Forecasts Show India May Become World’s Third Largest Economy by 2030

India’s economy is posting the fastest growth among major economies putting it on track to become the world’s third largest before the end of the decade, financial forecasts predict. As Anjana Pasricha from New Delhi reports, India might be bucking the global trend of slowing growth.

Ethiopians File Lawsuit Against Meta Over Hate Speech in War

Two Ethiopians have filed a lawsuit against Facebook’s parent company, Meta, over hate speech they say was allowed and even promoted on the social media platform amid heated rhetoric over their country’s deadly Tigray conflict.

Former Amnesty International human rights researcher Fisseha Tekle is one petitioner in the case filed Wednesday and the other is the son of university professor Meareg Amare, who was killed weeks after posts on Facebook inciting violence against him.

The case was filed in neighboring Kenya, home to the platform’s content moderation operations related to Ethiopia. The lawsuit alleges that Meta hasn’t hired enough content moderators there, that it uses an algorithm that prioritizes hateful content and that it acts more slowly to crises in Africa than elsewhere in the world.

The lawsuit, also backed by Kenya-based legal organization the Katiba Institute, seeks the creation of a $1.6 billion fund for victims of hate speech.

A Facebook spokesman, Ben Walters, told The Associated Press they could not comment on the lawsuit because they haven’t received it. He shared a general statement: “We have strict rules which outline what is and isn’t allowed on Facebook and Instagram. Hate speech and incitement to violence are against these rules and we invest heavily in teams and technology to help us find and remove this content.” Facebook continues to develop its capabilities to catch violating content in Ethiopia’s most widely spoken languages, it said.

Ethiopia’s two-year Tigray conflict is thought to have killed hundreds of thousands of people. The warring sides signed a peace deal last month.

“This legal action is a significant step in holding Meta to account for its harmful business model,” said Flavia Mwangovya of Amnesty International in a statement pointing out that the Facebook posts targeting its former researcher and the professor were not isolated cases.

The AP and more than a dozen other media outlets last year explored how Facebook had failed to quickly and effectively moderate hate speech in cases around the world, including in Ethiopia. The reports were based on internal documents obtained by whistleblower Frances Haugen.

Forecasts Show India May Become World’s Third Largest Economy by 2030

India’s economy is posting the fastest growth among major economies putting it on track to become the world’s third largest before the end of the decade, according to financial forecasts.

As companies record strong growth and hand out pay hikes, there is a wave of optimism among professionals.

“There are good projections for the Indian economy. Plus, even in our friends’ circle, a lot of people are changing jobs, moving to better pastures. For us also, my wife, has switched recently to a new job,” said Jaideep Manchanda, a marketing professional in New Delhi who recently bought a new car.

Consumers like Manchanda and his wife, Tanya Tandon, are driving domestic demand as India emerges strongly from the COVID-19 pandemic — the automobile industry for example recorded its highest-ever sales in November. New investment is flowing into the country, helping it withstand the trend of slowing growth in most countries.

India is expected to grow by nearly 7% this year despite the economic turbulence created by Russia’s war in Ukraine. That momentum is likely to continue, helping it overtake Japan and Germany to become the world’s third-largest economy, according to a recent forecast by New York-based investment firm Morgan Stanley and S&P Global.

The International Monetary Fund projects India to reach that position by 2028. The United States and China are the world’s biggest economies.

The World Bank’s latest report on the Indian economy released in December also said that India is relatively well positioned to weather global headwinds compared to most other emerging markets.

“India’s economy has been remarkably resilient to the deteriorating external environment,” Auguste Tano Kouame, World Bank’s country director, said releasing the report “Navigating the Storm” earlier this month.

India’s economy is relatively insulated partly because it has a large domestic market and is relatively less exposed to international trade, according to the World Bank.

Growth is expected to dip in the coming year as, like many other countries, India grapples with inflation following a surge in global food and fuel prices. A potential global recession also poses a risk to its economic momentum.

However, that is not dampening optimism. “Even if the economy grows consistently at around five and a half or 6% will be remarkable,” according to Abhijit Mukhopadhyay, an economist at the Observer Research Foundation in New Delhi. “A lot of changes are happening across the world, and we hope that some of them will be beneficial for the Indian economy.”

New opportunities are opening for India as trade and geopolitical tensions between China and the United States deepen, analysists say.

For decades, global investors flocked to China to set up factories while India’s manufacturing sector lagged, holding back the economy. Efforts by Prime Minister Narendra Modi to promote a “Make in India” campaign since he took office eight years ago had met with a tepid response, but that could be changing.

On a visit to New Delhi last month United States Treasury Secretary Janet Yellen spoke of building closer economic ties with India.

“The United States is pursuing an approach called friend-shoring to diversify away from countries that present geopolitical and security risks to our supply chain. To do so we are proactively deepening economic integration with trusted trading partners like India,” Yellen said addressing technology leaders at a Microsoft facility.

Analysts say that many companies are looking at India as they consider adding production capacity in a second nation besides China.

The U.S.-based tech company Apple is expected to move some iPhone manufacturing to India and scale it up over the next three years. Taiwanese electronic company Foxconn and local conglomerate Vedanta have announced a $19.5 billion investment to make semiconductors in the western Indian state of Gujarat.

“Now, after China, India is probably being seen as the next place where growth will come. This is the expectation, and the initial signs are already there,” points out economist Mukhopadhyay. “That is why a lot of global investment, direct investment and a lot of global financial capital are now betting on India.”

Modi’s government is making efforts to lure companies by offering incentives for producing in India and investing billions of dollars in improving the country’s creaky infrastructure that has long deterred investors.

The mood is upbeat among Indian professionals, who often looked overseas for career opportunities. Now many feel they are better off at home, especially after the tens of thousands of layoffs by leading technology companies in the United States that have impacted many Indians.

