Category: Business

Nearly all of the currency removed from circulation in a surprise 2016 attempt to root out illegal hoards of cash came back into the financial system, India’s reserve bank has announced, indicating the move did little to slow the underground economy. Prime Minister Narendra Modi’s currency decree, which was designed to destroy the value of billions of dollars in untaxed cash stockpiles, caused an economic slowdown and months of financial chaos for tens of millions of people. Modi announced in a November 2016 TV address that all 500-rupee and 1,000-rupee notes, then worth about $7.50 and $15, would be withdrawn immediately from circulation. The banned notes could be deposited into bank accounts but the government also said it would investigate deposits over 250,000 rupees, or about $3,700. The government eventually…

U.S. President Donald Trump has signed proclamations permitting targeted relief from steel and aluminum quotas from some countries, the U.S. Commerce Department said on Wednesday. Trump, who put in place tariffs on steel and aluminum imports in March, signed proclamations allowing relief from the quotas on steel from South Korea, Brazil and Argentina and on aluminum from Argentina, the department said in a statement. “Companies can apply for product exclusions based on insufficient quantity or quality available from U.S. steel or aluminum producers,” the statement said. “In such cases, an exclusion from the quota may be granted and no tariff would be owed.” Trump, citing national security concerns, placed tariffs of 25 percent on steel imports and 10 percent on aluminum imports. The tariffs on steel and aluminum imports from…

The leaders of the United States and Canada expressed optimism on Wednesday that they could reach new NAFTA deal by a Friday deadline as negotiators prepared to talk through the night, although Canada warned that a number of tricky issues remained. Under pressure, Canada rejoined the talks to modernize the 24-year-old North American Free Trade Agreement after Mexico and the United States announced a bilateral deal on Monday. Canadian Foreign Minister Chrystia Freeland said late on Wednesday that talks were at "a very intense moment" but said there was "a lot of good will" between Canadian and U.S. negotiators. "Our officials are meeting now and will be meeting until very late tonight. Possibly they'll be meeting all night long," Freeland said. She and U.S. Trade Representative Robert Lighthizer had agreed…

The U.S. economy expanded at a 4.2 percent annual rate in April, May and June, the Commerce Department said Wednesday. The second-quarter growth figure for gross domestic product was one-tenth of a percentage point higher than initial estimates. "The economy is in good shape," said PNC Bank Chief Economist Gus Faucher. He wrote that this was the best "year-over-year increase in three years." But Faucher also said growth above 4 percent was "unsustainable" and that the economy was "set to slow somewhat in the second half of 2018," hitting 3.4 percent growth for the whole year. He predicted U.S. economic growth would slow further in 2019 and 2020 as the "stimulus from tax cuts and spending increases fades." U.S. President Donald Trump cheered the news: But Senate Minority Leader Chuck Schumer, a…

British officials have been turning to Japan for tips on how to dodge American sanctions on Iran, according to local media. Britain is already seeking from Washington exemptions from some U.S. sanctions, which are being re-imposed by President Donald Trump because of the U.S. withdrawal earlier this year from a controversial 2015 nuclear deal with Tehran. The British are especially keen to maintain banking links with Iran and to import Iranian oil. According to local media, U.K. officials have been asking their Japanese counterparts how they managed in the past to sidestep some aspects of the pre-2015 sanctions regime, which allowed Tokyo to sign oil deals with Iran as well as insurance contracts without incurring U.S. penalties. Re-imposed U.S. sanctions penalize any foreign companies that deal with Iran by barring…

President Donald Trump's trade deal with Mexico could struggle to win approval from Congress unless Canada comes on board, lawmakers from both parties said on Tuesday, saying support from Democrats would be needed to pass a purely bilateral deal. Trump unveiled the Mexico deal on Monday and threatened to slap tariffs on Canadian-made cars if Canada did not join the revamp of the trilateral North American Free Trade Agreement (NAFTA), which Trump has long criticized. If Trump, a Republican, tries to get the Senate to vote in favor of a bilateral deal as a replacement for NAFTA, he will face an uphill struggle to win passage, lawmakers said. Some lawmakers said only a trilateral pact would be eligible for fast-track, 51-vote Senate approval. A bilateral deal, on the other hand,…

