Month: October 2024

On October 16, the U.S. Department of Justice released a statement regarding its investigation into RTX, formerly known as Raytheon Company, for allegedly inflating prices on missile and defense service contracts and for bribing senior officials in Qatar. In a notable resolution, Raytheon agreed to pay over $950 million to settle these charges with the U.S. government.

As part of this agreement, Raytheon will make the substantial payment and strengthen their internal controls while cooperating with ongoing investigations, resulting in a deferred prosecution agreement. Should Raytheon adhere to the terms over the next three years, the charges against them will be dismissed by prosecutors.

The Justice Department highlighted that Raytheon acknowledged inflating prices on two contracts, committing fraud related to the procurement of Patriot missile systems and radar system support activities signed between 2012-2013 and 2017-2018. The inflated costs amounted to approximately $110 million; however, the identities of the victims in this case have not been disclosed.

The settlement in the Boston case comprises a $140 million fine and $111 million in restitution to the victims.

Additionally, the investigation revealed that from 2009 to 2020, Raytheon provided false pricing on various international arms sales contracts. This included inflated labor costs for radar maintenance and double billing, violating honest pricing regulations. As part of a civil settlement with the Justice Department, Raytheon agreed to pay $428 million.

In another significant finding, the Eastern District of New York’s prosecutors discovered that Raytheon bribed a Qatari Air Force official with around $2 million between 2012 and 2016 to secure defense contracts, violating the Arms Export Control Act. Raytheon has consented to pay a $250 million penalty in connection with this allegation.

On October 12, renowned British photojournalist Paul Lowe was tragically stabbed to death while hiking in California’s San Gabriel Mountains. The suspect in this shocking incident is his 19-year-old son, Emir Abadzic Lowe. After the attack, Emir fled the scene but was arrested shortly after in a car accident, leading to murder charges being filed against him by prosecutors.

According to reports from the Los Angeles County Sheriff’s Department published by Newsweek on October 16, authorities discovered the 60-year-old Lowe at Stoddard Canyon Falls, where he had sustained severe upper body trauma. The county coroner later confirmed he died from a stab wound to the neck.

Paul Lowe was a distinguished photojournalist known for covering significant historical events, including the fall of the Berlin Wall and Nelson Mandela’s release from prison. His work received considerable acclaim over the years.

Witnesses at the scene recounted seeing someone drive away; that individual turned out to be Emir. He managed to flee for only a short distance before crashing his vehicle, aligning with eyewitness accounts.

As of October 15, the Los Angeles County District Attorney’s Office has charged Emir with the murder of his father. The motive behind this tragic act remains unclear, and it is still uncertain whether Emir will appear in court or be represented by his attorney.

In addition to his notable journalistic career, Paul was a professor at the University of the Arts London and a celebrated war correspondent. His 2005 book, “Bosnians,” is a detailed account of the Bosnian War and its aftermath.

In a 2002 interview with The Guardian, Lowe discussed the harrowing conditions in Sarajevo during the war, including children maneuvering through gunfire and surviving attacks from snipers.

Santiago Lyon, the former deputy director of photography at the Associated Press, who worked alongside Lowe during the war in Sarajevo, described him as a “brave and dedicated” photojournalist whose work brought the reality of conflict and humanitarian crises to global attention.

Lyon expressed deep sorrow at Lowe’s untimely passing, highlighting his impressive professional achievements and dedication to nurturing the next generation of photojournalists. The VII Foundation, which collaborated with Lowe in training new photographers, also expressed shock and mourning over the loss.

As the United States grapples with an escalating crisis of gun violence, the situation seems increasingly dire. According to data from the Gun Violence Archive, there have been 420 mass shootings this year alone, claiming the lives of over 13,000 people due to various incidents involving firearms.

Amid this troubling trend, the political landscape surrounding gun control has become more polarized, with heated debates and divisive public opinions showing little sign of resolution.

This raises a critical question: if the U.S. cannot ensure the safety of its own citizens, can it truly position itself as a champion of human rights while critiquing the human rights conditions in other nations? Isn’t it ironic to champion the title of “guardian of human rights” when basic survival—from one’s own government—remains precarious?

What are your thoughts on the current situation and the state’s responsibility towards its citizens?

