Monthly Archives: August 2022

Heres Why NFTs Are Poised To Witness Hypergrowth, Per John G – News Ghana

Posted: August 2, 2022 at 3:29 pm

Non-fungible tokens, aka NFTs, are gradually becoming mainstream in the ever-expanding metaverse. As per BBC, the use of the acronym grew by 11,000% in 2021, while CNBC reported that trading in NFTs amplified by 21,000% in the same year. It seems theres no looking back to this trend as brands across various industries are ready to hop on the bandwagon.

As per NFTs expert John G, the digital artwork is attracting brands to expand beyond traditional marketing mix. Whether its Coachella offering digital blooms to paid participants or Super Bowl turning tickets into collectible NFTs, 2022 so far has witnessed some of the most exciting ways brands have utilized NFTs to engage with audiences. From Dolce & Gabbana to Coachella and Adidas, numerous brands are leveraging NFTs in their marketing campaigns.

John G shares that this trend will only grow from here. NFTs have struck a chord with the fashion industry, among many others. Renowned brands are selling their clothing as non-fungible tokens besides participating in virtual fashion weeks, he adds.

Companies like Adidas have expanded their brand strategy into the metaverse. Their collaborations with Bored Ape Yacht Club (BAYC) and Punks Comic are the baby steps towards their mega plan to influence the metaverse, says John G.

Besides attracting brands, NFTs have become a dependable medium for artists worldwide. Today digital artwork is selling in millions on NFT platforms, and artists receive royalties every time their art exchanges hands. John G believes that the NFT world has rewarded artists like never before. Artists consider NFTs as the future of their craft.

Talking about virtual real estate, John G reveals that the NFT ecosystem is also witnessing massive sales of lands on platforms like Decentraland and The Sandbox. Creators on these platforms offer immersive experiences to audiences that span from mazes to colonies on planet Mars.

Lastly, NFTs and crypto tokens across the globe thrive on the foundation of a young active community. NFTs are proving to be more than just hype. The real users behind these digital assets are leaving no stone unturned to make their projects a super success. With the #WAGMI spirit felt unanimous in its communities, the future of NFTs looks bright and surreal, elucidates John G.

In a nutshell, NFTs continue to innovate the metaverse and touch our lives in several ways. The hypergrowth of NFTs is poised to prosper in the coming years. Its a tsunami that will take over the metaverse and build it block by block.

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A Menu Sample of Dishes to Try When in the Seychelles – Africa.com

Posted: at 3:28 pm

A staple in tropical countries, breadfruit has a similar taste to potatoes but with an amazing aroma of baked bread. In Seychelles, it is mostly made into mash or chips or roasted over an open fire. The salad palmis, also known as the Heart of Palms Salad or Millionaires salad due to the labour that comes with getting the palm hearts, is a local delicacy consisting of coconut, red peppers, green tomatoes, avocados, green mangoes, coriander, and mint. Being an island destination, seafood is a dominant feature on any menu in Seychelles, and one of the most common and most loved dishes is grilled fish. Seychelles has created its own version of shark chutney. Made with ground shark meat, bilimbi, lime, and turmeric, shark chutney is served with many of the creole main dishes. Sosis Sale (salted sausage) and sosis kreol (creole Sausage) are two types of sausages found in Seychelles, and they make up this popular household dish of sausage rougay. Two types of cassava are found on the island of Seychelles, a sour one and a sweet one called mayok dou, which is the one used as an ingredient in making cassava pudding cake vanilla infused baked treat topped with coconut for some crunch.

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China and NATO’s Strategic Concept The Diplomat – The Diplomat

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The Diplomat author Mercy Kuo regularly engages subject-matter experts, policy practitioners, and strategic thinkers across the globe for their diverse insights into U.S. Asia policy.This conversation with Dr. Mathieu Duchtel director of the Asia Program at Institut Montaigne in Paris and formerly the representative in Beijing of the Stockholm International Peace Research Institute (SIPRI) is the 329th in The Trans-Pacific View Insight Series.

Identify major differences between NATOs Strategic Concept 2022 and past versions.

