U.S. companies facing worker shortage race to automate

U.S. companies facing worker shortage race to automate
By David Randall

NEW YORK (Reuters) – U.S. companies are responding to the lowest unemployment rate in almost 50 years by increasing their focus on automation in order to maintain healthy margins as labor costs tick higher, a Reuters analysis of corporate earnings transcripts shows.

The attempt to save money through technology does not come down to just installing more robots in factories. Instead, companies appear to be confronting the lack of low-cost workers by investing in software and machines that can perform tasks ranging from human resources management to filling prescriptions.

Citigroup Inc, for instance, said that it is expanding its cloud infrastructure to replace routine tasks that used to require human labor. Health insurance company UnitedHealth Group told investors that its automation efforts should save the company over $1 billion next year. And Corona beer brewer Constellation Brands Inc said that its spending on automation should increase the efficiency in which it packs bottles in a variety pack, shaving costs.

Those investments are helping keep wage growth in line despite historically-low unemployment. Average hourly earnings were unchanged in October despite the unemployment rate falling to 3.5% from 3.7%, while the annual increase in wages fell slightly to 2.9%.

“I’m not at all worried about margin pressure from wages” because of increased productivity due to corporate spending on automation, said Jonathan Golub, chief U.S. equities strategist at Credit Suisse Securities.

Overall, companies have discussed automation on quarterly earnings calls more than 1,110 times since the beginning of the year, a 15% increase from this time last year and nearly double the mentions by this time in October, 2016, according to Refinitiv data. Corporate orders of robotics alone rose 7.2% over the first half of this year compared with 2018, totaling $869 million in spending, according to the Association for Advancing Automation.

Fund managers and analysts say that corporate spending on automation is contributing to positive earnings surprises. Nearly 83% of companies in the S&P 500 that have release third quarter earnings so far have reported earnings above expectations, compared with an average 65% beat rate since 1994, according to I/B/E/S data from Refinitiv.

“You’re seeing companies benefit in ways that aren’t easy to see when you look at the balance sheet, and all those investments start to add up and help protect margins,” said Matt Watson, a portfolio manager at James Investment Research.

Watson said that he is now buying companies that are benefiting from the use of automation because they trade at much more attractive valuations than the companies that provide it, which he is steering clear of.

FedEx Corp, for example, is investing in systems to both automate its shipping facilities and is testing robots that can handle some deliveries, he said. He is also buying shares of broker-dealer LPL Financial Holdings Inc, which is automating more of its client-relations platform to increase efficiency, he said.

“You don’t need to get into the nitty gritty when it’s back-of-the-napkin obvious that these companies are saving money” through increased productivity, Watson said.

The fastest-growing sectors of automation are in logistics and healthcare, said Jeremie Capron, head of research at ROBO Global, the company behind the $1.2-billion Robo Global Robotics & Automation ETF <ROBO.P>. The firm’s ETF is up nearly 20% for the year to date, in line with the performance of the benchmark S&P 500 index.

Capron sees the greatest opportunity in companies like Zebra Technologies Corp <ZBRA.O>, which makes radio-frequency identification device readers and real-time location systems that are used in hospitals and e-commerce fulfillment centers, he said. Shares of the company are up nearly 30% for the year to date.

Declining costs and a new generation of smaller systems should continue to push revenue growth in the sector, he said.

“We’ve hit the level where you don’t need great engineering skills to deploy automation because the software has made it so much easier to use,” he said. “You’re seeing not only large multi-national groups automate, but those technologies are increasingly available to smaller and mid-sized businesses.”

(Reporting by David Randall; Editing by Alden Bentley and Nick Zieminski)

Explainer: NASA aims to build on moon as a way station for Mars

FILE PHOTO: Tourists take pictures of a NASA sign at the Kennedy Space Center visitors complex in Cape Canaveral, Florida April 14, 2010. REUTERS/Carlos Barria/File Photo

By Joey Roulette

CAPE CANAVERAL, Fla. (Reuters) – Unlike the Apollo program that put astronauts on the moon 50 years ago, NASA is gearing up for a long term presence on Earth’s satellite that the agency says will eventually enable humans to reach Mars.

“Now, NASA is working to build a sustainable, open architecture that returns humanity to our nearest neighbor,” Jim Bridenstine, the administrator of the U.S. space agency, said in a statement to a Senate committee on Wednesday.

