WSJ : U.K. Prime Minister Theresa May Fires Defense Secretary Gavin Williamson O

U.K. Prime Minister Theresa May Fires Defense Secretary Gavin Williamson Over Huawei Leak
Leak relates to government review into using Chinese company’s equipment in U.K.’s 5G network

British Prime Minister Theresa May fired Defense Secretary Gavin Williamson on Wednesday, saying he leaked sensitive information surrounding a review into the use of equipment from China’s Huawei Technologies Co. in the U.K.’s telecoms network.

The government’s decision to use Huawei in some parts of the country’s 5G network was leaked to the press following a meeting of Britain’s National Security Council last week. The U.S. has pressed its allies to not use Huawei equipment, saying it is a security threat, an accusation the telecommunications company denies.

In a letter to Mr. Williamson, Mrs. May said a probe into the leak had led the government to conclude that he was the source of the information.

“The Prime Minister’s decision has been informed by his conduct surrounding an investigation into the circumstances of the unauthorized disclosure of information from a meeting of the National Security Council,” a government spokesman said in a statement Wednesday.

The government is set to officially announce the results of its inquiry into Huawei in due course. Mr. Williamson has been head of the defense ministry since late 2017. Before that he was a Conservative whip in Parliament.

In a letter to the prime minister, Mr. Williamson said he “strenuously denied” being the source of the leak. In her letter, Mrs. May said “no other, credible version of events to explain this leak has been identified.”

The firing comes after months of briefings to journalists from supposedly confidential cabinet meetings as Mrs. May struggles to discipline Conservative ministers. Her status as head of a minority government leaves her with little political clout over members of her own party who have been engaging in a war of words over how best to push through a Brexit deal.

After the nearly unprecedented leak from Britain’s NSC, however, the head of the civil service was ordered to investigate who was the source of the information.

Mr. Williamson took a hard line on China at the ministry of defense. In February he announced, without Mrs. May’s blessing, that a new British aircraft carrier would take its maiden voyage in the Pacific Ocean. He also talked of bulking up military bases in Asia as part of projecting Britain’s military power after Brexit.

Before his promotion to defense secretary in 2017, the 42-year-old was a close ally of Mrs. May, first helping to manage her 2016 campaign to become leader of the Conservative Party and then as the Conservatives’ chief whip in Parliament. He was known at the time as an astute political operator who kept a pet tarantula in his office.

Mrs. May recently set Mr. Williamson the task of getting the government’s Northern Irish political allies, the Democratic Unionist Party. to back her Brexit deal. The effort failed and Brexit has been delayed.

In recent months, Mr. Williamson has been one of many Conservative ministers trying to position themselves as Mrs. May’s successor. The prime minister has promised to quit if her Brexit deal passes.

The Huawei decision is a particularly delicate one for the British government. It doesn’t want to antagonize the U.S., which has repeatedly warned about an overreliance on Huawei equipment, nor alienate China, an important future commercial partner.

The decision reached at the leaked NSC meeting was for Huawei to be given access to build less-sensitive parts of Britain’s 5G telecoms network. Mrs. May has faced steep criticism from some Conservatives over the proposed move, who say it is risky. Tom Tugendhat, a Conservative lawmaker, berated Mrs. May Wednesday for allowing a Chinese “dragon to nest” in the heart of the U.K.’s telecom network.

During a hearing with lawmakers on Wednesday, Mrs. May sought to temper fears that Huawei was an extension of China’s security apparatus by saying it was owned by its employees.

The government said Penny Mordaunt, the secretary of state for international development, would succeed Mr. Williamson, becoming the country’s first female defense secretary.

>>> What to look at today - 2nd of May 2019

Stocks in Asia were mixed as investors turned to U.S.-China trade talks after Federal Reserve Chairman Jerome Powell rejected the idea that an interest-rate cut is looming in the U.S. and stuck with a neutral stance. European equity futures edged lower.
In trading depressed by holidays in Japan and China, equity benchmarks in South Korea and Hong Kong hit their highs of the session after CNBC reported that the U.S. and China could announce a trade deal as soon as next Friday, citing sources it didn’t name. The yen ticked lower against the dollar. Ten-year Treasuries ticked higher. Australia’s stocks underperformed after the nation’s biggest lender cut its dividend. On Wednesday, the S&P 500 Index posted its biggest decline in almost six weeks.
US After Hours EB -30%, WLL -10%, CREE -9%, ZNGA +9%, CAKE +4% among notable earnings/guidance movers, GMS +6.5% on S&P SmallCap 600 addition news

