Open Source Report for Tuesday, May 20, 2025

THE TOP HEADLINES

Report for Tuesday, May 20, 2025

F.B.I. Closes Unit That Policed Compliance with Surveillance Rules

Trump touts Russia-Ukraine talks, even as he steps back

Europeans to escalate sanctions on Russia, Germany says

Netanyahu Says Israel Will Take Over Gaza as It Allows Food into Enclave

Members of Congress vow not to split Cyber Command, NSA

CIPHER BRIEF EXCLUSIVES

How the U.S. is Tapping a Much Bigger Well in The Middle East. In an interview with The Cipher Brief, Norman Roule, a 34-year veteran of the Central Intelligence Agency and a Middle East expert, framed President Donald Trump’s 2025 visit to the Gulf as a historic geopolitical realignment. Roule argued that the trip resembled the transformative U.S.-Middle East partnerships of the 1930s, now centered on energy, capital, and advanced technology. Agreements forged in Riyadh and Abu Dhabi—especially in AI and semiconductors—signal a strategic pivot that sidelines Chinese tech influence and deepens U.S. engagement. While China remains a key economic partner in the Gulf, Roule noted that the U.S. is asserting its dominance through secure, long-term tech collaboration. He also viewed Trump’s omission of Israel from the itinerary as a calculated message: regional actors must take more responsibility for resolving their crises, including Gaza. On Iran, Roule said the Quds Force remains active but geographically constrained. The lifting of sanctions on Syria is meant to reintegrate it into the Arab fold, limiting Iranian reach. The Cipher Brief

Opinion: The World of Threats – According to the Defense Intelligence Agency. Walter Pincus analyzes the Defense Intelligence Agency’s (DIA) 2025 Worldwide Threat Assessment, highlighting its sobering outlook on global threats. Pincus underscores the DIA’s conclusion that Russia remains committed to winning in Ukraine, willing to absorb staggering losses—over 700,000 casualties and tens of thousands of destroyed vehicles and aircraft—in pursuit of attritional gains and Western fatigue. Despite sanctions and economic strain, Russia is prioritizing defense spending and adapting tactics such as drone warfare and electronic disruption. On China, the DIA sees continued pressure on Taiwan without imminent invasion, though Beijing is expanding its global military reach while battling internal corruption. The report also warns of Iran’s nuclear brinkmanship and ISIS’s resurgent threat to the West, noting recent arrests of suspected terrorists entering via the U.S. southern border. Pincus subtly critiques President Trump's dismissal of such threats and defends the intelligence community's integrity. The Cipher Brief

THE AMERICAS

The Inside Story of Trump’s Search for a New Air Force One. President Donald Trump, frustrated by delays in Boeing’s $3.9 billion Air Force One replacement program, turned to an opulent Boeing 747-8 owned by Qatar as a potential interim solution. The Qatari jet, outfitted for royalty, had failed to sell for years but was offered to Trump during a Mar-a-Lago visit in February 2025. Trump quickly embraced the idea, describing it publicly as a “gift, free of charge.” Behind the scenes, Trump special envoy Steven Witkoff and Qatari officials coordinated the potential transfer, though confusion remains over whether it began as a sale or donation. The proposal sparked bipartisan ethics concerns over foreign influence and the massive retrofitting costs—estimated at $1 billion—required to meet presidential and military standards. Even if the plane is donated, officials say it’s unlikely to be ready before 2027, raising questions about its utility and cost. Qatar denies seeking influence, and no formal agreement has been finalized. New York Times

Schumer to seek vote on blocking Qatar's gift to Trump. Senate Democratic Leader Chuck Schumer is introducing legislation to block the use of foreign-owned planes, such as the $400 million jet offered to President Trump by Qatar, from serving as Air Force One. Democrats argue that the gift raises corruption and national security concerns. Schumer plans to push for a vote during the government funding negotiations, possibly as an amendment to Republican spending bills. Some Senate Republicans have also expressed unease about the Qatari offer. Trump insists the jet is a gift to the U.S., not to him personally. Schumer has stressed that no modifications could make a foreign jet secure enough for presidential use. Axios 

Trump threatens ABC News over Qatar jet coverage. President Trump has slammed ABC News for its coverage of a luxury jet he is set to receive from Qatar, claiming the network is falsely portraying it as a personal gift. In a Truth Social post, Trump warned ABC and Disney CEO Bob Iger, referencing a past legal settlement over inaccurate reporting by anchor George Stephanopoulos. Trump insists the jet is a donation to the U.S. Air Force, not to him personally. “The wonderful country of Qatar, after agreeing to invest more than 1.4 trillion Dollars in the United States of America, deserves much better than Misleading (Fake!) News,” he asserted. Trump added that his lawyers have told ABC to stop calling the jet "free." The issue has drawn concern from lawmakers and national security experts. This condemnation is part of Trump's broader pattern of attacking media outlets critical of him. The Hill 

Air Force Chief of Staff says the Air Force must grow, even at the expense of other services. In an interview with Breaking Defense, U.S. Air Force Chief of Staff Gen. David Allvin argued that the Air Force should receive a larger share of the defense budget to prepare for conflict in the Indo-Pacific, even if it means reallocating funds from other services. Allvin claimed that airpower is better suited for the speed, reach, and agility required in the region, contrasting it with the limitations of ground and naval forces. He highlighted the Air Force’s ability to deploy rapidly and avoid entanglements, offering “disruptive technologies” like the F-47 and Agile Combat Employment initiatives as strategic advantages. Allvin emphasized this as a chance to reshape the Joint Force and overcome budgeting “inertia,” with Defense Secretary Pete Hegseth reportedly open to shifting traditional funding patterns. While avoiding direct criticism of other branches, Allvin’s comments underscore growing interservice budget competition amid flat or declining inflation-adjusted defense spending despite promises of a trillion-dollar 2026 fiscal year Pentagon budget. Breaking Defense

Rare-Earths Plants Are Popping Up Outside China. As geopolitical tensions with China intensify, countries like the U.S. and Brazil are working to diversify rare-earth supply chains, aiming to break China’s near monopoly on the processing of these critical minerals. Canada-based Aclara Resources is leading efforts with a new rare-earths mine in Brazil, which holds the second-largest reserves globally. Aclara will ship partially processed material to a future U.S. plant, supplying companies like Germany’s VAC, which is building a Pentagon-backed magnet factory in South Carolina. While Brazilian production costs are roughly triple China’s, Aclara touts environmentally friendlier methods, avoiding toxic wastewater and tailings dams. Still, the industry faces challenges: Brazil’s complex regulations, financing gaps, and entrenched Chinese dominance. Nevertheless, U.S. and European governments are investing hundreds of millions in rebuilding rare-earth processing capacity to reduce dependence on Chinese supply chains, especially for essential technologies like EV motors, missiles, and smartphones. Full production at Aclara's Brazilian plant is expected by 2028. Wall Street Journal

In Deadly NYC Ship Accident, Questions About What Went Wrong. Sunday’s crash of the Mexican Navy’s Cuauhtémoc into the Brooklyn Bridge raises serious questions about operational oversight, mechanical reliability, and maritime coordination in one of the world’s busiest harbors. Though initially described as a goodwill tour, the ship’s sudden and fatal drift under a bridge it was never meant to approach suggests multiple layers of failure. Two crew members were killed and 22 injured, including 11 who were in critical condition on Monday night. Mechanical issues may have caused the ship’s engines to push it in reverse, but experts point to inadequate tugboat support and misjudged river and wind conditions as contributing factors. There’s also debate over whether U.S. harbor authorities or Coast Guard staffing shortages played a role in monitoring or assisting the departure. The collision reflects broader concerns about protocol when foreign naval vessels operate in tight urban waterways, especially with large crews aboard. As investigations unfold, both Mexico and the U.S. face pressure to explain whether the tragedy stemmed from miscommunication, equipment failure, or preventable human error. New York Times Reuters Associated Press The Guardian  

