Countries Agree to Create Green Shipping Lanes in Pursuit of Zero Carbon

A coalition of 19 countries including Britain and the United States on Wednesday agreed to create zero emissions shipping trade routes between ports to speed up the decarbonization of the global maritime industry, officials involved said. 

Shipping, which transports about 90% of world trade, accounts for nearly 3% of the world’s CO2 emissions.

U.N. shipping agency the International Maritime Organization (IMO) has said it aims to reduce overall greenhouse gas emissions from ships by 50% from 2008 levels by 2050. The goal is not aligned with the 2015 Paris Agreement on climate change and the sector is under pressure to be more ambitious.

The signatory countries involved in the ‘Clydebank Declaration’, which was launched at the COP26 climate summit in Glasgow, agreed to support the establishment of at least six green corridors by 2025, which will require developing supplies of zero emissions fuels, the infrastructure required for decarbonization and regulatory frameworks.

“It is our aspiration to see many more corridors in operation by 2030,” their mission statement said.

Britain’s maritime minister Robert Courts said countries alone would not be able to decarbonize shipping routes without the commitment of private and non-governmental sectors.

“The UK and indeed many of the countries, companies and NGOs here today believe zero emissions international shipping is possible by 2050,” Courts said at the launch.

U.S. Transportation Secretary Pete Buttigieg said the declaration was “a big step forward for green shipping corridors and collective action”.

Buttigieg added that the United States was “pressing for the IMO to adopt a goal of zero emissions for international shipping by 2050”.

The IMO’s Secretary General Kitack Lim said on Saturday “we must upgrade our ambition, keeping up with the latest developments in the global community”.

Industry needs regulatory help

Jan Dieleman, president of ocean transportation with agri business giant Cargill, one of the world’s biggest ship charterers, said “the real challenge is to turn any statements (at COP26) into something meaningful”.

“The majority of the industry has accepted we need to decarbonize,” he told Reuters.

“Industry leadership needs to be followed up with global regulation and policies to ensure industry-wide transformation. We will not succeed without global regulation.”

Christian Ingerslev, chief executive of Maersk Tankers, which has over 210 oil products tankers under commercial management, said it had spent over $30 million over the last three years to bring their carbon emissions down through digital solutions.

“We need governments to not only back the regulatory push but also to help create the zero emissions fuels at scale,” he said.

“The only way this is going to work is to set a market-based measure through a carbon tax.”

Other signatory countries are Australia, Belgium, Canada, Chile, Costa Rica, Denmark, Fiji, Finland, France, Germany, Republic of Ireland, Japan, Marshall Islands, Netherlands, New Zealand, Norway and Sweden.

Pfizer Asks US Regulators to Expand Booster Shot of COVID-19 Vaccine to All Adult Americans

U.S.-based drugmaker Pfizer is seeking to make a booster shot of its COVID-19 vaccine available to all adult Americans 18 years of age and older.

Pfizer filed the request Tuesday with the U.S. Food and Drug Administration, citing a new clinical trial involving 10,000 volunteers who received a third injection of the two-dose vaccine, which it developed in collaboration with German-based BioNTech. According to Pfizer, the preliminary results show the third shot boosted a person’s protection against the virus to about 95%.

The request comes just weeks after the FDA and the U.S. Centers for Disease Control and Prevention authorized a third shot of the Pfizer vaccine for Americans 65 and older, adults at a high risk of severe illness, plus front-line workers such as teachers, health care workers and others whose jobs place them at greater risk of contracting COVID-19. The Pfizer booster shot is available for people regardless of whether they initially received the two-shot Moderna vaccine or the single-dose Johnson & Johnson vaccine, which offers less protection than either the Pfizer or Moderna vaccines.

Astra-Zeneca’s separate unit

British-Swedish drugmaker Astra-Zeneca announced Tuesday that it is creating a separate unit entirely devoted to developing and manufacturing COVID-19 vaccines and treatments. The company’s two-shot vaccine, developed in collaboration with the University of Oxford, had a troubled rollout due to manufacturing delays and confirmation of a link between the vaccine and rare, possibly fatal blood clots, prompting some governments to limit its use among certain age groups.

But the AstraZeneca vaccine is cheaper and easier to use because it does not need to be stored at ultra-cold temperatures than either the Pfizer or Moderna vaccines. The vaccine makes up the bulk of the vaccine supply of COVAX, the international vaccine sharing mechanism for the world’s poorest nations supported by the United Nations and the health organizations Gavi and CEPI.

Meanwhile, the current surge of new COVID-19 infections in Germany prompted Dr. Christian Drosten, the head of virology at Berlin’s Charite Hospital, to issue a warning Wednesday that 100,000 people could die if the vaccination rate does not pick up quickly, and that Germany faces “a very tough winter with new shutdown measures.”

Drosten’s warning coincided with an announcement by the country’s Robert Koch Institute of 39,676 new COVID-19 infections across Germany, a new one-day record. Charite Hospital announced Tuesday that it is postponing all non-critical operations due to the growing rate of new COVID-19 patients.

In a related matter, the country’s vaccine advisory committee Wednesday recommended that people 30 years of age and under be vaccinated only with the Pfizer vaccine. The committee cited a higher risk of younger people developing a rare side effect of myocarditis, an inflammation of the heart, from the Moderna vaccine than the Pfizer version.

NFL vaccination

In the U.S. sports world, quarterback Aaron Rodgers of the National Football League’s Green Bay Packers franchise acknowledged “misleading” the public about his vaccination status shortly before the start of the current season.

Rodgers has been under intense criticism since last week’s revelation that he had tested positive for COVID-19, contradicting his earlier claims back in August that he had been “immunized.” Rodgers told radio sports host Pat McAfee after his diagnosis that he had not taken any of the approved vaccines because of concerns about adverse side effects, and instead relied on homeopathic treatments as an alternative.

In a follow-up interview with McAfee Tuesday, Rodgers said he took “full responsibility” for his comments back in August, but also said that he continued to stand by his concerns about the vaccines. He also said he expects to be cleared to rejoin the Packers in time for Sunday’s game against the Seattle Seahawks.

The NFL has fined Rodgers and teammate Allen Lazard $14,650 each for violating the league’s COVID-19 protocols for unvaccinated players when they attended a Halloween party despite their status. The Packers were also fined $300,000 for failing to discipline the players and for not reporting the violations to NFL officials.

Some information for this report came from the Associated Press and Reuters.

US Food Banks Struggle to Feed Hungry Amid Surging Prices

U.S. food banks already dealing with increased demand from families sidelined by the pandemic now face a new challenge — surging food prices and supply chain issues walloping the nation.   

