Author: Busman

Treasury Secretary Steven Mnuchin informed Congress on Monday that he will stop making payments into two government retirement funds now that the debt limit has gone back into effect. In a letter to congressional leaders, Mnuchin said that he would stop making investments into a civil service retirement fund and a postal service retirement fund. These are among the actions that Mnuchin is allowed to take to keep from exceeding the debt limit, which went back into effect on Saturday at a level of $22 trillion. The debt limit had been suspended for a year under a 2018 budget deal. The Congressional Budget Office estimates that Mnuchin likely has enough maneuvering room to avoid a catastrophic default on the national debt until around September. The U.S. government has never missed…

Venezuelan opposition leader Juan Guaido named Harvard University economist Ricardo Hausmann as the country's representative to the Inter-American Development Bank (IDB), Guaido's envoy to the United States, Carlos Vecchio, wrote in a tweet on Monday. Guaido, who calls socialist President Nicolas Maduro a usurper after Maduro won re-election in a May 2018 vote widely seen as fraudulent, invoked the constitution to assume an interim presidency in January. He has been recognized as the OPEC nation's legitimate leader by most Western countries, including the United States. Hausmann, an economics professor at Harvard's Kennedy School of Government, served as Venezuela's planning minister and as a member of the board of the country's central bank in the 1990s. He has also served as the country's governor for the IDB and World Bank, and…

A U.S. judge on Monday acquitted a former top foreign exchange trader at Barclays Plc accused of illegally trading ahead of an $8 billion transaction for Hewlett-Packard, without letting the case go to a jury. The acquittal of Robert Bogucki, who led Barclays' foreign exchange trading desk in New York, by U.S. District Judge Charles Breyer in San Francisco sets back federal efforts to hold senior bankers and traders criminally responsible for suspected misconduct. It also marks a rare instance of such a case being tossed out immediately after the prosecution presented its case at trial, because the evidence was too weak to support a conviction. Bogucki's trial began on Feb. 21. A spokesman for U.S. Attorney David Anderson in San Francisco said that office was reviewing Breyer's decision. "We…

The S&P 500 and the Dow Jones industrial average snapped a three-day run of losses on Friday as optimism about the prospects for a U.S.-China trade agreement countered downbeat U.S. and China manufacturing data.  The Nasdaq, meanwhile, marked its longest streak of weekly gains since late 1999.  Following President Donald Trump's announcement last weekend of a delay in higher tariffs on Chinese imports, Bloomberg reported late Thursday that a summit between Trump and his Chinese counterpart, Xi Jinping, to sign a final trade deal could happen as soon as mid-March. "The optimism over trade resolution is outweighing the weakening economic data," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, N.C.  A private survey showed China's factory activity contracted for a third straight month in February, though at a slower pace, indicating a marginal improvement in domestic demand as…

U.S. consumer spending tumbled 0.5 percent in December, the biggest decline in nine years, as the holiday shopping season ended in disappointment. Meanwhile, incomes rose sharply in December but edged down in January. The fall in consumer spending followed sizable gains of 0.7 percent in October and 0.6 percent in November, the Commerce Department reported Friday. December's result means that spending for the quarter decelerated significantly, a primary factor in the slowing of overall economy in the final three months of the year. Gross domestic product recorded a growth rate of 2.6 percent after a 3.4 percent gain in the third quarter. Incomes jumped 1 percent in December, though slipped 0.1 percent in January. The government did not release spending data for January because of delays stemming from the government…

Oregon Gov. Kate Brown signed the nation's first statewide mandatory rent control measure on Thursday, giving a victory to housing advocates who say spiraling rent costs in the economically booming state have fueled widespread homelessness and housing insecurity.      Brown, a Democrat, said the legislation will provide ``some immediate relief to Oregonians struggling to keep up with rising rents and a tight rental market.''    Landlords are now limited to increases once per year that cannot exceed 7 percent plus the change in the consumer price index, which is used to calculate inflation.    The law prohibits them from serving no-cause evictions after a tenant's first year of occupancy, a provision designed to protect those who are living paycheck to paycheck and who affordable housing advocates say are often most…

