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Thursday, January 16, 2025

As "TikTok refugees" flock to RedNote, U.S. official says China app could be banned, too

 With the U.S. government's TikTok ban set to kick in on Sunday, Americans have been flocking to an alternative social media platform, but it's another Chinese app, and experts say it could present the same, if not even more issues. There's been a surge in U.S. downloads of the Chinese-owned application Xiaohongshu, or "RedNote" as many users call it.  

A U.S. official told CBS News on Thursday that RedNote, just like TikTok, could face an ultimatum to divest, or be banned.

"This appears to be the kind of app that the statute would apply to and could face the same restrictions as TikTok if it's not divested," a U.S. official told CBS News. 

CBS News has reached out to Xiaohongshu for comment as to whether the company would agree with that assessment. 

What is RedNote?

Xiaohongshu has been the most downloaded free app on Apple's app store in the U.S. since Tuesday. Analysis by Sensor Tower, a market intelligence firm, showed the platform's downloads in the U.S. had increased 200% year-on-year and seen a 194% uptick since last week. 

QR Code Generator, a firm that provides statistics on trends online, said there had been a 4,900% increase in searches on Google for Xiaohongshu in the U.S. on Monday alone.

Xiaohongshu was founded in 2013 and is a lifestyle platform "where over 300 million users every month share their life experiences," according to a description on Apple's app store. 

The Chinese photo and video-sharing platform has often been compared to Instagram. It operates as a platform for e-commerce, a manual for tips on travel and fine dining, as well as a vehicle for users to share content from their everyday lives. 

Xiaohongshu literally translates from Mandarin to "little red book," likely a reference to the famed little red book of quotations from Chairman Mao Zedong, the founding father of Communist China

That reference has not put off the many American users who've turned to the app to share their experiences as so-called "TikTok refugees" ahead of the U.S. ban. Videos including a use of the "TikTok refugee" term on RedNote have racked up millions of views and impressions this week.

"This is for my fellow TikTok refugees and Americans, behave on this app! You better behave because everyone in China is being so kind to us as we colonize their cutesy tootsy app just because our government sucks," one American user account using the name "Savannah" posted on Wednesday. The post had gained almost 128,000 impressions by Thursday.

TikTok, in its international form, is not available to users in mainland China, meaning the U.S. exodus to Xiaohongshu has put Americans in closer contact with Chinese users than they ever had been before. It's led to some amusing cultural exchanges. 

One American "TikTok refugee" with the username "anieladiaz" posted a video asking Chinese users if they had any questions. A Chinese user commented under the post with a screenshot of what appeared to be their English homework. Anieladiaz was happy to provide the answers to the test questions, which they shared in their own screenshot. Other Chinese users have been posting videos in which they teach Americans to use Mandarin slang words. 

Is RedNote safe?

The rapid rise in U.S. downloads may be cause for concern for the same U.S. lawmakers who ushered in the ban on TikTok. One cybersecurity expert told CBS News that RedNote may actually represent an even greater threat. 

"RedNote was never meant for outside of the China market. All of the data sharing and all the servers to which the data is being shared is in China," Adrianus Warmenhoven, a cybersecurity expert at Nord VPN, told CBS News on Wednesday. "It means they are exempt from all of these data protections and outside of the view of the American government."

Warmenhoven said TikTok and its parent company ByteDance had at least stored data in U.S.-based servers, which gave the U.S. government "some modicum of moderation or limitations on data that can be sent to China and how much and in what way."

He also said RedNote's terms and conditions lack transparency, which he said presents a huge cybersecurity risk for Americans. 

"Its terms and conditions are in Mandarin, leaving non-Chinese-speaking users unclear about what data is collected and how it's used," Warmenhoven said. "I'm pretty sure those millions who are moving over are not using Google Translate to read [the terms and conditions] so they don't know what they are agreeing to." 