The higher costs and limited availability mean some families may get smaller servings or substitutions for staples such as peanut butter, which costs nearly double what it did a year ago. As holidays approach, some food banks worry they won’t have enough stuffing and cranberry sauce for Thanksgiving and Christmas.   

“What happens when food prices go up is food insecurity for those who are experiencing it just gets worse,” said Katie Fitzgerald, chief operating officer of Feeding America, a nonprofit organization that coordinates the efforts of more than 200 food banks across the country.   

Food banks that expanded to meet unprecedented demand brought on by the pandemic won’t be able to absorb forever food costs that are two to three times what they used to be, she said. 

Supply chain disruptions, lower inventory and labor shortages have all contributed to increased costs for charities on which tens of millions of people in the U.S. rely on for nutrition. Donated food is more expensive to move because transportation costs are up, and bottlenecks at factories and ports make it difficult to get goods of all kinds.   

If a food bank has to swap out for smaller sizes of canned tuna or make substitutions in order to stretch their dollars, Fitzgerald said, it’s like adding “insult to injury” to a family reeling from uncertainty.   

In the prohibitively expensive San Francisco Bay Area, the Alameda County Community Food Bank in Oakland is spending an extra $60,000 a month on food. Combined with increased demand, it is now shelling out $1 million a month to distribute 4.5 million pounds (2 million kilograms) of food, said Michael Altfest, the Oakland food bank’s director of community engagement.   

Pre-pandemic, it was spending a quarter of the money for 2.5 million pounds (1.2 million kilograms) of food. 

The cost of canned green beans and peaches is up nearly 9% for them, Altfest said; canned tuna and frozen tilapia up more than 6%; and a case of 5-pound frozen chickens for holiday tables is up 13%. The price for dry oatmeal has climbed 17%. 

On Wednesdays, hundreds of people line up outside a church in east Oakland for its weekly food giveaway. Shiloh Mercy House feeds about 300 families on those days, far less than the 1,100 families it was nourishing at the height of the pandemic, said Jason Bautista, the charity’s event manager. But he’s still seeing new people every week. 

“And a lot of people are just saying they can’t afford food,” he said. “I mean they have the money to buy certain things, but it’s just not stretching.” 

Families can also use a community market Shiloh opened in May. Refrigerators contain cartons of milk and eggs while sacks of hamburger buns and crusty baguettes sit on shelves.

Oakland resident Sonia Lujan-Perez, 45, picked up chicken, celery, onions bread and and potatoes — enough to supplement a Thanksgiving meal for herself, 3-year-old daughter and 18-year-old son. The state of California pays her to care for daughter Melanie, who has special needs, but it’s not enough with monthly rent at $2,200 and the cost of milk, citrus, spinach and chicken so high.   

“That is wonderful for me because I will save a lot of money,” she said, adding that the holiday season is rough with Christmas toys for the children. 

It’s unclear to what extent other concurrent government aid, including an expanded free school lunch program in California and an increase in benefits for people in the federal Supplemental Nutrition Assistance Program, will offset rising food prices. An analysis by the Urban Institute think tank in Washington, D.C. found that while most households are expected to receive sufficient maximum benefits for groceries, a gap still exists in 21 percent of U.S. rural and urban counties. 

Bryan Nichols, vice president of sales for Transnational Foods Inc., which delivers to more than 100 food banks associated with Feeding America, said canned foods from Asia— such as fruit cocktail, pears and mandarin oranges— have been stuck overseas because of a lack of shipping container space.   

Issues in supply seem to be improving and prices stabilizing, but he expects costs to stay high after so many people got out of the shipping business during the pandemic. “An average container coming from Asia prior to COVID would cost about $4,000. Today, that same container is about $18,000,” he said. 

At the Care and Share Food Bank for Southern Colorado in Colorado Springs, CEO Lynne Telford says the cost for a truckload of peanut butter —40,000 pounds (18,100 kilograms)_has soared 80% from June 2019 to $51,000 in August. Mac and cheese is up 19% from a year ago and the wholesale cost of ground beef has increased 5% in three months. They’re spending more money to buy food to make up for waning donations and there’s less to choose from. 

The upcoming holidays worry her. For one thing, the donation cost to buy a frozen turkey has increased from $10 to $15 per bird. 

“The other thing is that we’re not getting enough holiday food, like stuffing and cranberry sauce. So we’re having to supplement with other kinds of food, which you know, makes us sad,” said Telford, whose food bank fed more than 200,000 people last year, distributing 25 million pounds (11.3 million kilograms) of food.   

Alameda County Community Food Bank says it is set for Thanksgiving, with cases of canned cranberry and boxes of mashed potatoes among items stacked in its expanded warehouse. Food resourcing director Wilken Louie ordered eight truckloads of frozen 5-pound chickens —which translates into more than 60,000 birds— to give away free, as well as half-turkeys available at cost. 

For that, Martha Hasal is grateful. 

“It’s going to be an expensive Thanksgiving, turkey is not going to cost like the way it was,” said Hasal as she loaded up on on cauliflower and onions on behalf of the Bay Area American Indian Council. “And they’re not giving out turkey. So thank God they’re giving out the chicken.” 

Federal Reserve Warns of Turmoil in Chinese Real Estate Sector

The Federal Reserve is warning that spillover effects from a worsening debt crisis in the Chinese real estate sector could roil global financial markets and damage economic growth, including that of the United States. 

The warning Monday came in the Financial Stability Report, issued twice a year by the U.S. central bank. Previous versions of the report have noted concerns about high levels of debt among Chinese companies.    

But the most recent report specifically mentions China Evergrande Group, a heavily indebted real estate conglomerate that late Tuesday appeared to have narrowly avoided what could have been a catastrophic default on bonds issued to international investors. 

Evergrande has become the symbol of an ongoing effort by the Chinese government to force large companies to shed heavy debt burdens. The government has created new restrictions that make it difficult or impossible for companies like Evergrande to “roll over” their debts as they come due by simply taking out new loans. As a result, many are trying to sell off assets to pay down their debts. 

Although construction on many of its dozens of projects across China has been halted as laborers and suppliers go unpaid, Evergrande has put a brave face on its predicament. In a note to employees published on WeChat, management said, “All employees of the group swear to ensure the construction of the project with the greatest determination and strength, and complete the delivery of the real estate with the highest quality and quantity.” 

Risk of miscalculation 

Forcing large Chinese firms to deleverage is, on the whole, considered a worthy goal. Many analysts believe that the excessive debt of Chinese businesses, much of which is carried on the books of Chinese banks, has injected far too much risk into the Chinese economy.   

