Business Of Fashion : Where Does Accessible Luxury Go From Here?

Where Does Accessible Luxury Go From Here?
This week, Coach owner Tapestry reports full-year results amid a slowing US economy and stalled takeover bid for Michael Kors parent Capri.

In recent weeks, luxury fashion’s biggest players, including LVMH and Kering, sounded the alarm about slowing global demand and an uncertain outlook for the remainder for the year.

Macro-economics and shifting consumer preferences are mostly to blame. China’s economy remains in the doldrums — with real estate values depressed and youth unemployment high — while Americans and Europeans, especially more aspirational shoppers, are still struggling to recover economic enthusiasm amid the lingering effects of post-Covid inflation. Meanwhile, travel, restaurants, concert tickets, wellness and cosmetic procedures feel like more tempting purchases than expensive handbags — particularly in the light of dramatic price hikes for luxury fashion goods.

Where does that leave the accessible luxury segment, and its leading player Tapestry — the Coach, Kate Spade and Stuart Weitzman owner — which Thursday reports quarterly sales as well as results for its full fiscal year?

Investors will be watching closely to see if the group’s long-term drive to curb markdowns is on track in a softening US economy (slower-than-expected growth numbers sparked a market panic last week) as well as updates on a takeover bid for rival Capri, which was challenged this spring by US competition authorities.

They’ll also be watching to see whether customers who are forgoing purchases from top luxury brands might still be in the market for a decent looking bag if the price is right. Conversely, accessible luxury brands’ reliance on lower-income, aspirational customers could pose a problem: in recent weeks, luxury groups pinpointed falling demand from that cluster as the principal issue in the United States.

Sales at Michael Kors owner Capri fell 12 percent excluding currency shifts last quarter, the company reported Thursday in a gloomy sign for the segment. But Ralph Lauren’s business held steady, with 1 percent sales growth and higher-than-expected profits.

Meanwhile, in Europe, the ubiquity of Polene and Sézane shopping bags on the Paris street suggests that hunger for new accessible luxury concepts persists.

Where will Tapestry fall?

Business Of Fashion : US Luxury Spending Down 11% in July, Says Citi

US Luxury Spending Down 11% in July, Says Citi
Credit card data from Citi Research suggests a steep decline in spending for luxury leather goods and ready-to-wear, while watches saw unexpected growth.

US consumers spent 11 percent less on luxury goods in July compared to the same month last year, Citi Research said Friday citing data from a panel of 10 million credit card-holders. The drop suggests further deterioration in luxury demand at the start of the third quarter: June’s credit card data showed a 7 percent drop.

Luxury leather goods and ready-to-wear were the categories most impacted by the slowdown, with sales falling by 19 percent and 15 percent respectively, Citi said. Jewellery was more resilient, registering a 6.5 percent drop. Luxury watchmakers were an unexpected bright spot, with sales growing by 10 percent, posting a double-digit increase for the first time since early 2022.”

The US economy seems to be deteriorating at a faster pace than previously expected. For lower-income consumers in particular, excess savings have eroded with inflation,” Citi’s analysts said in a note to clients. “For the past couple of years we have seen luxury demand weakness in entry-level categories usually targeting aspirational consumers, with sharp multi-year price increases posing a risk to volume growth.”

WSJ : In Secret Talks, U.S. Offers Amnesty to Venezuela’s Maduro for Ceding Powe

In Secret Talks, U.S. Offers Amnesty to Venezuela’s Maduro for Ceding Power
Long-shot American attempt fueled by opposition effort to document the president’s overwhelming defeat at the polls

BOGOTÁ, Colombia—The U.S. is pursuing a long-shot bid to push Venezuelan President Nicolás Maduro to give up power in exchange for amnesty as overwhelming evidence emerges that the strongman lost last month’s election, people familiar with the matter said.

The U.S. has discussed pardons for Maduro and top lieutenants of his who face Justice Department indictments, said three people familiar with the Biden administration deliberation. One of the people said the U.S. has put “everything on the table” to persuade Maduro to leave before his term ends in January.

Another person familiar with the talks said the U.S. would be open to providing guarantees not to pursue those regime figures for extradition. The U.S. in 2020 placed a $15 million bounty for information leading to Maduro’s arrest on charges of conspiring with his allies to flood the U.S. with cocaine.

The talks represent a flicker of hope for a Venezuelan political opposition that meticulously collected voter tallies showing its candidate, little-known former diplomat Edmundo González, defeated Maduro in a landslide in the July 28 election. Over the past two weeks, Maduro has jailed thousands of dissidents, maintained the military’s loyalty and tasked the Supreme Court, stacked with his handpicked allies, with resolving the election impasse, buying him time.

International action may be the only avenue to force out Maduro, who over 11 years of authoritarian rule has overseen an economic implosion, diplomatic isolation and the exodus of nearly eight million Venezuelans—more than war-torn Syria and Ukraine. Maduro has given transnational gangs a haven, U.S. and Colombian officials say, and allowed Russia, China and other U.S. rivals to gain a foothold in the Western Hemisphere.