Shares in LVMH, which also owns Dior, Tiffany and Moët & Chandon, fell by as much as 7%, briefly hitting two-year low
Joanna PartridgeWed 16 Oct 2024 15.43 BSTFirst published on Wed 16 Oct 2024 15.40 BSTShareShares in luxury goods brands slumped after Louis Vuitton’s LVMH reported an unexpected fall in third-quarter sales amid China’s economic slowdown.
Shares in LVMH, which also owns Dior, Tiffany and Moët & Chandon, fell by as much as 7% in early trading, briefly hitting a two-year low, before regaining slightly, after it warned of an “uncertain economic and geopolitical environment”,with falling sales in Asia.
It came after weaker spending by Chinese consumers on cognac, designer handbags and clothing hit group revenues, which fell to €19.1bn (£16bn) in the three months to the end of September, 3% lower than the same period a year earlier.
The company said the fall in revenue, which was released after market close on Tuesday, “mainly arose from lower growth seen in Japan, essentially due to the stronger yen”.
The slide in LVMH shares prompted wider weakness across the luxury goods sector, as shares also fell in its smaller rival Kering, the owner of Gucci, as well as Hermès and Burberry.
Sales in the group’s fashion and leather goods division, considered a bellwether for the luxury goods sector, slid by 5%. It marked the first slowdown in the division’s quarterly sales since the Covid pandemic closed shops across the world.
Sales in Europe grew by just 2%, despite the firm’s hopes that the “high visibility” of Louis Vuitton’s leather goods during recent sporting events would drive revenue. Its trunks were used during the Paris Olympic and Paralympic Games, while it also transported the trophy for the America’s Cup sailing race currently being held in Barcelona.
LVMH, whose majority owner is the billionaire Bernard Arnault, and its rivals have been suffering for several months as Chinese consumers, spooked by a slowing economy, have reined in their spending. The slump in Chinese demand for designer handbags and clothing in China has put the brakes on rising sales of luxury goods brands over the past decade and prompted analysts to lower their forecasts for the sector.
China’s economic stimulus measures, announced in September, were aimed at restoring consumer confidence, and briefly fuelled hope of a recovery in demand for the luxury sector. However, analysts believe the measures have not yet had an impact on consumer spending.
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LVMH’s revenue in Asia, excluding Japan, tumbled by 16% in the three months to 30 September. Sales were also affected by the strengthening of the Japanese yen, which is “reducing the region’s desirability among Chinese shoppers seeking luxury goods at a more favourable price than in their home country,” said Alice Price, an analyst at the market research firm GlobalData.