“India has great potential across the sectors, across geographies, and across small and bigger cities,” said Tanya Tandon, a marketing professional.

Maintaining high growth will be vital for India, a country of 1.4 billion people, which still needs to lift millions out of poverty and also faces a massive challenge in creating jobs for its huge, young population.

COVID Restrictions Lifted, China’s Businesspeople Hit the Road to Revive Export Economy

Yiwu, a city in China’s Zhejiang province, produces more than half the world’s Christmas ornaments purchased by the billions of people who celebrate the holiday.

China’s “zero-COVID” policy, coupled with global pandemic fears, dulled the local export-fueled year-round glitterfest. Christmas orders fell by 50% in 2020, according to the official Global Times with raw material costs and labor shortages hindering a recovery in 2021, which saw only a 10% to 20% increase in sales over the previous year.

Then, faster than elves could hitch those nine reindeer to Santa’s sleigh, a day after Beijing began lifting zero-COVID restrictions on December 3, a Zhejiang trade delegation departed for Germany and France to launch the “Thousand Missions and Ten Thousand Enterprises to Expand the Market and Grab Orders Action.” The goal: Sell enough stuff to help spark China’s economy back to pre-pandemic growth.

They hit a snag. “It seems like the Europeans’ and Americans’ purchasing power is so weak now. If the markets there are weak, China’s economy is definitely suffering too,” said Steven Gao, a businessman in Zhejiang province who exports Christmas ornaments and other trinkets to Europe and the U.S.

Beyond pandemic aftereffects such as not-yet-normal supply chains, Gao blames the bleak economic prospect on President Xi Jinping’s recent policies, particularly his focus on “common prosperity” during the 20th party congress, which met in October in Beijing and gave him a third term. The phrase refers to an official effort to address income inequality, a push often linked to personal wealth accumulated by founders and executives in sectors such as tech.

“Many of my rich friends are thinking about moving to other countries,” said Gao, 45, who asked to use a pseudonym to avoid attracting official attention when he spoke with VOA Mandarin on Tuesday. “They are afraid their wealth will be seized. This lack of faith, combined with pandemic control, led to the slide of economic growth.”

According to a CNBC report on December 4, U.S. manufacturing orders in China are down 40%, according to the latest CNBC Supply Chain Heat Map data, and Chinese factories are expected to shut down two weeks earlier than usual for the Lunar New Year that falls on January 22, 2023.

When Xi presided over a December 6 meeting of the Politburo of the Communist Party, China’s second-highest decision-making body, he emphasized the need to stabilize the economy and to attract foreign investment.

After the gathering, the official Securities Times reported on December 7 that the Suzhou Bureau of Commerce planned to charter flights to France and Germany after a “successful trip” to Japan returned with guaranteed orders worth more than 1 billion yuan, or $142 million.

A similar flight organized by the Suzhou province government took off for Europe on December 9. “Racing against time, grabbing more orders and opportunities … these are the most crucial tasks the Chinese companies took on when boarding the plane,” editorialized the official Global Times news outlet which pointed out “Yiwu… has been the starting point of numerous international trade channels linking the entire world.”

Alibaba, China’s biggest e-commerce platform, recently launched a special operation code-named “Digital Hybrid Trade Show” to start at least 100 overseas exhibitions in the near future, Securities Times reported on December 12. The exhibitions cover more than 10 important foreign trade target markets, including the United States, Germany, Britain, Japan, Singapore and Australia.

Some analysts, however, believe that China’s response to the pandemic may have made it less attractive to foreign businesses for manufacturing and investing.

The state news agency Xinhua reported that those in the December 6 meeting stressed that stability is Beijing’s top priority in an international economic environment marked by “high winds and waves.”

Zhao Chunshan, chief adviser of the Asia-Pacific Peace Research Foundation, a private think tank in Taiwan, told VOA Mandarin that “Capitalists are running away. No one dares to invest, causing economic instability. If there is a problem in the economy there is no way to stabilize.”

Zhao says that local governments with high debt loads must look outside China rather than to the central government for stability.

“China’s central government has no way to solve local debts,” he said. “The central government’s allocation alone is not enough. They have to attract foreign investment and business on their own. To some extent, the central government also gives localities such authority.”

In an interview with VOA Mandarin, Lai Rongwei, an assistant professor at the Center for Liberal Studies at Taiwan’s Longhua University of Science and Technology, said the fact that provinces and cities are scrambling to form groups to go abroad reflects the fears of local officials.

“China’s measures to seal off cities have led to a severe shortage of supplies, including medicine,” Lai said. “The debt of local governments is already huge, and the lack of revenue in the past years has made the situation even worse. People actively going abroad shows a great deal of panic, fearing that the economic downturn can’t be alleviated, and the risks are becoming bigger.”

But Lai said that after the pandemic lockdowns, China is no longer as attractive to foreign investors as it used to be.

“Foreign investors must take into account the cost of investment,” Lai said. “Cities could be shut down and power cut off any time when there’s an order from higher authorities. … Private enterprises find it hard to survive, and now the governments are looking for solutions from foreign investors.”

Bo Gu contributed to this report.

Fraud Charges Unsealed in Arrest of Crypto Magnate Bankman-Fried

Law enforcement officials and financial services regulators have filed a raft of criminal and civil charges against Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange company FTX, alleging wide-ranging fraud that eventually brought down the company, which was valued at $32 billion earlier this year.

The Department of Justice on Tuesday morning unsealed an indictment charging Bankman-Fried with eight criminal counts, including conspiracy to commit wire fraud, actual wire fraud, money laundering, and violation of laws governing donations to politicians and political parties.

