Month: May 2018

The United States is escalating trans-Atlantic and North American trade tensions, imposing a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the European Union, Canada and Mexico that will go into effect on Friday.   The move is prompting immediate retaliatory tariffs from the Europeans – expected to target such iconic American products as Harley Davidson motorcycles and Levi’s jeans, as well as Kentucky bourbon and Tennessee whiskey. “We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved,” U.S. Commerce Secretary Wilbur Ross told reporters in a telephone briefing on Thursday. “This is a bad day for…

When Oregon lawmakers created the state’s legal marijuana program, they had one goal in mind above all else: to persuade illicit pot growers to leave the black market. That meant low barriers to entry that also targeted long-standing medical marijuana growers, whose product is not taxed. As a result, weed production boomed — with a bitter consequence. Now, marijuana prices here are in free fall, and the craft cannabis farmers who put Oregon on the map decades before broad legalization say they are in peril of losing their now-legal businesses as the market adjusts. Oregon regulators on Wednesday announced they will stop processing new applications for marijuana licenses in two weeks to address a severe backlog and ask state lawmakers to take up the issue next year. ​California takes heed…

President Donald Trump’s administration is planning to impose tariffs on European steel and aluminum imports after failing to win concessions from the European Union, a move that could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions. The tariffs are likely to go into effect on the EU with an announcement by Friday’s deadline, according to two people familiar with the discussions. The administration’s plans could change if the two sides are able to reach a last-minute agreement, said the people, who spoke on condition of anonymity to discuss internal deliberations. Trump announced in March the United States would slap a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, citing national security interests. But he granted an exemption to the EU and other U.S. allies;…

Malaysia and China are looking to re-balance ties as the new government of Prime Minister Mahathir Mohammad seeks to renegotiate billions of dollars of Chinese backed infrastructure spending, with the goal of reducing the country's national debt. China is Malaysia's leading foreign direct investor at over $3.38 billion, ahead of the U.S., Japan and Singapore, with major infrastructure deals negotiated during the previous government of Najib Razak. The main contract is a $14 billion (55 billion ringgit) East Coast Rail Link, as well as manufacturing, real estate and sovereign wealth fund bonds. Carl Thayer, a professor of politics at Australia's University of New South Wales, says Malaysia is seeking to move beyond anti-Chinese rhetoric that had been an undercurrent of the May 9 national polls. Thayer said during the campaign…

  U.S. Commerce Secretary Wilbur Ross said Wednesday a U.S.-European Union trade deal could still be reached even if the United States imposes tariffs on EU steel and aluminum imports. EU and U.S. officials are holding last-minute negotiations two days before U.S. President Donald Trump decides to apply tariffs on Europe. The threat of tariffs has increased prospects of retaliation and a global trade war that could hinder the global economy. “There can be negotiations with or without tariffs in place,” Ross said at the Organization for Economic Cooperation and Development in Paris. “There are plenty of tariffs the EU has on us. It’s not that we can’t talk just because there’s tariffs." The Trump administration is also exploring possible limits on foreign auto imports, citing national security.  The EU…

China vows it will fight back if the United States goes through with plans to impose huge tariffs on Chinese goods. President Donald Trump's administration said in a statement Tuesday it planned to impose 25 percent tariffs on $50 billion of Chinese goods that contain "industrially-significant technology." It said the proposed tariffs are in response to China's practices with respect to technology transfer, intellectual property, and innovation.   Chinese Foreign Ministry Spokeswoman Hua Chunying blasted the Trump administration's apparent reversal Wednesday in Beijing. Hua warned the administration risked squandering its credibility in international relations with every "flip flop" and contradiction of its previous stance. Hua stressed Beijing is not afraid of engaging in a trade war, and will take "forceful" measures if the tariffs are imposed. The White House said…

The U.S.-North Korea summit appears to be back on track, but Pyongyang is showing increased impatience at comments coming out of Washington that what leader Kim Jong Un really wants, even more than his nuclear security blanket, is American-style prosperity. It's a core issue for Kim and a message President Donald Trump shouldn't ignore as they work to nail down their summit next month in Singapore. Kim is as enthusiastic as Trump to see the summit happen as soon as possible, but the claim that his sudden switch to diplomacy over the past several months shows he is aching for U.S. economic aid and private-sector know-how presents a major problem for the North Korean leader, who can't be seen as going into the summit with his hat in his hand.…

