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Russia says UK navy blew up Nord Stream, London denies involvement

  • Russia says UK navy personnel blew up pipelines
  • Russia says UK navy personnel helped attack Crimea
  • Russia does not give evidence for claim
  • Britain denies Russian claims

LONDON, Oct 29 (Reuters) – Russia’s defence ministry said on Saturday that British navy personnel blew up the Nord Stream gas pipelines last month, a claim that London said was false and designed to distract from Russian military failures in Ukraine.

Russia did not give evidence for its claim that a leading NATO member had sabotaged critical Russian infrastructure amid the worst crisis in relations between the West and Russia since the depths of the Cold War.

The Russian ministry said that “British specialists” from the same unit directed Ukrainian drone attacks on ships of Russian Black Sea fleet in Crimea earlier on Saturday that it said were largely repelled by Russian forces, with minor damage to a Russian minesweeper.

“According to available information, representatives of this unit of the British Navy took part in the planning, provision and implementation of a terrorist attack in the Baltic Sea on September 26 this year – blowing up the Nord Stream 1 and Nord Stream 2 gas pipelines,” the ministry said.

Britain denied the claim.

“To detract from their disastrous handling of the illegal invasion of Ukraine, the Russian Ministry of Defence is resorting to peddling false claims of an epic scale,” it said.

“This invented story, says more about arguments going on inside the Russian government than it does about the West.”

Russia has previously blamed the West for the explosions that ruptured the Russian-built Nord Stream 1 and Nord Stream 2 pipelines on the bed of the Baltic Sea.

But it had not previously given specific details of who it thinks was responsible for the damage to the pipelines, previously the largest routes for Russian gas supplies to Europe.

A sharp drop in pressure on both pipelines was registered on Sept. 26 and seismologists detected explosions, triggering a wave of speculation about sabotage to one of Russia’s most important energy corridors.

Reuters has not been able to immediately verify any of the conflicting claims about who was to blame for the damage.

PIPELINE MYSTERY

Sweden and Denmark have both concluded that four leaks on Nord Stream 1 and 2 were caused by explosions, but have not said who might be responsible. NATO Secretary-General Jens Stoltenberg has called the damage an act of sabotage.

Sweden has ordered additional investigations to be carried out into the damage done to the pipelines, the prosecutor in charge of the case said in a statement on Friday.

The Kremlin has repeatedly said allegations of Russian responsibility for the damage were “stupid” and Russian officials have said Washington had a motive as it wants to sell more liquefied natural gas (LNG) to Europe.

The United States has denied involvement.

The Nord Stream 1 and Nord Stream 2 pipelines have a joint annual capacity of 110 billion cubic metres – more than half of Russia’s normal gas exports volumes.

Sections of the 1,224-km (760-mile) long pipelines, which run from Russia to Germany, lie at a depth of around 80-110 metres.

Russia said meanwhile that Ukrainian forces attacked ships from the Black Sea Fleet in Sevastopol, the biggest city in Russian-annexed Crimea, in the early hours of Saturday.

“Nine unmanned aerial vehicles and seven autonomous marine drones were involved in the attack,” the defence ministry said.

“The preparation of this terrorist act and the training of servicemen of the Ukrainian 73rd Special Center for Naval Operations were carried out under the guidance of British specialists located in the town of Ochakiv.”

All the air drones were destroyed though minor damage was done to the minesweeper Ivan Golubets, the ministry said. Sevastopol is the headquarters of Russia’s Black Sea Fleet.

Reporting by Reuters
Editing by Guy Faulconbridge and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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Elon Musk manages free speech versus ‘hellscape’ at Twitter

Oct 28 (Reuters) – Mere hours after Elon Musk kicked off a new era at Twitter Inc, the billionaire owner was deluged with pleas and demands from banned account holders and world leaders.

The flood of requests underscore the challenge the CEO of electric car maker Tesla Inc (TSLA.O) faces, balancing a promise to restore free speech while preventing the platform from descending into a “hellscape,” as he had vowed in an open letter to advertisers on Thursday.

Former U.S. President Donald Trump, who was permanently banned from Twitter over accusations of inciting violence after the Jan. 6, 2021 capitol riots, welcomed the takeover, but said little about a return to Twitter. “I am very happy that Twitter is now in sane hands, and will no longer be run by Radical Left Lunatics and Maniacs who truly hate our country.” read more

Dmitry Medvedev, former Russia president and current deputy chairman of Russia’s Security Council, tweeted his congratulations: “Good luck @elonmusk in overcoming political bias and ideological dictatorship on Twitter. And quit that Starlink in Ukraine business.”

Others asked Musk to reverse penalties inflicted by the social media platform. In response to @catturd2, an anonymous account with 852,000 followers, known for being a big supporter of Trump’s election fraud claims, and who said it was “shadowbanned,” Musk tweeted “I will be digging in more today.”

The editor-in-chief of Russian state-controlled broadcaster RT, Margarita Simonyan, asked Musk to “unban RT and Sputnik accounts and take the shadow ban off mine as well?”