At the request of U.S. prosecutors, Bankman-Fried, 30, was arrested on Monday evening at his home in the Bahamas, where the headquarters of FTX is located. The U.S. and the Bahamas have an extradition treaty, and Bankman-Fried is expected to be transferred to U.S. custody in the near future.

‘House of cards’

Earlier Tuesday, the Securities and Exchange Commission issued its own set of civil charges, also accusing Bankman-Fried of “years-long fraud” that included hiding information from investors, diverting customer funds to a hedge fund he owned, using other customer funds to make political donations, and to purchase hundreds of millions of dollars in real estate.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”

Also on Tuesday, the Commodity Futures Trading Commission filed a lawsuit against Bankman-Fried.

Rapid rise, rapid fall

In the short time since its founding in 2019, FTX grew to be one of the largest cryptocurrency exchanges in the world, and Sam Bankman-Fried — often referred to as “SBF” — became one of the industry’s most recognizable figures. He was a regular speaker at business conferences, gave testimony before Congress, and was seen by many as a model cryptocurrency executive.

The list of investors who plowed billions of dollars into FTX is long and distinguished, including Sequoia Capital, SoftBank Group, Tiger Global Management, and Third Point Ventures.

Earlier this year, Bankman-Fried positioned his company as a savior for the broader crypto industry when a broad selloff of cryptocurrencies left many firms in the space reeling. FTX extended lines of credit to crypto lender BlockFi and crypto broker Voyager Digital in an effort to help them weather the storm. Both BlockFi and Voyager eventually filed for bankruptcy protection.

Signs of trouble

In September, news reports began raising questions about the relationship between FTX and Alameda Research, a hedge fund owned by Bankman-Fried which was supposed to be a completely separate corporate entity from FTX.

However, it gradually became clear that the two companies were actually closely connected. Media reports began to reveal that a large share of Alameda’s assets was tied up in an illiquid crypto token called FTT, which was issued by FTX. Over several days in early November, customers rushed to pull their money from accounts with FTX, sending the company into a massive liquidity crisis and forcing it to stop processing customer withdrawals.

After several days of attempts to arrange a rescue package, including a briefly considered sale of FTX to Binance, its largest competitor, FTX, Alameda, and more than 100 affiliated companies filed for bankruptcy.

On Tuesday, the Justice Department and the SEC alleged that Alameda actually had “virtually unlimited” access to funds held by FTX on behalf of its customers.

The charges against Bankman-Fried claim that Alameda illegally used those funds to invest in highly illiquid cryptocurrency tokens, as well as to make “undisclosed venture investments, lavish real estate purchases, and large political donations.”

Before its collapse, cryptocurrency investors around the world had placed billions of dollars in their accounts with FTX. In large part because of transfers to Alameda, FTX is facing an estimated shortfall of $8 billion.

‘I made a lot of mistakes’

Against the advice of his attorneys, Bankman-Fried has given a number of interviews to news organizations since his company declared bankruptcy. His contention has been that, while he may have made mistakes, he never intended to defraud anyone.

In early December, Bankman-Fried told The Wall Street Journal that he could not account for money that FTX customers transferred to Alameda Research.

In an appearance at a conference sponsored by The New York Times, he said, “Clearly I made a lot of mistakes. There are things I would give anything to be able to do over again. I did not ever try to commit fraud on anyone. I was excited about the prospects of FTX a month ago. I saw it as a thriving, growing business. I was shocked by what happened [in November.]”

His claims contradict the allegations leveled by prosecutors in the indictment unsealed Tuesday, which accuse Bankman-Fried of “willfully and knowingly” defrauding investors and customers.

‘Utter failure’ of controls

Last month, control of FTX and its constituent companies was turned over to John Ray III, an attorney and corporate insolvency specialist who has been brought on to manage multiple companies facing bankruptcy, including the failed energy giant Enron in the early 2000s. His primary task will be to assemble all the remaining assets of FTX in an effort to recover some of the money its customers lost in the exchange’s collapse.

Ray appeared at a hearing held by the House Financial Services Committee on Tuesday, during which he described a company that lacked even the most basic corporate governance structures and was run by a small cabal ill-equipped for the job of running a multi-billion dollar corporation.

In prepared testimony, Ray said, “[N]ever in my career have I seen such an utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever.”

In the broadest sense, Ray said, the company’s failure was the result of the “absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets.”

Under questioning, Ray said that the asset recovery process will take months to complete, and will not make FTX customers whole. “At the end of the day, we’re not going to be able to recover all the losses here,” he said.

The committee had also expected to hear from Bankman-Fried on Tuesday, but the FTX founder’s arrest on Monday made that impossible.

Lawmakers angry

The allegations of fraud and mismanagement at FTX have raised calls in Washington for action by Congress to rein in the cryptocurrency industry, which operates under a poorly defined set of regulatory rules.

House Financial Services Committee Chair Maxine Waters on Tuesday said that she was “deeply troubled” by the revelations coming out about FTX. At the same hearing, U.S. Representative Patrick McHenry, who will take over the chairmanship when Republicans assume control of the House next month, criticized Bankman-Fried but said that he still sees “promise” in digital assets.

Others were less tolerant of the industry, with Representative Brad Sherman, a Democrat, calling the entire industry “a garden of snakes.”

Industry representatives urged lawmakers to tread carefully when it comes to establishing new rules for cryptocurrencies.

“Following the failure of FTX International, it’s understandable that lawmakers want to do something, but they should be wary of passing legislation in haste that would do more harm than good,” Kristin Smith, executive director of the Blockchain Association, wrote on Monday. “Instead, Congress should take its time to investigate the issues we’ve seen and work closely with the crypto industry to find solutions that benefit everyone.”

Increase in US Consumer Prices Eased in November

The increase in U.S. consumer prices eased again in November, rising at their slowest pace since last December, the Labor Department reported Tuesday.