Maduro’s total grip on power stacks the odds against the Biden administration. The U.S. had made an amnesty offer to Maduro during secret talks in Doha, Qatar, last year, but he declined to discuss arrangements where he would have to leave office, said people familiar with the matter. One person close to the regime said Maduro’s position hasn’t changed, for now.

Maduro has said that he is open to talks as long as Washington shows him respect. At other times, he tells the U.S. to mind its own business. “Don’t mess with Venezuela’s internal affairs, that’s all I ask for,” Maduro said in a news conference Friday.

Latin America’s three most populous countries—Brazil, Mexico and Colombia—are also involved in trying to resolve the standoff. U.S. officials want these countries—run by leftist leaders sympathetic to Maduro—to take a tougher stance than their current position of pressuring him to present evidence he won.

The U.S. has five months before Venezuela’s presidential inauguration to pull off a deal and much depends on the outcome of the presidential election in November.

A Donald Trump victory could squelch the talks if the former president revives his previous aggressive policies toward Maduro that began in 2019, when his administration leveled oil sanctions and supported a shadow Venezuelan government to topple the regime.

Still Maduro mistrusts Washington, no matter who inhabits the White House, said people familiar with the sentiment in the Venezuelan capital, Caracas. This includes the Biden administration, even though it had lifted most economic sanctions in the hope of fostering a free and fair July election.

Focus on carrots, not sticks
So far, the talks have taken place virtually between Jorge Rodríguez, president of Venezuela’s congress and a Maduro confidant, and Daniel P. Erikson, who directs policy toward Venezuela at the White House National Security Council. U.S. officials have signaled that they won’t force Western oil companies to leave Venezuela.

An NSC spokeswoman declined to comment on diplomatic engagements with Caracas but said the U.S. supports international efforts to demand transparency over the vote count and will determine next steps based on U.S. interests.

“We are considering a range of options to incentivize and pressure Maduro to recognize the election results and will continue to do so, but the responsibility is on Maduro and Venezuela’s electoral authorities to come clean on the electoral results,” the spokeswoman said.

The Biden administration “is focusing on carrots, like offering to lift the indictments in exchange for transition talks, rather than sticks like sanctions,” said Geoff Ramsey, a Venezuela expert at the Atlantic Council, the Washington think tank.

Ramsey said Republicans could use the engagement with Maduro to attack the Democrats in an election year, which could be damaging if the U.S.’s efforts fall through.

Vote count persuaded U.S. to act
The U.S. attempt to offer Maduro a face-saving option dovetails with the opposition’s strategy, which favors negotiations that would include guarantees for regime leaders and a transition to a González government.

The U.S. talks wouldn’t be happening without the Venezuelan opposition’s monthslong preparations to document and make public the vote tally, which showed González won by almost 38 percentage points, collecting 7.3 million votes to Maduro’s 3.3 million.

Opposition leaders said they were sure Maduro would steal the election. He had already banned the most popular opposition leader, María Corina Machado, from running.

They decided their best shot at documenting victory was to obtain the paper tabulation of the ballots that every Venezuelan voting machine emits, known as an acta. Venezuelan law requires actas be made publicly available. The opposition trained tens of thousands of poll watchers, who are permitted into voting stations to retrieve the actas, which look like a grocer’s receipt.

An opposition organizer said: “I told our poll watchers: ‘They can try to kill you but don’t leave the voting table until you have the actas.’”

As the voting ended, poll workers noticed González was winning at station after station, even in the Caracas neighborhood called 23rd of January—a stronghold for the radical leftist movement that has ruled for a quarter-century. “We couldn’t believe it,” said one poll worker.

Another poll worker across town was stunned as he saw Maduro losing in districts that had been “hyper-Chavista,” referring to the president’s predecessor and mentor, Hugo Chávez.

Soldiers, who normally carry out the regime’s orders, did nothing to stop the opposition’s effort, the whole process amounting to a mini-rebellion against Maduro in a country where he controls every institution, including the National Electoral Council.

“They were happy,” the poll worker in 23rd of January said of the soldiers. “It was surprising.”

The poll watchers, using a QR code on the actas, sent the results electronically to the opposition. They also kept physical copies, posting many on social media.

Regime allies and the military managed to throw out some opposition poll watchers and seized actas in some voting stations. But it wasn’t enough to stop the flood of evidence.

Long after the voting ended, the regime was silent, even though the country’s modern electronic-voting system is designed to spit out results minutes after polls closed. It wasn’t until after midnight that the election council’s president, Maduro confidant Elvis Amoroso, said the president had won, citing no evidence.

By then, the opposition was on its way to collecting 83% of the actas. Their tally showed González had won far more votes in every Venezuelan state and nearly 300 of 330 counties.

Jennie Lincoln, who oversaw the Carter Center’s effort to monitor the election, said Amoroso didn’t present station-by-station results, as required by electoral law, and still hasn’t. Without offering proof, the regime has said a North Macedonian hacker had breached the system, making it impossible to publicly share the actas.

“And the hacking,” Lincoln said, “it’s bogus.”

