Aurelia Butler

Reuters on Jan. 6 reported the Russian hacking team, known as Cold River, had targeted three nuclear research laboratories in the United States this past summer, according to internet records reviewed by Reuters and five cyber security experts.Russia’s Federal Security Service (FSB), the domestic security agency that also conducts espionage campaigns for Moscow, and Russia’s embassy in Washington did not respond to emailed requests for comment for the Jan. 6 article.”The latest pseudo investigation was unfortunately published by Reuters news agency,” Maria Zakharova, Russia’s Foreign Ministry spokeswoman, told reporters. Zakharova said the story was in line with a campaign by the U.S. government to spread anti-Russian propaganda and that the Reuters story lacked facts and was too reliant on the views of allegedly independent experts. “There was no evidence given, no facts,” Zakharova said. She did not elaborate.A Reuters spokesperson said: “We stand by our reporting, which was fair, accurate and in keeping with the Thomson Reuters (NYSE:TRI) Trust Principles.” In its reporting, Reuters reviewed internet records showing emails sent by hackers posing as nuclear scientists with weaponized attachments to staff at U.S. nuclear laboratories, as well as malware and fake login pages used in the hacking attempts.Reuters corroborated its findings with experts at major cyber security firms in Britain, France and the United States, who said the attacks bore the technical hallmarks of previous hacking campaigns by Cold River. More

BEIJING (Reuters) – Residents of China are increasingly on the move after the country’s sudden reversal last month of heavy COVID-19 curbs, despite a surge in infections, pointing to a gradual recovery in consumption and economic activity this year. Mobility and spending data — from subway passenger traffic in three of China’s biggest cities to flight volumes to box office collections — show upticks since late December, after Beijing abruptly ended three years of “zero-COVID” policy earlier in the month.Graphic 1: Chinese commuters back to work, https://www.reuters.com/graphics/CHINA-ECONOMY/ACTIVITY/myvmogglzvr/chart.pngGraphic 2: Taking to the skies again, https://www.reuters.com/graphics/CHINA-ECONOMY/ACTIVITY/egpbymmdevq/chart.png Still, some indicators show activity has not fully recovered to levels of just a few months ago, and many economists remain cautious about the pace of revival following the faster-than-expected reopening. “The pullback in retail spending has been increasingly broad-based, suggesting that it will take time to reverse the negative psychological impact on Chinese consumers brought on by three years of episodic lockdowns,” said Louise Loo, senior economist at Oxford Economics.COVID-related lockdowns and curbs have bit into travel, moviegoing and car-buying last spring and again at the start of winter, data from information providers and industry bodies showed. Graphic 3: Back to the movies, https://www.reuters.com/graphics/CHINA-ECONOMY/ACTIVITY/gkplwxxoovb/chart.pngGraphic 4: China’s auto sales hurt by COVID curbs, https://www.reuters.com/graphics/CHINA-ECONOMY/ACTIVITY/zdvxdrrzovx/chart.pngIn addition, Loo said a speedy recovery is also hampered by shifts in household liquidity positions over the course of the pandemic.”Unlike the outright cash payoff schemes seen in Hong Kong and Singapore that go some way in supporting household spending, China’s COVID-relief programmes have instead focused predominantly on supporting businesses affected by lockdowns,” she said.Policymakers have promised to boost demand this year, especially consumption.But spending in other major economies has lost steam due to surging interest rates aimed at taming inflation, which is hurting China’s exports, which were a rare bright spot for its economy during the pandemic era.An official factory activity survey showed a sub-index of new export orders has remained in contraction territory for 20 consecutive months. The figure declined to 44.2 in December from 46.7 in November. The 50-point mark separates contraction from growth on a monthly basis.Graphic 5: Exports: a key challenge, https://www.reuters.com/graphics/CHINA-ECONOMY/ACTIVITY/zgpobrrgnvd/chart.pngEmployment in the massive manufacturing sector is under pressure too, according to the survey, likely due to muted production levels and difficulties sourcing workers amid the virus outbreaks, according to analysts.Economists expect the world’s second-largest economy to pick up from the second quarter, underpinned by stronger consumption and increased state outlays on infrastructure projects. But a recovery in the country’s embattled property market could take much longer. (Graphics by Kripa Jayaram, Riddhima Talwani and Sumanta Sen; Reporting by Ellen Zhang and Kevin Yao; Editing by Kim Coghill) More