The pressure is mounting on Musk and Twitter as he is set to address the Twitter staff on Friday after closing the deal.

“Hey @ElonMusk, now that you own Twitter, will you help fight back against Trudeau’s online censorship bill C-11?” tweeted Canada Proud, an organization working to vote out Canadian Prime Minister Justin Trudeau.

“First I’ve heard,” Musk responded in a tweet on Friday.

DAY ONE

Several employees who spoke with Reuters on Friday said there had been no communication from management about what happens next.

Musk was expected to address employees on Friday, but the employees said they had not received any notice by the late afternoon.

Two sources familiar with the matter said Musk’s teams were investigating Twitter’s code and asking questions about how aspects of the platform work.

Musk appeared to have joined the company’s Slack channel by Friday, according to a screenshot seen by Reuters.

Musk also tweeted on Friday that Twitter will form a “content moderation council with widely diverse viewpoints,” and that no major decisions on moderation or account reinstatements will be made before it convenes.

Despite an appeal to advertisers on Thursday that he hoped to make Twitter “the most respected advertising platform in the world,” at least one major automaker – GM (GM.N) – said it temporarily paused its advertising and was working to “understand the direction of the platform under their new ownership.”

Employees also continued to fret about the future of their jobs. Fewer than 10% of 266 Twitter employees who participated in a poll on messaging app Blind expected to still have their jobs in three months. Blind allows employees to air grievances anonymously after they sign up with corporate emails.

Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to people familiar with the matter. He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform.

Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out, the sources added.

Musk, who also runs rocket company SpaceX, plans to become Twitter’s interim CEO, according to a person familiar with the matter and following an earlier report by Reuters. Musk also plans to scrap permanent bans on users, Bloomberg said, citing a person familiar with the matter.

Twitter, Musk and the executives did not immediately respond to requests for comment.

‘CHIEF TWIT’

Before closing the deal, Musk walked into Twitter’s headquarters on Wednesday with a big grin and a porcelain sink, subsequently tweeting “let that sink in.” He changed his Twitter profile description to “Chief Twit.”

European regulators also reiterated past warnings that, under Musk’s leadership, Twitter must still abide by the region’s Digital Services Act, which levies hefty fines on companies if they do not control illegal content.

“In Europe, the bird will fly by our EU rules,” EU industry chief Thierry Breton tweeted on Friday morning.

European Parliament lawmaker and civil rights proponent Patrick Breyer suggested people look for alternatives where privacy is a priority.

“Twitter already knows our personalities dangerously well due to its pervasive surveillance of our every click. Now this knowledge will be falling into Musk’s hands.”

Musk has indicated he sees Twitter as a foundation for creating a “super app” that offers everything from money transfers to shopping and ride-hailing.

But Twitter is struggling to engage its most active users who are vital to the business. These “heavy tweeters” account for less than 10% of monthly overall users but generate 90% of all tweets and half of global revenue.

Musk will face a challenge building revenue “given that the controversial opinions he appears to want to give more of a free rein to are often unpalatable to advertisers,” said Hargreaves Lansdown analyst Susannah Streeter.

As news of the deal spread, some Twitter users were quick to flag their willingness to walk away.

“I will be happy to leave in a heartbeat if Musk, well, acts as we all expect him to,” said a user with the @mustlovedogsxo account.

Reporting by Sheila Dang in Dallas; additional reporting by David Shepardson and Katie Paul; Editing by Kenneth Li, Nick Zieminski, Deepa Babington and Jacqueline Wong

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EXCLUSIVE United States to put United Nations focus on Iran protests

UNITED NATIONS, Oct 28 (Reuters) – The United States will next week put the United Nations spotlight on protests in Iran sparked by the death of a young woman in police custody and look for ways to promote credible, independent investigations into Iranian human rights abuses.

The United States and Albania will hold an informal U.N. Security Council gathering on Wednesday, according to a note outlining the event, seen by Reuters. Iranian Nobel Peace Prize laureate Shirin Ebadi and Iranian-born actress and activist Nazanin Boniadi are set to brief.

“The meeting will highlight the ongoing repression of women and girls and members of religious and ethnic minority groups in Iran,” the note said. “It will identify opportunities to promote credible, independent investigations into the Iranian government’s human rights violations and abuses.”

Independent U.N. investigator on human rights in Iran, Javaid Rehman, is also due to address the meeting, which can be attended by other U.N. member states and rights groups.

Iran has been gripped by protests since the death of 22-year-old Kurdish woman Mahsa Amini in police custody last month. The unrest has turned into a popular revolt by Iranians from all layers of society, posing one of the boldest challenges to the clerical leadership since the 1979 revolution.

Iran has blamed its foreign enemies and their agents for the unrest.

Iran’s mission to the United Nations in New York accused the United States and it allies of abusing their platform “to further their political agenda.”

“Given its hypocrisy, use of a double standard, and selective application of human rights, we find the U.S.’s claims to support Iranian women to be deceptive and lacking in good faith,” it said.

