Happy Pesta Kaamatan & Hari Gawai 2026

Happy Pesta Kaamatan & Hari Gawai!

FYI, Pesta Kaamatan (Sabah) and Hari Gawai (Sarawak) are both indigenous harvest festivals that mark the end of the rice harvesting season. And both share deep roots in agricultural thanksgiving, communal unity, and the preservation of rich cultural heritage of Sabah and Sarawak. 

[Note: Pesta Kaamatan falls on May 30th and 31st annually, while Hari Gawai takes place on June 1st and 2nd every year].

Berjaya Food Berhad posted another loss in the recently-ended quarter as costs and expenses continued to outsize the marginal revenue growth. 

Net loss at the franchisee of the Starbucks coffee chain was RM14.32 million for the three months ended March 31, 2026 (3QFY2026), marking their 10th consecutive quarter in the red. 

Still, the loss was smaller than RM37.19 million in 3QFY2025 thanks to cost control and store closures. 

Revenue for the quarter rose 4.9% year-on-year to RM119.14 million, largely driven by their overseas operations.

And of course, Starbucks account for the biggest chunk of Berjaya Food's business, contributing about 80% of group revenue. Therefore, shifts in the coffee chain's performance dictate the financial health of the entire group.

The Entrepreneur Who Tries To Convince People Not To Become Entrepreneurs

Mike Repole, the billionaire entrepreneur who co-founded and sold beverage giants Glaceau and BodyArmor to Coca-Cola for a combined $9.7 billion, has an unexpected message for aspiring business owners: DON'T DO IT. 

In an interview with The School of Hard Knocks, a popular social-media channel known for interviewing wealthy entrepreneurs, Repole shared his contrarian view on entrepreneurship, emphasizing the brutal realities that most success stories gloss over. 

“I spend more time talking people out of being an entrepreneur”, Repole (left) said. “The first five years for an entrepreneur, I call the survival years. Every single day, you could go bankrupt”. 

Repole’s cautionary advice carries significant weight given his impressive business track record. 

The 56-year-old American first made his fortune when he co-founded Glaceau with J Darius Bikoff in 1999. The company, which produced Smartwater and Vitaminwater, grew from $1 million in first-year sales to over $1 billion in revenue by 2007, when Coca-Cola acquired it for $4.1 billion. 

Following that success, Repole co-founded BodyArmor in 2011. The sports drink company gained significant attention a few years later in 2014, when NBA legend Kobe Bryant invested $5 million for a 10% stake, becoming the brand’s creative director. In November 2021, Coca-Cola purchased the remaining 85% of BodyArmor for $5.6 billion, making them the beverage giant’s largest-ever brand acquisition. 

Forbes currently estimates Repole’s net worth at approximately $1.6 billion, largely stemming from these two successful exits. 

Between the ventures, he also served as chairperson of snack company Pirate’s Booty, helping grow the brand by 300% before they sold to B&G Foods for $195 million in 2013. 

Despite his multi-billion-dollar track record, Repole emphasized in the interview that entrepreneurial success is far from guaranteed. 

“There were days that I didn’t think we could make it”, he said, adding that he “failed” multiple times throughout his journey. 

The billionaire’s advice reflects a growing trend among successful entrepreneurs who are increasingly candid about the challenges of building businesses. 

Unlike the typical success narratives that dominate social media, Repole’s message acknowledges the statistical reality that most startups – over two-thirds of them – fail, and that even successful entrepreneurs face constant uncertainty. 

True to form for successful entrepreneurs, Repole embraces what others might see as character flaws. 

When asked if he’s “a little crazy” like other billionaires, Repole responded: “I started crazy”, adding, “crazy people change the world”.

700 Engineers Pretend To Be AI

London-based Builder.ai, one of UK’s best-funded technology start-ups and once valued at $1.5 billion, backed by major investors including Microsoft, the Qatar Investment Authority, SoftBank’s DeepCore, and IFC, have declared bankruptcy and announced on LinkedIn that they would be "entering into insolvency proceedings". 

They were exposed in May this year for falsely marketing their app-building services as an AI-powered no-code platform that promises to make software creation "as easy as ordering pizza".  

Investigations revealed that the company’s much-touted AI assistant, “Natasha”, was largely a façade – most of the work was done manually by 700 engineers based in India. 