The specific U.S. legislation used to ban TikTok — the "Protecting Americans from Foreign Adversary Controlled Applications Act," which President Biden signed into law last April, grants the federal government broad scope to crack down on foreign social media platforms. 

Under the law, Congress can compel a platform to divest its U.S. operations from foreign ownership, and it can be shut down if it qualifies as a threat. The law can apply to any platform that allows users to share content with each other and has more than 1 million monthly active users, is owned by a company located in a foreign adversary-controlled country, and has been determined by the president to present a significant national security threat.

The legislation is currently subject to a legal challenge by ByteDance, which has argued that it's unconstitutional and violates the first amendment protecting free speech. A ruling from the Supreme Court is pending in that case.

CBS News has asked President-elect Donald Trump's transition team whether the incoming administration might deem RedNote a national security threat that should be subject to the law. The transition team had not responded by the time of the publication of this article. 

Trump has spoken out recently against the TikTok ban. Last month, he said he had a "warm spot in my heart" for TikTok – a reversal from his stance when he last occupied the Oval Office. 

The Federal Trade Commission, the agency tasked with enforcing the ban and ensuring that internet service providers in the U.S. and app store companies such as Apple and Google comply with the law, declined to comment. 

Content on RedNote appears to be much more heavily censored than posts on TikTok. A CBS News analysis found that any search for "Xi Jinping," China's autocratic president, on RedNote yielded no results whatsoever. 

The term "Free Hong Kong" also brought back no results. A search for "Taiwan" will turn up several memes welcoming Americans to the platform, but noting that users must recognize the Beijing-imposed narrative that the democratically governed island just off China's coast, which the U.S. is legally bound to help defend from invasion, is an inseparable part of China. 

A similar search for those terms on TikTok turns up a wide range of political opinions from users, including posts heavily critical of Chinese censorship. 

RedNote even appears to be scaling up operations to monitor content given the vast number of Americans signing onto the app. CBS News found local job listings posted by the company online in mainland China advertising jobs to review English content and promising a monthly salary of between $950 and $1,200.

"Users are not going to a place with more freedom. RedNote is moderated differently, and the algorithm is different from TikTok," Warmenhoven told CBS News. "You will not get traction or it will not spread politically sensitive issues, or maybe social sensitive issues — especially issues that are socially sensitive in China."

https://www.cbsnews.com/news/tiktok-rednote-china-us-congress-ban/

Yemen's Houthis to continue attacks if Gaza ceasefire breached

 Yemen's Iran-backed Houthi rebels threatened on Thursday (Jan 16) to keep up their attacks if Israel did not respect the recently announced ceasefire in its war against Hamas.


The rebels, part of Iran's "axis of resistance", have been attacking Israel and commercial shipping in the Red Sea throughout the war in Gaza, claiming solidarity with the Palestinians.

"We will watch the implementation of the agreement, and if there are any Israeli breaches, massacres or attacks, we will be ready to provide military support to the Palestinian people," rebel leader Abdulmalik al-Huthi said in a televised address.

He was speaking a day after the announcement of a six-week ceasefire, expected to start on Sunday, that would involve the release of 33 Israeli hostages being held by Palestinian militants.

"The Israeli enemy failed to achieve its declared and clear goals, and failed miserably to recover its prisoners without an exchange deal," the Huthi leader said, maintaining that Israel and the US were "obliged" to accept the ceasefire.

Since the war in Gaza broke out in October 2023, the rebels, who control much of Yemen, have fired dozens of missiles and drones at Israel.

They have also waged a harassment campaign against shipping in the Red Sea and Gulf of Aden, severely disrupting vital trade lanes.

They have stepped up their missile launches against Israel in recent weeks, with 16 people wounded in one attack targeting Tel Aviv in December.

In response, Israeli jets have struck Houthi targets in a series of air raids, including one that killed four people at Sanaa's international airport last month.

