Monday, May 31, 2021

Fed Admonishes Deutsche Bank for Ongoing Compliance Failure

Robert Schmidt and Jesse Hamilton
Sat, May 29, 2021, 




(Bloomberg) -- The Federal Reserve has privately told Deutsche Bank AG that its compliance programs aren’t up to snuff, signaling that the scandal-plagued bank is failing to adhere to a number of past accords with U.S. regulators, according to people familiar with the matter.

The Fed’s recent warning came in an annual regulatory assessment that said Deutsche Bank hadn’t improved its risk management practices despite being under confidential agreements with the central bank to fix the issues, the people said. The assessment letter has the German bank’s leaders bracing for potential sanctions, including the possibility of a large fine, said one person briefed on the matter.

The Fed’s latest admonishment is a setback for Chief Executive Officer Christian Sewing, who has been working diligently to repair Deutsche Bank’s relations with banking supervisors following a tumultuous period in which the lender stumbled from one crisis to the next. He now has a new hurdle to overcome -- and it’s likely a big one.

Deutsche Bank spokesman Dylan Riddle said the firm doesn’t comment on any communications it has with regulators. A Fed spokesman also declined to comment.

Deutsche Bank has had multiple dust-ups with U.S. regulators -- including foreign-exchange violations and ties to money-laundering cases. The lender has also been the subject of numerous Fed orders on how the company manages risks, and the firm’s efforts to overhaul its controls haven’t convinced the agency that the bank’s problems are behind it, the people said.

In a move that showed the firm is focusing on compliance issues, Deutsche Bank last week elevated Joe Salama, who had been general counsel for the Americas, to be global head of anti-financial crime and group money laundering officer. He succeeded Stephan Wilken, who had been in the post since October 2018.

While discussions with the Fed over Deutsche Bank’s ongoing missteps are in their early stages, the bank has faced similar rifts with the agency in recent years and been fined for them. The punishments include a $137 million settlement over allegations that traders rigged currency benchmarks and a $41 million penalty for money-laundering vulnerabilities.

Despite the Fed scrutiny, there are signs that Deutsche Bank has improved its risk management, at least in some areas. The firm emerged from the March collapse of Archegos Capital Management unscathed, while other banks that did business with Bill Hwang’s family office lost more than $10 billion combined.

The turn of fortune after years of gloom has lifted Deutsche Bank’s share price to outperform rivals as Sewing’s revamp has taken hold, and are up 38% this year.

Still, more trouble remains a possibility, as the Fed taking aim at the bank’s compliance systems shows. The stock is still trading at one of the steepest discounts to book value among European lenders with shares still far below their peak, and the bank has lost money in five of the past six years.

(Updates with share performance in ninth paragraph.)

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©2021 Bloomberg L.P.
Huge Canadian Pension Cuts AT&T Stake. It Bought Tesla, McDonald’s, and One Chinese Stock.

By Ed Lin
Updated May 29, 2021
BARRON'S NEWSLETTERS

A Canadian pension fund more than halved its AT&T stake in the first quarter. It also tripled its holdings of Tesla stock, and bought more McDonald’s and NIO shares.
David Paul Morris/Bloomberg

One giant public pension made major investment changes in the first quarter.

The Public Sector Pension Investment Board of Montreal halved its AT&T (ticker: T) stake in the first quarter, and nearly doubled its investment in electric-vehicle giant Tesla (TSLA). The agency also bought more shares of burger giant McDonald’s (MCD) and Chinese EV maker NIO (NIO).

The investment board disclosed the trades, among others, in a form it filed with the Securities and Exchange Commission. As of March 31, the investment board managed more than $140 billion in assets.

The agency sold 963,848 AT&T shares to end March with 677,727 shares of the telecom giant.


AT&T stock rose 5.2% in the first quarter, just behind the S&P 500 index’s 5.7% rise. So far in the second, however, shares have slipped 2.8%, while the index has gained 5.8%.

AT&T shocked investors earlier this month when the company announced that its dividend would be reduced in the course of restructuring. AT&T is leaving the media business, and will focus on telecom. CEO John Stankey said the lowered dividend “will still be incredibly attractive relative to other dividend opportunities in the market.” Shares slipped after the announcement, but Stankey bought AT&T stock on the open market.