Amoroso didn’t explain how he determined Maduro had won, having never shown others at the election-council headquarters the actas on which the election outcome is based, said Enrique Márquez, a former presidential candidate who had a representative at the headquarters on election night.

The results collected by the opposition were similar to pre-election surveys by independent pollsters and exit polls. The opposition digitized the actas and published them on a website accessible to any Venezuelan. “We were able to show the world the truth and what had happened in Venezuela,” Machado told The Wall Street Journal.

The regime response
From the presidential palace, Maduro, 61, has called the opposition’s strategy a coup and launched a crackdown, with his regime pledging to investigate Machado and González.

As of the end of the week, Maduro said more than 2,400 dissidents and protesters had been arrested.

National Guard troops and the regime’s paramilitary gangs, the motorbike-riding “colectivos,” have attacked protesters. Antigovernment activists have fled to Colombia, while hundreds of Venezuelans who had publicly come out against Maduro report that their passports have been annulled. The human-rights group Provea says 24 people have died.

“There will be no forgiveness,” Maduro warned his adversaries. Two prisons will be built to hold the new political prisoners, the president said, with many toiling away at hard labor.

Eric Farnsworth, a former American diplomat and analyst at the Council of the Americas policy group in Washington, said the election results stunned Maduro. Farnsworth said the leader has signaled he is willing to take Venezuela toward a more hard-line dictatorship, like that of Nicaragua under Daniel Ortega, where political killings are far more common and no dissent is brooked.

“He’s been shown to be unpopular and also illegitimate. How does he combat that? With further oppression,” said Farnsworth. “As a practical matter, it makes him more dangerous. That makes being in the opposition a very risky thing.”

The regime has announced what it calls Operation Knock-Knock, which means a knock at the door at any hour and arrest. In one case that went viral, uniformed agents recently showed up at the home of a young man without a warrant. The proof of wrongdoing: a video of him protesting.

“Inciting hate,” an agent told the family, showing them the video on his phone. Relatives demanded to see a warrant but the agent warned, “If you want to make this worse, we’ll make it worse,” before they took the man away. The family posted a video of the encounter online.

Maduro is trying to steer people from X and WhatsApp, ordering that Elon Musk’s company be blocked for 10 days and exhorting Venezuelans to deinstall WhatsApp to suppress information about the vote and the crackdown.

Machado said change can come if the opposition can keep its people on the streets.

But there are consequences for those going up against Maduro, said Juan Barreto, a former Caracas mayor once closely aligned with the regime. After calling for the regime to release the actas, he infuriated his old comrades—some of whom are calling for his arrest.

“This is a moment to remain calm and have nerves of steel,” Barreto said.

CoinTelegraph : Celsius sues Tether, seeking $3.5B over Bitcoin collateral sell-

Celsius sues Tether, seeking $3.5B over Bitcoin collateral sell-off
The assets in question were evidently given to Tether as collateral.

Defunct cryptocurrency exchange Celsius has filed a lawsuit against Tether alleging misappropriation of assets and seeking approximately $3.5 billion in BTC returns, damages and legal fees.

Tether reports that Celsius, in its lawsuit, seeks the return of approximately $2.4 billion worth of Bitcoin (BTC). However, publicly available court documents show that Celsius has asked the court for relief in the amount of 57,428.64 BTC or its current market dollar equivalent, plus damages and legal fees.

Celsius sues Tether
The lawsuit alleges that, during Celsius’ bankruptcy proceedings, Tether loaned it a specific amount of Tether (USDT) (the company’s stablecoin backed by the United States dollar). In return for this loan, Celsius sent Tether 39,542.42 BTC in collateral.

As the price of Bitcoin dropped, and per the two parties’ agreement, Celsius was required to provide further collateral to avoid liquidation.

According to the lawsuit, Celsius claims Tether liquidated the BTC at a price point that almost exactly covered the debt without giving it the opportunity to provide additional collateral.

Tether responds
According to Tether, the lawsuit is baseless. The company called the proceedings a “shake down” and pledged to “vigorously defend” itself against “unwarranted allegations” in a recent blog post.

Tether says that, rather than liquidating Celsius’ position in violation of their contract, it was Celsuis that requested the selloff after choosing not to provide additional collateral:

“When Celsius chose not to post additional BTC it directed Tether to liquidate the BTC collateral Tether held in order to close out its roughly 815 million USD₮ position with Tether.”
While Tether has left no doubt about its commitment to fighting the suit, it’s also been quick to reassure USDT stakeholders. Citing its $12 billion in consolidated equity, the company stated that “even in the most remote scenario in which this baseless lawsuit will get somewhere, Tether token holders will not be impacted.”

Damages
As mentioned above, the exact amount Celsius seeks appears to be in question. The number currently being reported throughout the crypto community and cited in Tether’s blog post accounts for 39,542.42 BTC, worth about $2.4 billion as of Aug. 10.

However, according to page 28 of the legal filing, the plaintiffs also want two other transfers made during the same period voided.

