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Gaming regulator in China rescinds draft rules, published in December to set spending limits and ban daily login rewards in online games; Tencent rose 6%+

—  China’s gaming regulator has removed from its website rules it proposed last month aimed at curbing spending and rewards

 

Josh Ye / Reuters:

 

HONG KONG — China’s gaming regulator has removed from its website rules it proposed last month aimed at curbing spending and rewards that encourage playing video games, checks by Reuters on Tuesday showed, in a move that boosted gaming company shares.

(Tencent sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo Acquire Licensing Rights, opens new tab)

The link to the draft rules on the National Press and Publication Administration’s (NPPA) website was inaccessible as of Tuesday morning, after having worked on Monday.

 

The consultation period on the rules, which sparked market turmoil when they were first announced, expired on Monday.
The removal was described by analysts as unusual, with some saying a revision could be in store. The NPPA did not immediately respond to a request for comment on the reason for the removal.
Xiaoyue Hu, an analyst at Haitong Securities, said in a note to clients reviewed by Reuters that the removal of the announcement could signal “there might be further changes in the new measures.”

 

Hu said previous regulatory measures seeking opinions had a track record of staying on the government’s websites even after the consultation period ended.
Shares in Tencent Holdings (0700.HK), opens new tab, the world’s biggest gaming company, and its closest rival, NetEase (9999.HK), opens new tab, rose as much as 6% and 7% in morning trading respectively. The two companies’ shares were still up more than 4% at noon against a 2.4% increase in Hong Kong’s Hang Seng Index (.HSI)

 

The draft rules, which proposed setting spending limits for online games, had sparked panic among investors, wiping off nearly $80 billion in market value from China’s two biggest gaming companies when they were announced.
Analysts also at the time said the plans brought the risk of potential regulatory change back to the fore in the minds of investors, hurting confidence at a time when the government has been trying to boost private-sector investment to spur a slowing economy.
But five days later, the NPPA struck a more conciliatory tone, saying it would improve them by “earnestly studying” public views. Earlier this month, Reuters reported that China removed a gaming regulatory official from his post, in a move linked to the rules.
Two of the most contentious articles in the proposed rules were articles 17 and 18, analysts said. The NPPA had acknowledged concern over those articles in December and analysts said there was a possibility they could be removed or changed.
Article 17 seeks to ban video games from forcing players into combat, which confused the industry as combat is the key mechanic of the majority of contemporary multi-player games.
Article 18 requires games to set a spending limit for players as well as barring features that incentivize players to spend in the game.
“Our base-case view expects the government to remove Article 17 (prohibition of mandatory player-versus-player) and 18 (imposing spending limit) from the final rule,” Ivan Su, an analyst at Morningstar, told Reuters.
Charlie Chai, a Shanghai-based analyst at 86Research, said regulators have been working to contain the fallout of the proposed rules.
“It seems (government) officials were caught off guard by the overwhelming negative reaction from investors, businesses, and the public,” he said, adding that the government has since “moderated its stance (and labelled) the proposal as ‘negotiable.'”

 

 

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— Techmeme

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AdvanSix provides update on plant production rates

PARSIPPANY, N.J. — (BUSINESS WIRE) — AdvanSix (NYSE: ASIX) announced that it has experienced a process-based operational disruption at its Frankford, Pa., manufacturing site.

 

As a result, phenol and acetone production at the Frankford facility, as well as production at its Hopewell and Chesterfield, Va., facilities, have been reduced. There have been no health, safety and environmental issues associated with the event.

 

We are keenly focused on the safe return of our operations to target rates and working collaboratively with our customers to mitigate the impact of our reduced output on their operations,” said Erin Kane, president and CEO of AdvanSix.

 

We are confident in our action plan at Frankford and our ability to enable a return to planned utilization rates across our integrated value chain by the end of January. We have also taken the opportunity to pull forward planned maintenance work at our Hopewell facility originally scheduled for later in the first quarter.”

