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Foxconn says iPhone manufacturing unit not impacted

Vehicles are stranded in floodwater near Zhengzhou Railway Station on July 20, 2021 in Zhengzhou, Henan Province of China.

Zhu Zhe | Visual China Group | Getty Images

GUANGZHOU, China — Taiwan electronics manufacturer Foxconn said Wednesday that its factory in Zhengzhou — known as the world’s largest iPhone assembly plant — has not been impacted by major flooding in the city.

Zhengzhou in China’s central Henan province has been hit with torrential rain. Authorities said it rained more in an hour on Tuesday than it normally would in an average month.

The result has been intense flooding in the city of more than 10 million people. Over 100,000 people have been relocated to safety and 12 people have died, according to state media reports.

Zhengzhou, an important industrial hub, is home to a major factory run by Hon Hai Precision Industry, also known a Foxconn. It is the biggest assembly plant for Apple’s iPhones in the world. Foxconn said its operations had not been affected by the flooding.

Foxconn told CNBC that it had “activated an emergency response plan for flood control measures in that location.”

“We can confirm that there has been no direct impact on our facility in that location to date and we are closely monitoring the situation and will provide any updates as appropriate,” a company spokesperson added.

Apple did not respond to a request for comment.

‘Extremely severe’

Chinese President Xi Jinping called the flooding “extremely severe,” according to his comments published by the official Xinhua news agency.

Unverified videos circulating on Chinese social media such as Twitter-like service Weibo, showed people trapped on a train in Zhengzhou’s subway system submerged in water up to their chests.

Other images show cars floating in flooded streets.

Policemen evacuate traffic in floodwater near Zhengzhou Railway Station on July 20, 2021 in Zhengzhou, Henan Province of China.

Zhu Zhe | Visual China Group | Getty Images

Zhengzhou’s subway network has suspended its operations while hundreds of flights have been cancelled. The army has been called in to help with the rescue efforts.

Various state media reported stories of rescue efforts including 150 kindergarten teachers and students being successfully saved and people being taken off buses stuck in flooded roads.

State-backed newspaper Xinhua, citing the chief forecaster for Henan province’s meteorological station, said the heavy rainfall is expected to last until Wednesday evening.

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PEPFAR Is Nonetheless With out a Chief. H.I.V. Activists Wish to Know Why.

The Biden administration has not yet nominated a leader for the President’s Emergency Plan for AIDS Relief, a $7 billion program that sets priorities for AIDS care worldwide — leaving countries that receive funding from the program without guidance during a pandemic that is particularly dire for those with H.I.V.

PEPFAR is led by a global AIDS coordinator, a cabinet-level position that was last held by Dr. Deborah Birx. Dr. Birx served from April 2014 to February 2020, when she left to join the White House coronavirus task force. Dr. Angeli Achrekar, a deputy, has acted as PEPFAR’s interim leader since President Biden took office.

Global health experts sharply criticized the delay in nominating a permanent chief. “Can we not think and act on two pandemics at a time?” asked Gregg Gonsalves, a longtime H.I.V. activist and an epidemiologist at the Yale School of Public Health.

PEPFAR was started in 2003 by President George W. Bush and has had bipartisan support ever since. Funds distributed by PEPFAR are used to support prevention and treatment programs, including offering voluntary male circumcision, as well as testing for H.I.V. and providing antiretroviral therapy to people of all ages.

It is widely regarded as the most successful global health program. Since its inception, the U.S. government has invested more than $85 billion in more than 60 countries, saving an estimated 20 million lives.

“PEPFAR is an example of what can be done when you combine diplomacy and global health,” said Dr. Carlos del Rio, an infectious-disease expert at Emory University in Atlanta and chair of PEPFAR’s scientific advisory board. “Throughout Africa, they love and they respect the U.S. because of PEPFAR.”

Credit…U.S. Department of State

Last week, a group of more than 50 advocacy organizations sent a letter to Mr. Biden, urging him to “immediately appoint a bold, creative and qualified” leader for PEPFAR. “This is unacceptable, particularly during a time of the dueling pandemics of H.I.V. and Covid-19,” they wrote.

The White House did not respond to a request for comment.

The coronavirus pandemic has disrupted access to H.I.V. prevention, diagnosis and treatment, as well as supply chains for condoms, lubricants and antiretroviral drugs, according to a recent report from UNAIDS.

And the pandemic has reversed hard-gained progress on ending H.I.V., including a 23 percent annual decrease in new infections since 2010.

