Saturday, June 15, 2024



Why Elon Musk and Jeff Bezos Want Women to Stay Barefoot and Pregnant

Thom Hartmann
Thu, June 13, 2024 

Elon Musk, the father of 11 children, thinks that declining population is a crisis and the world needs more babies—particularly those with his DNA—or there will be a catastrophe. For example, he recently proclaimed: “Population collapse due to low birth rates is a much bigger risk to civilization than global warming.”

Billionaire Jeff Bezos echoed the idea, promoting the fallacy that more people means “more Einsteins.” He said: “I would love to see, you know, a trillion humans living in the solar system. If we had a trillion humans, we would have at any given time a thousand Mozarts and a thousand Einsteins.… Our solar system would be full of life and intelligence and energy.”

The fact is, though, that countries with huge populations generally are more likely to have more slum dwellers than scientists or musicians. It’s only when people have widespread prosperity, so there’s time for a creative middle class to form, that such extraordinary people have the time to develop their talents.


This literally cancerous idea—that continual population growth is a good thing—has been with us for about 2,000 years, and, while it has arguably accounted for some of the positive aspects of modern civilization, it has also left our world in a shambles.

Nonetheless, it’s official doctrine within the Catholic Church, a tiny slice of orthodox Jews and Hindus, and major parts of Islam. Because Christianity and Islam are evangelical, they are constantly trying to spread their influence, the primary means by which they grow their political and economic power.

Close behind evangelism to accomplish that “larger army” is the doctrine that it’s the duty of families to be as large as possible, relegating “conservative ideal women” to broodmare status. Barefoot and pregnant. Kitchen and bedroom only.

The origin of this ideology dates back to the earliest times of warfare, when families, tribes, local baronies, or nation-states went to war. The biggest factor that determined who won a battle was which side had the larger army. And aggressively working against birth control and advocating fecundity is a great way to increase the pool of entrants to your army.

So, really, Musk and Bezos are just echoing a thought virus that has infected much of humanity since the early days of evangelical religion and warfare.

But that time of continuous human population growth is nearly over, and, billionaire eccentrics aside, populations are now declining in many parts of the world. We’d be seeing population decline here in the United States too, if it weren’t for immigration, both legal and otherwise.

It’s become a conservative tenet of faith—drawing from Catholicism, Islam, evangelical Christianity, and crackpot economics—that this decline in population is a bad thing. The biggest army and all that.

It also seems to have captured the mainstream media as if it were conventional wisdom. It’s very rare that you see reporting about population declines that doesn’t position them—often with headlines announcing a “population crisis”—as failures or disasters.

But there are significant advantages to population declines when they’re done thoughtfully and are not the result of disaster. These include economic, environmental, and social benefits that are substantial.

The first is that wages generally rise as populations decline because there is more competition among employers than among employees. Conservatives and, weirdly, the mainstream press present this as a bad thing, although they rarely talk about insurance, banking, or private equity executives walking off with over a billion dollars as something we should know or care about.

We saw this play out in a huge way at a particularly unique moment of history: the Black Plague. When it decimated fourteenth-century Europe, killing a third to half of all the people in just a few short years, the labor force of survivors became so small that—even though kings and usually their barons had literally the power of life or death—workers could negotiate with their employers and demand good pay, fewer working hours, and meaningful benefits.

The result was a flowering of civilization, arts, music, and literature; suddenly, working-class people were paid well enough that they could be creative in their spare time. We called that era the Renaissance, and it was an example of the first truly “middle” class in the history of the post–agricultural revolution world.

The main gift of the Renaissance to future generations was that it birthed the first guilds, the prototype for today’s modern unions.

As working-age population declines, unions will get stronger, which has always, historically, had a positive effect on society.

It’s also better for business: Studies show that unionization reduces worker turnover, which is both expensive and dangerous in many industries. When companies treat workers fairly, workers treat their employers back fairly.

We saw this in the era from 1945 until 1980, when unions were so powerful that CEOs rarely took more than 30 times what the top worker made, while working-class wages were rising faster than any time in American history.

This was, of course, the time before the Reagan Revolution, when an average worker with a single income could buy a home, raise a family, put their kids through college, buy a new car every two years, and take a vacation every summer. Ask any Boomer.