 

The Company expects to incur an approximately $18 to $23 million unfavorable impact to pre-tax income in the first quarter of 2024, including the unfavorable impact of fixed cost absorption, lost sales, and incremental cost to purchase replacement product.

 

The unplanned interruption did not have a material impact on fourth quarter 2023 results. The Company will further discuss its fourth quarter and full year 2023 financial results and outlook during the previously scheduled conference call with investors on Friday, Feb. 16 at 9 a.m. ET.

 

About AdvanSix

AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives. Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, chemical intermediates, and plant nutrients. More information on AdvanSix can be found at http://www.advansix.com.

 

Forward Looking Statements

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as “expect,” “anticipate,” “estimate,” “outlook,” “project,” “strategy,” “intend,” “plan,” “target,” “goal,” “may,” “will,” “should” and “believe” and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of the conflict between Russia and Ukraine, the conflict in Israel and Gaza, and the possible expansion of such conflicts; the effect of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with employees working remotely or operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as updated in subsequent reports filed with the SEC.

Contacts

Media

Janeen Lawlor

(973) 526-1615

janeen.lawlor@advansix.com

Investors

Adam Kressel

(973) 526-1700

adam.kressel@advansix.com

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Second TSMC factory for Arizona faces delays as US grants remain in flux

— The firm’s first fab in Arizona has been pushed back to 2025

— Biden White House has yet to hand out promised chip subsidies

 

Bloomberg:

 

Taiwan Semiconductor Manufacturing Co. announced another delay to its $40 billion site in Arizona, dealing a further blow to the Biden administration’s plans to boost manufacturing of critical components on U.S. soil.

Executives said their second plant in Arizona, whose shell is now being built, will start operations in 2027 or 2028, later than TSMC’s prior guidance of 2026. That’s after the company in July announced a delay to the first site, now due to start making 4-nanometer chips only in 2025, citing a lack of skilled labor and higher costs.

“Our overseas decisions are based on customer needs and the necessary level of government subsidy, or support,” Chairman Mark Liu said during TSMC’s earnings conference in Taipei on Thursday. The company’s upbeat outlook for the year drove a rally in chip stocks across Asia on Friday, with TSMC shares up as much as 6.3%.

Previously, TSMC had said it will make 3nm chips at the second factory, which is expected to be more advanced than the first in Arizona. But on Thursday, the company said that incentives from the U.S. government will help determine how advanced the tech inside will be, adding uncertainty to the project’s outcome.

Because of the setback with the first fab, TSMC has delayed its second factory too, according to Chief Financial Officer Wendell Huang. The Taiwanese chipmaker is in talks with the U.S. government about incentives and tax credits, Liu said. He also reiterated TSMC was working with the local union and trade partners in the state. The company has faced resistance to plans to bring in technicians from Taiwan for the construction project.

Pushing back the start of the second fab could mean a delay of as much as two years, time enough for semiconductor tech to advance by one generation.

More than a year after U.S. President Joe Biden signed the Chips and Science Act into law — which is supposed to provide tens of billions of dollars in subsidies to chipmakers expanding in the U.S. — the administration has yet to hand out any grants to major chipmakers like TSMC or Intel Corp. It has so far only provided some modest financial support to two minor industry players.

By contrast, TSMC publicized its plans for a more modest plant in Japan later than its Arizona project, but it has already received funds from the Japanese government. The facility is on track to start production in late 2024, according to the latest update the company provided.

 

— Techmeme

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Apple’s commissions from third-party iOS apps seemingly confrontational stance at odds with regulatory pressure

As of Thursday, developers can begin exercising their court-established right to tell US customers about better prices on the web. These awful Apple-mandated confusion screens are over and done forever.

 

John Gruber / Daring Fireball:

 

 

—  That take didn’t last long.

 

Sweeney, on Wednesday at 7 p.m., after Apple released the details of its intended compliance with the anti-steering (anti-anti-steering?) mandate from the Epic v. Apple case:

 

A quick summary of glaring problems we’ve found so far:

  1. Apple has introduced an anticompetitive new 27% tax on web purchases. Apple has never done this before, and it kills price competition. Developers can’t offer digital items more cheaply on the web after paying a third-party payment processor 3-6% and paying this new 27% Apple Tax.