The inertia on naming a leader is particularly damaging “when more leadership, ambition and governance is sorely needed to guide global efforts to make up lost ground on the H.I.V. response,” said Suraj Madoori, a director of the Treatment Action Group, an advocacy organization based in New York.

A new study released last week showed that people living with H.I.V. have a heightened risk of serious illness and death from Covid-19. The coronavirus pandemic could also benefit from the health care infrastructure set up to provide services for H.I.V., experts noted.

“There’s a lot that can happen now, using the PEPFAR structure to confront Covid in those countries,” Dr. del Rio said.

“Not leveraging the PEPFAR infrastructure — I think it’s crazy, it’s a huge missed opportunity,” he added. “This administration has been around for six months. Why have we not appointed them?”

Dr. del Rio said PEPFAR’s chief had been noticeably absent from global conversations, including a recent U.N. resolution to end AIDS by 2030, and efforts to enable PEPFAR sites to respond to the coronavirus pandemic. It’s also important for PEPFAR’s chief to speak up for the program when budget dollars are allocated, Dr. del Rio added: “I almost feel like the program is basically at a standstill.”

The absence of a U.S. voice is also having ripple effects on many issues in African countries, said Richard Lusimbo, a program manager at Pan Africa ILGA in Uganda. Core programs for key populations like L.G.B.T.Q. people have been cut in several countries since the start of the Biden administration. In Ivory Coast, for example, the budget for key population services was cut by half.

In Kenya, a dispute between its government and the U.S. Agency for International Development has led to a shortage of antiretroviral drugs. A permanent PEPFAR leader with political power would have been able to resolve that dispute, Mr. Lusimbo said.

Mr. Biden named Samantha Power to lead USAID on Jan. 13, even before he took office. And last week, the White House announced nominees for seven other positions.

For weeks, the H.I.V. community has heard that the administration is considering five widely known global health experts to lead PEPFAR: Shannon Hader, Charles Holmes, Chris Beyrer, Vanessa Kerry and Paul Farmer. But no candidate has emerged as the front-runner.

“Unfortunately, we are watching as global support for the Covid-19 response in Africa is missing, the AIDS response is being weakened, and it is not clear who the U.S. government’s leader is on this,” Mr. Lusimbo said. “Does the administration not understand that, for our communities, the AIDS response and the Covid-19 response are critically interlinked?”

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The Dow is now up practically 600 factors as shares snap again from Monday’s decline

Key averages rebounded on Tuesday as investors stepped in to buy the decline from the worst day on the Dow Jones Industrial in eight months.

The comeback rally picked up steadily during the session as a rebound in government bond yields allayed some concerns that a Covid resurgence would slow economic recovery.

At the last count, the Dow Jones Industrial Average rose 580 points, or 1.7%, after falling 725 points on Monday. It was the Dow’s biggest jump in more than a month. The S&P 500 was up 1.5% and the Nasdaq Composite was up 1.4%. The small cap benchmark Russell 2000 index rose 2.8%.

Many of the stocks, which were hardest hit on Monday due to concerns about the Delta variant of Covid-19, rebounded on Tuesday. American Airlines and Delta Air Lines gained 3% and 4% respectively. Royal Caribbean was up 3% after falling 4% on Monday.

Bank stocks are also rebounding as investors continue to monitor bond yields under pressure. JPMorgan, Citigroup and Bank of America are all up more than 2%.

Energy and industrials – two of the hardest hit groups on Monday – also shot back. Exxon Mobil and Chevron were both up 1%. General Electric and Honeywell gained more than 3%.

Wall Street suffered a sharp sell-off on Monday as investors feared the fast-spreading delta coronavirus variant could hamper economic recovery. The blue-chip Dow plunged 2.1%, its worst day since October 28th last year. The S&P 500 was down 1.6% and the Nasdaq Composite was down about 1.1%.

“We remain constructive on equities and see recent growth and slowdown fears premature and exaggerated,” Dubravko Lakos-Bujas, head of US equity strategy at JPMorgan, wrote in a statement on Tuesday. The strategist raised his price target for the S&P 500 from 4,400 to 4,600 at the end of the year, which corresponds to a gain of 8% compared to the closing price on Monday.

Traders continue to watch the 10-year government bond yield, which appears to be driving movement in the equity markets. It fell to a 5-month low on Monday, adding to concerns about the slowing global economy and helping to push stocks down, and fell briefly to 1.128% early Tuesday. It was above 1.78% in March and its decline amid the recovering economy has puzzled and worried investors.

With the rebound on Tuesday, the S&P 500 is only 2% below its record hit last week. During Monday’s losses, the stock benchmark traded below its 50-day moving average at times. However, the index closed above this important technical level on Monday, an optimistic sign for traders that anticipated Tuesday’s rally.

