Month: June 2024

Study: Luxury sales flatten amid creativity crisis, price hikes

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MILAN — The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.

Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming.”

Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted,” said Bain partner Claudia D’Arpizio.

She cited a “creativity crisis,” in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fueled growth before the pandemic.

“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,” D’Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.”

She said some “tweaks” are needed on strategy and price points, adding that “you can’t grow without the middle class and younger generations.”

Among major fashion houses, Gucci and Moschino have made runway debuts of their new creative directions, while the first Valentino collection by the new creative director hits the runway in September. Chanel has the position to fill after the incumbent resigned earlier this month.

While inflation is one element of price hikes, D’Arpizio said brands are also refocusing on the estimated 6 million to 8 million consumers at the top of the pyramid as they search for better profit margins. At the same time, there has been less rejuvenation in the offerings.

Steep price increases for items that don’t show significant innovation, and feel like something they have seen before, leaves customers “upset and puzzled.”

Flat global luxury sales forecasts follow a pent-up post-pandemic spending surge that pushed sales during the 2021-23 period up 24% over 2019 levels.

Last year, sales of personal luxury goods grew by 4% to 362 billion euros (about $388 billion) from 349 euros in 2022, due largely to a resurgence of U.S. and Asian tourism to Europe fueling purchases. Add in luxury travel, fine art, cars and yachts, the vast global luxury market expanded to 1.5 trillion euros last year — highlighting a trend toward experiences over tangible goods.

Japan is a bright spot as the return of foreign tourists with the yen at the lowest level to the U.S. dollar in 20 years, while Europe continues strong trends due to tourist spending and an increase in local consumption, especially in French and Italian cities.
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In South Africa, traditional healers join fight against HIV

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BUSHBUCKRIDGE, South Africa — The walls of Shadrack Mashabane’s hut in the rural South African town of Bushbuckridge are covered with traditional fabrics, with a small window the only source of light. What stands out among the herbs and medicines in glass bottles is a white box containing an HIV testing kit.

Mashabane is one of at least 15 traditional healers in the town who, in a pilot study, have been trained by University of Witwatersrand researchers to conduct HIV testing and counseling in an effort to ensure as many South Africans as possible know their status.

It’s part of the largest known effort in the country to involve traditional healers in a public health goal and study the results. Later this year, at least 325 other healers will undergo the training and become certified HIV counselors. Researchers will compare rates of HIV testing by healers and clinics.

Most traditional healers were already knowledgeable about HIV — some from personal experience — and were eager to get involved, researchers said.

South Africa has one of the highest rates of HIV in the world. Stigma remains in many communities around the disease and its treatment — even though HIV antiretroviral medication and pre-exposure prophylaxis are free. Concern about privacy at clinics also keeps people from seeking help.

Many people in rural areas see traditional healers as their first point of contact for illnesses, and the project hopes they can help change attitudes.

South Africa’s large younger population is a special concern. A government study released in December showed that people living with HIV had fallen from 14% in 2017 to 12.7% in 2022, but HIV prevalence rose among girls between 15 and 19, a phenomenon largely attributed to older men sleeping with them.

Around 2,000 traditional healers operate in the Mpumalanga province town of Bushbuckridge, home to about 750,000 people, providing traditional and spiritual services.

Mashabane said patients at first found it difficult to believe he was offering HIV testing — a service they had long expected to be available only at health clinics.

“Many were not convinced. I had to show them my certificate to prove I was qualified to do this,” he said.

The process includes the signing of consent forms to be tested, along with a follow-up with Mashabane to ensure that patients who test positive receive their treatment from the local clinic.

He said breaking the news to a patient who has tested positive for HIV is not that difficult because the illness can be treated with readily available medication. But in many cases, he has to accompany the patient to the clinic “to make it easier for them.”

Florence Khoza is another traditional healer who has been trained to test for HIV. She said risky sexual behavior is common. She often dispenses traditional herbs and medication to treat gonorrhea, but now she goes further by advising patients to test for HIV.

“I tell them it is in their best interest,” she said.

