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Most Chinese language firms might delist from US, says TCW Group

Chinese companies listed on Wall Street are likely to be cut off from US capital markets for the next three years as tensions between Beijing and Washington persist, a global asset management company says.

“I think the game is essentially over for many Chinese companies listed in US markets,” David Loevinger, managing director of emerging markets research at TCW Group, told CNBC on Wednesday. “This is a problem that has been hanging out there for 20 years – we couldn’t solve it.”

As of September 30, 2021, TCW Group had assets of $ 265.8 billion under management, according to the company’s website.

The US Securities and Exchange Commission this month finalized rules to implement a law that would allow the US market regulator to prohibit US-listed foreign companies from trading if their auditors fail to comply with requests for information from US regulators.

The law was passed in 2020 after Chinese regulators repeatedly denied requests from the Public Company Accounting Oversight Board to review audits of Chinese companies that are listed and do business in the United States.

Given the current mistrust between the US and Chinese governments and the fact that bilateral relations are not going to improve anytime soon, there is no way we will resolve this in the next few years, Loevinger said.

“So the reality is that by 2024, most Chinese companies that are listed on US stock exchanges will no longer be listed in the United States. Most will return to Hong Kong or Shanghai, “he told CNBC to” Street Signs Asia. “

Less than six months after going public, Chinese ride-hailing giant Didi announced that it would begin delisting from the New York Stock Exchange and instead make plans for a Hong Kong listing.

When a company delists from a stock exchange like the Nasdaq or the New York Stock Exchange, it loses access to a broad pool of buyers, sellers, and brokers.

I just don’t think China’s government will give US regulators full access to internal audit documents for Chinese companies.

Chinese regulators have reportedly been dissatisfied with Didi’s decision to be listed in the US without addressing outstanding cybersecurity concerns. Regulators reportedly asked company executives to come up with a plan to delist from the United States amid concerns about the data leak.

In addition to Didi, many of the leading Chinese internet companies listed in the US have already double-listed Hong Kong. Some high profile names include e-commerce giant Alibaba, its rival JD.com, search engine giant Baidu, game company NetEase, and social media giant Weibo.

“We have already reached the turning point,” said Loevinger, pointing to Didi’s delisting announcement. “I just don’t think China’s government will give US regulators unrestricted access to internal audit documents for Chinese companies.”

“And if US regulators can’t get access to these documents, they can’t protect US markets from fraud,” he added.

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Politics

Texas Choose Grants Restraining Order In opposition to Anti-Abortion Group

A Texas judge granted a temporary restraining order against the state’s largest anti-abortion group on Friday, blocking it from suing Planned Parenthood under the terms of the restrictive abortion law that went into effect this week.

Planned Parenthood will still have to comply with the law, which bans most abortions after six weeks of pregnancy. But under the order, the anti-abortion group, Texas Right to Life, or its associates cannot enforce the law by filing suit against Planned Parenthood, as allowed under the measure.

The judge, Maya Guerra Gamble of State District Court in Travis County, found that the law, Senate Bill 8, created “a probable, irreparable, and imminent injury,” at least temporarily, for Planned Parenthood, its staff and its patients, all of whom “would have no adequate remedy” if they were sued by Texas Right to Life or anyone affiliated with the group.

The order’s reach is narrow and does not preclude other anti-abortion groups or anyone not associated with Texas Right to Life from suing Planned Parenthood. It is set to expire on Sept. 17.

Still, while it is “not enough relief for Texas,” the order protects Planned Parenthood’s staff and its health care providers, who have “continued to offer care as best they can within the law while facing surveillance, harassment, and threats from vigilantes eager to stop them,” Helene Krasnoff, the vice president for public policy litigation and law at Planned Parenthood, said in a statement.

“We are relieved that the Travis County district court has acted quickly to grant this restraining order against Texas Right to Life and anyone working with them as deputized enforcers of this draconian law,” Ms. Krasnoff said.