[Sweeney’s points 2–4, complaining about Apple’s stringent design, presentation, and privacy demands regarding external links, omitted.]

 

Epic will contest Apple’s bad-faith compliance plan in District Court.

 

Sweeney’s description makes it sound as though Apple is demanding its commission from all web sales for apps and services that have an iOS app. They’re not. They’re only demanding the commission from web sales that occur within 7 days of a user tapping through to the web from the new External Purchase Links entitlement in an app. Any app or service that already sells over the web, without paying a cent to Apple, can continue to do so in exactly the same way.

 

 

Also, Apple has done this before: what they announced yesterday is almost exactly in line with their compliance with Netherlands regulations pertaining to dating apps in 2022.

 

Before yesterday:

  • iOS app developers could sell digital content and subscriptions over the web, without paying Apple any commission.
  • iOS apps outside the “reader” category could not link to, nor even tell users about, those web purchases from within their apps.

After yesterday:

  • Apps that wish to link to — or, I think, even inform users about — web purchasing options from within their iOS apps must (a) still offer Apple’s IAP for those items; (b) pay Apple its adjusted 27/12 percent commissions on web sales that come from inside iOS apps; (c) send Apple sales data monthly and submit to audits of their sales; and (d) follow Apple’s stringent design edicts for these in-app links to the web.
  • Apps that do not link out to their web stores from within their iOS apps using Apple’s new External Purchase Links entitlement can continue whatever they were doing before yesterday. For apps that do nothing new, Apple is collecting nothing new.

 

I’m only surprised that Sweeney was seemingly surprised by any of this. He genuinely seemed to think that Apple not only would, but had to allow links from within apps to the web for purchases without collecting any commission on those sales, and that developers could present those links however they chose.

 

I’m glad that Sweeney and Epic plan to contest this, because I’m genuinely curious whether Judge Yvonne Gonzalez Rogers sees Apple’s solution as complying with her injunction against their prior anti-steering rules. But I think it does comply.

 

To be clear, I think Apple should allow apps other than games to just tell users they can pay/buy/subscribe/whatever on the web, without any commission. That the rules which have applied only to “reader” apps since early 2022 should be extended to all apps other than games, perhaps alongside a requirement (which doesn’t apply to “reader” apps) that apps taking advantage of this also offer in-app purchasing.

 

I’d draw an exception for games — an exception that surely Sweeney would disagree with completely, given that he’s in the games business — because games are different, and hefty un-circumventable revenue commissions to platform owners are clearly standard for the video game industry. The iPhone and iPad are not PCs; they’re consoles for games and apps.

 

But I’m not sure at all that Apple is doing anything contrary to the law. Sweeney (and other critics of Apple’s stewardship of iOS as a tightly controlled console) believe Apple both shouldn’t and legally can’t comply with the anti-steering injunction this way. I only believe Apple shouldn’t, not that they legally can’t.

 

Most critics of Apple’s control over all iOS software are seemingly of the view that iPhones and iPads should, on principle, be largely like the Mac, where the App Store is an option, not the only game in town for software distribution. Personally, I am on the record wishing that Apple would allow some sort of “expert” or “developer” mode — chock full of warnings, perhaps even requiring a developer account to enable — that would basically offer the same options for installing third-party software on iOS as there are on the Mac. That’s me, personally, an expert user. But even setting aside every penny of revenue generated by the App Store,1 I see and understand many of the reasons why Apple wouldn’t want to do this. There are a lot of Mac users whose Macs are overrun by adware and other scammy software. I’m not talking about viruses or malware, even — but apps that just abuse the largely free-for-all nature of the Mac platform.

