LA Lettre A : Orpea : les négos échouent cette nuit malgré une offre de la CDC r

Orpea : les négos échouent cette nuit malgré une offre de la CDC remontée à 1,2 milliard

Alerte publiée le 19/01/23 à 11h00 - La Caisse des dépôts a proposé d'apporter non plus 700 millions, mais 1,2 milliard d'euros au leader des maisons de retraite pour en prendre le contrôle. Mais cette entrée fracassante n'a pas suffi à satisfaire les créanciers dans une négociation qui s'est poursuivie tard dans la nuit. La direction d'Orpea est pourtant confiante d'aboutir bientôt à un accord.

Les négociations entre la Caisse des dépôts et les grands créanciers d'Orpea, comme Carmignac ou encore le fonds Boussard & Gavaudan, ont traîné jusqu'à quatre heures du matin dans la nuit de mercredi 18 à jeudi 19 janvier. L'administratrice judiciaire Hélène Bourbouloux, chargée de la conciliation, avait proposé la date butoir du 20 janvier pour aboutir à un accord. Il faudra donc quelques jours encore pour le conclure, car les discussions ont achoppé au petit matin.

La Caisse des dépôts, dont l'entrée au capital est ardemment souhaitée par la nouvelle direction d'Orpea, son président Guillaume Pepy en tête, a pourtant fait un pas de géant. Alors qu'elle proposait d'apporter 700 millions d'euros au capital du spécialiste des maisons de retraite la semaine dernière, ses représentants ont mis cette nuit 1,2 milliard d'euros sur la table des négociations. Cela représente 80 % des 1,5 milliard d'euros nécessaires à la recapitalisation. Avec cette somme, l'institution financière publique, déjà investie dans le secteur du grand âge, espère obtenir la majorité des sièges au conseil d'administration et près de 50 % du capital.

Avidité des créanciers
Mais les "guns" - comme l'on surnomme les créanciers qui détiennent plus de 3 milliards sur les 9 milliards de dettes du groupe -, ne l'entendent pas de cette oreille. Cette nuit, leur créance aurait pu être rachetée 50 % au-dessus de la valeur moyenne à laquelle ils sont entrés. Pas encore assez selon eux. Ils étaient aussi prêts à abonder des 300 millions d'euros nécessaires pour aboutir au 1,5 milliard de recapitalisation souhaitée par Orpea. Mais en exigeant un taux d'intérêt de 9 %.

Cette avidité aurait suscité la colère des représentants de la CDC. Leurs représentants rappellent à longueur d'articles de presse qu'ils veulent revenir à des pratiques éthiques et embaucher du personnel pour que le ratio d'encadrement des résidents passe de 6 à environ 8 personnels soignants pour 10 personnes âgées dépendantes. Si cette manche semble donc perdue, elle indique que la fin de la conciliation approche. Guillaume Pepy et le directeur général d'Orpea, Laurent Guillot, semblent rester très confiants.

La Lettre A : LVMH cherche le successeur de Sidney Toledano pour diriger ses mar

LVMH cherche le successeur de Sidney Toledano pour diriger ses marques de mode
Après les nominations de Pietro Beccari chez Louis Vuitton et de Delphine Arnault chez Dior, le prochain départ en retraite, encore officieux, de Sidney Toledano devrait faire de la place à la tête du Fashion Group, le pôle qui regroupe les marques de mode de l'empire Arnault. Mais encore faut-il lui trouver un remplaçant.

Le grand jeu de chaises musicales n'est sans doute pas totalement terminé chez LVMH (LLA du 12/01/23). Selon nos informations, Sidney Toledano a fait part récemment à son patron Bernard Arnault de son souhait de prendre sa retraite. Depuis 2018, cette figure du géant du luxe occupe le poste de PDG de LVMH Fashion Group, un pôle qui regroupe toutes les marques de mode du groupe (Céline, Givenchy, Loewe, Pucci, Kenzo, Marc Jacobs ou encore Patou) à l'exclusion de Dior et Louis Vuitton. Mais ce départ encore officieux pose la question de son remplacement, loin d'être évident. Ce qui pourrait l'obliger à jouer les prolongations.

