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Tech Rallies, But Remains Inside the Lagging Quadrant

A quick look at the Relative Rotation Graph for US sectors reveals that the Technology sector is still the main driving force for the market. Technology now makes up more than 30% of the market capitalization of the S&P 500, so it significantly influences the price (movement) of the S&P 500 index.

On this weekly RRG above, the XLK tail can be seen heading further into the lagging quadrant, together with XLC and XLE.

After dipping to the 540 area at the end of last week, the market has recovered some of that ground so far this week. This move has now established the area around 540 as support, while overhead resistance still remains intact around 565. A break of either level will very likely ignite an acceleration in the direction of the break.

On the weekly RRG, this move has had no material impact so far.

The Daily RRG Shows Some Improvement

Only when zooming in on the daily Relative Rotation Graph can we see this week’s improvement.

What is interesting to see on this daily RRG is that the same three sectors that are inside the lagging quadrant on the weekly RRG are also inside the lagging quadrant on this daily RRG. XLC and XLE clearly confirm their relative downtrends by rotating at a negative RRG-Heading.

The uptick in tech stocks so far this week has caused an improvement in relative momentum, but not (yet) in relative strength.

But It’s Based On a Narrow Foundation

Zooming in on the technology sector members and using the table below to examine their performance over the last five trading days, we find the RRG provides some insight into where this jump in performance is coming from.

With XLK up 5% so far this week, only 9 out of the 50 stocks in this group outperform SPY. The other 41 are below XLK. With NVDA being one of the top-ranking stocks, this group is already pulling performance up by its market capitalization, especially because MSFT, the other big name inside XLK, is only 0.5% below XLK.

Therefore, the foundation of this tech rally so far is very narrow. Again.

Based on these observations, I will judge the current tech rally as a recovery within an established relative downtrend.

Defensives Pushing Into Leading RRG Quadrant

On the opposite side of the spectrum, three sectors seem very well positioned for further outperformance. XLV (Health Care), XLF (Financials), and XLP (Consumer Staples) have all just entered the leading quadrant, which means a turnover from a relative downtrend into a relative uptrend against SPY. All three are rotating at a positive RRG-Heading, and all three are showing an increasing RRG-Velocity.

Looking at their individual charts combined with relative strength and their RRG-Lines, one sector stands out with a setup we have seen before.

Consumer Staples

At the end of 2021, the consumer staples sector ended a prolonged period of underperformance (20 months), marked by the first vertical dashed line in November 2021, when the RS-Line broke above a falling resistance line. By then, the JdK RS-Momentum line had already crossed above the 100 level, pushing the XLP tail into the improving quadrant.

A few weeks later, the JdK RS-Ratio line also crossed above 100, and the tail moved into leading. Shortly after that move, the market started to drop, and XLP started to serve its role as a defensive sector, outperforming SPY for more than a year while the market (SPY) dropped 20%.

Fast Forward to the Present

The RS-line of XLP has broken above its falling resistance after a downtrend that started at the end of 2022, so almost two years ago — 21 months, to be exact. RS-Momentum rose above 100 a few weeks after that event, and this week, RS-Ratio also crossed above 100, pushing the XLP tail into the leading quadrant.

The price moves on the SPY chart are almost identical on both occasions. There is a peak when the RS line crosses upward, and a second peak shortly after the RS-ratio line crosses above 100.

Given the defensive nature of the Staples sector and the analogy that seems to be playing out at the moment, I am keeping my cautious/careful approach to the markets.

RISK > POTENTIAL REWARD

#StayAlert, –Julius


For decades, life choices were bleak for many in El Salvador: Leave or die. Dubbed the “murder capital of the world,” there was an average of a homicide an hour in early 2016, in this country of just 6 million people — two million fewer than call New York City home. Gang warfare drove an exodus of Salvadorans, mostly north to the US. But now, the security situation is so different that people are returning, even after building good new lives over decades in the US.

Deported, and now grateful

When Victor Bolaños and his wife, Blanca, lost their asylum case in a US immigration court, their ‘American dream’ came crashing down. When they agreed to accept a voluntary departure order, the couple knew they had to leave behind the life they had been building for over 15 years in Denver and return to their native El Salvador and the conditions that had made them flee.

