Tag Archives: SHOPAL

Exclusive: Bed Bath & Beyond preparing to file bankruptcy as soon as this week -sources

NEW YORK, Jan 30 (Reuters) – Bed Bath & Beyond Inc (BBBY.O) is preparing to seek bankruptcy protection as soon as this week, and has lined up liquidators to close additional stores unless a last-minute buyer emerges, four people familiar with the matter said on Monday.

The timing of any bankruptcy filing was in flux Monday evening, with the U.S. home goods retailer’s advisers locked in meetings exploring any remaining options to avoid it, another person familiar with the matter said.

Bed Bath & Beyond is negotiating a loan to help it navigate bankruptcy proceedings, with investment firm Sixth Street in talks to provide some funding, two of the people said. The firm loaned Bed Bath & Beyond $375 million last year.

The chain, once considered a category killer in home goods like dinnerware and small appliances, has lined up liquidators who are readying store closing sales that could be launched as soon as this weekend, two of the people said.

The people spoke on condition of anonymity because the talks are not public.

The chain has said it is closing 87 Bed Bath & Beyond stores and five buybuy BABY stores, in addition to 150 closures announced last year. It is also shutting its health and beauty discount chain Harmon.

The people cautioned that a last-minute buyer for the chain could emerge, or it could still ink a deal for its brands such as buybuy BABY. Prospective buyers sometimes wait until a company files for bankruptcy before agreeing to purchase assets, hoping to negotiate more favorable terms.

Bed Bath & Beyond said in a statement to Reuters that it continued to work with its advisers to consider “multiple paths” but declined to comment on any bankruptcy planning.

The company has previously said it was exploring a range of options to address plunging sales, including selling assets, raising financing and declaring bankruptcy.

Sixth Street declined to comment.

Bed Bath & Beyond said last week it defaulted on a loan, bringing it closer to bankruptcy. Sources have also told Reuters that Bed Bath & Beyond is considering skipping debt payments due on Feb. 1, a typical move that distressed companies take to conserve cash.

Retailers in distress often decide to file for bankruptcy protection after the holiday season to take advantage of the cash cushion provided by recent sales.

Toys R Us liquidated in March 2018 in one of the largest failures to date of a specialty retailer.

As of February 2022, Bed Bath & Beyond had 953 locations, including buybuy BABY.

Bed Bath & Beyond for years had been considered a go-to shopping destination for couples making wedding registries and planning for new babies, but it lost its footing when it tried to expand into store brands.

The retailer’s management has since reversed course and aimed to bring in national brands shoppers knew the chain for. But the strategy has not gained traction with shoppers.

Earlier this month, the company raised doubts about its ability to continue as a going concern and said it would cut jobs.

Bed Bath & Beyond reported a loss of about $393 million after sales plunged 33% for the quarter ending Nov. 26.

Reporting by Jessica DiNapoli and Mike Spector; Editing by Cynthia Osterman and Jamie Freed

Our Standards: The Thomson Reuters Trust Principles.

Jessica DiNapoli

Thomson Reuters

New York-based reporter covering U.S. consumer products spanning from paper towels to packaged food, the companies that make them and how they’re responding to the economy. Previously reported on corporate boards and distressed companies.

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Unilever names former Heinz exec Schumacher as CEO

  • To become CEO July 1
  • Activist shareholder says met Schumacher when at Heinz
  • First outsider CEO since Paul Polman appointed in 2008
  • Unilever shares outpace FTSE 100

LONDON, Jan 30 (Reuters) – Unilever on Monday appointed Hein Schumacher to replace Alan Jope as chief executive from July in a move that was welcomed by investors including board member and activist shareholder Nelson Peltz.

Schumacher, 51, rejoined Unilever in October last year as non-executive director and is currently the chief of Dutch dairy business FrieslandCampina.

He worked at Unilever more than 20 years ago before working for retailer Royal Ahold NV and packaged food maker H.J. Heinz in the United States, Europe and Asia.

