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US officials to boycott Beijing Olympics over rights ‘atrocities’

WASHINGTON/BEIJING — US government officials will boycott the 2022 Winter Olympics in Beijing because of China’s human rights “atrocities,” the White House said on Monday, just weeks after talks aimed at easing tense relations between the two superpowers.

The diplomatic boycott, which leaves athletes free to travel to Beijing to compete, has been encouraged by some members of Congress and rights advocacy groups for months.

Beijing threatened unspecified “resolute countermeasures” against any such move before Monday’s announcement, which is certain to further strain relations already at their lowest point in decades.

President Joseph R. Biden, Jr.’s administration highlighted what Washington says is genocide against minority Muslims in China’s western region of Xinjiang.

“US diplomatic or official representation would treat these games as business as usual in the face of the PRC’s egregious human rights abuses and atrocities in Xinjiang, and we simply can’t do that,” White House press secretary Jen Psaki told a daily press briefing, referring to the People’s Republic of China.

“The athletes on Team USA have our full support,” Psaki added. “We will be behind them 100% as we cheer them on from home.”

The move comes despite an effort to stabilize ties with a video meeting last month between Biden and China’s leader Xi Jinping.

China’s embassy in Washington called the boycott “political manipulation” as no invitations had been extended to US politicians.

“In fact, no one would care about whether these people come or not, and it has no impact whatsoever on the Beijing 2022 Winter Olympics to be successfully held,” embassy spokesman Liu Pengyu said.

Secretary of State Antony Blinken has said the United States consulted allies on a “shared approach” to the Beijing Games. It was unclear if they would follow the US lead.

“Canada remains deeply disturbed by the troubling reports of human rights violations in China,” Canada’s foreign ministry said in a statement. “We were notified of the US decision and we will continue to discuss this matter with our partners and allies.”

The Australian and Japanese governments said they were also still considering their positions for the Games, which will begin on Feb. 4.

“We will consider matters such as the meaning of the Olympic Games and our diplomatic relations, and would like to make our own decision based on what is best for our national interest,” Japan’s Prime Minister Fumio Kishida told reporters.

New Zealand Deputy Prime Minister Grant Robertson said his country would not be sending government officials but that decision was based largely on coronavirus disease 2019 (COVID-19) concerns and preceded the US boycott.

“We’ve made clear to China on numerous occasions our concerns about human rights issues — as recently as the Prime Minister talking to President Xi,” Robertson told reporters, according to state broadcaster TVNZ. “They’re well aware of our view on human rights but we’d already made that decision not to attend.”

Stefano Sannino, chief of the European Union’s diplomatic service, said on Friday that boycotts were a matter for individual member states, not common EU foreign policy.

Russian President Vladimir Putin is the only leader of a major country who has accepted China’s invitation.

US State Department spokesman Ned Price told reporters the government would not dictate private sector practices, but said firms should be “fully cognizant” of what is transpiring in Xinjiang.

The diplomatic boycott puts corporate Olympic sponsors in “an awkward spot” but was less concerning than a full boycott including athletes, said Neal Pilson, a former president of CBS Sports who has overseen Olympics broadcast rights deals.

A spokesperson from Comcast-owned NBCUniversal said it would broadcast the Games as planned.

POTENTIAL RETALIATION
The International Olympic Committee (IOC), which has faced criticism for turning a blind eye to China’s right record, said the Games should be “beyond politics.”

Sarah Hirshland, chief executive of the US Olympic and Paralympic Committee, said Team USA was “excited and ready to make the nation proud.”

Many US athletes argued it would have been unfair to ban them from the Games, and some US lawmakers who supported not sending officials had said it was in US interests for its national anthem to be playing in Beijing as Americans received medals.

Human rights groups welcomed the move, but said Washington could do more to hold China accountable.

For China, which denies all rights abuses, Biden’s move is less a threat to the Games and more of an optics problem that Beijing fueled by threatening retaliation, experts said.

“It would have been a non-story if let alone,” said Lisa Delpy Neirotti, an associate professor of sport management at the George Washington University School of Business. “We typically do not send a large government delegation anyway, especially in COVID times.”

Beijing says it opposes the politicization of sports, but it has punished American sports leagues in the past, including the National Basketball Association for crossing political red lines.