However, experts consulted by the Fed said they were concerned that the Chinese government might miscalculate, cracking down too tightly and precipitating a crisis that Beijing cannot control.   

“Several noted that the Chinese authorities appear willing to countenance more volatility than in the past as they pursue their deleveraging and regulatory goals, while worrying that officials could misjudge the scale of instability and contagion emanating from the campaign,” the report said. 

‘Tip of the iceberg’

“It’s tempting to use metaphors like ‘tip of the iceberg’ to describe what’s going on in China’s real estate sector,” Doug Barry, spokesperson for the U.S.-China Business Council, told VOA in an email exchange. “But that we’re even tempted is itself disconcerting, given we’re talking about the world’s second largest economy – one linked to most of the others including the United States’.”   

Barry noted that many Chinese banks are considered “zombies” by most analysts – meaning that they are carrying so much bad debt on their books that they are essentially insolvent and are only being propped up by government support.   

“Time now for China’s leaders to get their macroeconomic policy house in order, which is consistent with the mantra-like message of reforming and opening-up,” Barry added. “Help is available from many quarters including the US government and business community.  How to help should be on the Biden-Xi summit agenda. We all lose if the iceberg finds its mark.” 

Global consequences

According to the Fed report, if the crisis in China were to get out of control, the impact on the rest of the world could be serious. 

“Given the size of China’s economy and financial system as well as its extensive trade linkages with the rest of the world, financial stresses in China could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States,” the report found. 

A narrow escape 

Evergrande has been in the news in recent months because it has been unable to make payments on bonds it has issued. On Wednesday, it was expected to make a late payment of $141.8 million on three different bonds, just as a 30-day grace period was due to expire and plunge the company into default.   

Evergrande came up with the money by orchestrating what appeared to be a last-minute sale of a $144 million portion of its interests in HengTen Networks Group, a Hong Kong-based internet company, according to the South China Morning Post. 

The expected payments do not mean that Evergrande is out of trouble. The company still has more than $300 billion in outstanding debts, with regular payments coming due every few weeks into 2022. 

Signs of spreading contagion 

Evergrande’s share price has already plummeted, and the rates that investors are demanding on existing bonds have skyrocketed. If the effects were limited to Evergrande, that might be manageable. But there is increasing evidence that the “contagion” infecting the company and other large real estate firms is spreading. 

Investors are now selling off bonds issued by other Chinese real estate giants that are considered to be much less risky than Evergrande, such as Country Garden Holdings and Vanke Inc., the largest and second-largest real estate firms in the country, respectively. 

Worse yet, there are signs that investors are getting jittery about companies well outside of the real estate sector. A Bloomberg index tracking investment-grade bonds issued by Chinese firms indicates that the impact is being felt across multiple sectors of the Chinese economy.   

For example, Tencent Holdings, an entertainment conglomerate that owns TikTok and WeChat, among other popular services, saw a sharp decrease in its bond prices over the past two days.  

Restructuring expected 

In general, investment analysts following the developments in China’s property market expect that Beijing will, at some point, step in to prevent a major crisis. But that may not happen in the immediate future. 

In a research note published Monday, economists Ting Lu and Jing Wang of the investment bank Nomura International (Hong Kong) wrote, “We expect most of Beijing’s property curbs will remain in place for a while, with the worst likely yet to come for both China’s property sector and macro-economy.”    

They added, “Beijing’s policy makers may opt to ramp up support to prevent worsening defaults in coming months.” 

It is unclear exactly what a government-led restructuring of Evergrande would look like, but most experts believe it would involve investors in the company’s dollar-denominated bonds facing a significant “haircut.” That is, they would be forced to accept less than they are owed by the company in final payment of its obligations. 

Latest Exit From Fed’s Board Gives Biden Three Slots to Fill 

Randal Quarles announced Monday that he will resign from the Federal Reserve’s Board of Governors at the end of the year after completing a four-year term as its top bank regulator, opening up another vacancy on the Fed’s influential board for President Joe Biden to fill.

Quarles has served as the Fed’s first vice chair of supervision, which gave him wide-ranging authority over the banking system. In that role, he oversaw a broad loosening of some of the financial regulations that were put in place after the 2008-2009 global financial crisis and recession. 

Quarles’ deregulatory approach prompted criticism from some on the Fed and from many progressives. It has also sparked resistance from progressives to the potential re-nomination of Jerome Powell as Fed chair, who has voted in favor of Quarles’ regulatory changes.

With Powell’s term as chair ending in February, an announcement is expected sometime this month on whether Biden will offer him a second four-year term. The president is considered likely to renominate Powell, although he could decide instead to elevate Lael Brainard, who is the lone Democrat on the Fed’s seven-member board, to the position of chair.

Besides Quarles’ soon-to-be vacated position on the board, a second slot is vacant and a third will open up in January, when Vice Chair Richard Clarida’s term will expire. Counting the seat held by the Fed chair, that gives Biden a total of four potential slots to fill.

The president may decide to renominate Powell while also promoting Brainard to replace Quarles as vice chair for supervision. That move could potentially mollify at least some of Powell’s critics. Brainard cast some dissenting votes against Quarles’ deregulatory efforts.

With several vacancies to fill, Biden has an opportunity to shift the Fed’s board toward a more Democratic-dominated one. That would undercut one key argument against Powell: That even if Biden elevated Brainard to the Fed’s top bank supervisory post, Powell could ignore or override efforts she might take to toughen financial rules. If Biden were to successfully appoint three new governors to the Fed’s board, Democratic appointees would outnumber Republican ones. 

Late last month, in an appearance on CNN, Treasury Secretary Janet Yellen defended Powell against any notion that he has weakened bank rules. Yellen asserted that financial regulations were “markedly strengthened” under Ben Bernanke’s Fed leadership, during her own subsequent term as chair and under Powell, as well.

Members of the Board of Governors have permanent votes at each Fed meeting on interest-rate policy, a powerful tool that affects hiring and the economy. The 12 regional Fed bank presidents also attend policymaking meetings, though only five of them are able to vote on the Fed’s decisions. The New York Fed president holds a permanent vote, and the regional bank presidents hold four votes that rotate among them each year.

The Fed governors also vote on financial regulations, and they could take steps to regulate some cryptocurrencies, known as stablecoins. Some of the officials, including Brainard and Powell, have discussed incorporating climate change considerations into the Fed’s bank oversight, a possibility that has met with opposition from congressional Republicans.

With four slots open, the Biden administration could nominate several candidates as a package. Potential nominees for the three vacancies on the Fed’s board include Lisa Cook, an economist at Michigan State University who would be the first Black woman to serve as a Fed governor, and Sarah Bloom Raskin, who previously served as a Fed governor and as a financial regulator in Maryland. 