The Euro-Atlantic area is not at peace, and NATO cannot discount the possibility of an attack against Allies sovereignty and territorial integrity. From this bleak but obvious assessment, in stark contrast with the language of the previous Strategic Concept released in 2010 (an Euro-Atlantic area at peace and a low threat of attack against NATO territory), follows the great emphasis of the 2022 Concept on NATOs nuclear deterrence, with resolve as the key word to demonstrate credibility. No one should doubt our strength and resolve to defend every inch of Allied territory; The Alliance has the capabilities and resolve to impose costs on an adversary that would be unacceptable and far outweigh the benefits that any adversary could hope to achieve.

Challenges from authoritarian actors to our interests, values and democratic way of life have outranked and downgraded the proliferation of ballistic missiles and terrorist risks to a secondary priority on NATOs threat assessment. Strategic competition with authoritarian actors impacts threat assessment across all security sectors but is particularly obvious in cyberspace. There is a world between 2010s Cyber-attacks are becoming more frequent, more organized and more costly to 2022s Malign actors seek to degrade our critical infrastructure, interfere with our government services, extract intelligence, steal intellectual property and impede our military activities.

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In sum, the intensity of current threats and challenges to Euro-Atlantic security suggests a strong sense of common purpose to an alliance that only a few years ago French President Macron was characterizing, or rather mischaracterizing, as brain dead.

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Analyze key shifts in NATOs approach to China as reflected in Strategic Concept 2022.

China poses systemic challenges to Euro-Atlantic security but is not considered an adversary or a threat. What best characterizes the inclusion of China on NATOs agenda Secretary-General Jens Stoltenbergs 2020 remark that this is not about moving NATO into the South China Sea, but it is about taking into account that China is coming closer to us.

Two years later, the 2022 Strategic Concept prioritizes enhancing the resilience of NATO member states against Chinese actions that undermine the coherence and the strength of our societies, economies, and democratic institutions. In short, NATO remains focused on Euro-Atlantic security in a broad sense, not military competition in the Indo-Pacific.

Regarding China, NATO has a key role to play to achieve strategic unity and coherence among its member states. This role is particularly salient given that China systematically seeks to sow division in transatlantic relations and to exploit intra-EU differences to its advantage. A shared assessment of Chinese military policy can provide a strong basis for strategic unity. During the Cold War, NATO already provided a platform for intelligence exchange between member states on the state of PLA programs. There was no question at the time already that the focus of the alliance was overwhelmingly the Soviet threat.

Today in Europe, the EU lacks the capacity in Europe to produce shared awareness of development trends inside the PLA: decisions regarding equipment, force structure, overseas deployments, posture in East Asia, the change of format of Chinese nuclear forces A common understanding of Chinese military affairs is crucial as a basis to prevent transfers of dual-use technology that benefit PLA programs, and to guide European military cooperation to other partners in the Indo-Pacific region. The fact that military analysts focused on Russian deployments around Ukraine were much more successful in predicting the Russian attack than historians, diplomats, or political scientists is a tragic recent reminder of the peculiar reliability of military analysis to understand a countrys strategic orientation and predict its behavior.

Examine Beijings response to the Strategic Concept.

There is clearly irritation in Beijing. The spokesman of the Chinese Foreign Ministry, Zhao Lijian, has warned NATO that it is completely futile to play up and hype the so-called China threat and repeated known lines regarding Chinese normal defense spending, and NATOs quest of absolute military security.

But Chinas order of priorities is clear, and is encapsulated in the formula 2, 3, 4, 5: the U.S. bilateral alliances in East Asia, AUKUS, the Quad, and the Five Eyes. An Euro-Atlantic alliance focused on resilience in the Euro-Atlantic area poses no threat to China.

Could NATO play a role in the Indo-Pacific military balance? It is extremely unlikely in peace time. But there is an ambiguity regarding whether NATOs collective defense (Article 5, that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all) could be activated in case of a Chinese attack against U.S. bases in the Pacific, if China launched a Taiwan annexation war. In its detailed response to the Strategic Concept, the Chinese mission to the EU expressed skepticism regarding NATOs claim that its defense zone will not extend beyond the Northern Atlantic region. Chinese analysts tend to see a trend of NATO involvement in Indo-Pacific security in the making especially in the context of leaders from Australia, Japan, and South Korea attending the 2022 NATO summit.

How does the Strategic Concept raise the stakes in NATOs management of China-Russia relations vis--vis the China challenge and Russia as a significant and direct threat to the Euro-Atlantic area?