Additionally, Builder.ai, founded in 2016 by Sachin Dev Duggal (right), and previously known as Engineer.ai, engaged in financial misconduct through “round-tripping” with Indian social media firm, VerSe Innovation to inflate their revenue figures – a tactic that helped attract investment. 

Between 2021 and 2024, both companies had billed each other large amounts, even though no real services were provided. In fact, Builder.ai even claimed $220 million in 2024 sales, but their actual income was closer to $50 million. An independent audit exposed the discrepancy, prompting lender Viola Credit to seize $37 million from Builder.ai’s accounts. 

Left with only $5 million in restricted funds, the company’s operations across five countries – including India, the UK, and the US – came to a standstill. With regulatory issues freezing fresh capital, Builder.ai failed to pay staff, leading to nearly 1,000 layoffs. 

Also, the company reportedly owe $85 million to Amazon and $30 million to Microsoft in unpaid cloud services. A US federal probe is underway, with investigators seeking access to their financial and client data. 

Builder.ai’s downfall has reignited concerns around “AI washing” – branding basic tech services as AI to capitalise on investor excitement. Phil Brunkard of Info-Tech Research Group noted that many start-ups “scaled fast without robust technology or governance”, riding a wave of unchecked hype. 

With regulators now probing how AI firms market their products, the Builder.ai episode has become a cautionary tale. What was sold as an AI revolution turned out to be a conventional outsourcing firm cloaked in buzzwords. The result: employees out of work, millions in investor losses, and renewed demands for transparency and accountability in the AI start-up ecosystem.

The Crawl Back to Russia

Foreign businesses that left Russia three years ago are crawling back to the country, Kirill Dmitriev, who is Russian President Vladimir Putin’s investment envoy, has said. 

These companies pulled out of Russia, either due to supply problems caused by unprecedented sanctions imposed on Moscow by the West after the escalation of the Ukraine conflict in 2022, or the risk of facing secondary sanctions or even public relations pressures. 

"The trend is there, we see that some firms are already returning. It’s just that there is no publicity around it. The process, however, is certainly underway", Dmitriev told journalists on Thursday. 

According to the investment envoy, American businesses alone lost over $300 billion from leaving the Russian market. 

When asked about conditions for the return of Western businesses to Russia, the president’s economic aide noted that the government are actively engaged in “setting the rules” for the process. According to Dmitriev (right), it's not about putting up barriers, but giving priority to protecting domestic businesses. 

In recent months foreign companies that had left Russia have begun to register new trademarks in the country, signaling their potential return. Among them are McDonald's, Hyundai, Intel, Microsoft, LG, IKEA, Chanel, Rolex, and Louis Vuitton, according to data from the Russian patent office, Rospatent.

Yesterday, Arsenal fought back from 2-0 down to salvage a 2-2 draw against Premier League champions Liverpool at Anfield. 

Andy Robertson had floated in a cross and an unmarked Cody Gakpo six yards out was there at the near post to power a header into the net in the twentieth minute. Then, Mohamed Salah's wonderful pass found Dominik Szoboszlai, who squared for Luis Diaz to tap into an empty net just 87 seconds later.

After half-time, Arsenal came roaring back. On forty-six minutes, they glanced a header into the far corner. And in the seventieth minute, the Gunners scored again to level the score.

But with a trip to Brighton & Hove Albion and a home game against Crystal Palace with a trophy presentation to come, Arne Slot's side have two opportunities to make more memories before the season is through.

Japan Automakers Hit by Safety Scandal

Toyota Motor Corp. admitted Monday to improperly obtaining vehicle certifications for seven car models by carrying out safety tests in ways inconsistent with set government standards, in a renewed blow to the company following a recent spate of quality scandals at their group firms. 

 

Similar instances of misconduct were also found at Honda Motor Co., Mazda Motor Corp., Suzuki Motor Corp., and Yamaha Motor Co., according to the transport ministry. 

 

The ministry said they will conduct on-site inspections at the automakers' offices and consider taking administrative action. The latest issues were discovered after the ministry instructed 85 automakers and parts suppliers to investigate whether certifications were acquired properly following a series of scandals at Toyota group firms.

 

Three of the seven models are still in production – the Corolla Fielder, Corolla Axio, and Yaris Cross – while the rest have been discontinued, the company said. 

 

Toyota were instructed by the ministry to halt shipments of the affected models, as well as Mazda, which had irregularities in two car models, and Yamaha, which had irregularities in one class of motorcycle. The misconduct at Honda and Suzuki only affected discontinued models, the companies said.

