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Thyssenkrupp is reconsidering its ambitious plans to produce “green steel,” a shift aimed at achieving climate-neutral production, according to an internal report cited by the German newspaper Handelsblatt. The company’s leadership, including CEO Miguel Lopez, has launched a comprehensive review of its direct reduction plant (DRI) project, initially set to commence operations in 2027. This facility was designed to utilize hydrogen in steel production rather than coal, a move towards more sustainable practices.

The German federal government and the state of North Rhine-Westphalia have pledged €2 billion to support the initiative, with €500 million already disbursed as state subsidies. If Thyssenkrupp decides to cancel the project, it would face the daunting task of repaying these funds. A spokesperson for the company stated, “The situation is currently being reviewed,” while maintaining that the DRI plant’s implementation remains feasible under the current framework, despite potential cost increases not affecting the subsidies at this time.

Thyssenkrupp’s steel division has been grappling with significant challenges, as evidenced by disappointing financial results reported in June, where both net income and profits saw dramatic declines amidst rising operating expenses. The steel unit has undergone a major management overhaul, resulting in the appointment of a new CEO, chair, and five directors following several high-profile resignations. These departures were fueled by a takeover battle initiated by Czech billionaire Daniel Křetínský, who acquired a 20% stake in the steel business and is poised to buy an additional 30%.

Additionally, the company faced a setback this week when the Court of Justice of the European Union upheld the European Commission’s 2019 anti-trust ruling against Thyssenkrupp’s proposed joint venture with Tata Steel Europe, which would have created Europe’s second-largest steelmaker.

Thyssenkrupp’s steelmaking division is under pressure from intense competition from Asian markets, alongside soaring energy prices and diminishing demand in Europe. These factors complicate the company’s ability to meet climate requirements, necessitating substantial investments for transition to more sustainable practices.

Despite these hurdles, Thyssenkrupp emphasized its commitment to transitioning to climate-neutral steel production. “There is no way around the decarbonization of CO2-intensive steel production in the long term,” the company stated. Following the news, Thyssenkrupp’s shares dipped nearly 5% during midday trading in Germany.

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Apple Removes Advanced Data Protection in UK After Government Demand

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Apple has announced it will no longer offer its highest level of data security, Advanced Data Protection (ADP), to users in the United Kingdom. The decision follows a request from the UK government for access to encrypted user data.

ADP provides end-to-end encryption, ensuring that only account holders can access their online photos, documents, and other data. Not even Apple can decrypt this information. However, the UK government, citing the Investigatory Powers Act (IPA), requested the ability to access this data, leading Apple to withdraw the service.

Apple expressed disappointment in a statement, reaffirming its stance against creating a “backdoor” into its systems, as it could potentially be exploited by malicious actors. “We have never built a backdoor or master key to any of our products, and we never will,” the company stated.

As of Friday at 15:00 GMT, UK users attempting to activate ADP receive an error message. Those already using the feature will lose access at a later date. The number of users who opted into ADP since its UK launch in December 2022 remains unknown.

Masterton Mayor Gary Caffell called the situation “shocking” and “unexpected,” emphasizing the impact on the local community. Cybersecurity expert Prof. Alan Woodward from Surrey University criticized the UK government’s move as “an act of self-harm,” arguing that it weakens online security and privacy. Online privacy expert Caro Robson noted that Apple’s decision to withdraw a product instead of complying with government demands is “unprecedented.”

Criticism has also come from the United States. Senator Ron Wyden warned that Apple’s withdrawal “creates a dangerous precedent which authoritarian countries will surely follow.” WhatsApp head Will Cathcart echoed concerns on social media, stating that a global backdoor would compromise security for users worldwide.

Apple acknowledged the privacy and security risks associated with this decision but stated its commitment to offering robust data protection in the future. The company hopes to reintroduce ADP in the UK if circumstances change.

Meanwhile, child safety organizations such as the NSPCC have voiced concerns that end-to-end encryption could hinder efforts to detect and prevent child sexual abuse material (CSAM). However, Emily Taylor of Global Signal Exchange argued that encryption is essential for safeguarding consumer privacy, emphasizing its everyday use in banking and secure communication.