Scott Kennedy, a China expert at the Center for Strategic and International Studies in Washington, said Beijing’s options to retaliate included limiting bilateral dialogue, stalling visas, or hamstringing athletic delegations and journalists at the Games.

The United States is next due to host an Olympics in 2028 in Los Angeles, raising questions of how China might respond. — Reuters

Constant change

Pro basketball head coaches get hired and fired all the time. And as habitués of the sport know, the reasons aren’t always clear. Ideally, they should be; after all, the best basis for tenure is performance borne off measurable objectives. Yet, hoops annals are littered with examples of bench tacticians let go due to seeming whim and fancy.

To be sure, franchise owners do have the right to base their decisions on their — and, just as importantly, on their charges’ — emotional intelligence. In fact, it’s critical, especially when much of success is based as much on nurturing relationships as on mastering Xs and Os. The problem lies when there is a discernible lack thereof on the part of the doer; when underpinnings are perceived as wobbly at best, the second-guessing of choices becomes inevitable.

William Shakespeare once wrote, “Uneasy lies the head that wears a crown.” And he’s right; what is true of the title character in King Henry IV is true of any mentor. It’s why Frank Vogel, just 13 months and change removed from steering the Lakers to a championship, is said to be on the hot seat. It’s why not a few quarters put Billy Donovan in the same position — that is, before the Bulls’ outstanding start to the 2021-22 season. And it’s why the Mercury parted ways with Sandy Brondello, never mind their immediate past Cinderella finish.

When there is no one else to blame for unmet expectations, the head coaches are invariably the first to go. For the most part, the development takes off from the notion that, in a crisis, shaking the tree — any tree — is welcome. Owners aren’t wrong to disrupt the status quo. That said, there needs to be a method to the madness. Else, gains will not last beyond the short term.

Only time will tell if Vogel gets the axe, or if Donovan justifies the reprieve, or if Brondello truly signifies addition by subtraction. Regardless of the outcomes, however, this much is clear: given the need to make up for an inability to deliver, the desperate feel they need to rely on the only constant: change.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Peso recovers as Nov. inflation slows for third straight month

BW FILE PHOTO

By Luz Wendy T. Noble, Reporter

THE PESO on Tuesday strengthened against the dollar on better job data and after inflation eased to the slowest level in four months.

The local currency closed at P50.375 a dollar, appreciating by 3.5 centavos from Monday’s close, according to data posted on the Bankers Association of the Philippines website.

The peso opened Tuesday’s session at P50.35 a dollar, weakened to as much as P50.40 and appreciated to as much as P50.23. Dollars exchanged increased to $944.35 million from $690.84 million on Monday.

Markets will be closed on Wednesday for a religious holiday.

The peso strengthened after November inflation slowed for the third straight month, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said in a Viber message.

Inflation slowed to 4.2% in November from 4.6% in October, the local statistics agency reported on Tuesday. This was still above the Philippine central bank’s 2-4% target for the year and faster than the 4% median estimate by 18 analysts in a BusinessWorld poll last week.

The slower increase in food prices mainly caused easing inflation last month, the Philippine Statistics Authority (PSA) said.

Inflation in the 11 months to November was 4.5%, still above the 4.3% forecast by the Bangko Sentral ng Pilipinas.

The decline in the country’s jobless rate had also boosted the peso, Mr. Ricafort said.

The unemployment rate in October fell to 7.4% from 8.9% in September. The number of jobless Filipinos fell to 3.5 million from 4.25 million.

Mr. Ricafort expects the peso to move within P50.28 to P50.48 a dollar on Wednesday.

Philippine stocks gain as Omicron worries wane

BW FILE PHOTO

By Marielle C. Lucenio

PHILIPPINE shares rose on Tuesday after being in the red for much of the trading hours, as investors slowly digested news that November inflation had eased to the slowest in four months.

Market fears around the Omicron coronavirus variant had also ebbed after reports that its impact could be mild.

The 30-member Philippine Stock Exchange index (PSEi) gained 0.23% or 16.56 points to close at 7,147.30. The broader all-share index fell by 0.17% or 6.58 points to 3,805.51.

“Better economic data, inflation rate in November at 4.2% and an unemployment rate of 7.4% in October also helped to push the market into green territory,” Claire T. Alviar, senior research and engagement officer at Philstocks Financial, Inc. said in a Viber message.

