Tag Archives: REGS

Tesla told France there was no sign of technical fault in Paris crash

  • One killed, 20 injured, three seriously, source says
  • Driver placed under formal investigation for manslaughter
  • Tesla says no technical problem to flag
  • Vehicle hit metal posts, bicycles, bin, van, witnesses say

PARIS, Dec 15 (Reuters) – Tesla Inc (TSLA.O) has told the French government there is no indication that a fatal accident in Paris involving a Tesla Model 3 taxi was caused by a technical fault, a government spokesman said on Wednesday.

Paris taxi company G7 has suspended the use of the 37 Model 3 cars in its fleet after the accident on Saturday evening, which involved one of its drivers.

BFM TV reported that the driver had been placed under formal investigation for suspected manslaughter. Under French law, a formal investigation means there is “serious or consistent evidence” implicating a suspect in a crime. It is one step closer to a trial, but such investigations can be dropped.

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One person was killed in the crash and 20 injured, three of them seriously. read more

“We have been in contact, of course, with Tesla’s management and they tell us that there is no technical problem to flag on their vehicles,” government spokesman Gabriel Attal told reporters.

He added that the government was waiting for the outcome of the ongoing judicial investigation.

Still in shock four days after the accident, witnesses told Reuters the car ploughed through metal posts, a row of pay-to-ride bicycles, a recycling bin full of glass and hit pedestrians and a van before finally coming to a halt.

“I thought it was an attack. There was glass, dust … it was as if there had been a blast,” Tillard Diomande, who was serving clients from behind his bar in a nearby restaurant, said.

The vehicle, which had stopped at a red traffic light, suddenly sped forward, hitting and dragging with it a cyclist who later died, a police source said, citing the driver’s own version of events, witnesses and video surveillance.

The driver tested negative in an alcohol test, the police source said.

It was not clear whether the car was operating in Tesla’s Autopilot mode, which handles some driving tasks.

NO SAFETY ALERTS

Transport Minister Jean-Baptiste Djebbari told RMC radio that he had spoken with the chief executive of Tesla Europe, who told him there had been no safety alerts about the Model 3.

He added that the automaker, which collects detailed data from the sensors and cameras on its vehicles, notified him that it had provided the relevant technical data to investigators.

Tesla, which is at the forefront of the electrical and self-driving vehicle revolution and has a market value of nearly $1 trillion, has not responded to requests for comment.

G7 Deputy Chief Executive Yann Ricordel told Reuters the accident occurred while an off-duty taxi driver was taking his family to a restaurant. The driver tried to brake but the car accelerated instead, Ricordel said.

Video of the scene obtained by Reuters showed the wreckage of a black Tesla and debris strewn across the street. The vehicle’s left-hand side was crumpled, the front left wheel collapsed and the windscreen shattered.

The car appeared to have collided with a white van, which suffered front-end damage. Other footage circulating on social media showed members of the public tending to the wounded and shocked bystanders in the aftermath of the accident.

Tesla boss Elon Musk was named 2021 “person of the year” by both Time magazine and the Financial Times for triggering a historic shift in the auto industry towards electric vehicles, and also sending rockets into orbit with his space company.

Tesla’s Model 3 topped European car sales in September, marking the first time an electric vehicle has done so in monthly charts.

The National Highway Traffic Safety Administration (NHTSA), the U.S. auto safety regulator, said in August it had sent teams to review 31 Tesla crashes involving 10 deaths since 2016 where it suspected advanced driver assistance systems use.

It ruled out Autopilot in three of the crashes.

Last year the NHTSA opened a formal review into over 200 complaints about sudden acceleration of Tesla cars, but the regulator later said it found no defects in Tesla’s systems, saying the accidents were caused by “pedal misapplication”.

Musk has repeatedly defended Autopilot and in April tweeted that “Tesla with Autopilot engaged now approaching 10 times lower chance of accident than average vehicle.”

Tesla advises drivers they must keep their hands on the steering wheel and pay attention while using Autopilot.

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Reporting by Mathieu Rosemain and Elizabeth Pineau in Paris
Additional reporting by Alain Acco in Paris, David Shepardson in Washington and Hyunjoo Jin in San Frnacisco
Writing by Richard Lough and Silvia Aloisi
Editing by Jason Neely, Philippa Fletcher and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Japan admits overstating some government economic data for years

TOKYO, Dec 15 (Reuters) – The Japanese government overstated construction orders data received from builders for years, Prime Minister Fumio Kishida said on Wednesday, an admission that could dent credibility of official statistics widely used by investors and economists.