F.B.I. Closes Unit That Policed Compliance with Surveillance Rules. FBI Director Kash Patel has disbanded the Office of Internal Auditing, an internal watchdog established in 2020 to monitor compliance with national security surveillance rules, particularly under Section 702 of the Foreign Intelligence Surveillance Act (FISA). The move comes amid ongoing congressional debate over whether to reauthorize Section 702, which allows warrantless surveillance of foreign targets and often sweeps in Americans’ data. Critics argue the closure weakens oversight, especially as prior audits revealed significant abuses of surveillance rules, including improper searches involving members of Congress and protestors. The office’s responsibilities have been absorbed by the FBI’s Inspection Division, raising concerns about whether rigorous auditing and reform efforts will continue. The decision has drawn scrutiny, especially given Patel’s prior criticism of the FBI’s misuse of surveillance tools and his more recent support for reforming and preserving Section 702.  New York Times 

US Supreme Court lets Trump end deportation protection for Venezuelans. The U.S. Supreme Court allowed President Donald Trump’s administration to end Temporary Protected Status (TPS) for Venezuelans on Monday, reversing an extension granted under President Joe Biden. The decision effects over 348,000 Venezuelans who received protection due to humanitarian crises in their home country. The Court's brief, unsigned order lifted a lower court's block on Homeland Security Secretary Kristi Noem’s move to terminate TPS, though it leaves room for future legal challenges. Critics call it the largest revocation of legal status for non-citizens in modern U.S. history. Venezuelan migrants expressed fear and uncertainty, with many now at risk of deportation. Reuters Forbes BBC CNN   

DHS says first $1,000 ‘self-deport’ flight completed. The Department of Homeland Security has officially launched its new program offering $1,000 and travel assistance to migrants who voluntarily agree to self-deport through the CBP Home app, a redesign of the Biden-era CBP One app. The first charter flight under this program took 68 migrants to Colombia and Honduras on Monday. DHS stressed this was voluntary and not an ICE enforcement action, noting participants may retain the ability to legally return to the U.S. in the future. In a statement, Homeland Security Secretary Kristi Noem warned migrants that they would be “subjected to fines, arrest, deportation and will never be allowed to return” to the U.S. if they fail to take the opportunity to self-deport. However, the American Immigration Lawyers Association warned migrants to seek legal advice before accepting, cautioning that self-deportation could carry serious consequences, including potential reentry bans. Associated Press The Hill CNN Axios 

Real estate tycoon Charles Kushner confirmed as ambassador to France. Charles Kushner, a real estate developer and father of Jared Kushner, President Donald Trump's son-in-law, was confirmed by the Senate as U.S. ambassador to France despite past felony convictions for tax evasion, witness tampering, and false statements—crimes for which he served two years in prison and was later pardoned by Trump in 2020. The confirmation vote was 51–45, with Sen. Cory Booker as the only Democrat in favor and Sen. Lisa Murkowski the only Republican opposed. Critics, including Sen. Patty Murray, argued Kushner’s criminal history made him unfit for the role. Former New Jersey Governor Chris Christie, who brought charges against Kushner in the past, said his case was “one of the most loathsome, disgusting crimes that I prosecuted when I was U.S. attorney.” At his hearing, Kushner acknowledged his past mistakes but underscored personal growth since. Last year, Trump praised Kushner as a “tremendous business leader, philanthropist and dealmaker.” PoliticoThe Hill Reuters

Comey says online post that triggered investigation is a ‘distraction.’  Former FBI Director James Comey defended his controversial Instagram post showing seashells arranged as the numbers “8647,” which some interpreted as a call to assassinate President Trump. In his first interview since the post sparked a federal investigation, Comey said he saw no violent meaning and viewed the shells as a “clever” political expression. Comey confirmed he was interviewed by the Secret Service and DHS, saying he regrets “the distraction and the controversy around it,” but maintained that the post was “totally innocent.” He also accused Trump and his administration of eroding the rule of law by targeting individuals, citing years of personal attacks since his 2017 firing. Comey dismissed calls for his prosecution as politically motivated, warning of growing threats to democratic institutions. A White House spokesperson referred to Comey as “disgraced,” and said he “suffers from an incurable case of Trump Derangement Syndrome.”  Axios Associated Press The Guardian 

Retired 4-star Navy admiral found guilty in bribery case. Retired U.S. Navy Admiral Robert P. Burke, once the Navy’s second highest-ranking officer, was convicted Monday on multiple felony counts, including bribery and conspiracy. Prosecutors said Burke used his position in 2021 to steer a $355,000 Navy training contract to Next Jump, a New York-based tech firm, in exchange for a promised post-retirement job paying $500,000 annually plus stock options. He also pushed for a larger, multimillion-dollar contract for the company. Burke began working at Next Jump in October 2022 after retiring. The jury’s verdict makes him one of the highest-ranking U.S. military officers ever convicted of crimes committed while in uniform. Prosecutors accused him of concealing the scheme and misleading the Navy about when talks with the company began. Burke's attorney plans to appeal, claiming the jury didn’t see the full picture. Next Jump’s co-CEOs, Charlie Kim and Meghan Messenger, face trial in August. Burke’s sentencing is set for Aug. 22. New York Times The Hill 

U.S. Offers $10 Million for Tips on Hezbollah in Latin America. The U.S. Department of State on Monday announced that it is offering a reward of up to $10 million for information on the Latin American financial networks of the Lebanese militant group Hezbollah, particularly in the tri-border area of Argentina, Brazil, and Paraguay. The effort, which was announced by the State Department’s Rewards for Justice program in multiple languages, aims to disrupt the group's funding operations linked to terrorism, including the 1994 bombing in Argentina. Hezbollah is allegedly involved in various illicit activities such as money laundering, drug and oil trafficking, counterfeit operations, and more. Brazilian authorities have been investigating ties between Hezbollah and local criminal groups like First Capital Command since 2000. The Brazilian government has not commented on the announcement. Bloomberg USEmbassy.gov 

Haitian gang leader convicted in kidnapping of American missionaries. A U.S. jury has convicted Germine “Yonyon” Joly, former leader of Haiti’s 400 Mawozo gang, for orchestrating the 2021 kidnapping of 16 Americans and a Canadian affiliated with Christian Aid Ministries. The hostages, including five children, were held for over two months. Although Joly was already serving a life sentence in Haiti, he continued to direct gang activities from prison. Extradited to the U.S. in 2022, he had previously pleaded guilty to weapons smuggling and laundering ransom money. He will be sentenced later this year. The 400 Mawozo gang remains active in Haiti, though it is under new leadership. Associated Press Miami Herald  

Venezuela suspends flights from Colombia after arrests. Venezuela has suspended all flights from Colombia following the arrest of 38 individuals, including 17 foreigners, accused of being involved in a “conspiracy and terrorism.” On Monday, Interior Minister Diosdado Cabello said the group, which allegedly included bombers, smugglers, and mercenaries, had entered Venezuela with explosive materials and planned to plant them at embassies and other facilities. The government often points to schemes targeting President Nicolás Maduro or national infrastructure, an accusation often directed at the opposition and the U.S., though both deny involvement in such plots. The flight suspension, effective immediately, will last until May 26, just ahead of Venezuela’s upcoming elections. Colombia confirmed it was notified but has not received details about any detained citizens. Also on May 19, a panel of experts, supported by the Organization of American States, said that Caracas’s post-election period has seen “the most severe and sophisticated phase of political repression in Venezuela’s modern history.” Reuters Associated Press 