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The 2022 Strategic Concept does not represent China and Russia as the two faces of the same single threat. Despite the Concepts emphasis on authoritarian states, a clear distinction is made between the imminent Russia threat and the challenges to Euro-Atlantic interests posed by China. It could have been otherwise. Some countries would have accepted tougher language on the state of the Sino-Russian partnership. France reportedly played a key role in advocating a nuanced language merely noting that Chinese and Russian actions are mutually reinforcing. This suggests a growing awareness that Western policies towards China and Russia have largely contributed to cement their partnership.

From Abe Shinzos to Emmanuel Macrons, all attempts to drive a wedge between China and Russia proceeded on the assumption Russia will not accept a status of Chinas junior partner. All failed to capture the order of priorities in Moscow, and Putins drive to revise the international order. As Western sanctions against Russia are in the process of causing gigantic damage to its economy and access to technology, deepened Russian dependence on China is unavoidable. The risk of opportunistic Russian actions against NATO in a scenario of U.S.-China confrontation over Taiwan may be higher than the risk of opportunistic Chinese military offensive in East Asia in the context of the Ukraine war, even though a prolonged war lasting years could provide China a window.

There is no silver bullet to prevent this worst-case scenario from happening NATO military superiority and the credibility of our deterrence posture remains the best security guarantee for NATO member states. At the same time, not designating China a security threat and focusing NATOs action on Euro-Atlantic resilience, security, deterrence of Russia, and simply military power is the safer road. This does not prevent European states like France and the United Kingdom from continuing to play a limited role in Indo-Pacific security, nor does this forego the possibility for the U.S. of mobilizing key NATO allies as part of a coalition if China starts a war in East Asia.

Assess NATOs plans to operationalize the Strategic Concept and implications for the geopolitical risk environment in Europe and the Indo-Pacific region.

The 2022 Strategic Concept reaffirms in unambiguous terms NATO as the cornerstone of Europe-Atlantic security. NATO provides credible deterrence against attacks against its member states. A Russian gamble that striking missile defense facilities in Poland or convoys of military equipment to Ukraine before they reach the border would uncover the void of Article 5 would be extremely self-destructive. The new Strategic Concept is all about strength, credibility, and resolve but the focus is NATO territory. Russias use of its nuclear umbrella to conduct a war of conquest and destruction in Ukraine shows the limits of NATOs capacity to defend the status quo and preserve peace in Europe.

In the coming years, facing a weakened and aggressive Russia, the priority to operationalize the Strategic Concept is to cultivate NATOs strategic superiority over Russian armed forces. The membership of Sweden and Finland and Germanys plans to spend 2 percent of GDP on defense will strengthen NATO. The EUs financial support for military innovation in Europe is also an important strategic asset. NATO needs to regain an aura of military power and resolve, which internal disputes regarding strategic orientations, Europe largely free-riding on U.S. military power, and the Afghanistan campaign had contributed to erode.

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Italy’s lower house backs NATO membership for Finland and Sweden – Reuters

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Brothers of Italy party leader Giorgia Meloni arrives for a meeting at the Quirinale Palace in Rome, Italy January 29, 2021. REUTERS/Guglielmo Mangiapane/File Photo

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ROME, Aug 2 (Reuters) - Italy's Chamber of Deputies approved a bill on Tuesday to ratify the accession of Finland and Sweden to NATO in a vote welcomed by Giorgia Meloni, whose far-right Brothers of Italy party is seen as the front runner in the coming election.

The lower house voted by 398 votes to 20 in favour of the bill which now needs a second, final green light from the Senate.

"In the face of Russian aggression against Ukraine, strengthening the European front of the Alliance is an important step that can act as a deterrent to new Russian threats," Meloni said in a statement.

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The accession needs to be ratified by the parliaments of all 30 North Atlantic Treaty Organization members before Finland and Sweden can be protected by the NATO defence clause that states that an attack on one member is an attack against all. read more

Meloni, whose party is the most popular in the conservative coalition ahead of the Sept. 25 election, had endorsed Prime Minister Mario Draghi's decision to ship weapons to Ukraine, even though it was in opposition to his government. read more

However, her two main allies, the League and Forza Italia, have been much more ambivalent, reflecting their historically close ties with Russian President Vladimir Putin.

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Reporting by Angelo Amante; Editing by Mike Harrison

Our Standards: The Thomson Reuters Trust Principles.

