Head of WhatsApp to Leave Company

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The head of popular messaging service WhatsApp is planning to leave the company because of a reported disagreement over how parent company Facebook is using customers’ personal data. 

WhatsApp billionaire chief executive Jan Koum wrote in a Facebook post Monday, “It’s been almost a decade since (co-founder) Brian (Acton) and I started WhatsApp, and it’s been an amazing journey with some of the best people. But it is time for me to move on,” he said.

Koum did not give a date for his departure.

The Washington Post reported Monday that Koum is stepping down because of disagreements over Facebook’s attempts to use the personal data of WhatsApp customers, as well as efforts to weaken the app’s encryption. 

Action left the company last fall and since then has become a vocal critic of Facebook, recently endorsing a #DeleteFacebook social media campaign.

The Post, citing people familiar with internal WhatsApp discussions, said Koum was worn down by the differences in approach to privacy and security between WhatsApp and Facebook.

When WhatsApp agreed to the company’s sale to Facebook in 2014 for $19 billion, it said WhatsApp would remain an independent service and would not share its data with Facebook. 

However, 18 months later, Facebook pushed WhatsApp to change its terms of service to give the social network access to the personal data of WhatsApp users. 

WhatsApp is the largest messaging service in the world with 1.5 billion monthly users. However, Facebook has been struggling to find ways to make enough money from the app to prove its investment was worth the cost. 

Facebook has faced intense criticism since March when news broke that the personal data of millions of Facebook users had been harvested without their knowledge by Cambridge Analytica, a British voter profiling company that U.S. President Donald Trump’s campaign hired to target likely supporters in 2016.

Facebook chief executive Mark Zuckerberg testified before Congress earlier this month and apologized for inadequately protecting the data of millions of social media platform users. 

Facebook also recently announced it would allow all its users to shut off third-party access to their apps and said it would set up “firewalls” to ensure users’ data was not unwittingly transmitted by others in their social network.

Some members of Congress said Facebook’s actions to rectify the situation did not go far enough and have called for greater regulation of the internet and social media.

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Paper Plane Protesters Urge Russia to Unblock Telegram App

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Thousands of people marched through Moscow, throwing paper planes and calling for authorities to unblock the popular Telegram instant messaging app on Monday.

Protesters chanted slogans against President Vladimir Putin as they launched the planes – a reference to the app’s logo.

“Putin’s regime has declared war on the internet, has declared war on free society… so we have to be here in support of Telegram,” one protester told Reuters.

Russia began blocking Telegram on April 16 after the app refused to comply with a court order to grant state security services access to its users’ encrypted messages.

Russia’s FSB Federal Security service has said it needs access to some of those messages for its work, that includes guarding against militant attacks.

In the process of blocking the app, state watchdog Roskomnadzor also cut off access to a slew of other websites.

Telegram’s founder, Russian entrepreneur Pavel Durov, called for “digital resistance” in response to the decision and promised to fund anyone developing proxies and VPNs to dodge the block.

More than 12,000 people joined the march on Monday, said White Counter, a volunteer group that counts people at protests.

“Thousands of young and progressive people are currently protesting in Moscow in defense of internet freedom,” Telegram’s Durov wrote on his social media page.

“This is unprecedented. I am proud to have been born in the same country as you. Your energy changes the world,” Durov wrote.

Telegram has more than 200 million global users and is ranked as the world’s ninth most popular mobile messaging service.

Iran’s judiciary has also banned the app to protect national security, Iranian state TV reported on Monday.

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US Wireless Carriers T-Mobile, Sprint Announce Merger

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The third and fourth biggest U.S. wireless carriers, T-Mobile and Sprint, said Sunday they plan to merge, the third attempt they’ve made to join forces against the country’s two biggest mobile device firms, Verizon and AT&T.

The deal, if it happens this time, calls for T-Mobile to buy Sprint for $26 billion in an all-stock deal.

The combined carrier would have 126 million customers, still third in the pecking order of U.S. wireless carriers, but closer to the top two. Verizon has more than 150 million customers, and AT&T more than 142 million.

The latest agreement caps four years of on-and-off talks between T-Mobile and Sprint. Sprint dropped its bid for T-Mobile more than three years ago after U.S. regulators objected and another proposed merger fell through last November.

The new deal could help the combined companies slash costs to make the new business more competitive with industry leaders. But customers could also pay more for wireless coverage because the combined company may not have to offer as many deals to attract new customers.

U.S. regulators at the Federal Communications Commission are expected to take a close look at the merger’s effects on customers and whether the deal violates antitrust laws.

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China Rapidly Expanding its Technology Sector

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If you want your technology sector to expand rapidly, it pays to have strong support from the government, easy access to bank loans and a large market, hungry for your products. All this is available in China, where technology companies are expanding at a rapid pace — making other countries, including the U.S. — a bit uneasy. VOA’s George Putic reports.

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Can a River Model Save Eroding Mississippi Delta?

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Thousands of years of sediment carried by the Mississippi River created 25,000 square kilometers of land, marsh and wetlands along Louisiana’s coast. But engineering projects stopped the flow of sediment and rising seas thanks to climate change have made the Mississippi Delta the fastest-disappearing land on earth. Louisiana State University researchers created the river system in miniature to try to stop the erosion and rebuild the delta. Faith Lapidus narrates this report from Deborah Block.

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Genetics Help Spot Food Contamination

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A new approach for detecting food poisoning is being used to investigate the recent outbreak of E.coli bacteria in romaine lettuce grown in the U.S. state of Arizona. The tainted produce has sickened at least 84 people in 19 states. The new method, used by the Centers for Disease Control and Prevention, relies on genetic sequencing. And as Faiza Elmasry tells us, it has the potential to revolutionize the detection of food poisoning outbreaks. VOA’s Faith Lapidus narrates.

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Consumers Close Wallets, Trim US 1st Quarter Growth

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The U.S. economy likely slowed in the first quarter as growth in consumer spending braked sharply, but the setback is expected to be temporary against the backdrop of a tightening labor market and large fiscal stimulus.

Gross domestic product probably increased at a 2.0 percent annual rate, according to a Reuters survey of economists, also held back by a moderation in business spending on equipment as well as a widening of the trade deficit and decline in investment in homebuilding.

Those factors likely offset an increase in inventories. The economy grew at a 2.9 percent pace in the fourth quarter. The government will publish its snapshot of first-quarter GDP Friday at 8:30 a.m. 

Don’t lose sleep

The anticipated tepid first-quarter growth will, however, probably not be a true reflection of the economy, despite the expected weakness in consumer spending. First-quarter GDP tends to be soft because of a seasonal quirk. The labor market is near full employment and both business and consumer confidence are strong.

“I would not lose sleep over first-quarter GDP, there is the residual seasonality issue,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Overall the economy is doing very well and will continue to do well this year and into 2019.”

Economists expect growth will accelerate in the second quarter as households start to feel the impact of the Trump administration’s $1.5 trillion income tax package on their paychecks. Lower corporate and individual tax rates as well as increased government spending will likely lift annual economic growth to the administration’s 3 percent target, despite the weak start to the year.

Federal Reserve officials are likely to shrug off weak first-quarter growth. The U.S. central bank raised interest rates last month in a nod to the strong labor market and economy, and forecast at least two rate hikes this year.

Minutes of the March 20-21 meeting published earlier this month showed policymakers “expected that the first-quarter softness would be transitory,” citing “residual seasonality in the data, and more generally to strong economic fundamentals.”

Consumer spending lackluster

Economists estimate that growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to below a 1.5 percent rate in the first quarter. That would be the slowest pace in nearly five years and follows the fourth quarter’s robust 4.0 percent growth rate.

Consumer spending in the last quarter was likely held back by delayed tax refunds and impact of tax cuts. Rebuilding and clean-up efforts following hurricanes late last year probably pulled forward spending into the fourth quarter.