 

Of the 85 firms surveyed, the Ministry of Land, Infrastructure, Transport and Tourism received responses from about 70 as of the end of May. No other misconduct was found beyond what was reported by the five companies, and the ministry expect the rest of the firms to turn in their reports soon, they said. 

 

Toyota insist their vehicles in question are all safe to drive, if you can believe them. It is a disturbing fact that the Toyota group have been hit with quality issues in recent years. 

 

Their small-car unit Daihatsu Motor Co. said in December that safety data had been manipulated for most of their cars, while in January, affiliate Toyota Industries Corp. revealed that engine data had been falsified for years. Not to mention that their truck-manufacturing subsidiary Hino Motors Ltd. had admitted to cheating on emission and fuel efficiency data in 2022.

 

Japanese quality is now very much suspect.

Boycotts That Impact Businesses

We continue to see boycotts of some American brands impact on their businesses.

 

On social media sites, lists are going around of brands accused of supporting Israel's Gaza offensive, which has killed at least 36,000 people, many of them women and children. The push is part of a larger Boycott, Divestment and Sanctions (BDS) campaign targeting Israel-friendly brands since 2005.

 

In Malaysia, three American brands in particular, Starbucks, McDonalds, and KFC have been boycotted and their businesses are significantly affected. 

 

 

 

 

 

Hong Leong Investment Bank research in a note on May 24, 2024, said Berjaya Food which own 100% of Starbucks Corp.'s Malaysian operations announced group revenue was down by -24 percent quarter-on-quarter and -48 percent year-on-year on the back of the Starbucks boycott that's been ongoing since October 2023. 

 

The group reported a net loss of RM29.7 million for the third quarter ended March 31, 2024. FYI, Starbucks Malaysia still make up a big chunk of BFood revenue for the quarter contributing about 90 percent.

 

In February, McDonald’s admitted that the Gaza war was part of the reason international sales rose by just 0.7 percent during the fourth quarter of 2023, down sharply from a 16.5 percent expansion during the same period the previous year. 

 

“The most pronounced impact that we’re seeing is in the Middle East and in Muslim countries like Indonesia and Malaysia”, McDonald’s CEO Chris Kempczinski said in an earnings call. “So long as this conflict, this war is going on […] we’re not expecting to see any significant improvement”.

 

The Malaysian franchise holder for KFC, QSR Brands (M) Holdings Bhd. were compelled to temporarily close more than 100 outlets, citing “challenging economic conditions”, as consumers in the Muslim-majority nation persist with a months-long boycott against brands perceived to have links with Israel. 

 

Methinks, it's time to go local! Support ZUS Coffee, Tealive, Ramly Burger, Marrybrown, 'Q' Bistro and Pelita nasi kandar, to name some of the well-established Malaysian brands.

 

Celtic beat Rangers 1-0 in a Scottish Cup final on Saturday with a 90th-minute winner from Adam Idah as the former completed the league and cup double. 

 

The match was by no means a classic and seemed destined for extra time when Idah, who joined the club on loan from Norwich City earlier this year, was in the right place at the right time to score and give Celtic a record-extending 42nd Scottish Cup triumph.

Zoom's Return-To-Office Policy

Zoom, the video communications company whose name became synonymous with remote work during Covid, have ordered their 7,400 hired hands back to the office. 

 

"We believe that a structured hybrid approach – meaning employees that live near an office, need to be on site two days a week to interact with their teams – is most effective for Zoom", a company spokesperson said, via The New York Times. 

 

Therefore, those living within 50 miles (80km) of a Zoom office should start showing up at the office at least twice a week. It is the latest push by a major tech firm to row back flexible working policies. 

 

Ironically, discussing the new return-to-office policy with employees last week took place over Zoom. 

 

And to think, Zoom at one point said their people would be able to work remotely indefinitely. 

 

Only about 1% of the company's workers had "regular office presences" in September 2022, while 75% lived remotely and the remainder had hybrid arrangements, the Wall Street Journal reported at the time. 

 

But growth has slowed sharply since the pandemic. Earlier this year, they announced they were cutting 15% of their staff and top executives would take major pay cuts. Even their shares are only worth about $68 apiece today, down from more than $500 at the peak in October 2020.

