Zerohedge

Schools misused hundreds of billions in COVID-relief funds on questionable expenses with minimal student impact, according to the Department of Government Efficiency (DOGE), led by Elon Musk, according to Fox News.

A report by Parents Defending Education, shared by DOGE, highlighted spending such as $86,000 on Las Vegas hotel rooms by Utah’s Granite Public Schools and $393,000 by California’s Santa Ana Unified to rent a Major League Baseball stadium.

DOGE also found schools spent COVID-relief funds on swimming pool passes and even an ice cream truck:

The cost-cutting department also revealed that schools spent $60,000 of COVID-relief funds on swimming pool passes, while a California district used its funds to purchase an ice cream truck.

The Fox News report says that the Trump administration is tightening oversight on the remaining $4 billion in funds, requiring receipts before release.

DOGE wrote in a post on X: “All of this money was drawn with zero documentation.”

Mom’s For Liberty wrote: “Recall those school board meetings when the ruling elites of Covidstan branded mothers as selfish disruptors simply for challenging their interpretation of “The Science” and scrutinizing how they allocated ESSER Funds? Never let them forget that we were right about everything.”

“This is outrageous,” said Will O’Neil, chairman of the Orange County Republican Party, who called the money spent on an MLB stadium “an absolute joke”. 

DOGE has cut $370 million in Department of Education (DoEd) spending on DEI programs, axing 70 grants, including one for anti-racism training for teachers.

The chairman of the Federal Communications Commission scaled an 1,865-foot tall broadcast tower on Monday, which he filmed and posted to X.

“If we are going to continue to expand connectivity we need a lot more tower climbers. It’s a great job. It’s a good-paying job and it’s a career,” said Carr, who strapped on a harness and took at 20-minute ride in a lift called a “pan,” before transferring to the tower.

https://t.co/WZh7DnRUTe pic.twitter.com/9L6a66Sf0e

— Brendan Carr (@BrendanCarrFCC) February 24, 2025

According to News Nation, only around 200 people climb and maintain these broadcast towers nationwide.

pic.twitter.com/hAM3p2TkKq

— Brendan Carr (@BrendanCarrFCC) February 25, 2025

“It is always a fun experience to get up in the air and hang with a tower crew,” said Carr, who complimented tower technician Hasani Hogan, an Army veteran.

“What a guy. It shows his bravery, his abilities and his commitment to the broadcast industry and our guys that do this. He has done it before and is willing to do it again,” said Carr.

Submitted by Gun Owners of America,

Gun Owners of America just caught the FBI coercing more people into giving up their Second Amendment rights!

Thanks to a FOIA request by GOA’s lawyers, we uncovered even more evidence on the FBI’s unconstitutional and unlawful NICS Indices program.

In 2019, it was discovered that the FBI was using a document titled “NICS Indices Self-Submission Form” that purported to allow American citizens to “voluntarily” waive their Second Amendment rights. 

By completing this FBI form, law-abiding Americans allegedly “consent” for the FBI to enter their names into the National Instant Criminal Background Check System, marking them as permanently prohibited from purchasing or possessing firearms or ammunition.  And as the form warns, once an individual waives their rights, it’s impossible to get them back.

Now, the mere existence of this form was troubling, and it clearly violates the Second Amendment and even the Gun Control Act. But at that point, we weren’t sure how extensively the FBI was using the form, if in fact it was being used at all.

Fast-forward a few years to 2022.

GOA published our initial findings that the FBI had provided these forms to agents for use on American gun owners, who were pressured into signing and therefore “voluntarily” relinquished their rights to purchase, possess, and use firearms.

These FOIA records painted a vivid picture of FBI agents showing up to people’s homes, place of work, etc., presenting to them these forms, and “asking” them to declare themselves to be a “danger” to themselves or others, or lacking the “mental capacity to adequately contract or manage” their lives.

You can imagine how coercive these sorts of FBI visits must have been.  The FBI’s use of this secret form has occurred during recent years when the bureau has become increasingly politicized and weaponized against Americans, including gun owners.

Here’s what our attorney, Rob Olson, had to say at the time:

“We’re into a pre-crime, Minority Report type of world where the FBI believes it can take constitutional rights away from anyone it thinks possibly might pose a threat in the future, which certainly is not something you expect in the United States.”

The FBI claimed to have stopped use of this form in 2019 – right after GOA first reported the form’s existence.

After our findings went public in 2022, we called on Congress to investigate the FBI’s use of this unlawful form.

Well, thanks to our reporting, Congress did start to look into the matter.

Rep. Marjorie Taylor Greene, along with 15 other members of Congress, sent a letter to the FBI demanding that it remove any records from any database relating to those who have signed these forms, remove the records from NICS, and finally confirm that the FBI has halted its use of this unlawful form.

We have continued to press the FBI on this issue, and our continued work has uncovered more documents showing just how deep this FBI rabbit hole goes.

Today, we’ve uncovered even more evidence that not only was the use of the FBI’s secret form more widespread than it initially appeared but also that the FBI was training its field offices on how exactly to implement and effectively use the form in a Minority Report-style of dystopian justice.

In fact, the bureau has now turned over a PowerPoint presentation used in a training on how to effectively use this self-submission form.

But it gets worse.

The PowerPoint originates from an email that was sent to nearly every FBI field office nationwide. Here’s what the email says:

“Good afternoon everyone,

I … wanted to pass along something that we started doing to keep guns out of the hands of individuals with mental health and/or substance abuse problems. In addition to conducting joint interviews … we are also using the NICS Forms when appropriate.”

Attached … are the NICS self-submission forms, and this PowerPoint detailing training from the FBI’s Boston field office.

The training looks to encourage FBI agents to leverage … local mental health crisis intervention teams to find individuals with “acute mental health disorders.”

The PowerPoint then specifically addresses the form by instructing FBI agents to:

“Leverage these partnerships to assist with the NICS self-submission and prohibited user forms. These forms reduce the ability of those with a history of substance-abuse, or those that have not been adjudicated as a mental defective- from purchasing firearms.”

Who gave the FBI the unilateral authority to decide which Americans should keep their Second Amendment rights?

GOA has also uncovered emails showing FBI agents congratulating each other on successfully coercing a “subject” sign the form.

Incredibly, the FBI’s secret form asks the bureau’s victims to certify that they “lack mental capacity adequately to contract or manage the details of [their] life,” while simultaneously requiring “verification” by a “physician or mental-health professional” that the individual nevertheless “has adequate mental capacity voluntarily to execute this document.”

In other words, the form claims that individuals can have enough mental capacity to sign their rights away, but not enough capacity to have those rights in the first place.

Apparently, irony was not part of the FBI’s training on how to violate Second Amendment rights.

So, what can be done about this?

Well, a whole lot, actually.

With Republicans in control of Congress, and a Constitutionalist like Kash Patel soon to be in charge of the FBI, we’re hopeful that GOA’s new discoveries can help bring this story back to the attention of those in power.

Congress, and those in the executive branch, can act upon this information to:

1. ensure and guarantee that the NICS Indices Self-Submission Form is no longer being used by FBI agents to unconstitutionally disarm Americans;

2. disclose all records of this nefarious program to the public;

3. identify and track down each person who has been coerced into signing one of these forms, and notify the person that they are not prohibited from purchasing, possessing, or using firearms or ammunition;

4. identify all entries that have been made in the NICS Indices on this basis, and take immediate steps to permanently eradicate such entries;

5. and, finally,

6. hold accountable those within the FBI responsible for creating and promulgating this unlawful and unconstitutional form.

With Kash Patel heading up the FBI, we’re hopeful that tyrannical actions like the NICS self-submission form are a thing of the past from the FBI.

