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The Financial Times (19 May, Creery, Ivanova) reports Google's Russian subsidiary will file for bankruptcy after authorities in Moscow seized its bank account. The tech giant said the seizure of the account "made it untenable for our Russia office to function, including employing and paying Russian-based employees, paying suppliers and vendors, and meeting other financial obligations." The update comes after Russia has repeatedly fined Google over the past year over the company's refusal to remove content that Moscow dislikes and considers illegal. Although the Russian subsidiary plans to file for bankruptcy, Google confirmed it will continue to offer search, YouTube, Gmail, Maps, Android, Play, and other free services to users in Russia.

From "Google's Russian Unit to File for Bankruptcy After Seizure of Bank Account"
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Sri Lanka has defaulted on its debt for the first time in its history, reports BBC News (19 May, Hoskins), amid its struggle with its worst financial crisis in more than 70 years. The default comes after a 30-day grace period to repay US$78 million in unpaid debt interest payments expired Wednesday. P Nandalal Weerasinghe, the governor of Sri Lanka's central bank, described the country's situation as "pre-emptive default," and warned that inflation is likely to get worse in the coming months. Sri Lanka is looking to restructure debts of more than US$50 billion it owes to foreign creditors. Meanwhile, the country is in talks with the International Monetary Fund over a bailout. Sri Lanka has previously said it needs as much as US$4 billion this year.

From "Sri Lanka Defaults on Debt for First Time in Its History"
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Bloomberg (19 May, Kitanaka) reports China is looking to buy Russian oil to replenish its strategic crude reserves. The move signals that China is strengthening its energy ties with Russia even as Europe moves to ban imports amid the ongoing war in Ukraine. People with knowledge of the plan confirmed Russia and China are currently in talks about a purchase of additional supplies, with the negotiations involving government officials — there is very little direct involvement from oil companies, the sources said. The crude oil would be used to replenish China's strategic petroleum stockpiles. One source said specific details on volumes or financial terms haven't yet been determined, and emphasized that there is still a chance the whole deal could fall apart. The foreign ministries for Russia and China didn't immediately respond to requests for comment on the matter.

From "China in Talks with Russia to Buy Oil for Strategic Reserves"
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Current and former US officials said the Biden administration is striving to destroy Russia's role in the global energy economy, reports the New York Times (19 May, Wong, Crowley). The White House is considering a range of measures, including imposing a price cap on Russian oil and introducing so-called secondary sanctions to block foreign buyers still purchasing Russian oil from doing business with US companies. The potential new measures come as Russia continues its war against Ukraine. As a direct consequence of Moscow's attack, the United States and its allies have imposed harsh sanctions on Russia. While Russia's economy has been battered by the sanctions, it continues to bring in almost US$20 billion per month from oil sales. US officials are now focused on cutting off that flow of money while simultaneously ensuring global oil supplies stay relatively level.

From "Officials: United States Aims to Cripple Russian Oil Industry"
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Twelve current and former Wells Fargo employees have raised concerns about the bank's hiring practices, specifically around diversity, reports the New York Times (19 May, Flitter). Seven of these employees said they were told by their direct supervisors or human resource managers in Wells Fargo's wealth management unit to interview "diverse" candidates — in other words, women and people of color — even though the decision had already been made to give the job to a different candidate. Five others said they were aware of the practice or had helped arrange it. These people said the interviews appeared to be more about helping Wells Fargo improve its internal diversity statistics — perhaps in anticipation of possible regulatory audits — than actually hiring more women and people of color. A Wells Fargo spokeswoman, Raschelle Burton, said in an emailed statement that the bank expects its employees to follow its hiring policies and guidelines. "To the extent that individual employees are engaging in the behavior as described by the New York Times, we do not tolerate it," she affirmed.