Strong unions reduce economic inequality primarily by lifting up out of poverty an entire middle class. That’s what happened in this country during that roughly 40-year period, until Reagan and the billionaires who own the GOP took a meat ax to it all.

A smaller number of people in the workplace also makes it much harder for businesses to maintain historic and rigid racial and gender hierarchies and pay scales. The workplace becomes more diverse, more interesting, and more innovative. Reducing population is thus also the ultimate women’s equality move.

There’s also less need for extensive infrastructure, like building new office buildings, housing, and shopping centers. This allows the resources of a society to be redirected toward making sure everybody has full access to quality health care and education, and to rebuild the physical, economic, and social infrastructure of the nation.

These don’t just benefit everybody, they also generate overall, nationwide economic prosperity.

As technology continues to advance and replace humans, everything from computers to supermarket checkouts to artificial intelligence is reducing the need for human laborers. A smaller population balances for this, so the impact of automation is also diminished while its benefits are enhanced.

There are also substantial environmental benefits to declining populations. There’s less of a strain on natural resources, less deforestation, and lower greenhouse gas emissions.

Smaller human populations produce smaller populations of our food animals, which represent about 60 percent of all mammalian flesh on earth. The world’s biodiversity can then be enhanced, wildlife and wild spaces protected, ecosystems repaired, and ecological balance restored.

Catholic and evangelical ideologues continue portraying population decline as a bad thing. But they’re fighting an uphill battle; women all over the world are choosing fewer babies (where they can), sperm counts are collapsing, and infertility is rampant (both, apparently, because we’ve poisoned our environment and food supply trying to meet the needs of eight billion people).

That won’t stop Republicans on the Supreme Court and in Congress, however, from pandering to those groups with their anti-abortion and anti–birth control legislative and judicial attacks on women’s rights.

But, as Dwight Eisenhower once wrote about a couple of oil baron brothers and their followers, “Their number is negligible and they are stupid.”





US judge blocks Biden's Title IX protections for LGBTQ+ students in some states

Nate Raymond
Fri, June 14, 2024

A federal judge in Louisiana on Thursday blocked President Joe Biden's administration from enforcing in four states a new rule that protects LGBTQ+ students from discrimination based on their gender identity in schools and colleges.

U.S. District Judge Terry Doughty in Monroe issued a preliminary injunction barring a U.S. Department of Education rule that extended sex discrimination protections under Title IX to LGBTQ+ students from taking effect in the Republican-led states of Louisiana, Mississippi, Montana and Idaho.

Those states had argued that unless the rule was blocked, schools would be required to allow transgender students to use restrooms and locker rooms conforming to their gender identities.

Students and advocates rally to call for the Biden administration to release a final Title IX rule in Washington, DC on Tuesday, Dec. 5, 2023.

"Enacting the changes in the final rule would subvert the original purpose of Title IX: protecting biological females from discrimination," Doughty, an appointee of Republican former President Donald Trump, wrote.

The ruling was the first by a judge blocking the rule, which had been challenged in nine lawsuits by Republican-led states and conservative activists who argue it amounts to an unlawful rewrite by the Democratic president's administration of a law designed to protect women from discrimination in education.

"This is a big win for women's rights," Montana Attorney General Austin Knudsen, a Republican, said in a statement. "This decision will keep young women and girls protected from dangerous situations, just as Title IX has done for decades."

An Education Department spokesperson said it is reviewing the ruling but stands by the rule, which takes effect Aug. 1.

New Title IX rules, explained: Biden finalizes policies to boost rights of sexual assault victims, LGBTQ+ students

The department in issuing the rule in April said it clarified that the prohibition against sex-based discrimination in schools and colleges that receive federal funding contained in Title IX of the Education Amendments of 1972 also includes discrimination based on sexual orientation and gender identity.

The department cited a 2020 U.S. Supreme Court decision holding that a ban against sex discrimination in the workplace contained in a different law, Title VII, covered gay and transgender workers.

Courts often rely on interpretations of Title VII when analyzing Title IX as both laws bar discrimination on the basis of sex.

But Doughty agreed with the Republican state attorneys general of Louisiana, Mississippi, Montana and Idaho that the rule was "inconsistent with the text, structure, and purpose of Title IX."

Biden promised to reform Title IX. Students are tired of waiting

Doughty said the rule would require schools to use whatever pronouns a student preferred and allow them to access bathrooms and locker rooms based on their gender identity, an issue of political significance the agency lacked authority to address.