“We came back 6 years ago, and everything was unsafe,” Victor recalls, seated in the modest home the couple now shares in the capital, San Salvador. At 65, his voice carries the weight of what they faced upon their return in 2018. “When we came back the situation seemed difficult because of the insecurity, lots of robberies, lots of gangs.”

But a couple of years after their return, something unexpected happened. The relentless daily violence eased, and streets began to calm. The suffocating fear that had defined daily life started to fade.

El Salvador, once synonymous with violence and waves of emigration, saw a dramatic drop in crime. For many citizens, this shift offered more than just safety — it offered much needed hope. The world, too, took notice. Suddenly, the small Central American nation seemed to be reinventing itself under Bukele, who was elected President in 2019 at the age of 37. When his New Ideas party later took control of Congress, it was easier for rules to be bent or broken. Bukele won re-election, even though the country’s constitution had barred anyone standing for a second term. A “temporary” state of emergency granting authoritarian powers of detention is now more than two years old. Human Rights Watch says that even children are being caught up in “severe human rights violations.”

Yet in San Salvador, Blanca sits in her living room, carefully crafting handmade jewelry. “Now, one feels safe, freedom is felt in our country,” she says.

She and her husband, Victor, say the improved security has allowed them to start a small jewelry business from their home, something that once seemed impossible. “Now you can have a business, if you look, there are entrepreneurs everywhere in the country,” Blanca says, reflecting on how, not long ago, gang extortion would have crippled any such venture.

For decades, people from Central America, particularly from the Northern Triangle of El Salvador, Honduras and Guatemala, have fled violence and insecurity, seeking protection and opportunity in the US. But new data from US Customs and Border Protection (CBP) reveals a surprising trend — fewer Salvadorans are now heading north.

In 2022, CBP recorded more than 97,000 encounters with Salvadoran citizens at the Southern Border. By 2023, that number fell to just over 61,000, and 2024 is on track for an additional decline compared to 2023.

While these numbers may appear promising, the root causes of migration remain complex.  Many Salvadorans still leave their country due to economic hardship and lack of opportunity. Although El Salvador’s economy has shown slow, steady growth since Bukele took office, according to the World Bank, the nation still struggles to provide sufficient opportunities for its citizens.

Leaving Houston to build a beach resort

For the past 27 years, Diego Morales has built a life far from home. The 48-year-old real estate investor, husband, and father of three left El Salvador in 1997, chasing the safety, stability, and opportunity that the US had to offer. The idea of returning had never crossed his mind — until the grim stories of violence that had haunted his homeland for so many years were replaced by tales of newfound safety.

Diego’s childhood was marred by a constant sense of danger.  “I’d wake up, go to school and find dead people on the street,” he recalls, his voice bearing the burden of the painful memories as he sits inside his well-kept, suburban Houston home.

But today, El Salvador is no longer the country he fled. “Now it’s safe and many people are going back,” Diego says, his words a reflection of the optimism spreading among Salvadorans and others abroad.

The country’s reputation has dramatically shifted. Once known for violence, El Salvador is now attracting waves of investors. “Many people, even Americans … we have friends from Florida, from Austin, from Hawaii, looking to buy (property),” he says, a sign of just how far the nation has come.

Diego himself is preparing for a return to the land he once left behind. He has already invested in Tamanique, his hometown about an hour’s drive from the capital, where he built a beach resort that he now runs remotely.

Along the Salvadoran coastline, you can find beach towns like El Tunco, El Zonte, and La Libertad buzzing with new construction, capturing the attention of tourists and real estate developers eager to capitalize on the country’s rebirth. Cliffs that were once gang lookouts are now being considered scenic locations for hotels.

“As soon as President Bukele brought security to this country, everything went up (in value),” Diego says, adding that land that cost around $100,000 five years ago is now going for ten times that price.

And the Salvadoran dream is not just his — his 23-year-old son, Jairo, a natural-born US citizen also plans to follow in his father’s footsteps. “We’ve had conversations… it’s already starting,” Jairo says, his eyes lit with the promise of returning to his roots.

El Salvador’s government is courting those who left with a program of tax exemptions on belongings and vehicles for citizens who return home. Since 2022, nearly 19,000 Salvadorans have moved back under this initiative, according to government figures.

‘No mercy’ for gang members

A decade or so ago gangs like MS-13 and Barrio 18 terrorized communities, extorting businesses and waging brutal turf wars over control of neighborhoods, and El Salvador was the most violent nation in the Western Hemisphere, according to InSight Crime.