From "At Wells Fargo, a Quest to Increase Diversity Leads to Fake Job Interviews"
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Cerebral released a statement announcing it has replaced CEO Kyle Robertson, reports the Wall Street Journal (19 May, Winkler), though Robertson fired back at the move and labeled it illegal. In its statement, the Cerebral board said it has replaced Robertson with David Mou, its erstwhile president and chief medical officer. The change atop Cerebral's ranks comes as the company faces a federal probe into its prescription practices and possible violations of the Controlled Substances Act. The company's nurse practitioners have previously said they felt pressured to prescribe stimulants for patients, and some pharmacies blocked or delayed filling the prescriptions out of concerns about Cerebral. In a memo to the board, Robertson asserted that he had been part of the company's decision to stop prescribing all controlled substances, but that the board is seeking to make it look like he was uninvolved as it ousts him. Robertson further claimed that directors encouraged Cerebral to prescribe Adderall and that Mou, his successor, "discussed how we need to prescribe more."

From "Cerebral Replaces CEO Kyle Robertson, a Move He Calls Illegal"
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Two dozen major US companies have received shareholder rebukes over their executive pay packages, according to the Wall Street Journal (19 May, Francis). Indeed, investors at companies like JPMorgan Chase and Intel have this year refused to vote in support of the plans, while Coca-Cola barely won majority support for its own pay package. In the past, companies have traditionally received at least 90 percent support on these votes. Corporate governance analysts point to the 70 percent threshold as an important indicator — anything less than that is said to reflect significant investor dissatisfaction. In addition to JPMorgan, Intel, and Coca-Cola, 20 other companies have this year reported less than 70 percent support for their executive compensation packages.

From "Investors Protect Executive Pay at JPMorgan, Intel, and Coca-Cola"
Abstract News © 2022 SmithBucklin

The US National Highway Traffic Safety Administration (NHTSA) on Wednesday confirmed it is investigating a crash involving a Tesla that resulted in three deaths, reports the Wall Street Journal (19 May, Felton). When it disclosed the probe, the NHTSA revealed the car in question is a 2022 Tesla Model S. All in all, the watchdog is investigating more than 30 incidents in which Tesla cars suspected to be using its Autopilot feature were involved in a serious crash. Some of these crashes also involved fatalities. The probe comes as the NHTSA is more generally scrutinizing semiautonomous driving features. Automakers have in recent years introduced such features, marketing them to drivers as a tool to help ease the burden of driving, especially for long periods.

From "Tesla Autopilot's Role in Deadly Vehicle Crash Is Probed by Safety Regulators"
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Deutsche Bank's legal chief Stefan Simon on Thursday acknowledged that the lender is involved in a US probe over the use of WhatsApp and other private communication channels, reports Bloomberg (19 May, Arons, Comfort). US regulators last December fined JPMorgan Chase US$200 million for failing to keep adequate records of staff messages, and the watchdogs have subsequently stepped up their scrutiny of private communication channels being used to conduct business. At least five other global banks have confirmed they are also fielding US inquiries about their use of WhatsApp and other channels. Addressing investors Thursday, Simon confirmed Deutsche Bank is testing a new software to improve its ability to archive messages. Simon further revealed the bank has repeatedly instructed its employees not to delete messages.

From "Deutsche Bank Among Lenders Probed by United States Over WhatsApp Use"
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Jonathan Kanter, the head of the antitrust unit at the US Department of Justice (DOJ), told the Financial Times (19 May, Palma, Fontanella-Khan) that the DOJ is prepared to take a stricter stance on buyouts by private equity groups. "Sometimes [the motive of a private equity firm is] designed to hollow out or roll up an industry and essentially cash out," Kanter said. "That business model is often very much at odds with the law, and very much at odds with the competition we're trying to protect." Kanter described thorough examinations of potential buyout deals as "top of mind for me, and... for the team." Kanter is preparing to enhance DOJ scrutiny of buyouts after firms like Blackstone, KKR, and Apollo have acquired retail chains, hospitals, data centers, and more, giving them control over significant swaths of the US economy.

