WSJ : Novartis Says Closely Watched Cholesterol Study Failed to Meet Goal The Ph

Novartis Says Closely Watched Cholesterol Study Failed to Meet Goal
The Phase 3 study found a drug didn’t reduce the risk of cardiovascular events such as heart attacks and strokes

  • A Phase 3 study found a Novartis cholesterol drug called pelacarsen failed to reduce the risk of cardiovascular events like heart attacks and strokes.
  • The drug did succeed in lowering levels of lipoprotein (a), a fatty particle in the blood known as Lp(a).
  • Following the trial results, shares of Novartis fell more than 4% in after-hours trading and Ionis Pharmaceuticals shares dropped more than 10%.

A highly anticipated cholesterol drug from Novartis NOVN -1.33%decrease; down pointing triangle failed to reduce the risk of severe cardiovascular outcomes in a Phase 3 study, dealing a blow to the company and others exploring a new approach to prevent cardiovascular disease.

The company said that the drug didn’t reduce the risk of cardiovascular events—including deaths, heart attacks and strokes—compared with a placebo. But it did succeed in lowering levels of lipoprotein(a), a fatty particle in the blood known as Lp(a), Novartis said.

The results advance “scientific understanding of the relationship between Lp(a) lowering and cardiovascular outcomes and may help inform future approaches to cardiovascular risk management,” said Shreeram Aradhye, the Swiss drugmaker’s chief medical officer.

The hope had been that the drug—called pelacarsen—would take on an insidious cause of heart attacks and strokes that has eluded treatment for decades. Tens of millions of people in the U.S. have elevated Lp(a), an inherited and largely hidden driver of heart disease.

Travis DeMaria, a real-estate broker from Ontario, Canada, who has high levels of Lp(a) had been closely following the trial. DeMaria, who is on a low-dose statin and other medications, has taken steps to control other risk factors such as his LDL cholesterol since he learned about his elevated Lp(a) levels.

“There is a lot more to learn about Lp(a) and how it affects the body,” said DeMaria, 37 years old.

For years, scientists believed that lowering Lp(a), a cousin of LDL cholesterol, would reduce plaque buildup and lead to fewer heart attacks and strokes. This trial was a major test of that hypothesis.

“There’s been a lot of evidence that lipoprotein(a) might be a missing link,” said Kushal Kadakia, a physician at Massachusetts General who studies cardiovascular drugs. “It’s really surprising and a setback for the field to see a result like this.”

Pelacarsen was initially discovered and developed by Ionis Pharmaceuticals. In 2019, Novartis exercised an option to license development and commercialization rights for the drug.

Amgen and Eli Lilly are developing similar therapies but use a different technology that aims to silence the gene producing Lp(a). Novartis and Ionis’s product is based on technology blocking the signal that tells the liver to produce Lp(a).

Shares of Novartis fell more than 4% in after-hours trading on Friday. Ionis shares fell more than 10%.

Advertisement


Novartis didn’t share more details on the trial outcomes but plans to present the data at a coming medical conference.

WSJ : Time Is No Longer on Iran’s Side in the Battle of the Blockades The U.S. i

Time Is No Longer on Iran’s Side in the Battle of the Blockades
The U.S. is helping Gulf states move significant amounts of oil out of the region while thwarting Tehran’s shipments

A U.S. naval blockade has prevented Iran from shipping any oil from the Persian Gulf since July.
The U.S. has helped Gulf Arab states move significant amounts of crude through the Strait of Hormuz despite Iranian drone and missile attacks.
Global crude oil prices remain below $100 a barrel on international markets, keeping prices below the critical threshold for the world economy.

DUBAI—By squeezing the Strait of Hormuz, both the U.S. and Iran expected to outlast their foe, believing time would work in their favor.

Now, it looks like the trend is moving against Tehran.

The U.S. naval blockade has prevented Iran from shipping any oil from the Persian Gulf since July. At the same time, despite Iranian drone and missile attacks, Washington has been able to assist Gulf Arab states in moving significant amounts of their crude through the waterway, keeping global oil prices from surging above critical levels.

“The Iranian blockade is more leaky than the U.S. blockade,” said Samir Madani, co-founder of the maritime intelligence firm TankerTrackers.com. “The Iranians just aren’t able to shut it all down.”

The strategic question of whether time will eventually work in favor of Washington—or the Tehran regime—has yet to be settled. Iran retains ways of escalating what has now become a protracted conflict, raising costs for the U.S. and its allies. The U.S. military’s ability to maintain the naval blockade for many more months is also uncertain.

But now it is clear that Tehran’s calculation six months ago, as it shut down the Strait of Hormuz and bottled up one-fifth of the world’s crude oil supply, proved erroneous. The move didn’t trigger a worldwide economic crisis or force President Trump to end the war on Iranian terms.

Yet, Trump’s blockade of Iranian ports, imposed in April and reimposed in July, after a short-lived memorandum on reopening the waterway collapsed, hasn’t changed Iran’s behavior either. Despite growing economic disruption, the blockade didn’t spur a popular uprising against the Islamic Republic—and didn’t convince Tehran to reopen the strait to allow free navigation.

“The assumptions of both sides have not come true, and both of them also do not have an exit,” said Vali Nasr, a professor of Middle East studies at Johns Hopkins University and a former State Department official who has been involved in informal contacts with Iran.

For now, however, Iran’s leverage over the Strait of Hormuz is slowly but surely being eroded by the U.S. military campaign in the region. Crude oil prices remain below $100 a barrel on international markets, elevated but well below the critical threshold for the global economy. In part, this was due to China drawing on domestic reserves and reducing imports.