The investment board bought 44,860 more Tesla shares to end the first quarter with 104,410 shares.

Tesla stock has been rolling downhill so far in 2021. Shares slipped 5.3% in the first quarter, and so far in the second they have lost 6.4%.

A string of unfavorable headlines have weighed on Tesla stock as of late. Still, shares are liable to rise sometimes on no apparent news. Tesla’s large position in Bitcoin could have dipped into the red with the cryptocurrency’s drop. In any case, CEO Elon Musk has said Bitcoin would no longer be acceptable for payment for Tesla vehicles, citing environmental reasons.

McDonald’s stock rose 4.5% in the first quarter, and so far in the second, it has gained 4.3%.

The fast-food-giant crushed estimates when it reported first-quarter earnings in late April. McDonald’s in May said it was increasing wages in company-owned stores.

The investment board bought 57,450 more McDonald’s shares in the quarter to end with 430,251 shares.

The agency bought 69,077 more NIO American depositary receipts to raise its investment to 192,337 ADRs.

NIO ADRs tumbled 20% in the first quarter, and have slipped 1.0% so far in the second.

NIO faces the chip shortage that is hurting several industries, and increased competition. NIO has noted that it expects the semiconductor issue to ease over June and July.




Canada’s Largest Pension Funds Stick To Lucrative Oil Sands Bets











Editor OilPrice.com
Sun, May 30, 2021


Canada’s oil sands industry is too carbon-intensive for the environmental, social, and governance (ESG) targets of some of the world’s largest institutional investors. But not for Canada’s own pension funds.

The five largest Canadian pension funds, which manage US$1.2 trillion in total assets, saw their combined investment in the U.S.-listed shares of the major oil sands producer surge by 147 percent in the first quarter of 2021, to a total of US$2.4 billion, according to a Reuters analysis of filings to the SEC.


Most of the jump in the value of investments of the pension funds merely reflected the rise in share prices of stock already held. Yet, the funds also bought more shares in the largest Canadian oil sands producers, according to the Reuters analysis.

Regardless of the way in which the pension funds boosted investment in oil sands in the first quarter, the fact remains that unlike other pension funds and some of the world’s largest sovereign wealth funds, Canada’s pension funds have not pledged or made divestments in one of the most emissions-heavy way of producing oil.

The funds, Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ), Ontario Teachers’ Pension Plan (OTPP), British Columbia Investment Management Corp (BCI), and the Public Sector Pension Investment Board (PSP) collectively increased the value of their investments in Canadian Natural Resources, Suncor Energy, Cenovus Energy, and Imperial Oil, according to the Reuters analysis.

Some of Canada’s pension funds have committed to carbon-neutral portfolios by 2050. Commenting on the analysis for Reuters, a PSP Investments spokeswoman said many of the fund’s investments were in passive portfolios tracking stock indexes. Representatives of other funds told Reuters that their exposure to fossil fuels as a whole is a tiny percentage of total assets held.

Nevertheless, the funds have been criticized by activists for not doing enough to account for climate risk in their portfolios by divesting from the oil sands business.

Related: Biden Defends Alaska Oil Project

Commenting on this week’s high-profile case in which a Dutch court ordered Shell to slash emissions, holding it directly responsible for contributing to climate change, pension activist group Shift said: “Pension funds take note: This case highlights the growing climate-related legal risks faced by oil and gas companies amidst a wave of litigation against the fossil fuel producers most responsible for the climate crisis.”

“We have a big problem with pension funds saying we believe in engagement, not divestment, but there’s no sign of this engagement,” Shift’s director Adam Scott told Reuters.

Other institutional investors and pension funds have already dumped their stakes in oil sands companies.

In May last year, Norway’s Government Pension Fund Global, the world’s largest sovereign fund which has amassed its enormous wealth from Norway’s oil, decided to exclude Canadian Natural Resources, Cenovus Energy, Suncor Energy, and Imperial Oil over “unacceptable greenhouse gas emissions.” Even the Public Investment Fund (PIF), the sovereign wealth fund of the world’s largest oil exporter Saudi Arabia, has recently sold all the 51 million shares it held in Suncor.