As part of the suit’s “prayer for relief,” the plaintiffs ask the court to “require Defendants to relinquish to Plaintiffs the 15,658.21 Bitcoin, 2,228.01 Bitcoin, and 39,542.42 Bitcoin preferentially transferred by Plaintiffs to Defendants” or its current US dollar value.

Together, those three transfers amount to 57,428.64 Bitcoin. As of Aug. 10, at a price of $60,627 per BTC, Celsius is apparently seeking approximately $3.48 billion in Bitcoin.

Furthermore, the Celsius suit also seeks no less than $100 million in damages “plus additional damages to be determined at trial” and legal fees.

WSJ : Disney Unveils Billions of Dollars in Theme Park Expansions

Disney Unveils Billions of Dollars in Theme Park Expansions
The Experiences division reveals specific plans for new rides and attractions that die-hard fans have been waiting on

ANAHEIM, Calif.—Villains given the run of the Magic Kingdom. A “Monsters, Inc.”-themed land at Disney’s DIS 0.29%increase; green up pointing triangle Hollywood Studios, complete with Disney’s first-ever suspended roller coaster, where riders zoom around with their legs hanging free. Four new cruise ships.

The scope and details of the tens of billions in planned investment in Disney’s Experiences unit came into clearer focus Saturday night.

The announcements came as part of Disney’s three-day D23 Expo, during a presentation that unfolded over nearly three hours at an arena near Disneyland in Anaheim. Josh D’Amaro, chairman of the division and a short-list candidate to succeed Bob Iger as Disney’s chief executive, regaled theme park habitués with his vision for growth.

From the get-go, D’Amaro moved to fend off criticism, common among Disney fans in recent years, that the company doesn’t have much in the way of shovel-ready projects in the works.

“Everything we’re going to share with you tonight is an active development,” he told the crowd, which Disney counted at 12,000. “I just want to be clear to all the fans out there: This isn’t blue sky.”

The Experiences division that includes theme parks, cruises and videogames produced 69% of the entertainment giant’s operating income in fiscal 2023.

Bloggers and fans regularly dissect Disney’s development pipeline for its theme parks. This year the division is especially under the microscope. In the company’s past two quarterly earnings reports, weakening consumer demand has led to disappointing results in the Experiences division. This has hurt Disney’s share price and raised concerns that the broader theme-park industry may be on course for a reckoning.

Disney is under pressure to offer fans new, exciting attractions to justify recent increases to ticket prices and other rising costs. It also faces growing competition from Comcast’s Universal Studios business, which plans to open a new theme park near Walt Disney World in Florida next year.

At the last D23 Expo, in 2022, the parks panel largely featured ideas far from starting construction. Fans got more details to chew on this year.

Disney is teeing up two major expansions at Walt Disney World’s Magic Kingdom park. One is a long-rumored villains-themed land based on the less savory characters from Disney’s oeuvre. The other is a new section of Frontierland inspired by the Cars franchise that will include two new rides.

The two projects, D’Amaro said, “represent the biggest expansion in the park’s entire history.”

At nearby Animal Kingdom, Disney plans to redo a section of the park now focused on dinosaurs. The new Tropical Americas land will feature rides themed after the Indiana Jones franchise and Disney’s hit film “Encanto.”

The parks presentation and a Friday night showcase introducing Disney’s coming film slate were star-studded. Dwayne “The Rock” Johnson, “Avatar” director James Cameron and composer Lin-Manuel Miranda came onstage to promote new movies on Friday.

To hammer home D’Amaro’s promise to expand Disney’s cruise ship fleet to 13 vessels before 2031, 1990s R&B stars All-4-One performed the song “I Swear.”

Saturday evening also offered details of a new portion of the Hollywood Studios park that will transport visitors to the world of Monstropolis from the Monsters, Inc. films. One of the new rides in this land will be Disney’s first suspended roller coaster.

D23 Expo has grown into a corporate phenomenon. It is a massive pep rally aiming to give fans, who often come dressed as their favorite characters, the sense that they are a part of Disney’s creative planning process. It also helps the company gauge enthusiasm for each new product, movie and character it rolls out.

On Friday night, Iger opened the ceremonies with almost Olympic fanfare, appearing onstage to introduce a presentation of the company’s new film slate. It was his first appearance at a D23 Expo in five years—he came out of retirement in late 2022 to succeed former CEO Bob Chapek.

“Boy, did I miss you,” Iger told fans, who gave him a 20-second standing ovation.

As he finished his remarks, Auli‘i Cravalho, who voices Moana, the Polynesian princess with a sequel opening later this year, burst into a new song, accompanied by dozens of dancers and percussionists. It featured the line, “Finally we’re back to who we’re meant to be!”

When Disney announced last September that it was doubling its planned capital investments in the Experiences division over the next decade, to $60 billion, the news was thin on details.

The company’s shares fell by 3.6% on the day of the announcement. That accelerated a decline that prompted activist investor Nelson Peltz to say months later that he would seek a board seat at Disney. In the proxy fight that followed, Peltz said the parks needed updates. In April, Iger triumphed over Peltz when shareholders voted decisively to keep the investor off the board.

