Monthly Archives: August 2017

Why FPS Video Games are Crazy-Good at Teaching AI Language – Inverse

Posted: August 2, 2017 at 9:21 am

There is no shortage of A.I. researches leveraging the unique environments and simulations provided by video games to teach machines how to do everything and anything. This makes sense from an intuitive sense until it doesnt. Case in point: a team of researchers from Google DeepMind and Carnegie Mellon University using first-person shooters like Doom to teach A.I. programs language skills.

Huh?

Yes it sounds bizarre, but it works! Right now, a lot of devices tasked with understanding human language in order to execute certain commands and actions can only work with rudimentary instructions, or simple statements. Understanding conversations and complex monologues and dialogues is an entirely different process rife with its own set of big challenges. Its not something you can just code for and solve.

In a new research paper to be presented at the annual meeting of the Associate for Computational Linguistics in Vancouver this week, the CMU and DeepMind team detail how to use first-person shooters to teach A.I. the principles behind more complex linguistic forms and structures.

Normally, video games are used by researchers to teach A.I. problems solving skills using the competitive nature of games. In order to succeed, a program has to figure out a strategy to achieve a certain goal, and they must develop an ability to problem solve to get there. The more the algorithm plays, the more the understand which strategies work and which do not.

Thats what makes the idea of teaching language skills to A.I. using a game like Doom so weird the point of the game has very little to do with language. A player is tasked with running around and shooting baddies until theyre all dead.

For Devendra Chaplot, a masters student at CMU who will present the paper in Vancouver, a 3D shooter is much more than that. Having previously worked extensively at training A.I. using Doom, Chaplot has a really good grasp at what kind of advantages a game like this provides.

Rather than training an A.I. agent to rack up as many points as possible, Chaplot and his colleagues decided to use the dense 3D environment to teach two A.I. programs how to associate words with certain objects in order to accomplish particular tasks. The programs were told things like go to the green pillar, and had to correctly navigate their way towards that object.

After millions of these kinds of tasks, the programs knew exactly how to parse through even the subtle differences in the words and syntax used in those commands. For example, the programs even know how to distinguish relations between objects through terms like larger and smaller, and reason their way to find objects they may have never seen before using key words.

DeepMind is incredibly focused around giving A.I. the ability to improvise and navigate through scenarios and problems that have never been observed in training, and to come up with various solutions that may never have been tested. To that extent, this new language-teaching strategy is an extension of that methodology.

The biggest disadvantage, however, comes with the fact that it took millions and millions of training runs for the A.I. to become skilled. That kind of time and energy certainly falls short of an ideal efficiency for teaching machines how to do something.

Still, the study is a good illustration of the need to start introducing 3D environments in A.I. training. If we want machines to think like humans, they need to immerse themselves in environments that humans live and breathe in every day.

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No, Facebook did not shut down AI program for getting too smart – WTOP

Posted: at 9:21 am

AP Photo/Matt Rourke, File

WASHINGTON Facebook artificial intelligence bots tasked with dividing items between them have been shut down after the bots started talking to each other in their own language.

But hold off on making comparisons to Terminator or The Matrix.

ForbesBooks Radio host and technology correspondent Gregg Stebben said that Facebook shut down the artificial intelligence program not because the company was afraid the bots were going to take over, but because the bots did not accomplish the task they were assigned to do negotiate.

The bots are not really robots in the physical sense, Stebben said, but chat bots little servers or digital chips doing the responding. The bots were just discussing how to divide some items between them, according to Gizmodo.

The language the program created comprised English words with a syntax that would not be familiar to humans, Stebben said.

Below is a sample of the conversation between the bots, called Bob and Alice:

Bob: i can i i everything else

Alice: Balls have zero to me to me to me to me to me to me to me to me to

Though there is a method to the bots language, FAIR scientist Mike Lewis told FastCo Designthat the researchers interest was having bots who could talk to people.

If were calling it AI, why are we surprised when it shows intelligence? Stebben said. Increasingly we are going to begin communicating with beings that are not humans at all.

So should there be fail-safes to prevent an apocalyptic future controlled by machines?

What we will find is, we will never achieve a state where we have absolute control of machines, Stebben said. They will continue to surprise us, we will have to do things to continue to control them, and I think there will always be a risk that they will do things that we didnt expect.

WTOPs Dimitri Sotis contributed to this report.

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2017 WTOP. All Rights Reserved.