Markets will be closed on Wednesday for a religious holiday.

Inflation last month eased to 4.2%, the lowest since July and supporting expectations that the Philippine central bank will keep key interest rates steady at its last meeting for the year to support economic recovery.

This was higher than the 4% mediate estimate by economists in a BusinessWorld poll last week and above the Bangko Sentral ng Pilipinas’s (BSP) 3.3-4.1% forecast.

The BSP has kept policy rates at record lows to support economic recovery from a global coronavirus pandemic. It is expected to keep the rates steady until yearend. Its next policy meeting is set for Dec. 16.

“Local market sentiment was also supported by lower global oil prices recently and the benchmark 10-year US Treasury yield, which is still low amid easing market concerns over the Omicron variant,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC) said in a Viber message.

US Treasury yields rose on Monday after the benchmark 10-year securities climbed back above 1.4% on Friday in the wake of November job data, Reuters reported.

The Dow Jones Industrial Average rose by 1.87% or 646.95 to 35,227.03; the S&P 500 gained 1.17% or 53.24 points to 4,591.67; and the Nasdaq Composite added 0.93% or 139.68 points to 15,225.15 on Monday.

Back home, majority of sectoral indices fell on Tuesday except for holding companies that climbed by 1.11% or 75.77 points to close at 6,890.42, and property, which rose by 0.46% or 15.09 points to 3,267.92.

Meanwhile, financials shed 0.70% or 11.11 points to 1,574.02; industrials were down by 0.63% or 66.07 points to 10,317.16; mining and oil slid by 0.44% or 40.97 points to 9,198; and services fell by 0.15% or 2.97 points to 1,973.79.

Value turnover increased to P7.86 billion, with 1.98 billion stocks switching hands, up from P6.55 billion worth of shares traded on Monday.

Decliners outnumbered advancers, 137 against 63, while 36 stocks closed unchanged.

Net foreign selling decreased to P259.70 million from P269.52 million in the previous trading day.

“While we observe in the coming days if the index trades closer to 7,454.5 points, 6,800 seems to be the support level,” Darren Blaine T. Pangan, a trader at Timson Securities, Inc. said in a Viber message.

Mr. Ricafort pegged the support level at 7,000, while immediate resistance was at 7,200-7,270 points.

BW Insights: Fintech’s Place in the Growth of Cryptocurrencies

In the past years, the use of cryptocurrencies has thrived in the Philippines and is even expected to grow mainstream. Early in 2021, the Statista Global Consumer Survey revealed that the Philippines is the third highest adapter of cryptocurrency, with remittance payments playing a significant role in its widespread use.

As the awareness on cryptocurrency continues to widen, what will the cryptocurrency’s place in the Philippine economy be in the long run?

Join BusinessWorld Insights and experts on a discussion themed “Fintech’s Place in the Growth of Cryptocurrencies.”

This session of #BUSINESSWORLDINSIGHTS is supported by Bank Marketing Association of the Philippines, British Chamber of Commerce of the Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, and The Philippine STAR.

Religion, blood transfusion, and vaccination

PXHERE 

Jehovah’s Witnessa Christian denomination that avoids blood transfusions, views vaccination against coronavirus disease 2019 (COVID-19) as a personal decision. 

“Many of Jehovah’s Witnesses choose to get vaccinated,” said Gideon L. Aves, director of Hospital Information Services for Jehovah’s Witnesses in the Philippines. 

Since the pandemic broke out, he added, the denomination has published reminders in hundreds of languages that encourage adherence to safety protocols.  

Jehovah’s Witnesses choose to receive medical care that is compatible with their Bible-based beliefs to avoid blood transfusions.   

The denomination’s Hospital Liaison Committees (HLCs) have been working with healthcare professionals and hospitals to offer assistance to Jehovah’s Witness patients, their families, and the physicians who care for them.   

The Christian ministers are chosen based on their capacity to render pastoral care for fellow Witnesses even during times of emergency, said Mr. Aves, director of Hospital Information Services for Jehovah’s Witnesses in the Philippines, in an e-mail to BusinessWorld 

The ministers are trained on the basic functions of the blood, as well as knowledge on the different clinical strategies to avoid blood transfusions in cases that include surgery, critical care medicine, and gastroenterology.  