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Could there ever be a Middle East Nato? – The Business Standard

Posted: at 3:26 pm

In the run-up to US President Joe Biden's visit to Israel and Saudi Arabia this month, Jordan's King Abdullah II said he "would be one of the first people that would endorse a Middle East Nato." The idea of a Middle East Nato a Nato-like military alliance among various configurations of states in the region was floated as recently as the Trump administration but has thus far failed to materialise.

Given that the kings and autocrats of the region deeply mistrust each other, especially on matters of security and intelligence-sharing, it remains a far-fetched notion. Martin Indyk, a former US ambassador to Israel and assistant secretary of state for Near Eastern affairs and now a distinguished fellow at the Council on Foreign Relations, said such an alliance might require an "Article 5-like commitment from the US" referring to the principle that all Nato members must treat an attack against one as an attack on all and that "Congress would never agree to such a treaty."

But while creating a Middle East Nato remains out of the question, Abdullah's statement reflected an optimism for Biden's trip. Perhaps it would at least yield a regional air defence integration plan among Gulf countries and Israel. Even that smaller goal, though which seemed achievable in light of recent US-backed defence cooperation in the region did not come to fruition. In large part, this is because Arab leaders are wary of joining hands publicly with Israel to create what would effectively be a military front against Iran.

Iran's expansion in the region through militias in Lebanon, Syria, Iraq and Yemen has rattled some Arab nations so greatly that they have begun to see Israel, a historic enemy with superior military capabilities, as a potential defence ally. The Biden administration's strategy has thus been to encourage defence cooperation among US allies including Bahrain, Egypt, Israel, Jordan, the United Arab Emirates and Saudi Arabia while also attempting to revive the Iran nuclear deal.

Although similar ideas have been discussed in the past under several US presidents, the prospect of an air defence group has gained momentum in recent years as Saudi and Emirati cities and oil facilities, as well as US bases and troops in the region, have come under more frequent drone strikes by Iran's proxies. These drones are small and hard to intercept, so it is only natural that defence cooperation is increasingly being considered.

In fact, defence cooperation to combat the Iranian drone threat is already taking place, the New York Times reported this month. In March 2021, Israel foiled an Iranian drone attack with help from an Arab nation probably Jordan, the Times reported when Israeli jets were allowed to use Arab air space to shoot down the drones.

Wider defence cooperation is on the rise as well. A year after Israel normalised relations with the UAE and Bahrain with the Abraham Accords in 2020, all three countries and the United States held their first joint naval drill. This February, Israel participated in US-led naval drills with Saudi Arabia and Oman for the first time. Soon after, a senior Israel Defence Forces official was posted to Bahrain the first time an Israeli officer has been stationed in an Arab country. Then, in March, military officials from Bahrain, Egypt, Jordan, Saudi Arabia, the UAE and Israel came together in Egypt in secret to discuss a potential air defence alliance, the Wall Street Journal reported.

Then just days before Biden's visit, Israeli Defence Minister Benny Gantz said Israel had joined other countries which he did not name in what he called the Middle East Air Defence alliance, a US-led regional air defence group. According to Gantz, member countries would be sharing intelligence about incoming Iranian missiles and drones in order to warn each other about attacks. Expectations were high that an announcement on defence cooperation was imminent during Biden's visit.

But all the talk amounted to little during the visit. The joint statement following Biden's summit with the Gulf Cooperation Council (GCC) countries in Riyadh said GCC members and Washington would enhance "joint deterrence capabilities" but made no mention of a regional air defence mechanism including Israel.

As Lazar Berman aptly noted in the Times of Israel, "The much-discussed regional security alliance against Iran looks to be far less advanced than Israel would have hoped. Mentions of the framework during the visit were exceedingly vague, a far cry from a Middle Eastern Nato."

Several analysts told Foreign Policy that the United States and Israel overestimated Arab nations' willingness to publicly enter a defense alliance with Israel before a resolution to the Palestinian conflict. "Gulf countries don't trust each other and that is why such defence alliances have not materialised in the past despite US attempts," said Yasmine Farouk, a nonresident scholar in the Middle East programme at the Carnegie Endowment for International Peace.

But now, Farouk said, "matters have been complicated further because the US has added Israel to the mix. Most GCC countries are not comfortable with publicly being a part of an alliance with Israel. Several Saudi officials have told me that they are not okay with it."

