Author: Busman

This article originated in VOA’s Persian Service. WASHINGTON —The World Bank says Iran is likely to experience an even worse recession this year than previously thought, as U.S. sanctions largely choke off oil exports that have been Tehran’s main revenue source. In its latest Global Economic Prospects report published Wednesday, the Washington-based institution that provides loans to countries said it expects Iran’s Gross Domestic Product to shrink by 4.5% this year, a steeper contraction than its earlier estimate of negative 3.6% GDP growth for 2019. “The oil industry is an important part of Iran’s economy, and its oil production is clearly going to drop because of the new U.S. sanctions,” said Patrick Clawson, research director for the Washington Institute for Near East Policy, in a VOA Persian interview on Wednesday.…

Vietnam is likely to make concessions to the United States so it can escape a U.S. watch list of possible currency manipulators and head off a hit to its fast-growing economy led by exchange rate-sensitive exports, analysts who follow the country say. The Southeast Asian country, they forecast, will probably talk to the U.S. side over the next six to nine months, consider approving fewer changes in its foreign exchange rate and accept more high-value American imports. Those measures would help Vietnam get off the U.S. Treasury’s list of nine countries that Washington will examine further for whether those states are currency “manipulators.” Manipulation implies deliberate state-driven currency rate changes that favor a country’s own exporters and make trade more costly for importers. The U.S. list released in late May…

The U.S. Commerce Department on Tuesday recommended urgent steps to boost domestic production of rare earths and other critical minerals, warning that a halt in Chinese or Russian exports could cause "significant shocks" in global supply chains. The report includes 61 specific recommendations — including low-interest loans and "Buy American" requirements for defense companies — to boost domestic production of minerals essential for the manufacture of mobile phones and a host of other consumer goods, as well as fighter jets. It also called for closer cooperation with allies such as Japan, Australia and the European Union, and directed reviews of government permitting processes to speed up domestic mining. U.S. reliance on foreign minerals has worried U.S. officials since 2010, when China embargoed exports of so-called rare earth minerals to Japan…

The U.S. Internal Revenue Service is auditing Uber Technologies's taxes for 2013 and 2014 and the ride-hailing company expects unrecognized tax benefits to be reduced within the next year by at least $141 million. In its full quarterly report on Tuesday, Uber said various state and foreign tax authorities were also looking into its taxes and that it was currently unable to put a definite timeline or estimate on the overall adjustments that might result. The $141 million amount related only to its transfer pricing positions, which refers to the common multinational practice of charging for services between wholly-owned businesses in different countries or jurisdictions to reduce the tax it pays. Earlier this year, the company had said in a regulatory filing that it expected unrecognized tax benefits related to…

Michael Bowman contributed to this report. Mexico warned Monday that President Donald Trump's threatened new tariff on its exports to the United States would hurt both countries' economies and cause even more Central American migrants to travel through Mexico to reach the United States. At the start of talks in Washington, Mexican officials said they could only go so far in meeting Trump's demand to block migrants' passage through Mexico to avert Trump's imposition of a 5% tariff next week. The officials specifically ruled out a "third safe country" agreement requiring U.S. asylum-seekers to first apply for refuge in Mexico. ​"There is a clear limit to what we can negotiate, and the limit is Mexican dignity," Mexico's ambassador to the United States, Martha Barcena, said. Barcena added that U.S. tariffs "could…

U.S. and Mexican officials warn that raising tariffs on Mexican goods to get Mexico to stem the influx of Central American migrants on the way to the U.S. border would hurt the economics of both countries. U.S. President Donald Trump has threatened to apply tariffs of 5% on all Mexican goods starting June 10, and increase the rate in coming months to up to 25% if Mexico does not substantially halt the migrants heading to the U.S. border. VOA's Zlatica Hoke has more. ...

The United States is again calling on European allies to be careful of what it says are security risks posed by Chinese telecommunication company Huawei, as countries build out their 5G networks. "We've been clear: our ask is that our allies and our partners and our friends don’t do anything that would endanger our shared security interests or restrict our ability to share sensitive information," said U.S. Secretary of State Mike Pompeo on Monday after meeting with Dutch Foreign Minister Stef Blok in The Hague. The top U.S. diplomat’s remarks come amid the Dutch intelligence agency’s investigation over alleged hidden backdoors in the software that could have given Huawei unauthorized access to users’ data. Huawei’s CEO Ren Zhengfei has maintained his company would not share confidential user information and Huawei denies it is…