“Our new consumer survey found that 37 percent of consumers thought they didn’t get any extra income from the tax cut or did not know what to do with it,” said Michelle Meyer, head of U.S. economics at Bank of America Merrill Lynch in New York. “It is possible this means that there is a lag in the consumer response to tax cuts.”

Business spending

Business spending on equipment is forecast to have slowed after double-digit growth in the second half of 2017. The expected cooling in equipment investment partly reflects a fading boost from a recovery in commodity prices. Economists expect a marginal impact on business spending on equipment from rising interest rates and more expensive raw materials.

“While we do not expect rising rates to crush equipment spending, a slowdown nevertheless appears in store,” said Sarah House, a senior economist at Wells Fargo Securities in Charlotte, North Carolina. “Higher interest rates will hurt at the margin.”

Investment in homebuilding is forecast to have declined in the first quarter after rebounding in the October-December period. Government spending probably contracted after two straight quarterly increases. Spending is, however, expected to rebound in the second quarter after the U.S. Congress recently approved more government spending.

Trade was likely a drag on GDP growth for a second straight quarter after royalties and broadcast license fees related to the Winter Olympics boosted imports.

With consumer spending slowing, inventories probably accumulated in the first quarter. Inventory investment is expected to have contributed to GDP growth after subtracting 0.53 percentage point in the fourth quarter.

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Amazon Delivers Profits, a $20 Prime Hike, NFL Games

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Amazon.com Inc. more than doubled its profit Thursday and predicted strong spring results as the world’s biggest online retailer raised the price for U.S. Prime subscribers, added U.S. football games and touted its cloud services for business.

The results showed the broad strength of the company, which has been expanding far beyond shipping packages, the business that has drawn the ire of U.S. President Donald Trump.

The forecast beat expectations on Wall Street, sending shares up 7 percent to a new record in afterhours trade and adding $8 billion to the net worth of Jeff Bezos, Amazon’s chief executive and largest shareholder.

Seattle-based Amazon is winning business from older, big box rivals by delivering virtually any product to customers at a low cost, and at times faster than it takes to buy goods from a physical store. It is expanding across industries, too, striking a $130 million deal to stream Thursday night games for the U.S. National Football League online and working to ship groceries to doorsteps from Whole Foods stores nationwide.

Sales jumped 43 percent to $51.0 billion in the quarter, topping estimates of $49.8 billion, according to Thomson Reuters.

Prime now $119

Prime, Amazon’s loyalty club that includes fast shipping, video streaming and other benefits, has been key to Amazon’s strategy. Its more than 100 million members globally spend above average on Amazon.

The company announced Thursday it will increase the yearly price of Prime to $119 from $99 for U.S. members this spring.

The fee hike is expected to add a windfall to Amazon’s subscription revenue, already up 60 percent in the first quarter at $3.1 billion.

“We do feel it’s still the best deal in retail,” Brian Olsavsky, Amazon’s chief financial officer, said on a call with analysts. He said the number of items Prime members can get within two days had grown fivefold since the last price increase four years ago.

Advertising and the cloud

Despite the surge in shopping, Olsavsky gave credit for Amazon’s $1.6 billion profit last quarter to two younger businesses: advertising and Amazon Web Services.

Revenue from third-party sellers paying to promote their products on Amazon.com was an unusually large bright spot during the quarter, with sales in the category, which includes some other items, growing 139 percent to $2.03 billion. This included $560 million from an accounting change.

Amazon Web Services (AWS), which handles data and computing for large enterprises in the cloud, won new business and saw its profit margin expand. It posted a 49 percent rise in sales from a year earlier to $5.44 billion, beating estimates.

Amazon remains the biggest in the space by revenue, and its stock trades at a significant premium to cloud-computing rival Microsoft Corp.

Amazon’s shares have also outperformed the S&P 500, rising 30 percent this year as of Thursday’s market close, compared with the S&P’s less than 1 percent decline.

More workers, spending

Notorious for running on a low profit margin, Amazon has still reaped rewards for shareholders as it has bet on new services like voice-controlled computing and has expanded across continents and industries.

Global headcount was up 60 percent from a year earlier at 563,100 full-time and part-time employees, thanks to a hiring spree and an influx of workers from Whole Foods Market.

The company plans to increase its video content spending this year, Amazon’s Olsavsky said, with a prequel to “The Lord of the Rings” in the works. The third quarter will also see extra spending to prepare for the busy holiday season.

Amazon is working with JPMorgan Chase & Co and Berkshire Hathaway Inc to determine how to cut health costs for hundreds of thousands of their employees.

And it is expanding its retail footprint outside the United States, particularly in India. Amazon’s international operating loss grew 29 percent to $622 million in the first quarter.

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Mexico Economy Minister Says NAFTA Revamp Talks ‘Not Easy’

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Much remains to be done before a new North American Free Trade Agreement is reached, Mexican Economy Minister Ildefonso Guajardo said Thursday, tempering hopes for a quick deal as ministers met in Washington for a third successive day.

Negotiators from the United States, Mexico and Canada have been working constantly for weeks to clinch a deal, but major differences remain on contentious topics such as autos content.

Complicating matters, the Trump administration has threatened to impose sanctions on Canadian and Mexican steel and aluminum on May 1 if not enough progress has been made on NAFTA.

President Donald Trump, who came into office in January 2017 decrying NAFTA and other international trade deals as unfair to the United States, has repeatedly threatened to walk away from the agreement with Canada and Mexico, which took effect in 1994.

“It is going, it’s going, but not easy — too many things, too many issues to tackle,” Guajardo told reporters after a meeting with U.S. Trade Representative Robert Lighthizer.

Now under way for eight months, the talks to revamp the accord underpinning $1.2 trillion in trade entered a more intensive phase after the last formal round of negotiations ended in March with ministers vowing to push for a deal.

Lighthizer is due to visit China next week, and when asked if a deal was possible before the USTR left, Guajardo said: “It will depend on our abilities and creativity. We are trying to do our best, but there are still a lot of things pending.”

Although Washington is keen for an agreement soon to avoid clashing with a July 1 Mexican presidential election, the three NAFTA members remain locked in talks to agree on new rules governing minimum content requirements for the auto industry.

Still, Canadian Foreign Minister Chrystia Freeland rejected the notion that discussion of the so-called rules of origin for the automotive sector was holding up the process.

“I would very much disagree with the characterization of the autos conversation as being log-jammed,” she said as she entered the USTR offices. “This is a week when very good, significant progress is being made on rules of origin for the car sector.”

Freeland said she would skip a planned visit to a NATO summit in Brussels on Friday, and vowed to stay in Washington for “as long as it takes.” Guajardo, too, said he was ready to remain in Washington this week for more talks.

Disagreements

The three sides are also trying to settle disagreements over U.S. demands to change how trade disputes are handled, to restrict access to agricultural markets and to include a clause that would allow a country to quit NAFTA after five years.

Bosco de la Vega, head of Mexico’s National Agricultural Council, the main farm lobby, said he believed the three would be able to reach an agreement on agricultural access.

But the auto sector rules were still contentious, he added.

“It’s the most important issue there,” he said, adding that he had earmarked May 10 as the deadline for a quick deal.

Separately, Canada on Thursday unveiled details of how it plans to prevent the smuggling of cheap steel and aluminum into the North American market in a bid to avoid the U.S. tariffs.

Prime Minister Justin Trudeau, who announced the plan last month, said Ottawa would hire 40 new trade officers to probe complaints, including those related to steel and aluminum.

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EU Piles Pressure on Social Media Over Fake News

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Tech giants such as Facebook and Google must step up efforts to tackle the spread of fake news online in the next few months or potentially face further EU regulation, as concerns mount over election interference.

The European Commission said on Thursday it would draw up a Code of Practice on Disinformation for the 28-nation EU by July with measures to prevent the spread of fake news such as increasing scrutiny of advertisement placements.

EU policymakers are particularly worried that the spread of fake news could interfere with European elections next year, after Facebook disclosed that Russia tried to influence U.S. voters through the social network in the run-up to the 2016 U.S. election. Moscow denies such claims.