Nikkei Closed Hang Seng +0.64% CSI +0.33% Shanghai +0.52% Shenzen +0.68%

Eur$ 1.1200 CNH 6.7437 CNY 6.7351 JPY 111.54 GBP 1.3049 CHF 1.0182 RUB 64.8535 TRY 5.9712 WTI$ 63.29 -0.5%

S&P +0.11% EuroStoxx +0.03% FTSE -0.22% CAC -0.26% Dax +0.07% SMI -0.17%

Macro :
- U.S. Factory Gauge Falls to Two-Year Low as Orders Cool (2)

Keep an eye on :
- AC FP : Hotel Stocks Jump After Hilton’s Earnings Add to Bullish Tone
- AIR FP : Thai Air, Airbus Expected to Sign MRO Project in May: Somkid
- AMG NA : AMG Sees Ebitda Level of $350M or More in 5 Years or Less
- ANDR AV : Andritz Cuts Profitability Forecast on Metals, Pulp & Paper
- BARC LN : Staley Says Barclays Can Gain From Deutsche Bank Woes: Telegraph
- BNP FP : BNP Paribas 1Q Net Rises 22%; Fixed-Income Revenue Jumps
- CARLB DC : Carlsberg 1Q Rev. Beats Est. on Asia Growth, Keeps FY Outlook
- CCH LN : Coca-Cola HBC First Quarter Volume +3.5%
- CRA1V FH : Cramo First Quarter Net Sales 1.5% Above Estimates
- DBK GY : Deutsche Bank Said to Have Virtually No New Plan for What’s Next
- DTE GY : T-Mobile, Sprint Discuss 5G Build in Call With FCC Official
- EQN LN : Equiniti Trading Started ‘Well’; Confident of FY Expectations
- FCA IM : Fiat Chrysler April U.S. Auto Sales Fell More than Expected
- FRE GY : Fresenius Medical, Fresenius SE Confirm 2019 Forecasts
- GSK LN : Crown Labs Buys Rights to Keri From Glaxo; No Terms
- HAB GY : Hamborner REIT First Quarter Net Income EU3.6 Mln (1)
- BOSS GY : Hugo Boss First Quarter Sales At Constant Exchange Rates +1%
- ICP LN : ICG Is Said to Plan to Auction Loparex for About $600 Million
- INGA NA : ING 1Q Underl. Pretax 1.3% Below Est., Turkey Exposure Lower (1)
- ISP IM : Intesa’s Premium Valuation Unjustified, Cut to Sell: Berenberg
- LHN SW : LafargeHolcim Sells Activities in Malaysia And Singapore
- LRE LN : Lancashire First Quarter Gross Written Premiums $217.2 Mln
- LR FP : Legrand 1Q Adj. Operating Profit EU305.2m, Est. EU313.3m
- LLOY LN : Lloyds First Quarter Statutory Pretax Profit Misses Estimates
- LUPE SS : Lundin Petroleum First Quarter Ebitda 1.7% Above Estimates
- MTRO LN : Metro Bank First Quarter Net Interest Margin Drops to 1.64%
- NEX FP : Nexans First Quarter Revenue EU1.66 Bln
- OCDO LN :investors rebel against executive pay, About 25% of shareholders voting opposed remuneration policy and report - FT
- ORA FP : Orange Open to Partnership With Nokia, Bpi on Submarine Cables
- ORX SS : Orexo First Quarter Net Revenue SEK174.3 Mln
- RB/ LN : Reckitt Benckiser’s Sales Hit by Slow Flu Season Over Winter
- RTN LN : The Restaurant Group Names Andy Hornby CEO
- RNO FP : Nissan April U.S. Auto Sales Miss Estimates
- RTN LN : Andy Hornby to Be Named CEO of The Restaurant Group: Sky
- RR/ LN : Rolls-Royce Says Performance is in Line With Expectations
- RDSA LN : Shell First Quarter Adjusted Profit Beats Highest Estimate
- SAN FP : FDA Approves Sanofi’s Dengvaxia for Dengue Prevention
- SHB LN : Shaftesbury Holder Tak Lee Seeks Restitution for Alleged Loss
- SKFB SS : SKF to Cut Annual Costs in Schweinfurt, Germany, By EU100m
- SN/ LN : Smith & Nephew First Quarter Underlying Revenue +4.4%
- UHR SW : Swatch Margin Expectations Too High, Not Yet Time to Buy: RBC
- SCMN SW : Swisscom First Quarter Ebitda CHF1.12 Bln
- TNET BB : Telenet First Quarter Adjusted Ebitda Meets Estimates
- TCG LN : Thomas Cook sets May 7 deadline for interest in airline business: sources - https://reut.rs/2V5B0wG
- TNG FP : Transgene, AstraZeneca in Pact for Oncolytic Immunotherapies
- FP FP : Occidental Jet Flew to Paris After Anadarko Offer, Data Shows
- UBSG SW : UBS CEO Ermotti Says It’s His Job to Expand Asia Business: Blick
- VATN SW : Valiant First Quarter Total Client Assets CHF28.14 Bln (1)
- VIE FP : Veolia 1Q Current Net Income Rises 7%, Confirms 2019 Outlook
- VOW3 GY : VW CEO Rules Out Forced Layoffs Amid Electric Car Push, FAZ Says
- VOW3 GY : VW April U.S. Auto Sales +8.7%
- VOW3 GY : VW’s First-Quarter Earnings Drop After Porsche, Audi Sales Fall
- WALLB SS : Wallenstam First Quarter Profit After Tax SEK340.0 Mln
- ZAL GY : Zalando Reports Unexpected First Quarter Profit