Starbucks, mocked three years ago for suggesting employees discuss racial issues with customers, asked workers Tuesday to talk about race with each other. It was part of the coffee chain's anti-bias training, created after the arrest of two black men in a Philadelphia Starbucks six weeks ago. The chain apologized but also took the dramatic step of closing its stores early for the sessions. But still to be seen is whether the training, developed with the NAACP Legal Defense and Education Fund and other groups, will prevent another embarrassing incident.  “This is not science, this is human behavior,” said Starbucks Chairman Howard Schultz. He called it the first step of many. The training was personal, asking workers to break into small groups to talk about their experiences with race. According…

Consumer confidence rebounded in May, but households were a bit pessimistic about their short-term income prospects even as they expected strong job growth to persist, which could restrain consumer spending. The Conference Board said on Tuesday its consumer confidence index rose 2.4 points to a reading of 128.0 this month from a downwardly revised 125.6 in April. The index was previously reported at 128.7 in April. "If consumers don't step up their spending ... then the growth outlook this year may disappoint on the weak side," said Chris Rupkey chief economist at MUFG in New York. U.S. financial markets were little moved by the data amid a deepening political crisis in Italy. The dollar rose to a 10-month high against the euro, while U.S. Treasury yields fell. Stocks on Wall…

In an effort to stem the outcry over the arrest of two black men at one of its stores, Starbucks will close 8,000 U.S. stores Tuesday afternoon for anti-bias training for its employees.  On April 12, two black men went to a Philadelphia store and did not buy anything; instead, they told the store manager they were waiting for a friend to join them. They were asked to leave and an employee called police, which led to their arrest, prompting protests and accusations of racism.  A video of the incident that was posted on social media became a major embarrassment for the coffee chain. Soon after, Starbucks announced a policy change, welcoming anyone to sit in its cafes or use its restrooms, even if they don't buy anything. Previously, it…

Starbucks will close more than 8,000 stores nationwide Tuesday to conduct anti-bias training, the next of many steps the company is taking in an effort to restore its tarnished diversity-friendly image.   The coffee chain's leaders reached out to bias training experts after the arrest of two black men at a Philadelphia Starbucks last month.   The plan has brought attention to the little-known world of "unconscious bias training" used by corporations, police departments and other organizations. It's designed to get people to open up about implicit biases and stereotypes in encountering people of color, gender or other identities.   A video previewing the training says it will include recorded remarks from Starbucks executives as well as rapper and activist Common. From there, the company says, employees will "move into…

China told the World Trade Organization's dispute settlement body on Monday that U.S. accusations that Beijing forced companies to hand over technology as a cost of doing business in China were groundless. U.S. President Donald Trump has accused China of stealing American ideas and announced a plan for a $50 billion tariff penalty against Chinese goods. Both sides launched legal complaints at the WTO over the issue earlier this year. "There is no forced technology transfer in China," Chinese Ambassador Zhang Xiangchen told the meeting, according to a copy of his remarks provided to Reuters. "According to the U.S.'s view, China forces the U.S. companies to transfer technologies by imposing joint venture requirements, foreign equity limitations and administrative licensing procedures," Zhang said. "But the fact is, nothing in these regulatory…

New Zealand will slaughter more than 100,000 cows in an effort to eradicate a bacterial disease. The government and agricultural leaders announced Monday that it will spend over $600 million over the next decade to rid the country of Mycoplasma bovis, which causes udder infections, pneumonia, arthritis and other illnesses. The bacteria is not a threat to humans, but can cause production delays on farms. "This is a tough call," said Prime Minister Jacinda Ardern. "But the alternative is to risk the spread of the disease across our national herd." Mycoplasma bovis has been detected on more than three dozen farms since it was first detected in New Zealand last year, leading to the slaughter of about 26,000 cattle. The country is the world's largest exporter of milk and dairy…

New shops appear in New York City every day, but Phluid Project, which recently opened its doors on Broadway, is different. One of the first gender-fluid boutiques in the world, Phluid Project sells clothing for men, women and everyone in between. Both the clothes and the mannequins here are gender-neutral, and as an added selling point, its store owners say the prices are more than affordable. Elena Wolf visited the one-of-a-kind store, where no one feels out of place. ...