He said it also ran afoul of the U.S. Constitution's Spending Clause by containing ambiguous conditions and violating other constitutional provisions, including the First Amendment's protections for free speech and the free exercise of religion.

This article originally appeared on USA TODAY: Biden protections for LGBTQ+ students blocked in some states by judge
Global rush for farmland could trigger world war, documentary argues

Saul Elbein
Fri, June 14, 2024 at 3:30 AM MDT·8 min read
16


Global rush for farmland could trigger world war, documentary argues

A global network of powerful entities, fueled in part by Wall Street, is buying up land and water around the world.


This global land rush has led to wrecked wells and lost farms from Arizona to Zambia — and it risks sowing the seeds for future global conflict, according to “The Grab,” a new documentary out today from Gabriela Cowperthwaite, the director of “Blackfish.”

The film follows a seven-year investigation by producer and journalist Nathan Halverson of The Center for Investigative Reporting as he peels back the layers of a deceptively simple question: Why did a state-backed Chinese corporation buy America’s biggest pork producer in 2013?


“The Grab” hits U.S. markets at a fraught time for food policy: Congress remains deadlocked over the farm bill, and critics on both left and right are raising concerns over the impact of corporate consolidation on U.S. agriculture as farms grow ever bigger and more specialized.

Republicans in the House and Senate have proposed freezing food aid at current funding levels to direct tens of billions of dollars in additional subsidies to high-income farmers of rice, cotton and peanuts — crops of which significant percentages are exported to the wider world.

“The Grab” digs into some of the forces driving the consolidation and food exports — and their potential consequences.

When countries like China import food, Halverson notes in the film, they’re often doing so “as a proxy for water,” which the world’s most populous nation is running short of amid population movements and climate change.

The combination of those potential shortages and a rising — and increasingly carnivorous — middle class in China and elsewhere have combined to create a global push to buy up fertile land in places where it is still plentiful.

One critical focus of this push is Africa. Halverson interviewed Brig Siachitema, an activist in the Zambian town of Serenje, where he says foreign investors have been buying up the ancestral land of villagers and kicking them off it.

“What we are seeing is really a new scramble for Africa,” Siachitema says in the interview. “The only difference is, before they were scrambling for minerals. This time around, they are scrambling for land.”

That includes the United States. In 2015, Halverson broke the story that Saudi-owned alfalfa farms were sucking down the groundwater of Arizona to grow feed for cattle — something the kingdom grew itself until it depleted its own groundwater.

For residents of La Paz County, Ariz., for example, that lost groundwater left wells nonfunctional. Landowner Wayne Wade first noticed a problem when the water level in his well went below his pump “and the pump burned up and melted the casing,” Wade tells Halverson in “The Grab.”

“Everybody knows the problem, but no one knows how to correct it,” Wade adds. “You just take and take and take, and pretty soon there isn’t anything to take.”

In making the film, Cowperthwaite told The Hill, she sought to steer away from what she saw as a polarized, dead-end conversation about climate change — and focus on a film “in the context of power.”

Gabriela Cowperthwaite and Nathan Halverson of “The Grab” pose in the Getty Images Portrait Studio Presented by IMDb and IMDbPro at Bisha Hotel & Residences on September 9, 2022, in Toronto. (Photo by Gareth Cattermole/Getty Images)

“And I think that’s something that sort of every Zambian villager in Serenje will feel — similarly to every Trump-voting farmer in Arizona,” she added.

In part, “The Grab” argues that power is being exercised over individual landowners by a convoluted and opaque network of sovereign wealth funds, national governments and Wall Street.

When Halverson tried to uncover the identities of the white farmers kicking the Zambians off their land, he found “a Russian doll of LLCs within LLCs that could be owned by anyone,” he says in the film. He found the story is often similarly murky in the U.S.

Late in the movie, he presents La Paz County Supervisor Holly Irwin, a staunch critic of the Saudi alfalfa farm, with evidence that the Arizona State Retirement System — her own pension fund — is invested in the project that is draining the aquifer beneath the county.

In the U.S., Halverson says in the film, “it’s a fight against the same corporations that are taking food globally.” Rather than fighting to protect U.S. land and food from other multinational corporations, “the governments are working for the corporations.”

