NewzIntel.com

Category: Pandemic

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Discrimination against Women Praise Belarus for Progress in Preventing Trafficking, Ask about Criminalisation of HIV Transmission and Reported Repression of Civil Society

    Source: United Nations – Geneva

    The Committee on the Elimination of Discrimination against Women today concluded its consideration of the ninth periodic report of Belarus, with Committee Experts praising the State’s progress in preventing trafficking, and raising questions about the criminalisation of HIV transmission and reports of repression of civil society.

    Elgun Safarov, Committee Expert and Rapporteur for Belarus, and other Experts commended Belarus’ awareness-raising projects on the prevention of trafficking and women’s empowerment.

    One Committee Expert noted that Belarus had a high number of criminal cases related to HIV.  Transmission of HIV was penalised with imprisonment of up to five years. Was the State party rethinking this law?

    Mr. Safrov said many very important non-governmental organizations had been closed recently.  What were the reasons for these closures?  There were reports of repression of women journalists and activists.

    Several other Experts expressed concern about reports that women who expressed dissent were punished and detained.  What plans were in place to protect women activists from gender-based violence and State repression?  Why were civil society organizations engaged in the protection of human rights dissolved by the State?

    Introducing the report, Larysa Belskaya, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, said Belarus strived to fully ensure equal rights and opportunities for women in all spheres. In an extremely difficult geopolitical situation, Belarus progressively built a society where every person could have decent living conditions and benefit society.

    The delegation said Belarus had taken measures to eliminate trafficking in persons and to identify and rehabilitate victims.  In 2024, authorities identified 1,500 cases of suspected trafficking and identified several victims, including minors.  The State worked with civil society to build the capacity of law enforcement staff related to trafficking; 90 training sessions had been held in 2024.

    Concerning the transmission of HIV, the delegation said that in 2023, nine women had been penalised for transmitting HIV and 12 women were penalised in 2022.  The State party was continuing to reduce the stringency of HIV legislation.  A draft law had been developed to decriminalise unintentional transmission of HIV.  Penalties for the deliberate transmission of HIV would remain.

    The delegation said the Committee’s assessments related to repression were not appropriate.  The protests that took place in Belarus over the reporting period were in many cases not peaceful.  Certain extremist actions were taken by media workers.  The Government was working to increase understanding of the situation.

    Civil society in Belarus was active, the delegation added.  The State party had over 1,500 civil society organizations, including women’s organizations.  In 2020, there was an attempt to carry out a coup d’etat by several non-governmental organizations engaged in anti-Government activities.  A court decision held these organizations and their members responsible for violating the law.  This should not be considered repression of civil society.  In 2023, a new law on the activities of civil society was adopted that required organizations to re-register.  Many non-governmental organizations had not completed the new registration procedure and had been shut down.  Citizens were entitled to renew the activities of previous non-governmental organizations.

    In closing remarks, Ms. Belskaya said Belarus had achieved much in terms of gender equality and empowering women.  The discussion helped the State party to identify the remaining issues to be addressed. The Committee’s recommendations would be carefully considered by the National Council on Gender Equality and used to construct the next national action plan on gender equality

    In her closing remarks, Nahla Haidar, Committee Chair, commended the State party for its efforts and encouraged it to implement the Committee’s recommendations for the benefit of all women and girls in Belarus.

    The delegation of Belarus consisted of representatives from the Ministry of Labour and Social Protection; Ministry of Health; and the Permanent Mission of Belarus to the United Nations Office at Geneva.

    The Committee will issue the concluding observations on the report of Belarus at the end of its ninetieth session on 21 February.  All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet at 10 a.m. on Friday, 7 February to consider the eighth periodic report of Luxembourg (CEDAW/C/LUX/8).

    Report

    The Committee has before it the ninth periodic report of Belarus (CEDAW/C/BLR/9).

    Presentation of Report

    LARYSA BELSKAYA, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, said Belarus was committed to the principles of the Convention and strived to fully ensure equal rights and opportunities for women and men in all spheres.  Its Gender Gap Index score had almost halved from 0.152 in 2014 to 0.096 in 2024, placing the country 29th out of 166 countries.  In an extremely difficult geopolitical situation, Belarus preserved its State, peace and tranquillity, and progressively built a society of equal opportunities, where every person could have decent living conditions and benefit society.

    Over the years, the Government had made serious efforts to implement the Convention and had achieved concrete results for the advancement of women.  Gender policy was coordinated by the National Council on Gender Policy.  Every five years, national action plans on gender equality were adopted.  This year, the sixth national action plan (2021-2025), the goals and objectives of which were linked to the Sustainable Development Goals, was being implemented.  Work was also progressively being carried out to introduce mechanisms for gender analysis of legislation and gender budgeting in the development of draft State plans and programmes. 

    The National Statistical Committee had developed thematic information systems that made it possible to analyse the situation in the field of gender equality.  The “Gender Statistics Web Portal” contained 178 gender statistics.  In 2020, the Labour Code introduced a norm establishing paternity leave of up to 14 days within six months after the birth of the child.  The Government was also working to calculate the value of unpaid domestic services not included in gross domestic product.  The final data would be published in June 2025.

    Belarussian women were actively promoted to managerial positions.  In the National Assembly, the share of women in 2023 was 36 per cent. At the same time, in the House of Representatives, their share was 40.6 per cent.  Women accounted for 47 per cent of local self-government bodies. Among senior civil servants, the share of women in 2023 was 54.6 per cent; among judges, 64.4 per cent.

    Labour legislation provided for parents with family responsibilities an additional day off from work per month or reduced working days, flexible forms of employment, and remote employment.  The country guaranteed access for all citizens to health care, education, social services, culture and sports.  At the birth of a child, the State provided material support to all families and the payment of insurance premiums.  Benefits for pregnancy, childbirth and temporary disability had been increased, as had social support for parents raising a child with disabilities.  Since 2015, the State also provided a one-time non-cash provision equalling 10,000 United States dollars at the birth or adoption of third or subsequent children.

    The Belarussian Women’s Union, which united 162,000 women, worked to raise the status of women in society and their role in all spheres of life, and there were 15 more women’s organizations in Belarus.  In total, as of October 2024, there were 1,466 public associations; 18 new public associations were registered in 2024. 

    In Belarus, the literacy rate of the population aged 15 and over was almost 100 per cent. General secondary education was compulsory for all.  The percentage of women in higher education was about 53 per cent.  Almost 92 per cent of women aged 16-72 used the Internet.

    For several years, there had been a decrease in the female working age unemployment rate, from 3.1 per cent in 2019 to 2.7 per cent in 2023.  This figure was lower than the male unemployment rate, which was 4.1 per cent in 2023.  More than 42 per cent of employed women had completed higher education and 70 per cent of civil servants were women.  The share of women among researchers in Belarus was 39.2 per cent.  In 2024, for the first time, a female cosmonaut from Belarus, Marina Vasilevskaya, flew to the International Space Station.  Belarus was also actively developing women’s entrepreneurship; the representation of women in this area was 36.4 per cent.  In 2023, the first Forum of Women Entrepreneurs was held, with the active participation of the Belarussian Women’s Union.

    Every woman, regardless of income, had the opportunity to receive any type of medical care free of charge.  Unprecedented measures were being taken in the country to protect motherhood and childhood, to accompany women during pregnancy, and to carry out annual medical examinations.  Belarus was among the 25 countries with the highest rating in terms of access to sexual and reproductive health, information and education.  The proportion of women using various types of contraception increased from 39.9 per cent in 2010 to 53.2 per cent in 2021. The number of abortions per 1,000 women of childbearing age over the past 10 years had decreased by almost two times to 6.2 per cent in 2023.  Since 2011, no cases of illegal abortions had been registered in the country.

    Specific measures were being taken in Belarus to prevent domestic violence.  In 2022, protective measures for victims and preventive measures against violators were strengthened.  Every year, about 15,000 victims turned to regional social service centres for help.  A network of “crisis” rooms was being developed, with 134 rooms having been established as of 2024.  There were no restrictions on the time in which people could live in these rooms; in the first half of 2024, 81 women lived in them.  Public and international organizations were involved in aiding women victims of domestic violence.

    From today’s dialogue, Belarus expected practical and implementable recommendations that would allow it to implement high international standards in State policy to ensure equal rights and expand opportunities for women.

    Questions by a Committee Expert 

    ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, said that Belarus had developed family and women policy, implemented many awareness-raising projects on the prevention of trafficking and women’s empowerment, organised several international conferences on women in entrepreneurship and science, and adopted several legislative acts on women rights protection during the reporting period. He expressed appreciation for the State party’s activities for the harmonisation of legislation and measures for the adoption of international standards. 

    However, the Committee had witnessed multiple violations of women’s rights.  The State party did not have comprehensive anti-discrimination legislation that specifically prohibited discrimination against women, including direct and indirect discrimination, and also had no specific, stand-alone legislation on gender equality, or a law explicitly focused on ending all forms of gender-based violence, including domestic violence.  Sexual harassment in the workplace remained unaddressed in legislation, and laws prohibited women’s participation in certain jobs. 

    There were many problems related to access to justice for women.  There needed to be effective remedies for victims of discrimination.  There was no special body for deciding cases related to discrimination against women.  HIV transmission was criminalised.  Why had some women lawyers’ licenses been terminated?

    What measures were in place to incorporate a definition of equality between women and men in the Constitution and the Criminal Code?  What mechanisms were in place to protect against discrimination?  Had the Convention been translated into Belarussian? Were there any court cases that had referenced the Convention?  Why had closed court sessions been held to try women who had participated in peaceful demonstrations?  How were lawyers appointed?  Did the State party keep data on criminal cases related to gender?

    Responses by the Delegation

    The delegation said Belarus did not have a comprehensive definition of discrimination against women in its legislation, but principles of equality were included in the Constitution and various laws.  The Government had considered developing a single act on discrimination, but had found that existing legislation sufficiently banned discrimination. Legal amendments were introduced in 2022 to provide women and men with equal opportunities in employment, training and education.  The rights of victims of sexual discrimination needed to be restored under law. All complaints of discrimination, including from women and foreign citizens, needed to be reviewed by relevant State authorities within a tight deadline.  Discriminatory norms were not permitted in legislation.  Follow-up on implementation of gender legislation was carried out by a dedicated group of the National Council on Gender Policy.

    The Bar Association carried out activities to inform citizens about how they could access legal aid.  Women who lodged a complaint related to workplace discrimination or the deprivation of parental rights, as well as pregnant women, vulnerable families and victims of trafficking, received legal aid free of charge. Women in prisons could receive legal aid when they submitted complaints.  Women could choose their own lawyer, or were appointed one if they could not afford one.

    Belarus had two national languages: Belarussian and Russian.  Russian was more represented in State correspondence, but this did not hinder access to information on legislation for the population.  The Convention was part of the national legal system and had been referenced in court proceedings.  The Criminal Code recognised undermining of women’s bodily integrity as an offence.  There were around 50 cases related to bodily harm in the first half of 2024, and 44 cases of other sexual offences.

    Questions by Committee Experts 

    A Committee Expert commended the Government on efforts to align policies with the Sustainable Development Goals. However, the Committee was concerned by the absence of an independent national human rights institution, and by the exclusion of civil society organizations that worked to safeguard women’s rights.  Would the State party consider establishing a national human rights institution in line with the Paris Principles?  Which Government agency was responsible for protecting women’s rights.

    The Expert welcomed the policy to promote gender empowerment and gender sensitive budgeting.  How would the national action plan on gender equality be monitored?  How would the State party ensure the meaningful participation of civil society in this regard?

    The Committee was deeply concerned by the increasingly shrinking civic space.  Many women human rights defenders faced detention and restriction of activities. What plans were in place to protect women activists from gender-based violence and State repression?  Why were civil society organizations that were engaged in the protection of human rights dissolved by the State?

    Belarus had not adopted a national action plan on women, peace and security.  Would it consider developing such a plan to mainstream gender perspectives into peacebuilding efforts?

    One Committee Expert said the share of women in regional leadership positions was low and there were very few female ambassadors.  Women who peacefully expressed diverse political opinions were at a high risk of being treated as extremists.  Had the State party implemented temporary special measures to ensure gender equality in recent years?  Were there measures to increase the representation of women in leadership positions, as well as in employment and education?  What measures were in place to support vulnerable women and to mitigate the impact of the COVID-19 pandemic on gender equality?

    Responses by the Delegation

    The delegation said Belarus had State and public institutions protecting human rights, including the national councils on gender equality, children and disability, and the Environmental Committee, among others.  The State had conducted consultations with civil society, international organizations and State agencies in 2017 related to the establishment of a national human rights institution.  Belarus believed that creating a national human rights institution was not a priority as its existing bodies were working efficiently to protect human rights. This issue could be examined in more detail at a later stage.

    The National Council on Gender Equality coordinated and monitored the implementation of national action plans on gender equality.  From 2023 to 2024, a gender assessment methodology for legislation was adopted. Based on assessments, problems had been identified and measures were being planned to address them in the next national action plan.

    Belarus was not a party to any conflict currently, so it had not implemented special measures related to women, peace and security.  However, the Government had taken measures to protect Ukrainian refugees.  Over 200,000 people had arrived from Ukraine in the past three years, more than half of whom were women.  Belarus offered refugees temporary protection and the choice of becoming Belarussian citizens.

    Civil society in Belarus was active. The State party had over 1,500 civil society organizations, as well as professional unions and women’s organizations. The Belarussian Women’s Union actively engaged with State authorities.  There were also specialised civil society organizations supporting vulnerable women.  The process for registering a civil society organization was simple and transparent; the State did not interfere in the registration of such organizations and provided regular support to existing organizations.  Under the law on civil society organizations, such organizations could be closed based on court decisions finding that the organization had carried out unlawful propaganda or violated State legislation. 

    Citizens active in social activities had the right to be defended but were held liable when they violated the law. In 2020, there was an attempt to carry out a coup d’etat by several non-governmental organizations engaged in anti-Government activities.  A court decision had held these organizations and their members responsible for violating the law.  This should not be considered repression of civil society.  After these events, laws on civil society were amended to provide incentives for more constructive civic activities.  Non-governmental organizations in Belarus needed to work cooperatively with the State and could not be funded from abroad.

    Questions by Committee Experts

    A Committee Expert welcomed that the State party had not ruled out establishing a national human rights institution and called for serious consideration of its establishment.  The Expert called for the development of a dedicated policy on women, peace and security.  How many women’s organizations participated in the development and analysis of the national action plan on gender equality?

    Another Committee Expert welcomed advances in protection from domestic violence, including the law on crisis prevention.  However, gender stereotypes were spread in media communications and women were systematically silenced and controlled by the State – women who expressed dissent were attacked, punished and detained.  Vulnerable women were often blamed and stigmatised when they sought protection.  The State party implemented restraining orders for only 30 days and perpetrators were not expelled from homes. 

    Would the State party adopt a comprehensive strategy to address gender stereotyping, a comprehensive law against domestic violence, and penal protection against marital rape?  How would the State party protect victims in criminal proceedings?  What remedies had been provided to victims in recent years?  How many persons had been convicted for domestic violence crimes? What services were provided in crisis rooms and how were personnel in these rooms trained?  Why did the rooms also house men?  Over 30 non-governmental organizations managing hotlines and shelters had been closed; why was this?

    One Committee Expert commended the State party for addressing trafficking in persons by ratifying international conventions on trafficking and developing comprehensive laws related to trafficking.  Could the State party provide data on trafficking and prostitution?  What measures were in place to protect women with disabilities from trafficking and to identify victims of trafficking?  How many investigations into trafficking had been carried out and how many persons were convicted?  How was the State party strengthening protections for women and girls against trafficking, promoting their access to justice, and building the capacity of State officials on the gendered aspects of trafficking?

    Responses by the Delegation

    The delegation said analysis of the national action plan on gender equality was carried out twice a year. The Belarus Women’s Union was represented in the National Commission on Gender Equality and other bodies.  The State party also closely cooperated with the Red Cross and other international organizations, and supported organizations of persons with disabilities.  Seventy per cent of civil servants were women; 50 per cent were in middle management positions and were involved in preparing important political decisions.

    Eliminating gender stereotypes was one of the goals of the national action plan for gender equality.  The State party was working to enhance the role of fathers in carrying out domestic tasks and was working with civil society on a joint project encouraging responsible fatherhood.  There was a programme on State television that presented case studies of successful professional women.

    Persons who perpetrated domestic violence were required to leave the homes where victims lived, and authorities monitored compliance.  The law on preventing domestic violence had been amended to address violence against former partners and cohabitants.  The number of protective measures that had been implemented had increased significantly from around 18,000 in 2022 to 33,000 in 2024.  The Government supported victims to stay in their homes.  There were awareness raising campaigns in place to inform potential victims about reporting channels and preventing gender-based violence.  All types of bodily harm were criminalised.

    Every year, around 17,500 complaints of domestic violence were made.  If women victims required temporary housing, it was provided. Shelters could be accessed 24 hours a day by victims and their children without documentation.  There were hundreds of crisis rooms available, including 132 equipped for children.  Work was underway to ensure access to the rooms for persons with disabilities.

    Belarus had taken measures to eliminate trafficking in persons and to identify and rehabilitate victims.  In 2024, authorities identified 1,500 cases of suspected trafficking and identified several victims, including minors. The State worked with civil society to build the capacity of law enforcement staff related to trafficking; 90 training sessions had been held in 2024.  Specialists had been hired to support victims of various forms of trafficking.  The State was also working to align national trafficking legislation with international norms, and various awareness raising campaigns on trafficking were also in place. Involvement in prostitution was an administrative offence; however, victims of trafficking were not prosecuted, but were provided with support.

    Questions by Committee Experts

    A Committee Expert welcomed that legislation was being amended regarding domestic violence, which needed to be made an aggravated circumstance in homicide offences.  What measures were in place to ensure the safety of victims of domestic violence?

    Another Committee Expert commended progress being made related to trafficking and prostitution.

    ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, asked why there was a shortage of female Belarussian ambassadors.  None of the chambers of Parliament had female chairs; there were no parliamentary committees working to protect women’s rights; and only one out of 24 Ministers was a woman.  Why was this? How many Deputy Ministers were women? To what extent were women represented in the technological sector?

    Many very important non-governmental organizations had been closed recently.  What were the reasons for these closures?  There were reports of repression of women journalists and activists.

    One Committee Expert noted progress made in reducing statelessness through nationalisation efforts. However, 2,473 women remained stateless in the State party.  Were there programmes addressing statelessness?  When would the State party ratify the 1954 and 1967 United Nations conventions on statelessness?  The State party had not established a clear procedure for protecting migrant mothers and newborns.  Would it do so?

    Responses by the Delegation

    The delegation said the law on prevention of violence included a clause on educational programmes for perpetrators. The State party was interested in best practices in this field in other countries.

    Women made up around 70 per cent of Belarus’ Ministry of Foreign Affairs.  At a time, Belarus had four female ambassadors.  Appointment to ambassadorial roles was based on competitive selection and there was a shortage of women applicants.  Women were broadly represented as deputy chairs of parliamentary committees and made up around 50 per cent of the members of local councils. Belarus aimed to improve women’s representation in all fields.

    The Committee’s assessments related to repression were not appropriate.  The protests that took place in Belarus over the reporting period were in many cases not peaceful.  Certain extremist actions were taken by media workers.  The Government was working to increase understanding of the situation.

    In 2023, a new law on the activities of civil society was adopted that required organizations to re-register. Many non-governmental organizations had not completed the new registration procedure and had been shut down. Citizens were entitled to renew the activities of previous non-governmental organizations.

    Belarus strived to eradicate statelessness.  The number of stateless women in Belarus had significantly decreased by around 5,000 persons over the past 10 years, thanks to the work of authorities in collaboration with United Nations bodies.  The State supported stateless persons and their children to apply for Belarussian citizenship.  It was continuing work towards ratification of the United Nations conventions on statelessness.  The Government had not received reports of unlawful treatment of stateless persons. Stateless persons in Belarus were primarily citizens of the former Soviet Union.  Their numbers were low; the number of stateless children was less than 10.  To receive citizenship, people needed to demonstrate that they had sufficient income and had not committed offences.

    Questions by a Committee Expert 

    A Committee Expert said Belarus had near universal enrolment of girls and boys in primary education.  Educational instructions could reproduce harmful tropes of men as breadwinners and women as caregivers.  What measures were in place to enforce the role of men as caregivers? Only 23 per cent of persons in science, technology, engineering and maths education were women.  What measures were in place to promote their participation?  Only 17 per cent of university professors were female.  How would this be addressed?  Many students had been arrested and prosecuted for their engagement in protest movements.  Nine of the 11 students detained were women, including a woman professor.  What was the status of these women?

    Responses by the Delegation

    The delegation said traditional values in Belarus promoted families with children. Many educational programmes aimed to uphold traditional values and promote gender equality and the equal roles of men and women.  Around 52 per cent of higher education students were women.  Around 40 per cent of workers in the information technology sphere were women.  The Government was implementing incentives and other measures to attract girls to science, technology, engineering and maths careers.

    Students were detained on the grounds that they had broken a criminal law.  There was no persecution of students simply for exercising freedom of expression.

    Questions by a Committee Expert

    One Committee Expert said the employment rate of men was 72 per cent compared to 63 per cent for women. Although the list of closed professions for women had been reduced significantly, significant barriers for women accessing the labour market remained, and the list itself was a form of discrimination.  Women were underrepresented in higher-paid industries.  Workplace harassment remained common and legislation did not provide adequate remedies for victims and penalties for perpetrators.  Detained women were legally required to engage in labour; this was a form of modern slavery.  In July 2022, all independent trade unions were banned in Belarus. What protection mechanisms were available related to workplace sexual harassment?  Was there a national action plan for addressing the gender pay gap? When would the State party abolish forced labour for prisoners?

    In 2017, the State introduced pension reform, raising the retirement age.  Many citizens had lost their pensions due to the reforms.  Why did men and women have different pension ages?

    Responses by the Delegation

    The delegation said the rate of employment for women from 15 to 74 was 63 per cent, whereas the employment rate for women of working age was above 80 per cent. Belarus promoted equal pay for work of equal value.  Overall, women earned around 75 per cent of what men earned.  In the transport sector and the agricultural sector, wage gaps were much lower.  The State party was implementing measures to reduce the gender pay gap.  Women were now able to work in professions that were previously not accessible, such as truck drivers.  The State party was encouraging men to take parental leave. Women who experienced workplace harassment could report the incident to local authorities and receive remedies. 

    The Supreme Court had ruled that trade unions were to be closed when their activities were harmful to public interests or State values. The federation of trade unions covered almost all unions in the country.  It promoted general and collective agreements, which provided additional social and labour rights for workers.

    Women earned 92.5 per cent of the pension earned by men. Less than one per cent of the elderly were poor.  Women could continue working after they reached pension age; around 20 per cent of women did so.  The Presidential Decree on Employment did not punish individuals who were not working. Under the decree, women who were not working had the right to access State subsidies.

    The State party was exerting efforts to address the gender pay gap.  The national action plan on gender equality, which was based on the Committee’s previous recommendations, introduced measures to support female entrepreneurs and workers.

    Questions by a Committee Expert

    A Committee Expert said there had been significant advances in the field of public health in Belarus in recent years, but access to medicines was better in cities than in rural areas, and the quality of healthcare had declined nation-wide.  How was the State party supporting equal access to affordable healthcare for women from vulnerable groups?  What measures were in place to remove obstacles to accessing abortions?  Did both men and women need to undergo cancer screenings before they could obtain a driver’s licence?

    Women with disabilities faced barriers in accessing sexual and reproductive health services.  How was the State party meeting the needs of women with disabilities in this regard?  Some women with disabilities had been pressured to hand over their children to the State.  How would the State party address the discrimination faced by women with disabilities?  How did the delegation respond to reports of sterilisation of women with disabilities?

    Women with HIV reportedly faced systematic discrimination in health care.  The Penal Code sanctioned the transmission of HIV regardless of the circumstances. What measures were in place to support women with HIV?  What was the situation of sexual and reproductive health education?

    Responses by the Delegation

    The delegation said that in Belarus, medical assistance for persons with HIV was provided in line with health protocols from 2018 and 2022.  In 2018, Belarus had been certified as being free from mother-to-child transmission of HIV.  There were around 27,000 HIV positive people in the State.  The State party worked closely with non-governmental organizations to provide treatment for HIV positive people.  Around 95 per cent of HIV positive people were receiving retroviral treatment.  Women formerly had to present certificates from gynaecologists to receive a driver’s licence; as of last year, this was no longer necessary.  A draft law had been developed to decriminalise unintentional transmission of HIV.  Penalties for the deliberate transmission of HIV would remain.

    The protection of maternal and child health was a priority for the State.  Women who sought abortions could receive free counselling.  Over five years, these counselling sessions had prevented 23,000 abortions.  Pregnancies were interrupted only when the pregnant woman provided permission.

    All women, including women with disabilities, had access to medical assistance without discrimination.  Resources were set aside to allow for high quality medical care of the population.

    The World Health Organization had highly rated the medical care provided in Belarus.  The assessment that the quality of medical care had declined in recent years was not in line with reality.  Mobile health clinics provided in-home medical care in rural areas.  The State party was addressing shortages in healthcare staff.  It had difficulties in accessing certain types of medications due to sanctions from Western countries.

    Questions by Committee Experts

    A Committee Expert commended measures reforming regulations on universal social protection and access to support funds for entrepreneurs. Were there schemes guiding social protection for workers in the informal sector?  What steps had been taken to incorporate gender considerations into the tax regime?  What percentage of business grants were received by female entrepreneurs over the past five years?  How had technological training helped to bridge gender gaps in digital fields? How was the State party strengthening women’s role in sports and cultural activities and addressing stereotypes related to sports and culture?

    Another Committee Expert congratulated Belarus on co-sponsoring the United Nations Convention against Cybercrime and for implementing measures to protect elder women in digital spheres.  What social security and economic policies were in place for elderly women?  Belarus had a high number of criminal cases related to HIV.  Transmission of HIV was penalised with imprisonment of up to five years.  Was the State party rethinking this law?

    Women with disabilities’ right to work could only be realised after a medical examination.  How would the State party allow for the full realisation of these women’s right to work?

    Women in prisons were reportedly denied access to menstrual products.  How would the State party ensure that all detained women were treated in a dignified manner?  Belarus had in 2022 broadened its definition of pornography to include non-traditional relationships.  How would this affect the lesbian, bisexual, transgender and queer community?  Were the rights of indigenous women considered in plans to develop a second nuclear powerplant in the State? 

    Responses by the Delegation

    The delegation said there were around 400,000 people engaged in entrepreneurship in Belarus, 40 per cent of whom were women.  There was a framework for supporting women entrepreneurs, including in rural areas, and norms and laws aimed to support small businesses. Special taxation measures were provided to women entrepreneurs.  The share of women entrepreneurs had increased by around 10 per cent in recent years.  A State support programme for the unemployed had been established; almost half of all beneficiaries were women.

    In 2023, nine women had been penalised for transmitting HIV and 12 women were penalised in 2022.  The State party was continuing to reduce the stringency of HIV legislation.

    There was a Government mechanism which visited prisons regularly to examine living conditions.  The Attorney-General also monitored compliance with legislation on prisons.  Access to all forms of medical care was granted to detainees.  All detainees could file complaints to courts related to the lawfulness of their detention as well as other problems.  Prisoners who violated prison regimes were placed in solitary confinement.

    The State party had a plan for implementing the Convention on the Rights of Persons with Disabilities.  It supported employers who hired persons with disabilities and provided training to help persons with disabilities access work.  An act on quotas for persons with disabilities in the workplace had been implemented.

    Legislative changes addressed the circulation of products that harmed public morality.  They were not expected to have an impact on the lesbian, bisexual, transgender and intersex community.  People could choose the type of relationship they had.

    The impact on human health of the State’s nuclear power plants was negligible.  Belarus upheld the highest standards of safety.

    Women were being encouraged to participate in sports traditionally favoured by men.

    Questions by a Committee Expert

    ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, asked if the State party had statistics on the amount of property inherited by women.  How did courts protect women’s property rights in divorce proceedings? How were children’s rights protected in international adoption proceedings?  The dialogue and the Committee’s recommendations would help with protecting the rights of women in Belarus.

    Responses by the Delegation

    The delegation said Belarus’ legislation on divorce promoted the best interests of the child.  Mediation was increasingly used in custody cases.  The interests of the mother and father were duly protected.  Belarus worked with several States on regulating international adoptions.  The State party monitored families who had adopted Belarussian children to ensure that their rights were upheld.

    Concluding Remarks

    LARYSA BELSKAYA, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, thanked the Committee for the dialogue. Belarus had achieved much in terms of gender equality and empowering women.  The discussion helped the State party to identify the remaining issues to be addressed.  The Belarussian population supported the State’s measures, but there was more to be done.  The Committee’s recommendations would be carefully considered by the National Council on Gender Equality and used to construct the next national action plan on gender equality

    NAHLA HAIDAR, Committee Chair, thanked the delegation for its engagement with the Committee.  The dialogue had provided insights into the achievements made in Belarus and the areas in which further progress was needed.  The Committee commended the State party for its efforts and encouraged it to implement the Committee’s recommendations for the benefit of all women and girls in Belarus.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CEDAW25.004E

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: Minister thanks outgoing Chief Executive

    Source: New Zealand Government

    Health Minister Simeon Brown has today thanked outgoing Health New Zealand Chief Executive Fepulea’i Margie Apa for her service. 

    “Margie Apa was the first to hold the position of Chief Executive at Health New Zealand, taking on the challenge of transitioning New Zealand’s health system from regional district health boards into a single entity following the previous government’s reforms in the middle of a pandemic. 

    “Prior to this, Margie was Chief Executive of the Counties Manukau District Health Board, having built a career in public service. 

    “As Chief Executive at Health New Zealand, Margie remained committed to ensuring access to healthcare services while Health New Zealand grappled with significant operational and financial challenges stemming from the health system reforms.

    “I acknowledge Margie’s decision to step down as Chief Executive of Health New Zealand and thank her for her service,” Mr Brown says. 

    Dr Dale Bramley will become acting Chief Executive of Health New Zealand, while a formal recruitment process is underway to find Ms Apa’s replacement. 

    “I look forward to working with Dr Bramley to ensure Health New Zealand focusses on its core role of ensuring access to timely, quality healthcare for all New Zealanders.” 

    MIL OSI New Zealand News –

  • MIL-OSI Economics: Lessons learned and challenges ahead for central banks in the Americas

    Source: Bank for International Settlements

    Introduction

    Welcome, everyone, and thank you for attending the first edition of the Chapultepec Conference. The aim of this event is to allow central bank Governors to reflect and share perspectives on the major economic and financial issues facing the Americas. I am sure that today’s meeting will be followed by many others.

    Today’s conference has a rich agenda. We started this morning by discussing global financial conditions and digital innovations. After lunch, we will turn to monetary policy.

    I will use my time today to give some background to this afternoon’s discussions. I will aim to provide some perspective on the course of monetary policy in the Americas over the past few years. I will then turn to what I see as the key challenges facing central banks in the region in the coming years. My comments will focus on Latin America, although many of the themes have broader relevance.

    Latin America’s response to the Covid crisis

    Monetary policy developments in recent years have been profoundly shaped by the events of the Covid-19 pandemic and its immediate aftermath.

    When the pandemic struck in 2020, central banks throughout the world took decisive measures. They lowered interest rates to record lows, offered new liquidity facilities and expanded existing ones. Many central banks also made asset purchases.

    For advanced economy central banks, including the Federal Reserve and the Bank of Canada, the policy response followed a broadly familiar playbook, although the size of the response was unusually large.

    But for many emerging market economy central banks, including those in Latin America, such a strong, countercyclical policy response marked a departure. In past crises, policy had often responded procyclically, not least due to concerns about possible currency depreciation.

    Two factors contributed to this different response in Latin America during the pandemic. First, monetary policy frameworks in Latin America had been strengthened over the previous decades. In particular, the autonomy obtained in the 1990s was a rock-solid foundation, without which a countercyclical policy response would not have been possible. Second, the pandemic was a global shock. The fact that central banks worldwide, including the Federal Reserve, were loosening their policy stances no doubt made it easier for central banks in Latin America to follow suit.

    While the policy easing at the start of the pandemic was highly synchronous, the tightening in its aftermath was less so. Central banks in Latin America, in particular, were relatively quick to unwind emergency policy settings in response to emerging inflationary pressures in early 2021. In doing so, they drew on the experiences of the 1970s and 1980s, when high inflation and wage-price spirals were prevalent. Monetary policy in advanced economies was, in my view, more heavily influenced by the extended period of below-target inflation that preceded the pandemic.

    Early and forceful policy tightening worked. By slowing demand, it contributed directly to lowering inflation. Just as importantly, decisive tightening helped keep long-term inflation expectations anchored. Even when inflation initially rose, the public never lost confidence in central banks’ commitment and ability to bring inflation back to target. In countries with a history of high and volatile inflation, like many in Latin America, this is a clear success. It has helped to prevent a wage-price spiral similar to that experienced during previous episodes. Moreover, unlike in many episodes of the 1980s and 1990s, there was no financial or banking crisis.

    The job is not done, however. In much of the Americas, inflation remains above target. And the road back to price stability looks bumpier than it did even six months ago, not least due to heightened policy uncertainty. Over the past few years, central banks were able to draw on their accumulated credibility to limit the rise in inflation and bring it down at relatively little cost to economic activity. But to safeguard their credibility for the future, they have to see the job through and deliver on their mandates.

    Challenges ahead

    Let me spend the rest of my speech discussing some of the challenges that I believe will affect the conduct of monetary policy in the coming years.

    The first challenge is policy uncertainty. Trade policy is the most prominent example. But the future evolution of fiscal policy, regulation and immigration policy is also open to many questions at present. Moreover, the geopolitical backdrop remains in flux.

    Such pervasive policy uncertainty will affect central banks in several ways.

    Uncertainty itself is likely to weigh on growth. Firms will postpone investment. Households may avoid large purchases. In isolation, these effects would weigh on inflation.

    But an uncertain world is also likely to be a more volatile one, particularly for financial markets. Already in recent weeks, we have seen sizeable swings in asset prices, including exchange rates, as market participants struggled to determine how policy settings would evolve, and how to position themselves accordingly. Some of these asset price movements, particularly exchange rate depreciations, could be inflationary.

    At some point, of course, many of today’s policy uncertainties are likely to be resolved. Depending on the policies adopted, these choices will have their own consequences for growth and inflation.

    The second challenge is high public debt and, in some countries, unsustainable fiscal positions. Public debt was already high in much of the world before the Covid-19 pandemic. It has increased further since then. And the widening of budget deficits at the start of the pandemic has still not been fully unwound.

    Loose fiscal policy complicates the task of central banks in several, well known, ways. By contributing to aggregate demand, it adds to inflationary pressures, complicating the return to price stability. By raising doubts about the long-term sustainability of public finances it can increase interest rate risk premia and can lead to currency depreciation, further raising inflation while weighing on growth. In the extreme, an abrupt repricing of public debt could put financial stability at risk, especially in countries where banks and non-bank financial institutions hold large shares of the public debt. But even if these channels are familiar, central banks will still need to navigate the consequences.

    The third challenge is international divergence. As I mentioned before, the pandemic was a global shock, leading almost all central banks to ease policy at about the same time. The subsequent inflationary outbreak saw most tighten policy, even if many emerging market economy central banks started to do so ahead of their advanced economy peers.

    Going forward, economic conditions, and hence appropriate policy settings, are likely to be less synchronous. In particular, economic growth in the United States has been much stronger than in much of the rest of the world of late. Should this continue, we could see greater variability in policy settings, with flow-on effects to capital flows, exchange rates and global financial conditions.

    A fourth, and related, challenge is continued sluggish productivity growth in most countries of the Americas, except the United States. Some factors behind this problem are insufficient investment in infrastructure, education and technology. Many countries face structural inefficiencies, such as rigid labour markets and bureaucratic hurdles, which hinder businesses’ ability to innovate and expand. A retreat from globalisation and widening trade fragmentation could weigh on productivity growth further.