One of the biggest consumer companies in the world with more than 400 brands ranging from detergent to ice cream, Unilever said in September said that Jope planned to retire at the end of 2023.

Billionaire activist investor Nelson Peltz, who heads investor Trian Partners, said he strongly supports Schumacher “as our new CEO and look(s) forward to working closely with him to drive significant sustainable stakeholder value.”

Peltz become a Unilever board member in July after it was revealed early last year that he had built a stake in the company.

“I first met Hein when I served as a director at the H.J. Heinz Company from 2006 to 2013 and was impressed by his leadership skills and business acumen,” Peltz said.

Peltz, through his Trian Fund, holds a nearly 1.5% stake in Unilever, making him the fourth largest shareholder, according to Refinitiv Eikon data.

Unilever shares were up 0.56% versus a FTSE 100 (.FTSE) index down 0.1% as of 1032 GMT.

The move was also cheered by other investors and analysts, who have felt in recent years that Unilever needed an outsider’s touch.

“Positive that he’s an external appointment,” Jack Martin, a fund manager at Unilever shareholder Oberon Investments, said. “Good CV from what I read, hopefully provides the impetus the company requires.”

‘ESG SAVVY, PRAGMATIC’

Unilever’s shares have underperformed European consumer staples and discretionary indices during CEO Jope’s tenure, which began in January 2019.

Reuters Graphics

His failed bids for GlaxoSmithKline’s (GSK.L) consumer healthcare business last year lost him some good faith among investors, including influential British billionaire Terry Smith, owner of Fundsmith.

Smith said at the time that Jope needed to focus less on sustainbility and more on building Unilever’s core business.

“Hein is ideal for Unilever — he’s got roots at the company but at the same time he’s external,” Allan Leighton, former CEO of British food retailer Asda and ex-chair of Britain’s Royal Mail, told Reuters.

Leighton, who worked with Schumacher on the board of C&A AG, described him as “ESG savvy but in a pragmatic and commercial way.”

Tineke Frikee, a fund manager at Unilever shareholder Waverton Investment Management, said: “It is good Schumacher has plenty of industry experience outside Unilever, particularly international.”

“I note though that his background is mainly in food, rather than beauty and personal care. This may lead the market to reduce the probability of a potential food spin-off.”

Unilever’s food business includes Ben & Jerry’s ice cream, Colman’s mustard, Hellman’s mayonnaise and Knorr stock cubes.

Some investors and analysts have speculated over the past year that Unilever might spin off what they feel is a weaker food business to focus on personal goods, beauty and home care.

“Why hire a food exec, if you are planning to sell the food business?” Bernstein analyst Bruno Monteyne said, adding that selling the food business “will always be on the cards, but I doubt that it is top priority in the short term.”

But Monteyne pointed out that some investors were hoping Unilever would name someone more well-established, globally.

“Investors we spoke to in recent weeks were hopeful for a more familiar name from a successful U.S.-based FMCG (fast-moving consumer goods) turnaround.”

Unilever had been considering internal and external candidates for the role.

Sources told Reuters in October that the candidates included finance chief Graeme Pitkethly, personal care division boss Fabian Garcia and Hanneke Faber, who heads the company’s nutrition group.

Reporting by Yadarisa Shabong and Richa Naidu; editing by Matt Scuffham and Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

Richa Naidu

Thomson Reuters

London-based reporter covering retail and consumer goods, analysing trends including coverage of supply chains, advertising strategies, corporate governance, sustainability, politics and regulation. Previously wrote about U.S. based retailers, major financial institutions and covered the Tokyo 2020 Olympic Games.

