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Column: From Apple to Visa, the business world is imposing its own sanctions on Russia

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Column: From Apple to Visa, the business world is imposing its own sanctions on Russia

In 1990, McDonald’s was the sharp finish of the spear in serving to open the financial system of Soviet Russia to the Western world.

The opening of its first restaurant in Moscow’s Pushkin Sq. generated worldwide publicity because the launch of “capitalism diplomacy.” What was then the world’s greatest McDonald’s served a file 30,000 meals in a day.

At this time, three a long time later, McDonald’s is once more trying like an outlier. Its 847 eating places in Russia, of which 84% are company-owned, are apparently nonetheless working. All the 108 McDonald’s places in Ukraine are additionally company-owned.

Those that nostalgically yearn for the us, will get to expertise all of its glories for themselves.

Economist Maxim Mironov

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Whereas client firms from Apple to Walt Disney Co. to Netflix have introduced shutdowns of shipments and companies to Russia within the wake of the nation’s invasion of Ukraine, McDonald’s has been silent, making it maybe probably the most outstanding Western company to fail to take a public stand on the Russian assault.

The corporate, which has mentioned it has about 60,000 staff in Russia, didn’t reply to my request for remark.

The quandary going through McDonald’s supplies a window on how Western firms are responding to the Russian assault.

Some have been compelled by authorities orders to stop doing enterprise with Russia, together with producers of high-tech gear on which the U.S. and its European allies have positioned embargoes. Some are constrained by Western freezes on monetary transactions with the regime of Russian President Vladimir Putin.

However others have withdrawn from the Russian market voluntarily. Russia is in such unhealthy odor internationally simply now that buying and selling with the nation in any method dangers an enormous blow to an organization’s public picture.

Because of this, non-public enterprise is in impact imposing its personal sanctions on Putin.

A number of firms concerned within the Russian client market haven’t introduced exits however expressed help for his or her staff within the battle zone.

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Estée Lauder Cos., which will get about 2.7% of revenues from Russia and Ukraine, says it is going to donate to help organizations “energetic in Ukraine and in neighboring international locations” and also will be donating its merchandise “to these displaced and people in want.” It says it’s “repeatedly monitoring the state of affairs and evaluating all attainable measures” to help staff affected by the battle.

Sanctions imposed by non-public firms differ from authorities sanctions, that are designed to put such crushing monetary stress on Putin that he has no selection however to finish his battle on Ukraine, or else threat the collapse of the Russian financial system. The non-public firm sanctions seem like aimed extra at defending their very own reputations.

Many company choices to exit Russia come clothed in ethical condemnation.

“We’re compelled to behave following Russia’s unprovoked invasion of Ukraine, and the unacceptable occasions that we now have witnessed,” Visa CEO Al Kelly mentioned Saturday in asserting that his firm it will ban all transactions initiated with its branded bank cards issued by Russian monetary establishments and all transactions inside Russia initiated on non-Russian playing cards. “This battle and the continued menace to peace and stability demand we reply consistent with our values.”

MasterCard, which took comparable actions, attributed them partially to sanctions necessities. However the agency additionally mentioned it had determined by itself to “droop our community companies in Russia” and referred in its announcement to the “stunning and devastating” penalties of the Russian invasion.

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How lengthy American and European international locations will keep their casual embargoes is tough to evaluate.

Amongst these desiring to return to the Russian market, the important concern is the place to search out the reentry level at which buying and selling with Russia is once more socially acceptable: Would it not be the ceasing of the assault? The withdrawal of all Russian forces from Ukrainian territory? The resignation or ouster of Putin?

Some on Wall Road have even begun anticipating the top of the battle and a attainable restoration within the worth of Russian property. Goldman Sachs and JPMorgan Chase have begun shopping for Russian company bonds which have been diminished to junk standing by sanctions, in response to Bloomberg.

Market observers warn, nonetheless, that these are usually not typical distressed property of the kind that usually entice cut price hunters, as dabbling in Russian securities beneath present circumstances will be taken by the general public as an indication of ethical turpitude.