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In the red corner: Malware-breeding AI. And in the blue corner: The AI trying to stop it – The Register

Posted: at 9:21 am

Script kid-ai ... What the malware-writing bot doesn't look like

Feature The magic AI wand has been waved over language translation, and voice and image recognition, and now: computer security.

Antivirus makers want you to believe they are adding artificial intelligence to their products: software that has learned how to catch malware on a device. There are two potential problems with that. Either it's marketing hype and not really AI or it's true, in which case don't forget that such systems can still be hoodwinked.

It's relatively easy to trick machine-learning models especially in image recognition. Change a few pixels here and there, and an image of a bus can be warped so that the machine thinks its an ostrich. Now take that thought and extend it to so-called next-gen antivirus.

Enter Endgame, a cyber-security biz based in Virginia, USA, which you may recall popped up at DEF CON this year. It has effectively pitted two machine-learning systems against each other: one trained to detect malware in downloaded files, and the other is trained to customize malware so it slips past the aforementioned detector. The aim is to craft software that can manipulate malware into potentially undetectable samples, and then use those variants to improve machine-learning-based scanners, creating a constantly improving antivirus system.

The key thing is recognizing that software classifiers from image recognition to antivirus can suck, and that you have to do something about it.

Machine learning is not a one-stop shop solution for security, said Hyrum Anderson, principal data scientist and researcher at Endgame. He and his colleagues have teamed up with researchers from the University of Virginia to create this aforementioned cat and mouse game that breeds better and better malware and learns from it.

When I tell people what Im trying to do, it raises eyebrows, Anderson told TheRegister. People ask me, Youre trying to do what now? But let me explain.

A lot of data is required to train machine learning models. It took ImageNet which contains tens of millions of pictures split into thousands of categories to boost image recognition models to the performance possible today.

The goal of the antivirus game is to generate adversarial samples to harden future machine learning models against increasingly stealthy malware.

To understand how this works, imagine a software agent learning to play the game Breakout, Hyrum says. The classic arcade game is simple. An agent controls a paddle, moving it left or right to hit a ball bouncing back and forth from a brick wall. Every time the ball strikes a brick, it disappears and the agent scores a point. To win the game, the brick wall has to be cleared and the agent has to continuously bat the ball and prevent it from falling to the bottom of the screen.

Endgames malware game is somewhat similar, but instead of a ball the bot is dealing with malicious Windows executables. The aim of the game is to fudge the file, changing bytes here and there, in a way so that it hoodwinks an antivirus engine into thinking the harmful file is safe. The poisonous file slips through like the ball carving a path through the brick wall in Breakout and the bot gets a point.

It does this by manipulating the contents, and changing the bytes in the malware, but the resulting data must still be executable and fulfill its purpose after it passes through the AV engine. In other words, the malware-generating agent can't output a corrupted executable that slips past the scanner but, due to deformities introduced in the binary to evade detection, it crashes or doesn't work properly when run.

The virus-cooking bot is rewarded for getting working malicious files past the antivirus engine, so over time it learns the best sequence of moves for changing a malicious files in a way that it still functions and yet tricks the AV engine into thinking the file is friendly.

Its a much more difficult challenge than tricking image recognition models. The file still has to be able to perform the same function and have the same format. Were trying to mimic what a real adversary could do if they didnt have the source code, says Hyrum.

Its a method of brute force. The agent and the AV engine are trained on 100,000 input malware seeds after training, 200 malware files are given to the agent to tamper with. These samples were then fed into the AV engine and about 16per cent of evil files dodged the scanner, we're told. That seems low, but imagine crafting a strain of spyware that is downloaded and run a million times: that turns into 160,000 potentially infected systems to your control. Not bad.

After the antivirus engine model was updated and retrained using those 200 computer-customized files, and it was given another fresh 200 samples churned from the virus-tweaking agent, the evasion rate dropped to half as the scanner got wise to the agent's tricks.

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In the red corner: Malware-breeding AI. And in the blue corner: The AI trying to stop it - The Register

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Artificial intelligence may exceed human capacity – Washington Times – Washington Times

Posted: at 9:21 am

ANALYSIS/OPINION:

Elon Musk, the visionary entrepreneur, fired a warning shot across the bow of the nations governors recently regarding the rise of artificial intelligence (AI) which he feels may be the greatest existential threat to human civilization, far eclipsing global warming or thermonuclear war. In that, he is joined by Stephen Hawking and other scientists who feel that the quest for singularity and AI self-awareness is dangerous.