US Buys China's C919 Jumbo Jets

I was fortunate to come across this news, even though it is hardly reported in the mainstream press! Capital Aviation Services, a subsidiary of General Electric of the United States, have signed an order for twenty C919 large passenger aircraft from China – for a total value of $2.2 billion! 

 

Sure, it’s an itsy-bitsy sale but it is nonetheless, an encouraging start to penetrate the international market. 

 

The C919 is China's first domestically-built large passenger aircraft. Under development since 2008, the jumbo jet made its first test flight in May 2017 with six prototype airplanes operating in different regions across China. The plane completed its final test flights before commercial delivery in December 2022. 

 

FYI, the C919 targets the same market as the Airbus A320 and Boeing 737, the two best-selling commercial aircraft. And a January 13, 2023 report by CGTN said that over 1,200 planes are on COMAC's order books. Mostly from domestic airlines and/or leasing firms. 

 

This acquisition from the Americans made two weeks ago is a strong testament to the capability and caliber of the C919 and represents a vote of confidence in China’s aviation sector. 

 

I reckon the C919 is a worthy rival to both Airbus and Boeing – granted, it will take a period of time before COMAC conquer the world. I've no doubt they will.

 

 

 

 

 

 

 

 

 

 

 

The art-and-advertising collective MSCHF has brought a portmanteau to the next level by making Birkenstock-style sandals from deconstructed Hermès Birkin handbags. 

 

Except for some finishing details like golden buckles and stamped branding, the resulting "Birkinstocks" look much like traditional Birkenstocks. 

 

But, of course, these are no ordinary Birkenstocks, as they are handcrafted from luxury leather from bags that normally retail for tens of thousands of dollars. 

 

As an unofficial 2021 collaboration with Hermès, the bespoke sandals were priced between $34,000 and $76,000 per pair (!!). They were part of a limited release through MSCHF's app (Android, Apple) and, according to the Birkinstock website, are sold out.

Layoffs at Amazon

Amazon.com Inc are planning to lay off as many as 10,000 employees in corporate and technology jobs starting as soon as this week, The New York Times is reporting, citing people with knowledge of the matter. 

 

The job cuts will focus on the e-commerce giant’s devices unit, which house voice-assistant Alexa, as well as their retail division and human resources, according to the report on Monday, which also said the total number of layoffs remains fluid. 

 

The layoffs represent about three percent of their corporate staff, the Times reported. Amazon had recently said they would freeze hiring for their corporate workforce for the next few months. 

 

Amazon represent the latest US company to make deep cuts to their employee base to brace for a potential economic downturn. What makes it unusual is that the e-commerce firm typically values stability during the holiday season, the Times reported, a sign of pressure from a slowing global economy. 

 

It’s also a contrast from just a few months ago, when the company had been fighting to retain talent in a tight labor market and had more than doubled the cap for the cash compensation for their tech workers.

 

Last month, Amazon revealed that operating income decreased to $2.5 billion in Q3 2022 compared to $4.9 billion the same quarter last year, while net income dipped to $2.9 billion versus $3.2 billion during Q3 2021. When the company reported lower-than-expected revenue for the quarter ending September, they warned that sales in the last three months of the year – the biggest shopping season in North America because of the Halloween, Thanksgiving and Christmas holidays – would be low in the face of high inflation and receding customer demand.

 

And Amazon had spent billions doubling the size of their fulfillment network during the pandemic – a move that served them well initially, but which proved to be short sighted. They have to shut down or delay plans for over a dozen facilities as e-commerce sales this year grew slower than expected. 

 

Truly, tech broadly speaking is faring poorly in the current macroeconomic environment.

Mass Layoffs at Meta and Elsewhere

 

 

 

 

 

  

 

Rumored for weeks and coinciding with Twitter's own downsizing, Meta today announced they will let go of 13 percent of their workforce, or more than 11,000 employees, in one of the biggest layoffs this year as the Facebook parent battles soaring costs and a weak advertising market. 

 

The mass layoffs, first in Meta’s 18-year history, follow massive job cuts at other tech companies – not just Elon Musk-owned Twitter – but also at Microsoft, Chime, Intel, Lyft, Seagate, Snap Inc, Stripe and many others. In fact, as of late October, more than 52,000 workers in the US tech sector have been laid off in mass job cuts so far in 2022, according to a Crunchbase News tally. 

 

The pandemic-led boom that boosted tech companies and their valuations has turned into a bust this year. 