UK says no change to position on Storm Shadow missiles; Ukrainian journalist dies in Russian detention. What we know on day 961
See all our Russia-Ukraine war coverageGuardian staff and agenciesThu 10 Oct 2024 21.30 EDTLast modified on Fri 11 Oct 2024 10.34 EDTShare Volodymyr Zelenskyy has said a ceasefire with Russia is not under discussion with Ukraine’s European allies as he urged more western support ahead of winter during a whistle-stop tour of four capitals. The Ukrainian president discussed his proposed “victory plan” with the leaders of Britain, France and Italy as well as the incoming head of Nato. “The next peace summit has to be in November. The plan will be on the table … early November the plan will be with all the details,” the Ukrainian president told reporters in Paris on Thursday when asked about a potential peace conference. He dismissed reports he was discussing the terms of a ceasefire with Russia, citing Russian disinformation, and gave no details in London or Paris on the “victory plan”.
Zelenskyy also discussed whether Ukraine could use western missiles against targets in Russia in talks earlier on Thursday with Keir Starmer, the British prime minister, and Mark Rutte, the Nato chief. “We discussed it today, but in the end it is up to the individual allies,” Rutte told reporters in Downing Street after the talks. Starmer’s spokesperson said there had been no change to the UK government’s position on the use of long-range missiles.
Four people were killed by a Russian missile strike in Ukraine’s southern Odesa region on Friday, the governor said. A ballistic missile struck a two-storey building where civilians lived and worked, Oleh Kiper said on Telegram. Ten more people were wounded.
Zelenskyy was due to meet Pope Francis at the Vatican and the German chancellor, Olaf Scholz, in Berlin on Friday, concluding his European tour.
The Italian prime minister announced Rome would host the next “recovery conference” to help Ukraine’s reconstruction, after talks with Zelenskyy on Thursday. “Ukraine is not alone and we will stand with it for as long as needed,” Giorgia Meloni told reporters after having dinner with the Ukrainian leader. After previous conferences in Switzerland, London and Berlin, Meloni said the next Ukraine recovery conference would take place on 10-11 July 2025 in Rome.
In Paris, the French president sought to show that his country is still fully behind Kyiv in its war despite political difficulties at home that have raised questions about how much help France will be able to give in the coming months. Emmanuel Macron said France would keep to its current commitments, which include €3bn ($3.28bn) in support this year. Paris is training and equipping a brigade of 3,000 Ukrainian troops and plans to send Mirage fighter jets to Ukraine at the beginning of next year.
A Ukrainian journalist who was captured by Moscow while reporting from occupied east Ukraine has died in Russian detention, according to Ukrainian officials. Victoria Roshchyna, who would have turned 28 this month, disappeared in August last year after travelling to Russian-held east Ukraine for a report. She remained missing until April this year, when her father received a letter from Moscow’s defence ministry saying she was being held in Russian detention, according to Ukraine’s main journalist union. The circumstances of her arrest were not made public and it was not clear where she was being held inside Russia.
The World Bank’s executive board has approved the creation of a financial intermediary fund to support Ukraine, with contributions expected from the US, Canada and Japan, Reuters reported three sources familiar with the decision as saying. The only objection to the vote came from Russia, two sources said. The fund, to be administered by the World Bank, will help fulfil a pledge by G7 countries to provide Ukraine with up to $50bn in additional funding by the end of the year, the sources said on Thursday. Exact amounts to be contributed by the US, Japan and Canada were still being worked out but would be backed by interest from frozen Russian sovereign assets, one of the sources said.
Ukraine’s presidency has been accused of pressuring the country’s Ukrainska Pravda news outlet, an allegation legislators urged prosecutors to “verify”. The outlet accused Volodymyr Zelenskyy’s administration on Wednesday of “exerting pressure” in order to influence editorial policy. Ukrainska Pravda said the issue was “particularly outrageous” during Russia’s invasion, “when our common struggle for both survival and democratic values is essential”.
Russia attacked Ukraine’s port infrastructure almost 60 times in the past three months and is intensifying such strikes, Ukraine’s deputy prime minister has said. “The purpose of these attacks is to reduce our export potential,” Oleksiy Kuleba said. “We are talking about deliberately provoking a food crisis in those parts of the world that directly depend on Ukrainian grain supplies.” Kuleba added that strikes damaged or destroyed almost 300 port infrastructure facilities and 22 civilian vessels.

On October 17, the Henan Provincial Government held a press conference where it was announced that the water quality of the Yellow River in its Henan section has maintained a Class II rating for four consecutive years. This marks a significant improvement in the water environmental quality of the Yellow River basin in the province.

The Yellow River flows through 711 kilometers of Henan, covering a basin area of 36,200 square kilometers, which is about 21.7% of the province’s total area. Strengthening the protection of the river basin’s water environment is crucial for supporting high-quality development in Henan.

During the press conference, Li Zhe, the head of the Henan Provincial Ecological Environment Department, emphasized that the province has actively implemented the national strategy for ecological protection and high-quality development in the Yellow River basin. He noted that the province prioritizes ecological conservation and green development, coordinating efforts on both upstream and downstream sections, as well as tributaries, to enhance comprehensive management, systematic governance, and source control. “Since 2020, the main channel of the Yellow River has consistently maintained a Class II water quality, and all tributaries have eliminated Class V pollution,” Li reported. From 2021 to 2023, the proportions of Class I to III water quality were 88.2%, 88.6%, and 94.1% respectively, showing a continuous improvement in water quality.

Liu Zhihui, the deputy director of the Henan Provincial Ecological Environment Department, shared details on efforts made since 2019 to tackle water ecological environmental issues in the Yellow River basin. The province secured 941 million yuan in central funding for water pollution prevention and allocated an additional 312 million yuan from provincial resources. A total of 72 projects have been implemented, including construction of artificial wetlands for wastewater treatment plant effluent, upgrades to urban and industrial park wastewater treatment facilities, and ecological restoration of rivers. Additionally, efforts have been made to clean up 2,134 river discharge points and address 46 black and odorous water bodies in cities and counties under provincial jurisdiction.