“We are building for the long term, going to the Moon to stay, and moving beyond to Mars.”

The next manned mission to the moon will require leaps in robotic technologies and a plan for NASA to work with private companies such as Elon Musk’s SpaceX or Jeff Bezos’ Blue Origin to help cut the cost of space travel.

Using NASA’s Space Launch System, a heavy-lift rocket being built for a debut flight in late 2020, the agency is aiming to return humans to the moon by 2024 in an accelerated timeline set in March by the Trump administration.

No humans have launched from U.S. soil since the space shuttle program ended in 2011.

NASA officials say exploration of the moon and Mars are intertwined, with the moon becoming a testbed for Mars and providing an opportunity to demonstrate new technologies that could help build self-sustaining extraterrestrial outposts.

We are working right now, in fact, to put together a comprehensive plan on how we would conduct a Mars mission using the technologies that we will be proving at the moon,” Bridenstine told reporters on Monday, adding that a mission to the Red Planet could come as soon as 2033.

Technologies that can mine the moon’s subsurface water ice to sustain astronaut crews, but also to be broken down into hydrogen and oxygen for use as a rocket propellant, could be crucial for missions to Mars. The planet is reachable in months-long missions when at its closest orbital approach of 35.8 million miles from Earth’s utilization versus curiosity,” said roboticist and research professor at Carnegie Mellon University William Whittaker, comparing the Artemis program, as the new lunar mission has been dubbed, with Apollo. Artemis is the twin sister of Apollo and goddess of the moon in Greek mythology.

POLITICAL PRIORITIES

The last manned mission to the moon was almost a half-century ago in 1972, when Cold War-era tensions underscored President John F. Kennedy’s push to prove technologies that landed the first humans on the lunar surface.

“That’s 50 years of non-progress; I think we all ought to be a little ashamed that we can’t do better than that,” said Buzz Aldrin, who joined Neil Armstrong in walking on the moon on July 20, 1969.

Bridenstine said shifting political priorities were the key reason NASA had not returned to the surface of Earth’s natural satellite since then. “If it wasn’t for the political risk, we would be on the moon right now,” said the NASA chief, who is working to woo Republican and Democratic lawmakers to approve additional taxpayer funds for the program.

Development of NASA’s flagship rocket, Space Launch System, whose main contractor is Boeing Co, is taking years longer than expected with cost overruns of nearly $2 billion, a federal audit released in June found. Those delays could push the rocket&rsquo;s first launch to June 2021, potentially endangering NASA’s plan to reach the moon by 2024.

“Cost and schedule matter,” Bridenstine said. &ldquo;So we are working rapidly to put together a team that can assess the cost and schedule of these programs and create a realistic baseline that we can work toward.&rdquo;

Bridenstine, under mounting pressure to meet the White House’s 2024 deadline, demoted two longtime heads of NASA’s human exploration division last week in a slew of administrative shakeups amid dwindling congressional support for the lunar initiative.

Charlie Duke, who piloted the lunar-landing module during the last lunar mission, Apollo 16, said leadership in the Apollo missions was “bold without being careless.”

“Don’t be so risk-averse that you don’t fly,” he said.

He added that the decision to put astronauts on top of a massive Saturn V rocket, the launch vehicle used by NASA for the Apollo program, “was a very gutsy call. They went through it carefully and they determined it was OK.”

(Reporting by Joey Roulette; Editing by Bill Tarrant and Tom Brown)

AI must be accountable, EU says as it sets ethical guidelines

FILE PHOTO: An activist from the Campaign to Stop Killer Robots, a coalition of non-governmental organisations opposing lethal autonomous weapons or so-called 'killer robots', protests at Brandenburg Gate in Berlin, Germany, March, 21, 2019. REUTERS/Annegret Hilse/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) – Companies working with artificial intelligence need to install accountability mechanisms to prevent its being misused, the European Commission said on Monday, under new ethical guidelines for a technology open to abuse.

AI projects should be transparent, have human oversight and secure and reliable algorithms, and they must be subject to privacy and data protection rules, the commission said, among other recommendations.

The European Union initiative taps in to a global debate about when or whether companies should put ethical concerns before business interests, and how tough a line regulators can afford to take on new projects without risking killing off innovation.

