The global economic and tech system appears to be breaking in two, one led by the U.S. and the other by China, in an unfolding new world resembling the competing geopolitical spheres of the Cold War.
The big picture: One of the eeriest features of this apparent future will be new virtual and legal "borders," a formalization of attempts already afoot by the U.S. and China to bar the other from the sphere they themselves control.
Israeli Prime Minister Netanyahu said in a closed hearing on Monday that Russia recently proposed to Israel and the U.S. that Iran be granted relief from some U.S. sanctions in return for the removal of Iranian forces and proxies from Syria.
Why it matters: Iranian retrenchment in Syria is a huge concern for Israel, but the Russian position until now has been, at least publicly, that Iran's presence is legitimate because it came at the Assad regime's invitation. This is the first we're hearing that the Russians have floated an idea for Iran's withdrawal, and that they're linking it to U.S. sanctions.
Researchers at Palo Alto Networks discovered new malware being used by the Kremlin-backed hacking group Fancy Bear.
Why it matters: The "cannon" malware uses email to communicate with its command and control server. That's not common in malware right now, says Jen Miller-Osborn, deputy director of threat Intelligence for the Palo Alto Networks Unit 42 research team, and doesn't appear to be something Fancy Bear has ever done before.
A senior Houthi leader announced last night that the rebel fighters would halt military operations against the Saudi-led coalition. Hours later, Yemen’s internationally recognized government signaled that it’s ready to take part in peace talks. And this afternoon, the UN Security Council took up a draft resolution to support the talks.
Why it matters: Yemen’s civil war has cost the lives of as many as 10,000 civilians and created the worst humanitarian disaster in the world. It has also become a flash point for conflict between Saudi Arabia and Iran that threatens regional stability.
FireEye announced last week that a cyber attack that looked like it could have come from the Russian hackers "Cozy Bear" may have impersonated a State Department official in a new phishing campaign.
The big picture: FireEye was careful to say last week that it was not ready to formally accuse Russia of the attack. It still isn't. But the security firm posted more information about the attack on Monday which has helped to fill in some blanks.
Israel is expected to withdraw from the UN Global Compact on Migration after requests from the U.S. and Hungary, Israeli officials tell me.
Why it matters: The Trump administration is leading international opposition to the compact, claiming it harms sovereignty and legitimizes illegal migration. Israeli diplomats were actively involved in the drafting of the international document over the past two years, but once Israeli Prime Minister Benjamin Netanyahu realized the U.S. was against it, he decided to withdraw.
Richard Liu, the billionaire CEO of JD.com who is facing a rape accusation in Minnesota, said today that he will shift his primary responsibilities away from the Chinese giant's main e-commerce arm, instead focusing on the company's "new businesses." JD's share price fell 5.5% after his announcement.
The big picture: A JD.com spokesperson said, "As CEO of a massive company doing many different things, from the many categories of the retail business, to a major logistics operation, technology innovation and retail as a service, he has long been overseeing the broad strategy for the company." Liu was arrested on Aug. 31 after a University of Minnesota woman said he raped her. He has insisted he is innocent, and Minnesota authorities say they have not decided whether to pursue charges against him. Liu's announcement comes as JD.com, which has the backing of Chinese tech behemoth Tencent as well as Google and Walmart, is losing market value. The company's stock has fallen 54% from its high this year.
Editor's note: This piece has been updated to include a quote from a JD.com spokesperson.
Austria’s refusal to play host to a Special Purpose Vehicle (SPV) payment system that would circumvent U.S. sanctions is the latest in a series of setbacks for EU states struggling to save the 2015 nuclear deal with Iran. EU members appear to understand that playing host to the SPV increases their potential for exposure to U.S. secondary sanctions.
The big picture: Since the U.S. left the Iran nuclear deal in May, the EU has been scrambling to find creative ways to incentivize Iran to continue adhering to the accord. While EU leaders desired to have the SPV established by November, devising a sanctions-proof channel to clear trade and engage in bartering with Iran was much harder than anticipated.
After years of controversy, Airbnb is removing all home-share listings — about 200 — in Israeli settlements in the Palestinian West Bank.
Why it matters: Tech companies are increasingly finding themselves in the middle of political storms, as the services they provide run into the crosscurrents of regional conflicts and ethical controversies.