US equity futures, and Asian markets are lower as the recent tech-led selloff on Wall Street accelerated, sparking further risk-off behavior and momentum liquidations, and spilling over into bitcoin which plunged to a 3 month low breaking below its post election support. As of 7:00am, S&P futures are down 0.3% and are outperforming Nasdaq futs which are down 0.5%; sentiment was dented after Trump said that Canada/Mexico tariffs would be implemented on-time. Mag7 names and semis are lower with NVDA down 1.6%; Europe’s ASML and STMicroelectronics also Bloomberg reported that the Trump admin is planning to expand efforts to limit China’s technological advancements, including tougher semiconductor curbs and pressuring allies to escalate restrictions on China’s chip industry. The ongoing stock rout sparked a rally in Treasuries that has pushed US 10-year yields down 6 bps to 4.34%. Traders also added to their Federal Reserve interest-rate cut bets with ~53 bps of easing now priced in by year end; the USD is flat. Commodities are mostly lower with crude/gasoline higher. Today’s macro data focus is on Housing, regional Fed activity indicators, and Consumer Confidence. 

Meanwhile Bitcoin tumbled 7%, dropping below $90,000 and sliding to a 3 month low of $88,000 breaking post-election support levels, as the recent momentum massacre sparked a brutal crypto selloff; meanwhile DeepSeek reopened access to its core programming interface after nearly a three-week suspension.

In premarket trading, Nvidia led premarket losses among the Mag 7 stocks after Bloomberg News reported that Donald Trump’s administration is pressuring US allies to escalate their chip restrictions on China (Nvidia -1.3%, Alphabet -0.7%, Amazon, Alphabet, Microsoft, Meta and Apple were falling less than 1%, Tesla was little changed). US-listed Chinese stocks broadly rebound, with Alibaba rising 3.8% following its biggest drop since 2022; JD.com is up 1.8%, PDD +1.4%, Baidu +0.8%, Bilibili +2.8%. here are some other notable premarket movers:

• Chegg shares tumble 22%, after the education technology company’s first-quarter projections for revenue and adjusted Ebitda trailed Wall Street expectations.
• Hims & Hers Health shares slide 18% in premarket trading after the telehealth company reported fourth-quarter results and said it will soon stop selling some compound weight-loss drugs. While the results were solid, Piper Sandler noted that there was a high level of uncertainty for 2025.
• Cryptocurrency-exposed stocks slide as Bitcoin tumbles below $90,000 to hit the lowest level since mid-November, paring the gains seen since Donald Trump’s election to the White House. MicroStrategy -5.9%, Coinbase -5.6%, Riot Platforms -4.4%, MARA Holdings -6%, Bit Digital -6.6%, CleanSpark -5.8%, Hut 8 Mining -6.7%
• Zoom Communications shares fall 5%, after the communications software company gave a forecast that is modestly weaker than expected.

As broad-based selling swept markets, the VIX Index touched its highest level this year at just below 20. There didn’t appear to be a single catalyst for the selling – the suddenly pervasive pessimism was correctly described here two days ago in “Goldman Traders Hit The Panic Button: Perfect Sell Storm Of Positioning, Valuation, Breadth, Concentration And Policy“- although concerns are mounting that President Trump’s policies will hurt global economic growth. Uncertainty on trade policies has prompted investors to pare risk and switch to havens like Treasuries or gold. Trump signaled Monday that tariffs on Mexican and Canadian imports will go ahead.

“At the moment there’s a lot of uncertainty reigning in the background which is making it challenging for investors to navigate,” said Alexandra Morris, an investment director at Skagen AS. “The whole tariff discussion is the main negative catalyst.”

Nvidia’s earnings report on Wednesday could be yet another catalyst to unleash volatility given its outsized impact on the broader market.

“Bear in mind that the market impact of Nvidia’s results have often proved to be as significant as US jobs reports over the last couple of years,” Deutsche Bank AG strategist Jim Reid wrote in a note to clients.

In Europe, tech stocks also underperformed but have been offset by gains in healthcare and banks with the Stoxx 600 rising 0.3%. European defense stocks rose after Bloomberg reported that Germany’s chancellor-in-waiting Friedrich Merz is in talks with the Social Democrats to approve up to €200 billion in special defense spending. Unilever shares fell after the company announced in a surprise move that CEO Hein Schumacher would step down and pass the reins to CFO Fernando Fernandez. Here are the biggest movers Tuesday:

• Smith & Nephew shares rise as much as 10%, the most since August, after reporting 4Q sales that beat estimates. The report is likely to reassure investors, RBC said, flagging particular strength in orthopaedics in the US
• Novo Nordisk rises as much as 5.2%, to the highest since Dec. 20, after US firm Hims & Hers Health said it will soon stop selling some compound weight-loss drugs rivaling the Danish company’s offering
• Galp Energia shares jump as much as 7.9%, the most in 10 months, after the company reported success at its latest exploration well off Namibia, boosting confidence in the company’s broader Namibia play
• Thyssenkrupp shares rise as much as 15% in Frankfurt, to the highest since October 2023, after Citi increased its price target, citing the potential value unlock from the company’s marine and steel businesses
• Dormakaba shares gain as much as 3.9%, to the highest level since 2021, after the Swiss security company lifted profit guidance slightly and posted solid results
• European semiconductor stocks drop after Bloomberg reported that the Trump administration is pressuring US allies to escalate their chip restrictions on China
• European mining stocks fell after iron ore, copper and aluminum dropped in response to moves by the US to restrict Chinese investments
• Unilever shares drop as much as 3.4% in London trading after the consumer goods company said Hein Schumacher would step down as chief executive officer and board director
• SIG Group shares tumble as much as 13%, the most in five years, after the Swiss carton-packaging maker reported subdued full-year results. Analysts cite falling profitability, low growth in the Americas
• European automakers underperform after passenger-car registrations dropped in January, while electric vehicle sales jumped; total sales in the region declined 2.1% year on year

Earlier in the session,  Asian stocks fell as US President Donald Trump’s continued attempts to pressure China and other nations dented investor sentiment. The MSCI Asia Pacific Index slid as much as 1.4% before paring some losses. Chinese stocks whipsawed throughout the day, showcasing the volatility sparked by uncertainties around Trump’s actions. His administration is said to be sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry. According to Bloomberg, Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd. and ASML Holding NV engineers from maintaining semiconductor gear in China, according to people familiar with the matter. This comes after a directive set the stage for a more muscular use of the Committee on Foreign Investment in the United States, or CFIUS, a secretive panel that scrutinizes proposals by foreign entities to buy US companies or property, to thwart Chinese investment. The Hang Seng Tech Index had slumped as much as 4.4%, pacing losses for Chinese equities in New York. The gauge later erased most of its decline as more than $1 billion worth of money poured into Hong Kong stocks from China. JPMorgan strategists said US moves to limit investment in China tech may trigger a reversal in mainland stocks after the recent rally, while some investors saw an opportunity buy on dips. TSMC, Hitachi and Alibaba were among the biggest drags on the regional gauge. Most national benchmarks were in the red.

In FX, the Bloomberg Dollar Spot Index rises 0.1%. The Aussie and kiwi dollars underperform, falling 0.4% each.

In rates, bonds surged, pushing the yield on 10-year Treasuries down six basis to 4.34%. The treasury rally sent yields to YTD lows, fueled by risk aversion tied to the potential for US tariff policies to dent economic growth. Swap spreads are notably tighter, a sign that receiving flows are a driver. In short-term rates, Fed-dated OIS revert to fully pricing in two 25bp rate cuts by year-end. US yields are near session lows, 6bp-8bp richer across maturities with gains led by the belly, steepening 5s30s spread by 2bp; 10-year touched 4.32% and outperforms German counterpart by 7bp, UK by 3bp. 10- and 30-year swap spreads are nearly 2bp tighter on the day; Dallas Fed President Lorie Logan during London morning said the central bank when it stops balance-sheet runoff should purchase more shorter-term than longer-term securities to mirror the composition of Treasury issuance. A widely-watched gauge of the attractiveness of German debt fell to the most negative on record, reflecting expectations for higher borrowing to fund big outlays on defense spending. Gilts followed Treasuries higher, with UK 10-year yields falling 3 bps to 4.53%. German 10-year borrowing costs are flat at 2.47% as bunds were held back by reports of emergency defense spending.