It isn’t just about oil, of course. Shipments of liquefied natural gas, fertilizers and other commodities also remain stuck in the Gulf, choking the economies of Qatar, Kuwait, Iraq and Bahrain—nations that don’t have alternative sea outlets.

Time isn’t benefiting either side, said a senior Gulf Arab official, but the clock is ticking more for the Iranians because they are under enormous economic strain. The American clock is more about politics and public opinion than economic pain, he said.

TankerTrackers.com estimated earlier this week that on average about 5 million barrels a day of crude oil, almost none of it Iranian, exited the Persian Gulf via the Strait of Hormuz over the previous 28 days, along with roughly 2.5 million barrels via oil ports on the Gulf of Oman, such as Fujairah in the United Arab Emirates. These exports represent more than 40% of the region’s prewar flow of oil.

Iran’s continuing attacks on vessels are aimed at maintaining its control over the Strait of Hormuz, triggering exchanges of missile and drone strikes that, so far, remain carefully calibrated. Iran has struck tankers at sea and U.S. bases and military facilities in Bahrain, Kuwait and Jordan—but has refrained from larger-scale attacks on Israel and the Gulf’s biggest economies, Saudi Arabia and the U.A.E.

The U.S., meanwhile, hasn’t bombed major cities in Iran or targeted its military and political leadership. This reprieve has allowed Iran to repair and rebuild its military industries, including those involved in missile production, that were targeted by U.S. and Israeli strikes during the 40 days of full-scale war between February and April.

Iran’s Gulf neighbors hope that the relative restraint will persist on both sides, paving the way to a deal down the road. “For us here in the region, while we prefer a stalemate over war, we prefer a permanent cessation of hostilities over a stalemate,” the senior Gulf official said.

Iranian leaders, however, have long warned that they can’t allow a situation in which Arab Gulf states export their oil while Iran’s trade is strangled. When the U.S. blockade was first imposed by Trump, Iranian officials estimated they could hold out for five months or so without catastrophic repercussions for the economy. That point is now approaching fast, forcing a strategic decision on Tehran.

“One option for them is to cave in. The other is to escalate in a much bigger way, to try to fight their way out of the corner,” said Nasr, the professor. Such an escalation could be a more likely choice, he added: “Their calculation is that even if they have to go back to the negotiating table and even if they have to make concessions, they would have to make fewer concessions if they put more pressure militarily.”

The American political calendar is also a major factor in Iranian thinking, pointing to likely escalation. A pivotal moment in the early history of the Islamic Republic was a decision to manipulate the 1980 U.S. presidential election by withholding the release of American hostages until after Ronald Reagan beat Jimmy Carter. The Reagan administration later secretly supplied weapons to Iran.

Today, Iranian leaders are acutely aware of how unpopular the war is in the U.S., in part because it has led to an increase in gas prices at the pump. And they have little desire to reward Trump, who ordered the assassination of much of Iran’s political and military leadership in February, with a compromise on the Strait of Hormuz that would lower the price of gas just before the U.S. midterm elections in November.

“As the clock starts ticking, the viewpoint in Tehran is: ‘Why on earth would we relieve any pressure on Trump to make concessions? Let’s make him feel pain at the polls,’ ” said Ellie Geranmayeh, Iran expert at the European Council on Foreign Relations.

Internal political pressures, to be sure, also exist in Iran. The country’s civilian leaders, such as President Masoud Pezeshkian and parliamentary speaker Mohammad Bagher Ghalibaf, who led the June negotiations with the U.S., have called for a return to the talks, pointing to the deteriorating state of the Iranian economy.

The country’s rial currency is losing value fast, inflation is rising, and gasoline shortages have become commonplace. “Some say sanctions have no effect at all. To those people, I really don’t know what to say,” Pezeshkian said in a recent TV interview, noting that Iran’s trade has fallen between 25% and 35%.

Real power in Tehran, however, appears to be in the hands of commanders of the Islamic Revolutionary Guard Corps, especially as the country’s new official supreme leader, Mojtaba Khamenei, remains in hiding after injuries sustained in the U.S. strike that killed his father, Ali Khamenei, in February. These commanders, such as the new Supreme National Security Council chief Mohsen Rezaei and Revolutionary Guard chief Ahmad Vahidi, see the government as conducting a war of survival and are unlikely to be swayed by economic pain felt by the country’s citizens.

In some ways, inflation and the resulting impoverishment of Iran’s middle class could be a policy choice to create a much more militarized and centralized society geared for war—and to prevent a return to the kind of protests that pushed Iran to the brink of revolution in January.

“Iran’s economy is weakening. But a weakening economy can still be part of a deliberate strategy by some figures in the Iranian leadership to retain staying power in this conflict,” said Esfandyar Batmanghelidj, chief executive of the London-based Bourse & Bazaar Foundation think tank. “They maintain an incredible repressive capacity, and they understand that as the economic situation gets worse, ordinary people lose their capacity to mobilize in a massive way.”

If recent history has taught anything about developments inside Iran, it is to be wary of predictions, added Norman Roule, who served as the principal U.S. intelligence community official on Iran matters from 2008 to 2017.

“Those who believe the regime is too strong, too deeply embedded in Iranian society, or too well protected by pervasive domestic security institutions to fail, should recall how similar judgments were once made about Mubarak, Ben Ali, Ceaușescu, and even the Soviet Union,” he said. “Anyone who claims to know with certainty whether, or when, the Islamic Republic will collapse or that it will endure should first be asked to demonstrate their skills as a prophet by sharing next week’s lottery numbers.”