Le 9 décembre dernier, Sidney Toledano avait déjà été remplacé à la présidence de Christian Dior SE par le fils du patron, Antoine Arnault, promu à ce poste honorifique, en plus de ses fonctions chez Berluti, Loro Piana et à la communication, dans le cadre du passage de témoin progressif entre Bernard Arnault et ses enfants. Le communiqué du groupe expliquait alors : "Sidney Toledano a fait part de son souhait de quitter la direction générale." Mais ce qui pouvait ressembler à une formule de politesse, pour ne pas dire qu'il avait tout simplement été remplacé par le fiston, se comprend aujourd'hui aussi comme un désengagement graduel de ce fidèle lieutenant.

Mentor de Delphine Arnault
Entré dans le groupe en 1994, cet élégant centralien de 71 ans a surtout marqué la maison Dior, dont il est resté le PDG pendant vingt ans, de 1998 à 2018. Il y a notamment lancé Dior Homme avec le directeur artistique Hedi Slimane, ou encore géré la crise provoquée en 2011 par les propos antisémites du responsable des collections femme John Galliano, démis de ses fonctions par la suite. Il a aussi contribué à former l'héritière, Delphine Arnault, qui vient de prendre le poste de PDG de Dior (LLA du 12/01/23).

Aujourd'hui à la tête du LVMH Fashion Group, Sidney Toledano use de diplomatie et de conseils pour orchestrer la stratégie des présidents directeurs généraux des différentes griffes de mode. Celles qui décollent comme Céline ou Loewe, mais aussi celles qui restent à la traîne, comme Kenzo et surtout Givenchy. Pour lui succéder, le nom de Michael Burke circule. Le PDG de Louis Vuitton, qui vient de laisser son fauteuil à un autre baron, Pietro Beccari, est un fidèle d'entre les fidèles. Il s'est mis en retrait temporairement pour des raisons familiales. Mais pas sûr qu'un tel poste lui suffise à moyen terme, d'autant que ce Franco-Américain aime avoir le contrôle direct sur l'opérationnel.

Autre homme fort du groupe, même s'il évolue davantage dans l'ombre, Serge Brunswick pourrait lui aussi être envisagé. L'actuel PDG de Fendi est très proche de Sidney Toledano pour avoir notamment dirigé Dior Homme de 2015 à 2018. Rien n'est encore décidé pour le moment au dernier étage du 22, avenue Montaigne.

Sidney Toledano va donc continuer à siéger au premier rang des défilés pour quelque temps encore. D'autant que sa retraite sera toute relative. Ce membre du comité exécutif de la Fédération de la haute couture et de la mode vient en effet d'être nommé président de l'Institut français de la mode (IFM) en juin 2022 et président de la Chambre syndicale de la haute couture, en novembre. De quoi continuer à prodiguer ses conseils aux débutants dans le métier.

(ZH) Hunter Biden Lived In Classified Doc House While Raking In Millions Through

Hunter Biden Lived In Classified Doc House While Raking In Millions Through Chinese Intelligence Ties