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Wall Street totters after mixed earnings, trade halt glitch

  • SEC investigating NYSE opening bell glitch
  • 3M slides on downbeat Q1 forecast
  • J&J falls on sales warning; GE down on weak profit view
  • Microsoft to report quarterly earnings after market close
  • Indexes: Dow up 0.18%, S&P 500 off 0.13%, Nasdaq down 0.25%

NEW YORK, Jan 24 (Reuters) – Wall Street was mixed on Tuesday as a raft of mixed earnings took some wind out of the sails of the recent rally.

The session got off to an rocky start, as a spate of NYSE-listed stocks were halted at the opening bell due to an apparent technical glitch, which caused initial price confusion and prompted an investigation by the U.S. Securities and Exchange Commission (SEC).

More than 80 stocks were affected by the glitch, which caused wide swings in opening prices in stocks, including Walmart Inc (WMT.N) and Nike Inc (NKE.N).

“It looks like NYSE got on it real early,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “Now they’re trying to determine what opening trade prices were.”

“Everyone involved in trade settlements is going to have a long day today.”

All three indexes sputtered near the starting line, with little apparent momentum in either direction.

Fourth quarter earnings season is in full swing, with 72 of the companies in the S&P 500 having reported. Of those, 65% have beaten consensus, just a hair below the 66% long-term average, according to Refinitiv.

On aggregate, analysts now expect S&P 500 earnings 2.9% below the year-ago quarter, down from the 1.6% year-on-year decline seen on Jan. 1, per Refinitiv.

“Earnings don’t make a bull or bear case for the market yet, but there’s an anxiousness among investors to be long when the Fed is done raising rates,” Sroka added. “We’re hitting a ramp in the earnings cycle, and by next week we’ll have a lot more information on the direction of the market.”

Economic data showed shallower-than-expected contraction in the manufacturing and services sector in the first weeks of the year, suggesting that the Federal Reserve’s restrictive interest rates are dampening demand.

The Dow Jones Industrial Average (.DJI) rose 60.69 points, or 0.18%, to 33,690.25, the S&P 500 (.SPX) lost 5.36 points, or 0.13%, to 4,014.45 and the Nasdaq Composite (.IXIC) dropped 28.39 points, or 0.25%, to 11,336.03.

Among the 11 major sectors of the S&P 500, industrials was down the most.

Intercontinental Exchange Inc (ICE.N), owner of the New York Stock Exchange, dropped 2.5% as SEC investigators searched for the cause of Tuesday’s opening bell confusion.

Alphabet Inc (GOOGL.O) shares dipped 1.8% after the Justice Department filed a lawsuit against Google for abusing its dominance of the digital advertising business.

Johnson & Johnson’s (JNJ.N) profit guidance came in above analyst expectations. Even so, its stock softened 0.3%.

Industrial conglomerates 3M Co (MMM.N) and General Electric Co (GE.N) both provided underwhelming forward guidance due to inflationary headwinds.

3M’s shares were off 5.1% while General Electric’s were modestly lower.

Aerospace/defense companies Lockheed Martin Corp (LMT.N) and Raytheon Technologies Corp (RTX.N) were a study in contrasts, with the former issuing a disappointing profit forecast and the latter beating estimates on solid travel demand.

Lockheed Martin and Raytheon were up 1.5% and 2.5%, respectively.

Railroad operator Union Pacific Corp missed profit estimates as labor shortages and severe weather delayed shipments. Its shares shed 2.7%.

Microsoft Corp (MSFT.O) is due to report after the bell.

Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners.

The S&P 500 posted 27 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 69 new highs and 21 new lows.

Reporting by Stephen Culp; Additional reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Editing by Aurora Ellis

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Amazon’s AWS to invest $35 bln in Virginia

WASHINGTON, Jan 20 (Reuters) – Amazon.com Inc’s (AMZN.O) cloud services division said Friday it plans to invest another $35 billion by 2040 to expand data centers in Virginia.

Amazon Web Services (AWS) said the new investment will create 1,000 jobs. Virginia Republican Governor Glenn Youngkin said AWS will establish multiple data center campuses across Virginia.