In commodities, oil prices are steady with WTI near $70.80 a barrel. Spot gold falls $10 to $2,941/oz. Bitcoin tumbled below $90,000 to hit the lowest since mid-November as investors stepped back from one of the most popular Trump trades.

Looking at today’s calendar, we get the February Philadelphia Fed non-manufacturing activity (8:30am), December FHFA house price index and S&P CoreLogic home prices (9am), February consumer confidence and Richmond Fed manufacturing index (10am) and February Dallas Fed services activity (10:30am). Fed speaker slate also includes Barr (11:45am) and Barkin (1pm)

Market Snapshot

• S&P 500 futures down 0.1% to 5,994.50
• STOXX Europe 600 up 0.3% to 555.01
• MXAP down 1.1% to 187.58
• MXAPJ down 1.3% to 589.62
• Nikkei down 1.4% to 38,237.79
• Topix down 0.4% to 2,724.70
• Hang Seng Index down 1.3% to 23,034.02
• Shanghai Composite down 0.8% to 3,346.04
• Sensex up 0.2% to 74,613.76
• Australia S&P/ASX 200 down 0.7% to 8,251.91
• Kospi down 0.6% to 2,630.29
• German 10Y yield little changed at 2.47%
• Euro little changed at $1.0472
• Brent Futures little changed at $74.81/bbl
• Gold spot down 0.4% to $2,940.73
• US Dollar Index little changed at 106.64 

Top Overnight News

• Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under Joe Biden to limit Beijing’s technological prowess. BBG
• President Donald Trump’s Federal Trade Commission will “vigorously” sue to block illegal mergers, the agency’s new chairman said Monday, highlighting support for the repeated deal challenges during the Biden era. BBG
• President Donald Trump said on Monday that tariffs on Canadian and Mexican imports are “on time and on schedule” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline. RTRS
• French President Emmanuel Macron said a truce in Ukraine could come in “weeks” after meeting with Trump at the White House but added that a deal “must not mean a surrender of Ukraine.” BBG
• Fed’s Goolsbee (2025 voter) said if the administration enacts policies that drive up prices, the Fed has to take them into account by law, while he added that auto parts suppliers have expressed concerns about tariffs and before the Fed can go back to cutting rates, it needs more clarity. Furthermore, Goolsbee said the full details of the administration’s policy package are still to be determined and they have to take a wait-and-see posture.
• Fed’s Logan (2026 Voter) does not comment on monetary policy in prepared remarks; says once quantitative tightening ends, it would make sense to overweight purchases of shorter dated securities; floats idea of discount window loan facility.
• Elon Musk said subject to the discretion of the President, employees will be given another chance and a failure to respond a second time will result in termination.
• Tesla’s European sales plunged 45% year on year in January to fewer than 10,000, as rival carmakers saw a surge in EV demand. It began rolling out driver-assistance capabilities in China. BBG
• BofA Global Markets President DeMare says clients are doing less today than Q4 and the beginning of the year; still a good quarter even with client uncertainty, via Bloomberg TV. Says if they do not see productivity from AI, then investments will be scaled back.
• China is increasing scrutiny of outbound investments by domestic companies as well as their use of proceeds from Hong Kong share sales, people familiar said. BBG
• South Korea’s central bank lowered its policy rate by 25bp, as expected, and trimmed its growth forecast for the country as it resumed easing to support a sagging economy. WSJ
• MSFT – Goldman reiterates its Buy rating, $500 PT, and leaves its estimates for $88bn/91bn in FY25/26 CapEx unchanged following recent reporting that Microsoft has potentially delayed or canceled some of its AI data center leases. While unconfirmed, GS believe this reporting emphasizes what the company has already telegraphed: that as a responsible capital allocator, Microsoft continues to invest in AI capacity prudently with an eye towards returns. GIR
• A gauge measuring the attractiveness of German bonds hit a record low, in anticipation of more debt sales. BBG

Tariffs/Trade

• US President Trump’s team is seeking to tighten chip controls on China with the US said to be pressing Japan and Netherlands to align on China restrictions, while it is weighing tighter controls on Nvidia (NVDA) chip exports to China, as well as considering more restrictions on SMIC (981 HK) and CXMT. Furthermore, US officials reportedly met with Japanese and Dutch counterparts to restrict Tokyo Electron (8035 JT) and ASML (ASML NA) engineers from maintaining semiconductor equipment in China, according to Bloomberg.
• Mexico studies tariffs on China in a bid to strike a deal with US President Trump, while Mexican President Sheinbaum said she sees agreements with the US by Friday and that Mexican officials are in Washington studying possible China levies, according to Bloomberg.
• WTO panel is to examine measures adopted by Turkey targeting Chinese EV imports.
• French President Macron said he hoped he convinced Trump on trade and noted that they do not tariff the US, while he added that they don’t need a trade war and the urgency is to increase security expenditure.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks traded lower following the weak handover from the US where the tech sector led the declines and risk appetite was sapped amid ongoing uncertainty surrounding tariffs and geopolitics. ASX 200 retreated with underperformance seen in the tech, consumer discretionary and financial sectors, while defensives showed resilience and energy was also lifted following a jump in Woodside Energy’s profit. Nikkei 225 slumped at the open on return from the long weekend but was off worse levels as shares of Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo rallied following reports late last week that Berkshire Hathaway plans to gradually raise its investments in Japanese trading houses. Hang Seng and Shanghai Comp conformed to the negative mood amid headwinds from trade frictions with the US seeking to tighten chip controls on China and after the PBoC’s MLF operation resulted in a net drain of CNY 200bln. Nonetheless, Chinese markets were well off today’s worst levels as the heavy slump at the open spurred some dip buying.

Top Asian News

• PBoC conducted a CNY 300bln 1-year MLF operation with the rate kept at 2.00% for a net drain of CNY 200bln.
• Huawei improved production of AI chips and achieved a yield close to 40% which marks a breakthrough for China’s tech goals, according to the FT.
• Bank of Korea cut its base rate by 25 basis points to 2.75%, as expected, with the rate decision unanimous and interest rates for the special loan programme were also lowered. BoK said US tariff policies, Fed policies, and stimulus measures by the Korean government are some of the uncertainties for the economy, while it noted it is necessary to remain cautious about high FX volatility. BoK Governor Rhee stated that four board members said current policy rates could be maintained for the next three months and two board members said further rate cuts are possible for the next three months, while Rhee added that the market consensus expecting two more rate cuts this year aligns closely with the central bank’s views.
• PBoC Advisor says Chinese CPI will decline moderately in February; changes in external environment will increase pressure on expanding domestic demand this year.
• Opposition Japan innovation party (ISHIN) agrees on details of LDP, Komeito Coalition’s revised state budget, according to a party official; revised state budget would pave way for passage of JPY 115tln FY2025-26 budget.
• China’s MOFCOM urges the EU to stop listing Chinese enterprises and to cease spreading false accusations against China; China will take necessary measures to firmly protect the legitimate rights and interests of Chinese enterprises.

European bourses (STOXX 600 +0.2%) are mostly modestly firmer vs. an entirely negative open; sentiment gradually improved as the morning progressed, paring some of the early-morning losses following a negative APAC handover. European sectors are mixed vs opening mostly lower. Healthcare tops the pile, with Novo Nordisk (+4%) shares on the front foot. Tech is the clear underperformer today, after Bloomberg reported that US President Trump’s team is seeking to tighten chip controls on China; it was also said that US officials reportedly met with Japanese and Dutch counterparts to restrict Tokyo Electron and ASML engineers from maintaining semiconductor equipment in China.

Top European News

• ECB’s Nagel says inflation outlook is fairly encouraging; persistent core and services inflation warrants caution, via Bloomberg; German economy in “stubborn” stagnation; ECB should take one step at a time and not rush more cuts. Hopes for swift formation of the new German economy.
• ECB’s Kazaks says “I think we have to continue cutting rates”, via Bloomberg; will take rate cuts “step by step”, rate path to hinge on Trump policies. Must be cautious as we near the end of the terminal rate. Joint borrowing instrument needed for big investments. Europe at a critical point, need to invest in defence.
• Reuters poll: 66/66 expect the BoE to hold rates at 4.5% in March with a median view of a cut in Q2 to 4.25%.