“The ethical dimension of AI is not a luxury feature or an add-on. It is only with trust that our society can fully benefit from technologies,” the Commission digital chief, Andrus Ansip, said in a statement.

AI can help detect fraud and cybersecurity threats, improve healthcare and financial risk management and cope with climate change. But it can also be used to support unscrupulous business practices and authoritarian governments.

The EU executive last year enlisted the help of 52 experts from academia, industry bodies and companies including Google, SAP, Santander and Bayer to help it draft the principles.

Companies and organizations can sign up to a pilot phase in June, after which the experts will review the results and the Commission decide on the next steps.

IBM Europe Chairman Martin Jetter, who was part of the group of experts, said guidelines “set a global standard for efforts to advance AI that is ethical and responsible.”

The guidelines should not hold Europe back, said Achim Berg, president of BITKOM, Germany’s Federal Association of Information Technology, Telecommunications, and New Media.

“We must ensure in Germany and Europe that we do not only discuss AI but also make AI,” he said.

(Reporting by Foo Yun Chee, additional reporting by Georgina Prodhan in London; editing by John Stonestreet, Larry King)

As companies embrace AI, it’s a tech job-seeker’s market

Students wait in line to enter the University of California, Berkeley's electrical engineering and computer sciences career fair in Berkeley, California, in September. REUTERS/Ann Saphir

By Ann Saphir

SAN FRANCISCO (Reuters) – Dozens of employers looking to hire the next generation of tech employees descended on the University of California, Berkeley in September to meet students at an electrical engineering and computer science career fair.

Boris Yue, 20, was one of thousands of student attendees, threading his way among fellow job-seekers to meet recruiters.

But Yue wasn’t worried about so much potential competition.  While the job outlook for those with computer skills is generally good, Yue is in an even more rarified category: he is studying artificial intelligence, working on technology that teaches machines to learn and think in ways that mimic human cognition.

His choice of specialty makes it unlikely he will have difficulty finding work. “There is no shortage of machine learning opportunities,” he said.

He’s right.

Artificial intelligence is now being used in an ever-expanding array of products: cars that drive themselves; robots that identify and eradicate weeds; computers able to distinguish dangerous skin cancers from benign moles; and smart locks, thermostats, speakers and digital assistants that are bringing the technology into homes. At Georgia Tech, students interact with digital teaching assistants made possible by AI for an online course in machine learning.

The expanding applications for AI have also created a shortage of qualified workers in the field. Although schools across the country are adding classes, increasing enrollment and developing new programs to accommodate student demand,  there are too few potential employees with training or experience in AI.

That has big consequences.

Students attend the University of California, Berkeley's electrical engineering and computer sciences career fair in Berkeley, California, in September. REUTERS/Ann Saphir

Students attend the University of California, Berkeley’s electrical engineering and computer sciences career fair in Berkeley, California, in September. REUTERS/Ann Saphir  Too few AI-trained job-seekers has slowed hiring and impeded growth at some companies, recruiters and would-be employers told Reuters. It may also be delaying broader adoption of a technology that some economists say could spur U.S. economic growth by boosting productivity, currently growing at only about half its pre-crisis pace.

Andrew Shinn, a chip design manager at Marvell Technology Group who was recruiting interns and new grads at UC Berkeley’s career fair, said his company has had trouble hiring for AI jobs.

“We have had difficulty filling jobs for a number of years,” he said. “It does slow things down.”

“COMING OF AGE”

Many economists believe AI has the potential to change the economy’s basic trajectory in the same way that, say, electricity or the steam engine did.

“I do think artificial intelligence is … coming of age,” said St. Louis Federal Reserve Bank President James Bullard in an interview. “This will diffuse through the whole economy and will change all of our lives.”

But the speed of the transformation will depend in part on the availability of technical talent.

A shortage of trained workers “will definitely slow the rate of diffusion of the new technology and any productivity gains that accompany it,” said Chad Syverson, a professor at the University of Chicago Booth School of Business.

U.S. government data does not track job openings or hires in artificial intelligence specifically, but online job postings tracked by jobsites including Indeed, Ziprecruiter and Glassdoor show job openings for AI-related positions are surging. AI job postings as a percentage of overall job postings at Indeed nearly doubled in the past two years, according to data provided by the company. Searches on Indeed for AI jobs, meanwhile increased just 15 percent. (For a graphic, please see https://tmsnrt.rs/2CEi4eG

Universities are trying to keep up. Applicants to UC Berkeley’s doctoral program in electrical engineering and computer science numbered 300 a decade ago, but by last year had surged to 2,700, with more than half of applicants interested in AI, according to professor Pieter Abbeel. In response, the school tripled its entering class to 30 in the fall of 2017.