Beyond Walt Disney World, Disney has major expansions planned for its parks in California, France and China.

Disney California Adventure at Disneyland Resort in Anaheim will add a handful of rides based on the Marvel Cinematic Universe, Cameron’s Avatar franchise and the Pixar film “Coco.”

Overseas, the first ride tied to “The Lion King” is being developed for the Disneyland Paris Resort. New Spider-Man-inspired rides are planned for Disney’s parks in Shanghai and Hong Kong.

Executives didn’t share precise timelines for the projects across the globe during Saturday night’s presentation.

>>> Solar energy breakthrough could reduce need for solar farms

Solar energy breakthrough could reduce need for solar farms


Oxford, 9 August 2024, Scientists at Oxford University Physics Department have developed a revolutionary approach which could generate increasing amounts of solar electricity without the need for silicon-based solar panels. Instead, their innovation works by coating a new power-generating material onto the surfaces of everyday objects like rucksacks, cars, and mobile phones.

Their new light-absorbing material is, for the first time, thin and flexible enough to apply to the surface of almost any building or common object. Using a pioneering technique developed in Oxford, which stacks multiple light-absorbing layers into one solar cell, they have harnessed a wider range of the light spectrum, allowing more power to be generated from the same amount of sunlight.

This ultra-thin material, using this so-called multi-junction approach, has now been independently certified to deliver over 27% energy efficiency, for the first time matching the performance of traditional, single-layer, energy-generating materials known as silicon photovoltaics. Japan’s National Institute of Advanced Industrial Science and Technology (AIST), gave its certification prior to publication of the researchers’ scientific study later this year.

“During just five years experimenting with our stacking or multi-junction approach we have raised power conversion efficiency from around 6% to over 27%, close to the limits of what single-layer photovoltaics can achieve today,” said Dr Shuaifeng Hu, Post Doctoral Fellow at Oxford University Physics. “We believe that, over time, this approach could enable the photovoltaic devices to achieve far greater efficiencies, exceeding 45%.”

This compares with around 22% energy efficiency from solar panels today (meaning they convert around 22% of the energy in sunlight), but the versatility of the new ultra-thin and flexible material is also key. At just over one micron thick, it is almost 150 times thinner than a silicon wafer. Unlike existing photovoltaics, generally applied to silicon panels, this can be applied to almost any surface.

“By using new materials which can be applied as a coating, we’ve shown we can replicate and out-perform silicon whilst also gaining flexibility. This is important because it promises more solar power without the need for so many silicon-based panels or specially-built solar farms,” said Dr Junke Wang, Marie Skłodowska Curie Actions Postdoc Fellow at Oxford University Physics.

The researchers believe their approach will continue to reduce the cost of solar and also make it the most sustainable form of renewable energy. Since 2010, the global average cost of solar electricity has fallen by almost 90%, making it almost a third cheaper than that generated from fossil fuels. Innovations promise additional cost savings as new materials, like thin-film perovskite, reduce the need for silicon panels and purpose-built solar farms.

“We can envisage perovskite coatings being applied to broader types of surface to generate cheap solar power, such as the roof of cars and buildings and even the backs of mobile phones. If more solar energy can be generated in this way, we can foresee less need in the longer term to use silicon panels or build more and more solar farms” Dr Wang added.

The researchers are among 40 scientists working on photovoltaics led by Professor of Renewable Energy Henry Snaith at Oxford University Physics Department. Their pioneering work in photovoltaics and especially the use of thin-film perovskite began around a decade ago and benefits from a bespoke, robotic laboratory.

Their work has strong commercial potential and has already started to feed through into applications across the utilities, construction, and car manufacturing industries.

Oxford PV, a UK company spun out of Oxford University Physics in 2010 by co-founder and chief scientific officer Professor Henry Snaith to commercialise perovskite photovoltaics, recently started large-scale manufacturing of perovskite photovoltaics at its factory in Brandenburg-an-der-Havel, near Berlin, Germany. This is the world’s first volume manufacturing line for ‘perovskite-on-silicon’ tandem solar cells.

“We originally looked at UK sites to start manufacturing but the government has yet to match the fiscal and commercial incentives on offer in other parts of Europe and the United States,” Professor Snaith said. “Thus far the UK has thought about solar energy purely in terms of building new solar farms, but the real growth will come from commercialising innovations – we very much hope that the newly-created British Energy will direct its attention to this.”

“The latest innovations in solar materials and techniques demonstrated in our labs could become a platform for a new industry, manufacturing materials to generate solar energy more sustainably and cheaply by using existing buildings, vehicles, and objects,” Professor Snaith added.

“Supplying these materials will be a fast-growth new industry in the global green economy and we have shown that the UK is innovating and leading the way scientifically. However, without new incentives and a better pathway to convert this innovation into manufacturing the UK will miss the opportunity to lead this new global industry,” Professor Snaith added.