But the power involved in the land rush scales up to the geopolitical level as well, driven ultimately by the titanic shifts happening within China — a country once so poor that “in 1980, [it] was a country of basically forced vegetarians,” Halverson told The Hill.

Over the back half of the 20th century, he noted, China “did something absolutely amazing”: It pulled 400 million people out of poverty, such that its middle class is larger than the entire U.S. population.

“That’s a huge win for the world — but the unintended consequence is they’re eating diets more like Western diets. Which means more meat,” he said. As part of his reporting, he came across a WikiLeaks cable from an executive at Nestlé, the world’s largest food company, following a tour of China.

“He said straight up: If [all countries] ate as much meat as America, the world would have run out of water in the year 2000,” Halverson said of the cable’s contents.

Now, he said, the government of China — like that of India, or Brazil, or Saudi Arabia — “wants to make sure their people have enough. And if you add climate change on top of that, then what you’re talking about is, increased droughts, increased flooding, more variability in an increasingly tighter global food system.”

That goal leads to a paradox, “The Grab” shows. As experts interviewed in the film emphasize, there are enough calories worldwide to feed a growing global population, even with climate change, and even in 2050. But they say the race to lock down resources, and governments’ panic over the unrest caused by spiking food prices, risks scaling up to a war between great powers.

“I’ll tell you, as a practical matter,” former CIA analyst Robert Mitchell tells Halverson in the film, “while the policymakers are debating, whoever needs water and has guns will go get it.”

Water is a hidden factor in a wide array of geopolitical conflicts. In the Jordan Valley in the Israel-occupied West Bank, for instance, human rights groups have documented that the majority of water goes to a network of Israeli settlements, as Palestinian farms go dry. In the ongoing conflict in Gaza, meanwhile, the United Nations special rapporteur on human rights has accused Israel of using access to water “as a weapon of war.”

Water also may have played a significant role in the Russian invasion of Ukraine — the “breadbasket of Europe” — which came after a decade of calls by Russian officials for major food-producing countries wield more power in markets. Russian President Vladimir Putin has for years pushed for a global grain cartel modeled on OPEC.

“Food that has become the second oil — and much more powerful than oil,” the head of Russian meat company Miratorg tells Halverson. In the future, food “will give political strength to Russia, much more than weapons,” he said.

“The Grab” charts how in the aftermath of Putin’s invasion of the Crimean Peninsula in 2014, the government in Kyiv dammed the principal canal supplying 85 percent of the region’s water — forcing Russia to spend billions of dollars in shipping in water to the peninsula’s cities and slashing the amount of irrigated land in the region by as much as 90 percent.

Halverson stopped short of saying that Crimean water was the cause of the invasion — although he noted that one of the first things Russian troops did after the invasion was blow the dam and reopen the canal.

“But we’re pushing back on the idea that this was just Putin puffing up his chest,” he told The Hill. “The only way [Russia was] going to turn that water back on was by going into that part of Ukraine.”

So as Russian troops massed on the border of Ukraine in 2022, “while a lot of people were naysaying the invasion, we were watching it very closely, because we were tracking it through that resource grab,” he said.

The subsequent war in Ukraine has killed half a million people and released a vast plume of planet-heating carbon dioxide — and it could be just the beginning of a new era of open warfare over access to farmland and water, Cowperthwaite contends. She told The Hill that the war in Eastern Europe pushed a potential conflict from the film that was still at a level of “brinksmanship” — but that could, from a geopolitical perspective, be even worse.

In Northeast Africa, she noted, Egypt and Ethiopia are at odds over the latter’s Grand Ethiopian Renaissance Dam, which could potentially block the Blue Nile, the tributary that supplies 85 percent of the river’s flow.

Negotiations to guarantee Egyptians’ supplies in the case of a drought — which would force Ethiopia to open the dam, and let its own water out, to supply its neighbor — have repeatedly broken down.

As part of the reporting by the filmmakers that ended up cut, Cowperthwaite told The Hill, they captured “the head folks in Egypt on a hot mic saying, ‘Well, you know, we may have to take apart that [dam] — we may have to go to war.’ And Ethiopia says, ‘Well, we haven’t lost a war yet.’”