CNBC’s Jim Cramer said Monday’s sell-off drove out some of the speculators who are taking too much risk in stocks this year and it would end soon.

“Once the speculators are blown out … and stocks that have already fallen sharply start rallying, we can find tradable bottom,” said Cramer. “We’re close, but the speculators aren’t completely crushed yet.”

Bitcoin fell below the $ 30,000 mark overnight, triggering sales on cryptocurrencies and another sign that speculation may be coming out of the markets.

In the USA, new Covid cases are recovering, as the delta variant is spreading mainly among the unvaccinated. According to CDC data, there are an average of about 26,000 daily cases in the US for the past seven days, more than double the average from a month ago.

“Many of the cyclical companies are selling out of fears that Covid will stop the recovery,” said Chris Zaccarelli, CIO at Independent Advisor Alliance. “We do not believe this is the case and are ready to let the sell-off take its course and buy the slump believing that the economy will fully recover and return to its previous growth trajectory, which is what most cyclical companies do in the country brings. ” the airline, travel and leisure industries along with it. “

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She Mentioned She Married for Love. Her Dad and mom Referred to as It Coercion.

SRINAGAR, Kashmir — Manmeet Kour Bali had to defend her marriage in court.

A Sikh by birth, Ms. Bali converted to Islam to marry a Muslim man. Her parents objected to a marriage outside their community and filed a police complaint against her new husband.

In court last month, she testified that she had married for love, not because she was coerced, according to a copy of her statement reviewed by The New York Times. Days later, she ended up in India’s capital of New Delhi, married to a Sikh man.

Religious diversity has defined India for centuries, recognized and protected in the country’s Constitution. But interfaith unions remain rare, taboo and increasingly illegal.

A spate of new laws across India, in states ruled by Prime Minister Narendra Modi’s Bharatiya Janata Party, or B.J.P., are seeking to banish such unions altogether.

While the rules apply broadly, right-wing supporters in the party portray such laws as necessary to curb “love jihad,” the idea that Muslim men marry women of other faiths to spread Islam. Critics contend that such laws fan anti-Muslim sentiment under a government promoting a Hindu nationalist agenda.

Last year, lawmakers in the northern Indian state of Uttar Pradesh passed legislation that makes religious conversion by marriage an offense punishable by up to 10 years in prison. So far, 162 people there have been arrested under the new law, although few have been convicted.

“The government is taking a decision that we will take tough measures to curb love jihad,” Yogi Adityanath, a Hindu monk and the top elected official of Uttar Pradesh, said shortly before that state’s Unlawful Religious Conversion Ordinance was passed.

Four other states ruled by the B.J.P. have either passed or introduced similar legislation.

In Kashmir, where Ms. Bali and Mr. Bhat lived, members of the Sikh community have disputed the legitimacy of the marriage, calling it “love jihad.” They are pushing for similar anti-conversion rules.

While proponents of such laws say they are meant to protect vulnerable women from predatory men, experts say they strip women of their agency.

“It is a fundamental right that women can marry by their own choice,” said Renu Mishra, a lawyer and women’s rights activist in Lucknow, the Uttar Pradesh state capital.

“Generally the government and the police officials have the same mind-set of patriarchy,” she added. “Actually, they are not implementing the law, they are only implementing their mind-set.”

Across the country, vigilante groups have created a vast network of local informers, who tip off the police to planned interfaith marriages.

One of the largest is Bajrang Dal, or the Brigade of Hanuman, the Hindu monkey god. The group has filed dozens of police complaints against Muslim suitors or grooms, according to Rakesh Verma, a member in Lucknow.

“The root cause of this disease is the same everywhere,” Mr. Verma said. “They want to lure Hindu women and then change their religion.”

Responding to a tip, the police in Uttar Pradesh interrupted a wedding ceremony in December. The couple were taken into custody, and released the following day when both proved they were Muslim, according to regional police, who blamed “antisocial elements” for spreading false rumors.

A Pew Research Center study found that most Indians are opposed to anyone, but particularly women, marrying outside their religion. The majority of Indian marriages — four out of five — are arranged.

The backlash against interfaith marriages is so widespread that in 2018, India’s Supreme Court ordered state authorities to provide security and safe houses to those who wed against the will of their communities.

In its ruling, the court said outsiders “cannot create a situation whereby such couples are placed in a hostile environment.”

The country’s constitutional right to privacy has also been interpreted to protect couples from pressure, harassment and violence from families and religious communities.