FT : Iran’s president nominates former nuclear negotiator as foreign minister

Iran’s president nominates former nuclear negotiator as foreign minister
Masoud Pezeshkian proposes cabinet that balances reformist instincts with need to keep hardliners on board

Iran’s reformist President Masoud Pezeshkian has nominated a former nuclear negotiator as foreign minister to his proposed cabinet as he faces the dual challenge of resuming talks with western powers about sanctions relief while managing a potential confrontation with Israel.

Abbas Araghchi, a seasoned diplomat who played a key role in the 2015 nuclear accord negotiations, had been sidelined by hardliners in recent years as they consolidated control.

Western diplomats in Tehran and Iran’s business community welcomed Araghchi’s selection, presented to parliament on Sunday along with 18 other cabinet nominations. It was a sign that the republic might adopt a more pragmatic approach to its long-running nuclear stand-off with the west in the hope of securing sanctions relief, they said.

However, there are growing concerns that the republic is on a collision course with Israel as Iranian leaders have vowed to respond to the suspected Israeli assassination of Hamas’s political leader Ismail Haniyeh in Tehran last month.

A senior western diplomat in Tehran highlighted the difficulties of dealing with outgoing hardline officials, saying Araghchi would “make a lot of difference” on routine matters. But the diplomat added that his appointment might not signify a big shift in foreign policy, with key decisions determined by Ayatollah Ali Khamenei, the supreme leader, and the Revolutionary Guards.

The new administration faced an immediate crisis after Haniyeh’s assassination on July 31, hours after he attended Pezeshkian’s inauguration, dealing a significant blow to the republic’s prestige.

Pezeshkian, the country’s first reformist president in two decades, backed Tehran’s right to respond to an attack that Iran claimed was carried out by Israel using a short-range projectile.

Pezeshkian, who unexpectedly won a snap election after the death of former president Ebrahim Raisi in a helicopter crash in May, secured his victory in last month’s run-off against a hardliner.

He has said that Iran’s economy — hampered by currency depreciation, stagnation and years of about 40 per cent inflation — cannot recover while US sanctions on the country’s nuclear programme remain in place. Pezeshkian also promised to ease social restrictions on women, reduce internet censorship, and improve the representation of ethnic and religious minorities, as well as youth, in his government.

Pezeshkian has nominated Farzaneh Sadegh, a prominent architect, as his only female candidate. If approved by the hardline parliament, she would lead the Ministry of Roads and Urban Development and become only the second female minister in the history of the republic.

No cabinet nominations were from the Sunni religious minority, disappointing reformists who had hoped for broader inclusivity. Their exclusion underscores resistance within the Shia-dominated theocracy.

“We are not hopeless but upset with this level of discrimination and being ignored,” said a Kurdish cultural activist. “Everybody knows that the votes of Sunnis and ethnic minorities helped Pezeshkian to win, but this is not reflected in the cabinet’s choices.”

Reformist politicians said Pezeshkian did not go far enough in his cabinet selections, but added that he had to make compromises with hardliners after pledging a government of national unity.

Presidential aides have acknowledged that Pezeshkian consulted Khamenei on his cabinet choices. While this strategy might help him mitigate hardliner resistance and secure support for some limited reforms, it also constrains his ability to fully implement his campaign promises.

Notably, Pezeshkian retained the head of the Atomic Energy Organization of Iran and the intelligence minister from the previous hardline government.

Parliament has a week to review the nominees. Khamenei has already urged the legislature to co-operate with the new government to ensure that Iran speaks with “one voice”.

>>> Lykos Therapeutics announces Complete Response Letter for Midomafetamine Cap

Lykos Therapeutics announces Complete Response Letter for Midomafetamine Capsules for PTSD; FDA requests additional Phase 3 study (update)

  • U.S. Food and Drug Administration requests additional Phase 3 study
  • Issues raised in CRL echo those discussed in FDA Advisory Committee hearing
  • The Company intends to pursue all available regulatory pathways to expeditiously bring a potential new treatment to the 13 million Americans who live with PTSD, a condition that has not had new treatments available for nearly 25 years

Announced that the U.S. Food and Drug Administration ("FDA") has issued a complete response letter ("CRL") for the new drug application ("NDA") for midomafetamine capsules for the treatment of post-traumatic stress disorder ("PTSD") in adults. The FDA communicated that it had completed its review of the NDA and determined that it could not be approved based on data submitted to date. The FDA has requested that Lykos conduct an additional Phase 3 trial to further study the safety and efficacy of midomafetamine. Lykos plans to request a meeting with the FDA to ask for reconsideration of the decision and to further discuss the agency's recommendations for a resubmission seeking regulatory approval for midomafetamine capsules.

The issues expressed in the CRL echo those raised during the FDA Advisory Committee meeting on June 4, 2024. The Company and other stakeholders have expressed concerns around the structure and conduct of the Advisory Committee meeting, including the limited number of subject matter experts on the panel and the nature of the discussion, which at times veered beyond the scientific content in the briefing documents. FDA itself has acknowledged potential problems with the Advisory Committee process and has opened a public docket seeking comments on how it can be improved.

