G-20 Ministers: Trade, Political Tensions Put Growth at Risk

All, Business, News

“Heightened trade and geopolitical tensions” are putting global economic growth at risk, G-20 finance ministers said after two days of meetings in Buenos Aires on Sunday.

In their final communique, the Group of 20 ministers stressed the need to “step up dialogue and actions to mitigate risks and enhance confidence.”

The ministers, representing industrial and emerging-market nations, described the overall world economic growth as “robust,” but expressed concerns over what they call the increased risks of the “short and medium term.”

They did not mention the United States by name in their closing statement. But some decried President Donald Trump’s tough trade rhetoric and tariffs on Chinese and European imports.

European Union finance chief Pierre Moscovici urged the U.S. to act like allies, not foes. French finance minister Bruno Le Marie accused Trump of creating a “survival of the fittest” trade mentality and called on Washington to “de-escalate.”

Trump has imposed tariffs on imports of European steel (25 percent) and aluminum (10 percent) while also slapping billions of dollars in tariffs on Chinese goods and threatening more.

He has also accused China and the EU of keeping their interests rates and currencies low, damaging the U.S. dollar on the world market.

 

your ad here

Poll: British Reject May’s Brexit Plan, Some Turn to Johnson, Far Right

All, Business, News

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.

your ad here

Poll: British Reject May’s Brexit plan, Some turn to Boris, Far Right

All, Business, News

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.

your ad here

German Industry: US Tariffs Risk Hurting US

All, Business, News

German industry groups warned Sunday, ahead of a meeting between European Commission President Jean-Claude Juncker and U.S. President Donald Trump, that tariffs the United States has recently imposed or threatened risk harming the U.S. itself.

The U.S. imposed tariffs on EU steel and aluminum June 1, and Trump is threatening to extend them to EU cars and car parts. Juncker will discuss trade with Trump at a meeting Wednesday.

Dieter Kempf, head of Germany’s BDI industry association, told the Welt am Sonntag newspaper it was wise for the European Union and United States to continue their discussions.

German auto industry

“The tariffs under the guise of national security should be abolished,” Kempf said, adding that Juncker needed to make clear to Trump that the United States would harm itself with tariffs on cars and car parts.

He added that the German auto industry employed more than 118,000 people in the United States and 60 percent of what they produced was exported to other countries from the U.S. 

“Europe should not let itself be blackmailed and should put in a confident appearance in the United States,” he added.

Lowered expectations

EU officials have sought to lower expectations about what Juncker can achieve and downplayed suggestions that he will arrive in Washington with a novel plan to restore good relations.

Eric Schweitzer, president of the DIHK Chambers of Commerce, told Welt am Sonntag he welcomed Juncker’s attempt to persuade the U.S. government not to impose tariffs on cars.

“All arguments in favor of such tariffs are … ultimately far-fetched,” he said.

The German economy had for decades counted on there being open markets and a reliable global trading system, Schweitzer said, but he added of the current situation: “Every day German companies feel the transatlantic rift getting wider.”

your ad here

Fiat Chrysler Names Jeep Boss to Replace Stricken CEO

All, Business, News

Fiat Chrysler named on Saturday its Jeep division boss, Mike Manley, to take over immediately for Chief Executive Sergio Marchionne, who is seriously ill after suffering major complications following surgery.

The carmaker said British-born Manley, who also takes responsibility for the North America region, will push ahead with the midterm strategy outlined last month by Marchionne, who had been due to step down next April.

Marchionne, 66, was credited with rescuing Fiat and Chrysler from bankruptcy after taking the Italian carmaker’s wheel in 2004. On Saturday, he was also replaced as chairman and CEO of Ferrari and chairman of tractor maker CNH Industrial — both spun off from Fiat Chrysler Automobiles in recent years.

“FCA communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours,” the statement said.

FCA disclosed earlier this month that Marchionne, a renowned dealmaker and workaholic, was recovering from a shoulder operation. But his condition deteriorated sharply in recent days when he suffered massive complications that were not divulged.

Ferrari named FCA Chairman and Agnelli family scion John Elkann as new chairman, while board member Louis Camilleri becomes chief executive. CNH appointed Suzanna Heywood to replace Marchionne as chairman. All three companies remain controlled by the Agnellis.

Marchionne had previously said he planned to stay on as Ferrari chairman and CEO until 2021.

Deal focus

One of the auto industry’s longest-serving CEOs, Marchionne has advocated tie-ups to share the growing cost burden of developing cleaner, electrified and autonomous vehicles.

He resisted the comparatively easy option of selling off coveted brands such as Jeep, saying that would leave too big a problem with Fiat as “the stump that is left behind.”

But after being rejected by his preferred partner General Motors, he turned back to the task of cutting FCA’s debt — a goal he achieved last month — while maintaining that a merger for FCA was “ultimately inevitable.”