 

An Ebola update. Schools across Uganda will close two weeks before the scheduled end of term after 23 Ebola cases were confirmed among pupils, including eight children who died. 

 

Education Minister Janet Kataha Museveni (right) said on Tuesday that the cabinet had taken the decision to close preschools, primary schools and secondary schools on November 25 because densely packed classrooms were making students highly vulnerable to infection. [Note: Students in Uganda are currently in their third and final term of the calendar year]. 

 

On Saturday, the government extended a three-week lockdown on the neighboring districts of Mubende and Kassanda, which have been the center of the Ebola outbreak. The measures include a dusk-to-dawn curfew, a ban on personal travel, and the closure of markets, bars and churches. 

 

Since the outbreak was declared in Mubende on September 20, the disease has spread across the country, including to the capital, Kampala – but the president has said nationwide restrictions are not needed. 

 

According to government figures from Sunday, 135 people have been infected with Ebola and 53 have died.

FSG Are Ready to Sell Liverpool FC

Liverpool FC are up for sale. For the right price. 

Fenway Sports Group are ready to listen to offers of more than £3 billion, according to reports. They are now inviting interested parties to approach them with bids for the Merseyside club. They are weighing up offloading the club after 12 years of ownership because they think the time is ripe to not only recoup their investment but make a ton of money in the process. 

 

FSG paid £300 million to rescue the Reds from Tom Hicks and George Gillett Jr. And in May, Forbes had valued Liverpool at £3.6 billion. 

 

Of course, it cannot be denied that the club are in better shape from both sporting and commercial standpoints than they have been in decades. 

 

But make no mistake, FSG have always treated Liverpool as just an asset that is monetizable. And so, they will let the club go as easy as they arrived at the decision to buy Liverpool FC in the first place. It’s all about maximizing profits from a damn good investment that they made in 2010. 

 

And whether we care to admit or not, they have no love for Liverpool. They are purely businesspeople who are fueled by greed. 

 

In 2016, there was an attempt to increase the maximum ticket price to £77 in the new Main Stand – a decision which was reversed due to backlash from supporters. 

 

In 2019, the Intellectual Property Office rejected proposals from the club to trademark the word ‘Liverpool’, a move which would have left a damaging impact on small independent businesses across the city. 

 

And in April last year, John W Henry signed up to be a co-conspirator in the breakaway European Super League – and then forced to apologize to fans after the deeply-unpopular plans collapsed within 48 hours. 

 

Indeed, FSG do not have the Anfield faithful's best interests at heart – their own pockets take priority. 

 

The timing of the news breaking – it was made on Monday – appeared unfortunate for Liverpool, coming as another blow following a difficult start to the season. Yet for FSG, it may make plenty of sense to cash in on their asset at this point. 

 

To them, Liverpool are nothing more than a cash cow. And rather than risk dropping out of the Champions League and failing to live up to the standards set in recent trophy-laden campaigns, the company could cash in and leave the next owner to pick up the pieces. Much has been made of Liverpool's ageing squad, which will need expensive and substantial regeneration before long. 

 

After all, the Americans have made their money and they’ll make even more, when they land themselves a buyer. 

 

For us fans, we can only hope for a smooth transition and future investment if push comes to shove and a buyer emerges.

The Bird is Freed

It’s for real this time. After months of legal drama, bad memes and will-they-or-won’t-they-chaos to put your favorite rom-com to shame, Elon Musk (right) has closed his $44 billion acquisition of Twitter. 

 

Musk sealed the deal Thursday, taking Twitter private and ousting a handful of top executives. 

 

The likes of chief executive Parag Agrawal, as well as the company’s chief financial officer Ned Segal, General Counsel Sean Edgett and Head of Legal Policy, Trust and Safety Vijaya Gadde, according to reports from The New York Times, CNBC, The Wall Street Journal and The Washington Post. 

 

[FYI, leadership bloodletting is not new in Twitter. Within a few weeks of Agrawal taking over for Jack Dorsey, two executives “stepped down”: Twitter’s Chief Design Officer Dantley Davis and Head of Engineering Michael Montano. Thereafter, Twitter lost two more leaders, Chief Information Security Officer Rinki Sethi, and Head of Security Peiter Zatko (aka Mudge). In May, Twitter GM of Consumer Kayvon Beykpour announced he would be leaving the company after Agrawal asked him to step down. And at the same time, Bruce Falck, Twitter’s revenue product lead, also left the company]. 