Rights groups have said at least 250 protesters have been killed and thousands arrested across the country. Women have played a prominent part in the protests, removing and burning veils. The deaths of several teenage girls reportedly killed during protests have fuelled more anger.

“The meeting will underscore ongoing unlawful use of force against protesters and the Iranian regime’s pursuit of human rights defenders and dissidents abroad to abduct or assassinate them in contravention of international law,” read the note about the planned meeting.

U.N. spokesman Stephane Dujarric on Friday urged the Iranian authorities to address the “legitimate grievances of the population, including with respect to women’s rights.”

“We condemn all incidents that have resulted in death or serious injury to protestors and reiterate that security forces must avoid all unnecessary or disproportionate use of force against peaceful protestors,” Dujarric told reporters. “Those responsible must be held to account.”

Reporting by Michelle Nichols; Editing by Daniel Wallis

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Exxon’s record-smashing Q3 profit nearly matches Apple’s

  • Oil firm smashes Wall Street forecasts with $19.7 billion profit
  • Exxon’s fossil-fuel bets eclipse rivals Shell, TotalEnergies
  • Company projects flat oil output this year on Russia losses

HOUSTON, Oct 28 (Reuters) – Exxon Mobil Corp (XOM.N) on Friday smashed expectations as soaring energy prices fueled a record-breaking quarterly profit, nearly matching that of tech giant Apple.

Its $19.66 billion third-quarter net profit far exceeded recently raised Wall Street forecasts as skyrocketing natural gas and high oil prices put its earnings within reach of Apple’s (AAPL.O) $20.7 billion net for the same period.

As recently as 2013, Exxon ranked as the largest publicly traded U.S. company by market value – a position now held by Apple. Exxon shares rose 3% to $110.70, a record high that gave it a market value of $461 billion.

Oil company profits have soared this year as rising demand and an undersupplied energy market collided with Western sanctions against Russia over its invasion of Ukraine. U.S. exports of gas and oil to Europe have jumped and promise to set all-time profit records for the industry.

The top U.S. oil producer reported a per-share profit of $4.68, exceeding Wall Street’s $3.89 consensus view, on a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.

“Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest,” Chief Executive Darren Woods told investors. Its quarterly profits “reflect that deep commitment” as well as higher prices, he added.

Exxon led record gains among oil majors in the second quarter and has leapfrogged Shell Plc (SHEL.L) and TotalEnergies SE (TTEF.PA) with earnings almost twice as big from continued bets on fossil fuels as competitors shifted investment to renewables.

Reuters Graphics Reuters Graphics

Exxon banked $43 billion in the first nine months of this year, 19% more than in the same period of 2008, when oil prices traded at a record level of $140 per barrel.

Earnings from pumping oil and gas tripled last quarter while profit from selling motor fuels jumped tenfold compared with year-ago levels. Natural gas sales to Europe and soaring demand for diesel fuel led the company’s better-than-expected results.

“The refining businesses – both in the U.S. and international – was the star performer,” said Peter McNally, an analyst at Third Bridge.

Those rising fuel profits have renewed calls by U.S. President Joe Biden for companies to invest the windfall from this year’s energy price run-up in production rather than buy back their own shares.

Exxon will maintain its $30 billion share buyback through 2023 while increasing dividends, Chief Financial Officer Kathryn Mikells told Reuters. On Friday, it declared a fourth-quarter per-share dividend of 91 cents, up 3 cents, and will pay $15 billion to shareholders this year.

Exxon said its U.S. oil and gas production from the Permian Basin was near 560,000 barrels of oil and gas per day (boepd), a record. Production for the year will increase about 20% over 2021, said CEO Woods.

“We’re optimizing and adjusting our development plans,” he told analysts, with the full-year production gain below the 25% increase Exxon had forecast in February.

Results also were helped by an almost 100,000-boepd increase over the previous quarter in Guyana, where Exxon leads a consortium responsible for all output in the South American nation.

But its withdrawal from Russia reduced its overall production forecast for the year by about 100,000 barrels per day. Exxon said its Russian assets were expropriated.

“We are going to end up at about 3.7 million barrels a day for the full year,” Mikells said, down from a 3.8 million bpd goal set in February.

Reporting by Sabrina Valle; Editing by Ana Nicolaci da Costa, Jonathan Oatis and Marguerita Choy

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Musk begins his Twitter ownership with firings, declares the ‘bird is freed’

  • Musk says the “bird is freed” after $44 billion deal
  • Musk fires Twitter CEO, CFO, policy chief
  • Some Twitter users flag willingness to walk away
  • Poll shows employee job concerns
  • EU warns: “This bird will fly by our rules”

Oct 28 (Reuters) – Elon Musk has taken ownership of Twitter Inc (TWTR.N) with brutal efficiency, firing top executives but providing little clarity over how he will achieve the ambitions he has outlined for the influential social media platform.