In a statement, Elizabeth Graham, the vice president of Texas Right to Life, said that the lawsuit and order would “not stop the work” of the organization.

“Planned Parenthood can keep suing us, but Texas Right to Life will never back down from protecting pregnant women and preborn children from abortion,” Ms. Graham said.

John Seago, the group’s legislative director, said the restraining order was not a serious impediment to the future of the law, which went into effect on Wednesday after the U.S. Supreme Court declined to block it. “This was the danger of the state case all along, that it would be used as a flag to wave as if the abortion industry is winning when they’re actually losing,” he said.

The new law, which was passed by Texas lawmakers this spring and signed by Gov. Greg Abbott in May, amounts to a nearly complete ban on abortion, as most women do not know they are pregnant until after the sixth week of pregnancy. In Texas, 85 to 90 percent of abortions happen after the sixth week, according to lawyers for several clinics.

Understand the Texas Abortion Law

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Citizens, not the state, will enforce the law. The law effectively deputizes ordinary citizens — including those from outside Texas — allowing them to sue clinics and others who violate the law. It awards them at least $10,000 per illegal abortion if they are successful.

The law, which does not provide exceptions for rape or incest, bars state officials from enforcing it and instead deputizes private citizens to sue anyone who performs or “aids or abets” an abortion in violation of the law.

The patient may not be sued, but doctors, staff members at clinics, counselors, people who help pay for the procedure, and even an Uber driver taking a patient to an abortion clinic are all potential defendants. Plaintiffs, who do not need to live in Texas, have any connection to the abortion or show any injury from it, are entitled to $10,000 and their legal fees recovered if they win. Prevailing defendants are not entitled to legal fees.

Texas Right to Life had already created a website, Prolifewhistleblower.com, to act as a tip line for the law’s violators. But activists on TikTok snarled the site with fabricated information.

Judge Gamble said the decision on Friday evening upheld Texas Supreme Court precedent, writing that “the primary consideration for temporary emergency relief is preserving the status quo while courts consider whether plaintiffs have demonstrated a probable right to the relief sought.”

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Politics

Conservative Group, Seizing on Crime as an Concern, Seeks Recall of Prosecutors

WASHINGTON – A Republican-affiliated group said Monday it is launching a recall campaign, backed by unknown donors, to criminalize Democrats and their allies for being gentle by targeting progressive prosecutors.

It will initially focus on three prosecutors elected in 2019 in the affluent suburbs of Washington, northern Virginia, amid a national wave of pledges from Democrats to make law enforcement fairer and more humane.

The Virginians for Safe Communities group said the targets of the recall were Buta Biberaj of Loudoun County, Parisa Dehghani-Tafti of Arlington County and Steve Descano of Fairfax County, all of whom are Commonwealth counsel.

The campaign is faced with uncertain prospects, starting with the clarification of signature collections and legal hurdles.

However, organizers identified it as part of a broader national push to capitalize on voter concerns over rising urban crime and a backlash against sentiment against the police.

“There is a time for all things politics, and now is the time to wake up people who are in favor of law enforcement,” said Sean D. Kennedy, a Republican agent and president of Virginians for Safe Communities. He called the Northern Virginia recall effort a “test case for a nationwide launch.”

He said the group raised more than $ 250,000 and received commitments of nearly another $ 500,000. He would not reveal the identity of the donors to the group, which is registered under a section of the Tax Code that allows nonprofit groups to protect their donors from disclosure.

Mr. Kennedy, who has worked on Republican campaigns and committees, is an officer with the Law Enforcement Legal Defense Fund, but he said the new group is independent from them. Others involved in the new group include former FBI officer Steven L. Pomerantz and Ian D. Prior, who was appointed to the Justice Department during the Trump administration and previously worked on well-funded Republican political committees.