National security concerns over Joe Biden's classified document scandal just got worse, as two reports have emerged which place Hunter Biden at the Bidens' Wilmington, Delaware residence while he was raking in millions of dollars from CCP-linked business dealings.
First, Seamus Bruner (researcher for legendary bombshell-dropper Peter Schweizer), reports via Breitbart News, that "While addicted to drugs, cavorting with prostitutes, and making deals with businessmen tied to the highest levels of Chinese intelligence, Hunter Biden lived in the house where Joe Biden stored classified documents."
While filling out a background check, Hunter made a crackhead error and listed his 'rent' as $49,910 - when in fact that's the amount of the security deposit and 6 months of rent for prime office space at the prestigious House of Sweden in Washington DC. What's most interesting, however, is that the dates Hunter listed as living at the Wilmington, DE residence - as claimed on other documents and financial statements - overlap with the period in which multiple Biden family members were taking money from foreign businessmen with connections at the highest levels of Chinese state intelligence services through energy company CEFC. As Bruner further notes, CNN described CEFC as a state-directed entity in 2018.
CEFC, and at least four of its executives and associates - Ye Jianming, Patrick Ho, Gongwen Dong and Jiaqi Bao, have been linked to the CCP and its military intelligence apparatus. In one case, Hunter described Patrick Ho as "the fncking spy chief of China."
CEFC Chairman Ye Jianming (Photo: CEFC)
More via Breitbart,
By early 2017, Hunter was directly corresponding with CEFC personnel and flew to Miami in February of that year to meet with CEFC Chairman Ye Jianming. During this trip, Ye Jianming gave Hunter a 3.16 carat diamond valued at approximately $80,000..
When Hunter’s ex-wife discovered that he had obtained something of such immense value, she had her divorce attorney send an “Urgent” email seeking to determine the whereabouts of the diamond and secure the asset before Hunter could “dissipate” it. Hunter’s attorney offered a shady denial:
"There is no diamond in Hunter’s possession. I don’t know where Kathleen is getting access to this information, but on this score, what your email purports below is inaccurate."
Metadata gleaned from photos of the diamond on the abandoned laptop indicate that Hunter lied about not having the diamond and he in fact had the diamond with him in Wilmington. The current location of the 3.16 carat diamond remains unknown
After the fateful February 2017 meeting with Ye, and around the time Hunter claimed to have moved into the Wilmington house where classified documents were found, the Bidens’ business with CEFC exploded.
Nine days after Miami meeting, Hunter received two separate wire transfers of $3 million which the Department of Treasury’s Financial Crimes Enforcement Network flagged as suspicious.
We encourage you to read the rest of the Breitbart report here, as it goes into extensive detail.
Second, the Washington Free Beacon reports that photos from Hunter Biden's abandoned laptop place him at the Wilmington House in July, 2017. Of note, the classified documents were reportedly brought to the house in January of that year.
The photos 'are the most concrete evidence to date' that Hunter - who was actively negotiating a deal with a CCP-linked Chinese energy company - had access to areas of his father's home where classified documents were stored.
A Washington Free Beacon review of the laptop found four 2017 photographs of Hunter Biden, clad in a white collared shirt and a camouflage baseball cap, behind the wheel of his father's 1967 Corvette Stingray. GPS metadata embedded in the photos indicate they were taken within a minute of each other at 6:49 p.m. on July 30 of that year, just outside the president's Wilmington, Del., residence. The photos show Hunter Biden posing in the vehicle beside two young girls. One appears to be his then-12-year-old niece, Natalie Biden. The other could not be identified.
Former Secret Service agent and certified cyber forensics expert, Konstantinos Gus Dimitrelos, analyzed the photos and confirmed their authenticity.
"If requested, I will testify the photographs are genuine and were taken on July 30, 2017," he told the Free Beacon.
And as the Beacon further reports - corroborating Breitbart's reporting, "At the time the photos were taken, Hunter Biden was negotiating a lucrative business deal with the now-defunct Chinese energy conglomerate CEFC, which was closely tied to the Chinese government. Biden's former business partner Tony Bobulinski claimed to have met with Joe Biden in person in early May 2017—less than three months before Hunter Biden was pictured taking the wheel of his father's prized vehicle—to discuss the Biden family's Chinese business dealings."
In total, CEFC paid Hunter Biden $6 million in legal and consulting fees in 2017 and 2018.
And of course, the same media which suggested the Trumps were Russian operatives based on a hoax - are virtually silent at actual risks to national security posed by the Biden family.

WSJ : Little-Known Surveillance Program Captures Money Transfers Between U.S. an

Little-Known Surveillance Program Captures Money Transfers Between U.S. and More Than 20 Countries
Law-enforcement agencies across the U.S. have direct access to over 150 million transactions housed at an Arizona nonprofit

WASHINGTON—Hundreds of federal, state and local U.S. law-enforcement agencies have access without court oversight to a database of more than 150 million money transfers between people in the U.S. and in more than 20 countries, according to internal program documents and an investigation by Sen. Ron Wyden.

The database, housed at a little-known nonprofit called the Transaction Record Analysis Center, or TRAC, was set up by the Arizona state attorney general’s office in 2014 as part of a settlement reached with Western Union to combat cross-border trafficking of drugs and people from Mexico. It has since expanded to allow officials of more than 600 law-enforcement entities—from federal agencies such as the Federal Bureau of Investigation, the Drug Enforcement Administration, and Immigration and Customs Enforcement to small-town police departments in nearly every state—to monitor the flow of funds through money services between the U.S. and countries around the world.

TRAC’s data includes the full names of the sender and recipient as well as the transaction amount. Rich Lebel, TRAC’s director, said the program has directly resulted in hundreds of leads and busts involving drug cartels and other criminals seeking to launder money, and has revealed patterns of money flow that help law-enforcement agencies get a broader grasp on smuggling networks.

“It’s a law-enforcement investigative tool,” Mr. Lebel said. “We don’t broadcast it to the world, but we don’t run from or hide from it either.”

After this article was published, a spokesman for the Arizona attorney general said: “Courts have held that customers using money transmitter businesses do not have the same expectation of privacy as traditional banking customers.”