In 2021, AWS said from 2011 to 2020 it had invested $35 billion in data centers located in northern Virginia and had 3,500 full time employees at its data centers in the state.

Pending approval by state lawmakers, Virginia is developing a new “Mega Data Center Incentive Program,” which would allow the company to receive up to a 15-year extension of Data Center Sales and Use tax exemptions on equipment and software.

AWS also will be eligible to receive a state grant of up to $140 million “for site and infrastructure improvements, workforce development, and other project-related costs.”

Amazon shares closed up 3.8% Friday.

Amazon in 2018 after a long contest announced northern Virginia would be home to its second headquarters known as “HQ2” and eventually employ more than 25,000 employees. As of April, Amazon said its headcount assigned to the site was around 5,000.

Youngkin has faced some criticism for withdrawing from a competition to attract a new Ford Motor (F.N) battery plant expected to be built with China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ), the world’s largest battery producer.

Youngkin defended his decision Friday, telling Bloomberg News that he looks “forward to bringing a great company there. It won’t be one that uses kind of a Trojan-horse relationship with the Chinese Communist Party in order to gain.”

A spokesperson for Youngkin has said that “while Ford is an iconic American company, it became clear that this proposal would serve as a front for the Chinese Communist party.”

Ford declined to comment on Youngkin’s decision to withdraw.

In July, Ford said it plans to localize 40 GWh of battery capacity in North America starting in 2026. It also announced CATL would provide battery packs for Mustang Mach-E models for North America starting in 2023 and would discuss cooperation for batteries in Ford vehicles around the world.

“Our talks with CATL continue – and we have nothing new to announce on either front,” Ford said.

Michigan is also a candidate for the Ford battery plant, sources said, and a decision could be made in the coming weeks.

Reporting by David Shepardson and Akash Sriram in Bengaluru; Editing by Aurora Ellis and Himani Sarkar

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Brazil court grants bankruptcy protection for retailer Americanas

SAO PAULO, Jan 19 (Reuters) – A Rio de Janeiro court on Thursday accepted Brazilian retailer Americanas SA’s (AMER3.SA) bankruptcy protection request, days after the company disclosed nearly $4 billion in accounting inconsistencies that have sparked a legal feud with creditors and investors.

Americanas, a 93-year-old company with stores all over Brazil and a major e-commerce unit, said in a securities filing that it would restructure debts of about 43 billion reais ($8.2 billion).

Shares in the company plunged about 42.5% to 1.00 real following news of the filing, extending its year-to-date drop to around 90%.

The firm, backed by the billionaire trio that founded 3G Capital, said the move had come “despite the efforts and measures that the management has been taking in the past few days alongside its financial and legal advisers to protect the company from the effects” of the accounting scandal.

Investors had expected the decision, with some deeming it unavoidable, especially after lender BTG Pactual (BPAC3.SA) obtained on Wednesday a court decision overturning part of the firm’s protection from creditors.

Americanas is also facing seven different investigations launched by securities regulator CVM, as well as an arbitration process requesting compensation of 500 million reais to the firm and the trio that founded 3G Capital.

In a document filed with the court, law firms Basilio Advogados and Salomao Kaiuca Abrahao attributed the urgency in filing for bankruptcy to the creditors’ decision to seize the companies’ assets.

The retailer also mentioned a debt downgrade by ratings agencies, which prevented any new loans from being extended. S&P, Moody’s and Fitch all downgraded Americanas’ credit ratings following the accounting scandal.

Earlier, Americanas had said that its current cash position stood at only 800 million reais, down from a previously reported 7.8 billion.

Lucas Pogetti, a partner at M&A advisers RGS Partners, said a large part of Americanas’ previously disclosed cash position was linked to the prepayment of receivables or deposited with creditors.

“Naturally, when the banks became aware of the company’s real situation they began to adopt a more aggressive posture to protect themselves, consequently restricting access to resources,” Pogetti said.