But something extraordinary has happened since then. By 2022, the number of murders began to drop dramatically, and the next year there were 154 homicides — a staggering 97.7% decrease compared to 2015, according to government figures. Bukele even tweeted that his country’s homicide rate was the lowest in all the Americas.

The sharp decline followed Bukele bringing in emergency measures giving police the power to detain suspects without charges for up to 15 days and deploying the military across the nation. The new rules, which are still in effect, allowed an unprecedented crackdown on gang activity, with more than 80,000 people detained since the state of emergency began in March 2022.

Central to this effort is the newly constructed “Terrorist Confinement Center,” or Cecot, a massive prison complex with the capacity to hold up to 40,000 inmates. The maximum-security prison currently holds 14,000 gang members — all accused of having murdered at least one person. Images from Cecot show tattooed men with their heads shaved in a warehouse-sized concrete room filled with metal bunks, or sitting in tight rows on the ground, wearing nothing but white shorts, their heads bowed and hands behind their backs. And, according to Salvadoran authorities, those sent to Cecot will never be released.

Villatoro’s words echo the brutal reality El Salvador has faced for years. He claims that gang members were required to kill at least one person as part of their initiation into groups like MS-13 or Barrio 18.

“Imagine a serial killer in your state, in your community, being released by a judge, how would you feel as a citizen?” he asks. “We don’t have facts that someone can change the mind of a serial killer, and we have more than 40,000 in El Salvador.”

The government’s hardline approach was not spontaneous; it was meticulously planned. Villatoro and members of Bukele’s cabinet had begun studying the gangs as early as 2017.

“Before you start a war, you have to know your enemy,” he explained.

While the government’s relentless campaign has been praised by many for restoring peace, it has also attracted significant criticism. Human rights groups have accused the Bukele administration of widespread abuses in its battle against the gangs. Villatoro, however, dismisses these claims, asserting that the focus should be on the victims, not the criminals.

“What about the society, the good citizens that you have in the country … Where were (these human rights groups) when we lost 30 Salvadorans in our country a day?” he asks pointedly.

Bukele himself has been unflinching in his rhetoric. In 2022, he famously challenged human rights advocates, telling them to “take” the gang members if they cared so much. “Come pick them up — we’ll give them to you, two for the price of one,” he declared.

The president’s iron-fist approach to security has earned him praise from some US conservatives, who have openly applauded Bukele’s tactics. However, at this year’s Republican National Convention, former US President Donald Trump took an unexpected swipe at Bukele when addressing the country’s newfound safety.

“In El Salvador, murders are down 70 percent. Why are they down? They’re down because they’re sending their murderers to the United States of America,” Trump claimed, offering no evidence to support his statement.

“No,” Villatoro replied. “The problem with that, you (Trump) don’t have facts, you don’t have evidence, but instead, we have evidence of where we put our terrorists,” the minister said, referring to Cecot, the massive prison where thousands of gang members are held

In other detention centers, lower-ranking gang members and other criminals are tasked with fixing what the gangs broke and erasing their presence. Some inmates are sent to rebuild homes while others smash tombstones commemorating underworld leaders.

Jailed ‘for having long hair and tattoos’

In early 2024, Juan Carlos Cornejo found himself swept up in Bukele’s mass arrests after an anonymous call to the police accused him of “illicit association.” Hours later, he was in jail, confused and terrified.

Juan Carlos believes he was targeted simply because of how he looked.

“I was accused of illicit association, but I have nothing to do with that. I like music, rock, so my appearance was different. I had long hair,” he said from his dimly lit, mosquito-ridden home in Santa Ana, a city about 35 miles from the capital. “I have tattoos, but these are artistic expressions,” he said, his frustration palpable.

“There was no investigation, nothing,” he claims.

Juan Carlos was in prison for five long months. Before his detention, he had been working as a veterinary assistant, treating sick or injured pets, and he insists he had never been arrested before.

His release came only after Socorro Jurídico Humanitario (SJH), a group dedicated to providing legal counsel in cases of human rights violations, successfully filed a writ of habeas corpus on his behalf. But Juan Carlos’ story is far from unique. According to SJH, between 33,000 and 35,000 people have been “detained in an arbitrary manner without any justification” since the state of emergency began.