FX

• After a pick-up late in the US session yesterday, DXY is a touch lower in early European trade. Trump was able to provide the dollar with some support yesterday after stating that he will be proceeding with tariffs on Mexico and Canada. Today’s data slate sees the release of US Conference Board consumer confidence which is expected to slip to 102.5 from 104.1. Today’s speaker slate includes Fed’s Barr and Barkin. DXY is currently within a 106.56-79 range and above yesterday’s YTD low at 106.12.
• EUR is trivially firmer/flat vs. the USD with focus in Europe primarily on the political landscape in the wake of the fallout of the German Federal Election and the subsequent coalition-building process. From a monetary policy perspective, the latest ECB Euro Area Indicator of Negotiated Wage Rates showed Q4 wage growth slow to 4.12% from 5.43% but had little sway on EUR. Note ECB’s Schnabel is due to speak at 13:00GMT. EUR/USD is currently tucked within Monday’s 1.0453-0528 range.
• USD/JPY initially edged higher overnight and briefly reclaimed the 150.00 status but then faded the gains amid the broad downbeat risk tone across the APAC region and Japanese Services PPI data which slightly accelerated as expected. USD/JPY has delved as low as 149.20 with the next downside target coming via Monday’s YTD low at 148.84.
• GBP is flat vs. the USD and EUR with macro newsflow light for the UK. We heard yesterday from BoE’s Dhingra who remarked that if rates are lowered by 25bps at a quarterly pace, you will still be in restrictive territory all of this year. That being said, she is very much viewed as s dovish outlier on the MPC. Of greater interest today is comments from BoE Chief Economist Pill. Currently trading within a 1.2607-38 range.
• Antipodeans are both a touch softer vs. the USD. AUD/USD is down for a third consecutive session after printing a YTD peak at 0.6408 last Friday. Fresh macro drivers are lacking for Australia with attention instead turning to January inflation data due overnight with consensus looking for weighted CPI Y/Y to hold steady at 2.5%.
• PBoC set USD/CNY mid-point at 7.1726 vs exp. 7.2530 (prev. 7.1717).
• RBI is seen as likely to be selling USD’s to stop the INR’s downside, via Reuters citing traders.

Fixed Income

• USTs are firmer, picked up a touch on Monday’s strong 2yr outing before grinding marginally higher overnight and then lifting back above the 110-00 mark to a 110-09 peak in the European morning, a high the benchmark has remained in proximity to since. Ahead, the speakers continue with Barr & Barkin due before POTUS signs his latest executive order. Amidst that, the US will sell 70bln of 5yr notes; follows a 2yr which saw a slightly softer b/c than the prior but still a strong level of demand, particularly for the indirect figure.
• Bunds towards the top-end of a 131.87-132.45 band with the benchmark essentially flat as participants continue to digest the German election and await clues on coalition talks; the high printed just before the EZ wage tracker as the general risk tone took another modest leg lower. On the latter, the figure moderated from the prior in-fitting with proxies while an extensive text release from ECB’s Nagel largely focussed on the Bundesbank’s accounts while monetary comments were in-fitting with his hawkish bias. No reaction to either event. A well received German Green Bund outing also had little impact.
• Gilts are firmer, somewhere between USTs and Bunds in terms of magnitude as the benchmark acknowledges both the tepid risk tone and reports suggesting the UK could get involved in European-wide defence spending; a source cited by the FT said the UK Treasury “is interested in” the idea of a rearmament bank for such funding. Given that structuring spending in this way would limit the impact on Reeves’ fiscal position. Gilts find themselves in the green and holding towards the top-end of a slim 92.67-91 band.
• UK sells GBP 1.6bln 1.125% 2035 I/L Gilt: b/c 3.52x (prev. 3.12x) and real yield 1.115% (prev. 1.128%).
• Germany sells EUR 1.495bln vs exp EUR 1.5bln 1.80% 2053 Green Bund: b/c 2.4x (prev. 2.6x), average yield 2.73% (prev. 2.84%) & retention 0.33% (prev. 24.60%)
• Italy sells EUR 2.75bln vs exp. EUR 2.5-2.75bln 2.55% 2027 & EUR 1.5bln vs exp. EUR 1.25-1.5bln 1.80% 2036 BTP€i
• German 10-year spread to swaps hit the most negative on record, according to Bloomberg.
• Saudi Arabia offers Middle East’s first sovereign Euro Green Bond, via Bloomberg; 7-year Green Bond IPT mid swaps +155bps, 12-year Conventional Bond IPT mid swaps +175bps, according to IFR.

Commodities

• Crude is a little firmer in what has been a lacklustre and choppy session for the complex thus far. Initially oil prices were subdued alongside the risk-off sentiment seen in early-European trade, but did improve a touch thereafter. More recently, prices have been choppy with Brent May currently trading in a USD 74.17-76/bbl parameter.
• Subdued trade across precious metals despite the softer Dollar but with price action contained to tight ranges amid a lack of driver this morning. Spot gold remains at the record highs printed yesterday (USD 2,956.31/oz) with today’s range currently between USD 2,929.64-2,953.42/oz.
• Lacklustre trade across base metals despite the weaker Dollar but with the broader sentiment on the back foot and newsflow on the quieter side. 3M LME copper currently resides in a USD 9,424.95-9,500.05/t range after finding resistance at the half-round figure.
• US President Trump commented on Truth that they want the Keystone XL Pipeline built and suggested easy approvals.
• India could reportedly extend import curbs on low ash metallurgical coal used in steelmaking, according to Reuters sources.
• IEA Director says Europe has been importing a lot of Russian LNG to help economies; might be a high time to replace it with LNG from Qatar beginning 2027.

Geopolitics

• Russia’s Kremlin says President Putin is “okay” with European peacekeepers in Ukraine, refers to earlier statement that such a move would be unacceptable. When asked about a possible US-Russia rare earths deal, says the US needs rare earth minerals, and “Russia has a lot”. Many steps need to be taken to restore trust between the US and Russia. When asked about the UN vote on Ukraine on Monday, says it sees the US taking a much more balanced stance. Says European stance on Ukraine may become more balanced as a result of contacts with the US.
• US President Trump said he emphasised the importance of the critical minerals and rare earth deal with Ukraine in meeting with French President Macron, while Trump added that he is in serious discussions with Russian President Putin about ending the war and talks are proceeding very well. Trump also said he was talking with French President Macron about trade deals at the White House and will meet with Ukrainian President Zelensky either this week or next to sign a minerals deal. Trump later said he had great conversations including with Russia on ending the Ukraine war and the meeting with French President Macron is another step forward towards ending the war.
• French President Macron said they need something substantial for Ukraine and Europe, while he stated his message to US President Trump was to be careful and that they have to go fast but first need a truce in Ukraine. Macron also stated that he thinks he had a strong convergence with Trump on Ukraine and a truce could be reached in the coming weeks, as well as noted that it is feasible to establish a truce at least and start negotiating for peace. Furthermore, Macron said he is working with the UK on a UK-France proposal for presence to maintain peace with US backup and backstop, while he spoke with European leaders and that many are ready to be part of security guarantees.
• UN General Assembly adopted the amended US-drafted Ukraine resolution that backs Ukraine’s sovereignty and territorial integrity, while it approved all proposed European amendments to the US-drafted resolution on Ukraine and rejected the proposed Russian amendment to the US-drafted resolution on the Ukraine war anniversary. It was later reported that Russia failed at the UN Security Council to amend the US-drafted resolution on Ukraine and vetoed a European attempt to amend the US-drafted resolution on Ukraine, while the UN Security Council adopted the US-drafted resolution on Ukraine.
• Poland scrambled aircraft to ensure airspace security after Russia launched strikes on Ukraine, while all of Ukraine was reportedly under air raid alerts as the air force warned of Russian missile attacks.
• Russia Foreign Minister Lavrov to visit Iran on Tuesday, according to RIA.