In the filing, Americanas asks to exclude its fintech, Ame, from the bankruptcy protection, as it is regulated by the central bank, and for authorization to increase its capital.

Americanas’ stores are ubiquitous at Brazilian shopping malls. It e-commerce unit, which traded as a separate company before a recent restructuring, is one of the country’s top online retailers.

Chief executive Sergio Rial resigned last week, less than two weeks after taking the job, citing the discovery of “accounting inconsistencies” totaling 20 billion reais.

Rial, the former head of Banco Santander’s Brazilian arm (SANB3.SA), attributed the inconsistencies to differences in accounting for the financial cost of bank loans and debt with suppliers.

Chief financial officer Andre Covre, who had just joined Americanas as well, also left the firm, which has Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles as reference shareholders.

Americanas said the reference shareholders intended to maintain the company’s liquidity at levels that allowed for a “good operation” of its stores, digital channel and other entities.

($1 = 5.2226 reais)

Reporting by Gabriel Araujo, Tatiana Bautzer and Peter Frontini in Sao Paulo and Carolina Pulice in Mexico City; Editing by Rosalba O’Brien and Bradley Perrett

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Amazon to lay off staff in U.S., Canada and Costa Rica by end of day

Jan 18 (Reuters) – Amazon.com Inc (AMZN.O) will cut some jobs in the United States, Canada and Costa Rica by the end of Wednesday as part of its plan to lay off 18,000 employees, the e-commerce giant said in a memo to staff seen by Reuters.

The layoffs are the latest in the U.S. technology sector, with companies cutting their bloated workforce and slashing costs to reverse pandemic-era excesses and prepare for a worsening global economy.

The company is terminating 2,300 employees in Seattle and Bellevue, according to an update on the Worker Adjustment and Retraining Notification (WARN) site. The U.S. labor law requires companies planning a mass layoff to inform employees 60 days before the closure.

Amazon.com Chief Executive Andy Jassy said earlier this month the cuts, about 6% of the company’s roughly 300,000 corporate employees, would mostly impact the e-commerce and human resources divisions. read more

Microsoft (MSFT.O) said earlier on Wednesday it would cut about 10,000 jobs and take a $1.2-billion charge. read more

Reporting by Tiyashi Datta, Eva Mathews and Maria Ponnezhath in Bengaluru; Editing by Krishna Chandra Eluri, Shinjini Ganguli, and Uttaresh.V

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Apple indefinitely postpones launch of AR glasses – Bloomberg News

Jan 17 (Reuters) – Apple Inc (AAPL.O) has postponed the launch of its lightweight augmented-reality glasses indefinitely due to technical challenges, but is still planning to unveil its first mixed-reality headset this year, Bloomberg News reported on Tuesday.

The iPhone maker’s mixed-reality headset – which combines both augmented and virtual reality – is set to launch in this year’s spring event, Bloomberg said, adding that the device will cost around $3,000.

Apple’s mixed-reality device would compete with the likes of Meta Platforms’ (META.O) Quest Pro virtual and mixed-reality headset, which it launched late last year for $1,500, half of the Apple device’s reported price.

The Cupertino, California-based company now plans to focus on lowering the price of the follow-up version of its mixed-reality device, expected as soon as 2024 or early 2025, instead of working on the AR glasses, according to the report.

Apple will aim to do so by using chips on par with those in the iPhone rather than components found in higher-end Mac computers.

Apple did not immediately respond to a Reuters request for comment.

The Information website first reported Apple’s plans to unveil a cheaper mixed-reality headset on Tuesday.

earlier in the day, the iPhone maker unveiled MacBooks powered by its new and faster M2 Pro and M2 Max chips in a surprise launch weeks ahead of its usual schedule.

Reporting by Kanjyik Ghosh and Shubham Kalia in Bengaluru; Editing by Janane Venkatraman

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Microsoft to cut thousands of jobs across divisions – reports

Jan 17 (Reuters) – Microsoft Corp (MSFT.O) plans to cut thousands of jobs with some roles expected to be eliminated in human resources and engineering divisions, according to media reports on Tuesday.