“The bird is freed,” he tweeted after he completed his $44 billion acquisition on Thursday, referencing Twitter’s bird logo in an apparent nod to his desire to see the company have fewer limits on content that can be posted.

The CEO of electric car maker Tesla Inc (TSLA.O) and self-described free speech absolutist has, however, also said he wants to prevent the platform from becoming an echo chamber for hate and division.

Other goals include wanting to “defeat” spam bots on Twitter and make the algorithms that determine how content is presented to its users publicly available.

Yet Musk has not offered details on how he will achieve all this and who will run the company. He has said he plans to cut jobs, leaving Twitter’s 7,500 employees fretting about their future. He also said on Thursday he did not buy Twitter to make more money but “to try to help humanity, whom I love.”

In a running poll on messaging app Blind about whether Twitter employees will be employed in the company in three months, less that 10% voted “yes.” Of the 266 participants, 38% said “No” and over 55% chose the “popcorn” option. Blind allows anonymous messaging by employees to air their grievances where people can sign up with their corporate emails.

Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to people familiar with the matter. He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform.

Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out, the sources added.

Musk, who also runs rocket company SpaceX, plans to become Twitter’s CEO after completing the acquisition and also plans to scrap permanent bans on users, Bloomberg reported, citing a person familiar with the matter.

Twitter, Musk and the executives did not immediately respond to requests for comment.

‘CHIEF TWIT’

Before closing the deal, Musk walked into Twitter’s headquarters on Wednesday with a big grin and a porcelain sink, subsequently tweeting “let that sink in.” He changed his Twitter profile description to “Chief Twit.”

He also tried to calm employee fears that major layoffs are coming and assured advertisers that his past criticism of Twitter’s content moderation rules would not harm its appeal.

“Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!” Musk said in an open letter to advertisers on Thursday.

As news of the deal spread, some Twitter users were quick to flag their willingness to walk away.

“I will be happy to leave in a heartbeat if Musk, well, acts as we all expect him to,” said a user with the @mustlovedogsxo account.

European regulators also reiterated past warnings that, under Musk’s leadership, Twitter must still abide by the region’s Digital Services Act, which levies hefty fines on companies if they do not control illegal content.

“In Europe, the bird will fly by our EU rules,” EU industry chief Thierry Breton twitted on Friday morning, posting in a self-reply a short video of Breton and Musk after their meeting last May.

In an indication of the challenges ahead, Bollywood actress Kangana Ranaut, who was banned from Twitter last year for violating its rules on hateful and abusive conduct, applauded Musk’s takeover on Instagram and shared requests from fans to have her account restored.

Musk also said in May he would reverse the ban on Donald Trump, who was removed after the attack on the U.S. Capitol. The former U.S. president has said he won’t return to the platform and has instead launched his own social media app, Truth Social.

A representative for Trump did not immediately respond to a Reuters request for comment.

Musk has indicated he sees Twitter as a foundation for creating a “super app” that offers everything from money transfers to shopping and ride-hailing.

But Twitter is struggling to engage its most active users who are vital to the business. These “heavy tweeters” account for less than 10% of monthly overall users but generate 90% of all tweets and half of global revenue.

A SAGA

The deal’s road to fruition was full of twists and turns that sowed doubt over whether it would happen at all. It began on April 4, when Musk disclosed a 9.2% Twitter stake, becoming the company’s largest shareholder.

The world’s richest person then agreed to join Twitter’s board, only to balk at the last minute and offer to buy the company instead for $54.20 per share, an offer that Twitter thought might be another of Musk’s cannabis jokes.

Musk’s offer was real, and over the course of just one weekend later in April, the two sides reached a deal at the suggested price. This happened without Musk carrying out any due diligence on the company’s confidential information.

In the weeks that followed, Musk had second thoughts. He complained publicly about Twitter’s spam accounts and his lawyers then accused Twitter of not complying with his requests for information on the subject.

The acrimony resulted in Musk telling Twitter on July 8 he was terminating the deal. Four days later, Twitter sued Musk to force him to complete the acquisition.

By then, the stock market had plunged on concerns about a potential recession. Twitter accused Musk of buyer’s remorse, arguing he wanted out of the deal because he thought he overpaid.

Most legal analysts said Twitter had the strongest arguments and would likely prevail in court.

On Oct. 4, just as Musk was set to be deposed by Twitter’s lawyers, he performed another U-turn, offering to complete the deal as promised. He managed to do that, just one day ahead of a deadline given by a judge to avoid going to trial.

Twitter shares ended trade on Thursday up 0.3% at $53.86, just under the agreed price. The stock will be delisted from the New York Stock Exchange on Friday.

Reuters Graphics Reuters Graphics

Reporting by Sheila Dang and Greg Roumeliotis in New York; Additional reporting by Tanvi Mehta in New Delhi and Miyoung Kim in Singapore; Editing by Nick Zieminski, Edwina Gibbs and Matt Scuffham

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Apple earnings rise as economic gloom hits tech

Oct 27 (Reuters) – Apple Inc (AAPL.O) on Thursday reported revenue and profit that topped Wall Street targets, one of the few bright spots in a tech sector battered by spending cutbacks due to inflation.