The consumer price index climbed 7.1% in November from a year ago, down sharply from the 7.7% figure recorded in October and continuing a trend of slower-paced inflation since the 9.1% peak in June.

While gasoline prices at service station pumps have dropped markedly in recent months, food prices remain much higher than normal in the world’s biggest economy. But overall, the inflation rate has dropped from the four-decade high in mid-2022, while remaining well above the 2.1% average rate in the three years before the coronavirus pandemic significantly affected the American economy starting in March 2020.

On a month-to-month basis, consumer prices also eased, increasing a tenth of a percentage point in November over October, down from the 0.3% figure in October and 0.6% increases in both August and September.

Gasoline, utility, medical care and used-car prices all fell in November.

The latest consumer price report likely leaves policymakers at the country’s central bank, the Federal Reserve, on track Wednesday to increase its benchmark interest rate by a half percentage point, after it had imposed 0.75% increases at four straight meetings to curb the rampant inflation rate.

The benchmark rate was near zero earlier this year, and now with Wednesday’s expected increase, would reach 4.25 to 4.5%.

The benchmark rate ripples throughout the U.S. economy, pushing borrowing costs higher for businesses buying supplies and raw products and for consumers getting loans to buy cars, furniture and other consumer goods.

U.S. President Joe Biden took note of the slowing pace of inflation and said he hopes prices will be back to normal by the end of next year.

“I want to be clear, it’s going to take time to get inflation back to normal levels,” he said at the White House. “As we make the transition to a more stable growth, we could see setbacks along the way, as well. We shouldn’t take anything for granted.”

Biden said his goal was to get price increases under control without stunting economic growth. Even with millions of families struggling to make ends meet, the U.S. continues to add hundreds of thousands of new jobs to corporate payrolls every month, and the U.S. jobless rate remains near a five-decade low.

South African Researchers Develop New Method to Clean Mining-Polluted Water 

A South African researcher has developed a way to remove contaminants from water used in mining that could help clean up the dirty industry. The award-winning ion exchange method not only cleans the water but captures polluting metals that can then be re-purposed.

At a Johannesburg laboratory, researchers from the University of the Witwatersrand have developed a way to clean acid mine drainage (AMD).

AMD is the runoff of pollutants like sulfuric acid and heavy metals that secrete into waterways, affecting wildlife and rural mining communities.

AMD is often found at gold and coal mines, which are plentiful in South Africa.

Tamlyn Naidu is a post-doctoral research fellow involved in the project.

“What we wanted to do is minimize environmental impact for a lot of these communities that are afflicted by AMD. They have been born into mining communities, they work in mining communities, they’re either scared to report it or to complain about it, because this is their livelihood,” she said.

The ion exchange filtration system that Naidu and her colleagues have developed uses countless polystyrene beads, each the size of a pinhead, which the water passes through.

Unlike a coffee filter, which physically blocks coffee grounds from passing through with water, the beads grab the contaminants in the water chemically.

The passing water, which can be scaled up to clean 1,000 liters an hour, then comes out clear.

“This project though, does something extra. It also wants to extract from the water valuable materials. So what has been identified in some of these streams, especially coal mining streams, is that the acid that’s produced from the mine waters actually dissolves out some rare earth metals,” says Ed Hardwick, the owner of Cwenga Technologies, which is a partner in the research.

Rare earth metals are in huge demand globally because they can be used in new technology like electric vehicles. Being able to extract them adds a financial incentive to cleaning up AMD.

Naidu said she hopes this can empower communities by monetizing the extracted materials from the AMD.

“Ultimately, from this project, we want community members to be involved in something that’s easy for them to operate, that they can extract value from and start, you know, seeing the value that companies have been taking onto the land and taken away from them. And yeah, I guess adding to their quality of life,” she says.

A method to clean up AMD that can be monetized would be good news for the government and communities that are now burdened with the costly task.

“If this was going to be an incentive, it should be on the incentive of the state and that any monies that are obtained from the separation of those minerals that can be repurposed, that can be used, is then fed back into one rehabilitation, but also two, into creating sustainable economies for the communities that are impacted,” says Tarisai Mugunyani, an attorney with the Center for Environmental Rights in Johannesburg.

Researchers say they are hopeful their filtration system, which can be adapted to clean the unique chemistry of AMD at any site, will soon be adopted widely.

It has already gained international attention with Naidu taking the first prize for emerging talents breakthroughs at the Falling Walls Science Summit in Berlin last month.

Naidu said several companies in mining and technology sectors have contacted her about becoming involved.

SEC Charges Former FTX CEO With Defrauding Crypto Investors

The U.S. Securities and Exchange Commission has charged the former CEO of failed cryptocurrency firm FTX with orchestrating a scheme to defraud investors.

An SEC complaint filed Tuesday alleges that Sam Bankman-Fried raised more than $1.8 billion from equity investors since May 2019 by promoting FTX as a safe, responsible platform for trading crypto assets.

The civil complaint says Bankman-Fried diverted customer funds to Alameda Research LLC, his privately-held crypto fund, without telling them. The complaint also says Bankman-Fried commingled FTX customers’ funds at Alameda to make undisclosed venture investments, lavish real estate purchases, and large political donations.

“Bankman-Fried placed billions of dollars of FTX customer funds into Alameda. He then used Alameda as his personal piggy bank to buy luxury condominiums, support political campaigns, and make private investments, among other uses,” the complaint reads. “None of this was disclosed to FTX equity investors or to the platform’s trading customers.”

Alameda did not segregate FTX investor funds and Alameda investments, the SEC said, using that money to “indiscriminately fund its trading operations,” as well as other ventures of Bankman-Fried.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”

Bankman-Fried was arrested Monday in the Bahamas at the request of the U.S. government, U.S. and Bahamian authorities said.