 

Basically, there’s an argument that iOS devices should be more like traditional PCs (including the Mac), on ethical or moral grounds. The “it’s my device, I should decide and control what software runs on it” argument. I get it. But I also get that most consumers’ Windows PCs, and many Macs,2 are riddled with bad software (privacy invasive, resource hogging, and all sorts of anti-user shenanigans you’d never think of) that App Store policies forbid. App Store review is far from perfect — I mean come on, that should go without saying — but it is undeniable that adversarial software is not a problem for any typical users on iOS. Nothing you install from the App Store can damage your iPhone or iPad experience. Nothing you install from the App Store is difficult to uninstall if you don’t like it. The same is true of dedicated game consoles like Switch, PlayStation, and Xbox — and to a lesser degree (because Google’s Play Store review seems comparatively lax) for Android.

 

But the cynical take is that it’s all about the money for Apple. Maybe the cynics are right! Let’s just concede that they are, and that Apple will only make decisions here that benefit its bottom line. My argument remains that Apple should not be pursuing this plan for complying with the anti-steering injunction by collecting commissions from web sales that initiate in-app. Whatever revenue Apple would lose to non-commissioned web sales (for non-games) is not worth the hit they are taking to the company’s brand and reputation — this move reeks of greed and avarice — nor the increased ire and scrutiny of regulators and legislators on the “anti-Big-Tech” hunt.

 

Apple should have been looking for ways to lessen regulatory and legislative pressure over the past few years, and in today’s climate that’s more true than ever. But instead, their stance has seemingly been “Bring it on.” Confrontational, not conciliatory, conceding not an inch. Rather than take a sure win with most of what they could want, Apple is seemingly hell-bent on trying to keep everything. To win in chess all you need is to capture your opponent’s king. Apple seemingly wants to capture every last piece on the board — even while playing in a tournament where the referees (regulators) are known to look askance at blatant poor sportsmanship (greed).

 

Apple’s calculus should be to balance its natural desire to book large amounts of revenue from the App Store with policies that to some degree placate, rather than antagonize, regulators and legislators. No matter what the sport, no matter what the letter of the rulebook says, it’s never a good idea to piss off the refs.

 


 

    1. That’s a metric buttload of pennies to set aside, to be sure. ↩︎
  1. iOS App Store policy critics often point to the Mac as all the evidence they need that Apple could open up software distribution on iOS with no ill effects to users. I wrote about this back in 2021, in a piece titled “Annotating Apple’s Anti-Sideloading White Paper”. Quoting from that column, which begins with a quote from Apple’s white paper:

    Page 9:

    iPhone is used every day by over a billion people — for banking, to manage health data, and to take pictures of their families. This large user base would make an appealing and lucrative target for cybercriminals and scammers, and allowing sideloading would spur a flood of new investment into attacks on iPhone, well beyond the scale of attacks on other platforms like Mac.

     

    Here Apple dances around the elephant in the room — the question of why iOS shouldn’t just work like the Mac with regard to non-App Store software. Apple’s deft argument is that there are far fewer Macs than iOS devices, making the Mac a less enticing target for scammers and crooks (including privacy crooks). That’s more or less the argument Windows proponents used to explain the profound prevalence of malware on Windows compared to the Mac back in the day, whilst Apple (and Mac proponents) argued otherwise, that the Mac actually was far more secure at a technical level.

     

    But the truth Apple won’t come out and say is that it’s both. The Mac was more secure by design, but also a far less enticing target because of how many more users were (and still are) on Windows. And, today, iOS is more secure and private than the Mac. That’s the nature of the Mac as a full PC platform.

     

    I’ll admit it: if Mac-style sideloading were added to iOS, I’d enable it, for the same reason I enable installing apps from outside the App Store on my Mac: I trust myself to only install trustworthy software. But it doesn’t make me a hypocrite to say that I think it would be worse for the platform as a whole.

     

    The Mac is fundamentally designed for users who are at least somewhat technically savvy, but tries its best to keep non-savvy users from doing things they shouldn’t. But you can always hurt yourself, sometimes badly, with any true power tool. The iPhone is the converse: designed first and foremost for the non-savvy user, and tries to accommodate power users as best it can within the limits of that primary directive.

