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Senate Democrats, caught off guard by President Biden’s decision to tap two senior advisers to negotiate a debt ceiling deal with Speaker Kevin McCarthy (R-Calif.), are warning the president not to agree to anything that would hurt low-income Americans or undermine the battle against climate change.  

Democratic senators are increasingly concerned that any deal that Biden strikes with McCarthy will include major concessions to House conservatives that they would find hard to support. 

“From my perspective, I’m sharing my deep concerns with the people at the table,” said Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) of her outreach to Biden and “his team” about the House Republican proposal to cut to the Supplemental Nutrition Assistance Program (SNAP), which McCarthy called a “red line” in the talks. 

What Democratic senators see as the growing likelihood that Biden will agree to cut tens of billions of dollars in nondefense domestic spending and make it easier to approve new fossil-fuel extraction projects has spurred some of them to urge the president to raise the debt limit unilaterally and circumvent Republican lawmakers altogether.  

A group of Senate Democrats including Sens. Tina Smith (Minn.), Elizabeth Warren (Mass.), Ed Markey (Mass.), Jeff Merkley (Ore.), and Sen. Bernie Sanders (I-Vt.) signed onto a letter urging Biden to prepare to use the 14th Amendment to raise the debt limit in the absence of a deal with McCarthy.  

“Kevin McCarthy has two main requests: Attack ordinary, working families across America by cutting the foundations for health care, housing, education and good-paying jobs, and unleash fossil fuels on America. And both of those are absolutely unacceptable,” Merkley told reporters Wednesday.   

“I want the president to see that he has the support in the Senate to use the 14th Amendment,” he said. “He has support to say no to outrageous demands from the radical right.” 

Senate Democrats had urged Biden for months not to negotiate with McCarthy over legislation to raise the debt limit, arguing that the full faith and credit of the federal government shouldn’t be used as a bargaining chip.  

The president followed that advice for months, but he changed course this week by tapping two senior officials, Office of Management and Budget Director Shalanda Young and counselor Steve Ricchetti to take the lead in negotiating with McCarthy’s deputy, Rep. Garret Graves (R-La.).  

Democratic senators acknowledged on Wednesday that Biden now certainly appears to be willing to negotiate with McCarthy on raising the debt limit, and they see that as bad news given the spending cuts included in the legislation the House passed last month to raise the debt limit.  

“Yes, he’s negotiating. I don’t know what else what you call it,” said Sen. Brian Schatz (D-Hawaii), who had urged Biden not to let House Republicans use the debt limit as a hostage.  

Schatz warned that Democrats on Capitol Hill wouldn’t vote for a deal that includes even a quarter of the proposals included in the House Republicans’ Limit, Save, Grow Act, which would cut spending by $4.8 trillion over the next decade and greenlight new fossil-fuel projects around the country.  

“No, we’re not going to swallow that,” he said. “I think that it is preposterous that the Speaker of the House has woken up sometime this week and decided that work requirements for needy families was his hill to die on, that this is some high principle that is worth taking the country to default.” 

Sen. Tim Kaine (D-Va.) said he will oppose any effort by House Republicans to use debt limit legislation to roll back the clean energy tax breaks included in last year’s Inflation Reduction Act. 

“If it’s about rolling back the IRA, I’m going to fight against that for sure because the energy community tax credits, they really help Virginia, including some of the parts of Virginia that need the most economic help,” he said. 

“There are a number of things I’m hearing about that would cause me concerns,” he said. 

At the same time, conservative Republicans say if Biden does not agree to significant spending reforms and policy concessions, any debt limit deal that may emerge from talks with McCarthy will fall flat with members of the House Freedom Caucus.  

A small group of House conservatives hold significant leverage over McCarthy due to his narrow majority and because it only takes only one House lawmaker to offer a motion to vacate the Speaker’s chair. 

Sen. Mike Braun (R-Ind.), who has met with members of the House Freedom Caucus to help build GOP support for the House debt limit bill, warned that McCarthy doesn’t have much “wiggle room” to agree to a deal that falls well short of the reforms in that legislation.

Biden set off alarms among Democrats on Capitol Hill by suggesting over the weekend that he would be open to stricter work requirements for SNAP and TANF, though he took Medicaid off the table.  

“I voted for tougher aid programs that’s in the law now, but for Medicaid, it’s a different story. And so I’m waiting to hear what their exact proposal is,” he told reporters during a bike ride in Rehoboth Beach, Del. 

Biden walked back that comment Wednesday before departing for a trip to Japan. 

“I’m not going to accept any work requirements that go much beyond what is already — I voted years ago for the work requirements that exist. But, it’s possible there could be a few others, but not anything of any consequence,” he said. 

Biden plans to cut his trip short and return to Washington on Sunday to resume negotiations with McCarthy. 

