran hacking operations and disinformation campaigns — the effort to cast the wildfires as a deliberate act by American intelligence agencies and the military was a rapid change of tactics.Until now, China’s influence campaigns have been focused on amplifying propaganda defending its policies on Taiwan and other subjects. The most recent effort, revealed by researchers from Microsoft and a range of other organizations, suggests that Beijing is making more direct attempts to sow discord in the United States.The move also comes as the Biden administration and Congress are grappling with how to push back on China without tipping the two countries into open conflict, and with how to reduce the risk that A.I. is used to magnify disinformation.The impact of the Chinese campaign — identified by researchers from Microsoft, Recorded Future, the RAND Corporation, NewsGuard and the University of Maryland — is difficult to measure, though early indications suggest that few social media users engaged with the most outlandish of the conspiracy theories.Brad Smith, the vice chairman and president of Microsoft, whose researchers analyzed the covert campaign, sharply criticized China for exploiting a natural disaster for political gain.“I just don’t think that’s worthy of any country, much less any country that aspires to be a great country,” Mr. Smith said in an interview on Monday.China was not the only country to make political use of the Maui fires. Russia did as well, spreading posts that emphasized how much money the United States was spending on the war in Ukraine and that suggested the cash would be better spent at home for disaster relief.The researchers suggested that China was building a network of accounts that could be put to use in future information operations, including the next U.S. presidential election. That is the pattern that Russia set in the year or so leading up to the 2016 election.“This is going into a new direction, which is sort of amplifying conspiracy theories that are not directly related to some of their interests, like Taiwan,” said Brian Liston, a researcher at Recorded Future, a cybersecurity company based in Massachusetts.A destroyed neighborhood in Lahaina, Hawaii, last month. China has made the wildfires a target of disinformation.Go Nakamura for The New York TimesIf China does engage in influence operations for the election next year, U.S. intelligence officials have assessed in recent months, it is likely to try to diminish President Biden and raise the profile of former President Donald J. Trump. While that may seem counterintuitive to Americans who remember Mr. Trump’s effort to blame Beijing for what he called the “China virus,” the intelligence officials have concluded that Chinese leaders prefer Mr. Trump. He has called for pulling Americans out of Japan, South Korea and other parts of Asia, while Mr. Biden has cut off China’s access to the most advanced chips and the equipment made to produce them.China’s promotion of a conspiracy theory about the fires comes after Mr. Biden vented in Bali last fall to Xi Jinping, China’s president, about Beijing’s role in the spread of such disinformation. According to administration officials, Mr. Biden angrily criticized Mr. Xi for the spread of false accusations that the United States operated biological weapons laboratories in Ukraine.There is no indication that Russia and China are working together on information operations, according to the researchers and administration officials, but they often echo each other’s messages, particularly when it comes to criticizing U.S. policies. Their combined efforts suggest a new phase of the disinformation wars is about to begin, one bolstered by the use of A.I. tools.“We don’t have direct evidence of coordination between China and Russia in these campaigns, but we’re certainly finding alignment and a sort of synchronization,” said William Marcellino, a researcher at RAND and an author of a new report warning that artificial intelligence will enable a “critical jump forward” in global influence operations.The wildfires in Hawaii — like many natural disasters these days — spawned numerous rumors, false reports and conspiracy theories almost from the start.Caroline Amy Orr Bueno, a researcher at the University of Maryland’s Applied Research Lab for Intelligence and Security, reported that a coordinated Russian campaign began on Twitter, the social media platform now known as X, on Aug. 9, a day after the fires started.It spread the phrase, “Hawaii, not Ukraine,” from one obscure account with few followers through a series of conservative or right-wing accounts like Breitbart and ultimately Russian state media, reaching thousands of users with a message intended to undercut U.S. military assistance to Ukraine.President Biden has criticized President Xi Jinping of China for the spread of false accusations about the United States and Ukraine.Florence Lo/ReutersChina’s state media apparatus often echoes Russian themes, especially animosity toward the United States. But in this case, it also pursued a distinct disinformation campaign.Recorded Future first reported that the Chinese government mounted a covert campaign to blame a “weather weapon” for the fires, identifying numerous posts in mid-August falsely claiming that MI6, the British foreign intelligence service, had revealed “the amazing truth behind the wildfire.” Posts with the exact language appeared on social media sites across the internet, including Pinterest, Tumblr, Medium and Pixiv, a Japanese site used by artists.Other inauthentic accounts spread similar content, often accompanied with mislabeled videos, including one from a popular TikTok account, The Paranormal Chic, that showed a transformer explosion in Chile. According to Recorded Future, the Chinese content often echoed — and amplified — posts by conspiracy theorists and extremists in the United States, including white supremacists.The Chinese campaign operated across many of the major social media platforms — and in many languages, suggesting it was aimed at reaching a global audience. Microsoft’s Threat Analysis Center identified inauthentic posts in 31 languages, including French, German and Italian, but also in less prominent ones like Igbo, Odia and Guarani.The artificially generated images of the Hawaii wildfires identified by Microsoft’s researchers appeared on multiple platforms, including a Reddit post in Dutch. “These specific A.I.-generated images appear to be exclusively used” by Chinese accounts used in this campaign, Microsoft said in a report. “They do not appear to be present elsewhere online.”Clint Watts, the general manager of Microsoft’s Threat Analysis Center, said that China appeared to have adopted Russia’s playbook for influence operations, laying the groundwork to influence politics in the United States and other countries.“This would be Russia in 2015,” he said, referring to the bots and inauthentic accounts Russia created before its extensive online influence operation during the 2016 election. “If we look at how other actors have done this, they are building capacity. Now they’re building accounts that are covert.”Natural disasters have often been the focus of disinformation campaigns, allowing bad actors to exploit emotions to accuse governments of shortcomings, either in preparation or in response. The goal can be to undermine trust in specific policies, like U.S. support for Ukraine, or more generally to sow internal discord. By suggesting the United States was testing or using secret weapons against its own citizens, China’s effort also seemed intended to depict the country as a reckless, militaristic power.“We’ve always been able to come together in the wake of humanitarian disasters and provide relief in the wake of earthquakes or hurricanes or fires,” said Mr. Smith, who is presenting some of Microsoft’s findings to Congress on Tuesday. “And to see this kind of pursuit instead is both, I think deeply disturbing and something that the global community should draw a red line around and put off-limits.” More