There are 1,700 HLCs in 100 worldwide. In the Philippines, there are 22 HLCs that collaborate with physicians and hospitals, including Asian Hospital and Medical Center, Makati Medical Center, National Children’s Hospital, Vicente Sotto Memorial Medical Center Cebu, Eastern Visayas Medical Center in Tacloban, and Cagayan Valley Medical Center in Tuguegarao.  

For diseases like anemia and surgeries like caesarian sections that typically require blood transfusion, Jehovah’s Witness focus on controlling blood loss through improving hematopoiesis (or the patient’s own production of blood cells), reducing the quantity and frequency of phlebotomy (or the drawing of blood for analysis), and minimally invasive surgical techniques (if noninvasive approaches are unavailable). 

The advantages of bloodless medical procedures are the zero likelihood of being affected by blood-borne pathogens, as well as unknown blood transfusion reactions.  

Techniques used by the US Johns Hopkins’ Center for Bloodless Medicine and Surgery include pre-surgery medications that increase the number of red blood cells; the dilution of blood which lessens the impact of blood loss during surgery; advanced hemostatics (products that stop bleeding) that can be used before, during, and after surgery; and electrocautery that quickly seals off bleeding blood vessels.  

Patients have the right to make decisions about their medical treatments, per the Patient’s Bill of Rights, and the care of patients requires meeting their individual needs, culture, and beliefs.  

According to Cultural Religious Competence In Clinical Practice, published in 2021, preservation of life overrides guidelines: In a life-threatening situation, there are no restrictions on medications and surgical interventions.   

There are 232,587 Jehovah’s Witnesses in the Philippines. — Patricia B. Mirasol 

To address vaccine inequity, boost regional manufacturing capacity — International Vaccine Institute

REUTERS

The world makes two billion coronavirus disease 2019 (COVID-19) vaccine doses a month, yet 95% of people in low-income countries have yet to receive a single dose, said Dr. Jerome Kim, director general of the non-profit International Vaccine Institute.  

“Manufacturers deserve a lot of credit for developing vaccines within 11 months of the identification of a pathogen,” Dr. Kim said in a Nov. 22 discussion at the Future of Healthcare Week Asia event organized by The Economist. With the uneven global distribution, however, “there’s something about making regionally that we have to work on in order to achieve the kind of equity we’ve been talking about.”  

To prepare for the next inevitable pandemic, issues on equitable distribution — including strengthening manufacturing and diagnostics capacities on the regional level — have to be addressed. 

Funding for COVID-19 treatments, diagnostics, and equipment is short by $13.7 billion as of October, according to the World Health Organization (WHO). 

“When you look at the map of where variants are being sequenced, when you look at the map of where COVID-19 diagnostics are being done, they’re not being done in countries with the burden of the highest number of unvaccinated people,” Dr. Kim said. “What’s emerging in those areas and what have we really done to address this?”  

Omicron, COVID-19’s latest variant, was first reported to WHO from South Africa on Nov. 24Only five of Africa’s 54 countries are on track to reach the target of fully vaccinating 40% of the population by end-2021.  

Asian countries, said Dr. Kim, have done well on keeping people alive while having reasonably functioning economies.  

“It’s hard to say there was a country with a playbook that everyone knew was going to work,” he said. “I don’t want to say cut them some slack, but it is very difficult to devise policy in the middle of the pandemic.”   

Taiwan, which had a streak of 253 days without a single reported infection between April to December 2020, was earlier hailed as one of the world’s COVID-19 success stories. 

“We have done to the extent possible the best we could,” said Kung-Yee Liang, president of Taiwan’s National Health Research Institutes, adding that government transparency helped gain public trust. “We learned from SARS, MERS, and influenza. I think the public has been well-educated on wearing masks and washing hands.”   

WATCH OUT FOR AMR 
Not to be discounted is the looming threat of antimicrobial resistance (AMR), which was also tackled at the Nov. 22 event. AMR refers to drug resistance that is driven by the misuse and overuse of antibiotics, which encourages bacteria to evolve to survive and develop new ways of beating the drugs.  

“The current crisis has reinforced the need to develop medicines now — to prepare for the next public health,” said Pierre Gaudreault, Pfizer Biopharmaceuticals Group’s president of Asia (emerging markets). “Unlike COVID-19, AMR is a threat that we’ve seen coming for years.”  

