World
China hands PwC a 6-month ban and fine over audit of the collapsed developer Evergrande
HONG KONG (AP) — Chinese authorities have banned the accounting firm PwC for six months and fined it over 400 million yuan ($56.4 million) over its involvement in the audit of collapsed property developer Evergrande.
The punishment is the heaviest yet for international accounting firms operating in China. PwC will be banned from signing off on any financial results in the country for six months. Already, it has been losing clients.
China’s Ministry of Finance said in a statement Friday that it was imposing 116 million yuan ($16.35 million) in fines and confiscation of illegal gains on PwC Zhong Tian, also known as PwC China, as well as a six-month business suspension, revocation of PwC’s Guangzhou branch and an administrative warning.
A separate regulator, the China Securities Regulatory Commission, also imposed fines and confiscations totaling 325 million yuan ($45.8 million) on PwC for allegedly failing to perform due diligence in the audit of Evergrande.
China’s finance ministry said PwC issued “false audit reports” of Evergrande and that the audit procedures had “serious defects” in design and implementation, leading to many false conclusions. It also accused PwC of not maintaining “professional skepticism” and failing to point out errors and a lack of information disclosure by Evergrande during the audits.
The securities regulator said 88% of the records kept by PwC regarding the real estate projects were inconsistent with the actual implementation and were “seriously unreliable.” When on-site investigations were carried out, some projects were still “a piece of vacant land” despite being considered to have met the delivery conditions, the regulator said.
“The work performed by PwC Zhong Tian’s Hengda audit team fell well below our high expectations and was completely unacceptable,” Mohamed Kande, global chair of PwC, said in a statement on its website. Hengda is the principal subsidiary of China Evergrande Group.
“It is not representative of what we stand for as a network and there is no room for this at PwC,” he said.
The statement said PwC Zhong Tian has cooperated fully with regulators, respects their decisions and will fully comply with the administrative penalties.
PwC China has fired six partners and five staff directly involved in the Hengda audit, it said. The firm is also in the process of issuing financial penalties for current and former firm leaders who were responsible for the business, the statement said.
PwC came under Beijing’s scrutiny after the January collapse of Evergrande, the world’s most indebted developer and a symbol of China’s ongoing property crisis.
China’s securities regulator said in March that Evergrande had inflated its mainland China revenues by almost $80 billion in 2019 and 2020. In May, authorities fined the company $577 million.
PwC had audited Evergrande’s accounts for 14 years until 2023 and gave it a clean bill of health.
PwC has been the largest of the “big four” accounting firms operating in China, taking in nearly 8 billion yuan ($1.1 billion) in revenues in 2022, above competitors Deloitte, KPMG and EY, according to the Chinese Institute of Certified Public Accountants.
China has been cracking down on excessive borrowing by developers during a prolonged property market slump that has hit many other parts of the economy, including construction, building materials and home appliances.
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Mistreanu reported from Taipei, Taiwan.
World
Some flu measures decline, but it’s not clear this severe season has peaked
NEW YORK (AP) — U.S. flu infections showed signs of a slight decline last week, but health officials say it is not clear that this severe flu season has peaked.
New government data posted Friday — for flu activity through last week — showed declines in medical office visits due to flu-like illness and in the number of states reporting high flu activity.
However, some measures show this season is already surpassing the flu epidemic of last winter, one of the harshest in recent history. And experts believe there is more suffering ahead.
“This is going to be a long, hard flu season,” New York State Health Commissioner Dr. James McDonald said, in a statement Friday.
One type of flu virus, called A H3N2, historically has caused the most hospitalizations and deaths in older people. So far this season, that is the type most frequently reported. Even more concerning, more than 91% of the H3N2 infections analyzed were a new version — known as the subclade K variant — that differs from the strain in this year’s flu shots.
The last flu season saw the highest overall flu hospitalization rate since the H1N1 flu pandemic 15 years ago. And child flu deaths reached 289, the worst recorded for any U.S. flu season this century — including that H1N1 “swine flu” pandemic of 2009-2010.
So far this season, there have been at least 15 million flu illnesses and 180,000 hospitalizations, the U.S. Centers for Disease Control and Prevention estimates. It also estimates there have been 7,400 deaths, including the deaths of at least 17 children.
Last week, 44 states reported high flu activity, down slightly from the week before. However, flu deaths and hospitalizations rose.
Determining exactly how flu season is going can be particularly tricky around the holidays. Schools are closed, and many people are traveling. Some people may be less likely to see a doctor, deciding to just suffer at home. Others may be more likely to go.
Also, some seasons see a surge in cases, then a decline, and then a second surge.
For years, federal health officials joined doctors’ groups in recommending that everyone 6 months and older get an annual influenza vaccine. The shots may not prevent all symptoms but can prevent many infections from becoming severe, experts say.