Khoza said many patients fear going to the clinic or hospital and having other community members see them collecting HIV treatment.

“In many cases I collect the HIV medication on their behalf,” she said.

Ryan Wagner, a senior research fellow with the study, said testing and treating via traditional medicine practitioners could “ultimately lead to the end of new HIV cases in communities such as rural Mpumalanga, which has some of the largest HIV burden globally.”

Researchers hope their findings will inspire South Africa’s government to roll out such training across the country. 
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Conservation efforts bring Iberian lynx back from brink of extinction

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MADRID — Things are looking up for the Iberian lynx.

Just over two decades ago, the pointy-eared wild cat was on the brink of extinction, but as of Thursday the International Union for Conservation of Nature says it’s no longer an endangered species.

Successful conservation efforts mean that the animal, native to Spain and Portugal, is now barely a vulnerable species, according to the latest version of the IUCN Red List.

In 2001, there were only 62 mature Iberian lynx — medium-sized, mottled brown cats with characteristic pointed ears and a pair of beard-like tufts of facial hair — on the Iberian Peninsula. The species’ disappearance was closely linked to that of its main prey, the European rabbit, as well as habitat degradation and human activity.

Alarms went off and breeding, reintroduction and protection projects were started, as well as efforts to restore habitats like dense woodland, Mediterranean scrublands and pastures. More than two decades later, in 2022, nature reserves in southern Spain and Portugal contained 648 adult specimens. The latest census, from last year, shows that there are more than 2,000 adults and juveniles, the IUCN said.

“It’s really a huge success, an exponential increase in the population size,” Craig Hilton-Taylor, head of the IUCN Red list unit, told The Associated Press.

One of the keys to their recovery has been the attention given to the rabbit population, which had been affected by changes in agricultural production. Their recovery has led to a steady increase in the lynx population, Hilton-Taylor said.

“The greatest recovery of a cat species ever achieved through conservation (…) is the result of committed collaboration between public bodies, scientific institutions, NGOs, private companies, and community members including local landowners, farmers, gamekeepers and hunters,” Francisco Javier Salcedo Ortiz, who coordinates the EU-funded LIFE Lynx-Connect project, said in a statement.

IUCN has also worked with local communities to raise awareness of the importance of the Iberian lynx in the ecosystem, which helped reduce animal deaths due poaching and roadkill. In addition, farmers receive compensation if the cats kill any of their livestock, Hilton-Taylor said.

Since 2010, more than 400 Iberian lynx have been reintroduced to parts of Portugal and Spain, and now they occupy at least 3,320 square kilometers, an increase from 449 square kilometers in 2005.

“We have to consider every single thing before releasing a lynx, and every four years or so we revise the protocols,” said Ramón Pérez de Ayala, the World Wildlife Fund’s Spain species project manager. WWF is one of the NGOs involved in the project.

While the latest Red List update offers hope for other species in the same situation, the lynx isn’t out of danger just yet, says Hilton-Taylor.

The biggest uncertainty is what will happens to rabbits, an animal vulnerable to virus outbreaks, as well as other diseases that could be transmitted by domestic animals.

“We also worried about issues with climate change, how the habitat will respond to climate change, especially the increasing impact of fires, as we’ve seen in the Mediterranean in the last year or two,” said Hilton-Taylor. 
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Germany assures China that doors still open to discuss EU surcharges

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Shanghai, China — The German vice-chancellor assured China on Saturday that the “doors” remained “open” to discuss EU surcharges on Chinese electric vehicles, without reassuring Beijing which promised to “firmly defend” its manufacturers.

Also, the Minister of Economy and Climate, Robert Habeck is making a visit that seems like a last chance to avoid a trade war between the Old Continent and the second world power, an important economic partner of Germany.

A task further complicated by the political context, the German leader reproached China on Saturday for its economic support for Russia against a backdrop of the invasion of Ukraine, stressing it was “harming” relations between Beijing and Brussels.

China regularly denounces these upcoming surcharges on electric vehicles as being “purely protectionist.”