The World Bank’s 2016 research shows that AMR could cost 3.8% of the annual global Gross Domestic Product by 2050.  

China, Mr. Gaudreault said, has a very strong antibiotic stewardship program. The said program was created in synchronization with the pharmaceutical industry, and encompasses physician training, tracking systems, as well as the deployment of educational tools for patients.  

“It’s a good example of what we could replicate in some other countries in Asia,” he added.  

In Taiwan, a survey found that 85% of individually acquired AMR in came from the farm system.  

“There were constant talks between the Ministry of Health and the Ministry of Agriculture on whether we could have better regulation to prevent this,” Mr. Liang said. The balance between farming for profit and human health is not easy, he added. “I am hopeful that this crisis will draw attention to this [concern].” — Patricia B. Mirasol 

Is foam rolling effective for muscle pain and flexibility? The science isn’t so sure

PIXABAY

By Ken Nosaka 

Many physically active people get muscle pain after exercise, known as “delayed onset muscle soreness” or DOMS. 

Foam rolling has emerged as a popular means of alleviating delayed onset muscle soreness and stiff muscles. 

You’re likely to find foam rollers in any gym, or you may have one yourself, and many people swear by using them before and after exercise. 

But what does the science say? Is foam rolling actually effective in reducing delayed onset muscle soreness, and in increasing flexibility? 

Unfortunately, it’s often the case that scientific studies don’t necessarily support anecdotal evidence. 

This seems to be the case with foam rolling. The evidence doesn’t strongly support the use of foam rollers — though some studies do show a small benefit. 

Foam rolling is a type of self-massage, usually using a cylindrical foam roller. 

They were first used in the 1980s, and are now usually used in warm-up and/or cool-down exercises. 

Proponents say foam rolling can reduce muscle pain, and increase flexibility (also known as range of motion). 

But the mechanisms underlying these claims are not well known. 

Foam rollers and other similar devices are claimed to release the tightness of “myofascia.” 

Myofascia is a thin connective tissue that surrounds our muscles. It prevents friction between tissues, and transfers force generated by muscle fibres to the bone. 

Myofascia can become sticky and tight because of a sedentary lifestyle, repetitive movements that overworks one part of the body, injury, or surgery. Tight myofascia can reduce flexibility. 

My research team and I at Edith Cowan University investigated the role of myofascia in delayed onset muscle soreness. 

Participants in our study did 10 sets of six bicep curls, and developed very sore arms in the following days. 

We assessed their muscle soreness one, two, and four days after the exercise. 

We also assessed their pain using an “electrical stimulator” to quantify the sensitivity of the bicep fascia and muscle to electric current. 

We found the fascia surrounding the muscle became more sensitive to electrical stimulation than the muscle itself. 

Scientists think tiny tears in muscle fibres are responsible for delayed onset muscle soreness. But our research suggests damage to, or inflammation of, myofascia is more associated with delayed onset muscle soreness than damage to muscle fibres. 

Foam rolling claims to stretch the myofascia and thereby could reduce such soreness and inflammation. 

The evidence is still emerging, but there have been some studies into foam rolling. 

A systematic review article of foam rolling based on 49 studies concluded foam rolling reduced muscle stiffness and pain, and increased range of motion. But the authors stated it should be used in combination with dynamic stretching and an active warm-up before exercise. 

Another study examined whether foam rolling was effective in reducing delayed onset muscle soreness and enhancing muscle recovery. The participants performed two workouts four weeks apart, each involving ten sets of ten back squats. 

One group then foam rolled for 20 minutes immediately, 24 and 48 hours after exercise, while another group did no foam rolling at all. Foam rolling had a moderate effect on reducing delayed onset muscle soreness. 

But another recent review article with meta-analysis (which combines the results of multiple scientific studies) of 21 studies on foam rolling concluded the effects of foam rolling on performance and recovery were very minor, and foam rolling should be used as a warm-up activity rather than a recovery tool. 

The article also found foam rolling before exercise resulted in a small improvement in flexibility by 4%. And rolling after exercise reduced muscle pain perception by 6%. 

But statistical significance doesn’t necessarily reflect practical significance. A 4% increase in flexibility and 6% reduction in pain may not be noticed very much by most people. 