Though Russia has turn into built-in with Western economies, the nation represents a comparatively small share of revenues or income for big multinationals.

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Apple is estimated to lose $3 million a day in iPhone gross sales as a consequence of its embargo of the Russian market, in response to a calculation by Burga, an iPhone case maker. That will sound like rather a lot, totaling greater than $1.1 billion a yr — however it’s nearly pocket change in contrast with worldwide iPhone gross sales of $192 billion in 2021.

Different main American client firms with publicity to Russia are inclined to attribute single-digit percentages of revenues to that market, in response to an evaluation by JPMorgan Chase. The evaluation discovered that the typical direct publicity to the Russian market amongst these firms is 4%.

For instance, the cruise line Carnival Corp., which mentioned it will drop St. Petersburg from its itineraries, will get 3.6% of its income from Russia and Ukraine, in response to the evaluation.

Many of the firms screened by the Morgan analysts for direct publicity to the Russian market haven’t but introduced withdrawals, however stress on them is mounting. New York State Comptroller Thomas DiNapoli, who supervises the state’s $280-billion public pension fund, final week urged a raft of U.S. firms to droop their operations in Russia on each monetary and ethical grounds.

Halting Russian operations, DiNapoli mentioned in letters to the businesses, “would deal with numerous funding dangers related to the Russian market and play an essential function in condemning Russia’s function in essentially undermining the worldwide order that’s important to a robust and wholesome world financial system.” The letters went to PepsiCo, McDonald’s, Mondelez Worldwide (the maker of snacks comparable to Oreo cookies), Estée Lauder, Kimberly-Clark and Coty, amongst others.

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Of these firms, McDonald’s obtains the biggest income share from Russia and Ukraine, about 9%. That determine is an artifact of the corporate’s enterprise mannequin, beneath which the overwhelming majority of its shops worldwide, outdoors Russia and Ukraine, are owned and operated by unbiased franchisees, not the corporate itself.

Aside from McDonald’s, the corporate with the biggest income share from Russia and Ukraine is the tobacco firm Philip Morris, with 8%, in response to Morgan.

People are strongly in favor of firms’ reducing ties to Russia — 75%, in response to a ballot by Morning Seek the advice of, which mentioned the sentiment crosses partisan traces. That means that remaining publicly recognized with the Russian market is unhealthy PR.

Essentially the most aggressive exits from Russian involvement seem like taken by oil and fuel firms, which prior to now have been among the many most enthusiastic companions in Russian offers.

Their participation isn’t shocking, as a result of petroleum lengthy has been Russia’s main export. Alternatively, stress is rising for a world embargo on Russian oil, although which will effectively drive world oil costs, which have already been pushed over $130 per barrel, even larger.

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ExxonMobil introduced on March 1 that it will exit the Sakhalin-1 undertaking in Russia’s far east and “is not going to put money into new developments in Russia.” The corporate, which valued its Russian property at $4.6 billion in its 2021 annual report, didn’t say whether or not its withdrawal is everlasting however tied it to “the present state of affairs.”

There’s little query that the worldwide sanctions — official authorities freezing of financial institution accounts and different monetary property in addition to buying and selling halts imposed by non-public firms — will strike hardest at strange Russian customers. “Very quickly, Russian will likely be confronted with shortfalls of primary merchandise,” Maxim Mironov, an economist at IE Enterprise College in Madrid, observed last week on Twitter. “I’m not speaking about iPhones … however about meals, clothes, automobiles, white items, and many others.”

This isn’t the primary time that firms with lengthy histories in Russia have skilled the drawbacks of doing enterprise beneath the Putin regime.

In 2014, Putin‘s authorities focused the corporate’s eating places, which then numbered 435, for a raft of “sanitation” inspections in what was broadly seen as retaliation for Western criticism of Putin’s annexation of the Ukrainian area of Crimea earlier that yr. 9 have been closed, together with the landmark Pushkin Sq. location, although they have been later reopened.