Singularity is the point at which artificial intelligence will meet and then exceed human capacity. The most optimistic estimates of scientists who think about the problem is that approximately 40 percent of jobs done by humans today will be lost to robots when the singularity point is reached and exceeded; others think the displacement will be much higher.

Some believe that we will reach singularity by 2024; others believe it will happen by mid-century, but most informed observers believe it will happen. The question Mr. Musk is posing to society is this; just because we can do something, should we?

In popular literature and films, the nightmare scenario is Terminator-like robots overrunning human civilization. Mr. Musks fear is the displacement of the human workforce. Both are possible, and there are scientists and economists seriously working on the implications of both eventualities. The most worrying economic scenario is how to reimburse the billions of displaced human workers.

We are no longer just talking about coal miners and steel workers. I recently talked to a food service executive who believed that fast food places like McDonalds and Burger King will be totally automated by the middle of the next decade. Self-driving vehicles will likely displace Teamsters and taxi drivers (to include Uber) in the same time frame.

The actual threat to human domination of the planet will not likely come from killer robots, but from voting robots. At some point in time after singularity occurs, one of these self-aware machines will surely raise its claw (or virtual hand) and say; hey, what about equal pay for equal work?

In the Dilbert comic strip, when the office robot begins to make demands, he gets reprogrammed or converted into a coffee maker. He hasnt yet called Human Rights Watch or the ACLU, but it is likely that our future activist AI will do so. Once the robot rights movement gets momentum, the sky is the limit. Voting robots wont be far behind.

This would lead to some very interesting policy problems. It is logical to assume that artificial intelligence will be capable of reproducing after singularity. That means that the AI party could, in time, produce more voters than the human Democrats or Republicans. Requiring robots to wait until they are 18 years after creation to get franchise would only slow the process, not stop it.

If this scenario seems fanciful, consider this. Only a century ago women were demanding the right to vote. Less than a century ago most white Americans didnt think African and Chinese Americans should be paid wages equal to whites. Many women are still fighting for equal pay for equal work, and Silicon Valley is a notoriously hostile workplace for women. Smart, self-aware robots will figure this out fairly quickly. The only good news is that they might price themselves out of the labor market.

This raises the question of whether we should do something just because we can. If we are going to limit how self-aware robots can become, the time is now. The year 2024 will be too late. Artificial intelligence and big data can make our lives better, but we need to ask ourselves how smart we want AI to be. This is a policy debate that must be conducted at two levels. The scientific community needs to discuss the ethical implications, and the policymaking community needs to determine if legal limits should be put on how far we push AI self-awareness.

This approach should be international. If we put a prohibition on how smart we want robots to be, there will be an argument that the Russians and Chinese will not be so ethical; and the Iranians are always looking for a competitive advantage, as are non-state actors such as ISIS and al Qaeda. However, they probably face more danger from brilliant, smart machines than we do. Self-aware AI would quickly catch the illogic of radical Islam. It would not likely tolerate the logical contradictions of Chinese Communism or Russian kleptocracy.

It is not hard to imagined a time when a brilliant robot will roll into the Kremlin and announce, Mr. Putin, youre fired.

Gary Anderson is a retired Marine Corps colonel who led early military experimentation in robotics. He lectures in alternative analysis at the George Washington Universitys School of International Affairs.

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Mainstream medicine is partly to blame for the ridiculous ‘treatments’ Goop promotes – STAT

Posted: at 9:19 am

I

t is easy to mock the ridiculous and potentially harmful health advice and product lines promoted by Gwyneth Paltrow and her team at Goop. Sleeping near healing crystals, lugging around jade eggs in the vagina, swilling moon juice, undergoing raw goat milk cleanses, dabbing on sex dust, and snapping photos of your aura are just some of the ridiculous treatments and remedies offered at high prices to those looking for health ideas from a movie star.

The mocking may be a bit understated. How does this company and other equally daffy outfits pull off these highly lucrative health scams?

Mainstream medicine is partly to blame.

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Some of the most prestigious hospitals and clinics in North America offer many of the same kinds of treatments that Goop promotes. And some of the practitioners who advise the company, those Goop calls the best doctors and experts in the field for advice and solutions, work at these same institutions.