The expected layoffs would be the latest in the U.S. technology sector, where companies including Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O) have announced retrenchment exercises in response to slowing demand and a worsening global economic outlook.

Microsoft’s move could indicate that the tech sector may continue to shed jobs.

“From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen,” Morningstar analyst Dan Romanoff said.

U.K broadcaster Sky News reported, citing sources, that Microsoft plans to cut about 5% of its workforce, or about 11,000 roles.

The company plans to cut jobs in a number of engineering divisions on Wednesday, Bloomberg News reported, according to a person familiar with the matter, while Insider reported that Microsoft could cut recruiting staff by as much as one-third.

The cuts will be significantly larger than other rounds in the past year, the Bloomberg report said.

Microsoft declined to comment on the reports.

The company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, according to filings.

Microsoft is under pressure to maintain growth rates at its cloud unit Azure, after several quarters of downturn in the personal computer market hurt Windows and devices sales.

It had said in July last year that a small number of roles had been eliminated. In October, news site Axios reported that Microsoft had laid off under 1,000 employees across several divisions.

Shares of Microsoft, which is set to report quarterly results on Jan. 24, were marginally higher in late afternoon trading.

Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila

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Iran executes British-Iranian accused of spying

  • Alireza Akbari was a former Iranian deputy defence minister
  • Arrested in 2019, he was accused of spying for Britain
  • Execution piles more strain on fraught ties with West
  • UK’s Sunak calls it ‘a callous and cowardly act’
  • U.S. joins UK in condemning ‘barbaric act’

DUBAI/LONDON, Jan 14 (Reuters) – Iran has executed a British-Iranian national who once served as its deputy defence minister, its judiciary said, defying calls from London and Washington for his release after he was handed the death sentence on charges of spying for Britain.

Britain, which had declared the case against Alireza Akbari politically motivated, condemned the execution, with Prime Minister Rishi Sunak calling it “a callous and cowardly act carried out by a barbaric regime”.

Akbari, 61, was arrested in 2019.

The Iranian judiciary’s Mizan news agency reported the execution without saying when it had taken place. Late on Friday, British Foreign Secretary James Cleverly had urged Iran not to follow through with the sentence.

Also condemned by the United States and France, the execution looks set to further worsen Iran’s long-strained relations with the West, which have deteriorated since talks to revive its 2015 nuclear deal hit deadlock and after Tehran unleashed a deadly crackdown on protesters last year.

In an audio recording purportedly from Akbari and broadcast by BBC Persian on Wednesday, he said he had confessed to crimes he had not committed after extensive torture.

“Alireza Akbari, who was sentenced to death on charges of corruption on earth and extensive action against the country’s internal and external security through espionage for the British government’s intelligence service … was executed,” Mizan said.

The Mizan report accused Akbari of receiving payments of 1,805,000 euros ($1.95 million), 265,000 pounds ($323,989.00), and $50,000 for spying.

Cleverly said in a statement the execution would “not stand unchallenged”. He later announced Britain had summoned the Iranian Charge d’Affaires, imposed sanctions on Iran’s prosecutor general, and temporarily withdrawn its ambassador from Tehran for further consultations.

It marks a rare case of the Islamic Republic executing a serving or former senior official. One of the last occasions was in 1984, when Iranian navy commander Bahram Afzali was executed after being accused of spying for the Soviet Union.

British statements on the case have not addressed the Iranian charge that Akbari spied for Britain.

Iran’s foreign ministry summoned the British ambassador over what it called London’s “meddling in Iran’s national security realm”, the state news agency IRNA reported.

Iranian state media, which have portrayed Akbari as a super spy, broadcast a video on Thursday which they said showed he played a role in the 2020 assassination of Iran’s top nuclear scientist, Mohsen Fakhrizadeh, killed in an attack outside Tehran which authorities blamed at the time on Israel.