Mr. Kennedy has used Virginians for Safe Communities as an antidote to a political committee funded by billionaire George Soros, a leading democratic donor. His group, Justice and Public Safety PAC, has spent millions of dollars in recent years to assist candidates in local prosecutorial elections who supported the decriminalization of marijuana, relaxation of bail rules, and other progressive-favored changes.

The spending turned many of the races on their heads, which previously had drawn relatively little money and attention from major national interests.

Mr Soros’s representatives did not respond to a request for comment.

His PAC spent hundreds of thousands of dollars each in 2019 to support the campaigns of Ms. Dehghani-Tafti, Mr. Descano and Ms. Biberaj as they took office and promised a new approach to criminal justice.

Their victories came at a time when politicians from both parties were scrutinizing harsh crime policies, imposing harsh penalties for drug-related crimes, and laying the groundwork for mass incarceration that disproportionately affected black communities. In late 2018, President Donald J. Trump signed the most momentous reduction in criminal law in a generation. The next month, Joseph R. Biden Jr., who was preparing to run against Mr. Trump, apologized for portions of the anti-crime legislation he championed as a senator in the 1990s.

Skepticism about law enforcement and the criminal justice system was further catalyzed by the police murder of George Floyd by Minneapolis police in 2020. Many Democrats, including President Biden, have opposed the Defund the Police movement.

But a year and a half after Mr. Floyd’s death, American cities are facing a surge in gun violence and murder that began during the pandemic and has continued into this year.

Republicans have tried to blame the Democrats and their allies, and have tried to regain the cloak of law and order that politicians from both parties embraced in the 1980s and 1990s, but later because of concerns about police and police misconduct the inequalities in the criminal justice system.

The Conservatives “basically sat on the sidelines on this issue,” said Kennedy. “It was dominated by one side, and our side had basically disarmed unilaterally.”

He accused the three Northern Virginia prosecutors of “taking dangerous measures” that “undermine public confidence in our judicial system.” He cited an increase in the murder rate in Fairfax Counties and Arlington Counties.

Ms. Dehghani-Tafti, the chief prosecutor for Arlington County and the City of Falls Church, said in an email that she “does exactly what I have promised my community – what I was chosen to do – and do it well: that To make the system fairer, more responsive and more rehabilitative and at the same time guarantee our safety. “

Some of the more progressive planks on their campaign platform, and those of Ms. Biberaj and Mr Descano – who are ending law enforcement for marijuana possession and not applying for the death penalty – were at least partially codified across the country this year. Virginia Governor Ralph Northam signed law abolishing the death penalty and legalizing possession of small amounts of marijuana.

Ms. Dehghani-Tafti accused Mr. Kennedy’s group of using undisclosed “dark money” and “relying on misinformation” to “overturn a valid election through a non-democratic recall”.

Recalls are rare in Virginia and require the collection of signatures from a group of voters equal to 10 percent of the number who voted for the office in question in the last election, followed by a trial to prove that the officer has acted in a manner that constitutes incompetence, negligence or abuse of office. In the prosecutor’s case, the signature requirement would range from about 5,500 in Arlington to 29,000 in Fairfax.

Kennedy said his group intends to start paying people to collect signatures starting this week, with the goal of hitting the thresholds by Labor Day.

Recent efforts to defeat or dismiss progressive prosecutors have so far not been successful in other jurisdictions, including Philadelphia and Los Angeles, and an upcoming grassroots effort to recall the three Virginia prosecutors has apparently not met with much resonance.

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World News

REvil, Hacking Group Behind Main Ransomware Assault, Disappears

The second theory is that Mr Putin ordered the group’s websites to be removed. If so, it would be a gesture to heed Mr Biden’s warning, which he had also expressed more generally when the two leaders met in Geneva on June 16. And it should only be a day or two before a US-Russian working group on the subject set up during the Geneva meeting is due to hold a virtual meeting.