But federal health officials on Monday announced they will no longer recommend flu vaccinations for U.S. children, saying it is a decision parents and patients should make in consultation with their doctors.
“I can’t begin to express how concerned we are about the future health of the children in this country, who already have been unnecessarily dying from the flu — a vaccine preventable disease,” said Michele Slafkosky, executive director of an advocacy organization called Families Fighting Flu.
“Now, with added confusion for parents and health care providers about childhood vaccines, I fear that flu seasons to come could be even more deadly for our youngest and most vulnerable,” she said in a statement.
Flu is just one of a group of viruses that tend to strike more often in the winter. Hospitalizations from COVID-19 and RSV, or respiratory syncytial virus, also have been rising in recent weeks — though were not diagnosed nearly as often as flu infections, according to other federal data.
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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.
World
Russia fires new hypersonic missile in massive Ukraine attack, Kremlin says
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Russia said on Friday it used its new hypersonic Oreshnik missile in an attack against Ukraine, according to reports.
The Kremlin said that the strike was carried out in response to what it said was an attempted Ukrainian drone strike on one of Russian President Vladimir Putin’s residences, something Kyiv has denied, according to Reuters.
The outlet noted that Ukraine and the U.S. have cast doubt on Russia’s claims about the alleged attempted attack on Putin’s residence on Dec. 29, the report said. Ukraine called it “an absurd lie,” while President Donald Trump also doubted the veracity of the claim, saying he did not believe the strike occurred and that “something” unrelated happened nearby.
This is the second time Russia has used the intermediate-range Oreshnik, which Putin has said is impossible to intercept because of its velocity, Reuters reported.
RUSSIA ALLEGES ATTACK ON PUTIN RESIDENCE AS UKRAINE DENIES CLAIM AHEAD OF TRUMP TALKS
A part of the Russian nuclear-capable hypersonic Oreshnik missile system at the site of the Russian missile strike, amid Russia’s attack on Ukraine, in Lviv region, Ukraine, Jan. 9, 2026. (Security Service of Ukraine/Handout via Reuters)
The Russian Defense Ministry said that the strike targeted critical infrastructure in Ukraine, according to Reuters, which added that Russia said the attack also used attack drones and high-precision long-range land and sea-based weapons.
While Moscow did not say where the missile hit, Russian media and military bloggers said it targeted an underground natural gas storage facility in Ukraine’s western Leviv region, CBS News reported. Lviv Mayor Andriy Sadoviy said the attack hit critical infrastructure but did not give details, the outlet added.
Ukrainian President Volodymyr Zelenskyy addressed the attack on social media, saying that the aftermath was “still being dealt with.”
“Twenty residential buildings alone were damaged. Recovery operations after the strikes also continue in the Lviv region and other regions of our country. Unfortunately, as of now, it is known that four people have been killed in the capital alone. Among them is an ambulance crew member. My condolences to their families and loved ones,” Zelenskyy wrote.
A resident stands on the balcony of his apartment, damaged during a Russian drone strike, amid Russia’s attack on Ukraine, in Kyiv, Ukraine, on Jan. 9, 2026. (Anatolii Stepanov/Reuters)
PUTIN RESIDENCE ATTACK VIDEO SLAMMED AS US OFFICIALS SAY UKRAINE DID NOT TARGET LEADER
The Ukrainian leader said the attack involved 242 drones, 13 ballistic missiles, one Oreshnik missile and 22 cruise missiles. Zelenskyy added that the ballistic missiles were aimed at energy facilities and civilian infrastructure as the people of Ukraine faced “a significant cold spell.” He said the attack was “aimed precisely against the normal life of ordinary people.” However, he assured that Ukraine was working to restore heating and electricity.
Zelenskyy claimed that in addition to the civilian infrastructure, a building of the Embassy of Qatar was damaged in the attack.
Apartment buildings hit by a Russian missile strike late yesterday, amid Russia’s attack on Ukraine, in the city of in Kryvyi Rih, Dnipropetrovsk region, Ukraine, on Jan. 9, 2026. (Stringer/Reuters)
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“A clear reaction from the world is needed. Above all from the United States, whose signals Russia truly pays attention to. Russia must receive signals that it is its obligation to focus on diplomacy, and must feel consequences every time it again focuses on killings and the destruction of infrastructure,” Zelenskyy added.
A spokesperson for the State Department told Fox News Digital that the U.S. remains committed to ending the war through diplomatic means, emphasizing that it is the only path toward a durable peace. The spokesperson underscored Trump’s desire to end the war that is approaching its fourth year.
Fox News Digital reached out to the White House for comment.
World
Mercosur: How Macron’s domestic weakness undercut his Brussels clout
The French president’s failure to assemble a blocking minority against the Mercosur deal underscores how his domestic weakness is undermining his clout in Brussels. By contrast, EU Commission President Ursula von der Leyen and Germany have secured an important victory.
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