The debate highlights the ongoing tension between privacy, government surveillance, and online safety, with global implications for technology companies and their users.

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Apple Halts Advanced Data Protection in UK After Government Demand for Access

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Apple is removing its top-tier data encryption feature, Advanced Data Protection (ADP), from UK users following a government request for access to user data. The decision means that Apple customers in the UK will no longer be able to activate ADP, which ensures that only account holders can access their iCloud-stored content through end-to-end encryption.

The UK government made the request earlier this month, seeking the ability to access encrypted data under the Investigatory Powers Act (IPA), which mandates that companies must provide information to law enforcement agencies upon request. While Apple has consistently resisted creating encryption backdoors, citing potential misuse by cybercriminals, the company confirmed it would disable ADP activation in the UK starting Friday at 3 p.m. GMT. Existing users will also lose access at a future date.

“We are gravely disappointed that UK customers will no longer have access to this security feature,” Apple said in a statement. “We have never built a backdoor or master key into our products and never will.”

The Home Office declined to comment on the specific order, stating, “We do not comment on operational matters.”

Cybersecurity experts have criticized the government’s move, arguing that it undermines online privacy. Professor Alan Woodward of Surrey University called the decision “an act of self-harm” that weakens security for UK users. “It was naïve of the UK government to think they could dictate terms to a US technology company on a global scale,” he added.

The development has sparked backlash from privacy advocates, who describe the order as an “unprecedented attack” on individual privacy. Concerns have also emerged in the United States, where two senior politicians warned that the UK’s demands could jeopardize intelligence-sharing agreements between the two countries.

Despite the removal of ADP in the UK, the feature will remain available to users in other countries, raising questions about the global impact of the UK’s IPA order. In its statement, Apple emphasized its commitment to user privacy and expressed hope that it could restore ADP in the UK in the future. “Enhancing the security of cloud storage with end-to-end encryption is more urgent than ever before,” the company stated.

This latest dispute highlights growing tensions between governments seeking access to encrypted data and technology companies prioritizing user privacy, with potential implications for international regulatory frameworks and cross-border data security.

 

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European PMI Data Reveals Mixed Economic Signals

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February economic data across Europe showcased divergent trends, with the UK’s services sector seeing growth, Germany’s manufacturing hitting a two-year high, and France continuing to face challenges.

The flash estimate for France’s HCOB Manufacturing PMI rose to 45.5 in February from 45 in January, according to S&P Global. While still indicating contraction, this was the mildest decline since May 2024. The services sector, however, fell more sharply, with its PMI dropping to 44.5 from 48.2, driving the composite PMI to 44.5—the steepest contraction since September 2023. Economist Dr. Tariq Kamal Chaudhry of Hamburg Commercial Bank noted that shrinking order intakes and subdued future activity expectations remain key concerns.

In contrast, the UK’s services sector expanded, with its PMI rising to 51.1 from 50.8, surpassing analyst expectations. Despite this growth, new work fell at the fastest rate since November 2022 due to weakened business investment and budget cuts. The UK manufacturing sector continued to contract, with its PMI falling to 46.4 from 48.3, missing market forecasts.

Germany’s manufacturing PMI climbed to 46.1, its highest in two years, supported by slower declines in factory output. Meanwhile, the services sector experienced a slight dip, with its PMI at 52.2 compared to 52.5 in January. Overall, Germany’s private sector remains affected by manufacturing challenges, though the pace of contraction has slowed.

Across the eurozone, the composite PMI held steady at 50.2, signaling marginal growth but falling short of expectations. The manufacturing PMI rose to 47.3 from 46.6, while the services PMI dropped to 50.7 from 51.3. Kyle Chapman, FX markets analyst at Ballinger Group, noted that while modest growth is preferable to contraction, consumer caution due to political and economic uncertainty continues to limit recovery.

In the UK, Chapman pointed to the impact of rising payroll taxes on employment, with one-third of surveyed companies linking lower staffing levels to the October budget. Weak demand and stagnant productivity levels are further hindering the country’s economic performance.

The latest PMI data highlight the complex economic landscape in Europe, with some sectors showing signs of resilience while others grapple with ongoing challenges, influenced by both domestic policies and broader global conditions.

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