News round-up, Thursday, January 26, 2023
Quote of the day…
Tesla reports record profit and confirms its long-term growth plan
Despite concerns about rising competition and macroeconomic headwinds, Elon Musk's electric vehicle company reported fourth-quarter profits up 59 percent from the year-ago period.
Le Monde with AP and AFP
Meta to reinstate Donald Trump's Facebook and Instagram accounts
The restoration of his accounts could provide a boost to Trump, who announced in November he will make another run for the White House in 2024. He has 34 million followers on Facebook and 23 million on Instagram, platforms that are key vehicles for political outreach and fundraising.
Reuters
Andres Gluski, President & CEO of the AES Corporation, had a productive first day at the World Economic Forum's Annual Meeting #WEF2023 in Davos, Switzerland.
—that the kind of worldwide transformation urgently needed now , can only be achieved with the cooperation of the public and private sectors, Gluski said.
Over the next few days, about 1,700 CEOs and 400 other prominent personalities will gather in Davos to explore solutions to global concerns such as climate change, energy efficiency, and electrification.
Image: Andrés Gluski, President and CEO and Ricardo Manuel Falú, Senior Vice President and Chief Strategy and Commercial Officer and Madelka McCalla, Chief Corporate Affairs and Impact Officer at The AES Corporation
Seafloat-hybrid-power-plant
Armando Rodriguez, Seaboard CEO for the Dominican Republic, concludes:
“We are very excited about this project because it will be a big benefit to the community in terms of the environment and the employment we will provide to the area.
What is Artificial Intelligency?
Artificial intelligence (AI) is the ability of a computer or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence and discernment. Although there are no AIs that can perform the wide variety of tasks an ordinary human can do, some AIs can match humans in specific tasks.
Joi Ito, Scott Dadich, and President Barack Obama photographed in the Roosevelt Room of the White House on August 24, 2016.
Barack Obama, Neural Nets, Self-Driving Cars & The Future of the World…
www.wired.com/2016/10/president-obama-mit-joi-ito-interview/
IT’S HARD TO think of a single technology that will shape our world more in the next 50 years than artificial intelligence. As machine learning enables our computers to teach themselves, a wealth of breakthroughs emerge, ranging from medical diagnostics to cars that drive themselves. A whole lot of worry emerges as well. Who controls this technology? Will it take over our jobs? Is it dangerous? President Obama was eager to address these concerns. The person he wanted to talk to most about them? Entrepreneur and MIT Media Lab director Joi Ito. So I sat down with them in the White House to sort through the hope, the hype, and the fear around AI. That and maybe just one quick question about Star Trek. —SCOTT DADICH
SCOTT DADICH: Thank you both for being here. How’s your day been so far, Mr. President?
BARACK OBAMA: Busy. Productive. You know, a couple of international crises here and there.
DADICH: I want to center our conversation on artificial intelligence, which has gone from science fiction to a reality that’s changing our lives. When was the moment you knew that the age of real AI was upon us?
November 2016.
OBAMA: My general observation is that it has been seeping into our lives in all sorts of ways, and we just don’t notice; and part of the reason is because the way we think about AI is colored by popular culture. There’s a distinction, which is probably familiar to a lot of your readers, between generalized AI and specialized AI. In science fiction, what you hear about is generalized AI, right? Computers start getting smarter than we are and eventually conclude that we’re not all that useful, and then either they’re drugging us to keep us fat and happy or we’re in the Matrix. My impression, based on talking to my top science advisers, is that we’re still a reasonably long way away from that. It’s worth thinking about because it stretches our imaginations and gets us thinking about the issues of choice and free will that actually do have some significant applications for specialized AI, which is about using algorithms and computers to figure out increasingly complex tasks. We’ve been seeing specialized AI in every aspect of our lives, from medicine and transportation to how electricity is distributed, and it promises to create a vastly more productive and efficient economy. If properly harnessed, it can generate enormous prosperity and opportunity. But it also has some downsides that we’re gonna have to figure out in terms of not eliminating jobs. It could increase inequality. It could suppress wages.