The forecast for the holiday quarter was more grim. While not providing specific numbers, Apple said revenue growth would fall below 8% in the December quarter but did not go as far as Amazon.com AMZN.O, whose dire holiday outlook sent its shares down 14%.

Apple shares initially dipped in after-hours trading but recovered in positive territory.

The Cupertino, California-based tech giant was saved by its oldest technology, its laptop computers, while its star, the iPhone, stumbled.

Although iPhone sales were not as strong as some analysts had targeted, they were still a record for the September quarter. Mac sales of $11.5 billion were far head of analyst estimates of $9.36 billion.

Apple’s results showed some resilience in the face of a weak economy and strong U.S. dollar that has led to disastrous reports from many tech companies. Like Facebook parent Meta (META.O) and Snap (SNAP.N), Apple is seeing softness in advertising spending.
Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data.

“We did better than we anticipated, in spite of the fact that foreign exchange was a significant negative for us,” said Chief Financial Officer Luca Maestri.

The rising U.S. dollar has hit many companies such as Apple that generate substantial foreign revenue and are getting less cash back when they convert it. For consumers, it increases the price of new devices when bought in countries outside of the United States.

Apple’s iPhone sales for the company’s fiscal fourth quarter rose to $42.6 billion, when Wall Street expected sales of $43.21 billion, according to Refinitiv IBES.

Maestri said iPhone sales set a record for the September quarter, improving 10% over the prior year’s quarter and exceeding the company’s forecast.

“The iPhone number is a hint of the turmoil and uncertainty in the market, but Apple has different ways to offset,” said Runar Bjorhovde, a research analyst at market research firm Canalys.

Sales of Apple’s Mac computers received a boost from this summer’s introduction of redesigned MacBook Air and MacBook Pro laptops. New tablets went on sale this week.

Apple said its gross margin of 43.3% was a record for the September quarter.

Maestri said the robust computer sales also reflected a backlog of orders, caused by a prolonged shutdown at one of the factories that produces Macs, which the Apple was able to fill in the quarter.

The company reported sales of iPads were $7.2 billion, compared with the average estimate of $7.94 billion.

Apple wearables such as AirPods and other accessories notched sales of $9.7 billion, slightly ahead of the Wall Street forecast of $9.2 billion.

“They said they didn’t have particular issue with supply, so that seems to be a thing of the past,” said Creative Strategies consumer analyst Carolina Milanesi.

Growth in the company’s services business, which has buoyed sales and profits in recent years, saw a rise to $19.2 billion in revenue, below the estimate of $20.10 billion.

Maestri said Apple experienced softness in digital advertising and gaming, as have others in the sector.

“Like other major tech companies, even Apple is suffering from the negative impact of a worsening macro backdrop and ongoing supply chain woes, though it has done a better job of navigating through the challenging environment,” Jesse Cohen, senior analyst at Investing.com.

In China, which has experienced a sharp economic slowdown, Apple reported fourth-quarter sales of $15.5 billion. That is a gain from the prior quarter, when Apple logged sales of $14.6 billion.

Apple said it now has 900 million paying subscribers to its services, up from the previous quarter’s 860 million.

Read more:

Meta stock craters over bleak forecast and expensive metaverse bets

Alphabet’s miss fans inflation fears across digital advertising

Samsung defies chip downturn with aggressive supply and capex plans

Cloud to PCs, Microsoft forecasts spook investors as economy bites

Reporting by Dawn Chmielewski in Los Angeles and Nivedita Balu in Bengaluru; Editing by Peter Henderson and Lisa Shumaker

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Conservative activist steers U.S. Supreme Court college race cases

  • Edward Blum engineered cases against Harvard, UNC
  • Arguments set for Monday; ruling due by end of June

Oct 27 (Reuters) – When the U.S. Supreme Court next week considers ending policies used by many colleges and universities to increase their numbers of Black and Hispanic students, a conservative activist will be on hand to watch this fateful moment in his long quest to erase racial preferences intended to boost diversity in American life.

The challenges to race-conscious admissions policies used by Harvard University and the University of North Carolina were brought by a group called Students for Fair Admissions founded and headed by Edward Blum, a 70-year-old former stockbroker and unsuccessful Republican congressional candidate.

The Supreme Court is scheduled to hear arguments in the two cases on Monday, with rulings due by the end of June. The litigation gives its 6-3 conservative majority another chance to issue blockbuster decisions after rulings four months ago overturning abortion rights and expanding gun rights.

The conservative justices – Clarence Thomas, John Roberts, Samuel Alito, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett – are expected to be receptive to arguments Blum has honed against affirmative action policies, crafted as a remedy to discrimination. As such, Blum may be on the verge of a huge legal victory as he fights race-based policies not only in higher education but in areas such as elections and diversity in corporate America.

“I’m a one-trick pony,” Blum said in an interview. “I hope and care about ending these racial classifications and preferences in our public policy.”