Another potential nominee is William Spriggs, chief economist at the AFL-CIO and an economics professor at Howard University. 

Karine Jean-Pierre, a White House spokeswoman, declined to say how Quarles’ departure might influence Biden’s selections for the board. 

“All I can say is this is incredibly important to the president, and he’s taking this seriously,” Jean-Pierre said at Monday’s briefing. 

At a Senate hearing in September, Senator Sherrod Brown, an Ohio Democrat who chairs the Senate Banking Committee, which oversees Fed nominations, said, “It’s time we had a Black woman on the Board of Governors.” 

Young Compete Against Old in Hottest US Rental Market in a Decade

Renting an apartment can be a challenge for new college graduates who are facing the hottest U.S. rental market in a decade, along with some unexpected competition from millennials — people aged 24 to 40 — and even baby boomers — the over-57 club.

“You have aging millennials who are creating families who should be moving from rental situations into ownership but, because of the lack of housing supply, that has been stopped in a lot of instances. And so, what you see is the aging millennial population continues to rent,” says Doug Ressler, manager of business intelligence at Yardi-Matrix, a commercial real estate data and research firm.

“It’s not just about millennials, it’s not just about [Gen] Z [people under 24], we also see that boomers are making a transition, he added. “Their percentage of moving into rental properties is growing in the last five years.” 

There are a variety of reasons older people are opting for rentals, according to Ressler. 

“They’ve lived in a home for so long and they want to be able to reduce their expenses on a fixed income,” he says. “They want to live in a social cohort, like a retirement community, and things like that where it’s much more socially amenable to them.” 

The asking price of apartment rentals was up 10.7% in September 2021 compared to last year at the same time, according to the National Association of Realtors (NAR). 

“It’s a hot market. We have never seen this market so hot in the last decade,” says Gay Cororaton, NAR’s senior economist and director of housing and commercial research. “The average rent growth, year-over-year, is about 3-to-5%. We’re seeing 11% rent growth now, so, clearly, way above trends we’ve had in the past.” 

Renters are feeling the squeeze because the COVID-19 pandemic caused supply chain issues, slowing down home building in the United States. Instead of the usual 5-to-6 month supply of available single-family homes, supply dropped below two months in January 2021. The lack of housing supply means millennials are having a harder time buying a single-family home, which has been the traditional trajectory in the past. 

“The whole building industry was beset by supply chain issues,” Cororaton says. “Shipments couldn’t come in, the price of lumber was rising, manufacturing slowed, workers could not come in [to work], so you have shortages of frames, appliances. So, essentially, just a short supply.” 

The housing supply got even tighter during the pandemic as more investors put their money into housing, according to Cororaton, while existing homeowners looked for second homes. 

“With the pandemic, there was also a big demand for second homes, for vacation homes. Typically, vacation homes accounted for just about 5% [of the market],” she says. “Early this summer they rose to about 8%. So again, strong demand and strong imbalance of demand and supply caused home prices to rise, made them less affordable.” 

The hottest rental markets right now are in the West and South. More renters are moving to Dallas and Houston in Texas, followed by Atlanta, Georgia; New York; Los Angeles; Austin, Texas; Phoenix, Arizona; and Washington, D.C., according to NAR. 

Cororaton expects the coming year to be a little better but says the housing shortage is likely to continue for the next few years. 

 “You know, the old adage of moving from rentals into homeownership, that whole polemic may be changing,” says Ressler. “The sweet spot was always the millennials, and now the millennials are being replaced by the [Gen] Z’s, but the millennials are staying longer and the Z’s are coming on board, and now you’ve got the demographic of the boomers … What it means is a very profitable and dynamic [rental] market that’s going to continue to grow.”

Restoring Mexico’s Mangroves Can Shield Shores, Store Carbon

When a rotten egg smell rises from the mangrove swamps of southeast Mexico, something is going well. It means that this key coastal habitat for blunting hurricane impacts has recovered and is capturing carbon dioxide — the main ingredient of global warming.

While world leaders seek ways to stop the climate crisis at a United Nations conference in Scotland this month, one front in the battle to save the planet’s mangroves is thousands of kilometers away on Mexico’s Yucatan Peninsula.

Decades ago, mangroves lined these shores, but today there are only thin green bands of trees beside the sea, interrupted by urbanized areas and reddish segments killed by too much salt and by dead branches poking from the water.

A few dozen fishermen and women villagers have made building on what’s left of the mangroves part of their lives. Their work is supported by academics and donations to environmental groups, and government funds help train villagers to organize their efforts. 

The first time they came to the swamp for seasonal restoration work was more than a decade ago with Jorge Alfredo Herrera, a researcher at the Center for Research and Advanced Studies of the Mexican Polytechnic Institute in Yucatan. He told them the mangroves needed a network of interlaced canals where fresh and salt water would mingle.

To dig them was a hard work and paid only $4 a day. Men from Chelem, a fishing village of Progreso, turned down the job but a group of women took it on, believing they could accomplish a lot with little money.

Recently, after an intense rainy season, the women worked to finish the second part of the restoration process: planting young mangroves in a swamp near this port city. Under the sun, they chuckled, remembering the time they encountered a crocodile and barely managed to run away.

Then they placed 20-inch mangrove seedlings into mounds of mud held together by mesh, creating tiny islands about a yard (meter) square.

“The happiest day is when our plants take,” said 41-year-old Keila Vázquez, leader of the women who now are paid $15 a day and take pride in putting their “grain of sand” into the planet’s well-being. “They are like our children.”

GLOBAL THREAT TO MANGROVES

This mangrove restoration effort is similar to others around the globe, as scientists and community groups increasingly recognize the need to protect and bring back the forests to store carbon and buffer coastlines from climate-driven extreme weather, including more intense hurricanes and storm surges. Other restorations are underway in Indonesia, which contains the world’s largest tracts of mangrove habitat, Colombia and elsewhere.

“Mangroves represent a very important ecosystem to fight climate change,” said Octavio Aburto, a marine biologist at Scripps Institution of Oceanography in San Diego, California.

While the tropical trees only grow on less than 1% of the Earth’s land, he said, “on a per-hectare basis, mangroves are the ecosystem that sequesters the most carbon … They can bury around five times more carbon in the sediment than a tropical rain forest.”

Yet around the globe, mangroves are threatened.

From 1980 to 2005, 20% to 35% of the world’s mangrove forests were lost, according to the U.N. Food and Agriculture Organization.