In the video, Akbari did not confess to involvement in the assassination but said a British agent had asked for information about Fakhrizadeh.

Iran’s state media often airs purported confessions by suspects in politically-charged cases.

Reuters could not establish the authenticity of the state media video and audio, or when or where they were recorded.

Akbari was a close ally of Ali Shamkhani, now the secretary of Iran’s Supreme National Security Council, who was defence minister from 1997 to 2005. Akbari fought during the Iran-Iraq war in the 1980s as a member of the Revolutionary Guards.

Alireza Akbari, Iran’s former deputy defence minister, speaks during an interview with Khabaronline in Tehran, Iran, in this undated picture obtained on January 12, 2023. Khabaronline/WANA (West Asia News Agency)/Handout via REUTERS

Ramin Forghani, a nephew of Akbari, told Reuters the execution had come as a shock.

“I don’t think a person who spent all his life, from an early age, to serve the country – since the Iran-Iraq war – would spy for any country,” he said, noting Akbari had the rank of colonel in the Revolutionary Guards.

Speaking by phone from Luxembourg, he said Akbari’s wife, who lives in London, had tried but failed to persuade Iranian officials to spare his life. Reuters was unable to reach her.

‘DESPICABLE AND BARBARIC’

The U.S. State Department described the execution as politically motivated and unjust. The U.S. ambassador to London called it “appalling and sickening”. French President Emmanuel Macron called it a “despicable and barbaric act”.

Iran’s ties with the West have also been strained by its support for Russia in Ukraine, where Western states say Moscow has used Iranian drones.

Along with other Western states, Britain, which has a long history of fraught ties with Iran, has been fiercely critical of Tehran’s crackdown on anti-government protests, sparked by the death in custody of a young Iranian-Kurdish woman in September.

Iran has issued dozens of death sentences as part of the crackdown, executing at least four people.

A British minister said on Thursday Britain was actively considering proscribing the Revolutionary Guards as a terrorist organisation but had not reached a final decision.

In the recording broadcast by BBC Persian, Akbari said he had made false confessions due to torture.

“With more than 3,500 hours of torture, psychedelic drugs, and physiological and psychological pressure methods, they took away my will. They drove me to the brink of madness… and forced me to make false confessions by force of arms and death threats,” he said.

Amnesty International said the execution displayed again Tehran’s “abhorrent assault on the right to life”. In Akbari’s case, “it is particularly horrific given the violations he revealed he was subjected to in prison”.

The Iranian authorities have not responded to accusations Akbari was tortured.

An Iranian state TV report – details of which Reuters could not independently verify – said he was arrested on espionage charges in 2008 before he was freed on bail and left Iran.

In an interview with BBC Persian broadcast on Friday, Akbari’s brother Mehdi said he had returned to Iran in 2019 based on an invitation from Shamkhani.

($1 = 0.9235 euros)

($1 = 0.8179 pounds)

Reporting by Dubai newsroom, Michael Holden in London, Tassilo Hummel in Paris and Kanishka Singh in Washington; Writing by Tom Perry; Editing by William Mallard, Angus MacSwan, Tomasz Janowski and Christina Fincher

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China COVID peak to last 2-3 months, hit rural areas next -expert

  • Peak of COVID wave seen lasting 2-3 months – epidemiologist
  • Elderly in rural areas particularly at risk
  • People mobility indicators tick up, but yet to fully recover

BEIJING, Jan 13 (Reuters) – The peak of China’s COVID-19 wave is expected to last two to three months, and will soon swell over the vast countryside where medical resources are relatively scarce, a top Chinese epidemiologist has said.

Infections are expected to surge in rural areas as hundreds of millions travel to their home towns for the Lunar New Year holidays, which officially start from Jan. 21, known before the pandemic as the world’s largest annual migration of people.

