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    Brazil’s Bolsonaro considering minimum wage increase after leaked reports

    The remarks, made at a virtual event on cooperativism, took place ahead of an Oct. 30 presidential election runoff vote in which right-wing Bolsonaro trails former leftist President Luiz Inacio Lula da Silva in polls.Folha de S. Paulo newspaper last week reported the government was studying whether to end a constitutional obligation to adjust the minimum wage annually by at least the previous year’s inflation, news that negatively hit Bolsonaro’s campaign.On Tuesday, the O Estado de S. Paulo newspaper reported on Tuesday that studies by the ministry proposed abolishing the ability to deduct medical and education expenses from income tax. Such a measure would mainly affect the middle class.In both cases, Guedes acknowledged the existence of internal studies but attributed their preparation and leakage to Lula’s Workers Party (PT) members who work in the ministry.”On the eve of elections, they leak studies that were discarded,” he said.PT did not immediately respond to Reuters’ request for comment.The minister stressed that Bolsonaro’s administration wants to approve a tax reform that reduces the burden on the poorest and taxes profits and dividends.Later on Tuesday, the Economy ministry said in a statement that supposed studies, analyses, essays and opinions produced by the technical areas of the cabinet could not be “incorrectly taken as proposals from the ministry or the minister.” More

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    Visa profit beats as payment volumes surge on travel demand

    (Reuters) -Visa Inc reported better-than-expected quarterly earnings on Friday as more Americans took advantage of a stronger dollar to fly to international destinations and splurge on shopping and entertainment.Upbeat earnings from Visa (NYSE:V) and rival American Express (NYSE:AXP) further underscore the strength in U.S. consumer spending, which has largely managed to shrug off worries over inflation and rising interest rates.However, Visa said the skyrocketing greenback does not bode well for the American tourism industry, which relies on a big portion of its revenue from international travelers. “Travel outbound from the U.S. to all geographies continue to pick up steam,” Chief Financial Officer Vasant Prabhu said on a post-earnings call. “The strong dollar and delays in visa issuance from some countries appear to be impacting travel into the U.S,” he added.Transactions processed at the world’s largest payments processor rose 12% on a constant dollar basis to 50.9 billion in the fourth quarter ended Sept. 30.”The substantial growth in processed transactions is a good indication that inflation isn’t the primary driver of increased spending,” said Ted Rossman, senior industry analyst at Bankrate.com.On a constant dollar basis, Visa’s payment volumes surged 10%, while cross-border volumes – a key measure that tracks spending on cards beyond the country of issue – jumped 36%. Excluding items, the world’s largest payments processor reported a profit of $1.93 a share, beating estimates of $1.86, according to Refinitiv IBES data.Visa’s net income was $3.9 billion, or $1.86 per share, for the quarter, compared with $3.6 billion, or $1.65 a share, a year earlier.Net revenue rose 19% to $7.79 billion, while operating expenses jumped 20% to $2.7 billion.”We still plan to grow our expenses in high single digits next year,” Prabhu said, adding that the company will scale costs back if a recession or a geopolitical shock arises.American Express also reported a 19% jump in expenses on higher customer engagement and acquisition costs. More

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    Alphabet’s miss fans inflation fears across digital advertising