Muhabit Khan, a Muslim, and Reema Singh, a Hindu, kept their courtship secret from their families, meeting for years in dark alleyways, abandoned houses and desolate graveyards. Ms. Singh said her father threatened to burn her alive if she stayed with Mr. Khan.

In 2019, they married in a small ceremony with four guests, thinking their families would eventually accept their decision. They never did, and the couple left the central Indian city of Bhopal to start a new life together in a new city.

“The hate has triumphed over love in India,” Mr. Khan said, “And it doesn’t seem it will go anywhere soon.”

In Bhopal, the capital of Madhya Pradesh state, the B.J.P.-led government passed a bill in March modeled after the Uttar Pradesh law, stiffening penalties for religious conversion through marriage and making annulments easier to obtain.

The government is not “averse to love,” said the state’s home minister, Narottam Mishra, “but is against jihad.”

Members of Kashmir’s Sikh community are using Ms. Bali’s marriage to a Muslim man, Shahid Nazir Bhat, to press for a similar law in Jammu and Kashmir.

“We immediately need a law banning interfaith marriage here,” said Jagmohan Singh Raina, a Sikh activist based in Srinagar. “It will help save our daughters, both Muslims and Sikhs.”

At a mosque in northern Kashmir in early June, Ms. Bali, 19, and Mr. Bhat, 29, performed Nikah, a commitment to follow Islamic law during their marriage, according to their notarized marriage agreement.

Afterward, Ms. Bali returned to her parents’ home, where she said she was repeatedly beaten over the relationship.

“Now my family is torturing me. If anything happens to me or to my husband, I will kill myself,” she said in a video posted to social media.

The day after she recorded the video, Ms. Bali left home and reunited with Mr. Bhat.

Even though a religious ceremony between people of the same faith — as Mr. Bhat and Ms. Bali were after her conversion — are recognized as legally valid, the couple had a civil ceremony and got a marriage license to bolster their legal protections. The marriage agreement noted that the union “has been contracted by the parties against the wish, will and consent of their respective parents.

“Like thousands of other couples who don’t share same the religious belief but respect each other’s faith, we thought we will create a small world of our own where love will triumph over everything else,” Mr. Bhat said. “But that very religion became the reason of our separation.”

Ms. Bali’s father filed a police complaint against Mr. Bhat, accusing him of kidnapping his daughter and forcing her to convert.

On June 24, the couple turned themselves into the police in Srinagar, where both were detained.

At the court, Ms. Bali recorded her testimony before a judicial magistrate, attesting that it was her will to convert to Islam and marry Mr. Bhat, according to her statement. Outside, her parents and dozens of Sikh protesters protested, demanding that she be returned to them.

It is unclear how the court ruled. The judicial magistrate declined requests for a transcript or an interview. Her parents declined an interview request.

The day after the hearing, Manjinder Singh Sirsa, the head of the largest Sikh gurudwara in New Delhi, flew to Srinagar. He picked up Ms. Bali, with her parents, and helped organize her marriage to another man, a Sikh. Following the ceremony, Mr. Sirsa flew with the couple to Delhi.

“It would be wrong to say that I convinced her,” Mr. Sirsa said in an interview. “If anything adverse was happening, she should have said.”

A written request for an interview with Ms. Bali was sent via Mr. Sirsa. He said she did not want to talk.

“She had a real breakdown,” he said, repeating Ms. Bali’s parents’ claims that their daughter was kidnapped and forced to marry Mr. Bhat.

Mr. Bhat was released from police custody four days after Ms. Bali left for Delhi.

At his home in Srinagar, he is fighting the kidnapping charges. He said he was preparing a legal battle to win her back, but he feared the Sikh community’s disapproval would make their separation permanent.

“If she comes back and tells a judge she is happy with that man, I will accept my fate,” he said.

Sameer Yasir and Iqbal Kirmani reported from Srinagar, Kashmir, and Emily Schmall reported from New Delhi.

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Asia markets fall after Dow drops in a single day amid Covid resurgence fears

SINGAPORE – Asia Pacific stocks fell in trading Tuesday morning after Wall Street stocks tumbled overnight, with the Dow Jones Industrial Average plummeting more than 700 points.

In Japan, the Nikkei 225 lost 0.63% while the Topix index lost 0.79%. South Korea’s Kospi lost 0.31%.

Mainland stocks were lower in early trading, with the Shanghai composite falling 0.56% while the Shenzhen component lost 0.18%. Hong Kong’s Hang Seng index was near flattening.

The S & P / ASX 200 in Australia lost 0.37%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was down 0.19%.