THE UKRAINE UPDATE

Trump touts Russia-Ukraine talks, even as he steps back. Despite a highly anticipated two-hour phone call between U.S. President Donald Trump and Russian President Vladimir Putin on Monday, no breakthrough was achieved in securing a ceasefire in Ukraine. Trump announced that Russia and Ukraine would begin negotiations “immediately,” but signaled a U.S. pullback from mediation, stating the two parties must resolve the conflict themselves. Putin offered only vague commitments to work on a peace “memorandum,” while resisting a 30-day ceasefire sought by Ukraine and European allies. Ukrainian President Volodymyr Zelensky warned that U.S. disengagement would benefit only Russia, which continues to demand sweeping concessions, including Ukrainian neutrality and territorial losses. Vice President JD Vance echoed the administration's frustration. Vance told reporters on Monday that the US might ultimately have to say, “This is not our war.” European leaders reaffirmed support for Ukraine, with some suggesting new sanctions if Russia fails to cooperate. Meanwhile, Putin appears to be buying time, maintaining offensives while projecting diplomatic engagement. Politico  Reuters Wall Street Journal New York Times Financial Times

Analysis: Putin just showed Trump how little he needs him. Monday’s phone call between U.S. President Donald Trump and Russian President Vladimir Putin revealed a sharp imbalance in leverage—and a sobering truth about the limits of American influence. For all of Trump’s efforts to position himself as a peacemaker, the call underscored that Putin neither needs nor seeks U.S. approval. By returning to his well-worn narrative blaming NATO expansion, Putin signaled no shift in his war aims. Meanwhile, Trump’s post-call remarks—urging Russia and Ukraine to “talk directly” and suggesting the Vatican as a venue—suggested a retreat from active diplomacy. Putin is not negotiating; he’s stalling for time. Trump, in turn, appears to be lowering expectations, recognizing that he holds little sway. The U.S. is no longer driving the peace process; it’s outsourcing it. The call demonstrated that Putin sees this war as existential and winnable, while Trump views continued involvement as optional and unprofitable. It was less a negotiation than a quiet abdication. CNN

Has Donald Trump abandoned Ukraine? Following Monday’s phone call with Russian President Vladimir Putin, President Donald Trump appeared to shift U.S. policy on Ukraine, alarming Kyiv and European allies. Trump emphasized future U.S.-Russia trade relations over pressuring Moscow to halt its war, and signaled the U.S. would step back from mediating peace talks, proposing instead that the Vatican take over. Critics, including former U.S. diplomats, say Trump’s stance emboldens Russia and suggests he's prioritizing normalization with Moscow over Ukraine’s defense. While Trump previously threatened sanctions for continued Russian aggression, he didn’t reiterate them in the call, which insiders described as friendly. Meanwhile, Russia continues its offensive in eastern Ukraine, with reports of heavy fighting and territorial gains. Some analysts argue Trump’s hands-off approach could spur direct negotiations, but others see it as ceding ground to an aggressor amid worsening battlefield conditions for Ukraine. “This call with Trump was a win for Putin,” said Steven Pifer, a former US ambassador to Ukraine now at the Center for International Security and Cooperation at Stanford University. Financial Times Bloomberg Axios 

Europeans to escalate sanctions on Russia, Germany says. European leaders will escalate sanctions on Russia to increase pressure for a ceasefire in Ukraine, German Chancellor Friedrich Merz said Monday after U.S. President Donald Trump briefed allies on his call with Vladimir Putin. “Europe and America are very united on this: We will closely support Ukraine on its path toward a ceasefire,” Merz wrote on X. “Europe will increase the pressure on Moscow through sanctions. This is what we agreed upon with @POTUS after his conversation with Putin.” While Trump claimed ceasefire talks would begin, the Kremlin made no such commitment. Merz’s remarks underscore Europe’s alignment with Washington on using sanctions to influence Moscow amid Russian battlefield gains. Germany is coordinating with allies on a new round of sanctions. The European Union is expected to approve its 17th sanctions package this week, with measures likely targeting Russia’s financial sector and third-party banks aiding Moscow's war effort. Reuters Bloomberg The Guardian 

UK hits Russia with sanctions targeting military and financial sectors. The United Kingdom announced a significant expansion of its sanctions against Russia, adding 82 new designations targeting the country's military, energy, and financial sectors. This move, coordinated with the European Union, comes in response to intensified Russian drone attacks on Ukrainian cities. The sanctions focus on entities involved in the supply chains of Russian weapons systems, including Iskander missiles, as well as financial institutions aiding Russia in evading existing sanctions. Additionally, 18 vessels identified as part of Russia's "shadow fleet" used to circumvent crude export restrictions were added to the sanctions list, along with individuals linked to these efforts. UK Foreign Minister David Lammy urged President Vladimir Putin to agree to an unconditional ceasefire to facilitate peaceful negotiations, warning that continued resistance would only strengthen support for Ukraine and intensify sanctions. Reuters

Russia is only playing for time in talks on Ukraine peace, Germany says. Russian President Vladimir Putin is not interested in peace in Ukraine and is only playing for time in talks with the United States, German Defense Minister Boris Pistorius said on Tuesday. Before a meeting with European Union defense ministers in Brussels, Pistorius said that Europe needs to increase the pressure on Russia by imposing more sanctions, especially on Russia's energy sales. Reuters

Finland to use proceeds from frozen Russian assets to supply ammunition to Ukraine. Finland announced Monday that it will send €90 million ($101 million) worth of ammunition to Ukraine, using proceeds from frozen Russian assets held within the European Union. The EU has frozen around €210 billion in Russian central bank reserves since Moscow’s 2022 invasion of Ukraine. Under an EU decision, interest generated from these assets can now fund Kyiv’s military through a common fund. Finnish Defense Minister Antti Hakkanen noted the weapons will be sourced from domestic industry, benefiting both Ukraine’s defense and Finland’s economy. The Kremlin has condemned such actions as illegal and vowed legal retaliation. Reuters

As Russia’s fiber optic drones flood the battlefield, Ukraine is racing to catch up. Fiber optic drones have emerged as a transformative force in the Ukraine-Russia war in 2025, offering a major tactical edge by bypassing electronic warfare and radio limitations. Unlike traditional FPV (first-person view) drones, fiber optic variants are guided through physical cables, allowing uninterrupted video feeds and precision strikes, even in jammed or enclosed environments. Russia deployed this technology first, notably using it to regain control of Kursk Oblast and cripple Ukrainian logistics. Units now employ these drones in Donetsk, intensifying pressure on Ukraine. While Ukraine’s elite drone units—like Azov and Achilles—have started deploying fiber optic systems, widespread use remains limited. Production challenges and reliance on Chinese components hamper scaling. Ukraine is racing to adapt, with new domestic spools like the "Silkworm" and growing pilot training. As spool lengths increase beyond 10 kilometers, both sides are redefining frontline logistics and battlefield reach, with Russia currently enjoying a key advantage. Kyiv Independent

Russian attacks kill 1, injure 13 in Ukraine over the past day. Russian attacks across multiple Ukrainian regions killed one civilian and injured at least 13, local officials said Tuesday. Strikes hit Donetsk, Kharkiv, Kherson, and Sumy oblasts, targeting towns with air, drone, and artillery assaults. Ukrainian air defenses intercepted 93 of 108 Russian drones overnight, with 35 shot down and 58 disrupted by electronic warfare. Damage included homes, infrastructure, and vehicles. In Sumy Oblast, a drone strike sparked a fire at a civilian site, though no casualties were reported. Kyiv Independent