Investor hopes for a transformative deal had largely dwindled and are unlikely to hit the shares on Marchionne’s departure, according to Evercore analyst George Galliers.

“The valuation doesn’t suggest expectations of a buyout are high,” Galliers said.

Even without Marchionne, FCA will remain “culturally more open to dealmaking and savvy to potential capital market opportunities than much of the competition,” he added.

“A lot of that’s now ingrained, so I don’t think you lose everything he’s brought to the company overnight.”

Yet, Manley will have a tough act to follow.

Marchionne resurrected one of Italy’s biggest corporate names and revitalized Chrysler, succeeding where the U.S. company’s two previous owners — Mercedes parent Daimler and private equity group Carberus — both failed.

He has multiplied Fiat’s value 11 times since taking charge, helped by moves such as the spinoffs of CNH Industrial and Ferrari. The planned separation of parts maker Magneti Marelli, due this year, should further increase that value-generation.

He also flattened an inflexible hierarchy, replacing layers of middle management with a meritocratic leadership style. He slashed costs by reducing the number of vehicle architectures and creating joint ventures to pool development and plant costs.

your ad here

Iran Leader Backs Suggestion to Block Gulf Oil Exports if Own Sales Stopped

All, Business, News

Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday backed President Hassan Rouhani’s suggestion that Iran may block Gulf oil exports if its own exports are stopped and said negotiations with the United States would be an “obvious mistake.”

Rouhani’s apparent threat earlier this month to disrupt oil shipments from neighboring countries came in reaction to looming U.S. sanctions and efforts by Washington to force all countries to stop buying Iranian oil.

“(Khamenei) said remarks by the president … that ‘if Iran’s oil is not exported, no regional country’s oil will be exported,’ were important remarks that reflect the policy and the approach of (Iran’s) system,” Khamenei’s official website said.

Iranian officials have in the past threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile U.S. action.

Khamenei used a speech to foreign ministry officials on Saturday to reject any renewed talks with the United States after President Donald Trump’s decision to withdraw from a 2015 international deal over Iran’s nuclear program.

“The word and even the signature of the Americans cannot be relied upon, so negotiations with America are of no avail,” Khamenei said.

It would be an “obvious mistake” to negotiate with the United States as Washington was unreliable, Khamenei added, according to his website.

The endorsement by Khamenei, who has the last word on all major issues of state, is likely to discourage any open opposition to Rouhani’s apparent threat.

Khamenei also voiced support for continued talks with Iran’s European partners in the nuclear deal which are preparing a package of economic measures to offset the U.S. pullout from the

accord.

“Negotiations with the Europeans should not be stopped, but we should not be just waiting for the European package, but instead we should follow up on necessary activities inside the country [against U.S. sanctions],” Khamenei said.

France said earlier this month that it was unlikely European powers would be able to put together an economic package for Iran that would salvage its nuclear deal before November.

Iran’s oil exports could fall by as much as two-thirds by the end of the year because of new U.S. sanctions, putting oil markets under huge strain amid supply outages elsewhere in the world.

Washington initially planned to totally shut Iran out of global oil markets after Trump abandoned the deal that limited Iran’s nuclear ambitions, demanding all other countries to stop buying its crude by November.

But it has since somewhat eased its stance, saying that it may grant sanction waivers to some allies that are particularly reliant on Iranian supplies.

 

your ad here

Facebook Suspends Another Analytics Firm

All, News, Technology

Facebook says it has suspended working with Boston-based analytics firm Crimson Hexagon until it can determine how the firm collects and shares Facebook and Instagram user data.

Facebook announced the suspension Friday.

The Wall Street Journal was the first to report the suspension and said that one of Crimson Hexagon’s clients is a Russian nonprofit with ties to the Kremlin.

Facebook said that Crimson Hexagon is cooperating with the investigation and there is no evidence that Crimson Hexagon obtained Facebook or Instagram information inappropriately.

“We don’t allow developers to build surveillance tools using information from Facebook or Instagram,” Facebook said in a statement Friday. “We take these allegations seriously and have suspended these apps while we investigate.”

Chris Bingham, Crimson Hexagon’s, chief technology officer, said in a blog Friday his company “only collects publicly available social media data that anyone can access.”

He added, “Government entities that leverage the Crimson Hexagon platform do so for the same reasons as many of our other nongovernment customers: a broad-based and aggregate understanding of the public’s perception, preferences and sentiment about matters of concern to them.”

Earlier this year, it was revealed that Cambridge Analytica inappropriately obtained user data from millions of Facebook users.

your ad here

Fashion Industry Reinventing Itself by Embracing the Digital Age

All, News, Technology

For years denim jeans have been finished in foreign factories where workers use manual and automated techniques such as scraping with sandpaper or other abrasives to make the jeans appear worn and more comfortable to wear. But things are changing in the fashion world. As VOA’s Mariama Diallo reports, fashion companies are going digital to speed up the design and manufacturing process.

your ad here

US Senators Drop Efforts to Cripple China’s ZTE

All, Business, News

U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE. 