FT : Oliver Blume’s VW jobs victory leaves power questions untouched Carmaker’s

Oliver Blume’s VW jobs victory leaves power questions untouched
Carmaker’s slimdown deal is a coup for its boss but governance issues have been kicked down the road

Volkswagen’s breakthrough deal with workers has handed chief executive Oliver Blume a hard-fought endorsement of his fight to preserve the group’s industrial relevance.

Shares in Germany’s largest carmaker briefly jumped almost 9 per cent on Friday after its supervisory board unanimously approved a radical plan to slim the group through 50,000 job cuts and opened the door to ending new vehicle production at four German plants. 

Days earlier, the prospects for a deal had seemed bleak as marathon talks with unions turned acrimonious. VW even considered bypassing the supervisory board through an extraordinary shareholder meeting, according to people close to the company, while some analysts had predicted Blume could be replaced had he failed to secure an agreement.

But for long-term investors, more than jobs and plants were at stake. The talks were a test of whether the group could break from a governance system in which managers, workers, politicians and family shareholders had repeatedly hampered efforts to improve competitiveness.

“This shows that there is a genuine willingness to reform at Volkswagen,” said Ingo Speich, head of corporate governance at Deka, Germany’s second-largest asset manager. 

He cautioned, however, that implementation remained a “momentous challenge” and could not be taken for granted. “We have repeatedly seen in the past that decisions were taken by the supervisory board, only for the situation to look different again three months later.”

VW, a stalwart of the German economy with roughly 620,000 workers worldwide, has come under intense pressure since the pandemic from shrinking sales in China and lacklustre demand in Europe. The day the group agreed to the job cuts, Xiaomi announced its entry into Germany and other European markets, underscoring the rising threat of Chinese rivals.

Blume told analysts on Friday that discussions with unions would begin immediately to finalise the job cuts, half of which are expected to be in Germany. The measures will bring the total headcount reductions since 2024 — when the group struck a deal with unions in which compulsory redundancies were ruled out until 2030 — to more than 100,000. 

UBS estimated that the restructuring costs could reach up to €7bn, while Bank of America forecast up to €10bn in gross charges. 

The deal implies Volkswagen will cut global production capacity by a quarter from 12mn vehicles pre-pandemic to 9mn a year, roughly in line with sales volumes since the pandemic. About half the reduction will come in Europe and the rest in China. 

Unions and Lower Saxony, VW’s second-largest shareholder and home to many of its factories, stressed that the deal did not involve immediate plant closures. 

Blume said no new models would be allocated to plants in Emden, Zwickau, Hanover and Neckarsulm beyond 2031, while alternative uses would be considered for the facilities, including defence and production of humanoid robots.

Lower Saxony’s prime minister Olaf Lies suggested on Friday that plants outside Volkswagen’s home country should bear the brunt of the cuts.

“If we have to reduce capacity in Europe, the answer cannot be that we reduce that capacity in Germany,” he said, adding that it was “currently unthinkable” for vehicle production to end in Emden or Hanover, which are both in his state.

However, UBS analyst Patrick Hummel said there was “not necessarily an obvious use case for all these plants. I expect at some point we will see some closure decisions.”

Hummel said the latest measures would help “safeguard” VW’s profitability but questioned whether the group could reach its 2030 target of a 9 per cent operating margin as Chinese groups gain market share around the world.

Moritz Kronenberger, portfolio manager at Union Investment, said the “severe cuts” had been necessary to avoid underutilised plants creating a “financially disastrous situation” for Europe’s largest carmaker, “potentially pushing its margin into negative territory”.

He added that the agreement had also shown that “employees and management are, after all, pulling in the same direction. The ball is now entirely in the management board’s court. There are no excuses left.”

Yet one of the most contentious parts of Blume’s revival plan — splitting the core Volkswagen brand and the group’s components business into separate entities — appears to be unresolved.

Such a move could dilute Lower Saxony’s influence and overhaul a governance structure built around co-determination between unions, employers and the group’s owners.

The Porsche-Piëch family holds 53 per cent of the voting rights, while Lower Saxony has 20 per cent. Under German law, workers have 10 representatives on the 20-person supervisory board.

Lies said a potential carve-out, which he opposes, was “discussed for a very long time” at the supervisory board meeting but ultimately pushed back, with management instead instructed to work on changes to speed up decision-making.  

Horst Schneider, Bank of America analyst, wrote in a note that “the Porsche family appears to have compromised on an immediate change to VW’s legal and governance structure . . . The issue is not off the table but may be decided later.”

Hendrik Schmidt, head of stewardship at Germany’s largest asset manager DWS, said Thursday’s agreement “would probably not have been possible” had the supervisory board not postponed the spin-off plan.

“The fact that the Gordian knot in Wolfsburg appears to have been cut will initially come as a relief to investors. In terms of governance, however, there has been no progress,” Schmidt added.

Christian Strenger, professor of corporate governance at Frankfurt School of Finance & Management, said the deterioration in VW’s business since the 2024 restructuring meant the decision to “cut significantly further now” had been inevitable.

“Volkswagen still spends far too much time dealing with internal problems that should have been resolved long ago,” he added. “That prevents management from moving the company forward.”