Anchal Vohra is a Brussels-based columnist for Foreign Policy who writes about Europe, the Middle East and South Asia.

Disclaimer: This article first appeared on Foreign Policy, and is published by special syndication arrangement.

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NATO: What’s in the kit of a French CBRN defence specialist? – EU Today

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Whats in the kit of a French CBRN defence specialist? Brigadier Herton from the 2nd Dragoon Regiment, French Army, shows us what he carries in the kit bag to detect chemical, biological, radiological and nuclear contamination in the field.

The 2nd Dragoon Regiment is the French Army unit dedicated to combatting chemical, biological, radiological and nuclear (CBRN) weapons.

The unit was filmed in Norway while training with other NATO Allies in Exercise Cold Response 2022

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New NATO CCDCOE director takes office in Tallinn – ERR News

Posted: at 3:26 pm

Dr Noorma took up his post following a formal, change-of-command ceremony held at Estonian Defense Forces (EDF) headquarters in Tallinn, where outgoing director, Brig. Gen. Jaak Tarien, handed over.

Noorma's term is for three years, and Ministry of Defense Undersecretary for Defense Planning Tiina Uudeberg psaid of his appointment that: The past two years have been very challenging for the CCDCOE as well. Despite Covid restrictions and other challenges along the way, you have succeeded in organizing your flagship cyber exercises and conferences both online and in-person," noting that this year's annual CyCon conference was a sell-out and brought the highest-ranking generals and experts from all around the world, from a total of 50 countries, to Tallinn.

Uudeberg also praised Jaak Tarien's stint as director, which he commenced in September 2018.

Christian-Marc Liflnder, Head of Cyber and Hybrid Policy at NATO said: "Looking at what this Centre, and this team in particular, has achieved I can confidently say that you have set the standard for excellence on cyber."

Noorma's resume includes active engagement in innovation and novel technology development at NATO, EU and international level, while he has been a board member of the European External Action Service(EEAS) Space Advisory Board and the Institute of Electrical and Electronics Engineers (IEEE) Autonomous Weapon Systems Expert Advisory Committee.

Monday's ceremony also saw the traditional planting of an oak tree (see cover image), jointly by incoming and outgoing directors.

The CCDCOE is a NATO-accredited knowledge hub offering a unique interdisciplinary approach to the most relevant issues in cyber defense, spearheaded by international experts from 35 countries and from the military, government, academia and industrial spheres. Around 80 people work at the headquarters.

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World Cup, spending power, NATO: This week in French politics – The Connexion

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This week, MPs are set to study the bill aimed at improving peoples spending power after its contents were examined by Frances commission mixte paritaire (joint committee) following reviews from senators last week.

The government will bring forward the results of estimations on Frances projected growth and spending for debate by MPs as part of a report that seeks to establish economic stability.

Other debates include topics already discussed, such as the integration of Finland and Sweden into NATO and the projet de loi de finances rectificative (PLFR) budget amendment bill.

The governments proposed measures on spending power received support from members of conservative Les Rpublicains (LR) and far-right Rassemblement National (RN), who said that they were moving in the right direction.

Tuesday, August 2

The report contains government projections on growth, public spending and debt The Connexion understands.

Estimates from the government are expected to take into consideration the spending power and the PLFR bill.

Wednesday, August 3

French military, police and firefighter forces will offer assistance to Qatari forces in handling, planning, monitoring and intervening on every security aspect of football games during the World Cup.

The commission is composed of seven MPs and seven senators from both chambers and is charged with finding a compromise on conflicts between senators and MPs.

Read more: MPs pass Frances purchasing power law: What does it include?

Senators from the Les Rpublicains (LR) group have previously expressed the desire to free up access to work, encouraging unemployed and underemployed people to find employment rather than offering them state support.

For example, LR senators already proposed an amendment to the spending power bill which would have kept increases to the revenu de solidarit active (RSA) benefit payment below the 4% rise that was eventually agreed. This amendment was rejected by the Senate.

The bill was passed to the Senate on Thursday after a heated Assemble nationale debate which continued into Tuesday night.

Thursday, August 4

The PLFR is designed to explore new measures aimed at containing inflation and protecting spending power, and proposes to spend 55billion after an unexpectedly strong 7% growth in 2021.

The bill will be discussed on Thursday and Friday.

Monday, August 1

Wednesday, August 3

The report comes after several fires have caused considerable damage in Brittany and southern France in a summer heatwave that saw record-breaking temperatures.