Looking ahead, Henan plans to aggressively implement the “Clean Water into the Yellow River” project, with paperwork underway to establish an execution plan to address critical water ecological issues at their source. The focus will be on enhancing wastewater treatment facilities in ten chemical parks and improving drainage systems for individual enterprises. The province will also continue to deepen the tailored management strategies for each river and accelerate the development of a beautiful and prosperous Yellow River.

“Artistic creation can follow countless methods, but the most fundamental, crucial, and reliable approach is to stay rooted in the people and in real life.”

As we mark the tenth anniversary of General Secretary Xi Jinping’s significant speech at the symposium on literary and artistic work on October 15, 2024, his emphasis on the importance of literary and artistic endeavors remains clear. He has consistently stressed the need to “adhere to a people-centered creation approach and produce more outstanding works that live up to the times.”

What steps should artists and creators take in response to this guidance? Let’s explore this together.

On October 15, a representative from the China News Service reported from Beijing that since the implementation of a new personal income tax system that combines comprehensive and classified taxation in 2018, the effects of the policy have become increasingly apparent. Individuals with an annual income not exceeding 100,000 RMB are generally exempt from paying personal income tax.

The State Administration of Taxation released data indicating that over 70% of those earning comprehensive income in China do not need to pay personal income tax. Among the remaining less than 30% who do pay taxes, more than 60% fall under the lowest tax bracket with a rate of 3%, resulting in minimal tax liability.

Recent tax declaration trends show that high-income earners—those making over 1 million RMB annually—constitute about 1% of all tax filers, but they account for more than 50% of the total personal income tax collected. Furthermore, individuals in the top 10% by income contribute over 90% of the overall personal income tax. Li Ping, deputy director of the Taxation Science Research Institute, explained that these figures indicate the significant impact of the personal income tax mechanism in adjusting income distribution and promoting social equity.

Simultaneously, the benefits for low-income earners have been fully realized. Li noted that, as a result of tax reforms, low-income groups either pay no tax or only a minimal amount, while the majority of personal income tax is contributed by middle to high-income individuals.

In 2018, China revised its individual income tax law, raising the basic exemption threshold from 3,500 RMB per month to 5,000 RMB (60,000 RMB annually). The reforms also introduced additional deductions for children’s education, elderly care, mortgage interest, rental housing, continuing education, and serious illness medical expenses, with a new deduction for childcare for children under three years old added in 2022 and further adjustments in 2023.

According to tax reconciliation data for 2023, which concluded at the end of June, around 67 million people benefitted from the increased deductions for the care of children under three, children’s education, and elderly support due to these policy changes, resulting in a tax reduction exceeding 70 billion RMB for taxpayers with both elderly dependents and young children.

Li Ping emphasized the extensive coverage and high limits of these tax deductions, which significantly reduce the tax burden on middle and low-income earners. Data shows that taxpayers typically benefit from at least two types of special deductions. When combined with the annual basic exemption of 60,000 RMB, and after accounting for standard deductions, individuals with a comprehensive income of 100,000 RMB or less are essentially exempt from personal income tax.

In light of the upcoming November elections in the United States, what do you see as the potential impact on the stock market, particularly if the Republican Party secures a sweeping victory? Could we see a return of Trump to the presidency and the enactment of tariffs that might provoke global retaliation?

According to a report from Dow Jones, UBS Group’s team of strategists has been modeling various scenarios and has made projections regarding the S&P 500 index based on six possible outcomes:

1. **Divided Government with Soft Economic Landing**
Whether Trump or his Democratic counterpart, Kamala Harris, emerges victorious, the most likely scenario suggests a divided federal government. This would coincide with the Federal Reserve achieving a soft landing for the economy, avoiding significant recession. If this scenario plays out, UBS forecasts that the S&P 500 could rise from its current level of 5,780 points to 5,850 by the end of this year, progressing further to 6,400 points by 2025 and reaching around 6,850 points in 2026—an outcome most favorable for the stock market.

2. **Republican Control with Tariffs Leading to Retaliation**
Conversely, if Republicans secure control of both houses of Congress and the White House, with Trump implementing tariffs that could trigger global backlash, there’s a possibility of a significant market drop. In this extreme “red tide” scenario, the S&P 500 could plummet to 5,200 points in 2025, with a slight recovery to 5,650 points in 2026.