Blum, who is white, has cast his mission as one aimed at creating a colorblind society.

“An individual’s race or ethnicity should not be used to help them or harm them in their life’s endeavors,” Blum said.

His critics paint his work as a war on racial equity aimed at undercutting policies designed to help non-white Americans overcome racial obstacles persisting in U.S. life.

“He’s made it harder for corporations, boards and governments to make racial diversity an explicit goal,” said Kristin Penner, a co-founder of a group called the Coalition for a Diverse Harvard that supports affirmative action. “And thus people of color continue to be blocked out of positions of power.”

Blum’s goal is for the Supreme Court to overturn its own precedents allowing race as a factor in admissions.

Blum lost in a previous case challenging race-conscious student admissions when the court ruled 4-3 in 2016 against a white woman he recruited as a plaintiff suing the University of Texas after being denied admission. Conservative Justice Anthony Kennedy provided the crucial vote. The court has moved rightward since then. Kennedy himself retired in 2018.

With Monday’s arguments, the court will have taken up eight race-related cases engineered by Blum. For instance, a Blum-backed challenge led to a 2013 Supreme Court ruling gutting a central part of the 1965 Voting Rights Act that had forced nine states, mainly in the South, to obtain federal approval for voting rules changes affecting Black and other minority voters.

In addition, Blum last year launched a group called the Alliance For Fair Board Recruitment and filed lawsuits challenging Nasdaq rules and California laws mandating gender and racial diversity on corporate boards.

A 1978 LANDMARK

From his home in South Thomaston, Maine, Blum has orchestrated a 14-year legal campaign to challenge affirmative action in college and university admissions.

The Supreme Court first upheld such affirmative action in a landmark 1978 ruling in a case called Regents of the University of California v. Bakke, holding that race could be considered as one of several factors, along with academic and extracurricular criteria, but racial quotas were prohibited. The court reaffirmed that stance in 2003.

Blum in 2008 recruited Abigail Fisher, the daughter of an old friend, and through his first group, the Project for Fair Representation, helped fund her University of Texas suit that yielded the 2016 ruling he called a “grave disappointment.”

By then, Blum had shifted gears to the next generation of cases, forming Students for Fair Admissions in 2014 and turning his attention to Harvard and UNC. Those lawsuits accused UNC of discriminating against white and Asian American applicants and Harvard of discriminating against Asian Americans.

Boston University School of Law professor Jonathan Feingold said Blum was “transparent” in saying he needed Asian American plaintiffs this time around to sue the universities, allowing him to “spin a narrative that affirmative action is pitting students of color against one another.”

Blum raised more than $8 million from 2015 to 2020 for Students for Fair Admissions, most going to covering legal fees. Big checks came from conservative supporters including DonorsTrust and Searle Freedom Trust. Blum said 5,000 smaller donors also contributed.

Students for Fair Admissions has said it boasts 20,000 members. Its critics said it is not a true membership association at all. No Students for Fair Admissions members served as plaintiffs or testified in court in the Harvard and UNC cases as the group lost in lower courts. The Supreme Court in January agreed to hear appeals backed by Blum in both cases.

The Harvard lawsuit accused the university of violating Title VI of the Civil Rights Act of 1964, which bars discrimination based on race, color or national origin under any program or activity receiving federal financial assistance.

The UNC lawsuit accused that university of violating the U.S. Constitution’s 14th Amendment guarantee of equal protection under the law. Blum and his supporters argue that the 14th Amendment bars government entities including public universities like UNC from treating people differently due to race.

“His efforts and broader project are paying off because now because you have a court that is very receptive to the specific arguments that are being made here,” Feingold said.

For Blum, potential victories over Harvard and UNC may not be the final word in the fight against racial preferences in student admissions.

“It might be the beginning of the end,” Blum said. “More likely, it’s probably the end of the beginning.”

Reporting by Nate Raymond in Boston; Editing by Will Dunham

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Nate Raymond

Thomson Reuters

Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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Russia’s Sechin says Taiwan will return to China ‘on schedule’

  • Sechin: China will get Taiwan on time
  • Sechin praises Saudi Arabia
  • Sechin says BP a ‘shadow’ shareholder
  • BP: continuing to pursue an exit

BAKU, Oct 27 (Reuters) – Igor Sechin, chief executive of Russian oil giant Rosneft (ROSN.MM) and one of Vladimir Putin’s closest allies, on Thursday heaped praise on China’s leaders and said Taiwan would return to its “native harbour” on time.

Sechin said that decisions taken by the 20th Communist Party Congress, which cemented Xi Jinping position as the most powerful Chinese leader since Mao Zedong, would provide for a new level of development for the country.

The deepening “no limits” partnership between the rising superpower of China and the natural resources titan of Russia is one of the most intriguing geopolitical developments of recent years – and one the West is watching with anxiety.