JOI ITO: This may upset some of my students at MIT, but one of my concerns is that it’s been a predominately male gang of kids, mostly white, who are building the core computer science around AI, and they’re more comfortable talking to computers than to human beings. A lot of them feel that if they could just make that science-fiction, generalized AI, we wouldn’t have to worry about all the messy stuff like politics and society. They think machines will just figure it all out for us.
OBAMA: Right.
ITO: But they underestimate the difficulties, and I feel like this is the year that artificial intelligence becomes more than just a computer science problem. Everybody needs to understand that how AI behaves is important. In the Media Lab we use the term extended intelligence1. Because the question is, how do we build societal values into AI?
Extended intelligence is using machine learning to extend the abilities of human intelligence.
OBAMA: When we had lunch a while back, Joi used the example of self-driving cars. The technology is essentially here. We have machines that can make a bunch of quick decisions that could drastically reduce traffic fatalities, drastically improve the efficiency of our transportation grid, and help solve things like carbon emissions that are causing the warming of the planet. But Joi made a very elegant point, which is, what are the values that we’re going to embed in the cars? There are gonna be a bunch of choices that you have to make, the classic problem being: If the car is driving, you can swerve to avoid hitting a pedestrian, but then you might hit a wall and kill yourself. It’s a moral decision, and who’s setting up those rules?
The car trolley problem is a 2016 MIT Media Lab study in which respondents weighed certain lose-lose situations facing a driverless car. E.g., is it better for five passengers to die so that five pedestrians can live, or is it better for the passengers to live while the pedestrians die?
ITO: When we did the car trolley problem2, we found that most people liked the idea that the driver and the passengers could be sacrificed to save many people. They also said they would never buy a self-driving car. [Laughs.]
DADICH: As we start to get into these ethical questions, what is the role of government?
OBAMA: The way I’ve been thinking about the regulatory structure as AI emerges is that, early in a technology, a thousand flowers should bloom. And the government should add a relatively light touch, investing heavily in research and making sure there’s a conversation between basic research and applied research. As technologies emerge and mature, then figuring out how they get incorporated into existing regulatory structures becomes a tougher problem, and the government needs to be involved a little bit more. Not always to force the new technology into the square peg that exists but to make sure the regulations reflect a broad base set of values. Otherwise, we may find that it’s disadvantaging certain people or certain groups.
Temple Grandin is a professor at Colorado State University who is autistic and often speaks on the subject.
ITO: I don’t know if you’ve heard of the neurodiversity movement, but Temple Grandin3 talks about this a lot. She says that Mozart and Einstein and Tesla would all be considered autistic if they were alive today.
OBAMA: They might be on the spectrum.
ITO: Right, on the spectrum. And if we were able to eliminate autism and make everyone neuro-normal, I bet a whole slew of MIT kids would not be the way they are. One of the problems, whether we’re talking about autism or just diversity broadly, is when we allow the market to decide. Even though you probably wouldn’t want Einstein as your kid, saying “OK, I just want a normal kid” is not gonna lead to maximum societal benefit.
OBAMA: That goes to the larger issue that we wrestle with all the time around AI. Part of what makes us human are the kinks. They’re the mutations, the outliers, the flaws that create art or the new invention, right? We have to assume that if a system is perfect, then it’s static. And part of what makes us who we are, and part of what makes us alive, is that we’re dynamic and we’re surprised. One of the challenges that we’ll have to think about is, where and when is it appropriate for us to have things work exactly the way they’re supposed to, without surprises?
Tesla reports record profit and confirms its long-term growth plan
Despite concerns about rising competition and macroeconomic headwinds, Elon Musk's electric vehicle company reported fourth-quarter profits up 59 percent from the year-ago period.
Le Monde with AP and AFP
Published on January 25, 2023
Tesla on Wednesday, January 25, posted record net income in the fourth quarter of last year, and the company predicted that additional software-related profits will keep its margins higher than any other automaker.