(Reuters) – A campaign by U.S. Republican state officials to bar financial institutions from winning business because of their stance on issues like climate change could have cost taxpayers as much as an estimated $708 million in higher interest payments, according to a study backed by environmental activists and released on Thursday.The study, commissioned by non-profit The Sunrise Project, attributed the higher costs primarily to reduced competition to underwrite government bonds in six states furthest along in restricting financial firms or considering doing so.The restrictions would mean fewer banks seeking to underwrite municipal bond issuance, a common way for cities to raise money.Republicans last year stepped up their backlash against firms that incorporate environmental, social or governance (ESG) goals into their business, arguing they should focus more on investment returns. West Virginia last year barred banks, including some of the largest underwriters like JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), and the world’s biggest asset manager, BlackRock (NYSE:BLK), from winning state business because of their approach to sustainable finance, and other states have taken similar steps.According to the new study, taxpayers in six states – Kentucky, Florida, Louisiana, Oklahoma, West Virginia and Missouri – could have faced up to $708 million in additional interest charges on municipal bonds over the past 12 months.The study based its analysis on a recent Wharton School of Business paper that found Texas taxpayers could have faced up to $532 million in additional interest payments because of restrictions introduced in that state.”Legislators will face the backlash of their constituents for flushing hundreds of millions of dollars down the toilet for their own political games,” said Andrew Behar, CEO at shareholder advocacy group As You Sow, one of the backers of the study.Differences among the states could limit the relevance of the Texas model. Matt Frey, a policy adviser to Kentucky’s Republican Treasurer Allison Ball (NYSE:BALL), noted municipalities are exempt from a recent state law meant to protect energy companies and therefore “it should not affect the municipal bond market” in the state.” More

Luiz Inácio Lula da Silva’s administration on Thursday announced its first economic measures, outlining a number of proposed tax increases and spending cuts aimed at turning Brazil’s projected deficit this year of more than R$231bn (US$45bn) into a surplus of more than R$11bn.Finance minister Fernando Haddad warned that this goal would prove difficult, however, and said the government would be content to end this year with a deficit of less than 1 per cent of gross domestic product, down from forecasts for 2.1 per cent.Following violent riots in Brasília on Sunday, many expected the announcement to be postponed, but the economy ministry decided to demonstrate its work had not been disrupted.Haddad was accompanied by two other ministers and senior secretaries in a gesture aimed at conveying the administration’s broad backing for the measures, which are likely to prove unpopular with voters.However, they may assuage market concerns about the nation’s public accounts and the government’s commitment to fiscal rectitude.“This fiscal restructuring programme is based on the assumption that there is no lasting sustainable growth with a deficit of R$230bn,” said Simone Tebet, minister for planning, who announced the package alongside Haddad.“[This deficit] means we cannot create room for employment and income generation with 2 per cent of GDP already committed,” Tebet added. “This impacts interest rates and consequently the viability of Brazil returning to growth.”Haddad called the primary deficit “absurd” when he formally took office on January 2.The package envisages increasing revenues by more than R$190bn, while reducing expenses by R$50bn.This will be done via a series of changes to taxation, including the reversal of an exemption for large non-financial companies adopted in the final days of the previous administration of Jair Bolsonaro. The measures will also change how companies can generate tax credits with the ICMS levy, a state-level tax on the movement of goods.In addition, the measures seek to restore the government’s so-called quality vote at the Administrative Council of Tax Appeals, a court that judges tax disputes.Restoring this vote virtually ensures the federal government will win disputes when there is a tied judgment at the court, which happens frequently. This in turn will lead to increased revenues.

Congress voted to strip the government’s quality vote in 2020 during the Bolsonaro administration.The economic package is composed of a series of ministerial ordinances and several presidential decrees and executive orders that must be voted on in Congress, which could present some obstacles.Mariam Dayoub, chief economist at Grimper Capital, said the package was a “good strategy until more structural measures are worked out. The market already reacted well to the news when it leaked last week and I believe it will continue to react well.”Sergio Vale, chief economist with MB Associados, said the market was waiting for Haddad to announce a new fiscal framework and the government’s proposal for tax reform.“The announced objective is indeed ambitious. Probably not all that the government is forecasting will happen. Haddad already signalled this,” Vale said.Additional reporting by Carolina Ingizza

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