Good morning. Wireless company T-Mobile US has agreed to pay about $60 million to settle allegations it failed to disclose data breaches in violation of a national security agreement that allowed its merger with rival Sprint, according to senior U.S. government officials.

• The significance: The civil penalty, announced Wednesday by the Committee on Foreign Investment in the U.S., is the largest fine to date imposed by the U.S. regulatory panel that reviews deals for U.S. national security risks. It is also the first enforcement action taken by Cfius that publicly named the targeted company, the officials said.
   
• The background: T-Mobile entered into a national security agreement with Cfius in 2018 after it won approval from the panel for its planned takeover of Sprint because of foreign ownership of the entities. Japanese telecom giant SoftBank Group owned most of Sprint, while Germany’s Deutsche Telekom was a majority shareholder of T-Mobile in the U.S. The merger deal closed in 2020.
   
• The allegations: Between August 2020 and June 2021, Cfius said T-Mobile failed to take appropriate action to prevent unauthorized access to certain sensitive data, in violation of its national security agreement. T-Mobile also failed to report some of the data breach incidents in a timely manner to Cfius, further violating the agreement. These violations delayed the regulatory committee’s efforts to investigate and mitigate any potential harm to U.S. national security assets resulting from these incidents, senior government officials said.
   
• Cfius update: The fine was revealed as part of an overhaul of Cfius’s website, which went live Wednesday. Government officials declined to say if targets would be revealed to the public in the future, but they said that the revised website would, in the interest of transparency, going forward provide additional details about the penalties imposed and the nature of the violations.

How the Justice Department is changing its tactics on cybercrime. 

Cyber threats from nation-state adversaries against U.S. targets are growing, and it is Matthew Olsen’s job to stay on top of them.

Olsen, who has been the assistant attorney general for national security since 2021, leads the Justice Department’s efforts to fight terrorism, espionage, cybercrime and other threats to U.S. national security.

Firms hit with more than $475 million in fines for failing to monitor traders’ texts.

Truist, TD Bank and a host of other financial firms agreed to pay a total of more than $475 million in fines to regulators, the latest in a yearslong sweep focusing on traders’ use of so-called off-channel communication platforms such as WhatsApp and iMessage.

In an enforcement action announced Wednesday, the U.S. Securities and Exchange Commission said it was charging 26 firms for failing to monitor and preserve certain electronic communications. The Commodity Futures and Trading Commission also imposed additional penalties against three of the firms the SEC had fined over similar violations.

• Public company board members say the swift rise of AI in the workplace is an issue that is keeping them up at night. Some point to recent concerns around employees putting proprietary code into ChatGPT, companies using generative AI to incorrectly source content or worries about so-called hallucinations where generative AI produces false or inaccurate information.
   
• As Britain’s oil and gas giants scale back their global green-energy ambitions, the U.K.’s newly elected government is launching a multibillion-dollar effort to regain the country’s place as a global pacesetter for clean energy.
   
• A year after Muhammad Yunus won the Nobel Peace Prize for pioneering tiny loans to the world’s poor, he announced plans to form his own political party. Within a few months, Yunus abandoned the idea. Now the 84-year-old is in charge of Bangladesh, a country of 170 million, after student protests rocked the country and forced the abrupt resignation of former Prime Minister Sheikh Hasina. As Yunus makes the transition from development expert to statesman, any stumbles could spell trouble ahead for the strife-torn country.

Russia withdraws some forces from Ukraine in response to Kursk invasion.

Russia is withdrawing some of its military forces from Ukraine to respond to a Ukrainian offensive into Russian territory, U.S. officials said, the first sign that Kyiv’s incursion is forcing Moscow to rejigger its invasion force.

The officials said the U.S. is still seeking to determine the significance of Russia’s move and didn’t say how many troops the U.S. assesses Russia is shifting. But the new U.S. assessment bolsters claims by Ukrainian officials who said last week’s surprise invasion of Kursk province had drawn Russian forces away from Ukraine, where Moscow’s advantage in manpower and equipment is allowing them to grind forward in several places.

• As Israel braces for an attack from Iran and its ally Hezbollah, there is a debate here over whether now is the right time for the country to launch an offensive attack against the Lebanese militia or try to de-escalate to avoid triggering a wider regional war.
   
• As the prospect of an Iranian attack on Israel looms, officials in Washington and Tehran are facing a potential escalation with major risks for both sides.
   
• Whatever you think of it, generative artificial intelligence has proven adept at something: generating profits for other AI projects. That is risky.
   
• Inflation extended a run of cooler readings in July, sealing the case for the Federal Reserve to cut interest rates at its meeting next month.
   
• A panoply of official economic data released Thursday showed China’s economy struggling to pick up momentum, despite a series of broad measures laid out by top Chinese officials late last month in a bid to head off a worsening economic picture. Beijing’s moves included more aggressive steps to boost household income and consumer spending.

German cyber agency wants changes in Microsoft, CrowdStrike products after tech outage.

Since last month’s blue-screen deluge, CrowdStrike has published analyses of what went wrong and said it hired third-party security companies to review its product. Now, Germany’s powerful cybersecurity agency is seizing the moment and hoping to rattle tech and cyber companies into altering their products to head off another mega-meltdown.

• Shortly after President Biden announced his decision to drop out of the race, an informal group of economic advisers began quietly discussing how to best articulate Vice President Kamala Harris’s economic vision. Their challenge: differentiating the candidate from her unpopular boss without abandoning his policies.
   
• Minouche Shafik resigned Wednesday as Columbia University’s president, ending an embattled 13-month term during which her New York City campus was the scene of a series of chaotic and sometimes violent protests by students, faculty and other activists.
   
• A federal judge ruled the University of California, Los Angeles, must ensure equal access to campus for Jewish students after some alleged in a lawsuit they were blocked by protesters at this spring’s pro-Palestinian encampments.
   
• Black men and women are at least two times as likely as white Americans to die from strokes. Hospitals around the country have long sought to bring those numbers down.

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