Mr. Wyden, an Oregon Democrat, said TRAC allows the government to “serve itself an all-you-can-eat buffet of Americans’ personal financial data while bypassing the normal protections for Americans’ privacy.”

Internal records, including TRAC meeting minutes and copies of 140 subpoenas from the Arizona attorney general, were obtained by the American Civil Liberties Union and reviewed by The Wall Street Journal. They show that any authorized law-enforcement agency can query the data without a warrant to examine the transactions of people inside the U.S. for evidence of money laundering and other crimes. One slideshow prepared by a TRAC investigator showed how the program’s data could be used to scan for categories such as “Middle Eastern/Arabic names” in bulk transaction records.

“Ordinary people’s private financial records are being siphoned indiscriminately into a massive database, with access given to virtually any cop who wants it,” Nathan Freed Wessler, deputy director of the ACLU’s Speech, Privacy, and Technology Project, said. “This program should never have been launched, and it must be shut down now.”

To obtain material such as bank records or emails, law enforcement typically needs to show that documents are relevant to an investigation and secure them through a subpoena or a warrant.

TRAC captures money transfers occurring through companies such as Western Union, MoneyGram, DolEx and Euronet through its Ria brand. These services are used by millions of people—especially those without bank accounts—to transfer funds between friends and family. They are an especially popular way for Mexican migrants to remit money earned in the U.S. to family members across the border.

Money-services companies are more loosely regulated than banks, often at the state level. Under federal regulations, banks must monitor transactions for suspicious activity, report those over $10,000 in cash and conduct due diligence on customers. Congress also requires federal agencies to get a subpoena for bank records and notify customers when their records are being seized.

Money-services companies have drawn scrutiny from law enforcement over the years because of concerns about terrorist financing, drug smuggling and other illicit activities. Customers using money-services companies such as Western Union and MoneyGram aren’t told that their transactions will be available to government entities.

Mr. Lebel said that because money-services companies don’t have the same know-your-customer rules as banks, bulk data needs to be captured to discern patterns of fraud and money laundering. He said TRAC put a $500 minimum threshold in place to avoid collecting the overwhelming majority of family remittances back to Mexico and other countries, which typically fall below that threshold.

Mr. Wyden determined last year that the federal government participated in TRAC, and specifically that Homeland Security Investigations, an arm of the U.S. Immigration and Customs Enforcement, used customs summonses, a type of subpoena, to collect about six million records of money transfers from Western Union and Maxitransfers since 2019. All those records ended up stored in the TRAC system, Mr. Wyden said.

“The scope of this surveillance program and federal agencies’ role is far greater than initially revealed,” Mr. Wyden said this week in a letter asking the Justice Department inspector general to investigate the FBI and DEA’s relationship with the program.

The Department of Homeland Security watchdog informed Mr. Wyden’s office last year that it was reviewing the activities of ICE’s investigative arm to combat drug trafficking in response to his questions about TRAC. ICE didn’t respond to a request for comment.

>>> Europe : Brokers Upgrades & Downgrades - 19th of January 2023 V2(+)

>>> Up
* Accor Raised to Equal-Weight at Barclays; PT 29 euros
* Auto Trader Raised to Buy at Goldman; PT 749 pence
* Believe Raised to Buy at Goldman; PT 15.50 euros
* Electrolux Professional Raised to Buy at SEB Equities
* Gecina Raised to Buy at Deutsche Bank; PT 120 euros
* Heineken Raised to Sector Perform at RBC; PT 91 euros
* Hypoport Raised to Buy at Hauck & Aufhaeuser; PT 195 euros (+)
* Instone Real Estate Raised to Buy at Deutsche Bank; PT 11 euros
* JCDecaux Raised to Neutral at Goldman; PT 21.90 euros
* Klepierre Raised to Buy at Deutsche Bank; PT 25 euros
* Lindab Raised to Buy at Handelsbanken
* Novozymes Raised to Buy at SEB Equities; PT 440 kroner
* Philip Morris Raised to Buy at Jefferies; PT $118
* Restaurant Group Raised to Buy at N+1 Singer; PT 60 pence
* SYMRISE RAISED TO BUY VS HOLD AT BERENBERG, PT EU124
* WPP Raised to Buy at Goldman; PT 1,158 pence