“These [online] platforms have so far failed to act proportionately, falling short of the challenge posed by disinformation and the manipulative use of platforms’ infrastructure,” the Commission wrote in its strategy for tackling fake news published on Thursday.

“The Commission calls upon platforms to decisively step up their efforts to tackle online disinformation.”

Advertisers and online platforms should produce “measurable effects” on the code of practice by October, failing which the Commission could propose further actions, including regulation “targeted at a few platforms.”

Companies will have to work harder to close fake accounts, take steps to reduce revenues for purveyors of disinformation and limit targeting options for political adverts.

The Commission, the EU’s executive, will also support the creation of an independent European network of fact-checkers and launch an online platform on disinformation.

Tech industry association CCIA said the October deadline for progress appeared rushed.

“The tech industry takes the spread of disinformation online very seriously…when drafting the Code of Practice, it is important to recognize that there is no one-size-fits-all solution to address this issue given the diversity of affected services,” said Maud Sacquet, CCIA Europe Senior Policy Manager.

Weaponizing fake news

The revelations that political consultancy Cambridge Analytica – which worked on U.S. President Donald Trump’s campaign – improperly accessed the data of up to 87 million Facebook users has further rocked public trust in social media.

“There are serious doubts about whether platforms are sufficiently protecting their users against unauthorized use of their personal data by third parties, as exemplified by the recent Facebook/Cambridge Analytica revelations,” the Commission wrote.

Facebook has stepped up fact-checking in its fight against fake news and is trying to make it uneconomical for people to post such content by lowering its ranking and making it less visible. The world’s largest social network is also working on giving its users more context and background about the content they read on the platform.

“The weaponization of online fake news and disinformation poses a serious security threat to our societies,” said Julian King, EU Commissioner for security. “The subversion of trusted channels to peddle pernicious and divisive content requires a clear-eyed response based on increased transparency, traceability and accountability.”

Campaign group European Digital Rights warned that the Commission ought not to rush into taking binding measures over fake news which could have an effect on the freedom of speech.

King rejected any suggestion that the proposal would lead to censorship or a crackdown on satire or partisan news.

“It’s a million miles away from censorship,” King told a news conference. “It’s not targeting partisan journalism, freedom of speech, freedom to disagree, freedom to be, in some cases, a bit disagreeable.”

Commission Vice-President Andrus Ansip said there had been some debate internally over whether to explicitly mention Russia in the fake news strategy.

“Some people say that we don’t want to name just one name. And other people say that ‘add some other countries also and then we will put them all on our list’, but unfortunately nobody is able to name those others,” the former Estonian prime minister said.

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Facebook’s Rise in Profits, Users Shows Resilience 

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Facebook Inc. shares rose Wednesday after the social network reported a surprisingly strong 63 percent rise in profit and an increase in users, with no sign that business was hurt by a scandal over the mishandling of personal data.

After easily beating Wall Street expectations, shares traded up 7.1 percent after the bell at $171, paring a month-long decline that began with Facebook’s disclosure in March that consultancy Cambridge Analytica had harvested data belonging to millions of users.

The Cambridge Analytica scandal, affecting up to 87 million users and prompting several apologies from Chief Executive Mark Zuckerberg, generated calls for regulation and for users to leave the social network, but there was no indication advertisers immediately changed their spending.

“Everybody keeps talking about how bad things are for Facebook, but this earnings report to me is very positive, and reiterates that Facebook is fine, and they’ll get through this,” said Daniel Morgan, senior portfolio manager at Synovus Trust Company. His firm holds about 73,000 shares in Facebook.

Facebook’s quarterly profit beat analysts’ estimates, as a 49 percent jump in quarterly revenue outpaced a 39 percent rise in expenses from a year earlier. The mobile ad business grew on a push to add more video content.

Facebook said monthly active users in the first quarter rose to 2.2 billion, up 13 percent from a year earlier and matching expectations, according to Thomson Reuters.

The company reversed last quarter’s decline in the number of daily active users in the United States and Canada, saying it had 185 million users there, up from 184 million in the fourth quarter.

Resilient business model

The results are a bright spot for the world’s largest social network amid months of negative headlines about the company’s handling of personal information, its role in elections and its fueling of violence in developing countries.

Facebook, which generates revenue primarily by selling advertising personalized to its users, has demonstrated for several quarters how resilient its business model can be as long as users keep coming back to scroll through its News Feed and watch its videos.

It is spending to ensure users are not scared away by scandals. Chief Financial Officer David Wehner told analysts on a call that expenses this year would grow between 50 percent and 60 percent, up from a prior range of 45 percent to 60 percent.

Spending on security

Much of Facebook’s ramp-up in spending is for safety and security, Wehner said. The category includes efforts to root out fake accounts, scrub hate speech and take down violent videos.

Facebook said it ended the first quarter with 27,742 employees, up 48 percent from a year earlier.

“So long as profits continue to grow at a rapid rate, investors will accept that higher spending to ensure privacy is warranted,” Wedbush Securities analyst Michael Pachter said.

It has been nearly two years since Facebook shares rose 7 percent or more during a trading day. They rose 7.2 percent on April 28, 2016, the day after another first-quarter earnings report.

Net income attributable to Facebook shareholders rose in the first quarter to $4.99 billion, or $1.69 per share, from $3.06 billion, or $1.04 per share, a year earlier.

Analysts on average were expecting a profit of $1.35 per share, according to Thomson Reuters.

Total revenue was $11.97 billion, above the analyst estimate of $11.41 billion.

Some details secret

The company declined to provide some details sought by analysts. It has not shared the revenue generated by Instagram, the photo-sharing app it owns, and it declined to provide details about time spent on Facebook. Facebook also owns the popular smartphone apps Messenger and WhatsApp.

Tighter regulation could make Facebook’s ads less lucrative by reducing the kinds of data it can use to personalize and target ads to users, although Facebook’s size means it could also be well positioned to cope with regulations.

Facebook and Alphabet Inc’s Google together dominate the internet ad business worldwide. Facebook is expected to take 18 percent of global digital ad revenue this year, compared with Google’s 31 percent, according to research firm eMarketer.

The company said it was increasing the amount of money authorized to repurchase shares by an additional $9 billion. It had initially authorized repurchases up to $6 billion.

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YouTube Overhauls Kids’ App

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YouTube is overhauling its kid-focused video app to give parents the option of letting humans, not computer algorithms, select what shows their children can watch.

The updates that begin rolling out April 26, 2018, are a response to complaints that the YouTube Kids app has repeatedly failed to filter out disturbing content.

Google-owned YouTube launched the toddler-oriented app in 2015. It has described it as a “safer” experience than the regular YouTube video-sharing service for finding “Peppa Pig” episodes or watching user-generated videos of people unboxing toys, teaching guitar lessons or experimenting with science.

Failure of screening system

In order to meet U.S. child privacy rules, Google says it bans kids under 13 from using its core video service. But its official terms of agreement are largely ignored by tens of millions of children and their families who don’t bother downloading the under-13 app.

Both the grown-up video service and the YouTube Kids app have been criticized by child advocates for their commercialism and for the failures of a screening system that relies on artificial intelligence. The app is engineered to automatically exclude content that’s not appropriate for kids, and recommend videos based on what children have watched before. That hasn’t always worked to parents’ liking — especially when videos with profanity, violence or sexual themes slip through the filters. 

Updates give parents option

The updates allow parents to switch off the automated system and choose a contained selection of children’s programming such as Sesame Street and PBS Kids. But the automated system remains the default.  

“For parents who like the current version of YouTube Kids and want a wider selection of content, it’s still available,” said James Beser, the app’s product director, in a blog post Wednesday. “While no system is perfect, we continue to fine-tune, rigorously test and improve our filters for this more-open version of our app.”

Beser also encouraged parents to block videos and flag them for review if they don’t think they should be on the app. But the practice of addressing problem videos after children have already been exposed to them has bothered child advocates who want the more controlled option to be the default. 