The arrest was made after the U.S. filed criminal charges that are expected to be unsealed Tuesday, according to U.S. Attorney Damian Williams. Bankman-Fried had been under criminal investigation by U.S. and Bahamian authorities following the collapse last month of FTX, which filed for bankruptcy on Nov. 11, when it ran out of money after the cryptocurrency equivalent of a bank run.

The SEC charges are separate from the criminal charges expected to be unsealed later Tuesday.

A spokesman for Bankman-Fried had no comment Monday evening. Bankman-Fried has a right to contest his extradition, which could delay but not likely stop his transfer to the U.S.

Bankman-Fried’s arrest comes just a day before he was due to testify in front of the House Financial Services Committee. Rep. Maxine Waters, D-Calif., chairwoman of the committee, said she was “disappointed” that the American public, and FTX’s customers, would not get to see Bankman-Fried testify under oath.

That hearing, however, will be held Tuesday despite the arrest of Bankman-Fried.

Bankman-Fried was one of the world’s wealthiest people on paper, with an estimated net worth of $32 billion. He was a prominent personality in Washington, donating millions of dollars toward mostly left-leaning political causes and Democratic political campaigns. FTX grew to become the second-largest cryptocurrency exchange in the world.

That all unraveled quickly last month, when reports called into question the strength of FTX’s balance sheet. Customers moved to withdraw billions of dollars, but FTX could not meet all the requests because it apparently used its customers deposits to cover bad bets at Bankman-Fried’s investment arm, Alameda Research.

Bankman-Fried said recently that he did not “knowingly” misuse customers’ funds, and said he believes his millions of angry customers will eventually be made whole.

The SEC challenged that assertion Tuesday in its complaint.

“FTX operated behind a veneer of legitimacy Mr. Bankman-Fried created by, among other things, touting its best-in-class controls, including a proprietary ‘risk engine,’ and FTX’s adherence to specific investor protection principles and detailed terms of service. But as we allege in our complaint, that veneer wasn’t just thin, it was fraudulent,” said Gurbir Grewal, director of the SEC’s Division of Enforcement. “FTX’s collapse highlights the very real risks that unregistered crypto asset trading platforms can pose for investors and customers alike.”

DRC’s Conflict Displaced Struggle for Health Care

Fighting between the Democratic Republic of Congo’s military and rebels has since March displaced nearly 400,000 people, with most IDP camps in Nyiragongo territory, where health centers are struggling to cope. Ruth Omar Esther visited a medical center in Nyiragongo and has this report.

New Zealand Imposes Lifetime Ban on Youth Buying Cigarettes

New Zealand on Tuesday passed into law a unique plan to phase out tobacco smoking by imposing a lifetime ban on young people buying cigarettes.

The law states that tobacco can’t ever be sold to anybody born on or after January 1, 2009.

It means the minimum age for buying cigarettes will keep going up and up. In theory, somebody trying to buy a pack of cigarettes 50 years from now would need ID to show they were at least 63 years old.

But health authorities hope smoking will fade away well before then. They have a stated goal of making New Zealand smoke-free by 2025.

The new law also reduces the number of retailers allowed to sell tobacco from about 6,000 to 600 and decreases the amount of nicotine allowed in tobacco that is smoked.

“There is no good reason to allow a product to be sold that kills half the people that use it,” Associate Minister of Health Dr. Ayesha Verrall told lawmakers in Parliament. “And I can tell you that we will end this in the future, as we pass this legislation.”

She said the health system would save billions of dollars from not needing to treat illnesses caused by smoking, such as cancer, heart attacks, strokes, and amputations. She said the bill would create generational change and leave a legacy of better health for youth.

Lawmakers voted along party lines in passing the legislation 76 to 43.

The libertarian ACT party, which opposed the bill, said many small corner stores, known in New Zealand as dairies, would go out of business because they would no longer be able to sell cigarettes.

“We stand opposed to this bill because it’s a bad bill and its bad policy, it’s that straightforward and simple,” said Brooke van Velden, ACT’s deputy leader. “There won’t be better outcomes for New Zealanders.”

She said the gradual ban amounted to “nanny-state prohibition” that would end up creating a large black market. She said prohibition never worked and always ended with unintended consequences.

The law does not affect vaping, which has already become more popular than smoking in New Zealand.

Statistics New Zealand reported last month that 8% of New Zealand adults smoked daily, down from 16% ten years ago. Meanwhile, 8.3% of adults vaped daily, up from less than 1% six years ago.

Smoking rates remain higher among Indigenous Māori, with about 20% reporting they smoked.

New Zealand already restricts cigarette sales to those aged 18 and over, requires tobacco packs to come with graphic health warnings and cigarettes to be sold in standardized packs.

New Zealand in recent years also imposed a series of hefty tax hikes on cigarettes.

The law change was welcomed by several health agencies. Health Coalition Aotearoa said the new law represented the culmination of decades of hard-fought advocacy by health and community organizations.

Explainer: Why Fusion Could Be a Clean-Energy Breakthrough

The Department of Energy planned an announcement Tuesday on a “major scientific breakthrough” at the Lawrence Livermore National Laboratory, one of several sites worldwide where researchers have been trying to develop the possibility of harnessing energy from nuclear fusion. 

It’s a technology that has the potential to one day accelerate the planet’s shift away from fossil fuels, which are the major contributors to climate change. The technology has long struggled with daunting challenges. 

Here’s a look at exactly what nuclear fusion is, and some of the difficulties in turning it into the cheap and carbon-free energy source that scientists believe it can be. 

What is nuclear fusion? 

Look up, and it’s happening right above you — nuclear fusion reactions power the sun and other stars. 

The reaction happens when two light nuclei merge to form a single heavier nucleus. Because the total mass of that single nucleus is less than the mass of the two original nuclei, the leftover mass is energy that is released in the process, according to the Department of Energy. 