>>> Down
* Adidas Cut to Neutral at Baird; PT 145 euros
* Allfunds Cut to Hold at HSBC; PT 8.50 euros
* Andritz Cut to Neutral at Exane; PT 63 euros
* AUTO1 Cut to Neutral at Goldman; PT 10.60 euros
* Encavis Cut to Hold at Stifel; PT 17.80 euros
* Eni Cut to Neutral at JPMorgan; PT 18 euros
* Equinor Cut to Underweight at JPMorgan; PT 290 kroner
* Esker Cut to Hold at Stifel; PT 175 euros
* Fnac Darty Cut to Hold at HSBC; PT 38 euros
* Givaudan Cut to Neutral at BofA (+)
* JTC PLC Cut to Hold at N+1 Singer; PT 823 pence
* Kingspan Cut to Neutral at On Field; PT 69 euros
* Kuehne + Nagel Cut to Neutral at Exane; PT 226 Swiss francs
* Metso Outotec Cut to Hold at Pareto Securities; PT 11 euros
* OMV Cut to Underweight at JPMorgan; PT 48 euros
* Orsted Cut to Neutral at Oddo BHF (+)
* Prosus Cut to Hold at HSBC; PT 80 euros
* RELX Cut to Neutral at Goldman; PT 2,863 pence
* Renault Cut to Hold at HSBC; PT 42.50 euros
* Roche Cut to Sell at Deutsche Bank; PT 265 Swiss francs
* RTL Cut to Sell at Goldman; PT 38.40 euros
* SALMAR CUT TO SELL VS HOLD AT BERENBERG, PT NOK370
* SBB Cut to Sell at Nordea; PT 17 kronor (+)
* Sobi Cut to Hold at Nordea (+)
* Superdry Cut to Hold at N+1 Singer; PT 160 pence
* Symrise Cut to Neutral at BofA (+)
* Systemair Cut to Hold at Handelsbanken
* Teva ADRs Cut to Hold at Jefferies; PT $12
* Ubisoft Cut to Hold at HSBC; PT 21 euros
* Vestas Cut to Hold at Jyske Bank; PT 210 kroner (+)

>>> Initiation
* ABN AMRO GDRs Rated New Hold at ING; PT 14.80 euros
* Auction Technology Group Rated New Buy at Investec; PT 975 pence (+)
* DCC Rated New Buy at Numis; PT 6,500 pence
* Dunelm 1H Revenue Beats Estimates (+)
* Eni Rated New Outperform at Credit Suisse; PT 20 euros (+)
* GlobalData Rated New Buy at Investec; PT 1,550 pence
* Jupiter Rated New Hold at N+1 Singer; PT 140 pence
* Neste Initiated Underperform at CS on Increasing Competition (+)
* OKEA Rated New Buy at Clarksons Platou; PT 41 kroner
* Paradox Interactive Rated New Buy at Handelsbanken
* Visa Rated New Outperform at CICC; PT $267.79
* YMHRE SM Rated New Buy at JB Capital Markets; PT 4.60 euros (+)
* Young & Co's Rated New Buy at Peel Hunt; PT 1,600 pence

>>> Call
* Accor Offers More Positives Than Negatives, Barclays Upgrades
* Andritz Downgraded at Exane BNP With Catalysts Now Played Out
* Barclays, DB Well-Positioned Given US Earnings, Berenberg says (+)
* Boohoo Vulnerable to Further Market Share Loss, RBC Says (+)
* DCC Shares Look Materially Undervalued, Numis Initiates at Buy (+)
* Heineken Upgraded as RBC Sees Brewers Catching Up With Spirits
* Hotel Chocolat Sees ‘Outstanding’ Peak Trading, Liberum Says (+)
* Philip Morris Raised, Like BAT, Altria in Tobacco: Jefferies
* Premier Foods Delivered Material Acceleration in 3Q: Peel Hunt (+)
* Unilever a Top Food Industry Pick at Berenberg, Symrise Upgraded
* Zur Rose’s FY Results Point to ‘Unpalatable’ Options, Says Citi (+)

>>> Stoxx 600 Pre-Market Indications

  • Vodafone (VODI TH) +0.7%
  • Adidas (ADS TH) -1.8%
    • Adidas Cut to Neutral at Baird; PT 145 euros
  • ArcelorMittal (ARRD TH) -2%
    • Watch Europe Miners as BHP Upbeat on China, Base Metals Retreat
  • Delivery Hero (DHER TH) -2%
  • Thyssenkrupp (TKA TH) -2.1%
  • Voestalpine (VAS TH) -2.2%
    • Watch Europe Miners as BHP Upbeat on China, Base Metals Retreat
  • Evotec SE (EVT TH) -2.3%
  • Vestas (VWSB TH) -2.5%
    • Vestas Cut to Hold at Jyske Bank; PT 210 kroner
  • Antofagasta (FG1 TH) -2.7%
  • Encavis (ECV TH) -3.7%
    • Encavis Cut to Hold at Stifel; PT 17.80 euros
  • Salmar (JEP TH) -4%
    • Salmar Cut to Sell vs Hold at Berenberg, PT NOK370