At the University of Illinois, professor Mark Hasegawa-Johnson last year tripled the enrollment cap on the school’s intro AI course to 300. The extra 200 seats were filled in 24 hours, he said.

Carnegie Mellon University this fall began offering the nation’s first undergraduate degree in artificial intelligence. “We feel strongly that the demand is there,” said Reid Simmons, who directs CMU’s new program. “And we are trying to supply the students to fill that demand.”

Still, a fix for the supply-demand mismatch is probably five years out, says Anthony Chamberlain, chief economist at Glassdoor. The company has algorithms that trawl job postings on company websites, and their data show AI-related job postings having doubled in the last 11 months. “The supply of people moving into this field is way below demand,” he said.

 

A JOB-SEEKER’S MARKET

The demand has driven up wages. Glassdoor estimates that average salaries for AI-related jobs advertised on company career sites rose 11 percent between October 2017 and September 2018 to $123,069 annually.

Michael Solomon, whose New York-based 10X Management rents out technologists to companies for specific projects, says his top AI engineers now command as much as $1000 an hour, more than triple the pay just five years ago, making them one of the company’s two highest paid categories, along with blockchain experts.

Liz Holm, a materials science and engineering professor at Carnegie Melon, saw the increased demand first-hand in May, when one of her graduating PhD students, who used machine learning methods for her research, was overwhelmed with job offers, none of which were in materials science and all of them AI-related. Eventually, the student took a job with Proctor & Gamble, where she uses AI to figure out where to put items on store shelves around the globe. “Companies are really hungry for these folks right now,” Holm said.

Mark Maybury, an artificial intelligence expert who was hired last year as Stanley Black and Decker’s first chief technology officer, agreed. The firm is embedding AI into the design and production of tools, he said, though he said details are not yet public.

“Have we been able to find the talent we need? Yes,” he said. “Is it expensive? Yes.”

The crunch is great news for job-seeking students with AI skills. In addition to bumping their pay and giving them more choice, they often get job offers well before they graduate.

Derek Brown, who studied artificial intelligence and cognitive science as an undergraduate at Carnegie Mellon, got a full-time post-graduation job offer from Salesforce at the start of his senior year last fall. He turned it down in favor of Facebook, where he started this past July.

(Additional reporting by Jane Lee; Editing by Greg Mitchell and Sue Horton)

Massive U.S. defense policy bill passes without strict China measures

U.S. Army soldiers carry a large U.S. flag as they march in the Veterans Day parade on 5th Avenue in New York November 11, 2014. REUTERS/Mike Segar

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. Senate passed a $716 billion defense policy bill on Wednesday, backing President Donald Trump’s call for a bigger, stronger military and sidestepping a potential battle with the White House over technology from major Chinese firms.

The Senate voted 87-10 for the John S. McCain National Defense Authorization Act or NDAA. The annual act authorizes U.S. military spending but is used as a vehicle for a broad range of policy matters as it has passed annually for more than 50 years.

Since it cleared the House of Representatives last week, the bill now goes to Trump, who is expected to sign it into law.

While the measure puts controls on U.S. government contracts with China’s ZTE Corp and Huawei Technologies Co Ltd because of national security concerns, the restrictions are weaker than in earlier versions of the bill.

This angered some lawmakers, who wanted to reinstate tough sanctions on ZTE to punish the company for illegally shipping products to Iran and North Korea.

In another action largely targeting China, the NDAA strengthens the Committee on Foreign Investment in the United States (CFIUS), which reviews proposed foreign investments to weigh whether they threaten national security.

Lawmakers from both parties have been at odds with the Republican Trump over his decision to lift his earlier ban on U.S. companies selling to ZTE, allowing China’s second-largest telecommunications equipment maker to resume business.

But with his fellow Republicans controlling both the Senate and House, provisions of the NDAA intended to strike back at Beijing and opposed by the White House were softened before Congress’ final votes on the bill.