Exclusive The Grab Clip Previews Gabriela Cowperthwaite’s Shocking Documentary

Tyler Treese
Thu, June 13, 2024 

(Photo Credit: Magnolia Pictures/Paricipant)

ComingSoon is excited to debut an exclusive The Grab clip from Gabriela Cowperthwaite‘s upcoming documentary, which follows The Center for Investigative Reporting as they look into the seizure of food and water resources around the globe. Magnolia Pictures & Participant will release the film in theaters and on demand on June 14, 2024,


“Quietly and seemingly out of sight, governments, private investors, and mercenaries are working to seize food and water resources at the expense of entire populations. These groups are establishing themselves as the new OPEC, where the future world powers will be those who control not oil, but food,” says the synopsis. “And it’s all beginning to bubble to the surface in real-time. Global food prices have hit an all-time high, threatening chaos and violence. Meanwhile, Russia is using food as a weapon against the Ukrainians and as a geopolitical tool to wield global power.”

Check out our exclusive The Grab clip below (watch more clips and trailers):

What to expect from The Grab?


“The Grab is a jaw-dropping global thriller combining hard-hitting journalism from The Center for Investigative Reporting with the compelling character-driven storytelling of director Gabriela Cowperthwaite (Blackfish), taking you around the globe from Arizona to Zambia, to reveal one of the world’s biggest and least known threats,” says the official description.

The documentary features a number of reporters, including Nate Halverson, JoeBill Muñoz, Mallory Newman, David Ritsher, and Emma C. Schwartz. Subjects include Holly Irwin and Brigadier Siachitema.

Director Gabriela Cowperthwaite described her film as “an investigative thriller that aims to explain the world, to expose the ‘business as usual’ cracks, to break down some darkly powerful inner workings while focusing on the humans who absorb every punch in real-time. In a time where the world can feel confusing and dim, our hope is that this 6-year investigative deep dive of a film can help explain, unite, galvanize, and entertain people from all walks of life and from all corners of the world.”

The groundbreaking documentary has a runtime of 104 minutes.


Traders Cheer On Argentina as Milei Win Underpins Austerity Push
TAX BREAKS FOR ME, AUSTERITY FOR THEE


Kevin Simauchi
Thu, Jun 13, 2024, 11:11 AM MDT3 min read


(Bloomberg) -- Investors welcomed congressional approval of President Javier Milei’s omnibus bill, saying it showed he can push through contentious reforms many see as key to getting Argentina’s economy back on track.

The president won just enough support to advance his landmark austerity package in the Senate early Thursday morning, following weeks of horse-trading and pushback from opposition lawmakers.

The vote confirmed many investors’ base case scenario, sending sovereign bonds higher. US-listed shares of Argentine companies and an exchange-traded fund that tracks the country’s stocks also climbed.

Still, some see additional gains as limited since much of the reform was already priced in, and the Senate’s rejection of a provision that would expand income tax triggered concerns over Milei’s ability to eliminate fiscal deficits. A cobweb of capital controls and a weaker peso in parallel markets may also hinder foreign investment, they said.

Graham Stock, senior EM sovereign strategist at RBC BlueBay Asset Management:

The bill’s approval is a “very important milestone,” as it moves the “government a step closer to having some legislative underpinning for its reform program rather than relying solely on executive actions”


Move has “positive implications” for bond prices as it puts the fiscal adjustment on a more sustainable footing


“It is very important that the Lower House reinstates the personal income tax, both as a source of revenue for the provinces and as a signal that Argentina is returning to more normal public policy settings”

Kate Moreton, analyst at Columbia Threadneedle:

“It proves that Milei has some governability and that his reform story has legs, but I expect us to kind of top out where we are” in terms of the levels at which bonds are trading, given how much reforms were already priced in


“My base case is that we will still need a restructuring at some point”


“This is kicking the can down the road further, but I think there’s still a lot of of risk here”

Citigroup Inc. strategists led by Donato Guarino:

The bill’s approval marks a “bittersweet win” for Milei’s administration as it has been in the works for the last six months, but has been “constantly diluted”


Remains overweight on Argentina’s bonds and reiterates call to go long on notes due 2030

Stuart Sclater-Booth, portfolio manager for emerging-markets debt at Stone Harbor Investment Partners:

While watered down, the bill demonstrates that Milei and team can in fact pass legislation, which is “important for credibility with investors and with likely negotiations with the IMF”