Russian state gas giant Gazprom said Saturday it had signed a protocol with the Turkish government on a planned gas pipeline and agreed with Turkish firm Botas to end an arbitration dispute over the terms of gas supplies.  The protocol concerned the land-based part of the transit leg of the TurkStream gas pipeline, which Gazprom said meant that work to implement it could now begin. Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline, which, if completed, would allow Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe. A source said in February the permit problem might be related to talks between Gazprom and Botas about a possible discount for Russian gas.…

Italy's would-be coalition parties turned up the pressure on President Sergio Mattarella on Saturday to endorse their euroskeptic pick as economy minister, saying the only other option might be a new election. Mattarella has held up formation of a government, which would end more than 80 days of political deadlock, over concern about the desire of the far-right League and anti-establishment 5-Star Movement to make economist Paolo Savona, 81, economy minister. Savona has been a vocal critic of the euro and the European Union, but he has distinguished credentials, including in a former role as an industry minister. Formally, Prime Minister-designate Giuseppe Conte presents his cabinet to the president, who must endorse it. Conte, a little-known law professor with no political experience, met the president on Friday without resolving the deadlock. "I hope no one has already decided 'no,' " League leader Matteo…

Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones without a bank account. Now, a proliferation of lenders are using the same technology to extend credit to the banked and unbanked alike, saddling borrowers with high interest rates and leaving regulators scrambling to keep up. This week, the finance ministry published a draft bill on financial regulation that covers digital lenders for the first time. A key aim is to ensure that providers treat retail customers fairly, it said. “We have a lot of predatory lending out here, which we want to regulate,” Geoffrey Mwau, director general of budget, fiscal and economic affairs at the treasury, told reporters Thursday.…

Italy's prime minister-designate, Giuseppe Conte, a political novice and obscure law professor accused of padding his resume, put the finishing touches to his cabinet lineup Friday. And initial reaction from financial markets was far from approving. Italian government bond prices slumped and the country's ailing banks saw their stock prices hit an 11-month low. Italy's outgoing economy minister, Pier Carlo Padoan, warned the incoming coalition government of the anti-establishment Five Star Movement (M5S) and far-right League not to underestimate the power of the markets. "The most worrying aspect of the program, which this government is working on, is its underestimation of the consequences of certain choices," Padoan told the Il Sole 24 Ore newspaper. M5S and the League unveiled their government agreement a week ago, after more than 70 days…

Military veterans who were discharged for relatively minor offenses say they often can't get jobs, and they hope a recent warning to employers by the state of Connecticut will change that. The state's human rights commission told employers last month they could be breaking the law if they discriminate against veterans with some types of less-than-honorable discharges. Blanket policies against hiring such veterans could be discriminatory, the commission said, because the military has issued them disproportionately to black, Latino, gay and disabled veterans. At least one other state, Illinois, already prohibits hiring discrimination based on a veteran's discharge status, advocates say, but Connecticut appears to be the first to base its decision on what it deems discrimination by the military. Regardless of the state's reasons, veterans say, the attention there…

Here are the highest-paid CEOs for 2017, as calculated by The Associated Press and Equilar, an executive data firm. The AP's compensation study covered 339 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their respective companies, which filed proxy statements between January 1 and April 30. Compensation often includes stock and option grants that the CEO may not receive for years unless certain performance measures are met. For some companies, big raises occur when CEOs get a stock grant in one year as part of a multi-year grant. 1. Hock Tan Broadcom $103.2 million Change from last year: Up 318 percent 2. Leslie Moonves CBS $68.4 million Change: flat 3. W. Nicholas Howley TransDigm $61 million Change: Up 223 percent (Howley left…