The Austin, Texas, maker of electric vehicles and solar panels said it made $3.69 billion from October through December, or an adjusted $1.19 per share. That beat estimates of $1.13 that had been reduced by analysts, according to FactSet. The company’s profit was 59% more than the same period a year ago.
Revenue for the quarter was $24.32 billion, which fell short of the $24.67 billion that analysts expected. On January 13, the company cut prices in the US and China, its two biggest markets, by up to 20% on some models, leading many analysts to believe that demand had fallen due to high prices and rising interest rates.
Tesla said in its investor letter Wednesday that it would produce about 1.8 million vehicles this year, ahead of a predicted 50% annual growth rate. But the outlook section of the letter didn’t give an estimate of deliveries for the year. Previously Tesla has said its deliveries would grow at a 50% annual rate most years.
'Demand is a problem'
Morgan Stanley analyst Adam Jonas wrote in a note to investors early Wednesday that demand is a problem for the company. "In our view, the price cuts are indeed a response to slowing incremental demand relative to incremental supply," he wrote.
Tesla also said it has rolled out its "Full Self-Driving" software to about 400,000 users, and that it recognized $324 million from Full Self-Driving software during the quarter. Despite its name, "Full Self-Driving" cannot drive itself, and Tesla warns drivers that they must be ready to intervene at any time.
The company said it knows there are questions about macroeconomics in the face of rising interest rates. "In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap," the letter said.
Image: Germán & Co
Meta to reinstate Donald Trump's Facebook and Instagram accounts
By Katie Paul and Sheila Dang
Trump's Facebook, Instagram accounts to be restored
Jan 25 (Reuters) - Meta Platforms Inc (META.O) said Wednesday it will reinstate former U.S. President Donald Trump's Facebook and Instagram accounts in the coming weeks, following a two-year suspension after the deadly Capitol Hill riot on January 6, 2021.
The restoration of his accounts could provide a boost to Trump, who announced in November he will make another run for the White House in 2024. He has 34 million followers on Facebook and 23 million on Instagram, platforms that are key vehicles for political outreach and fundraising.
His Twitter account was restored in November by new owner Elon Musk, though Trump has yet to post there.
Free speech advocates say it is appropriate for the public to have access to messaging from political candidates, but critics of Meta have accused the company of lax moderating policies.
Meta said in a blog post Wednesday it has "put new guardrails in place to deter repeat offenses."
"In the event that Mr. Trump posts further violating content, the content will be removed and he will be suspended for between one month and two years, depending on the severity of the violation," wrote Nick Clegg, Meta's president of global affairs, in the blog post.
The decision, while widely expected, drew sharp rebukes from civil rights advocates. "Facebook has policies but they under-enforce them," said Laura Murphy, an attorney who led a two-year long audit of Facebook concluding in 2020. "I worry about Facebook's capacity to understand the real world harm that Trump poses: Facebook has been too slow to act."
The Anti-Defamation League, the NAACP, Free Press and other groups also expressed concern Wednesday over Facebook's ability to prevent any future attacks on the democratic process, with Trump still repeating his false claim that he won the 2020 presidential election.
Climate Change May Usher in a New Era of Trade Wars
Countries are pursuing new solutions to try to mitigate climate change. More trade fights are likely to come hand in hand.
NYT by Ana Swanson
Jan. 25, 2023
WASHINGTON — Efforts to mitigate climate change are prompting countries across the world to embrace dramatically different policies toward industry and trade, bringing governments into conflict.
These new clashes over climate policy are straining international alliances and the global trading system, hinting at a future in which policies aimed at staving off environmental catastrophe could also result in more frequent cross-border trade wars.
In recent months, the United States and Europe have proposed or introduced subsidies, tariffs and other policies aimed at speeding the green energy transition. Proponents of the measures say governments must move aggressively to expand sources of cleaner energy and penalize the biggest emitters of planet-warming gases if they hope to avert a global climate disaster.