A third theory is that REvil decided the heat was too intense and shut down the sites itself so as not to get caught in the crossfire between the American and Russian presidents. This is what another Russian group, DarkSide, did after the ransomware attack on Colonial Pipeline, the US company that had to shut down the pipeline that supplies gasoline and kerosene to much of the east coast in May after its computer network was breached.

However, many experts believe that DarkSide’s exit from the business was nothing more than digital theater and that all of the group’s major ransomware talents will be reassembling under a different name. If so, the same could happen to REvil, which Recorded Future, a Massachusetts-based cybersecurity firm, estimates is responsible for about a quarter of all sophisticated ransomware attacks on Western targets. .

Allan Liska, a senior intelligence analyst at Recorded Future, said if REvil went missing, he doubted it was voluntary. “If anything, these guys are show-offs,” said Mr. Liska. “And we saw no notes, no showing off. It feels like they gave up everything under pressure. “

There were indications that the pressure may have come from Russia. U.S. Cyber ​​Command commander and director of the National Security Agency Gen. Paul M. Nakasone was not expected to have full options for U.S. action against ransomware actors until later this week, several officials said. And there was no evidence that REvil’s websites were “seized” by a court order that the Justice Department frequently publishes.

Cyber ​​Command declined to comment.

While closing REvil would give Mr Putin and Mr Biden an opportunity to show that they are facing the problem, it could also give ransomware actors a chance to get away with their profits. The big losers would be the companies and cities that do not get their encryption keys and may be locked out of their data forever. (When ransomware groups break up, they often release their decryption keys. That didn’t happen on Tuesday.)

Mr Biden is expected to roll out a ransomware strategy in the coming weeks to prove that the Colonial Pipeline and other recent attacks show how crippling critical infrastructures pose a major national security threat.

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Health

CDC group says there is not sufficient information but to suggest booster pictures

A group of Centers for Disease Control and Prevention scientists said Wednesday that currently there isn’t enough data to support recommending Covid-19 booster shots to the general population but that more-vulnerable groups, such as elderly people or transplant recipients, may need an extra dose.

The Covid-19 working group of the CDC’s Advisory Committee on Immunization Practices didn’t rule out the possibility that the general population eventually may need booster shots if immunity from the vaccines wanes or a variant reduces the effectiveness of current shots.

“Boosters may be required for a broad population. However, it could also be that the need for boosters of Covid vaccine may only be demonstrated in some populations,” said Dr. Sarah Oliver, co-lead of the working group and a medical epidemiologist with the CDC’s National Center for Immunization and Respiratory Diseases.

A recent study by researchers at Johns Hopkins University published in the Annals of Internal Medicine showed that booster shots may be beneficial for people with weakened immune systems. Oliver said the agency should monitor residents of long-term care facilities, elderly people, health-care workers and immunocompromised people.

The working group recommended that the CDC consider booster shots only “after evidence of declining protection,” Oliver said, meaning if the vaccines became less effective over time or antibodies guarding against Covid waned over time. The agency could also consider using booster shots if a variant emerged that substantially reduced the effectiveness of the vaccine.

Vials with Pfizer-BioNTech and Moderna coronavirus disease (COVID-19) vaccine labels are seen in this illustration picture taken March 19, 2021.

Dado Ruvic | Reuters

“I would have to agree with the interpretation of the working group in the sense that there’s no data to support recommendations to support boosters at this time,” said Dr. Sharon Frey, a member of ACIP and clinical director of the Center for Vaccine Development at Saint Louis University Medical School. “There’s no evidence against declining protection at this time.”

But Frey said she would be open to giving a third shot to transplant patients or if infections rise in the general population, indicating a lot of breakthrough cases in fully vaccinated individuals. So far, there have been at least 3,729 breakthrough infections in the U.S. that resulted in hospitalization or death, according to CDC data.

“I think the only thing we can do at this moment is, if we start to see an uptick in reinfection in people or new infections in people who have been vaccinated, that’s our clue that we need to move quickly,” Frey said.