Among pension funds, the New York State Common Retirement Fund said last month it would divest its US$7-million investment in Canadian oil sands firms after determining that seven companies “failed to show they are transitioning out of oil sands production.”

The evaluation of the fund’s oil sands holdings are part of a broader review of climate risk in energy investments, and the fund will next evaluate shale oil and gas companies, it said.

The Bank of Canada also warned in its latest Financial System Review (FSR) from earlier this month that climate-related vulnerabilities are first among “ongoing issues that we all need to take seriously now to protect our financial system and economy in the future.”

“The potential impact of climate risks is generally underappreciated, and they are not well priced. That means the transition to a low-carbon economy could leave some investors and financial institutions exposed to large losses in the future,” Bank of Canada Governor Tiff Macklem said.

By Tsvetana Paraskova for Oilprice.com
IT'S CALLED SOCIALISM
Ford Foundation president: ‘We need a new form of capitalism’ to ‘level the playing field’



‘We are far from turning the corner, but we have begun to see some progress’: Darren Walker

Darren Walker, Ford Foundation President, joins Yahoo Finance’s Kristin Myers to discuss how the Ford Foundation has been paving the way for more equality in the United States, being one of the largest, private, charitable organizations in the country, and what has been changed since the murder of George Floyd.



The capitalist system is in the biggest need of reform in America, said Ford Foundation President Darren Walker.

A former banker, Walker said he is “a believer that there is no better mechanism to organize an economy than capitalism. But I also, as an advocate for capitalism, have to acknowledge its shortcomings— and the reality that in the United States, we have actually never given real capitalism a chance. What we need is a new form of stakeholder capitalism that recognizes the importance of all stakeholders, including employees, the communities, and suppliers."

Walker said "the actual boardroom of corporations needs to change. If you look, a year ago, we had a third of the S&P that did not even have a single African-American director. I can assure you that if you do not have representation at the board, you are not likely to see material, sustainable change at the C-suite and within the company more broadly.”

"We've got to change the rules of the game so that people have an opportunity to compete on a level playing field,” he said.


Walker believes that last year was one of “racial reckoning of the kind we have never seen in this country, and certainly in our lifetimes,” as major companies acknowledged that “corporate America has failed Black America.”

“So there has been huge disappointment. And that disappointment was manifest in 2020. But the encouraging thing that came out of 2020 was the strong statements — Black Lives Matter and other statements by CEOs — with concrete, measurable objectives attached that give us time now, one year later, to assess just how much progress has been made.”

But despite the progress, Walker said, “We are far from turning the corner. But I do think we have begun to see some progress and some reasons for hope.”

'Hope is the oxygen of democracy'


In order for the American Dream to continue, the question wealthy and privileged people must ask is how much money and power they are willing to give up, Walker said.

“I am lucky enough to live in a country where a poor kid like myself could be born in the bottom 1% and find myself in the top 1%. And that can only happen in America,” he explained. “But if we want that to continue to happen, we have to not hoard all the privileges and all of the assets.”

In order for the “opportunity ladder” to continue to work, Walker explained, “we've got to have a system that does not compound the advantage of the already-advantaged, and compound the disadvantage of the already disadvantaged — and particularly the historically disadvantaged.”

“So we have to look at what are the systems that produce and reproduce inequality," Walker said. "Those systems are our education system, our access to capital systems, financial systems, and say, what do we need to do to change those systems?”

There’s something “fundamentally wrong,” he said, with a system where during a pandemic, privileged Americans are “better off” than most Americans that suffered financially. “We need to ask some questions to ensure that we still leave hope on the table. At the end of the day, the American dream of hope and aspiration is what fuels our society. Hope is the oxygen of democracy.”

“And if we allow it, hopelessness will be the end of our society,” Walker said. “And I believe in this country. I know there is no other nation like the United States of America, and my loyalty and faith in it is unwavering. But I also am sobered by the reality of what I see in this country, which is far too much inequality.”

Kristin Myers is a reporter and anchor for Yahoo Finance. Follow her on Twitter.