Tesla says it is now taking orders for the long-awaited $35,000 Model 3, will close stores and move to online orders. Tesla says it is now taking orders for the long-awaited $35,000 Model 3, a car for the masses that is essential for the company to survive. The company says to reach the lower price, it's shifting all sales worldwide from stores to online only. Some high-traffic stores, however, will remain open. The company will offer the standard base model, which can go 220 miles (350 kilometers) per charge. It also will offer a $37,000 version with a premium interior that accelerates faster and can go 240 miles (385 kilometers) per charge. Tesla started taking orders for the Model 3 in March of 2016, but until now hasn't been able…

Gap Inc. said Thursday that it would separate its Old Navy brand into a publicly traded company in order to focus on its struggling namesake apparel business, sending its shares up 18 percent.  Old Navy has had a better success than the Gap brand in recent years as a wide range of budget apparel has made it more appealing to a broader base of consumers.  "It's clear that Old Navy's business model and customers have increasingly diverged from our specialty brands over time," Gap's Chairman Robert Fisher said.  The company also said it planned to close 230 Gap specialty stores over the next two years.  Gap's overall same-store sales fell 1 percent in the fourth quarter ended Feb. 2, compared with analysts' average estimate of a 0.3 percent rise, according to IBES data from Refinitiv.  Gap, Athleta, Banana Republic and…

Online crafts retailer Etsy Inc will go green by offsetting planet-warming carbon emissions from its shipping activities, the U.S. company said Wednesday, joining a host of companies making public moves to battle climate change. Etsy will buy clean energy certificates supporting tree conservation in the United States, wind and solar power in India and clean automotive technology, it said. The online marketplace for buying and selling handmade and vintage goods said its initiative is the first time a global e-commerce company has made such a move. "Fast, free shipping ultimately comes at a cost to our planet," wrote Josh Silverman, chief executive officer of the New York-based company in a blog on the company's website. The certificates are a way for companies to offset the amount of carbon dioxide they…

As Walmart moves to phase out its familiar blue-vested "greeters" at 1,000 stores nationwide, disabled workers who fill many of those jobs say they're being ill-treated by a chain that styles itself as community-minded and inclusive.    Walmart told greeters around the country last week that their positions would be eliminated on April 26 in favor of an expanded, more physically demanding "customer host" role. To qualify, they will need to be able to lift 25-pound (11-kilogram) packages, climb ladders and stand for long periods.    That came as a heavy blow to greeters with cerebral palsy, spina bifida and other physical disabilities. For them, a job at Walmart has provided needed income, served as a source of pride and offered a connection to the community.   Customer backlash   Now Walmart,…

Women around the world are granted only three-quarters of the legal rights enjoyed by men, often preventing them from getting jobs or opening businesses, the World Bank said in study published Wednesday.    "If women have equal opportunities to reach their full potential, the world would not only be fairer, it would be more prosperous as well," Kristalina Georgieva, the bank's interim president, said in a statement.    While reforms in many countries are a step in the right direction, "2.7 billion women are still legally barred from having the same choice of jobs as men," the statement said.    The study included an index measuring gender disparities that was derived from data collected over a decade from 187 countries and using eight indicators to evaluate the balance of rights afforded to men…

The Federal Reserve will stop shrinking its $4 trillion balance sheet later this year, Fed Chairman Jerome Powell said on Wednesday, ending a process that investors say works at cross-purposes with the Fed's current pause on interest rate hikes.  "We've worked out, I think, the framework of a plan that we hope to be able to announce soon that will light the way all the way to the end of balance sheet normalization," Powell told members of the House Financial Services Committee in what were his most detailed remarks to date on the subject.  "We're going to be in a position ... to stop runoff later this year," he said, adding that doing so would leave the balance sheet at about 16 percent or 17 percent of GDP, up from about 6 percent before the financial crisis about a decade ago.  The…

Boeing on Wednesday unveiled an unmanned, fighter-like jet developed in Australia and designed to fly alongside crewed aircraft in combat for a fraction of the cost. The U.S. manufacturer hopes to sell the multi-role aircraft, which is 38 feet long (11.6 meters) and has a 2,000 nautical mile (3,704-kilometer) range, to customers around the world, modifying it as requested. It is Australia's first domestically developed combat aircraft in decades and Boeing's biggest investment in unmanned systems outside the United States, although the company declined to specify the dollar amount. Defense contractors are investing increasingly in autonomous technology as militaries around the world look for a cheaper and safer way to maximize their resources. Boeing rivals like Lockheed Martin and Kratos Defense and Security Solutions are also investing in such aircraft.…