It was not clear why the government started the practice of rewriting the data. It is also unclear how gross domestic product (GDP) figures may have been affected, though analysts expected any impact to be minimal, particularly as the builders involved were likely to be smaller firms.

“It is regrettable that such a thing has happened,” Kishida said. “The government will examine as soon as possible what steps it can take to avoid such an incident from happening again.”

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He made the comment in a parliamentary session after the Asahi newspaper reported the Ministry of Land, Infrastructure, Transport and Tourism had been “rewriting” data received from about 12,000 select companies since 2013 at a pace of about 10,000 entries per year.

Kishida said “improvements” had been made to the figures since January 2020 and that there was no direct impact on GDP data for fiscal year 2020 and 2021.

While the impact on past GDP numbers may be small, the revelation is likely to raise questions about the reliability of data that is a cornerstone for economists and investors looking to understand and forecast trends in the world’s third-largest economy.

It is also not the first time that issues have been raised about government data, including a flaw in health ministry data in 2018.

“The biggest problem is not the effect on the GDP per se but the damage to reliability of (official) statistics,” said Saisuke Sakai, senior economist at Mizuho Research and Technologies.

“We can’t help doubting this kind of issue could happen across government ministries,” Sakai said.

SLOPPY

The survey compiles public and private construction orders which in the 2020 fiscal year totalled roughly 80 trillion yen ($700 billion), and is among data used to calculate GDP.

For the survey, the ministry collects monthly orders data from construction companies through local prefecture authorities.

Companies that were late in submitting data would often send in several months’ worth of figures at once, the Asahi said. In these instances, the ministry would instruct local authorities to rewrite the orders for the combined months as the figure for the latest, single month.

“Overall GDP data is unlikely to change much,” said Akiyoshi Takumori, chief economist at Sumitomo Mitsui DS Asset Management.

Considering Japan has hundreds of thousands of construction companies, the ratio of those concerned is very small, he said.

“How much influence do they have? The kind of sloppy company – which puts out numbers late – is probably not a big one.”

Land Minister Tetsuo Saito, a member of the Komeito party – the junior partner of the ruling coalition – confirmed the practice in parliament, calling it “extremely regrettable”.

Asked about the issue, the government’s top spokesperson said only that the land ministry had been instructed to analyse “as soon as possible” what led to the practice.

“We will first wait for the results of that investigation,” Chief Cabinet Secretary Hirokazu Matsuno told a news conference when asked whether past GDP figures, the government’s monthly economic report or other data may need to be revised.

The rewriting of the data, which may be in breach of law, continued until this March, the Asahi said.

($1 = 113.7100 yen)

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Reporting by Tetsushi Kajimoto, Kantaro Komiya, Leika Kihara and Chang-Ran Kim; Editing by Christopher Cushing and David Dolan

Our Standards: The Thomson Reuters Trust Principles.

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U.S. Justice Dept launches expansive probe into short-selling – sources

Dec 10 (Reuters) – The U.S. Department of Justice has launched an expansive criminal investigation into short selling by hedge funds and research firms, according to two people familiar with the matter.

Investigators are probing firms’ trading records, public reports the firms issued on certain stocks, and the web of relationships some may have used to push stocks lower, the people said.

The Justice Department, which declined to comment on Friday, issued subpoenas to more than two dozen companies early this year and is scrutinizing trades in dozens of stocks, according to the two sources.

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Bloomberg News firstreportedthe probe on Friday, adding that authorities are examining whether the funds engaged in insider trading or other abuses.

Anson Funds and Marcus Aurelius Value are among the firms under the scanner of the investigators, according to Bloomberg.

The companies did not immediately respond to a request for comment.

Among the stocks whose trading activity the Justice Department is examining are Luckin Coffee Inc and GSX Techedu Inc (GOTU.N), on which Carson Block’s Muddy Waters Capital and Andrew Left’s Citron Research circulated research, Bloomberg said.

In a statement, Citron Research said it “knows of no wrongdoing and has cooperated fully with the government’s investigation.”