FT : Anthropic close to awarding Morgan Stanley and Goldman Sachs top roles in

Anthropic close to awarding Morgan Stanley and Goldman Sachs top roles in $2tn IPO
AI giant on track to unveil paperwork underpinning its blockbuster Wall Street debut as soon as next week

Anthropic is close to awarding Morgan Stanley and Goldman Sachs the most coveted roles in its blockbuster Wall Street debut, as the AI behemoth prepares to unveil its initial public offering paperwork as soon as next week.

Morgan Stanley was in pole position to secure the prized “lead left” role, according to four people familiar with the matter. Goldman is expected to act as the IPO’s stabilisation agent, a lucrative appointment overseeing the crucial first sessions of trading when Anthropic lists.

Morgan Stanley had in recent weeks led discussions with potential Anthropic investors about the price at which it will float its shares, two of the people said. They added that the selection of Morgan Stanley as lead left — the strategic adviser on the deal — was not finalised and could still change.

The AI lab behind the Claude chatbot is expected to publicly file its IPO prospectus as soon as next week, several people said, firing the starting gun on an offering that will test investors’ appetite for fast-growing AI ventures months after SpaceX raised a record-breaking $86bn in its listing at a $1.78tn valuation. The people cautioned that the timing was not yet certain and could still slip.

Half a dozen Anthropic investors have previously said they expected the group to float at a valuation of $2tn or more, the FT previously reported. If so, early investors are set to unlock tens of billions of dollars in gains.

JPMorgan, Citigroup and Barclays are also among the banks expected to get leading roles on the Anthropic deal after providing the group with debt financing.

Goldman won the leading role on SpaceX’s offering in June, with Morgan Stanley named as the deal’s stabilisation agent. Both banks took $100mn of the half-billion-dollar fee pot shared between the more than 20 lenders who worked on the SpaceX deal.

Morgan Stanley and Goldman will also court Anthropic’s rival OpenAI, which is expected to go public early next year. The lead left role confers control over valuation discussions and decisions around which hedge funds, institutional investors and sovereign wealth funds receive the largest allocations of a company’s stock. It is also a source of bragging rights on Wall Street.

Anthropic has seen its fortunes rise sharply in the past year, and investors expect it will more than double its current valuation of more than $900bn, surpassing SpaceX to become the biggest IPO of all time.

Anthropic and Goldman declined to comment. Morgan Stanley did not immediately respond to a request for comment.

People familiar with the matter said Anthropic was preparing to hold its roadshow, the rush of multi-city meetings between executives and large investors, near the end of September.

The timeline, if it holds, would put Anthropic on pace to begin trading in New York in late September or early October. Anthropic’s performance will be a bellwether at a time when shares in AI stocks have been highly volatile.

The group’s revenue in July undershot the most bullish expectations from investors, who projected annualised sales would cross $80bn. Instead, Anthropic told shareholders in August that its July revenue hit a $65bn annualised pace, up from $47bn in May.

OpenAI, Anthropic’s biggest competitor, has also enjoyed a resurgence over the past few months — the ChatGPT maker this week released its latest AI model, which it called “the world’s most intelligent” — which some warn could push Anthropic’s valuation lower.

FT : ‘RAMageddon’ hits consumer electronics as AI drains chip supply Prices for

‘RAMageddon’ hits consumer electronics as AI drains chip supply
Prices for phones, laptops and gaming consoles already up and retailers forecasting further increases

Consumers should expect higher prices on everyday electronics for the foreseeable future, as the AI boom reverses the trend of ever-cheaper and more powerful electronic goods.

For decades consumers have enjoyed progressively better electronic devices at lower prices.

The AI investment rush has driven up the cost of memory chips and other components, consequently “bucking that trend” said Harvir Dhillon, lead economist at the British Retail Consortium. Apple and other major manufacturers have already put up prices despite the probable hit to sales volumes.

“Literally everything” in the consumer electronics category is affected by the shortages, said MS Hwang, research director at the market research firm Counterpoint. 

The shortages include dynamic random-access memory (DRam) chips, which are crucial components for smartphones, personal computers and video game consoles. Hyperscalers’ demand for DRam has created severe shortages and soaring costs for electronics manufacturers and retailers, analysts say.

Seeing this trend, equity investors put billions into chip designers and manufacturers such as SanDisk and SK Hynix, whose share prices rose by 1,000 per cent or more in the year to July. More recently they have sold off on fears the rush could be shortlived as tech companies slow down buying.

Despite the more recent scepticism, consumers will still pay the price as the cost of everyday electronics surges. Manufacturers and retailers are raising prices by up to 20 per cent, according to the market research firm International Data Corporation.

So steep are cost climbs that users on Reddit’s PC and gaming forums have taken to referring to the memory chip crunch as “RAMageddon” and the “RAMpocalypse”. 

DRam prices have increased fivefold over the past year, and contract prices are up by 10 to 20 per cent quarter on quarter, according to Counterpoint.

Chipmakers have stopped or slowed production of the lower-end chips found in consumer electronics as they focus production capacity on the high-bandwidth memory chips used for AI.

While the shortages are felt most keenly in DRam supply, other semiconductors, including graphics processing units and central processing units, are also being squeezed.


Since the 1970s electronics have become cheaper yet more powerful, owing to progress in semiconductor technology. Moore’s Law, the observation that the number of transistors on a microchip doubles about every two years, meant that computers became more powerful at a cheaper cost. 


This is now reversing. In June Apple raised the prices of some of its laptops and tablets by up to $300 for high-end models. The company forecast weaker sales growth owing to constraints in the supply of memory chips and other components. 

The gaming sector has been particularly hard hit. Console manufacturers such as Microsoft, Sony and Nintendo struggle to absorb costs as hardware is typically sold at a loss, with profits made from sales of gaming software and subscriptions.