The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business. 

Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision.

Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days.

Lawmakers from both parties have been critical of President Trump over his decision to lift a ban on U.S. companies selling to ZTE.

Top Senate Democrat Chuck Schumer blasted Friday’s developments.

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump and the congressional Republicans who acted at his behest  have once again made President Xi and the Chinese Government the big winners,” he said in a statement.

Republican Senator Marco Rubio called dropping the provision “bad news” in a tweet Friday.ZTE is accused of selling sensitive technologies to Iran and North Korea, despite a U.S. trade embargo.

In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. 

However, Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.

The Commerce Department announced last week that it has formally lifted the ban on ZTE after the Chinese company complied with all terms of the settlement. 

Most of the world first heard of the dispute over ZTE in May after one of Trump’s tweets.

 

 

 

your ad here

Trump Amps Up Criticism of Fed Rate Hikes

All, Business, News

U.S. President Donald Trump on Friday dug in on his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ “big competitive edge,” and lamented the strength of the U.S. dollar.

Trump, in posts on Twitter, also accused the European Union and China of manipulating their currencies.

“China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day – taking away our big competitive edge,” Trump wrote. “As usual, not a level playing field.”

After his posts, the U.S. dollar extended losses against the European Union’s euro, the Chinese yuan and Japanese yen.

Representatives for the Fed could not immediately be reached for comment.

Trump had already criticized the Fed’s interest rate policy in an interview on CNBC on Thursday, saying he was concerned higher rates could impact the U.S. economy.

Most economists believe the current economic climate, with the nation’s unemployment at historic lows and inflation at the Fed’s 2 percent target, justify recent interest rate rises and a strong U.S. dollar.

The issue also ties into the Trump administration’s current trade battles with China, Europe and others, as a strong currency tends to make a country’s exports more expensive, hurting exporters.

your ad here

Trump Ready to Hit All Chinese Imports With Tariffs

All, Business, News

President Donald Trump has indicated that he’s willing to hit every product imported from China with tariffs, sending U.S. markets sliding before the opening bell Friday.

 

In a taped interview with the business channel CNBC, Trump said “I’m willing to go to 500,” referring roughly to the $505.5 billion in goods imported last year from China.

 

The administration to date has slapped tariffs on $34 billion of Chinese goods in a trade dispute over what it calls the nation’s predatory practices.

 

Dow futures which had already been pointing modestly lower slid sharply after the comments were aired by CNBC early Friday, indicating triple-digit losses when the market opens.

 

The yuan dipped to a 12-month low of 6.8 to the dollar, off by 7.6 percent since mid-February.

 

There is already pushback in the U.S. from businesses that will take a hit in an escalating trade war.

 

Trump has ordered Commerce to investigate whether auto imports pose a threat to U.S. national security that would justify tariffs or other trade restrictions. Earlier this year, he used national security as a justification for taxing imported steel and aluminum.

 

Auto tariffs would escalate global trade tension dramatically: The U.S. last year imported $192 billion in vehicles and $143 billion in auto parts — figures that dwarf last year’s $29 billion in steel and $23 billion in aluminum imports.

 

In the same interview, taped Thursday at the White House, Trump broke with a long-standing tradition at the White House and voiced displeasure about recent actions at the U.S. Federal Reserve. Both political and economic officials believe that the central bank needs to operate free of political pressure from the White House or elsewhere to properly manage interest rate policy.

 

Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018. Its rate hikes are meant to prevent the economy from overheating and igniting high inflation. But rate increases also make borrowing costlier for households and companies and can weaken the pace of growth. In particular, the Fed’s most recent rate hikes could dilute some of the benefit of the tax cuts Trump signed into law last year.

your ad here

WhatsApp Makes Changes in India After Deadly Attacks

All, News, Technology

WhatsApp has announced changes for its 200 million users in India following the spread of viral messages via the app that resulted in deadly mob attacks.

India’s government has threatened to take WhatsApp to court, saying “…the medium used for such propagation cannot evade responsibility and accountability.”  The information technology ministry said, “If they remain mute spectators they are liable to be treated as abettors and thereafter face consequent legal action.”  

The Facebook-owned messaging app said it will limit Indian users’ ability to forward messages, allowing only five contacts at a time to receive them.

The firm said it will also remove the quick forward button placed next to media messages.

Both moves are designed to make stop the mass forwards that have resulted in the mob attacks.

India is WhatsApp’s largest market.

your ad here

China Boosts Liquidity as Trade War Threatens Economy

All, Business, News

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.

your ad here

Cyberattacks on 2018 US Political Campaigns Already Underway

All, News, Technology

Hackers targeted the campaigns of at least three candidates running for Congress in the upcoming 2018 U.S. elections, but the attacks were detected and thwarted, a Microsoft executive said Thursday.