“The passage of the bill was a necessary, but not necessarily sufficient condition for the Argentina recovery. There is still progress to be made on normalizing FX, improving domestic credit and generating growth”


While the reforms facilitate some foreign investment, the lack of a normalized FX regime still presents some obstacles for “meaningful FDI”

David Austerweil, deputy portfolio manager for emerging-markets at Van Eck Associates Corp.:

The bill’s “passage was largely expected and due to the many compromises needed to gain its acceptance, it will not generate material fiscal savings”


“We currently have no position in Argentine sovereign bonds. With the likely passage of the Omnibus bill, the expected good news is likely behind us”


The pace of the country’s reserve accumulation has slowed and “even turned slightly negative this month”


“At the current overvalued level of the exchange rate and low interest rates, exporters can finance inventories and wait to sell them at a cheaper exchange rate and so reserve accumulation will likely continue to underwhelm. This should increase expectations of another FX devaluation and add further pressure on international reserves”


“For us to become more constructive on Argentine sovereign bonds, the exchange rate would need to move to a floating regime that restores competitiveness and allows for competitiveness to be retained without the need to future one-off devaluations”

Most Read from Bloomberg Businessweek
How three MIT scientists and Tencent's backing created Hong Kong's new investor darling

South China Morning Post
Fri, Jun 14, 2024

A loss-making firm that applies artificial intelligence (AI) to drug research has become a new darling for both old-money and new-money investors in Hong Kong, drawn by the impressive credentials of its three founders, who trained at the Massachusetts Institute of Technology (MIT), as well as the endorsement of Tencent Holdings' billionaire founder Pony Ma Huateng.

Nine-year-old QuantumPharm, which began trading on Thursday, raised nearly HK$1 billion (US$128 million) in an initial public offering (IPO) in Hong Kong, becoming the first technology company to float shares under the city's relaxed regulatory framework known as Chapter 18C.

The Hong Kong stock exchange introduced Chapter 18C a year ago to allow promising start-ups worth at least HK$10 billion to sell shares even before they have made any revenue, as part of the government's efforts to transform the city into a hi-tech hub.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

The IPO of Quantum Pharm, known also as XtalPi, has been portrayed as a showcase of Hong Kong's major role in supporting China's "hard technology" drive.

Hong Kong finance chief Paul Chan Mo-po delivered a congratulatory message on the day of the firm's trading debut, saying that the city's advantage as an international financial centre enables it to facilitate technological innovation, a key element in the "new quality productive forces" that President Xi Jinping sees as key to China's development.

QuantumPharm's cornerstone investors include real estate mogul Peter Lee Ka-kit, chairman of Henderson Land Group, as well as MIT chemistry professor Bradley Pentelute, according to the underwriters.

Public investors oversubscribed the offer by 103 times.

Some subscribers were likely dazzled by QuantumPharm's three founding members - Wen Shuhao, Ma Jian and Lai Lipeng - who are all scientists trained at one of the world's most highly regarded research universities.

"Ten years ago, we were three young men at MIT," said Wen, the company's chairman, at the company's listing ceremony on Thursday. The company now brings together "hundreds of PhD degree holders" after "a decade of hard work", he said.

Wen, 42, earned his doctorate in physical chemistry from the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences in 2010 and went on to work as a postdoctoral associate at MIT from 2013 to 2015.

There, he met future business partners Ma, a quantum computing scientist and now CEO at QuantumPharm, and Lai, who holds a PhD in Physics from Chicago University.

By combining their expertise, the Shenzhen-based company is trying to use quantum physics, artificial intelligence and robotics to significantly shorten the time needed to develop and test new medicine. One of QuantumPharm's claimed achievements is that its technology helped reduce the development cycle of Pfizer's Paxlovid, the first Covid-19 oral treatment, to six weeks.

Pony Ma Huateng, founder of Tencent. Photo: STR/AFP alt=Pony Ma Huateng, founder of Tencent. Photo: STR/AFP>

QuantumPharm's pitch was impressive enough to win the attention of Tencent's Ma, whom Wen said he met in 2016. While Ma said at the time that the social media and video gaming giant, also based in Shenzhen, seldom invested in pharmaceutical ventures, he decided to bet on the start-up because of its potential "social value".

Tencent, China's highest-valued tech giant and a key investor in QuantumPharm, has put about US$1 billion into the company as of June 2023, according to the start-up's prospectus. Tencent holds 13 per cent of QuantumPharm's shares after the IPO.