Cleaner, safer kids’ app

“Anything that gives parents the ability to select programming that has been vetted in some fashion by people is an improvement, but I also think not every parent is going to do this,” said Josh Golin, director of the Boston-based Campaign for a Commercial-Free Childhood. “Giving parents more control doesn’t absolve YouTube of the responsibility of keeping the bad content out of YouTube Kids.”

He said Google should aim to build an even cleaner and safer kids’ app, then pull all the kid-oriented content off the regular YouTube — where most kids are going — and onto that app. 

Golin’s group recently asked the Federal Trade Commission to investigate whether YouTube’s data collection and advertising practices violate federal child privacy rules. He said advocates plan to meet with FTC officials next week.

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Kenya Economy Seen Rebounding After Election Slowdown

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Kenya’s economy is expected to rebound to 5.8 percent growth in 2018 after electoral uncertainty and drought cut last year’s expansion to the lowest level in more than five years, Finance Minister Henry Rotich said Wednesday.

The economy will benefit from increased investment in key areas like manufacturing, farming, housing and health care, he said.

President Uhuru Kenyatta won re-election in November in a second vote after the first in August was annulled by the Supreme Court citing irregularities. Around 100 people, mainly opposition supporters, were killed mainly by police during the prolonged election season.

“Despite the slowdown in 2017 our outlook is bright,” Rotich said at the launch of the annual economic survey. “We expect growth to recover to 5.8 percent in 2018, and over the medium term the growth is projected to increase by more than 7 percent.”

Growth slowed to 4.9 percent last year from a revised 5.9 percent in 2016, the statistics office said.

Kenya’s diversified economy is better able to withstand shocks like the commodity price drop that started in 2014 and hit oil-producing African countries such as Nigeria and Angola.

But its economy was hobbled by a severe drought in the first quarter of last year that was followed by poor rainfall.

The services sector including tourism grew strongly last year and that helped to offset the slowdown in farming and manufacturing, said Zachary Mwangi, director general of the Kenya National Bureau of Statistics.

Tourism is vital for hard currency and jobs and grew 14.7 percent while earnings surged 20 percent, he said.

In contrast, growth in the agriculture sector, which accounts for close to a third of overall output, slid to 1.6 percent in 2017 from 5.1 percent the year before.

The government says manufacturing is a priority due to its potential to create jobs, and it grew at 0.2 percent last year from 2.7 percent the year before.

Production of cement, sugar and processed milk slid as firms reeled from the impact of the election and high costs.

Rotich said the projected economic rebound is supported by favorable economic fundamentals including inflation, which has dropped to about 4 percent this year.

“The ongoing investments in infrastructure, improved business and factory confidence, and strong private consumption are expected to support growth,” he said.

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Will Robot Baristas Replace Traditional Cafes?

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There has been a long tradition of making and drinking coffee across cultures and continents. Now, a tech company in Austin is adding to this tradition by creating robot baristas to make the coffee-drinking experience more convenient. For a similar price of a cup of Starbucks designer coffee, a robot can now make it, too. VOA’s Elizabeth Lee finds out whether robots will replace traditional baristas.

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US Pecan Growers Seek to Break Out of the Pie Shell

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The humble pecan is being rebranded as more than just pie.

 

Pecan growers and suppliers are hoping to sell U.S. consumers on the virtues of North America’s only native nut as a hedge against a potential trade war with China, the pecan’s largest export market.

 

The pecan industry is also trying to crack the fast-growing snack-food industry.

 

The retail value for packaged nuts, seeds and trail mix in the U.S. alone was $5.7 billion in 2012, and is forecast to rise to $7.5 billion by 2022, according to market researcher Euromonitor.

 

The Fort Worth, Texas-based American Pecan Council, formed in the wake of a new federal marketing order that allows the industry to band together and assess fees for research and promotion, is a half-century in the making, said Jim Anthony, 80, the owner of a 14,000-acre pecan farm near Granbury, Texas.

 

Anthony said that regional rivalries and turf wars across the 15-state pecan belt — stretching from the Carolinas to California — made such a union impossible until recently, when demand for pecans exploded in Asian markets.

Until 2007, most U.S. pecans were consumed domestically, according to Daniel Zedan, president of Nature’s Finest Foods, a marketing group. By 2009, China was buying about a third of the U.S. crop.

 

The pecan is the only tree nut indigenous to North America, growers say. Sixteenth-century Spanish explore Cabeza de Vaca wrote about tasting the nut during his encounters with Native American tribes in South Texas. The name is French explorers’ phonetic spelling of the native word “pakan,” meaning hard-shelled nut.

 

Facing growing competition from pecan producers in South Africa, Mexico and Australia, U.S. producers are also riding the wave of the Trump administration’s policies to promote American-made goods.

 

Most American kids grow up with peanut butter but peanuts probably originated in South America. Almonds are native to Asia and pistachios to the Middle East. The pecan council is funding academic research to show that their nuts are just as nutritious.

 

The council on Wednesday will debut a new logo: “American Pecans: The Original Supernut.”

Rodney Myers, who manages operations at Anthony’s pecan farm, credits the pecan’s growing cachet in China and elsewhere in Asia with its association to rustic Americana — “the oilfield, cowboys, the Wild West — they associate all these things with the North American nut,” he said.

 

China earlier this month released a list of American products that could face tariffs in retaliation for proposed U.S. tariffs on $50 billion worth of Chinese goods. Fresh and dried nuts — including the pecan — could be slapped with a 15-percent tariff, according to the list. To counter that risk, the pecan council is using some of the $8 million in production-based assessments it’s collected since the marketing order was passed to promote the versatility of the tree nut beyond pecan pie at Thanksgiving.

 

While Chinese demand pushed up prices it also drove away American consumers. By January 2013, prices had dropped 50 percent from their peak in 2011, according to Zedan.

U.S. growers and processers were finally able in 2016 to pass a marketing order to better control pecan production and prices.

 

Authorized by the Agricultural Marketing Agreement Act of 1937, federal marketing orders help producers and handlers standardize packaging, impose quality control and fund research, according to the U.S. Department of Agriculture, which oversees 28 other fruit, vegetable and specialty marketing orders, in addition to the pecan order.

 

Critics charge that the orders interfere with the price signals of a free, unfettered private market.

 

“What you’ve created instead is a government-sanctioned cartel,” said Daren Bakst, an agricultural policy researcher at the conservative Heritage Foundation.

 

Before the almond industry passed its own federal marketing order in 1950, fewer almonds than pecans were sold, according to pecan council chair Mike Adams, who cultivates 600 acres of pecan trees near Caldwell, Texas. Now, while almonds appear in everything from cereal to milk substitutes, Adams calls the pecan “the forgotten nut.”

 

“We’re so excited to have an identity, to break out of the pie shell,” said Molly Willis, a member of the council who owns an 80-acre pecan farm in Albany, Georgia, a supplement to her husband’s family’s peanut-processing business.

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Beijing Auto Show Highlights E-cars Designed for China

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Volkswagen and Nissan have unveiled electric cars designed for China at a Beijing auto show that highlights the growing importance of Chinese buyers for a technology seen as a key part of the global industry’s future. 

General Motors displayed five all-electric models Wednesday including a concept Buick SUV it says can go 600 kilometers (375 miles) on one charge. Ford and other brands showed off some of the dozens of electric SUVs, sedans and other models they say are planned for China. 

Auto China 2018, the industry’s biggest sales event this year, is overshadowed by mounting trade tensions between Beijing and U.S. President Donald Trump, who has threatened to hike tariffs on Chinese goods including automobiles in a dispute over technology policy. 

The impact on automakers should be small, according to industry analysts, because exports amount to only a few thousand vehicles a year. Those include a GM SUV, the Envision, and Volvo Cars sedans made in China for export to the United States. 

China accounted for half of last year’s global electric car sales, boosted by subsidies and other prodding from communist leaders who want to make their country a center for the emerging technology. 

“The Chinese market is key for the international auto industry and it is key to our success,” VW CEO Herbert Diess said on Tuesday. 