Iraq will send a delegation to the United States seeking an agreement on financial transactions with Iran following Washington's reimposition of sanctions on Tehran, Prime Minister Haider al-Abadi said Tuesday. His statement was the first by an Iraqi official since Reuters reported last week that Baghdad was going to ask Washington for exemptions from some of the sanctions because Iraq's economy is closely linked with neighboring Iran. "We have requests for the American side, we have presented them and a delegation will go to negotiate within that framework," Abadi told a weekly news conference. "We have presented a clear vision of what Iraq really needs. This includes Iranian [natural] gas, which is very important, as well as other trade and the electricity sector." U.S. President Donald Trump withdrew the United…

The United States and Mexico agreed on Monday to a sweeping trade deal that pressures Canada to accept new terms on autos trade, dispute settlement and agriculture to keep the trilateral North American Free Trade Agreement (NAFTA). U.S. Trade Representative Robert Lighthizer said the White House was ready to notify the U.S. Congress by Friday of President Donald Trump's intent to sign the bilateral document, but that it was open to Canada joining the pact. The 24-year-old NAFTA is a trilateral deal between the United States, Canada and Mexico that underpins $1.2 trillion in North American Trade. Here are some of the main issues at the heart of the negotiations: Autos Dominate The new deal requires 75 percent of the value of a vehicle to be produced in the United…

Mexican president-elect Andres Manuel Lopez Obrador welcomed a deal between Mexico and the United States to overhaul the North American Free Trade Agreement (NAFTA) that he said preserved Mexican "sovereignty" in the energy sector. The U.S.-Mexico deal was announced by U.S. President Trump on Monday, putting pressure on Canada to agree to new terms and details that were only starting to emerge. Lopez Obrador said it was important that Canada be part of the deal. Lopez Obrador, who is scheduled to take office on Dec. 1, said Trump "understood our position" and accepted his incoming administration's proposals on the energy sector. The text of the new agreement has not yet been made public. "We put the emphasis on defending national sovereignty on the energy issue and it was achieved," Lopez…

Ethiopia has ousted state-run Metals and Engineering Corporation (METEC) from a $4 billion dam project on the River Nile due to numerous delays in completing the project. The Grand Renaissance Dam is the centerpiece of Ethiopia's bid to become Africa's biggest power exporter. Prime Minister Abiy Ahmed said at the weekend that the government had cancelled the contract of METEC, which is run by Ethiopia's military, and would award it to another company. Italian firm Salini Impregilo remains the main contractor building the dam, while METEC was the contractor for the electromechanical and hydraulic steel structure divisions of the project. The government has touted the 6,000-megawatt dam project, which is 60 percent finished, as a symbol of its economic reforms. "It is a project that was supposed to be completed…

The trade rift between the U.S. and China is taking on new dimensions with Washington scrutinizing the flow of technology to Chinese industries. Analysts said China might be in for both economic and political problems if the U.S. cuts off the supply of technologies that are essential for the survival of major Chinese companies. Such a move would affect the performance and industrial competitiveness of Chinese industry, said Scott Kennedy, Deputy Director of the Freeman Chair in China Studies at the Center for Strategic & International Studies. Beijing may be forced to overhaul its industrial policy to meet with the emerging situation. “It will put a lot of pressure on China to increase domestic consumption and domestic investments to replace the loss of opportunities with the United States and that…

Mexico's Economy Minister Ildefonso Guajardo said on Sunday that bilateral negotiations with the United States about the North American Free Trade Agreement (NAFTA) were in the "final hours." Speaking as he arrived for talks at the U.S. Trade Representative's office, Guajardo said the negotiators would need at least a week to work with Canada, the third country in the trilateral trade pact, pushing any possible final deal into at least September. U.S. President Donald Trump said on Saturday that the United States could reach a "big Trade Agreement" with Mexico soon as incoming Mexican trade negotiators signaled possible solutions to energy rules and a contentious U.S. "sunset clause" demand.     ...

John Cronin has never been one to let disability hold him back. The 22-year-old from Long Island, N.Y., was born with Down syndrome, a genetic disorder that causes developmental and intellectual delays. Motivated by his family’s love and encouragement, Cronin teamed up with his father 18 months ago to open a business. But not just any business. John's Crazy Socks sells, you guessed it, socks. And as Faiza Elmasry reports, it's a business worth $4 million. Faith Lapidus narrates. ...

Tesla Inc. CEO Elon Musk says investors have convinced him that he shouldn't take the company private, so the firm will remain on the public stock markets. The eccentric and sometimes erratic CEO said in a statement late Friday that he made the decision based on feedback from shareholders, including institutional investors, who said they have internal rules limiting how much they can sink into a private company. Musk met with the electric car and solar panel company's board on Thursday to tell them he wanted to stay public and the board agreed, according to the statement. In an Aug. 7 post on Twitter, Musk wrote that he was considering taking the company private. He said it would avoid the short-term pressures of reporting quarterly results. ...

