Month: January 2018

Fiat Chrysler Automobile said on Thursday it will shift production of Ram heavy-duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker's profit should President Donald Trump pull the United States out of the North American Free Trade Agreement. Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit and invest $1 billion in the facility. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale global markets. Mexico has free trade agreements with numerous countries. Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision. If…

The U.S. Environmental Protection Agency will replace Obama-era carbon and clean water regulations and open up a national debate on climate change in 2018, part of a list of priorities for the year that also includes fighting lead contamination in public drinking water. The agenda, laid out by EPA Administrator Scott Pruitt in an exclusive interview with Reuters on Tuesday, marks an extension of the agency's efforts under President Donald Trump to weaken or kill regulations the administration believes are too broad and harm economic growth, but which environmentalists say are critical to human health. "The climate is changing. That's not the debate. The debate is how do we know what the ideal surface temperature is in 2100? ... I think the American people deserve an open honest transparent discussion…

Walmart will raise entry-level wages for U.S. hourly employees to $11 an hour in February as it benefits from last month's major overhaul of the U.S. tax code and competes for low-wage workers in a tight labor market. But on the same day, the world's largest retailer and private employer, officially called Wal-Mart Stores Inc, announced layoffs as it shuttered many of its Sam's Club discount warehouse stores. A senior company official who declined to be named said about 62 stores would be affected, about one-tenth of the chain overall. About 50 stores will be shut permanently after a review of store profitability and up to 12 more stores will be shut and reopened as e-commerce warehouses, the person said. Every Sam's Club store employs about 150 workers, bringing the…

Two French rights groups have filed a lawsuit against electronics giant Samsung, accusing it of misleading advertising because of alleged labor abuses at factories in China and South Korea. It's the latest labor challenge to Seoul-based Samsung, which has faced growing health complaints from workers in recent years, even as profits soar thanks to its blockbuster semiconductor business.   The unusual lawsuit filed Thursday in Paris court by groups Sherpa and ActionAid France names Samsung Global in Seoul and its French subsidiary. It is now up to the court to decide whether to take up the case.   It accuses Samsung of "deceptive trade practices," based on documents from China Labor Watch and others alleging violations including exploitation of children, excessive working hours and use of dangerous equipment and gases.…

Britain could lose almost 500,000 jobs and 50 billion pounds ($67.41 billion) investment over the next 12 years if it fails to agree a trade deal with the European Union, according a report commissioned by London Mayor Sadiq Khan. Cambridge Econometrics, an economics consultancy, looked at five different Brexit scenarios, from the hardest to the softest form of Brexit, and broke down the economic impact on nine industries, from construction to finance. The study said that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide. "If the Government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment," Khan said. "Ministers are fast running out of…

China is denying a published report that it may slow or even stop purchasing U.S. Treasury bonds. Sources told U.S.-based financial news outlet Bloomberg Wednesday that senior government officials recommended the action as the market for U.S. government bonds is becoming less attractive, along with rising trade tensions with the United States. The Bloomberg report triggered a decline on bond markets and a selloff of the U.S. dollar during the day. In a statement posted on its website Thursday, China’s State Administration of Foreign Exchange said the Bloomberg story was either misinformation or “fake news.” The agency says the country’s huge reserves of foreign currencies are professionally managed on the basis of market conditions and investment needs. China has the world’s largest foreign-exchange reserves at $3.1 trillion. The U.S. Treasury…

Britain is making known its hopes to one day join the Trans-Pacific Partnership or TPP, a free trade agreement currently being negotiated by eleven countries bordering the Pacific and the South China Sea. The British government hopes trade with fast-growing economies will make up for losses that may occur after it leaves the European Union as scheduled in 2019. On a recent trip to China, Britain Trade Minister Liam Fox tentatively suggested his country could one day join the TPP. “We don't know what the success of the TPP is going to yet look like, because it isn't yet negotiated. So, it would be a little bit premature for us to be wanting to sign up to something that we're not sure what the final details will look like. However,…

Interior Secretary Ryan Zinke has caved in to pressure from the governor and is banning oil and gas drilling off the Florida coast. "I support the governor's position that Florida is unique and its coasts are heavily reliant on tourism as an economic driver," Zinke said in a statement late Tuesday. He outright admitted that Florida's Republican Governor Rick Scott pressured him to put the state's waters off limits. Last week, the Trump administration proposed opening nearly all U.S. offshore waters to oil and gas drilling, reversing former Obama administration policies. The White House has said it wants to make the U.S. more energy independent. But environmental groups and Republican and Democratic governors from coastal states loudly object. They say oil and gas drilling puts marine life, beaches, and lucrative…

Nearly seven years into Syria's civil war, Syrian refugees in neighboring Lebanon are becoming poorer, leaving children at risk of child labor and early marriage, aid organizations said on Tuesday. A recent survey by the United Nations children's agency UNICEF, U.N.'s World Food Program, and refugee agency, UNHCR showed that Syrian refugees in Lebanon are more vulnerable now than they have been since the beginning of the crisis. Struggling to survive, more than three quarters of the refugees in Lebanon now live on less than $4 per day, according to the survey which was based on data collected last year. "The situation for Syrian refugees in Lebanon is actually getting worse - they are getting poorer. They are barely staying afloat," Scott Craig, UNHCR spokesman in Lebanon, told the Thomson…

Venezuela's opposition-run parliament on Tuesday outlawed a "petro" cryptocurrency promoted by socialist President Nicolas Maduro, calling it an effort to illegally mortgage the cash-strapped country's oil reserves. Maduro on Friday said his government would issue nearly $6 billion of petros as a way to raise hard currency and to evade financial sanctions imposed by Washington. Cryptocurrency experts say Venezuela's mismanagement of its own economy, combined with the ruling Socialist Party's historic lack of respect for private property rights, will likely leave investors uninterested in acquiring petros. "This is not a cryptocurrency, this is a forward sale of Venezuelan oil," said legislator Jorge Millan. "It is tailor-made for corruption." Legislators warned investors that the petro would be seen as null and void once Maduro, who is up for re-election this year,…

Amazon.com CEO Jeff Bezos is now the richest person of all time, with a fortune of $105.1 billion, according to financial news outlet Bloomberg. With the stock market soaring to new heights in the first few days of 2018, Bezos' fortune rocketed upward, growing $6.1 billion in just five trading days. That happened because most of Bezos' wealth is contained in shares of Amazon.com, the online retail giant. Shares of Amazon rose 56 percent in 2017 and more than 6 percent since the start of this year. Financial news trackers differ on whether Bezos is the richest man in history, or if his nearest rival, Microsoft founder Bill Gates, holds that record. Bezos surpassed Gates briefly last year before taking the lead for good in October and crossing the $100-billion…

Oil prices surged to a three-year high Tuesday on rising expectations that OPEC member countries will comply with oil production cuts to the end of 2018. Brent Crude prices are headed toward $70 a barrel, West Texas Crude settled at $62.96 bbl, the highest since December 2014. But other factors could derail OPEC member agreement on production quotas, including continued expansion of U.S. shale production and the likelihood of stronger global demand.  Analysts say rapid changes in supply and demand could trigger an early exit or prompt member countries to cheat on production quotas, especially when prices start to rise. Meanwhile, the United States is increasingly less dependent on foreign oil, thanks in part to the shale boom and the influx of cheap natural gas. U.S. Energy Information Administration forecasts…