Volkswagen unveiled the E20X, an SUV that is the first model for SOL, an electric brand launched by the German automaker with a Chinese partner. The E20X, promising a 300-kilometer (185-mile) range on one charge, is aimed at the Chinese market’s bargain-priced tiers, where demand is strongest. 

GM, Ford, Daimler AG’s Mercedes unit and other automakers also have announced ventures with local partners to develop models for China that deliver more range at lower prices. 

On Wednesday, Nissan Motor Co. presented its Sylphy Zero Emission, which it said can go 338 kilometers (210 miles) on a charge. The Sylphy is based on Nissan’s Leaf, a version of which is available in China but has sold poorly due to its relatively high price. 

Automakers say they expect electrics to account for 35 to over 50 percent of their China sales by 2025.

First-quarter sales of electrics and gasoline-electric hybrids rose 154 percent over a year earlier to 143,000 units, according to the China Association of Automobile Manufacturers. That compares with sales of just under 200,000 for all of last year in the United States, the No. 2 market. 

That trend has been propelled by the ruling Communist Party’s support for the technology. The party is shifting the financial burden to automakers with sales quotas that take effect next year and require them to earn credits by selling electrics or buy them from competitors. 

That increases pressure to transform electrics into a mainstream product that competes on price and features. 

Automakers also displayed dozens of gasoline-powered models from compact sedans to luxurious SUVs. Their popularity is paying for development of electrics, which aren’t expected to become profitable for most producers until sometime in the next decade. 

China’s total sales of SUVs, sedans and minivans reached 24.7 million units last year, compared with 17.2 million for the United States. 

SUVs are the industry’s cash cow. First-quarter sales rose 11.3 percent over a year earlier to 2.6 million, or almost 45 percent of total auto sales, according to the China Association of Automobile Manufacturers. 

On Wednesday, Ford displayed its Mondeo Energi plug-in hybrid, its first electric model for China, which went on sale in March. Plans call for Ford and its luxury unit, Lincoln, to release 15 new electrified vehicles by 2025. 

GM plans to launch 10 electrics or hybrids in China from through 2020. 

VW is due to launch 15 electrics and hybrids in the next two to three years as part of a 10 billion euro ($12 billion) development plan announced in November. 

Nissan says it will roll out 20 electrified models in China over the next five years. 

New but fast-growing Chinese auto trail global rivals in traditional gasoline technology but industry analysts say the top Chinese brands are catching up in electrics, a market with no entrenched leaders. 

BYD Auto, the biggest global electric brand by number sold, debuted two hybrid SUVs and an electric concept car. 

The company, which manufactures electric buses at a California factory and exports battery-powered taxis to Europe, also displayed nine other hybrid and plug-in electric models. 

Chery Automobile Co. showed a lineup that included two electric sedans, an SUV and a hatchback, all promising 250 to 400 kilometers (150 to 250 miles) on a charge. They include futuristic features such as internet-linked navigation and smartphone-style dashboard displays. 

“Our focus is not just an EV that runs. It is excellent performance,” Chery CEO Chen Anning said in an interview ahead of the show. 

Electrics are likely to play a leading role as Chery develops plans announced last year to expand to Western Europe, said Chen. He said the company has yet to decide on a timeline. 

Chery was China’s biggest auto exporter last year, selling 108,000 gasoline-powered vehicles abroad, though mostly in developing markets such as Russia and Egypt. 

“We do have a clear intention to bring an EV product as one of our initial offerings” in Europe, Chen said. 

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Egypt’s Rice Farmers See Rough Times Downstream of Nile Mega-dam

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Rice farmers in Kafr Ziada village in the Nile River Delta have ignored planting restrictions aimed at conserving water for years, continuing to grow a medium-grain variety of the crop that is prized around the Arab world.

A decision thousands of kilometers to the south is about to change that, however, in another example of how concern about water, one of the world’s most valuable commodities, is forcing change in farming, laws and even international diplomacy.

Far upstream, close to one of the sources of the Nile, Ethiopia is preparing to fill the reservoir behind its new $4 billion Grand Renaissance Dam, possibly as soon as this year.

How fast it does so could have devastating consequences for farmers who have depended on the Nile for millennia to irrigate strategic crops for Egypt’s 96 million people, expected to grow to 128 million by 2030.

Safeguarding Egypt’s share of the Nile, on which the country relies for industry and drinking water as well as farming, is now at the top of President Abdel Fattah el-Sissi’s agenda as he begins a second term.

At the same time, authorities are finally tackling widespread illegal growing of the water-intensive rice crop, showing a sense of urgency that even climate change and rapid population growth has failed to foster.

The crackdown means Egypt will likely be a rice importer in 2019 after decades of being a major exporter, rice traders say.

Cairo has decreed that 724,000 feddans (750,000 acres) of rice can be planted this year, which grain traders estimate is less than half of the 1.8 million feddans actually cultivated in 2017 — far in excess of the officially allotted 1.1 million feddans.

Police have started raiding farmers’ homes and jailing them until they pay outstanding fines from years back.

“The police came to my house at three in the morning and took me to the station to pay the fine,” said Mohamed Abdelkhaleq, head of the farming association in Kafr Ziada, some 125 km (80 miles) north of Cairo in Beheira governorate.

“Even if the fine is 1 Egyptian pound (5 U.S. cents), they’ll come to your house.”

Three other farmers reported similar experiences and said this year they would not plant rice.

Reda Abdelaziz, 50, said some people have become afraid to leave the village.

“If you’re traveling and they take your ID card and see you have a fine on you, they’ll put you in jail,” he said.

Abdelkhaleq took to the local mosque’s loudspeaker last month to say the government was doubling the fine for unauthorized rice cultivation to 7,600 pounds per feddan.

Mostafa al-Naggari, who heads the rice committee of Egypt’s agricultural export council, says if the government sticks to the new approach Egypt will likely have to import as much as 1 million tons of rice next year.

“The dam has opened the door for there to be more of an awareness of water scarcity issues, but Egypt has for a long time needed to review its water allocation policy,” he said.

No Agreement

Egypt has long considered the Nile its own, even though the river and its tributaries flow through 10 countries. Egyptian President Anwar Sadat famously said in 1979 that he was prepared to go to war over the Nile if its flow was ever threatened.

But any threat from Ethiopia in the past was empty — until now. The new dam, cutting through the Blue Nile tributary just before its descent into southeastern Sudan, will offer Addis Ababa immense political leverage over its downstream neighbors.

Sudan and Egypt are the biggest users of the river for irrigation and dams. Egypt wants to be assured that the dam will not affect the river’s flow, estimated at about 84 billion cubic meters on average per year.

Ethiopia aims to use the dam to become Africa’s biggest power generator and exporter, linking tens of millions to electricity for the first time.

The two countries have not been able to agree on a comprehensive water-sharing arrangement despite years of negotiations.

Ethiopia was not party to and does not recognize a 1959 agreement between Egypt and Sudan that gave Cairo the rights to the lion’s share of the river. For its part, Egypt refuses to sign on to a 2010 regional water-sharing initiative that takes away its power to veto projects that would alter allocations.

Ethiopia says that its dam won’t affect the Nile’s flow once its 79-billion-cubic-meter reservoir is filled. The issue is over how fast that happens. Ethiopia wants to do it in as little as three years; Egypt is aiming for seven to 10, sources close to the matter said.

There’s no doubt the flow of the Nile will be affected during those years. What’s not known is how dramatically, and there is little data available to answer that question.

Sources at Egypt’s irrigation ministry have estimated the loss of 1 billion cubic meters of water would affect 1 million people and lead to the loss of 200,000 acres of farmland.

On that basis, “if (the dam is) filled in 3 years it might destroy 51 percent of Egypt’s farmland, if in 6 years it will destroy 17 percent,” said Ashraf el Attal, CEO of Dubai-based commodities trader Fortuna and an expert on Egypt’s grain trade.

Be Ready to Adapt

The U.N.’s Food and Agriculture Organization has said Egypt requires an “urgent and massive” response to maintain food security in coming years for a number of reasons, including water scarcity, urbanization and the effects of climate change.