Separately, the NDAA authorizes spending $7.6 billion for 77 F-35 Joint Strike Fighter jets, made by Lockheed Martin Corp.

And it would prohibit delivery of the advanced aircraft to fellow NATO member Turkey at least until after the production of report, another measure that was stricter in earlier versions of the bill.

U.S. officials have warned Ankara that a Russian missile defense system Turkey plans to buy cannot be integrated into the NATO air and missile defense system. They are also unhappy about Turkey’s detention of an American pastor.

The fiscal 2019 NDAA was named to honor McCain, the Armed Services Committee chairman, war hero, long-time senator and former Republican presidential nominee, who has been undergoing treatment for brain cancer.

(Reporting by Patricia Zengerle, additional reporting by Roberta Rampton; Editing by James Dalgleish and David Gregorio)

NATO mulls ‘offensive defense’ with cyber warfare rules

NATO mulls 'offensive defense' with cyber warfare rules

By Robin Emmott

TARTU, Estonia (Reuters) – A group of NATO allies are considering a more muscular response to state-sponsored computer hackers that could involve using cyber attacks to bring down enemy networks, officials said.

The United States, Britain, Germany, Norway, Spain, Denmark and the Netherlands are drawing up cyber warfare principles to guide their militaries on what justifies deploying cyber attack weapons more broadly, aiming for agreement by early 2019.

The doctrine could shift NATO’s approach from being defensive to confronting hackers that officials say Russia, China and North Korea use to try to undermine Western governments and steal technology.

“There’s a change in the (NATO) mindset to accept that computers, just like aircraft and ships, have an offensive capability,” said U.S. Navy Commander Michael Widmann at the NATO Cooperative Cyber Defence Centre of Excellence, a research center affiliated to NATO that is coordinating doctrine writing.

Washington already has cyber weapons, such as computer code to take down websites or shut down IT systems, and in 2011 declared that it would respond to hostile cyber acts.

The United States, and possibly Israel, are widely believed to have been behind “Stuxnet”, a computer virus that destroyed nuclear centrifuges in Iran in 2010. Neither has confirmed it.

Some NATO allies believe shutting down an enemy power plant through a cyber attack could be more effective than air strikes.

“I need to do a certain mission and I have an air asset, I also have a cyber asset. What fits best for the me to get the effect I want?” Widmann said.

The 29-nation NATO alliance recognized cyber as a domain of warfare, along with land, air and sea, in 2014, but has not outlined in detail what that entails.

In Europe, the issue of deploying malware is sensitive because democratic governments do not want to be seen to be using the same tactics as an authoritarian regime. Commanders and experts have focused on defending their networks and blocking attempts at malicious manipulation of data.

Senior Baltic and British security officials say they have intelligence showing persistent Russian cyber hacks to try to bring down European energy and telecommunications networks, coupled with Internet disinformation campaigns.

They believe Russia is trying to break Western unity over economic sanctions imposed over Moscow’s 2014 annexation of Crimea and its support for separatists in eastern Ukraine.

“They (Russia) are seeking to attack the cohesion of NATO,” said a senior British security official, who said the balance between war and peace was becoming blurred in the virtual world. “It looks quite strategic.”

Moscow has repeatedly denied any such cyber attacks.

ESTONIAN ‘CYBER COMMAND’

The United States, Britain, the Netherlands, Germany and France have “cyber commands” — special headquarters to combat cyber espionage and hacks of critical infrastructure.

Estonia, which was hit by one of the world’s first large-scale cyber attacks a decade ago, aims to open a cyber command next year and make it fully operational by 2020, with offensive cyber weapons.

“You cannot only defend in cyberspace,” said Erki Kodar, Estonia’s undersecretary for legal and administrative affairs who oversees cyber policy at the defense ministry.

Across the globe this year computer hackers have disrupted multinational firms, ports and public services on an unprecedented scale, raising awareness of the issue.

NATO held its biggest ever cyber exercise this week at a military base in southern Estonia, testing 25 NATO allies against a fictional state-sponsored hacker group seeking to infiltrate NATO air defense and communication networks.

“The fictional scenarios are based on real threats,” said Estonian army Lieutenant-Colonel Anders Kuusk, who ran the exercise.

NATO’s commanders will not develop cyber weapons but allied defense ministers agreed last month that NATO commanders can request nations to allow them use of their weapons if requested.