But critics say these policies often put foreign countries and companies at a disadvantage, as governments subsidize their own industries or charge new tariffs on foreign products. The policies depart from a decades-long status quo in trade, in which the United States and Europe often joined forces through the World Trade Organization to try to knock down trade barriers and encourage countries to treat one another’s products more equally to boost global commerce.
Now, new policies are pitting close allies against one another and widening fractures in an already fragile system of global trade governance, as countries try to contend with the existential challenge of climate change.
“The climate crisis requires economic transformation at a scale and speed humanity has never attempted in our 5,000 years of written history,” said Todd N. Tucker, the director of industrial policy and trade at the Roosevelt Institute, who is an advocate for some of the measures. “Unsurprisingly, a task of this magnitude will require a new policy tool kit.”
The current system of global trade funnels tens of millions of shipping containers stuffed with couches, clothing and car parts from foreign factories to the United States each year, often at astonishingly low prices. But the prices that consumers pay for these goods do not take into account the environmental harm generated by the far-off factories that make them, or by the container ships and cargo planes that carry them across the ocean.
A factory in Chengde, China. U.S. officials believe they must lessen a dangerous dependence on goods from China.Credit...Fred Dufour/Agence France-Presse — Getty Images
American and European officials argue that more needs to be done to discourage trade in products made with more pollution or carbon emissions. And U.S. officials believe they must lessen a dangerous dependence on China in particular for the materials needed to power the green energy transition, like solar panels and electric vehicle batteries.
The Biden administration is putting in place generous subsidies to encourage the production of clean energy technology in the United States, such as tax credits for consumers who buy American-made clean cars and companies building new plants for solar and wind power equipment. Both the United States and Europe are introducing taxes and tariffs aimed at encouraging less environmentally harmful ways of producing goods.
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Biden administration officials have expressed hopes that the climate transition could be a new opportunity for cooperation with allies. But so far, their initiatives seem to have mainly stirred controversy when the United States is already under attack for its response to recent trade rulings.
The administration has publicly flouted several decisions of World Trade Organization panels that ruled against the United States in trade disputes involving national security issues. In two separate announcements in December, the Office of the United States Trade Representative said it would not change its policies to abide by W.T.O. decisions.
But the biggest source of contention has been new tax credits for clean energy equipment and vehicles made in North America that were part of a sweeping climate and health policy bill that President Biden signed into law last year. European officials have called the measure a “job killer” and expressed fears they will lose out to the United States on new investments in batteries, green hydrogen, steel and other industries. In response, European Union officials began outlining their own plan this month to subsidize green energy industries — a move that critics fear will plunge the world into a costly and inefficient “subsidy war.”
The United States and European Union have been searching for changes that could be made to mollify both sides before the U.S. tax-credit rules are settled in March. But the Biden administration appears to have only limited ability to change some of the law’s provisions. Members of Congress say they intentionally worded the law to benefit American manufacturing.
Biden administration is putting in place subsidies to encourage the production of clean energy technology in the United States, such as tax credits for consumers who buy American-made clean cars.Credit...Brittany Greeson for The New York Times
European officials have suggested that they could bring a trade case at the World Trade Organization that might be a prelude to imposing tariffs on American products in retaliation.
Valdis Dombrovskis, the European commissioner for trade, said that the European Union was committed to finding solutions but that negotiations needed to make progress or the European Union would face “even stronger calls” to respond.
“We need to follow the same rules of the game,” he said.
Anne Krueger, a former official at the International Monetary Fund and World Bank, said the potential pain of American subsidies on Japan, South Korea and allies in Europe was “enormous.”
“When you discriminate in favor of American companies and against the rest of the world, you’re hurting yourself and hurting others at the same time,” said Ms. Krueger, now a senior fellow at the School of Advanced International Studies at Johns Hopkins University.
But in a letter last week, a collection of prominent labor unions and environmental groups urged Mr. Biden to move forward with the plans without delays, saying outdated trade rules should not be used to undermine support for a new clean energy economy.