Nearly 56,000 residents evacuated from Sumy Oblast. Nearly 56,000 residents have been evacuated from Ukraine’s Sumy Oblast due to intensifying Russian attacks, with efforts ongoing to relocate the remaining civilians under mandatory evacuation orders, the regional governor said Monday. Located along the Russian border near Kursk, the region faces daily drone strikes, guided bombs, and infiltration attempts. Over 86,000 residents are subject to evacuation, Evacuations accelerated after a May 17 Russian strike on a civilian bus in Bilopillia killed nine people. Kyiv Independent

ISW Russian Offensive Campaign Assessment for Monday, May 19. Meaningful peace talks between Ukraine and Russia are impossible unless the Kremlin explicitly recognizes the legitimacy of Ukraine’s government, which it has repeatedly denied in recent statements. Russia also refuses to accept the sequencing of ceasefire talks before peace negotiations, using this stance to delay diplomacy while continuing military advances. The Kremlin appears to be expanding its demands, including full Ukrainian territorial concessions in several oblasts, and even threatening additional regions like Kharkiv and Sumy. Meanwhile, Russia is reportedly increasing military infrastructure near Finland and Estonia, signaling possible future aggression against NATO once the Ukraine war ends. Western military support for Ukraine continues, with Australia sending Abrams tanks, Denmark pledging over $600 million in aid, and Finland contributing €90 million through frozen Russian assets.

Battlefield update: Russian forces advanced in Kursk Oblast and near Chasiv Yar, Toretsk, and Novopavlivka. Institute for the Study of War

EUROPE

Defense, fishing and youth visas: What's in the UK-EU post-Brexit 'reset' deal? The UK and the European Union agreed Monday to a sweeping post-Brexit “reset” covering defense, trade, energy, migration, and youth mobility, marking the most significant thaw in relations since Brexit. A major breakthrough is a defense and security pact allowing UK participation in EU crisis missions and arms procurement. On trade, a veterinary (SPS) agreement will ease border checks on food, benefitting UK exporters and Northern Ireland, though it raises concerns about regulatory alignment and sovereignty. Both sides also pledged to link carbon markets, avoiding new EU carbon taxes and improving energy cooperation, with the UK moving toward rejoining the EU electricity market. A youth visa program and potential UK re-entry to Erasmus+ will enhance mobility for under-30s. Fishing rights have been extended to 2038, and talks are underway to recognize professional qualifications. The deal signals pragmatic cooperation but has sparked criticism from Brexit hardliners over renewed EU legal influence and environmental rule alignment. France24 Politico EU

Can defense become Europe’s economic growth machine? As Europe ramps up defense spending to counter global threats and reduce reliance on the U.S., leaders hope this investment will spur civilian technological innovation through military-civil fusion — the way military research once gave rise to inventions like GPS, Microwaves, and the PC. The EU has committed hundreds of billions to defense, with countries like Germany launching massive rearmament plans. This spending boom is attracting private firms and startups, such as AI-driven defense company Comand AI, but experts caution that realizing broad economic gains is uncertain. Historical evidence shows military R&D can boost productivity, but only if funds are invested smartly in innovation rather than just weapons stockpiling. Critics warn of trade-offs, such as cuts to welfare programs, and question the long-term economic benefit of producing arms. To succeed, Europe must prioritize open, competitive tenders, support nimble tech firms, and build more of its own defense systems, rather than relying heavily on American suppliers. Politico EU 

As focus on defense mounts, Europe’s diplomatic arm aims to gut foreign offices. The EU plans to downsize around 10 of its 144 foreign delegations and cut approximately 100 local staff as part of a budget-driven overhaul of its diplomatic branch, the European External Action Service (EEAS). The downsizing, led by top diplomat Kaja Kallas, aims to shift focus from development aid to strategic priorities like defense partnerships and sanctions enforcement. Delegations in lower-priority countries such as Belarus and Lesotho will be reduced to core staff, while some in strategic regions may see increased staffing. Though no offices will officially close, stripped-down delegations may operate without physical premises. The plan, set to cost €20 million in its first year and projected to save €9 million annually thereafter, reflects broader EU budget constraints and a growing emphasis on defense spending. The cuts are expected to unfold in two phases in 2026 and 2027, and further reductions could arise from ongoing long-term bloc budget negotiations. Politico EU Kyiv Post 

Race for Poland’s presidency blows wide open. Poland’s presidential race has tightened dramatically ahead of the June 1 runoff, with centrist Warsaw Mayor Rafał Trzaskowski narrowly leading the first round with 31.4% over right-wing Karol Nawrocki’s 29.5%. The result was much closer than expected, leaving Trzaskowski scrambling to rally left-wing and moderate voters, while Nawrocki can draw from a broader right-leaning base—54% of first-round votes went to conservative or far-right candidates. Trzaskowski is closely tied to Prime Minister Donald Tusk, whose falling popularity and stalled reforms have become a liability. Meanwhile, Nawrocki is appealing to voters of third-place libertarian Sławomir Mentzen, who is socially conservative but economically liberal. Voter fatigue with establishment parties and the divided political landscape makes turnout and coalition-building key. Though both candidates support Ukraine, foreign and EU policy will also shape the final days of campaigning. Analysts describe Trzaskowski as the “battered favorite,” but the outcome remains highly uncertain. Politico EU

Former NATO Chief Rasmussen Says Plan for European Force In Ukraine 'Moving Too Slowly.' Former NATO Secretary General Anders Fogh Rasmussen criticized the slow progress on establishing a European force to deploy in Ukraine post-ceasefire, warning that Europe risks becoming a “coalition of the waiting” rather than the willing. He urged quicker action on defining the force's mandate, rules of engagement, and contributors. Rasmussen called for doubling European defense spending to counter Russia’s military advantage and proposed a new security-economic alliance of democracies (D7) excluding the U.S., which he says has embraced isolationism under Trump. He warned that global democracy is in retreat and urged collective action, unity, and resolve to confront rising authoritarianism. RFE/RL

UK adds 82 new designations to its Russia sanctions list. Britain has announced new sanctions targeting 100 Russian entities across the military, energy, and financial sectors, coordinated with parallel EU measures. The move follows Russia’s largest drone attack of the war on Ukrainian cities and aims to disrupt supply chains for weapons like Iskander missiles, financial networks evading sanctions, and Kremlin-backed disinformation operations. Sanctioned groups include 46 financial institutions, 18 vessels from Russia’s "shadow fleet," and individuals tied to sanctions evasion. British officials, alongside EU leaders, urged the U.S. to impose tougher sanctions, after President Trump’s recent call with Putin failed to secure a Ukraine ceasefire. Reuters

Russia releases oil tanker from Baltic Sea detention, Estonian broadcaster ERR reports. Moscow has released the Greek-owned oil tanker Green Admire, which it detained on Sunday after the vessel left Estonia’s Sillamae port and entered Russian waters via a designated navigation channel. The tanker, sailing under a Liberian flag, has resumed its journey to Rotterdam, according to ship tracking data and Estonian broadcaster ERR. Estonia’s foreign ministry suggested the detention may have been a response to the Estonian navy’s recent inspections of tankers carrying Russian oil through the Baltic Sea. The incident sheds light on rising maritime tensions linked to regional energy trade and ongoing geopolitical friction. Reuters

