Trade Pact Clause Seen Deterring China Deal with Canada, Mexico

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China's hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with "non-market" countries, trade experts said on Tuesday. The provision specifies that if one of the current North American Free Trade Agreement partners enters a free trade deal with a "non-market" country such as China, the others can quit in six months and form their own bilateral trade pact. The clause, which has stirred controversy in Canada, fits in with U.S. President Donald Trump's efforts to isolate China economically and prevent Chinese companies from using Canada or Mexico as a "back door" to ship products tariff-free to the United States. The United States and China are locked…


Mexican, Canadian Steel Lobbies Urge Fix to US Tariff Dispute

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Mexico and Canada on Tuesday urged their governments to resolve a tariff dispute with the United States before signing a new trilateral trade deal that was unveiled this week. In late May, the Trump administration announced tariffs of 25 percent on steel imports and 10 percent on aluminum imports, prompting quick retaliation from top trading partners including Canada and Mexico. Late on Sunday, the United States and Canada reached a deal to overhaul the North American Free Trade Agreement (NAFTA), complementing an accord the Trump administration brokered with Mexico, the third member of NAFTA, in late August. Mexican steel producers association Canacero welcomed the new trade pact, called the United States-Mexico-Canada Agreement (USMCA), but said it viewed "with concern" the ongoing steel dispute and the "serious situation" it created for…


Disaster Undoes Hard-won Progress for Indonesian Port City

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Palu, the Indonesian city devastated by an earthquake, tsunamis and mudslides, has strived to transform itself into a major trading hub, but the city's buildings and other infrastructure were no match for the triple whammy that has left more than 1,200 people dead.  The disasters that struck late Friday left the city's port in ruins, its lone gantry crane atilt in the water. Its airport terminal was a sea of shattered glass and broken ceiling panels. A seven-story, 4-year-old hotel lay flat on its side. Its biggest bridge disintegrated, its picturesque yellow arches mangled in the mud.  Ringed by coconut, coffee and cocoa farms, over the past two decades Palu has acquired modern shopping malls, hotels and other amenities to suit its ambitions. Poverty has fallen from nearly a third…


Trump to Meet With Google CEO, Other Tech Heads in October

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U.S. President Donald Trump plans to meet with Google CEO Sundar Pichai and other tech executives this month at a social media summit. White House economic adviser Larry Kudlow said Tuesday that the administration hoped Facebook and Twitter would send representatives to the meeting. Kudlow added the event would most likely happen in mid-October, though no date has been set. Prominent conservatives, including the president, have accused Facebook, Google and Twitter of silencing right-leaning voices on their platforms, a suspected practice called "shadow banning." Kudlow had a meeting with Pichai last Friday, which he described as "great." Pichai drew flack from senators last month after failing to send an executive to a hearing, and he has agreed appear at another. ...


Tesla Worried by China Even as Deliveries Surge

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Tesla announced record quarterly car production numbers on Tuesday but warned it was facing major problems with selling cars in China due to new tariffs that will force it to accelerate investment in its factory in Shanghai. The California-based electric carmaker, emerging from several months of turmoil around its Chief Executive Elon Musk, confirmed numbers leaked to an industry news site on Monday that showed it produced roughly 80,000 cars in the third quarter. Deliveries reached a record 83,500, above Wall Street estimates of 80,000 and including almost 56,000 of the Model 3 sedan whose ramp-up is widely seen as crucial to the company's drive to become profitable. That overshadowed concerns expressed by the company over a 40 percent tariff being charged by China for the import of its cars,…


Google’s First Urban Development Raises Data Concerns

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Heated streets will melt ice and snow on contact. Sensors will monitor traffic and protect pedestrians. Driverless shuttles will carry people to their doors. A unit of Google's parent company Alphabet is proposing to turn a rundown part of Toronto's waterfront into what may be the most wired community in history — to "fundamentally refine what urban life can be."   Sidewalk Labs has partnered with a government agency known as Waterfront Toronto with plans to erect mid-rise apartments, offices, shops and a school on a 12-acre (4.9-hectare) site — a first step toward what it hopes will eventually be a 800-acre (325-hectare) development.   High-level interest is clear: Prime Minister Justin Trudeau and Alphabet's then-Executive Chairman Eric Schmidt appeared together to announce the plan in October.   But some Canadians are…