What stays unclear in regards to the worldwide neighborhood’s monetary battle on Russia is the way it will have an effect on Western traders, a few of whom personal property stranded by the sanctions, or Western customers, who might pay larger costs for fuel or different merchandise depending on Russian pure assets. All that’s clear is that the Russian financial system is on the verge of being knocked again by a long time, with a murky future.

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If your kid wants skin-care gifts for the holidays, here are some risks to consider

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If your kid wants skin-care gifts for the holidays, here are some risks to consider

As parents rush into malls for the final days of Christmas shopping, many will be armed with wishlists full of beauty products for their children.

Skin care is a fast-growing phenomenon among Gen Alpha, typically defined as those born from 2010 and on. Dubbed “Sephora kids,” the tweens and teens have been buying up products from buzzy brands including Drunk Elephant, Bubble and Glow Recipe and diligently following multistep, antiaging skin-care routines popularized on social media.

With kids becoming a powerful segment of the booming $164-billion global skin-care industry, brands have been catering to them with new products packaged in colorful, eye-catching bottles and jars.

Dermatologists say getting children into the habit of taking care of their skin is a good thing, but they’re urging parents to exercise caution as they splurge on holiday gifts.

“For pediatric dermatology, we always say to be very mindful and wary of active ingredients that are in products,” said Dr. Jayden Galamgam, a pediatric dermatologist at UCLA Health. “A lot of the time, simple is better.”

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What products are OK for my kid to use?

A gentle cleanser, a hydrating moisturizer and a good sunscreen are recommended and appropriate for any age.

“You don’t need to be using all these products; you don’t need a 10-step routine,” Galamgam said. “Use three products. Most don’t need anything more than that.”

Look for broad-spectrum sunscreen with an SPF of 30 or higher; it should be worn daily and reapplied every couple of hours.

What products should I avoid?

Anti-wrinkle serums, exfoliants and peels are not appropriate for children. Avoid products containing potent alpha hydroxy acids, beta hydroxy acids and retinol, Galamgam said.

“I would definitely try to stay away from those, because they can cause a lot of irritation for kids,” he said.

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Social media trends often encourage tweens to experiment with cosmetics that are inappropriate for their skin type or age, so parents need to look carefully at ingredient labels before buying, said Sam Cutler, founder of Beverly Hills-based tween skin-care brand Petite ’n Pretty.

“We want to caution parents about the growing trend of products marketed as ‘kid-friendly’ due to their bright, playful packaging, which can be misleading,” she said. “Many of these products are formulated for adults and contain harsh ingredients, such as hydroxy acids, retinoids and artificial fragrances, which are too aggressive for young, delicate skin and can cause irritation or long-term damage.”

My kid wants antiaging products anyway. What should I say?

You can talk to them them about the potential harmful side effects, and about the risks of following the advice of online “skinfluencers.”

“There are a lot of teens that are using these products inappropriately due to misinformation or wanting to fit in with their friends based on what they’re seeing on TikTok,” said Dr. Carol Cheng, a pediatric dermatologist and an assistant clinical professor of dermatology at UCLA.

“They’re easily susceptible. A lot of them don’t realize that these influencers are probably being paid to promote certain products.”

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Is anything being done to protect kids from potentially harmful skin-care products?

In February, California Assemblymember Alex Lee introduced legislation to ban the sale of antiaging products to kids under the age of 13, but the bill failed to pass in the California Legislature.

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Ivan Boesky Was Seen as Greed Incarnate, and Never Said Otherwise

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Ivan Boesky Was Seen as Greed Incarnate, and Never Said Otherwise

Before the answers to life’s questions fit in our pocket, you used to have to turn a dial. If you were lucky, Phil Donahue would be on, ready to guide you toward enlightenment. In a stroke of deluxe good fortune, Dr. Ruth Westheimer might have stopped by to be the enlightenment. He was the search engine. She was a trusted result.