    (Reuters) -Google parent Alphabet (NASDAQ:GOOGL) Inc’s disappointing ad sales sparked worries across the digital media sector on Tuesday as advertisers cut back on their spending in the face of an economic slowdown.Alphabet called out slowing spending by advertisers on YouTube, said financial services spending was cooling on Google, and plans to cut hiring by more than half.The negative results shattered many expectations that Google, which is the world’s largest digital advertising platform by market share, would remain strong in a weakening economy and reinforced worries on Wall Street that inflation will continue to hurt advertising spending. Last week, smaller rival Snap Inc (NYSE:SNAP)’s slowest-ever revenue growth rate sent inflation fears through tech sector and temporarily wiped out $40 billion in market capitalization.Shares in Alphabet fell 6.5% in trading after the bell.Alphabet’s weak results raises concerns for other companies in the sector, especially advertising-dependent Meta Platforms. The Facebook (NASDAQ:META) parent, which reports results on Wednesday, saw shares drop 4.5% on Tuesday.Ruth Porat, Alphabet’s chief financial officer, said the deceleration in overall advertising revenue was due to last quarter’s “very strong performance,” adding that lower ad sales on YouTube were due to some advertisers pulling back on their ad spending.Companies that slowed ad spending included those in financial services such as insurance, mortgages and cryptocurrencies, Alphabet said. Travel and retail advertisers helped Google Search ad revenue. Google’s advertising revenue was $54.48 billion in the third quarter, compared with $53.13 billion last year but came in below analysts’ expectations.The company said total revenue was $69.09 billion in the quarter ended Sept. 30, compared with $65.12 billion a year earlier.Analysts on average expected revenue to be $70.58 billion, according to Refinitiv data. “Google’s earnings miss this quarter proves it’s not immune to the challenges facing the digital advertising industry at large,” said Jesse Cohen, senior analyst at Investing.com.The speed of the slowdown also shocked investors who are “highly sensitive to the changing tide,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.Ad sales on streaming video site YouTube also declined to $7.07 billion, from $7.2 billion in the prior-year quarter. Alphabet’s net income fell to $13.91 billion, or $1.06 per share, from $18.94 billion, or $1.40 per share, a year earlier. Net income missed analyst expectations of $1.25 per share.The company’s operating margin declined to 25% in the third quarter, from 32% in the prior year. The tech giant said in July it would slow the pace of hiring for the rest of the year, saying it was “not immune to economic headwinds.” Porat said the company hired 12,700 people in the third quarter and expects to hire less than half that number in the final quarter.Revenue from Google Cloud rose to $6.9 billion during the quarter, from $5 billion a year earlier. During a conference call with analysts, Alphabet Chief Executive Sundar Pichai said the company would continue to evaluate its projects and make “course corrections” as needed. “Times like this are clarifying,” he said. More

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    Chipotle results top estimates despite low-income customer pullback

    (Reuters) -Chipotle Mexican Grill Inc on Tuesday reported quarterly sales and profits that topped Wall Street expectations, passing on higher burrito prices to wealthier customers even as lower-income consumers ate there less often.Chipotle (NYSE:CMG)’s menu prices were about 13% higher in the quarter versus last year. But companies that can pass those prices on to customers are raising outlooks even as consumer sentiment worsens amid record inflation and fears of a coming recession.On Tuesday, Coca-Cola (NYSE:KO) Co joined rival PepsiCo (NASDAQ:PEP) Inc in lifting its annual forecasts, as customers buy sugary sodas despite multiple rounds of price hikes.The California-based chain’s comparable sales jumped 7.6% in the third quarter ended Sept. 30, while analysts on average had expected a 7.3% rise, according to Refinitiv IBES.Even so, traffic fell about 1% and “we continue to see a widening of trends by income level, with the lower-income consumer further reducing frequency,” said Chief Executive Officer Brian Niccol during a call with investors.”We’ve got to treasure every guest because… it’s going to be a tougher environment for the consumer going forward,” he said.However, customers making over $75,000 a year have increased how often they come, in particular to try out new limited time menu items including Garlic Guajillo Steak, Chief Restaurant Officer Scott Boatwright said in an interview.The company is using special offers in its digital loyalty program to draw customers, including a “free queso” promotion this past weekend for delivery, which led to more transactions, he said. While concerns around demand at U.S. restaurants have been mounting due to decades-high inflation, analysts have noted that sales bounced back in the third quarter after a slowdown in June, as gas prices eased from peaks and grocery costs climbed at a faster pace. The chain is also expanding in Canada and small U.S. towns, driving growth by opening 43 new restaurants during the quarter, including 38 with a so-called “Chipotlane” drive-through option – a format the company said was performing well.Chipotle earned $9.51 per share, topping estimates of $9.21, excluding one-time items. Restaurant level margin also rose to 25.3% from 23.5% a year earlier. More

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    FirstFT: China GDP data show stuttering growth