    Low productivity growth makes central banks’ lives much harder. In particular, it creates pressure to keep policy settings loose in order to sustain economic growth in the face of weak fundamentals. I don’t need to tell this audience that this policy prescription is all wrong.

    Addressing low productivity growth requires structural reforms that make it easier to open a business, compete and invest. Regrettably, structural reforms had been lagging in many economies well before the pandemic. Consolidating fiscal positions and rationalising public expenditure may also free up resources to improve public investment to develop necessary infrastructure and improve human capital. Such policies, of course, lie outside central banks’ toolkit.

    The task for central banks

    Faced with all of these challenges, many of which are beyond their control, what can central banks do?

    A first task is to ensure that at least one key prerequisite for sustained economic growth – price stability – is beyond question. In doing so, they can help remove one potentially destabilising source of policy uncertainty. The history of this region regrettably features many examples of the adverse consequences when the public loses confidence in central banks’ ability and willingness to achieve their mandates. The experience of the Covid pandemic showed us how much better outcomes can be if such confidence is maintained.

    That said, the specific policy settings to deliver monetary and financial stability are themselves uncertain. Much will depend upon how policy uncertainty evolves, and on the specific constellation of policies that are ultimately adopted. Appropriate policy settings will also change over time. In the meantime, bouts of market volatility are likely. At such times, central banks may need to act, in a judicious and limited manner, to safeguard market stability.

    So central banks will need to remain on their toes, be attuned to recent developments and stand ready to act firmly and decisively when required. While central banks’ ultimate objectives – monetary and financial stability – should be steadfast, commitment to specific policy settings should be avoided. Maintaining flexibility to adjust policy settings rapidly in response to changing circumstances will be at a premium.

    Beyond the immediate conjuncture, I believe the time is also opportune for central banks to build on the lessons of the past few years, in order to better prepare themselves for the future. The policy reviews currently being undertaken in a number of economies represent such an opportunity.

    In particular, a key lesson that I draw is how quickly and fundamentally seemingly pervasive features of the economic landscape can change. Before the pandemic, there was broad-based agreement that the global economy would face strong deflationary pressures for the foreseeable future. Real rates were expected to remain at historical lows, raising the risk of persistent liquidity traps.

    Today it is clear that inflation risks are much more two-sided than we had previously thought. And it is also clear that the general public is much more resentful of even a relatively brief period of high inflation than a prolonged period of modestly below-target inflation. Our policy frameworks should take these lessons into account. But they will also need to be robust to a future that could look very different from even the immediate past. A key reason for the success of many Latin American central banks in navigating the post-pandemic inflation surge was their ability to adapt rapidly in the face of changing circumstances. Such adaptability is a trait to which all policy frameworks aspire.

    Let me close with a plea for central bank cooperation. Central banking is not a zero-sum game. Above-target inflation or low growth in one country does not benefit others, but makes their life more difficult. This means there is significant scope for cooperation. It will be much easier to meet the challenges of tomorrow together than alone.

    The BIS will be there to support you in this endeavour. The BIS’s mission is to support central banks’ pursuit of monetary and financial stability through international cooperation, and to act as a bank for central banks. The BIS Representative Office for the Americas will continue to promote cooperation among central banks in the Americas and the Caribbean and to link central banks in the region to those in other regions.

    MIL OSI Economics –

  • MIL-Evening Report: Do investment tax breaks work? A new study finds the evidence is ‘mixed at best’

    Source: The Conversation (Au and NZ) – By Kerrie Sadiq, Professor of Taxation, QUT Business School, and ARC Future Fellow, Queensland University of Technology

    The Reserve Bank of Australia (RBA) released a discussion paper this week on investment tax breaks. The study looks at whether tax incentives, such as instant asset write-offs for utes, boost business investment.

    Business investment is an important contributor to overall economic growth, and has been sluggish in recent years.

    The authors conclude the evidence for these tax breaks is “mixed at best”. They say that income tax breaks used during the global financial crisis increased investment significantly, however:

    [there is] no substantial evidence that other policies, including those implemented during the pandemic, increased investment.

    In an election year, further promises of tax breaks for businesses are likely. The Coalition has already announced a tax break for meals and entertainment. But are they a good idea, and at what cost do these promises come?

    Small business in Australia

    Small businesses with fewer than 20 employees make up 97% of all Australian businesses. More than 92% of Australian businesses have an annual turnover of less than A$2 million. It is these businesses that are doing it tough.

    These businesses are offered tax breaks for spending on capital assets such as equipment or vehicles. For the 2023-24 tax year, they can immediately write off the cost of eligible assets up to $20,000. In the May 2024 Budget, the government announced that the tax break would be extended to the 2024-25 tax year.

    When a small business is operated as a company, the base tax rate is 25%. This effectively means that the business still contributes 75% of the cost of the asset. This requires businesses to have the cash flow to invest. Even if there is cash flow, businesses may not want to spend on large purchases.

    It’s a question of trade-offs

    Investment tax breaks are also costly in terms of government tax revenue. Each year, the Treasury estimates the cost of tax breaks. These tax breaks are known as tax expenditures.

    For the 2023-34 tax year, the instant write-off tax break for small businesses is estimated to cost more than $4 billion by reducing taxes collected.

    Tax expenditures are normally designed to offer incentives to one group of taxpayers. However, they come at the expense of broader groups of taxpayers and at a cost of lost revenue to the government. This is money that could be spent through direct spending programs.

    Tax expenditures can be thought of as government spending programs hidden in plain sight.

    The true cost of tax breaks

    Tax expenditures play a central role in Australia’s collection of taxes and redistribution. During the pandemic, the instant asset write-off was increased to $150,000.

    The current government introduced the latest instant asset write-off to improve cash flow and reduce compliance costs for small business. As the RBA discussion paper notes, these types of incentives are also designed to encourage additional business investment.

    However, that study indicates this is not being achieved. They suggest the reasons may be the tax policies themselves or differences in the economic environment. Put simply, businesses may not want to invest.

    If the stated benefits are not realised, the result is less tax collected. Take the $4 billion cost above. Without the incentive, the government would have an additional $4 billion to spend. The $4 billion in 2023-24 could have been directed to funding small businesses through a direct spending program.

    Targeted programs

    The RBA discussion paper highlights the need to determine whether investment tax breaks achieve their intended benefits. Many factors must be considered, and assessing the influence on the economy is vital.

    However, evaluating these measures within the tax system means that important questions are not asked. This includes whether the benefits are distributed fairly, whether the program targets the right group of taxpayers, and whether there are unintended distorting effects.

    The latest Treasury Tax Expenditures and Insights Statement provides data on 307 separate measures. This number continues to grow.

    The government’s “Future Made in Australia” contains two examples. Its economic plan to support Australia’s transition to a net zero economy contains two tax incentives, one for hydrogen production and another for critical minerals.

    The proposed hydrogen production tax incentive is estimated at a cost to the budget of $6.7 billion over ten years. The measure will provide a $2 incentive per kilogram of renewable hydrogen produced for up to ten years. Eligible companies will get a credit against their income tax liability.

    The proposed critical minerals production tax incentive is estimated to cost the budget $7 billion over ten years. Eligible companies will get a refundable tax offset of 10% of certain expenses relating to processing and refining 31 critical minerals listed in Australia.

    Support for tax breaks

    Tax breaks for businesses, such as the immediate write-off, disproportionately benefit those that spend. Often, this is by design. If this is a government objective, supported by the general population, then it is viewed as a good use of public money.

    The same principle applies to tax breaks in the Government’s Future Made in Australia plan. A government objective is to transition to a net zero economy. A stated priority is to attract “investment to make Australia a leader in renewable energy, adding value to our natural resources and strengthening economic activity”.

    The question remains as to whether tax breaks are the best way to achieve this. The answer often changes when viewed as a direct spending program.

    Kerrie Sadiq currently receives funding from the Australian Research Council. She has previously received research grants from CPA and CAANZ.

    Ashesha Weerasinghe does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Do investment tax breaks work? A new study finds the evidence is ‘mixed at best’ – https://theconversation.com/do-investment-tax-breaks-work-a-new-study-finds-the-evidence-is-mixed-at-best-249148

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: Prime Minister Shri Narendra Modi’s reply to the Motion of Thanks on the President’s Address in Rajya Sabha

    Source: Government of India

    Prime Minister Shri Narendra Modi’s reply to the Motion of Thanks on the President’s Address in Rajya Sabha

    Sabka Saath, Sabka Vikas is our collective responsibility: PM

    The people of the country have understood, tested and supported our model of development: PM

    Santushtikaran over Tushtikaran, After 2014, the country has seen a new model and this model is not of appeasement but of satisfaction: PM

    The mantra of our governance is – Sabka Saath, Sabka Vikas: PM

    India’s progress is powered by Nari Shakti: PM

    We are Prioritising the welfare of the poor and marginalised: PM

    We are Empowering the tribal communities with PM-JANMAN: PM

    25 crore people of the country have moved out of poverty and become part of the neo middle class, Today, their aspirations are the strongest foundation for the nation’s progress: PM

    The middle class is confident and determined to drive India’s journey towards development: PM

    We have focused on strengthening infrastructure across the country: PM

    Today, the world recognises India’s economic potential: PM

    Posted On: 06 FEB 2025 8:41PM by PIB Delhi

    The Prime Minister, Shri Narendra Modi replied to the Motion of Thanks on the President’s Address to Parliament in the Rajya Sabha today. Addressing the House, the Prime Minister remarked that the President’s address covered India’s achievements, global expectations from India, and the confidence of the common man in building a developed India. He remarked that the President’s speech was inspiring, impactful, and provided guidance for future work. He expressed his gratitude to the President for the address. 

    Shri Modi said that over 70 honorable MPs have enriched the motion of thanks with their valuable thoughts. He noted that discussions took place from both sides, with everyone explaining the President’s address based on their understanding. The Prime Minister mentioned that a lot has been said about Sabka Saath, Sabka Vikas, and he found it difficult to understand the complexities involved. He emphasized that Sabka Saath, Sabka Vikas is our collective responsibility, and that’s why the country has given them the opportunity to serve. 

    Thanking the people of India for giving them the opportunity to serve them continuously since 2014, Shri Modi said this was a testimony to our model of development which has been tested, understood and supported by the people. He added the phrase ‘Nation First’ signified their model of development and this was exemplified in the policies, schemes and actions of the Government.  Noting that there was a need of alternate model of governance and administration after a long hiatus of 5 – 6 decades after independence, Shri Modi said that country has received an opportunity to witness a new model of development, since 2014, based on satisfaction (Santushtikaran) over appeasement (Tushtikaran). 

    “It has been our earnest effort to ensure optimum utilization of the resources in India”, said the Prime Minister. He added that to ensure that the time of India was also not wasted but utilized for the development of the nation and the welfare of the people. Therefore, he added, “We have adopted the Saturation Approach”. He remarked that the motive behind the approach was to ensure 100% benefits to the true beneficiaries of the scheme. Highlighting that the true spirit of “Sabka Saath, Sabka Vishwas” has been implemented on the ground in the past decade, Shri Modi said that it is now evident as the efforts have led to the fruition in the form of development and progress. “Sabka Saath, Sabka Vishwas is the main mantra of our Governance”, he added. The Prime Minister emphasized that the Government had shown its commitment by strengthening the SC, ST Act which would empower the poor and the tribals by enhancing their respect and security. 

    Lamenting that there is a lot of effort being made in today’s time to spread the poison of casteism, the Prime Minister reminded that  for the past three decades, OBC MPs from various parties of both houses have been demanding constitutional status for the OBC Commission. He added that it was their Government that granted constitutional status to the OBC Commission. He highlighted that the respect and honour of the Backward Classes was also important for their Government as they worship 140 crore Indians. 

    Remarking that whenever the topic of reservation has arisen in the country, efforts to solve the problem in a robust manner have not been undertaken, Shri Modi highlighted that in every instance, methods to divide the country, create tension, and foster enmity against each other were adopted. He emphasized that similar approaches were used even after the country attained independence. The Prime Minister highlighted that for the first time, his government presented a model inspired by the mantra of Sabka Saath, Sabka Vikas, providing nearly 10% reservation for the economically weaker sections without any tension or deprivation. He stated that this decision was welcomed by the SC, ST, and OBC communities, with no one expressing any discomfort. The Prime Minister noted that the implementation method, based on the principle of Sabka Saath, Sabka Vikas, was carried out in a healthy and peaceful manner, leading to nationwide acceptance of the decision.

    Highlighting that Divyangs or specially-abled individuals in the country have not received the attention they deserve, the Prime Minister highlighted that under the mantra of Sabka Saath, Sabka Vikas, his Government has extended reservation for the differently-abled and worked in mission mode to provide facilities for them. He mentioned that numerous welfare schemes have been created and implemented for the benefit of specially-abled individuals. Furthermore, Shri Modi emphasized the efforts made for the legal rights of the transgender community, highlighting the commitment to ensuring their rights through robust legal measures. He remarked that the Government’s approach to Sabka Saath, Sabka Vikas is demonstrated through their compassionate consideration towards marginalized sections of society.

    “India’s progress is powered by Nari Shakti”, exclaimed Shri Modi. He highlighted that if women are given opportunities and become part of policy-making, it can accelerate the country’s progress. He remarked that this is why the Government’s first decision in the new Parliament was dedicated to the honor of Nari Shakti. Shri Modi pointed out that the new Parliament will be remembered not just for its appearance but for its first decision, which was a tribute to the Nari Shakti. He stated that the new Parliament could have been inaugurated differently for the sake of praise, but instead, it was dedicated to the honor of women. He highlighted that the Parliament has commenced its work with the blessings of Nari Shakti.

    Remarking that Dr. Babasaheb Ambedkar was never considered worthy of the Bharat Ratna by the previous Governments, Shri Modi highlighted that despite this, the people of the country have always respected Dr. Ambedkar’s spirit and ideals. He emphasized that due to this respect from all sections of society, everyone from all parties are now compelled to say “Jai Bhim,” albeit reluctantly. 

    Shri Modi said that Dr. Babasaheb Ambedkar deeply understood the fundamental challenges faced by the SC and ST communities, having personally experienced the pain and suffering. He highlighted that Dr. Ambedkar presented a clear roadmap for the economic upliftment of these communities. Reading a quote from Dr. Ambedkar, stating that “While India is an agrarian country, agriculture cannot be the main livelihood for Dalits”, the Prime Minister noted that Dr. Ambedkar identified two reasons: first, the inability to purchase land, and second, even with money, there were no opportunities to buy land. He emphasized that Dr. Ambedkar advocated for industrialization as a solution to this injustice faced by Dalits, tribals, and marginalized groups. He highlighted that Dr. Ambedkar believed in promoting skill-based jobs and entrepreneurship for economic self-reliance. He mentioned that the vision of Dr. Ambedkar was not considered and completely dismissed for many decades after independence. He emphasized that Dr. Ambedkar aimed to eliminate the economic hardships of the SC and ST communities.

    Pointing out that in 2014, his Government prioritized skill development, financial inclusion, and industrial growth, the Prime Minister highlighted the introduction of the PM Vishwakarma Yojana, aimed at traditional artisans and craftsmen like blacksmiths and potters, who are essential to society’s foundation and scattered across villages. He emphasized that for the first time, there was concern for this section of society, providing them with training, technological upgrades, new tools, design assistance, financial support, and market access. He remarked that his government launched a special campaign to focus on this neglected group, acknowledging their significant role in shaping society.

    “Our Government introduced the MUDRA scheme to invite and encourage first-time entrepreneurs”, said Shri Modi and highlighted the large-scale campaign of providing loans without guarantees to help a significant section of society achieve their dreams of Atmanirbharta (self-reliance), which has seen great success. He also mentioned the Stand Up India scheme, aimed at providing loans of up to ₹1 (one) crore without guarantees to SC, ST, and women from any community, to support their enterprises. He noted that this year, the budget for this scheme has been doubled. The Prime Minister observed that millions of young people from marginalized communities and many women have started their businesses under the MUDRA scheme, not only securing employment for themselves but also creating jobs for others. He highlighted the empowerment of every artisan and every community, fulfilling Dr. Babasaheb Ambedkar’s dream through the MUDRA scheme.

    Emphasising his commitment to the welfare of the poor and marginalized, stating that those who were ignored are now being prioritized, Shri Modi highlighted that the current budget has touched upon various small sectors such as the leather and footwear industries, benefiting the poor and marginalized communities. Citing an example, the Prime Minister mentioned the toy industry, noting that many people from marginalized communities are involved in toy making. The Government has focused on this sector, providing various forms of assistance to poor families. The result is a significant increase in toy exports, which have tripled, benefiting the underprivileged communities that rely on this industry for their livelihood.

    Highlighting the significant contribution of the fishing community in India, the Prime Minister remarked that the Government has established a separate ministry for fishermen and extended the benefits of the Kisan Credit Card to them. He noted that around ₹40,000 crore have been included in the fisheries sector. He emphasized that these efforts have doubled fish production and exports, directly benefiting the fishing community. The Prime Minister reiterated the Government’s priority to work for the welfare of the most neglected sections of society.

    Remarking that there are new efforts to spread the poison of casteism, which affects our tribal communities in various levels, the Prime Minister highlighted that some groups have very small populations, spread across 200-300 places in the country, and are highly neglected. He expressed gratitude for the guidance from the President, who has close knowledge of these communities. Shri Modi noted that special efforts have been made to include these particularly vulnerable tribal groups in specific schemes. He mentioned the introduction of the PM Janman Yojana, with an allocation of ₹24,000 crore, to provide facilities and welfare measures for these communities. The goal is to elevate them to the level of other tribal communities and eventually bring them on par with the entire society.

    “Our Government has also focused on different regions of the country that face significant backwardness, such as border villages”, said Shri Modi. He highlighted the psychological shift brought about by the Government, ensuring that border villagers are prioritized. He emphasized that these villages, where the first and last rays of the sun touch, have been given special status as “first villages” with specific development plans. The Prime Minister noted that ministers were sent to remote villages to stay for 24 hours, even in extreme conditions like minus 15 degrees, to understand and address the villagers’ problems. He mentioned that village leaders from these border areas are invited as guests on national celebrations like Independence Day and Republic Day. He stressed on the Government’s commitment to Sabka Saath, Sabka Vikas and the ongoing efforts to reach every neglected community. Shri Modi highlighted the importance and utility of the Vibrant Villages program for the nation’s security, emphasizing the government’s continued focus on it.

    The Prime Minister noted that the President in her address, on the occasion of 75 years of the Republic, urged everyone to take inspiration from the constitution makers. He expressed satisfaction that the Government is moving forward with respect and inspiration from the sentiments of the constitution makers. Addressing the topic of the Uniform Civil Code (UCC), Shri Modi remarked that those who read the debates of the Constituent Assembly would understand the efforts to bring forth those sentiments. He acknowledged that some might have political objections, but the Government is committed to fulfilling this vision with courage and dedication. 

    Emphasizing the importance of respecting the constitution makers and drawing inspiration from their words, the Prime Minister expressed regret that the sentiments of the constitution makers were disregarded immediately after independence. He highlighted that an interim arrangement, which was not an elected government, made amendments to the constitution without waiting for an elected Government to do so. He remarked that the freedom of speech was curbed and restrictions were imposed on the press while claiming to uphold democracy, by the then Government. He stated that this was a complete disregard for the spirit of the constitution.

    Shri Modi highlighted that during the tenure of the first government of independent India, led by Prime Minister Jawaharlal Nehru, there were instances of suppression of freedom of speech. He mentioned that during a workers’ strike in Mumbai, renowned poet Shri Majrooh Sultanpuri sang a poem criticizing the Commonwealth, which led to his imprisonment. He also pointed out that famous actor Shri Balraj Sahni was jailed merely for participating in a protest march.  He further highlighted that Lata Mangeshkar’s brother, Shri Hridaynath Mangeshkar, faced repercussions for planning to present a poem by Veer Savarkar on All India Radio. He remarked that merely for this reason, Hridaynath Mangeshkar was permanently dismissed from All India Radio. 

    Touching upon the experiences in the country during the period of Emergency, during which the constitution was crushed and its spirit trampled upon for the sake of power, Shri Modi emphasized that the nation remembers this. He highlighted that during the Emergency, the renowned senior actor Shri Dev Anand was requested to publicly support the Emergency. Shri Dev Anand showed courage and refused to support it, leading to a ban on all his films on Doordarshan. The Prime Minister criticized those who talk about the constitution but have kept it in their pockets for years, showing no respect for it. He highlighted that Shri Kishore Kumar refused to sing for the then ruling party and as a consequence, all of his songs were banned on All India Radio.

    Remarking that he cannot forget the days of the Emergency, the Prime Minister emphasized that those who talk about democracy and human dignity are the same people who, during the Emergency, handcuffed and chained great personalities of the country, including Shri George Fernandes. He highlighted that even members of Parliament and national leaders were bound in chains and handcuffs during this period. He stated that the word “constitution” does not suit them. 

    Shri Modi remarked that, for the sake of power and the arrogance of a royal family, millions of families in the country were devastated, and the nation was turned into a prison. He emphasized that a long struggle ensued, forcing those who considered themselves invincible to bow down to the people’s strength. The Prime Minister noted that the Emergency was lifted due to the democratic spirit embedded in the veins of the Indian people. Remarking that he holds senior leaders in high regard and respects their long public services, the Prime Minister noted the achievements of leaders like Shri Mallikarjun Kharge and former Prime Minister Shri Deve Gowda. 

    Highlighting that the empowerment of the poor and their upliftment has never been as extensive as it has been during his Government’s tenure, Shri Modi remarked that the Government has designed schemes aimed at empowering the poor and enabling them to overcome poverty. He expressed his faith in the potential of the country’s poor, stating that given the opportunity, they can overcome any challenge. He emphasized that the poor have demonstrated their capability by taking advantage of these schemes and opportunities. “Through empowerment, 25 crore people have successfully risen out of poverty, which is a matter of pride for the Government”, he added. The Prime Minister noted that those who have emerged from poverty have done so through hard work, trust in the Government, and leveraging the schemes and today, they have formed a neo-middle class in the country.

    Emphasising the Government’s strong commitment to the neo-middle class and middle class, the Prime Minister remarked that their aspirations are a driving force for the country’s progress, providing new energy and a solid foundation for national development. He highlighted efforts to enhance the capabilities of the middle class & neo-middle class. He noted that a significant portion of the middle class has been exempted from taxes in the current budget. In 2013, the income tax exemption limit was up to ₹2 lakh, but it has now been increased to ₹12 lakh. The Prime Minister mentioned that individuals over 70 years of age, from any class or community, are benefiting from the Ayushman Bharat scheme, with significant advantages for the elderly in the middle class.

    “We have built four crore houses for citizens, with over one crore houses constructed in cities”, said Shri Modi. He remarked that there used to be significant fraud affecting home buyers, making it essential to provide protection. He emphasized that the enactment of the Real Estate (Regulation and Development) (RERA) Act in this Parliament has become a crucial tool in overcoming obstacles to the dream of home ownership for the middle class. The Prime Minister noted that the current budget includes the SWAMIH initiative, which allocates ₹15,000 crore to complete stalled housing projects, where the middle class’s money and facilities were stuck. He highlighted that this initiative aims to fulfill the dreams of the middle class.

    Pointing to the startup revolution, which has gained global recognition, the Prime Minister said that these startups are primarily driven by young people from the middle class. He remarked that the world is increasingly attracted to India, especially due to the G20 meetings held in 50-60 locations across the country. He emphasized that this has revealed the vastness of India beyond Delhi, Mumbai, and Bengaluru. He pointed out that the growing global interest in Indian tourism brings numerous business opportunities, greatly benefiting the middle class by providing various income sources.

    “The middle class today is filled with confidence, which is unprecedented and greatly strengthens the nation”, said Shri Modi. He expressed his firm belief that the Indian middle class is determined and fully prepared to realize the vision of a developed India, standing strong and moving forward together.

    Highlighting that the youth play a crucial role in building a developed India, the Prime Minister emphasized the demographic dividend, noting that students currently in schools and colleges will be the primary beneficiaries of a developed nation. He remarked that as the youth age, the country’s development journey will progress, making them a significant foundation for a developed India. He underscored that, over the past decade, strategic efforts have been made to strengthen the youth base in schools and colleges. He pointed out that for the past 30 years, there was little thought given to 21st-century education, and the previous attitude was to let things continue as they were. Shri Modi highlighted that the new National Education Policy (NEP) was introduced after almost three decades to address these issues. He mentioned that various initiatives under this policy, including the establishment of PM Shri Schools, aim to revolutionize education. He noted that approximately 10,000 to 12,000 PM Shri Schools have already been established, with plans to create more in the future. He also emphasized an important decision regarding the changes in the education policy which now includes provisions for education and examinations to be conducted in the mother tongue. Underlining the lingering colonial mindset regarding language in India, he stressed the injustice faced by children from poor, Dalit, tribal, and marginalized communities due to language barriers. The Prime Minister remarked on the necessity of education in one’s mother tongue, enabling students to pursue careers as doctors and engineers irrespective of their proficiency in English. He emphasized the significant reforms undertaken to ensure that children from all backgrounds can dream of becoming doctors and engineers. Furthermore, the Prime Minister underscored the expansion of Eklavya Model Residential Schools for tribal youth, noting the increase from around 150 schools a decade ago to 470 schools today, with plans to establish over 200 more.

    Further elaborating on the education reforms, Shri Modi said major reforms in Sainik Schools, introducing provisions for girls’ admission were undertaken. Emphasizing the importance and capability of these schools, he highlighted that hundreds of girls are currently studying in this patriotic environment, naturally fostering a sense of devotion to the country.

    Highlighting the significant role of the National Cadet Corps (NCC) in youth grooming, the Prime Minister remarked that those who have been associated with NCC know that it provides a golden opportunity for comprehensive development and exposure at a crucial age. He emphasized the unprecedented expansion of NCC in recent years, noting that the number of cadets has increased from approximately 14 lakh in 2014 to over 20 lakh today. 

    Emphasising the enthusiasm and eagerness of the country’s youth to achieve something new, even beyond routine tasks, Shri Modi remarked on the Swachh Bharat Abhiyan, observing that youth groups in many cities continue to advance the cleanliness campaign with their self-motivation. He noted that some young individuals work towards education in slums and various other initiatives. Seeing this, the Prime Minister highlighted the need to provide organized opportunities for the youth, leading to the launch of the “MY Bharat” or Mera Yuva Bharat movement. Today, over 1.5 crore youths have registered and are actively participating in discussions on contemporary issues, raising awareness in society, and pursuing positive actions with their own capabilities, without the need for spoon-feeding, he added.

    Touching upon the importance of sports in fostering sportsmanship and how a nation’s spirit flourishes where sports are widespread, the Prime Minister remarked that numerous initiatives have been launched to support sports talent, including unprecedented financial support and infrastructure development. He highlighted the transformative power of the Target Olympic Podium Scheme (TOPS) and the Khelo India initiative on the sports ecosystem. He added that over the past decade, Indian athletes have showcased their prowess in various sports events, with India’s youth, including young women, demonstrating the country’s strength on the global stage.

    Prime Minister emphasized the significance of infrastructure in transforming a developing nation into a developed one. He highlighted that both welfare schemes and infrastructure are crucial for a country’s growth, and underscored the need for timely completion of infrastructure projects. He noted that delays lead to wastage of taxpayers’ money and deprive the nation of benefits. Criticising the previous dispensations for its culture of delays and political interference in project execution, Shri Modi mentioned the establishment of the PRAGATI platform, which he personally reviews, for detailed monitoring of infrastructure projects, including real-time videography using drones and live interaction with stakeholders. He stated that projects worth approximately ₹19 lakh Crore were stalled due to coordination issues between the state and central governments or different departments. He highlighted a study by Oxford University that praised PRAGATI and suggested other developing countries could benefit from its experiences. Citing an example from Uttar Pradesh to illustrate past inefficiencies, the Prime Minister mentioned the Saryu Canal Project, approved in 1972, which remained stalled for five decades until it was completed in 2021. Highlighting the completion of the Udhampur-Srinagar-Baramulla railway line in Jammu and Kashmir, the Prime Minister remarked that the project was approved in 1994 but remained stalled for decades. Finally, after three decades, it was completed in 2025, he added. Shri Narendra Modi highlighted the completion of the Haridaspur-Paradip railway line in Odisha. He remarked that the project was approved in 1996 but remained stalled for years which was finally completed in 2019 during the current administration’s tenure. Elaborating further, the Prime Minister highlighted the completion of the Bogibeel Bridge in Assam, approved in 1998 and completed by his Government in 2018. He remarked that he could provide hundreds of examples illustrating the detrimental culture of delays prevalent in the past. He emphasized the need for a change in culture to ensure the timely completion of such vital projects and said that the significant setbacks caused by this culture during the previous dispensation, depriving the nation of its rightful progress. Underscoring the importance of proper planning and timely execution of infrastructure projects, the Prime Minister said to address this, the PM Gati Shakti National Master Plan was introduced. He encouraged states to utilize the PM Gati Shakti platform, which includes 1,600 data layers, to streamline decision-making and accelerate project implementation. The platform has become a vital foundation for expediting infrastructure work in the country, he added.

    Emphasising the necessity for today’s youth to understand the hardships their parents faced and the reasons behind the nation’s past condition, the Prime Minister remarked that without proactive decisions and actions over the past decade, the benefits of Digital India would have taken years to materialize. He highlighted that proactive decision-making and actions have enabled India to be timely and, in some cases, ahead of time. He further noted that 5G technology is now more widely available in India at one of the fastest rates globally. 

    Shri Modi drew attention to past experiences, highlighting that technologies such as computers, mobile phones, and ATMs reached many countries well before India, often taking decades to arrive. He remarked that even in the health sector, vaccines for diseases like smallpox and BCG were available globally while India lagged due to systemic inefficiencies.  The Prime Minister attributed these delays to poor governance of the past, where critical knowledge and implementation were tightly controlled, resulting in a “license permit raj” that stifled progress. He emphasized to the youth the oppressive nature of this system, hindering the nation’s development.

    Remarking on the early days of computer imports, highlighting that obtaining a license to import computers was a lengthy process that took years, the Prime Minister noted that this requirement significantly delayed the adoption of new technology in India.

    Pointing to the bureaucratic challenges of the past, the Prime Minister said that even obtaining cement for house construction required permission and during weddings, even getting sugar for tea required a license. He emphasized that these challenges occurred in post-independence India and pointed that the youth of today can understand the implications, questioning who was responsible for the bribes and where the money went.

    Highlighting the bureaucratic hurdles of the past, noting that purchasing a scooter required booking and payment, followed by a wait of 8-10 years, the Prime Minister remarked that even selling a scooter needed government permission. He emphasized the inefficiency in obtaining essential items, such as gas cylinders, which were distributed through coupons to MPs, and the long queues for gas connections. He noted the lengthy process for obtaining a telephone connection, stressing that today’s youth should be aware of these challenges. He remarked that those delivering grand speeches today should reflect on their past governance and its impact on the nation.

    “The restrictive policies and license raj that pushed India into one of the slowest economic growth rates globally”, said Shri Modi. He remarked that this weak growth rate came to be known as the “Hindu rate of growth,” which was an insult to a large community. He emphasized that the failure was due to the incompetence, lack of understanding, and corruption of those in power, which led to the mislabeling of an entire society as responsible for the slow growth.

    Criticizing the economic mismanagement and flawed policies of the past, which led to blaming and tarnishing an entire society, the Prime Minister remarked that historically, India’s culture and policies did not include restrictive license raj while Indians believed in openness and were among the first to engage in free trade globally. Shri Modi highlighted that Indian merchants traveled to distant lands for trade without any restrictions, which was part of India’s natural culture. He noted that the current global recognition of India’s economic potential and rapid growth brings pride to every Indian. “India is now seen as one of the fastest-growing countries, and the nation’s economy is expanding significantly”, he emphasised.

    Underlining that the nation is now breathing easy and soaring high after breaking free from the clutches of restrictive license raj and flawed policies, the Prime Minister remarked on the promotion of the “Make in India” initiative, aimed at boosting manufacturing in the country. He mentioned the introduction of the Production Linked Incentive (PLI) scheme and reforms related to Foreign Direct Investment (FDI). He emphasized that India has become the world’s second-largest mobile phone producer, transitioning from being predominantly an importer to an exporter of mobile phones.

    Emphasising India’s achievements in defense manufacturing, noting that defense product exports have increased tenfold over the past decade, the Prime Minister also highlighted the tenfold increase in solar module manufacturing. He stated “India is now the world’s second-largest steel producer” while machinery and electronic exports have seen rapid growth over the past decade. He also noted that toy exports have more than tripled, and agrochemical exports have increased significantly. “During the COVID-19 pandemic, India supplied vaccines and medicines to over 150 countries under the “Made in India” initiative”, said Shri Modi. He highlighted the rapid growth in exports of AYUSH and herbal products as well.

    Remarking on the lack of efforts by the previous Government to promote Khadi, stating that even the movement started during the freedom struggle was not advanced, the Prime Minister highlighted that the turnover of Khadi and Village Industries has surpassed ₹1.5 lakh Crore for the first time. He noted that production has quadrupled in the last decade, significantly benefiting the MSME sector and creating numerous employment opportunities across the country.

    Underscoring that all elected representatives are servants of the people, Shri Modi remarked that the mission of the country and society is paramount for public representatives, and it is their duty to work with a spirit of service. 

    Stressing on the collective responsibility of all Indians to embrace the vision of a developed India, the Prime Minister remarked that this is not just the resolve of a government or an individual but the commitment of 140 crore citizens. He warned that those who remain indifferent to this mission will be left behind by the nation. He highlighted the unwavering determination of India’s middle class and youth to propel the country forward.

    Underlining the importance of everyone’s role in the nation’s progress as it reaches new heights of development, Shri Modi remarked that opposition in Government is natural and essential in a democracy, as is opposition to policies. However, he warned that extreme negativism and attempts to diminish others instead of enhancing one’s own contributions could hinder the development of India. He stressed the need to free ourselves from such negativity and engage in continuous self-reflection and introspection. He expressed confidence that the discussions in the House would yield valuable insights that will be taken forward. He concluded by acknowledging the continuous inspiration derived from the President’s address and expressed heartfelt gratitude to the President and all honorable Members of Parliament. 

     

     

    ***

    MJPS/SR

    (Release ID: 2100467) Visitor Counter : 67

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: Michigan Man Charged with Drug Distribution and Loan Fraud

    Source: US Department of Health and Human Services – 3

    BOSTON – A Michigan man has been charged and has agreed to plead guilty in connection with a conspiracy to import and sell illegal pharmaceuticals, including opioids, and to fund the operation of the scheme by fraudulently obtaining a Covid pandemic relief loan.

    Donald Nchamukong, 37, was charged by Information with conspiracy to smuggle goods into the United States, to commit loan fraud and to distribute controlled substances.  Nchamukong will make an initial appearance in federal court in Boston on a date to be scheduled by the Court.

    According to the charging documents, starting in 2019 and continuing to 2022, Nchamukong and a co-conspirator, Doyal Kalita, conspired to distribute drugs to persons in the United States over the internet and using call centers in India. Nchamukong allegedly used shell companies, including a purported dietary supplements company and an auto parts supplier, and associated bank and merchant accounts to process sales of illegal foreign drugs, including the Schedule IV opioid, tramadol. Nchamukong and Kalita also received shipments of tramadol from India and reshipped the drug to customers across the United States, including in Massachusetts. When the Covid-19 pandemic hit, Nchamukong and Kalita allegedly fraudulently obtained a $200,000 Economic Injury Disaster Loan to fund their illegal drug scheme.  

    Kalita was convicted in 2024 and sentenced to 10 years in prison for orchestrating the online drug distribution scheme and a technical support fraud scheme and related money laundering.

    The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000, or twice the monetary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Fernando P. McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations made the announcement today. Valuable assistance was provided by Homeland Security Investigations in New York, Small Business Administration and the United States Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorney Kriss Basil, Deputy Chief of the Securities, Financial, and Cyber Fraud Unit, is prosecuting the case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, pleasehttps://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

  • MIL-OSI Global: Fines for term-time holidays are at record levels – this will further erode trust between parents and schools

    Source: The Conversation – UK – By Charlotte Haines Lyon, Associate Professor: Education, York St John University

    PeopleImages.com – Yuri A/Shutterstock

    Recently released government statistics show a record number of fines were given to parents for their children’s absence from school in 2023-24 in England. Of the 487,344 fines issued, 91% were for unauthorised family holidays.