Lykos has previously published its response to the substantive issues discussed at the Advisory Committee hearing. Among others, this included concerns that Lykos' clinical data were insufficient to demonstrate durability along with questions about expectancy bias stemming primarily from participants with prior MDMA use. Lykos believes that the data included in the NDA provide sufficient evidence of efficacy and durability in line with the relevant FDA guidance. FDA's draft guidance for industry on psychedelic drugs3 indicates that endpoint data should be collected at 12 weeks; Lykos' Phase 3 studies collected endpoint data at 18 weeks, with additional exploratory endpoints collected six months or more later. In addition, Lykos had aligned with the FDA in the Special Protocol Assessment ("SPA") in 2017 on a variety of bias minimization measures in the study design. Prior MDMA use among participants was not previously viewed as detrimental. As an example, nearly 30% of participants in Lykos' Phase 2 studies reported prior use, which was shared with FDA before establishing the inclusion and exclusion criteria in the Phase 3 trial design.

The Advisory Committee panelists also raised psychotherapy as a concern, with some recommending to further characterize the extent to which psychotherapy contributes to treatment benefit and if it is even necessary. Lykos acknowledges that midomafetamine-assisted therapy represents a novel combination of drug and therapy that raises unique research questions and will continue to engage the FDA as appropriate on these challenges. Lykos remains committed to continuing development of this integrated approach. Lykos will work diligently in the coming months to address FDA's concerns and to take advantage of agency processes to resolve scientific disagreements. Following the FDA meeting, Lykos expects to provide an update on next steps for the resubmission. - Source TradeTheNews.com

FT : Does Europe need Chinese wind technology to meet climate goals?

Does Europe need Chinese wind technology to meet climate goals?
Some say Beijing groups are needed to hit emissions targets while others accuse them of benefiting from unfair subsidies

On a patch of land in northern Serbia, the development of one of Europe’s largest wind farms is a sign of the region’s efforts to meet clean energy targets. Yet the decision to pick a Chinese company to supply the turbines has caused alarm among domestic rivals.

Some fear Italy’s Fintel Energia’s use of Zhejiang Windey to supply turbines for the Maestrale Ring wind farm is part of a growing trend that threatens to repeat problems in Europe’s solar industry, where Chinese companies have undercut domestic groups on price, forcing many to collapse.

Although Chinese manufacturers account for just a fraction of Europe’s €57.2bn wind energy market, Brussels has launched an investigation into whether Beijing groups are using unfair state subsidies to slash prices to create a competitive advantage.

In April, EU competition commissioner Margrethe Vestager accused China of repeating the “playbook” in the wider clean technology sector, including big subsidies, that it has used to dominate the solar panel industry.

Pierre Tardieu, chief policy officer at trade group WindEurope that represents 550 renewable groups in the region, fears a “tipping point” where Chinese companies start to dominate the European turbine market, currently led by Denmark’s Vestas and Germany’s Siemens Gamesa.

“We believe very strongly that this would be very, very bad news for the European wind market and the European economy in general,” he added.

WindEurope, whose members include the region’s big turbine manufacturers, claim Chinese manufacturers are offering prices 40-50 per cent lower than European rivals and allowing developers to defer payments. It argues these prices are not possible without unfair public subsidies.

Last month, German asset manager Luxcara picked Mingyang, China’s fourth largest wind turbine maker by market share in 2023, as its preferred supplier of turbines for an offshore wind project.

Holger Matthiesen, Luxcara project director, said the models were “the world’s most powerful” and the deal would help the company “expedite Germany’s energy transition”.

In the UK, Swedish clean technology group Hexicon also chose Mingyang as its preferred supplier for its planned floating offshore wind project.

Other company bosses admit cheaper prices could persuade them to switch to Chinese suppliers.

“We don’t have any Chinese turbines, but if prices stay at these levels, I think you will start seeing more companies using them,” said Miguel Stilwell d’Andrade, chief executive of Portugal’s wind developer EDP, which is 21 per cent owned by China’s Three Gorges Power Corporation. “We will also consider them if they are more competitive.”

Ignacio Galán, chief executive of Spanish utility Iberdrola, added that the company tends to focus on local suppliers, but if Chinese manufacturers “are making reliable and competitive turbines, we would be ready to consider them as potential suppliers”.


In addition, analysts at Aegir Insights say a planned 250-megawatt floating offshore wind farm off the coast of Brittany, France, might not be feasible without cheaper turbines, likely to be Chinese or produced outside Europe. 

However, the Chinese have a long way to go to catch up with their European rivals. Leading turbine producers Goldwind and Windey accounted for just 1 per cent of market share in Europe last year, according to the Global Wind Energy Council (GWEC).

Mads Nipper, chief executive of Danish wind and solar farm developer Ørsted, played down concerns of a Chinese threat to home turbine producers, when he told the Financial Times earlier this year that it was unlikely they would win significant market share in western Europe. 

The Chinese Chamber of Commerce in the EU (CCCEU) insists that “technological competition and intense competition, not state subsidies, drive Chinese companies’ competitiveness”. It added that the EU’s investigation into Chinese subsidies has triggered “profound dissatisfaction and concern”.