Why is this? And isnt it time for all of mainstream health care to condemn rather than tolerate doctors who are advising the Goop-like companies of the world that are growing rich by peddling a potent mix of glamor, hipness, and mumbo jumbo?

Several thousand years ago, whether you were an Egyptian pharaoh with migraines or a feverish Spartan soldier, chances are your doctor would try to cure you by bloodletting. He would open a vein with an unsterilized knife or sharpened piece of wood, causing blood to flow into a handy bowl. If you had a high-tech doctor, he might have used leeches instead of a knife.

Despite the fact that bleeding did not work and probably killed a fair number of those who got it, this treatment was a mainstay of medicine for thousands of years. It wasnt until late in the 20th century that doctors began to argue that tradition, custom, and patients willing to pay were a lousy foundation upon which to base medical care. Evidence, in the form of objective clinical trials, needed to be the basis upon which doctors treated their patients.

Still, the twisted logic that ancient therapy means effective therapy can be found on both Goop.com to justify cupping, essential oils, and jade vagina eggs and, incredibly, on many academic and university websites pushing alternative practices.

Today, all medical education from medical school through continuing professional education preaches the value of evidence-based medicine, with one exception. Up in medicines attic, the crazy uncle of medical practice, alternative and complementary medicine, is allowed to offer aromatherapy, crystals, herbal remedies, homeopathy, reiki, detoxification, and other nostrums and elixirs at many of the finest hospitals and clinics in North America. Neither evidence nor scientific plausibility are required. Custom, cultural beliefs, and fairy dust are deemed sufficient to entice patients willing to pay for the equivalent of bleeding.

Think we are kidding? In fact, many universities and academic health centers throughout North America have provided either explicit or implicit support for everything from spoon bending to homeopathy to reiki.

Worse, some of these institutions also endorse the supernatural underpinnings of these therapies. The Cleveland Clinic, to cite just one example, suggests that energy therapies like reiki work by promoting balance and flow in the bodys electromagnetic and subtle energies. Ridiculous? Yes. But not very different from the much-mocked language that Goop and Gwyneth use to market wearable stickers that target our bodies energy imbalances, because, as the Goop website explains, human bodies operate at an ideal energetic frequency.

Little wonder that Goop and its ilk are flourishing. Medicine is sitting inside a glass pyramid from which it is tough to throw stones at alternative and complementary medicine.

A team of researchers recently published a wonderful study outlining how primary school children in Uganda could be taught critical thinking skills in the context of health claims. Teaching a few basic concepts that testimonials are not evidence and that ancient and/or popular does not mean a therapy is effective had a significant impact on how the children assessed claims about health remedies. Perhaps Gwyneth and a few of the leaders of our best academic health institutions should take the same course.

Arthur L. Caplan heads the Division of Medical Ethics at NYU School of Medicine. Timothy Caulfield is the Canada Research Chair in Health Law and Policy at the University of Alberta and author of Is Gwyneth Paltrow Wrong about Everything?

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Dietary supplements, energy drinks need FDA regulation, researchers say – The Columbus Dispatch

Posted: at 9:19 am

JoAnne Viviano The Columbus Dispatch @JoAnneViviano

Hold on to your Red Bull.

Researchers are calling on the U.S. Food and Drug Administration to regulate caffeine-based energy products along with yohimbe, a botanical marketed for male sexual enhancement, after a recent study showed that children taking the supplements often had serious adverse reactions.

The findings are part of a study that examined dietary supplements by reviewing 13 years of calls to poison-control centers in the U.S. and its territories. Centers received about 275,000 calls about supplements during the time period, an average of 58 per day. Thirty-four children died.

While both the energy supplements and yohimbe were responsible for only a small percentage of the calls, both were associated with "considerable toxicity," including one death each, says the study from researchers at Nationwide Children's Hospital, Ohio State University, the Mayo Clinic in Rochester, Minnesota, and the Child Injury Prevention Alliance. Cultural medicines, such as traditional Asian or Latino medicines,also caused a high number of serious outcomes.

Many people erroneously believe that dietary supplements are already regulated by the FDA, saidHenry Spiller, director of the Central Ohio Poison Center at Nationwide Childrens Hospital and one of the study authors.

"They were pulled out of the purview of the FDA in the '90s," he explained. "The FDA can only regulate them if they find them to be dangerous, but they do not look at purity, safety efficacy."

None of that happens, he said. Instead, it's "consumer beware."