Dr. Grace Lee, who chairs the ACIP safety group and is a professor of pediatrics at Stanford University School of Medicine, also said she would like to see more evidence of breakthrough cases before recommending a booster shot.

“I would want greater certainty on the safety data if we’re talking about boosting before it’s clear what the risk data will look like,” Lee said. “If we’re seeing severe breakthrough cases then I think the decision-making moves forward even if there’s uncertainty with the safety data.”

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Health

Sen. Warren presses PhRMA foyer group on efforts to dam vaccine patent waivers

Sen. Elizabeth Warren, D-Mass., conducts a news conference outside the Capitol to reintroduce the Universal Child Care and Early Learning Act, on Tuesday, April 27, 2021.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

Democratic Sen. Elizabeth Warren is pressing the CEO of a major pharmaceutical trade group on its lobbying efforts against a proposal to waive intellectual property rights for Covid-19 vaccines that would help boost production of the shots for poorer nations.

Warren and other lawmakers asked how much money the Pharmaceutical Research and Manufacturers of America, or PhRMA, and its member companies spent this year lobbying Congress and White House officials in opposition to the waiver, in a letter sent Wednesday to PhRMA CEO Stephen Ubl that was obtained by CNBC.

The Biden administration said in early May it would support waiving the World Trade Organization’s Trade Related Intellectual Property Rights, or TRIPs, agreement. PhRMA, whose members include Covid vaccine makers AstraZeneca, Pfizer and Johnson & Johnson, is trying to block the waiver.

Removing patent protections on Covid vaccines would allow other drug companies to manufacture the lifesaving shots. Drugmakers worry that could set a precedent for future products and end their lucrative monopolies over sales of their new medicines.

Warren also asked the trade group about its attempts to block a bill from House Democrats that would allow Medicare to negotiate directly with manufacturers for lower drug prices.

“PhRMA and other pharmaceutical companies have pushed the Biden Administration to oppose the TRIPS waiver, arguing that it would “undermine the global response to the pandemic,”‘ Warren and other lawmakers wrote. The industry also said drug pricing provisions of the American Rescue Plan would “lead to fewer new cures and treatments,” and it opposed Medicare Part D price negotiation, the letter reads.

“While taking credit for the development of new COVID vaccines — which were developed with massive infusions of federal funds — the pharmaceutical industry has not backed off of its efforts to block drug pricing proposals and maintain the status quo,” the lawmakers added.

The lawmakers gave the trade group until June 30 to respond.

In a statement to CNBC, PhRMA spokesman Brian Newell said the trade group was reviewing the letter.

“We will continue our efforts to work with policymakers on solutions to lower what patients pay out of pocket for prescription medicines and ensure equitable global access to COVID-19 vaccines,” he said.

Warren’s letter comes as global groups, including the World Health Organization, are urging wealthy countries and drugmakers to get Covid shots to low-income and lower-middle-income countries, some of which are witnessing an increasingly worrying rise in new infections.

Ken Frazier, chairman and chief executive officer of Merck & Co., from left, Stephen Ubl, chief executive officer of Pharmaceutical Research and Manufacturers of America (PhRMA), and Robert Hugin, chairman of Celgene Corp., arrive to a news conference outside the White House following a meeting with U.S. President Donald Trump, not pictured, in Washington, D.C., U.S., on Tuesday, Jan. 31, 2017.

Andrew Harrer | Bloomberg | Getty Images

Many countries and drugmakers have made pledges to share millions of doses around the world. President Joe Biden announced last week that his administration would donate 500 million vaccine doses produced by Pfizer to other nations.

The pharmaceutical industry has previously said the TRIPS waiver would compromise safety, weaken supply chains and sow confusion between public and private partners.

In the first three months of this year, pharma companies have spent a record $92 million on lobbying, according to data compiled by the Center for Responsive Politics, a nonpartisan campaign finance research group in Washington. PhRMA spent $8.6 million this year on lobbying after spending $25.9 million in 2020, according to its data.