From "Crackdown on Buyout Deals Coming, Warns Top US Antitrust Enforcer"
Abstract News © 2022 SmithBucklin

Germany's Federal Constitutional Court on Thursday announced it has approved rules requiring health workers to be vaccinated against COVID-19, reports the Associated Press (19 May, Jordans). The ruling came after the court received some complaints about the compulsory vaccinations. Germany's highest court had previously declined to issue an injunction blocking the rule's implementation while it reached a final decision. When it made its decision this week, the court asserted that the importance of protecting vulnerable people outweighs any infringement of health workers' rights associated with the mandate. German Health Minister Karl Lauterbach welcomed the ruling, and also warned that the COVID-19 pandemic is not over. "In Germany, too, an average of 130 to 150 people are dying every day due to the pandemic. So the impression that the pandemic has been defeated is wrong," Lauterbach told reporters in Berlin.

From "Germany Says Pandemic Not Over as Court Approves Vaccine Mandate"
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Video clips from last weekend's deadly shooting in Buffalo have surfaced on Facebook, sometimes next to a variety of ads, reports the New York Times (20 May, Mac). Indeed, the social media platform has at times placed ads next to posts offering clips of the video or links to websites promising the full video, which was streamed via Twitch. Since the shooting, which killed 10 people, a variety of social platforms — including Facebook, Twitter, and more — have sought to remove clips of the violent attack. But in spite of their best efforts, the clips have circulated across the internet. It is unclear how many times ads have appeared next to posts with the videos. The New York Times and the Tech Transparency Project conducted tests to determine when the ads were popping up next to the videos. During their tests, they found that searches for terms associated with the shooting have been accompanied by ads for a horror movie, clothing companies, and video streaming services. In some instances, Facebook recommended certain search terms about the Buffalo video, noting that they were "popular now" on its platform. Augustine Fou, a cybersecurity and ad fraud researcher, said it would be "easy" for large tech companies to demonetize searches around tragic events. The ads next to the Buffalo videos come after Facebook has attracted criticism in the past for allowing ads to appear next to right-wing extremist content.

From "Buffalo Gunman's Video Is Surfacing on Facebook, Sometimes with Ads Beside It"
Abstract News © 2022 SmithBucklin

UK government officials have demanded a "legally watertight" guarantee that Roman Abramovich will not try to claim £1.5 billion of the proceeds from the sale of Chelsea Football Club, reports the Financial Times (17 May, Agini, Parker, Wiggins). Chelsea borrowed the £1.5 billion from a Jersey entity linked to Abramovich during the Russian oligarch's two-decade tenure as the club's owner. The sum has now become a point of contention between the UK government and Abramovich's representatives as a bidding group queues up to buy Chelsea. Abramovich has previously said he would waive the debt, but London is worried about relying only on a "gentleman's agreement." Julian Knight, the chair of the House of the Commons' culture, media, and sport committee, described the situation as a "game of chicken" and predicted "[t]hings will go down to the wire."

From "Officials Demand 'Watertight' Legal Guarantees From Abramovich Over Chelsea Funds"
Abstract News © 2022 SmithBucklin

The United States Soccer Federation has reached landmark collective bargaining agreements with its men's and women's national teams, according to the Wall Street Journal (18 May, Bachman). The new CBAs will align pay between the men's and women's teams, and comes after a yearslong campaign by the women's team for an equal pay structure. Players on both teams will receive the same roster appearance and performance payments for friendly games. They will also receive the same game appearance fees for the World Cup and other official competitions. Becca Roux, the executive director of the US women's players association, said the agreements will give players on both teams significant raises. Meanwhile, the agreements also address the wide gulf in prize money awarded by soccer's global governing body, FIFA, for the men's and women's World Cups. The two teams will pool and share their prize money equally, meaning the men's team will give up some of its World Cup proceeds — no matter how they perform in the tournament — in order to achieve an even split with the women's team. The United States is the first country to introduce such an arrangement, the federation said.