Even with this model, they have had to put prices up by as much as $150 for a single console in recent months. Nintendo reported unexpected costs of ¥100bn, equal to about 30 per cent of its annual operating profit, in May, citing “rising component costs, particularly for memory”. Shares in Nintendo have fallen by about a quarter in the year to date.

Valve, operator of the Steam gaming platform, has slowed production of its handheld Steam Deck device and also put up the price of a new console to cover added chip costs.

Mobile phone prices are also rising.

Hwang said the price of DRam used in smartphones had gone up by $250 over the past year, which he expected to be passed on to the price of mobile handsets this autumn.

Price rises threaten to slash sales. If a Sony or Microsoft console were to launch at a price of $1,000 and over, compared with current prices around $700, it could see up to a 43 per cent sales volume decline over five years, according to Ampere Analysis research.

Alex Baldock, speaking in July before he stepped down as chief executive of Currys, said that the British electrical goods retailer’s stores had “good security of supply in computing and mobile phones to at least September”. But, he added, price rises were inevitable. Baldock declined to comment on the scale of upcoming cost increases.

Companies are lowering the specifications of products to get ahead of the component shortage. 

Justin Hotard, chief executive of Nokia, told the FT that it was redesigning some of its products to reduce the memory component. Hotard said the chip shortage was affecting Nokia’s mobile, broadband and internet-routing equipment. 

He described the chip crunch as the “new normal going forward for the foreseeable future” and expected shortages to last through to 2027.

Console makers will be “forced to innovate” to get to the market at a lower price, said Piers Harding-Rolls, head of games research at Ampere Analysis. There is renewed talk of in-game advertising to subsidise hardware, as well as new types of subscription bundles, he added.

Analysts expect that consumer electronics manufacturers will also raise the specification of their products to match the higher price tag. But the premiumisation strategy is not a viable option for budget electronics retailers.

Chinese electronics companies that sell cheaper goods, including Xiaomi, Oppo and Vivo, are “really suffering”, said Hwang at Counterpoint, as their customers cannot easily absorb price hikes.

The semiconductor industry is scrambling to build out new factories, or fabs, to meet the new demand. 

“Our companies are working tirelessly to try to address this,” said John Neuffer, chief executive and president of the Semiconductor Industry Association. He added that new factories take years to build, however. “This is not turning a switch on and suddenly we get the chips rolling off the line,” he said.

Hwang advised that consumers with an urgent need for a new electronic device should purchase it as soon as possible. Otherwise, it is best to wait as companies will update product specifications to match the higher prices. 

Dhillon said that retail sales volumes of computers and telecoms products rose about 40 per cent in the three months to June compared with the same period a year earlier. He attributed this in part to “savvy consumers trying to get ahead of price increases”.

However, consumers will buy fewer new devices and hold on to their current devices longer as prices soar ever higher, analysts say.

The uplift in prices is anticipated to persist for as long as the AI supercycle lasts. “I think we’re still in the sort of early stages [of price increases],” said Dhillon, adding that “there’s a lot more to come in the pipeline”.

FT : Deep powder, star coaches and a resort like no other — the magic of ‘summer

Deep powder, star coaches and a resort like no other — the magic of ‘summer’ in Portillo
As Europe and the US sweltered, the Chilean ski area was getting its biggest snowfalls in 50 years — and it’s not too late to go

No Mediterranean for me this summer — instead, high in the Andes in the middle of August, I skied along an old railway track towards an abandoned tunnel. Snowdrifts had almost filled the entrance, leaving only a dark sliver of open space beneath the cracked brickwork arch. I had to bend my head to get in, then slide down a ramp of snow to reach the dry tunnel floor.

Waiting inside with a headtorch was Mike Douglas, a Canadian often called the “godfather of freeskiing” — one of five celebrated coaches here in Portillo, Chile, to lead an annual week-long trip known as the Superstars Camp. After 20 years of visits to the area, he knew every skiable line on its mountains, including one only accessible via this tunnel.

Mike ushered us forward, a six-strong group of skiers, our brightly coloured jackets incongruous in the dark, rough-walled tunnel. Icicles dangled from cracks in the ceiling, sparkling in the torchlight. We tramped on, taking care not to trip on the old rails and sleepers, stepping over a long-discarded pair of overalls, until we eventually came to a ventilation shaft, half-collapsed and almost impossible to spot if you didn’t know it was there.

We clambered up into it, trying not to rub against rocks still covered in soot from the steam trains that once plied this route, the Transandine Railway. From 1910 until 1984, it carried passengers and freight between Santiago in Chile and Mendoza in Argentina but it struggled commercially and shut down after a series of avalanches blocked the line.

Finally, we saw light ahead and emerged blinking from the shaft into what seemed like the back of a snow-filled cave, and beyond it the secret slope, sparkling in the afternoon sun. It was a short, steep descent, covered in buttery snow and dispatched in two breathless, thrilling minutes. At the bottom we looked back up — the exit from the shaft now invisible, our tracks seeming to start, as if by magic, in the middle of an inaccessible slope bordered by rocks.

I’d been skiing for 40 years and had never done a run like that. But then, for me, this was a week of firsts — not least my first time skiing in South America and first time skiing in August — in a ski resort like no other.