Iran’s Rial Unexpectedly Rallies After Weeks of Steep Falls

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Iran's currency unexpectedly rallied Tuesday after weeks of depreciation linked to renewed American sanctions, sending Iranians rushing to exchange shops to cash in. In the Iranian capital, money exchange shops offered 135,000 rials for one U.S. dollar at one point, drawing crowds of onlookers and those wanting to trade. Only the day before, the rial was selling at 170,000 to the dollar, with prices recently going as high as 190,000 to the dollar. The currency plunged after President Donald Trump moved to restore tough U.S. sanctions after withdrawing from Tehran's nuclear accord with world powers in May. U.S. sanctions targeting the country's vital oil industry are set to take effect in early November, which will likely ramp up pressure on the economy. Prices edged up to over 140,000 to the…


Giant Coal Plant to Close as Australia Faces Energy Shake-Up

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One of Australia’s biggest power companies says it will close a major coal-fired power station as it invests in renewable sources despite pressure from the government in Canberra to keep it open. "Run down, dangerous and expensive" is how an Australian newspaper described the Liddell power plant, adding that it was “the perfect symbol of the decline of the coal industry.” The facility was completed in 1973 with an expected lifespan of 25 years, but it continues to generate power in a country that relies on coal to generate more than 60 percent of its electricity. The Australian government wants the plant to stay open for a few more years because of fears of power cuts and concerns about the potentially fragile state of the nation’s energy sector. Two years…


EU Warns Facebook Not to Lose Control of Data Security

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The EU's top data privacy enforcer expressed worry Tuesday that Facebook had lost control of data security after a vast privacy breach that she said affected five million Europeans. "It is a question for the management, if they have things under control,"  EU Justice and Consumer Affairs Commissioner Vera Jourova told AFP in Luxembourg. "The magnitude of the company ... makes it very difficult to manage, but they have to do that because they are harvesting the data and they are making incredible money on using our privacy as the commodity," she added. Jourova spoke just days after Facebook admitted that up to 50 million user accounts around the world had been breached by hackers, in yet another scandal for the beleaguered social platform. "I will know more ... in…


How NAFTA 2.0 Will Shake Up Business as Usual

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American dairy farmers get more access to the Canadian market. U.S. drug companies can fend off generic competition for a few more years. Automakers are under pressure to build more cars where workers earn decent wages. The North American trade agreement hammered out late Sunday between the United States and Canada, following an earlier U.S.-Mexico deal, shakes up — but likely won't revolutionize — the way businesses operate within the three-country trade bloc. The new United States-Mexico-Canada Agreement replaces the 24-year-old North American Free Trade Agreement, which tore down trade barriers between the three countries. But NAFTA encouraged factories to move to Mexico to take advantage of low-wage labor in what President Donald Trump called a job-killing “disaster” for the United States. Sunday's agreement is meant to bring manufacturing back…


3D Map of Singapore Helps City Planner Prepare for Future

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Imagine seeing an incredibly detailed map of your home city in three dimensions, with every citizen carrying a cell phone showing up as a dot on that map. Well, you can't because there are security issues galore when it comes to tracking people online. But you should know it's possible, at least in Singapore, where city planners are considering how the technology may help improve life. VOA's Kevin Enochs reports. ...


GE, Seeking Path Forward as a Century-old Company, Ousts CEO

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General Electric ousted its CEO, took a $23 billion charge and said it would fall short of profit forecasts this year, further signs that the century-old industrial conglomerate is struggling to turn around its vastly shrunken business.   H. Lawrence Culp Jr. will take over immediately as chairman and CEO from John Flannery, who had been on the job for just over a year. Flannery began a restructuring of GE in August 2017, when he replaced Jeffrey Immelt, whose efforts to create a higher-tech version of GE proved unsuccessful.   However, in Flannery's short time, GE's value has dipped below $100 billion and shares are down more than 35 percent this year, following a 45 percent decline in 2017.   The company was booted from the Dow Jones Industrial Average…


Trump Hits Brazil, India Commerce After Clinching N. American Trade Deal

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Fresh from clinching an updated North American commerce pact, U.S. President Donald Trump on Monday criticized Indian and Brazilian trade tactics, describing the latter as being "maybe the toughest in the world" in terms of protectionism. Addressing reporters at a White House event to celebrate the agreement of an updated trilateral trade deal between the United States, Mexico and Canada, Trump added India and Brazil to a growing list of countries that, he argues, treat the world's top economy unfairly in terms of commerce. "India charges us tremendous tariffs. When we send Harley Davidson motorcycles, other things to India, they charge very, very high tariffs," Trump said, adding that he had brought up the issue with Indian Prime Minster Narendra Modi, who he said was "going to reduce them very…


Instagram Names Adam Mosseri as New CEO

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Adam Mosseri, a veteran 10-year Facebook executive, will become the new head of Instagram, outgoing co-founders Kevin Systrom and Mike Krieger announced Monday. "We are thrilled to hand over the reins to a product leader with a strong design background and a focus on craft and simplicity," Systrom and Krieger said in a press release.The pair announced their resignation last week without giving a clear explanation. Mosseri, 35, has been Instagram's head of product since May. He began as a designer at Facebook in 2008, and recently ran its News Feed. His appointment comes among fears that with the departure of Instagram's independent-minded founders, the app will become more like Facebook: Cluttered with features, and invasive of user's personal data. Instagram was founded in 2010 and bought by Facebook two…


Can Wireless Challenge Cable for Home Internet Service?