In the case of the sun, its intense heat — millions of degrees Celsius — and the pressure exerted by its gravity allow atoms that would otherwise repel each other to fuse. 

Scientists have long understood how nuclear fusion has worked and have been trying to duplicate the process on Earth as far back as the 1930s. Current efforts focus on fusing a pair of hydrogen isotopes — deuterium and tritium — according to the Department of Energy, which says that particular combination releases “much more energy than most fusion reactions” and requires less heat to do so. 

How valuable would this be?

Daniel Kammen, a professor of energy and society at the University of California at Berkeley, said nuclear fusion offers the possibility of “basically unlimited” fuel if the technology can be made commercially viable. The elements needed are available in seawater. 

It’s also a process that doesn’t produce the radioactive waste of nuclear fission, Kammen said. 

How are scientists trying to do this? 

One way scientists have tried to recreate nuclear fusion involves what’s called a tokamak — a doughnut-shaped vacuum chamber that uses powerful magnets to turn fuel into a superheated plasma (between 150 million and 300 million degrees Celsius) where fusion may occur. 

The Livermore lab uses a different technique, with researchers firing a 192-beam laser at a small capsule filled with deuterium-tritium fuel. The lab reported that an August 2021 test produced 1.35 megajoules of fusion energy — about 70% of the energy fired at the target. The lab said several subsequent experiments showed declining results, but researchers believed they had identified ways to improve the quality of the fuel capsule and the lasers’ symmetry. 

“The most critical feature of moving fusion from theory to commercial reality is getting more energy out than in,” Kammen said. 

Franco-US Satellite Set for Unprecedented Survey of Earth’s Water

A Franco-U.S. satellite is due for launch this week on a mission to survey with unprecedented accuracy nearly all water on Earth’s surface for the first time and help scientists investigate its impact on Earth’s climate.

For NASA and France’s space agency CNES, which have worked together in the field for 30 years, it’s a landmark scientific mission with a billion-dollar budget.

French President Emmanuel Macron went to NASA’s Washington headquarters at the end of November alongside U.S. Vice President Kamala Harris.

He highlighted the liftoff — scheduled for early Thursday on the U.S. West Coast — of the Surface Water and Ocean Topography (SWOT) mission to monitor the levels of oceans, lakes and rivers, including in remote locations.

Its predecessor, TOPEX/Poseidon, launched in 1992, was also a Franco-U.S. joint venture that measured ocean surface to an accuracy of 4.2 centimeters (1.7 inches).

It aided the forecast of the 1997-1998 El Nino weather phenomenon and improved understanding of ocean circulation and its effect on global climate.

The 2.2-metric ton SWOT mission will be put into orbit from Vandenberg Space Force Base in California atop a SpaceX Falcon 9 rocket.

The satellite’s primary payload is an innovative instrument to measure the height of water called KaRin, or Ka-band radar interferometer. Its two antennas, separated by a big boom, create parallel swaths of data.

“We’re going to get 10 times better resolution than with current technologies to measure sea-surface height and understand the ocean fronts and eddies that help shape climate,” said NASA Earth Science Division Director Karen St. Germain.

“It’s like looking at a car number plate from space when before we could only see a street,” added Thierry Lafon, SWOT project leader at the CNES.

The stakes are high. While the impact of major ocean currents such as the Gulf Stream is known, more local flows and eddies covering dozens of kilometers remain more of a mystery.

But they too affect sea water surface temperatures and heat transfer as well as the absorption by the oceans of carbon dioxide from the atmosphere.

SWOT will improve weather and climate modeling, the observation of coastal erosion and help track how fresh and saltwater bodies change over time.

With an “optimal” orbit of 890 kilometers (about 550 miles) above Earth, Lafon said SWOT will “take in all the components that affect water levels such as tides and the sun.”

NASA said SWOT will survey nearly all water on Earth’s surface for the first time.

It will monitor water levels, surface areas and quantities at more than 20 million lakes with shores of more than 250 meters. The entire length of rivers more than 100 meters wide will also be observed.

Water management, flood and drought prevention will be improved, said Lafon.

Flying the satellite to Vandenberg from the Thales Alenia Space (TAS) site in Cannes, southern France, proved a headache.

“Due to the conflict in Ukraine, there were no more Antonov 124s available, and the 747 cargo is too small,” said TAS project leader Christophe Duplay. “We decided to ask the [U.S. Air Force] to provide one of its C-5 Galaxies.”

And that meant counting on NASA to have the air force supply one of its rare giant aircraft to ship the huge payload.

SWOT has an estimated three-year lifetime — although Lafon said “nothing precludes the mission to last five to eight years” — and is set to become the first satellite to make a controlled reentry into Earth’s atmosphere, reducing the amount of space debris, in line with the French space operations act.

Nearly 80% of the 400 kilos (880 pounds) of onboard fuel will be used to that end.

France to Offer Free Condoms for Those 25 and Younger

French President Emmanuel Macron says free condoms will be available in pharmacies for any adult up to the age of 25 starting next year.

The new measure comes as the rate of sexually transmitted diseases and inflation are both on the rise in France.

Originally, Macron announced that the condoms would be available to people between the ages of 18 to 25, but he was challenged on social media about not making the condoms available to minors and he decided to expand the program to anyone up to the age of 25. 

Girls and women already receive free birth control in France. 

Some information in this report came from The Associated Press.

In Wider Diversity Push, Norway Proposes 40% Gender Quota for Large Unlisted Firms 

Large private Norwegian firms must have boards that comprise at least 40% of women or they will be shut down, the government proposed in a bill on Monday, in a further push to break the glass ceiling preventing women from reaching top positions.

The Nordic country was the first in the world to introduce a 40% gender quota on the boards of listed companies, in 2005, kickstarting an international push to force companies to have more women on boards.