In fact, Portillo isn’t a ski resort in the conventional sense: rather than a town, it is a single hotel, painted bright yellow and perched, like the Ark washed up on Ararat, on a snowy shoulder 2,880 metres above sea level. It stands only 5km as the condor soars from the pass that marks the border with Argentina and 23km from Aconcagua, the highest peak outside Asia. And, in an age when skiing is increasingly commodified, homogenised and dominated by large corporate groups, Portillo is a happy anachronism, family-run, independent and idiosyncratic.

Above all, though, it was a week of deep powder — like heli-skiing without the need for a noisy, expensive machine. While resort managers worldwide fret about diminishing snowfall, in Portillo this year the problem has been too much. A storm in mid-July brought such a deluge, the road up to the resort and the border was closed — it would be a month before it opened fully again. Some visitors had to be taken out by helicopter and, with no guests, Portillo’s ski instructors gave lessons to the housekeepers and janitors. Staff grew used to shovelling snow to clear windows and doorways that had been subsumed by the drifts.

But before the ski resort and before the road, there was only the railway. In the late 19th century, Norwegian engineers surveying the proposed route donned skis to travel in winter, making them probably the first skiers on the continent. When it started running, the train became South America’s first ski lift — early enthusiasts used to ride it up close to the border, before skiing down alongside the Rio Juncalillo.

Seeing the sport’s growing popularity, in the 1940s the Chilean government decided to build a hotel at Portillo. It opened in 1949 but was soon losing money and in 1961 was put up for auction. Two American former guests, Bob Purcell and Dick Aldrich, submitted what they later discovered was the only bid, and Purcell asked his nephew Henry to give up his job with Hilton in Manhattan to come to Chile to manage it.

Henry was 26 when he arrived in Portillo through that same sooty railway tunnel. He had never skied, spoke little Spanish, and was in for a shock. “The place was in a miserable condition; they hadn’t put any money into it in years. It stank — a sheep was living in the lounge,” he told me, as we sat in his light-filled office overlooking the slopes, a few iron spikes from the old railway on his windowsill.   

Yes — Henry, now aged 92, is still here and still running the place, alongside his wife Ellen, son Miguel and various other members of the family. He’d only planned to stay long enough to convince Hilton he was capable of an overseas posting. “I figured a couple of years would show them I could handle living outside the US,” he says. “Trouble was, I liked it.”

He began to renovate the hotel and expand the lift system, hatching an audacious plan to host the 1966 Alpine World Ski Championships — still the only time the event has taken place in the southern hemisphere. Jean-Claude Killy swept to gold in the downhill and combined events, helping put Portillo on the world stage.

Today, black and white photos from that event dot the corridors and, under Henry’s charge, a sense of continuity clings to the place. The main hotel building has 123 rooms and, with a couple of cheaper annexes and small chalets alongside, it accommodates no more than 450 guests at a time (looked after by 450 staff, a ratio that would make more commercially minded resort operators blanch).


Everyone comes for the whole week; meals are all included and taken in the grand dining room with its original wooden columns, leather-lined walls and an army of red-jacketed waiters. “Same jackets they wore back in 1949,” says Henry, who attends every dinner, sitting at what staff dub “the captain’s table”.

Henry might be the patriarch, but isn’t the only familiar face that greets returning guests (and they do return, often over decades and with new generations in tow). There’s Blanca Vergara, the 86-year-old head of laundry, and Mike Rogan, the stalwart director of operations, who first arrived to run the ski school in 1995 (and, judging by the amount of duct tape holding it together, still has the same down jacket). Links between staff and hotel run deep: one team member told me her father was an instructor, her mother a receptionist, and that she was conceived here. 

At dinner the first night we met Juan Beiza, the maître d’, who started here in 1968. When Fidel Castro visited in 1972, Beiza noticed that he had risen from the lunch table but left his pistol on the seat. Running outside to return it, his arm outstretched, Beiza was nearly shot for his trouble by the Comandante’s nervous bodyguards.

In the morning we set out — 27 “campers”, most from the US but with others from Japan, the UK, Canada and Greece. Coming out of the boot room, we found the snow so deep, steps had been cut into it to take us up to the surface. Fat flakes were still falling; it was the last day of the big storm and the forecast was for it to slowly clear, with the lifts gradually opening. Portillo has just 14 — but though the piste skiing is limited, the off-piste options, accessed via traverses or boot-packing, are vast. “This place is the biggest little ski area on the planet,” says Chris Davenport, the two-time extreme skiing world champion who has been organising the Superstars Camp since 2005.

We rushed to the Condor lift just as it opened. This is a “va-et-vient”, or “slingshot”, one of only four in the world, all at Portillo. Custom-built in the 1960s, they are a bit like a Poma drag lift, only much faster and, rather than ride up single file, four or five skiers stand side by side — if someone falls, you’ll likely all come off.

At the top, thankful for having survived one more new ski experience without mishap, I found myself following Ingrid Backstrom, another of the coaches and star of numerous ski movies over the past 20 years. She pushed off and we watched her fly through the untracked snow, dropping down the mountainside at speed and yet with languid movements that seemed completely unhurried, the time-bending trick of a true master.

Later, as I stood peering through ephemeral cloud tunnels at the Laguna del Inca far below, I was surprised by a movement on a rock. A strange creature was watching me, only a few metres away — like a giant rabbit but with a squirrel’s bushy tail. A viscacha, I was told, and for me another first.

The Portillo paradox is that, though it attracts hardcore skiers — both freeriders here for the steeps and professional racers down for off-season training — the atmosphere is neither raucous nor competitive; rather it’s more like a high-altitude country club or cruise ship in the snow. When the lifts close at 5pm, you hand your skis and boots to the valet, then head upstairs for a high tea in the dining room. Afterwards, with no televisions to detain them in their rooms, families gather for cards by the fire in the drawing room, or dash through the snow to leap into one of the three outdoor pools.