“These are not punitive customs duties,” Habeck assured Zheng Shanjie, director of the Chinese Economic Planning Agency (NDRC) Saturday, according to a recording sent to AFP by the Chinese Embassy in Germany.

“This is not a punishment,” he insisted.

Up to 28% increase

Without compromise by July 4, the European Commission will impose up to 28% increase in customs duties on imports of Chinese electric vehicles, accusing Beijing of having, according to it, distorted competition by massively subsidizing this sector.

These surcharges would become definitive from November.

“For Europe, I can say that the doors are open and the invitation or offer for discussion has been made several times. Now it must be accepted,” Habeck said at a news conference in Shanghai.

From Brussels, Olof Gill, the EU spokesperson, assured that European Trade Commissioner Valdis Dombrovskis and Chinese Trade Minister Wang Wentao “had a frank and constructive call on Saturday regarding the anti-subsidy investigation of the EU on electric cars produced in China.”

“Both sides will continue to engage at all levels in the coming weeks,” he added.

China vows to defend ‘rights’

Earlier Saturday, the tone had been firm on the Chinese side.

“If the EU shows sincerity, China wants to start negotiations as soon as possible” on the surcharges, Trade Minister Wang told him, according to the English-speaking state television CGTN.

“But if the EU persists in this course, we will take all necessary measures to defend our interests. This will include lodging a complaint with the dispute settlement mechanism of the World Trade Organization (WTO). We will firmly defend the legitimate rights and interests of Chinese enterprises.”

Beijing had already announced Monday that it had launched an anti-dumping investigation into imports of pork and pork products from the European Union.

German and European manufacturers are strongly affected by cheaper Chinese competition. Imports of Chinese electric vehicles into Germany increased tenfold between 2020 and 2023.

China argues that the success of its electricity sector is due to innovation and efficient supply chains, not subsidies.

“(EU) protectionism will not protect (its manufacturers’) competitiveness and will only slow down the global fight against climate change and the promotion of a green transition,” Zheng told Habeck.

“We expect Germany to show leadership within the EU and take the right measures,” implying the cancellation of surcharges, he insisted, according to the New China agency.

Habeck blames Beijing

Such an epilogue seems improbable, with Habeck again blaming Beijing on Saturday for the surge in its trade with Moscow.

“The Russian war of aggression and Chinese support for the Russian government are already harming trade and economic relations between Europe and China,” he said he told his Chinese interlocutors.

China has pledged not to supply weapons to Russia and calls for respect for the territorial integrity of all countries — including Ukraine. But China has never condemned Moscow for its invasion.

Habeck assured Saturday that many “dual-use” goods (both civil and military) were used by Russia after passing through “third countries” — implying China.

“We therefore cannot accept” that the Russian invasion is supported with these products, insisted the German vice-chancellor, calling on Beijing to ban their export to its Russian neighbor.

German car manufacturers still fear a major trade conflict with Beijing, which would undermine their activity in this crucial market. For Mercedes, Volkswagen or BMW, China represents up to 36% of sales volumes.
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2 dead in Kenya youth protests

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Nairobi, Kenya — A 21-year-old man died after being hit by a tear gas canister during protests in Kenya this week, a human rights official and the victim’s relative said Saturday, in the second fatality in connection with the youth-led demonstrations. 

Led largely by Gen-Z Kenyans who have livestreamed the demonstrations against tax increases, the protests have been galvanized by widespread anger over President William Ruto’s economic policies. 

Thursday’s demonstrations in Nairobi were mostly peaceful, but officers fired tear gas and water cannons throughout the day to disperse protesters near parliament. 

According to a Kenya Human Rights Commission official, 21-year-old Evans Kiratu was “hit by a tear gas canister” during the demonstrations. 

“He was rushed to hospital around 6 p.m. on Thursday … and died there,” Ernest Cornel, a spokesperson at the Kenya Human Rights Commission, told AFP. “It is tragic that a young person can lose his life simply for agitating against the high cost of living.” 

The victim’s aunt told national broadcaster Citizen TV that her nephew had died in the hospital before she was able to see him. 