Trading in short targets such as Santa Ana, California-based Banc of California Inc (BANC.N) and Mallinckrodt Plc (MCDG.MU) is also being examined, Bloomberg reported.

The Justice Department probe comes after the U.S. securities regulator earlier this year said it is considering measures to require big investors to disclose more about short positions, or bets that stocks will fall and the use of derivatives to bet on other stock moves.

The regulator also moved to protect small investors from trading apps that use features common to video games in order to boost risky trading activity.

The review of rules by the Securities and Exchange Commission was prompted by January’s GameStop (GME.N) saga and the meltdown of Archegos Capital.

Citron, one of the world’s best known short-sellers, in January said it would publicly stop detailing companies’ shortcomings following backlash against it and others who said retailer GameStop’s stock is not worth its price.

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Reporting by Niket Nishant and Noor Zainab Hussain in Bengaluru and Chris Prentice in Washington; Editing by Shailesh Kuber and Nick Zieminski

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Exclusive: SEC probes Tesla over whistleblower claims on solar panel defects

SAN FRANCISCO, Dec 6 (Reuters) – The U.S. securities regulator has opened an investigation into Tesla Inc (TSLA.O) over a whistleblower complaint that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years, according to a letter from the agency.

The probe raises regulatory pressure on the world’s most valuable automaker, which already faces a federal safety probe into accidents involving its driver assistant systems. Concerns about fires from Tesla solar systems have been published previously, but this is the first report of investigation by the securities regulator.

The U.S. Securities and Exchange Commission disclosed the Tesla probe in response to a Freedom of Information Act request by Steven Henkes, a former Tesla field quality manager, who filed a whistleblower complaint on the solar systems in 2019 and asked the agency for information about the report.

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“We have confirmed with Division of Enforcement staff that the investigation from which you seek records is still active and ongoing,” the SEC said in a Sept. 24 response to Henkes, declining his request to provide its records. The SEC official said the letter should not be taken as an indication by the agency that violations of law had occurred. Reuters independently confirmed the SEC letter was legitimate.

Henkes, a former Toyota Motor quality division manager, was fired from Tesla in August 2020 and he sued Tesla claiming the dismissal was in retaliation for raising safety concerns. Tesla did not respond to Reuters’ emailed questions, while the SEC declined to comment.

In the SEC complaint, Henkes said Tesla and SolarCity, which it acquired in 2016, did not disclose its “liability and exposure to property damage, risk of injury of users, fire etc to shareholders” prior and after the acquisition.

Tesla also failed to notify its customers that defective electrical connectors could lead to fires, according to the complaint.

Tesla told consumers that it needed to conduct maintenance on the solar panel system to avoid a failure that could shut down the system. It did not warn of fire risks, offer temporary shutdown to mitigate risk, or report the problems to regulators, Henkes said.

Tesla shares fell 5.5% at $960.25 on Monday after the Reuters report.

EX-TOYOTA QUALITY MANAGER BLOWS THE WHISTLE

More than 60,000 residential customers in the U.S. and 500 government and commercial accounts were affected by the issue, according to his lawsuit filed in November last year against Tesla Energy over wrongful termination.

It is not clear how many of those remain after Tesla’s remediation program.

Henkes, a longtime manager at Toyota’s North American quality division, moved to SolarCity as a quality engineer in 2016, months before Tesla acquired SolarCity. After the acquisition, his duties changed and he became aware of the widespread problem, he told Reuters.

Henkes, in the SEC complaint, said he told Tesla management that Tesla needs to shut down the fire-prone solar systems, report to safety regulators and notify consumers. When his calls were ignored, he proceeded to file complaints with regulators.

“The top lawyer cautioned any communication of this issue to the public as a detriment to the Tesla reputation. For me this is criminal,” he said in the SEC complaint.

Litigation and concerns over faulty connectors and Tesla solar system issues stretch back several years. Walmart in a 2019 lawsuit against Tesla said the latter’s roof solar system led to seven store fires. Tesla denied the allegations and the two settled.

Business Insider reported Tesla’s program to replace defective solar panel parts in 2019.

Several residential customers or their insurers have sued Tesla and parts supplier Amphenol (APH.N) over fires related to their solar systems, according to documents provided by legal transparency group PlainSite.

Henkes also filed a complaint with he U.S. Consumer Product Safety Commission, which CNBC reported this year was investigating the case. CPSC and Amphenol didn’t respond to request for comment.

