Category: Business

Saudi Arabia is monitoring the impact of the U.S. withdrawal from the Iran nuclear deal on oil supplies and is ready to offset any shortage but it will not act alone to fill the gap, an OPEC source familiar with the kingdom's oil thinking said. U.S. President Donald Trump on Tuesday abandoned a nuclear deal with Iran and announced the "highest level" of sanctions against the OPEC member. The original agreement had lifted sanctions in exchange for Tehran limiting its nuclear program. Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries after Saudi Arabia and Iraq. During the last round of sanctions, Iran's oil supplies fell by around 1 million barrels per day (bpd), but the country re-emerged as a major oil exporter, especially to…

A United Nations agency said on Tuesday an "unjust" U.S. financial and trade embargo on Cuba had cost the country's economy $130 billion over nearly six decades, coming up with the same estimate as the island's communist government. Although many U.S. allies join Washington in criticizing Cuba's one-party system and repression of political opponents, the United States has lost nearly all international support for the embargo since the collapse of the Soviet Union. The U.N. has adopted a non-binding resolution calling for an end to the embargo with overwhelming support every year since 1992. In a report ahead of the vote last year, Cuba estimated total damage from the embargo at $130 billion. "This country which welcomes us today .. is testing its own ways to face the brutal human…

President Donald Trump will allow year-round sales of renewable fuel with blends of 15 percent ethanol as part of an emerging deal to make changes to the federal ethanol mandate.   Republican senators and the White House announced the deal Tuesday after a closed-door meeting, the latest in a series of White House sessions on ethanol.   The Environmental Protection Agency currently bans the 15-percent blend, called E15, during the summer because of concerns that it contributes to smog on hot days. Gasoline typically contains 10 percent ethanol. Farm-state lawmakers have pushed for greater sales of the higher ethanol blend to boost demand for the corn-based fuel.   Iowa Sen. Chuck Grassley called the agreement good news for farmers and drivers alike, saying it would increase ethanol production and consumer…

With the threat of tariffs and counter-tariffs between Washington and Beijing looming, Chinese buyers are canceling orders for U.S. soybeans, a trend that could deal a blow to American farmers if it continues. At the same time, farmers in China are being encouraged to plant more soy, apparently to help make up for any shortfall from the United States.   Beijing has included soybeans on a list of $50 billion of U.S. exports on which it has said it would impose 25 percent tariffs if the United States follows through on its threats to impose the same level of tariffs on the same value of Chinese goods. The U.S. tariffs could kick in later this month; China would likely retaliate soon after. It can take a month or longer for soybean…

Trade negotiations between China and the United States continue early next week in Washington D.C., but analysts say after the first round, the differences between the two sides are huge. Some believe the differences are so fundamental and big that an escalation of tariffs is unavoidable. According to a widely circulated copy of Washington’s demands, President Donald Trump’s delegation not only asked Beijing to cut its trade deficit with the United States by $200 billion by 2020, but to also sharply lower tariffs and government subsidies of advanced technologies. Beijing wants the United States to no longer oppose granting China market economy status at the World Trade Organization, amend an export ban against Chinese tech company ZTE Corp and open American government procurement to Chinese technology and services among other demands. View…

The Trump administration is unveiling a multibillion-dollar roster of proposed spending cuts but is leaving this year's $1.3 trillion catchall spending bill alone.   The cuts wouldn't have much impact, however, since they come from leftover funding from previous years that wouldn't be spent anyway.   The White House said it is sending the so-called rescissions package to lawmakers Tuesday. Administration officials, who required anonymity because they weren't authorized to speak publicly on the matter, said the package proposes killing $15 billion in unused funds. A senior official said about $7 billion would come from the Children's Health Insurance Program, or CHIP, which provides health care to kids from low-income families, though that official stressed the cuts won't have a practical impact on the popular program.   The administration is…

Australia's government is expected to release annual spending plans on Tuesday with a focus on winning votes at elections due within a year. Cheaper craft beer plus personal tax cuts compensated by strengthening company tax revenue have been flagged as well as more investment on roads and rail to stimulate economic growth. Some media have reported that the government might better its timetable for returning the budget to surplus by the 2020-21 fiscal year by balancing the books 12 months earlier. New budget starts July 1 Treasurer Scott Morrison, who will reveal to the Parliament later Tuesday his economic blueprint for the year starting July 1, said the government would live within its means. “The plan for a stronger economy that I will be announcing tonight is about improving the…

Nestle is paying more than $7 billion to handle global retail sales of Starbucks's coffee and tea outside of its coffee shops. The deal comes with a huge price tag for Nestle, but it could pay off big for the Swiss company. Its Nescafe and Nespresso don't carry anywhere near the heft in America that Starbucks brand does, with its $2 billion in annual sales.   The deal gives Nestle the rights to market, sell and distribute Starbucks, Seattle's Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia packaged coffee and tea. It will also be able to put the Starbucks brand on Nestle single-serve capsules. The agreement excludes bottled drinks like ice coffees and Frappuccinos that are sold in and outside of Starbucks stores.   Nestle had hinted…

A small band of Belgian monks are planning to start producing their own beer again, more than 200 years after invading French troops stopped all brewing at the abbey. The men from Grimbergen Abbey started making beer in 1128, but stopped in 1797 when the French took over the site and sold off the equipment. After that, some of the world's biggest drink brands filled the gap - Heineken unit Alken-Maes makes brown and blond lagers with the Grimbergen brand in Belgium. Carlsberg sells them abroad, paying royalties to the abbey. Now the monks have drawn up plans for their own micro-brewery to produce their own beers to sell alongside the other Grimbergen drinks on the market. "We want to build a micro-brewery, on a small scale and linked with…