“We are demanding justice for my nephew,” she said. 

The rallies began in Nairobi on Tuesday before spreading across the country, with protesters calling for a national strike on Tuesday. 

Kiratu’s death comes on the heels of another fatality reported Friday, when a police watchdog group said it was investigating allegations that a 29-year-old man was shot by officers in Nairobi after the demonstrations. 

The Independent Policing Oversight Authority said it had “documented the death … allegedly as a result of [a] police shooting” Thursday. 

According to a police report seen by AFP, a 29-year-old man was taken to the hospital in Nairobi around 7 p.m. Thursday, “unconscious with a thigh injury” before “succumbing” to his injuries, without giving further details. 

Several organizations, including Amnesty International Kenya, said that at least 200 people were injured in Nairobi after Thursday’s protests, which saw thousands of people take to the streets across the country.

Following smaller-scale demonstrations in Nairobi earlier in the week, the cash-strapped government agreed to roll back several tax increases laid out in a new bill. 

But Ruto’s administration still intends to increase some taxes, defending the proposed levies as necessary for filling its coffers and cutting reliance on external borrowing. 

The tax increases will pile further pressure on Kenyans, with many already struggling to survive as the cost of living surges and well-paid jobs remain out of reach for young people. 

Organized largely through social media, the protests have caught the government by surprise, with demonstrators now calling for a nationwide shutdown. 

“Tuesday 25th June: #OccupyParliament and Total Shutdown Kenya. A national strike,” read a poster shared widely online, adding that “Gen Z are granting all hard-working Kenyans a day off. Parents keep your children at home in solidarity.” 

After the government agreed to scrap levies on bread purchases and car ownership as well as financial and mobile services, the treasury warned of a 200 billion shilling ($1.5 billion) shortfall. 

The proposed taxes were projected to raise 346.7 billion shillings ($2.7 billion), equivalent to 1.9% of GDP, and reduce the budget deficit from 5.7% to 3.3% of GDP. 

The government has now targeted an increase in fuel prices and export taxes to fill the void left by the changes, a move critics say will make life more expensive in a country battling high inflation. 

Kenya is one of the most dynamic economies in East Africa, but a third of its 51.5 million people live in poverty. 
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China, France launch satellite to better understand universe

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Xichang, China — A French-Chinese satellite blasted off Saturday on a hunt for the mightiest explosions in the universe, in a notable example of cooperation between a Western power and the Asian giant.

Developed by engineers from both countries, the Space Variable Objects Monitor, or SVOM, will seek out gamma-ray bursts, the light from which has traveled billions of light years to reach Earth.

The 930-kilogram (2,050-pound) satellite carrying four instruments — two French, two Chinese — took off around 3 p.m. aboard a Chinese Long March 2-C rocket from a space base in Xichang, in the southwestern province of Sichuan, AFP journalists witnessed.

Gamma-ray bursts generally occur after the explosion of huge stars — those more than 20 times as big as the sun — or the fusion of compact stars.

The extremely bright cosmic beams can give off a blast of energy equivalent to over a billion billion suns.

Observing them is like “looking back in time, as the light from these objects takes a long time to reach us,” Ore Gottlieb, an astrophysicist at the Flatiron Institute’s Center for Astrophysics in New York, told AFP.

“Several mysteries”

The rays carry traces of the gas clouds and galaxies they pass through on their journey through space — valuable data for better understanding the history and evolution of the universe.

“SVOM has the potential to unravel several mysteries in the field of [gamma-ray bursts], including detecting the most distant GRBs in the universe, which correspond to the earliest GRBs,” Gottlieb said.

The most distant bursts identified to date were produced just 630 million years after the Big Bang — when the universe was in its infancy.

“We are … interested in gamma-ray bursts for their own sake, because they are very extreme cosmic explosions which allow us to better understand the death of certain stars,” said Frederic Daigne, an astrophysicist at the Institut d’Astrophysique de Paris.

“All of this data makes it possible to test the laws of physics with phenomena that are impossible to reproduce in the laboratory on Earth,” he said.