From 2000 to 2016, the rate of loss declined as governments and environmental groups spotlighted the problem, but destruction continued — and about 2% of the world’s remaining mangrove forests disappeared, according to NASA satellite imagery.

In Mexico, as in much of the world, the largest threat to mangroves is development. The region near Cancun lost most of its historic mangroves to highways and hotels starting in the 1980s.

Tracts of mangroves on the country’s southern Pacific coast also have been cleared to make room for shrimp farming, while oil exploration and drilling in shallow waters off the Gulf of Mexico threatens mangroves there, said Aburto.

Mexico began to protect some of its mangroves only after the excessive tourism development of the 1980s. And although Mexico took steps to establish a climate action plan in 1998 and was one of the first developing countries to make voluntary commitments under the Paris Climate Accord, its commitment to the environment began to backslide in 2015, said Julia Carabias, a professor on the science faculty at the National Autonomous University of Mexico.

In the past six years, Mexico has cut resources for environmental conservation by 60%, according to Carabias.

And that, combined with increasing government support of fossil fuel energy and ongoing infrastructure and tourist projects in the region, is sounding alarms.

Despite the country’s monitoring system, local researchers say that for every hectare (2.5 acres) of mangrove restored in southeast Mexico, 10 hectares are degraded or lost.

EFFORTS TO SAVE SWAMPS

The halting efforts in Mexico to protect and restore mangroves, even as more are lost, mirror situations elsewhere. The U.N. Food and Agriculture Agency estimated in 2007 that 40% of Indonesia’s mangroves had been cut down for aquaculture projects and coastal development in the previous three decades.

But there have been restoration efforts as well.

In 2020, the Indonesia government set an ambitious target of planting mangroves on 600,000 hectares (1.5 million acres) of degrading coastline by 2024. Key ministries are involved in restoration efforts that include community outreach and education.

Yet there have been some setbacks. Precise mapping and data on mangroves is hard to come by, making it difficult for agencies to know where to concentrate. Newly planted mangroves have been swept out to sea by strong tides and waves. Community outreach and education have been slowed by the COVID-19 pandemic.

In Mexico, successes exist, even if they are slow in coming.

Manuel González, a 57-year-old fisherman known as Bechá, proudly shows off recovering mangroves in the seaside community of Dzilam de Bravo, about 60 miles (97 kilometers) east of Progreso. He walks through mud, avoiding the interlaced mangrove roots that burrow into it. Some trees are already 30 feet (9 meters) tall.

In 2002, Hurricane Isidoro devastated this area, but after a decade of work, 297 acres have been restored. The fisherman says that now storms don’t hit the community as hard. And the fish, migratory birds, deer, crocodiles and even jaguars have returned. 

But the mangroves face a new risk, as stumps scattered among the trees attest.

“In 10 years, you have a very nice mangrove for someone with a chainsaw to come and take it,” González said. “That’s something that hurts me a lot.”

Cutting mangroves has been a crime since 2005, but González says authorities shut down and fine projects, only to have them later reopen.

The Yucatan state government said it is aware of complaints of illegal logging yet the harvest has only grown.

While more funds are needed for protection and restoration, some communities prefer to think about how to make conservation a profitable activity.

José Inés Loría, head of operations at San Crisanto, an old salt harvesting community of about 500 between Progreso and Dzilam, thinks the way to make the local mangrove part “of the community’s business model” is using the new financial tools such as blue carbon credits.

Those instruments, already in use in Colombia and other countries, allow polluting businesses to compensate for emissions by paying others to store or sequester greenhouse gases.

Some in Mexico say credits are still not well regulated in the country and could invite fraud and scams. But Loria defends them. “If conservation doesn’t mean improving the quality of life of a community, it doesn’t work.”

US Economy Adds 531,000 Jobs in October

The U.S. economy created 531,000 jobs in October, more than the 450,000 economists had forecast, according to the U.S. Department of Labor.

The unemployment rate also dropped slightly from 4.8% to 4.6%, the lowest since the pandemic hit. The unemployment rate in February of 2020 was 3.5%, an historic low.

Jobs numbers for August and September were also revised upward.

Celebrating the better-than-expected report, President Joe Biden called it “another great day for our economic recovery,” during comments Friday at the White House on the jobs report. 

Most of the employment gains were in the leisure and hospitality, professional and business services, manufacturing, and transportation and warehousing sectors.

“Overall, it was a really positive jobs report but leaves some questions about the structure of the labor market for the Fed,” Megan Greene, the global chief economist at the advisory firm Kroll Institute and a senior fellow at the Harvard Kennedy School, told ABC News.

However, the jobs report was not all good news.

Labor participation, the number of people working or actively seeking a job, remained at a low 61.6%, and only 104,000 new people joined the workforce in October.

The disappointing labor participation rate has been fairly steady over the past year at the lowest levels seen since the early 1970s.

Businesses have tried to get workers back by raising wages or offering bonuses, but most of those gains have been offset by rising prices for food, gas and rent. 

UN: Food Prices Continue Upward Trend

The United Nations Food and Agriculture Organization has reported its Food Price Index, which tracks the international prices of a basket of food, found that in October, the cost of a basket of food was up 3% from September.

The FAO Cereal Price Index increased 3.2% in October from the previous month, while the price of wheat rose by 5% amid reduced harvests from major exporters of wheat that include Canada, Russia and the United States. The FAO also recorded the international prices of other major cereals have increased.

Meanwhile, the U.N. agency said the price of vegetable oil hit an “all-time high” increase of 9.6% in October, marking a fourth consecutive month of price hikes. The FAO said the rising vegetable oil price was “largely underpinned by persisting concerns over subdued output in Malaysia due to ongoing migrant labor shortages.”

Dairy prices rose by 2.5%, while the price of meat fell by 0.7%, “marking the third monthly decline.”

Some information from The Associated Press and Reuters was used in this report.

Why US Consumers Pay Such High Prices for Prescription Drugs 

Congressional Democrats this week proposed an addition to U.S. President Joe Biden’s climate and social spending legislation that would allow Medicare, the federal government’s health care program for older Americans, to negotiate with drugmakers over the cost of certain prescription medications.

U.S. consumers pay higher prices for prescription medications than almost any of their peers in the developed world, a fact that generations of politicians and advocates have struggled in vain to change. If passed, the proposal working its way through Congress would make a dent, though a relatively small one, in that long-standing problem.

The plan being discussed would give Medicare officials the ability to negotiate pricing on a sliver of the thousands of prescription medications on the market in the United States, beginning with about 10 drugs and capped at 20. Liberal members of Congress at first had hoped to grant Medicare authority to negotiate the prices of up to 250 costly drugs every year.