>>> Europe : Brokers Upgrades & Downgrades - 1st & 2nd of May 20

>>> Up
* Almirall Upgraded to Buy at Jefferies; PT 20 Euros (Today)
* Atos Upgraded to Equal-weight at Morgan Stanley; PT 96 Euros (Today)
* Beiersdorf Upgraded to Outperform at MainFirst; PT 105 Euros
* Ceconomy Upgraded to Hold at Kepler Cheuvreux; PT 6.20 Euros (Today)
* Delivery Hero Upgraded to Overweight at JPMorgan
* DWS Upgraded to Neutral at BofAML; PT 35 Euros
* Ferrexpo Upgraded to Buy at Liberum
* Recipharm Upgraded to Buy at Handelsbanken; PT 152 Kronor (Today)

>>> Down
* Basware Downgraded to Reduce at Inderes; PT 21 Euros (Today)
* BHP Group PLC Downgraded to Neutral at Citi (today)
* Deutsche Boerse Downgraded to Hold at DZ Bank; PT 125 Euros
* Elkem Downgraded to Equal-weight at Morgan Stanley; PT 37 Kroner
* Evraz Downgraded to Sell at Goldman; PT 5.50 Pounds (Today)
* Gima TT Upgraded to Outperform at Mediobanca SpA; PT 8.50 Euros (Today)
* Intesa Downgraded to Sell at Berenberg (Today)
* Just Eat Downgraded to Underweight at JPMorgan
* Kone Downgraded to Hold at SocGen; Price Target 50 Euros (Today)
* Ossur HF Downgraded to Sell at Danske Bank Markets; PT 35 Kroner (Today)
* RBS Downgraded to Underperform at KBW; PT 2.35 Pounds|
* RWE Downgraded to Neutral at Oddo BHF; Price Target 22.40 Euros
* Securitas Downgraded to Hold at Handelsbanken; PT 170 Kronor (Today)
* Wolters Kluwer Cut to Equal-weight at Barclays; PT 65.20 Euros (Today)
* X-Fab Silicon Foundries Cut to Reduce at Oddo BHF; PT 4 Euros (Today)

>>> Initiation
* Air France-KLM Rated New Neutral at Citi; PT 11.50 Euros (Today)
* Aker BP Reinstated at Macquarie With Neutral; PT 305 Kroner (Today)
* Alcon Rated New Outperform at Credit Suisse; PT $66 (Today)
* Carnival Plc Rated New Outperform at Macquarie; PT 48 Pounds (Today)
* Commerzbank Resumed Equal-weight at Morgan Stanley; PT 9 Euros
* Deutsche Bank Resumed at Morgan Stanley With Underweight
* EnQuest Reinstated at Macquarie With Neutral; PT 23 Pence (Today)
* Hurricane Energy Reinstated Outperform at Macquarie; PT 1 Pound (Today)
* Nucleus Financial Group Rated New Outperform at Macquarie (Today)
* Premier Oil Reinstated Outperform at Macquarie; PT 1.45 Pounds (Today)
* Tullow Reinstated at Macquarie With Neutral; PT 2.25 Pounds (Today)