Once analyzed, the data could help to better understand the composition of space, the dynamics of gas clouds or other galaxies.

The project stems from a partnership between the French and Chinese space agencies, as well as other scientific and technical groups from both nations.

Space cooperation at this level between the West and China is uncommon, especially since the United States banned all collaboration between NASA and Beijing in 2011.

Race against time

“U.S. concerns on technology transfer have inhibited U.S. allies from collaborating with the Chinese very much, but it does happen occasionally,” said Jonathan McDowell, an astronomer at the Harvard-Smithsonian Center for Astrophysics in the United States.

In 2018, China and France jointly launched CFOSAT, an oceanographic satellite mainly used in marine meteorology.

And several European countries have taken part in China’s Chang’e lunar exploration program.

So, while SVOM is “by no means unique,” it remains “significant” in the context of space collaboration between China and the West, said McDowell.

Once in orbit 625 kilometers (388 miles) above the Earth, the satellite will send its data back to observatories.

The main challenge is that gamma-ray bursts are extremely brief, leaving scientists in a race against time to gather information.

Once it detects a burst, SVOM will send an alert to a team on duty around the clock.

Within five minutes, they will have to rev up a network of telescopes on the ground that will align precisely with the axis of the burst’s source to make more detailed observations.
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Kazakhstan needs to overhaul labor, poverty statistics, experts say

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ALMATY, KAZAKHSTAN — Economic analysts in Kazakhstan say the government is using a formulation for setting the poverty line that fails to capture the number of people living below a humane standard of living. The result, they say, lowers the amount of assistance provided to the poor.

Kazakhstan sets the poverty line at about $70 a month, slightly over $2 a day. That results in an official poverty rate of 5.1% of the population. The World Bank, in a March report, More, Better and Inclusive Jobs in Kazakhstan, said that using its poverty line of $3.65 a day for lower middle-income countries (although the World Bank actually classifies Kazakhstan as upper middle-income) puts the poverty rate at about 10% in 2018.

Meruert Makhmutova, an economist and director of the Almaty-based Public Policy Research Center, said Kazakhstan should adopt the World Bank standard, which she said would result in more people receiving government assistance.

“The switch to $3.65 a day would automatically increase the number of the poor and the government would have to provide targeted social assistance to a greater number of people,” Makhmutova said. “As a result, the government, failing to admit the real scale of poverty, reduces budget spending on social assistance to poor citizens.”

The official Kazakh poverty level is close to the World Bank’s extreme poverty line of $2.15 a day, but Andrey Chebotarev, an Almaty-based economist and director of the Alternativa center for topical research, told VOA that figure is not applicable in Kazakhstan because of climate.

“It’s hard to just survive on the street in Kazakhstan in winter because the weather and climate make it impossible,” he told VOA, referring to winter temperatures that could drop to minus 30 degrees Celsius.

“We need to assess poverty differently,” he said.

Makhmutova also disputed methods authorities use to set the minimum wage and gauge the unemployment level.

Until recently, the minimum wage has been set arbitrarily without consideration of personal incomes or the real cost of living in the country. It was set around $190 a month for 2024, even though the average monthly wage was $890 at the end of last year.

“The government doesn’t use the average wage for setting the minimum wage, that’s why the minimum wage doesn’t grow substantially and its growth in the past few years doesn’t even match the inflation rate,” Makhmutova said.

Baglan Kasenov, the head of the Kazakh Labor and Social Protection Ministry’s department for labor and social partnership, told VOA the Kazakh government had adopted a new methodology to set the minimum wage starting next year. It conforms to International Labor Organization recommendations, he said, and will be based on the median wage and productivity, reaching 50% of the median wage in future. The median wage, where half of workers receive less than that and half receive more, was about $560 a month last year.

The joblessness rate is another contentious issue in Kazakhstan, as authorities, Chebotarev said, now categorize people, for example, farming their kitchen gardens and working without pay in family businesses as “self-employed,” which is new.

Makhmutova said the move “masks unemployment”; the number of jobless has been constant at around 450,000 people or under 5% in the past few years, whereas the number of self-employed is around 2.1 million, according to the government.