Also, multiple studies found foam rolling increased range of motion, but only for roughly 20 minutes. 

So, the effects of foam rolling on flexibility do not appear to be large and the long-term effects are inconclusive. 

One problem with this area of research is the rolling protocols used in the studies were diverse with no definitive agreement regarding the ideal number of sets, duration, rolling frequency, or intensity. 

Interestingly, the magnitude of the effect on range of motion following foam rolling is similar to that of stretching. 

So if your goal is to increase range of motion, both stretching and foam rolling can be considered as adequate warm-up routines. No previous studies have clearly shown foam rolling was more effective than other interventions to improve flexibility before exercise. 

But remember: though foam rolling is generally considered safe, it’s better to avoid it if you have a serious injury such as a muscle tear, unless your doctor or a physical therapist has cleared you first. 

  

Ken Nosaka is a Professor of Exercise and Sports Science at Edith Cowan University in Australia. 

This article is republished from The Conversation under a Creative Commons license. Read the original article. 

 

Biden to warn Putin of economic consequences of Ukraine invasion, says official

REUTERS

WASHINGTON – U.S. President Joe Biden will warn Russian President Vladimir Putin of severe economic consequences should Russia go ahead with an invasion of Ukraine, a senior U.S. administration official said on Monday.

Biden and Putin are to hold a video call on Tuesday as the United States tries to head off Russia from launching military action against Ukraine after Moscow massed tens of thousands of troops on the Ukraine border.

Biden spoke to the leaders of France, Germany, Italy and Britain ahead of the call on Monday, discussing their “shared concern about the Russian military build-up on Ukraine‘s borders and Russia’s increasingly harsh rhetoric.” They also called on Russia to de-escalate tensions. The official, in a briefing reporters, said the United States has been working with European allies about a strong response should an invasion go forward. He added that the United States and Europe would impose severe economic pain.

“We believe there is a way forward to allow us to send a clear message to Russia that there will be enduring and meaningful costs” should an invasion take place, the official said.

Russia has dismissed U.S. media reports about a possible Russian attack on Ukraine, accusing Washington of trying to aggravate the situation while blaming Moscow.

U.S. Secretary of State Antony Blinken spoke on Monday with Ukraine President Volodymyr Zelenskiy and reiterated Washington’s “unwavering support” for Ukraine in the face of “Russian aggression,” the U.S. State Department said.

Zelenskiy said in a tweet that he and Blinken agreed to continue “joint and concerted action.”

Russia has a potential diplomatic off-ramp through the Minsk agreement if it wishes, the official said. This is a previously negotiated agreement aimed at ending war in the Donbas region of Ukraine.

“We’re encouraging Russia to return to dialogue through diplomatic avenues,” the official said, without detailing the economic sanctions that are ready to be imposed.

But a source familiar with the situation said targeting Putin‘s inner circle with sanctions had been discussed and no decision had been made. The person added that Biden was not expected to get deep into details of the potential actions with Putin but instead would warn of economic costs.

Another person familiar with the situation said sanctions against Russia’s biggest banks were also being considered by the United States and its European allies. Another option was going after Russia’s ability to convert rubles into dollars and other currencies, the source said.

CNN reported the United States could include the extreme step of disconnecting Russia from the SWIFT international payment system used by banks around the world.

Bloomberg reported that the U.S. and European allies are weighing sanctions targeting the Russian Direct Investment Fund as well as the country’s ability to convert rubles for dollars and other foreign currencies should Putin invade Ukraine.

The U.S. could also restrict the ability of investors to buy Russian debt on the secondary market, Bloomberg added, citing people familiar with the matter.

The White House declined comment.

More than 94,000 Russian troops are believed to be massed near Ukraine‘s borders. Ukraine Defense Minister Oleksii Reznikov said on Friday that Moscow may be planning a large-scale military offensive at the end of January, citing intelligence reports.

The U.S. official said it was still unclear whether Putin had made a final decision to launch an invasion.

The United States does not seek conflict with Russia but when necessary will impose meaningful consequences for harmful actions, the official added.

CIA Director William Burns said that while Putin‘s intentions were not clear, he would never underestimate the Russian leader’s “risk appetite.”

“What we do know is that he is putting the Russian military, the Russian security services in a place where they could act in a pretty sweeping way,” Burns said at a Wall Street Journal event.