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Reporting by Hyunjoo Jin; Additional reporting by Chris Prentice in Washington and Shreyashi Sanyal in Bangalore; Editing by Peter Henderson and Nick Zieminski

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Omicron variant found in nearly one-third of U.S. states

WASHINGTON, Dec 5 (Reuters) – The Omicron variant of the coronavirus has spread to about one-third of U.S. states, but the Delta version remains the majority of COVID-19 infections as cases rise nationwide, U.S. health officials said on Sunday.

Though the emergence of the new variant has caused alarm worldwide, Dr. Anthony Fauci, the top U.S. infectious disease official, told CNN “thus far it does not look like there’s a great degree of severity to it.” He added that it was too early to draw definitive conclusions and that more study is needed.

Fauci, U.S. President Joe Biden’s chief medical adviser, said he also hoped the United States would lift its ban on travelers from southern African countries in a “reasonable period of time.”

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The South African government has complained it is being punished – instead of applauded – for discovering the new variant and quickly informing international health officials.

Fauci, in an interview on CNN’s “State of the Union,” praised South Africa for its transparency and said the U.S. travel ban was imposed at a time “when we were really in the dark” and needed time to study the variant.

At least 16 U.S. states have reported Omicron cases: California, Colorado, Connecticut, Hawaii, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, New York, Pennsylvania, Utah, Washington and Wisconsin, according to a Reuters tally.

Many of the cases were among fully vaccinated individuals with mild symptoms, although the booster shot status of some patients was not reported.

Despite several dozen Omicron cases, the Delta variant still accounts for 99.9% of new COVID cases in the United States, CDC Director Dr. Rochelle Walensky told ABC News in an interview.

“We are everyday hearing about more and more probable cases so that number is likely to rise,” she said.

The United States over the last seven days has averaged 119,000 new cases a day and lost nearly 1,300 lives to COVID each day, according to a Reuters tally.

Louisiana currently has one Omicron case from an individual who traveled within the United States, its health department said on Sunday.

Travellers check a departures list at the ticketing level of Seattle-Tacoma International Airport before the Thanksgiving holiday in Seattle, Washington, U.S. November 24, 2021. REUTERS/Lindsey Wasson/File Photo/File Photo

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On Saturday, it said a Norwegian Cruise Line Holdings Ltd (NCLH.N) cruise ship set to dock in New Orleans with more than 3,000 passengers found 10 cases of COVID-19 on board.

Officials said passengers on the Norwegian Breakaway, which stopped in Belize, Honduras and Mexico, would be tested and given the CDC’s post-exposure and quarantine guidelines. read more

The emergence of the new variant has sharply curtailed the number of energy executives and government ministers planning to attend the four-day World Petroleum Congress in Houston this week, which had already been rescheduled from 2020. read more

But travel restrictions and worries over the new variant saw energy ministers from Saudi Arabia, Kazakhstan, Qatar, Argentina, Equatorial Guinea, Greece, Turkey and Romania – bowed out, WPC officials said on Sunday.

Governors of two states with reported Omicron cases — Connecticut and Colorado — said they hoped their higher-than-average vaccination rates would blunt the impact.

“We want to see how well the vaccinations hold up,” Colorado’s Jared Polis told ABC.

As U.S. Omicron cases emerge, COVID-19 vaccine makers aim to quickly tweak their shots to target the variant and U.S. regulators have vowed speedy reviews, but that could still take months.

“Certainly, FDA (Food and Drug Administration) will move swiftly and CDC will move swiftly,” Walensky said.

Moderna Inc (MRNA.O) has targeted U.S. approval of an updated vaccine as soon as March, but company officials on Sunday said it will still take time to increase output. read more

Moderna Co-founder and Chairman Noubar Afeyan told CNN it would take another seven to 10 days to gather key data. Then, it “will take a good 60 to 100 days” to deploy an Omicron-specific shot, although other options like a higher dose of the current booster are being explored, he said.

U.S. government officials are also working with Pfizer Inc (PFE.N) and Johnson & Johnson (JNJ.N) on updated shots, while Pfizer and Merck & Co Inc (MRK.N) are pursuing COVID-19 pill treatments. read more

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Reporting By Matt Spetalnick and Susan Heavey; Additional reporting by Dan Whitcomb
Editing by Lisa Shumaker and Diane Craft

Our Standards: The Thomson Reuters Trust Principles.