US Event Calendar

• 08:30: Feb. Philadelphia Fed Non-Mfg, prior -9.1
• 09:00: Dec. S&P CS Composite-20 YoY, est. 4.41%, prior 4.33%
  • Dec. S&P/CS 20 City MoM SA, est. 0.40%, prior 0.41%
  • 4Q House Price Purchase Index QoQ, est. 0.3%, prior 0.7%
• 10:00: Feb. Conf. Board Consumer Confidenc, est. 102.5, prior 104.1
  • Feb. Conf. Board Present Situation, prior 134.3
  • Feb. Conf. Board Expectations, prior 83.9
• 10:00: Feb. Richmond Fed Index, est. -3, prior -4
• 10:30: Feb. Dallas Fed Services Activity, prior 7.4

DB’s Jim Reid concludes the overnight wrap

Morning from what promises to be a relatively warm and sunny day in Lisbon. Two consequences of Brexit hit me last night. One I had to queue for 75 minutes at immigration with a British passport and secondly when I got to the counter the officer said that he shouldn’t let me in as I have no blank spaces left on my passport. He squeezed a stamp on a full page and let me in and warned me to get a replacement immediately. So in my hotel room last night I had to book an emergency passport appointment before a US trip next week. I had no idea the passport was full. It’s only been an issue since Brexit as previously no European travel got stamped. To get an appointment though I needed to take a passport photo of myself on my phone in a dimly lit hotel room. 25 attempts later and I finally managed to get one that the online portal approved after balancing a table on my bed, putting the iPhone on it, the camera timer on and running to stand in front of the blank wall. The glamour of work travel.

While I was travelling and taking selfies, US markets tried to recover yesterday but ultimately struggled with the Magnificent 7 (-1.40%) closing at its lowest level since early December, which in turn left the S&P 500 -0.50% lower. Europe managed to again outperform the US, though the STOXX 600 was still down -0.08% even as the DAX (+0.62%) advanced. And with more negative sentiment coming to the fore, US Treasuries rallied across the curve, with the 10yr yield (-3.1bps) closing at a two-month low of 4.40%. This morning its edged lower again to 4.375%.

Those election results from Germany were a key market focus yesterday, as investors reacted to Sunday’s vote. As a reminder, the conservative CDU/CSU are the largest group in the new Bundestag, but the only two-party coalition that can reach a majority are the CDU/CSU and the SPD, given that they’ve refused to cooperate with the AfD. A coalition between the two seemed to be the goal for the CDU/CSU yesterday, with CDU leader Friedrich Merz saying that “I am determined to hold constructive, good, swift talks with the Social Democrats”. That’s a combination Germany has seen frequently in the last couple of decades, with the two governing together for three of Angela Merkel’s four terms, including from 2013-21. However, it’s clear that the SPD’s position as the only party able to provide a majority for the CDU/CSU offers them leverage in any negotiations, and SPD co-leader Lars Klingbeil said that “Whether the SPD enters a government isn’t yet clear”.

In the meantime, there was continued speculation about whether there might be some sort of reform to the debt brake. As it stands, the centrist parties (CDU/CSU, SPD and Greens) are just short of the two-thirds majority required to change the constitution. They could achieve that threshold with the left-wing Die Linke, but they favour lower defence spending and have said they’d only vote for that if investments were made in infrastructure. So there’s theoretically a compromise you could reach where they agree to exempt infrastructure from the debt brake, and that could create more space for defence spending in the core budget. 

Another idea gaining momentum yesterday was that the centrist parties could even reform the debt brake in the current Bundestag, where the different centrist groups already have a two-thirds majority, and Merz said that “The German Bundestag is able to make decisions at any time”, although current finance minister Joerg Kukies said that it would “be a questionable political signal if constitutional amendments were now made with an old majority”. While this debate is in its early stages, our Germany economists argue that markets should start pricing in some probability of meaningful debt-brake reform in the next few weeks. Indeed, Bloomberg reported after Europe went home that Merz has opened talks with the SPD for special defence spending of as much as EUR 200bn before a formal coalition deal is made and before the new legislature sits on March 24th.

In terms of the market reaction, German equities saw a clear outperformance relative to their European counterparts. After a topsy-turvy session, the DAX was +0.62% by the close, having been up more than +1% in the European morning but then briefly falling into the red amid a broader risk-off move early in the US session. There was a stronger performance for the MDAX index of mid-cap stocks, which are more domestically concentrated, but even there the index was up +2.83% before paring that back to close +1.52% higher. Looking at the specifics, expectations for higher defence spending meant that Rheinmetall (+6.40%) was the strongest performer in the DAX again, bringing its YTD advance to +54.80%.

In my CoTD yesterday which went out late due to technical issues I discussed how the election continued a global trend (especially in Europe) where the establishment parties combined hit a record low share of the vote. In Germany support for the CDU/CSU and SPD combined has never been lower at 45.0%, down from 91.2% at the peak in 1976. In the UK election last year the combined vote for Labour and the Conservatives was the lowest in over a century and in the French elections at a similar time we saw support for the far right, far left and centrists broadly equal. We think mainstream parties are suffering due to ever lower economic growth, which along with wider inequality means that an increasing share of the electorate must be, by definition, exposed to negative growth in their world. Concerns over issues like immigration and globalisation are likely symptoms of this rather than the root cause.

Finally on the election, the Euro itself was fairly subdued yesterday, only seeing a modest +0.10% move against the US Dollar. Our FX strategists published an update yesterday after the German election, where they stay euro bearish on balance. However, their conviction on a sub-parity drop for the euro is now lower than it was, mainly because of incoming US fiscal news and the market’s resilience to absorbing tariff announcements without building a risk premium. Nevertheless they also don’t see a breakout higher for EUR/USD given the lack of sufficiently clear positive catalysts from Europe, particularly given the prospect of further ECB easing and persistent tariff risk.

Elsewhere in Europe, there was a lot of focus on Ukraine yesterday, with growing noises that the Ukraine and the US were moving closer to some sort of minerals deal. Ukraine’s Deputy PM Olga Stefanishyna said that “Ukrainian and U.S. teams are in the final stages of negotiations”, with Trump saying later on that “It looks like we’re getting very close” and that Zelenskiy could visit Washington in the next week or two to sign an agreement. Earlier Bloomberg reported that a draft text would see the US commit to a “free, sovereign and secure” Ukraine. Separately, in a meeting with France’s Macron, Trump claimed that Russia’s Putin would accept European peacekeepers in Ukraine. Macron suggested that he and Trump made “substantive steps forward” as he stressed the need for security guarantees for Ukraine, though Trump avoided any direct assurances on this front. So we’ve seen a more constructive tone compared to last week’s concerns that US-Russia talks would leave Ukraine and Europe out in the cold, but the path towards ending Russia’s war in Ukraine is still far from clear.

As mentioned at the top risk assets saw a bit of volatility yesterday. In the US, the S&P 500 (-0.50%) closed beneath 6,000 for the first time since mid-January, extending its -1.71% slump last Friday. This decline came due to a late sell-off that in part followed Trump’s suggestion that the delayed tariffs against Canada and Mexico “are going forward on time, on schedule”. That said, Bloomberg later reported that the fate of the 25% levies was still to be determined. The US equity decline was driven by tech stocks, with the Magnificent 7 down -1.40% ahead of Nvidia (-3.09% yesterday) reporting its results after the US close tomorrow. Bear in mind that the market impact of Nvidia’s results have often proved to be as significant as US jobs reports over the last couple of years, so it’s still a big event on the calendar. There were some news stories over the weekend around Microsoft (-1.03%) cancelling some leases for data centers which raised concerns about excess capex spending.

Otherwise, US Treasuries put in a fresh rally yesterday, as the broader risk-off tone pushed yields lower. Indeed, the 10yr yield (-3.1bps) closed at its lowest since early December, at 4.40%, and the 10yr real yield (-4.2bps) moved back beneath the 2% mark again. That came as investors also dialled up their expectations for Fed rate cuts this year, with the amount priced in by the December meeting up +3.6bps to 50bps.Meanwhile in Europe, 10yr yields were much steadier, with those on 10yr bunds, OATs and BTPs all +0.7bps higher on the day.