Russia has said it can move troops around on Russian territory as it sees fit and that they pose no external threat.

Ukraine‘s ties with Russia collapsed in 2014 after Moscow-backed forces seized Ukraine‘s Crimean Peninsula, which Kyiv wants back. Kyiv says some 14,000 people have been killed in fighting since then.

Since the latest crisis started, Moscow has set out demands for legally binding security guarantees from the West that NATO will not admit Ukraine as a member or deploy missile systems there to target Russia. – Reuters

U.S. financial regulators investigate Trump social media deal

Former U.S. President Donald Trump — REUTERS/LEAH MILLIS/FILE PHOTO

Wall Street’s top financial regulators are investigating former U.S. President Donald Trump‘s $1.25 billion deal to float his new social media venture on the stock market, a filing showed.

Digital World Acquisition Corp, the blank-check acquisition firm that agreed to merge with Trump Media & Technology Group Corp (TMTG), disclosed in a regulatory filing on Monday that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) were probing the deal.

TMTG did not respond to requests for comment.

Digital World said the SEC asked for documents in early November relating to communications between Digital World and TMTG, meetings of Digital World’s board, policies and procedures relating to trading, the identification of banking, telephone, and email addresses and the identities of certain investors.

The SEC stated in its request that its investigation does not mean the regulator has concluded that anyone violated the law, Digital World added.

U.S. Senator Elizabeth Warren had asked the SEC to investigate TMTG’s proposed merger with Digital World over potential violations of securities laws, including whether they had sufficiently disclosed when deal talks began.

The SEC declined to comment on Monday.

The investigations come amid excitement among Trump supporters and retail investors over the planned deal. Frantic trading of Digital World’s shares has driven TMTG’s valuation from $875 million in October to close to $4 billion.

Digital World, whose shares ended trading on Wednesday down 2.6% at $43.81, said FINRA had asked for details in late October and early November about “surrounding events,” including a review of trading, that preceded the announcement of the merger.

A Reuters review of trading data showed unusual activity on Oct. 20 ahead of the merger’s announcement later that day. Over 1 million warrants, worth a total of around $500,000, were traded, compared with only 119,000 warrants on Oct. 19, according to Refinitiv data.

FINRA said in its request that its inquiry should not be construed as an indication that any violations of Nasdaq rules or federal securities laws have occurred, Digital World added.

FINRA declined to comment.

 

TOTAL PROCEEDS

TMTG said on Saturday it had entered into agreements to raise about $1 billion from a group of unidentified investors, bringing the deal‘s total proceeds to $1.25 billion.

But TMTG will receive this money only if the deal is completed. A vote required for Digital World shareholders to approve the transaction has yet to be scheduled.

Some on Wall Street have been reluctant to associate with Trump, and the Digital World filings did not disclose which investors backed the $1 billion fundraising.

Trump was banned from top social media platforms after the Jan. 6 attack by his supporters on the U.S. Capitol amid concerns he would inspire further violence.

The Capitol attack was based on unsubstantiated claims of widespread fraud in last year’s presidential election.

With the exception of Trump being named TMTG chairman, the company had not identified any of its top executives until Monday, when it announced that Devin Nunes would step down as a U.S. representative to join as its CEO in January.

Nunes, the top Republican on the House Intelligence Committee, has been one of Trump‘s staunchest allies in Congress.

In its first financial projections since the announcement of the merger, Digital World said it expected the average revenue per user of Trump‘s social media app, TRUTH Social, to grow to $13.50 in 2026, with 81 million total users.

That is despite the app not having reached even trial mode. TMTG plans to launch the beta version of Truth Social in the first quarter of 2022.

Digital World also said it expected TMTG to reach 40 million total subscribers by 2026. By comparison, social media platform Twitter Inc has over 200 million daily active users. – Reuters

Global finance system partly to blame for inequality – World Bank’s Malpass

WASHINGTON – World Bank President David Malpass on Monday said fiscal and monetary policies were operating in “uncharted territory” since the start of the COVID-19 pandemic and may be contributing to a sharp rise in global inequality and poverty.

Malpass told a roundtable hosted by Chinese Premier Li Keqiang the number of people in extreme poverty had increased by over 100 million since the beginning of the pandemic even as global spending has increased to an all-time record.