Donahue hailed from Cleveland. The windshield glasses, increasingly snowy thatch of hair, marble eyes, occasional pair of suspenders and obvious geniality said “card catalog,” “manager of the ’79 Reds,” “Stage Manager in a Chevy Motors production of ‘Our Town.’” Dr. Ruth was Donahue’s antonym, a step stool to his straight ladder. She kept her hair in a butterscotch helmet, fancied a uniform of jacket-blouse-skirt and came to our aid, via Germany, with a voice of crinkled tissue paper. Not even eight years separated them, yet so boyish was he and so seasoned was she that he read as her grandson. (She maybe reached his armpit.) Together and apart, they were public servants, American utilities.

Donahue was a journalist. His forum was the talk show, but some new strain in which the main attraction bypassed celebrities. People — every kind of them — lined up to witness other people being human, to experience Donahue’s radical conduit of edification, identification, curiosity, shock, wonder, outrage, surprise and dispute, all visible in the show’s televisual jackpot: cutaways to us, reacting, taking it all in, nodding, gasping. When a celebrity made it to the “Donahue” stage — Bill Clinton, say, La Toya Jackson, the Judds — they were expected to be human, too, to be accountable for their own humanity. From 1967 to 1996, for more than 6,000 episodes, he permitted us to be accountable to ourselves. 

What Donahue knew was that we — women especially — were eager, desperate, to be understood, to learn and learn and learn. We call his job “host” when, really, the way he did it, running that microphone throughout the audience, racing up, down, around, sticking it here then here then over here, was closer to “switchboard operator.” It was “hot dog vendor at Madison Square Garden.” The man got his steps in. He let us do more of the questioning than he did — he would just edit, interpret, clarify. Egalitarianism ruled. Articulation, too. And anybody who needed the mic usually got it.

The show was about both what was on our mind and what had never once crossed it. Atheism. Naziism. Colorism. Childbirth. Prison. Rapists. AIDS. Chippendales, Chernobyl, Cher. Name a fetish, Phil Donahue tried to get to its bottom, sometimes by trying it himself. (Let us never forget the episode when he made his entrance in a long skirt, blouse and pussy bow for one of the show’s many cross-dressing studies.) Now’s the time to add that “Donahue” was a morning talk show. In Philadelphia, he arrived every weekday at 9 a.m., which meant that, in the summers, I could learn about compulsive shopping or shifting gender roles from the same kitchen TV set as my grandmother.

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Sex and sexuality were the show’s prime subjects. There was so much that needed confessing, correction, corroboration, an ear lent. For that, Donahue needed an expert. Many times, the expert was Dr. Ruth, a godsend who didn’t land in this country until she was in her late 20s and didn’t land on television until she was in her 50s. Ruth Westheimer arrived to us from Germany, where she started as Karola Ruth Siegel and strapped in as her life corkscrewed, as it mocked fiction. Her family most likely perished in the Auschwitz death camps after she was whisked to the safety of a Swiss children’s home, where she was expected to clean. The twists include sniper training for one of the military outfits that would become the Israel Defense Forces, maiming by cannonball on her 20th birthday, doing research at a Planned Parenthood in Harlem, single motherhood and three husbands. She earned her doctorate from Columbia University, in education, and spent her postdoc researching human sexuality. And because her timing was perfect, she emerged at the dawn of the 1980s, an affable vector of an era’s craze for gnomic sages (Zelda Rubinstein, Linda Hunt, Yoda), masterpiece branding and the nasty.

Hers was the age of Mapplethorpe and Madonna, of Prince, Skinemax and 2 Live Crew. On her radio and television shows, in a raft of books and a Playgirl column and through her promiscuous approach to talk-show appearances, she aimed to purge sex of shame, to promote sexual literacy. Her feline accent and jolly innuendo pitched, among other stuff, the Honda Prelude, Pepsi, Sling TV and Herbal Essences. (“Hey!” she offers to a young elevator passenger. “This is where we get off.”) The instructions for Dr. Ruth’s Game of Good Sex says it can be played by up to four couples; the board is vulval and includes stops at “Yeast Infection,” “Chauvinism” and “Goose Him.”