Despite widespread criticism of these tactics, the Bukele government stands firm. Officials argue that these measures — though harsh — are done lawfully and are necessary to secure the country’s future. And they highlight efforts to rehabilitate tens of thousands of inmates convicted of lesser crimes.

Armed soldiers on the streets — and thanked

Critics argue that Salvadorans have traded freedom for security, but the people we met say they have never felt so free. There’s the mother laughing as she takes her skipping toddler to the park, not afraid of getting caught in a gun battle or stumbling over a corpse or having to pay the gang extortion “rent” to simply enter her own neighborhood. There’s the father, no longer worried his son will be recruited by gangs. Unlike in places like Cuba or China, where residents can seem nervous to criticize repressive regimes, in El Salvador the optimism appears real.

Teresa Lilian Gutierrez is caught in the middle, and her experience shows the many complexities of life in El Salvador today.

“Now it’s safe, it’s calm,” she told us on a street in La Campanera, once among the most dangerous neighborhoods in San Salvador. “Before no one would visit, not even family.”

But her son who helped her financially is not able to visit, she said.

“He’s been detained for two years in Mariona (prison). He is not a gang member, he was taken in the state of emergency,” she said, showing pictures of her son working as a cashier in a restaurant.

“I ask the government to get him out, please … I spoke to the lawyer last year because they were going to release him, but she said no, they’re not going to give him to me,” she said.

President Bukele enjoys one of the highest approval ratings in Latin America, a sentiment echoed by the people we meet while with the Salvadoran army touring a once gang-infested area outside San Salvador.

Armored cars and uniformed soldiers are no longer terrifying reasons to run but chances for curious children to ask questions or for supporters to grab a selfie.

“It was so bad before, you couldn’t go anywhere,” one woman says, beaming as she snaps a picture with Defense Minister René Merino, who has become a symbol of the government’s hardline security strategy. A few years ago, no one in this area would have looked members of the police or army in the eye, Merino said, but now it’s all changed. Moments later, another resident steps forward, and thanks the minister and poses for a photo, apologizing for interrupting our interview.  In what feels more like a victory parade  than a law enforcement patrol, we stop dozens of times over the course of a couple hours as residents excitedly relay their gratitude.

But the looming question is: what happens after 2029, when Bukele’s term comes to an end? In a recent interview, the president declared he would not seek a third term, leaving many to wonder about the future.

For some, like Blanca Bolaños, the answer is already clear. “I voted for Nayib this time, and the last, and if he runs again, I will vote for him,” she says with unwavering conviction.

As the country grapples with its transformation, Bukele’s legacy and controversial tactics will be tested. Whether El Salvador’s newfound stability endures or falters, only time will tell. But for now, among those who say their lives have been changed, there is little doubt: they believe in Bukele, and they would follow him again.

This post appeared first on cnn.com

Russian President Vladimir Putin told reporters Thursday that allowing Ukraine to use long-range missiles to strike inside Russia would be seen by Moscow as NATO’s direct entry into the war.

“This will mean that NATO countries – the United States and European countries – are at war with Russia. And if this is the case, then, bearing in mind the change in the essence of the conflict, we will make appropriate decisions in response to the threats that will be posed to us,” he said.

According to the Russian president, “the Ukrainian army is not capable of using cutting-edge high-precision long-range systems supplied by the West” without Western assistance in targeting.

The United States already does provide intelligence to Ukraine, and has previously assisted in the targeting, although not with the long-range systems currently being considered.

According to Center for New American Security Senior Fellow Dr. Stacie Pettyjohn, there may also be other intelligence resources available to Ukrainian forces, including commercial satellite imagery, depending on the target.

In a press conference on Thursday, Secretary of State Antony Blinken reiterated that, as part of continuing military assistance to Ukraine, the United States provides intelligence to Ukrainian forces, but declined to answer whether the US would increase its intelligence sharing.

The United States first provided Ukraine with long-range Army Tactical Missile System (ATACMS) missiles, which have a maximum range of approxmiately 186 miles, in October of 2023. Kyiv has long advocated its backers to allow the use of weapons systems that would provide a longer reach inside Russian territory.

Michael Callahan, Natasha Bertrand, and Oren Liebermann contributed reporting.

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The Israel Defense Forces (IDF) said Brigadier General Yossi Sariel, who led its 8200 intelligence unit, has informed them he will “conclude his role in the near future.”