     

 

— Techmeme

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Vicarius remediation service for supply-chain attacks, raised a $30M Series B led by Bright Pixel, for total funding of $57M

Kyle Wiggers / TechCrunch:

 

 

—  If the pitches reaching my inbox are any indication, one of the hot new things in generative AI is “copilots” for cybersecurity.

Microsoft has one. Google, too. So does Vicarius, the vulnerability remediation platform — recently, it launched a text-generating AI tool, vuln_GPT, that helps write system breach detection and remediation scripts.

Perhaps it’s Vicarius’ trend following that caught investors’ attention — as well as (I’d wager to guess) the startup’s 5x year-over-year growth. Vicarius co-founder and CEO Michael Assraf tells me that the company’s customer base recently eclipsed 400 brands, including PepsiCo, Hewlett Packard Enterprise and Equinix.

Whatever put Vicarius on backers’ radars, the company recently closed a $30 million Series B round led by Bright Pixel Capital, with participation from AllegisCyber Capital, AlleyCorp and Strait Capital, Vicarius announced today. The round, at double Vicarius’ previous valuation — a valuation Assraf declined to disclose, unfortunately — brings Vicarius’ total raised to ~$56.7 million, the bulk of which Assraf says is being put toward advancing Vicarius’ product roadmap and doubling the size of its 43-person team.

 

“Vicarius automates much of the discovery, prioritization and remediation workload plaguing security and IT teams,” Assraf said. “An early adopter of product-led growth, Vicarius’s self-service model changes the cybersecurity solution buyer’s paradigm by letting customers transparently test and find value … before purchasing.”

 

Vicarius was founded several years ago by Assraf, Yossi Ze’evi and Roi Cohen, who noticed — at least the way Assraf tells it — that attackers were reusing the same “building” blocks to carry out cyberattacks.

 

“Those building blocks are third-party and operating system APIs provided by software and operating system-compiled libraries,” Assraf said. “The main idea [with Vicarius] was to build an intelligent permission manager for system-level APIs.”

 

Today, Vicarius analyzes apps for vulnerabilities and alerts customers to these vulnerabilities. When a patch isn’t available, Vicarius applies what Assraf calls “in-memory protection,” which ostensibly secures the app without the need for a software upgrade (color me a bit skeptical, though).

Vicarius also offers access to a community of security vulnerability researchers where researchers can share remediation and detection scripts and get rewarded for it with a virtual currency, as well as a community dataset that Vicarius uses to train the aforementioned vuln_GPT. Vuln_GPT, speaking of, doesn’t run completely unsupervised — Assraf says that all AI-generated scripts are “validated” before being pushed to Vicarius’ customers. (Customers can give feedback on the scripts from a module).

 

“We wish to emphasize that Vicarius is looking to lead AI-based vulnerability remediation at any stage,” Assraf said, “from detection to prioritization to proactive remediation.”

 

Vicarius is ambitious, to be sure, with plans to allow security researchers in its community to spend their currency on products, launch educational courses and integrate the Vicarius platform with existing ticketing platforms like ServiceNow and Jira. The startup also aims to grow into new markets, in particular Asia Pacific, while expanding into markets in which it currently does business, including North America and Europe.

 

“For years, enterprises have been struggling with deploying vulnerability management processes that require too many tools and create too many alerts and too much work for overburdened security teams,” Assraf said. “While most security processes advanced one or two generations, the vulnerability remediation cycle management lagged, exposing businesses to cyber risk. As a result, customers are looking for a single platform that consolidates, personalizes and scales the vulnerability remediation process.”

 

 

 

— Techmeme

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The EU Council, Parliament reach a provisional deal on Anti-Money Laundering for crypto companies

—  Crypto firms have to do checks on transactions of 1,000 euro or more, and the framework adds measures to mitigate risks in transfers with self-hosted wallets

 

 

Sandali Handagama / CoinDesk:

 

 

Policymakers in the European Union on Wednesday reached a provisional deal on parts of a comprehensive regulatory package to combat money laundering that will force all crypto firms to run due diligence on their customers.