“The position of (China’s) leadership is highly respected, which calmly and openly, without false premises, sets out its positions, even on the most difficult issues, such as the problem of Taiwan, which in this regard can be assessed as somewhat exaggerated,” Sechin told an international economic forum in Baku, previously held in Italy’s Verona.

He said U.S. attempts to create its own complex microchip industry showed that “Taiwan’s return to its native harbour” was “on schedule”.

Taiwan’s Foreign Ministry condemned the comments, saying only the island’s people could decide their future.

“Neither our government, people nor the international community can accept absurd remarks that are in China’s cortege or demean Taiwan’s sovereign status,” it said in a statement.

China claims democratically governed Taiwan as its own territory and has ramped up military and political pressure against the island over the past two years. Taipei strongly rejects Beijing’s sovereignty claims.

Russia has repeatedly warned the United States against meddling in China’s affairs while President Vladimir Putin has explicitly backed Xi over the fate of the island where the defeated Republic of China government fled in 1949 after losing the Chinese civil war to Mao’s communists.

BP’S DIVIDEND

Sechin said Rosneft had transferred $700 million in second-half 2021 dividends into special accounts for BP (BP.L), which remained Rosneft’s “shadow” shareholder despite a decision to leave the company following the start of what Moscow calls its “special military operation” in Ukraine.

BP said its position on Russia has remained unchanged.

“In February we announced our decision to exit Rosneft and our other Russian businesses – we continue to pursue that,” it said in emailed comments.

Sechin also said that Saudi Arabia’s position on the global oil market was “reasonable” and based on analysis of oil supply and demand.

The United States, he said, had tried to persuade Saudi Arabia to postpone oil output cuts as part of OPEC+.

“Today, the energy policy of the (Joe) Biden administration is solving exclusively pre-election tasks with a planning horizon of two weeks, given that the elections to the U.S. Congress are on November 8,” Sechin said.

“This includes attempts to persuade Saudi Arabia to at least postpone the announcement of this decision until the elections.”

The OPEC+ group of global leading oil producers, which includes Saudi Arabia and Russia, agreed this month to cut its combined output by 2 million barrels per day despite opposition from the United States, which wants lower fuel prices.

Saudi Arabia rejected criticism of an OPEC+ decision to cut its oil production target despite U.S. objections and said that Washington’s request to delay the cut by a month would have had negative economic consequences.

Reporting by Nailia Bagirova and Olesya Astakhova; Additional reporting by Ron Bousso and Ben Blanchard in London; Writing by Vladimir Soldatkin; Editing by Guy Faulconbridge, Nick Macfie and Mike Harrison

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Iran’s Khamenei vows revenge after deadly attack on shrine

DUBAI, Oct 27 (Reuters) – Iran’s supreme Leader vowed on Thursday to retaliate against those threatening the country’s security after the massacre of Shi’ite pilgrims, an assault claimed by Islamic State which threatens to inflame tensions amid widespread anti-government protests.

In a statement read on state TV, Ayatollah Ali Khamenei said the assailants “will surely be punished” and called on Iranians to unite.

“We all have a duty to deal with the enemy and its traitorous or ignorant agents,” said Khamenei a day after the attack killed 15 people.

Khamenei’s call for unity appeared to be directed at mostly government loyalists and not protesters whose nearly six-week old movement is seen as a threat to national security by authorities.

Iran’s clerical rulers have faced nationwide protests since the death in police custody of Mahsa Amini, a 22-year-old Kurdish woman, on Sept. 16.

Iranians have called for the death of Khamenei and an end to the Islamic Republic during the protests, which have become one of the boldest challenges to the clerical leadership since the 1979 revolution, drawing many Iranians on to the streets.

Iranian officials said they had arrested a gunman who carried out the attack at the Shah Cheragh shrine in the city of Shiraz. State media blamed “takfiri terrorists” – a label Tehran uses for hardline Sunni Muslim militants such as Islamic State.

A senior official said the suspected attacker was in critical condition after being shot by police.

“The shrine terrorist is in critical condition… and we have not been able to interrogate him yet,” said deputy provincial governor Easmail Mohebipour, quoted by the semi-official Tasnim news agency.

CCTV footage broadcast on state TV on Thursday showed the attacker entering the shrine after hiding an assault rifle in a bag and shooting as worshippers tried to flee and hide in corridors.

Islamic State, which once posed a security threat across the Middle East, has claimed previous violence in Iran, including deadly twin attacks in 2017 that targeted parliament and the tomb of the Islamic Republic’s founder, Ayatollah Ruhollah Khomeini.

Since the peak of its power, when it ruled millions of people in the Middle East and struck fear across the world with deadly bombings and shootings, Islamic State has slipped back into the shadows.

Iran often accuses the West and its regional rivals Israel and Saudi Arabia of fomenting attacks. Saudi Arabia denies this and Israel usually declines to comment on its moves against the Islamic Republic.

Wednesday’s killing of Shi’ite pilgrims came on the same day that Iranian security forces clashed with increasingly strident protesters marking 40 days since Amini’s death.