Russia bans Amnesty International. Russia on Monday said it was banning Amnesty International, labeling the human rights group “undesirable” in its latest crackdown on civil society amid the ongoing war in Ukraine. The Russian prosecutor’s office accused Amnesty of promoting “Russophobic” agendas, supporting Ukraine, and calling for the Kremlin’s political and economic isolation. The ban prohibits Amnesty from operating in Russia, where its Moscow office was already shut down in 2022. Although Amnesty has documented Russian war crimes, it has also criticized Ukraine, drawing backlash from Kyiv. Russia has increasingly targeted foreign NGOs since 2015, using legal tools to suppress dissent and stifle criticism of President Vladimir Putin’s regime. Politico EU Associated Press The Guardian

UK Plans New Powers to Tackle Rise in Iran-Backed Threats. Britain intends to enhance its counterterrorism measures in response to growing security threats linked to Iran, Home Secretary Yvette Cooper announced on Monday. She cited the Islamic Revolutionary Guard Corps as a key concern and called Iran’s activities an "unacceptable threat" to UK security. The announcement follows the arrest of three Iranian nationals for allegedly spying for Tehran, and the detention of five others suspected of planning a terrorist attack, reportedly targeting the Israeli Embassy in London. The UK also summoned Iran’s ambassador over the incidents. These developments take place amid ongoing international efforts to address Iran’s nuclear development and enrichment program. Bloomberg   

Lithuania files case against Belarus with UN’s top court over alleged smuggling of migrants. Lithuania has filed a case against Belarus at the International Court of Justice, accusing it of violating the U.N. Protocol against the Smuggling of Migrants by Land, Sea and Air by allegedly orchestrating the illegal movement of migrants into Lithuania. Vilnius claims Belarusian state entities increased flights from the Middle East and that security forces escorted migrants to the border, forcing them to cross illegally. Lithuania seeks compensation for related damages, including border reinforcement costs. The move follows failed negotiations and comes amid broader EU concerns about Belarus and Russia “weaponizing” migration to destabilize the bloc. Belarus has yet to respond to the allegations. Associated Press Kyiv Independent Al Jazeera 

THE MIDDLE EAST

Netanyahu Says Israel Will Take Over Gaza as It Allows Food into Enclave. Israeli Prime Minister Benjamin Netanyahu announced plans on Monday for Israel to take full control of the Gaza Strip, intensifying military operations while allowing limited food aid into the enclave amid dire humanitarian warnings. The move followed pressure from U.S. lawmakers concerned about growing hunger in Gaza and coincided with expanded Israeli ground operations and airstrikes targeting Hamas infrastructure. Netanyahu said control of Gaza was essential to demilitarize Hamas and recover hostages. Western leaders from the U.K., France, and Canada condemned the escalation and threatened sanctions if humanitarian access isn’t improved. Meanwhile, aid groups warn of imminent famine, with nearly 500,000 Gazans facing starvation. A U.S.-Israel plan aims to secure aid distribution through guarded sites, but the U.N. has raised concerns over civilian risks. The developments follow Hamas's release of American hostage Edan Alexander, which reportedly included an understanding to resume aid, though implementation lagged, prompting renewed U.S. and Qatari pressure on Israel. Wall Street Journal Financial Times The Guardian Reuters Associated Press 

Israel Wavers as Far Right and Military Disagree on Gaza Strategy. Israel’s delayed ground offensive in Gaza and partial resumption of food aid reflect deep internal divisions amid mounting international pressure. Prime Minister Netanyahu is caught between far-right cabinet members pushing for full re-occupation of Gaza and military leaders concerned about sustainability and hostage risks. Though aid had been blocked since March, Israel allowed limited food shipments on Monday, citing fears of famine and diplomatic backlash, particularly from the Trump administration. At the same time, increased airstrikes and the threat of a larger invasion are seen as leverage in ongoing ceasefire talks with Hamas. Netanyahu’s strategy—balancing military escalation with humanitarian concessions—has drawn criticism from allies like France, the U.K., and Canada, who called Israel’s aid measures insufficient and warned of further action if restrictions continue. The situation remains fluid, with both aid and military actions now serving as tools in broader negotiations. New York Times

Vance denies that he canceled Israel trip over Gaza operations, cites logistics. U.S. Vice President JD Vance has seemingly dismissed reports that he canceled a planned visit to Israel to avoid signaling support for its expanded military operations in Gaza. While a senior U.S. official told Axios the visit was dropped due to the escalation, and to avoid contradicting U.S. efforts for a ceasefire, Vance said on Monday he ultimately decided not to go for logistical reasons, after attending the new pope’s confirmation in Rome. Despite earlier reports suggesting the visit was being coordinated, the White House stated no additional travel plans were finalized. “I’m sure we’ll visit Israel sometime in the future, but not today,” Vance said. The canceled visit coincides with Israel’s intensified Gaza campaign and growing concerns that Washington is sidelining Israel in regional diplomacy. Vance, known for his isolationist stance, has previously said America’s interests may differ from Israel’s. Meanwhile, President Trump visited several Middle Eastern countries but skipped Israel, prompting unease among Israeli officials. Times of Israel Axios The Telegraph

Yemen's Houthis announce 'maritime blockade' on Israel's Haifa port. Yemen’s Iran-aligned Houthi rebels declared a “maritime blockade” on Israel’s Haifa port on Monday in response to Israel’s ongoing military operations in Gaza. In a televised statement, Houthi spokesperson Yahya Saree warned all shipping companies that Haifa is now considered a target. The Houthis have previously launched missile attacks at Israeli sites, including Ben Gurion Airport, claiming solidarity with Palestinians, though most missiles have been intercepted. While they’ve paused attacks on U.S. vessels, Israel has retaliated with airstrikes, including a May 6 strike on Sanaa’s main airport that caused casualties and infrastructure damage. Reuters Times of Israel 

Trump plan or not, Israel is letting more Palestinians leave Gaza. In recent months, Israel has begun to ease its border restrictions, allowing around 1,000 Palestinians to leave Gaza for countries like France. The move comes amid severe humanitarian conditions and growing international pressure over the ongoing conflict. Though the Israeli government hasn't officially tied the policy change to U.S. President Trump’s proposal to redevelop Gaza, Interior Minister Moshe Arbel praised the idea, describing departures as temporary evacuations for reconstruction. Critics argue the shift is still selective and politically motivated, with limited transparency. Many Palestinians view leaving Gaza with deep reluctance, fearing permanent displacement akin to the 1948 Nakba. Israel insists exits are based on foreign government requests, but travel remains perilous and restricted. Departing Gazans can take only small bags, and foreign diplomats often provide basic food. Despite mixed motives and pain over those left behind, many hope their departures are temporary, as war continues to devastate the region. Reuters

Gaza children are sent back to war zone following medical care after Jordan rejects requests to stay. Seventeen Palestinian children, including a 5-month-old girl called Nevine Abu Daqa, were recently returned to Gaza after receiving medical treatment in Jordan, despite their families' pleas to stay due to the enclave’s dire conditions. Rights groups warn that forcing them back to a war zone with collapsing healthcare and deteriorating conditions violates international law. Israel’s ongoing blockade has left Gaza's hospitals without food, fuel, or medicine, as airstrikes continue relentlessly. Jordan, which already hosts many Palestinians, is reluctant to accept more, fearing it would support forced displacement. Though Israel currently allows medical returns, Palestinians fear permanent exile if broader resettlement plans, supported by Trump and embraced by Israel, proceed. Associated Press 