Talks among Egypt, Sudan and Ethiopia on the dam in early April stalled over what Sudan’s foreign minister called “technical issues”. No date has been set for the next round.

“The filling of the GERD is just the most critical issue for the three countries to decide upon, and now, ahead of the first filling,” said Ana Cascão, an independent researcher on Nile hydropolitics.

“A fair and equitable filling strategy must take into account different scenarios on climate and rainfall variability — if it will be one of drought, then the three countries are ready to agree on a slower filling,” said Cascão.

Rice farmers, who typically begin planting at the end of April, said they may now leave their lands fallow given the difficulty of quickly switching to other summer crops like cotton and corn that require different machinery and techniques.

Irrigation Minister Mohamed Abdel Aty told Reuters the situation posed a big threat to crops, livelihoods and even political stability if efforts to coordinate fail.

“Imagine to what extent these people will become vulnerable,” he said.

($1 = 17.6400 Egyptian pounds)

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Amazon Boss Bezos Supports Scrutiny of Big Companies

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Amazon Chief Executive Jeff Bezos said Tuesday that it was right that big companies are scrutinized and that his firm would respond to any new regulations by finding new ways to please its customers.

Bezos was speaking in Berlin, where he received an award from German media company Axel Springer, and was responding to a question about how seriously he took recent criticism of Amazon by U.S. President Donald Trump.

“All large institutions should be scrutinized or examined,” Bezos said. “It is not personal.”

“We have a duty on behalf of society to help educate any regulators without cynicism or skepticism,” he added. “We will work with any set of regulations that we are given. … We will follow those rules and find a new way to delight customers.”

Trump has said he would take a serious look at policies to address what he says are the unfair business advantages of Amazon, accusing the firm of not operating on a level playing field and not paying enough sales tax.

“We humans, especially in the Western world, especially inside democracies, are wired to be mindful of big institutions. … It doesn’t mean you don’t trust them or they are evil or bad,” Bezos said.

Amazon has also come in for criticism elsewhere over its tax policies and treatment of warehouse staff, with hundreds of European workers protesting on Tuesday outside the building where Bezos was speaking over pay and conditions.

“I’m very proud of our working conditions and I’m very proud of the wages we pay,” Bezos said. “We don’t believe we need a union to be an intermediary between ourselves and our workers.”

Post ownership

Bezos also defended his ownership of The Washington Post, which Trump has called the “chief lobbyist” for Amazon. The Post is privately owned by Bezos, not Amazon.

Bezos said the need to scrutinize large organizations was one of the reasons that the Post’s work was so important, adding he had no problem with the newspaper pursuing critical reporting about Amazon and said he would never meddle in the newsroom.

“I would be humiliated to interfere,” he said. “I would turn bright red. I don’t want to. It would feel icky, it would feel gross.

“Why would I? I want that paper to be independent.”

Bezos, the world’s richest person with a fortune of more than $100 billion, added that he was not interested in buying other newspapers, despite receiving monthly requests to bail out other struggling media organizations.

He said he would keep liquidating about $1 billion of Amazon stock a year to fund his Blue Origin rocket company, saying he hoped to test a tourism vehicle with humans at the end of this year or the beginning of next year.

Asked about the scandal over the alleged misuse of the data of nearly 100 million Facebook users, Bezos said Amazon had worked hard on security: “If you mistreat your data, they will know, they will work it out. Customers are very smart.”

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Venezuelan Banks Shrivel as Inflation Roars, Credit Dries Up

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Venezuela’s hyperinflation has turned the struggling OPEC nation’s once-powerful banks into warehouses of useless cash that are worth a total of only $40 million, according to a Reuters analysis of regulatory data.

Although banks such as Citigroup Inc and Spain’s BBVA are maintaining operations in the hopes of better times, the value of the country’s 31 banks in 2017 was equivalent to that of a single mid-sized bank in the Dominican Republic, according to bank regulator data.

The combination of annual inflation estimated at 8,000 percent and state-regulated interest rates has left banks with little motivation to lend and little reason to inject capital onto their balance sheets, meaning credit is steadily disappearing.

The banks are unlikely to fold, due in large part to the huge potential upside if the economy turns around, according to financial industry consultants and bank executives.

“Venezuela is a tragedy,” BBVA Executive Chairman Francisco Gonzalez told reporters at a meeting in Davos in February. “Of course we do not want to leave. I trust that something will happen,” he added, without elaborating.

BBVA did not respond to an email seeking further comment.

Meanwhile, the disappearance of credit threatens to aggravate an already brutal recession that has led hundreds of thousands to flee the country amid chronic product shortages, rising malnutrition and increased incidence of preventable disease.

Caracas resident Beglis Villanueva is a private-school teacher with three credit cards issued by BBVA subsidiary Banco Provincial — and a combined total credit limit of $2.

“I use them to buy bread, which is the only thing I can buy with them,” she said. “They used to get me out of trouble in an emergency situation. I showed my new salary to the bank but they won’t raise my credit limit.”

​Making ends meet

Though private banks’ return on equity hit an eye-popping 115 percent in December of 2017, that was devoured by an estimated 2,600 percent inflation in the same month. The central bank does not provide inflation statistics, and estimates are given by the opposition-run National Assembly.

Unlike previous hyperinflationary periods in Peru and Brazil, banks cannot make ends meet through hard currency operations because the country’s 15-year-old currency control system makes such financial maneuvers impossible.

Venezuelan banks as of January were lending only 28 percent of their deposits, compared with an average of 100 percent in the region last year, according to data from the Venezuelan government and the Latin American Federation of Banks, or Felaban.

Citibank Venezuela began suspending accounts and credit cards to clients in 2017 as part of a strategy to minimize operations while it waited for the situation to improve, according to two industry sources.

The local affiliate of Citi reported a return on equity of -43.1 percent in December, according to regulatory data.

Citi has already sold off its consumer banks in economically healthier Colombia and Brazil to cut costs, but there are no obvious buyers for the Venezuelan one.

Citi declined to comment.

Neither Venezuela’s Superintendence of Banks (Sudeban) nor the Information Ministry responded to emails seeking comment.

As of December, Venezuelan banks on average were lending $13 per person per year, in a nation with 30 million inhabitants, compared with more than $2,000 per person in 2017 in other countries in the region, according to Sudeban and Felaban data.

For large and medium-sized companies, local private banks lend no more than the equivalent of $25,000 and in almost all cases require guarantees in dollars, said one consultant who works for large companies operating in the country.

Most of those loans are for less than two years, according to a banking sector executive.

The credit crunch hurts entrepreneurs like fashion designer Yenny Bastida.

This year, her bank lent her the equivalent of $300 and required that she pay it back in six months — one-fifth of the amount and half the duration of a loan she received in 2016 to open a second store in an elite Caracas shopping center.

“The amount is ridiculous,” said Bastida, who says she now has to self-fund any growth in her business.

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Flying Taxi Start-Up Hires Designer Behind Modern Mini, Fiat 500

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Lilium, a German start-up with Silicon Valley-scale ambitions to put electric “flying taxis” in the air next decade, has hired Frank Stephenson, the designer behind iconic car brands including the modern Mini, Fiat 500 and McLaren P1.

Lilium is developing a lightweight aircraft powered by 36 electric jet engines mounted on its wings. It aims to travel at speeds of up to 300 kilometers (186 miles) per hour, with a range of 300 km on a single charge, the firm has said.

Founded in 2015 by four Munich Technical University students, the Bavarian firm has set out plans to demonstrate a fully functional vertical take-off electric jet by next year, with plans to begin online booking of commuter flights by 2025.

It is one of a number of companies, from Chinese automaker Geely to U.S. ride-sharing firm Uber, looking to tap advances in drone technology, high-performance materials and automated driving to turn aerial driving – long a staple of science fiction movies like “Blade Runner” – into reality.

Stephenson, 58, who holds American and British citizenship, will join the aviation start-up in May. He lives west of London and will commute weekly to Lilium’s offices outside of Munich.