COMPASSIONATE CAPITALI$M
ESG investment as important as divestment from fossil fuels: former Bank of England governor

Akiko Fujita
·Anchor/Reporter
Sun, May 30, 2021

Since leaving the top post at the Bank of England last year, former Governor Mark Carney has arguably been the most vocal advocate, urging financial institutions to align themselves with emissions goals of the Paris Climate Agreement.
CARNEY WAS GOVERNOR OF THE BANK OF CANADA PRIOR TO BEING HIRED BY BOE. HE WAS BOC GOVERNOR DURING CRASH OF 2008-2009

But as shareholders increasingly step up pressure, and lawmakers call for stricter regulations around climate disclosures, Carney said fossil fuel divestments shouldn’t be the sole focus of tackling the global crisis. Speaking to Yahoo Finance Live, the United Nations Special Envoy for Climate Action and Finance, said investing in the green energy transition is as important as moving capital away from the biggest sources of greenhouse gases.

“We're shifting from risk to opportunity and, as I say, aligning value in the market with what we want in society,” said Carney, who is also the vice chair at Brookfield Asset Management.

Carney has pushed to do that, in part, by establishing the Glasgow Financial Alliance for Net Zero (GFANZ) last month, a UN-backed coalition representing 160 banks, asset managers, investors, and insurers. The combined group, responsible for more than $70 trillion in assets, represents the broadest financial industry effort to date, to decarbonize lending portfolios and other practices. The initiative, in particular, calls for financial institutions, including Morgan Stanley (MS) and Citigroup (C), to accelerate their transition to a net zero economy, while establishing science-based policies to reach that goal by 2050.

Banks will now be required to dramatically reduce lending to fossil fuel-related projects, but Carney stopped short of calling for an outright divestment from oil and gas.

“It's as much about investing in companies that are part of the solution, then, then it is about divesting. Obviously if a company doesn't have a plan, if it isn't moving to get its emissions down, it's very risky and they're going to be starved of capital. That's the reality of this transition,” Carney said. “But this is very positive and a very large opportunity. I think that's where most institutions are focused. Where's the world going, not what it's leaving behind.”


Mark Carney, Governor of the Bank of England, makes a keynote address to launch the private finance agenda for the 2020 United Nations Climate Change Conference (COP26) at Guildhall in London, Britain February 27, 2020. Tolga Akmen/Pool via REUTERS

The scope of the effort and willingness of financial institutions to comply with a largely voluntary initiative will likely determine its success. A recent analysis by nonprofit group CDP, which operates the world’s largest environmental disclosure system, found that portfolio emissions of global financial institutions were 700 times larger than their direct emissions. Nearly half of financial institutions surveyed indicated they do not conduct any analysis on how their portfolio affects the climate.

Still, banks have been under pressure to accelerate their low-carbon transmission because shareholders have tied the company’s economic performance and future financial risks to climate risks. Last year more than 600 investors requested detailed disclosures from 12,000 companies, documenting everything from energy procurement and carbon emissions, to water security and soft commodity drive deforestation, according to CDP.


Tighter climate-related restrictions

Regulators, government leaders, and central banks have all joined those calls. Last week, U.S. President Joe Biden signed an executive order instructing U.S. Treasury Secretary Janet Yellen to work with members of the Financial Stability Oversight Council to develop standards for required disclosures of climate-related financial risks. The Federal Reserve established a Supervision Climate Committee (SCC) to develop a framework for assessing firm risks. while the Bank of England updated its mandate, to prioritize green bonds and phase out the largest polluting firms from its part of its corporate bond portfolio.

But, states in the U.S. that largely rely on coal and natural gas, have pushed back against tighter climate-related restrictions on banks, highlighting the challenges of reigning in bank lending activity. In a letter addressed to U.S. Climate Envoy John Kerry, treasurers from 15 states threatened to withdraw assets from banks that reduce loans to fossil fuel companies, saying the Biden administration’s efforts would threaten jobs in their states.

Carney said GFANZ is focused on helping institutions develop a plan to transition away from fossil fuels and reducing portfolio emissions through carbon offsets, ahead of the COP 26 meeting in Glasgow this fall.

“What [financial institutions are] looking to do is work with companies to invest so that those companies can get their emissions down. That can mean renewable power [because] there's a huge boom and a huge requirement in renewable power,” he said. “In the end, if the financial sector is not driving— or helping to enable these emissions reductions, they just won't happen.’



Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita
You have the right to decline the COVID vaccine -- but here's why you could still lose your job

HONOLULU, Hawaii - Lt. Col. Ronald Cole, Public Health Command-Pacific's Human Health Services director and a public health nurse, receives the first dose of the Pfizer vaccine at Tripler Army Medical Center, Honolulu, on Dec. 23, 2020. The inoculation was part of the Department of Defense COVID-19 vaccine distribution and administration plan that is a phased, standardized and coordinated strategy for prioritizing, distributing, and administering COVID-19 vaccines to protect DoD personnel, maintain readiness, and support the national COVID-19 response.


Meaghan Ellis May 29, 2021

Even as COVID vaccine distribution stabilizes across the United States, there is still a substantial number of Americans who are refusing to take the vaccine. While everyone has the right to decline vaccination, there are growing debates about whether employers have to accept that decision or not.

Based on a survey conducted by the Arizona State University and the Rockefeller Foundation back in April, "almost 90% of employers who responded plan to encourage or require their employees to get vaccinated and that 60% intend to require proof of vaccination."


But is it legal? Could your employer really fire you for declining to take the COVID vaccine? According to Bloomberg, they very well could and maybe well within their rights.

Vaccine opposers argue that it is illegal to incorporate vaccine requirements, but a publication, explains why that may not be the case. According to one attorney, there is currently no legalese to restrict employers from enforcing vaccine requirements.

Erik Eisenmann, an attorney specializing in employment law, weighed in on the legalities surrounding Emergency Use Authorization language. "I am not aware of any court or agency at the state or federal level that has held that the Emergency Use Authorization language prohibits an employer from enforcing a vaccine mandate," Eisenmann said.

A number of other legal observers and employment law experts have also echoed similar perspectives. Nicholas Bagley, a University of Michigan law professor, admitted that while the argument appears plausible on the surface, it quickly dispels once you dig a bit deeper.

"The argument looks good for about a half-second, and then, as soon as you start digging, it starts to look much, much worse," Bagley said. He also admitted that the political ramifications surrounding the vaccine could also pose legal arguments.

He added, "I would expect that we see some case law fairly quickly. But once political sympathies are engaged, it just becomes a whole lot harder to predict."

However, these types of legal arguments could become more prevalent in the coming months. In fact, Mat Heck, a prosecuting attorney in Montgomery County, Ohio has made it clear that he plans to make it a requirement for his employees and he is confident that he is well within his rights.

"I've heard the whole spectrum," Heck said. "I've heard you just can't do it. I've heard the emergency use argument. I've heard you can't make your employees get a shot for any reason. But it's just not true."

Health workers sue Texas hospital over compulsory vaccinations - Washington Post

May 30 (Reuters) - A group of 117 healthcare workers at a Texas hospital filed a lawsuit in state court against their employer's mandate requiring all staff to get COVID-19 vaccinations, Washington Post reported https://www.washingtonpost.com/nation/2021/05/29/texas-hospital-vaccine-lawsuit/?utm_campaign=wp_main&utm_medium=social&utm_source=twitter on Saturday.

Employees of Houston Methodist Hospital said in the lawsuit that their employer's compulsory immunization requirement violated the Nuremberg Code, a set of standards designed after World War Two to prevent experimentation on human subjects without their consent, the Post reported.

They also said the hospital presented them with the choice of either getting a vaccine or losing their job, which violated state law, and asked the court to bar Houston Medical from firing unvaccinated staffers, the report said.

The report comes a day after the country's Equal Employment Opportunity Commission (EEOC) said companies could mandate that employees in a workplace must be vaccinated against COVID-19, amid a shortfall in demand for inoculations due to factors including ambivalence or skepticism about the vaccines.

Public health officials have been forced to try new strategies to persuade people to get the shots, with efforts that range from creative gimmicks to grassroots outreach resembling get-out-the-vote drives.

However, the vast majority of employers have been reluctant to require workers to be vaccinated. A survey by management-side law firm Fisher Phillips earlier this year found that only 9% of the more than 700 employers surveyed said they were considering mandating vaccines. (Reporting by Derek Francis in Bengaluru; Editing by Kim Coghill)
U.S. security agency spied on Merkel, other top European officials through Danish cables - broadcaster DR

FILE PHOTO: U.S. Secretary of State Antony Blinken visits Copenhagen

Sun, May 30, 2021, 2:54 PM·

COPENHAGEN (Reuters) -The U.S. National Security Agency (NSA) has used a partnership with Denmark's foreign intelligence unit to spy on senior officials of neighbouring countries, including German Chancellor Angela Merkel, according to Danish state broadcaster DR.