    If these fines, known as fixed penalty notices, go unpaid or in some cases have been previously issued, parents are taken to court. In 2023-24, 28,296 parents were prosecuted over their children’s school attendance.

    Whether the fines have any effect on ensuring attendance is debatable. The figures show that thousands of parents are willing to book a term-time holiday anyway. But fines are certainly affecting the crucial relationship between schools and families.

    When I carried out my doctoral research between 2014 and 2016 on the relationships between schools and parents, these bonds were already quite fragile. People in my study argued that endless “dictats” from school built a “brick wall” rather than a partnership.

    Now, it’s likely that an increasingly strict application of attendance rules is further breaking down trust.

    Fines were first introduced by a Labour government in 2004 as a last resort to tackle truancy. In 2014, then education secretary Michael Gove widened the application of the fines. Local authorities were encouraged to use penalty notices for parents who took their children on holiday during school term time.

    Since Gove, education secretaries – including current education minister Bridget Phillipson – have insisted that every day matters in school, and that there are very few reasons to miss school. Holidays are seen as unacceptable.

    Since the pandemic, even more focus has been placed on attendance as persistent absence rates have increased.

    Trust between parents and school staff is very important.
    fizkes/Shutterstock

    Government statistics show a correlation between attendance and exam results. However, whether lower attendance causes lower results is difficult to prove, especially when factors such as poverty are taken into account.

    What’s more, when holiday absence has been analysed separately, this has not been found to have the same negative affect on achievement at school as other reasons for absence.

    The record number of fines issued last year came before new guidance was set in August 2024. Now, fixed penalty notices have risen from £60 to £80 for a first offence (if paid within 21 days) and to £160 for a second offence (if paid within 28 days). If parents receive two fixed penalty notices within three years, the next offence will result in prosecution. However, councils may choose prosecution earlier if they wish.

    Whereas previously there was more discretion and variance between authorities and schools, all headteachers must now consider the above approach if a child misses more than five days of school. It can only be assumed that the number of fines and prosecutions will increase.

    As a side-effect, we are seeing schools encouraged to clamp down on child illness for fear that parents are lying and are in fact on holiday. While government guidance says that in most cases a parent’s word should be enough evidence that their child is sick, it also states that evidence of illness should be requested in cases where there is “genuine and reasonable doubt about the authenticity of the illness”.

    This suggests that schools should be questioning their trust in their pupils’ parents. This is a fundamental break down of the school-parent relationship, not to mention a strain on NHS time.

    Why parents book term-time holidays

    Term-time holidays are often seen as a way for parents to book a cheaper break, as holidays are generally more expensive during school holidays. But, even leaving aside that many families may only be able to afford a holiday at all if it is taken in term time due to the cost of living crisis, the situation is more complicated.

    There are many reasons for taking holidays within school term time. Families might be visiting relatives overseas for a wedding, funeral or because of a family member’s terminal illness. Often, a school might grant one day of absence, but no more.

    Parents may be unable to take leave from work during school holidays as a result of the industry they work in. They may have family members who work away for long periods, and want to spend time together with the children when they return. They may have a child with particular needs who is unable to cope with busy holiday times, or children in different schools with different holiday periods.

    Relationship breakdown

    When a headteacher refuses to authorise such a holiday this leads to resentment from parents. Resentment like this may cause some to withdraw children from school and choose to home educate.

    There is some effort now for schools to offer support first before legal intervention for families who might have attendance issues for other reasons, such as emotionally based school avoidance. But there is little to no desire to work with families around their complex needs for holidays.

    Partnership with parents is often touted by schools as central to pupils’ wellbeing, progress and attainment. But the power in this partnership is often skewed towards the professionals.

    Parents and schools should work together for the good of children. This does not simply mean parents obeying schools; that is not a recipe for partnership. Instead, it means understanding the different contexts that families and teachers live and work in. If parent engagement is essential to wellbeing and school progress, it is not worth continuing down the road of alienation and punishment.

    Dr Charlotte Haines Lyon is affiliated with Labour Party and UNISON.

    – ref. Fines for term-time holidays are at record levels – this will further erode trust between parents and schools – https://theconversation.com/fines-for-term-time-holidays-are-at-record-levels-this-will-further-erode-trust-between-parents-and-schools-249085

    MIL OSI – Global Reports –

  • MIL-OSI Global: Long COVID: women at greater risk compared to men – could immune system differences be the cause?

    Source: The Conversation – UK – By Helen McGettrick, Reader in Inflammation and Vascular Biology, University of Birmingham

    Women had a 1.3 times higher chance of developing long COVID than men. Daisy Daisy/ Shutterstock

    About 5% of people who catch COVID have long-lasting symptoms. In these people, loss of smell, dizziness, fatigue and other hallmark COVID symptoms can persist for months after the initial illness. Yet even five years after the COVID pandemic began, we still don’t know why some people develop long COVID and others don’t.

    But a recent study brings us a step closer to understanding who is at greatest risk of developing long COVID. The study found that women have a much higher risk of developing long COVID compared to men.

    Published in Jama Network Open, the paper investigated symptoms of long COVID in 12,276 adults. Each participant had had COVID at least six months earlier. Using a questionnaire, participants gave information on their current symptoms, allowing researchers to identify those with long COVID.

    While previous research has also uncovered a similarly increase long COVID risk in women, these studies had small sample sizes and didn’t consider certain factors that may have distorted the findings.

    The new study took these various factors into account in their analysis, including a participant’s age, race, vaccination status and whether they had any other health conditions. This allowed them to better calculate the risks of developing long COVID for men and women.

    Their results indicated that women had 31% higher chance of developing long COVID than men.

    When broken down by age, this difference disappeared in people aged 18-39. However, the risk was even greater in women aged 40-54, who had a 48% higher risk of developing the condition compared with men. Women over 55 had a 34% higher risk of developing long COVID.

    Interestingly, this finding is contrary to data on COVID infection severity, which shows men are more prone to developing severe symptoms. They also make up around two out of three COVID deaths.

    While researchers don’t currently know why women are at greater risk of long COVID, differences in the way men’s and women’s immune systems respond to COVID could be a factor.

    Immune differences

    The immune system is a fascinating, complicated system with many different types of cell, each of which has a specific role in fighting infection.

    For instance, B cells make antibodies that target infections, while non-classical monocytes regulate immune function and clear up dead and damaged cells. Our cytotoxic T cells kill virus-infected cells, while helper T cells help activate other immune cells and signal that there’s an issue.

    But the proportion and type of immune cells that circulate in the body can differ by sex and age.

    For example, older women have lower proportions of cytotoxic and helper T cells, higher percentages of activated B cells and a higher total number of non-classical monocytes compared to younger men and women.

    People with long COVID also have a higher number of non-classic monocytes and more activated B cells compared to those who didn’t have long COVID. Given that older women already have a higher proportion of these cell types even before an infection, it’s possible that this may explain why they were at the greatest risk of developing long COVID.

    The study found peri-menopausal women and women who had reached the menopause had the greatest risk of developing long COVID.
    Gladskikh Tatiana/ Shutterstock

    But these aren’t the only immune function differences in women that may account for their greater risk of long COVID.

    Women generally have a more intense immune response to infections than men – including against COVID. This more intense response can mainly be accounted for by differences in hormones and the fact that women have two X chromosomes.

    In particular, the hormone oestrogen plays a vital role in controlling the immune system. Oestrogen helps contribute to the enhanced immune response that occurs when a person develops an infection. The severe drop in oestrogen that occurs during the menopause may also explain why women are more susceptible to an infection and longer lasting diseases.



    Read more:
    How biological differences between men and women alter immune responses – and affect women’s health

    In this recent Jama study, peri-menopausal women and women who had reached the menopause were at greatest risk of developing long COVID. This suggests oestrogen may be a contributing factor.

    After fighting an infection, immune cells should die off – stopping prolonged, uncontrolled damage to the body. While the more intense immune response women have to an infection may be beneficial in reducing the initial severity of the COVID infection, this persistent, heightened immune response and any damage it causes to the body may increase the possibility of long COVID occurring.

    Such prolonged, higher intensity immune responses are known to promote the development of autoimmune diseases – where the body’s immune system attacks itself. Women have a higher prevalence of many autoimmune conditions, including rheumatoid arthritis, Sjogren’s and multiple sclerosis.

    Although COVID isn’t an autoimmune disease, autoantibodies (proteins released by B cells that attack the body’s own cells and tissues) have been found in people with long COVID. These antibodies promote long COVID symptoms. Possibly women are at greater risk of long COVID for the same reasons they’re at greater risk of developing an autoimmune condition.

    The findings from this recent study add to our understanding of long COVID – pointing to which groups are at greatest risk of developing the condition. More work needs to be done to explore differences in how long COVID differs based on sex and age – and the mechanisms that trigger long COVID to begin with.

    Through understanding the who and why of long COVID, it might allow for new treatments to be developed.

    Helen McGettrick receives funding from Medical Research Council, Wellcome Trust, Wellcome Leap, Helmsley Foundation and ROCHE. She is also an elected member of British Society of Immunology Congress Committee.

    Jonathan Lewis receives funding from the Wellcome Trust and the British Society of Immunology (CARINA).

    – ref. Long COVID: women at greater risk compared to men – could immune system differences be the cause? – https://theconversation.com/long-covid-women-at-greater-risk-compared-to-men-could-immune-system-differences-be-the-cause-248700

    MIL OSI – Global Reports –

  • MIL-OSI USA: Kennedy in National Review: Work requirements would improve Medicaid—and the lives of those on the program

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    WASHINGTON – Sen. John Kennedy (R-La.) today penned this op-ed in National Review arguing that adding a work requirement to Medicaid would save taxpayers money and improve the health of those on the program.

    Key excerpts of the op-ed are below:

    “Medicaid is supposed to be an investment in our country’s health and well-being. So why doesn’t the program encourage more Americans to enter the workforce and improve their physical, mental, and financial health?

    “Numerous studies have shown that human beings are happier and healthier when they are employed. Long-term joblessness is associated with higher rates of cardiovascular disease, depression, and anxiety. One study even recommended employment as a ‘critical mental health intervention.’

    “Still, taxpayers today are footing the bill for an estimated 15 million able-bodied adults without children or other dependents to receive health-care coverage under Medicaid without any obligation to get a job. Many of them are simply choosing not to work. Both the taxpayer and the Medicaid recipients themselves would be better off if the program had a work requirement.”

    . . .

    “Nearly one in four Americans is on Medicaid today. Federal and state spending on the program has nearly doubled since 2020. COVID-19 was responsible for some of the spending surge, but there has been no effort to return Medicaid spending back to pre-pandemic levels.

    “This is unsustainable. Medicaid is well on its way to costing taxpayers $1 trillion per year. Congress must find a way to get able-bodied Americans back on their feet and off Medicaid. With the right incentives in place, these Americans can leave this life of poverty and dependency to set out on a pathway toward success.

    “A person without a job is not healthy. He’s not happy. He’s not free. Who really wants to be a slave to some government entitlement program?”

    . . .

    “Medicaid is an investment in our public health. Congress should treat it that way. Adding a work requirement to Medicaid will make the United States a stronger, healthier country and remind the world that America respects the dignity of hard work.”

    Read Kennedy’s full op-ed here.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Flu and COVID-19 surveillance reports bulletin 2025

    Source: United Kingdom – Executive Government & Departments

    This bulletin (formally Weekly Winter Briefing) brings together the latest surveillance data, along with the latest public health advice for flu, COVID-19, RSV and other viruses common in winter.

    For updates from previous years, see Flu and COVID-19 surveillance reports published up to week 52 2024

    Latest update

    Thursday 6 February 2025

    In week 5:

    • influenza (flu) activity overall decreased across most indicators and was at medium activity levels – there continues to be an increase in influenza B across some indicators
    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels overall

    For more information see the flu, COVID-19 and RSV surveillance report and norovirus surveillance report.

    Flu surveillance data

    In week 5:

    • flu activity overall decreased across most indicators and was at medium activity levels – there continues to be an increase in influenza B across some indicators
    • flu positivity decreased with a weekly mean positivity rate of 14%, compared to 15.6% in the previous week, this is based on a percentage of people who test positive among those with symptoms tested
    • overall, flu hospitalisations decreased slightly to 6.40 per 100,000 population, compared with 7.00 per 100,000 in the previous week
    • in week 5, the weekly influenza-like illnesses (ILI) General Practice (GP) consultation rate decreased to 13.9 per 100,000 compared with 15.4 per 100,000 in the previous week
    • reporting of the weekly influenza vaccine uptake for the 2024 to 2025 season concluded last week
    • up to the end of week 4 (week ending 26 January 2025), vaccine uptake was 39.7% for those under 65 years in a clinical risk group, 34.8% in all pregnant women and 74.6% for all those aged 65 years and over
    • uptake was 41.4% for children aged 2 years of age and 43.2% for children aged 3 years of age

    COVID-19 surveillance data

    In week 5:

    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • COVID-19 positivity in hospital settings remained stable with a weekly mean positivity rate of 2.5% compared with 2.4% in the previous week
    • COVID-19 hospitalisations remained stable at 1.15 per 100,000 compared to 1.12 per 100,000 in the previous week
    • COVID-19 ICU admissions remained stable at 0.03 per 100,000 compared with 0.03 per 100,000 in the previous week
    • there were 9 COVID-19 acute respiratory incidents reported in week 4
    • the highest hospital admission rate was in the North-West, which increased to 1.79 per 100,00 compared with 1.36 per 100,000 in the previous week
    • those aged 85 years and over had the highest hospital admission rate, which increased to 13.84 per 100,000 compared with 11.78 per 100,000 in the previous week  
    • up to the end of week 5 (week ending 2 February 2025), 23.6% of those under 65 years in a clinical risk group and 59.3% of all people aged over 65 years old, who are living and resident in England had been vaccinated

    Respiratory syncytial virus (RSV) surveillance data

    In week 5:

    • respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels overall
    • emergency department attendances for acute bronchiolitis remained stable
    • RSV positivity decreased to 2.5% compared with 3.9% in the previous week
    • overall, hospital admissions decreased to 1.06 per 100,000 compared with 1.42 per 100,000 in the previous week

    UKHSA monitors Human metapneumovirus (hMPV) detections in patients seen in GP practices or tested by hospital laboratories and reports on this in the weekly surveillance report.

    hMPV is a common respiratory infection in winter and current levels are expected at this time of year. Infections are usually mild, causing symptoms of a common cold. Most people have had hMPV by the time they are five years old and catch it again throughout their lives. In week 5, hMPV laboratory test positivity increased slightly to 4.2% from 3.8% in the previous week.

    Dr Alexander Allen, Consultant Epidemiologist at UKHSA, said: 

    We’re pleased to see that the downward trend in flu activity has continued into this week.

    If you have already had your flu vaccine this season, you can be reassured that the vaccine offers the best defence and protects against multiple strains. The predominant circulating flu strain continues to be A H1N1 clade 5a.2a. and the flu vaccine is well matched.

    If you’re eligible and haven’t yet had your flu vaccine, it’s important that you take this offer up if available through local services. This includes anyone recently pregnant or newly diagnosed as in an eligible clinical risk group.

    If you have symptoms of flu or COVID-19 such as a high temperature, cough and feeling tired and achy, try to limit your contact with others, especially those who are vulnerable. If you have symptoms and need to leave the house, our advice remains that you should consider wearing a face covering. Washing hands regularly and using and disposing tissues in bins can reduce the spread of respiratory illnesses, as can ensuring that indoor areas are well ventilated.

    Norovirus surveillance data

    In week 4:

    • norovirus reports in the 2-week period between 13 January 2025 to 26 January 2025 were 15% higher than the previous 2-week period
    • the total number of reports was 114.5% higher than the 5-season average for the same 2-week period – reporting remained highest in adults aged 65 years and over
    • rotavirus reporting increased in recent weeks but was within expected levels during the 2-week period of weeks 3 and 4 of 2025
    • the number of norovirus outbreaks reported to the Hospital Norovirus Outbreak Reporting System (HNORS) since the start of the 2024/2025 season is 15.8% higher than the 5-season average
    • while some of the increased reporting may be attributable to the increased use of PCR multiplex technology (capable of detecting multiple gastrointestinal pathogens in one test), it is likely that the emergence of an unusual norovirus genotype, GII.17, as well as changes in the epidemiology following the COVID-19 pandemic and other factors are contributing to the observed rise
    • during the 2024/2025 season to date, the majority (90.7%) of samples characterised were norovirus genogroup 2 (GII), of which the most frequently identified genotype was GII.17 (55.4%), an increase of this genotype has also been observed in other counties during 2024 and is being closely monitored – at present there is no indication it leads to more severe illness (note: it isn’t accurate to refer to GII.17 as ‘Kawasaki’ and this term is causing confusion with Kawasaki Disease, which is an unrelated disease)
    • laboratory reports represent just a small proportion of total norovirus cases and it has been estimated that for every case of norovirus reported to national surveillance in the UK there are about 288 in the community that go unreported, representing an annual burden of around 3 million cases
    • norovirus symptoms include nausea, vomiting and diarrhoea but can also include a high temperature, abdominal pain and aching limbs
    • norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time

    Amy Douglas, Epidemiologist at UKHSA said:

    Norovirus cases are way above what we would usually see at this time of year and outbreaks in hospitals continue to rise. Just because you’ve had norovirus doesn’t mean you won’t get it again.

    It’s really important that if you have diarrhoea and vomiting, you take steps to avoid passing the infection on, including not  visiting people in hospitals and care homes.

    Do not return to work, school or nursery until 48 hours after your symptoms have stopped and don’t prepare food for others in that time either. This is because you can still pass on the virus in the days after you stop being sick.

    Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so don’t rely on these alone.

    Norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time.

    Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so don’t rely on these alone.

    Previous

    Thursday 30 January 2025

    This bulletin (formally Weekly Winter Briefing) brings together the latest surveillance data, along with the latest public health advice for flu, COVID-19, RSV and other viruses common in winter.

    In week 4:

    • influenza activity overall decreased across most indicators and was at medium activity levels – there continues to be an increase in influenza B across some indicators
    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • respiratory syncytial virus (RSV) activity showed a mixed picture and was circulating at low levels overall

    For more information see the flu, COVID-19 and RSV surveillance report and norovirus surveillance report.

    Flu surveillance data for week 4

    • Flu activity overall decreased across most indicators and was at medium activity levels. There continues to be an increase in influenza B across some indicators.
    • Flu positivity decreased with a weekly mean positivity rate of 15.6%, compared to 27.4% in the previous week. This is based on a percentage of people who test positive among those with symptoms tested.
    • Overall, flu hospitalisations decreased to 7.13 per 100,000 population, compared with 8.51 per 100,000 in the previous week.
    • For primary care surveillance, due to a technical issue in processing the data, the influenza-like-illness (ILI) consultations indicator has not been updated this week. In week 3, the weekly ILI General Practice (GP) consultation rate decreased to 17 per 100,000 compared with 23.1 per 100,000 in the previous week.
    • Up to the end of week 4 (week ending 26 January 2025), vaccine uptake was 39.7% for those under 65 years in a clinical risk group, 34.8% in all pregnant women and 74.6% for all those aged 65 years and over. Uptake was 41.4% for children aged 2 years of age and 43.2% for children aged 3 years of age.

    COVID-19 surveillance data for week 4

    • COVID-19 activity remained stable across most indicators and was at baseline activity levels.
    • COVID-19 positivity in hospital settings remained stable with a weekly mean positivity rate of 2.4% compared with 2.4% in the previous week.
    • COVID-19 hospitalisations decreased to 1.13 per 100,000 compared to 1.33 per 100,000 in the previous week.
    • COVID-19 ICU admissions remained stable at 0.03 per 100,000 compared with 0.05 per 100,000 in the previous week.
    • There were 11 COVID-19 acute respiratory incidents reported in week 4.
    • The highest hospital admission rate was in the North-East, which decreased to 2.37 per 100,00 compared with 2.74 per 100,000 in the previous week. 
    • Those aged 85 years and over had the highest hospital admission rate, which decreased to 11.86 per 100,000 compared with 15.14 per 100,000 in the previous week.  
    • Up to the end of week 4 (week ending 26 January 2025), 23.6% of those under 65 years in a clinical risk group and 59.3% of all people aged over 65 years old, who are living and resident in England had been vaccinated.

    Respiratory syncytial virus (RSV) surveillance data for week 4

    • Respiratory syncytial virus (RSV) activity showed a mixed picture and was circulating at low levels overall.
    • Emergency department attendances for acute bronchiolitis remained stable.
    • RSV positivity decreased slightly to 3.8% compared with 4.2% in the previous week.
    • Overall, hospital admissions increased to 1.42 per 100,000 compared with 1.20 per 100,000 in the previous week.
    • UKHSA monitors Human metapneumovirus (hMPV) detections in patients seen in GP practices or tested by hospital laboratories and reports on this in the weekly surveillance report. hMPV is a common respiratory infection in winter and current levels are expected at this time of year. Infections are usually mild, causing symptoms of a common cold and most people have had hMPV by the time they are five years old and catch it again throughout their lives. In week 4, hMPV laboratory test positivity decreased to 3.9% from 4.5% in the previous week.

    Dr Alexander Allen, Consultant Epidemiologist at UKHSA, said: 

    We’re continuing to see flu activity decrease, which is really promising at this stage in the season. People are still reminded to take protective measures to ensure we keep cases down as we have seen a recent increase in cases of influenza B amongst children, although this is to be expected at this time of year.

    The vaccine offers the best defence against flu and protects against multiple flu strains, including B strains. The predominant circulating flu strain continues to be A H1N1 clade 5a.2a. Analysis by UKHSA laboratory scientists shows that the H1N1 component of the flu vaccine is well matched.

    If you’re eligible and have not yet had your flu vaccine, it’s important that you take this offer up if available through local services. This includes anyone recently pregnant or newly diagnosed as in an eligible clinical risk group.

    If you have symptoms of flu or COVID-19 such as a high temperature, cough and feeling tired and achy, try to limit your contact with others, especially those who are vulnerable. If you have symptoms and need to leave the house, our advice remains that you should consider wearing a face covering. Washing hands regularly and using and disposing tissues in bins can reduce the spread of respiratory illnesses, as can ensuring that indoor areas are well ventilated.

    Norovirus surveillance data for week 3

    • Norovirus reports in the 2-week period between 6 January 2025 to 19 January 2025 were 18.3% higher than the previous 2-week period. The total number of reports was 113.3% higher than the 5-season average for the same 2-week period. Reporting remained highest in adults aged 65 years and over.
    • Rotavirus reporting has started to increase again in recent weeks but was within expected levels during the 2-week period of weeks 2 and 3 of 2025.
    • The number of norovirus outbreaks reported to the Hospital Norovirus Outbreak Reporting System (HNORS) since the start of the 2024/2025 season is 14.3% higher than the 5-season average.
    • While some of the increased reporting may be attributable to the increased use of PCR multiplex technology (capable of detecting multiple gastrointestinal pathogens in one test), it is likely that the emergence of an unusual norovirus genotype, GII.17, as well as changes in the epidemiology following the COVID-19 pandemic and other factors are contributing to the observed rise.
    • During the 2024/2025 season to date, the majority (90.4%) of samples characterised were norovirus genogroup 2 (GII), of which the most frequently identified genotype was GII.17 (56.3%), an increase of this genotype has also been observed in other counties during 2024 and is being closely monitored — at present there is no indication it leads to more severe illness (note: it is not accurate to refer to GII.17 as ‘Kawasaki’ and this term is causing confusion with Kawasaki Disease, which is an unrelated disease)
    • Laboratory reports represent just a small proportion of total norovirus cases and it has been estimated that for every case of norovirus reported to national surveillance in the UK there are about 288 in the community that go unreported, representing an annual burden of around 3 million cases.
    • Norovirus symptoms include nausea, vomiting and diarrhoea but can also include a high temperature, abdominal pain and aching limbs. Norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time.

    Amy Douglas, Epidemiologist at UKHSA said:

    Norovirus cases are over double what we would usually see at this time of year. This isn’t just unpleasant for those affected – it’s having a big impact on hospitals and care homes.

    It’s really important that if you have diarrhoea and vomiting, you take steps to avoid passing the infection on. Please avoid visiting people in hospitals and care homes to prevent passing on the infection in these settings.

    Do not return to work, school or nursery until 48 hours after your symptoms have stopped and don’t prepare food for others in that time either. This is because you can still pass on the virus in the days after you stop being sick.

    Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so do not rely on these alone.

    Previous

    Thursday 23 January 2025

    This bulletin (formally Weekly Winter Briefing) brings together the latest surveillance data, along with the latest public health advice for flu, COVID-19, RSV and other viruses common in winter.

    In week 3:

    • influenza activity overall decreased across most indicators and was at medium activity levels; however, laboratory surveillance indicated an increase in influenza B
    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels of activity

    For more information see the flu, COVID-19 and RSV surveillance report and norovirus surveillance report.

    Flu surveillance data for week 3

    • Flu activity overall decreased across most indicators and was at medium activity levels. However, laboratory surveillance indicated an increase in influenza B.
    • Flu positivity decreased with a weekly mean positivity rate of 17.5%, compared to 21.1% in the previous week. This is based on a percentage of people who test positive among those with symptoms tested.
    • Overall, flu hospitalisations decreased to 8.41 per 100,000 population, compared with 9.92 per 100,000 in the previous week.
    • The weekly influenza-like illnesses (ILI) general practice (GP) consultation rate decreased to 17 per 100,000 compared with 23.1 per 100,000 in the previous week.
    • Up to the end of week 3 (week ending 19 January 2025), vaccine uptake was 39.5% for those aged under 65 years in a clinical risk group, 34.5% in all pregnant women and 74.4% for all those aged 65 years and over. Uptake was 41.2% for children aged 2 years of age and 43% for children aged 3 years of age.
    • Some indicators suggested an increase in flu activity in children over the last week, this is in line with an expected increase in respiratory virus activity in children following the post Christmas return to school.

    COVID-19 surveillance data for week 3

    • COVID-19 activity remained stable across most indicators and was at baseline activity levels.
    • COVID-19 positivity in hospital settings increased slightly with a weekly mean positivity rate of 2.4%, compared to 2.2% in the previous week. 
    • COVID-19 hospitalisations remained stable at 1.32 per 100,000 compared to 1.35 per 100,000 in the previous week.
    • COVID-19 ICU admissions remained stable at 0.04 per 100,000 compared with 0.04 per 100,000 in the previous week.
    • There were 10 COVID-19 acute respiratory incidents reported in week 3.
    • The highest hospital admission rate was in the North-East, which remained stable at 2.74 per 100,000, compared with 2.78 per 100,000 in the previous week.
    • Those aged 85 years and over had the highest hospital admission rate, which decreased slightly to 14.65 per 100,000 compared with 15.45 per 100,000 in the previous week.  
    • Up to the end of week 3 (week ending 19 January 2025), 23.6% of those under 65 years in a clinical risk group and 59.3% of all people aged over 65 years old, who are living and resident in England had been vaccinated.

    Respiratory syncytial virus (RSV) surveillance data for week 3

    • Respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels overall.
    • Emergency department attendances for acute bronchiolitis increased.
    • RSV positivity decreased slightly to 4.2% compared with 4.7% in the previous week.
    • Overall, hospital admissions decreased to 1.21 per 100,000 compared with 1.57 per 100,000 in the previous week.
    • UKHSA monitors Human metapneumovirus (hMPV) detections in patients seen in GP practices or tested by hospital laboratories and reports on this in the weekly surveillance report. Most people have had hMPV by the time they are 5 years old and catch it again throughout their lives. In week 3, Human metapneumovirus (hMPV) laboratory test positivity increased to 4.9% from 3.5% in the previous week.

    Dr Jamie Lopez Bernal, Consultant Epidemiologist at UKHSA, said: 

    It’s encouraging that flu activity is continuing to decrease this week and is currently circulating at medium levels. Flu positivity has decreased by 3.6% this week, but we should remember that flu season is not over yet and people should continue to take protective measures to keep us on this downward trend.

    We’re monitoring a slight increase in Influenza B positivity this week, which is to be expected towards the end of winter and the vaccine protects against multiple flu strains, including B. The predominant circulating flu strain continues to be A H1N1 clade 5a.2a. Analysis by UKHSA laboratory scientists shows that the H1N1 component of the flu vaccine is well matched.

    If you’re eligible and have not yet had your flu vaccine, it’s important that you take this offer up if available through local services. This includes anyone recently pregnant or newly diagnosed as in an eligible clinical risk group.

    If you have symptoms of flu or COVID-19 such as a high temperature, cough and feeling tired and achy, try to limit your contact with others, especially those who are vulnerable. If you have symptoms and need to leave the house, our advice remains that you should consider wearing a face covering. Washing hands regularly and using and disposing tissues in bins can reduce the spread of respiratory illnesses.

    Norovirus surveillance data for week 2

    • Norovirus reports in the 2-week period between 30 December 2024 to 12 January 2025 were 12% higher than the previous 2-week period. The total number of reports was 89.8% higher than the 5-season average for the same 2-week period.
    • Rotavirus reporting has started to increase again in recent weeks but was within expected levels during the 2-week period of weeks 1 and 2 of 2025.
    • The number of norovirus outbreaks reported to the Hospital Norovirus Outbreak Reporting System (HNORS) since the start of the 2024/2025 season is 7.2% higher than the 5-season average.
    • During weeks 1 and 2 of 2025, reporting remained highest in adults aged 65 years and over.
    • While some of the increased reporting may be attributable to the increased use of PCR multiplex technology (capable of detecting multiple gastrointestinal pathogens in one test), it is likely that the emergence of an unusual norovirus genotype, GII.17, as well as changes in the epidemiology following the COVID-19 pandemic and other factors are contributing to the observed rise.
    • During the 2024/2025 season to date, the majority (90.5%) of samples characterised were norovirus genogroup 2 (GII), of which the most frequently identified genotype was GII.17 (58%), an increase of this genotype has also been observed in other counties during 2024 and is being closely monitored — at present there is no indication it leads to more severe illness (note: it isn’t accurate to refer to GII.17 as ‘Kawasaki’ and this term is causing confusion with Kawasaki Disease, which is an unrelated disease).
    • Laboratory reports represent just a small proportion of total norovirus cases and it has been estimated that for every case of norovirus reported to national surveillance in the UK there are about 288 in the community that go unreported, representing an annual burden of around 3 million cases.
    • Norovirus symptoms include nausea, vomiting and diarrhoea but can also include a high temperature, abdominal pain and aching limbs. Norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time.

    Amy Douglas, Epidemiologist at UKHSA said:

    Norovirus activity has remained high in recent weeks and has started to increase again, as we expected following the post-Christmas return to school and work.

    If you have diarrhoea and vomiting, you can take steps to avoid passing the infection on. Do not return to work, school or nursery until 48 hours after your symptoms have stopped and do not prepare food for others in that time either. If you are unwell, avoid visiting people in hospitals and care homes to prevent passing on the infection in these settings. Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so do not rely on these alone.

    Previous

    Thursday 16 January 2025

    This bulletin (formally Weekly Winter Briefing) brings together the latest surveillance data, along with the latest public health advice for flu, COVID-19, RSV and other viruses common in winter.

    In week 2:

    • influenza (flu) activity showed a mixed picture with some recent decline, and was circulating at medium levels
    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • Respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels of activity

    For more information, see the flu, COVID-19 and RSV surveillance report and norovirus surveillance report.

    Flu surveillance data for week 2

    • Flu activity showed a mixed picture with some indicators suggesting that activity may have reached a peak, and declined in recent weeks to medium levels
    • Flu positivity decreased with a weekly mean positivity rate of 20.9%, compared to 28.4% in the previous week (this is based on a percentage of people who test positive among those with symptoms tested)
    • Overall, flu hospitalisations decreased to medium levels of 9.47 per 100,000 population, compared with 13.43 per 100,000 in the previous week.
    • The weekly influenza-like illnesses (ILI) General Practice (GP) consultation rate increased to 23.1 per 100,000 compared with 20.6 per 100,000 in the previous week. Note that this is not considered to indicate rising activity as it follows two weeks with bank holidays, in which the number of GP appointments available was reduced
    • Up to the end of week 2 (week ending 12 January 2025), vaccine uptake stood at 39.1% of those under 65 years in a clinical risk group, 34.2% in all pregnant women and 74.1% in all those aged 65 years and over, 41.1% of children aged 2 years of age and 42.7% of children aged 3 years of age have been vaccinated

    COVID-19 surveillance data for week 2

    • COVID-19 activity remained stable across most indicators and was circulating at baseline levels
    • COVID-19 positivity in hospital settings decreased slightly with a weekly mean positivity rate of 2.1%, compared to 2.3% in the previous week
    • COVID-19 hospitalisations remained stable at 1.34 per 100,000 compared to 1.39 per 100,000 in the previous week
    • COVID-19 ICU admissions remained stable at 0.04 per 100,000 compared with 0.06 per 100,000 in the previous week
    • There were 8 COVID-19 acute respiratory incidents reported in week 2
    • The highest hospital admission rate was in the North-East, which remained stable at 2.74 per 100,000, compared with 2.78 per 100,000 in the previous week
    • Those aged 85 years and over had the highest hospital admission rate, which remained stable at  15.47 per 100,000 compared with 15.13 per 100,000 in the previous week  
    • Up to the end of week 2 (week ending 12 January 2025), 23.6% of those under 65 years in a clinical risk group and 59.2% of all people aged over 65 years old, who are living and resident in England had been vaccinated

    Respiratory Syncytial Virus (RSV) surveillance data for week 2

    • Respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels overall
    • Emergency department attendances for acute bronchiolitis decreased
    • RSV positivity decreased to 4.7% compared with 6.2% in the previous week

    • Overall, hospital admissions decreased to 1.52 per 100,000 compared with 2.10 per 100,000 in the previous week

    • UKHSA monitors Human metapneumovirus (hMPV) detections in patients seen in GP practices or tested by hospital laboratories and reports on this in the weekly surveillance report. Most people have had hMPV by the time they are five years old and catch it again throughout their lives. In week 2, Human metapneumovirus (hMPV) laboratory test positivity decreased to 3.5% from 4.6% in the previous week

    Dr Conall Watson, Consultant Epidemiologist at UKHSA, said: 

    Flu activity is currently heading in the right direction, falling from high to medium levels overall this week. One of our key indicators is the percentage of positive flu tests, and this has come down from 28% to 21%. This is promising but we are nowhere near out of flu season yet. Mixing increases in January as people return to workplaces and schools which increases the chances for flu viruses to spread. 

    We urge everyone to do their bit to keep us on this downward trend.  If you have symptoms of flu or COVID-19 such as a high temperature, cough and feeling tired and achy, try to limit your contact with others, especially those who are vulnerable. If you have symptoms and need to leave the house, our advice remains that you should consider wearing a face covering. Washing hands regularly and using and disposing tissues in bins can reduce the spread of respiratory illnesses.

    If you’re eligible and haven’t yet had your flu vaccine, it’s important that you take this offer up if available through local services. This includes anyone recently pregnant or newly diagnosed as in an eligible clinical risk group.

    The vaccine protects against multiple flu strains and we are monitoring influenza type B activity closely as this can rise towards the end of winter. The predominant circulating flu strain continues to be A H1N1 clade 5a.2a. Analysis by UKHSA laboratory scientists shows that the H1N1 component of the flu vaccine is well matched.