Asian equity markets are weaker overnight. There was a Bloomberg report that the Trump administration is seeking further curbs in Chinese investments in strategic sectors including technology, and especially in chips. The move has led to a decline in Chinese technology shares with the Hang Seng dropping more than -1% initially and tech titans including Alibaba and Tencent emerging as the biggest losers. As I check my screens, the Hang Seng (-0.62%) has partially recovered some of its earlier losses with the Shanghai Composite (-0.25%) also recovering. Elsewhere, the KOSPI (-0.49%) and the S&P/ASX 200 (-0.68%) are also trading lower with the Nikkei (-1.10%) leading the declines after reopening following yesterday’s holiday.

In monetary policy action, the Bank of Korea cut interest rates by 25 bps to 2.75%, its lowest since August 2022, as it strives to shore up economic growth amid weak domestic demand and uncertainties at home and abroad. The decision comes as South Korea continues to grapple with political uncertainty over the impeachment trial of President Yoon Suk Yeol.

There was very little other data yesterday, although Germany’s Ifo business climate indicator remained at 85.2 in February (vs. 85.8 expected). The expectations component did pick up to 85.4 (vs. 85.0 expected), but the current assessment reading fell back to 85.0 (vs. 86.3 expected).

To the day ahead now, and US data releases include the Conference Board’s consumer confidence for February, the FHFA’s house price index for December, and the Richmond Fed’s manufacturing index for February. From central banks, we’ll hear from the Fed’s Logan, Barr and Barkin, the ECB’s Nagel and Schnabel, and the BoE’s Pill.

Authored by Luis Cornelio via Headline USA,

The NAACP awarded former Vice President Kamala Harris on Saturday one of its most prestigious honors, the Chairman’s Award – months after voters overwhelmingly rejected her presidential candidacy for the second time in a row. 

Kamala Harris just got an award for being the first black woman to certify her own election loss:pic.twitter.com/p4plKZDTsE

— End Wokeness (@EndWokeness) February 23, 2025

The NAACP Image Awards, which aired on BET, recognized Harris’s supposed commitment to equality, justice and progress, despite tenure as California attorney general and San Franciso district attorney, where she jailed many black Americans for petty crimes. 

Most infamously, Harris oversaw nearly 2,000 convictions for marijuana possession, yet she later appeared on The Breakfast Club to boast about her past use of the drug. 

Seemingly unable to highlight a non-existent pro-justice record, Harris spent much of her speech throwing indirect jabs at President Donald Trump—the man who defeated her in the 2024 presidential election. 

“While we have no illusions about what we are up against in this chapter in our American story, this chapter will be written not simply by whoever occupies the oval office nor by the wealthiest among us. The American story will be written by you. Written by us. By we the people,” Harris pontificated. 

This evening, I was honored to accept the NAACP’s Chairman’s Award.

I grew up inspired by the work of the NAACP — by all those who took up the fight for justice, equality, and opportunity. Their example is part of the reason I chose a life of public service.

At this moment,… pic.twitter.com/lmRFCLUQTq

— Kamala Harris (@KamalaHarris) February 23, 2025

In true Harris fashion, she continued her metaphor-heavy word salad:

“Some see the flames on our horizons, the rising waters in our cities, the shadows gathering over our democracy and ask, ‘What do we do now?’” 

She then offered what sounded like a reprise of her failed presidential campaign message.

“But we know exactly what to do, because we have done it before. And we will do it again. We use our power. We organize, mobilize. We educate. We advocate. Our power has never come from having an easy path,” she preached. 

Despite the loud cheers at the NAACP Image Awards, the applause seemed detached from the reality of how most Americans view Harris, given her two failed bids for the presidency and ongoing low approval ratings. 

In 2020, Harris unsuccessfully sought the Democratic nomination for president but withdrew before voting even began. 

Voters rejected her candidacy once again even after inheriting the nomination from her embattled boss, former President Joe Biden. 

As of Jan. 20, 2025, Harris had an average disapproval rating of 52.7 percent, according to FiveThirtyEight. 

Authored by Mike Donghia via The Epoch Times (emphasis ours),

My most productive periods are when I lose track of time and become completely absorbed in my task. This delightful state of strain-free hyperfocus is commonly called being in “the zone” or “a state of flow.”

As I’m writing this article, I’m trying to achieve that somewhat elusive state. When I get into flow, I’ll know it because I’ll stop thinking about the idea of working. I’ll feel energized and excited about the work, and all distractions will fade away.

My state of flow varies across a variety of activities. It can happen while engaging in physical labor or exercise, hanging out with friends, completing chores around the house, solving a mental problem at work, writing an article, reading a book, or doing anything that takes effort and involvement.

Given my extreme aversion to boredom, what I like most about locking in a state of flow is that everything seems more interesting. Any tendency toward overthinking or procrastination just vanishes, and I become totally focused on keeping going.

If there were a safe way to induce the flow mindset every time I worked, my life would be radically different. However, not finding one hasn’t stopped me from trying to make it happen more frequently with some reasonable degree of success.

What has worked for me in this arena, based on the trial and error of my own life experience, is the following:

1. Tune Out the Voices in Your Head

Step one is a clear mind. You can’t have any other thoughts or voices in your head besides those about the work you’re doing. That definitely means not listening to a podcast while you work or wondering about anything else going on in your life. Laser-like focus at the expense of everything else is what you need.

2. Work Faster

I’ve found that the cadence at which I work is an important variable in inducing a state of flow. You should not only try to work just a bit faster than your natural pace, but you should also eliminate as many pauses and stops as you can. This works by forcing you to not overthink and to rely more on your instincts.

3. Avoid Perfectionism

Related to the point above, you absolutely can’t have any worries about doing great work. The more pressure you add to get things right or perfect, the more self-conscious you’ll be. This applies whether you’re doing intellectual work or just hanging out with friends. Just bring your best self forward and don’t worry about whether it’s good enough—that’s a silly worry because, of course, you’re enough.

4. Play Rhythmic, Ambient Music

When I really want to get in the zone, I turn on some rhythmic music that doesn’t focus on words. Electronic dance music seems to do the trick for me. What you want is a steady driving beat that gets into your bones and keeps things moving forward. I find this works for both physical and mental labor and, surprisingly, even for keeping energy high when hanging out with friends.

[ZH: Or some ‘less than Ambient’ music?]

5. Do 1 Thing at a Time

Anytime you switch your brain away from your work, you lose all the momentum you have built up and will have to start again. You have to keep your head down and locked in. Even though a state of flow makes this 10 times easier, there might still be the occasional temptation to pick up your phone or lean back in your chair and stretch—don’t do it. Once you’re in flow, don’t do anything that might disturb it.

6. Make Decisions Intuitively

Systematic, rational thought is basically the opposite of flow, which is about doing. Some types of work and conversations aren’t natural fits for flow and require a more rational thought process, which is fine. Be sure to recognize and separate these two types to bring the best version of yourself into each one. Most importantly, when you’re in the zone, don’t stop and start overthinking a problem. Just keep moving, even if that means imperfection or leaving something to come back to later. The flow itself is too valuable to waste.

I hope that you see that being in a state of flow is about more than productivity. Focused work will make you more productive, but for me, it’s about so much more. Once you consistently start achieving this relaxed, stress-free work mindset, you’ll want it more and more. It feels good and brings out a creative side of yourself that you’ll want to enjoy more often.

*  *  *

Yes, we’re getting high on our own supply… try Peak Focus + Mushroom 10x + maybe that song we embedded above to help get into a state of flow. 

Limited Time Offer! Free bottle of Mushroom 10x with each bottle of Peak Focus purchased until 2/28/2025

Monday was a huge day for the Syrian population, given the European Union has suspended with immediate effect many of the sanctions the bloc long ago imposed on Syria, particularly related to the areas of banking, energy, transport, and reconstruction.