There’s a sports hall, a climbing wall and kids’ playroom, a cinema, a nightclub and a bar (with a vaguely Bavarian feel created in the 1960s by a set designer who worked on I Love Lucy). Noticeboards show the day’s timetable of activities, from morning stretching sessions to bakery classes and ping-pong tournaments, as well as which band will be playing in the bar that night. 

Those on the Superstars Camp also have nightly film shows by the coaches. First up, Cody Townsend and Elyse Saugstad presented their yet-to-be-released movie The Edge of Reason about the death of a friend, an avalanche near miss, and how becoming parents has changed their approach to risk. Watching it was all the more poignant with their four-year-old son Indiana wheeling around at the back of the cinema on his balance bike.  

As the skies cleared, we found ourselves with five bluebird days and lavish quantities of snow, and gratefully made the most of our impeccable timing.

When the CaraCara slingshot opened, we could traverse from the top into distant couloirs, like the long, dreamy Estadio, starting on a rocky shoulder, then expanding to a wide apron of the deepest powder.

And though it felt like adventure skiing deep in the back-country, we were actually always within the resort boundary. One minute we’d be negotiating a powder-choked couloir, the next sitting outside Tío Bob’s (Uncle Bob’s), the on-mountain restaurant — as one camper put it, “washing out the adrenalin with a glass of white wine”.

We were, to be honest, totally spoiled — given Portillo’s modest number of beds (fewer than 1 per cent of the total in La Plagne, France, for example), it was like having a private resort. Other companies might have tried to develop more real estate or to maximise lift pass sales, but when Vail Resorts approached to offer partnership and membership of its Epic Pass, Portillo declined, preferring to hold true to the original model.

“It’s a tough business, certainly not a good way to make money,” Henry told me. “But I think people more and more want to get away from corporate ski areas. They enjoy sitting around here in a relaxed atmosphere, in a place where they can do family things and not be subject to so much pressure.”

We skied in groups of five or six, each day with a different coach. One afternoon, Mike Douglas drilled us to look up and further forward: “It’s like driving a car: if you look down at the white line just before the bumper, it’s a blur. But the further out you look, the slower it seems.”

Cody Townsend ran us through spotting and skiing a new steep route, starting with finding a vantage point to look across at the entire face (known as the “barbie line” because film crews would set up in that position and end up having to stay there so long they might as well have lit a barbecue). From there, he explained, we could take photos and note rocks and other features to help with navigation. “The only problem is that it looks steeper straight on. I always have to tell myself: ‘Don’t worry, the barbie line always looks worse!’”

Afterwards we went back up and gingerly slid on to the most committing line of the week. When I caught the tip of my ski on a rock, and toppled backwards off balance, Cody was standing below to stop me falling any further. I won’t say he saved my life, but he probably saved me some bruises.

That night, our last, we trooped a few minutes across the road to La Posada, a no-frills bar that once catered to truck drivers heading for the border but is now part of the hotel. A DJ played Chilean pop and we drank pisco sours alongside hotel staff celebrating the end of the week. When we walked back, we could see the stars that had dazzled all week start to vanish behind incoming clouds — more snow was on its way.

In fact, almost 10 metres have now fallen, the most in 50 years, so much that the resort has extended its season by several weeks, until October 11, while Davenport has added an extra week’s course, starting September 19. All of which is to say, if you like the sound of wild mountains and abundant snow, of a week delightfully sequestered from the modern world, it’s not too late...

FT : Jefferies fund caught with $500mn exposure to second alleged invoice fraud

Jefferies fund caught with $500mn exposure to second alleged invoice fraud
Point Bonita, which bankrolled collapsed First Brands Group, emerges as big creditor to Radiant World

The Jefferies-managed fund that lent to collapsed auto parts group First Brands Group has almost $500mn worth of exposure to troubled iron ore trader Radiant World and another entity, ranking it among the biggest creditors in a second high-profile alleged fraud.

Jefferies asset management unit last week obtained a freezing order for up to $499mn from London’s High Court against Radiant World, its founder Pinkesh Nahar, an allegedly affiliated company called Sapphire Minmetals and its chair Rakesh Sethi, according to people familiar with the matter.

It puts the Jefferies fund’s exposure to Radiant and linked companies significantly higher than previously reported and underscores its role as a key financier of the two iron ore traders.

Troubles at Radiant have dealt another setback to Point Bonita, a private credit fund within Jefferies’ Leucadia Asset Management that specialises in invoice-backed lending, after the implosion of First Brands Group. The US investment bank revealed $715mn of exposure linked to the Ohio-based business last October.

Radiant, a little-known company that rapidly grew into one of the largest iron traders in the world, has come under pressure in recent weeks after several lenders cut ties with the group over alleged inconsistencies in the documentation underpinning its financing.

The company and Nahar, both of whom are subject to legal proceedings, have denied any wrongdoing. 

Radiant and Sapphire have both stated that they are independent companies. However, Radiant previously owned a majority stake in Sapphire until 2015, according to Hong Kong company records. One person who worked with Radiant on its financing described Nahar and Sethi as “business partners” who had “known each other for years”.

The freezing order poses a threat to the personal wealth of Nahar, who has amassed a series of trophy assets around the world as Radiant grew into one of the largest iron ore traders in the world.