Brazil's Senate confirmed Roberto Campos Neto as central bank governor on Tuesday, after he stressed that controlling inflation and reining in public spending were critical to supporting economic growth. Much work must still be done to secure Brazil's economic recovery, Campos Neto told the Senate's economic committee at his confirmation hearing. He indicated there would be little change, if any, to monetary policy, echoing the central bank's current stance that decisions are based on "caution, serenity and perseverance." The Senate approved Campos Neto by a vote of 55 in favor to six opposed, following unanimous confirmation by the economic committee. He will officially assume the role with the signature of President Jair Bolsonaro, likely later this week. Campos Neto is a former senior executive at Banco Santander Brasil SA. A…

The Federal Reserve is in "no rush to make a judgment" about further changes to interest rates, Fed Chairman Jerome Powell told U.S. lawmakers on Tuesday as he spelled out the central bank's approach to an economy that is likely slowing. In two hours of testimony to the Senate Banking Committee, Powell elaborated on the "conflicting signals" the Fed has tried to decipher in recent weeks, including disappointing data on retail sales and other aspects of the economy that contrast with steady hiring, wage growth, and ongoing low unemployment. "The baseline outlook is a good one," Powell said, but slower growth overseas is a drag on the U.S. economy that "we may feel more of" in the coming months. "We have the makings of a good outlook and our (rate-setting)…

Turkish President Recep Tayyip Erdogan has declared war on food inflation. With food prices rising nearly 30 percent and looming critical local elections next month Erdogan is turning to unconventional methods to rein in costs. Subsidized food is being sold at distribution centers in Istanbul and the capital, Ankara, along with several provincial cities. The centers are part of Erdogan’s war on inflation. In the pouring rain in Istanbul’s Kadikoy district people patiently line up to take advantage of reduced prices. With staples like onions and potatoes tripling in price, the distribution centers appear welcome by people seeking relief from soaring price tags. “The food prices are high. Sometimes you go to the street market and go back home without buying anything,” said Sule who works at a nearby university.…

Kenya's ride-hailing company ‘Little Cab’ is expanding to Tanzania and Ghana. The company will start offering rides in Tanzania's commercial capital Dar es Salaam next week and plans to launch in Accra by May. VOA’s Mariama Diallo reports. ...

Turkish President Recep Tayyip Erdogan has declared war on inflation after food prices in the country soared by 30 percent after last year’s collapse of the Turkish currency. In a bid aimed at securing his political future, Erdogan is taking radical measures to curb price increases after accusing food sellers of excessively hiking food prices. Dorian Jones reports from Istanbul. ...

The old center of Benghazi lies in ruins but one shopping street has sprung up in the war-ravaged Libyan city, with sportswear and fashion stores that would not be out of place in Dubai or Istanbul. Foreign brands are tapping into residents' desire to enjoy shopping again after a three-year city war when their minds were concentrated on getting fuel or moving to safer areas. Imports were limited as fighting between Khalifa Haftar's Libyan National Army and his mostly Islamist opponents forced Benghazi's port to close. But with the end of conflict in 2017, shops have returned and Venice Street, with its trendy new stores and elegant cafes, has brought back a level of wealthy consumerism. That contrasts with much of the city where some buildings still show bullet holes…

Reserve Chairman Jerome Powell worked hard to strengthen ties with Congress during his first year as head of the U.S. central bank, doubling the pace of meetings with lawmakers over his predecessors and courting Democrats and Republicans alike. The value of that effort will get a very public test this week when Powell heads to Capitol Hill for hearings in a political and economic environment that has shifted dramatically since he last appeared before Congress in July 2018. Democrats won control of the U.S. House of Representatives in the November elections, and some new lawmakers are pushing programs like a "Green New Deal" that could have long-term implications for the Fed; two members of the Senate Banking Committee and at least one member of the House Financial Services Committee may…

Afghanistan has started shipping goods to India for the first time through a newly developed Iranian seaport in a bid to improve exports and reduce reliance on routes through its uneasy neighbor, Pakistan. Afghan President Ashraf Ghani traveled Sunday to the western border city of Zaranj to see off the inaugural convoy of 23 trucks loaded with 570 tons of cargo to the Chabahar port in neighboring Iran. The consignment is destined for the Indian port city of Mumbai.  For decades, landlocked Afghanistan has mostly relied on Pakistani land and seaports for international trade. But mutual tensions have in recent years significantly reduced Afghan trade and transit activities through Pakistan.  Addressing the nationally televised ceremony, Ghani credited a “healthy cooperation between India, Iran and Afghanistan” for achieving the milestone. He…

The United States and China are discussing a meeting between their two leaders soon to finalize a trade agreement. To move things forward, the latest round of trade talks between senior officials is being extended into the weekend. As Nike Ching reports, experts say world's two largest economies must bridge wide gaps as they seek common ground before new U.S. tariffs are set to start. ...