On Tuesday, China left its corporate and household credit benchmark rate unchanged – the one-year loan prime rate (LPR) remained constant at 3.85%, while the five-year LPR was also left at 4.65%. According to Reuters, the majority of traders and analysts in a quick poll expected that both the one-year and five-year LPR would not change.

The markets in Indonesia, Malaysia and Singapore are closed on Tuesday for public holidays.

CNBC Pro’s Stock Picks and Investment Trends:

Wall Street decline

Overnight in the States, the Dow Jones Industrial Average fell 725.81 points to 33,962.04 while the S&P 500 lost 1.59% to 4,258.49 points. The Nasdaq Composite fell 1.06% to 14,274.98.

The losses on Wall Street came as concerns grew over the potential impact of a Covid resurgence on the global economic recovery. Several countries in Southeast Asia are struggling with infection resurgence, and Goldman Sachs recently lowered its 2021 growth projections for most of the region.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.849 after a recent rebound from below 92.8.

The Japanese yen was trading at 109.48 per dollar, stronger than levels above 110.5 against the greenback last week. The Australian dollar changed hands at $ 0.7339, up from $ 0.738 yesterday.

Oil prices were higher on the morning of Asian trading hours, with international benchmark Brent crude oil futures rising 0.52% to $ 68.98 a barrel. US crude oil futures rose 0.74% to $ 66.91 a barrel.

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On England’s ‘Freedom Day,’ Rising Virus Instances and a Prime Minister in Isolation

Freedom Day arrived in England on Monday, with its chief architect, Prime Minister Boris Johnson, in quarantine, millions of Britons who might join it there and countless people more concerned about the risks of liberation.

Those were the inconsistencies on the long-awaited day the government lifted all but a few remaining coronavirus restrictions – a day the virus infected 39,950 people and carried away tens of thousands more, from the National Health Service’s cell phone app were notified after they were in contact with an infected person.

Mr Johnson defended the decision to reopen Checkers from his country estate, where he has been in self-isolation since Sunday after the NHS notified or “pinged” him for contact with his Health Secretary, Sajid Javid. who on Saturday said he had mild symptoms of Covid-19.

“If we don’t open up now, conditions are even tougher in the coming months, if the virus has a natural advantage,” Johnson told a video feed at a press conference in a slightly hushed voice and a slightly blurry image. “We have to ask ourselves: ‘If not now, then when?'”

“It is right to be as careful as we are,” he added. “It is also right to acknowledge that this pandemic is far from over.”

Mr Johnson’s safe tone captured the sharp shift in sentiment since the Prime Minister first announced and then withdrew the date for most restrictions to be lifted. British newspapers quickly dubbed Monday “Freedom Day” and celebrated it as a symbolic end to the country’s 16-month ordeal with the pandemic.

But as new cases have skyrocketed and hospital admissions started, the plan to open the economy instead looks like a likely prescription for a massive third wave – a wave of infections that Mr Johnson believes is inevitable and worthwhile with while of summer when the warmer weather and school holidays reduce the key chains of transmission.

The government’s decision represents a staggering gamble that a country with relatively widespread vaccines can learn to live with the coronavirus in its adult population. Much will depend on the resilience of vaccines and the ability of the country’s health system to deal with those who actually get sick.

“The government is basically saying, ‘We have done all we can. Now it’s up to you, ‘”said Devi Sridhar, director of the global public health program at the University of Edinburgh. “You are the first country to surrender.”

Keeping some restrictions in place for a while, Professor Sridhar argued, would allow vaccines to roll out further and hospitals to develop better treatments. “You’re devaluing time,” she said.

According to the new rules, pubs and restaurants can operate at full capacity and night clubs are allowed to reopen. The restrictions on the number of people who can meet indoors, generally limited to six, have also been lifted. The legal requirement to wear face masks has been dropped, despite the government urging people to continue wearing them on public transport. (They are compulsory to stay on London Undergrounds and buses.)

Mr Johnson initially hoped to avoid self-isolation by participating in a program that would have allowed him to continue working in the office had he been tested daily. But after being accused of breaking the rules, he reversed course and said he was self-isolating like everyone else.

Updated

July 19, 2021, 2:50 p.m. ET

The Prime Minister warned young people that they would likely need to show a full vaccination card to enter nightclubs and other crowded places. He said the flood of people ordered to isolate was an inevitable side effect of reopening. And he refused to rule out the reintroduction of restrictions, as the Netherlands recently did when hospital admissions rise catastrophically.

Almost 70 percent of adults in the UK have received both doses of a vaccine. That leaves a large pool of unvaccinated people, especially younger people, through which the highly transmissible delta variant is spreading rapidly. While these people are less likely to get seriously ill, they can transmit the virus to unvaccinated older people who remain vulnerable.