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China regulator says govt policies not necessarily linked to overseas IPOs

BEIJING, Dec 5 (Reuters) – China’s securities regulator said on Sunday that Beijing’s recent policy moves were not aimed at specific industries or private firms, and were not necessarily linked to companies seeking to list in overseas markets.

China has implemented a sweeping regulatory crackdown in recent months on internet companies, for-profit education, and real estate developers, among others.

“The main purpose of (those moves) is to regulate monopoly, to protect the interests and data security of small- and medium-sized firms, as well as personal information security,” the China Securities Regulatory Commission (CSRC) said in a statement.

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The cyberspace regulator had proposed companies with more than one million users in China undergo a security review before sending user-related data abroad or listing shares overseas. read more

Chinese ride-hailing giant Didi Global (DIDI.N) said on Friday it planned to delist from the New York Stock Exchange, just five months after its debut, and pursue a Hong Kong listing. read more

The securities regulatory commission said it had taken note of new rules rolled out by the U.S. Securities and Exchange Commission (SEC) asking Chinese companies to detail their ownership structure and audits. read more

Some media reports stating that China will likely ban companies with a VIE (Variable Interest Entity) structure from U.S. listing is a case of “total misunderstanding and (is) misreading”, the CSRC said.

The VIE structure, used widely by tech firms, was created two decades ago to circumvent rules restricting foreign investment in sensitive industries such as media and telecoms.

The CSRC policies are not meant to crack down on specific industry or private firms and “have no necessary connections with companies’ overseas listings,” the commission said.

It said the commission had learnt some Chinese companies are actively communicating with domestic and foreign regulators to go public in the United States. The CSRC will respect firms’ choice of listing venues on the basis of compliance, it said.

The securities commission said it has held candid, constructive communications with SEC and the Public Company Accounting Oversight Board, and has achieved positive progress in promoting cooperations on some key issues.

It noted, however, that some forces in the U.S. have “politicized” capital market supervision and threatened Chinese companies to delist from the country in recent years, which goes against principles of a market economy and hurts global investors, according to the statement.

The CSRC said it will continue to communicate with its U.S. counterpart to resolve remaining issues in audit and regulatory areas as soon as possible.

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Reporting by Min Zhang, Samuel Shen and Norihiko Shirouzu. Editing by Gerry Doyle and David Evans

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U.S. State Department phones hacked with Israeli company spyware – sources

WASHINGTON/SAN FRANCISCO, Dec 3 (Reuters) – Apple Inc iPhones of at least nine U.S. State Department employees were hacked by an unknown assailant using sophisticated spyware developed by the Israel-based NSO Group, according to four people familiar with the matter.

The hacks, which took place in the last several months, hit U.S. officials either based in Uganda or focused on matters concerning the East African country, two of the sources said.

The intrusions, first reported here, represent the widest known hacks of U.S. officials through NSO technology. Previously, a list of numbers with potential targets including some American officials surfaced in reporting on NSO, but it was not clear whether intrusions were always tried or succeeded.

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Reuters could not determine who launched the latest cyberattacks.

NSO Group said in a statement on Thursday that it did not have any indication their tools were used but canceled access for the relevant customers and would investigate based on the Reuters inquiry.

“If our investigation shall show these actions indeed happened with NSO’s tools, such customer will be terminated permanently and legal actions will take place,” said an NSO spokesperson, who added that NSO will also “cooperate with any relevant government authority and present the full information we will have.”

NSO has long said it only sells its products to government law enforcement and intelligence clients, helping them to monitor security threats, and is not directly involved in surveillance operations.

Officials at the Uganda embassy in Washington did not comment. A spokesperson for Apple declined to comment.

A State Department spokesperson declined to comment on the intrusions, instead pointing to the Commerce Department’s recent decision to place the Israeli company on an entity list, making it harder for U.S. companies to do business with them.

NSO Group and another spyware firm were “added to the Entity List based on a determination that they developed and supplied spyware to foreign governments that used this tool to maliciously target government officials, journalists, businesspeople, activists, academics, and embassy workers,” the Commerce Department said in an announcement last month.