    Norovirus surveillance data for week 1

    • Norovirus reports in the 2-week period between 23 December to 05 January 2024 were 6.7% lower than the previous 2-week period, although have increased in week 1 of 2025.
    • The decrease over the festive period has also been seen in previous years should be interpreted with caution as likely reflects changes in patterns of healthcare use, social mixing and lagged reporting due to the Christmas holidays, as well as the impact of school holidays. However, the total number of reports was 70.1% higher than the 5-season average for the same 2-week period.
    • Rotavirus reporting has decreased in recent weeks and was within expected levels during the 2-week period of weeks 52 of 2024 and 1 of 2025.
    • The number of norovirus outbreaks reported to the Hospital Norovirus Outbreak Reporting System (HNORS) since the start of the 2024/2025 season is 8.7% higher than the 5-season average.
    • Norovirus reporting remained high across all regions of England and all age groups, with the highest number of reports in adults aged 65 years and over.
    • While some of the increased reporting may be attributable to the increased use of PCR multiplex technology (capable of detecting multiple gastrointestinal pathogens in one test), it is likely that the emergence of an unusual norovirus genotype, GII.17, as well as changes in the epidemiology following the COVID-19 pandemic and other factors are contributing to the observed rise.
    • During the 2024/2025 season to date, the majority (90.4%) of samples characterised were norovirus genogroup 2 (GII), of which the most frequently identified genotype was GII.17 (58.1%), an increase of this genotype has also been observed in other counties during 2024 and is being closely monitored — at present there is no indication it leads to more severe illness (note: it isn’t accurate to refer to GII.17 as ‘Kawasaki’ and this term is causing confusion with Kawasaki Disease, which is an unrelated disease)
    • Laboratory reports represent just a small proportion of total norovirus cases and it has been estimated that for every case of norovirus reported to national surveillance in the UK there are about 288 in the community that go unreported, representing an annual burden of around 3 million cases.
    • Norovirus symptoms include nausea, vomiting and diarrhoea but can also include a high temperature, abdominal pain and aching limbs. Norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time.

    Amy Douglas, Epidemiologist at UKHSA said:

    Norovirus activity remains high.

    If you have diarrhoea and vomiting, you can take steps to avoid passing the infection on. Do not return to work, school or nursery until 48 hours after your symptoms have stopped and don’t prepare food for others in that time either. If you are unwell, avoid visiting people in hospitals and care homes to prevent passing on the infection in these settings.  > Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so don’t rely on these alone.

    Previous

    Thursday 09 January 2025

    This bulletin (formally Weekly Winter Briefing) brings together the latest surveillance data, along with the latest public health advice for flu, COVID-19, RSV and other viruses common in winter.

    In week 1:

    • COVID-19 activity remained stable across most indicators and was at baseline activity levels
    • influenza (flu) activity showed a mixed picture with some indicators suggesting that activity may have reached a peak, though activity remains at high levels
    • Respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels

    For more information, see the flu, COVID-19 and RSV surveillance report and norovirus surveillance report.

    Flu surveillance data for week 1

    • Flu activity showed a mixed picture with some indicators suggesting that activity may have reached a peak, though activity remains at high levels
    • flu positivity decreased slightly with a weekly mean positivity rate of 28.1%, compared to 29.7% in the previous week. This is based on a percentage of people who test positive among those with symptoms tested at sentinel “spotter” laboratories, reported through the Respiratory DataMart surveillance system
    • overall, flu hospitalisations remained stable at 13.41 per 100,000, compared with 13.90 per 100,000 in the previous week
    • the weekly influenza-like illnesses (ILI) General Practice (GP) consultation rate increased to 20.6 per 100,000 compared with 13.9 per 100,000 in the previous week
    • up to the end of week 1, vaccine uptake stood at 38.6% of those under 65 years in a clinical risk group, 33.8% in all pregnant women and 73.8% in all those aged 65 years and over. 40.9% of children aged 2 years of age and 42.5% of children aged 3 years of age have been vaccinated

    COVID-19 surveillance data for week 1

    • COVID-19 activity remained stable across most indicators and was circulating at baseline levels
    • COVID-19 positivity in hospital settings decreased with a weekly mean positivity rate of 2.2%, compared to 2.5% in the previous week
    • COVID-19 hospitalisations remained stable at 1.39 per 100,000 compared to 1.32 per 100,000 in the previous week
    • COVID-19 ICU admissions remained stable at 0.06 per 100,000 compared with 0.04 per 100,000 in the previous week
    • there were 12 COVID-19 acute respiratory incidents reported in week 1
    • the highest hospital admission rate was in the North-East at 2.78 per 100,000, increasing from 1.68 per 100,000 in the previous week
    • those aged 85 years and over had the highest hospital admission rate, which increased to 15.36 per 100,000 compared with 12.64 per 100,000 in the previous week
    • up to the end of week 1, 23.5% of those under 65 years in a clinical risk group and 59.1% of all people aged over 65 years old, who are living and resident in England had been vaccinated

    Respiratory syncytial virus (RSV) surveillance data for week 1

    • Respiratory syncytial virus (RSV) activity decreased across most indicators and was circulating at low levels overall
    • emergency department attendances for acute bronchiolitis decreased
    • RSV positivity decreased slightly to 6.2% compared with 7.2% in the previous week
    • overall, hospital admissions decreased to 2.14 per 100,000 compared with 2.48 per 100,000 in the previous week

    Dr Conall Watson, Consultant Epidemiologist at UKHSA, said: 

    We are continuing to see high levels of flu this week and ongoing admissions to hospitals and intensive care.  Although activity has remained stable coming into the new year, influenza activity can be unpredictable as people return to work and school and opportunities for the virus to spread can increase. 

    The predominant circulating flu strain continues to be A H1N1 clade 5a.2a, and the World Health Organization has so far concluded that the H1 component of the flu vaccine is well matched. If you’re still offered a vaccine through local services, it’s important that you take this up, including if you are pregnant or a health and social care worker.

    If you have symptoms of flu or COVID-19 such as a high temperature, cough and feeling tired and achy, try to limit your contact with others, especially those who are vulnerable. If you have symptoms and need to leave the house, our advice remains that you should consider wearing a face covering. Washing hands regularly and using and disposing tissues in bins can reduce the spread of respiratory illnesses.

    Norovirus surveillance data for week 52

    • Norovirus activity has decreased in recent weeks, with reports in the 2-week period between 16 to 29 December 2024 12.1% lower than the previous 2-week period. The decrease over the festive period has also been seen in previous years and should be interpreted with caution as it likely reflects changes in patterns of healthcare use, social mixing and lagged reporting due to the Christmas holidays, as well as the impact of school holidays. However, the total number of reports was 63.6% higher than the 5-season average for the same 2-week period.
    • Rotavirus reporting has decreased in recent weeks and was within expected levels during the 2-week period of weeks 51 and 52.
    • The number of norovirus outbreaks reported to the Hospital Norovirus Outbreak Reporting System (HNORS) since the start of the 2024/2025 season is 11.7% higher than the 5-season average.
    • Norovirus reporting remained high across all regions of England and all age groups, with the highest number of reports in adults aged 65 years and over.
    • While some of the increased reporting may be attributable to the increased use of PCR multiplex technology (capable of detecting multiple gastrointestinal pathogens in one test), it is likely that the emergence of an unusual norovirus genotype, GII.17, as well as changes in the epidemiology following the COVID-19 pandemic and other factors are contributing to the observed high levels.
    • During the 2024/2025 season to date, the majority (89.5%) of samples characterised were norovirus genogroup 2 (GII), of which the most frequently identified genotype was GII.17 (59.7%), an increase of this genotype has also been observed in other counties during 2024 and is being closely monitored — at present there is no indication it leads to more severe illness (note: it isn’t accurate to refer to GII.17 as ‘Kawasaki’ and this term is causing confusion with Kawasaki Disease, which is an unrelated disease)
    • Laboratory reports represent just a small proportion of total norovirus cases and it has been estimated that for every case of norovirus reported to national surveillance in the UK there are about 288 in the community that go unreported, representing an annual burden of around 3 million cases.
    • Norovirus symptoms include nausea, vomiting and diarrhoea but can also include a high temperature, abdominal pain and aching limbs. Norovirus infections can cause dehydration, especially in vulnerable groups such as young children and older or immunocompromised people, so if you do get ill it is important to drink plenty of fluids during that time.

    Amy Douglas, Epidemiologist at UKHSA, said:

    Although there was a decrease in reports of norovirus over the festive period, cases still remain high and we expect levels to rise further with the return to school.

    If you have diarrhoea and vomiting, you can take steps to avoid passing the infection on. Do not return to work, school or nursery until 48 hours after your symptoms have stopped and don’t prepare food for others in that time either. If you are unwell, avoid visiting people in hospitals and care homes to prevent passing on the infection in these settings.

    Washing your hands with soap and warm water and using bleach-based products to clean surfaces will also help stop infections from spreading. Alcohol gels do not kill norovirus so don’t rely on these alone.

    Updates to this page

    Published 6 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI USA: New Law Strengthening Red Flag Law Now in Effect

    Source: US State of New York

    Governor Kathy Hochul today announced that a new law (S.3340/A.5873) designed to enhance safeguards afforded by the State’s Red Flag Law is now effective. Beginning today, courts across New York State must notify the statewide registry of orders of protection and warrants when judges issue a temporary and/or final extreme risk order of protection. This notification codifies what courts were doing in practice and aims to ensure that these orders don’t fall through the cracks. Courts statewide have ordered nearly 14,000 temporary and permanent Extreme Risk Protection Orders through February 3, 2025 — more than 12 times the number of orders issued before Governor Hochul took decisive action to strengthen State law following the racially motivated mass shooting in Buffalo on May 14, 2022. Governor Hochul previously signed the legislation on October 9, 2024 as part of a package of bills aimed at reducing gun violence and strengthening New York’s nation leading gun laws.

    “Public safety is my number one priority — that’s why I signed legislation strengthening our Red Flag Laws to keep weapons away from individuals who are a risk to themselves and others,” Governor Hochul said. “By empowering law enforcement and judges to take action, we’re getting guns off our streets and making our communities safer.”

    A gunman motivated by hate murdered 10 individuals, physically injured three others and terrorized a community when he drove more than 200 miles to commit an act of mass violence at the Tops Supermarket on Buffalo’s East Side. Three days after that horrific act, Governor Hochul issued Executive Order 19, directing the New York State Police to seek an ERPO when there is probable cause to believe an individual is likely to engage in conduct that would result in serious harm to themselves, or others, as defined in the State’s Mental Hygiene Law.

    Less than a month later on July 6, 2022, Governor Hochul signed a law requiring all police departments, sheriffs’ offices and district attorneys’ offices to file an ERPO petition under the same standard in State law used by the State Police. This law also expanded the list of who is eligible to file for an ERPO to include health care practitioners who have examined an individual within the last six months and required reports by mental health practitioners about potentially harmful individuals to be considered closely when determining whether to issue a firearm license.

    From August 25, 2019, through December 31, 2019, courts across the State ordered 148 temporary or permanent orders. Those numbers less than doubled for the 2020 (252 ERPOs) and 2021 (286 ERPOs) calendar years. ERPOs issued by courts increased nearly tenfold after the Governor and Legislature acted in 2022, with 2,363 orders issued that year. In 2024 alone, the number of ERPOs issued statewide totaled 5,357.

    In addition to strengthening State laws to keep firearms away from those who pose a danger to themselves and others, Governor Hochul has bolstered the State’s efforts to remove illegal guns from communities and provided record-level funding to law enforcement agencies and community organizations on the front lines of the State’s fight against gun violence.

    Law enforcement agencies across the state seized 9,408 firearms, including 769 ghost guns, last year.

    Since taking office, Governor Hochul has provided record-level funding to State agencies, local law enforcement, and community-based organizations to address the pandemic-era surge in gun violence and that investment has paid dividends.

    Gun violence in communities participating in the state’s Gun Involved Violence Elimination (GIVE) initiative declined to its lowest level on record last year. New York State began tracking this data in communities outside of New York City in 2006. Shooting incidents with injury declined 28 percent in 2024 compared to 2023, and the number of individuals injured declined 25 percent, with 238 fewer people harmed by gunfire.

    The Governor’s FY26 Executive Budget includes $370 million to continue the State’s multifaceted approach to reducing shootings and saving lives. That funding supports local and State law enforcement initiatives, youth employment programs and nonprofit organizations that serve and support individuals and families, and strengthen communities, including but not limited to:

    • $50 million through the Law Enforcement Technology grant program, which provides funding so police departments and sheriffs’ offices can purchase new equipment and technology to modernize their operations and more effectively solve and prevent crime.
    • $36 million for GIVE, which funds the 28 police departments and district attorneys’ offices, probation departments, and sheriffs’ offices in 21 counties outside of New York City.
    • $21 million for the SNUG Street Outreach Program, which operates in 14 communities across the State: Albany, the Bronx, Buffalo, Hempstead, Mount Vernon, Newburgh, Niagara Falls, Poughkeepsie, Rochester, Syracuse, Troy, Utica, Wyandanch and Yonkers. The program uses a public health approach to address gun violence by identifying the source, interrupting transmission, and treating individuals, families and communities affected by the violence.
    • $18 million in continued support for the State’s unique, nationally recognized Crime Analysis Center Network, and $13 million in new funding to establish the New York State Crime Analysis and Joint Special Operations Command Headquarters, a strategic information, technical assistance and training hub for 11 Centers in the State’s network, and enhance existing partnerships and expand information sharing with the New York State Intelligence Center operated by the State Police, the locally run Nassau County Lead Development Center, and the State’s Joint Security Operations Center, which focuses on protecting the State from cyber threats.

    At the same time, the Governor’s FY26 Executive Budget proposal recognizes the equal importance of expanding services to victims and survivors of crime. Among the Governor’s proposals to increase support provided by the State Office of Victim Services are to:

    • Create a Mass Violence Crisis Response Team to ensure rapid, coordinated support that addresses the immediate needs of victims, survivors and communities in the aftermath of such events.
    • Increase existing limits on crime victim compensation for the cost of burial and funeral expenses from $6,000 to $12,000.
    • Eliminate the requirement to consider contributing conduct in death claims, which currently can reduce the amount of money OVS can provide for burial expenses, as well as other crime-related costs, including counseling, loss of support, and other assistance family members may need following a loved one’s death.
    • Expand eligibility for access to funding to pay for crime scene cleanup costs.

    Assembly Speaker Carl Heastie said, “Extreme risk protection orders are a critical tool in protecting New Yorkers from gun violence, and this legislation will give the courts and law enforcement the tools they need to help keep people safe. Thank you to the Assembly sponsor of this legislation, my friend and colleague Assemblymember Charles Lavine, for all his hard work on this. Here in New York and in the Assembly Majority, we have fought for commonsense legislation like this to address the scourge of gun violence in our communities. We will continue working together with our partners in government to strengthen the laws we have in place, keep guns out of the hands of dangerous individuals and address the root causes of gun violence.”

    State Senator Shelley B. Mayer said, “I am very pleased that starting today, New Yorkers will be safer, as law enforcement throughout New York will have easier access to critical public safety information, thanks to the bill I sponsored that modernizes the state’s process for filing extreme risk protection orders. Police officers can now quickly see if someone has an outstanding ERPO and better protect victims who face an ongoing risk of violence from someone in their life –– and those who pose a risk to themselves. I thank my colleagues in the legislature and Governor Hochul for their commitment to keeping New Yorkers safe.”

    Assemblymember Charles Lavine said, “Thanks to Governor Hochul’s strong leadership we are making progress in the fight against gun violence. In addition to this new law which I am confident will save lives, I am encouraged to see the increasing number of ghost guns being taken off the streets. This is a direct result of my ghost guns bill which is doing what it was intended to do, that is to keep our communities safe.”

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Phenomenal figures released for York’s Park and Ride

    Source: City of York

    Figures released today show that 2024 was the busiest year for York’s Park and Ride since 2017, with the total number of journeys exceeding 4.5 million, almost one million higher than in 2023.

    December saw the most trips for a decade, recording nearly 500,000 journeys, a 3.5 per cent increase on the previous highest monthly total set in December 2016.

    City of York Council estimates that people boarding at the Park and Ride sites in December resulted in over 61,700 cars not travelling into central York – equivalent to a line of traffic that would be long enough to reach central London*.

    York’s Enhanced Bus Partnership, which oversees £17.2million of government funding for the Bus Service Improvement Plan, ran a marketing campaign to promote the Park and Ride as well as direct bus services for six weeks before Christmas. Working with Make It York and all bus operators, the social media posts and adverts reached over 2.2million people in a campaign targeting towns and cities where previous research has shown Christmas Market visitors come from.

    Councillor Kate Ravilious, Executive Member for Economy and Transport at City of York Council, said:

    Just shy of half a million journeys in one month is an incredible milestone to reach, so thank you to all the residents and visitors for using the Park and Ride, and thank you to First Bus for increasing the number of buses available during this incredibly busy period.
     

    First Bus invested in more services on the network in November and December, increasing frequency on several routes to support the York local and visitor economy in anticipation of customer demand. First Bus replicates this investment during other busy periods to keep York visitors and commuters moving sustainably throughout the year.

    Cllr Ravilious continued;

    The numbers are phenomenal but we do also need to recognise that York still experienced congested streets in the run up to Christmas, so while we are delighted, we continue our work throughout the year to support and promote the city’s bus services as well as other sustainable forms of transport. Our young people’s ticketing and marketing campaigns, which and are funded by central government, have over the last 12 months helped make bus use more attractive and given more people more options, and we will soon be consulting on improvements to the Park and Ride sites.”

    Kayleigh Ingham, Commercial Director of First Bus North & West Yorkshire, said:

    The superb performance throughout 2024 is a tribute to the commitment and high standards of service delivered by the First Bus team.

    We’ve demonstrated that bus is an easy and sustainable way to travel into York. We’re attracting more customers due to good value fares, zero-emission buses, and our service, which is delivered with a smile. The benefits this brings, with cleaner air and quieter city centre roads, contributes to York’s environmental targets.

    Sarah Loftus, Managing Director of Make It York, said:

    It is wonderful to see the great results for bus travel for the year and 500,000 journeys during the Christmas period is fantastic. We are very fortunate to have a bus service within the city that supports both demand and sustainability. Collaboration between all parties on communicating key messages was key and we look forward to working with and supporting the transport sector throughout 2025.
     

    *In December First Bus sold 148,310 tickets at the Park and Ride sites alone (the remaining journeys being people who joined the bus along the route or were returning from the city centre). Industry standard definition of occupancy per car for a leisure trip is 2.4 people. This gives us a total of 61,700 cars that didn’t come into the city centre over Christmas. Google Maps shows that the road route from York Minster to Westminster Abbey is 210 miles. If we say a car takes up 6m of space on the road, 61,700 x 6m = 230 miles. Therefore 61,700 cars would stretch all the way to central London.

    These Park and Ride figures follow the Department for Transport’s own statistics released late in 2024 which show that York’s bus services as a whole (ie all local services and the Park and Ride) are once again in the top ten of all local authorities for the number of bus trips per resident. An average of 70.6 journeys per head of population in 2023/2024 ranks York the best in Yorkshire and nationally sits 9th out of 90 English local authority areas.

    The data also showed that York’s bus trips are up 35% from 2021/22, almost quadrupled from 2020/21 and now back within 3% of the level they were in 2019/20 (ie the year before covid). This is one of the best post-pandemic recovery rates in the country.

    In addition to December’s figures, November 2024 was the busiest November ever recorded, with 10% more passengers than the previous record set in 2016. 

    MIL OSI United Kingdom –

  • MIL-OSI Global: US dodged a bird flu pandemic in 1957 thanks to eggs and dumb luck – with a new strain spreading fast, will Americans get lucky again?

    Source: The Conversation – USA – By Alexandra M. Lord, Chair and Curator of Medicine and Science, Smithsonian Institution

    Eggs have been crucial to vaccine production for decades. Bettmann/Getty Images

    In recent months, Americans looking for eggs have faced empty shelves in their grocery stores. The escalating threat of avian flu has forced farmers to kill millions of chickens to prevent its spread.

    Nearly 70 years ago, Maurice Hilleman, an expert in influenza, also worried about finding eggs. Hilleman, however, needed eggs not for his breakfast, but to make the vaccines that were key to stopping a potential influenza pandemic.

    Hilleman was born a year after the notorious 1918 influenza pandemic swept the world, killing 20 million to 100 million people. By 1957, when Hilleman began worrying about the egg supply, scientists had a significantly more sophisticated understanding of influenza than they had previously. This knowledge led them to fear that a pandemic similar to that of 1918 could easily erupt, killing millions again.

    As a historian of medicine, I have always been fascinated by the key moments that halt an epidemic. Studying these moments provides some insight into how and why one outbreak may become a deadly pandemic, while another does not.

    Anticipating a pandemic

    Influenza is one of the most unpredictable of diseases. Each year, the virus mutates slightly in a process called antigenic drift. The greater the mutation, the less likely that your immune system will recognize and fight back against the disease.

    Every now and then, the virus changes dramatically in a process called antigenic shift. When this occurs, people become even less immune, and the likelihood of disease spread dramatically increases. Hilleman knew that it was just a matter of time before the influenza virus shifted and caused a pandemic similar to the one in 1918. Exactly when that shift would occur was anyone’s guess.

    In April 1957, Hilleman opened his newspaper and saw an article about “glassy-eyed” patients overwhelming clinics in Hong Kong.

    The article was just eight sentences long. But Hilleman needed only the four words of the headline to become alarmed: “Hong Kong Battling Influenza.”

    Within a month of learning about Hong Kong’s influenza epidemic, Hilleman had requested, obtained and tested a sample of the virus from colleagues in Asia. By May, Hilleman and his colleagues knew that Americans lacked immunity against this new version of the virus. A potential pandemic loomed.

    The U.S. prioritized vaccinating military personnel over the public in 1957. Here, members of a West German Navy vessel hand over a jar of vaccine to the U.S. transport ship General Patch for 134 people sick with flu.
    Henry Brueggemann/AP Photo

    Getting to know influenza

    During the 1920s and 1930s, the American government had poured millions of dollars into influenza research. By 1944, scientists not only understood that influenza was caused by a shape-shifting virus – something they had not known in 1918 – but they had also developed a vaccine.

    Antigenic drift rendered this vaccine ineffective in the 1946 flu season. Unlike the polio or smallpox vaccine, which could be administered once for lifelong protection, the influenza vaccine needed to be continually updated to be effective against an ever-changing virus.

    However, Americans were not accustomed to the idea of signing up for a yearly flu shot. In fact, they were not accustomed to signing up for a flu shot, period. After seeing the devastating impact of the 1918 pandemic on the nation’s soldiers and sailors, officials prioritized protecting the military from influenza. During and after World War II, the government used the influenza vaccine for the military, not the general public.

    Stopping a pandemic

    In the spring of 1957, the government called for vaccine manufacturers to accelerate production of a new influenza vaccine for all Americans.

    Traditionally, farmers have often culled roosters and unwanted chickens to keep their costs low. Hilleman, however, asked farmers to not cull their roosters, because vaccine manufacturers would need a huge supply of eggs to produce the vaccine before the virus fully hit the United States.

    But in early June, the virus was already circulating in the U.S. The good news was that the new virus was not the killer its 1918 predecessor had been.

    Hoping to create an “alert but not an alarmed public,” Surgeon General Leroy Burney and other experts discussed influenza and the need for vaccination in a widely distributed television show. The government also created short public service announcements and worked with local health organizations to encourage vaccination.

    A 1957 film informing Americans how the U.S. was responding to an influenza outbreak.

    Vaccination rates were, however, only “moderate” – not because Americans saw vaccination as problematic, but because they did not see influenza as a threat. Nearly 40 years had dulled memories of the 1918 pandemic, while the development of antibiotics had lessened the threat of the deadly pneumonia that can accompany influenza.

    Learning from a lucky reprieve

    If death and devastation defined the 1918 pandemic, luck defined the 1957 pandemic.

    It was luck that Hilleman saw an article about rising rates of influenza in Asia in the popular press. It was luck that Hilleman made an early call to increase production of fertilized eggs. And it was luck that the 1957 virus did not mirror its 1918 relative’s ability to kill.

    Recognizing that they had dodged a bullet in 1957, public health experts intensified their monitoring of the influenza virus during the 1960s. They also worked to improve influenza vaccines and to promote yearly vaccination. Multiple factors, such as the development of the polio vaccine as well as a growing recognition of the role vaccines played in controlling diseases, shaped the creation of an immunization-focused bureaucracy in the federal government during the 1960s.

    Inoculating eggs with live virus was the first step to producing a vaccine.
    AP Photo

    Over the past 60 years, the influenza virus has continued to drift and shift. In 1968, a shift once again caused a pandemic. In 1976 and 2009, concerns that the virus had shifted led to [fears that a new pandemic loomed]. But Americans were lucky once again.

    Today, few Americans remember the 1957 pandemic – the one that sputtered out before it did real damage. Yet that event left a lasting legacy in how public health experts think about and plan for future outbreaks. Assuming that the U.S. uses the medical and public health advances at its disposal, Americans are now more prepared for an influenza pandemic than our ancestors were in 1918 and in 1957.

    But the virus’s unpredictability makes it impossible to know even today how it will mutate and when a pandemic will emerge.

    Alexandra M. Lord does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. US dodged a bird flu pandemic in 1957 thanks to eggs and dumb luck – with a new strain spreading fast, will Americans get lucky again? – https://theconversation.com/us-dodged-a-bird-flu-pandemic-in-1957-thanks-to-eggs-and-dumb-luck-with-a-new-strain-spreading-fast-will-americans-get-lucky-again-247157

    MIL OSI – Global Reports –

  • MIL-OSI United Kingdom: Construction boss jailed after fraudulently obtaining two maximum-value Covid loans

    Source: United Kingdom – Executive Government & Departments

    Director jailed for Bounce Back Loan fraud and transferring criminal property

    • Arti Deda overstated the turnover of his Knight Workers Limited company to secure two Bounce Back Loans when companies were only entitled to one 
    • Money from the loans was transferred to associates and third parties, not to benefit his business 
    • Deda was jailed for two-and-a-half years and banned as a company director for 10 years 

    A Berkshire-based director who fraudulently obtained two Covid loans for his construction firm has been jailed. 

    Arti Deda, 31, overstated the turnover of his Knight Workers Limited company to obtain maximum-value Bounce Back Loans worth £50,000 each from the bank in 2020, when companies were only entitled to one. 

    None of the £100,000 was used for the economic benefit of the business as was required under the terms of the scheme. 

    Deda, of Littleport Spur, Slough, was sentenced to two-and-a-half years in prison at Reading Crown Court on Wednesday 5 February. 

    He was also disqualified as a company director for 10 years. 

    David Snasdell, Chief Investigator at the Insolvency Service, said: 

    This significant jail term and director disqualification reflects the seriousness of Covid-related fraud.  

    Bounce Back Loans were designed to support small and medium-sized businesses through the pandemic. Taxpayers’ money should not have been used for personal purposes by company directors. 

    The Insolvency Service is committed to investigating these crimes, which have a substantial impact on the public purse, and prosecuting those responsible.

    Knight Workers was incorporated in December 2017 with Deda as its sole director. 

    The company claimed to be in the business of construction of domestic buildings. 

    However, Insolvency Service investigators found minimal evidence of any trading in the construction industry. 

    Deda made the fraudulent applications to two separate banks for Bounce Back Loans for the company during the same week in July 2020, falsely declaring its annual turnover was both £390,000 and £495,000 for 2019. 

    He also claimed in securing the second Bounce Back Loan that this was his only application. 

    A total of £44,500 was transferred to an associate just days after Deda received the funds. A further £13,000 was later transferred to a third party and £20,000 was transferred from the account with the reference ‘material’. 

    Deda applied to have Knight Workers liquidated in November 2021 in an attempt to avoid having to repay the loan.  

    The company was eventually dissolved in April 2023, with Deda having made no repayments. 

    Deda also failed in his duties as a company director to provide accounting records to the liquidator on request. 

    The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002. 

    Further information 

    Updates to this page

    Published 6 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI: CareCloud Achieves Industry-Leading Security and Compliance Attestation, Uniquely Positioned to Grow Among Large Healthcare Enterprises

    Source: GlobeNewswire (MIL-OSI)

    SOC 2 Type 2 Attestation Positions CareCloud Among a Select Group of less than 10% of all EHR Vendors

    SOMERSET, N.J., Feb. 06, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and AI-driven solutions, today announced that it has successfully completed a SOC 2 Type 2 examination for the second consecutive year, receiving a clean report with no exceptions. The examination scope of the Healthcare IT systems, performed by an independent CPA firm, covered security, availability, processing integrity, and confidentiality. This accomplishment underscores the Company’s commitment to the highest standards of data security, privacy, and regulatory compliance—critical for healthcare providers, especially larger enterprises such as health systems and hospital networks.

    “Our ability to achieve a clean SOC 2 Type 2 report for the second consecutive year is a testament to the strength of our security infrastructure and our commitment to protecting sensitive healthcare data,” said A. Hadi Chaudhry, Co-CEO of CareCloud. “As we continue to advance our AI-driven solutions and cloud-based platform, maintaining the highest level of security and compliance remains a top priority. This examination reinforces our dedication to delivering innovative technology that meets the stringent requirements of enterprise healthcare organizations.”

    Successfully completing the SOC 2 Type 2 examination affirms that the Company has maintained rigorous security controls and operational effectiveness across its cloud-based platform. This milestone aligns the Company for continued expansion into larger client bases, including health systems, multi-specialty group practices, and enterprise-level healthcare organizations that demand robust security and compliance frameworks.

    “We’re excited to be in a select group of an estimated 10% of all EHR vendors who have achieved this important attestation,” said Stephen Snyder, Co-CEO of CareCloud. “With this attestation, we are uniquely positioned for further expansion across larger healthcare enterprises who typically require a SOC 2 Type 2 attestation. As we continue to scale our offerings to meet the needs of larger and more complex organizations, completing this examination with a clean report distinguishes us among our competitors and demonstrates our ability to support enterprise clients with confidence and reliability.”

    As CareCloud expands its AI-driven solutions, revenue cycle management (RCM) services, and electronic health record (EHR) offerings to larger healthcare organizations, this attestation solidifies its ability to meet the evolving security and compliance needs of health systems and enterprise clients.

    About CareCloud

    CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.

    To listen to video presentations by CareCloud’s management team, read recent press releases and view our latest investor presentation, please visit https://ir.carecloud.com.

    Follow CareCloud on LinkedIn, X and Facebook.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder
    Co-Chief Executive Officer
    CareCloud, Inc.
    ir@carecloud.com

    The MIL Network –

  • MIL-OSI Economics: Piero Cipollone: Interview with Reuters

    Source: European Central Bank

    Interview with Piero Cipollone, conducted by Balazs Koranyi and Francesco Canepa

    6 February 2025

    The ECB has said that the direction of travel for monetary policy is clear, but the timing and extent of moves is not. What does this guidance mean to you?

    We are moving towards the target. The direction of inflation is clear, despite some small bumps. All incoming information points to a convergence with the target in 2025 and this is what our models are also telling us.

    Our models include market expectations for the interest rate path, so this convergence with the inflation target is coherent with a declining interest rate path.

    Everything is of course contingent on the information at the time of the forecasts, and we will have a new forecast round in March. Before then, we’ll get another inflation print, we’ll have more details on the composition of inflation, and all these feed into the model, as do market expectations for interest rates.

    Does that mean implicitly that you are comfortable with market expectations for further rate cuts as they are embedded in the projections?

    That was conditional on the information we had in December. I am comfortable as long as that path takes us to the target in the medium term in a sustainable way.

    What does the data since that December meeting tell you?

    Overall, I think the direction is the same. I don’t see huge changes in our view, except trade tensions. The overall understanding of where we are going is there, the fundamentals haven’t changed, so I do not expect a big change in direction.

    One thing that might happen is a trade war with the United States. How would that affect your thinking?

    It depends on details such as whether we retaliate, precisely what these tariffs are going to be levied on, and how China is affected.

    If tariffs are imposed on us, the most immediate impact will be on growth.

    The price of goods will be higher in the United States. Who is going to absorb the cost? It could be that European companies, in order to defend their market share, might be willing to sacrifice a bit of their margin in order to stay in the market. We have seen this many times and European firms have a great ability to adjust. Part of this sacrifice might be recovered through the exchange rate. So, in the end, the overall impact may not be that big.

    What concerns me more is if President Trump engages in a full trade war with China. This is a more serious threat because China has 35% of the world’s manufacturing capacity. Trade barriers will force China to sell its goods elsewhere and the competition from China could be a serious threat to us. These goods showing up in Europe could have both a deflationary and a contractionary impact because they would crowd out local products.

    The uncertainty is exceptionally high, everything is in motion. And we can’t assess where it’s all going until things fall in place.

    It’s true we have a goods surplus with the United States. But if you add in services and look at the overall current account, then the balance is close to zero.

    Looking at the very short term, can you support a rate cut in March, as some of your colleagues are already saying?

    I don’t want to seem elusive, but the uncertainty is so high that anything can happen. We all agree there is still room for adjusting rates downwards. But we need to be extremely careful. It’s important to stress this idea of a meeting-by-meeting, data-dependent approach. I want to enter the meeting with an open mind, see the staff assessment and process incoming data.

    But we also all agree that we are still in a restrictive territory.

    Suppose tariffs on China stay, that’s a huge demand shock. On the other hand, we have energy prices moving upwards. It could be a transitory phenomenon, but what if this is more entrenched?

    How far are we from the neutral rate and why has the neutral gone up?

    When you have an estimate range that is 50 or 75 basis points, then it’s a conceptual tool and doesn’t have much bearing on policy, given the high uncertainty. Take estimates that it is between 1.75% and 2.25%. Those are two completely different monetary policies, if you are close to target. It’s such a wide range that one number could imply that you are undershooting and another that you are overshooting. So “neutral” is a very powerful analytical concept but not terribly useful for setting monetary policy, given this embedded uncertainty.

    It’s possible this rate went up but it’s also possible it stayed unchanged given how wide the band is.

    You say you are clearly restrictive now. Would that still apply after the next cut? When does the debate start on when restrictive ends?

    We are almost on target. The closer you get to target, the less you’ll need to stay restrictive.

    It’s also true we have been overly optimistic on growth and had to cut our growth forecasts three times since June. So, it is possible that the recovery is not as strong as expected and thus the inflationary pressure coming from demand is weaker. This could prompt us to reassess our concept of restrictiveness.

    Could this mean that you need to become accommodative to avoid an undershoot?

    I assess the risk around inflation to be balanced and I don’t have evidence of a possible undershoot. Long-term inflation expectations are also very well anchored.

    The latest information, especially the rise in the cost of energy, makes me think that we should be prudent. It might be a transitory phenomenon, but prices have risen substantially. Consumer expectations have also gone up a little as they are very reactive to short-term developments.

    I’m not saying that risks are moving towards being on the upside, but we have no evidence of undershooting either.

    Do the growth revisions suggest fundamental changes in how the economy functions?

    Growth has been disappointing, especially because of investments. Consumption may have been less buoyant than we thought, but it remains broadly on the path that we are expecting. The fundamentals for rising consumption are there. Real incomes are increasing, employment is high, inflation is declining and consumer confidence is holding steady.

    The real problem is investments, and that is only partially linked to monetary policy. The culprit is uncertainty. Investments have been weak since the summer given the overall uncertainty and the direction of trade policy after the US election.

    My sense is that people are holding out before making important investment decisions. There is of course a cost component related to interest rates. But you see that people are investing just to replace old capital stock.

    What can the ECB do about it?

    We have to take care of the cost component and avoid being unduly restrictive. Our goal should be to have the economy growing close to potential and to contribute to reducing uncertainty as much as possible.

    Could another targeted longer-term refinancing operation help investments?

    It doesn’t seem to me that the lack of available funding is the issue. We have seen some tightening of credit conditions but that’s not the key factor here.

    Last week we were talking about a 25% tariff, today not anymore, and tomorrow we don’t know. All companies are trying to understand where it’s all going so that they can make investment decisions.

    How does this uncertainty affect the labour market?

    There could be some softening of the labour market but overall we have been positively surprised. We went through a huge disinflation process with a very strong labour market.

    Labour hoarding has two dimensions. One is the cost. Overall, the cost is still relatively low because, by some measures, real wages are still below the pre-pandemic level. The second reason is that firms are afraid of losing skilled labour and this is still the case.

    The labour market is softening, however. The problem is manufacturing essentially. But even there we see some light at the end of the tunnel. There seem to be some initial signs of recovery in the Purchasing Managers’ Index and the Economic Sentiment Indicator. I was surprised to see that confidence in the construction sector and manufacturing activity have bottomed out, and we see some possible signs of recovery. Services are holding up overall. If there is some softening in terms of demand for labour, possibly there will be a pick-up in productivity which will reduce the unit labour cost overall. We obviously need to monitor it because, with all this uncertainty, we could see a deterioration. But I am not overly concerned about the labour market.