Iran says nuclear talks will fail if the US pushes for zero enrichment. Iranian Deputy Foreign Minister Majid Takhtravanchi warned Monday that nuclear talks with the U.S. "will lead nowhere" if Washington continues to demand an end to Iran’s uranium enrichment. He told state media that enrichment is a “national achievement” Iran will not abandon. His comments came after U.S. special envoy Steve Witkoff reiterated Sunday that any new deal must include a halt to enrichment. An Iranian foreign ministry spokesperson, Esmail Baghaei, criticized the U.S. for public statements that contradict private negotiations but confirmed Iran remains engaged. A fifth round of talks is expected in Rome this weekend. Reuters

ASIA & OCEANIA

China aims new JY-27V radar at stealthy targets, such as America’s fifth-gen fighters.  China has unveiled the JY-27V, a new truck-mounted radar system designed to detect advanced stealth aircraft like the U.S. F-22 and F-35. Developed by the state-owned China Electronics Technology Group Corporation (CETC), the JY-27V operates in the very high frequency (VHF) band and features an active electronically scanned array (AESA) antenna. This configuration enhances its ability to locate low-observable targets and guide precision strikes. An upgrade from the earlier JY-27A model, the JY-27V boasts a larger antenna, increased power aperture, and refined algorithms, improving its stealth detection capabilities. Its mobility allows for rapid deployment and withdrawal, bolstering China's air defense against fifth-generation fighters.  South China Morning Post

How could China’s military use AI? An expo gives some hints. At the China Military Intelligent Technology Expo, over 500 Chinese companies showcased how artificial intelligence could enhance military capabilities. Key exhibits included AI-driven tools for combat decision-making, flight training, intelligence gathering, and commander assistance, many tied to operations near the Taiwan Strait. Beijing-based EverReach AI demonstrated systems that learn from training data to improve simulations and planning, while Xiamen-based Utenet offered LLM-powered systems for command coordination and strategic simulations. GoLaxy showed AI that monitors global cyberspace, including tracking online reactions to conflicts. These technologies reflect President Xi Jinping’s directive for the People’s Liberation Army to rapidly adopt advanced technologies, particularly AI. Although many tools remain vague in real-world application, the expo offered insight into China’s ambition to integrate AI into both combat and non-combat military operations, amid rising tensions with Taiwan and strategic rivalry with the U.S. South China Morning Post

Taiwan’s Lai Toughens China Stance, Stoking Debate on Democracy. In his first year as Taiwan’s president, Lai Ching-te has taken a hardline stance on national security, expanding efforts to counter Chinese influence and prepare for potential military conflict. His government has deported Chinese nationals, targeted entertainers working in China, and revived military courts for espionage cases. Critics, including rights groups and academics, warn that these measures risk eroding civil liberties and freedom of speech. Lai’s approval rating has dropped to 32%, with public opinion divided over his policies. Military spending has increased to over 3% of GDP, and businesses are feeling the strain of frequent reservist call-ups. Lai argues these steps are essential amid rising Chinese military threats and calls for international solidarity. However, opposition figures warn of self-censorship and a growing chill across society, including “academia, intellectual circles, and the cultural sector.” While Lai’s approach contrasts with the pragmatism of his predecessor Tsai Ing-wen, analysts say he is drawing firm boundaries to deter Beijing, despite the risks of escalation. Bloomberg 

Taiwan wants peace and talks with China but must strengthen defenses, president says. Marking his first anniversary in office on Tuesday, Taiwan President Lai Ching-te reaffirmed his commitment to peace and dialogue with China, while emphasizing the need to strengthen Taiwan’s defenses. Speaking to reporters at the presidential office in Taipei, Lai stated, “Peace is priceless, and war has no winners,” but warned against illusions about China’s intentions. He reiterated that Taiwan is open to exchanges with China based on “reciprocal dignity,” advocating dialogue over confrontation. Lai’s comments come amid rising tensions, with China labeling him a “crisis maker” and conducting repeated military drills near Taiwan, including “Strait Thunder-2025A.” Reuters

‘Frictions between friends’: Taiwan’s Lai brushes off tariff tensions with Washington. Taiwanese President Lai Ching-te downplayed recent trade tensions with the U.S., calling them “frictions between friends” amid ongoing tariff negotiations. After President Trump imposed a 32% tariff on all Taiwanese imports—later reduced to 10% for 90 days—both sides began talks to resolve the dispute. Lai has struck an optimistic tone, emphasizing trust and dialogue between allies. In a speech, he highlighted Taipei’s strength in semiconductors and green tech, citing Nvidia’s announcement to build an AI supercomputer in partnership with TSMC, Foxconn, and the Taiwanese government. He also welcomed Taiwanese investment in the U.S., referencing TSMC’s $100 billion pledge. However, Lai’s proposal to remove tariffs on U.S. goods drew backlash from local farmers, who fear increased competition. His comments mark a balancing act between national defense, diplomacy, and economic resilience. Associated Press South China Morning Post  

The US and China called a truce on tariffs, but is the battleground expanding? Following the May 11 Geneva truce slashing most tariffs, U.S.-China trade tensions have reignited as Washington imposed a global ban on Huawei’s Ascend AI chips, citing national security. On May 19, 2025, Beijing denounced the move as “unjustified suppression” and accused the U.S. of “long-arm jurisdiction.” Analysts say U.S. President Donald Trump is expanding the trade war into tech, while China counters with export restrictions, legal tools, and moves toward self-reliance. China has also cracked down on strategic mineral smuggling and warned neighbors like Vietnam and Cambodia against aiding U.S. trade efforts. Experts say the current truce is fragile, with broader geopolitical issues—Taiwan, the South China Sea, Ukraine—likely to shape future U.S.-China negotiations. South China Morning Post

China’s Economy Feels the Sting from Trade War. China’s economy slowed in April 2025, with weaker industrial production, retail sales, and investment growth, according to data released May 19 by the National Bureau of Statistics. The downturn came amid peak U.S.-China trade tensions, which have since eased following a 90-day truce that reduced tariffs. Industrial output rose 6.1% year-over-year, down from 7.7% in March; retail sales grew 5.1%, and fixed-asset investment rose 4%. While short-term trade may rise as U.S. importers rush to capitalize on the truce, economists warn that deeper stimulus is still needed for China to meet its 5% growth target amid structural weaknesses. Wall Street Journal 

Okinawans split over whether US bases are worth the burden. Okinawans remain deeply divided over the presence of U.S. military bases, which occupy roughly 25% of the island and host 29,000 American troops. While Tokyo views the $1.4 billion annual cost as essential for national security and the U.S.-Japan alliance, many locals see the bases as a burden, citing decades of sexual assault cases, noise, and environmental damage. A 2023 poll showed 70% of residents believe the military presence is unfair. Some support the bases for economic reasons, particularly in tourism and employment, though critics argue they only contribute around 5% to local income. Mayor Denny Tamaki and scholars contend that land reuse could generate far greater economic value. Strategically, the bases make Okinawa a potential target, especially amid tensions with China. Yet others, especially younger residents, see the U.S. presence as protective or beneficial. The situation reflects a complex mix of geopolitical interests, historical trauma, economic dependency, and evolving public sentiment. Deutsche Welle

Thailand and Indonesia announce strategic partnership, vow to boost economic and defense ties. During Indonesian President Prabowo Subianto’s state visit to Thailand on Monday, the first by an Indonesian leader in 20 years, Jakarta and Bangkok agreed to raise their bilateral relationship to a strategic partnership. Marking the 75th anniversary of diplomatic ties, both nations committed to expanding cooperation in trade, investment, tourism, food security, defense, and cybersecurity. Subianto said they spoke about bolstering maritime security coordination, counterterrorism efforts, cybersecurity collaboration, joint military drills, and “fostering defense industry partnerships.” They also pledged stronger efforts against transnational crimes such as online scams, human trafficking, and drug trafficking. Subianto praised Thailand’s role in addressing Myanmar’s ongoing crisis, calling for inclusive national dialogue and reaffirming ASEAN’s unity and centrality. The leaders underscored the importance of peace and regional stability. Associated Press 