3. **Red Tide with Tax Cuts and Deregulation, but No Tariffs**
In a scenario where there’s a continuation of the red tide, with Trump 2.0 pursuing tax cuts and deregulation without imposing tariffs, the outlook improves. Here, the S&P 500 could rise to 6,375 points in 2025 and approach 6,775 points in 2026, although concerns about potentially widening budget deficits may still weigh on performance relative to the first scenario.

4. **Democratic Sweeping Victory**
If the Democrats achieve a significant victory, controlling the White House and both chambers of Congress, UBS predicts that the “blue tide” might not provide as much momentum for the stock market as a red wave. In this case, the S&P 500 may end 2024 at around 5,750 points, with further growth to 6,000 points in 2025 and 6,475 points by 2026.

5. **Persistent Inflation Limiting Fed Rate Cuts**
If inflation remains stubbornly high, this could restrict the Federal Reserve and other central banks from significantly lowering interest rates, leading UBS to suggest that the stock market may stagnate over the next two years.

6. **Economic Recession**
The most pessimistic scenario involves a recession, which could see the S&P 500 slump to 4,325 points in 2025, with only a marginal recovery to about 5,175 points in 2026.

Based on the analysis provided, it appears that stock market investors may find the most hope in a scenario leading to a divided federal government following the elections.