EASILY IDENTIFIABLE

NSO software is capable of not only capturing encrypted messages, photos and other sensitive information from infected phones, but also turning them into recording devices to monitor surroundings, based on product manuals reviewed by Reuters.

Apple’s alert to affected users did not name the creator of the spyware used in this hack.

The victims notified by Apple included American citizens and were easily identifiable as U.S. government employees because they associated email addresses ending in state.gov with their Apple IDs, two of the people said.

They and other targets notified by Apple in multiple countries were infected through the same graphics processing vulnerability that Apple did not learn about and fix until September, the sources said.

Since at least February, this software flaw allowed some NSO customers to take control of iPhones simply by sending invisible yet tainted iMessage requests to the device, researchers who investigated the espionage campaign said.

The victims would not see or need to interact with a prompt for the hack to be successful. Versions of NSO surveillance software, commonly known as Pegasus, could then be installed.

Apple’s announcement that it would notify victims came on the same day it sued NSO Group last week, accusing it of helping numerous customers break into Apple’s mobile software, iOS.

In a public response, NSO has said its technology helps stop terrorism and that they’ve installed controls to curb spying against innocent targets.

For example, NSO says its intrusion system cannot work on phones with U.S. numbers beginning with the country code +1.

But in the Uganda case, the targeted State Department employees were using iPhones registered with foreign telephone numbers, said two of the sources, without the U.S. country code.

Uganda has been roiled this year by an election with reported irregularities, protests and a government crackdown. U.S. officials have tried to meet with opposition leaders, drawing ire from the Ugandan government. read more Reuters has no evidence the hacks were related to current events in Uganda.

A senior Biden administration official, speaking on condition he not be identified, said the threat to U.S. personnel abroad was one of the reasons the administration was cracking down on companies such as NSO and pursuing new global discussion about spying limits.

The official added that the government has seen “systemic abuse” in multiple countries involving NSO’s Pegasus spyware.

Sen. Ron Wyden, who is on the Senate Intelligence Committee, said: “Companies that enable their customers to hack U.S. government employees are a threat to America’s national security and should be treated as such.”

Historically, some of NSO Group’s best-known past clients included Saudi Arabia, the United Arab Emirates and Mexico.

The Israeli Ministry of Defense must approve export licenses for NSO, which has close ties to Israel’s defense and intelligence communities, to sell its technology internationally.

In a statement, the Israeli embassy in Washington said that targeting American officials would be a serious breach of its rules.

“Cyber products like the one mentioned are supervised and licensed to be exported to governments only for purposes related to counter-terrorism and severe crimes,” an embassy spokesperson said. “The licensing provisions are very clear and if these claims are true, it is a severe violation of these provisions.”

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Reporting by Christopher Bing and Joseph Menn; editing by Chris Sanders and Edward Tobin

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China’s Guangdong summons Evergrande boss after debt repayment warning

The company logo is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song

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  • Evergrande says may not have enough funds to meet obligations
  • China central bank, regulators step in to try to reassure market

BEIJING, Dec 3 (Reuters) – China’s Guangdong province on Friday summoned the chairman of China Evergrande Group (3333.HK) after the real estate developer said there was “no guarantee” it would have enough funds to meet debt repayments, while regulators sought to reassure markets.

Evergrande, once China’s top-selling developer, is grappling with more than $300 billion in liabilities, fuelling fears of a potential collapse that could send shockwaves through the country’s property sector and beyond.

On Friday, the company said in a filing to the Hong Kong stock exchange it had received a demand from creditors to pay about $260 million. It is already late paying $82.5 million in coupons due on Nov. 6. read more

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“In light of the current liquidity status … there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations,” Evergrande said, adding that creditors may demand accelerated repayment if it does not.

That prompted the government of Guangdong, where the company is based, to summon Evergrande Chairman Hui Ka Yan.

The provincial government said in a statement it would – at Evergrande’s request – send a working group to the company to oversee risk management, strengthen internal controls and maintain normal operations.

The Guangdong authorities were not the only government entity to wade into the Evergrande issue on Friday.

In a series of apparently coordinated statements late in the evening, China’s central bank, banking and insurance regulator and its securities regulator sought to reassure the market that any risks to the broader property sector could be contained.

“Evergrande’s problem was mainly caused by its own mismanagement and break-neck expansion,” the People’s Bank of China said.