>>> Call
* Delivery Hero Top Takeaway Pick at JPMorgan, Bearish on Just Eat
* Commerzbank Preferred to Deutsche Bank at Morgan Stanley

FT : The SEC must solve its cryptocurrency custody conundrum Too much regulation

The SEC must solve its cryptocurrency custody conundrum
Too much regulation may stifle innovation but too little will put Main Street investors at risk

As blockchain technology grows in popularity, the US Securities and Exchange Commission faces a conundrum: how should it regulate the safekeeping or custody of a digital asset owned by an investment fund or managed account?

To solve this puzzle, the regulator has to reconcile decades-old laws with new and inherently risky technology. Too much regulation may stifle innovation but too little will put Main Street investors at risk. Doing nothing is not an option.

Current law requires mutual funds to deposit securities and similar assets in a vault or other depository belonging to a bank or trust company. Registered investment advisers must also maintain client assets with a qualified custodian.

The law stops short of specifying how a custodian bank must safeguard, or maintain custody of, a client’s assets.

Distributed ledger technology such as blockchain presents a novel challenge: how can a custodian, or an auditor, be certain that the custodian actually has possession of a digital asset?

In theory, the answer is simple. To prove ownership of a digital asset, such as bitcoin, you must have both a public key and a corresponding private key.

The public key appears as a string of digits representing a unique transaction that is added on as a block in a chain of other transactions.

The private key, however, is a string of digits that is intended to be kept secret, a sort of electronic bearer instrument. Whoever has the private key can transfer a digital asset immutably and potentially anonymously to anyone.

The SEC’s challenge is to ensure that such digital assets cannot be stolen or misappropriated.

The answer may involve a combination of physical and electronic solutions, and some creative legal thinking.

Some banks assert that they have developed platforms and procedures to keep digital assets safe. These may include holding digital assets in an offline wallet rather than on an exchange, requiring multiple electronic signatures to obtain access to the private key and keeping the private key on a computer in a physical vault — without an internet connection — to prevent criminals hacking in.

As there is no single answer to what kind of security is sufficient, the SEC should take a balanced, practical approach. It should not try to prescribe specific technological standards because what is appropriate for one custodian may not work for another.

Regulations should require custodians to embrace technology that is sufficient to provide adequate security, coupled with robust and ongoing testing, similar to how financial intermediaries test for the adequacy of cyber security protections.

The SEC could also treat all — or certain categories of — digital assets as securities solely for purposes of the custody rules, without determining whether they are securities that must be registered for sale.

This approach would provide some certainty on the application of the custody rules. This would be welcome as some senior SEC staff have suggested that some digital assets that are securities may morph into non-securities and vice versa. Bitcoin, for example, is generally thought not to be a security, but certain non-fungible tokens, such as CryptoKitties, may morph into securities depending on how their functions change over time.

The SEC could also establish robust standards for safekeeping programmes. These could include internal control reports and compliance testing.

It could also consider a backstop that would involve special capital requirements or a form of third-party insurance to protect digital assets.

But the SEC will never be able to eliminate digital asset fraud, just as it cannot eliminate other forms of theft.

No matter how many protections are required, the first time that a bad actor empties the digital wallet of an investment account, everyone — including the press and Congress — will point fingers at the SEC for failing to require sufficient safeguards.

Yet, by considering novel regulatory approaches adapted to the risks inherent in digital assets, educating investors, holding market participants to high standards and vigorously prosecuting bad actors, the SEC has the power to nurture technological innovation while still protecting Main Street investors.