The country’s public broadcaster Kan and several other media outlets have published excerpts of his resignation letter stating he feels personally responsible for not preventing Hamas from launching the deadliest attack on Jews since the Holocaust.

“On October 7th at 06:29 I did not fulfill the task as I expected of myself, those at my command and commanders expected me and the citizens of the state I love so much,” the letter said, according to Kan.

“Today, in accordance with the state of the war, the processes of the gathering ranks and the building of the unit’s resilience, and after the completion of the initial investigative processes, I request to fulfill my personal responsibility as the commander of the unit on October 7 and at a time to be determined by my commanders to pass the baton to the next shift,” Kan reported Thursday.

Shortly after the attack, a number of top defense and security officials came forward to take responsibility, to some extent, for missteps that led to Hamas’ attack on Israel, which left 1,200 people dead and another 250 taken hostage.

On October 16, the head of Israel’s domestic security agency, Shin Bet, tasked with combating terrorism, wrote a statement saying: “The responsibility is on me.”

“Despite a series of actions we carried out, we weren’t able to create a sufficient warning that would allow the attack to be thwarted,” Shin Bet chief Ronan Bar said.

Later that month, Israeli Prime Minister Benjamin Netanyahu also received sharp public criticism after he accused security chiefs in a later-deleted social media post of failing to warn him about the impending attack.

In a May interview with Dr. Phil McGraw on the “Dr. Phil Primetime” show, Netanyahu admitted there were political and military failures. “The government’s first responsibility is to protect the people. That’s the ultimate enveloping responsibility. People weren’t protected. We have to admit that,” Netanyahu told Dr. Phil.

When asked if he held himself to that standard and failed in some way he added, “I hold myself and everyone on this. I think we have to examine how it happened. What was the intelligence failure?”

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South Korea has for decades been known as the world’s largest “baby exporter” – sending hundreds of thousands of children overseas after the country was ravaged by war and many mothers left destitute.

Many of those adopted children, now adults scattered across the globe and trying to trace their origins, have accused agencies of corruption and malpractice, including in some cases forcibly removing them from their mothers.

A report released earlier this week by a Korean government commission supports those claims and uncovers new evidence on the coercive methods used to force mothers to give up their children.

The Truth and Reconciliation Commission, tasked in 2022 with investigating the claims, found that more than a dozen babies in several government-funded care facilities in the 1980s had been forcibly taken to adoption agencies, sometimes “on the day of birth or the next day.”

It examined three care facilities in the cities of Daegu and Sejong where, in 1985 and 1986, 20 children in total were transferred to adoption agencies. Most of those children were adopted overseas in the United States, Australia, Norway and Denmark.

The commission is still investigating cases allegedly involving falsified paperwork. An interim report is expected to publish later this year.

Searching for their roots

More than 200,000 South Korean children have been adopted overseas since the 1950s following World War II and the Korean War, according to authorities. Many of those children were adopted by families in the US and Europe.

While adoptions continue today, the trend has been declining since the 2010s after South Korea amended its adoption laws in an effort to address systematic issues and reduce the number of children adopted overseas.

For a generation of adoptees who have grown up in often homogenous, majority-White populations, some say they feel both disconnected from their Korean roots and unable to fit in. It’s what prompted a search for their biological families.

Some of those adoptees say they have mixed emotions over the commission’s findings, feeling both horror and hope that the investigation will shed light on what many long suspected.

“It’s truly terrifying to hear how systemic these issues were, but I wouldn’t say it’s necessarily surprising,” said Susanné Seong-eun Bergsten, who was adopted from South Korea and grew up in Sweden.

Bergsten’s biological family found her when she was a young adult, and while there was no sign that her paperwork was falsified, she says she can understand the struggles having been involved in advocacy for Korean adoptees.

“Us adoptees, we’re all kind of told, these adoptions are for our own good and we should all feel grateful for escaping poverty,” she said, calling the reality “far more complex.”

“Our adoption papers often lack important information which could give us more context for adoption, like our cultural background, stigma, and the individual struggles that our parents faced in the post-war era,” she said.

“[It] validates what Korean adoptees have known for decades within our community: The narrative that Korean mothers chose of their own volition to relinquish their children is, in all too many cases, a fiction,” he said.