To add to uncertainty, the government said it would only offer vaccines to children ages 12-18 if they have pre-existing health conditions that make them particularly susceptible to the virus. Some scientists questioned the decision, saying the long-term effects of Covid-19 on children were unclear and that if they were not vaccinated they could speed up the infections when schools start next month.

In London, where the lifting of restrictions coincided with the mildest weather of the summer, sunbathers near Liverpool train station expressed a mixture of relief and concern as the country broke new ground.

“I don’t think it’s the right time, but we can’t hold up our lives for long,” said Silvia Andonova, dentist, 43. “There will never be a right time.”

She said she intends to continue wearing masks on public transport and in crowded places, but the instructions are not clear enough. “The government put it confusing,” she said. “What should I do?”

After long months of restrictions, there were signs of a serene mood and many restaurants wrote “Happy Freedom Day” on their signs. Still, many people said they felt conflicted over the government’s decision to relax the restrictions.

“No matter what the politicians say, I will wear my face covering in the transport,” says Saj Sangha, assistant to a law firm. Still, Mr Sangha, 52, said he looked forward to ordering a beer in a pub without the inconvenience of having to reserve a table in advance.

Not all young people believe that returning to nightclubs is safe. “The deaths are a little lower with the vaccination, but people still have Corona – we still have high numbers,” said Simone Papi, 24, cook.

In the northern city of Bradford, 26-year-old Kasim Khan stood in line to receive his first vaccination. “I am hopeful,” said Mr. Khan. “I hope to go to where my family is from, Pakistan,” he said, adding that it could be some time before this could happen as the government is currently requiring travelers from Pakistan to arrive in the UK upon arrival Quarantine hotels.

Another Bradford resident, Kirsty Mcguire, 33, said she plans to continue taking some precautions, like wearing a face mask, despite the new freedom.

“It’s out of respect for the elders and I have children,” said Ms. Mcguire, “I’m afraid something will happen to them, so I hope that people still hold on to what they were.” “

Isabella Kwai provided coverage from London and Aina Jabeen Khan from Bradford, England.

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U.S. warning about Hong Kong alerts Washington might do extra: Lawyer

The U.S. has issued a warning to U.S. companies operating in Hong Kong — signaling that Washington could take further action, says a lawyer who specializes in international trade compliance.

Adam Smith, a partner at law firm Gibson, Dunn & Crutcher, said Friday’s financial and regulatory risks advisory was “quite substantial” but it “doesn’t actually do anything with respect to changing the rules” right now.

However, it does indicate “there’s a lot more the U.S. could do” from a policy perspective, he told CNBC’s “Capital Connection” on Monday.

The nine-page advisory on Friday warned that U.S. firms are encountering several risks posed by China’s national security law in Hong Kong. Washington also announced sanctions on seven Chinese officials for violating Hong Kong’s autonomy.

Possible next steps

In response to Beijing’s crackdown on the former British colony, Smith said, what would “really change the nature of engagement and risk for parties in Hong Kong” would be sanctions on organizations, entities and institutions, which have been absent so far.

Sanctions on individuals can be a challenge to U.S. firms in Hong Kong, but the “real difficulty” would come from restrictions on organizations that businesses need to interact with frequently, he said.

People wearing face masks crossing a street at Hong Kong’s Wan Chai district on Feb. 16, 2021.

Zhang Wei | China News Service | Getty Images

Hong Kong’s attraction

For now, however, there remains “too much opportunity” in Hong Kong for businesses to move out of the city.

“Hong Kong … still has an unbelievable amount of human capital that many companies still need,” he said.

Kurt Tong, a former consul general representing the U.S., and chief of mission in Hong Kong and Macao, said Hong Kong is still a good place for businesses to be despite the risks.

“There’s legal risk, there’s reputational risk, there’s a certain amount of operation risk — but I think that those risks are measured,” he said.

“At the same time, (businesses) need to keep their eye on the big picture, which is that China is an enormous and attractive economy to do business with. And Hong Kong is in many ways, still … one of the best platforms to do that work,” he added.

The rhetoric has been so tough from both sides, so there’s a lot of face-saving that needs to be done.

Kurt Tong

partner, The Asia Group

Tong, a partner at advisory firm The Asia Group, said the rule of law in Hong Kong has deteriorated, but most businesses are not convinced that it has been completely wiped out.

“I think it will take more to drive companies out of Hong Kong than the changes that have taken place thus far,” he told CNBC’s “Squawk Box Asia.”