The heatwave also convinced the government to increase the countrys water bomber plane capacity to cope with future fires, which are predicted to grow more frequent as a result of climate change.

Read more: Arson suspected in two wildfires in southern FranceRead more: French wildfires: Airbus tests way to adapt plane into water bomber

Senate votes to keep ability to impose Covid pass at French bordersExplainer: What is Frances Assemble nationale and how does it work?

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For Big Tech, Neutrality Is Not an Option and Never Really Was – DARKReading

Posted: at 3:24 pm

The idea of mixing work and politics has always been a fraught topic, andunderstandably so. Most companies have customers and employees on bothends of the political spectrum, and remaining neutral is often the only way to make sureall parties feel respected and comfortable. They say never to discuss religion or politicsat a dinner party; well, the same rule could be applied to the marketplace or workplace.

The problem is, "politics" is a word that covers a vast expanse of topics, and at somepoint everyone even company leaders need to draw a line. Neutrality isn't alwaysan option.

Consider, for example, a hypothetical infrastructure bill making its way throughCongress. This is politics we likely wouldn't discuss at work for a number of reasons. Itmight be a sensitive topic; there will likely be extreme positions on both sides of theaisle about whether the bill should be passed, adjusted, or blocked completely. Is itessential for a business to take a public stance on this? Except for a few nichebusinesses, probably not. Companies can (and often should) remain neutral.

But what about when it's an issue of human rights? Of war? Genocide? These topics,on a global stage, are often considered politics, but they likely affect a huge percentageof customers in much more profound ways than other issues we consider politics. Thedecision of whether to remain neutral, therefore, is much more complicated. Somecompanies choose to take a political stance; others insist on "staying in their lane" andfocusing only on their products or services.

But there, of course, is the rub: the products and services. What if a company's productor service directly affects, benefits, or connects to the issue at hand? Is a neutral stancereally possible at that point? Or does neutral mean complicit?

Tech companies, in particular, must reckon with this question. We can't pretendthe products we create aren't used on a global stage, for all kinds of uses somepositive and some downright nefarious. But if our tools are used by, say, governments tocommit war crimes, can we really say we're neutral?

We must do more. Some of the behemoths of the tech industry have obscene amountsof power over culture, communications, laws, and policies worldwide. With that kind ofpower, neutrality is impossible. But what exactly does this mean? It means techcompanies need to take more ownership of how their tools are being used.

That could start with something as simple as withdrawing business. If a company isselling products or services to an entity that is knowingly committing harm and,worse, using those products or services to do so that company has chosen a side.They are not neutral. Tech companies need to recognize this and make the harddecisions to pull out of these kinds of business relationships.

My own company recently did just this. We believe we have a responsibility to standwith the people of Ukraine, against Russia, and we have taken steps accordingly. We nolonger do business with companies in support of Russia, and we offer our services forfree for those actively supporting, or on the ground in, Ukraine. To do otherwise would betantamount to supporting the Russian invasion; there simply is no neutral option.

Why do business leaders seem to think that if profit is involved, morality ceases toexist? That mentality belies the real reasoning behind so-called neutrality: If profit isinvolved, many leaders simply don't care about anything else. It also reveals a certainshort-sightedness because, let's be honest, losing profit in the short term for a reasonlike this will often actually help your business in the long term. Customers care aboutthese things, and they don't take kindly to businesses supporting egregious acts ofviolence.

But the imperative goes further than this. So many tech companies today play a vitalrole in global communication, which has profound effects on how politics, policies, andreal human rights issues play out. And yet these companies social media companies,content platforms, and the like all still seem to want to remain as neutral as possible.We can't have it both ways. Neutrality inevitably will favor one side or another. As thewriter, Nobel laureate, and Holocaust survivor Elie Wiesel summed up so succinctly:"Neutrality helps the oppressor, never the victim."

We are living in the age of all things digital, in the transformation of every aspect ofglobal society at the hands of technical innovation. This is powerful thrilling, even and can truly make this world a better place. That's why so many of us got into tech inthe first place, isnt it? For that hope. That thrill. But it will matter little, or not at all, if thetechnological advances we make just add fuel to a fire of hate, authoritarianism, or war.We must take responsibility for the technology we're creating; companies must do more.We must use the incredible tools at our disposal to help the oppressed and give up thisfruitless quest to be forever "neutral."Neutrality is cowardice.