While both Zastrow and Bergsten said it marked a promising step in the right direction, Bergsten urged the government to continue taking accountability and offer reparations to adoptees and their families.

“Adoption touches every level of Korean society, every economic class,” said Zastrow. “There is still much about Korean adoption that has not been formally acknowledged.”

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New pictures of North Korean leader Kim Jong Un touring what state media said is a uranium enrichment facility have given an extremely rare glimpse inside the isolated nation’s closely guarded nuclear weapons program.

According to a report from Korean Central News Agency (KCNA) on Friday, Kim visited the facility – a bright, sterile warehouse filled with long rows of cylindrical machinery – which is used to produce weapons-grade nuclear material for the North’s growing arsenal.

The report comes as North Korea continues to ramp up its illegal nuclear weapons program and strengthens relations with Russia, deepening widespread concern in the West over the isolated nation’s direction under Kim.

The location and exact date of Kim’s visit to the site were not disclosed in the report, but the purpose of his inspection was clear, according to KCNA: to lay out a “long-term plan for increasing the production of weapon-grade nuclear materials.”

Experts say the images – which show Kim flanked by men in military uniforms and crisp white lab shirts – underscore North Korea’s growing confidence in its position as a nuclear power.

“Kim is exceptionally confident these days and he’s particularly interested in making sure that his calls for a massive increase in nuclear capabilities are not misinterpreted,” said Ankit Panda,  Stanton Senior Fellow at the Carnegie Endowment for International Peace, adding “these disclosures lend credibility to North Korea’s plans and demonstrate that they’ve come a long way in their enrichment capabilities.”

It’s a theme the North Korean leader has touched on frequently in recent years, including this week.

In a speech celebrating the 76th anniversary of North Korea’s founding on Monday, Kim pledged to “exponentially” expand the regime’s nuclear arsenal, reiterating bellicose rhetoric he has used in the past.

During his visit to the purported enrichment facility, Kim expressed repeated satisfaction with the technical capabilities of North Korea’s nuclear sector and emphasized the need to increase the number of centrifuges for greater production, according to state media.

Park Won-gon, professor of North Korean Studies at Ewha Womans University in Seoul, said the timing of the disclosure is also important.

The disclosure comes at a time of heightened tensions between North Korea and the West, with the US and its allies accusing North Korea of providing substantial military aid to Russia’s war effort in Ukraine. Both Moscow and Pyongyang have denied North Korean arms exports, despite significant evidence of such transfers.

In June, the two autocratic nations pledged to use all available means to provide immediate military assistance in the event the other is attacked, according to a landmark defense pact agreed to during a visit by Russian President Vladimir Putin to Pyongyang.

Since the location of this facility was not revealed in the KCNA report, it’s unclear whether the images are from a site already known to international observers, such as the Yongbyon nuclear research facility, or something entirely new. North Korea is believed to have several sites for enriching uranium.

“I’m not sure we can establish the site from the images,” said Martyn Williams, a Senior Fellow at the Stimson Center, “but it’s certainly the first time we’ve seen this set up and in this level of detail.”

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Russia’s FSB security service said on Friday it had revoked the accreditation of six British diplomats in Moscow whose actions it said showed signs of spying and sabotage work.

Britain’s embassy in Moscow did not immediately respond to a Reuters request for comment.

The FSB, the main successor agency to the Soviet KGB, said it had documents showing that a British foreign office department in London responsible for Eastern Europe and Central Asia was coordinating what it called “the escalation of the political and military situation” and was tasked with ensuring Russia’s strategic defeat in its war against Ukraine.

“Thus, the facts revealed give grounds to consider the activities of British diplomats sent to Moscow by the directorate as threatening the security of the Russian Federation,” the FSB said in a statement.

“In this connection, on the basis of documents provided by the Federal Security Service of Russia and as a response to the numerous unfriendly steps taken by London, the Ministry of Foreign Affairs of Russia, in co-operation with the agencies concerned, has terminated the accreditation of six members of the political department of the British Embassy in Moscow in whose actions signs of spying and sabotage were found,” it said.

The six diplomats were named on Russian state TV, which also showed photographs of them.

“The English did not take our hints about the need to stop this practice (of carrying out intelligence activities inside Russia), so we decided to expel these six to begin with,” an FSB employee told the Rossiya-24 state TV channel.

The FSB said Russia would ask other British diplomats to go home early if they were found to be engaged in similar activity.