 

Truly, the Twitter purchase had been long delayed. 

 

But now, the bird is freed! 

 

And it signals the beginning of a new chapter that raises a million questions about what the platform is actually worth, what it’s for and what, exactly, Musk plans to do with it. 

 

Only time will tell.

US Strangles Advanced Chip Exports to China

US chipmaking equipment supplier Lam Research on Wednesday warned of a $2 billion to $2.5 billion revenue hit in 2023 from Washington's latest export controls on advanced semiconductors and equipment to China, which covers about 30 percent of the US company's sales, Reuters reported.

Lam Research represent the latest chip firm to forecast a sales loss due to the US' chip ban. Last week, Applied Materials estimated a $250 million to $550 million drop in net sales in the quarter ending October 30, with a further impact expected in the coming months. 

The latest round of US tech crackdown on China is certainly going to affect sales and revenues and even impact the global chip supply chain. 

And that is not all. According to Prakash Nanda writing in The EurAsian Times on October 16, the clampdown bars “US persons, including US citizens and permanent residents", from supporting the "development or production" of advanced chips at Chinese factories without a license. 

In other words, this latest US export controls have, for the first time, extended to people and not only organizations or companies. 

In fact, Wall Street Journal has claimed that US chip equipment suppliers have withdrawn dozens of employees with essential expertise and paused business activities at Yangtze Memory Technologies Co., China’s leading memory chip maker.   

The US will do what it wants to do. It is no secret that as it repeatedly tightens curbs on high-tech exports to China, especially in the semiconductor sector, in an apparent attempt to contain China's independent development and breakthroughs in science and technology, it is US chip companies that will suffer. 

Even before the latest US crackdown moves, chip firms are already in the doldrums. Of the 15 largest chip companies reporting for 3Q22, ten are expected to report decelerations in revenue growth compared with 2Q22, according to a Wall Street Journal report last week. 

Their plight worsened after the Biden administration unveiled "the most aggressive" export control rules earlier this month, aiming to curb sales of advanced semiconductors and equipment to China. 

China is the world's largest market for chips, and it imported about $400 billion worth of semiconductors in 2021, accounting for nearly 60 percent of the global chip market. US high-tech companies are the biggest beneficiaries of the massive Chinese demand, which is their biggest source of profits. It is unthinkable for any chipmaker to lose such a large market. It would greatly affect their spending plans and in turn cause an indirect loss of sales for semiconductor equipment suppliers like Lam Research and Applied Materials. 

With the global semiconductor sector facing a plunge in sales of personal computers and smartphones amid recession worries, Washington's latest chip ban has seriously destabilized the global industrial chain. The policy, which appears to completely ignore the impact on the wider chip industry, seems more like the Biden administration flexing its muscles and playing tough with China in the run-up to the US mid-term elections. It was a political decision and a geopolitical gambit that is sure to backfire on the US itself. 

Far from ensuring the country’s dominance in the chip sector, the export controls could hurt US tech companies the most in terms of sales, and curtail their research and development investment. 

From China's perspective, it has a huge market, and it is doubtful whether the US can use unilateral executive orders to prevent non-US chip companies from conducting normal cooperation and trade with China. If non-US companies don't join, unilateral US bans will actually undercut US companies' competitiveness by depriving them of the Chinese market. 

US restrictions will only accelerate the development of China's chip sector, because the Chinese market won't wait for the US to come to its senses. And it’s only a matter of time, the Chinese chip sector catches up and becomes self-reliant.

Elon Musk Changes Mind on Twitter Again

The Tesla founder and CEO changes his mind again! 

With his default trial scheduled less than two weeks away, Elon Musk (right) reportedly submitted a letter to Twitter on Monday stating he intends to go through with his initial offer to purchase Twitter for the previously agreed-upon price of $54.20 per share, according to a source familiar with the negotiations. 

Liverpool got an easy ride in the Champions League Group A match against Rangers yesterday. They managed to earn a 2-0 victory that keeps them on course for a place in the knockout stage. 

Trent Alexander-Arnold put Liverpool ahead after only seven minutes when he clipped a perfect 25-yard free-kick into the top corner. And Luis Diaz was fouled – and Mohamed Salah scored from the penalty spot in the fifty-third minute. 

Interestingly, the Reds’ line up included four attacking players, with Diaz, Salah, Darwin Nunez and Diogo Jota all starting. Offensively they created multiple chances but they could only fire blanks. 