Though small, the number of drugs that would be covered by the proposal represents a disproportionate amount of the annual “spend” on drugs by Medicare patients.

A study by the Kaiser Family Foundation released this year determined that the 10 top-selling drugs covered under Medicare Part D accounted for 16% of net total spending in 2019. The top 50 drugs — representing just 8.5% of all drugs covered under the program — accounted for 80% of spending.

The top 10 drugs, according to the Kaiser Family Foundation include “three cancer medications, four diabetes medications, two anticoagulants and one rheumatoid arthritis treatment.”

Confusing system 

Unlike many countries outside the U.S., where the government is able to negotiate drug prices and bring down the cost for a single national health care system, the landscape in the U.S. is highly fragmented. Most Americans with health insurance are covered by policies issued by for-profit companies in the private sector.

Americans 65 years and older are eligible for Medicare, which takes the place of a private insurer, but with some critical differences. For many years, Medicare did not offer prescription drug coverage, forcing Medicare patients to pay for medications out of pocket or seek third-party insurance coverage for their medications.

In 2003, Congress created Medicare Part D, under which private insurers offered medication coverage that met minimum requirements established by the federal government. While that program reduced costs for many seniors, cost-sharing provisions and design flaws mean that many recipients continue to face financially crippling bills for medication. A key reason is that each insurance provider must negotiate prices with drug companies individually, rather than using the bargaining power of the entire Medicare population to insist on lower costs.

‘Subsidizing R&D for the world’ 

For years, advocates for change have pointed out that drug companies set prices in the U.S. far above those in other countries in which they sell the same drugs. A study by the Rand Corporation this year comparing the U.S. with 32 other countries found that drugs cost on average 256% more in the U.S.

“American consumers are subsidizing the R&D for the world,” said Lovisa Gustafsson, vice president of the Controlling Health Care Costs program at the Commonwealth Fund, a think tank in Washington, D.C.

Compounding the problem is that Americans also shoulder a much greater share of the cost for their prescription medications.

“Patients in the U.S. face far higher cost-sharing than in a lot of other countries. So, just because they have insurance doesn’t mean that patients can actually afford the drugs that they need currently,” Gustafsson said. “There’s survey after survey showing that 20% to 25% of Americans can’t afford the drugs they’re prescribed by their physician, or split pills, or don’t get the prescription filled, because they just can’t afford it. And that’s even when they have insurance.”

Putting a lid on costs

An important element of the proposal before Congress is that it would place an annual cap of $2,000 on the co-payments that Medicare patients can be charged for their medications.

The prospect of a cap on out-of-pocket costs was well-received by many calling for reforms, such as AARP, a large advocacy group for older Americans.

“There’s no greater issue affecting the pocketbooks of seniors on Medicare than the ever-increasing costs of prescription drugs,” AARP CEO Jo Ann Jenkins said in a statement. “For decades, seniors have been at the mercy of Big Pharma. Allowing Medicare to finally negotiate drug prices is a big win for seniors. Preventing prices from rising faster than inflation and adding a hard out-of-pocket cap to Part D will provide real relief for seniors with the highest drug costs.”

Drug firms unhappy

PhRMA, a powerful trade group representing the pharmaceuticals industry, reacted unhappily to news of the proposal.

“If passed, it will upend the same innovative ecosystem that brought us lifesaving vaccines and therapies to combat COVID-19,” PhRMA President and CEO Stephen J. Ubl said in a statement. “Under the guise of ‘negotiation,’ it gives the government the power to dictate how much a medicine is worth and leaves many patients facing a future with less access to medicines and fewer new treatments.”

“While we’re pleased to see changes to Medicare that cap what seniors pay out of pocket for prescription drugs, the proposal lets insurers and middlemen like pharmacy benefit managers off the hook when it comes to lowering costs for patients at the pharmacy counter,” Ubl continued. “It threatens innovation and makes a broken health care system even worse.”

Industry claims exaggerated?

Numerous supporters of allowing the government to negotiate on drug prices claim that the industry’s insistence that it will stymie innovation is exaggerated.

One piece of evidence they point to is a study released by the Congressional Budget Office in August. The CBO created a model in which pharmaceutical companies were faced with the following scenario: A policy is put in place that reduces the return on their most profitable drugs by 15% to 25%.

The agency estimated that the impact would be a reduction of the number of new drugs coming onto the market by only one-half of 1% over the first 10 years of the new policy. That would increase to as much as an 8% reduction in the first three decades of the program.

UK Gears Up to Produce Rare Earth Magnets, Cut Reliance on China 

Britain could revive domestic production of super strong magnets used in electric vehicles and wind turbines with government support, to cut its reliance on China and achieve vital cuts in carbon emissions, two sources with direct knowledge said. 

A government-funded feasibility study is due to be published on Friday, laying out the steps Britain must take to restart output of rare earth permanent magnets, the sources said. 

A magnet factory would help Britain, hosting the COP26 U.N. climate talks in Glasgow, Scotland, meet its goal of banning petrol and diesel cars by 2030 and slashing carbon emissions to net zero by 2050. 

British production of the magnets vanished in the 1990s when the industry found it could not compete with China. But with the huge growth in demand, the government is keen to secure enough supply. 

Last month, the government set out plans to achieve its net zero strategy, which includes spending $1.15 billion to support the roll out of electric vehicles (EVs) and their supply chains. 

The study outlines how a plant could be built by 2024 and eventually produce enough of the powerful magnets to supply 1 million EVs a year, the sources who have read the report said. 

“We’re looking to turn the tide of shipping all this kind of manufacturing to the Far East and resurrect U.K. manufacturing excellence,” one of the sources said. 

The government’s Department for Business declined to comment on details regarding a possible magnet factory because the report has not been released. 

“The government continues to work with investors through our Automotive Transformation Fund (ATF) to progress plans to build a globally competitive electric vehicle supply chain in the U.K.,” a spokesperson said in an email. 

EV ramp up 

British rare earth company Less Common Metals put together the feasibility study and is considering seeking partners to jointly build the factory, the sources said. 

LCM is one of the only companies outside of China that transforms rare earth raw materials into the special compounds needed to produce permanent magnets. 

Automakers will need the magnets as they ramp up EV output in Britain. Ford said last month it would invest up to $310 million in an English plant to produce around 250,000 EV power units a year from mid-2024. 

Rare earth magnets made of neodymium are used in 90% of EV motors because they are widely seen as the most efficient way to power them. 

Electric cars with these magnets require less battery power than those with ordinary magnets, so vehicles can travel longer distances before recharging. 