Mexican President Andres Manuel Lopez Obrador reiterated on Sunday the need for oil independence as his government said it would tender six construction contracts in June for a planned oil refinery in the southern state of Tabasco. Tensions between Mexico and the United States have been running high in recent days after President Donald Trump threatened to impose punitive tariffs on Mexican goods unless Mexico halts a surge in illegal migration. "We, our children and grandchildren aspire to live in a free, independent, sovereign country and we do not want to be a colony of any foreign country," Lopez Obrador told a cheering crowd at an event to mark the start of the refinery's construction. "The most important thing at this moment in time is producing petroleum," he added, saying…

Joyce Huang contributed to this report. China says Washington bears the “sole and entire responsibility” for the breakdown in trade talks earlier this month and that Beijing won't back down on matters of principle. In a defiant rebuttal of who is to blame, China released a white paper Sunday, arguing that it is the United States that has backtracked in the talks and that tariffs will not resolve the two country’s trade issues. Since talks broke down earlier this month, Beijing has doubled-down, issuing its own tit-for-tat tariffs in response to Washington’s increase to 25% of a tax on $200 billion in Chinese goods. Beijing has also been stepping up anti-American propaganda through state media. On Friday, China’s Commerce Ministry announced the establishment of a “non-reliable entity list.” That move…

The Trump administration had taken steps in recent weeks to work with Democratic and Republican lawmakers to address concerns about the proposed United States-Mexico-Canada trade agreement — and then came the threat of a new tariff. President Donald Trump said this past week that he would put a 5% tariff on Mexican imports unless America's southern neighbor cracked down on Central American migrants' efforts to cross the U.S. border.      His recent decision to remove U.S. tariffs on steel and aluminum imports from Canada and Mexico had appeased mostly Republicans who were using their trade votes as leverage to do away with those penalties.    The administration also had committed to meeting with a group of House Democrats to allay their concerns. That gesture created goodwill, and as House Speaker Nancy…

VOA News Center associate producer Jesusemen Oni contributed reporting from Washington.  Mexico's president suggested Saturday that his country could clamp down on migration, and he said he thought the United States was ready to discuss its threatened use of tariffs as a means to combat illegal migration from Central America. President Andres Manuel Lopez Obrador said at a Mexico City news conference that "there is willingness on the part of U.S. government officials to establish dialogue and reach agreement and compromises." His comments came ahead of talks in Washington next week, and Obrador said he said he expected "good results." He added that Mexico was willing to "reinforce" existing "measures without violating human rights." Mexican Foreign Minister Marcelo Ebrard said Friday that he began negotiating with U.S. officials after U.S. President Donald Trump threatened to impose tariffs…

The Trump administration is committed to making fossil fuels cleaner rather than imposing ``draconian'' regulations on coal and oil, U.S. Energy Secretary Rick Perry said Thursday at an energy conference in Salt Lake City. Perry previously said the administration wants to spend $500 million next year on fossil fuel research and development as demand plummets for coal and surges for natural gas.    ``Instead of punishing fuels that produce emissions through regulation, we're seeking to reduce those emissions by innovation,'' Perry said at the conference. Fossil fuel emissions have been cited by scientists as a major source of global warming.    U.N. Secretary-General Antonio Guterres recently said the world must change how it fuels factories, vehicles and homes to limit future global warming. Perry said the Trump administration has proven…

The International Monetary Fund said on Thursday it had not pressured Venezuela to release economic indicators after years of silence, while two sources said the country's surprise data release this week was due to pressure from China. The central bank on Tuesday unexpectedly released data confirming Venezuela is suffering hyperinflation and massive economic contraction. The release reversed President Nicolas Maduro's unofficial policy of classifying economic indicators as state secrets. The data reported a 22.5 percent contraction in Venezuela's economy in the third quarter of 2018 from the same period of the previous year. The bank did not provide a full-year 2018 figure for economic activity. Monthly inflation in April 2019 was 33.8 percent, while 2018 full-year inflation reached 130,060 percent, the bank said. The IMF said it suspended work with…

U.S. stocks lost ground again on Thursday, as conflicting comments on trade talks from President Donald Trump and Beijing  reinforced investor nervousness that a lengthy battle could be in the offing and harm global growth. Trump said talks with China were going well but those comments were countered by a senior Chinese diplomat who said provoking trade disputes is "naked economic terrorism." The lack of clarity around the trade battle has rattled investors of late, after the S&P 500 had risen more than 17% through the first four months of the year on optimism a trade deal between the two countries could be reached. That optimism has faded, however, as the escalating dispute between the two countries has weighed heavily on Wall Street in May, with each of the three…