"The company that creates the greatest social value can create the greatest business value," Wen said.

But for now, QuantumPharm still needs to prove its commercial value.

The company's losses widened 19 per cent to 522 million yuan (US$72 million) last year, dwarfing its revenue of 174 million yuan, mostly due to its heavy research expenditure.

Shares of the company closed at HK$5.4 on Friday, down 6.9 per cent and wiping out most of its gains since Thursday amid a broader slip in the Hong Kong market.

QuantumPharm has "generated initial excitement and optimism among investors" in Hong Kong, but it has to prove to investors that it can make profits, said Dickie Wong, executive director at local brokerage Kingston Securities.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
View Comments(2)


Stanley Ho's youngest son Mario sets sights on China's first esports IPO in the US


South China Morning Post
Sat, Jun 15, 2024

Esports entrepreneur Mario Ho Yau-kwan, the youngest son of the late Macau casino tycoon Stanley Ho Hung-sun, is seeking to expand the international reach of his organisation NIP Group, as it pursues an initial public offering (IPO) in the United States.

NIP is a Cayman Islands-based holding company, with operations primarily conducted through two wholly-owned subsidiaries: Ninjas in Pyjamas Gaming in Sweden, which is engaged in esports teams operations; and Wuhan Xingjingweiwu Culture & Sports Development Co, which is involved in esports teams, talent management and event production operations. Its principal executive offices are located in Stockholm.


The company - in which co-founder, chairman and co-chief executive Ho holds a 14.2 per cent stake - has filed for an IPO on the Nasdaq Stock Exchange, according to a filing on Wednesday with the US Securities and Exchange Commission. Once its IPO is completed, NIP would become the first listed Chinese company in the esports industry.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

"Today, growing esports into a generational audience worldwide is what we are busy doing," Ho and co-founder and co-chief executive Hicham Chahine said in a letter, addressed to potential investors, attached to the group's prospectus. "Esports have the power to change the world, and we at NIP Group have a responsibility to continue to develop the industry in a sustainable way."


Mario Ho Yau-kwan, the co-founder, chairman and co-chief executive of NIP Group. Photo: Xiaomei Chen alt=Mario Ho Yau-kwan, the co-founder, chairman and co-chief executive of NIP Group. Photo: Xiaomei Chen>

While the group's US filing did not disclose the amount of money it intends to raise, a documents released in May by the China Securities Regulatory Commission showed that the company plans to issue no more than 26.9 million common shares on the Nasdaq.

NIP intends to use the net proceeds from its US listing for working capital, expanding the presence of its esports teams, marketing and growing their fan base, potential strategic acquisition and investment opportunities, according to its prospectus.

The group's listing plan reflects the growing popularity of esports around the world, as well as its vast commercial opportunities.

The market size of the global esports industry is expected to reach US$102.4 billion in 2027, up from US$57.9 billion in 2022, according to a Frost & Sullivan report cited in NIP's prospectus. NIP was described by the report as "a leading esports organisation" with the most expansive global footprint on the back of operations across Asia, Europe and South America.


Stockholm-based Ninjas in Pyjamas Gaming, which is engaged in esports teams operations, is a wholly owned subsidiary of NIP Group. Photo: Ninjas in Pyjamas alt=Stockholm-based Ninjas in Pyjamas Gaming, which is engaged in esports teams operations, is a wholly owned subsidiary of NIP Group. Photo: Ninjas in Pyjamas>

While it recorded a net revenue of US$83.7 million last year, up from US$65.8 million in 2022, NIP is still a loss-making enterprise. Net loss last year widened to US$13.3 million, compared with US$6.3 million in 2022. The company's prospectus said that loss reflected the "substantial investments we made to grow our business".

Also in 2023, revenue in China's esports sector fell 1.3 per cent year on year to 26.4 billion yuan (US$3.6 billion). That was mainly attributed to a decline in esports live-streaming revenue, which accounts for the largest proportion of the domestic market, according to a report by the Esports Working Committee, a semi-official agency set up to oversee the domestic industry.

In January 2023, NIP completed what it touted as "the largest merger in the history of the esports industry", according to its prospectus. The group combined Swedish esports brand Ninjas in Pyjamas with ESV5, one of the largest digital sports groups in China.