Stocks rose in major markets around the world Friday on bets of progress in trade talks between China and the United States, while crude futures hit their highest level in more than three months supported by ongoing supply cuts.  U.S. President Donald Trump said Friday that there was a very good chance the United States would strike a deal with China to end their trade war and that he was inclined to extend his March 1 deadline to reach an agreement.  U.S. and Chinese negotiators meeting in Washington made progress and will extend this week's round of negotiations by two days, he said.   Main stock indexes on Wall Street rose as the optimistic trade talk more than offset signs of slower growth in both U.S. earnings and the economy, with the S&P 500 posting a fourth consecutive week of gains.  The Dow…

The Trump administration is denying and delaying more skilled-worker visa petitions than at any time since at least 2015, in keeping with its promise to increase scrutiny of foreign workers, according to data the government released on Friday. U.S. officials say they have made reforms that prioritize American workers, cut down on fraud and streamline the immigration process. But lawyers who help employers apply for the visas say the agency is rejecting legitimate applications and tying up requests in bureaucratic red tape. The data provided by U.S. Citizenship and Immigration Services (USCIS), the agency that adjudicates the visas, extends to the 2015 fiscal year, encompassing the last two years of the Obama administration and the first two years of the Trump administration. New policies for H-1B visas Republican President Donald…

U.S. President Donald Trump and Chinese Vice Premier Liu He expressed optimism Friday that the two countries would reach a trade agreement and defuse a dispute between the world's two largest economies, as both sides agreed to continue their negotiations for two more days. "I would say that it's more likely that a deal will happen," Trump said to reporters at the White House. Speaking through an interpreter, Liu, China's top trade negotiator, said, "We believe that it is very likely that it will happen. And we hope that ultimately we will have a deal." Liu has been granted authority to negotiate directly with the U.S. by Chinese President Xi Jinping. "The fact that they're willing to stay for quite a bit longer period, doubling up the time, that means something,"…

Analysts say a $15.4 billion write-down for food giant Kraft Heinz reflects changing consumer taste for fresh food products over processed ones. The company said Thursday the decrease in value of some of its major brands resulted in a net loss of $12.6 billion. Kraft Heinz also announced Thursday the Securities and Exchange Commission had subpoenaed it late last year because of its procurement procedures. At the end of the business day Thursday, the company saw its stock drop about 20 percent. “We expect to take a step backwards in 2019,” Chief Financial Officer David Knopf said in a post earnings conference call. He promised “consistent profit growth” for 2020. Kraft Heinz is the home of such iconic brands as Velveeta Cheese, Heinz ketchup brands, Oscar Mayer hotdogs and Cheez…

From homeowners facing higher flood insurance premiums to investors putting money into coal-fired power plants, financial risks related to climate change are growing, analysts say.  But working out how a switch to lower-carbon train travel could affect an airline or what an insurance firm should do to weather more flood claims is neither clear nor simple, they say.  Help may be at hand, however, from guides published Friday to assess financial risks from the physical threats of climate change, as well as the risks and opportunities of a global transition away from fossil fuels.  "What is the exposure financial institutions have to natural catastrophes? I don't think that question traditionally has been asked," said Greg Lowe, global head of resilience and sustainability for Aon, a London-based insurance and risk firm.  Traditional ideas may fall short For disasters, "there's always been an…

A Nike Inc sneaker worn by a college basketball superstar split in half less than a minute into a highly anticipated game between Duke University and North Carolina, prompting an outcry on social media as the company sought to figure out what caused the problem. Zion Williamson, a 6-foot-7-inch freshman forward for the Duke Blue Devils who is anticipated to be the top 2019 NBA Draft pick, suffered a mild sprain to his right knee because of the incident Wednesday night, according to his coach Mike Krzyzewski. The official Duke Basketball Twitter handle (@DukeMBB) tweeted Thursday evening that Zion was "progressing as expected, and his status is day-to-day." A closeup video replay showed Williamson slipping and crumpling to the ground, clutching his knee in pain. His left shoe is seen…