Russian Foreign Ministry spokeswoman Maria Zakharova was cited by the state TASS news agency as saying the activities of the British embassy in Moscow had gone well beyond diplomatic convention and accusing it of carrying out deliberate activity designed to harm the Russian people.

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Typhoon Yagi, Asia’s most powerful storm this year, has left dozens dead since sweeping across southern China and Southeast Asia last week, leaving a trail of destruction with its intense rainfall and powerful winds.

After hitting the Philippines, where it killed more than a dozen people, it churned westwards towards southern China and shortly after parts of Vietnam, Thailand, Myanmar and Laos.

Nearly a week since it made landfall, many farms and villages in northern parts of Vietnam and neighboring Thailand remain under water as communities struggle to cope with severe flooding and the looming threat of landslides.

In Vietnam, the death toll has risen to at least 226 as a result of the storm and the landslides and flash floods it triggered, the government’s disaster agency said Thursday, according to Reuters. The storm caused widespread damage to infrastructure and factories.

Video captured by a car’s dashcam earlier this week showed the moment a steel bridge collapsed over the engorged Red River in Vietnam’s Phu Tho province, plunging drivers into the raging waters.

The downpours also inundated Thailand’s northern province of Chiang Rai, submerging homes and riverside villages, making rescue efforts difficult.

At least 33 people have died across Thailand since mid-August due to rain-related incidents, with at least nine deaths this week after Yagi, Reuters reported citing the local government.

Storms are being made more intense and deadlier by the warming ocean, scientists have long warned. While developed nations bear a greater historical responsibility for the human-induced climate crisis, developing nations and small-island states are suffering the worst impacts.

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For decades, Chinese workers have wrapped up their working lives at relatively young ages: 60 for men and as early as 50 for women.

But all that is about to change as the Chinese government passed new legislation on Friday laying out a plan to delay the retirement age over the course of 15 years, starting January 1, according to state news agency Xinhua.

Existing rules stated that men in urban areas could retire at 60 and receive their pensions, and women at 50 or 55, depending on their occupation. The new rules gradually push back the age to 63 for men, and to 55 and 58, respectively, for women.

The measures, which were approved by the country’s top lawmaking body following signaling from a key Communist Party body in July, also lay out plans to extend the minimum working period for employees to receive a monthly pension from 15 to 20 years, with changes starting from 2030.

They also include some flexibility in retirement age, especially for those who have already completed the minimum working period.

The change, which the government has been considering for about a decade, comes as China’s economy slows while Beijing grapples with the looming consequences of a rapidly aging population and a pension funding crisis.

The announcement sparked immediate widespread discussion – and backlash – across Chinese social media.

Some social media users appeared encouraged that the changes weren’t more drastic and included some flexibility. One comment on the X-like social media platform Weibo that garnered thousands of likes said: “As long as there are options to retire or not based on our will, I have no objections.”

Others voiced discontent over the prospect of delayed access to their pension and years of extra work, as well as concern about whether the policy would strain China’s already tough job market, where unemployment levels among young people remain stubbornly high.

“Delayed retirements just means you can’t get your pension until you hit 63, but it doesn’t mean everyone will have a job until then!” wrote one user.

Chinese state media in recent days has hailed the anticipated changes as an urgent and necessary reform for an outmoded system, highlighting how the existing policy had been in place since the 1950s when life expectancies and education levels were both lower.

“The current retirement policy framework has remained unchanged for 73 years. Especially since the reform and opening up (starting around 1978), the demographic, economic and social landscape has transformed dramatically,” demographer Yuan Xin was quoted by state media as saying earlier this week.

The existing retirement age is seriously mismatched with the current “national realities” and the new normal of future economic and social development, said Yuan, who is deputy head of the China Population Association and a demographer at Nankai University in Tianjin.

China’s existing retirement ages are lower than those in a number of major economies. The 2022 average standard retirement ages across Organization for Economic Co-operation and Development (OECD) countries stood at 63.6 years old for women and 64.4 years old for men.

Other countries have also grappled with how to manage the retirement age. Major protests erupted in France in 2023 in response to a government attempt to raise the retirement age from 62 to 64. The US has also been debating retirement reform and gradually increasing the retirement age, with Social Security incentives in place for retirees who delay taking benefits until age 70.