“It’s time to end this circular firing squad where countries threaten and, if successful, weaken or repeal one another’s climate measures through trade and investment agreements,” said Melinda St. Louis, the director of the Global Trade Watch for Public Citizen, one of the groups behind the letter.
Valdis Dombrovskis, the European commissioner for trade, has pressed the United States to negotiate more on its climate-related subsidies for American manufacturing.Credit...Stephanie Lecocq/EPA, via Shutterstock
Other recent climate policies have also spurred controversy. In mid-December, the European Union took a major step toward a new climate-focused trade policy as it reached a preliminary agreement to impose a new carbon tariff on certain imports. The so-called carbon border adjustment mechanism would apply to products from all countries that failed to take strict actions to cut their greenhouse gas emissions.
The move is aimed at ensuring that European companies that must follow strict environmental regulations are not put at a disadvantage to competitors in countries where laxer environmental rules allow companies to produce and sell goods more cheaply. While European officials argue that their policy complies with global trade rules in a way that U.S. clean energy subsidies do not, it has still rankled countries like China and Turkey.
The Biden administration has also been trying to create an international group that would impose tariffs on steel and aluminum from countries with laxer environmental policies. In December, it sent the European Union a brief initial proposal for such a trade arrangement.
The idea still has a long way to go to be realized. But even as it would break new ground in addressing climate change, the approach may also end up aggravating allies like Canada, Mexico, Brazil and South Korea, which together provided more than half of America’s foreign steel last year.
Under the initial proposal, these countries would theoretically have to produce steel as cleanly as the United States and Europe, or face tariffs on their products.
A steel plant in Belgium. Under the initial proposal, countries would theoretically have to produce steel as cleanly as the United States and Europe, or face tariffs.Credit...Kevin Faingnaert for The New York Times
Proponents of new climate-focused trade measures say discriminating against foreign products, and goods made with greater carbon emissions, is exactly what governments need to build up clean energy industries and address climate change.
“You really do need to rethink some of the fundamentals of the system,” said Ilana Solomon, an independent trade consultant who previously worked with the Sierra Club.
Ms. Solomon and others have proposed a “climate peace clause,” under which governments would commit to refrain from using the World Trade Organization and other trade agreements to challenge one another’s climate policies for 10 years.
“The complete legitimacy of the global trading system has never been more in question,” she said.
In the United States, support appears to be growing among both Republicans and Democrats for more nationalist policies that would encourage domestic production and discourage imports of dirtier goods — but that would also most likely violate World Trade Organization rules.
Most Republicans do not support the idea of a national price on carbon. But they have shown more willingness to raise tariffs on foreign products that are made in environmentally damaging ways, which they see as a way to protect American jobs from foreign competition.
Robert E. Lighthizer, a chief trade negotiator for the Trump administration, said there was “great overlap” between Republicans and Democrats on the idea of using trade tools to discourage imports of polluting products from abroad.
“I’m coming at it to get more American employed and with higher wages,” he said. “You shouldn’t be able to get an economic advantage over some guy working in Detroit, trying to support his family, from pollution, by manufacturing overseas.”
UK energy regulator proposes late payment fine for Delta Gas and Power
OSLO, Jan 26 (Reuters) - Britain's energy regulator Ofgem said on Thursday it planned to fine Delta Gas and Power 100,000 pounds ($123,870) for late payments into a scheme to support renewable energy development, arguing the company acted deliberately.
The company missed an Oct. 31 deadline to pay a Renewables Obligation (RO) bill totalling 530,809.20 pounds despite multiple reminders, a final order, and accruing late payment interest, Ofgem said.
Delta now has 21 days to respond to Ofgem's notice of intent, after which an official decision will made on whether to issue the penalty, the regulator said.Register for free to Reuters and know the full story
"Compliance and enforcement engagement is a resource and time intensive activity, and we take a very dim view of any repeat offenders," Ofgem said.
It is the second time energy supplier, which serves 1,690 business customers in Britain, has been subject to enforcement, after late payment for the 2020/21 period as well, the regulator said.