His job is to design a plane on the outside and a car inside.

Famous for a string of hits at BMW, Mini, Ferrari, Maserati, Fiat, Alfa Romeo and McLaren, Stephenson will lead all aspects of Lilium design, including the interior and exterior of its jets, the service’s landing pads and even its departure lounges.

“With Lilium, we don’t have to base the jet on anything that has been done before,” Stephenson told Reuters in an interview.

“What’s so incredibly exciting about this is we’re not talking about modifying a car to take to the skies, and we are not talking about modifying a helicopter to work in a better way.”

Stephenson recalled working at Ferrari a dozen years ago and thinking it was the greatest job a grown-up kid could ever want.

But the limits of working at such a storied carmaker dawned on him: “I always had to make a car that looked like a Ferrari.”

His move to McLaren, where he worked from 2008 until 2017, freed him to design a new look and design language from scratch: “That was as good as it gets for a designer,” he said.

Lilium is developing a five-seat flying electric vehicle for commuters after tests in 2017 of a two-seat jet capable of a mid-air transition from hover mode, like drones, into wing-borne flight, like conventional aircraft.

Combining these two features is what separates Lilium from rival start-ups working on so-called flying cars or taxis that rely on drone or helicopter-like technologies, such as German rival Volocopter or European aerospace giant Airbus.

“If the competitors come out there with their hovercraft or drones or whatever type of vehicles, they’ll have their own distinctive look,” Stephenson said.

“Let the other guys do whatever they want. The last thing I want to do is anything that has been done before.”

The jet, with power consumption per kilometer comparable to an electric car, could offer passenger flights at prices taxis now charge but at speeds five times faster, Lilium has said.

Nonetheless, flying cars face many hurdles, including convincing regulators and the public that their products can be used safely. Governments are still grappling with regulations for drones and driverless cars.

Lilium has raised more than $101 million in early-stage funding from backers including an arm of China’s Tencent and Atomico and Obvious Ventures, the venture firms, respectively, of the co-founders of Skype and Twitter.    

 

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Facebook Rules at a Glance: What’s Banned, Exactly?

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Facebook has revealed for the first time just what, exactly, is banned on its service in a new Community Standards document released on Tuesday. It’s an updated version of the internal rules the company has used to determine what’s allowed and what isn’t, down to granular details such as what, exactly, counts as a “credible threat” of violence. The previous public-facing version gave a broad-strokes outline of the rules, but the specifics were shrouded in secrecy for most of Facebook’s 2.2 billion users.

Not anymore. Here are just some examples of what the rules ban. Note: Facebook has not changed the actual rules – it has just made them public.

Credible violence

Is there a real-world threat? Facebook looks for “credible statements of intent to commit violence against any person, groups of people, or place (city or smaller).” Is there a bounty or demand for payment? The mention or an image of a specific weapon? A target and at least two details such as location, method or timing? A statement to commit violence against a vulnerable person or group such as “heads-of-state, witnesses and confidential informants, activists, and journalists.”

Also banned: instructions on “on how to make or use weapons if the goal is to injure or kill people,” unless there is “clear context that the content is for an alternative purpose (for example, shared as part of recreational self-defense activities, training by a country’s military, commercial video games, or news coverage).”

Hate speech

“We define hate speech as a direct attack on people based on what we call protected characteristics – race, ethnicity, national origin, religious affiliation, sexual orientation, sex, gender, gender identity, and serious disability or disease. We also provide some protections for immigration status,” Facebook says. As to what counts as a direct attack, the company says it’s any “violent or dehumanizing speech, statements of inferiority, or calls for exclusion or segregation.” There are three tiers of severity, ranging from comparing a protected group to filth or disease to calls to “exclude or segregate” a person our group based on the protected characteristics. Facebook does note that it does “allow criticism of immigration policies and arguments for restricting those policies.”

Graphic violence

Images of violence against “real people or animals” with comments or captions that contain enjoyment of suffering, humiliation and remarks that speak positively of the violence or “indicating the poster is sharing footage for sensational viewing pleasure” are prohibited. The captions and context matter in this case because Facebook does allow such images in some cases where they are condemned, or shared as news or in a medical setting. Even then, though, the post must be limited so only adults can see them and Facebook adds a warnings screen to the post.

Child sexual exploitation

“We do not allow content that sexually exploits or endangers children. When we become aware of apparent child exploitation, we report it to the National Center for Missing and Exploited Children (NCMEC), in compliance with applicable law. We know that sometimes people share nude images of their own children with good intentions; however, we generally remove these images because of the potential for abuse by others and to help avoid the possibility of other people reusing or misappropriating the images,” Facebook says. Then, it lists at least 12 specific instances of children in a sexual context, saying the ban includes, but is not limited to these examples. This includes “uncovered female nipples for children older than toddler-age.”

Adult nudity and sexual activity

“We understand that nudity can be shared for a variety of reasons, including as a form of protest, to raise awareness about a cause, or for educational or medical reasons. Where such intent is clear, we make allowances for the content. For example, while we restrict some images of female breasts that include the nipple, we allow other images, including those depicting acts of protest, women actively engaged in breast-feeding, and photos of post-mastectomy scarring,” Facebook says. That said, the company says it “defaults” to removing sexual imagery to prevent the sharing of non-consensual or underage content. The restrictions apply to images of real people as well as digitally created content, although art – such as drawings, paintings or sculptures – is an exception.

 

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Cambridge Analytica Fights Back on Data Scandal

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Cambridge Analytica unleashed its counterattack against claims that it misused data from millions of Facebook accounts, saying Tuesday it is the victim of misunderstandings and inaccurate reporting that portrays the company as the evil villain in a James Bond movie.

Clarence Mitchell, a high-profile publicist recently hired to represent the company, held Cambridge Analytica’s first news conference since allegations surfaced that the Facebook data helped Donald Trump win the 2016 presidential election. Christopher Wylie, a former employee of Cambridge Analytica’s parent, also claims that the company has links to the successful campaign to take Britain out of the European Union.

“The company has been portrayed in some quarters as almost some Bond villain,” Mitchell said. “Cambridge Analytica is no Bond villain.”

Cambridge Analytica didn’t use any of the Facebook data in the work it did for Trump’s campaign and it never did any work on the Brexit campaign, Mitchell said. Furthermore, he said, the data was collected by another company that was contractually obligated to follow data protection rules and the information was deleted as soon as Facebook raised concerns.

Mitchell insists the company has not broken any laws, but acknowledged it had commissioned an independent investigation is being conducted. He insisted that the company had been victimized by “wild speculation based on misinformation, misunderstanding, or in some cases, frankly, an overtly political position.”

The comments come weeks after the scandal engulfed both the consultancy and Facebook, which has been embroiled in scandal since revelations that Cambridge Analytica misused personal information from as many as 87 million Facebook accounts. Facebook’s CEO Mark Zuckerberg testified before the U.S. congressional committees and at one point the company lost some $50 billion in value for its shareholders.

Details on the scandal continued to trickle out. On Tuesday, a Cambridge University academic said the suspended CEO of Cambridge Analytica lied to British lawmakers investigating fake news.

Academic Aleksandr Kogan’s company, Global Science Research, developed a Facebook app that vacuumed up data from people who signed up to use the app as well as information from their Facebook friends, even if those friends hadn’t agreed to share their data.

Cambridge Analytica allegedly used the data to profile U.S. voters and target them with ads during the 2016 election to help elect Donald Trump. It denies the charge.

Kogan appeared before the House of Commons’ media committee Tuesday and was asked whether Cambridge Analytica’s suspended CEO, Alexander Nix, told the truth when he testified that none of the company’s data came from Global Science Research.

“That’s a fabrication,” Kogan told committee Chairman Damian Collins. Nix could not immediately be reached for comment.

Kogan also cast doubt on many of Wylie’s allegations, which have triggered a global debate about internet privacy protections. Wylie repeated his claims in a series of media interviews as well as an appearance before the committee.