A Chinese state TV anchor and a host from Fox Business, whose sparring over the U.S.-China trade war has been avidly followed on Chinese social media, brought their duel to the American cable network for what turned out to be a respectful encounter. The showdown between Liu Xin of China’s state-run English channel CGTN and Fox Business Network host Trish Regan was aired on Wednesday evening in the United States but was not shown live on TV in China, though it had been hyped by state and social media. Following U.S. moves this month to increase tariffs on Chinese imports and blacklist tech giant Huawei Technologies Co Ltd the rhetoric out of Beijing has become more strident. At the start of the roughly 16-minute segment, Liu corrected Regan to say…

In recent weeks, Australia and India have re-elected incumbent prime ministers. These Asia-Pacific countries, who have a difficult relationship with China, are unlikely to make the kind of policy changes that Beijing has been seeking for a long time, analysts said. Australia this month re-elected Prime Minister Scott Morrison stunning pollsters who had anticipated his defeat for several months. India gave a landslide victory to Prime Minister Narendra Modi’s Bharatiya Janata Party, who campaigned largely on a nationalistic agenda. China wants support from Australia and India on issues like the U.S.-China trade war, the Huawei controversy, South China Sea controversy and the Belt and Road Initiative. The Communist Party in Beijing attaches great importance to obtaining support from democratic countries as a means to enhance China’s global influence. It has…

Water restrictions are to be imposed in Sydney, Australia’s biggest city, for the first time in almost a decade because of falling reservoir levels and a long-standing drought. Residents who breach the regulations could be fined US$150. The flow of rainwater into some of Sydney’s reservoirs is at its lowest since World War II. From Saturday, households will face restrictions that will target the use of water outdoors. Garden sprinklers will be banned, and tougher measures could follow. The New South Wales state government says that “early and decisive action” will help to conserve supplies as a record-breaking drought worsens. Australia’s Bureau of Meteorology is predicting below-average rainfall and higher temperatures for the next three months across the much of the continent. “With the lowest inflows into Sydney’s water storage…

The Trump administration said on Tuesday that no major trading partner met its currency manipulation criteria but nine countries, including China, required close attention as Washington presses tariffs and negotiations to address trade deficits. The Treasury Department, in a semi-annual report to Congress, said it reviewed the policies of an expanded set of 21 major U.S. trading partners and found that nine required close attention due to currency practices: China, Germany, Ireland, Italy, Japan, South Korea, Malaysia, Singapore, and Vietnam. "No major U.S. trading partner met the relevant 2015 legislative criteria for enhanced analysis" as a currency manipulator, the department said in a statement. President Donald Trump has imposed tariffs on $200 billion worth of Chinese imports and begun the process of imposing tariffs on another $300 billion in Chinese…

Officials in Zimbabwe say the bodies of eight illegal miners have been retrieved from an abandoned gold mine about 50 kilometers north of Harare. The news Monday was a reminder of the risk faced by desperate illegal miners trying to make a living in the economically troubled southern African country. Matopo is a gold rich area in southern Zimbabwe, and some men there enter such mines, despite the danger involved.  These men are illegal miners, using a metal detector to search for gold at the Nugget Mine, about an hour's drive from Bulawayo, Zimbabwe’s second largest city.  ​Piniel Ndingi-Nyoni is one of those who entered the mine, despite the recent collapse of a mine shaft that killed four men.  Ndingi-Nyoni says he has no choice but to take the risk. …

Zimbabwe’s disused mines continue to be a death trap for poor and desperate illegal miners in search of the precious minerals to earn a living. Columbus Mavhunga travelled to Matopo a gold rich area about 500 kilometers south of Harare, where mining continues despite some having been trapped earlier this month. ...

Fiat Chrysler proposed a merger Monday with Renault, a union that would create the world's third biggest automaker. The merger, if it happens, would vault the new company, with annual sales of 8.7 million vehicles, into a position ahead of General Motors and behind only Volkswagen and Toyota, both of which sell about 10.6 million. The merger could give the combined companies a better chance in the battle among auto manufacturers to build new electric and autonomous vehicles. Investors in both companies showed their initial approval of the announcement, with Renault’s shares jumping 15 percent in afternoon trading in Paris and Fiat Chrysler stock up more than 10 percent in Milan. The proposal calls for shareholders to split ownership of the new company. Fiat Chrysler said the deal would save…