AFRICA

Sudanese army chief appoints first prime minister since war began over two years ago. Sudan’s army chief, Gen. Abdel-Fattah Burhan, has appointed Kamil al-Taib Idris as the country’s first prime minister since civil war erupted in April 2023, a move aimed at forming a transitional government following recent military gains over the rival Rapid Support Forces (RSF). Idris, a legal expert with no known political affiliations, is seen as a potentially unifying figure amid Sudan's deep crisis. The war has killed at least 20,000 people, displaced nearly 13 million, and left half the population facing hunger. Idris replaces Abdalla Hamdok, who resigned in 2022 amid political deadlock and protests. Meanwhile, the RSF and its allies have proposed their own political charter from Kenya, advocating for a decentralized, democratic state. Idris previously served as Sudan’s legal adviser at the U.N. and is a member of the U.N. International Law Commission. Associated Press Bloomberg 

Families find a new danger in Sudan's battered capital, unexploded shells. In the Sudanese capital of Khartoum, residents returning to war-ravaged neighborhoods are facing a deadly new threat: unexploded ordnance left behind in the wake of two years of civil war. Ammunition, missiles, and drones are scattered across homes, schools, shops, and streets, posing serious risks. Clearance teams, including Sudanese and UN personnel, are working to remove these dangers but are critically understaffed and underfunded, especially following U.S. aid cuts. So far, over 12,000 devices have been destroyed, but thousands more remain. At least 16 civilians have recently been killed by munitions explosions, though the actual toll may be higher. Volunteer groups are helping, often handling live shells with minimal equipment. Authorities say $90 million is needed to begin proper demining. Despite the risks, over 100,000 people have returned to Khartoum since the army reclaimed it from the Rapid Support Forces, which still control parts of western Sudan and now rely on drone attacks. Reuters

Rebels in Captured City Force Residents to Clean Sewers and Morgues at Gunpoint. Since M23 rebels seized Goma, eastern Congo’s largest city, in January 2025, residents have been forced to clean sewers, markets, and morgues at gunpoint under the rebels' authoritarian rule. The Rwandan-backed group has replaced all state functions, using forced labor, extortion, and violent repression to consolidate control. Human Rights Watch reports executions of civilians suspected of army ties. M23 imposes steep fines, conscripts locals, and taxes mineral exports—earning up to $800,000 monthly from coltan alone. The Congolese government has lost access to Goma’s financial system, deepening the region’s collapse. Rwanda denies sending troops, though UN reports say otherwise. Aid access has been severely disrupted, and businesses like Twangiza Mining have halted operations due to rising rebel tax demands. Despite claims of restoring order, residents and human rights groups describe the occupation as brutal and destabilizing, with the rebels modeling their rule on Rwanda's militarized governance. Wall Street Journal

South Africa’s President to Challenge Trump on Afrikaner Refugees. South African President Cyril Ramaphosa will visit the White House on Wednesday to challenge President Donald Trump’s claims that white Afrikaners are facing genocide and to reset strained U.S.–South Africa ties. Ramaphosa aims to counter Trump’s refugee policy—under which 59 Afrikaners were admitted to the U.S. this month—by urging an independent investigation and highlighting actual farm violence data, which shows most victims are Black. He also plans to pitch economic partnerships, including Tesla charging stations and SpaceX launch sites, to Elon Musk, who may attend the meeting. Additionally, Ramaphosa will confront Trump over Israel’s conduct in Gaza, which South Africa has labeled genocidal, and propose a new bilateral trade deal. The visit underscores Ramaphosa’s challenge in defending South African policies while appealing to Trump’s business priorities amid broader geopolitical tensions. New York Times Reuters Al Jazeera  

After violent clashes, at least 58 corpses are found in Libyan hospital, ministry says. At least 58 unidentified corpses were discovered on Monday in a hospital morgue in Tripoli's Abu Salim neighborhood, which was previously under the control of the Stabilization Support Apparatus (SSA) militia. The bodies, some burned and many decomposed, are being investigated by Libya’s interior ministry. The discovery follows the death of SSA leader Abdulghani Kikli (Ghaniwa) last week, which led to the militia's collapse and sparked violent clashes with factions loyal to Prime Minister Abdulhamid al-Dbeibah. These clashes, the worst in Tripoli in years, killed at least eight civilians. A separate group of nine unidentified corpses was also recently found in another SSA-controlled hospital. Dbeibah has ordered the dismantling of armed groups, calling it an "ongoing project," and has begun demolishing former militia strongholds. Libya remains unstable following years of civil conflict since the fall of Muammar Gaddafi in 2011. Reuters

CYBER, TECH & MARKETS

Members of Congress vow not to split Cyber Command, NSA. Legislators speaking during a hearing of the House Armed Services Subcommittee on Cyber, Innovative Technologies and Information Systems have expressed opposition to ending the dual-hat relationship between the National Security Agency (NSA) and the U.S. Cyber Command.  Advocates for maintaining the current agency arrangement say the military can benefit from NSA's unique intelligence insights and resources, leading to faster decision-making and operational actions. Opponents argue that the combined NSA-Cyber Command roles are too powerful to be vested in one person.  Subcommittee chair Rep. Don Bacon, said in opening remarks on Friday that congressional Armed Services Committees are strongly opposed to ending the dual-hat relationship. Ranking subcommittee member Rep. Ro Khanna echoed Bacon's remarks, noting that sustaining the dual hat arrangement "is a bipartisan position," adding that "the support in Congress is very strong for keeping those two departments together.”  DefenseScoop

The Tech Industry Is Huge—and Europe’s Share of It Is Very Small. Europe is falling significantly behind the U.S. and China in the global tech revolution, largely due to a risk-averse business culture, complex regulations, limited venture capital, and slow-moving bureaucracies. Despite strong research universities and engineering talent, Europe has failed to produce major tech giants comparable to Google or Apple, and only four of the world’s top 50 tech companies are European. Entrepreneurs cite slow decision-making, restrictive labor laws, and burdensome regulations—particularly around AI—as key barriers to growth. Many promising startups either relocate to the U.S., partner with American firms, or are acquired by them. While U.S. and Chinese firms aggressively expand their influence, European efforts are hampered by fragmented markets, outdated industries, and a focus on regulation over innovation, raising existential concerns about the continent’s economic future.  Wall Street Journal 

Flurry of AI initiatives involving Gulf states signals economic goals beyond region. With the launch of its new AI enterprise, Humain, Saudi Arabia, along with the Emiratis, has made AI a key component of their economic transformation and geopolitical influence. Humain resembles G42, the UAE's AI firm backed by Microsoft Corp., which plans to use its advanced chips to compete with CoreWeave. Another startup, the Abu Dhabi data analytics firm Presight AI, whose majority shareholder is G42, is a regional competitor to Palantir and is involved in smart city projects from Kazakhstan to Albania. Beyond deals announced by Nvidia and OpenAI, U.S. tech firms like Google and Oracle Corp. are also joining the effort. Oracle has committed to invest $14 billion over 10 years in Saudi Arabia for cloud services and AI technology.  Scale AI, a startup backed by Amazon, is planning an office in Riyadh by the end of the year.  Trevor Thompson, Scale AI's global managing director, commented that with the recent string of tech deals with the Gulf states, “outside of the US and China, I think this is really the fastest growing region for AI adoption.” Bloomberg