“As for unemployment, it’s a Kazakh invention of global scale because we have invented 2 million self-employed and blame everything on them,” Chebotarev said. “Our estimates of unemployment should be revised … but no one in government wants to consider self-employed as jobless.”

World Bank report questioned

Use of the government figures has resulted in criticism of the World Bank report, which claimed that despite declining economic growth, Kazakhstan’s poverty rate had dropped.

Makhmutova questioned the World Bank’s report because it based its analysis on “irrelevant” official Kazakh income and unemployment statistics – figures that are derived from the wrong method to assess poverty as well as being out of date.

She told VOA the report “is not objective in the first place because it relies on statistics provided by the labor ministry which avoids the assessment of the real scale of poverty and unemployment.”

In addition, although the report was published this year, “the latest statistical data on poverty is from 2018, which is why it is irrelevant for the assessment of the current situation,” she said, citing the COVID-19 pandemic and high inflation after Russia invaded Ukraine as having worsened living standards and increased poverty in Kazakhstan since 2018.

In response to Makhmutova’s criticism, the World Bank said it welcomes “critique and debate” over its reports, adding that the report “used the latest available data as is standard in World Bank reports for analysis.”
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How does heat kill? It confuses your brain, overworks your heart, shuts down your organs

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Half a million Ukrainians in frontline city of Mykolaiv suffer through 3rd year without clean water

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Going into a third year of war, life without clean water has become routine for nearly half a million residents of Ukraine’s frontline city of Mykolaiv. At the beginning of Russia’s full-scale invasion, Russian forces destroyed the water distribution system. As Lesia Bakalets reports, the city has been looking for ways to restore it since then. Video: Vladyslav Smilianets
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US charity sends medical help to Ukraine’s frontline towns

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Since Russia’s full-scale invasion of Ukraine in February 2022, U.S. humanitarian group Project HOPE has provided aid to Ukrainian health clinics and residents of the country’s frontline towns and villages. Yaroslava Movchan has the story, narrated by Anna Rice. Videographer: Dmytro Hlushko.
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Trump, Biden woo voters on TikTok. Will it make a difference?

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President Joe Biden and former president Donald Trump agree on few things, but a ban of the Beijing-based social network TikTok is one of them. Now with a presidential election at stake, both are joining the platform they previously attempted to take down. Will it make a difference on Election Day? Tina Trinh reports.
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China warns of possible ‘trade war’ with EU as Germany’s Habeck heads to Beijing

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Gas company finds 3,300-year-old ship off Israel’s coast

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TEL AVIV, Israel — A company drilling for natural gas off the coast of northern Israel discovered a 3,300-year-old ship and its cargo, one of the oldest known examples of a ship sailing far from land, the Israel Antiquities Authority said Thursday.

The discovery of the late Bronze Age ship so far out at sea indicates that the navigation abilities of ancient seafarers were more advanced than previously thought because they could travel without a line of sight to land, the IAA said.

The great depth at which the ship was found means it has been left undisturbed by waves, currents or fishermen over the millennia, offering greater potential for research, it said.

“The discovery of this boat now changes our entire understanding of ancient mariner abilities. It is the very first to be found at such a great distance with no line of sight to any landmass,” said Jacob Sharvit, head of the IAA marine unit, adding that two similar ships from the same era had been discovered previously, but only close to shore.

Sharvit said the assumption by researchers until now has been that trade during that era was conducted by boats sailing close to the shore, keeping an eye on land while moving from port to port. He said the newly discovered boat’s sailors probably used the sun and the stars to find their way.

The wooden ship sank about 90 kilometers off Israel’s Mediterranean coast and was discovered at a depth of 1,800 meters by Energean, a natural gas company which operates a number of deep-sea natural gas fields in Israel’s territorial waters.

In its work, Energean said it uses a submersible robot to scour the sea floor. About a year ago, it came across the 12- to 14-meter-long ship buried under the muddy bottom, nestled under hundreds of jugs that were thousands of years old.