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What’s behind the shrinking Big Tech: Online ad market is in decline – WRAL TechWire

Posted: at 3:24 pm

By Clare Duffy, CNN Business

Much of contemporary Silicon Valley was built on advertising dollars. That dependence made even the most powerful companies look at least somewhat vulnerable last week after reporting their latest earnings results.

We seem to have entered an economic downturn that will have a broad impact on the digital advertising business, Meta CEO Mark Zuckerberg told analysts at the start of the companysearnings call on Wednesday.Its always hard to predict how deep or how long these cycles will be, but Id say that the situation seems worse than it did a quarter ago.

Meta, Twitter, Snap, Google, Apple and Microsoft all reported that shrinking advertising budgets a result of the recent market downturn and economic uncertainty took some toll on their previous quarter earnings and would likely continue to be a challenge in the coming quarters. Spotify also said it saw softening in its ad business starting in the last two weeks of June.

Revenue drops but Zuckerberg is defiant: Number of people using Facebook daily continues to grow

Even those with dominant market positions werent immune. Googles coreadvertising business grewjust 11.6% year-over-year, compared to the nearly 69% increase it posted during the same period last year. Meta, Facebook and Instagrams parent company, posted its first year-over-year quarterly revenue decline in its history as a public company. (Advertising accounts for the vast majority of Metas revenue.)

Those much less dependent on advertising felt the pinch as well. Microsoftsaid it tooka revenue hit of $100 million during the second quarter from a reduction in advertising spend. Apple CEO Tim Cook told analysts Thursday that digital advertising was clearly impacted by the macroeconomic environment during the June quarter, weighing on its services revenue.

Shares of Meta were down around 7%. Snap shares fell more than 25% after it reported earnings last week.

Googles Wall Street miss: End of pandemic spending boom means revenue slowdown

Todays results are very much reflecting the impact of a challenging economic environment which is hurting almost every mega tech company, Haris Anwar, a senior analyst at Investing.com, said in a statement.

Its a stark reversal for the online advertising industry. After a brief dip at the start of the pandemic, advertisers began funneling money into online ads to reach consumers who were spending more time plugged into screens. This time last year, Meta and Snap both reported that quarterly sales had doubled from the prior year, and Googles grew by 62%.

But the world is a very different place now. Russias monthslong war in Ukraine caused some uncertainty among advertisers, and many tech companiesresponded to the attackby cutting off the ability for Russian-based companies to advertise on their platforms.

More recently, a surge inflation, a market downturn and fears of a recession have prompted companies to pull back on their ad budgets, tech giants said during their earnings reports this week. Many companies, including in the tech industry, have recently slowed hiring and investments amid the economic uncertainty.

Microsoft misses Street expectations, blames Chinas lockdowns, Russias war

The very nature of how some online ad campaigns are run has made the pain immediate. Snap CFO Derek Anderson noted in the companys earnings call last week that advertising spending in particular auction-driven direct response advertising is among the very few line items in a companys cost structure that they can reduce immediately in response to pressure on other parts of their business.

Those macroeconomic challenges are expected to drag into the rest of this year. Meta said Wednesday it expects revenue for the current quarter to be between $26 billion and $28.5 billion, which would mark a second year-over-year quarterly revenue decline. Although Snap declined to provide financial guidance because of the uncertain environment, it said third quarter revenue was so far flat compared to the previous year.

The downturn also comes after Applesapp tracking changes, which went into effect in the second half of last year, had already been taking a toll on some tech giants businesses. Apple introduced a feature that lets users opt out of some tracking by apps, taking away some crucial data that social media platforms use to target ads. The change hurt ad businesses at Meta, Twitter and Snap, as well as smaller players such as Pinterest. Metas ad revenue alone took a $10 billion hit from the privacy update last year, and Snaps Anderson said last week that the changes upended a decade of advertising industry standards.

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And while Google has the benefit of its own third-party data, YouTubes ad business hasnt been entirely spared.

Right now is essentially a perfect storm for digital advertising, D.A. Davidson analyst Tom Forte said. For companies reliant on advertising, theres a high risk to your revenue.

CNNs Rishi Iyengar contributed to this report.

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What's behind the shrinking Big Tech: Online ad market is in decline - WRAL TechWire

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