    The performance of the world’s second-largest economy exceeded market forecasts when gross domestic product figures were finally released on Monday, but the third-quarter data did not come close to allaying concerns about China’s direction after decades of underpinning global growth. Delayed by almost a week without explanation — although a clash with China’s Communist party congress is suspected — the announcement of 3.9 per cent GDP growth came with little fanfare. It was better than the forecast of 3.3 per cent from analysts polled by Bloomberg but still short of China’s full-year target of 5.5 per cent, already set at its lowest in three decades. Other data, also delayed, painted a more nuanced picture of the predicament facing Chinese policymakers. House prices in the secondary market fell by the highest month-on-month rate since 2014, reflecting a property crisis. Growth in retail sales, just 2.5 per cent, missed forecasts as strict Covid lockdowns continued to hold back consumption. “The actual economic recovery momentum is not strong,” said Ting Lu, chief China economist at Nomura. Despite the latest outperformance, he expects growth of just 2.8 per cent in the fourth quarter.Markets news: Chinese stocks popular with big fund managers have been hammered by a significant sell-off following Monday’s GDP data and the confirmation of President Xi Jinping’s third term in power.China’s wealthy: Rich citizens are pulling the trigger on exit plans from their homeland as pessimism builds over the future of the world’s second-largest economy under Xi.

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    Five more stories in the news1. Sunak warns UK facing ‘profound economic crisis’ Rishi Sunak yesterday became Britain’s third prime minister in the space of two months and immediately started to assemble a “unity cabinet”. Sunak, who was invited to form a government by King Charles on Tuesday morning, said he would prioritise “economic stability and confidence” but said: “This will mean difficult decisions to come.”Related read: India’s ruling party has welcomed the ascent of Rishi Sunak as Britain’s first prime minister of Indian origin, with hopes rising for the prospects of a delayed trade deal.2. Uyghur activists sue UK over Xinjiang cotton imports Uyghur rights activists are suing the UK government over its failure to investigate imports of cotton products made using forced labour from Xinjiang. The case, filed by the World Uyghur Congress, is the first of a wave of lawsuits across Europe aimed at blocking imports from Xinjiang, taking advantage of recently tightened laws on companies’ supply chain liability.3. Musk signals Twitter deal on track to close this week Elon Musk has confirmed on a video call with his advisers that he intends to close his $44bn acquisition of Twitter on Friday, according to people briefed about the matter. In another sign that the deal will close by the week’s end, Musk’s lawyers sent paperwork to equity investors in the deal, according to two investors and a person close to the Tesla boss.4. Renminbi hits 2007 low after Xi unveils leadership China’s currency has hit its weakest level against the dollar since 2007 as concerns over President Xi Jinping’s appointment of a harder line leadership team and a struggling economy spread from equities to currency markets. 5. Saudi Arabia willing to pump more oil if needed Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has signalled a willingness to pump more oil if the global energy crisis worsens, while describing this month’s decision by the Opec+ cartel to cut crude supply during a period of high prices as a “mature” decision.The day aheadJapan PPI inflation rate data Japan will publish its September producer price index data today. Producer prices have climbed nearly 10 per cent over the past year. The Bank of Japan, has maintained its ultra-low interest rates — which it is expected to stick to when it meets later this week. (NYT, FT) Have you changed your spending habits due to rising inflation where you live? Tell us in our poll below.