The attempted attacks tried to use a fake Microsoft domain as a landing page for phishing attacks, said Tom Burt, Microsoft vice president for customer security and trust. He refused to name which candidates were targeted, citing privacy concerns.

“They were all people who, because of their positions, might have been interesting targets from an espionage standpoint, as well as an election disruption standpoint,” Burt told an audience at the annual Aspen Security Forum in Aspen, Colorado.

He also did not identify the source of the phishing attacks, though the tactic was similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Burt said Microsoft coordinated with the U.S. government and was able to take down the fake domains. He also said none of the campaign staffers targeted by the phishing attacks were infected.

​More attacks are coming

Thursday’s revelation came in the wake of U.S. President Donald Trump’s news conference Monday in Helsinki, Finland, after his meeting with Russian President Vladimir Putin. Trump sided with Putin, supporting the Russian leader’s assertions that his country did not meddle with the 2016 U.S. presidential election.

Trump’s comments, which directly contradicted the findings of the U.S. intelligence community, have drawn harsh criticism from politicians, and former diplomatic and intelligence officials.

Current intelligence and security officials have warned repeatedly that not only was Russia responsible for meddling in the 2016 election, but that more attacks — both in the form of hacks and in the form of more subtle information operations — are coming.

Russia taking lead

“What we assessed and reassessed and have carefully gone over still stands,” U.S. Director of National Intelligence Dan Coats said of Russia’s efforts.

“It’s undeniable that the Russians are taking the lead on this,” Coats added, speaking during an appearance at the same security forum. “They are the ones who are trying to undermine our basic values, divide us with our allies.”

But U.S. and private sector officials say that, at least to this point, Russian efforts to influence the 2018 elections appear to be somewhat subdued.

“We’re not seeing the targeting of the actual state and local election systems that we saw in 2016 right now,” said Jeanette Manfra, the Department of Homeland Security’s assistant secretary for cybersecurity.

New tools working

For now, some leading private sector technology and social media companies agree.

Facebook, which Russia used to run ads and false news stories as part of its 2016 influence campaign, thinks some of that could be related to more awareness and crackdowns on the fake accounts Russian-linked operatives had been using.

“The new tools that would identify and remove fake accounts like the IRA [Russia’s Internet Research Agency] was running, combined with the new requirements for transparency in advertising, are such that I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said.

“But we are watching for that activity,” Bickert said.

Microsoft’s Burt is also cautious, despite his experts “not seeing the same level of activity by the Russian activity groups” as they did two years ago.

“It doesn’t mean we’re not going to see it,” he said. “There’s a lot of time left.”

“I think we should all be prepared, given that capability and will, that they’ll do it again,” U.S. Homeland Security Secretary Kirstjen Nielsen warned Thursday. “We would be foolish to think they’re not.”

your ad here

Trump Administration Wants to Scrap Some Species Protection

All, Business, News

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.

your ad here

US Seen Receiving Frosty Reception at G-20 Meeting

All, Business, News

The financial leaders of the world’s 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other’s goods.

The United States will seek to persuade Japan and the European Union to join it in taking a more aggressive stance against Chinese trade practices at the G-20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official who spoke on condition on anonymity.

But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth.

“U.S. trading partners are unlikely to be in a conciliatory mood,” said Eswar Prasad, international trade professor at Cornell University and former head of the International Monetary Fund’s China Division. “[U.S.] hostile actions against long-standing trading partners and allies have weakened its economic and geopolitical influence.”

At the close of the last G-20 meeting in Argentina in March, the financial leaders representing 75 percent of world trade and 85 percent of gross domestic product released a joint statement that rejected protectionism and urged “further dialogue,” to little concrete effect.

Since then, the United States and China have slapped tariffs on $34 billion of each other’s imports and U.S. President Donald Trump has threatened further tariffs on $200 billion worth of Chinese goods unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

Trump has said the U.S. tariffs aim to close the $335 billion annual U.S. trade deficit with China.

U.S. Treasury Minister Steven Mnuchin has no plans for a bilateral meeting with his Chinese counterpart in Buenos Aires, a U.S official said this week.

Growth concerns

Rising trade tensions have led to concerns within the Japanese government over currency volatility, said a senior Japanese G-20 official who declined to be named. Such volatility could prompt an appreciation in the safe-haven yen and threaten Japanese exports.

Trump’s metals tariffs prompted trade partners to retaliate with their own tariffs on U.S. goods ranging from whiskey to motorcycles. The United States has said it will challenge those tariffs at the World Trade Organization.

The EU finance ministers signed a joint text last week that will form their mandate for this weekend’s meeting, criticizing “unilateral” U.S. trade actions, Reuters reported. The ministers will stress that trade restrictions “hurt everyone,” a German official said.