(Reporting by Robin Emmott; Editing by Peter Graff)

UK shipping firm Clarkson reports cyber attack

UK shipping firm Clarkson reports cyber attack

(Reuters) – British shipping services provider Clarkson Plc <CKN.L> on Wednesday said it was the victim of a cyber security hack and warned that the person or persons behind the attack may release some data shortly.

The company’s disclosure, while a relatively rare event in Britain, follows a series of high-profile hacks in corporate America.

Clarkson is one of the world’s main shipbrokers, sourcing vessels for the world’s largest producers and traders of natural resources. It also has a research operation which collects and analyses data on merchant shipping and offshore markets.

The London-headquartered company said it had been working with the police on the incident but did not provide any details about the scale or type of data stolen.

“As soon as it was discovered, Clarksons took immediate steps to respond to and manage the incident,” the company said.

“Our initial investigations have shown the unauthorized access was gained via a single and isolated user account which has now been disabled.”

The company said it is in the process of contacting potentially affected clients and individuals directly, and that it has been working with data security specialists to probe further.

(Reporting by Rahul B in Bengaluru; Editing by Maju Samuel and Patrick Graham)

Millions of insecure gadgets exposed in European cities: report

Millions of insecure gadgets exposed in European cities: report

LONDON (Reuters) – A year after a wave of denial-of-service attacks knocked out major websites around the world, millions of unsecured printers, network gear and webcams remain undefended against attack across major European cities, a report published on Tuesday said.

Computer security company Trend Micro <4704.T> said that Berlin has more than 2.8 million insecure devices, followed closely by London with more than 2.5 million exposed gadgets. Among the top 10 capitals, Rome was lowest with nearly 300,000 visible unsecured devices, the researchers said.

The study was based on calculating the number of exposed devices in major European cities using Shodan, a search engine that helps to identify internet-linked equipment.

Trend Micro said that electronics users must take responsibility for managing their own internet-connected devices because of the failure by many gadget manufacturers to build in up-front security by default in their products.

The warning comes one year after a wave of attacks using so-called botnets of infected devices caused outages on popular websites and knocked 900,000 Deutsche Telekom <DTEGn.DE> users off the internet. (http://reut.rs/2BjdRII)

Computer experts say the failure to patch millions of insecure devices after last year’s Mirai denial-of-service attacks means it is only a question of time before further broad-based outages occur.

Research company Gartner recently forecast that there would be 8.4 billion connected products or devices in 2017, up 31 percent from 2016, and expects the number to triple by 2020. (https://goo.gl/thR54Q)

(Reporting by Jamillah Knowles; Editing by Eric Auchard and David Goodman)

U.S. government warns businesses about cyber bug in Intel chips

U.S. government warns businesses about cyber bug in Intel chips

By Stephen Nellis and Jim Finkle

(Reuters) – The U.S. government on Tuesday urged businesses to act on an Intel Corp alert about security flaws in widely used computer chips as industry researchers scrambled to understand the impact of the newly disclosed vulnerability.

The Department of Homeland Security gave the guidance a day after Intel said it had identified security vulnerabilities in remote-management software known as “Management Engine” that shipped with eight types of processors used in business computers sold by Dell Technologies Inc, Lenovo Group Ltd, HP Inc, Hewlett Packard Enterprise Co and other manufacturers.

Security experts said that it was not clear how difficult it would be to exploit the vulnerabilities to launch attacks, though they found the disclosure troubling because the affected chips were widely used.

“These vulnerabilities affect essentially every business computer and server with an Intel processor released in the last two years,” said Jay Little, a security engineer with cyber consulting firm Trail of Bits.

For a remote attack to succeed, a vulnerable machine would need to be configured to allow remote access, and a hacker would need to know the administrator’s user name and password, Little said. Attackers could break in without those credentials if they have physical access to the computer, he said.

Intel said that it knew of no cases where hackers had exploited the vulnerability in a cyber attack.

The Department of Homeland Security advised computer users to review the warning from Intel, which includes a software tool that checks whether a computer has a vulnerable chip. It also urged them to contact computer makers to obtain software updates and advice on strategies for mitigating the threat. (http://bit.ly/2zqhccw)

Intel spokeswoman Agnes Kwan said the company had provided software patches to fix the issue to all major computer manufacturers, though it was up to them to distribute patches to computers users.