China last month abruptly abandoned the strict anti-virus regime of mass lockdowns that fuelled historic protests across the country in late November, and finally reopened its borders this past Sunday.

The abrupt dismantling of restrictions has unleashed the virus onto China’s 1.4 billion people, more than a third of whom live in regions where infections are already past their peak, according to state media.

But the worst of the outbreak was not yet over, warned Zeng Guang, the former chief epidemiologist at the Chinese Center for Disease Control and Prevention, according to a report published in local media outlet Caixin on Thursday.

“Our priority focus has been on the large cities. It is time to focus on rural areas,” Zeng was quoted as saying.

He said a large number of people in the countryside, where medical facilities are relatively poor, are being left behind, including the elderly, the sick and the disabled.

Authorities have said they were making efforts to improve supplies of antivirals across the country. Merck & Co’s (MRK.N) molnupiravir was made available in China from Friday.

The World Health Organization this week also warned of the risks stemming from holiday travelling.

The UN agency said China was heavily under-reporting deaths from COVID, although it is now providing more information on its outbreak.

“Since the outbreak of the epidemic, China has shared relevant information and data with the international community in an open, transparent and responsible manner,” foreign ministry official Wu Xi told reporters.

Health authorities have been reporting five or fewer deaths a day over the past month, numbers which are inconsistent with the long queues seen at funeral homes and the body bags seen coming out of crowded hospitals.

China has not reported COVID fatalities data since Monday. Officials said in December they planned to issue monthly, rather than daily updates, going forward.

Although international health experts have predicted at least 1 million COVID-related deaths this year, China has reported just over 5,000 since the pandemic began, one of the lowest death rates in the world.

DIPLOMATIC TENSIONS

Concerns over data transparency were among the factors that prompted more than a dozen countries to demand pre-departure COVID tests from travellers arriving from China.

Beijing, which had shut its borders from the rest of the world for three years and still demands all visitors get tested before their trip, objects to the curbs.

Wu said accusations by individual countries were “completely unreasonable, unscientific and unfounded.”

Tensions escalated this week with South Korea and Japan, with China retaliating by suspending short-term visas for their nationals. The two countries also limit flights, test travellers from China on arrival, and quarantine the positive ones.

Japan’s Chief Cabinet Secretary Hirokazu Matsuno said on Friday Tokyo will continue to demand transparency, labelling Beijing’s retaliation as extremely “regrettable.”

Parts of China were returning to normal life.

In the bigger cities in particular, residents are increasingly on the move, pointing to a gradual, though so far slow, rebound in consumption and economic activity.

An immigration official said on Friday 490,000 daily trips on average were made in and out of China since it reopened on Jan. 8, only 26% of the pre-pandemic levels.

Singapore-based Chu Wenhong was among those who finally got reunited with their parents for the first time in three years.

“They both got COVID, and are quite old. I feel quite lucky actually, as it wasn’t too serious for them, but their health is not very good,” she said.

CAUTION

While China’s reopening has given a boost to financial assets globally, policymakers around the world worry it may revive inflationary pressures.

However, December’s trade data released on Friday provided reasons to be cautious about China’s recovery pace.

Jin Chaofeng, whose company exports outdoor rattan furniture, said he has no expansion or hiring plans for 2023.

“With the lifting of COVID curbs, domestic demand is expected to improve but not exports,” he said.

Data next week is expected to show China’s economy grew just 2.8% in 2022, its second-slowest since 1976, the final year of Mao Zedong’s decade-long Cultural Revolution, according to a Reuters poll.

Some analysts say last year’s lockdowns will leave permanent scars on China, including by worsening its already bleak demographic outlook.

Growth is then seen rebounding to 4.9% this year, still well below the pre-pandemic trend.

Additional reporting by the Beijing and Shanghai newsrooms; Writing by Marius Zaharia; Editing by Raju Gopalakrishnan

Our Standards: The Thomson Reuters Trust Principles.

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