    Adding up what you said about these modest signs of recovery in manufacturing, does that mean you still believe in the soft-landing narrative and you don’t see a recession?

    We might not be booming but I am not expecting a recession at all. I think consumption will slowly go up because the fundamentals are there, labour income is growing, the cost of borrowing is declining, inflation is declining, and consumer confidence is basically holding up, so it’s possible that the savings rate will decline from a historic high. So, overall, I think consumption will keep going – and that is a big chunk of the economy. Investment should recover too, as soon as all this uncertainty dissipates. First, one cannot hold back forever: imagine you have a bunch of cumulated investment decisions to make. Even if a small percentage of them go through, it will be a positive and you will see that in investment. Second, less restrictive financial conditions are slowly being transmitted to the cost of financing. And third, in 2025-26 we should see an acceleration in the spending of Next Generation EU funds in Europe.

    Moving to the digital euro. Could you give us an update?

    We have started the procurement process and we will be selecting suppliers in June, but the contracts are such that they will only be triggered if the Governing Council decides to issue the digital euro. We have been working on the rulebook and we will be able to finalise it shortly after we have firm EU legislation in place. For example, whether people can have access to one or more wallets will have an influence on the rulebook, so if we don’t have a final legislation, we cannot finalise the rulebook. But it will not take long once the legislation is approved because we have done as much work as possible in the absence of a firm legislation. So the procurement is done and the rulebook is almost done. We are also working with the market to leverage the innovation potential of the digital euro. We think there is huge potential in conditional payments to increase the quality and the menu of the offering on payments.

    So that is a payment that only happens if a certain condition is fulfilled, right?

    Today there is only one type of conditional payment and it is based on time: pay this amount to this person on this date. We think we can do better than that. To make sure that this intuition is right, at the end of October, we issued a call for innovation partnerships. We were surprised to receive 100 offers. People want to experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.

    Would conditional payments require a blockchain? How else would the condition be verified?

    No, it’s not a matter of blockchain. If you have a way to register the transaction on the ledger through a sort of token, that is a possibility. But technicians tell me you can make a transaction conditional even on a traditional ledger. We are working on that, but the information that I can give you is that we can do better than what we are doing today on conditional payment, regardless of the underlying technology. The technology has a bearing on many dimensions, for example latency and privacy.

    Could you give me an example of a conditional payment that could be settled in digital euro?

    For example, if the train is late, today you have to ask to be reimbursed. You could have a solution in which you only pay if the condition is automatically verified. 

    To conclude with where we are in the preparation phase, let me add that since the digital euro is a product, we have to market it. So, we are engaging with focus groups and using surveys to understand how to best finalise the product in order to meet people’s expectations. We are on schedule, so we should be ready to take a decision on moving to the next project phase by November 2025. I don’t know whether at that time the Governing Council will already be able to take a decision to eventually issue a digital euro because that depends on whether we have a legislation at that point. We have been clear that we would not take any decision about the issuance of a digital euro before the legislative act has been adopted.

    We had expected legislation on the digital euro some time ago. What’s holding up the process? Are you sensing a lack of political will?

    I wouldn’t say there’s a lack of political will. I think people want to understand the whole process. The European Commission issued legislation in June 2023, then the European Parliament started to work on that, but mentally they were not there because there was an EU election coming up. Everything stopped. They are starting to work on this now so, to be fair to them, they didn’t have much time. By contrast, in the Council of the European Union’s working party, work is progressing. As far as I know, they have gone through all of the legislative proposal and they are now focusing on the issues that still need to be worked out.  When both the Council and the Parliament have agreed internally, they will sit down with the Commission and try to finalise the legislation. So, we hope they will be able to reach an agreement internally before the summer. But again, political processes are complex and there are many things on the table. Obviously the sooner the better, but we fully understand their needs. My sense is that there is an increased sense of urgency because of the position that has been taken by the new US Administration. The fact that the US President went in so strong on this idea of promoting worldwide US dollar-denominated stablecoins obviously is a signal. The political world is becoming more alert to this. And it’s possible that we will see an acceleration in the process.

    Stablecoins are similar to money market funds that people use if they don’t want to go via the banking system, whereas the digital euro, with its holding limit, will purely be a means of payment. Why do you think a digital euro would be a good response to stablecoins?  

    You’re right, for as long as stablecoins are not used as a means of payment. My sense is that they will be. This is worrisome because if people in Europe start to use stablecoins to pay, given that most of them are American and dollar-based, they will be transferring their deposits from Europe to the United States. It may start with peer-to-peer, cross-border transactions. Then an American tourist may be able to use stablecoins instead of using a credit card, for example. So stablecoins can enter the payment space, for example, if they can compete with card schemes by reducing the price for the merchant. We have seen that important payment providers have already issued stablecoins, like PayPal, for example.

    Turning now to bitcoin, we know that the ECB has got repo lines and swap lines with other central banks. Would the ECB maintain those with a central bank that has bitcoins among its reserves?

    It’s an interesting question. Fortunately we don’t have to think about that right now because no major central bank is thinking about that.

    One is hypothesising.

    We would need to do a risk management assessment of that. Let’s see if any central bank enters this space because I don’t fully see the rationale for it. We will assess it at that point in time, if it happens. I am trying to be rational and think about why I should invest in bitcoin or another crypto-asset. The only rationale is if one thinks that the price will always go up. It doesn’t have any underlying value, there is no asset backing it, there is no earning model.

    On that, it’s a bit like gold.

    The structures of the two markets are completely different: the transparency of the market, the concentration. So, I would be careful about making the analogy. I don’t know how deep the market for gold is, but there are central banks in that market, and not just because of a legacy system. We should not stop at a superficial analogy between gold and bitcoin.

    Why do central banks invest in gold, other than legacy?

    It’s in part due to legacy, but gold has intrinsic, commercial and industrial value. Bitcoin does not have any of that.

    We’ve seen gold and bitcoin make all-time highs at the same time. Or should we say that fiat currencies are making all-time lows?

    Fiat currencies allow you, among other things, to pay. Good luck trying to pay in bitcoin or gold. Central bank money is the safest asset you can imagine and it’s relatively stable in terms of what you can buy with it.

    MIL OSI Economics –

  • MIL-OSI Economics: Philip N Jefferson: Do non-inflationary economic expansions promote shared prosperity? Evidence from the US labor market

    Source: Bank for International Settlements

    Figures accompanying the speech

    Thank you, Professor O’Connell, for that kind introduction and for the opportunity to talk to this group.1 I am delighted to be back at Swarthmore College. This special community brings back fond memories of fantastic students, great colleagues, and pedagogical excellence.

    Yesterday, I discussed my outlook for the current U.S. economy. I highlighted how the economy is growing and appears to be roughly in balance, with low unemployment and declining inflation. Today, I will review some of the historical evidence pertaining to periods when the Federal Reserve has achieved both components of its dual mandate, maximum employment and stable prices, on a sustained basis-that is, periods of long non-inflationary economic expansions. My title question is whether economic evidence indicates that such expansions also result in greater shared prosperity.

    My focus will be on the labor market. A reason for this focus is that for many individuals, their employment attachment is a key determinant of their household’s overall well-being. My approach will be to compare the current labor market with the labor market at the end of 2019-that is, at the end of the most recent long, non-inflationary expansion. Such a comparison provides a lens through which to view the prospects for broadly shared prosperity fostered by the current U.S. labor market.

    The remainder of my talk is organized as follows. First, I describe the labor market at the end of 2019. After that, I discuss the state of the labor market in the immediate aftermath of the COVID-19 pandemic. Then, I describe the current labor market situation. Next, I discuss possible reasons why strong labor markets facilitate broad-based prosperity. Before concluding, I consider whether the benefits of long expansions are persistent.

    MIL OSI Economics –

  • MIL-OSI Europe: Piero Cipollone: Interview with Reuters

    Source: European Central Bank

    Interview with Piero Cipollone, conducted by Balazs Koranyi and Francesco Canepa

    6 February 2025

    The ECB has said that the direction of travel for monetary policy is clear, but the timing and extent of moves is not. What does this guidance mean to you?

    We are moving towards the target. The direction of inflation is clear, despite some small bumps. All incoming information points to a convergence with the target in 2025 and this is what our models are also telling us.

    Our models include market expectations for the interest rate path, so this convergence with the inflation target is coherent with a declining interest rate path.

    Everything is of course contingent on the information at the time of the forecasts, and we will have a new forecast round in March. Before then, we’ll get another inflation print, we’ll have more details on the composition of inflation, and all these feed into the model, as do market expectations for interest rates.

    Does that mean implicitly that you are comfortable with market expectations for further rate cuts as they are embedded in the projections?

    That was conditional on the information we had in December. I am comfortable as long as that path takes us to the target in the medium term in a sustainable way.

    What does the data since that December meeting tell you?

    Overall, I think the direction is the same. I don’t see huge changes in our view, except trade tensions. The overall understanding of where we are going is there, the fundamentals haven’t changed, so I do not expect a big change in direction.

    One thing that might happen is a trade war with the United States. How would that affect your thinking?

    It depends on details such as whether we retaliate, precisely what these tariffs are going to be levied on, and how China is affected.

    If tariffs are imposed on us, the most immediate impact will be on growth.

    The price of goods will be higher in the United States. Who is going to absorb the cost? It could be that European companies, in order to defend their market share, might be willing to sacrifice a bit of their margin in order to stay in the market. We have seen this many times and European firms have a great ability to adjust. Part of this sacrifice might be recovered through the exchange rate. So, in the end, the overall impact may not be that big.

    What concerns me more is if President Trump engages in a full trade war with China. This is a more serious threat because China has 35% of the world’s manufacturing capacity. Trade barriers will force China to sell its goods elsewhere and the competition from China could be a serious threat to us. These goods showing up in Europe could have both a deflationary and a contractionary impact because they would crowd out local products.

    The uncertainty is exceptionally high, everything is in motion. And we can’t assess where it’s all going until things fall in place.

    It’s true we have a goods surplus with the United States. But if you add in services and look at the overall current account, then the balance is close to zero.

    Looking at the very short term, can you support a rate cut in March, as some of your colleagues are already saying?

    I don’t want to seem elusive, but the uncertainty is so high that anything can happen. We all agree there is still room for adjusting rates downwards. But we need to be extremely careful. It’s important to stress this idea of a meeting-by-meeting, data-dependent approach. I want to enter the meeting with an open mind, see the staff assessment and process incoming data.

    But we also all agree that we are still in a restrictive territory.

    Suppose tariffs on China stay, that’s a huge demand shock. On the other hand, we have energy prices moving upwards. It could be a transitory phenomenon, but what if this is more entrenched?

    How far are we from the neutral rate and why has the neutral gone up?

    When you have an estimate range that is 50 or 75 basis points, then it’s a conceptual tool and doesn’t have much bearing on policy, given the high uncertainty. Take estimates that it is between 1.75% and 2.25%. Those are two completely different monetary policies, if you are close to target. It’s such a wide range that one number could imply that you are undershooting and another that you are overshooting. So “neutral” is a very powerful analytical concept but not terribly useful for setting monetary policy, given this embedded uncertainty.

    It’s possible this rate went up but it’s also possible it stayed unchanged given how wide the band is.

    You say you are clearly restrictive now. Would that still apply after the next cut? When does the debate start on when restrictive ends?

    We are almost on target. The closer you get to target, the less you’ll need to stay restrictive.

    It’s also true we have been overly optimistic on growth and had to cut our growth forecasts three times since June. So, it is possible that the recovery is not as strong as expected and thus the inflationary pressure coming from demand is weaker. This could prompt us to reassess our concept of restrictiveness.

    Could this mean that you need to become accommodative to avoid an undershoot?

    I assess the risk around inflation to be balanced and I don’t have evidence of a possible undershoot. Long-term inflation expectations are also very well anchored.

    The latest information, especially the rise in the cost of energy, makes me think that we should be prudent. It might be a transitory phenomenon, but prices have risen substantially. Consumer expectations have also gone up a little as they are very reactive to short-term developments.

    I’m not saying that risks are moving towards being on the upside, but we have no evidence of undershooting either.

    Do the growth revisions suggest fundamental changes in how the economy functions?

    Growth has been disappointing, especially because of investments. Consumption may have been less buoyant than we thought, but it remains broadly on the path that we are expecting. The fundamentals for rising consumption are there. Real incomes are increasing, employment is high, inflation is declining and consumer confidence is holding steady.

    The real problem is investments, and that is only partially linked to monetary policy. The culprit is uncertainty. Investments have been weak since the summer given the overall uncertainty and the direction of trade policy after the US election.

    My sense is that people are holding out before making important investment decisions. There is of course a cost component related to interest rates. But you see that people are investing just to replace old capital stock.

    What can the ECB do about it?

    We have to take care of the cost component and avoid being unduly restrictive. Our goal should be to have the economy growing close to potential and to contribute to reducing uncertainty as much as possible.

    Could another targeted longer-term refinancing operation help investments?

    It doesn’t seem to me that the lack of available funding is the issue. We have seen some tightening of credit conditions but that’s not the key factor here.

    Last week we were talking about a 25% tariff, today not anymore, and tomorrow we don’t know. All companies are trying to understand where it’s all going so that they can make investment decisions.

    How does this uncertainty affect the labour market?

    There could be some softening of the labour market but overall we have been positively surprised. We went through a huge disinflation process with a very strong labour market.

    Labour hoarding has two dimensions. One is the cost. Overall, the cost is still relatively low because, by some measures, real wages are still below the pre-pandemic level. The second reason is that firms are afraid of losing skilled labour and this is still the case.

    The labour market is softening, however. The problem is manufacturing essentially. But even there we see some light at the end of the tunnel. There seem to be some initial signs of recovery in the Purchasing Managers’ Index and the Economic Sentiment Indicator. I was surprised to see that confidence in the construction sector and manufacturing activity have bottomed out, and we see some possible signs of recovery. Services are holding up overall. If there is some softening in terms of demand for labour, possibly there will be a pick-up in productivity which will reduce the unit labour cost overall. We obviously need to monitor it because, with all this uncertainty, we could see a deterioration. But I am not overly concerned about the labour market.

    Adding up what you said about these modest signs of recovery in manufacturing, does that mean you still believe in the soft-landing narrative and you don’t see a recession?

    We might not be booming but I am not expecting a recession at all. I think consumption will slowly go up because the fundamentals are there, labour income is growing, the cost of borrowing is declining, inflation is declining, and consumer confidence is basically holding up, so it’s possible that the savings rate will decline from a historic high. So, overall, I think consumption will keep going – and that is a big chunk of the economy. Investment should recover too, as soon as all this uncertainty dissipates. First, one cannot hold back forever: imagine you have a bunch of cumulated investment decisions to make. Even if a small percentage of them go through, it will be a positive and you will see that in investment. Second, less restrictive financial conditions are slowly being transmitted to the cost of financing. And third, in 2025-26 we should see an acceleration in the spending of Next Generation EU funds in Europe.

    Moving to the digital euro. Could you give us an update?

    We have started the procurement process and we will be selecting suppliers in June, but the contracts are such that they will only be triggered if the Governing Council decides to issue the digital euro. We have been working on the rulebook and we will be able to finalise it shortly after we have firm EU legislation in place. For example, whether people can have access to one or more wallets will have an influence on the rulebook, so if we don’t have a final legislation, we cannot finalise the rulebook. But it will not take long once the legislation is approved because we have done as much work as possible in the absence of a firm legislation. So the procurement is done and the rulebook is almost done. We are also working with the market to leverage the innovation potential of the digital euro. We think there is huge potential in conditional payments to increase the quality and the menu of the offering on payments.

    So that is a payment that only happens if a certain condition is fulfilled, right?

    Today there is only one type of conditional payment and it is based on time: pay this amount to this person on this date. We think we can do better than that. To make sure that this intuition is right, at the end of October, we issued a call for innovation partnerships. We were surprised to receive 100 offers. People want to experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.

    Would conditional payments require a blockchain? How else would the condition be verified?

    No, it’s not a matter of blockchain. If you have a way to register the transaction on the ledger through a sort of token, that is a possibility. But technicians tell me you can make a transaction conditional even on a traditional ledger. We are working on that, but the information that I can give you is that we can do better than what we are doing today on conditional payment, regardless of the underlying technology. The technology has a bearing on many dimensions, for example latency and privacy.

    Could you give me an example of a conditional payment that could be settled in digital euro?

    For example, if the train is late, today you have to ask to be reimbursed. You could have a solution in which you only pay if the condition is automatically verified. 

    To conclude with where we are in the preparation phase, let me add that since the digital euro is a product, we have to market it. So, we are engaging with focus groups and using surveys to understand how to best finalise the product in order to meet people’s expectations. We are on schedule, so we should be ready to take a decision on moving to the next project phase by November 2025. I don’t know whether at that time the Governing Council will already be able to take a decision to eventually issue a digital euro because that depends on whether we have a legislation at that point. We have been clear that we would not take any decision about the issuance of a digital euro before the legislative act has been adopted.

    We had expected legislation on the digital euro some time ago. What’s holding up the process? Are you sensing a lack of political will?

    I wouldn’t say there’s a lack of political will. I think people want to understand the whole process. The European Commission issued legislation in June 2023, then the European Parliament started to work on that, but mentally they were not there because there was an EU election coming up. Everything stopped. They are starting to work on this now so, to be fair to them, they didn’t have much time. By contrast, in the Council of the European Union’s working party, work is progressing. As far as I know, they have gone through all of the legislative proposal and they are now focusing on the issues that still need to be worked out.  When both the Council and the Parliament have agreed internally, they will sit down with the Commission and try to finalise the legislation. So, we hope they will be able to reach an agreement internally before the summer. But again, political processes are complex and there are many things on the table. Obviously the sooner the better, but we fully understand their needs. My sense is that there is an increased sense of urgency because of the position that has been taken by the new US Administration. The fact that the US President went in so strong on this idea of promoting worldwide US dollar-denominated stablecoins obviously is a signal. The political world is becoming more alert to this. And it’s possible that we will see an acceleration in the process.

    Stablecoins are similar to money market funds that people use if they don’t want to go via the banking system, whereas the digital euro, with its holding limit, will purely be a means of payment. Why do you think a digital euro would be a good response to stablecoins?  

    You’re right, for as long as stablecoins are not used as a means of payment. My sense is that they will be. This is worrisome because if people in Europe start to use stablecoins to pay, given that most of them are American and dollar-based, they will be transferring their deposits from Europe to the United States. It may start with peer-to-peer, cross-border transactions. Then an American tourist may be able to use stablecoins instead of using a credit card, for example. So stablecoins can enter the payment space, for example, if they can compete with card schemes by reducing the price for the merchant. We have seen that important payment providers have already issued stablecoins, like PayPal, for example.

    Turning now to bitcoin, we know that the ECB has got repo lines and swap lines with other central banks. Would the ECB maintain those with a central bank that has bitcoins among its reserves?

    It’s an interesting question. Fortunately we don’t have to think about that right now because no major central bank is thinking about that.

    One is hypothesising.

    We would need to do a risk management assessment of that. Let’s see if any central bank enters this space because I don’t fully see the rationale for it. We will assess it at that point in time, if it happens. I am trying to be rational and think about why I should invest in bitcoin or another crypto-asset. The only rationale is if one thinks that the price will always go up. It doesn’t have any underlying value, there is no asset backing it, there is no earning model.

    On that, it’s a bit like gold.

    The structures of the two markets are completely different: the transparency of the market, the concentration. So, I would be careful about making the analogy. I don’t know how deep the market for gold is, but there are central banks in that market, and not just because of a legacy system. We should not stop at a superficial analogy between gold and bitcoin.

    Why do central banks invest in gold, other than legacy?

    It’s in part due to legacy, but gold has intrinsic, commercial and industrial value. Bitcoin does not have any of that.

    We’ve seen gold and bitcoin make all-time highs at the same time. Or should we say that fiat currencies are making all-time lows?

    Fiat currencies allow you, among other things, to pay. Good luck trying to pay in bitcoin or gold. Central bank money is the safest asset you can imagine and it’s relatively stable in terms of what you can buy with it.

    MIL OSI Europe News –

  • MIL-OSI Africa: Female genital mutilation is a leading cause of death for girls where it’s practised – new study

    Source: The Conversation – Africa – By Heather D. Flowe, Professor of Psychology, University of Birmingham

    Female genital mutilation or cutting (FGM/C) is a deeply entrenched cultural practice that affects around 200 million women and girls. It’s practised in at least 25 African countries, as well as parts of the Middle East and Asia and among immigrant populations globally.

    It is a harmful traditional practice that involves removing or damaging female genital tissue. Often it’s “justified” by cultural beliefs about controlling female sexuality and marriageability. FGM/C causes immediate and lifelong physical and psychological harm to girls and women, including severe pain, complications during childbirth, infections and trauma.

    We brought together our expertise in economics and gender based violence to examine excess mortality (avoidable deaths) due to FGM/C. Our new research now reveals a devastating reality: FGM/C is one of the leading causes of death for girls and young women in countries where it’s practised. FGM/C can result in death from severe bleeding, infection, shock, or obstructed labour.

    Our study estimates that it causes approximately 44,000 deaths each year across the 15 countries we examined. That is equivalent to a young woman or girl every 12 minutes.

    This makes it a more significant cause of death in the countries studied than any other excluding infection, malaria and respiratory infections or tuberculosis. Put differently, it is a bigger cause of death than HIV/Aids, measles, meningitis and many other well-known health threats for young women and girls in these countries.

    Prior research has shown that FGM/C leads to severe pain, bleeding and infection. But tracking deaths directly caused by the practice has been nearly impossible. This is partly because FGM/C is illegal in many countries where it occurs, and it typically takes place in non-clinical settings without medical supervision.

    Where the crisis is most severe

    The practice is particularly prevalent in several African nations. In Guinea, our data show 97% of women and girls have undergone FGM/C, while in Mali the figure stands at 83%, and in Sierra Leone, 90%. The high prevalence rates in Egypt, with 87% of women and girls affected, are a reminder that FGM/C is not confined to sub-Saharan Africa.

    For our study, we analysed data from the 15 African countries for which comprehensive “gold standard” FGM/C incidence information is available. Meaning, the data is comprehensive, reliable and widely accepted for research, policymaking and advocacy efforts to combat FGM/C.

    We developed a new approach to help overcome previous gaps in data. We matched data on the proportion of girls subjected to FGM/C at different ages with age-specific mortality rates across 15 countries between 1990 and 2020. The age at which FGM occurs varies significantly by country. In Nigeria, 93% of procedures are performed on girls younger than five years old. In contrast, in Sierra Leone, most girls undergo the procedure between the ages of 10 and 14.

    Since health conditions vary from place to place and over time, and vary in the same place from one year to the next, we made sure to consider these differences. This helped us figure out if more girls were dying at the ages when FGM/C usually happens in each country.

    For example, in Chad, 11.2% of girls undergo FGM/C aged 0-4, 57.2% at 5-9 and 30% at 10-14. We could see how mortality rates changed between these age groups compared to countries with different FGM patterns.

    This careful statistical approach helped us identify the excess deaths associated with the practice while accounting for other factors that might affect child mortality.

    Striking findings

    Our analysis revealed that when the proportion of girls subjected to FGM in a particular age group increases by 50 percentage points, their mortality rate rises by 0.1 percentage points. While this may sound small, when applied across the population of affected countries, it translates to tens of thousands of preventable deaths annually.

    The scale is staggering: while armed conflicts in Africa caused approximately 48,000 combat deaths per year between 1995 and 2015, our research suggests FGM/C leads to about 44,000 deaths annually. This places FGM among the most serious public health challenges facing these nations.

    Beyond the numbers

    These statistics represent real lives cut short. Most FGM/C procedures are performed without anaesthesia, proper medical supervision, or sterile equipment. The resulting complications can include severe bleeding, infection and shock. Even when not immediately fatal, the practice can lead to long-term health problems and increased risks during childbirth.

    The impact extends beyond physical health. Survivors often face psychological trauma and social challenges. In many communities, FGM/C is deeply embedded in cultural practices and tied to marriage prospects, making it difficult for families to resist the pressure to continue the tradition.

    Urgent crisis

    FGM/C is not just a human rights violation – it’s a public health crisis demanding urgent attention. While progress has been made in some areas, with some communities abandoning the practice, our research suggests that current efforts to combat FGM/C need to be dramatically scaled up.

    The COVID-19 pandemic has potentially worsened the situation, owing to broader impacts of the pandemic on societies, economies and healthcare systems. The UN estimates that the pandemic may have led to 2 million additional cases of FGM/C that could have been prevented. Based on our mortality estimates, this could result in approximately 4,000 additional deaths in the 15 countries we studied.

    The way forward

    Ending FGM/C requires a multi-faceted approach. Legal reforms are crucial – the practice remains legal in five of the 28 countries where it’s most commonly practised. However, laws alone aren’t enough. Community engagement, education, and support for grassroots organisations are essential for changing deeply held cultural beliefs and practices.

    Previous research has shown that information campaigns and community-led initiatives can be effective. For instance, studies have documented reductions in FGM/C rates following increased social media reach in Egypt and the use of educational films showing different views on FGM/C.

    Most importantly, any solution must involve the communities where FGM/C is practised. Our research underscores that this isn’t just about changing traditions – it’s about saving lives. Every year of delay means tens of thousands more preventable deaths.

    Our findings suggest that ending FGM/C should be considered as urgent a priority as combating major infectious diseases. The lives of millions of girls and young women depend on it.

    – Female genital mutilation is a leading cause of death for girls where it’s practised – new study
    – https://theconversation.com/female-genital-mutilation-is-a-leading-cause-of-death-for-girls-where-its-practised-new-study-249171

    MIL OSI Africa –

  • MIL-OSI Global: Female genital mutilation is a leading cause of death for girls where it’s practised – new study

    Source: The Conversation – Africa – By Heather D. Flowe, Professor of Psychology, University of Birmingham

    Female genital mutilation or cutting (FGM/C) is a deeply entrenched cultural practice that affects around 200 million women and girls. It’s practised in at least 25 African countries, as well as parts of the Middle East and Asia and among immigrant populations globally.

    It is a harmful traditional practice that involves removing or damaging female genital tissue. Often it’s “justified” by cultural beliefs about controlling female sexuality and marriageability. FGM/C causes immediate and lifelong physical and psychological harm to girls and women, including severe pain, complications during childbirth, infections and trauma.

    We brought together our expertise in economics and gender based violence to examine excess mortality (avoidable deaths) due to FGM/C. Our new research now reveals a devastating reality: FGM/C is one of the leading causes of death for girls and young women in countries where it’s practised. FGM/C can result in death from severe bleeding, infection, shock, or obstructed labour.

    Our study estimates that it causes approximately 44,000 deaths each year across the 15 countries we examined. That is equivalent to a young woman or girl every 12 minutes.

    This makes it a more significant cause of death in the countries studied than any other excluding infection, malaria and respiratory infections or tuberculosis. Put differently, it is a bigger cause of death than HIV/Aids, measles, meningitis and many other well-known health threats for young women and girls in these countries.

    Prior research has shown that FGM/C leads to severe pain, bleeding and infection. But tracking deaths directly caused by the practice has been nearly impossible. This is partly because FGM/C is illegal in many countries where it occurs, and it typically takes place in non-clinical settings without medical supervision.

    Where the crisis is most severe

    The practice is particularly prevalent in several African nations.
    In Guinea, our data show 97% of women and girls have undergone FGM/C, while in Mali the figure stands at 83%, and in Sierra Leone, 90%. The high prevalence rates in Egypt, with 87% of women and girls affected, are a reminder that FGM/C is not confined to sub-Saharan Africa.

    For our study, we analysed data from the 15 African countries for which comprehensive “gold standard” FGM/C incidence information is available. Meaning, the data is comprehensive, reliable and widely accepted for research, policymaking and advocacy efforts to combat FGM/C.

    We developed a new approach to help overcome previous gaps in data. We matched data on the proportion of girls subjected to FGM/C at different ages with age-specific mortality rates across 15 countries between 1990 and 2020. The age at which FGM occurs varies significantly by country. In Nigeria, 93% of procedures are performed on girls younger than five years old. In contrast, in Sierra Leone, most girls undergo the procedure between the ages of 10 and 14.

    Since health conditions vary from place to place and over time, and vary in the same place from one year to the next, we made sure to consider these differences. This helped us figure out if more girls were dying at the ages when FGM/C usually happens in each country.

    For example, in Chad, 11.2% of girls undergo FGM/C aged 0-4, 57.2% at 5-9 and 30% at 10-14. We could see how mortality rates changed between these age groups compared to countries with different FGM patterns.

    This careful statistical approach helped us identify the excess deaths associated with the practice while accounting for other factors that might affect child mortality.

    Striking findings

    Our analysis revealed that when the proportion of girls subjected to FGM in a particular age group increases by 50 percentage points, their mortality rate rises by 0.1 percentage points. While this may sound small, when applied across the population of affected countries, it translates to tens of thousands of preventable deaths annually.

    The scale is staggering: while armed conflicts in Africa caused approximately 48,000 combat deaths per year between 1995 and 2015, our research suggests FGM/C leads to about 44,000 deaths annually. This places FGM among the most serious public health challenges facing these nations.

    Beyond the numbers

    These statistics represent real lives cut short. Most FGM/C procedures are performed without anaesthesia, proper medical supervision, or sterile equipment. The resulting complications can include severe bleeding, infection and shock. Even when not immediately fatal, the practice can lead to long-term health problems and increased risks during childbirth.

    The impact extends beyond physical health. Survivors often face psychological trauma and social challenges. In many communities, FGM/C is deeply embedded in cultural practices and tied to marriage prospects, making it difficult for families to resist the pressure to continue the tradition.

    Urgent crisis

    FGM/C is not just a human rights violation – it’s a public health crisis demanding urgent attention. While progress has been made in some areas, with some communities abandoning the practice, our research suggests that current efforts to combat FGM/C need to be dramatically scaled up.

    The COVID-19 pandemic has potentially worsened the situation, owing to broader impacts of the pandemic on societies, economies and healthcare systems. The UN estimates that the pandemic may have led to 2 million additional cases of FGM/C that could have been prevented. Based on our mortality estimates, this could result in approximately 4,000 additional deaths in the 15 countries we studied.

    The way forward

    Ending FGM/C requires a multi-faceted approach. Legal reforms are crucial – the practice remains legal in five of the 28 countries where it’s most commonly practised. However, laws alone aren’t enough. Community engagement, education, and support for grassroots organisations are essential for changing deeply held cultural beliefs and practices.

    Previous research has shown that information campaigns and community-led initiatives can be effective. For instance, studies have documented reductions in FGM/C rates following increased social media reach in Egypt and the use of educational films showing different views on FGM/C.

    Most importantly, any solution must involve the communities where FGM/C is practised. Our research underscores that this isn’t just about changing traditions – it’s about saving lives. Every year of delay means tens of thousands more preventable deaths.

    Our findings suggest that ending FGM/C should be considered as urgent a priority as combating major infectious diseases. The lives of millions of girls and young women depend on it.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Female genital mutilation is a leading cause of death for girls where it’s practised – new study – https://theconversation.com/female-genital-mutilation-is-a-leading-cause-of-death-for-girls-where-its-practised-new-study-249171

    MIL OSI – Global Reports –

  • MIL-Evening Report: We know how hard it is for young people to buy a home – so how are some still doing it anyway?

    Source: The Conversation (Au and NZ) – By Rachel Ong ViforJ, John Curtin Distinguished Professor & ARC Future Fellow, Curtin University

    PrasitRodphan/Shutterstock

    For young Australians, breaking into the housing market feels tougher than ever. Many now fear they’ll never be able to own a home.

    Despite public debates on whether it’s truly harder to buy a house than it was decades ago, falling homeownership rates across generations suggest the market has indeed shifted significantly against those just starting out.

    But if it’s so difficult, how are some young people still managing to buy homes? Our newly published study set out to investigate the major barriers – and the factors – that might tip the scales in favour of ownership.

    Despite the challenges imposed by high home prices relative to incomes, some young Australians are still finding a way onto the property ladder.

    While being a good saver helps, a boost from the “bank of mum and dad” can be a game changer.

    A fading dream

    Using 14 years of data from the 2006-2020 government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked independent adults aged 25-44 who were not homeowners.

    Our calculations from the HILDA survey show for those aged 25-44 , average house prices across major cities in 2006 were 4.5 times the average household income.

    In Sydney, for example, the average price of properties faced by these young people was about A$600,000 in 2006 while the average household income was $102,000.

    Across major cities, this ratio rose steadily to 6 times income in 2018, before dropping slightly to 5.4 times income at the start of the pandemic.

    For young people in cities, house prices are spiralling upward at faster rates than their incomes.

    A generous ‘bank’ available to some

    As property markets have become more unaffordable, the share of non-homeowning young people receiving help from the “bank of mum and dad” has climbed.

    We estimated from the HILDA survey that in 2006, 3.1% of this group received more than $5,000 in transfers or inheritance from their parents, rising to 5.3% by 2020.

    Young people are good savers

    Contrary to popular some commentary that young people are unable to purchase a house because they are spending their money on “smashed avocados”, young people are actually saving more.

    In 2006, around two-thirds of non-homeowning adults aged 25-44 saved regularly by putting money aside each month, saved non-regular income, or saved money left over after they met their spending needs. This proportion increased to four in five of young non-homeowning adults in 2020.

    In general, young non-homeowners are also financially planning further ahead. In 2006, 47% were planning more than a year ahead. By 2020, this share had risen to 55%.

    How are some young people buying houses?

    We looked at how the personal saving habits of young people influence their homeownership chances, taking each person’s finances and living situation into account.

    Not surprisingly, saving regularly does improve the likelihood of eventually buying a house. However, being a regular saver is much less likely to offset the impact of rising prices than parental help.

    Our research found that once prices exceed three times an individual’s income, their odds of becoming a homeowner are halved.

    No, brunch is not to blame for the state of Australia’s housing market.
    Tatiana Volgutova/Shutterstock

    In much of Australia, prices are already well above that mark. In all state capitals, they’ve gone beyond six times annual household income – a line where the odds of homeownership fall to about a third.

    However, we found having access to the “bank of mum and dad” can shift these odds dramatically.

    We found receiving financial assistance of more than $5,000 quadruples the odds of becoming a homeowner.

    Parents also help in indirect ways. Young people living in rent-free dwellings provided by family or friends had more than double the odds of private renters.

    This puts those from well-off families at a distinct advantage. Those without parental assistance face steeper deposit hurdles and risk missing out on access to areas with better job prospects.

    How governments can help

    For those without parental assistance, governments have an important role to play. Property prices will continue to soar faster than incomes grow, unless policies are implemented to address both supply and demand challenges.

    Loosening restrictions on mortgage borrowing could help some first homebuyers overcome the hurdle to homeownership. But there’s a worrying trade-off between making it easier to borrow and exposing young people to more financial risk.

    Government grants that place more cash into the hands of first-time homebuyers will likely push house prices up further, unless supply of entry-level properties can keep up.

    Such grants should also be carefully targeted to those without access to personal or family resources to help buy a home.

    Finally, tax reforms could be used to increase the supply of dwellings in first homeowner entry markets, and hold back demand from multi-property owners who can crowd out first-time home buyers.



    Read more:
    Our housing system is broken and the poorest Australians are being hardest hit

    Rachel Ong ViforJ is the recipient of an Australian Research Council Future Fellowship (project FT200100422). She also receives funding from the Australian Housing and Urban Research Institute.