 

The Anti-Money Laundering Regulation (AMLR) is a broad-stroke effort to combat sanctions evasion and money laundering. It includes the creation of a single rulebook and sets up a supervisory authority that will also have purview over the crypto sector.

 

The European Parliament and Council (which gathers finance ministers from the bloc’s 27 member states) have agreed to measures, including for crypto firms to apply “customer due diligence measures when carrying out transactions amounting to €1,000 ($1,090) or more.”

 

The deal also adds measures to mitigate risks in relation to transactions with self-hosted wallets, Wednesday’s announcement said.

 

The EU last year finalized specific AML checks on crypto fund-transfers alongside its landmark Markets in Crypto Assets (MiCA) regulation. In December, the European Parliament and Council agreed on setting up the AML supervisory authority. Wednesday’s agreement specifically concerned the EU’s sixth money-laundering directive and the rulebook as part of the AMLR.

 

The package may have got tougher as it went through the EU’s complex legislative process in light of U.S. sanctions against crypto anonymizing tool Tornado Cash, as well as fears that crypto was being used to evade sanctions by Russia and even Hamas. A lawmaker leading the discussions on the package in Parliament last year assured the measures won’t seek to outlaw privacy-enhancing crypto.

 

Industry body, the EU Crypto Initiative, urged lawmakers in May 2023 to remove planned restrictions on privacy-preservation tools or, failing that, to include a “clear delineation between prohibited anonymous high-risk accounts and high-risk anonymizing instruments.”

 

“This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organized and work together. This will ensure that fraudsters, organized crime and terrorists will have no space left for legitimizing their proceeds through the financial system,” Belgian Minister of Finance, Vincent Van Peteghem, said in a press statement.

 

 

 

— Techmeme

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US Patent Office invalidates Seagen patent in dispute between Daiichi Sankyo and Seagen

TOKYO & BASKING RIDGE, N.J. — (BUSINESS WIRE) — Daiichi Sankyo Co., Ltd. (TSE: 4568) (hereinafter, Daiichi Sankyo) announced today that the U.S. Patent and Trademark Office (U.S. PTO) rendered a Final Written Decision invalidating all claims of Seagen Inc.’s U.S. patent 10,808,039 (the ’039 patent) that were challenged by Daiichi Sankyo in a post-grant review proceeding (PGR).

We are pleased that the U.S. PTO invalidated all challenged claims of the ’039 patent,” said Naoto Tsukaguchi, Corporate Officer and General Counsel, Daiichi Sankyo.

 

On Dec. 23, 2020, Daiichi Sankyo filed a PGR petition with the U.S. PTO contesting the patentability of certain claims of the ’039 patent. On April 7, 2022, the U.S. PTO granted Daiichi Sankyo’s request to institute the PGR.

 

The ’039 patent was the sole patent-in-suit in the infringement litigation between the parties in the U.S. District Court for the Eastern District of Texas, an appeal of which is now pending in the U.S. Court of Appeals for the Federal Circuit.

 

About Daiichi Sankyo

Daiichi Sankyo is an innovative global healthcare company contributing to the sustainable development of society that discovers, develops, and delivers new standards of care to enrich the quality of life around the world. With more than 120 years of experience, Daiichi Sankyo leverages its world-class science and technology to create new modalities and innovative medicines for people with cancer, cardiovascular and other diseases with high unmet medical need. For more information, please visit www.daiichisankyo.com.

 

Media Contacts:

Global/Japan:
Koji Ogiwara

Daiichi Sankyo Co., Ltd.

ogiwara.koji.ay@daiichisankyo.co.jp
+81 3 6225 1126 (office)

US
Kim Wix

Daiichi Sankyo, Inc.

kwix@dsi.com
+1 908 992 6633

Investor Relations Contact:
DaiichiSankyoIR@daiichisankyo.co.jp

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Best’s Special Report: US annuity surrenders up through 3Q/2023, edging out premium growth

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — The value of surrendered annuity policies increased 18% through the third quarter of 2023, compared with the same prior-year period, according to a new AM Best report. However, premium growth held steady at 17% through the same period, with individual annuity premiums notching its 11th consecutive quarter of year-over-year growth.