In a briefing note prepared for the G-20 participants, the International Monetary Fund said if all of Trump’s threatened tariffs — and equal retaliation — went into effect, the global economy could lose up to 0.5 percent of GDP, or $430 billion, by 2020.

Global growth also may have peaked at 3.9 percent for 2018 and 2019, and downside risks have risen due to the tariff spat, the IMF said.

“While all countries will ultimately be worse off in a trade conflict, the U.S. economy is especially vulnerable,” IMF Managing Director Christine Lagarde wrote in a blog post. “Policymakers can use this G-20 meeting to move past

self-defeating tit-for-tat tariffs.”

Trade is not on host country Argentina’s published agenda for the July 21-22 ministerial, which focuses on the “future of work” and infrastructure finance. But it will likely be discussed during a slot devoted to risks facing the global

economy, much as in March, according to an Argentine official involved in G-20 preparations, who asked not be named.

your ad here

Trump Slams Record EU Fine Against Google

All, News, Technology

President Donald Trump lashed out Thursday after Brussels hit US tech giant Google with a record fine, and warned he would no longer allow Europe to take “advantage” of the United States.

“I told you so! The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google,” Trump tweeted in reaction to the 4.34 billion euro penalty imposed on Google for abusing the dominance of its mobile operating system.

“They truly have taken advantage of the US, but not for long!” he said.

In announcing the fine on Wednesday, EU Competition Commissioner Margrethe Vestager accused Google of using the Android system’s near-stranglehold on smartphones and tablets to promote the use of its own Google search engine while shutting out rivals.

The decision, which followed a three-year EU investigation, comes as fears of a transatlantic trade war mount because of President Donald Trump’s decision to impose tariffs on European steel and aluminum exports.

The new sanction nearly doubles the previous record EU antitrust fine of 2.4 billion euros, which also targeted Google, in that case for the Silicon Valley titan’s shopping comparison service in 2017.

Denmark’s Vestager ordered Google to “put an effective end to this conduct within 90 days or face penalty payments” of up to five percent of its average daily turnover.

The Google decision came one week before European Commission chief Jean-Claude Juncker was due to travel to the United States for crucial talks with the American president on the tariffs dispute and other issues.

Google chief Sundar Pichai immediately said the firm would appeal.

“Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal,” he said in a blog post.

Google provides Android free to smartphone manufacturers and generates most of its revenue from selling advertisements that appear along with search results.

The EU says Android is used on around 80 percent of mobile devices, both in Europe and worldwide.

The Android case originated when a lobbying group called FairSearch — with members then including huge tech companies like Microsoft, Nokia and Oracle — complained that Google was unfairly tilting the field of competition.

Google’s parent company Alphabet ranked as the fifth largest information technology company in the world in 2017, with global revenue of $111 billion, according to Forbes magazine.

That figure represented a doubling in global revenue in only four years.

your ad here

Facebook to Remove ‘Fake News’ That Leads to Violence

All, News, Technology

Facebook says it will begin removing false information from its site that could lead to violence.

“There are certain forms of misinformation that have contributed to physical harm” in certain countries, the U.S. social media giant said in a statement Wednesday announcing the policy.

The company says it will work with local organizations to identify such information, including written posts and doctored photos.

Facebook has been accused for allowing users to spread hate speech and false information that has led to recent violence in Sri Lanka, Myanmar and India. Sri Lanka imposed a state of emergency in March after false news posted on Facebook led to deadly attacks on the country’s minority Muslim population by Buddhist mobs.

The California-based company was thrust into Russia’s meddling in the 2016 presidential campaign through the spread of misinformation among voters. It was revealed last September that Russians, using fake names, used social media to try to influence voters ahead of the election.

Facebook founder and chief operating officer Mark Zuckerberg sparked criticism Wednesday when he tried to explain the difference between misinformation and offensive speech. 

In an interview published by the technology news site Recode, Zuckerberg said he would not ban people who deny the Holocaust, the mass genocide of 6 million European Jews carried out by Nazi Germany.

your ad here

Report: Asia-Pacific Factories Lead in Using Digital Technology

All, News, Technology

She may not be the warmest waitress, but she serves a nice, hot cup of “Joe” at a café on the outskirts of Ho Chi Minh City.

Though this robotic barista is still getting help from her human counterpart, she is a signal that Asia is ahead of the curve in embracing new technologies ahead of the Americas, Europe, the Middle East, and Africa.

A recent report from PwC Global, a professional services firm, studied 1,155 manufacturing businesses based on how much they were embracing and incorporating innovations in technology, from drones to 3-D printing.

Across the board, companies in the Asia-Pacific region scored higher than their counterparts elsewhere in the world.

In Thailand, for instance, manufacturing companies have widely adopted new technologies to transform their operations.