    Christopher Phelps and Jack Hewton do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. We know how hard it is for young people to buy a home – so how are some still doing it anyway? – https://theconversation.com/we-know-how-hard-it-is-for-young-people-to-buy-a-home-so-how-are-some-still-doing-it-anyway-248666

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Grassley, Blackburn Introduce SHOW UP Act to Get Federal Employees Back in the Office, Prevent Future Lax Telework Policies

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley
    WASHINGTON – Sen. Chuck Grassley (R-Iowa) joined Sen. Marsha Blackburn (R-Tenn.) in introducing the Stopping Home Office Work’s Unproductive Problems (SHOW UP) Act to return federal employees to in-person work.
    The legislation would require government agencies to reinstate their pre-COVID-19 telework policies and direct agency heads to submit to Congress a report on the adverse impacts of agencies’ expansion of telework policies during the COVID-19 pandemic. It would also prevent federal agencies from permanently expanding telework without submitting to Congress details on how its proposed remote work policies would bolster agency mission performance. 
    “Iowans show up for work every day, and federal agency staff need to be doing the same. The pandemic has passed, and now it’s high time to dismantle unacceptable post-COVID-19 telework policies that have led to insufficient service for the American people. We need to get the rest of the government back in the office and back to work now,” Grassley said.  
    Additional cosponsors are Sens. Mike Crapo (R-Idaho), Joni Ernst (R-Iowa), Bill Cassidy (R-La.), Thom Tillis (R-N.C.) and Pete Ricketts (R-Neb.).
    Read the bill text HERE.
    Download video of Grassley discussing the legislation HERE.
    Background:  
    In 2022, Grassley joined Sens. Roger Wicker (R-Miss.), Martin Heinrich (D-N.M.) and Mark Kelly (D-Ariz.) to introduce the Return Employees To Understaffed Worksites to Reopen Now (RETURN) Act. The bill directs federal agencies to submit a comprehensive plan to resume in-person operations and address constituents’ concerns about federal government services.
    In a letter to heads of the office of Personnel Management (OPM), the General Services Administration (GSA), and the Office of Management and Budget (OMB), the senators demanded answers regarding plans to bring federal workers back to the office.
    At a Senate Finance Committee hearing last May, Grassley pressed Social Security Administration (SSA) Commissioner Martin O’Malley on how SSA’s persistent telework policies were impacting the agency’s ability to provide services for seniors.

    MIL OSI USA News –

  • MIL-OSI USA: Jefferson, Do Non-inflationary Economic Expansions Promote Shared Prosperity? Evidence from the U.S. Labor Market

    Source: US State of New York Federal Reserve

    Thank you, Professor O’Connell, for that kind introduction and for the opportunity to talk to this group.1 I am delighted to be back at Swarthmore College. This special community brings back fond memories of fantastic students, great colleagues, and pedagogical excellence.

    Yesterday, I discussed my outlook for the current U.S. economy. I highlighted how the economy is growing and appears to be roughly in balance, with low unemployment and declining inflation. Today, I will review some of the historical evidence pertaining to periods when the Federal Reserve has achieved both components of its dual mandate, maximum employment and stable prices, on a sustained basis—that is, periods of long non-inflationary economic expansions. My title question is whether economic evidence indicates that such expansions also result in greater shared prosperity.
    My focus will be on the labor market. A reason for this focus is that for many individuals, their employment attachment is a key determinant of their household’s overall well-being. My approach will be to compare the current labor market with the labor market at the end of 2019—that is, at the end of the most recent long, non-inflationary expansion. Such a comparison provides a lens through which to view the prospects for broadly shared prosperity fostered by the current U.S. labor market.
    The remainder of my talk is organized as follows. First, I describe the labor market at the end of 2019. After that, I discuss the state of the labor market in the immediate aftermath of the COVID-19 pandemic. Then, I describe the current labor market situation. Next, I discuss possible reasons why strong labor markets facilitate broad-based prosperity. Before concluding, I consider whether the benefits of long expansions are persistent.
    The Labor Market on the Eve of the COVID-19 PandemicLet’s begin the exploration of my title question with a careful look at the situation during the historically strong labor market on the eve of the COVID-19 pandemic. Following the 2007-09 Global Financial Crisis, the U.S. economy expanded for 128 consecutive months, making it the longest economic expansion in U.S. history. During this period, as shown in figure 1, the aggregate unemployment rate fell steadily from a peak of 10 percent in October 2009 to 3.5 percent in September 2019, the lowest recorded in nearly 50 years. Job opportunities were plentiful in this strong labor market, with the ratio of vacancies to job seekers hovering around 1.2 throughout 2019, implying that businesses were seeking to fill more open positions than there were workers actively searching for employment. Moreover, while some long economic expansions have led to an unwelcome rise in prices, inflation remained low and stable. Indeed, the Federal Reserve was grappling with inflation somewhat below, rather than above, its longer-run 2 percent target.
    In addition, and perhaps related to the length of the expansion, the pre-pandemic labor market was remarkable in terms of the broad-based gains seen across demographic groups, which contributed to a historic narrowing of employment disparities. For instance, as shown in figure 2, the unemployment rate among African Americans, the solid red line, has usually been about twice as high as that for white individuals, the solid blue line, and is more sensitive to the state of the business cycle. The unemployment rate among Hispanics, the dotted green line, falls between these two groups. In late 2019, however, both African American and Hispanic unemployment rates had fallen to the lowest levels on record up to that point, significantly narrowing the persistent unemployment gaps between these groups. Before this, the greatest improvement in the unemployment rate among African Americans was at the end of the 1991–2001 economic expansion, which itself was the second longest expansion in U.S. history. But in 2019, the unemployment rate for African Americans was about 2 percentage points lower than it was in early 2001.
    The influence of the long expansion on employment gaps also was evident for other groups of workers. Like minorities, individuals with less education, and especially those who have not completed high school, also experience higher cyclical volatility in their employment.2 In 2019, as shown in figure 3, the unemployment rate gaps between workers with less than a high school education, the solid red line, and those who have attained at least a bachelor’s degree, the solid purple line, also were near multidecade lows. Further, the strong labor market created new opportunities for teens and younger workers, groups whose employment prospects, and even long-term career trajectories, are especially sensitive to the cyclical state of the economy.3
    Beyond narrowing gaps between workers actively searching for a job, the strong pre-pandemic labor market also helped draw many new participants into the labor force. Among prime-age workers, those aged 25 to 54, the labor force participation rate began rising again around 2015, as shown in figure 4, reversing a declining trend. This was true among both men, the solid black line, whose participation had been steadily declining since the 1950s, and women, the dashed red line, whose participation had previously peaked in early 2000. Labor force participation among women was rising especially briskly in the months just before the pandemic, essentially reversing its entire decline over the previous 20 years. While this partially reflects broader demographic trends such as increasing educational attainment, participation was rising for both women with and without a college degree after 2015, suggesting that the strong labor market played a part in this reversal.
    Turning now from employment and participation to earnings, nominal wages were growing solidly before the pandemic. As with gains in employment, the strong labor market was especially beneficial for some groups. Most noticeably, as shown in figure 5, wage growth for the bottom quartile of earners, the solid red line, started to pick up about five years into the expansion, in late 2014, and by 2019 was significantly stronger than for workers in higher earnings quartiles, the solid purple line.4 These differences in wage growth are important, as they imply convergence in levels and, therefore, declining wage inequality as the bottom of the distribution catches up to higher earners. Similarly, wages were growing faster for non-white workers relative to white workers in 2019, though differences by educational attainment were less pronounced at the time.
    Looking back now, the U.S. economy in 2019 was in a good place. The labor market was tight but not overheating, bringing widespread gains to workers. Further, had it not been for the sudden and dramatic interruption of the COVID-19 pandemic, this strong labor market was expected to persist. In December 2019, the median Federal Open Market Committee (FOMC) participant expected the aggregate unemployment rate to remain below 4 percent through the end of 2022 while inflation was expected to move back up to the Committee’s 2 percent objective.5 Had this long, non-inflationary expansion continued as the Committee forecast, gaps in employment and earnings across groups may have continued to narrow as well.
    The Labor Market Following the COVID-19 PandemicThe expansion, however, was cut short by the COVID-19 pandemic. In April 2020, the unemployment rate, as shown in figure 6, briefly surged to 14.8 percent, its highest rate since the Great Depression while the share of Americans seeking jobs (not shown) plummeted. Moreover, those same groups that had benefited from the strong pre-pandemic labor market—African American and Hispanic workers, women, and individuals without a college degree—generally fared worse at the onset of the pandemic. Although some of these groups typically experience greater losses in economic downturns, factors unique to the pandemic, including greater exposure to the industries most affected by lockdowns, also contributed to disparities in job losses. For instance, unlike a typical recession, the pandemic disproportionately affected service industries, which employ a larger share of women than industries like construction and manufacturing, which are generally more cyclically sensitive.
    Just as the pandemic itself led to unprecedented losses in the labor market, the subsequent recovery was unprecedented in many ways. As the health risk abated and the economy reopened, labor demand surged as businesses attempted to re-hire workers, but many workers remained on the sidelines. By late 2021, the labor force participation rate was still well below its pre-pandemic level. Vacancies rose to record levels, while, at the same time, quits, as shown in figure 7, surged as workers sought out new job opportunities, leading some to refer to the post-pandemic recovery as the “Great Resignation.” Consequently, as shown in figure 8, the gap between available jobs, the solid black line, and available workers, the dashed red line, which had been just over 1 million positions in late 2019, widened to over 6 million, the equivalent of two job openings for every unemployed worker. This was an exceptionally tight labor market, far exceeding any in recent history, including the labor market before the pandemic.
    The strong post-pandemic aggregate economy reversed the disparities between groups that initially widened in 2020. The aggregate unemployment rate fell to 3.4 percent in April 2023, its lowest since 1969. That same month, the unemployment rate for African Americans fell to 4.8 percent, the lowest level on record and 1/2 percentage point below the previous record set in 2019, as shown in figure 9 by the red solid line, which is the difference between the unemployment rate for African Americans and its own average in the year 2019.
    Although labor force participation was initially slower to recover, the labor force participation rate among prime-age women climbed to its highest level ever in 2023, well above even pre-pandemic levels, as shown in figure 10 by the red dashed line, which is the difference between the labor force participation rate for women and its own average in the year 2019.
    The tight labor market also led to a surge in nominal wage growth, especially for workers lower in the earnings distribution. In fact, as shown in figure 11, wage growth for low-wage workers, the solid red line, was strong enough, with a peak wage growth close to 7.5 percent in 2022, to drive a meaningful compression in the aggregate wage distribution (not shown). Economic research suggests that the pandemic recovery reversed around one-third of the increase in the aggregate ratio of the 90th percentile to the 10th percentile wage inequality since the 1980s.6 These gains at the bottom of the income distribution also were reflected in the experience of different demographic groups, as shown in figure 12, with stronger wage growth for nonwhite workers, the dashed red line, relative to white workers, the solid black line, and, unlike even the pre-pandemic expansion, for workers with a high school education or less relative to those with a bachelor’s degree or more.
    Unlike the noninflationary pre-pandemic expansion, however, these nominal wage gains coincided with rising prices, reducing many workers’ actual purchasing power. Real wage growth deflated by the personal consumption expenditures price index, which adjusts for the effect of inflation on workers’ purchasing power, was negative for many workers in 2022, despite strong aggregate employment growth. Further, the costs of inflation also vary across groups, and there is evidence that rising prices may hurt lower-income populations more.7 This underscores the connection between the two components of the Federal Reserve’s dual mandate to promote both maximum employment and stable prices, since the benefits of strong labor markets are eroded when accompanied by an unwelcome rise in inflation.
    The Current Labor Market SituationLet me turn now to the labor market situation more recently. As the economy has recovered from the pandemic, the labor market has come into better balance. By mid-2024, the gap between available jobs and available workers—I’ll show that figure again here—had essentially returned to where it was in 2019, reflecting both a decline in vacancies and improvements in labor supply. Various indicators pointed to a labor market that was still tight, but no longer overheating.
    Currently, the labor market remains solid, on balance, and inflation continues a bumpy descent toward the FOMC’s 2 percent objective. Layoff activity and initial claims for unemployment insurance, shown in figure 13, remain low by historical standards even as job openings have moved down to more normal levels. The unemployment rate appears to have leveled off close to what the median FOMC participant currently sees as its long-run sustainable level of 4.2 percent.8 While employment gaps between certain demographic groups have widened a touch since 2022, they remain historically narrow. Further, a welcome development as inflation has moderated is that real wage growth has picked up even as nominal wage growth has slowed. Though wages are now growing similarly across demographic groups, the narrowing of the wage gap across demographic groups realized in 2021 and 2022 persists.
    How Do Strong Labor Markets Facilitate Broad-Based Prosperity?Looking back at long, noninflationary episodes like the pre-pandemic expansion raises the question of why strong labor markets have been especially beneficial for certain demographic groups. Although the literature has not reached a definite conclusion to this question, researchers have pointed to several economic mechanisms that may help explain these patterns.
    In 1973, the economist Arthur Okun argued that “high-pressure” labor markets—such as those in 2019 and during the pandemic recovery—allowed workers to move up the job ladder, creating new opportunities for individuals on the margins of the labor market.9,10 Further, he argued that when job openings are difficult to fill, employers relax hiring standards, creating new opportunities for individuals who otherwise might struggle to find employment. Consistent with this argument, economic research shows that as the labor market strengthened from 2010 to 2014, employers reduced education and experience requirements in online job postings.11 Economic research also highlights the role of more productive job-worker matches as tight labor markets facilitate a re-allocation of labor to better and more productive jobs.12 On the participation side, the labor force participation rate tends to respond to business cycles with a significantly longer lag than the unemployment rate, for instance, due to the stickiness of decisions related to caregiving or educational responsibilities. This suggests that long expansions are especially important for drawing non-participants back into the labor market.13
    Of course, each business cycle is different, making it difficult to draw general conclusions from past episodes. The pandemic recovery, for example, led to a rise in retirements, far more than what would have been expected given population aging.14 On the downside, this contributed to the significant shortage of workers as the economy was reopening. On the upside, it may have created more opportunities for younger workers to move up the job ladder than is typical during a normal expansion, making Okun’s argument especially relevant. The COVID-19 pandemic also was a remarkable reallocation shock, and elevated quits and job switching may have improved the quality of matches between businesses and workers more than usual, potentially contributing to strong productivity growth and wage gains.
    Perhaps paradoxically, excessively tight labor markets may not be beneficial to lower-wage workers in the long run. Some economists argue that hiring difficulties may lead firms to adopt technologies that substitute, rather than complement, workers, ultimately reducing labor demand.15 Similarly, an overheating labor market may lead some workers to prioritize short-term gains over longer-term career stability. Empirical evidence, for example, suggests that during economic expansions some young people choose to take an unstable job that is likely to disappear in the next recession, rather than invest in training opportunities.16
    Are the Benefits of Long Expansions Lasting?Another key question for policymakers is whether the benefits of long expansions can be sustained, given that the same groups who benefit disproportionately from strong labor markets also fare worse in recessions. Again, the literature, while not conclusive, offers some reasons for cautious optimism. There is some empirical evidence that suggests that the benefits of tight labor markets are somewhat persistent, at least for African Americans and women.17 The fact that labor market disparities that worsened during the pandemic returned to their pre-pandemic levels so quickly following the pandemic may be another reason to be hopeful.
    ConclusionLet me conclude by offering an answer to my title question. The weight of the historical evidence I discussed today suggests that broadly shared economic prosperity is more likely when the economy grows over time with low unemployment and stable prices. While the early part of the current expansion was inflationary, the intent of monetary policy actions over the past few years has been to return us to a prolonged period where prices are stable and the labor market remains solid. The historical experience of the U.S. labor market suggests that long, noninflationary expansions are associated with narrower gaps in employment and earnings, with minority groups and less-educated workers benefiting disproportionately from sustained periods of strong economic growth. Such benefits can help make up for the disproportionate losses experienced by the same groups during economic downturns and, in some cases, may even lead to lasting gains.
    Finally, let me return to where I started, the Federal Reserve’s dual mandate: maximum employment and stable prices. The historical evidence that I have reviewed tonight suggests that shared prosperity is a byproduct of sustained accomplishment of our mission.
    Thank you.

    ReferencesAaronson, Stephanie R., Mary C. Daly, William L. Wascher, and David W. Wilcox (2019). “Okun Revisited: Who Benefits Most from a Strong Economy? (PDF)” Brookings Papers on Economic Activity, Spring, pp. 333–75.
    Akerlof, George A., Andrew K. Rose, and Janet L. Yellen (1988). “Job Switching and Job Satisfaction in the U.S. Labor Market (PDF),” Brookings Papers on Economic Activity, no. 2, pp. 495–582.
    Autor, David, Arindrajit Dube, and Annie McGrew (2023). “The Unexpected Compression: Competition at Work in the Low Wage Labor Market,” NBER Working Paper Series 31010. Cambridge, Mass.: National Bureau of Economic Research, March (revised May 2024).
    Betts, Julian R., and Laurel L. McFarland (1995). “Safe Port in a Storm: The Impact of Labor Market Conditions on Community College Enrollments,” Journal of Human Resources, vol. 30 (Autumn), pp. 741–65.
    Cajner, Tomaz, John Coglianese, and Joshua Montes (2021). “The Long-Lived Cyclicality of the Labor Force Participation Rate,” Finance and Economics Discussion Series 2021-047. Washington: Board of Governors of the Federal Reserve System, July.
    Dellas, Harris, and Plutarchos Sakellaris (2003). “On the Cyclicality of Schooling: Theory and Evidence,” Oxford Economic Papers, vol. 55 (January), pp. 148–72.
    Dellas, Harris, and Vally Koubi (2003). “Business Cycles and Schooling,” European Journal of Political Economy, vol. 19(4), pp. 843–59.
    Jefferson, Philip N. (2005). “Does Monetary Policy Affect Relative Educational Unemployment Rates?” American Economic Review, vol. 95 (May), pp.76–82.
    ——— (2008). “Educational Attainment and the Cyclical Sensitivity of Employment,” Journal of Business and Economic Statistics, vol. 26 (October), pp. 526–35.
    Krueger, Alan B. (2002). “Economic Scene: As Recovery Builds, the Less Educated Go to the End of the Employment Line,” New York Times, March 7.
    Modestino, Alicia Sasser, Daniel Shoag, and Joshua Ballance (2016). “Downskilling: Changes in Employer Skill Requirements over the Business Cycle,” Labour Economics, vol. 41 (August), pp. 333–47.
    Montes, Joshua, Christopher Smith, and Juliana Dajon (2022). ” ‘The Great Retirement Boom’: The Pandemic-Era Surge in Retirements and Implications for Future Labor Force Participation,” Finance and Economics Discussion Series 2022-081. Washington: Board of Governors of the Federal Reserve System, November.
    Okun, Arthur M. (1973). “Upward Mobility in a High-Pressure Economy (PDF),” Brookings Papers on Economic Activity, no. 1, pp. 207–52.
    Orchard, Jacob (2021), “Cyclical Demand Shifts and Cost of Living Inequality,” working paper, February (revised September 2022).
    Oreopoulos, Philip, Till von Wachter, and Andrew Heisz (2012). “The Short- and Long-Term Career Effects of Graduating in a Recession,” American Economic Journal: Applied Economics, vol. 4 (January), pp. 1–29.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
    2. See Jefferson (2005, 2008). Return to text
    3. See Oreopoulos, Von Wachter, and Heisz (2012). Return to text
    4. Nominal wages in the figure are measured by the Atlanta Fed’s Wage Growth Tracker. Series show 12-month moving averages of the median percent change in the nominal hourly wage of individuals observed 12 months apart. Workers are assigned to wage quartiles based on the average of their wage reports in both the Current Population Survey and outgoing rotation group interviews; workers in the lowest 25 percent of the average wage distribution are assigned to the 1st quartile, and those in the top 25 percent are assigned to the 4th quartile. Return to text
    5. The December 2019 median forecast of FOMC participants is taken from the Summary of Economic Projections (SEP), which is available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. FOMC participants submit projections of future economic activity and their individual views of the appropriate path of monetary policy conditional thereupon four times a year. These projections are published as the SEP. The SEP is neither a consensus forecast nor is it a commitment to a policy path. Rather, it shows the median, central tendency, and range of the participants’ projections estimated using the 19 individual projections. Return to text
    6. See Autor, Dube, and McGrew et al. (2023). Return to text
    7. See Orchard (2022). Return to text
    8. See the December 2024 median forecast of FOMC participants in the SEP, which is available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. Return to text
    9. See Okun (1973). Return to text
    10. While there is no official definition of a “high-pressure” labor market, the term usually refers to a period when the unemployment rate is below its natural rate—that is, below its long-run sustainable level. Return to text
    11. See Modestino and others (2016). Return to text
    12. See Akerlof, Rose, and Yellen (1988). Return to text
    13. See Cajner, Coglianese, and Montes (2021). Return to text
    14. See Montes, Smith, and Dajon (2022). Return to text
    15. See Krueger (2002). Return to text
    16. Specifically, empirical evidence indicates that educational enrollment rates go down during expansions. For four-year college enrollment rates, see Dellas and Sakellaris (2003); for community college enrollment rates, see Betts and McFarland (1995); for high school enrollment rates, see Dellas and Koubi (2003). Return to text
    17. See Aaronson and others (2019). Return to text

    MIL OSI USA News –

  • MIL-OSI United Kingdom: New survey suggests benefits system is letting down people with mental health conditions who want to work

    Source: United Kingdom – Executive Government & Departments

    Many sick and disabled people say they want to work to help boost their living standards – but aren’t given the right support, according to new data published on Time to Talk day today [6 February].

    • New survey suggests 200k people claiming health and disability benefits are ready for work now if the right job or support were available.
    • Comes as number of young people with a mental health condition who are economically inactive due to long-term sickness reaches over a quarter of a million (270,000)
    • Overhaul of health and disability benefit system set to be unveiled in Spring to ensure it provides meaningful support to help long term sick back into work

    Many sick and disabled people say they want to work to help boost their living standards – but aren’t given the right support, according to new data published on Time to Talk day today [6 February].

    New research published by the Department for Work and Pensions shows that nearly half (44%) of people with a mental health condition expect to be able to work in future if their health improves.

    This comes as the number of young people (aged 16 to 34) who are economically inactive due to long-term sickness and have a mental condition reaches 270,000. This number has been rising consistently over the past decade and has increased by 60,000 (26%) in the last year alone. The equivalent figure for all people of working-age (16 to 64) is 790,000 – an increase of 140,000 (22%) over the last year

    The Work Aspirations of Health and Disability Claimants survey also finds that a third (32%) of those claiming health and disability benefits believe they can work now or in future.  (5%) say that they would be ready now if the right job or support were available. This equates to around 200,000 individuals

    The survey also finds that those out of jobs overwhelmingly see work as a key part of their identity and a route to higher self-esteem, happiness and security.

    In further evidence that the current system pushes people away from work, the survey revealed that 50% of people who are on health and disability benefits and are not currently in work said they were worried they would not get their benefits back if they tried paid employment and it did not work out.

     It comes as the Work and Pensions Secretary Liz Kendall visits Workbridge charity which offers support to people who are unable to work due to mental ill health, to hear how they’re supporting people with mental health conditions into work.

    Responding to the stark survey results, the Work and Pensions Secretary has said the report demonstrates the need to reform the current welfare system, so that it offers better, meaningful support to give disabled people and people with long-term health conditions a real opportunity to find work.

    The upcoming reforms will be a key part of the government’s Plan for Change to boost employment by breaking down barriers to opportunity – creating a welfare system that promotes tailored pathways into work and accommodates the complex nature of disabilities and health conditions – and consequently, improving people’s living standards.

    Work and Pensions Secretary, Rt Hon Liz Kendall MP said:

    Today’s report shows that the broken benefits system is letting down people with mental health conditions who want to work.

    People claiming Health and Disability benefits have been classed by the system as “can’t work” and shut out of jobs and have been ignored – when they’ve been crying out for support.

    That is a serious failure. It’s bad for people, bad for businesses, which miss out on considerable talent, and bad for the economy.

    For young people in particular, being out of work can have a scarring effect that lasts a lifetime.

    On Time to Talk day, it’s time to change how we support people with long-term health conditions, such as a mental health condition, so that they have a fair chance and choice to work.

    On her visit to Workbridge, Kendall will speak to experts to hear their insights on how government and employers can better accommodate the fluctuating nature of people’s mental health – ensuring that people’s views and voices are at the heart of changes that affect them.

    We know that being in work has a positive effect on people’s mental and physical health – providing people with confidence and independence, as well as financial benefits.

    The UK remains the only G7 country that has higher levels of economic inactivity now than before the pandemic, with the benefits bill spiralling – largely driven by the increase in people claiming incapacity benefits for mental health conditions, who had not received the care and treatment they deserve.

    The reforms to the health & disability benefit system due to be unveiled in a Green Paper in Spring will consider these issues and how the government can tackle these barriers to employment, and the government will work closely alongside charities, organisations and disabled people to ensure their voices help shape any proposals for reform.

    The Green Paper will set key ambitions for creating a system that is fairer on disabled people – offering support into work which takes into consideration the realities of their health condition and life circumstances, and fairness for the taxpayer by bringing down the benefits bill.

    The reforms are expected to build on the Get Britain Working White Paper, which set out the first steps to achieving the government’s target 80% employment rate, driving up growth and driving down poverty in every corner of our country. 

    Successful steps have already been taken to offer work and life-changing support, with a record number of people with mental health conditions receiving employment advice through the NHS Talking Therapies programme.

    Alongside this support, the Government has settled record funding for the NHS – so that all people can get the care they need – and have pledged:

    • 8,500 more mental health staff
    • Mental health support teams in every school
    • Open-access mental health hubs in every community

    Additional Information

    Time to Talk Day is an initiative led by Rethink Mental Illness, Mind and Co-op to encourage people to talk about their mental health.

    Full results from the Work Aspirations of Health and Disability Claimants are available here: https://www.gov.uk/government/publications/work-aspirations-and-support-needs-of-health-and-disability-customers

    Source: The employment of disabled people 2024 – Table EIA020  Apr-Jun 24 compared to Apr-Jun 23

    Updates to this page

    Published 6 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI: LeddarTech Announces Listing Transfer to the Nasdaq Capital Market; Comments on Recent Positive Business Developments

    Source: GlobeNewswire (MIL-OSI)

    QUEBEC CITY, Canada, Feb. 05, 2025 (GLOBE NEWSWIRE) — LeddarTech® Holdings Inc. (“LeddarTech” or the “Company”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology, LeddarVision™, today announced that it has received approval from the Nasdaq Stock Market (“Nasdaq”) to transfer the listing of its securities from the Nasdaq Global Market to the Nasdaq Capital Market. The Company’s Common Shares and publicly traded warrants will continue to trade under the symbols “LDTC” and “LDTCW,” respectively. The transfer of the Company’s listing to the Nasdaq Capital Market is not expected to have any impact on trading in the Company’s securities. This transfer is expected to take effect as of the opening of trading on February 6, 2025.

    As previously disclosed, the Company received notifications from Nasdaq indicating the Company had failed to comply with certain continued listing requirements for the Nasdaq Global Market. In connection with the transfer of its listing to Nasdaq Capital Market, the Company had either cured such deficiencies or met the applicable standards on the Nasdaq Capital Market, and will be subject to robust Nasdaq Capital Market listing standards going forward.

    “We look forward to further growth and development of LeddarTech on the Nasdaq,” said Frantz Saintellemy, President and CEO of LeddarTech. “We are excited about our business momentum, as demonstrated by the selection of LeddarVision, our fusion and perception software solution, by one of the world’s leading commercial vehicle OEMs (original equipment manufacturers) for their advanced driver assistance system (ADAS) program for 2028 model year vehicles. We believe this win along with other recent announcements validate our commercial strategy and reflect the momentum that is building with our business.”

    About LeddarTech

    A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal and Tel Aviv, Israel, LeddarTech develops and provides comprehensive AI-based low-level sensor fusion and perception software solutions that enable the deployment of ADAS, autonomous driving (AD) and parking applications. LeddarTech’s automotive-grade software applies advanced AI and computer vision algorithms to generate accurate 3D models of the environment to achieve better decision making and safer navigation. This high-performance, scalable, cost-effective technology is available to OEMs and Tier 1-2 suppliers to efficiently implement automotive and off-road vehicle ADAS solutions.

    LeddarTech is responsible for several remote-sensing innovations, with over 170 patent applications (87 granted) that enhance ADAS, AD and parking capabilities. Better awareness around the vehicle is critical in making global mobility safer, more efficient, sustainable and affordable: this is what drives LeddarTech to seek to become the most widely adopted sensor fusion and perception software solution.

    Additional information about LeddarTech is accessible at www.leddartech.com and on LinkedIn, Twitter (X), Facebook and YouTube.

    Forward-Looking Statements

    Certain statements contained in this Press Release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which forward-looking statements also include forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws), including, but not limited to, statements relating to LeddarTech’s selection by the OEM referred to above, anticipated strategy, future operations, prospects, objectives and financial projections and other financial metrics and ability to comply with Nasdaq Capital Markets listing standards in the future. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation, our ability to continue to maintain compliance with Nasdaq continued listing standards following our transfer to the Nasdaq Capital Market, as well as: (i) the risk that LeddarTech and the OEM referred to above are unable to agree to final terms in definitive agreements; (ii) the volume of future orders (if any) from this OEM, actual revenue derived from expected orders, and timing of revenue, if any; (iii) our ability to timely access sufficient capital and financing on favorable terms or at all; (iv) our ability to maintain compliance with our debt covenants, including our ability to enter into any forbearance agreements, waivers or amendments with, or obtain other relief from, our lenders as needed; (v) our ability to execute on our business model, achieve design wins and generate meaningful revenue; (vi) our ability to successfully commercialize our product offering at scale, whether through the collaboration agreement with Texas Instruments, a collaboration with a Tier 2 supplier or otherwise; (vii) changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, projects, prospects and plans; (viii) changes in general economic and/or industry-specific conditions; (ix) our ability to retain, attract and hire key personnel; (x) potential adverse changes to relationships with our customers, employees, suppliers or other parties; (xi) legislative, regulatory and economic developments; (xii) the outcome of any known and unknown litigation and regulatory proceedings; (xiii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities and any epidemic, pandemic or disease outbreak, as well as management’s response to any of the aforementioned factors; and (xiv) other risk factors as detailed from time to time in LeddarTech’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors contained in LeddarTech’s Form 20-F filed with the SEC. The foregoing list of important factors is not exhaustive. Except as required by applicable law, LeddarTech does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact:
    Chris Stewart, Chief Financial Officer, LeddarTech Holdings Inc.

    Tel.: + 1-514-427-0858, chris.stewart@leddartech.com

    Leddar, LeddarTech, LeddarVision, LeddarSP, VAYADrive, VayaVision and related logos are trademarks or registered trademarks of LeddarTech Holdings Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

    LeddarTech Holdings Inc. is a public company listed on the Nasdaq under the ticker symbol “LDTC.”

    The MIL Network –

  • MIL-OSI: Silicon Motion Announces Results for the Period Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Fourth quarter of 2024 sales decreased 10% Q/Q and decreased 6% Y/Y
      • SSD controller sales: 4Q of 2024 decreased 5% to 10% Q/Q and decreased 5% to 10% Y/Y
      • eMMC+UFS controller sales: 4Q of 2024 decreased 10% to 15% Q/Q and were flat Y/Y
      • SSD solutions sales: 4Q of 2024 decreased 35% to 40% Q/Q and decreased 25% to 30% Y/Y
    • Announced annual cash dividend of $2.00 per American Depositary Share (“ADS”)

    Financial Highlights

      4Q 2024 GAAP 4Q 2024 Non-GAAP*
     • Net sales $191.2 million (-10% Q/Q, -6% Y/Y) $191.2 million (-10% Q/Q, -6% Y/Y)
     • Gross margin 46.8% 47.0%
     • Operating margin 10.3% 16.5%
     • Earnings per diluted ADS $0.68 $0.91
      Full Year 2024 GAAP Full Year 2024 Non-GAAP*
     • Net sales $803.6 million (+26% Y/Y) $803.6 million (+26% Y/Y)
     • Gross margin 46.1% 46.2%
     • Operating margin 11.6% 15.3%
     • Earnings per diluted ADS $2.69 $3.43

    * Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

    TAIPEI, Taiwan and MILPITAS, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended December 31, 2024. For the fourth quarter of 2024, net sales (GAAP) decreased sequentially to $191.2 million from $212.4 million in the third quarter of 2024. Net income (GAAP) increased to $23.0 million, or $0.68 per diluted ADS (GAAP), from net income (GAAP) of $20.8 million, or $0.62 per diluted ADS (GAAP), in the third quarter of 2024.

    For the fourth quarter of 2024, net income (non-GAAP) decreased to $30.9 million, or $0.91 per diluted ADS (non-GAAP), from net income (non-GAAP) of $31.0 million, or $0.92 per diluted ADS (non-GAAP), in the third quarter of 2024.

    All financial numbers are in U.S. dollars unless otherwise noted.

    Fourth Quarter of 2024 Review

    “We continued to execute well in the fourth quarter of 2024 despite the challenging consumer market, delivering revenue within our guided range and further expanding of our gross margin,” said Wallace Kou, President and CEO of Silicon Motion. ”For the full-year 2024, revenue rebounded strongly, growing 26% as compared to full-year 2023 and well above our initial expectations at the start of the year. For the full-year 2024, gross margin (non-GAAP) increased to 46.2% from 43.0% in 2023 despite the overall market weakness in the second half of 2024. We successfully launched our industry-leading PCIE Gen 5 controllers in the second half of 2024, winning four of the six flash makers and multiple module maker customers, which are all anticipated to ramp up throughout 2025. While the consumer market remains challenging in the near-term, we remain focused on delivering strong, sustainable long-term growth by broadening our product portfolio, expanding into new markets and growing our market share in the consumer, enterprise, automotive, industrial and commercial storage markets.”

    Key Financial Results

    (in millions, except percentages and per ADS amounts) GAAP Non-GAAP
    4Q 2024 3Q 2024 4Q 2023 4Q 2024 3Q 2024 4Q 2023
    Revenue $191.2 $212.4 $202.4 $191.2 $212.4 $202.4
    Gross profit $89.5 $99.3 $88.5 $89.9 $99.3 $89.3
    Percent of revenue 46.8% 46.7% 43.7% 47.0% 46.8% 44.1%
    Operating expenses $69.9 $74.8 $71.0 $58.3 $65.1 $61.5
    Operating profit $19.7 $24.5 $17.6 $31.6 $34.2 $27.8
    Percent of revenue 10.3% 11.5% 8.7% 16.5% 16.1% 13.8%
    Earnings per diluted ADS $0.68 $0.62 $0.63 $0.91 $0.92 $0.93

    Other Financial Information

    (in millions) 4Q 2024 3Q 2024 4Q 2023
    Cash, cash equivalents, restricted cash and short-term investments—end of period $334.3 $368.6 $369.0
    Routine capital expenditures $7.3 $7.4 $3.5
    Dividend payments $16.8 $16.8 $16.7

    During the fourth quarter of 2024, we had $10.8 million of capital expenditures, including $7.3 million for the routine purchases of testing equipment, software, design tools and other items, and $3.5 million for building construction in Hsinchu.

    Business Outlook
    “Longer-term, we expect to continue increasing our market share within the mobile and PC markets through greater outsourcing by the NAND flash makers, which should drive greater revenue and profitability for Silicon Motion,” said Mr. Kou. “This year, we expect to benefit from the introduction of several new products, including our 8-channel PCIe Gen 5 controller that started shipping in the second half of 2024, our new UFS 4.1 controller for the mobile market that will begin to ramp-up in the second half of this year, and our new 4-channel mainstream PCIe Gen 5 that we expect to launch late this year. Additionally, we will benefit from our many automotive controllers that are rapidly expanding across multiple applications and our MonTitan suite of enterprise controllers that just started shipping in the second half of 2024 and are expected to increase in the second half of this year. Consumer demand remains weak in the first half of 2025 and is proving more challenging than we initially anticipated; however, we expect a strong rebound in the second half of this year driven from new product introductions and new project wins with our OEM customers, reaching close to a run-rate of $1 billion in annual revenue in 4Q25.”

    For the first quarter of 2025, management expects:

    (in millions, except percentages) GAAP Non-GAAP Adjustment Non-GAAP
    Revenue $158m to $167m
    -17.5% to -12.5% Q/Q    		 — $158m to $167m
    -17.5% to -12.5% Q/Q
    Gross margin 46.9% to 47.4% Approximately $0.1m* 47.0% to 47.5%
    Operating margin 2.3% to 5.2% Approximately $7.5m to $8.5m** 7.7% to 9.7%

    * Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
    ** Projected operating margin (non-GAAP) excludes $7.5 million to $8.5 million of stock-based compensation and dispute related expenses.