'Britain to back new local inquiries into child sexual abuse'

 The British government will provide backing for local inquiries into child sexual abuse across the country, it said on Thursday after a decades-old grooming gangs scandal returned to the spotlight following criticism from billionaire Elon Musk.

The scandal involved organised groups in English towns and cities raping and sexually exploiting vulnerable young girls, prompting a number of local investigations and a broader nationwide public inquiry into child sexual abuse.

Britain's interior minister Yvette Cooper said the government would set out a timetable to implement the recommendations of a national inquiry published in 2022 but also go further and back new local investigations.

"Despite all those national inquiries reports and hundreds of recommendations, far too little action has been taken and, shamefully, little progress has been made," Cooper told parliament.

She stopped short of announcing a new national public inquiry into the scandal, in which the perpetrators have predominantly been of Pakistani heritage. Musk and Britain's opposition Conservative Party, which was in power from 2010-2024 had called for a national inquiry.

Musk, a close ally of U.S. President-elect Donald Trump, has also accused British Prime Minister Keir Starmer of failing to tackle the scandal when he was the country's chief prosecutor, saying he was "complicit in the rape of Britain".

Starmer has strongly defended his record as chief prosecutor, saying he had overcome resistance to tackling the scandal by reopening cases.

https://www.usnews.com/news/world/articles/2025-01-16/britain-to-back-new-local-inquiries-into-child-sexual-abuse

Symbotic Surges 20% on Walmart Deal--Unlocking a $5 Billion Potential Backlog

 Symbotic (NASDAQ:SYM) just pulled off a game-changer, sending its stock surging nearly 20% this morning after locking in a high-stakes deal with Walmart (NYSE:WMT). The AI-driven robotics company is buying Walmart's Advanced Systems and Robotics business for $200 million, with a potential $350 million in performance-based bonuses. But here's the kickerWalmart is also throwing $520 million into the mix to develop an advanced robotics platform. This move could supercharge Symbotic's backlog by over $5 billion and expand its total addressable market by a staggering $300 billion in the U.S.

The deal puts Symbotic at the heart of Walmart's next-gen supply chain, rolling out AI-powered automation across 400 fulfillment centers. If the tech hits its targets, Walmart will go all-in, integrating Symbotic's system into its rapidly evolving logistics network. This is a massive step forward for usscaling beyond warehouse automation into eCommerce fulfillment, said Symbotic CEO Rick Cohen. Given their deep-rooted partnership since 2017, this acquisition cements Symbotic's role as Walmart's go-to automation partner, with the deal set to close in Q2 2025.

Symbotic, based in Wilmington, Massachusetts, is making big waves in the AI-powered robotics space, transforming how retail giants and wholesalers move inventory. Its cutting-edge tech speeds up supply chains, cuts costs, and maximizes efficiencyexactly what Walmart needs to stay ahead. With this deal, Symbotic just solidified its position in the automation revolution, making it a serious contender for long-term growth in AI and robotics. Investors, take note this could be just the beginning.


https://finance.yahoo.com/news/symbotic-surges-20-5-billion-162206537.html

Outset Medical presentation, links

 Outset Medical

Investor Presentation

January 2025

Catalyzing profound and permanent change in where, when and how dialysis is delivered.

Outset Medical, Inc. - Confidential & Proprietary - Do Not Distribute

Investment Highlights

Large markets served by a technology with deep and durable competitive advantage

Growing footprint and scale with hundreds of customers and >1,000,000 treatments performed per year

Recurring revenue model powered by predictable utilization

Commercial transformation focused on reigniting growth

Capitalized through breakeven and well-positioned to prosecute our mission

CURRENT STATE

Dialysis is one of the largest, most expensive, least-changed sectors of healthcare

2022

2030

$73B1

$41B1

7%2

for 1%2

30%3

Annual spending on

Paid by Medicare

U.S. ESRD patients

600,0003

Dialysis patients

90M3

Annual dialysis treatments

  1. Company estimates based on data contained in USRDS 2021 Annual Data Report
  2. Percentage of entire Medicare budget spent on dialysis for ESRD patients, who comprise 1% of the Medicare population (2019)
  3. Company estimates based on data contained in USRDS 2022 Annual Data Report