>>> After Hours Summary: EB -30%, WLL -10%, CREE -9%, ZNGA +9%, CAK


After Hours Summary: EB -30%, WLL -10%, CREE -9%, ZNGA +9%, CAKE +4% among notable earnings/guidance movers, GMS +6.5% on S&P SmallCap 600 addition news

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ZNGA +9.3%, BLDP +7.6% (also reaches agreement for $44 mln order with Weichai-Ballard JV to support initial fuel cell vehicle deployments in China), DMRC +5.7%, CAKE +4.2%, SSW +3.6%, STAA +3.4% (light volume), CZR +3.1%, HABT +2.4% (light volume), NMIH +2.3%, NEWT +2.1% (light volume), FIT +2%, AR +1.7%

Companies trading higher in after hours in reaction to news: QTNT +6.9% (receives European CE Mark for its initial Immunohematology Microarray), GMS +6.5% (to join S&P SmallCap 600), NBRV +0.9% (after closing 27% lower on the day), BMY +0.6% (to commence private offering to sell senior unsecured notes)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: EB -30.1%, MITK -15.9% (also ends review of strategic alternatives), NVTR -13.7%, CASA -11%, WLL -9.6%, CREE -8.9%, TTMI -7.9%, CDAY -7.3% (also appoints Christopher Armstrong to the position of COO), WTI -7.3%, SQ -6.1%, HGV -4.7%, FARO -4.6% (light volume), QCOM -3.8%, CAR -2.8%, FIVN -2.8% (light volume), LPI -2.7%, XPO -2.4%, APA -2.2%, NLY -1.9%, EXEL -1.8% (also announces initiation of Phase 3 pivotal trial COSMIC-313), AM -1.6%, CDE -1.5%, PPC -1.3%

Companies trading lower in after hours in reaction to news: GWRE -4.7% (says audited consolidated financial statements for FY18 & FY17 should no longer be relied upon, expects to report material weakness in internal control over financial reporting related to the matter), XBIT -4% (enters into Equity Distribution Agreement providing for the sale of up to 4,334,453 shares of Common Stock from time to time), ZLAB -3.8% (announces proposed public offering of 5.0 mln ADSs), PYPL -1.1% (following SQ results), WAB -1% (prices upsized public offering of 22.0 mln shares by selling stockholder of common stock at $73.50)

A few cannabis related names are lower in after hours trade: CTST -4.3%, CGC -2%, TLRY -0.8%

>>> US Close Dow -0.61% S&P -0.75% Nasda -0.57% Russell -0.93%


Closing Stock Market Summary

The S&P 500 lost 0.8% on Wednesday, pulling back from all-time highs, after Fed Chair Jerome Powell dismissed the idea of a rate-cut to combat low inflation. The Dow Jones Industrial Average (-0.6%), Nasdaq Composite (-0.6%), and Russell 2000 (-0.9%) also succumbed to selling interest.

The stock market traded with modest gains leading up to the release of the Fed's policy directive. Apple (AAPL 210.52, +9.85, +4.9%) provided strong support after it beat top and bottom-line estimates and issued upbeat guidance for its fiscal third quarter. The outperformance in Apple also helped push the S&P 500, and information technology sector (-0.3%), to new intraday highs.

The move to record highs prompted some technically-driven selling, but overall the market held steady despite calls that the market had gotten overextended. The release of the Fed's policy decision briefly sent equities and U.S. Treasuries back to session highs in front of Fed Chair Powell's press conference.

The Federal Open Market Committee left the fed funds rate unchanged at 2.25-2.50%, as was expected. The committee also acknowledged that overall inflation and core inflation have declined and remained below its 2 percent target. Some market participants believed the Fed was setting the precedent for a rate cut should inflation continue to remain persistently below the Fed's target.

Fed Chair Powell, however, downplayed the need to address the muted inflation pressure with a change in policy, including a rate cut, since he thinks the recent deceleration in inflation is being caused by transitory factors. The news provided an excuse to sell a market trading near record highs, sending the S&P 500 into negative territory where selling would pick up into the close.

Ten of the 11 S&P 500 sectors finished lower, led by energy (-2.2%), materials (-1.8%), and consumer staples (-1.2%). The weakness in the energy space was also driven by lower oil prices ($63.59/bbl, -$0.21, -0.3%) following bearish inventory data out of the Energy Information Administration.

The Treasury market reacted visibly to Fed Chair Powell's message that a rate cut should not be expected. The 2-yr yield, which fell to 2.22% before the conference, finished higher by three basis points to 2.30%. The 10-yr yield, which fell to 2.46% before the conference, returned to its unchanged mark at 2.51%.