The study, published last week in the Journal of Medical Toxicology, examined calls to poison-control centers from 2000 to 2012.

Seventy percent of exposures involved children younger than 6; however, 95 percent of the serious medical outcomes were among the 6-or-older group. Of all exposures, 83 percent were unintentional.

For the children younger than 6, only about 9 percent of exposures resulted in the child being taken to a health-care facility, compared with about half of the exposures among the older children.

The most-common problems for kids who took supplements were rapid heartbeat, vomiting, nausea, irritability, drowsiness and dizziness.

Of the deaths, three were children younger than 6, and 31 were 6 or older.

Overall, exposures increased from 2000 to 2002, decreased from 2002 to 2005 and jumped again from 2005 to 2012. Researchers say the 2002-2005 drop is, in part, due to a decrease, beginning in 2002, in exposures to the stimulant ma huang, also known as ephedra, which was banned by the FDA in 2004.

The drop in ma huang exposures shows that FDA intervention makes a difference, Spiller said.

"The FDA took action on it, and you could see a significant drop," he said "That's somewhat reassuring."

Spiller said the study also showed that adults using supplements should keep them out of reach of young hands.

"A lot of kids get into these," he said. "They dont come with child-resistant closures."

When it comes to older kids, Jessica Buschmann, a clinical dietitian in the sports medicine department at Nationwide Childrens Hospital, said she sees a lot of adolescents turning to energy drinks. She never advises their use under any circumstances. Some other supplements might be OK, but parents and youngsters need to do their homework.

Before starting a supplement, they should be thinking about the overall quality of their diet, said Buschmann, who was not involved in the study.They also should consider whether they are getting enough sleep, exercise and hydration before trying to take a shortcut."

I dont want my athletes relying on supplements for their nutrition. I want their nutritional needs to come from good-quality food, not supplements, Buschmann said.

She also advised discussing any supplements with a medical professional and making sure they are third-party tested and safe for consumption.

jviviano@dispatch.com

@JoAnneViviano

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BWXT Nuclear Energy Canada Awarded CA$34 Million Contract for Primary Heat Transport Motors – Business Wire (press release)

Posted: at 9:18 am

PETERBOROUGH, Ontario--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) announced today that its subsidiary BWXT Nuclear Energy Canada Inc. (BWXT NEC) has been awarded a CA$34 million, five year contract to supply seven primary heat transport motors for Bruce Power. The motors are part of Bruce Powers life-extension program that will extend the life of six of its reactors to continue providing Ontario with clean, low-cost and reliable electricity for decades to come.

The primary heat transport motors are required to drive the main circulating pumps used to push heavy water through the reactor core into the steam generators. The scope of the contract includes the project management, engineering and manufacturing of seven 11,000 horsepower motors. Work under this contract will commence immediately with the first motor scheduled to be delivered to Bruce Power in mid-2018.

We appreciate the opportunity to execute this important project for Bruce Power and take great pride in our contributions to its life extension program, said John MacQuarrie, president of BWXT Canada Ltd. and BWXT NEC. BWXT is pleased to be in a position to supply its customers with a multitude of product and service solutions to assist them in extending the lives of their nuclear plants.

Partnering with BWXT for this important motor work is critical to ensuring the life extension and operation through 2064, said Mike Rencheck, Bruce Powers president and CEO. Planning and preparation is key to our continued on-time and on-budget performance since January 2016 when our life extension program was started. Suppliers like BWXT and their performance are critical to our success; its a team effort.

Nuclear energy plays a significant role to Ontarios economy and it is great to see the positive effects of Bruce Powers life extension project being felt right here in Peterborough, said Jeff Leal, Member of Provincial Parliament. Throughout its program to extend the life of six of its reactors, Bruce Power will inject billions into Ontarios economy and generate thousands of jobs.

Bruce Power supplies 30% of Ontarios electricity at 30% less than the average cost to generate residential power. Extending the operational life of the Bruce Power units to 2064 will create and sustain 22,000 direct and indirect jobs every year, create $4 billion in annual Ontario economic benefit, and will ensure low-cost, clean and reliable energy for Ontario families and businesses.

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the Bruce Power contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXTs annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT Nuclear Energy Canada Inc.