“Many are using robots to assemble products at their factories to rely less on human labor, reduce costs, and boost overall efficiency,” said Vilaiporn Taweelappontong, consulting lead partner at PwC Thailand.

​ASEAN catches up

The report graded firms based on questions about the kinds of tools they were introducing into their workplaces. For example, manufacturers were asked if they made use of virtual reality; 44 percent in the Asia Pacific said they did compared with 34 percent in the United States and 19 percent in Europe, the Middle East, and Africa.

The regional group Association of Southeast Asian Nations (ASEAN) reports that small and medium enterprises are using new technology to catch up to bigger rivals.

“Digitization is enabling SMEs across ASEAN to participate in cross-border trade, allowing them to grow and scale their businesses while reducing costs,” said Bidhan Roy, a general manager at Cisco Systems Pte Ltd.

​Benefits of youth

Observers say the Asia-Pacific region benefits from its youth.

The relatively young population means people are amenable to different work environments and business operations, as well as having a keen interest in using new technology.

Another advantage? The region’s economies are also somewhat young, with many just opening up to global trade in the last two decades. In addition its underdeveloped infrastructure has the ability to adapt for future needs, like public transit or drone deliveries.

“Asian companies have the advantage of setting up robust digital operations from essentially a blank slate in terms of factory automation, workforce, and even organizational IT [information technology] networks as a whole,” the PwC report said.

Baby steps

But more is needed to make these companies successful.

Cisco Systems’ Roy noted that small and medium firms “are at varying stages of maturity in terms of digital adoption” and could use collaboration with governments and corporations.

PwC Thailand’s Vilaiporn agreed on the benefit of collaboration.

“Thailand 4.0 will only be successful if both the government and private sectors understand their roles in fostering investment and focusing on research and development, as well as equipping the workforce with necessary skill sets and capabilities,” he said.

The “4.0” refers to the latest industrial revolution, which goes beyond mechanization and automation. It entails business processes becoming more efficient through a comprehensive application of technology, from smart devices to machine learning.

your ad here

Elon Musk Apologizes for Comments About Cave Rescue Diver

All, News, Technology

Tesla and SpaceX CEO Elon Musk has apologized for calling a British diver involved in the Thailand cave rescue a pedophile, saying he spoke in anger but was wrong to do so.

There was no immediate public reaction from diver Vern Unsworth to Musk’s latest tweets.

Musk’s initial tweet calling Unsworth a “pedo” was a response to a TV interview Unsworth gave. In it, he said Musk and SpaceX engineers orchestrated a “PR stunt” by sending a small submarine to help divers rescue the 12 Thai soccer players and their coach from a flooded cave. Unsworth said the submarine, which wasn’t used, wouldn’t have worked anyway.

“My words were spoken in anger after Mr. Unsworth said several untruths …” Musk tweeted.

“Nonetheless, his actions against me do not justify my actions against him, and for that I apologize to Mr. Unsworth and to the companies I represent as leader. The fault is mine and mine alone.”

Musk’s Sunday tweet, later deleted, had sent investors away from Tesla stock, which fell nearly 3 percent Monday but recovered 4.1 percent Tuesday. Unsworth told CNN earlier this week that he was considering legal action. He did not respond to requests for comment from The Associated Press.

In his latest tweets, Musk said the mini-sub was “built as an act of kindness & according to specifications from the dive team leader.”

Musk has 22.3 million followers and his active social media presence has sometimes worked well for Tesla. The company has said in its filings with the Securities and Exchange Commission that it doesn’t need to advertise because it gets so much free media attention.

But straying away from defending his companies into personal insult brought Musk some unfavorable attention at a time when Tesla, worth more than $52 billion, is deep in debt and struggling for profitability. 

In northern Thailand on Wednesday, the 12 Thai soccer players and their coach answered questions from journalists, their first meeting with the media since their rescues last week. Doctors said all are healthy.

your ad here

Cute Robots Invade Smithsonian Museum

All, News, Technology

Known as the largest education, and research complex in the world, the Smithsonian Institution in Washington, DC is a collection of 19 museums that house more than 140 million unique items. It’s no wonder it’s been called “the nation’s attic.” But there’s a novel addition to the venerable complex — a smart new technology that interacts with visitors. VOA’s Carolyn Presutti introduces us to the Smithsonian’s newest resident.

your ad here

Cute Robots Invade the Smithsonian

All, News, Technology

Known as the largest education, and research complex in the world, the Smithsonian Institution in Washington, DC is a collection of 19 museums that house more than 140 million unique items. It’s no wonder it’s been called “the nation’s attic.” But there’s a novel addition to the venerable complex — a smart new technology that interacts with visitors. VOA’s Carolyn Presutti introduces us to the Smithsonian’s newest resident.

your ad here

Trade Pain: US Small Companies Hit by Import, Export Tariffs

All, Business, News

Time and effort have gone down the drain for Steve Gould, who is scrambling to find new customers for his gin, whiskey and other spirits since the United States has taken a tough stance on trade issues.