Wylie worked for SCL Group Ltd. in 2013 and 2014.

“Mr. Wylie has invented many things,” Kogan said, calling him “duplicitous.”

No matter what, though, Kogan insisted in his testimony that the data would not be that useful to election consultants. The idea was seized upon by Mitchell, who also denied that the company had worked on the effort to have Britain leave the EU.

Mitchell said that the idea that political consultancies can use data alone to sway votes is “frankly insulting to the electorates. Data science in modern campaigning helps those campaigns, but it is still and always will be the candidates who win the races.”

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China Tech Firms Pledge to End Sexist Job Ads

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Chinese tech firms pledged on Monday to tackle gender bias in recruitment after a rights group said they routinely favored male candidates, luring applicants with the promise of working with “beautiful girls” in job advertisements.

A Human Rights Watch (HRW) report found that major technology companies including Alibaba, Baidu and Tencent had widely used “gender discriminatory job advertisements,” which said men were preferred or specifically barred women applicants.

Some ads promised candidates they would work with “beautiful girls” and “goddesses,” HRW said in a report based on an analysis of 36,000 job posts between 2013 and 2018.

Tencent, which runs China’s most popular messenger app WeChat, apologized for the ads after the HRW report was published on Monday.

“We are sorry they occurred and we will take swift action to ensure they do not happen again,” a Tencent spokesman told the Thomson Reuters Foundation.

E-commerce giant Alibaba, founded by billionaire Jack Ma, vowed to conduct stricter reviews to ensure its job ads followed workplace equality principles, but refused to say whether the ads singled out in the report were still being used.

“Our track record of not just hiring but promoting women in leadership positions speaks for itself,” said a spokeswoman.

Baidu, the Chinese equivalent of search engine Google, meanwhile said the postings were “isolated instances.”

HRW urged Chinese authorities to take action to end discriminatory hiring practices.

Its report also found nearly one in five ads for Chinese government jobs this year were “men only” or “men preferred.”

“Sexist job ads pander to the antiquated stereotypes that persist within Chinese companies,” HRW China director Sophie Richardson said in a statement.

“These companies pride themselves on being forces of modernity and progress, yet they fall back on such recruitment strategies, which shows how deeply entrenched discrimination against women remains in China,” she added.

China was ranked 100 out of 144 countries in the World Economic Forum’s 2017 Gender Gap Report, after it said the country’s progress towards gender parity has slowed.

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Facebook Says It is Taking Down More Material About ISIS, al-Qaida

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Facebook said on Monday that it removed or put a warning label on 1.9 million pieces of extremist content related to ISIS or al-Qaida in the first three months of the year, or about double the amount from the previous quarter.

Facebook, the world’s largest social media network, also published its internal definition of “terrorism” for the first time, as part of an effort to be more open about internal company operations.

The European Union has been putting pressure on Facebook and its tech industry competitors to remove extremist content more rapidly or face legislation forcing them to do so, and the sector has increased efforts to demonstrate progress.

Of the 1.9 million pieces of extremist content, the “vast majority” was removed and a small portion received a warning label because it was shared for informational or counter-extremist purposes, Facebook said in a post on a

corporate blog.

Facebook uses automated software such as image matching to detect some extremist material. The median time required for takedowns was less than one minute in the first quarter of the year, the company said.

Facebook, which bans terrorists from its network, has not previously said what its definition encompasses.

The company said it defines terrorism as: “Any non-governmental organization that engages in premeditated acts of violence against persons or property to intimidate a civilian population, government, or international organization in order to achieve a political, religious, or ideological aim.”

The definition is “agnostic to ideology,” the company said, including such varied groups as religious extremists, white supremacists and militant environmentalists.

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Technology is Latest Trend Reshaping Fashion

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Imagine wearing a computer in the form of a jacket. Now, it is possible.

“When somebody calls you, your jacket vibrates and gives you lights and [you] know somebody is calling you,” said Ivan Poupyrev, who manages the Google’s Project Jacquard, a digital platform for smart clothing.

Project Jacquard formed a partnership with Levi’s to create the first Jacquard enabled garment in the form of Levi’s Commuter Trucker Jacket. What makes the jacket “smart” includes washable technology, created by Google, woven into the cuff of the jacket.

“These are highly conductive fibers, which are very strong and can be used in standard denim-weaving process,” said Poupyrev.

A tap on the cuff can also provide navigation and play music when paired with a mobile phone, headphones and a small piece of removable hardware, called a snap tag, that attaches to the cuff.

“You get the most important features of the phone without taking your eyes off the road,” said Paul Dillinger, vice president of global product innovation for Levi Strauss & Co.

Smart clothing

The Levi’s jacket is just one step to smarter clothing.

“Do they want to make shoes? Do they want to make bags? Do they want to make trousers?” Poupyrev explained, “The platform [is] being designed so that this technology can be applied to any type of garment. Right now, it’s Levi’s but right now, we’re very actively working with other partners in the apparel industry and try to help to make their products connected.”

That means designers need to be increasingly tech savvy.

“Fashion designers in the future are going to have to think about their craft differently. So, it’s not just sketching and pattern making and draping and drafting. It’s going to involve use case development and being a participant in cladding an app and becoming an industrial designer and figuring out what you want these components to look like.” Dillinger added, “What we found out is engineers and designers are kind of the same thing. They just use very different languages.”

New patterns and materials

From the functionality of clothes to how they are made, computing power is reshaping fashion. Designers can create structures and patterns that have never existed before current technology.

“Designers now have a new set of tools to actually design things they could never design before. We can use computational tools to make patterns and formats that we could not do individually, because they were too mathematically and technically complicated. So, we’re using algorithms to help us facilitate design,” said Syuzi Pakhchyan whose job is to envision the future as experience design lead at the innovation firm, BCG Digital Ventures.

New technologies are also being used to make bioengineered fabrics made with yeast cells in a lab. The company, Bolt Threads, is developing fabrics made out of spider silk.

“We take the DNA out of spiders, put it in yeast, grow it in a big tank like brewing beer or wine and then purify the material, the polymer and spin it into fibers so it’s a very deep technology that’s required many years to develop,” Dan Widmaier, chief executive officer and co-founder of Bolt Threads.

The company Modern Meadow grows leather from yeast cells.

“We engineer them to produce collagen which is the same natural protein that you find in your skin or an animal skin, and then we really grow billions of those cells, make a lot of collagen, purify it and then assemble it into whatever kinds of materials, the brands, the designers that we’re working with would like to see,” explained Suzanne Lee chief creative officer of Modern Meadow.

She said these bioengineered materials are more sustainable and can be described as both natural and man-made.

“So, we’re really bringing both of those fields together to create a new material revolution. The best of nature with the best of design and engineering,” said Lee

What’s hot and what’s not

Technology is also disrupting fashion trends.The prevalence of social media means it is not just the designers who decide what is the latest trendy styles in fashion.

“Fashion has been democratized. A lot of fashion is being made by influencers with zero design experience,” said Pakhchyan.

Replacing trend forecasters, artificial intelligence can now collect data from social media and the web to give designers insight on public preferences.

“This is actually I think changing the role of the designer. Cause now, you have all this information so what are you going to do with this information?” said Pakhchyan.

Shopping on-line

How clothes are marketed and sold are also increasingly dependent on technology. If a consumer has shopped on a website once, that data is collected to entice the user to buy other products through personalization.

“When I connect online with a brand, they know me. I feel like they know me. They know who I am, they know what I like, they know what I want,” said Pakhchyan.

The Levi’s smart jacket can also be purchased online. The price tag: $350.

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One of Sudan’s Lost Boys Finds a Way to Help Other Refugees

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A cup of coffee is a good way for many to start the day. But it can also do far greater good. Manyang Kher, a former Sudanese child refugee – one of the so-called Lost Boys and now a US citizen – is passionate about helping refugees build a brighter future. And he does it with coffee. VOA’s June Soh talked with the founder of a social enterprise, 734 coffee. VOA’s Carol Pearson narrates her report.

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