On “Donahue,” she is direct, explicit, dispelling, humorous, clear, common-sensical, serious, vivid. A professional therapist. It was Donahue who handled the comedy. On one visit in 1987, a caller needs advice about a husband who cheats because he wants to have sex more often than she does. Dr. Ruth tells Donahue that if the caller wants to keep the marriage, and her husband wants to do it all the time, “then what she should do is to masturbate him. And it’s all right for him to masturbate himself also a few times.” The audience is hear-a-pin-drop rapt or maybe just squirmy. So Donahue reaches into his parochial-school-student war chest and pulls out the joke about the teacher who tells third-grade boys, “Don’t play with yourself, or you’ll go blind.” And Donahue raises his hand like a kid at the back of the classroom and asks, “Can I do it till I need glasses?” Westheimer giggles, maybe noticing the large pair on Donahue’s face. This was that day’s cold open.

They were children of salesmen, these two; his father was in the furniture business, hers sold what people in the garment industry call notions. They inherited a salesman’s facility for people and packaging. When a “Donahue” audience member asks Westheimer whether her own husband believes she practices what she preaches, she says this is why she never brings him anywhere. “He would tell you and Phil: ‘Do not listen to her. It’s all talk,’” which cracks the audience up.

But consider what she talked about — and consider how she said it. My favorite Dr. Ruth word was “pleasure.” From a German mouth, the word conveys what it lacks with an American tongue: sensual unfurling. She vowed to speak about sex to mass audiences using the proper terminology. Damn the euphemisms. People waited as long as a year and a half for tickets to “Donahue” so they could damn them, too. But of everything Westheimer pitched, of all the terms she precisely used, pleasure was her most cogent product, a gift she believed we could give to others, a gift she swore we owed ourselves.

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I miss the talk show that Donahue reinvented. I miss the way Dr. Ruth talked about sex. It’s fitting somehow that this antidogmatic-yet-priestly Irish Catholic man would, on occasion, join forces with a carnal, lucky-to-be-alive Jew to urge the exploration of our bodies while demonstrating respect, civility, reciprocation. They believed in us, that we were all interesting, that we could be trustworthy panelists in the discourse of being alive. Trauma, triviality, tubal ligation: Let’s talk about it! Fear doesn’t seem to have occurred to them. Or if it did, it was never a deterrent. Boldly they went. — And with her encouragement, boldly we came.

Wesley Morris is a critic at large for The New York Times and a staff writer for the magazine.

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Party City to shut down after nearly 40 years in business

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Party City to shut down after nearly 40 years in business

Party City, the party and costume supply chain with more than 70 locations in California including several in Los Angeles, is shutting down operations immediately and laying off its employees.

In an online meeting Friday viewed by Bloomberg News, Party City Chief Executive Barry Litwin told corporate employees that it would be their last day of work. CNN reported that employees would not receive severance pay.

“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said in the video. The company will be “winding down” immediately, he said.

The chain, which has been in business for nearly 40 years and has around 700 locations, according to its website, could not handle a decrease in consumer spending triggered by everyday high prices, Litwin told employees.

Going-out-of-business sales began Friday, just 14 months after the company emerged from bankruptcy and four months after Litwin began as chief executive. The company filed for Chapter 11 bankruptcy in 2023 with about $1.8 billion in debt and emerged from the restructuring process under a plan meant to ensure its viability.

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The company, however, continued to struggle and was considering reentering bankruptcy earlier this month, Bloomberg reported. The New Jersey retailer was falling behind on rent at some locations and running out of cash, according to the report.

Several retailers and fast-casual restaurant chains have struggled this year amid rising operating costs and inflation-wary consumers, including Big Lots, which is preparing to sell its stores, and Red Lobster, which filed for bankruptcy in May. Bricks-and-mortar locations in particular are scrambling to keep up with online retailers and big-box chains.

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