Short-term risks caused by a single real estate firm will not undermine market fundraising in the medium and long term, it said, adding that housing sales, land purchases and financing “have already returned to normal in China.”

The China Banking and Insurance Regulatory Commission (CBIRC) said the Evergrande issue would not affect the industry’s normal operations and it would increase support for guaranteed rental housing.

It added that it believed domestic and overseas regulators would deal with Evergrande-related issues fairly, while the China Securities Regulatory Commission (CSRC) said any fallout for the capital market was “controllable” and it would maintain support for property developers’ funding needs.

In its filing, Evergrande said it intended to actively engage with creditors to come up with a “viable restructuring plan” to deal with its offshore debts.

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Reporting by Beijing Newswroom and Arundhati Dutta in Bengaluru; additonal reporting by Sumeet Chatterjee in Hong Kong; Writing by Tom Daly; Editing by Sriraj Kalluvila, Louise Heavens and Emelia Sithole-Matarise

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GSK says tests indicate antibody drug works against Omicron

  • Sotrovimab, developed with Vir, tested in lab and on hamsters
  • Key Omicron mutations did not elude drug activity in study
  • Tests continuing on further mutations

Dec 2 (Reuters) – Laboratory analysis of the antibody-based COVID-19 therapy GlaxoSmithKline (GSK.L) (GSK) is developing with U.S. partner Vir (VIR.O) has indicated the drug is effective against the new Omicron variant, the British drugmaker said on Thursday.

A GSK statement said that lab tests and a study on hamsters have demonstrated the sotrovimab antibody cocktail works against viruses that were bio-engineered to carry a number of hallmark mutations of the Omicron variant.

The two companies have been engineering so-called pseudoviruses that feature major coronavirus mutations across all suspicious variants that have emerged so far, and have run lab tests on their vulnerability to sotrovimab treatment.

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An analysis of past tests has now yielded the preliminary clearance for the drug, because Omicron’ main mutations have been found across a variety of previous variants.

“We’ve been carefully following every mutation that might be important,” said Herbert Virgin, Vir’s Chief Scientific Officer.

“With this new variant, the mutations that we have tested so far have no significant effect on sotrovimab,” he added.

Importantly, the mutations within the area on the spike protein that the sotrovimab antibodies bind to did not make a difference.

The GlaxoSmithKline (GSK) logo is seen on top of GSK Asia House in Singapore, March 21, 2018. Picture taken March 21, 2018. REUTERS/Loriene Perera/File Photo

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For confirmation, a pseudovirus with all of the Omicron mutations is now being tested, with an update expected by the end of the year, GSK added in its statement.

The antibody is designed to latch on to the spike protein on the surface of the coronavirus, but Omicron has been found to have an unusually high number of mutations on that protein.

“Sotrovimab was deliberately designed with a mutating virus in mind,” said Vir Chief Executive George Scangos, adding that the drug was targeting a region of the spike protein that was highly unlikely to mutate.

Separately, Britain’s drug regulator on Thursday approved sotrovimab, also known under the brand name Xevudy, for people with mild to moderate COVID-19 and who are at high risk of developing severe disease.

The Medicines and Healthcare products Regulatory Agency (MHRA) recommended use of Xevudy as soon as possible and within five days of the onset of symptoms.

Sotrovimab is based on monoclonal antibodies, which are lab-made versions of natural antibodies the body generates to fight off infection. Similar products are offered or being developed by Eli Lilly (LLY.N), Regeneron (REGN.O) and AstraZeneca (AZN.L). read more

Regeneron on Tuesday said that lab tests and computer modelling suggest that COVID-19 antibody drugs including Regeneron’s would have reduced efficacy against the Omicron variant. read more

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Reporting by Ludwig Burger; Editing by David Goodman and Jan Harvey

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U.S. tightens travel rules as more countries secure borders to quell Omicron

Passengers wait in line inside the terminal at Newark Liberty International Airport in Newark, New Jersey, U.S., November 24, 2021. REUTERS/Eduardo Munoz/File Photo

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  • Air travellers to U.S. to face tougher COVID-19 testing
  • Sydney braces for more cases, no lockdowns for now
  • Japan expands travel ban to some foreigners with resident status
  • WHO warns against blanket travel bans over Omicron
  • South Korea reports daily record of over 5,000 COVID-19 cases

WASHINGTON/TOKYO, Dec 1 (Reuters) – Air travellers to the United States will face tougher COVID-19 testing rules, while more countries tightened their borders amid uncertainty around the virulence of the Omicron variant and its ability to evade vaccine protection.