The boat and its cargo were fully intact, the IAA said, adding that the vessel appeared to have sunk either in a storm or after coming under attack by pirates.

The ship for now is not being retrieved.

Energean worked with the IAA to retrieve two of the jugs, which were likely used for carrying oil, wine or fruit, and bring them to the surface for research.

The IAA identified the jugs as Canaanite, a people who resided in the lands abutting the eastern Mediterranean.
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US bans Russia’s Kaspersky antivirus software

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Washington — U.S. President Joe Biden’s administration on Thursday banned Russia-based cybersecurity firm Kaspersky from providing its popular antivirus products in the United States over national security concerns, the U.S. Commerce Department said.

“Kaspersky will generally no longer be able to, among other activities, sell its software within the United States or provide updates to software already in use,” the agency said in a statement.

The announcement came after a lengthy investigation found Kaspersky’s “continued operations in the United States presented a national security risk due to the Russian Government’s offensive cyber capabilities and capacity to influence or direct Kaspersky’s operations,” it said.

U.S. Commerce Secretary Gina Raimondo said, “Russia has shown time and again they have the capability and intent to exploit Russian companies, like Kaspersky Lab, to collect and weaponize sensitive U.S. information.”

Kaspersky, in a statement to AFP, said the Commerce Department “made its decision based on the present geopolitical climate and theoretical concerns,” and vowed to “pursue all legally available options to preserve its current operations and relationships.”

“Kaspersky does not engage in activities which threaten U.S. national security and, in fact, has made significant contributions with its reporting and protection from a variety of threat actors that targeted U.S. interests and allies,” the company said.

The move is the first such action taken since an executive order issued under Donald Trump’s presidency gave the Commerce Department the power to investigate whether certain companies pose a national security risk.

Raimondo said the Commerce Department’s actions demonstrated to America’s adversaries that it would not hesitate to act when “their technology poses a risk to the United States and its citizens.”

While Kaspersky is headquartered in Moscow, it has offices in 31 countries around the world, servicing more than 400 million users and 270,000 corporate clients in more than 200 countries, the Commerce Department said.

As well as banning the sale of Kaspersky’s antivirus software, the Commerce Department also added three entities linked to the firm to a list of companies deemed to be a national security concern, “for their cooperation with Russian military and intelligence authorities in support of the Russian government’s cyber intelligence objectives.”

The Commerce Department said it “strongly encouraged” users to switch to new vendors, although its decision does not ban them from using the software should they choose to do so.

Kaspersky is allowed to continue certain operations in the United States, including providing antivirus updates, until September 29, “in order to minimize disruption to US consumers and businesses and to give them time to find suitable alternatives,” it added.  
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Indian toxic alcohol brew kills at least 34

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Mumbai, India — A batch of toxic illegal alcohol in India has killed at least 34 people with more than 100 others rushed to hospital, Tamil Nadu state officials told reporters Thursday.

The deadly mix of locally brewed arrack drink was laced with poisonous methanol, chief minister M.K. Stalin said, the Press Trust of India news agency reported.

Stalin said arrests have been made over the deaths and warned such crimes “ruin society and will be suppressed with an iron fist,” according to a statement from his office.

Hundreds of people die every year in India from cheap alcohol made in backstreet distilleries.

In order to increase its potency the liquor is often spiked with methanol which can cause blindness, liver damage and death.

In the Tamil Nadu case, more than 100 people were hospitalized according to M.S. Prasanth, top government official in the state’s Kallakurichi district, quoted by Indian media.

State governor R.N. Ravi was “deeply shocked” at the deaths, adding that “many more victims are in serious condition battling for (their) lives,” writing on social media platform X.

Tamil Nadu is not a dry state, but liquor traded on the black market comes at a lower price than alcohol sold legally.

Selling and consuming liquor is prohibited in several other parts of India, further driving the thriving black market for potent and sometimes lethal backstreet moonshine.

Last year, poisonous alcohol killed at least 27 people in one sitting in the eastern Indian state of Bihar, while in 2022, at least 42 people died in Gujarat.
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