Before the European Union retaliated against new U.S. tariffs with taxes of its own, Gould expected revenue from the EU at his Golden Moon Distillery in Colorado to reach $250,000 or $350,000 this year. Now he’s concerned that European exports will total just $25,000. Golden Moon already saw an effect when then-candidate Donald Trump made trade an issue during the 2016 campaign. Gould lost one of his Mexican importers and an investor, as overseas demand for small-distiller spirits was growing.

“We’ve lost years of work and hundreds of thousands of dollars in building relationships with offshore markets,” says Gould, who’s hoping to find new customers in countries like Japan. 

President Donald Trump’s aggressive trade policies are taking a toll on small U.S. manufacturers. The president has imposed tariffs of 25 percent on steel and 10 percent on aluminum imports from most of the world, including Europe, Mexico and Canada, driving up costs for companies that rely on those metals. And he has slapped 25 percent taxes on $34 billion in Chinese imports in a separate trade dispute, targeting mostly machinery and industrial components so far. Trump’s tariffs have drawn retaliation from around the world. China is taxing American soybeans, among other things; the European Union has hit Harley-Davidson motorcycles and Kentucky bourbon; Canada has imposed tariffs on a range of products — from U.S. steel to dishwasher detergent.

More businesses could be feeling the pain as the trade disputes escalate — the administration on Tuesday threatened to impose 10 percent tariffs on thousands of Chinese products including fish, apples and burglar alarms. And China responded with a tariff threat of its own, although it didn’t say what U.S. exports would be targeted.

Small businesses are particularly vulnerable to tariffs because they lack the financial resources larger companies have to absorb higher costs. Large companies can move production overseas — as Harley-Davidson recently announced it would do to escape 25 percent retaliatory tariffs in Europe. But “if you’re a small firm, it’s much harder to do that; you don’t have an international network of production locations,” says Lee Branstetter, professor of economics and public policy at Carnegie Mellon University’s Heinz College.

Shifting manufacturing away from items that use components that are being taxed is also harder since small businesses tend to make fewer products, he says. And if tariffs make it too expensive to export to their current markets, small companies may not be able to afford the effort of finding new ones.

Small-business owners have been growing more confident over the past year as the economy has been strong, and they’ve been hiring at a steady if not robust pace. But those hurt by tariffs are can lose their optimism and appetite for growth within a few months.

“They have narrow profit margins and it’s a tax,” says Kent Jones, an economics professor at Babson College. “That lowers their profit margins and increases the possibility of layoffs and even bankruptcies.”

Yacht company

Bertram Yachts is one company finding it trickier to maneuver. The U.S. has put a 25 percent tariff on hundreds of boat parts imported from China, where most marine components are made. And European countries have imposed a 25 percent tariff on U.S.-made boats. Last year, Bertram exported about a third of its boats, with half going to Europe.

“We have been squeezed on both sides,” says Peter Truslow, CEO of the Tampa, Florida-based boat maker.

Truslow doesn’t know how the tariffs will affect the company’s sales and profits, but dealers he’s spoken to in Europe have already gotten cancellations on boats that run into the millions of dollars. Bertram plans to try to build up its strong U.S. business and seek more customers in countries that aren’t involved in trade disputes with the U.S., including Japan and Australia.

Still, the company’s growth and job creation stand to slow. “It’s probably going to be more about a reduction in hiring than it is about layoffs,” Truslow says.

The ripples are being felt across the industry, says Tom Dammrich, president of the National Marine Manufacturers Association trade group. He estimates there are about 1,000 manufacturers, almost all small or mid-size businesses, and says some parts can only be bought from China.

Metal fabrication

Matt Barton’s metal fabrication company, which makes custom replacement parts for farm equipment, outdoor signs and people who race hot rods, is paying its suppliers up to 20 percent more for metals than it did a year ago.

Prices had soared as much as 40 percent months ago amid expectations of U.S. tariffs on aluminum and steel. They have since steadied, but are expected to remain high for three to six months. Barton’s Pittsboro, Indiana-based company, The Hero Lab, is absorbing part of the increases. Some racing customers are still delaying orders.

“What they budgeted to cost $1,000 now is now $1,200 or $1,500,” Barton says. “They’re pushing their orders back four to six weeks, waiting for a few more paychecks to come in.”

Cheese maker

Jeff Schwager’s cheese company, Sartori, is selling products to Mexico at break-even prices because of that nation’s retaliatory 25 percent tariff. Twelve percent of the Plymouth, Wisconsin-based company’s revenue comes from exports, which is the fastest-growing segment of the business.