U.S. Commerce Secretary Wilbur Ross has appointed a former federal prosecutor to monitor China's ZTE Corp — after people familiar with the matter said he rescinded an offer to a former U.S. official for signing a "Never Trump" letter before the 2016 presidential election. A new monitor for ZTE is required as part of a June settlement that ended a ban on U.S. companies selling components to China's No. 2 telecommunications equipment maker. The ban threatened ZTE's survival and became a source of friction in trade talks between Washington and Beijing. Roscoe Howard, a former U.S. attorney in Washington, will lead a compliance team designed to help ensure that ZTE does not illegally sell products with American parts to Iran and other sanctioned countries. Howard, who got his law degree…

Federal Reserve Chairman Jerome Powell will not lack for urgent topics to address when he gives the keynote speech Friday to an annual gathering of global central bankers in Jackson Hole, Wyoming. Fed watchers will be listening for anything Powell has to say about financial turmoil in emerging markets, the economic threats posed by the growing trade war launched by President Donald Trump, and Trump’s criticism of the Fed’s recent interest rate hikes. Investors will especially want to hear whether Powell addresses the central question of whether any of those developments might lead the Fed to alter its plan to raise interest rates two more times this year and to keep raising them next year as well. If Powell sounds confident that the economy won’t be unduly hurt by the…

Federal Reserve Chairman Jerome Powell signaled Friday that he expects the Fed to continue gradually raising interest rates if the U.S. economic expansion remains strong. Powell added that while annual inflation has risen to near the Fed's 2 percent target rate, it doesn't seem likely to accelerate above that point. That suggests that he doesn't foresee a need for the Fed to step up its rate hikes. Late next month, the Fed is widely expected to resume raising rates. Speaking to an annual conference of central bankers in Jackson Hole, Wyoming, Powell said the Fed recognizes that it needs to strike a careful balance between its mandates of maximizing employment and keeping price increases stable. He said a gradual approach is the best way for the Fed to navigate between…

A new set of tit-for-tat tariffs imposed by the United States and China on each other's goods took effect Thursday. The U.S. announced earlier this month that it would impose 25 percent tariffs on $16 billion worth of Chinese goods, on top of the 25-percent tariffs it imposed on $34 billion worth of Chinese products in early July. Beijing has followed suit in each case with an identical percentage of tariffs in retaliation. China's commerce ministry issued a statement Thursday criticizing the U.S. tariffs as a violation of World Trade Organization rules, and says it will file a legal challenge under the WTO's dispute resolution mechanism. The new round of tariffs took effect the day after delegations from both nations met in Washington for first of two days of talks…

French President Emmanuel Macron will make the tough political choices needed to meet his deficit commitments, his government spokesman said, as he looked to put a bodyguard scandal behind him at his first Cabinet meeting after the summer break. Macron and his ministers in all likelihood need to find savings in next year's budget, to be presented to parliament next month, if they are to prevent the deficit from ballooning once again. The president faced his first crisis in the summer when video surfaced of bodyguard Alexandre Benalla beating a protester. Macron's own aloof response fanned public discontent. Now the 40-year-old leader returns to work facing difficult political choices as he embarks on a new wave of reforms to reform the pensions system, overhaul public healthcare and shake-up the highly…

Saudi Arabia has called off both the domestic and international stock listing of state oil giant Aramco, billed as the biggest such deal in history, four senior industry sources said on Wednesday. The financial advisors working on the proposed listing have been disbanded, as Saudi Arabia shifts its attention to a proposed acquisition of a "strategic stake" in local petrochemicals maker Saudi Basic Industries Corp., two of the sources said. "The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way — first delay then calling off," a Saudi source familiar with IPO plans. Saudi Aramco did not immediately respond to an emailed request for comment. The Saudi Royal Court had no immediate comment. The proposed listing of…

Disney is offering to pay full tuition for hourly workers who want to earn a college degree or finish a high school diploma. The Walt Disney Co. said Wednesday it will pay upfront tuition to workers who want to take classes starting in the fall. Disney initially will invest $50 million into the "Disney Aspire" program and up to $25 million a year after that. Other large corporations have begun paying tuition for workers in a job market with low unemployment. In May, Walmart said it will offer workers the chance to get a college degree at three universities with online programs. Disney is rolling out its program in phases, with the first limited to online classes. It is being administered by Guild Education, the same firm operating Walmart's program.…