Patient Journey Spans Hospital to Home

CKD/ESRD PATIENTS

POST ACUTE

ACUTEFACILITIES

60%

CRASH INTO

DIALYSIS

600,000 Total U.S. dialysis patients

40%

MANAGED INTO

DIALYSIS

MID-SIZED DIALYSIS

OPERATORS

HOME

Note: "CKD" represents Chronic Kidney Disease; "ESRD" represents End Stage Renal Disease Company estimates based on data contained in U.S. Renal Data System's 2021 Annual Data Report

1 Represents total short- and long-term nursing home care as reported in Chen S et al., Nursing Home Status Adjustment for Standardized Mortality and Hospitalization in Dialysis Facility Reports. Kidney Med.

2 Company estimates based on data contained in USRDS 2022 Annual Data Report; 600,000 ESRD patients, 70% under care by the LDOs and 30% (180,000 patients) under care of non-LDOs

6

Outset Medical, Inc. - Confidential & Proprietary - Do Not Distribute

CURRENT STATE

Dialysis needs new solutions

Costly

Complicated

Antiquated

Outset Medical, Inc. - Confidential & Proprietary - Do Not Distribute

We see

  1. technology-drivenway forward

Tablo® is a first-of-its- kind technology designed to reduce the cost and complexity of dialysis

Single device from ICU to home

Connected and intelligent

Small and mobile

One device, multiple markets

$11.4B

U.S. TAM

Company estimates based on data contained in USRDS 2021 Annual Data Report

$2.5B

Acute and Post-Acute Market

$8.9B

Home market

One device, multiple markets

$11.4B

U.S. TAM

Company estimates based on data contained in USRDS 2021 Annual Data Report

$2.5B

Acute and Post-Acute Market

$8.9B

Home market

J.P.Morgan forecasts spending on data centers could boost US GDP by 20 basis points in 2025-26

 J.P.Morgan estimated spending on data centers could contribute between 10-20 basis points to U.S. economic growth in 2025-2026 as technology companies race to benefit from the artificial intelligence boom.

Investments in data centers, which help provide computing power for AI, have surged since OpenAI launched ChatGPT in 2022, as companies across sectors increasingly shift their operations to the cloud and integrate AI into their offerings.

Mega-cap cloud companies including Microsoft and Alphabet have been heavily spending on AI-related investments.

The boost to gross domestic product (GDP) could primarily come through demand for data center construction, technology equipment investment, and for additional power generation and transmission infrastructure, the Wall Street brokerage said in a note dated Wednesday.

Spending on data centers likely contributed 0.1%-0.3% to GDP growth in 2024, as per J.P.Morgan's estimates.

While the brokerage estimates exclude the costs of new power generation, it projected each 5-10 gigawatt in new capacity could require $20 billion in spending, or 7 basis points of GDP.

U.S. power consumption will rise to record highs in 2025 and 2026, the government's Energy Information Administration said in its Short Term Energy Outlook (STEO) on Tuesday.

There has been help from the political front too, as President Joe Biden signed an executive order on Tuesday to provide federal support to address massive energy needs for fast-growing advanced AI data centers.

"The data center boom will likely play out for at least a couple more years given ongoing gains in AI innovation and its potential to deliver a positive economic impact," said J.P.Morgan.

However, the brokerage added, "Whether that growth continues well into the second half the decade will then depend, similar to the telecom (boom) episode, on whether the expected return on these investments is realized."

https://finance.yahoo.com/news/j-p-morgan-forecasts-spending-171806869.html

Moderna, Inc.: Berenberg reduces the target price from 42 to USD 33.

 maintains its hold recommendation

https://www.marketscreener.com/quote/stock/MODERNA-INC-47437573/