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Health

How Ought to My Group Deal With an Unvaccinated Scholar?

I am not close to her and was stunned when she revealed in a rare conversation what she had done. Our parents tried to mask themselves, keep their distance and get vaccinated. When they believed she was vaccinated, they left her exposed at her home. They are now making summer vacation plans that will include them and stay together. My sister’s failure left me in an awkward position. Covid-19 is a dangerous and deadly disease, especially for people over 60. The vaccines are not 100 percent effective. Our parents have a right to know the vaccination status of those with whom they are in closed rooms.

How do I best do this? Should I insist that my sister tell them the truth and give her a little time to do it before I tell them myself? Name withheld

It sounds like if your sister has also neglected how her decision affects others – unless she just doesn’t care. Your parents are at increased risk of “breakthrough infections” because of their age, and they abandoned your sister for lying to her. Call your parents now. The only phone call you should consider beforehand is your sister to tell her what you are doing and why.

I live in an apartment and my neighbor recently died of Covid-19. We shared a terrace with him for five years and he was friendly when we met, which was not very often. Most of the time he was at his partner’s house across town. I found out that my neighbor died when his children started going in and out of the apartment. They didn’t seem very emotional, more focused on dividing up his things.

I later learned from my partner that she had been struck off the hospital visit list by the children and that she was not allowed to say goodbye in his last days. She asked my husband and I to write a letter confirming their relationship for use as legal proof of their civil partnership. She would like to regain the apartment and possibly some belongings.

I didn’t know much about her or the history of her relationship with our neighbor. I don’t doubt they were committed to each other, but I’m not sure we are the best people to write letters of support. She spent time in the apartment and we hear her crying loudly. Should we write the letter or should we stay out of it? Name withheld

I guess you Do you think your neighbor would have wanted some of his property to go to his partner, even though he obviously did not document these intentions. If they were a couple, especially a long-time couple, she has a moral right to part of the common property; a court can decide whether it also has a legal one. Since you seem to have relevant evidence, it would be a good thing to provide.

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Politics

Bipartisan Group of Senators Say They Reached Settlement on Infrastructure Plan

But the bipartisan group of senators are part of a broader coalition of moderates who have quietly met since Mr. Biden took office, in an effort to explore avenues of compromise on a number of issues. Moderate Democrats in particular have been resistant to immediately bypassing the need for Republican votes on an infrastructure package, long seen as a particularly ripe area for a bipartisan agreement.

The five Republicans are Senators Rob Portman of Ohio, Mitt Romney of Utah, Lisa Murkowski of Alaska, Susan Collins of Maine and Bill Cassidy of Louisiana. The Democrats are key moderates: Senators Kyrsten Sinema of Arizona, Joe Manchin III of West Virginia, Mark Warner of Virginia, Jeanne Shaheen of New Hampshire and Jon Tester of Montana.

“I think it’s important that there is this initiative, that again is a bipartisan initiative,” Ms. Murkowski said before the announcement. “What is happening now is as Republicans and Democrats, we are going out to folks within our respective conferences, talking about the contours of what we put together to see what that level of support might be.”

With razor-thin margins in both chambers, Democratic leaders have begun to quietly work on the legislation needed to use the fast-track budget reconciliation process, which would allow them to move a sweeping infrastructure package with a simple majority. But the maneuver would require near unanimity from the caucus and promises to be challenging, given the strict budgetary rules that govern the process.

“We either need to do it in a bipartisan fashion that gets 60 votes, which shows no sign of occurring given the substance of the ongoing bipartisan negotiations, or we need to be prepared to use the reconciliation process,” said Senator Sheldon Whitehouse, Democrat of Rhode Island and one of the most vocal proponents for the preservation of the climate provisions. “It’s got to happen.”

Senator Chuck Schumer of New York, the Democratic leader, refused to comment on the details from the bipartisan group as he left the Capitol on Thursday, telling reporters, “We continue to proceed on two tracks — a bipartisan track and a reconciliation track — and both are moving forward.”