WSJ : Berlin Won’t Allow Exports of German Tanks to Ukraine Unless U.S. Sends It

Berlin Won’t Allow Exports of German Tanks to Ukraine Unless U.S. Sends Its Own
North Atlantic Treaty Organization allies have over 2,000 German-made Leopard tanks

BERLIN—Germany won’t allow allies to ship German-made tanks to Ukraine to help its defense against Russia nor send its own systems unless the U.S. agrees to send American-made battle tanks, senior German officials said on Wednesday.

North Atlantic Treaty Organization allies have over 2,000 German-made Leopard tanks, considered to be among the most sophisticated in the world, according to the London-based International Institute for Strategic Studies.

Several European governments have said they are ready to send German-made tanks to Ukraine, including Poland, Finland and Denmark, if they get approval from Berlin, though none has made a formal request. Britain has said it would send 14 of its Challenger 2 main battle tanks, an older equivalent to the Leopard.

“One can’t differentiate between direct exports (of German-made tanks) and exports by third countries,” a senior German official said Wednesday.

But the U.S. is “not there yet” when it comes to giving Abrams tanks to Ukraine, Colin Kahl, the Undersecretary of Defense for Policy, the No. 3 at the Pentagon, told reporters on Wednesday.

“The Abrams tank is very complicated, It’s expensive. It’s hard to train on. It has a jet engine…It is not the easiest system to maintain,” Dr. Kahl said. While he didn’t directly address Germany’s call for the U.S. to provide tanks, he said the Pentagon doesn’t want to give Ukrainians equipment “they can’t repair, they can’t sustain and they over the long term can’t afford.”

“This isn’t about the news cycle or what’s symbolically valuable. It’s what will actually help Ukraine,” Dr. Kahl said.

But the U.S. remains hopeful it can persuade Germany to greenlight the tanks. Defense Secretary Lloyd Austin arrived in Berlin Wednesday to meet with his counterpart in Germany, Boris Pistorius, who was named to the post on Tuesday following the resignation of the previous defense minister, Christine Lambrecht.

U.S. officials believe the Leopard tanks can help Ukraine confront the moment it is facing now—a Russian offensive that is anticipated to begin soon.

“That’s why we are looking at modern, mechanized armored capabilities, and that’s why the focus on tanks, and Germany is the key to that capability because the most immediate need, the most accessible, useful capability are the Leopards,” said a senior U.S. defense official.

“We are very optimistic that we will make progress on this requirement by the end of the week,” the official said. It was unclear if the U.S. official was aware of the German position regarding American tanks.

The export of significant numbers of modern, Western-made tanks—something the U.S. and Ukraine’s European allies have long resisted—would mark a notable escalation in Western support for Kyiv. Berlin has long been concerned that such a step could drag the country into a direct confrontation with Russia.

German Chancellor Olaf Scholz said on Wednesday that Germany was “strategically interlocked” with friends and partners when it came to making decisions on how to support Ukraine, including with tanks.

By deferring to Washington, Mr. Scholz is now adding pressure on President Biden to authorize the export of Abrams tanks to Kyiv, the closest U.S. equivalent to the Leopard.

NATO Secretary-General Jens Stoltenberg said on Wednesday the war has entered a pivotal phase and NATO allies need to provide more heavy weaponry, particularly tanks, to Ukraine.

Mr. Stoltenberg said in an interview at the World Economic Forum in Davos, Switzerland, that he is looking for “more announcements of modern and heavier weapons,” following moves by the U.K., France and Canada in recent days to provide additional armored vehicles. But for Ukraine to prevail, Kyiv will require more than what has already been committed, he added.

“It means more armored vehicles,” he said. “It means battle tanks as we’ve seen U.K. and France have already announced.” It also means more advanced air-defense systems, he said.

France said recently it would ship AMX-10 wheeled armored vehicles to Ukraine. The vehicle resembles a small tank with wheels and is referred to as a “tank killer” because it fires shells that can pierce tanks’ armor and destroy them.