    Biden welcomes Israel’s president US president Joe Biden will host Israeli president Isaac Herzog at the White House a week before Israel holds its November 1 elections. (Politico) German chancellor and French president meet in Paris Olaf Scholz and Emmanuel Macron will meet today aiming to calm rising Franco-German tensions after turmoil between the two nations was laid bare at last week’s EU summit in Brussels, when Macron said Berlin risked “isolating itself” in Europe.Earnings The torrent of corporate earnings continues today with Banco Santander, Barclays, Bloomsbury Publishing, Boeing, Deutsche Bank, Ford Motor Company, Harley-Davidson, Heathrow airport, Heineken, Kraft Heinz Company, Mercedes-Benz, Meta, Puma, Standard Chartered, Telenor, Thales, UniCredit and more set to report. What else we’re readingChina’s limitless presidency means limited diplomacy While Xi Jinping seems unassailable at home, foreign diplomacy will only become more difficult. If all policy ultimately originates with the leader, and if he is infallible, then there can be no admission of mistakes, no apologies, no compromises — in short, no diplomacy, writes Yuan Yang.India’s IT outsourcers crack down on moonlighting employees Fears that staff will share corporate secrets with rivals has led outsourcers to crack down on the practice. The biggest warning has come from Wipro, which claimed it dismissed 300 workers who were caught moonlighting. The company’s chair has called the practice “cheating — plain and simple” even though it is not illegal.Why Sony wants to win over Tesla despite Honda tie-up The success of this deal for Sony will hinge on whether it can convince Tesla as well as a majority of the 14 other carmakers on its future client list that its image sensors are good enough for their fully electric and self-driving vehicles, writes Kana Inagaki.The US legal move letting corporations off the hook 3M, the conglomerate, is part of a recent trend whereby US corporations make use of the bankruptcy court not because they are insolvent but to manage tort claims. The manoeuvre is known as the Texas two-step and seeks to exploit loopholes in the legal system but judges are beginning to crack down.‘Clunky’ Bidenomics proves a tough sell Under the Democrats’ watch, the US economic recovery has generated 10mn jobs and lowered unemployment to 3.5 per cent since January 2021. But months of unrelentingly high inflation have made “Bidenomics” a difficult sell on the campaign trail. StyleThe problem with men’s trousers is that they rarely fit. FT’s Rob Armstrong shares his top tips and the three deadly sins to avoid in the search for pants that are both comfortable and look good.

    Joaquin Phoenix wears unflattering brown trousers on the set of Spike Jonze’s ‘Her’ © Capital Pictures More

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    For Disabled Workers, a Tight Labor Market Opens New Doors

    With Covid prompting more employers to consider remote arrangements, employment has soared among adults with disabilities.The strong late-pandemic labor market is giving a lift to a group often left on the margins of the economy: workers with disabilities.Employers, desperate for workers, are reconsidering job requirements, overhauling hiring processes and working with nonprofit groups to recruit candidates they might once have overlooked. At the same time, companies’ newfound openness to remote work has led to opportunities for people whose disabilities make in-person work — and the taxing daily commute it requires — difficult or impossible.As a result, the share of disabled adults who are working has soared in the past two years, far surpassing its prepandemic level and outpacing gains among people without disabilities.