The findings are the result of an internal investigation in the Danish Defence Intelligence Service from 2015 into NSA's role in the partnership, DR said, citing nine unnamed sources with access to the investigation.

According to the investigation which covered 2012 and 2014, the NSA used Danish information cables to spy on senior officials in Sweden, Norway, France and Germany, including former German Foreign Minister Frank-Walter Steinmeier and former German opposition leader Peer Steinbrück.

Asked for comment on the DR report, a spokesperson for the German chancellery said it only became aware of the allegations when asked about them by journalists, and declined to comment further.

Denmark, a close ally of the United States, hosts several key landing stations for subsea internet cables to and from Sweden, Norway, Germany, Holland and the UK.

The internal investigation in the Danish Defence Intelligence Service was launched in 2014 following concerns about Edward Snowden's leaks the previous year revealing how the NSA works, according to DR.

In Washington, the NSA did not immediately reply to a request for comment and the Office of the Director of National Intelligence (DNI) declined to comment. A spokesperson for the Danish Defence Intelligence Service declined to comment.

"It is grotesque that friendly intelligence services are indeed intercepting and spying on top representatives of other countries," Steinbrueck told German broadcaster ARD. "Politically I consider it a scandal."

Sweden's Defence Minister Peter Hultqvist told Swedish SVT broadcaster that he "demanded full information on these things." Norway's Defence Minister Frank Bakke-Jensen told broadcaster NRK that "take the allegations seriously."

A decision in August last year to suspend the head of the Danish Defence Intelligence Service and three other officials from their posts following criticism and accusations of serious wrongdoings from an independent board overseeing the unit, centered around the 2015 investigation, according to DR.

The Danish government said last year it would initiate an investigation into the case based on information from a whistleblower report. That investigation is expected to be concluded later this year.

(Reporting by Jacob Gronholt-Pedersen; Additional reporting by Christopher Bing in Washington, Simon Johnson in Stockholm, Kirsti Knolle in Berlin; Editing by Daniel Wallis)

Bulldogs and pugs struggling to reach old age, suggests research



Joe Pinkstone
Sat, May 29, 2021

Pug "Edda", now renamed "Wilma", is pictured in Wuelfrath, western Germany on March 4, 2019. - A decision by German local authorities to impound a pug from an indebted family and hawk it on eBay to pay off their debts is spiralling into a possible case for the courts. The pug named Edda, now renamed "Wilma", was seized by Ahlen local officials from a family which had been unable to pay their debts to the city authorities. A city employee put it on eBay using a private account and sold it for 690 euros, with the proceeds going to city coffers. In the advert, the pug was described as healthy, vaccinated and dewormed, but the buyer said the animal suffers from multiple problems including an eye injury that would require an operation.
 (Photo by Guido Kirchner / dpa / AFP) / Germany O ation UT 

Bulldogs and pugs, beloved for their flat faces but notorious for their health issues, are the most likely dog breeds to struggle to reach old age, new research suggests.

Researchers from the Royal Veterinary College (RVC) analysed data from nearly a million dogs in the UK, and assessed how common it was for a dog to be euthanised.

A total of 18 breeds were included in the study, and all were compared to a Labrador. The study, published in Scientific Reports, revealed Rottweilers are 76 per cent more likely to be put down than a lab.

However, the odds of a bulldog or pug being put to sleep are a third and a half as much as a Labrador, respectively.

“We put some ideas and theories forward as to why but it is difficult to be conclusive,” Dr Camilla Peygrem, companion animal epidemiologist at the RVC, and lead author of the study, told The Telegraph.

But one possible explanation is that the small, snorty lap dogs, known as brachycephalic breeds, form particularly strong connections with their owners, which may make it harder for them to put them to sleep.

This is exacerbated, experts say, by the fact any debilitating health issues are easier to overcome for owners than they would be in a larger dog.