China’s Zhejiang Windey backed the chamber, saying there were no “unfair and implicit state subsidies”.

It added: “We also call for a fair, open and transparent wind market without being manipulated by any single party. We just want to contribute to the global energy transition, with our experience and technology.”


GWEC, which has Chinese companies including Zhejiang Windey and Mingyang among its membership, agreed that maintaining “fair and transparent trade practices” was important in the face of measures launched by the EU to protect clean technology jobs against exports from Beijing.

The measures, which include the EU’s subsidies probe, have stoked worries that without Chinese technology the region could miss targets on carbon emissions. The EU has set tough climate targets that it estimates could cost €1.5tn per year in investment. 

“If we in Europe follow a reshoring agenda, with import substitution and domestic manufacturing targets, we risk [ . . .] slowing down the energy transition in Europe as everything would become a little bit more expensive,” said Simone Tagliapietra, a senior fellow at the think-tank Bruegel. 

“Instead of going against gravity and beating the Chinese or trying to compete with the Chinese on the economies of scale they’ve built, we would be better to focus on an innovation-driven industrial policy.”

Jonathan Cole, chair of GWEC but speaking in his capacity as chief executive of global wind developer Corio Generation, agreed. Shutting out Chinese businesses from the global supply chain would “significantly hinder” the ability to hit decarbonisation targets, he said.  

“Positive fiscal policy designed to stimulate the growth of local supply chains is more likely to help meet our targets than a policy designed to discourage or exclude foreign suppliers,” he added. 

Some European politicians also caution against too many barriers to Chinese companies. “We want cheap and fast and domestic production. We can only have two of those three. We should make a tactical choice,” said a senior EU diplomat. 

FT : Chair of Indian regulator invested in funds linked to Adani, alleges Hinden

Chair of Indian regulator invested in funds linked to Adani, alleges Hindenburg Research
Madhabi Buch and her husband deny claims she is biased and say their finances are an ‘open book’

The chair of India’s capital markets regulator held stakes in an offshore fund structure used by Vinod Adani, holding the agency back in investigating fraud charges against the powerful eponymous conglomerate run by his billionaire brother, according to fresh allegations levelled by US short seller Hindenburg Research.

Madhabi Buch, head of the Securities and Exchange Board of India, and her husband had “hidden” holdings in Bermuda and Mauritius entities also drawn upon by the older brother of Adani Group founder Gautam Adani, Hindenburg Research said in a post late on Saturday, citing leaked documents in its possession.

In a statement, the couple said that they “strongly deny the baseless allegations and insinuations made in the report”.

The latest allegations weer made 18 months after Hindenburg first accused Adani’s infrastructure-focused empire of corporate fraud and detailed a web of offshore funds it said were used to evade minimum shareholder listing rules. At the time, it prompted a meltdown across the conglomerate’s listed companies and erased $140bn in market value.

Sebi has yet to make public findings from multiple long-running probes into the Adani Group after India’s Supreme Court in January ordered it to wind up the investigations within three months. In June, Sebi said Hindenburg had “indulged in unfair trade practices” in its bet against the Adani Group and had “deliberately sensationalised and distorted certain facts”.

Hindenburg, making reference to previous Financial Times reporting on Adani’s links to offshore vehicles, said it suspected the alleged fund holdings by Buch — a former chief executive at India’s ICICI Securities who has chaired Sebi since 2022 — were reasons for the regulator’s “unwillingness to take meaningful action” against Adani’s offshore shareholders.

“We do not think Sebi can be trusted as an objective arbiter in the Adani matter,” Hindenburg said.

The couple first made the investments in 2015, two years before Buch joined Sebi, according to Hindenburg. The short seller also questioned Buch’s promotion of real estate investment trusts without disclosing her husband Dhaval’s advisory role with Blackstone, which has sponsored Indian Reits.

“Our life and finances are an open book,” the couple said in response to the allegations. “All disclosures as required have already been furnished to Sebi over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens.”

Adani Group and Blackstone did not immediately respond to a request for comment outside regular business hours, but the conglomerate and its tycoon owner have strenuously and repeatedly denied any wrongdoing.

The renewed scrutiny raised by Hindenburg comes at an awkward time for Adani, which has mounted renewed expansion efforts at home and abroad, and is in the midst of its first share sales since scrapping a $2.4bn raise last year after the short seller’s initial barrage.

That first Hindenburg report into Adani was also used by India’s opposition as a line of attack against Prime Minister Narendra Modi, particularly ahead of this year’s elections, due to his perceived closeness to the tycoon and alleged favouritism, which both have played down and denied.

Jairam Ramesh, a spokesperson for the opposition Indian National Congress, said that it was “shocking that Buch would have a financial stake in these same funds” that were alleged to have amassed “large stakes in Adani Group companies in violation of Sebi regulations”.

Ramesh added that it also raised “fresh questions” about Buch’s two meetings with Gautam Adani in 2022 shortly after she was appointed chair of the market regulator.