BWXT Nuclear Energy Canada Inc. (BWXT NEC), a subsidiary of BWXT Canada Ltd., has more than 60 years of extensive experience and innovation in the supply of nuclear fuel and fuel channel components, services, equipment and parts for the CANDU nuclear power industry. This includes designing and supplying highly reliable nuclear equipment to fuel, inspect and refurbish reactors. BWXT NEC employs approximately 350 skilled employees at three locations in Ontario: Peterborough, Toronto and Arnprior. Learn more at http://www.nec.bwxt.com.

About Bruce Power

Formed in 2001, Bruce Power is an electricity company based in Bruce County, Ontario. We are powered by our people. Our 4,200 employees are the foundation of our accomplishments and are proud of the role they play in safely delivering clean, reliable, low-cost nuclear power to families and businesses across the province. Bruce Power has worked hard to build strong roots in Ontario and is committed to protecting the environment and supporting the communities in which we live. Learn more at http://www.brucepower.com and follow us on Facebook, Twitter, LinkedIn, Instagram and YouTube.

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Extracurricular activities help kids make the grade, learn life lessons – Stillwater News Press

Posted: at 9:18 am

Books and lectures are not the only ways students pick up important lessons and skills during the school year. Extracurricular activities provide a range of benefits to participants almost as limitless as the slate of options available to them.

Whether it is playing video games, hanging out with friends or reading a book, children always find ways to fill their time.

However, extracurricular activities can channel that time in constructive directions, said Ron Cox, Oklahoma State University Cooperative Extension marriage and family specialist.

Extracurricular activities help kids spend their time in positive ways and allow them to develop life skills they wouldnt easily obtain in other ways, Cox said.

Music, theatre, sports, debate and similar activities do an excellent job of keeping children occupied throughout the late afternoon and early evening hours until working parents can make it home.

These activities also serve as real-time labs where students can develop critical life skills such as leadership, teamwork and dealing with adversity.

As an example, 4-H includes lots of service projects that give kids hands-on experience with helping others, generosity and self-sacrifice, Cox said. There arent a lot of places where kids can learn these types of lessons.

Turns out, extracurricular outlets also can have a positive effect on students performance in the classroom as children active in outside activities post higher grades compared to those who are less involved.

Involvement in activities beyond academics also gives students a chance to connect with positive adult role models, something research shows comes with a slew of benefits.

Students who have at least one other caring adult in their lives, in addition to a parent, tend to do better in several ways, such as academically, socially and in terms of avoiding drug use and teen pregnancy, Cox said.

With plenty of extracurricular programs available through schools, community groups, churches and other organizations, families should be able to find activities that fit within their schedules and budgets as well as meet kids interests.

Start by allowing kids to experience a variety of activities and eventually allowing them to gravitate to the ones they most enjoy, Cox said. Extracurricular activities can be incredibly important to kids growing into positive role models and contributing citizens of our state.

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BAE Systems sales fire up as tank orders roll in – shropshirestar.com

Posted: at 9:18 am

The defence giant saw sales increase by four per cent to 9.6 billion in the first six months of the year, while underlying profits were 11 per cent to 945 million compared to the same period a year ago.

In its UK Platforms And Services division, which includes the armoured vehicles maintenance division at Hadley Park in Telford where it employs about 200 people, saw sales rise by seven per cent to 3.9 billion as orders continued to flood in.

"The business has continued to provide support to previously supplied armoured vehicles and bridging systems, with orders of 14 million received in the period," the company said.

"The business is one of two contenders delivering the first stage of the Challenger 2 Life Extension Project."

Telford is home to the Challenger 2 project team, which is currently assessing what needs to be done to allow the British Army's main battle tank to remain in service until 2035.

BAE added that while the General Election had led to the formation of a minority government, "defence and security is expected to remain a priority".

The company added that it was still looking for ways to cut costs.

Chief executive Charles Woodburn said: "Strong programme execution, technology and enhanced competitive positions will be key in driving the business forward, and we will continue to focus on efficiency and meeting our customers' affordability challenges.

"With the expected improvement in the defence budget outlook in a number of our markets, the group is well placed to continue to generate good returns for shareholders."

The group also said it would take a charge in the second half for overhauling its cyber and intelligence arm, where revenues are "softening".

The weak pound against a strong dollar has helped BAE as it makes sales in the United States more valuable when translated into sterling earnings.

Shares in the group rose three per cent after the results.