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Cellular companies such as Verizon are looking to challenge traditional cable companies with residential internet service that promises to be ultra-fast, affordable and wireless. Using an emerging wireless technology known as 5G, Verizon’s 5G Home service provides an alternative to cable for connecting laptops, phones, TVs and other devices over Wi-Fi. It launches in four U.S. cities on Monday. Verizon won’t be matching cable companies on packages that also come with TV channels and home phone service. But fewer people have been subscribing to such bundles anyway, as they embrace streaming services such as Netflix for video and cellphone services instead of landline. “That’s the trend that cable has been having problems with for several years, and a trend that phone companies can take advantage of,” Gartner analyst Bill Menzes…


New California Internet Neutrality Law Triggers US Lawsuit

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California Gov. Jerry Brown has approved the nation's strongest net neutrality law, prompting an immediate lawsuit by the Trump administration and opening the next phase in the battle over regulating the internet. Advocates of net neutrality hope California's law, which Brown signed Sunday to stop internet providers from favoring certain content or websites, will push Congress to enact national rules or encourage other states to create their own. However, the U.S. Department of Justice quickly moved to halt the law from taking effect, arguing that it creates burdensome, anti-consumer requirements that go against the federal government's approach to deregulating the internet. "Once again the California Legislature has enacted an extreme and illegal state law attempting to frustrate federal policy," U.S. Attorney General Jeff Sessions said in a statement. The Federal…


New US-Canada Trade Pact Reached

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After intense last-minute discussions ahead of a self-imposed midnight deadline, U.S. and Canadian officials announced late Sunday they reached a trade deal, allowing a modified three-way pact with Mexico to replace the nearly quarter-century old North American Free Trade Agreement.  The U.S.-Mexico-Canada Agreement (USMCA) – underpinning $1.2 trillion in annual trade -- is expected to be signed in 60 days by President Donald Trump and his Canadian and Mexican counterparts.  “We think this is a fantastic agreement for the United States,” a senior administration official told reporters on a hastily convened briefing call, adding that it is “a great win for the president.”  Trump had made criticism of the North American Free Trade Agreement (NAFTA) a centerpiece of his successful 2016 election campaign.  “The worst trade deal maybe ever signed…


Fearing Debt Trap, Pakistan Rethinks Chinese ‘Silk Road’ Projects

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After lengthy delays, an $8.2 billion revamp of a colonial-era rail line snaking from the Arabian Sea to the foothills of the Hindu Kush has become a test of Pakistan's ability to rethink signature Chinese "Silk Road" projects due to debt concerns. The rail megaproject linking the coastal metropolis of Karachi to the northwestern city of Peshawar is China's biggest Belt and Road Initiative (BRI) project in Pakistan, but Islamabad has balked at the cost and financing terms. Resistance has stiffened under the new government of populist Prime Minister Imran Khan, who has voiced alarm about rising debt levels and says the country must wean itself off foreign loans. "We are seeing how to develop a model so the government of Pakistan wouldn't have all the risk," Khusro Bakhtyar, minister…


Tesla, Musk Settle Fraud Suit for $40M

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Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years. Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticized Tesla’s board for being too beholden to Musk.  The deal was announced Saturday, just two days after SEC filed its case seeking to oust Musk as CEO. ‘Reckless tweet’ Musk, who has an estimated $20 billion fortune,…


Canada FM Postpones UN Speech as Trade Talks Intensify

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Canadian Foreign Affairs Minister Chrystia Freeland postponed her U.N. speech Saturday as free-trade talks between the U.S. and Canada intensified. Freeland had been scheduled to deliver Canada's address to the General Assembly in New York, but Canada exchanged the slot with another country. Freeland may or may not give the speech on Monday. A senior Canadian government official said they were making progress in the talks but that it wasn't certain that they would reach a deal soon. The official, who spoke on condition of anonymity, said Canada would sign only a good deal. Canada, the United States' No. 2 trading partner, was left out when the U.S. and Mexico reached an agreement last month to revamp the North American Free Trade Agreement. The U.S. and Canada are under pressure to…


A Pakistani American Startup Fighting Media Censorship

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According to the latest report by the Committee to Protect Journalists in Pakistan, fatal violence against journalists has declined, but fear and self-censorship have grown. In this era, five Pakistani American students at Harvard University have created a startup that challenges censorship using the latest block-chain technology. Their mission is "making journalism truly free." Saqib Ul Islam visited Harvard's innovation lab to bring us the story of a new company called "Inkrypt." ...