“This decision is part of the EU’s efforts to support an inclusive political transition in Syria, and its swift economic recovery, reconstruction, and stabilization,” a statement issued by the Council of European Union said. As for how ‘inclusive’ the new HTS regime under Jolani is, we’ll let the photos speak for themselves…

The new regime in Syria. pic.twitter.com/qfhEO9m8Nb

— Bassem (@BBassem7) February 24, 2025

But the fact remains that millions of Syrians felt the devastating impact of sanctions most heavily. The West used the sanctions to try and squeeze the Bashar al-Assad government out of power. He fled Syria on December 8 as Turkish-backed jihadists made their way south from Idlib.

For years, and currently, Syrians spend most of their week without electricity, or adequate fuel for heat or cars. The currency collapsed but is barely starting to recover. The common populace has been suffering severely for well over a decade.

The EU has lifted asset freezes for five banks as well as eased restrictions on the central bank, which may allow the Syrian Lira (pound) to improve further.

Reuters has underscored that some EU sanctions including on arms trading, dual-use goods with both military and civilian uses, software for surveillance, and the international trade of Syrian cultural heritage goods, will remain in place.

Yet during the height of the proxy war for regime change, the EU only allowed the transfers of arms and ammo to the anti-Assad ‘rebels’ of Syria. Many of these weapons ended up in ISIS and al-Qaeda hands, and this never seemed to bother Western leaders very much (as it was perhaps intended).

Last week, the UN Development Program (UNDP) issued a report saying it expects it could take over 50 years for Syria to make a full recovery to what it was pre-war.

And on Sunday, UNDP director Abdallah al-Dardari stated that 90 percent of the Syrian population lived in poverty. This was never close to being the case before the proxy war.

“That is three times the level of poverty in 2010, and the proportion of people living in extreme poverty today is 66 percent – six times the level in 2010, which was 11 percent,” Dardari said.

The US-NATO-Gulf led proxy war to overthrow Assad smashed the country for years and decades to come. And what has emerged is an Al-Qaeda linked government in Damascus, and gangs of unaccountable foreign jihadists roaming the countryside.

* * *

When Europe and the US talk “democracy promotion”… never forget:

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

A ransomware group called “Ghost” is exploiting the network vulnerabilities of various organizations to gain access to their systems, according to a joint advisory issued by multiple U.S. federal agencies.

“Beginning early 2021, Ghost actors began attacking victims whose internet-facing services ran outdated versions of software and firmware,” the Cybersecurity and Infrastructure Security Agency (CISA) said in the Feb. 19 joint advisory. “Ghost actors, located in China, conduct these widespread attacks for financial gain.”

The attacks have targeted schools and universities, government networks, critical infrastructure, technology and manufacturing companies, health care, and several small and mid-sized businesses.

“This indiscriminate targeting of networks containing vulnerabilities has led to the compromise of organizations across more than 70 countries, including organizations in China,” CISA, the FBI, and the Multi-State Information Sharing and Analysis Center said in the advisory.

Ghost actors are also associated with other names such as Cring, Crypt3r, HsHarada, Hello, Wickrme, Phantom, Rapture, and Strike.

The criminals use publicly available code to exploit “common vulnerabilities and exposures” of their targets to secure access to servers. They leverage vulnerabilities in servers running Adobe ColdFusion, Microsoft Exchange, and Microsoft SharePoint.

Threat actors use tools to “collect passwords and/or password hashes to aid them with unauthorized logins and privilege escalation or to pivot to other victim devices,” the warning read. Attackers typically only spend a few days on their target’s networks.

The advisory recommended organizations patch known network vulnerabilities by applying “timely security updates” to firmware, software, and operating systems.

Organizations must train users to recognize phishing attempts, it said. Entities should identify, investigate, and issue alerts regarding any “abnormal network activity.”

“Maintain regular system backups that are known-good and stored offline or are segmented from source systems,” the advisory added.

“Ghost ransomware victims whose backups were unaffected by the ransomware attack were often able to restore operations without needing to contact Ghost actors or pay a ransom.”

Pre-Positioning by China

The advisory was issued as part of an ongoing effort to counter ransomware threats.

CISA has previously warned about Chinese cyber threats facing the United States. Chinese state-sponsored cyber actors are looking to pre-position themselves on IT networks to carry out “disruptive or destructive cyberattacks” against critical American infrastructure in case Beijing engages in a conflict with Washington, the agency says.

Volt Typhoon, a Beijing-sponsored cyber actor, has compromised the IT environments of several critical infrastructure organizations in sectors such as energy, transportation, communications, and water systems.

In November, CISA and the FBI detailed a “broad and significant cyber espionage” campaign conducted by Chinese hackers that compromised the networks of U.S. telecommunication providers.

Hackers stole customer call records and private communications from “a limited number of individuals who are primarily involved in government or political activity.”

Rep. Mark Green (R-Tenn.), chairman of the House Committee on Homeland Security, said “the Chinese Communist Party’s exploitation of vulnerabilities in major internet service providers is just the newest alarm to sound as Beijing, Tehran, and Moscow work to gain strategic advantages through cyber espionage, manipulation, and destruction.”

In a recent speech at the Security Conference in Munich, Vice President JD Vance warned European leaders that the real threat to the sanctity of the west is not foreign enemies but the enemies within.  EU governments have been destroying the very values of “democracy” that they claim to defend and cherish, all in a bid to keep power in the hands of an extremist leftist oligarchy.

European officials attending the Munich conference did so with the expectation that the focus of the event would be on the Ukraine war.  Specifically, the event was supposed to be another rally party in the name of continuing the war in the name of “protecting democracy”.  Vance flipped the conference upside-down, pointing out that Europe doesn’t actually believe in democracy, not even in the way they define it. 

 

European officials were indignant after Vance called them out on their own stage, claiming his accusations of authoritarianism had no basis in reality.  France’s Foreign Minister Jean-Noel Barrot defended European policies following the criticism by Vance stating:

“Freedom of expression is guaranteed in Europe…Nobody is obliged to adopt our model, but nobody can impose theirs on us…”

This, of course, is a lie.  The French government went on to prove JD Vance right this week after they finalized a move to shut down conservative French TV station C8.  The outlet will cease broadcasting on February 28th after the Council of State, France’s top court, rejected their appeal against the removal of their frequency.

Arcom, France’s audiovisual regulator, excluded the channel in July from the shortlist of selected candidates for the reallocation of digital terrestrial television frequencies which expire at the end of the month. Arcom confirmed its decision on December 12th.

Arcom pulled up C8 for a lack of editorial control over its programming following a series of incidents on the conservative “Touche pas à mon poste” show hosted by Cyril Hanouna, who regularly criticized the progressive establishment.  The show racked up fines of over 7.5 million euros.

The closure of C8 has caused uproar among conservatives in France. The station is owned by Vincent Bolloré, a media tycoon whose conservatism and Catholicism has long made him a hate figure among the progressive left.  French officials claim that Bolloré was trying to “take over the media”, conveniently overlooking the fact that France’s state-run broadcaster (like the BBC) is staffed overwhelmingly by people who lean leftist.  C8 was one of the few broadcasters in France presenting a conservative viewpoint. 

French journalists are often fined and even fired for stepping outside the boundaries of acceptable political opinion.  There is no freedom of speech in France, just as there is no freedom of speech in most of Europe and the UK.  JD Vance was absolutely correct in his assessment in Munich. 

Notably, German Chancellor Olaf Scholz (soon to be replaced) was less interested in pretending as if German authorities care about free speech.  Unlike the French, he openly admitted that the German government’s intent was to suppress or remove conservative participation in government.  The conservative AFD doubled their seats and took second place in the recent election. German leftists are worried that the party will have coalition influence over future policy, or even worse, that the AFD may one day become the #1 party in Germany.

Scholz argued:

“A commitment to ‘never again’ cannot be reconciled with support for the AfD…”

“That is why we will not accept outsiders intervening in our democracy, in our elections, in the democratic formation of opinion in favour of this party.