Reviewing Wednesday's economic data, which included the ISM Manufacturing Index for April, the ADP Employment Change report for April, Construction Spending for March, and the weekly MBA Mortgage Applications Index:

  • The ISM Manufacturing Index for April fell to 52.8% (consensus 55.0%) from 55.3% in March. The April reading is the lowest since October 2016. The dividing line between expansion and contraction is 50.0%.
    • The key takeaway from the report is that it shows there was a notable deceleration in manufacturing activity to begin the second quarter, which is a data point that will contribute to the Fed's patient mindset.
  • The ADP Employment Report showed an increase of 275,000 in April (consensus 170,000), and the March reading was revised to 151,000 (from 129,000).
  • Total construction spending declined 0.9% in March (consensus +0.1%) on the heels of a downwardly revised 0.7% increase (from 1.0%) in February.
    • The key takeaway from the report is the understanding that private residential construction spending is weak due to a downturn in new single family construction.
  • The weekly MBA Mortgage Applications Index decreased 4.3% following a 7.3% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, preliminary first quarter readings for Nonfarm Productivity and Unit Labor Costs, and Factory Orders for March on Thursday.

  • Nasdaq Composite +21.3% YTD
  • Russell 2000 +16.9% YTD
  • S&P 500 +16.6% YTD
  • Dow Jones Industrial Average +13.3% YTD

FT : Ocado investors rebel against executive pay About 25% of shareholders votin

Ocado investors rebel against executive pay
About 25% of shareholders voting opposed remuneration policy and report

Ocado suffered a shareholder rebellion over directors’ remuneration at its annual meeting, and pledged more engagement with investors over future incentive plans.

Around a quarter of shareholders voting opposed the remuneration policy and report, while a similar proportion did not support the Ocado “value creation plan”, a long-term incentive scheme that could see co-founder and chief executive Tim Steiner collect £100m if the company’s share price triples over the next five years.

Ocado’s shares were stellar performers last year on the back of a series of deals to supply its fulfilment technology to retailers around the world. By far the most significant was an agreement with US grocer Kroger to build 20 such centres in the US — news that triggered share price gains that helped propel the company into the FTSE 100.

Its market value is now £9.6bn, twice that of Marks & Spencer — the company with which it recently agreed to form a food retail joint venture. 

Andrew Harrison, the former Carphone Warehouse chief executive who now chairs Ocado’s remuneration committee, said the board “recognises that some shareholders voted against our remuneration proposals” and that the final proposals reflected shareholder feedback.

“As a result of this consultation exercise, changes were made to the operation of the remuneration proposals in line with suggestions made by shareholders,” he said.

He also said: “We will continue to engage with shareholders on remuneration and governance matters and are committed to consulting on the formation of the future remuneration policies.

Almost 23 per cent of shareholders voting also opposed a share matching award for Ocado’s chairman, retail grandee Stuart Rose. Mr Harrison said that the committee believed that the restrictions on the sale of these shares “provide sufficient alignment of interests between the company, its shareholders and the chairman.”

Mr Harrison’s own re-election was opposed by 17 per cent of shareholders.

FT : Putin signs law to isolate Russian internet

Putin signs law to isolate Russian internet

Russian president Vladimir Putin signed a law on Wednesday that intends to give the country a “sovereign internet” the Kremlin could disconnect from the global web.

Moscow says the move is to “ensure the safe and sustainable functioning” of Russia’s internet in the event that hostile powers attempt to switch it off from abroad. But critics say the move is intended to further clamp down on dissent amid already-tightening restrictions on freedom of speech.

The bill, which goes into force on November 1, requires internet service providers to filter all traffic through special nodes under the control of Roscomnadzor, the Kremlin’s internet censor. The Kremlin will compel ISPs and other communications services to test the system at an unspecified time later this year.

Though it remains largely unclear how — or even whether — the disconnect would work in practice, the move would theoretically make it easier for Roscomnadzor to enforce its highly inefficient blocks of banned websites, messaging app Telegram, and non-compliant VPN services.

Though Russia has increased its control over the internet in recent years — including a recent law banning “fake news” and insulting public officials — its laws are applied selectively and are mostly easy to bypass.

Roscomnadzor boss Alexander Zharov said last month that the move was “a pretty serious weapon, but I hope that, like nuclear weapons in the possession of several countries, it’ll remain dormant”.