A race by automakers to ramp up EVs and countries to switch to wind energy is due to boost demand for permanent magnets in Europe as much as tenfold by 2050, according to the European Union. 

The sources said government support would be vital so Britain could compete with China, which produces 90% of supply. 

The strategy mirrors similar efforts by the EU and the United States to create domestic industries of raw materials, rare earth processing and permanent magnets. 

 

US Weekly Jobless Benefit Claims Drop to New Pandemic Low

New claims for jobless benefits in the U.S. dropped to a new pandemic low, the Labor Department reported Thursday, as the world’s biggest economy continues its recovery from the coronavirus pandemic.

A total of 269,000 out-of-work employees filed for unemployment compensation for the week ending October 30, down 14,000 from the week before, the agency said. The figure was the lowest total since mid-March 2020 when the pandemic first struck the U.S. economy, although still higher than the pre-coronavirus weekly average of 218,000 in 2019.

Since exceeding 900,000 in early January, weekly applications have generally declined as the job market recovers. During the last week of October, 2.1 million people in the U.S. received unemployment compensation, far lower than the 7.1 million in 2020 when the economy was suffering the worst effects of the pandemic.

In March and April of 2020, employers cut more 22 million jobs amid government-ordered lockdowns and consumers and employees staying home to avoid infection. Some 17 million of those jobs have returned. 

Government financial relief and vaccine rollouts led to more consumer spending and business re-openings, forcing companies to struggle to meet demand by re-hiring workers, particularly for low-wage jobs. 

The Biden administration’s vaccine mandate for federal government contractors and business with at least 100 employees could exacerbate worker shortages.

The unemployment report for October is due to be released on Friday.

Some information in this report came from the Associated Press and Reuters.

Thailand Reopens Borders for Tourists, Caution Still Remains

Thailand opened its borders to vaccinated visitors for the first time in 18 months this week, as the country struggles to boost an economy still languishing due to the pandemic.

Visitors from more than 60 countries considered “low risk” are now allowed to visit the Southeast Asian nation, with quarantine essentially scrapped. 

Tourism and Sports Minister Phiphat Ratchakitprakarn said Thailand had been preparing for the country’s reopening for tourism with the opening of travel lanes such as the Phuket Sandbox. He said opening the borders is to ensure Thailand remains in “competition” to draw tourists, adding that imposing quarantines will deter visitors elsewhere.

Thailand is heavily reliant on tourism, which before the pandemic accounted for around one-fifth of the country’s GDP and 20% of its overall employment, according to the International Monetary Fund (IMF).

But experts and business owners remain cautious about the reopening.

Pravit Rojanaphruk, a journalist who works for the Bangkok-based news website Khaosod English, said the reopening could create setbacks for advances made in Thailand’s battle against the pandemic.

The journalist noted that COVID test kits are not readily available, telling VOA that some visitors “will also likely disregard COVID-19 prevention measures such as social distancing and for foreign tourists the wearing of sanitary masks.” 

Also, Thailand’s reopening comes as anti-government protests continue in Bangkok. Protesters have been calling for reform, targeting the role of the monarchy and criticizing the government’s handling of the pandemic. Many have called for Prayuth Chan-o-cha, Thailand’s prime minister, to resign. He refuses to do so.

Demonstrations that initially erupted in August of last year sometimes led to violence and skirmishes between protesters and riot police. The current demonstrations, which are much smaller in size, often occur in the district of Din Daeng, the city’s second-largest slum community.

Vaccinations allow reopening

Health experts say Thailand initially did well in the fight against the spread of COVID-19 but that a surge of cases caught officials by surprise in April, prompting authorities to call for months of restrictions, lockdowns and curfews. During its third wave, Thailand was seeing more than 20,000 infections per day.

With a population of nearly 70 million, Thailand has vaccinated around 54% of its people, according to government figures. Overall, 1.9 million people have been infected, with nearly 20,000 deaths.

Although restrictions remain, the speed of the country’s vaccine rollout in recent months, sometimes exceeding 1 million per day, made it easier for the Thai government to reopen its borders.

Visitors must take a COVID-19 test upon arrival and wait for the results in a pre-booked hotel. If the results are negative, they are free to travel to a wide range of destinations throughout the country, authorities say. Unvaccinated visitors are still subjected to a seven-day quarantine in an approved hotel.

Forty-six nations were initially listed for November’s reopening, but at the last minute, more were added. Rojanaphruk says the decision was to attract more visitors to support the ailing economy.

“Many people [have been] severely affected by COVID-19’s impact on the economy, [and] will definitely be focused on how successful the reopening of Thailand would be and whether the benefits will trickle down to the working class,” he said.

“The government cannot choose to keep shutting the country from foreign tourists indefinitely as tourism income constitutes around 20% of the GDP. Adding more countries to the list in the last minute definitely has to do with attempts to get more foreign tourists,” he said.

Thani Thongphakdi, the permanent secretary of the Thailand Ministry of Foreign Affairs, signed the notification adding 17 more countries after “further consideration into the global situation of the spread of COVID-19 virus in parallel with health and socio-economic parameters.”

But the Rojanaphruk believes strict restrictions could be enforced once again if Thailand experiences a surge in cases.

“The government has alluded to the fact that if the situation gets out of control, they are willing to re-impose a lockdown and that the situation will be assessed on a weekly basis,” he said.

Rungrueng Kitphati, Thailand’s Minister of Public Health spokesman, said in August that herd immunity is not far away, because vaccines continue to be administered in large numbers each day, local media reported.

Thailand was used to seeing around 40 million international arrivals each year.  But it was reported that in 2020 alone, arrivals dropped by 83%.

The islands of Phuket and Koh Samui have already been open to visitors. The “Phuket Sandbox” was launched four months ago on July 1, while the “Samui Plus” scheme followed in August. Both schemes are initiatives started by the Tourism Authority of Thailand and have allowed fully vaccinated visitors to skip hotel quarantine.

More than 6,000 international arrivals entered Thailand Monday, while the Tourism Authority of Thailand, or TAT, forecast that 1 million foreign visitors would enter the country from now until March 2022, reported the Bangkok Post, the country’s English-language daily newspaper.

Some Thai businesses have been eager for foreign arrivals to return, but caution remains for others on life after the reopening.

Vons Sochi, an Australian expatriate who owns VonsFitness247 gym in Bangkok, says the pandemic has crippled a lot of businesses. He thinks it is understandable why people are cautious.

“It relies a lot on tourists. COVID-19 has taken away a lot of disposable income. Everyone is holding onto their money, in case of another lockdown,” he said.