    Conference Call & Webcast:
    The Company’s management team will conduct a conference call at 8:00 am Eastern Time on February 6, 2025.

    Conference Call Details
    Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

    Participant Online Registration:
    https://register.vevent.com/register/BI742c56c62eb0464e9ba0c61a39fa4c91

    A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

    Discussion of Non-GAAP Financial Measures

    To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

    Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

    • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
    • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
    • a better understanding of how management plans and measures the Company’s underlying business; and
    • an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

    The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

    Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

    Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. 

    M&A transaction expenses consist of legal, financial advisory and other fees related to the transaction.

    Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

    Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

    Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

     
    Silicon Motion Technology Corporation
    Consolidated Statements of Income
    (in thousands, except percentages and per ADS data, unaudited)
     
      For Three Months Ended   For the Year Ended
      Dec. 31,     Sep. 30,     Dec. 31,     Dec. 31,     Dec. 31,  
      2023     2024     2024     2023     2024  
      ($)     ($)     ($)     ($)     ($)  
    Net Sales 202,379     212,412     191,160     639,142     803,552  
    Cost of sales 113,854     113,142     101,635     368,752     432,862  
    Gross profit 88,525     99,270     89,525     270,390     370,690  
    Operating expenses                  
    Research & development 56,432     58,486     54,156     174,357     217,822  
    Sales & marketing 6,205     7,009     7,360     26,920     27,450  
    General & administrative 7,600     9,315     8,350     27,923     31,354  
    Loss from settlement of litigation 720     –     –     1,312     1,250  
    Operating income 17,568     24,460     19,659     39,878     92,814  
    Non-operating income (expense)                  
    Interest income, net 4,221     3,518     3,768     12,246     14,528  
    Foreign exchange gain (loss), net (1,117 )   (488 )   1,046     914     1,391  
    Realized/Unrealized gain(loss) on investments (51 )   (602 )   956     8,002     601  
    Others, net 8     –                    –     8     –  
    Subtotal 3,061     2,428     5,770     21,170     16,520  
    Income before income tax 20,629     26,888     25,429     61,048     109,334  
    Income tax expense (benefit) (464 )   6,045     2,389     8,175     18,614  
    Net income 21,093     20,843     23,040     52,873     90,720  
                       
    Earnings per basic ADS 0.63     0.62     0.68     1.59     2.70  
    Earnings per diluted ADS 0.63     0.62     0.68     1.58     2.69  
                       
    Margin Analysis:                  
    Gross margin 43.7%     46.7%     46.8%     42.3%     46.1%  
    Operating margin 8.7%     11.5%     10.3%     6.2%     11.6%  
    Net margin 10.4%     9.8%     12.1%     8.3%     11.3%  
    　 　 　 　 　 　 　 　 　 　
    Additional Data:                  
    Weighted avg. ADS equivalents 33,416     33,687     33,690     33,353     33,642  
    Diluted ADS equivalents 33,587     33,700     33,814     33,470     33,722  
    Silicon Motion Technology Corporation
    Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)
     
      For Three Months Ended   For the Year Ended
      Dec. 31,     Sep. 30,     Dec. 31,     Dec. 31,     Dec. 31,  
    2023     2024     2024     2023     2024  
    ($)     ($)     ($)     ($)     ($)  
    Gross profit (GAAP) 88,525     99,270     89,525     270,390     370,690  
    Gross margin (GAAP) 43.7%     46.7%     46.8%     42.3%     46.1%  
    Stock-based compensation (A) 106     63     162     406     311  
    Restructuring charges 648     –     164     3,996     209  
    Gross profit (non-GAAP) 89,279     99,333     89,851     274,792     371,210  
    Gross margin (non-GAAP) 44.1%     46.8%     47.0%     43.0%     46.2%  
                          
    Operating expenses (GAAP) 70,957     74,810     69,866     230,512     277,876  
    Stock-based compensation (A) (5,680 )   (3,595 )   (9,585 )   (17,141 )   (16,645 )
    M&A transaction expenses 288     –     –     (2,606 )   –  
    Dispute related expenses (3,477 )   (6,076 )   (1,999 )   (6,973 )   (13,135 )
    Restructuring charges (638 )   –     –     (5,217 )   –  
    Operating expenses (non-GAAP) 61,450     65,139     58,282     198,575     248,096  
                       
    Operating profit (GAAP) 17,568     24,460     19,659     39,878     92,814  
    Operating margin (GAAP) 8.7%     11.5%     10.3%     6.2%     11.6%  
    Total adjustments to operating profit 10,261     9,734     11,910     36,339     30,300  
    Operating profit (non-GAAP) 27,829     34,194     31,569     76,217     123,114  
    Operating margin (non-GAAP) 13.8%     16.1%     16.5%     11.9%     15.3%  
                       
    Non-operating income (expense) (GAAP) 3,061     2,428     5,770     21,170     16,520  
    Foreign exchange loss (gain), net 1,117     488     (1,046 )   (914 )   (1,391 )
    Realized/Unrealized holding loss (gain) on investments 51     602     (956 )   (8,002 )   (601 )
    Non-operating income (expense) (non-GAAP) 4,229     3,518     3,768     12,254     14,528  
                       
    Net income (GAAP) 21,093     20,843     23,040     52,873     90,720  
    Total pre-tax impact of non-GAAP adjustments 11,429     10,824     9,908     27,423     28,308  
    Income tax impact of non-GAAP adjustments (1,202 )   (649 )   (2,049 )   (4,169 )   (3,064 )
    Net income (non-GAAP) 31,320     31,018     30,899     76,127     115,964  
                       
    Earnings per diluted ADS (GAAP) $0.63     $0.62     $0.68     $1.58     $2.69  
    Earnings per diluted ADS (non-GAAP) $0.93     $0.92     $0.91     $2.27     $3.43  
                       
    Shares used in computing earnings per diluted ADS (GAAP) 33,587     33,700     33,814     33,470     33,722  
    Non-GAAP adjustments 110     109     181     129     84  
    Shares used in computing earnings per diluted ADS (non-GAAP) 33,697     33,809     33,995     33,599     33,806  
                       
    (A) Excludes stock-based compensation as follows:                  
    Cost of sales 106     63     162     406     311  
    Research & development 4,103     2,377     6,670     11,709     11,284  
    Sales & marketing 361     455     978     1,858     1,954  
    General & administrative 1,216   　 763   　 1,937   　 3,574   　 3,407  
    Silicon Motion Technology Corporation
    Consolidated Balance Sheet
    (In thousands, unaudited)
     
      Dec. 31,   Sep. 30,   Dec. 31,
      2023   2024   2024
      ($)   ($)   ($)
    Cash and cash equivalents 314,302   313,924   276,068
    Accounts receivable (net) 194,701   202,726   233,744
    Inventories 216,950   214,574   201,154
    Refundable deposits – current 49,656   51,102   54,645
    Prepaid expenses and other current assets e17,636   38,246   31,187
    Total current assets 793,245   820,572   796,798
    Long-term investments 17,116   16,878   17,326
    Property and equipment (net) 167,417   181,983   188,398
    Other assets 30,183   29,304   30,354
    Total assets 1,007,961   1,048,737   1,032,876
               
    Accounts payable 55,586   30,888   17,773
    Income tax payable 7,544   14,444   13,176
    Accrued expenses and other current liabilities 149,680   131,143   168,624
    Total current liabilities 212,810   176,475   199,573
    Other liabilities 60,455   62,673   59,548
    Total liabilities 273,265   239,148   259,121
    Shareholders’ equity 734,696   809,589   773,755
    Total liabilities & shareholders’ equity 1,007,961   1,048,737   1,032,876
    Silicon Motion Technology Corporation
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
     
      For Three Months Ended   For the Year Ended
        Dec. 31,     Sep. 30,     Dec. 31,     Dec. 31,     Dec. 31,  
        2023     2024     2024     2023     2024  
        ($)     ($)     ($)     ($)     ($)  
    Net income   21,093     20,843     23,040     52,873     90,720  
    Depreciation & amortization   5,356     6,664     7,256     21,810     25,331  
    Stock-based compensation   5,786     3,658     9,747     17,547     16,956  
    Investment losses (gain) & disposals   (432 )   602     (956 )   (8,217 )   (601 )
    Changes in operating assets and liabilities   11,582     22,280     (45,245 )   65,070     (55,213 )
    Net cash provided by (used in) operating activities   43,385     54,047     (6,158 )   149,083     77,193  
                         
    Purchase of property & equipment   (10,758 )   (12,436 )   (10,836 )   (50,313 )   (44,449 )
    Proceeds from disposal of properties   1,228     –     3     1,228     3  
    Purchase of long-term investments   –     –     (4,173 )   –     (4,173 )
    Disposal of long-term investments   –     –     4,432     –     4,432  
    Net cash used in investing activities   (9,530 )   (12,436 )   (10,574 )   (49,085 )   (44,187 )
                         
    Dividend payments   (16,676 )   (16,812 )   (16,814 )   (16,690 )   (67,254 )
    Net cash used in financing activities   (16,676 )   (16,812 )   (16,814 )   (16,690 )   (67,254 )
                         
    Net increase (decrease) in cash, cash equivalents & restricted cash   17,179     24,799     (33,546 )   83,308     (34,248 )
    Effect of foreign exchange changes   1,508     186     (717 )   (1,373 )   (409 )
    Cash, cash equivalents & restricted cash—beginning of period   350,303     343,611     368,596     287,055     368,990  
    Cash, cash equivalents & restricted cash—end of period   368,990     368,596     334,333     368,990     334,333  


    Shareholder Litigation:
    On August 31, 2023, a Silicon Motion ADS holder (the “Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v. MaxLinear, Inc., No. 23-cv-01607 (S.D. Cal.), asserting claims against MaxLinear, Inc. (“MaxLinear”) and two of its officers (the “MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion. On August 28, 2024, the Court dismissed the complaint against the MaxLinear Defendants without prejudice for lack of standing.  On September 18, 2024, the Plaintiff filed an amended complaint against the MaxLinear Defendants, and also added Silicon Motion and two of its officers (the “Silicon Motion Defendants”), asserting substantially similar claims under the Exchange Act. The complaint seeks compensatory damages, including interest, costs and expenses, and such other equitable or injunctive relief that the court deems appropriate. The motion to dismiss the amended complaint is fully briefed. The Silicon Motion Defendants believe that the claims asserted against them are without merit and intend to defend themselves vigorously.

    About Silicon Motion:
    We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    Forward-Looking Statements:
    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

    The MIL Network –

  • MIL-OSI: Silicon Motion Announces New $50 Million Share Repurchase Program

    Source: GlobeNewswire (MIL-OSI)

    TAIPEI, Taiwan and MILPITAS, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”) today announced that its Board of Directors has authorized a new share repurchase program and approved related cash disbursement for the Company to repurchase up to $50 million of its American Depositary Shares (“ADSs”) over a six-month period (the “Repurchase Program”), effective immediately.

    “We experienced significant top-and-bottom-line growth in fiscal year 2024 as our strategy to capture greater market share and diversify our product portfolio and addressable markets is delivering results,” said Wallace Kou, President & CEO of Silicon Motion. “We are confident that our opportunities are expanding over the long-term as we enter the enterprise market with our new MonTitan platform and expand our presence in automotive, IoT, gaming, wearables and other emerging growth markets. We remain confident in our strategy, growth prospects and strong financial position and are committed to opportunistically repurchasing our shares when we believe the current equity value may not accurately reflect the strength of our business longer-term.”

    Repurchases made under the Repurchase Program will be made in the open market or according to other methods in compliance with the safe harbor provisions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), subject to market conditions, applicable legal requirements and other factors. The Company expects to use cash on hand to fund the ADS repurchases. The Repurchase Program does not obligate the Company to acquire any particular amount of ADSs, and it may be suspended at any time at the Company’s discretion.

    As of December 31, 2024, the Company had approximately $334.3 million of cash, cash equivalents, restricted cash and short-term investments.

    About Silicon Motion:

    We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    Forward-Looking Statements:

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

    The MIL Network –

  • MIL-OSI: EZCORP Reports First Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, Feb. 05, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2024.

    Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

    FIRST QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 13% to $274.8 million.
    • Net income increased 9% to $31.0 million. On an adjusted basis1, net income increased 14% to $32.6 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Adjusted EBITDA increased 12% to $53.0 million.
    • Total revenues increased 7% to $320.2 million, while gross profit increased 7% to $185.4 million.

    CEO COMMENTARY AND OUTLOOK

    Lachie Given, Chief Executive Officer, stated, “Fiscal 2025 is off to a strong start as we build on our momentum from 2024. Customer demand for immediate cash solutions and high quality, cost-effective secondhand goods remains high, as reflected by another quarter of record revenues and PLO. We also continued to drive meaningful improvements to our bottom line and deliver on the operating leverage inherent in our business, with adjusted EBITDA increasing 12% and adjusted diluted EPS increasing 17%.

    “Our consistent performance across geographies underscores the strength of our operations and customer-focused strategy. In the U.S., PLO grew 15%, driven by strong loan demand and higher average loan size. In Latin America, PLO rose 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand for loans and secondhand goods, as well as our outstanding customer service. Our EZ+ Rewards program also continues to perform exceptionally well, which accounted for 77% of all transacting customers. These results demonstrate the momentum we are gaining across markets and the success of our strategic initiatives.”

    “We are proud of the solid foundation we have built, which will enable us to continue driving growth both organically and through strategic M&A. Looking ahead, we plan to continue delivering exceptional service to our customers and enhancing value for our shareholders. We remain deeply committed to our core values of People, Pawn and Passion, and believe we are very well-positioned to deliver another record year of performance in fiscal 2025,” concluded Given.

    CONSOLIDATED RESULTS

    Three Months Ended December 31 As Reported   Adjusted1
    in millions, except per share amounts 2024
    		   2023
    		   2024
    		   2023
                   
    Total revenues $ 320.2     $ 300.0     $ 329.7     $ 300.0  
    Gross profit $ 185.4     $ 172.6     $ 190.2     $ 172.6  
    Income before tax $ 41.4     $ 37.7     $ 43.4     $ 37.8  
    Net income $ 31.0     $ 28.5     $ 32.6     $ 28.6  
    Diluted earnings per share $ 0.40     $ 0.36     $ 0.42     $ 0.36  
    EBITDA (non-GAAP measure) $ 50.8     $ 47.1     $ 53.0     $ 47.2  
                                   
    • PLO increased 13% to $274.8 million, up $31.6 million. On a same-store2 basis, PLO increased 12% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues and gross profit increased 7%, reflecting improved pawn service charge (PSC) revenues as a result of higher average PLO in addition to higher merchandise sales and merchandise sales gross profit.
    • PSC increased 10% as a result of higher average PLO.
    • Merchandise sales gross margin remains within our target range at 35%, down from 36%. Aged general merchandise was 2.1% of total general merchandise inventory. 
    • Net inventory increased 21%, due to the increase in PLO and decrease in inventory turnover to 2.7x, from 3.0x.
    • Store expenses increased 5% and 3% on a same-store basis.
    • General and administrative expenses increased 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.
    • Income before taxes was $41.4 million, up 10% from $37.7 million, and adjusted EBITDA increased 12% to $53.0 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Cash and cash equivalents at the end of the quarter was $174.5 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to cash from operating activities, partially offset by increase in earning assets, capital expenditures, taxes paid related to net share settlement of equity awards and share repurchases.

    SEGMENT RESULTS

    U.S. Pawn

    • PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.
    • PSC increased 11% as a result of higher average PLO.
    • Merchandise sales increased 3%, and gross margin was flat at 37%. Aged general merchandise increased to 2.6%, or $1.2 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.
    • Net inventory increased 17%, in line with the growth in PLO. Inventory turnover decreased to 2.5x, from 2.7x.
    • Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 11% to $52.9 million.
    • During the quarter, segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $54.6 million, up 4% (19% on constant currency basis). On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.
    • Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.
    • PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%. Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.
    • Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.
    • Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.
    • Segment contribution increased 14% to $11.6 million (24% on a constant currency basis). On an adjusted basis, segment contribution was up 22% to $12.5 million.
    • During the quarter, segment store count increased by four de novo stores to 741.

    FORM 10-Q

    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

    CONFERENCE CALL
    EZCORP will host a conference call on Thursday, February 6, 2025, at 8:00 am Central Time to discuss First Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BI86f9072cf4c447ae86954e0a22daa957. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 

    ABOUT EZCORP

    Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 

    Follow us on social media:

    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

    EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

    FORWARD LOOKING STATEMENTS

    This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

    Contact:
    Email: Investor_Relations@ezcorp.com
    Phone: (512) 314-2220

    Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.
    1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
    2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

       
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands, except per share amounts) 2024   2023
    Revenues:      
    Merchandise sales $ 186,343     $ 179,403  
    Jewelry scrapping sales   16,732       14,082  
    Pawn service charges   117,052       106,449  
    Other revenues   43       57  
    Total revenues   320,170       299,991  
    Merchandise cost of goods sold   121,824       115,210  
    Jewelry scrapping cost of goods sold   12,942       12,208  
    Gross profit   185,404       172,573  
    Operating expenses:      
    Store expenses   116,451       110,555  
    General and administrative   18,669       16,543  
    Depreciation and amortization   8,335       8,565  
    Loss (gain) on sale or disposal of assets and other   8       (172 )
    Total operating expenses   143,463       135,491  
    Operating income   41,941       37,082  
    Interest expense   3,147       3,440  
    Interest income   (2,093 )     (2,639 )
    Equity in net income of unconsolidated affiliates   (1,475 )     (1,153 )
    Other expense (income)   978       (271 )
    Income before income taxes   41,384       37,705  
    Income tax expense   10,368       9,235  
    Net income $ 31,016     $ 28,470  
           
    Basic earnings per share $ 0.57     $ 0.52  
    Diluted earnings per share $ 0.40     $ 0.36  
           
    Weighted-average basic shares outstanding   54,827       55,076  
    Weighted-average diluted shares outstanding   83,347       86,812  
                   
    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
    (in thousands, except share and per share amounts) December 31,
    2024    		   December 31,
    2023    		   September 30,
    2024
               
    Assets:          
    Current assets:          
    Cash and cash equivalents $ 174,506     $ 218,516     $ 170,513  
    Restricted cash   9,386       8,470       9,294  
    Pawn loans   274,824       243,252       274,084  
    Pawn service charges receivable, net   45,198       40,002       44,013  
    Inventory, net   199,481       164,927       191,923  
    Prepaid expenses and other current assets   36,562       44,001       39,171  
    Total current assets   739,957       719,168       728,998  
    Investments in unconsolidated affiliates   13,555       10,125       13,329  
    Other investments   51,903       51,220       51,900  
    Property and equipment, net   63,231       68,998       65,973  
    Right-of-use assets, net   227,810       231,103       226,602  
    Goodwill   304,722       303,799       306,478  
    Intangible assets, net   57,093       56,977       58,451  
    Deferred tax asset, net   24,990       25,984       25,362  
    Other assets, net   15,872       13,819       16,144  
    Total assets $ 1,499,133     $ 1,481,193     $ 1,493,237  
               
    Liabilities and equity:          
    Current liabilities:          
    Current maturities of long-term debt, net $ 103,205     $ 34,307     $ 103,072  
    Accounts payable, accrued expenses and other current liabilities   68,682       69,386       85,737  
    Customer layaway deposits   24,216       18,324       21,570  
    Operating lease liabilities, current   57,900       57,980       58,998  
    Total current liabilities   254,003       179,997       269,377  
    Long-term debt, net   224,505       326,223       224,256  
    Deferred tax liability, net   2,186       372       2,080  
    Operating lease liabilities   182,228       188,475       180,616  
    Other long-term liabilities   12,317       11,243       12,337  
    Total liabilities   675,239       706,310       688,666  
    Commitments and contingencies          
    Stockholders’ equity:          
    Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024   520       523       516  
    Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171   30       30       30  
    Additional paid-in capital   345,783       343,870       348,366  
    Retained earnings   536,427       457,929       507,206  
    Accumulated other comprehensive loss   (58,866 )     (27,469 )     (51,547 )
    Total equity   823,894       774,883       804,571  
    Total liabilities and equity $ 1,499,133     $ 1,481,193     $ 1,493,237  
                           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands) 2024   2023
       
    Operating activities:      
    Net income $ 31,016     $ 28,470  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   8,335       8,565  
    Amortization of debt discount and deferred financing costs   382       417  
    Non-cash lease expense   14,421       14,744  
    Deferred income taxes   478       345  
    Other adjustments   (617 )     (857 )
    Provision for inventory reserve   59       (156 )
    Stock compensation expense   2,597       2,264  
    Equity in net income from investment in unconsolidated affiliates   (1,475 )     (1,153 )
    Changes in operating assets and liabilities, net of business acquisitions:      
    Pawn service charges receivable   (1,368 )     (1,000 )
    Inventory   (2,384 )     2,066  
    Prepaid expenses, other current assets and other assets   1,375       (5,823 )
    Accounts payable, accrued expenses and other liabilities   (38,737 )     (33,991 )
    Customer layaway deposits   2,909       (719 )
    Income taxes   9,000       8,309  
    Net cash provided by operating activities   25,991       21,481  
    Investing activities:      
    Loans made   (247,225 )     (216,978 )
    Loans repaid   135,190       123,021  
    Recovery of pawn loan principal through sale of forfeited collateral   101,850       98,209  
    Capital expenditures, net   (5,609 )     (7,184 )
    Investment in other investments   —       (15,000 )
    Dividends from unconsolidated affiliates   1,902       1,745  
    Other   (148 )     (677 )
    Net cash used in investing activities   (14,040 )     (16,864 )
    Financing activities:      
    Taxes paid related to net share settlement of equity awards   (3,971 )     (3,253 )
    Purchase and retirement of treasury stock   (3,000 )     (3,007 )
    Payments of finance leases   (131 )     (132 )
    Net cash used in financing activities   (7,102 )     (6,392 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   (764 )     (207 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   4,085       (1,982 )
    Cash and cash equivalents and restricted cash at beginning of period   179,807       228,968  
    Cash and cash equivalents and restricted cash at end of period $ 183,892     $ 226,986  
           
    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
       
      Three Months Ended December 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 128,800     $ 57,543     $ —     $ 186,343     $ —     $ 186,343  
    Jewelry scrapping sales   15,498       1,234       —       16,732       —       16,732  
    Pawn service charges   87,876       29,176       —       117,052       —       117,052  
    Other revenues   27       16       —       43       —       43  
    Total revenues   232,201       87,969       —       320,170       —       320,170  
    Merchandise cost of goods sold   81,556       40,268       —       121,824       —       121,824  
    Jewelry scrapping cost of goods sold   11,968       974       —       12,942       —       12,942  
    Gross profit   138,677       46,727       —       185,404       —       185,404  
    Segment and corporate expenses (income):                      
    Store expenses   83,089       33,362       —       116,451       —       116,451  
    General and administrative   —       —       —       —       18,669       18,669  
    Depreciation and amortization   2,717       2,046       —       4,763       3,572       8,335  
    Loss on sale or disposal of assets and other   —       8       —       8       —       8  
    Interest expense   —       —       —       —       3,147       3,147  
    Interest income   —       (202 )     (594 )     (796 )     (1,297 )     (2,093 )
    Equity in net (income) loss of unconsolidated affiliates   —       —       (1,623 )     (1,623 )     148       (1,475 )
    Other (income) expense   (11 )     (71 )     —       (82 )     1,060       978  
    Segment contribution $ 52,882     $ 11,584     $ 2,217     $ 66,683          
    Income (loss) before income taxes             $ 66,683     $ (25,299 )   $ 41,384  
                                       

            

      Three Months Ended December 31, 2023
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 125,513     $ 53,890     $ —     $ 179,403     $ —     $ 179,403  
    Jewelry scrapping sales   12,815       1,267       —       14,082       —       14,082  
    Pawn service charges   79,073       27,376       —       106,449       —       106,449  
    Other revenues   37       16       4       57       —       57  
    Total revenues   217,438       82,549       4       299,991       —       299,991  
    Merchandise cost of goods sold   78,709       36,501       —       115,210       —       115,210  
    Jewelry scrapping cost of goods sold   11,284       924       —       12,208       —       12,208  
    Gross profit   127,445       45,124       4       172,573       —       172,573  
    Segment and corporate expenses (income):                      
    Store expenses   77,255       33,300       —       110,555       —       110,555  
    General and administrative   —       —       —       —       16,543       16,543  
    Depreciation and amortization   2,624       2,339       —       4,963       3,602       8,565  
    Loss (gain) on sale or disposal of assets and other   26       (196 )     —       (170 )     (2 )     (172 )
    Interest expense   —       —       —       —       3,440       3,440  
    Interest income   —       (420 )     (573 )     (993 )     (1,646 )     (2,639 )
    Equity in net income of unconsolidated affiliates   —       —       (1,153 )     (1,153 )     —       (1,153 )
    Other (income) expense   —       (48 )     1       (47 )     (224 )     (271 )
    Segment contribution $ 47,540     $ 10,149     $ 1,729     $ 59,418          
    Income (loss) before income taxes             $ 59,418     $ (21,713 )   $ 37,705  
                           
    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
       
      Three Months Ended December 31, 2024
      U.S. Pawn
    		   Latin America
    Pawn
    		   Consolidated
                           
    As of September 30, 2024   542       737       1,279  
    New locations opened   —       4       4  
    As of December 31, 2024   542       741       1,283  
                           
      Three Months Ended December 31, 2023
      U.S. Pawn
    		   Latin America
    Pawn
    		   Consolidated
                           
    As of September 30, 2023   529       702       1,231  
    New locations opened   —       5       5  
    Locations acquired   1       —       1  
    As of December 31, 2023   530       707       1,237  
                           

    Non-GAAP Financial Information (Unaudited)

    In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

    Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

    Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:

           
      December 31,   Three Months Ended
    December 31,
      2024
    		   2023
    		   2024
    		   2023
                                   
    Mexican peso   20.8       17.0       20.1       17.5  
    Guatemalan quetzal   7.5       7.7       7.5       7.6  
    Honduran lempira   25.0       24.3       24.8       24.4  
    Australian dollar   1.6       1.5       1.5       1.5  
                                   

    Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

    Miscellaneous Non-GAAP Financial Measures

      Three Months Ended
    December 31,
    (in millions) 2024   2023
           
    Net income $ 31.0     $ 28.5  
    Interest expense   3.1       3.4  
    Interest income   (2.1 )     (2.6 )
    Income tax expense   10.4       9.2  
    Depreciation and amortization   8.3       8.6  
    EBITDA $ 50.8     $ 47.1  
                   

            

      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted
    EPS    		   EBITDA
                               
    2025 Q1 Reported $ 320.2     $ 185.4     $ 41.4     $ 10.4     $ 31.0     $ 0.40     $ 50.8  
    FX Impact   —       —       1.0       0.2       0.8       0.01       1.0  
    Constant Currency   9.5       4.8       1.0       0.2       0.8       0.01       1.2  
    2025 Q1 Adjusted $ 329.7     $ 190.2     $ 43.4     $ 10.8     $ 32.6     $ 0.42     $ 53.0  
                                                           
      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted
    EPS    		   EBITDA
                               
    2024 Q1 Reported $ 300.0     $ 172.6     $ 37.7     $ 9.2     $ 28.5     $ 0.36     $ 47.1  
    FX Impact   —       —       0.1       —       0.1       —       0.1  
    2024 Q1 Adjusted $ 300.0     $ 172.6     $ 37.8     $ 9.2     $ 28.6     $ 0.36     $ 47.2  
                                                           
      Three Months Ended
    December 31, 2024
    (in millions) U.S. Dollar
    Amount    		   Percentage
    Change YOY
           
    Consolidated revenues $ 320.2       7 %
    Currency exchange rate fluctuations   9.5      
    Constant currency consolidated revenues $ 329.7       10 %
           
    Consolidated gross profit $ 185.4       7 %
    Currency exchange rate fluctuations   4.8      
    Constant currency consolidated gross profit $ 190.2       10 %
           
    Consolidated net inventory $ 199.5       21 %
    Currency exchange rate fluctuations   8.5      
    Constant currency consolidated net inventory $ 208.0       26 %
           
    Latin America Pawn gross profit $ 46.7       4 %
    Currency exchange rate fluctuations   4.8      
    Constant currency Latin America Pawn gross profit $ 51.5       14 %
           
    Latin America Pawn PLO $ 54.6       4 %
    Currency exchange rate fluctuations   8.1      
    Constant currency Latin America Pawn PLO $ 62.7       19 %
           
    Latin America Pawn PSC revenues $ 29.2       7 %
    Currency exchange rate fluctuations   2.8      
    Constant currency Latin America Pawn PSC revenues $ 32.0       17 %
           
    Latin America Pawn merchandise sales $ 57.5       7 %
    Currency exchange rate fluctuations   6.6      
    Constant currency Latin America Pawn merchandise sales $ 64.1       19 %
           
    Latin America Pawn segment profit before tax $ 11.6       14 %
    Currency exchange rate fluctuations   0.9      
    Constant currency Latin America Pawn segment profit before tax $ 12.5       24 %
                   

    The MIL Network –

  • MIL-OSI: EZCORP Reports First Quarter Fiscal 2025 Results Record PLO Drives Strong Increase in Net Income

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, Feb. 05, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2024.

    Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

    FIRST QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 13% to $274.8 million.
    • Net income increased 9% to $31.0 million. On an adjusted basis1, net income increased 14% to $32.6 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Adjusted EBITDA increased 12% to $53.0 million.
    • Total revenues increased 7% to $320.2 million, while gross profit increased 7% to $185.4 million.

    CEO COMMENTARY AND OUTLOOK

    Lachie Given, Chief Executive Officer, stated, “Fiscal 2025 is off to a strong start as we build on our momentum from 2024. Customer demand for immediate cash solutions and high quality, cost-effective secondhand goods remains high, as reflected by another quarter of record revenues and PLO. We also continued to drive meaningful improvements to our bottom line and deliver on the operating leverage inherent in our business, with adjusted EBITDA increasing 12% and adjusted diluted EPS increasing 17%.

    “Our consistent performance across geographies underscores the strength of our operations and customer-focused strategy. In the U.S., PLO grew 15%, driven by strong loan demand and higher average loan size. In Latin America, PLO rose 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand for loans and secondhand goods, as well as our outstanding customer service. Our EZ+ Rewards program also continues to perform exceptionally well, which accounted for 77% of all transacting customers. These results demonstrate the momentum we are gaining across markets and the success of our strategic initiatives.”

    “We are proud of the solid foundation we have built, which will enable us to continue driving growth both organically and through strategic M&A. Looking ahead, we plan to continue delivering exceptional service to our customers and enhancing value for our shareholders. We remain deeply committed to our core values of People, Pawn and Passion, and believe we are very well-positioned to deliver another record year of performance in fiscal 2025,” concluded Given.

    CONSOLIDATED RESULTS

    Three Months Ended December 31 As Reported   Adjusted1
    in millions, except per share amounts 2024
    		   2023
    		   2024
    		   2023
                   
    Total revenues $ 320.2     $ 300.0     $ 329.7     $ 300.0  
    Gross profit $ 185.4     $ 172.6     $ 190.2     $ 172.6  
    Income before tax $ 41.4     $ 37.7     $ 43.4     $ 37.8  
    Net income $ 31.0     $ 28.5     $ 32.6     $ 28.6  
    Diluted earnings per share $ 0.40     $ 0.36     $ 0.42     $ 0.36  
    EBITDA (non-GAAP measure) $ 50.8     $ 47.1     $ 53.0     $ 47.2  
                                   
    • PLO increased 13% to $274.8 million, up $31.6 million. On a same-store2 basis, PLO increased 12% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues and gross profit increased 7%, reflecting improved pawn service charge (PSC) revenues as a result of higher average PLO in addition to higher merchandise sales and merchandise sales gross profit.
    • PSC increased 10% as a result of higher average PLO.
    • Merchandise sales gross margin remains within our target range at 35%, down from 36%. Aged general merchandise was 2.1% of total general merchandise inventory. 
    • Net inventory increased 21%, due to the increase in PLO and decrease in inventory turnover to 2.7x, from 3.0x.
    • Store expenses increased 5% and 3% on a same-store basis.
    • General and administrative expenses increased 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.
    • Income before taxes was $41.4 million, up 10% from $37.7 million, and adjusted EBITDA increased 12% to $53.0 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Cash and cash equivalents at the end of the quarter was $174.5 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to cash from operating activities, partially offset by increase in earning assets, capital expenditures, taxes paid related to net share settlement of equity awards and share repurchases.

    SEGMENT RESULTS

    U.S. Pawn

    • PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.
    • PSC increased 11% as a result of higher average PLO.
    • Merchandise sales increased 3%, and gross margin was flat at 37%. Aged general merchandise increased to 2.6%, or $1.2 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.
    • Net inventory increased 17%, in line with the growth in PLO. Inventory turnover decreased to 2.5x, from 2.7x.
    • Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 11% to $52.9 million.
    • During the quarter, segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $54.6 million, up 4% (19% on constant currency basis). On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.
    • Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.
    • PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%. Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.
    • Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.
    • Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.
    • Segment contribution increased 14% to $11.6 million (24% on a constant currency basis). On an adjusted basis, segment contribution was up 22% to $12.5 million.
    • During the quarter, segment store count increased by four de novo stores to 741.