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World News

With a Ban on Navalny’s Group, Putin Sends a Message to Biden

MOSCOW – A court on Wednesday ruled the political movement of Aleksei A. Navalny as extremist, a notable broadside from President Vladimir V. Putin, who also sent a message to President Biden ahead of their meeting next week: Russian internal affairs are not up Discussion.

The judicial decision – almost certainly with the blessing of the Kremlin – seemed to push the resistance against Putin further underground after years of efforts by the Russian government to suppress dissenting opinions entered a new, more aggressive phase for several months. Under the law, Mr Navalny’s organizers, donors or even social media supporters could now face criminal prosecution and face jail terms.

The ruling increases the commitment of the Geneva summit to Mr Biden, who has promised to defend himself against Mr Putin’s violation of international norms. But the Russian President has said that while he is ready to discuss cyberspace and geopolitics with Mr Biden, he will not have talks about how he governs his country. The question is how much Mr Biden accepts these demands.

“The views on our political system can be different,” Putin told the heads of international news agencies last week. “Please give us the right to organize this part of our life.”

The June 16 Geneva meeting will come after months in which Mr Putin has dismantled much of what remains of Russian political pluralism – and made it clear that he would ignore Western criticism.

Mr Navalny was arrested in January after returning to Moscow after recovering from poisoning carried out by Russian agents last year, according to Western officials. Since then, thousands of Russians have been arrested during protests; opposition leaders have been imprisoned or forced into exile; Online media were branded as “foreign agents”; and Twitter and other social networks have come under pressure from the government.

“The state has decided to fight all independent organizations with total bombing,” said Nawalny’s anti-corruption foundation – one of the groups declared extremist on Wednesday – in a Twitter post anticipating the verdict.

The Kremlin denies having played any role in the campaign against Navalny and his movement and insists that Russia’s judiciary is independent. However, analysts and lawyers largely see the courts as subordinate to the Kremlin and the security services, especially in politically sensitive cases.

Mr Putin has already signaled that he will reject any criticism of the Kremlin’s handling of the Navalny case by claiming that the United States has no power to teach others. At Russia’s annual economic conference in St. Petersburg last week, Putin repeatedly referred to the January arrests of Capitol rioters in Washington when challenged over repression in Russia or its ally Belarus.

“Look at the sad events in the United States where people refused to accept the election results and stormed Congress,” Putin said. “Why are you only interested in our non-systemic opposition?”

The “non-systemic opposition” is the Russian term for factions that are not represented in parliament and that openly demand Putin’s impeachment. For years they were tolerated, even if they were closely monitored and often persecuted. The court’s ruling on Wednesday signaled that this era of tolerance is coming to an end.

Prosecutors harassed Navalny and other opposition activists, mostly on pretexts such as violating rules for public gatherings, laws unrelated to their political activities, or, more recently, anti-gathering regulations designed to limit the spread of the coronavirus.

Behind the scenes, according to Western governments and human rights groups, the Kremlin had gone further: murdering or expelling journalists, dissidents and leaders of the political opposition in exile. Mr Navalny only barely survived an attack with a chemical weapon last summer. In 2015, another opposition leader and former First Deputy Prime Minister of Russia, Boris Y. Nemtsov, was shot dead with a pistol. But officials denied any role in these actions.

The dissolution of Mr Navalny’s nationwide network marked a new phase in the fight against dissent through a formal, legal process to dissolve opposition organizations despite the country’s 1993 Constitution guaranteeing freedom of expression.

The Kremlin’s campaign against the opposition increased after Navalny returned from Germany in January, where he received medical treatment after the neurotoxin attack. Police arrested Mr. Navalny at the airport and a court sentenced him to two and a half years in prison for violating parole on conviction in a case of embezzlement alleged by a human rights organization to be politically motivated.