Senior Democrats, however, argue adult recipients of federal food assistance already have to comply with work requirements, and penalties suspended during the COVID-19 pandemic are scheduled to go back into full effect.   NYC’s famous red-tailed hawk Pale Male dies after nesting above Fifth Avenue for 30 years Tuberville finds himself at center of storm on abortion, white nationalism

Stabenow said McCarthy wants to increase the age range for people who must meet work requirements for food subsidies.  

“From my perspective, it’s a non-starter and I’m very concerned about impacts on [the program]. The reality is we have work requirements starting again,” she said.  

Senate Appropriations Committee Chairwoman Patty Murray (D-Wash.) said she would also oppose stronger work requirements for SNAP benefits.  

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Southport stabbing victim reveals how she survived attack – and fears ‘it could happen again’

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Southport stabbing victim reveals how she survived attack - and fears 'it could happen again'

A girl who was stabbed in the Southport attack has told Sky News how she thought she was going to die that day.

Warning: Some readers may find this content distressing

It is exactly a year since Axel Rudakubana killed three girls and attempted to murder eight others at a summer holiday Taylor Swift-themed dance event in the seaside town.

The girl, who cannot be named for legal reasons, was stabbed in the back and the arm after going to the class with her younger sister.

She is now campaigning for children to have mandatory first aid training at school in response to the growth of knife crime.

She said she clearly remembers what happened that day.

Flowers and tributes near the scene of the attack a year ago. Pic: PA
Image:
Flowers and tributes near the scene of the attack a year ago. Pic: PA

“Some of the girls were sat down in a circle making bracelets with the teachers, and a couple of them were getting up to get beads. I was standing between two tables and he came through the doors.

“He stabbed a little girl in front of me and then came for me and stabbed my arm. I turned and then he stabbed my back, even though I didn’t feel it at the time.

“There was a bunch of girls huddled around so I just started pushing them down the stairs, telling them to get out and run.

“I was thinking ‘Where’s my sister?’ and ‘We need to get out’.”

She and many of the other victims ran to the house of a neighbour for shelter. “I just thought that I was going to die,” she said.

Killer ‘looked possessed’

The girl said she can clearly picture Rudakubana that day.

“What I remember most about him is his eyes. They just didn’t look human, they looked possessed. It was kind of like a dream and you’re on a movie set and watching yourself go through it and make these decisions.

“It’s just kind of like adrenaline. People like to think they know what they’d do in that situation but, in reality, you don’t until you’re in it.”

Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in an attack at a Taylor Swift-themed class.
Image:
Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in the attack

Six-year-old Bebe King, Elsie Dot Stancombe, who was seven, and nine-year-old Alice da Silva Aguiar died in the attack. It is something she finds difficult to talk about.

“I don’t think I can express how I feel about it,” the girl said. “A lot of anger and sadness.”

In January, Rudakubana was jailed for life and must serve a minimum of 52 years before he can be considered for release.

The chairman of the public inquiry into the atrocity called the attack “one of the most egregious crimes in our country’s history”.

Carrying knives ‘disgusting’

The girl who survived has now launched a campaign, supported by a clothing range called “Go Anywhere, Be Anything” to raise funds, to improve the ability of schoolchildren to help in the event of knife attacks.

“Everyone that’s going out and carrying knives is getting younger and younger,” she said. “And to think that it’s people my age is like disgusting.

“I just want to try and do the best I can to let people know that it’s not okay to do that and that they need to think about what they’re doing and the risks and how they’re harming themselves and other people.”

Her sister, who was also there that day, helped design “Go Anywhere, Be Anything”.

Read more:
Missed chances to stop Rudakubana

‘Terrorism has changed’, says PM

A three-minute silence will be held in Southport at 3pm to mark one year on from the attack. In an open letter to the community, Sefton Council wrote: “This period is incredibly hard for the families of Alice, Bebe and Elsie and all of those children and adults injured or who suffered lifelong psychological impact of witnessing the attack, and we acknowledge the huge impact on their lives, too.

“We must not forget the local people who rushed to support and to our emergency responders. They all remain always in our thoughts.”

It is a sentiment shared by the survivor.

“You live in fear every day that it could happen again,” she said.

“Physically I’m getting better every day and healing. Obviously, my scars stay as a reminder but everyone from that day is going to have mental scars forever.”

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UK

Revealed: The scale of cheap Chinese imports flown into UK without paying any tariffs

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Revealed: The scale of cheap Chinese imports flown into UK without paying any tariffs

The scale of cheap Chinese e-commerce imports flown into Britain without paying any tariffs has become clearer following a Sky News investigation into this new multi-billion pound phenomenon.

We have uncovered the first official estimate of the value of so-called “de minimis” imports into Britain, ahead of an official inquiry into whether this legal clause – which excludes packages worth less than £135 from paying customs duties – should be allowed to continue.