Dell’s support website offered patches for servers, but not laptop or desktop computers, as of midday Tuesday. Lenovo offered fixes for some servers, laptops and tablets and said more updates would be available Friday. HP posted patches to its website on Tuesday evening.

Security experts noted that it could take time to fix vulnerable systems because installing patches on computer chips is a difficult process.

“Patching software is hard. Patching hardware is even harder,” said Ben Johnson, co-founder of cyber startup Obsidian Security.

(Reporting by Stephen Nellis; Editing by Cynthia Osterman and Grant McCool)

South Korea fears further missile advances by North this year in threat to U.S.

A flag is pictured outside the Permanent Mission of North Korea in Geneva, Switzerland, November 17, 2017.

By Hyonhee Shin

SEOUL (Reuters) – North Korea may conduct additional missile tests this year to polish up its long-range missile technology and ramp up the threat against the United States, South Korea’s spy agency said on Monday, adding that it was monitoring developments closely.

North Korea is pursuing nuclear weapons and missile programs in defiance of U.N. Security Council sanctions and has made no secret of its plans to develop a missile capable of hitting the U.S. mainland. It has fired two missiles over Japan.

The reclusive state appears to have carried out a recent missile engine test while brisk movements of vehicles were spotted near known missile facilities, Yi Wan-young, a member of South Korea’s parliamentary intelligence committee which was briefed by Seoul’s National Intelligence Service, said.

No sign of an imminent nuclear test had been detected, Yi noted. The third tunnel at the Punggye-ri complex remained ready for another detonation “at any time”, while construction had recently resumed at a fourth tunnel, making it out of use for the time being.

“The agency is closely following the developments because there is a possibility that North Korea could fire an array of ballistic missiles this year under the name of a satellite launch and peaceful development of space, but in fact to ratchet up its threats against the United States,” the lawmakers told reporters after a closed-door briefing by the spy agency.

North Korea defends its weapons programs as a necessary defense against U.S. plans to invade. The United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, denies any such intention.

Pyongyang is also carrying out a sweeping ideological scrutiny of the political unit of the military for the first time in 20 years, according to Kim Byung-kee, another lawmaker in the committee.

The probe was led by the ruling Workers’ Party’s Organisation and Guidance Department and orchestrated by Choe Ryong Hae, who once headed the General Political Bureau of the Korean People’s Army himself until he was replaced by Hwang Pyong So in May 2014.

As a result, Hwang and Kim Won Hong, who Seoul’s unification ministry said was removed from office in mid-January as minister of the Stasi-like secret police called “bowibu”, had been punished, the lawmaker said. He did not elaborate.

Choe, who was subjected to political “reeducation” himself in the past, appears to be gaining more influence since he was promoted in October to the party’s powerful Central Military Commission.

The National Intelligence Service indicated that Choe now heads the Organisation and Guidance Department, a secretive body that oversees appointments within North Korea’s leadership.

“Under Choe’s command, the Organisation and Guidance Department is undertaking an inspection of the military politburo for the first time in 20 years, taking issue with their impure attitude toward the party leadership,” the lawmaker, Kim, said.

Separately on Monday, South Korea approved a request by a South Korean to attend an event in the North marking the anniversary of the death of his mother who formerly led the Chondoist Chongu Party, a minor North Korean political party.

The son, identified only by his surname Choi, will be the first South Korean to visit the North since liberal President Moon Jae-in took office in May.

He is scheduled to arrive in Pyongyang via China on Wednesday and return on Saturday, according to Seoul’s unification ministry.

A senior Chinese official wrapped up a four-day visit to North Korea on Monday, apparently without meeting the country’s leader, Kim Jong Un.

Song Tao, head of the international department of the Chinese Communist Party, met senior officials from the Workers Party of Korea and “exchanged views on the Korean peninsula issue”, China’s official Xinhua news agency said.

“The ruling parties of China and the Democratic People’s Republic of Korea on Monday pledged to strengthen inter-party exchanges and coordination, and push forward relations,” it added, using North Korea’s official name.

Song had been in Pyongyang to discuss the outcome of the recently concluded Chinese Communist Party Congress in Beijing.

 

(Additional reporting by Christine Kim, and Ben Blanchard in BEIJING; Editing by Nick Macfie and Clarence Fernandez)