In its Best’s Special Report, titled, “Annuity Surrenders Up Through 3Q23, Beating Premium Growth,” AM Best notes that rising interest rates, which the life insurance segment has not seen in decades, have generated the prospect of disintermediation risk.

 

“Runoff annuity insurance companies or those that focus on block acquisitions rather than organic growth and can’t replace the business being surrendered are most likely to experience a shrinking asset base,” said Jason Hopper, associate director, AM Best. “It’s possible that maturing bonds may need to be used to cover additional surrenders instead of being reinvested.”

 

Surrender benefits topped $100 billion in fourth-quarter 2022, as well as second-quarter 2023, compared with an average of $86 billion over the previous 15 quarters, according to the report. Surrenders in the second and third quarters of 2022 were among the lowest in four years, due partly to a $4 billion reinsurance transaction by Fortitude Re.

 

However, surrender values paid as a percentage of premium are among the lowest levels they’ve been since at least 2019, reflecting strong premium growth. Surrender charges are used to dissuade policyholders from taking this cash-out option, using a time period under which a fee can be charged on a percentage of the account value if surrendered early.

 

“The life/annuity industry is less concerned about surrenders once policies leave the surrender charge period, as assets purchased to back the liability are typically matched to the surrender charge period, and insurers will typically drop the crediting rate on policies once that period has expired,” Hopper said. “However, insurers want to retain customers and have them reinvest in new, current product offerings, which starts the surrender charge period over again. This helps transfer capital from fully liquid liabilities to new, potentially longer-duration policies.”

 

The analysis in the report also shows that the ratio of premiums to surrender benefits has been more steady for larger annuity writers over the last four years compared to medium and smaller-sized organizations, but have less of a cushion should surrenders materially tick up without the correlating premium growth. In a higher for longer interest rate environment, the annuity market will remain highly competitive, as many new companies have entered the space, including several new private equity and asset management-backed insurers, adding capacity to the market and strong sales of multi-year guaranteed annuities.

 

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=339562.

 

To view a video with AM Best Associate Director Jason Hopper on this report, please visit http://www.ambest.com/v.asp?v=ambannuitysurrenders124&AltSrc=182 .

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2024 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Jason Hopper
Associate Director,
Industry Research & Analytics
+1 908 882 1896
jason.hopper@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Categories
Business Culture International & World Lifestyle Perspectives Regulations & Security

AM Best affirms Issue Credit Rating of Fairfax Financial Holdings Limited’s reopens senior unsecured notes

OLDWICK, N.J. — (BUSINESS WIRE) — AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” (Good) of the 6% senior unsecured notes, due December 2033, of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada). The outlook of this Credit Rating (rating) is stable.

 

The rating applies to the recently issued $200 million 6% senior unsecured notes, due 2033, and its existing $400 million 6% senior unsecured notes, due 2033, issued Dec. 7, 2023. The additional notes offered constitute a further issuance of, and are fungible with, the existing notes. The $200 million of additional notes were priced at 100.998%, plus accrued interest from Dec. 7, 2023, with a yield to maturity of 5.863%. These additional notes offer terms identical to the existing notes issued on Dec. 7, 2023, with the exception of the issue date and offering price.

 

The Long-Term Issuer Credit Rating of Fairfax, as well as the ratings of its operating subsidiaries and all other debt issuances are unchanged. Fairfax intends to use substantially all of the net proceeds of the offering to repay outstanding indebtedness with upcoming maturities and use any remainder for repayment of other outstanding indebtedness of Fairfax or its subsidiaries and for general corporate purposes.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Dan Hofmeister, CFA, FRM, CAIA, CPCU
Senior Financial Analyst
+1 908 882 1893
dan.hofmeister@ambest.com

Gregory Dickerson
Director
+1 908 882 1737
gregory.dickerson@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318

al.slavin@ambest.com

Categories
Business Culture Economics Government Lifestyle Local News Perspectives Politics Programs & Events Regulations & Security

AACCNJ honors the legacy and memory of Rev. Dr. Martin Luther King, Jr.