Companies like Shein and Temu have become big players in British retail, not to mention elsewhere around the world, by manufacturing cheap products in China and then posting them directly to consumers, benefiting from the de minimis rules.

Inside the cargo plane

Clothing manufacturers in the UK claim that de minimis makes it nearly impossible to compete with these Chinese competitors, raising questions about the viability of domestic textile and apparel production.

However, economists argue that the main beneficiaries of the policy to exclude cheap imports from customs are lower-income households, since it allows them to spend less on their shopping. Removing it, they say, would disproportionately affect poorer families.

The government has committed to an inquiry into the rules, which are also being changed in the EU and the US, but up until now there has been no official estimate of its scale.

According to HM Revenue and Customs data released to Sky News following a Freedom of Information request, the total declared trade value of de minimis imports into the UK in the last fiscal year (2024-25) was £5.9bn.

That was a 53% increase on the previous year (£3.9bn), underlining the scale of growth of e-commerce imports into the UK.

While it is hard to gauge how much revenue this means the Treasury has forgone, an illustrative 20% tariff on flows of that order could raise more than £1bn.

De minimis trade is growing

While that sum alone would not fill the fiscal black hole faced by Chancellor Rachel Reeves in the coming budget, it would nonetheless be nearly enough to pay for the government’s recent U-turn on winter fuel allowances.

Sky has also obtained the first television access deep into the supply chain, helping bring those goods into the UK, as it boarded a flight that had just travelled from Chongqing to Bournemouth Airport.

We filmed inside the belly of a plane belonging to European Cargo, one of a number of air cargo firms booming as a result of these trade flows.

Read more:
The rarely examined trade clause about to become a very big deal
UK city’s clothing industry in crisis

The untold story about de minimis is that it hasn’t just had an impact on shopping habits in the UK, or for that matter, the textiles manufacturing sector – it has also changed patterns of distribution.

Struggling regional airports that never saw their passenger numbers recover after the pandemic are now re-establishing themselves as hubs for cargo.

European Cargo is now the single biggest airline at Bournemouth Airport, despite not carrying a single passenger.

Other regional airports like East Midlands Airport and Prestwick in Scotland are seeing rapid growth in flows of trade.

All of which raises the stakes for the government’s inquiry into the de minimis system.

At present, there is no timeline for its decision, but removing the clause would have far-reaching effects across the economy.

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Technology

Europe sets its sights on multi-billion-euro gigawatt factories as it plays catch-up on AI

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Europe sets its sights on multi-billion-euro gigawatt factories as it plays catch-up on AI

Data storage tapes are stored at the National Energy Research Scientific Computing Center (NERSC) facility at the Lawrence Berkeley National Laboratory, which will house the U.S. supercomputer to be powered by Nvidia’s forthcoming Vera Rubin chips, in Berkeley, California, U.S. May 29, 2025.

Manuel Orbegozo | Reuters

Europe is setting its sights on gigawatt factories in a bid to bolster its lagging artificial intelligence industry and meet the challenges of a rapidly-changing sector.

Buzz around the concept of factories that industrialize manufacturing AI has gained ground in recent months, particularly as Nvidia CEO Jensen Huang stressed the importance of the infrastructure at a June event. Huang hailed a new “industrial revolution” at the GTC conference in Paris, France, and said his firm was working to help countries build revenue-generating AI factories through partnerships in France, Italy and the U.K.

For its part, the European Union describes the factories as a “dynamic ecosystem” that brings together computing power, data and talent to create AI models and applications.

The bloc has long been a laggard behind the U.S. and China in the race to scale up artificial intelligence. With 27 members in the union, the region is slower to act when it comes to agreeing new legislation. Higher energy costs, permitting delays and a grid in dire need of modernization can also hamper developments.

Henna Virkkunen, the European Commission’s executive vice president for tech sovereignty, told CNBC that the bloc’s goal is to bring together high quality data sets, computing capacity and researchers, all in one place.

“We have, for example, 30% more researchers per capita than the U.S. has, focused on AI. Also we have around 7,000 startups [that] are developing AI, but the main obstacle for them is that they have very limited computing capacity. And that’s why we decided that, together with our member states, we are investing in this very crucial infrastructure,” she said.

These are very big investments because they are four times more powerful when it comes to computing capacities than the biggest AI factories.

Henna Virkkunen

European Commission’s executive vice president for tech sovereignty

“We have everything what is needed to be competitive in this sector, but at the same time we want to build up our technological sovereignty and our competitiveness.”

So far, the EU has put up 10 billion euros ($11.8 billion) in funding to set up 13 AI factories and 20 billion euros as a starting point for investment in the gigafactories, marking what it says is the “largest public investment in AI in the world.” The bloc has already received 76 expressions of interest in the gigafactories from 16 member states across 60 sites, Virkkunen said.