“That is not appropriate — especially not among friends and allies. We decide for ourselves how our democracy will continue…”

“We are absolutely clear that the extreme right should stay outside the political decision-making process and that there would be no cooperation with them…”

The reality is that much of the progressive establishment believes in democracy only so far as they can exploit the idea as a moral shield for their authoritarian activities.  Just as woke activists use “racism, sexism and homophobia” as empty justifications for silencing their critics, so too do leftist governments use “threats to democracy” as an empty justification for silencing their political opponents.

Though there has been considerable movements in recent years to oppose Europe’s fall into far-left tyranny, it may be too little to late.  As in the UK, the EU establishment is criminalizing speech and silencing dissent at an exponential rate.  The end result of this trend is never good. 

Authored by Rachel Roberts via The Epoch Times (emphasis ours),

Calls have grown for the British government to introduce the equivalent of the United States’ Department of Government Efficiency (DOGE), after the extent of so-called “woke waste” spending on projects abroad which fall under the umbrella of diversity, equality, and inclusion (DEI) was revealed.

Successive Conservative and Labour governments have signed off on projects such as £9,550,000 awarded in December 2024 to Cowater International to support “Accountability and Inclusion” in the Democratic Republic of the Congo.

The bulk of the funding under scrutiny has come through the foreign aid budget administered by the Foreign and Commonwealth Development Office (FCDO), although spending at home for academic and arts projects that appear to push the DEI agenda have also come under fire.

‘Gender Mainstreaming Strategy’

More than half a million pounds (£575,000) was granted to the Ark Group to deliver advice to the Jordanian Armed Forces’ “Gender Mainstreaming Strategy,” also by the FCDO but under the previous Conservative government in March 2024.

Projects around the world aiming to address the “climate crisis” are also major recipients of vast sums of UK money, with more than £101 million given to  “Climate and Ocean Adaptation and Sustainable Transition” in Indonesia, the Philippines, Vietnam, and Mozambique, with this contract awarded to DAI Global in November 2024.

The UK has also allocated a further £12 million for a “Taskforce on Access to Climate Finance“ in Mauritius, with the contract still out for tender until December this year, the database shows.

While many drivers in the UK have been hit by congestion, ULEZ, and parking charges, almost half a million pounds (£499,649.60) was awarded by the FCDO in 2023 for 15 electric vehicles to be “donated to Albanian prisons” by the British Embassy in Tirana.

Since winning the general election last July, Labour has repeatedly claimed there is a “£22 billion black hole” in the public spending purse, which Chancellor Rachel Reeves has said necessitates sweeping cuts, such as the loss of winter fuel allowance for the majority of pensioners.

‘A Question of Priorities’

A group operating under the handle The Procurement Files since December 2024 has trawled the publicly available government accounts database to expose some of the more contentious spending, working with journalist Charlotte Gill, who runs a blog and uses the handle @wokewaste.

Also under scrutiny has been the hundreds of millions awarded to diplomatic spending, such as the refurbishment of embassies and high commissioners’ offices.

A spokesperson for The Procurement Files told The Epoch Times: “The UK spends over £100 billion a year on interest. Our aim is to help to find ways to reduce wasteful spend and to save the UK taxpayer money.

“For us, it is a question of priorities. Why would the UK taxpayer fund a project for ‘Green Urban Growth in Somalia’ or a ‘Maldives Shark Diving Code of Conduct’ when people here are struggling to pay sky-high energy bills?

“Politicans from the Conservatives and Reform, including Nigel Farage, have been in touch and follow our work.”

They added, “We will follow the blueprint laid out by Elon Musk and the U.S. DOGE team, and are cheering them on from the sidelines!”

Reform MP Richard Tice told The Epoch Times: “I believe I speak for the majority of logical, common-sense Britons when I say we need an equivalent of DOGE in the UK.

“As has been proven in America, the only people who oppose such an agency are the incompetent or corrupt bureaucrats.

“Let’s expose the levels of government waste, sleaze, and neglect of taxpayers’ money.

“Full transparency is what the people want—let’s give it to them.”

Sam Bidwell, director of The Next Generation, part of the Adam Smith Institute, said on social media platform X: “The benefits of a British DOGE would be in long-term growth rather than short-term savings.

“We have several hundred regulators, quangos, and [Arms Length Bodies], which churn out reams of absurd anti-growth regulation.

“Defunding and reforming these bodies would be an enormous net positive.”

Some Conservatives have backed the calls for a UK DOGE, including Scottish Tory leader Russell Findlay, who pledged in a speech on Tuesday to set up a Scottish Agency of Value and Efficiency in the event of him becoming first minister.

Findlay said such a department would be tasked with “cutting waste, identifying savings, and delivering better value for taxpayers.”

‘Green Growth’ and ‘Shrimp Health’

But there has been no talk from the British government of slashing such projects as the £22,490,382 awarded by the FCDO to PwC for “Green Growth” in Nepal shortly after Labour took office in July 2024.

Under the previous government, £220 million was granted to Palladium for “UK Partnering for Accelerated Climate Transitions” in developing countries, with an option to more than double this amount. The same company was separately awarded £15.5 million to deliver a “climate smart jobs programme” in Uganda.

The FCDO is not the only department to come under scrutiny, with the Home Office also coming in for criticism on social media for awarding Alcis Holdings £133,000 to monitor the “Afghanistan Taliban’s Narcotics Ban.”

Generous spending for high-level diplomacy is a recurring theme of the contracts under scrutiny, with £179,931 granted to “replace air-conditioning condensers” at the British High Commission in Barbados, and a £14.4 million contract for a whole-building refurbishment of the High Commission in Kenya.

Smaller amounts of funding have also come under fire over the usefulness of the project, with an academic study of “Shrimp Health in Bangladesh” awarded £50,000 in May 2023 through the Department for the Environment, Food, and Rural Affairs.

‘Glitching Transgenderism’

Arts Council funding which promotes DEI themes has also been criticised by commentators and social media users, such as the £185,627 awarded by the Arts and Humanities Research Council (ACHR) for a trans-identified academic to research “Trans Performance Now: Glitching Transgenderism” at Northumbria University.

Gill has highlighted a number of AHRC-sponsored studies in her work, writing that “the taxpayer is funding their own demise” by unwittingly stumping up for projects such as “The Europe that Gay Porn Built,” awarded £841,627 over four years at Birmingham City University.

ACHR funding for academic projects abroad has included £318,510 for a study that claims that water has experienced trauma, and aims to “address current water and mental health issues affecting Indiginous communities” in Peru and the United States.

Since taking control of the White House for the second time, President Donald Trump has begun a wide-ranging and rapid programme to cut what he regards as unnecessary and sometimes corrupt government expenditure, appointing SpaceX CEO Elon Musk as head of DOGE, named after the internet meme.

DOGE’s first radical move was to announce the slashing of USAID’s workforce from 14,000 to 294 after an audit revealed it was funding projects such as $1.5 million to “advance DEI in Serbia’s workplaces,” as well as $2 million for sex changes and “LGBT activism” in Guatemala, and $32,000 for a “transgender comic book” in Peru.

USAID Protests

USAID was set up in 1961 by President John F. Kennedy to administer humanitarian aid on behalf of the U.S. government, but much of its work is now contracted out to external agencies.

Musk claims to have already saved the U.S government more than $3.4 billion by halting DEI contracts, using his platform X to highlight what he has labelled widespread “fraud” as well as “waste.”

The Trump team has suggested as much as a trillion dollars could be saved by DOGE, although there is pushback from the Democrats and many NGOs and others who work within the foreign aid field.

The billionaire entrepreneur said earlier this month on X: “The corrupt politicians ‘protesting’ outside the USAID building are the ones getting money from USAID.

That’s why they’re there – they want your stolen tax dollars!”

The United States is the world’s largest provider of money for foreign aid, by a considerable margin. The UK is the world’s fourth largest spender, giving approximately £15.4 billion in 2023, compared to around £71.9 billion from the United States.

The FCDO has been contacted for comment.