Martin Luther King on Black Economic Empowerment
(Coca Cola Boycott 1968)

 

Martin Luther King, Jr., (January 15, 1929-April 4, 1968) was born Michael Luther King, Jr., but later had his name changed to Martin.

 

His grandfather began the family’s long tenure as pastors of the Ebenezer Baptist Church in Atlanta, serving from 1914 to 1931; his father has served from then until the present, and from 1960 until his death Martin Luther acted as co-pastor.

 

Martin Luther attended segregated public schools in Georgia, graduating from high school at the age of fifteen; he received the B. A. degree in 1948 from Morehouse College, a distinguished Negro institution of Atlanta from which both his father and grandfather had graduated.

 

After three years of theological study at Crozer Theological Seminary in Pennsylvania where he was elected president of a predominantly white senior class, he was awarded the B.D. in 1951. With a fellowship won at Crozer, he enrolled in graduate studies at Boston University, completing his residence for the doctorate in 1953 and receiving the degree in 1955. In Boston he met and married Coretta Scott, a young woman of uncommon intellectual and artistic attainments. Two sons and two daughters were born into the family.

 

On April 3, 1968 Dr. Martin Luther King, Jr. gave is final speech, “I’ve Been to the Mountain Top.” Dr. King gave what many feel is one of his most important speeches. In this speech Dr. King called for a major boycott of all local and national brands. Dr. King spoke of the importance of the Black Dollar and how it could be used to leverage the garnering of civil rights.

 

In 1954, Martin Luther King became pastor of the Dexter Avenue Baptist Church in Montgomery, Ala. Always a strong worker for civil rights for members of his race, King was, by this time, a member of the executive committee of the National Association for the Advancement of Colored People, the leading organization of its kind in the nation.
He was ready, then, early in December, 1955, to accept the leadership of the first great Negro nonviolent demonstration of contemporary times in the United States, the bus boycott described by Gunnar Jahn in his presentation speech in honor of the laureate. The boycott lasted 382 days.
On December 21, 1956, after the Supreme Court of the United States had declared unconstitutional the laws requiring segregation on buses, Negroes and whites rode the buses as equals. During these days of boycott, King was arrested, his home was bombed, he was subjected to personal abuse, but at the same time he emerged as a Negro leader of the first rank.
In 1957 he was elected president of the Southern Christian Leadership Conference, an organization formed to provide new leadership for the now burgeoning civil rights movement. The ideals for this organization he took from Christianity; its operational techniques from Gandhi. In the eleven-year period between 1957 and 1968, King traveled over six million miles and spoke over twenty-five hundred times, appearing wherever there was injustice, protest, and action; and meanwhile he wrote five books as well as numerous articles.
In these years, he led a massive protest in Birmingham, Alabama, that caught the attention of the entire world, providing what he called a coalition of conscience. and inspiring his “Letter from a Birmingham Jail”, a manifesto of the Negro revolution; he planned the drives in Alabama for the registration of Negroes as voters; he directed the peaceful march on Washington, D.C., of 250,000 people to whom he delivered his address, “l Have a Dream”, he conferred with President John F. Kennedy and campaigned for President Lyndon B. Johnson; he was arrested upwards of twenty times and assaulted at least four times; he was awarded five honorary degrees; was named Man of the Year by Time magazine in 1963; and became not only the symbolic leader of American blacks but also a world figure.
At the age of thirty-five, Martin Luther King, Jr., was the youngest man to have received the Nobel Peace Prize. When notified of his selection, he announced that he would turn over the prize money of $54,123 to the furtherance of the civil rights movement.
On the evening of April 4, 1968, while standing on the balcony of his motel room in Memphis, Tennessee, where he was to lead a protest march in sympathy with striking garbage workers of that city, he was assassinated.

The NJ Chamber office is closed Jan. 15

in observance of Martin Luther King Jr Day.