The call for interest in gigafactories was “overwhelming,” going far beyond the bloc’s expectations, Virkkunen noted. However, in order for the factories to make a noteworthy addition to Europe’s computing capacity, significantly more investment will be required from the private sector to fund the expensive infrastructure.

‘Intelligence revolution’

The EU describes the facilities as a “one-stop shop” for AI firms. They’re intended to mirror the process carried out in industrial factories, which transform raw materials into goods and services. With an AI factory, raw data goes into the input, and advanced AI products are the expected outcome.

It’s essentially a data center with additional infrastructure related to how the technology will be adopted, according to Andre Kukhnin, equity research analyst at UBS.

“The idea is to create GPU [graphics processing units] capacity, so to basically build data centers with GPUs that can train models and run inference… and then to create an infrastructure that allows you to make this accessible to SMEs and parties that would not be able to just go and build their own,” Kukhnin said.

How the facility will be used is key to its designation as an AI factory, adds Martin Wilkie, research analyst at Citi.

“You’re creating a platform by having these chips that have insane levels of compute capacity,” he said. “And if you’ve attached it to a grid that is able to get the power to actually use them to full capacity, then the world is at your feet. You have this enormous ability to do something, but what the success of it is, will be defined by what you use it for.”

Telecommunications firm Telenor is already exploring possible use cases for such facilities with the launch of its AI factory in Norway in November last year. The company currently has a small cluster of GPUs up and running, as it looks to test the market before scaling up.

Telenor’s Chief Innovation Officer and Head of the AI Factory Kaaren Hilsen and EVP Infrastructure Jannicke Hilland in front of a Nvidia rack at the firm’s AI factory

Telenor

“The journey started with a belief — Nvidia had a belief that every country needs to produce its own intelligence,” Telenor’s Chief Innovation Officer and Head of the AI Factory Kaaren Hilsen told CNBC.

Hilsen stressed that data sovereignty is key. “If you want to use AI to innovate and to make business more efficient, then you’re potentially putting business critical and business sensitive information into these AI models,” she said.

The company is working with BabelSpeak, which Hilsen described as a Norwegian version of ChatGPT. The technology translates sensitive dialogues, such as its pilot with the border police who can’t use public translation services because of security issues.

We’re experiencing an “intelligence revolution” whereby “sovereign AI factories can really help advance society,” Hilsen said.

Billion-euro investments

Virkkunen said the region’s first AI factory will be operational in coming weeks, with one of the biggest projects launching in Munich, Germany in the first days of September. It’s a different story for the gigafactories.

“These are very big investments because they are four times more powerful when it comes to computing capacities than the biggest AI factories, and it means billions in investments. Each of these need three to five billion [euros] in investment,” the commissioner said, adding that the bloc will look to set up a consortium of partners and then officially open a call for investment later this year.

Bertin Martens, senior research fellow at Bruegel, questioned why such investments needed to subsidized by government funds.

“We don’t know yet how much private investment has been proposed as a complement to the taxpayer subsidy, and what capacity and how big these factories are. This is still very much unclear at this stage, so it’s very hard to say how much this will add in terms of computing capacity,” he said.

Power consumption is also a key issue. Martens noted that building an AI gigafactory may take one to two years — but building a power generation of that size requires much more time.

“If you want to build a state-of-the-art gigafactory with hundreds of thousands of Nvidia chips, you have to count on the power consumption of at least one gigawatt for one of those factories. Whether there’s enough space in Europe’s electricity grid in all of these countries to create those factories remains to be seen… this will require major investment in power regeneration capacity,” he told CNBC.

UBS forecasts that the current installed global data center capacity of 85 GW will double due to soaring demand. Based on the EU’s 20-billion-euro investment and the plan for each factory to run 100,000 advanced processors, UBS estimates each factory could be around 100-150 MW with a total capacity for all of the facilities of around 1.5-2 GW.

That could add around 15% to Europe’s total capacity — a sizeable boost, even when compared to the U.S., which currently owns around a third of global capacity, according to the data.

Following the announcement of the EU-U.S. trade framework, EU chief Ursula von der Leyen said Sunday that U.S. AI chips will help power the bloc’s AI gigafactories in a bid to help the States “maintain their technological edge.”

“One could argue that it’s relatively easy, provided you have the money. It’s relatively easy to buy the chips from Nvidia and to create these hardware factories, but to make it run and to make it economically viable is a completely different question,” Martens told CNBC.

He said that the EU will likely have to start at a smaller scale, as the region is unable to immediately build its own frontier models in AI because of their expense.

“I think in time, Europe can gradually build up its infrastructure and its business models around AI to reach that stage, but that will not happen immediately,” Martens said.

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