Sartori and its Mexican importer are each absorbing half the costs of the tariff. Schwager, the CEO, doesn’t see leaving the Mexican market as an option.

“If you lose space on the grocery store shelf, or you’re taken out of recipes in restaurants, that takes years to get back,” he says. He hopes the trade dispute can be resolved and tariffs rolled back.

Flatware maker

But some small manufacturers believe they can benefit from a trade dispute. Greg Owens, president of flatware maker Sherrill Manufacturing, says if his competitors in China are hit by U.S. tariffs, he could see revenue increase.

“They would have to raise the retail price, which would allow us to raise our prices,” says Owens, whose company is located in Sherrill, New York. In turn, Owens says, that would allow “long overdue” raises for workers and upgrades to capital equipment.

your ad here

Solar Power Seen as Tool Against Extremism in Sahel

All, Business, News

Grinding poverty and climate change are pushing communities in West

Africa’s Sahel region into the arms of extremist groups like Boko Haram, but providing people with clean energy could help slow that trend, said a top international official.

Rachel Kyte, CEO of Sustainable Energy for All, set up by the United Nations, learned on a trip to Niger this month how women and girls are being recruited by Islamist militants who offer them work, food and other essentials.

Kyte, who serves as the U.N. secretary-general’s special representative on energy access, said Boko Haram “is moving into the provision of basic social services.”

At the same time, in impoverished Niger, recurring and more intense drought “is absolutely punishing,” she said. 

The Islamist group is based in northeast Nigeria but active in other West African states.

Kyte said villagers need better ways to grow crops to feed their families and boost incomes to make them less susceptible to the extremists targeting them.

U.N. Deputy Secretary-General Amina J. Mohammed, who visited Niger with Kyte, last week spelled out the links between climate change stresses and regional insecurity in remarks to the U.N. Security Council.

In rural Niger, where only about 1 percent of people have access to electric power, supplying cheap and green energy — mainly from the sun — could make a difference, Kyte said.

Irrigation, cold storage

For example, solar pumps could drive simple, efficient irrigation systems, and installing small-scale local grids could power cold storage, enabling villagers to process their crops and earn more money, she noted.

“It just became very, very clear that without energy, there’s no way to improve incomes — without energy, it’s going to be difficult to bring productivity into the rural economy,” Kyte said in an interview from New York after the visit,

organized by the United Nations and the African Union.

In addition, equipping hospitals and clinics with solar systems in both cities and rural areas could reduce patient infections and increase the number of operations for common problems like fistula by supplying reliable power, Kyte said.

Solar energy could be a way to “beat back and build the resilience of a community to climate change, but also beat back violent extremism,” while “lifting up women and girls whose situation there is just dire,” she added.

Kyte urged government donors and international development banks to think about how access to clean, modern energy enables people to get sufficient food and medical treatment, and earn a decent living.

In a place like Niger, having electricity can be a decisive factor in whether people leave their homes and head north to Europe seeking a better life, she added.

It can also reduce the financial need for poor families to marry their daughters off early.

“This is about using aid money and development finance … to start building a different value proposition for these people that is something that will allow them to stay where they come from, and would allow girls to be part of that economic future,” she said.

your ad here

Universal Music Group to Open Nigeria Division

All, Business, News

Vivendi’s Universal Music Group (UMG) will launch a new division in Nigeria as part of efforts by the world’s largest music label to expand into Africa’s most populous nation and the wider region.

The music entertainment group said on Tuesday its new strategic division, Universal Music Nigeria, will operate from Nigeria’s commercial capital Lagos.

Nigerian music, much like its Nollywood film industry, is popular across much of Africa. Nigerian music artists have popularized the Afrobeat musical genre and gone on to sign record deals, sell out concerts and work with international artists to increase the global reach of African music.

Music revenue in Nigeria – mostly derived from sales of mobile phone ringtones – grew 9 percent in 2016, year-on-year, to reach $39 million and is expected to rise to $73 million by 2021, auditing firm Pricewaterhouse Coopers (PwC) said last year.

Sipho Dlamini, Managing Director of Universal Music South Africa and sub-Saharan Africa said that the Nigeria division will focus on developing artists and musicians from West Africa countries, particularly Nigeria, Ghana and Gambia.

“Our Nigeria team will support, nurture, and help develop artists, while creating opportunities for new talent from the region to reach the widest possible audience,” said Dlamini.

UMG said the new division will work alongside the label’s existing operations in Ivory Coast and Morocco.

Universal Music Nigeria also plans to open a recording studio in Lagos, which would be the label’s second fully purposed studio in Africa alongside another in Johannesburg, South Africa.

Nigeria’s music industry faces an array of challenges ranging from the lack of proper legal structures, to piracy and difficulties in distributing and monetizing content.

The country’s arts, entertainment and recreation sector contributed 0.29 percent to real GDP in the first quarter of this year, the statistics office said.

your ad here