Good morning. The U.S. military’s new cyber chief is contending with an unusual Chinese threat, one that is designed not to extract military secrets or data of any kind but to lurk in the infrastructure that undergirds civilian life, as if lying in wait for the right moment to unleash chaos.

“We see it as very unique and different—and also concerning,” Gen. Timothy Haugh, who in addition to his cyber role also heads the National Security Agency, said in an interview with The Wall Street Journal. “The concern is both in what is being targeted and then how it is being targeted.”

• Coming 'Typhoon'? The U.S. believes the Chinese hacking network—known as Volt Typhoon among cybersecurity experts and U.S. officials—aims to “preposition” in critical infrastructure networks for future attacks. “We can see no other use,” said Haugh, who took charge of the National Security Agency and the military’s Cyber Command in February.
   
• Lying in wait: Unlike other state-backed hackers who typically use tools to target a network and then take data, these Chinese intrusions involve neither. “One of the reasons we believe it is prepositioning is—there are not tools being put down and there’s not data being extracted,” Haugh said.
   
• Targeting infrastructure: U.S. officials worry that in a conflict over Taiwan, for instance, China could use its latent access to launch damaging cyberattacks against key pieces of infrastructure in America or allied countries—ranging from water supplies and power grids to transportation services—disrupting lives and potentially injuring civilian populations. Especially concerning was the targeting of water systems, said Haugh.

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Appeals court blocks venture firm’s grant program for Black women.

A federal appeals court on Monday blocked Atlanta-based investment firm Fearless Fund from continuing with a contest that grants awards to businesses owned by Black women, a blow against diversity and inclusion programs that have been under increasing legal attack.

The ruling is the latest fallout from the Supreme Court’s decision last year outlawing affirmative action in college admissions. The fund’s case is one of several closely watched matters in the lower courts testing the continued validity of racial preferences in the business world.

New York set to restrict social-media algorithms for teens.

New York plans to prohibit social-media companies from using algorithms to steer content to children without parental consent under a tentative agreement reached by state lawmakers, people familiar with the matter said.

The legislation is aimed at preventing social-media companies from serving automated feeds to minors, with such feeds facing criticism for leading children to violent and sexually explicit content. The bill, which is still being finalized but expected to be voted on this week, would also prohibit platforms from sending minors notifications during overnight hours without parental consent.

• E*Trade is considering telling meme-stock leader Keith Gill he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop, according to people familiar with the matter.
   
• Shares of GenScript Biotech plunged in Hong Kong amid concerns that the company, like its China-linked biotechnology peers, could face U.S. scrutiny due to alleged ties with the Chinese government. Two members of the U.S. House Select Committee on the Chinese Communist Party sent letters to the directors of the Federal Bureau of Investigation and the Office of the Director of National Intelligence to seek information on GenScript and its three subsidiaries’ connections to the Communist Party.
   
• Toyota Motor and two other automakers suspended shipments of several models in Japan after they discovered they didn’t fully follow the government’s testing standards when seeking certifications on their models.

Maersk says freight rates surging. 

Denmark-based carrier A.P. Møller-Mærsk said Monday it expected freight rates to keep marching higher through the rest of the year due to strong container market demand and ongoing disruption in the Red Sea, where attacks by Yemen’s Houthis have forced ship operators to divert vessels thousands of miles.

Mærsk said it now sees signs that port congestion is also building up, particularly in Asia and the Middle East, tying up shipping capacity and adding to the upward pressure on rates.

• OPEC+ on Sunday agreed to extend all production curbs into next year, a deal that likely signals oil prices will remain elevated through the U.S. presidential election.
   
• The Canadian government and negotiators for the union representing border agents started a new round of talks Monday in a bid to avoid a labor disruption that could stymie cross-border commercial-truck traffic and tourist entry.
   
• Israel’s Prime Minister Benjamin Netanyahu showed cautious support for an initiative by President Biden to end the war in Gaza, with the Israeli leader saying on Monday that he is open to a temporary cease-fire to release hostages but wants a free hand to resume fighting Hamas.

• President Biden is expected to sign an executive order Tuesday that would ban migrants who cross the southern border illegally from claiming asylum, a last-resort effort meant to quell voter discontent with his handling of immigration ahead of the presidential election.
   
• Airbnb hosts are emerging as a potent political force, often with the financial backing and organizational support of the industry.
   
• OpenAI’s Sam Altman has a web of lucrative investments connected to the blockbuster startup.
   
• From bad shooting nights to an opponent knocking her to the floor, Caitlin Clark’s rookie WNBA season is off to a rocky start.

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