Companies owned by Nahar purchased two luxury apartments in London’s Fulham for a total of £12.15mn in August 2022, according to UK property records. Nahar also chairs a Bollywood film production company in India and owns a Singapore-based investment firm that buys stakes in technology companies.  

The trade finance fund began providing financing to Radiant in 2021, and its exposure grew from $35mn to hundreds of millions of dollars over the next four years, according to people familiar with the matter.

But as Point Bonita faced a wave of redemption requests from investors in the wake of First Brands’ collapse, it moved to stop rolling existing facilities it had with the commodities trading firm, creating liquidity problems for Radiant, they added.

Point Bonita in April signed a forbearance agreement with both Radiant and Sapphire, according to people familiar with the matter. The contracts typically allow companies that have defaulted on their debt to set up a payment plan or put up more collateral to avoid the lender demanding immediate repayment.  

Jefferies is facing two separate lawsuits from an investor in and a lender to Point Bonita over its First Brands exposure. Point Bonita had $3bn in gross assets at its peak before First Brands’ collapse, with Jefferies previously stating that it had a 5.9 per cent stake in the fund’s $1.9bn equity. 

The Wall Street bank has denied claims of fraud in the two cases and has said the lawsuits are without merit. Jefferies accused Western Alliance, the Point Bonita lender which is suing, of making “false and misleading” statements over the First Brands dispute.

Jefferies declined to comment. Radiant, Sapphire, Nahar and Sethi did not respond to requests for comment.

9to5 : Three advantages iPhone Ultra will have over iPhone 18 Pro Avatar for Rya

Three advantages iPhone Ultra will have over iPhone 18 Pro
Apple has three new flagship iPhones launching next week: iPhone 18 Pro and Pro Max and iPhone Ultra. Apple’s Pro models will have several advantages over the Ultra, but here are three ways the high-end Ultra will come out on top.
#1: Larger (and smaller) displays
Dummy models for iPhone Ultra and iPhone 18 Pro, Pro Max
iPhone Ultra will have two displays with the following rumored dimensions:
  • 5.5-inch cover display
  • 7.8-inch inner display
This compares to iPhone 18 Pro’s 6.3-inch screen and 6.9 inches on the Pro Max.
Essentially, iPhone Ultra provides both a larger display than the Pro models and also a smaller one. As a result, it will be the better choice for anyone wanting the largest iPhone screen. But it could also be a winner for fans of small phones, like the discontinued iPhone mini.
#2: Fits in any pocket, comfortable in-hand
iPhone 18 Pro, and especially iPhone 18 Pro Max, will be hit-or-miss in fitting pockets. This was already an issue with iPhone 17 Pro models. And while dimensions will largely be the same this year, rumors indicate the plateau could get even thicker to make room for the new camera system.
iPhone Ultra, meanwhile, will have a compact form factor when folded. It should fit in far more pockets with ease.

Additionally, the sleek, Air-inspired design of iPhone Ultra should be more comfortable in the hand than Apple’s bulkier Pro models.
#3: Exclusive multitasking features in iOS 27
iPad mini pictured
Though iPhone Ultra will have a few hardware drawbacks compared to iPhone 18 Pro, it’s likely in the software experience that it will earn its ‘Ultra’ branding.
Side-by-side apps are rumored to be an exclusive multitasking feature of iPhone Ultra. When unfolded, you’ll be able to keep two apps active on-screen at all times. Drag and drop will even be supported between apps.
iOS 27 also brings landscape support to lots of system apps for the first time, no doubt intended for iPhone Ultra though available on other models too. This will enable an iPad-like app experience on iPhone Ultra’s large 7.8-inch screen.

9to5 : Apple will launch six major new products next week, here’s what’s coming

Apple will launch six major new products next week, here’s what’s coming

Apple’s biggest event of the year is just days away. September 9 will bring the “huge launch” new CEO John Ternus recently teased, with rumors indicating new iPhones, Apple Watch models, and AirPods are coming—and possibly more. Here are the six major products expected to debut.
iPhone
Apple has three new flagship iPhone models ready to be unveiled. Two iPhone 18 Pro models will headline the lineup, joined by the highly anticipated foldable iPhone Ultra.
  • iPhone 18 Pro: A20 Pro chip, major camera upgrades, new colors, smaller Dynamic Island
  • iPhone 18 Pro Max: Larger battery and more efficient for best battery life ever
  • iPhone Ultra: Apple’s first ever foldable iPhone
Apple Watch
Apple Watch is always a fixture of the September event, and this year we’re expecting two new models. Both should bring more powerful chips and health features, among other updates.
AirPods
AirPods 5 are coming, making a sixth major new product to launch. Recent leaks indicated we might see AirPods with cameras debut in September, but per Mark Gurman, that product is coming in 2027 and only AirPods 5 will launch next week.
  • AirPods 5: Updated model with base and ANC variants, possibly new chip
Wildcard: Apple Home products
iPhone, Apple Watch, and AirPods are always safe bets for the September event. But rumors indicate they’ll likely be joined by several new Home products, including the long-awaited home hub with display.
More Apple products that could launch, but likely won’t until October
Apple has several other products reportedly in the works that are expected to launch this fall, and thus could make September 9 appearances.
Though October debuts are more likely, we could see the MacBook Ultra, M6 MacBook Pro, M6 iMac, or OLED iPad mini make surprise appearances at the event. Other Home products are possible too, like a new full-size HomePod.

Based on the latest reporting though, new iPhones, Apple Watch models, AirPods 5, and potentially Home products are all expected next week.
Which of Apple’s new products coming next week are you most excited about? Let us know in the comments.