Hong Kong-born rapper and singer Jackson Wang. Photo: Jonathan Wong alt=Hong Kong-born rapper and singer Jackson Wang. Photo: Jonathan Wong>

Still, the challenge of making a profit in a nascent industry did not faze Hong Kong-born pop star Jackson Wang from investing in the company. Wang, who is best known as a member of K-pop band Got7, joined NIP as a partner and beneficial shareholder in 2020, according to the company's prospectus.

NIP's planned IPO has come at a time when some local governments on the mainland are ramping up support for esports, as part of broader efforts to develop and transform the country's digital economy.

Authorities in Shanghai and Shenzhen, for example, last year joined forces with the China Audio-Video and Digital Publishing Association, the country's semi-official video gaming trade body, to promote the development of esports.

In 2022, Hangzhou - capital of eastern Zhejiang province and one of China's hubs for technology start-ups - pledged 100 million yuan in annual funding to support video gaming and esports.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.

Google CEO Testifies at Ozy Trial, Denies $600 Million Offer


Avalon Pernell
Fri, Jun 14, 2024


(Bloomberg) -- Alphabet Inc. Chief Executive Officer Sundar Pichai took the witness stand at the fraud trial of Ozy Media Inc. co-founder Carlos Watson, testifying that the search giant never intended to buy the startup for any amount of money.

Watson isaccused of defrauding investors of tens of millions of dollars by lying about Ozy’s business success, including boasting that Alphabet’s Google had offered to buy the company for “hundreds of millions of dollars.”

The once high-flying media startup collapsed after the New York Times reported in 2021 that Chief Operating Officer Samir Rao impersonated a senior executive at Google’s YouTube unit to praise Ozy on a February 2021 call with Goldman Sachs Group Inc. bankers. Rao, who’s pleaded guilty, testified earlier that it was part of his and Watson’s scheme to fool investors into thinking Ozy was profitable.

Pichai on Friday told the jury in Brooklyn, New York, federal court that an acquisition of Ozy was never discussed but that Google did consider hiring Watson as head of its news programming. A $25 million investment in Ozy would have been part of that deal.

No Offer

“Mr. Watson was a critical part of Ozy Media, and we were considering making an investment in the company to make the transition easier,” Pichai testified.

“Did you ever offer to purchase Ozy Media for $600 million?” prosecutor Dylan Stern asked.

“No,” Pichai said.

In his opening statement at the trial, Stern said Watson used the fake Google offer to attract another Ozy investor following the incident with Goldman.

“When the Goldman deal fell through, Watson found another victim and lured them into investing $20 million into Ozy by telling them that the CEO of Google himself had offered to purchase Ozy for hundreds of millions of dollars,” Stern said. “That was a lie. But Watson did not let the truth stand in his way.”

Though Watson allegedly claimed to have a far-reaching relationship with the Google boss, Pichai said they only spoke twice. The first was a conversation of “just a few minutes” at a conference, while the second was Watson’s job interview on Feb. 25, 2021, weeks after the Goldman call.

Watson didn’t get the job.

‘Most Disturbing’

Also testifying Friday was Hillel Moerman, one of two Goldman bankers who were on the Feb. 2, 2021, call when Rao impersonated YouTube executive Alex Piper. Moerman told jurors it was “one of the most disturbing calls I’ve been on in my career.”

Moerman described it as “a surreal experience. The person spoke in an unnaturally deep voice.”

Goldman was considering a $35 million investment in Ozy and had requested the call after Watson claimed YouTube was one of Ozy’s “most important” clients. Rao testified he’d used a voice-altering app to conceal his identity and that Watson, who was seated nearby as he spoke to the bankers, coached him on what to say.

Another Goldman banker, Allison Berardo, testified Thursday that what she and Moerman heard on the call “did not sound like a human voice.”

“We were both in a state of shock,” Moerman said. “Something was off.”

Shortly after the call, the bankers canceled plans for the investment in Ozy.

Jurors also heard Friday from Ozy’s chief of staff, Suzee Han, who has pleaded guilty and is cooperating with prosecutors.

“I lied about Ozy’s past performance and historical financials,” Han said. “We, and I mean Carlos, lied about how the company was doing at that time, so the company’s current performance. We lied about how the company was going to do.”

Bloomberg Businessweek