Following Seoul's announcement that South Korean companies have illegally imported North Korean coal, U.S. experts are worried about North Korean trade that contravenes international sanctions. The Korea Customs Service (KCS) announced earlier this month that three South Korean companies illegally imported North Korean coal that was transshipped at Russian ports, in violation of United Nations resolutions. The U.N. Security Council adopted a resolution on August 5, 2017, banning North Korea from exporting coal, iron, lead and other materials. Another resolution later that year, on December 22, called for U.N. members to seize and inspect vessels suspected of transporting prohibited items.  According to the KCS, in seven shipments between April and October of last year, three South Korean companies imported a total of 35,038 tons of North Korean coal and pig iron…

Chilean President Sebastian Pinera said on Tuesday that his overhaul of the country's tax structure would "modernize" Chile's revenue system and stimulate investment by local and foreign companies. The conservative leader said in a televised address that reform would, among other proposals, calibrate taxes paid by conventional companies with those paid by digital technology companies. The reform aims "to create a simpler and more equitable and fully integrated tax system for all Chilean companies." Digital commerce companies with local operations like Netflix and Uber are likely to be affected under the reform. E-commerce is gaining traction in Latin America after a slow start. Last month, an Amazon Web Services vice president met with Pinera to discuss Amazon investing in the country as part of a longer-term regional expansion plan. Pinera,…

Mexico risks losing long-term passenger growth and billions of dollars if it fails to go through with building a new hub in the capital to alleviate congestion, an executive with the International Air Transport Association (IATA) said on Tuesday. Mexico's incoming government last week postponed a decision on whether to complete a partially constructed new airport in Mexico City, saying the public should be consulted on the fate of the $13-billion hub, which the next president initially opposed. President-elect Andres Manuel Lopez Obrador said the project was tainted by corruption prior to his July 1 landslide election victory, and had pressed for an existing military airport north of the capital to be expanded instead. Without the new airport, around 20 million fewer passengers would fly to Mexico City starting in…

Claudio Belotti knows he cut the denim that became the jeans Meghan Markle wore on one of her first outings as the fiancee of Britain's Prince Harry.   That's because he cuts all of the fabric for Hiut Denim Co., a 7-year-old company that makes jeans in Cardigan, Wales. Belotti is a craftsman with 50 years of experience that gives his work a personal touch — something that's not quite couture but not exactly mass-produced either.   "There's a story behind each one," Belotti said. "You're paying for the skill."   Customer demand for something unique is helping small companies like Hiut buck the globalization trend and set up shop in developed countries that had long seen such work disappear. While international brands like H&M and Zara still dominate the clothing…

South Africa's state-owned Land Bank said on Monday a plan to allow the state to seize land without compensation could trigger defaults that could cost the government 41 billion rand ($2.8 billion) if the bank's rights as a creditor are not protected. Land Bank is a specialist bank providing financial services to the commercial farming sector and other agricultural businesses. President Cyril Ramaphosa announced on Aug. 1 that the ruling African National Congress (ANC) is forging ahead with plans to change the constitution to allow the expropriation of land without compensation, as whites still own most of South Africa's land more than two decades after the end of apartheid. Land Bank Chairman Arthur Moloto said in the company's 2018 annual report that the bank has approximately 9 billion rand of…

The bull market in U.S. stocks is about to become the longest in history.   If stocks don't drop significantly by the close of trading Wednesday, the bull market that began in March 2009 will have lasted nine years, five months and 13 days, a record that few would have predicted when the market struggled to find its footing after a 50 percent plunge during the financial crisis.   The long rally has added trillions of dollars to household wealth, helping the economy, and stands as a testament to the ability of large U.S. companies to squeeze out profits in tough times and confidence among investors as they shrugged off repeated crises and kept buying.   "There was no manic trading, there was no panic buying or selling," said Jack…

Beverage giant PepsiCo on Monday purchased Israel's fizzy drink maker SodaStream for $3.2 billion, a boon for a company that has enjoyed a resurgence after being targeted by anti-Israel boycotters in the past. PepsiCo said it was acquiring all SodaStream's outstanding shares at $144 per share, a 32 percent premium to the 30-day volume weighted average price.   Earlier this month, SodaStream reported its strongest results in company history, a 31 percent year-over-year jump in revenues to $172 million, an 89 percent leap in operating profit to $32 million and an 82 percent climb by net profit to $26 million.   PepsiCo Chairman and CEO Indra Nooyi called the companies "an inspired match" since both companies aim to reduce waste and limit their environmental footprint.   "Together, we can advance…