Japan and Hong Kong said they would expand travel curbs and Malaysia temporarily banned travellers from countries deemed at risk. Japan, which had already barred all new foreign entrants, reported its second case of the new variant on Wednesday.

Other countries braced for more cases: Australia said at least two people visited several locations in Sydney while likely infectious and Denmark said an infected person had taken part in a large concert.

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The World Health Organization (WHO) said “blanket travel bans will not prevent the international spread, and they place a heavy burden on lives and livelihoods”, while advising those unwell, at risk or 60 years or over and unvaccinated to postpone travel.

Investors remained on edge on Wednesday, even as financial markets came off lows plumbed a day earlier following remarks by the CEO of Moderna (MRNA.O) that raised questions about the efficacy of COVID-19 vaccines against Omicron.

Global health officials have since offered reassurances and reiterated calls for people to get vaccinated.

“Our best form of defence still remains our vaccines,” British Health Secretary Sajid Javid told Sky News.

“It’s possible of course, it’s possible that it might be less effective. We just don’t know for sure yet. But it’s also very likely that it will remain effective against serious disease,” he said. read more

European Medicines Agency Executive Director Emer Cooke earlier said that laboratory analyses should indicate over the next couple of weeks whether the blood of vaccinated people has sufficient antibodies to neutralise the new variant. read more

The European Union brought forward the start of its vaccine rollout for five-to-11-year-old children by a week to Dec 13.

BioNTech’s CEO said the vaccine it makes in a partnership with Pfizer (PFE.N) would likely offer strong protection against severe disease from Omicron. read more

Britain and the United States have both expanded their booster programmes in response to the new variant.

First reported in southern Africa a week ago, Omicron has highlighted the disparity between massive vaccination pushes in rich nations and sparse inoculation in the developing world.

It has spread to more than a dozen countries, with Nigeria among the latest to report cases of the variant. Saudi Arabia confirmed its first case coming from a north African country.

Some 56 countries were reportedly implementing travel measures to guard against Omicron as of Nov. 28, the WHO said. read more

WHO head Tedros Adhanom Ghebreyesus said he’s concerned that several member states were “introducing blunt, blanket measures”, which “will only worsen inequities”.

“The World Health Organization classified Omicron as a “variant of concern,” due to the number of mutations that might help it spread or evade antibodies from prior infection or vaccination.

BORDER CONTROLS

The United States is moving to require that all air travellers entering the country show a negative COVID-19 test performed within one day of departure, the Centers for Disease Control and Prevention (CDC) said late on Tuesday. read more

Currently, vaccinated international travellers can present a negative result obtained within three days from their point of departure. The new one-day testing requirement would apply to U.S. citizens as well as foreign nationals.

The administration is also considering whether to require travellers to get another test within three to five days after arrival, officials said.

The CDC lists about 80 foreign destinations as having “Level Four”, its highest level of COVID-19 transmission, and discourages Americans from travelling to those destinations.

In Asia, Japan said it would expand its entry ban to foreigners with resident status from 10 African countries.

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Hong Kong will expand its entry ban for non-residents to three more countries, Japan, Portugal and Sweden, from Friday.

South Korean Interior and Safety Minister Jeon Hae-cheol called for tighter virus prevention measures to head off Omicron, after suspected cases entered from Nigeria. The country has not detected any confirmed cases of Omicron so far.

Malaysia has temporarily banned travellers from countries that reported Omicron cases. read more

Global airlines are preparing for fresh volatility, analysts said. Japanese airlines ANA and JAL said they were suspending new reservations for international flights to the country until the end of December. read more

“It feels a little bit like we are back to where we were a year ago and that’s not a great prospect for the industry and beyond,” Deidre Fulton, a partner at consultancy MIDAS Aviation, said at an industry webinar.

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Reporting by David Shepardson in Washington, Sakura Murakami and Elaine Lies in Tokyo, Reju Jose and Jamie Freed in Sydney, and Reuters bureaus; Writing by Himani Sarkar and Philippa Fletcher; Editing by Shri Navratnam, William Maclean

Our Standards: The Thomson Reuters Trust Principles.

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