US Consumers Spend More; Inflation Flattens

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U.S. consumer spending increased steadily in August, supporting expectations of solid economic growth in the third quarter, while a measure of underlying inflation remained at the Federal Reserve's 2 percent target for a fourth straight month. Economists said Friday's report from the Commerce Department should allay fears of the economy overheating and likely keeps the U.S. central bank on a gradual path of interest rate increases. The Fed raised rates Wednesday for the third time this year and removed the reference to monetary policy remaining "accommodative." "Growth is solid and inflation pressures modest," said Chris Rupkey, chief economist at MUFG in New York. "This is exactly the environment the Fed needs to move interest rates up at a gradual pace as further rate hikes start to look like tightening." Consumer…


Google CEO to Testify Before US House on Bias Accusations

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Google Chief Executive Sundar Pichai has agreed to testify before the U.S. House Judiciary Committee later this year over Republican concerns that the company is biased against conservatives, a senior Republican said Friday. Republicans want to question Google, the search engine of Alphabet Inc, about whether its search algorithms are influenced by human bias. They also want to probe it on issues such as privacy, classification of news and opinion, and dealing with countries with human rights violations. Pichai met with senior Republicans on Friday to discuss their concerns, House Majority Leader Kevin McCarthy said. McCarthy told reporters after the meeting that it was "very productive" and "frank." "I think we've really shown that there is bias, which is human nature, but you have to have transparency and fairness," McCarthy…


Ousting Musk at Tesla Viewed as Difficult, Possibly Damaging

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Tesla without Elon Musk at the wheel? To many of the electric car maker's customers and investors, that would be unthinkable. But that's what government securities regulators now want to see. The Securities and Exchange Commission has asked a federal court to oust Musk as Tesla's chairman and chief executive officer, alleging he committed securities fraud with false statements about plans to take the company private. The agency says in a complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding had been secured for Tesla Inc. to go private at $420 per share, a substantial premium over the stock price at the time. The SEC is asking the U.S. District Court in Manhattan to bar Musk from serving as an officer or director…


Facebook Tightens Security After Announcing Breach

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The security breach Facebook announced Friday that affected 50 million users was a setback for the social media giant, which has been working for months to regain customers' trust over how it handles their data. In addition to the 50 million users whose log-on information could have been accessed by hackers, the company required as a precaution another 40 million to log on to be able to get on their accounts. Facebook said it reported the breach of the company's code, which the firm said it fixed, to law enforcement. The social media company was not sure Friday whether any personal information had been gathered or misused, but it scrambled to address the issue, which was discovered earlier in the week. Facebook users may find they have to relink their…


Italian Stocks Fall on Populist Government’s Spending Plans

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Italy’s stock market fell sharply Friday after the new populist, euroskeptic government announced a sharp public spending increase that will push the budget deficit to 2.4 percent of gross domestic product next year, risking a collision with the European Union. The benchmark FTSE MIB dropped 2.2 percent early Friday, hours after the government announced its first financial targets since taking office three months ago.  Italy’s government partners, the 5-Star movement and the League, pressed for money to fulfill campaign pledges, namely a basic citizen’s income for job seekers and a flat tax. Finance Minister Giovanni Tria, who is politically unaligned, had wanted to keep the budget deficit capped at no more than 2 percent. The leader of the 5-Star Movement, Luigi Di Maio, called the document approved early Friday by…


Puerto Rico Struggling, Still Open for Tourists, Governor Says

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Puerto Rico Gov. Ricardo Rossello flew to New York this week on a mission: convince potential tourists that the hurricane-ravaged island was ready for their return. But Puerto Rico's recovery from last year's Hurricane Maria has been a "mixed bag," Rossello told Reuters on Thursday, acknowledging that the bankrupt U.S. territory, while improving, was far from out of the woods. Puerto Rico has received only a small fraction of the federal funding it needs to get back on its feet, Rossello said in a 75-minute interview, and getting access to the rest could take more than a decade. $4 billion or less His administration estimates that fixing Puerto Rico fully will require $139 billion, but the federal government has earmarked only about $60 billion to $65 billion for the recovery, he said. Of that, only about $3 billion to $4 billion has actually…