Nvidia joins investment initiative for Europe’s largest AI data center campus. Nvidia and MGX, a UAE advanced technology investor, are partnering with French companies to establish Europe's largest AI data center campus. The coalition plans to construct a campus near Paris that will have a capacity of 1.4 gigawatts. The initiative stems from a broader French Emirati AI cooperation agreement in February that featured Emirati investments of up to $56.4 billion in French data centers.  Other partners in the AI campus include the Bouygues SA conglomerate, EDF Group, an energy operator, and Ecole Polytechnique, a science and engineering university.  The data center campus represents a $9.5 billion investment, with the first phase expected to be operational in 2028.  MGX has previously backed OpenAI and xAI, and is overseen by Sheikh Tahnoon bin Zayed Al Nahyan, who also chairs the UAE's G42 AI startup. Bloomberg

Nvidia CEO announces initiatives to expand options, interoperability of data centers. Speaking at the Computex trade show in Taiwan, Nvidia CEO Jensen Huang announced plans that will incorporate rivals' chips in data centers built around its technology. The move was seen as recognition by Nvidia of the growth of in-house semiconductor development by major clients such as Microsoft and Amazon.  Huang also introduced NVLink Fusion, a new system that expands the building of customized AI infrastructure. NVLink Fusion products create the option for users to combine their own central processing units with Nvidia’s AI chips or twin Nvidia silicon with another company’s AI accelerator.  Huang also announced DGX Cloud Lepton, a service that makes its AI chips available on various cloud platforms for use by AI developers.  In his keynote address, Huang also provided an update on the timing for Nvidia’s next-generation GB300 server systems, which he said will be ready for release by the third quarter of 2025.  Bloomberg Wall Street Journal Cybernews Reuters

U.K. legal aid agency hacked with potential exposure of data of 2 million clients. Britain's Ministry of Justice has confirmed that hackers accessed a substantial data store containing information from applicants for legal aid. The unidentified hacking group, which claims to have collected data on more than 2 million clients of the Legal Aid Agency, has threatened to post online the information in what appears to be one of the most significant data breaches impacting the U.K. criminal justice system.  A security expert noted that the targeted population "will include some of the most vulnerable people in our society."  A spokesperson for the National Crime Agency confirmed the agency is aware of the incident and is responding in collaboration with the National Cyber Security Centre and the Justice Ministry.  The government has obtained a legal injunction against the hackers, or any party involved in distributing the data, although injunctions rarely deter criminals operating anonymously and from hostile jurisdictions.  The aid agency's online services have been temporarily shut down as the breach is investigated.  The Record  Bloomberg

Russian ‘Fancy Bear’ hackers probing Ukraine, East Europe targets to extract sensitive data. The ESET cybersecurity firm has identified a sophisticated cyber espionage campaign, codenamed RoundPress, directed against Ukrainian organizations via webmail vulnerabilities and SpyPress malware.  The campaign is being carried out by Russia's Fancy Bear threat actors — aka Sednit — with the aim of exfiltrating confidential data from vulnerable webmail servers like RoundCube.  The RoundPress operation is employing spearphishing emails to exploit vulnerabilities in various webmail platforms.  The campaign injects malicious JavaScript code, dubbed SpyPress, into targeted browsers.  ESET researchers say the primary targets of Operation RoundPress in 2024 were Ukrainian governmental entities and defense companies in Bulgaria and Romania, some of which are producing Soviet-era weapons for Ukraine.  Researchers also observed targeting of national governments in Greece, Cameroon, Ecuador, Serbia, and Cyprus.  Hackread

U.S. officials question Apple deal to incorporate Alibaba AI tech in China-market iPhones. White House officials and members of the House Select Committee on China have asked Apple executives for details of a deal involving the incorporation of Alibaba-powered AI features into iPhones sold in China. U.S. officials have raised questions about the data that would be shared with Alibaba and if the proposed deal involves Apple making any commitments to Chinese regulators.  Ranking member of the House committee, Rep. Raja Krishnamoorthi, described Alibaba as "a poster child for the Chinese Communist Party's military-civil fusion strategy."  A Bloomberg Intelligence analyst said that U.S. resistance to a deal with Apple could impact Alibaba's cloud services revenue as well as the iPhone's market share in China.  An industry observer said Apple has much more to lose than Alibaba because “ultimately Apple will need an AI partner in China or its phones will lose competitiveness.” BloombergTechCrunch

China reports 50 percent surge in April in industrial robot production. China's National Bureau of Statistics has reported that the country's production of industrial robots increased by over 50 percent in April.  Over 71,000 industrial robots were produced nationwide in April, improving on the 16.7 percent rise reported in March and the 27 percent growth of the January-February timeframe.  Robot output increased 34.1 percent over the same period last year.  Activity in the sector is reflected in a manufacturing push to integrate humanoid robots in factory settings.  UBTech Robotics of Shenzhen plans to put humanoid robots into mass production by the end of 2025 while Unitree Robotics of Hangzhou has opened a new factory this year to meet the demand for quadruped robot dogs and humanoid robots.  South China Morning Post

China reports expanding use of domestic satellite navigation system over GPS. China's version of the Global Positioning System (GPS), the BeiDou satellite navigation system, grew by more than 7.7 percent in 2024, reinforcing its place in the domestic market with economic output of $79.9 billion last year.  The system is compatible with 288 million smartphones, primarily domestic brands from producers such as Huawei and Xiaomi.  BeiDou is used to track locations more than 1 trillion times each day and China's leading navigation apps, Baidu Maps and Amap, have used BeiDou to plot journeys covering 4 billion km daily.  As a hedge against potential loss of U.S. services like GPS, BeiDou is expanding its primary market of smartphones and in-vehicle satellite navigation systems to wearables, drones, electric bikes, and robots. A sector expert explained that the GPS system “in China is now either not supported on some domestically made devices or deliberately not used due to security reasons, especially when a government agency, state-owned enterprise or military unit needs navigation services or extra-precise mapping.”  South China Morning Post

Trump inks bill cracking down on deepfakes, non-consensual sharing of sexual imagery online.  President Donald Trump on Monday signed the Take It Down Act, a bipartisan law targeting the non-consensual dissemination of explicit sexual imagery online, including AI-generated deepfakes. The law makes it a crime to distribute such images without consent, with penalties of up to three years in prison. It also requires social media platforms to remove the content within 48 hours of a victim’s request and take action to stop its spread. First Lady Melania Trump, who helped champion the legislation, called it a major victory for families and online safety. While some critics voiced concerns over potential free speech issues, the law was widely supported by lawmakers and tech companies amid growing calls to address online exploitation. Bloomberg CNN The Guardian  

Severed Fingers and ‘Wrench Attacks’ Rattle the Crypto Elite. A wave of violent abductions targeting cryptocurrency executives and their families has shaken the crypto elite worldwide, with a surge in so-called “wrench attacks”—physical assaults aimed at forcing victims to hand over digital assets. On May 14 in Paris, masked men attempted to kidnap the daughter of Paymium’s CEO. Similar incidents have occurred globally, including severed fingers, home invasions, and ransom videos. Victims often include high-profile individuals whose wealth or identities were exposed through data breaches, like the 2020 Ledger hack. As crypto values soar—bitcoin is up 54% in a year—criminals have shifted from hacking to physical coercion. After meeting crypto leaders, French Interior Minister Bruno Retailleau announced new security measures. Meanwhile, firms like Ledger face lawsuits, and executives are removing personal data from public records. One victim, Ledger co-founder David Balland, had a finger cut off during a ransom ordeal. Survivors and critics say authorities are struggling to curb this growing criminal threat. Wall Street Journal Politico EU 

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