“If you have a big dog it is much harder to manage as an owner than if you have a chihuahua,” Dr Daniella Dos Santos, senior vice-president at the British Veterinary Association, and a small animal and exotics vet, who was not involved with the research, told The Telegraph.

“Rottweilers were top of the table for risk of euthanasia, but it is not because it is a Rotty but because it is a bigger dog and owners find it harder to cope as they age.

A French bulldog dressed in tartan stands in front of a stand at the 10th Thailand international Pet Variety Exhibition in Bangkok on March 26, 2021. 
(Photo by Mladen ANTONOV / AFP) 

“If you imagine a dog with a spinal cord disorder, if it needs help moving it is much harder to move a 30kg dog than a 2kg dog.”

Dr O’Neill, a co-author of the study who is also a senior lecturer in companion animal epidemiology at RVC, and also chair of the Brachycephalic Working Group, said Britain is in the midst of a “flat-faced dog crisis”.

Dr O’Neill adds that ongoing work shows English Bulldogs and pugs have different common causes of death to other breeds, and this may partially explain the statistics.

“The core message here is that English bulldogs and pugs do differ to other breeds in how they typically die, and this is yet another piece of evidence showing how different these extreme flat-faced breeds are to other types of dogs.”

Official figures show that since the year 2000, there has been a 17,198 per cent increase in the number of registered French bulldog puppies, another brachycephalic breed.

Bulldogs and pugs have seen a 488 and 601 per cent increase in popularity in 20 years, respectively.

“The rise in numbers has been influenced by social media and celebrity influence,” Dr Dos Santos said.

“We see flat faces as cute and are normalising bulging eyes and skin creases which need cleaning. We are seeing it as normal to snore and for them to make noises when breathing, but it is not normal at all.

“We should not be normalising obesity and not going for a walk, for example. It is an emotive subject, people have these dogs, they love these dogs and they are cherished family pets.

“But if you love these breeds, you shouldn't get them. As the demand continues there will be unscrupulous breeders exploiting these dogs and it will lead to a health and welfare disaster.

“With the popularity increase, we are seeing these dogs more often, and we as vets are seeing the harsh realities of their health issues.

“We are treating the dogs when they can't breath, when they get heatstroke, and when they lose an eye from a corneal ulcer.

“They are prone to heat stroke and have challenges in breathing, and panting is how dogs release heat. Heat stroke is very serious and can be fatal and is worse in brachycephalic dogs.”

Sunday, May 30, 2021

How a beagle used in a test lab opened my heart

Melanie D.G. Kaplan, Special To The Washington Post
Sat, May 29, 2021,

ALEXANDER HAMILTON AND HIS MOM

My partner, James, recently surprised me with an illustration from a local artist titled "Hammy the Superdog." The picture shows my beagle, Hamilton, standing on his hind legs, arms akimbo, sporting little red shorts, what looks like a blue rash guard, matching blue boots and a red cape. At any moment, it seems, he could take off and soar over a cartoon city.

In real life, Alexander Hamilton is an 11-year-old beagle who spent his first four years in a testing laboratory. Not to ruin your day, but you should know that university and private labs still experiment on tens of thousands of dogs. Many of them are beagles, and many of the beagles arrive as puppies. The majority come from breeders who sell directly to the testing facilities, according to the Humane Society of the United States. Imagine taking the softest, most innocent and compliant being and putting him in a caged prison for years.



Hammy and I met in 2013. Years after I lost my beagle, Darwin, I had signed up with a nonprofit organization to foster a former laboratory dog; it was months later when I got the call asking if I was available the following week.

On a hot day in July, I gathered with six other volunteers in a suburban Maryland backyard and waited for seven beagles. They arrived in a van, directly from a laboratory in Virginia. We weren't told the name of the lab or the kinds of testing they underwent. But we were told that this was their first time walking on grass and sniffing in sunshine.

At home, Hammy was petrified, rarely leaving his bed and scared of everything. He had the naivete of a toddler and the frights of a prisoner of war.

After years in a cage, his legs were so undeveloped that I had to teach him to climb stairs and hop on a couch. He couldn't bark because, I was told by the nonprofit group, his vocal cords had been cut - apparently a common practice in some labs to prevent howling. Even his sense of smell (a beagle's superpower) was weak, so I hid treats, encouraging him to exercise his sniffer muscles. On one of our first car outings, he ducked when we drove beneath an underpass and again when I turned on the windshield wipers.