Biden-Xi meeting?

As for the path forward, Tong said he expects U.S. President Joe Biden and Chinese President Xi Jinping to meet in the fall, and discuss each of their “red lines” that cannot be crossed.

In the meantime, he said, “diplomatic jousting” will continue.

“The rhetoric has been so tough from both sides, so there’s a lot of face-saving that needs to be done,” he added.

Trade discussions between the two sides have stalled for now, and the U.S. doesn’t have incentives to enter negotiations because it doesn’t believe such talks will be successful, Tong said.

“It’s a complex picture … the U.S.-China relationship under the Biden-Xi era,” Tong said. “We’re still on the … first scene of the first act of how this is going to play out over the coming year.”

Indeed. After Tong and Smith spoke, a new alliance of NATO member states, the European Union, Australia, New Zealand and Japan blamed China’s Ministry of State Security for a massive cyberattack on Microsoft Exchange email servers earlier this year.

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Your Monday Briefing – The New York Occasions

In the UK, an average of nearly 45,000 cases of the coronavirus per day were reported over the past week, an 83 percent increase from the average two weeks ago. The death toll has risen 141 percent as England’s chief medical officer warned hospital admissions could double every three weeks and hit “scary numbers”.

Despite these troubling statistics, England is set to lift its final restrictions today, even though more than 500,000 people were quarantined by the National Health Service’s test-and-trace app after coming in contact with someone who had positive for the coronavirus.

Prime Minister Boris Johnson and his chief financial officer, who both had contact with an infected cabinet minister, are among the quarantined. Downing Street originally said yesterday that they would avoid quarantine, which sparked a quick and violent backlash from critics accusing them of double standards.

British Politics: Johnson is under fire for refusing to condemn crowds who booed England’s national football team for kneeling in protest against racial injustice. His refusal is a strong echo of former President Donald Trump’s targeting NFL players kneeling in the U.S. for the same cause

Here are the latest updates and maps of the pandemic.

For other developments:

  • Indonesia, the fourth most populous nation, now has the highest number of new coronavirus infections in the world, with 57,000 new cases reported on Friday. Experts estimate that the real number is three to six times as high.

  • American tennis star Coco Gauff has tested positive for the coronavirus and will not be participating in the Tokyo Olympics, which is contributing to the first cases in the athletes’ village.

  • After scandals and outrages, congested host cities, and now a pandemic, some are wondering if the games are worth the effort.

  • Some local governments in China have begun requiring all students – and their families – to be vaccinated before students can return to school this fall.

First person: “The flash floods brought so much with them – cars and containers and torn trees – that it was impossible to launch lifeboats,” said one witness. “I’ve never seen such a raging, rushing river.”

Destruction: Videos, photos and a map show the extent of the damage.

Floods in Europe are just one sign of a global warming crisis, which highlights the reality that the world’s richest nations are unprepared for its aftermath. However, whether mounting disasters in developed countries, including forest fires in Canada and scorching weather in California’s wine country, will affect climate policy remains to be seen.

The extreme weather disasters come a few months before the UN-led Glasgow climate negotiations in November, which is practically a moment of reckoning whether the nations of the world will agree on ways to contain emissions enough to mitigate the worst effects of climate change.

The European Commission last week presented an ambitious roadmap for change that includes a tax on imports from countries with less stringent climate policies. However, it is widely expected that the proposals will meet with fierce objections both inside and outside Europe.

Quotable: “Although not everyone is equally affected, this tragic event is a reminder that no one is safe in a climate emergency, whether they live on a small island nation like mine or a developed Western European country,” Mohamed Nasheed, former president of the Maldives, said of the flood .

Scenes in Siberia: The people of northeast Siberia are suffering from the worst forest fires they can remember. Thick smoke hung over Yakutsk, the coldest city in the world. Outside the city, villagers were digging trenches to keep fires away from their homes and fields.

Four months after the mega-ship Ever Given got stuck in the Suez Canal, neither the canal nor the shipping industry addressed some of the most critical problems that led to the bottoming out. Our investigation examines what went wrong.

Emmanuelle Polack is a 56-year-old art historian and archivist who tries to uncover the difficult history of some of the Louvre’s precious works – and to help them find their way back to their rightful owners.

France has been criticized for lagging behind countries like Germany and the United States in identifying and returning works of art looted during World War II. The Louvre has recently tried to change its image and examine the provenance of its works more thoroughly.

The museum houses more than 1,700 stolen works of art that were returned to France after the Second World War and for which no legal owners have yet reported.