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    Share employed, change since Jan. 2020
    Note: Includes workers between 18 and 64 years old. Data is not seasonally adjusted.Source: Current Population Survey, via IPUMSBy The New York TimesIn interviews and surveys, people with disabilities report that they are getting not only more job offers, but better ones, with higher pay, more flexibility and more openness to providing accommodations that once would have required a fight, if they were offered at all.“The new world we live in has opened the door a little bit more,” said Gene Boes, president and chief executive of the Northwest Center, a Seattle organization that helps people with disabilities become more independent. “The doors are opening wider because there’s just more demand for labor.”Samir Patel, who lives in the Seattle area, has a college degree and certifications in accounting. But he also has autism spectrum disorder, which has made it difficult for him to find steady work. He has spent most of his career in temporary jobs found through staffing agencies. His longest job lasted a little over a year; many lasted only a few months.This summer, however, Mr. Patel, 42, got a full-time, permanent job as an accountant for a local nonprofit group. The job brought a 30 percent raise, along with retirement benefits, more predictable hours and other perks. Now he is thinking about buying a home, traveling and dating — steps that seemed impossible without the stability of a steady job.“It’s a boost in confidence,” he said. “There were times when I felt like I was behind.”Mr. Patel, whose disability affects his speech and can make conversation difficult, worked with an employment coach at the Northwest Center to help him request accommodations both during the interview process and once he started the job. And while Mr. Patel usually prefers to work in the office, his new employer also allows him to work remotely when he needs to — a big help on days when he finds the sensory overload of the office overwhelming.“If I have my bad days, I just pick up the laptop and work from home,” he said.Workers with disabilities have long seen their fortunes ebb and flow with the economy. Federal law prohibits most employers from discriminating against people with disabilities, and it requires them to make reasonable accommodations. But research has found that discrimination remains common: One 2017 study found that job applications that disclosed a disability were 26 percent less likely to receive interest from prospective employers. And even when they can find jobs, workers with disabilities frequently encounter barriers to success, from bathroom doors they cannot open without assistance to hostile co-workers.The State of Jobs in the United StatesEconomists have been surprised by recent strength in the labor market, as the Federal Reserve tries to engineer a slowdown and tame inflation.September Jobs Report: Job growth eased slightly in September but remained robust, indicating that the economy was maintaining momentum despite higher interest rates.A Cooling Market?: Unemployment is low and hiring is strong, but there are signs that the red-hot labor market may be coming off its boiling point.Factory Jobs: American manufacturers have now added enough jobs to regain all that they shed during the pandemic — and then some.Missing Workers: The labor market appears hot, but the supply of labor has fallen short, holding back the economy. Here is why.Workers with disabilities — like other groups that face obstacles to employment, such as those with criminal records — tend to benefit disproportionately from strong job markets, when employers have more of an incentive to seek out untapped pools of talent. But when recessions hit, those opportunities quickly dry up.“We have a last-in, first-out labor market, and disabled people are often among the last in and the first out,” said Adam Ozimek, chief economist at the Economic Innovation Group, a Washington research organization.Remote work, however, has the potential to break that cycle, at least for some workers. In a new study, Mr. Ozimek found that employment had risen for workers with disabilities across industries as the labor market improved, consistent with the usual pattern. But it has improved especially rapidly in industries and occupations where remote work is more common. And many economists believe that the shift toward remote work, unlike the red-hot labor market, is likely to prove lasting.More than 35 percent of disabled Americans ages 18 to 64 had jobs in September. That was up from 31 percent just before the pandemic and is a record in the 15 years the government has kept track. Among adults without disabilities, 78 percent had jobs, but their employment rates have only just returned to the level before the pandemic.“Disabled adults have seen employment rates recover much faster,” Mr. Ozimek said. “That’s good news, and it’s important to understand whether that’s a temporary thing or a permanent thing. And my conclusion is that not only is it a permanent thing, but it’s going to improve.”Before the pandemic, Kathryn Wiltz repeatedly asked her employer to let her work from home because of her disability, a chronic autoimmune disorder whose symptoms include pain and severe fatigue. Her requests were denied.Ms. Wiltz’s new job allows her to work from home permanently.Sarah Rice for The New York TimesWhen the pandemic hit, however, the hospital in Grand Rapids, Mich., where Ms. Wiltz worked in the medical billing department sent her home along with many of her colleagues. Last month, she started a job with a new employer, an insurance company, in which she will be permanently able to work remotely.Being able to work from home was a high priority for Ms. Wiltz, 31, because the treatments she receives suppress her immune system, leaving her vulnerable to the coronavirus. And even if that risk subsides, she said, she finds in-person work taxing: Getting ready for work, commuting to the office and interacting with colleagues all drain energy reserves that are thin to begin with. As she struggled through one particularly difficult day recently, she said, she reflected on how hard it would have been to need to go into the office.“It would have been almost impossible,” she said. “I would have pushed myself and I would have pushed my body, and there’s a very real possibility that I would have ended up in the hospital.”There are also subtler benefits. Ms. Wiltz can get the monthly drug infusions she receives to treat her disorder during her lunch break, rather than taking time off work. She can turn down the lights to stave off migraines. She doesn’t have to worry that her colleagues are staring at her and wondering what is wrong. All of that, she said, makes her a more productive employee.“It makes me a lot more comfortable and able to think more clearly and do a better job anyway,” she said.The sudden embrace of remote work during the pandemic was met with some exasperation from some disability-rights leaders, who had spent years trying, mostly without success, to persuade employers to offer more flexibility to their employees.“Remote work and remote-work options are something that our community has been advocating for for decades, and it’s a little frustrating that for decades corporate America was saying it’s too complicated, we’ll lose productivity, and now suddenly it’s like, sure, let’s do it,” said Charles-Edouard Catherine, director of corporate and government relations for the National Organization on Disability.Still, he said the shift is a welcome one. For Mr. Catherine, who is blind, not needing to commute to work means not coming home with cuts on his forehead and bruises on his leg. And for people with more serious mobility limitations, remote work is the only option.Many employers are now scaling back remote work and are encouraging or requiring employees to return to the office. But experts expect remote and hybrid work to remain much more common and more widely accepted than it was before the pandemic. That may make it easier for disabled employees to continue to work remotely.The pandemic may also reshape the legal landscape. In the past, employers often resisted offering remote work as an accommodation to disabled workers, and judges rarely required them to do so. But that may change now that so many companies were able to adapt to remote work in 2020, said Arlene S. Kanter, director of the Disability Law and Policy Program at the Syracuse University law school.“If other people can show that they can perform their work well at home, as they did during Covid, then people with disabilities, as a matter of accommodation, shouldn’t be denied that right,” Ms. Kanter said.Ms. Kanter and other experts caution that not all people with disabilities want to work remotely. And many jobs cannot be done from home. A disproportionate share of workers with disabilities are employed in retail and other industries where remote work is uncommon. Despite recent gains, people with disabilities are still far less likely to have jobs, and more likely to live in poverty, than people without them.“When we say it’s historically high, that’s absolutely true, but we don’t want to send the wrong message and give ourselves a pat on the back,” Mr. Catherine said. “Because we’re still twice as likely to be unemployed and we’re still underpaid when we’re lucky enough to be employed.”Disability issues are likely to become more prominent in coming years because the pandemic has left potentially millions of adults dealing with a disability. A recent study by the Federal Reserve Bank of New York estimated that close to two million working-age Americans had become disabled because of long Covid.Employers that don’t find ways to accommodate workers with disabilities — whether through remote work or other adjustments — are going to continue to struggle to find employees, said Mason Ameri, a Rutgers University business professor who studies disability.“Employers have to shape up,” he said. “Employers have to pivot. Otherwise this labor shortage may be more permanent.” More