The six beagles released from the lab with Hammy (all named after Founding Fathers) were similarly scarred and scared. Some wouldn't walk through doorways for years; others tried escaping.

Through the years, Hammy has largely gotten used to life in the free world - proving wrong those in the testing industry who say dogs used in experiments can't later thrive as pets (the vast majority of laboratory animals are euthanized, according to the Humane Society). He stops at the neighborhood firehouse for treats and delights me with flashes of playfulness. His vocal cords grew back, and he now howls, joyfully, before every meal. He can smell an open jar of peanut butter through a brick wall.

Before the pandemic, Hammy had a stint as a therapy dog. We started at a hospital, where he sat on patients' beds, trembling, making eye contact only with half-eaten trays of food. Next we volunteered at a women's shelter and a juvenile detention center, facilities that were quieter but yielded their own startling sounds. Then we visited classrooms, where I talked about animal testing as my gentle companion went desk to desk, inhaling a carrot slice from each student. Inquisitive and earnest, the students vowed to write their representatives. They lifted Hammy's left ear to see the crude, blue tattooed number that identified him at the laboratory - before he had a name. They tried to pet away his shakes.

Hammy remains fearful and sensitive - as flappable as they come. He lifts off the ground like a rocket when a leaf drops in his path, cowers walking under scaffolding and flinches when pigeons take flight. He'd rather leap off a tall building than listen to a bicycle bell. When he is out of earshot, I call him Anxiety Dog. And every day, I praise him for enduring even the most ordinary of events.

Once, a couple of his toes became stuck like he was crossing them for good luck. He sat on the couch and raised his paw, showing me his predicament. "Fix this?" he seemed to be saying. I uncrossed his toes and whispered in his ear, "You are so brave." I chuckled, thinking about how long he would survive in the wild.

And yet, he's a survivor. At times, I see his blank stare and wish I knew more about his life as a young dog. At best, a technician may have embraced him. I try not to think about the worst.

One day a couple of years ago, Hammy scurried from the room at the chime of an incoming text. What traumatic memory did that trigger? This new reaction to the sound came on quickly.

At first, I tried to console him with edible love, but the little oyster cracker-sized treats fell from his quivering lips. So I began shielding him from digital chimes; around friends, I'd ask them, like a librarian, to please silence their phones.

After months of trying to comfort him with treats, a notable victory: He began coming to me for a reward when he heard the offending sound. But the episodes remained upsetting and stressful - for both of us. To this day, hearing a text sound triggers something in me.

Then Hammy became sensitive to other jangles, clinks, tings and pings - the padlocked chain being pulled off my neighbor's gate, two steel necklaces faintly tapping each other on my neck, a typewriter bell on a podcast. Last year, James and I streamed shows that surprised us all with elevator dings and front desk bell rings; Hammy clearly viewed them as horror movies.

The shaking set off by these sounds can be intense.

When it happens, I smother Hammy with kisses and wrap my body around his, trying to simulate the hug machine, a contraption invented by autism and animal behavior expert Temple Grandin to relieve stress. Imagine a yogi in child's pose over a furry jackhammer.

Curling up with my brave little guy on his bed, I picture him donning that artist-drawn superdog outfit. Yet I wonder whether Hammy sees me as the one in the cape, swooping in when evil sounds strike.

I think, "How lucky I am to be his therapy human." Deeply loving a being who faces this world with fear and hesitation has unleashed superpowers in me. I've discovered nearly unlimited reserves of patience and tenderness for this 28-pound, tricolored creature with a tail tipped in white and ears like velvet. Some days, I can sit for long stretches and watch him sleep, which calms me.

I'm more aware of the needs of others - including humans - and my heart is more open. My edges have softened.

After I soothe his tremors, Hammy rolls onto his back and looks at me intently. His big brown eyes speak, and I translate: "Rub my belly?" His legs stick up in the air and flail awkwardly with the final round of trembles. I caress his pink stomach and stare into his eyes, speaking back. For the moment, all is right in the world.

In the cartoon sky, we soar without fear, our magnificent capes flapping gloriously in the wind. Silently, of course.