Last month, the European Parliament passed a law forcing large listed companies in the European Union to have a minimum 40% of non-executive board members as women from mid-2026. EU states have already approved the law.

Now the center-left government in Oslo is recommending that large private companies, not just listed ones, should have a 40% gender quota.

“Companies are not good enough in using the skills of both genders. It is high time this changes,” Industry Minister Jan Christian Vestre said in a statement.

The proportion of women on boards in private firms is currently 20%, the government said, up from 15% two decades ago.

“It has taken 20 years to increase the share by 5 percentage points. If we continue at this tempo, we will never reach our goal [of having gender balance],” Equality Minister Anette Trettebergstuen said.

The bill would not apply to smaller private companies in order to be “appropriate and not [be] more extensive than necessary”, the statement said. The bill, if voted in its current state, would affect 3-7% of private companies.

The Cabinet rules in a minority in order to pass laws. It is likely this bill could pass with the support of a leftwing party in parliament, the Socialist Left, which supports the Cabinet.

EXPLAINER-UN Nature Summit Puts Industry on Alert to Disclose More

Industry executives have joined activists and negotiators from nearly 200 countries at this month’s U.N. nature summit in Montreal, where negotiations on a global pact to protect nature could lead to tougher disclosure requirements for businesses.

Sectors such as mining, agriculture, oil and fashion are under scrutiny at the COP15 talks, due to their heavy impact on nature with activities that can contaminate soil, foul waterways or pollute the air.

As negotiators work to agree on conservation targets by the summit’s scheduled end on December 19, momentum is building for a measure to require businesses to disclose their harm to the environment.

The measure, as currently drafted, would also ask companies to halve those negative impacts by 2030, which could mean additional costs for businesses, said Franck Gbaguidi, senior analyst for energy, climate and resources at the Eurasia Group risk advisory.

But a weak deal without global agreement on how businesses should behave could also raise company costs — by opening the door to a global patchwork of different biodiversity regulations and requirements that makes compliance more difficult, Eurasia Group said in a policy statement.

Here is a look at how key sectors could be affected by the COP15 talks:

Fashion/Retail

Fashion and retail are facing pressure from consumers and governments to reduce waste and emissions throughout their operations.

For them, a strong deal that forces all companies to report any harm would work toward assuaging some consumer concerns.

In a letter to world governments in October, more than 330 companies including Swedish fashion giant H&M Group, furniture maker IKEA, British pharmaceutical and biotech company GSK and Switzerland’s Nestle came out in support of a COP15 deal that includes mandatory disclosure of companies’ environmental impacts by 2030.

Smaller companies with limited resources for monitoring and accounting could find a disclosure requirement more challenging.

Mining

For companies mining metals and coal, an environmental disclosure requirement could force companies to reveal the impacts not just from the blasting and drilling they do on site, but also from the logging and deforestation carried out in creating access roads.

Mining companies are also concerned about the central goal of the COP15 talks — to set aside 30% of Earth’s land and ocean areas for conservation by 2030. That could cut into areas rich with resources for extraction.

“There are going to be some places which are just going to be ‘no go areas’, and that can be hard for the mining sector,” said Aimee Boulanger, executive director of the Initiative for Responsible Mining Assurance.

The International Council on Mining and Metals, which represents 26 of the world’s largest mining companies, would back a deal that sets “a level playing field” with uniform rules in all regions, said the group’s chief executive, Rohitesh Dhawan.

Agriculture

With new disclosure rules, the farming sector would face an increased burden of reporting on activities like land clearing and pesticide use.

Hefty reporting obligations could burden smaller farms and ranches, some industry groups warned.

“A lot of our producers are family businesses,” said Larry Thomas, manager environment and sustainability with the Canadian Cattle Association.

The agriculture sector will likely escape a separate proposed goal to slash pesticide in half, said the Eurasia Group analyst Gbaguidi, following opposition from developing countries like Brazil, Argentina, and Paraguay due to food shortages and higher prices.

“Because of the food crisis, a lot of emerging markets are just not as open as they would have been on setting bold targets related to the agricultural sector,” Gbaguidi said.

Oil

Following COP15, oil companies are expected to ramp up their internal resources for reporting on and disclosing how oil drilling and exploration activities impact nature as well, Gbaguidi said.

The American Petroleum Institute did not respond to a request for comment on the COP15 talks.

The Canadian Association of Petroleum Producers said the country’s oil and natural gas industry wants to minimize marine and land disturbances, while also quickly restoring lands degraded by their operations to natural landscapes, CAPP spokesperson Jay Averill said.

US Teases ‘Major’ Science News Amid Fusion Energy Reports

The U.S. Department of Energy said Sunday it would announce a “major scientific breakthrough” this week, after media reported a federal laboratory had recently achieved a major milestone in nuclear fusion research.

The Financial Times reported Sunday that scientists in the California-based Lawrence Livermore National Laboratory (LLNL) had achieved a “net energy gain” from an experimental fusion reactor.

That would represent the first time that researchers have successfully produced more energy in a fusion reaction — the same type that powers the Sun — than was consumed during the process, a potentially major step in the pursuit of zero-carbon power.

Energy Department and LLNL spokespeople told AFP they could not comment or provide confirmation regarding the FT report, but said US Energy Secretary Jennifer Granholm would “announce a major scientific breakthrough” on Tuesday.

The LLNL spokesperson added that their “analysis is still ongoing.”

“We look forward to sharing more on Tuesday when that process is complete,” she said.

The fusion reaction that produced a 120 percent net energy gain occurred in the past two weeks, the FT said, citing three people with knowledge of the preliminary results.

The Washington Post later reported two people familiar with the research confirmed the development, with a senior fusion scientist telling the newspaper, “To most of us, this was only a matter of time.”