Key supporters of Ukraine from 50 nations, known as the Ukraine Defense Contact Group, plan to meet at the U.S.’s Ramstein Air Base in Germany on Friday to agree on a substantial new package of military aid to Kyiv.

Diplomats from several NATO countries said that the issue of sending Leopards—including Germany’s approval for third-country exports to Ukraine—would be one of the key topics at the meeting.

Mr. Scholz’s government hasn’t received any such requests, several officials said, but when it does, it said it would respond swiftly. The interagency process of approval could take anything from a few days to a few weeks, officials said.

Germany, like many arms-making countries, requires buyers to seek its governmental approval before exporting its military equipment to a third nation.

Some European diplomats had hoped that Germany would signal at the Friday meeting that it would permit allies to send German-made Leopard tanks to Ukraine. However a senior European official said that Germany was unlikely to make a decision on Friday and that it would likely take longer.

There are two main types of German main battle tanks: Leopard 1, designed in the 1960s, and the much-improved model Leopard 2. Germany itself has only about 15 Leopard 2 tanks it could ship to Ukraine on short notice, officials said.

Mr. Scholz’s government is divided on the issue: His coalition partners, the Green Party and the Free Democrats favor sending tanks to Ukraine, while many in the chancellor’s left-leaning Social Democrats—including himself—have long been reluctant, especially as long as the U.S. refuses to send its own Abrams tanks.

In April, Mr. Scholz suggested sending any Western tanks to Ukraine would increase the risk of a nuclear war between NATO and Russia.

His concerns have since subsided, two aides said, also because a broad, global group of countries including allies to President Vladimir Putin such as Xi Jinping of China, condemned the threats of using nuclear weapons in Ukraine.

Yet Mr. Scholz remains cautious. Asked on Wednesday why he was hesitating to send Leopard tanks to Kyiv, Mr. Scholz told the World Economic Forum that he was concerned about the Ukraine conflict becoming a global conflagration.

“The Ukrainians can rely on our support in their courageous fight but it is also clear that we want to avoid this becoming a war between Russia and NATO,” Mr. Scholz said.

>>> TradeGate Pre-Market Indications

DAX:
  • SAP (SAP TH) -0.9%
  • Deutsche Bank (DBK TH) -1%
  • BASF (BAS TH) -1.1%
  • Henkel (HEN3 TH) -1.2%
  • Adidas (ADS TH) -1.9%
    • Adidas Cut to Neutral at Baird; PT 145 euros
MDAX:
  • TeamViewer (TMV TH) -1.4%
  • ProSieben (PSM TH) -1.5%
  • Thyssenkrupp (TKA TH) -1.8%
  • RTL (RRTL TH) -1.9%
  • Encavis (ECV TH) -3.7%
    • Encavis Cut to Hold at Stifel; PT 17.80 euros
SDAX:
  • Hensoldt (HAG TH) +1.4%
  • SUSE (SUSE TH) +0.9%
    • SUSE FY Adjusted Ebitda Misses Estimates
  • Eckert & Ziegler (EUZ TH) -1.4%
  • flatexDEGIRO (FTK TH) -1.6%
  • Salzgitter (SZG TH) -2.1%
  • AUTO1 (AG1 TH) -3.1%
    • AUTO1 Cut to Neutral at Goldman; PT 10.60 euros
  • Heidelberger Druck (HDD TH) -3.3%

WSJ : Crypto Platform Bitzlato Charged With Laundering More Than $700 Million of

Crypto Platform Bitzlato Charged With Laundering More Than $700 Million of Illicit Money
Treasury Department also designates platform as a primary money-laundering concern, a rarely used sanction used mostly against banks

U.S. authorities designated cryptocurrency exchange Bitzlato Ltd. as a primary money-laundering concern and charged its founder for allegedly facilitating money laundering for criminals.

The Treasury Department designated Bitzlato under a section of the USA Patriot Act, a law used to combat money laundering and terrorist financing, for allegedly laundering illicit funds for ransomware actors based in Russia. This type of action, a rarely used so-called death-knell sanction that cuts off the entity from the U.S. financial system, has been used mainly in the past against banks and other financial institutions and in most cases has forced the institution to close.

Bitzlato, which is based in Hong Kong but operates globally, allegedly exchanged more than $700 million in cryptocurrency with Hydra Market, a darknet marketplace that was the largest in the world before it was shut down in April 2022, the U.S. Justice Department said. Bitzlato also received more than $15 million of ransomware proceeds, the Justice Department said.