Iranian human rights groups said there were unconfirmed reports that some members of Amini’s family are under house arrest. Reuters could not verify these reports. Reuters tried to reach Amini’s father and brother.

The authorities, who have accused the United States and other Western countries of fomenting what they call “riots”, have yet to declare a death toll, but state media have said about 30 members of the security forces have been killed.

The activist news agency HRANA said in a posting that at least 252 protesters had been killed in the unrest, including 36 minors.

It said 30 members of the security forces were killed and more than 13,800 people had been arrested as of Wednesday in protests in 122 cities and towns and some 109 universities.

Reporting by Dubai newsroom; Writing by Michael Georgy; Editing by Clarence Fernandez and Nick Macfie

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Credit Suisse seeks billions from investors in make-or-break overhaul

ZURICH, Oct 27 (Reuters) – Credit Suisse plans to raise 4 billion Swiss francs ($4 billion) from investors, cut thousands of jobs and shift its focus from investment banking towards its rich clients, as the bank attempts to put years of scandals behind it.

The Swiss lender outlined on Thursday what its chairman Axel Lehmann dubbed a “blueprint for success”, after it racked up an unexpected 4 billion Swiss franc loss in the third quarter of the year.

The announcement followed torrid weeks for the bank and fell flat with investors. Its stock, which has plumbed record lows in recent weeks, dropped about 14 percent in early trading, valuing the embattled bank around 11 billion francs.

Credit Suisse said clients pulled funds in recent weeks at a pace that saw the lender breach some regulatory requirements for liquidity, underscoring the impact on its business of wild market swings and a social media storm.

The group added that it was stable throughout.

Analysts gave the announcement a lukewarm welcome. Vontobel’s Andreas Venditti said the bank was embarking on a “lengthy process to restore credibility”.

“Resolute execution and no further missteps will be key and it will take time until results will begin to show,” he said.

The turnaround plan has many elements, from cutting jobs to refocusing on banking for the wealthy.

It will cut 2,700 jobs or 5% of its workforce by the end of this year, and ultimately reduce its workforce by roughly 9,000 to about 43,000 by the end of 2025.

The Swiss bank said it also aims to separate out its investment bank to create CS First Boston, focused on advisory work such as mergers and acquisitions and arranging deals on capital markets.

The bank envisions selling a stake but keeping roughly 50% in the new business, said one person familiar with the issue. It is also exploring the possibility of an initial public offering, another source familiar with the matter said.

Saudi National Bank, majority-owned by the government of Saudi Arabia, said it will invest up to 1.5 billion francs in Credit Suisse to take a stake of up to 9.9% and may invest in the investment bank.

The move bolsters Saudi influence in one of Switzerland’s best-known banks. Olayan Group, one of the biggest Saudi family-owned conglomerates, with a multibillion dollar investment portfolio, also owns a 5% stake in the bank.

The Qatar Investment Authority – which owns about 5% of the Swiss bank – declined to comment on whether it plans to buy any shares.

Credit Suisse said it will create a capital release unit to wind down non-strategic, higher-risk businesses, while announcing plans to sell a large part of its securitised products business to an investor group led by Apollo.

The bank will also wind down some trading businesses in emerging markets and equities.

Its heavy loss in the third quarter was due in large part to write-offs linked to its investment banking overhaul, including adjustments for lost tax credits.

JPMorgan analysts said that “question marks remain” over the restructuring of investment banking, adding that the share sale would also weigh on the stock.

The latest revamp, aiming to overcome the bank’s worst crisis in its history, is the third attempt in recent years by successive CEOs to turn the group around.

Reuters Graphics Reuters Graphics

Once a symbol for Swiss reliability, the bank’s reputation has been tarnished by a series of scandals, including an unprecedented prosecution at home involving laundering money for a criminal gang.

The bank had been rushing to raise money and free up capital by selling assets, keen to limit how much cash it would have to raise from investors to fund its overhaul, handle its legacy litigation costs and retain a cushion for rough markets ahead.

Credit Suisse needs to revamp after a series of costly and morale-sapping blunders that triggered a wholesale change of management.

In refocusing away from risky investment banking to banking for the globe’s rich, Credit Suisse is following in the footsteps of its bigger Swiss rival, UBS.

The UBS turnaround succeeded in large part because of a flood of freshly printed money from the world’s central banks to reignite the economy during the financial crisis.

Credit Suisse, on the other hand, is attempting to refocus its business in a world facing war, an energy crisis, rocketing inflation and an economic slide.

Last year, the bank took a $5.5 billion loss from the unravelling of U.S. investment firm Archegos and had to freeze $10 billion worth of supply chain finance funds linked to insolvent British financier Greensill, highlighting risk-management failings.

Its deepening problems even put it on the radar of day traders earlier this month, when a frenzy of wild speculation about its health sent its stock price into a tailspin to a record low.

($1 = 0.9858 Swiss francs)

Additional reporting by Michael Shields in Zurich and Yousef Saba in Dubai; Writing by John O’Donnell; Editing by Edmund Klamann

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