Demographic and economic challenges

The changes come as China’s leadership has become increasingly concerned by the country’s demographic challenges, which some economists warn could see the still-developing country fall into the trap of “getting old before it gets rich.”

China’s population has shrunk for the past two years, and it 2023 it recorded its lowest birth rate since the founding of Communist China in 1949, despite a reversal of the country’s long-standing “one-child policy” from 2016 and government-led efforts to incentivize more young couples to have children.

China’s elderly now account for more than 20% of the population, according to a report earlier this month from the Ministry of Civil Affairs, which said about 297 million were aged 60 and above by the end of last year.

Demographers cited in state media have said that, between 2030 and 2035, the elderly population will make up 30% of the total population. That is likely to increase to more than 40% of the population by the middle of this century – making China a “super-aged society.”

Those projections have seen the government ramping up efforts to expand elderly care services and boost private-sector efforts to build a “silver economy.”

It’s also put heightened focus on the ability of the country’s pension system to handle a shrinking workforce alongside its burgeoning elderly population.

A 2019 report from the Chinese Academy of Social Sciences, a top government think tank, forecast that China’s state pension fund would run dry by 2035 because of its dwindling workforce. Years of strict pandemic-related restrictions, which have shrunk the coffers of local governments, could make the pension shortfall even more pronounced.

Early last year, thousands of elderly people protested in several major cities against big cuts to their medical benefits payments, fearing that local governments were dipping into their individual accounts to cover the shortages in the state pension fund.

Even for those of working age, employment remains a steep challenge following the pandemic and a raft of government-led industry crackdowns in recent years. In July, the youth unemployment rate hit 17.1% among those aged between 16 and 24 who are not students, and was 6.5% for those 25 to 29 that month, according to state media.

Employers continue to pull back on hiring as the economy slows and people, especially in tech sectors, have widely noted age discrimination in hiring for those over 35.

The new regulations also call on the state to “support young people’s employment and entrepreneurship, strengthen the development of employment positions for older workers … and strengthen the prevention and governance of employment age discrimination.”

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After a successful 2024 Olympics and Paralympics in Paris, the bar has been set high for the next summer Games in Los Angeles in 2028, something that key stakeholders in that event say the city will be ready for.

Los Angeles Mayor Karen Bass told CNBC’s Andrew Ross Sorkin at CNBC x Boardroom’s Game Plan sports business event on Tuesday that what is making her anxious is “all that we need to do in our city to prepare” for the 2028 Games. However, she said that much like the last time Los Angeles hosted the Olympics in 1984, she believes the city will not only improve to host the Games but will benefit once they are over.

That includes work on public transportation. Bass said she is hoping there will be “no cars to the venues,” and that viewers will take public transportation to the Games — a pledge that will require an investment in both bus and subway infrastructure, as well as collaboration with other cities to borrow buses.

Bass said the city is also doing “whatever we can to eliminate street homelessness,” including building more than 18,000 new units for the unhoused population.

Bass said there will also be discussions with companies in Los Angeles around work schedules to shift employees to remote work during periods of high traffic, as well as find ways to shift truck deliveries into the night, like what happened during the 1984 Games.

“I think there is a way we can organize the region so that traffic will be less and manageable,” Bass said.

LA 2028 President Casey Wasserman attended the Paris Games, an event that he told Ross Sorkin “reminded people why they fall in love with the Olympics,” and one he said organizers will look to build upon in Los Angeles.

While no new permanent venues will be built for the Los Angeles Games, the first time in Olympics history, there are some challenges in utilizing all the city’s landmarks in the way Paris was able to feature famous locations like the Eiffel Tower by hosting beach volleyball nearby. Wasserman said Los Angeles got a glimpse of that with the Olympic Torch handover ceremony, when Tom Cruise scaled the Hollywood Sign and the Olympic Rings replaced the “OO”’s in the sign — which Wasserman noted was done with CGI.

“That’s obviously a longer, complicated conversation,” Wasserman said of altering the Hollywood Sign for the Games. “But I think it’s a pretty spectacular opportunity if there was a way to do it.”

Actress Jessica Alba, who is on the Los Angeles 2028 board of directors, said the Games will present all different aspects of the city’s culture, from Hollywood to fashion to food, as “a global platform to showcase what they got.”

“LA is a main character,” Alba said. “We want it to be a main character during the Olympics.”

Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.

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