For Polack, the key to uncovering the secret stories of works of art suspiciously changed hands during the Nazi occupation is to follow the money. She sifts through the Louvre’s voluminous files to see how works of art have been bought and sold over the years. The backs of paintings often give clues of sales, restorations, and framers that could lead back to their owners.

“During the occupation, I kept a secret garden above the art market for years,” she says. “And finally, it is recognized as a crucial study area.”

Read more about the Louvre’s restitution efforts.

This icebox cake adds a twist to banana pudding by using chocolate waffles instead of the classic vanilla.

Naomi Osaka, a new three-part miniseries on Netflix, cleverly explores the psychology of the tennis star rather than focusing on her technical skills.

In “The Cult of We”, Eliot Brown and Maureen Farrell investigate how Adam Neumann, a co-founder of WeWork, built a billion dollar company from renting joint workspaces.

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World News

Israeli spy ware used to focus on telephones of journalists and activists, investigation finds

An Israeli woman uses her iPhone in front of the building of the Israeli NSO group in Herzliya near Tel Aviv on August 28, 2016.

Jack Guez | AFP | Getty Images

According to a comprehensive investigation by the Washington Post and 16 other news organizations, private Israeli spy software was used to hack dozens of smartphones belonging to reporters, human rights activists, business people and the fiancé of murdered Saudi journalist Jamal Khashoggi.

The military-grade spyware was reportedly licensed by Israeli spyware company NSO Group. The investigation found that the hacked phones were on a list of more than 50,000 numbers in countries known to monitor people.

The list of numbers was made available to the Post and other media organizations by the Paris-based nonprofit journalism organization Hidden Stories and the human rights group Amnesty International.

The NSO Group denied the results of the report in several statements, arguing that the investigation contained “unconfirmed theories” based on “misleading interpretation of leaked data from accessible and overt basic information”.

The NSO Group also said it would continue to investigate all credible allegations of abuse and take appropriate action.

NSO Group’s Pegasus spyware is licensed to governments around the world and can, according to the report, hack a cellphone’s data and activate the microphone. NSO said the spyware is only used to monitor terrorists and other criminals.

Read the full report here.

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World News

L.A. County’s Masks Mandate Is Right here. The Sheriff Will not Implement It.

A new requirement that masks be worn indoors in Los Angeles County went into effect at midnight on Saturday night. But the local sheriff has no plans to enforce it.

“Forcing the vaccinated and those who already contracted Covid-19 to wear masks indoors is not backed by science,” Sheriff Alex Villanueva wrote in a statement posted on his department’s website on Friday.

The department “will not expend our limited resources and instead ask for voluntary compliance,” the statement continued.

County public health officials had been urging residents for weeks to wear masks indoors as the highly contagious Delta variant spread in the state, as it is doing across the country.

But with California fully reopened and pandemic restrictions lifted, it remains unclear how willing the public will be to pick up their masks again — especially with little enforcement.

The Los Angeles County Department of Public Health could issue a notice of violation or a citation to businesses that fail to comply with the mandate, a spokeswoman, Natalie Jimenez, wrote in an email on Saturday. But she said that “education and information sharing” would be the department’s primary approaches.

“Our community will not be able to enforce our way out of this pandemic; we need everyone doing their part to keep themselves and each other safe,” Ms. Jimenez wrote.

Enforcing mask mandates proved an enduring challenge for public health officials across the country in earlier phases of the pandemic, as concerns about the virus’s spread, crushing hospital loads and a staggering national death toll clashed with politicized outcries over threats to personal liberty and rampant misinformation.

In Los Angeles County, Sheriff Villanueva repeatedly declined to enforce Covid restrictions, including a statewide stay-at-home order last winter. Last summer, the county’s inspector general warned that sheriff’s deputies weren’t following orders requiring them to wear masks on the job.

The Los Angeles County mask requirement was reintroduced because the Delta-driven surge presents risks that earlier versions of the virus did not, according to the county health department.

“People with only one vaccine are not as well protected, and there is evidence that a very small number of fully vaccinated individuals can become infected and may be able to infect others,” said a statement the department issued on Thursday.

Masks will continue to be required in public schools statewide, though the Centers for Disease Control and Prevention recommended that masks be optional for fully vaccinated students and staff members.

L.A. County is averaging almost 1,400 new cases a day, a 251 percent increase from the average two weeks ago, and Covid hospitalizations are up 27 percent, according to a New York Times database. Still, the current situation is far less grave for the county than during the peak over the winter, when new cases hit an average of over 16,000 and hospitalizations rose to an average of more than 7,000.

Daily deaths have also remained in the single digits, down from winter’s average high of more than 240.