Only the chirping of birds and insects break the silence at a gold mining site in the Eastern Region of Ghana, right at the foot of the Atewa forest reserve. Caterpillar excavators stand still, as the two Ghanaian companies operating them wait for a new mining permit  a process that has been in the works for months. But a fresh pile of sludge spilt over a patch of vegetation suggests the mine is being operated illegally. Felix Addo-Okyreh, who works for Ghana's Environmental Protection Agency (EPA), says the sludge — referred to as slime' in mining jargon — is dirty waste water created when gold is separated from sediment, sometimes with the help mercury. It is stored in dams on the site. "It rained heavily last week. The embankment of the dam…

President Donald Trump says he is "honored" to give U.S. farmers hurt by the trade war with China another $16 billion in aid.  Flanked by potato growers, ranchers and dairymen in the White House, Trump said Thursday the aid "will help keep our cherished farms thriving and make clear that no country has a veto on America's economic and national security." Trump added that trade has been "very unfair" to the farmers who he says support him politically. This is the second multibillion-dollar bailout the Trump administration has provided to U.S. farmers who have seen Chinese markets for their products dry up because of tariffs China imposed on U.S. goods to retaliate for U.S. tariffs on Chinese products. The White House gave farmers $12 billion last year. U.S. Agriculture Secretary…

In a potential challenge to U.S.-led efforts to build consensus on the Boeing Co 737 MAX flying again, Canada and Europe said on Wednesday they would bring back the grounded aircraft on their own terms if their specific concerns are not addressed. Global regulators will meet in Fort Worth, Texas, on Thursday where the U.S. Federal Aviation Administration hopes to reach an international consensus on how to move forward with the MAX, U.S. officials told Reuters. The plane was grounded worldwide in March following a fatal Ethiopian Airlines crash just months after a similar Lion Air disaster in Indonesia which together killed 346 people. Global airlines that had rushed to buy the fuel-efficient, longer-range aircraft have since canceled flights and scrambled to cover routes that were previously flown by the…

British lawmakers are denouncing Prime Minister Theresa May's latest proposal to withdraw from the European Union (EU) amid growing demands from her own Conservative Party for her resignation. May said on Tuesday a bill she plans to present to Parliament next month would include a provision to vote on whether to hold a second referendum to leave the EU, a key demand of many opposition lawmakers. May also offered closer trading arrangements with the EU as another incentive in what she called a "last chance" opportunity to finalize a Brexit deal. Speaking before the House of Commons on Wednesday, May implored lawmakers to support her bill, warning a rejection would lead to "division and deadlock." May said her withdrawal bill would be disclosed Friday so that lawmakers would have time…

Celebrity chef Jamie Oliver's restaurant chain in Britain has filed for bankruptcy protection, closing 22 of its 25 eateries and leaving some 1,000 people out of work. The remaining outlets, two Jamie's Italian restaurants and a Jamie's Diner at Gatwick Airport outside London, will stay open, the financial firm KPMG, which will oversee the process, said in a statement Tuesday. Oliver said on Twitter he was "devastated that our much-loved UK restaurants have gone into administration," a form of bankruptcy protection, and thanked people "who have put their hearts and souls into this business over the years." ​Oliver gained fame as "The Naked Chef" on television, which aired in dozens of countries, after premiering in Britain some 20 years ago.  The television success was followed by a number of cookbooks.…

The Trump administration is considering payments of $2 per bushel for soybeans, 63 cents per bushel for wheat and 4 cents per bushel for corn as part of a package of up to $20 billion to offset U.S. farmers' losses from the trade war with China, Bloomberg reported on Tuesday. Caitlin Eannello, spokeswoman for the National Association of Wheat Growers, said that 63 cents per bushel for wheat is the number the organization has been hearing for the next round of U.S. trade aid. "That is the number that we've been hearing, she told Reuters. Those payments would exceed the rates paid last year to farmers in a similar aid package. President Donald Trump earlier this month directed the Department of Agriculture to work on a new aid plan for…

The Portuguese economy is resisting the prevailing gloom in Europe. Activity remained strong, with GDP rising by 0.5% in the first quarter, or 1.8% at an annual rate, compared with 1.2% in the euro zone, forecasts Brussels. Following the trend of 2018, Portugal's good economic health comes mainly from private consumption fueled by rising wages and employment dynamics. The preliminary data, says the national statistics institute, "reflect a significant acceleration in investment." The government deficit has fallen from 7.2% of GDP to 0.5% of GDP since 2014, and the unemployment rate from a peak of 17.9% in early 2013, to about 6% currently. "The tourism sector has been the largest driver of the export recovery in Portugal," Ben Westmore, the head of the Portugal desk in the Economics Department of the…