Anatoly Legkodymov, the founder and majority owner of Bitzlato, was arrested Tuesday night in Miami. Mr. Legkodymov is a 40-year-old Russian national who lives in Shenzhen, China, according to the Justice Department.

Joel DeFabio, a federal crime attorney in Miami, has been retained to represent Mr. Legkodymov, according to court records. Mr. DeFabio didn’t respond to a request for comment.

Mr. Legkodymov made his first appearance Wednesday at a federal court in Florida and was ordered to be detained, according to a spokesman for the U.S. Attorney’s Office for the Eastern District of New York, which brought the prosecution alongside the Justice Department in Washington. Mr. Legkodymov faces a charge of operating an illegal money-transmitting business and could get up to five years in prison if convicted, according to the Justice Department.

Concurrent with the U.S. action, French authorities have taken their own enforcement steps, including closing Bitzlato’s digital infrastructure and seizing its cryptocurrency.

U.S. prosecutors said Bitzlato lacked effective know-your-customer procedures to check users’ identity as required by U.S. anti-money-laundering laws and did substantial business with U.S.-based customers despite claiming not to accept users from the U.S.

Representatives for Bitzlato couldn’t be reached for comment. Bitzlato’s website shows that it’s been seized by French authorities.

“Today the Department of Justice dealt a significant blow to the cryptocrime ecosystem,” Deputy Attorney General Lisa Monaco said Wednesday. “Today’s actions send the clear message: Whether you break our laws from China or Europe—or abuse our financial system from a tropical island—you can expect to answer for your crimes inside a United States courtroom.”

Deputy Treasury Secretary Wally Adeyemo said authorities continue to investigate whether Bitzlato was used to help circumvent sanctions that were imposed on Russia over its invasion of Ukraine. The enforcement action should serve as a warning against the use of crypto to launder illicit funds and as a reminder that U.S. authorities are ready to act if they see it occur, he said, adding that there could be other charges against Bitzlato or its founder.

“The message [to those using crypto tools to circumvent Russia sanctions]: We will, in collaboration and coordination with our allies and with the DOJ, find you and go after you and take actions against you with the tools at our disposal,” Mr. Adeyemo said at Wednesday’s press conference announcing the enforcement action.

The Justice Department said enforcement actions imposed in recent weeks against the crypto industry have shown that investments in improving its expertise in the sector are paying off. Ms. Monaco told The Wall Street Journal last month that a surge of Justice Department resources into cryptocurrency investigations more than a year ago helped prosecutors quickly charge FTX founder Sam Bankman-Fried and the move augurs a spate of aggressive enforcement actions ahead. The Justice Department is coordinating cryptocurrency enforcement efforts through a 25-member national team, she added.

The enforcement action against Bitzlato comes as the crypto industry continues to face scrutiny following upheaval in the sector last year. U.S. prosecutors charged Mr. Bankman-Fried last month with eight counts of fraud after FTX filed for bankruptcy in November. Mr. Bankman-Fried is under house arrest at his parents’ California home as he faces federal fraud charges, to which he has pleaded not guilty.

Bitzlato was a little-known exchange before Wednesday’s action. The Financial Crimes Enforcement Network, the Treasury unit tasked with combating money laundering, said in its order against Bitzlato that the exchange “represents a limited percentage of daily” crypto transfers by U.S. and international standards.

FinCEN said that by April 2022, Bitzlato had a daily bitcoin balance that was 0.0185% of the largest U.S.-based crypto exchange. Although FinCEN didn’t name the largest exchange, Coinbase Global Inc. is ranked as the biggest in the U.S., according to research site CoinMarketCap.com.

A blog post from last year by blockchain analytics firm Chainalysis Inc. said Bitzlato received about $2 billion worth of cryptocurrency between 2019 and 2021, and nearly half of that value was considered illicit or risky.

The enforcement action against Bitzlato appears to have come as a shock to its users. Minutes after the Justice Department’s announcement, a Russian-language Telegram group for Bitzlato users filled up with complaints about the exchange’s shutdown and the U.S. authorities’ actions.

“They took Hydra, looks like Bitzlato too, the USA is squeezing Russia from all sides,” a user posting under the handle Daniel Yanson wrote in the group, which has more than 5,500 members.

Another user, with the handle Non, wrote: “Is this even legal? Let’s say the owner did launder something there. What about ordinary people?…Does the USA just take their money or what?”