From "US Women's and Men's Soccer Teams Will Receive Equal Pay Under New Labor Deals"
Abstract News © 2022 SmithBucklin

The Financial Times (18 May, Espinoza) reports Microsoft is relaxing its business terms for its cloud computing services. The move comes as the US tech giant tries to appease its rivals and avoid a full-blown antitrust investigation by the European Union. Indeed, Microsoft's rival cloud providers have previously voiced concerns that the company uses anticompetitive practices to boost its Azure platform at the expense of others. Margrethe Vestager, the European Union's competition chief, last month confirmed Brussels was "actively following up" on a complaint on the matter. On Wednesday, Microsoft President Brad Smith announced the company is taking "very broad, but not exhaustive" steps to address these concerns. Under the new terms, customers will not be forced to buy an additional license if they have already bought Microsoft's cloud services.

From "Microsoft Relaxes Cloud Terms to Avoid Full EU Antitrust Probe"
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Tesla CEO Elon Musk on Wednesday labeled ESG "an outrageous scam" after Tesla lost its spot on an S&P global index tracking companies based on their ESG standards, reports Bloomberg (18 May, Tong). Musk took to Twitter to blast the index compiler, accusing S&P of "los[ing] their integrity" and predicting that "political attacks" against him would escalate in the coming months. For its part, S&P Dow Jones Indices said Tesla lost its spot in the S&P 500 ESG Index for several reasons, including concerns related to working conditions at the company's plants.

From "Musk Says ESG 'an Outrageous Scam' After Tesla Index Exclusion"
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The New York Times (17 May, Mickle) reports Apple has postponed its return-to-office date amid surging cases of COVID-19. The reversal came as welcome news for the thousands of employees who had objected to the requirement that they work from the office three days a week as of late May. In a note to employees Tuesday, Apple said it would proceed with a pilot program to bring some workers back to the office twice a week in the weeks to come. But anyone in the pilot program who feels "uncomfortable coming into the office" will have the "option to work remotely," the tech giant confirmed. Apple asked employees who do come back to the office to wear masks in common areas and elevators, and pledged to provide at least two weeks of advance notice before making any changes to its work policy.

From "Apple Delays and Modifies Its Return to Office Plans"
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Sources familiar with the situation told the Wall Street Journal (18 May, Schechner, Orro) that Google has moved the majority of its employees outside of Russia. In doing so, the US tech giant has ended its commercial presence in Russia for at least the near future. Most of the Russian employees chose to leave the country, with many ending up working for Google in Dubai, the sources disclosed. The employees who decided to stay in Russia will leave the company. Google began transferring its employees out of Russia in late March after a court froze the company's main bank account in the country. Russian authorities then transferred the money out of the account, leaving Google with no funds to make payroll and other expenses, according to the sources.

From "Google Moves Employees Out of Russia"
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Fortune (17 May, Mellor) confirms Intel shareholders have voted against the company's executive compensation program. According to a new regulatory filing, the plan included part of a US$178.6 million payout to CEO Pat Gelsinger. Nearly 1.78 billion votes, comprising around 54.2 percent of shareholders of the chip-making giant, were cast against the executive compensation. The vote is advisory and will not take immediate effect. However, it indicates that a growing number of Intel stockholders are pushing back on hefty executive pay packages at the company, which beat first-quarter results projections, but forecast lower growth for the current quarter.

From "Intel Shareholders Reject Company’s Executive Pay Program"
Abstract News © 2022 SmithBucklin

Twitter's board on Tuesday issued a statement to Bloomberg (18 May, Davis) confirming it plans to enforce its US$44 billion agreement to be acquired by Elon Musk. "We intend to close the transaction and enforce the merger agreement," the board said, adding that it believes the transaction is in the best interest of all shareholders. The proposed takeover includes a US$1 billion breakup fee for both parties. Additionally, the statement reveals the merger agreement includes a specific performance provision allowing Twitter to compel Musk to complete the deal. That means if the situation ends up in a courtroom, Twitter could secure an order obligating Musk to complete the merger instead of securing monetary compensation for any violations of the merger. The board's statement comes as Musk appears to be trying to abandon or renegotiate his offer.

From "Twitter Board Says It Plans to Enforce Musk Merger Agreement"
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