Nicolas Ziade, owner of Mulligans Bar on Bangkok’s Khao San Road, voiced optimism about the reopening.

“I’m relieved. It’s going to take time probably around three months to see people walking Khao San Road during the day. I expect to see an increase in foreigners which will be great and will increase daytime trade.

“It has been very difficult. I lost my job and had no income for six months,” he added.

Pratchaya Julapun, marketing manager at the Bandara Group, which runs furnished apartments in Bangkok and Phuket, said there are concerns over future restrictions but believes the worst is over for Thailand.

“We are quite certain the situation will be better than last time. We believe it’s time to start travel again with a new normal life,” he told VOA.

 

US Sues Penguin Random House Over Plans to Acquire Simon & Schuster

The U.S. Justice Department is seeking to block Penguin Random House, the world’s largest publisher, from acquiring rival publisher Simon & Schuster, the fourth largest in the United States. 

An antitrust lawsuit filed Tuesday in federal court warns that such an acquisition would hurt competition for top-selling manuscripts. A slimmer, more tightly controlled publishing industry would leave authors with fewer options and allow a newly consolidated Penguin Random House to get away with offering writers less for their work, according to the Justice Department.

“Authors are the lifeblood of book publishing. Without authors, there would be no stories; no poetry; no biographies; no written discourse on history, arts, culture, society, or politics,” the department’s complaint reads. “Penguin Random House’s proposed acquisition of Simon & Schuster would result in substantial harm to authors, particularly authors of anticipated top-selling books.” 

The pending acquisition is valued at nearly $2.2 billion.

Five publishers, known as the “Big Five,” dominate the publishing industry. They offer high advances and attractive marketing for highly anticipated manuscripts, and compete with one another for the next biggest deal.

The antitrust suit marks an unusually bold move in a highly consolidated industry. Publishing companies Penguin Group and Random House merged without problems in 2013.

“If the world’s largest book publisher is permitted to acquire one of its biggest rivals, it will have unprecedented control over this important industry,” U.S. Attorney General Merrick Garland said in a department statement. 

“American authors and consumers will pay the price of this anticompetitive merger – lower advances for authors and ultimately fewer books and less variety for consumers.” 

Jonathan Karp, Simon & Schuster’s president and chief executive officer, disagrees with the department’s complaint. In an internal memo sent to Simon & Schuster employees Tuesday, Karp wrote that his company and Penguin Random House see no basis for the lawsuit and that they plan to fight it. 

The New York Times reports that Penguin Random House has hired lawyer Daniel Petrocelli, who helped AT&T and Time Warner fight a Justice Department antitrust lawsuit. 

Penguin Random House did not respond to VOA’s request for comment.

 

Barclays CEO Staley Resigns After Epstein Probe

Barclays chief executive Jes Staley is leaving the bank after a dispute with British financial regulators over how he described his ties with convicted sex offender Jeffrey Epstein.

Staley will be replaced as CEO by Barclays’ head of global markets C.S. Venkatakrishnan, who on Monday pledged to continue his predecessor’s strategy.

Staley’s shock departure comes after Barclays was informed on Friday of the unpublished findings of a report by Britain’s Financial Conduct Authority and the Prudential Regulatory Authority into Staley’s characterization of his relationship with Epstein, who killed himself in jail in August 2019 while awaiting trial on federal charges related to sex trafficking.

“In view of those conclusions, and Mr Staley’s intention to contest them, the Board and Mr Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays,” the bank said.

“It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein’s alleged crimes, which was the central question underpinning Barclays’ support for Mr Staley following the arrest of Mr Epstein in the summer of 2019.” 

Barclays shares fell 2% following the announcement.

‘I thought I knew him well’

Staley dealt with Epstein during his long career at JPMorgan, where Epstein was a major private banking client until 2013.

A college dropout who styled himself as a brilliant financier, Epstein socialized in elite circles, including former and future U.S. presidents. In 2008, he was registered as a sex offender but continued to maintain ties with powerful players in business and finance.

The New York Times reported in 2019 that Epstein had referred “dozens” of wealthy clients to Staley. It also reported that Staley visited Epstein in prison when he was serving a sentence between 2008-09 for soliciting prostitution from a minor, while Bloomberg reported he visited Epstein’s private island in 2015.

Staley told reporters last February that his relationship with Epstein had “tapered off significantly” after he left JPMorgan in 2013, and that he had not seen the disgraced financier since taking over Barclays in 2015.

“I thought I knew him well, and I didn’t. I’m sure with hindsight of what we all know now, I deeply regret having had any relationship with Jeffrey Epstein,” he said at the time.

Epstein’s links with prominent men have come back to haunt some of them. Leon Black, the billionaire investor, stepped down from Apollo Global Management, the private equity firm he co-founded, earlier this year after an outside review found he had paid Epstein $158 million for tax and estate planning.

Britain’s Prince Andrew has quit royal duties over his associations with Epstein, andnMicrosoft co-founder Bill Gates has said it was a “huge mistake” to spend time with him.

The FCA and PRA said in a statement they could not comment further on the Epstein investigation, which was launched after JPMorgan provided the regulators with emails between Epstein and Staley from Staley’s time as head of JPMorgan’s private bank, the Financial Times reported last year.

Right strategy

Staley told staff in an internal memo seen by Reuters that he did not want his ‘personal response’ to the investigations to be a distraction.

“Although I will not be with you for the next chapter of Barclays’ story, know that I will be cheering your success from the sidelines,” he said.

Staley has 28 days to formally notify the FCA that he is contesting its findings, after which an independent committee inside the watchdog will uphold or reject its conclusions, a source familiar with the process told Reuters.

If upheld, the probe passes to an independent Upper Tribunal which again can back or reject the findings, the source said, a process that could take months.

Venkatakrishnan, who followed Staley to Barclays from JPMorgan and is known as Venkat, told staff on Monday the strategy put in place by his predecessor was “the right one,” according to a separate memo also seen by Reuters.

Venkat added that he would announce changes to the organization of the investment bank in the coming days, likely to mean filling his previous role and any other resulting vacancies, sources at the bank said.

Barclay’s share price has fallen 9% since Staley’s tenure began six years ago, a period not without controversy.

His greatest success, insiders and analysts said, was to fight off a campaign launched by activist investor Edward Bramson in 2018 to have Staley removed on the grounds that Barclays’ investment bank was underperforming and should be cut back.

Bramson sold his stake earlier this year, and the bank’s recent results have seen the investment bank perform strongly.

Also in 2018, Britain’s financial regulators and Barclays fined Staley a combined $1.50 million after he tried to identify a whistleblower who sent letters criticizing a Barclays employee.