Nuclear fusion is considered by some scientists to be a potential energy of the future, particularly as it produces little waste and no greenhouse gases.

“If this fusion energy breakthrough is true, it could be a game changer for the world,” tweeted Ted Lieu, a member of Congress from California.

Fusion differs from fission, the technique currently used in nuclear power plants, by fusing two atomic nuclei instead of splitting one.

The LLNL fusion facility consists of almost 200 lasers the size of three football fields, which bombard a tiny spot with high levels of energy to initiate a fusion reaction.

US Inflation Will Be Much Lower by End of 2023 – Yellen

U.S. Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. inflation in 2023, barring an unexpected shock.

“I believe by the end of next year you will see much lower inflation if there’s not … an unanticipated shock,” she told CBS’ ’60 Minutes’ in an interview released Sunday.

Asked about the likelihood of recession, the former Federal Reserve chair said, “There’s a risk of a recession. But … it certainly isn’t, in my view, something that is necessary to bring inflation down.”

Yellen’s comment came days before the Fed is expected to slow the aggressive pace of interest rate increases it has pursued this year. Fed Chair Jerome Powell has telegraphed a smaller, half-of-a-percentage point increase in the policy rate, to a range of 4.25%-4.5%, after four 75-basis point hikes this year.

Yellen told CBS that economic growth was slowing substantially, inflation was easing and she remained hopeful that the labor market would remain healthy.

She said she hoped the spike in inflation seen this year would be short-lived and said the U.S. government had learned “a lotta lessons” about the need to curtail inflation after high prices seen in the 1970s.

Shipping costs had come down and long delivery lags had eased, while gasoline prices at the pump were “way down.”

“I think we’ll see a substantial reduction in inflation in the year ahead,” she said.

Indonesia Balancing Climate, Energy Needs in Effort to Reduce Coal Use

One of the challenges of fighting climate change is balancing the need to shift to cleaner sources of energy in the future with the need to keep the lights on in the here and now. It’s no different for Indonesia, with its rapidly growing economy, as VOA’s Yuni Salim explains in this report narrated by Nova Poerwadi.

NASA’s Orion Capsule Blazes Home From Test Flight to Moon 

NASA’s Orion capsule made a blisteringly fast return from the moon Sunday, parachuting into the Pacific off Mexico to conclude a test flight that should clear the way for astronauts on the next lunar flyby.

The incoming capsule hit the atmosphere at Mach 32, or 32 times the speed of sound, and endured reentry temperatures of 5,000 degrees Fahrenheit (2,760 degrees Celsius) before splashing down west of Baja California near Guadalupe Island. A Navy ship quickly moved in to recover the spacecraft and its silent occupants — three test dummies rigged with vibration sensors and radiation monitors.

NASA needed a successful splashdown to stay on track for the next Orion flight around the moon, currently targeted for 2024. Four astronauts will make the trip. That will be followed by a two-person lunar landing as early as 2025.

Astronauts last landed on the moon 50 years ago Sunday. After touching down on Dec. 11, 1972, Apollo 17’s Eugene Cernan and Harrison Schmitt spent three days exploring the lunar surface, the longest stay of the Apollo era. They were the last of the 12 moonwalkers.

Top China Expert Says COVID ‘Spreading Rapidly’ After Rules Easing

One of China’s top health experts has warned of a surge in COVID-19 cases, state media said Sunday, in the wake of the government’s decision to abandon its hardline coronavirus strategy.

Shops and restaurants in Beijing are deserted as the country awaits a spike in infections following the decision to reduce the scope of mandatory testing, allow some positive cases to quarantine at home and end large-scale lockdowns.

Top epidemiologist Zhong Nanshan told state media in an interview published Sunday that the Omicron strain of the virus prevalent in China was highly transmissible and could lead to a surge in cases.

“The [current] Omicron mutation… is very contagious… one person can transmit to 22 people,” said Zhong, a leading advisor to the government throughout the pandemic.

“Currently, the epidemic in China is… spreading rapidly, and under such circumstances, no matter how strong the prevention and control is, it will be difficult to completely cut off the transmission chain.”

The easing of China’s so-called “zero-COVID” policy followed nationwide protests against harsh virus rules that had battered the economy and confined millions to their homes.

But the country is now facing a surge of cases it is ill-prepared to handle, with millions of elderly still not fully vaccinated and underfunded hospitals lacking the capacity to take on huge numbers of patients.

The country has one intensive care unit bed for 10,000 people, Jiao Yahui, director of the Department of Medical Affairs at the National Health Commission, warned Friday.

She said 106,000 doctors and 177,700 nurses will be redirected to intensive care units to cope with the spike in coronavirus patients but did not offer details on how this would affect the health system’s ability to treat other diseases.

‘I’m afraid to step out’

Long lines sprung up outside pharmacies in Beijing on Sunday as residents rushed to stockpile cold and fever medicines and antigen test kits.

Some told AFP they were ordering drugs from pharmacies in nearby cities.

“I’ve asked my family in Shijiazhuang to courier fever medicine because nearby pharmacies don’t have stocks,” said Julie Jiang, a Beijing resident.

Dozens of restaurants and small businesses in Beijing put up signs saying they were “temporarily closed”, without offering details.

Several major online grocery and food delivery platforms including Meituan, Fresh Hippo and Ding Dong were struggling to operate in Beijing without enough delivery drivers.

“I’m afraid to step out,” said Liu Cheng, a mother of two young children living in central Beijing’s Jianguomen area.

“Many of my friends with COVID symptoms have tested positive when self-testing, but they haven’t reported this to the authorities or gone to the hospital.”

Official caseloads in China have dropped sharply in the wake of the government’s decision to scrap routine mass testing, with only special groups including healthcare workers and delivery drivers exempt from the rules.