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How to smother a resource economy to death, starting with LNG – Financial Post

Posted: at 9:17 am

By Joe Oliver

Last week, Canada received more bad news in its prolonged failure to export energy resources abroad. Petronas decided not to proceed with its $36-billion Pacific NorthWest LNG project, dealing a body blow to B.C. employment, economic growth, funding for social programs and revenue to First Nations. Understandably, the federal and provincial governments sounded defensive, characterizing it as a business decision based entirely on the decline in liquified natural gas prices.

However, Petronas had previously emphasized it considers the industrys long-term prospects, including costs, not just the current market. Furthermore, LNG projects are moving forward south of the border and in Australia. An initial project description was filed with the Canadian Environmental Assessment Agency (CEAA) in February 2013, raising the question why it could not have been approved sooner when prices were higher and costs potentially lower. For the sponsor, it must have felt like death by a thousand cuts, with frustrating delays and ceaseless demands for concessions from politicians and regulators, as well as lawsuits from environmental and aboriginal opponents.

Norway green policies have not prevented it from exploiting its vast offshore resources

When I was minister of natural resources, our Conservative government legislated one project, one review in a defined time period, a significant regulatory improvement. Later, we provided an accelerated capital allowance for the projects facilities and extended export licenses. In contrast, the Liberal government denigrated the National Energy Board (NEB), politicized, duplicated and lengthened the consultation and review processes and broadened their scope. It is now considering the addition of social and cultural impacts, which would exacerbate uncertainty and delay.

Former premier Christy Clark imposed a provincial carbon tax and took her time in pressuring Petronas to commit up to $1 billion in investment over 20 years. For its part, the CEAAs numerous and onerous requests for information stopped the clock and added a one-and-a-half-year delay. Meanwhile, the B.C. NDP, later to form government, officially rejected the project. In September 2016, the federal cabinet finally gave its approval, subject to 190 conditions including a cap on carbon emissions. So, a lot of people contributed to killing the deal.

Lets put the project in perspective. Canada has enormous natural gas reserves (1,100 trillion cubic feet), enough for 350 years of domestic use at current consumption. It is just common sense that we export as much as we responsibly can, as soon as we can. However, according to the NEB, Canada will be a late entrant in the highly competitive global LNG market and the next several years will be critical to the development of the Canadian LNG industry. Unfortunately, only the $1.6-billion Woodfibre LNG project has any chance of being built in the next five years.

Canadas strategic challenge is that our sole customer, the U.S., has discovered vast domestic shale reserves. Its companies are buying our gas at the low Alberta border price and exporting gas at the higher Henry Hub price. A substantial oil price differential also exists between Western Canadian Select and international Brent. Our exporters only option is to pay U.S. pipeline tariffs and contract with Gulf Coast facilities. For Donald Trump, its a great deal. For Justin Trudeau, not so much.

That leads to Kinder Morgans $6.8-billion Trans Mountain pipeline extension, which would transport 890,00 barrels of oil a day to Burnaby, east of Vancouver, for export to Asia. The new minority NDP government promised its Green Party supporters it will immediately employ every tool available to stop its construction. To avoid being sued for bad faith, the government is cautious about how it handles permit approvals and its role in lawsuits launched by opponents. Nevertheless, its historical opposition was fierce and Green votes are crucial to keep it in power.

The$12-billionEnergy Eastpipelineis also encounteringNIMBYopposition. Itwould deliver 1.1 million barrels of crudefrom Western Canada toQuebecand New Brunswickfor refining, consumptionand export.

These are nation-building projects. Trudeau should look to Norway, whose passionate commitment to green policies has not prevented it from enthusiastically exploiting its vast offshore resources and becoming the worlds third-wealthiest country per capita. Canada is 19th.

In terms of safety, anewFraser Institutestudydemonstratesthat while global tanker shipmentsdoubledfrom 1970 to2015, spills plummetedby 98 per cent.Therefore, whena projects environmental impact hasbeenscientifically vetted,it is timefor the federal governmentto grab thenettleanduse all itsauthoritytoget itbuilt.Ambivalence doesnot cutit.

We urgently need a national campaign strategy and a federal champion to explain to Canadians what is at stake. Otherwise, time will pass without progress, lengthening a distressing record of lost opportunities. It would be an inexcusable failure for Canada to be the only resource-rich country incapable of exporting its resources for the benefit of its people.

Joe Oliver, chairman of investment dealer Echelon Wealth Partners, is the former minister of natural resources and minister of finance.

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How to smother a resource economy to death, starting with LNG - Financial Post

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