The fact that they stayed in a 4-2-3-1 even when substitutes were made could suggest that they will again line up that way in the next game. We shall see. 

The real litmus test for Liverpool will now come in the form of Premier League leaders Arsenal on Sunday, before a trip to Ibrox next week and then the visit of Manchester City. If the Reds can pick up positive results in all three of those games, it will suggest they have well and truly turned a corner. I hope so! I really hope so!

Boeing To Pay $200M To Settle SEC’s Probe

Boeing are to pay out $200m over charges that they misled investors about two fatal 737 Max crashes. 

The US stock market regulator said on Thursday, the aviation giant and their former chief executive Dennis Muilenburg made false statements about safety issues. Boeing "put profits over people" in an effort to rehabilitate their image, according to the Securities and Exchange Commission. 

The 737 Max was grounded for 20 months after two crashes in 2018-2019 killed 346 people. 

As part of the settlement, Muilenburg will also pay a penalty of $1m. 

"In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair, and truthful disclosures to the markets", SEC chairman Gary Gensler said in a statement. He added that Boeing and Muilenburg "failed in this most basic obligation". 

Still, the said settlement is largely symbolic. The 737 Max scandal has already cost Boeing tens of billions – another $200m will barely register. 

But it does give the SEC the chance to call out Boeing and their ex-head honcho (right) for making assurances about the plane's safety, when they already knew it had a serious problem – thereby intentionally misleading investors. 

Anyway, it won’t cause Boeing any meaningful harm. Their corporate reputation had already been severely damaged by the affair. As for Muilenberg, the financial consequences of the settlement won't be painful either. He received some $60m in compensation and benefits when he left the company.

Merdeka 2022

Selamat Menyambut Hari Merdeka 2022!

Good news for Scotland! The first-ever direct sea shipping container route has been opened between China and Scotland. 

The Allseas Pioneer which arrived from China on Saturday was laden with items including textiles, furniture and toys for sale in Scotland. And on its return trip, there would be more than a million bottles of Scotch whisky. 

Three sailings in each direction are due to take place each month, calling at China’s Ningbo and Shenzhen before arriving in Greenock in Scotland via its “sister” container terminal at Liverpool. 

The new freight route between the Chinese ports and Greenock Ocean Terminal is a partnership between KC Liner Agencies, DKT Allseas and China Xpress. 

The direct sailings will almost halve transit times, compared to feeder services via continental Europe or other southern UK ports. The move was in response to growing global supply chain pressures. 

Hailed as a game changer for Scotland, this trading link to China is anticipated to be a massive boost for Scottish businesses.

Twitter Queried by US Regulator

Twitter faced scrutiny from the US Securities and Exchange Commission over how the microblogging and social networking service calculates the number of spam accounts, a topic at the heart of the firm’s legal battle with Elon Musk. 

The US regulator's letter sent mid-June, but made public only Wednesday, asked Twitter to disclose their methodology as well as the “underlying judgments and assumptions” involved. 

That letter surfaced just a day after news broke that Peiter "Mudge" Zatko (right), an “ethical hacker” who once worked with Google, Stripe, and the US Defense Department, and Twitter’s ex-head of cybersecurity-turned-whistleblower had told US authorities the company misled users and regulators about “extreme, egregious” security gaps. 

His complaint warned of obsolete servers, software vulnerable to computer attacks and executives seeking to hide the number of hacking attempts, both from US authorities and from the company’s board of directors. In particular, Zatko accused Twitter and their CEO Parag Agrawal of issuing untrue statements on account numbers because “if accurate measurements ever became public, it would harm the image and valuation of the company”. 

Twitter’s official statement… is that Zatko’s report is a “false narrative” designed to damage the company. 

But if Zatko’s claims are found to be credible, it could not only help Musk – who claims he abandoned his $44B Twitter purchase after they failed to provide info about fake accounts – but also mean big FTC fines. Both parties are scheduled to meet in court on October 17.

Stars Coffee, Anyone?

The first of 130 former Starbucks coffee shops resumed business in Russia under the name Stars Coffee when it opened its doors in Moscow on Thursday – the latest high-profile rebranding of a major western chain after an unprecedented corporate exodus from Russia. 

Starbucks had suspended their businesses in Russia in March, and pulled out of the country in May. Thereafter, popular rap artist Timati and restaurateur Anton Pinskiy partnered to acquire the rights to the chain. 