In power since 1999, either as Prime Minister or President, Mr Putin has gradually tightened the screws on dissent and opposition. In a long twilight of post-Soviet democracy during his rule, elections took place, the internet remained largely free, and opposition was tolerated to a limited extent. His system has been called “gentle authoritarianism”.

But prosecutors this spring demanded that the court outlaw Mr Navalny’s move by using a term that compares its members to terrorists without bothering to publicly argue that the nonprofits were, in fact, seditious organizations . The evidence was classified and the case was held behind closed doors in a Moscow courtroom.

A lawyer representing the organizations, Ivan Pavlov, who had access to the evidence but was not empowered to disclose it, said after a preliminary hearing that it was not convincing and that he would publish as much as the law allows . Within a few days, police arrested Mr. Pavlov on charges of divulging secret evidence in another unrelated case, in what looked like a warning to avoid an aggressive defense of Mr. Navalny’s organization. He faces up to three years in prison.

According to Russian legal experts, the anti-extremism law offers a lot of scope for comprehensive action against the opposition in the coming days or months, but it remains unclear how it will be enforced.

According to the law, the organizers of the group face prison sentences of up to 10 years for continuing their activities. Anyone who donates money can be punished with up to eight years in prison. Public comments such as social media posts in favor of Mr Navalny’s groups could also be prosecuted in support of extremists.

The case was directed against three non-profit groups, Navalny headquarters, the Anti-Corruption Fund and the Civil Rights Defense Fund. In a preliminary ruling last month, the court ordered the activities of some of these groups to be suspended.

Pending the final verdict, Mr. Navalny’s staff disbanded one of the groups, Navalny’s headquarters, which operated its network of 40 political offices, before the court had a chance to designate it as an extremist group. Mr Navalny’s staff said they hoped some offices would continue to operate as independent, local political organizations.

“Unfortunately, we have to be honest: it is impossible to work in these conditions,” said an adviser to Mr Navalny, Leonid Volkov, in a YouTube video, warning that continuing the operation would prosecute supporters of the opposition leader. “We are officially dissolving the network of Navalny offices.”

When they announced the case in April, prosecutors argued that Mr Navalny’s groups were in fact riotous organizations disguised as a political movement. In a press release, the prosecutor said that “under the guise of liberal slogans, these organizations are busy creating conditions for the destabilization of the social and socio-political situation”.

Since he is forbidden from founding a political party, Mr Navalny has worked for various non-governmental organizations instead. Despite relentless pressure from the Russian authorities, these groups have for years insisted on promoting an anti-corruption campaign that frustrated and embarrassed Mr Putin, and have often used social media to great effect.

Mr Navalny’s movement was the most prominent in Russia, openly calling for Mr Putin’s ousting through elections, and its supporters say the Kremlin is determined to crush those efforts before they can bear fruit.

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Health

Non-public fairness group nears a $30 billion deal to purchase Medline, report says

A Medline Industries employee collects examination gloves to be included in personal protective equipment (PPE) kits that will be shipped to various healthcare facilities at their warehouse in Mundelein, Ill., On Monday, October 20, 2014. Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

A group of private equity firms, including the Blackstone Group, Carlyle Group and Hellman & Friedman, are on the verge of a deal to buy medical device manufacturer and distributor Medline Industries, the Wall Street Journal reports.

The sale could be worth more than $ 30 billion for Medline, people familiar with the matter told the newspaper.

Medline Industries of Northfield, Illinois, manufactures 550,000 types of medical supplies for specialty medical facilities such as surgical centers, acute care facilities, nursing homes, hospice centers, and hospital laundries, according to the company’s website. Founded in 1910 by AL Mills, the family business now sells in more than 125 countries.

WSJ originally reported Medline’s interest in an April sale.

When CNBC reached them, Blackstone and Hellman spokesmen declined to comment. Carlyle and Medline representatives were not immediately available.

Read the full report in the Wall Street Journal here.