    FORM 10-Q

    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

    CONFERENCE CALL
    EZCORP will host a conference call on Thursday, February 6, 2025, at 8:00 am Central Time to discuss First Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BI86f9072cf4c447ae86954e0a22daa957. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 

    ABOUT EZCORP

    Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 

    Follow us on social media:

    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

    EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

    FORWARD LOOKING STATEMENTS

    This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

    Contact:
    Email: Investor_Relations@ezcorp.com
    Phone: (512) 314-2220

    Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.
    1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
    2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

       
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands, except per share amounts) 2024   2023
    Revenues:      
    Merchandise sales $ 186,343     $ 179,403  
    Jewelry scrapping sales   16,732       14,082  
    Pawn service charges   117,052       106,449  
    Other revenues   43       57  
    Total revenues   320,170       299,991  
    Merchandise cost of goods sold   121,824       115,210  
    Jewelry scrapping cost of goods sold   12,942       12,208  
    Gross profit   185,404       172,573  
    Operating expenses:      
    Store expenses   116,451       110,555  
    General and administrative   18,669       16,543  
    Depreciation and amortization   8,335       8,565  
    Loss (gain) on sale or disposal of assets and other   8       (172 )
    Total operating expenses   143,463       135,491  
    Operating income   41,941       37,082  
    Interest expense   3,147       3,440  
    Interest income   (2,093 )     (2,639 )
    Equity in net income of unconsolidated affiliates   (1,475 )     (1,153 )
    Other expense (income)   978       (271 )
    Income before income taxes   41,384       37,705  
    Income tax expense   10,368       9,235  
    Net income $ 31,016     $ 28,470  
           
    Basic earnings per share $ 0.57     $ 0.52  
    Diluted earnings per share $ 0.40     $ 0.36  
           
    Weighted-average basic shares outstanding   54,827       55,076  
    Weighted-average diluted shares outstanding   83,347       86,812  
                   
    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
    (in thousands, except share and per share amounts) December 31,
    2024    		   December 31,
    2023    		   September 30,
    2024
               
    Assets:          
    Current assets:          
    Cash and cash equivalents $ 174,506     $ 218,516     $ 170,513  
    Restricted cash   9,386       8,470       9,294  
    Pawn loans   274,824       243,252       274,084  
    Pawn service charges receivable, net   45,198       40,002       44,013  
    Inventory, net   199,481       164,927       191,923  
    Prepaid expenses and other current assets   36,562       44,001       39,171  
    Total current assets   739,957       719,168       728,998  
    Investments in unconsolidated affiliates   13,555       10,125       13,329  
    Other investments   51,903       51,220       51,900  
    Property and equipment, net   63,231       68,998       65,973  
    Right-of-use assets, net   227,810       231,103       226,602  
    Goodwill   304,722       303,799       306,478  
    Intangible assets, net   57,093       56,977       58,451  
    Deferred tax asset, net   24,990       25,984       25,362  
    Other assets, net   15,872       13,819       16,144  
    Total assets $ 1,499,133     $ 1,481,193     $ 1,493,237  
               
    Liabilities and equity:          
    Current liabilities:          
    Current maturities of long-term debt, net $ 103,205     $ 34,307     $ 103,072  
    Accounts payable, accrued expenses and other current liabilities   68,682       69,386       85,737  
    Customer layaway deposits   24,216       18,324       21,570  
    Operating lease liabilities, current   57,900       57,980       58,998  
    Total current liabilities   254,003       179,997       269,377  
    Long-term debt, net   224,505       326,223       224,256  
    Deferred tax liability, net   2,186       372       2,080  
    Operating lease liabilities   182,228       188,475       180,616  
    Other long-term liabilities   12,317       11,243       12,337  
    Total liabilities   675,239       706,310       688,666  
    Commitments and contingencies          
    Stockholders’ equity:          
    Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024   520       523       516  
    Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171   30       30       30  
    Additional paid-in capital   345,783       343,870       348,366  
    Retained earnings   536,427       457,929       507,206  
    Accumulated other comprehensive loss   (58,866 )     (27,469 )     (51,547 )
    Total equity   823,894       774,883       804,571  
    Total liabilities and equity $ 1,499,133     $ 1,481,193     $ 1,493,237  
                           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands) 2024   2023
       
    Operating activities:      
    Net income $ 31,016     $ 28,470  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   8,335       8,565  
    Amortization of debt discount and deferred financing costs   382       417  
    Non-cash lease expense   14,421       14,744  
    Deferred income taxes   478       345  
    Other adjustments   (617 )     (857 )
    Provision for inventory reserve   59       (156 )
    Stock compensation expense   2,597       2,264  
    Equity in net income from investment in unconsolidated affiliates   (1,475 )     (1,153 )
    Changes in operating assets and liabilities, net of business acquisitions:      
    Pawn service charges receivable   (1,368 )     (1,000 )
    Inventory   (2,384 )     2,066  
    Prepaid expenses, other current assets and other assets   1,375       (5,823 )
    Accounts payable, accrued expenses and other liabilities   (38,737 )     (33,991 )
    Customer layaway deposits   2,909       (719 )
    Income taxes   9,000       8,309  
    Net cash provided by operating activities   25,991       21,481  
    Investing activities:      
    Loans made   (247,225 )     (216,978 )
    Loans repaid   135,190       123,021  
    Recovery of pawn loan principal through sale of forfeited collateral   101,850       98,209  
    Capital expenditures, net   (5,609 )     (7,184 )
    Investment in other investments   —       (15,000 )
    Dividends from unconsolidated affiliates   1,902       1,745  
    Other   (148 )     (677 )
    Net cash used in investing activities   (14,040 )     (16,864 )
    Financing activities:      
    Taxes paid related to net share settlement of equity awards   (3,971 )     (3,253 )
    Purchase and retirement of treasury stock   (3,000 )     (3,007 )
    Payments of finance leases   (131 )     (132 )
    Net cash used in financing activities   (7,102 )     (6,392 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   (764 )     (207 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   4,085       (1,982 )
    Cash and cash equivalents and restricted cash at beginning of period   179,807       228,968  
    Cash and cash equivalents and restricted cash at end of period $ 183,892     $ 226,986  
           
    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
       
      Three Months Ended December 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 128,800     $ 57,543     $ —     $ 186,343     $ —     $ 186,343  
    Jewelry scrapping sales   15,498       1,234       —       16,732       —       16,732  
    Pawn service charges   87,876       29,176       —       117,052       —       117,052  
    Other revenues   27       16       —       43       —       43  
    Total revenues   232,201       87,969       —       320,170       —       320,170  
    Merchandise cost of goods sold   81,556       40,268       —       121,824       —       121,824  
    Jewelry scrapping cost of goods sold   11,968       974       —       12,942       —       12,942  
    Gross profit   138,677       46,727       —       185,404       —       185,404  
    Segment and corporate expenses (income):                      
    Store expenses   83,089       33,362       —       116,451       —       116,451  
    General and administrative   —       —       —       —       18,669       18,669  
    Depreciation and amortization   2,717       2,046       —       4,763       3,572       8,335  
    Loss on sale or disposal of assets and other   —       8       —       8       —       8  
    Interest expense   —       —       —       —       3,147       3,147  
    Interest income   —       (202 )     (594 )     (796 )     (1,297 )     (2,093 )
    Equity in net (income) loss of unconsolidated affiliates   —       —       (1,623 )     (1,623 )     148       (1,475 )
    Other (income) expense   (11 )     (71 )     —       (82 )     1,060       978  
    Segment contribution $ 52,882     $ 11,584     $ 2,217     $ 66,683          
    Income (loss) before income taxes             $ 66,683     $ (25,299 )   $ 41,384  
                                       

            

      Three Months Ended December 31, 2023
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 125,513     $ 53,890     $ —     $ 179,403     $ —     $ 179,403  
    Jewelry scrapping sales   12,815       1,267       —       14,082       —       14,082  
    Pawn service charges   79,073       27,376       —       106,449       —       106,449  
    Other revenues   37       16       4       57       —       57  
    Total revenues   217,438       82,549       4       299,991       —       299,991  
    Merchandise cost of goods sold   78,709       36,501       —       115,210       —       115,210  
    Jewelry scrapping cost of goods sold   11,284       924       —       12,208       —       12,208  
    Gross profit   127,445       45,124       4       172,573       —       172,573  
    Segment and corporate expenses (income):                      
    Store expenses   77,255       33,300       —       110,555       —       110,555  
    General and administrative   —       —       —       —       16,543       16,543  
    Depreciation and amortization   2,624       2,339       —       4,963       3,602       8,565  
    Loss (gain) on sale or disposal of assets and other   26       (196 )     —       (170 )     (2 )     (172 )
    Interest expense   —       —       —       —       3,440       3,440  
    Interest income   —       (420 )     (573 )     (993 )     (1,646 )     (2,639 )
    Equity in net income of unconsolidated affiliates   —       —       (1,153 )     (1,153 )     —       (1,153 )
    Other (income) expense   —       (48 )     1       (47 )     (224 )     (271 )
    Segment contribution $ 47,540     $ 10,149     $ 1,729     $ 59,418          
    Income (loss) before income taxes             $ 59,418     $ (21,713 )   $ 37,705  
                           
    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
       
      Three Months Ended December 31, 2024
      U.S. Pawn
    		   Latin America
    Pawn
    		   Consolidated
                           
    As of September 30, 2024   542       737       1,279  
    New locations opened   —       4       4  
    As of December 31, 2024   542       741       1,283  
                           
      Three Months Ended December 31, 2023
      U.S. Pawn
    		   Latin America
    Pawn
    		   Consolidated
                           
    As of September 30, 2023   529       702       1,231  
    New locations opened   —       5       5  
    Locations acquired   1       —       1  
    As of December 31, 2023   530       707       1,237  
                           

    Non-GAAP Financial Information (Unaudited)

    In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

    Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

    Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:

           
      December 31,   Three Months Ended
    December 31,
      2024
    		   2023
    		   2024
    		   2023
                                   
    Mexican peso   20.8       17.0       20.1       17.5  
    Guatemalan quetzal   7.5       7.7       7.5       7.6  
    Honduran lempira   25.0       24.3       24.8       24.4  
    Australian dollar   1.6       1.5       1.5       1.5  
                                   

    Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

    Miscellaneous Non-GAAP Financial Measures

      Three Months Ended
    December 31,
    (in millions) 2024   2023
           
    Net income $ 31.0     $ 28.5  
    Interest expense   3.1       3.4  
    Interest income   (2.1 )     (2.6 )
    Income tax expense   10.4       9.2  
    Depreciation and amortization   8.3       8.6  
    EBITDA $ 50.8     $ 47.1  
                   

            

      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted
    EPS    		   EBITDA
                               
    2025 Q1 Reported $ 320.2     $ 185.4     $ 41.4     $ 10.4     $ 31.0     $ 0.40     $ 50.8  
    FX Impact   —       —       1.0       0.2       0.8       0.01       1.0  
    Constant Currency   9.5       4.8       1.0       0.2       0.8       0.01       1.2  
    2025 Q1 Adjusted $ 329.7     $ 190.2     $ 43.4     $ 10.8     $ 32.6     $ 0.42     $ 53.0  
                                                           
      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted
    EPS    		   EBITDA
                               
    2024 Q1 Reported $ 300.0     $ 172.6     $ 37.7     $ 9.2     $ 28.5     $ 0.36     $ 47.1  
    FX Impact   —       —       0.1       —       0.1       —       0.1  
    2024 Q1 Adjusted $ 300.0     $ 172.6     $ 37.8     $ 9.2     $ 28.6     $ 0.36     $ 47.2  
                                                           
      Three Months Ended
    December 31, 2024
    (in millions) U.S. Dollar
    Amount    		   Percentage
    Change YOY
           
    Consolidated revenues $ 320.2       7 %
    Currency exchange rate fluctuations   9.5      
    Constant currency consolidated revenues $ 329.7       10 %
           
    Consolidated gross profit $ 185.4       7 %
    Currency exchange rate fluctuations   4.8      
    Constant currency consolidated gross profit $ 190.2       10 %
           
    Consolidated net inventory $ 199.5       21 %
    Currency exchange rate fluctuations   8.5      
    Constant currency consolidated net inventory $ 208.0       26 %
           
    Latin America Pawn gross profit $ 46.7       4 %
    Currency exchange rate fluctuations   4.8      
    Constant currency Latin America Pawn gross profit $ 51.5       14 %
           
    Latin America Pawn PLO $ 54.6       4 %
    Currency exchange rate fluctuations   8.1      
    Constant currency Latin America Pawn PLO $ 62.7       19 %
           
    Latin America Pawn PSC revenues $ 29.2       7 %
    Currency exchange rate fluctuations   2.8      
    Constant currency Latin America Pawn PSC revenues $ 32.0       17 %
           
    Latin America Pawn merchandise sales $ 57.5       7 %
    Currency exchange rate fluctuations   6.6      
    Constant currency Latin America Pawn merchandise sales $ 64.1       19 %
           
    Latin America Pawn segment profit before tax $ 11.6       14 %
    Currency exchange rate fluctuations   0.9      
    Constant currency Latin America Pawn segment profit before tax $ 12.5       24 %
                   

    The MIL Network –

  • MIL-OSI: Weatherford Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Fourth quarter revenue of $1,341 million decreased 5% sequentially and 2% year-over-year; full year revenue of $5,513 million increased 7% from prior year, driven by international revenue growth of 10%
    • Fourth quarter operating income of $198 million decreased 19% sequentially and 8% year-over-year; full year operating income of $938 million increased 14% from prior year
    • Fourth quarter net income of $112 million, an 8.4% margin, decreased 29% sequentially and 20% year-over-year; full year net income of $506 million, a 9.2% margin, increased by 21% from prior year
    • Fourth quarter adjusted EBITDA* of $326 million, a 24.3% margin, decreased 8%, or 88 basis points, sequentially and increased 2%, or 74 basis points, year-over-year; full year adjusted EBITDA* of $1,382 million, a 25.1% margin, increased 17%, or 197 basis points, from prior year
    • Fourth quarter cash provided by operating activities of $249 million and adjusted free cash flow* of $162 million; full year cash provided by operating activities of $792 million and adjusted free cash flow* of $524 million
    • Shareholder return of $67 million for the quarter, which included dividend payments of $18 million and share repurchases of $49 million
    • Board approved quarterly cash dividend of $0.25 per share, payable on March 19, 2025, to shareholders of record as of February 21, 2025

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the fourth quarter of 2024 and full year 2024.

    Revenues for the fourth quarter of 2024 were $1,341 million, a decrease of 5% sequentially and 2% year-over-year. Operating income was $198 million in the fourth quarter of 2024, compared to $243 million in the third quarter of 2024 and $216 million in the fourth quarter of 2023. Net income in the fourth quarter of 2024 was $112 million, with an 8.4% margin, a decrease of 29%, or 279 basis points, sequentially, and a decrease of 20%, or 193 basis points, year-over-year. Adjusted EBITDA* was $326 million, a 24.3% margin, a decrease of 8%, or 88 basis points, sequentially, and an increase of 2%, or 74 basis points, year-over-year. Basic income per share in the fourth quarter of 2024 was $1.54 compared to $2.14 in the third quarter of 2024 and $1.94 in the fourth quarter of 2023. Diluted income per share in the fourth quarter of 2024 was $1.50 compared to $2.06 in the third quarter of 2024 and $1.90 in the fourth quarter of 2023.

    Fourth quarter 2024 cash flows provided by operating activities were $249 million, compared to $262 million in the third quarter of 2024, and $375 million in the fourth quarter of 2023. Adjusted free cash flow* was $162 million, a decrease of $22 million sequentially, and $153 million year-over-year. Capital expenditures were $100 million in the fourth quarter of 2024, compared to $78 million in the third quarter of 2024, and $67 million in the fourth quarter of 2023.

    Revenue for the full year 2024 was $5,513 million, compared to revenues of $5,135 million in 2023. Operating income for the full year was $938 million, compared to $820 million in 2023. The Company’s full year 2024 net income was $506 million, compared to $417 million in 2023. Full year cash flows provided by operations were $792 million, compared to $832 million in 2023. Adjusted free cash flow* for the full year was $524 million compared to $651 million in 2023. Capital expenditures for the full year 2024 were $299 million, compared to $209 million in 2023.

    Girish Saligram, President and Chief Executive Officer, commented, “The fourth quarter witnessed a significant drop in activity levels in Latin America and a more cautious tone in a few key geographies. Despite a challenging environment in the fourth quarter, the overall full year 2024 was another one of setting new operational highs, and I would like to express my gratitude to the One Weatherford team for that. We ended the year with the best safety record we have ever had, strong margin expansion and solid cash generation.

    While the activity outlook continues to evolve, margins and cash flow performance continue to be the cornerstone of our financial and strategic objectives. We are well-positioned to deliver another year of strong cash flow generation in 2025. While there is some temporary activity reduction, we continue to believe in the industry’s mid to long-term resilience and remain committed to our goal of achieving EBITDA margins in the high 20’s over the next few years.”

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Operational & Commercial Highlights

    • ADNOC awarded Weatherford a three-year contract for the provision of rigless services as part of the reactivation of ADNOC’s onshore strings.
    • Kuwait Oil Company (KOC) awarded Weatherford a Managed Pressure Drilling (MPD) services contract focused on improving operational efficiency, enhancing safety, accelerating well-delivery timelines, and reducing costs by deploying Weatherford’s innovative VictusTM Intelligent MPD system.
    • KOC awarded Weatherford a one-year contract to provide and operate two onshore Real Time Decision Centers.
    • A National Oil Company (NOC) in Qatar awarded Weatherford a five-year contract to provide fishing and drilling tools, with a five-year extension option.
    • An NOC in Asia awarded Weatherford a three-year contract for the provision of Wireline conveyance and tooling services and a three-year contract for Tubular Running Services (TRS) in onshore India.
    • OMV Petrom awarded Weatherford a two-year contract for openhole and cased-hole logging services in Romania.
    • A major operator in Asia awarded Weatherford a three-year contract for providing ModusTM MPD services for two zones in North and South Sumatra, and awarded a five-year contract to provide openhole and cased-hole Wireline in onshore Indonesia.
    • Khalda awarded Weatherford a three-year contract to deploy up to 300 wells in Egypt using CygNet® SCADA and ForeSite® platform.
    • Azule Energy awarded Weatherford a three-year contract to provide TRS for the NGC Project in offshore Angola. This is in addition to the recently awarded TRS contract in block 15/06 in the deepwater block.
    • PTTEP awarded Weatherford a 24-month contract to provide openhole Wireline Services in onshore Thailand.
    • A major operator in Asia awarded Weatherford with a four-year contract to provide Rotating Control Devices to enable MPD in offshore Indonesia.
    • Shell Petroleum Development Company awarded Weatherford a three-year contract to provide Well Completions and other related specialized services in onshore Nigeria.

    Technology Highlights
    On January 14, 2025, at the annual IKTVA forum held at Dahan Dharan Expo, Weatherford signed an agreement with SPARK, a fully integrated industrial ecosystem aimed at making Saudi Arabia a global energy hub. This strategic partnership, aligned with Saudi Arabia’s Vision 2030, enhances Weatherford’s local presence, boosts production capabilities, and supports the region’s energy goals. By advancing local content, fostering talent, and driving innovation, Weatherford demonstrates its commitment to economic growth and to supporting Saudi Arabia’s leadership in energy innovation.

    • Drilling & Evaluation (“DRE”)
      • In the North Sea, Weatherford successfully deployed the world’s first Dual Advanced Kickover Tool for Equinor. The unique solution enables gas lift valve replacements in just a single run, which significantly increases efficiency and reduces cost of conventional systems.
      • In Saudi Arabia, Weatherford deployed its compact wireline logging tools with shuttle technology to achieve a record total depth for Aramco. This extended reach well features the longest horizontal section, measuring 23,000 feet.
    • Well Construction and Completions (“WCC”)
      • In deepwater Brazil, Weatherford successfully installed the first OptiRoss® RFID Multi-Cycle Sliding Sleeve Valve for a major operator. The system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
      • In the Middle East, Weatherford successfully deployed its market-leading Optimax Tubing Retrievable Safety Valve for an NOC. This deployment enabled gas lift valve replacements in a single run, significantly increasing efficiency and reducing costs compared to conventional systems.
    • Production and Intervention (“PRI”)
      • In the Middle East, Weatherford’s Alpha1Go remote re-entry system was deployed for an NOC, optimizing rig site operations by significantly reducing whipstock preparation time and minimizing red-zone exposure. This deployment improved both efficiency and safety, demonstrating the system’s effectiveness in facilitating well re-entry operations and real-time team collaboration in various rig environments.
      • In US land operations, Weatherford successfully deployed its first Reclaim Dual Barrier Plug and Abandon (P&A) system for a major operator. This innovative dual barrier P&A system safely and reliably abandons wells without the need to pull tubing. By eliminating the requirement for conventional drilling rigs, it significantly reduces costs and minimizes the carbon footprint.

    Shareholder Return

    During the fourth quarter of 2024, Weatherford repurchased shares for approximately $49 million and paid dividends of $18 million, resulting in total shareholder return of $67 million. Since the inception of the shareholder return program introduced earlier in 2024, the Company repurchased shares for approximately $99 million and paid dividends of $36 million, resulting in total shareholder return of $135 million.

    On January 29, 2025, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on March 19, 2025, to shareholders of record as of February 21, 2025.

    Results by Reportable Segment

    Drilling and Evaluation (“DRE”)

        Three Months Ended   Variance     Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Seq.     YoY   Dec 31,
    2024    		   Dec 31,
    2023    		   YoY
    Revenue   $ 398     $ 435     $ 382     (9 )%   4 %   $ 1,682     $ 1,536     10 %
    Segment Adjusted EBITDA   $ 96     $ 111     $ 97     (14 )%   (1 )%   $ 467     $ 422     11 %
    Segment Adj EBITDA Margin     24.1 %     25.5 %     25.4 %   (140) bps   (127) bps     27.8 %     27.5 %   29 bps

    Fourth quarter 2024 DRE revenue of $398 million decreased by $37 million, or 9% sequentially, primarily from lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE revenues increased by $16 million, or 4%, primarily from higher activity in North America and higher international Wireline activity, partly offset by lower activity in Latin America.

    Fourth quarter 2024 DRE segment adjusted EBITDA of $96 million decreased by $15 million, or 14% sequentially, primarily driven by lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE segment adjusted EBITDA decreased by $1 million, or 1%, primarily due to lower activity in Latin America, partly offset by improved performance in Middle East/North Africa/Asia.

    Full year 2024 DRE revenues of $1,682 million increased by $146 million, or 10% compared to 2023, as higher Wireline and Drilling-related services activity were partly offset by lower Drilling Services in Latin America.

    Full year 2024 DRE segment adjusted EBITDA of $467 million increased by $45 million, or 11% compared to 2023, as higher MPD and Wireline activity were partly offset by lower activity in Latin America.

    Well Construction and Completions (“WCC”)

        Three Months Ended   Variance     Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Seq.     YoY   Dec 31,
    2024    		   Dec 31,
    2023    		   YoY
    Revenue   $ 505     $ 509     $ 480     (1 )%   5 %   $ 1,976     $ 1,800     10 %
    Segment Adjusted EBITDA   $ 148     $ 151     $ 131     (2 )%   13 %   $ 564     $ 455     24 %
    Segment Adj EBITDA Margin     29.3 %     29.7 %     27.3 %   (36) bps   202 bps     28.5 %     25.3 %   326 bps

    Fourth quarter 2024 WCC revenue of $505 million decreased by $4 million, or 1% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC revenues increased by $25 million, or 5%, primarily due to higher activity in Middle East/North Africa/Asia and higher Liner Hangers and Well Services activity in Latin America, partly offset by lower activity in North America.

    Fourth quarter 2024 WCC segment adjusted EBITDA of $148 million decreased by $3 million, or 2% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC segment adjusted EBITDA increased by $17 million, or 13%, primarily due to higher activity in Middle East/North Africa/Asia, partly offset by lower activity in Europe/Sub-Sahara Africa/Russia.

    Full year 2024 WCC revenues of $1,976 million increased by $176 million, or 10% compared to 2023, primarily from higher activity in Middle East/North Africa/Asia and Latin America, partly offset by lower activity in North America.

    Full year 2024 WCC segment adjusted EBITDA of $564 million increased by $109 million, or 24% compared to 2023, primarily due to improved fall through in major product lines across all geographies.

    Production and Intervention (“PRI”)

        Three Months Ended   Variance       Twelve Months Ended   Variance  
    ($ in Millions)   Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Seq.     YoY     Dec 31,
    2024    		   Dec 31,
    2023    		   YoY  
    Revenue   $ 364     $ 371     $ 386     (2 )%   (6 )%   $ 1,452     $ 1,472     (1 )%
    Segment Adjusted EBITDA   $ 78     $ 83     $ 88     (6 )%   (11 )%   $ 319     $ 323     (1 )%
    Segment Adj EBITDA Margin     21.4 %     22.4 %     22.8 %   (94) bps   (137) bps     22.0 %     21.9 %   3 bps

    Fourth quarter 2024 PRI revenue of $364 million decreased by $7 million, or 2% sequentially, primarily due to lower activity in Latin America and lower Intervention Services and Drilling Tools (ISDT) activity in Europe/Sub-Sahara Africa/Russia and North America. Year-over-year PRI revenue decreased by $22 million, or 6%, as lower activity in Middle East/North Africa/Asia and Latin America was partly offset by higher Artificial Lift activity in North America.

    Fourth quarter 2024 PRI segment adjusted EBITDA of $78 million, decreased by $5 million, or 6% sequentially, primarily from lower activity in Latin America and lower ISDT activity in Europe/Sub-Sahara Africa/Russia and North America, partly offset by higher Artificial Lift activity in Middle East/North Africa/Asia. Year-over-year PRI segment adjusted EBITDA decreased by $10 million, or 11% year-over-year, primarily due to lower activity in Latin America and Europe/Sub-Sahara Africa/Russia, partly offset by better ISDT and Artificial Lift fall through in North America.

    Full year 2024 PRI revenues of $1,452 million decreased by $20 million, or 1% compared to 2023, primarily due to lower international Pressure Pumping and Digital Solutions activity, partly offset by higher ISDT activity in Europe/Sub-Sahara Africa/Russia and Middle East/North Africa/Asia.

    Full year 2024 PRI segment adjusted EBITDA of $319 million decreased by $4 million, or 1% compared to 2023, as lower activity in international Pressure Pumping and Digital Solutions was partly offset by improved performance in Artificial Lift.

    Revenue by Geography

        Three Months Ended   Variance   Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Seq.   YoY   Dec 31,
    2024    		   Dec 31,
    2023    		   YoY
    North America   $ 261   $ 266   $ 248   (2 )%   5 %   $ 1,046   $ 1,068   (2 )%
                                     
    International   $ 1,080   $ 1,143   $ 1,114   (6 )%   (3 )%   $ 4,467   $ 4,067   10 %
    Latin America     312     358     342   (13 )%   (9 )%     1,393     1,387   — %
    Middle East/North Africa/Asia     542     542     547   — %   (1 )%     2,123     1,815   17 %
    Europe/Sub-Sahara Africa/Russia     226     243     225   (7 )%   — %     951     865   10 %
    Total Revenue   $ 1,341   $ 1,409   $ 1,362   (5 )%   (2 )%   $ 5,513   $ 5,135   7 %


    North America

    Fourth quarter 2024 North America revenue of $261 million decreased by $5 million, or 2% sequentially, primarily due to activity decreases in the North and South regions, partly offset by activity increase offshore in the Gulf of Mexico. Year-over-year, North America increased by $13 million, or 5%, primarily from higher Artificial Lift and Wireline activity, partly offset by a decrease in activity across the WCC segment.

    Full year 2024 North America revenue of $1,046 million decreased by $22 million, or 2%, compared to 2023, primarily due to lower activity in the WCC and PRI segments, partly offset by higher Wireline activity.

    International

    Fourth quarter 2024 international revenue of $1,080 million decreased 6% sequentially and decreased 3% year-over-year, and full year 2024 international revenue of $4,467 million increased 10%, compared to 2023.

    Fourth quarter 2024 Latin America revenue of $312 million decreased by $46 million, or 13% sequentially, primarily due to lower Drilling-related Services, partly offset by higher Liner Hangers activity. Year-over-year, Latin America revenue decreased by $30 million, primarily due to lower activity in the DRE and PRI segments, partly offset by higher activity in Liner Hangers and Well Services.

    Full year 2024 Latin America revenue of $1,393 million was largely flat, compared to 2023.

    Fourth quarter 2024 revenue of $542 million in Middle East/North Africa/Asia was flat sequentially, as higher activity from Completions and Artificial Lift were largely offset by lower MPD and Integrated Services & Projects. Year-over-year, the Middle East/North Africa/Asia revenue decreased by $5 million, or 1%, primarily due to lower activity in the PRI segment, partly offset by higher Drilling-related services and Completions activity.

    Full year 2024 revenue of $2,123 million in Middle East/North Africa/Asia increased by $308 million, or 17%, compared to 2023, mainly due to increased activity in the DRE and WCC segments, partly offset by lower activity in Digital Solutions, Artificial Lift and Pressure Pumping.

    Fourth quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of $226 million decreased by $17 million, or 7%, sequentially, mainly driven by lower Completions and ISDT activity, partly offset by higher Wireline activity. Year-over-year Europe/Sub-Sahara Africa/Russia revenue was largely flat due to increased activity in the DRE segment, largely offset by lower activity in the WCC and PRI segments.

    Full year 2024 Europe/Sub-Sahara Africa/Russia revenue of $951 million increased by $86 million, or 10% compared to 2023, due to increased activity in the DRE and WCC segments, partly offset by lower Pressure Pumping and Artificial Lift activity.

    About Weatherford
    Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.

    Conference Call Details

    Weatherford will host a conference call on Thursday, February 6, 2025, to discuss the Company’s results for the fourth quarter ended December 31, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

    Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

    Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

    A telephonic replay of the conference call will be available until February 20, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 9530137. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

    Contacts
    For Investors:
    Luke Lemoine
    Senior Vice President, Corporate Development & Investor Relations
    +1 713-836-7777
    investor.relations@weatherford.com

    For Media:
    Kelley Hughes
    Senior Director, Communications & Employee Engagement
    media@weatherford.com

    Forward-Looking Statements

    This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies and tariffs, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

    These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    Selected Statements of Operations (Unaudited)
                         
        Three Months Ended   Year Ended
    ($ in Millions, Except Per Share Amounts)   December
    31, 2024    		   September
    30, 2024    		   December
    31, 2023    		   December
    31, 2024    		   December
    31, 2023
    Revenues:                    
    DRE Revenues   $ 398     $ 435     $ 382     $ 1,682     $ 1,536  
    WCC Revenues     505       509       480       1,976       1,800  
    PRI Revenues     364       371       386       1,452       1,472  
    All Other     74       94       114       403       327  
    Total Revenues     1,341       1,409       1,362       5,513       5,135  
                         
    Operating Income:                    
    DRE Segment Adjusted EBITDA[1]   $ 96     $ 111     $ 97     $ 467     $ 422  
    WCC Segment Adjusted EBITDA[1]     148       151       131       564       455  
    PRI Segment Adjusted EBITDA[1]     78       83       88       319       323  
    All Other[2]     11       23       13       84       38  
    Corporate[2]     (7 )     (13 )     (8 )     (52 )     (52 )
    Depreciation and Amortization     (83 )     (89 )     (83 )     (343 )     (327 )
    Share-based Compensation     (10 )     (10 )     (9 )     (45 )     (35 )
    Other Charges     (35 )     (13 )     (13 )     (56 )     (4 )
    Operating Income     198       243       216       938       820  
                         
    Other Expense:                    
    Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59     (25 )     (24 )     (31 )     (102 )     (123 )
    Loss on Blue Chip Swap Securities     —       —       —       (10 )     (57 )
    Other Expense, Net     (4 )     (41 )     (36 )     (87 ) —   (134 )
    Income Before Income Taxes     169       178       149       739       506  
    Income Tax Provision     (45 )     (12 )     (2 )     (189 )     (57 )
    Net Income     124       166       147       550       449  
    Net Income Attributable to Noncontrolling Interests     12       9       7       44       32  
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
                         
    Basic Income Per Share   $ 1.54     $ 2.14     $ 1.94     $ 6.93     $ 5.79  
    Basic Weighted Average Shares Outstanding     72.6       73.2       72.1       73.0       71.9  
                         
    Diluted Income Per Share[3]   $ 1.50     $ 2.06     $ 1.90     $ 6.75     $ 5.66  
    Diluted Weighted Average Shares Outstanding     74.5       75.2       73.9       74.9       73.7  
                                             
    [1]   Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation and other adjustments. Research and development expenses are included in segment adjusted EBITDA.
    [2]   All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.
    [3]   Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share.
    Weatherford International plc
    Selected Balance Sheet Data (Unaudited)
           
    ($ in Millions) December 31, 2024   December 31, 2023
    Assets:      
    Cash and Cash Equivalents $ 916   $ 958
    Restricted Cash   59     105
    Accounts Receivable, Net   1,261     1,216
    Inventories, Net   880     788
    Property, Plant and Equipment, Net   1,061     957
    Intangibles, Net   325     370
           
    Liabilities:      
    Accounts Payable   792     679
    Accrued Salaries and Benefits   302     387
    Current Portion of Long-term Debt   17     168
    Long-term Debt   1,617     1,715
           
    Shareholders’ Equity:      
    Total Shareholders’ Equity   1,283     922
               
    Weatherford International plc
    Selected Cash Flows Information (Unaudited)
                         
        Three Months Ended   Year Ended
    ($ in Millions)   December
    31, 2024    		   September
    30, 2024    		   December
    31, 2023    		   December
    31, 2024    		   December
    31, 2023
    Cash Flows From Operating Activities:                    
    Net Income   $ 124     $ 166     $ 147     $ 550     $ 449  
    Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:                    
    Depreciation and Amortization     83       89       83       343       327  
    Foreign Exchange Losses (Gain)     (2 )     35       43       56       116  
    Loss on Blue Chip Swap Securities     —       —       —       10       57  
    Gain on Disposition of Assets     (2 )     (1 )     —       (35 )     (11 )
    Deferred Income Tax Provision (Benefit)     —       (19 )     (19 )     8       (86 )
    Share-Based Compensation     10       10       9       45       35  
    Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits     24       30       151       (120 )     (84 )
    Other Changes, Net     12       (48 )     (39 )     (65 )     29  
    Net Cash Provided By Operating Activities     249       262       375       792       832  
                         
    Cash Flows From Investing Activities:                    
    Capital Expenditures for Property, Plant and Equipment     (100 )     (78 )     (67 )     (299 )     (209 )
    Proceeds from Disposition of Assets     13       —       7       31       28  
    Purchases of Blue Chip Swap Securities     —       —       —       (50 )     (110 )
    Proceeds from Sales of Blue Chip Swap Securities     —       —       —       40       53  
    Business Acquisitions, Net of Cash Acquired     —       (15 )     —       (51 )     (4 )
    Other Investing Activities     1       1       (71 )     36       (47 )
    Net Cash Used In Investing Activities     (86 )     (92 )     (131 )     (293 )     (289 )
                         
    Cash Flows From Financing Activities:                    
    Repayments of Long-term Debt     (23 )     (5 )     (80 )     (287 )     (386 )
    Distributions to Noncontrolling Interests     (20 )     (10 )     (31 )     (39 )     (52 )
    Tax Remittance on Equity Awards     (22 )     —       (2 )     (31 )     (56 )
    Share Repurchases     (49 )     (50 )     —       (99 )     —  
    Dividends Paid     (18 )     (18 )     —       (36 )     —  
    Other Financing Activities     (1 )     (6 )     (13 )     (19 )     (20 )
    Net Cash Used In Financing Activities   $ (133 )   $ (89 )   $ (126 )   $ (511 )   $ (514 )

                      

    Weatherford International plc
    Non-GAAP Financial Measures Defined (Unaudited)

    We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA Margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.​

    Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    *Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)
     
                         
        Three Months Ended   Year Ended
    ($ in Millions, Except Margin in Percentages)   December
    31, 2024    		   September
    30, 2024    		   December
    31, 2023    		   December
    31, 2024    		   December
    31, 2023
    Revenues   $ 1,341     $ 1,409     $ 1,362     $ 5,513     $ 5,135  
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
    Net Income Margin     8.4 %     11.1 %     10.3 %     9.2 %     8.1 %
    Adjusted EBITDA*   $ 326     $ 355     $ 321     $ 1,382     $ 1,186  
    Adjusted EBITDA Margin*     24.3 %     25.2 %     23.6 %     25.1 %     23.1 %
                         
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
    Net Income Attributable to Noncontrolling Interests     12       9       7       44       32  
    Income Tax Provision     45       12       2       189       57  
    Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59     25       24       31       102       123  
    Loss on Blue Chip Swap Securities     —       —       —       10       57  
    Other Expense, Net     4       41       36       87       134  
    Operating Income     198       243       216       938       820  
    Depreciation and Amortization     83       89       83       343       327  
    Other Charges[1]     35       13       13       56       4  
    Share-Based Compensation     10       10       9       45       35  
    Adjusted EBITDA*   $ 326     $ 355     $ 321     $ 1,382     $ 1,186  
                         
    Net Cash Provided By Operating Activities   $ 249     $ 262     $ 375     $ 792     $ 832  
    Capital Expenditures for Property, Plant and Equipment     (100 )     (78 )     (67 )     (299 )     (209 )
    Proceeds from Disposition of Assets     13       —       7       31       28  
    Adjusted Free Cash Flow*   $ 162     $ 184     $ 315     $ 524     $ 651  
    [1]   Other charges in the three and twelve months ended December 31, 2024, primarily included severance and restructuring costs and fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico.
         

    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)
     
                   
         
    ($ in Millions)   December
    31, 2024    		   September
    30, 2024    		   December
    31, 2023    		  
    Current Portion of Long-term Debt   $ 17   $ 21   $ 168  
    Long-term Debt     1,617     1,627     1,715  
    Total Debt   $ 1,634   $ 1,648   $ 1,883  
                   
    Cash and Cash Equivalents   $ 916   $ 920   $ 958  
    Restricted Cash     59     58     105  
    Total Cash   $ 975   $ 978   $ 1,063  
                   
    Components of Net Debt              
    Current Portion of Long-term Debt   $ 17   $ 21   $ 168  
    Long-term Debt     1,617     1,627     1,715  
    Less: Cash and Cash Equivalents     916     920     958  
    Less: Restricted Cash     59     58     105  
    Net Debt*   $ 659   $ 670   $ 820  
                   
    Net Income for trailing 12 months   $ 506   $ 534   $ 417  
    Adjusted EBITDA* for trailing 12 months   $ 1,382   $ 1,377   $ 1,186  
                   
    Net Leverage* (Net Debt*/Adjusted EBITDA*)     0.48 x   0.49 x   0.69 x
                         

    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    The MIL Network –