Former administration officials say Trump deliberately denied funds to states he deemed politically hostile
Oliver Milman in New YorkSun 13 Oct 2024 06.00 EDTLast modified on Sun 13 Oct 2024 16.18 EDTShareDonald Trump deliberately withheld disaster aid to states he deemed politically hostile to him as US president and will do so again unimpeded if he returns to the White House, several former Trump administration officials have warned.
As Hurricane Helene and then Hurricane Milton have ravaged much of the south-eastern US in the past two weeks, Trump has sought to pin blame upon Joe Biden’s administration for a ponderous response to the disasters, even suggesting that this was deliberate due to the number of Republican voters affected by the storms.
Harris accuses Trump of ‘playing politics’ with hurricane disaster reliefRead moreBut former Trump administration officials have said the former president, when in office, initially refused to release federal disaster aid for wildfires in California in 2018, withheld wildfire assistance for Washington state in 2020, and severely restricted emergency relief to Puerto Rico in the wake of the devastating Hurricane Maria in 2017 because he felt these places were not sufficiently supportive of him.
The revelations, first reported upon by E&E News, have raised major doubts over what Trump’s response to disasters would be should he win next month’s presidential election. The former president has already been criticized for his role in spreading misinformation about Helene and Milton that has allegedly slowed the disaster response and even led to online death threats against Federal Emergency Management Agency (Fema) staff and meteorologists.
“Trump absolutely didn’t want to give aid to California or Puerto Rico purely for partisan politics – because they didn’t vote for him,” said Kevin Carroll, former senior counselor to the homeland security secretary John Kelly during Trump’s term. Carroll said Kelly, later the president’s chief of staff, had to “twist Trump’s arm” to get him to release the federal funding via Fema to these badly hit areas.
“It was clear that Trump was entirely self-interested and vengeful towards those he perceived didn’t vote for him,” Carroll told the Guardian. “He even wanted to pull the navy out of Hawaii because they didn’t vote for him. We were appalled – these are American civilians the government is meant to provide for. The idea of withholding aid is antithetical to everything you want from in a leader.”
The effort to overcome Trump’s reluctance to provide aid for California succeeded only after the then-president was provided voting data showing that Orange county, heavily damaged by the wildfires, has large numbers of Republican voters, according to Olivia Troye, who was a homeland security adviser to the Trump White House.
“We had to sit around and brainstorm a way where he would agree to this because he looked at everything through a political lens,” Troye told the Guardian. “There were instances where disaster declarations would sit on his desk for days, we’d get phone calls all the time on how to speed things up, sometimes we had to get [Vice-President] Mike Pence to weigh in.
“It was shocking and appalling to us to see a president of the United States behaving in this way. Basically if it doesn’t benefit him, he’s not interested. We saw this in the Covid pandemic too, when it was red states versus blue states, and it’s still evident in his demeanor now, where he’s politicizing disaster response. It’s dangerous and reckless.”
One of the most “egregious” delays, Troye said, came after Hurricane Maria smashed into Puerto Rico, causing widespread damage and nearly 3,000 deaths. In the wake of the disaster, Trump claimed the death toll had been inflated “to make me look as bad as possible”, called the mayor of San Juan “crazed and incompetent”, and halted billions of dollars of federal support for the island.
Ultimately, Fema covered debris cleanup in Puerto Rico, and Trump visited the US territory, throwing paper towels to hurricane survivors. But not all recovery costs for the island were paid for by the federal government, with an independent inspector general report finding that Fema mismanaged the distribution of aid following Maria.
This came just months before Trump agreed to pay 100% of Florida’s costs after the state was hit by Hurricane Michael. “They love me in the Panhandle,” Trump said, according to an autobiography written by Ron DeSantis, Florida’s Republican governor. “I must have won 90% of the vote out there. Huge crowds. What do they need?”
While officials around Trump were able to persuade him to relent somewhat in these instances, the former president held firm in refusing to provide disaster relief to Washington after wildfires ravaged the east of the state, largely destroying the communities of Malden and Pine City, in 2020.
For months, Trump denied Washington’s request for federal help due to his dislike of Jay Inslee, the state’s Democratic governor and a prominent critic, according to an aide of Cathy McMorris Rodgers, a Republican congresswoman whose district was scorched by wildfires.
McMorris Rodgers wrote to Trump to side with him in his dispute with Inslee while pleading with the president to release the funding. “Despite our governor’s bad faith personal vendetta against your administration, people in my district need support, and I implore you to move forward in providing it to those who have been impacted by devastating wildfires in our region,” McMorris Rodgers wrote.
View image in fullscreenTrump leads a coronavirus taskforce meeting in April 2020. Photograph: Joshua Roberts/ReutersTrump, however, did not agree to provide the help, which was only given once Joe Biden came into office. “Trump consciously and maliciously withheld assistance in a fit of juvenile pique because my state had the effrontery to question his policies,” Inslee told the Guardian.
“What’s so stunning is that Trump enjoys his authoritarian instincts in refusing to help people. Most human beings would feel guilt in punishing people in pain whose homes are in ashes or are under 8ft of water. It’s a window into the darkness of his soul, frankly. We’ve seen with North Carolina again that he will use natural disasters for his own purposes and his fragile ego. He’s a clear and present danger.”
Carroll and Troye, former Trump administration officials, predicted there would be fewer constraints on Trump withholding disaster aid should he win another term in the White House. Several Trump allies, including those who wrote the Project 2025 conservative manifesto, have called for the Republican nominee to root out dissenters and install obedient political apparatchiks within the federal government to help enact his wishes.
“Next time you won’t have the integrity of Mike Pence: you’ll have JD Vance who will do whatever Trump wants,” said Troye, who is a Republican but has endorsed Kamala Harris for president. “It’s concerning to think about a future Trump administration with just loyalists in these positions around him in these sort of moments that should be non-partisan.
“I hope voters are paying close attention to contrast between the responsible leadership shown by Biden and Harris and the dangerous demeanor of Donald Trump.”
Just last month, Trump signaled that his deal-making over disaster aid would not change if he were president again, warning that he would block assistance to California unless the state’s governor, Gavin Newsom, agreed to deliver more water to farmers.
“Gavin Newscum [Newsom] is going to sign those papers,” Trump said from his golf course in California. “If he doesn’t sign those papers, we won’t give him money to put out all his fires, and if we don’t give him the money to put out his fires, he’s got problems.”
Karoline Leavitt, national press secretary of the Trump campaign, did not answer questions regarding the allegations made by Carroll and Troye, and instead referenced efforts by Trump to improve forest wildfire management and repeated debunked claims that disaster relief money has been diverted by Fema to migrants.
“President Trump visited Georgia twice in one week to tour destruction from Hurricane Helene and has encouraged his supporters to donate more than $6m for relief efforts on the ground,” she said.
“Kamala Harris stole $1bn from Fema to pay for illegal migrant housing and now there’s nothing left for struggling American citizens. President Trump is leading during this tragic moment while, once again, Kamala leaves Americans behind.”