Advanced economies have rebounded, while the poorest countries had seen only a weak rebound, or none at all, he said. This was causing “tragic reversals” in median incomes, women’s empowerment and nutrition, he said, and inflation, supply chain bottlenecks, and high energy prices were aggravating these trends.

“Part of the inequality problem is global finance itself and the unequal structure of the stimulus,” Malpass said, noting that prevailing sovereign debt, fiscal and monetary policies were adding to inequality.

Malpass said monetary policy in the advanced economies had long focused on reserve requirement ratios and limited growth in bank reserves to achieve stability in currencies and prices, an approach still used by China.

Other major central banks had switched to a “post-monetarism system” of using very large amounts of excess bank reserves to purchase and hold long-duration bonds and other assets, which he said provided price support for a highly select group of assets.

That approach, he said, excluded small businesses and developing countries, while restraining policy through regulation of liquidity and bank capitalization ratios.

Fiscal policy was also channeling resources to narrow groups within major borrowers, while leaving others behind, and sovereign debt policies were contributing to inequality.

Malpass repeated his call for greater transparency in debt contracts and a freeze in debt payments for countries with unsustainable debt. He said creditors should move away from collateral and escrow arrangements.

“As one of the largest creditors of developing countries, China’s active participation and strong voice in debt reduction efforts are very much needed and would benefit all participants by encouraging sustainable investment and debt,” he said. – Reuters

Global oil CEOs stress need for fossil fuels despite push for cleaner energy

HOUSTON – A global energy conference devoted to future technologies and low-carbon strategies kicked off in Houston on Monday with top executives from energy companies affirming the need for more oil for decades to come.

The World Petroleum Conference’s four days of discussion started with chief executives from global giants Exxon Mobil Corp, Saudi Aramco, Chevron Corp and Halliburton Co all promoting the need to deliver oil and gas globally even as the world transitions to cleaner fuels.

World fossil fuel demand has rebounded sharply in 2021, with natural gas already at pre-pandemic levels and oil nearing levels reached in 2019. As demand has soared, economies in Europe and Asia have had to face power and heating supply shortages, forcing them to scramble for fuel or limit demand, and prices have surged. At the same time, numerous large oil-producing countries have not been able to keep up with output targets.

“The world is facing an even more chaotic energy transition,” said Saudi Aramco CEO Amin Nasser. “Energy security, economic development and affordability are clearly not receiving enough attention. Until they are, and we clear the gaps in the transition strategy, the chaos will only intensify.”

Large global majors, especially those based in Europe, are limiting exploration and production in an attempt to shift to renewable power development and as governments promote efforts to cut carbon emissions to deal with rising worldwide temperatures.

Anders Opedal, CEO of Norway’s Equinor, said energy companies have a responsibility to bring down emissions and provide energy. “We will need oil and gas for many years to come but with reduced emissions,” he said.

Exxon is targeting net zero greenhouse gas emissions from its U.S. Permian assets by 2030, as part of a plan to reduce upstream emissions.

“The fact remains, under most credible scenarios, including net zero pathways, oil and natural gas will continue to play a significant role in meeting society’s need,” Exxon CEO Darren Woods said at the conference.

More than 80% of the world’s energy demand is supplied by oil and gas, said Stephen Green, Chevron’s head of North America exploration and production. Chevron is committed to reducing carbon emissions until “game changing technologies” allow a lower carbon energy environment, Green said.

“The world will continue to need energy to get us through the transition,” he said.

 

FIRST MOVERS

U.S. officials took the opportunity to talk about President Joe Biden’s clean energy agenda while insisting on the need to address high fuel prices. The Biden administration has had a strained relationship with the fossil fuel industry in its first year in office.

Oil majors need to “step on to the plate” and be part of the climate solution, said David Turk, deputy U.S. Secretary of Energy. “First movers will have significant advantages.”

Washington will not “stand in the way” of companies willing to increase domestic oil production as the industry tries to fully recover, he said.

“We need to make sure everyone has affordable, reliable and resilient energy,” he said.

The conference was sapped of some of its star power at the outset due to COVID-19 travel restrictions that forced OPEC’s secretary general and energy ministers from top oil producing nations like Saudi Arabia, Kazakhstan and Qatar, to bow out, along with the CEOs of BP, Sonatrach and Qatar Energy. – Reuters