The name's almost the same. And the logo could be the separated-at-birth twin of the Starbucks mermaid, with flowing hair, a small enigmatic smile and a star atop her head – though instead of a Starbucks crown she wears a Russian headdress called a kokoshnik. 

The menu, judging by the company app introduced a day before the store's formal opening Friday, would look familiar to any Starbucks customer. 

The rebranding and reopening of former Starbucks coffee shops in Russia is similar to the reopening and rebranding of McDonald's restaurants as Vkusno-i tochka (as reported in my blog on June 14, 2022).

Meanwhile, the rebranded McDonald's, which can't use 'Happy Meal', the children's meal that comes with a toy, are trademarking 'Kids Combo' as a replacement, as reported by Russian media group, RBC. 

It’s the same for other products, too. Therefore, applications were made for 'Beef Hit' and 'Big Hit' to replace the ‘Big Mac’; 'TochkaCola' to replace ‘Coke’; and 'Ice de Luxe' to replace ‘McFlurry’.

And according to Russian business daily newspaper Vedomosti, Vkusno-i tochka's CEO, Oleg Paroev, has said all of the closed McDonald’s restaurants will reopen in September.

Elon Musk Jilts Twitter

Elon Musk had struck a deal on April 25, 2022 to buy Twitter for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, the influential social network frequented by world leaders, celebrities and cultural trendsetters will become a privately held company. 

But on Friday, he sent a letter to Twitter saying he was pulling out of the controversial deal. He had accused the company of "misleading" statements about the number of fake accounts. 

This jilt is, of course, hard for Twitter to take and a court battle looms. 

The consensus is that Twitter are well-positioned to win because according to Ann Lipton, a professor of law at Tulane University who specialises in corporate litigation, such merger agreements are "designed to prevent buyers from getting cold feet and deciding they want to walk away". 

Musk’s lawyers also point to recent Twitter employee layoffs and hiring freezes, which they say are contrary to the company's obligation to continue operating normally. 

Those arguments may be valid, but they do not merit pulling out of the deal, says Lipton, dismissing them as "nitpicky". 

"It's not enough, unless he can show that the representations (about fake accounts) are not just false, but also that they dramatically call the fundamentals of the deal into question", she explains. "Looks very much like Musk is legally wrong". 

The entire saga has left observers baffled by what Wedbush analyst Dan Ives described as "one of the craziest business stories ever". 

As he told AFP: "I think it starts off as a circus show and it's ending as a circus show"!

Not All US-EU Companies Cease Business in Russia

Almost 250 international companies continue to operate in Russia, including more than 100 EU enterprises, according to a list compiled by Yale’s Chief Executive Leadership Institute. 

Since the launch of the Russian special military operation in Ukraine on February 24, 2022, the institute has been tracking the responses of more than 1,200 companies. 

“Over 1,000 companies have publicly announced they are voluntarily curtailing operations in Russia to some degree beyond the bare minimum legally required by international sanctions – but some companies have continued to operate in Russia undeterred”, it said. 

Among 247 international companies that continue their activity in Russia, 116 originate from EU countries, including prominent brands such as Benetton, Diesel, Giorgio Armani, Lacoste, and Romania’s Raiffeisen Bank, to name a few. Some American names, such as Hard Rock Café, Tom Ford, and TGI Fridays, also feature on the list of companies “that are just continuing business-as-usual in Russia”. 

The Russian intervention saw the collective West imposing hard-hitting sanctions on many sectors of the Russian economy. [My post “Sanctions Against Russia Have Been Mostly Unsuccessful” published June 09 refers]. And since the end of February, hundreds of foreign companies had announced the cessation of their operations in Russia. 

In retaliation, Russia imposed its own counter-sanctions against ‘unfriendly’ countries and adopting measures against their companies. 

At the same time, Kremlin spokesperson Dmitry Peskov said earlier this week that Russia will “take good care of those foreign businessmen who stay” by offering them favorable conditions. 

President Vladimir Putin had previously stated that Russia will welcome back businesses that want to return, but warned that some companies may regret the decision to leave. Peskov volleyed the comment that for many businesses that left the country, it will be difficult to come back, because “the vacuum” created by a company that leaves “is instantly filled by someone else”.

Anyway, as I had reiterated previously, sanctions against Russia have mostly failed. The West are just shooting themselves in the foot!

* Note: Cartoons have been edited