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    Uyghur activists sue UK government over Xinjiang cotton imports

    Uyghur rights activists are suing the UK government over its failure to investigate imports of cotton products made using forced labour from Xinjiang, in a move that will increase pressure on companies sourcing from the Chinese region.The hearing for the case, which was filed by the World Uyghur Congress (WUC), began in London’s High Court on Tuesday. It is the first of a wave of lawsuits across Europe aimed at blocking imports from Xinjiang, taking advantage of recently tightened laws on companies’ supply chain liability.The US implemented a ban on imports from Xinjiang this year, while the UN said in September that China’s abuses against more than 1mn detained Uyghurs and other Muslims in the region “may constitute . . . crimes against humanity”.Beijing denies such accusations, saying its policy in Xinjiang is aimed at countering terrorism and boosting economic development.Dearbhla Minogue, a lawyer from the Global Legal Action Network involved in preparing the case, said “many UK companies know or suspect they are importing forced-labour cotton”.She added that the hearing would have “given them cause to reconsider the risks involved, which could include . . . criminal prosecution, fines and even prison for company officials”.WUC president Dolkun Isa said the hearing “could set an important precedent for other countries” and vowed to continue “challenging countries and companies invested in Xinjiang”.The WUC, together with a broader coalition of charities and law firms, has filed a similar case against the Irish government. They plan to launch further cases across Europe after the passage of an EU directive on corporate due diligence, which has proposed a ban on goods made using forced labour.In court on Tuesday, lawyers for the claimants argued there was already overwhelming evidence that Xinjiang prison-processed cotton was present in UK supply chains.“There are 570,000 forced cotton-pickers in Xinjiang. 80 per cent of China’s cotton comes from Xinjiang. China provides one-quarter of the world’s cotton,” said one lawyer. As a result, the claimants’ lawyers said, the UK government should have already confiscated cotton imports from Xinjiang and begun criminal investigations under the Proceeds of Crime Act. The act holds companies liable for benefiting from any deeds that would constitute a crime in the UK.“There is little dispute to the problem and the extent of the problem [in Xinjiang],” said Mr Justice Ian Dove. “The issue before the court is whether there are tools in the kit box . . . to be brought to bear on the problem.”Lawyers for the British government agreed in principle that the Proceeds of Crime Act applied to companies importing goods from Xinjiang, but said there was insufficient evidence to start an investigation or to seize goods.They said the National Crime Agency continued “to assess information and intelligence relating to . . . the Xinjiang Uyghur Autonomous Region, including in relation to the cotton industry” and that “should circumstances change, it may commence an investigation”. More