Afghanistan's poverty rate has worsened sharply over the past five years as the economy has stalled and the Taliban insurgency has spread, with more than half the population living on less than a dollar a day, a survey published on Monday showed. The Afghanistan Living Conditions Survey (ALCS), a joint study by the European Union and Afghanistan's Central Statistics Organization, showed the national poverty rate rising to 55 percent in 2016-17 from 38 percent in 2011-12. "The high poverty rates represent the combined effect of stagnating economic growth, increasing demographic pressures, and a deteriorating security situation," Shubham Chaudhuri, World Bank director for Afghanistan, said in a commentary about the survey. The report underlines the problems facing the Western-backed government in Kabul which needs economic growth to help replace foreign aid…

An innovative consumer awareness campaign will be launched this summer in several cities in the United States. The campaign is aimed at preventing the waste of food that costs the world billions of dollars and has severe consequences on global food security and the environment. Verónica Balderas Iglesias spoke with experts. ...

The U.S. and China ended the second day of high level talks Friday aimed at avoiding a possible trade war. The U.S. delegation, headed by Treasury Secretary Steven Mnuchin, will brief President Donald Trump Saturday and "seek his decision on next steps," the White House said in a statement, adding that the administration had "consensus" for "immediate attention" to change the U.S.-China trade and investment relationship. "We will be meeting tomorrow to determine the results, but it is hard for China in that they have become very spoiled with U.S. trade wins!" Trump said in a Twitter post late Friday. "Both sides recognize there are still big differences on some issues and that they need to continue to step up their work to make progress," China said in a statement…

President Trump reveled in the 3.9 percent U.S. unemployment rate Friday, following the release of figures by the Bureau of Labor Statistics. But some say that these numbers don't tell the whole story. From Washington, VOA's Jill Craig has more. ...

The Trump administration has drawn a hard line in trade talks with China, demanding a $200 billion cut in the Chinese trade surplus with the United States, sharply lower tariffs and advanced technology subsidies, people familiar with the talks said Friday. The lengthy list of demands was presented to Beijing before the start of talks Thursday and Friday between top-level Trump administration officials and their Chinese counterparts to try to avert a damaging trade war between the world’s two largest economies. A White House statement did not mention specific demands, but said the U.S. delegation “held frank discussions with Chinese officials on rebalancing the United States-China bilateral economic relationship, improving China’s protection of intellectual property, and identifying policies that unfairly enforce technology transfers.” The statement gave no indication that U.S.…

U.S. employers stepped up hiring modestly in April, and the unemployment rate fell to 3.9 percent, evidence of the economy's resilience amid the recent stock market chaos and anxieties about a possible trade war. Job growth amounted to a decent 164,000 last month, up from an upwardly revised 135,000 in March. The unemployment rate fell after having held at 4.1 percent for the prior six months largely because fewer people were searching for jobs. The overall unemployment rate is now the lowest since December 2000. The rate for African-Americans — 6.6 percent — is the lowest on record since 1972. Many employers say it's difficult to find qualified workers. But they have yet to significantly bump up pay in most industries. Average hourly earnings rose 2.6 percent from a year…

Venezuela said on Thursday it would take over the country's leading private bank, Banesco, for 90 days and announced the arrest of 11 top executives for "attacks" against the country's rapidly depreciating bolivar currency. The detentions came on the heels of last month's shock arrests of two Venezuelan executives working in the country for U.S. oil company Chevron Corp. Oil-rich Venezuela is suffering from hyperinflation and a steady collapse of the bolivar currency, which President Nicolas Maduro has attributed to an "economic war," but critics blame on incompetence and failed socialist policies. Maduro's foes say he is cracking down on the business sector to try to shore up support and halt price increases ahead of a controversial May 20 presidential election, which key opposition parties have boycotted as a sham. Chief Prosecutor Tarek Saab announced the arrests in a televised press conference, but…

Venezuela said on Thursday it would take over the country's leading private bank, Banesco, for 90 days and announced the arrest of 11 top executives for "attacks" against the country's rapidly depreciating bolivar currency. The detentions came on the heels of last month's shock arrests of two Venezuelan executives working in the country for U.S. oil company Chevron Corp. Oil-rich Venezuela is suffering from hyperinflation and a steady collapse of the bolivar currency, which President Nicolas Maduro has attributed to an "economic war," but critics blame on incompetence and failed socialist policies. Maduro's foes say he is cracking down on the business sector to try to shore up support and halt price increases ahead of a controversial May 20 presidential election, which key opposition parties have boycotted as a sham. Chief Prosecutor Tarek Saab announced the arrests in a televised press conference, but…

A federal grand jury in Detroit has indicted former Volkswagen CEO Martin Winterkorn with conspiracy and wire fraud in the car builder's scheme to rig diesel emissions tests. "If you try to deceive the United States, then you will pay a heavy price," Attorney General Jeff Sessions said Thursday. "The indictment unsealed today alleges that Volkswagen's scheme to cheat its legal requirements went all the way to the top of the company." Winterkorn is alleged to have conspired with other top Volkswagen bosses to defraud the U.S. government and consumers with false claims that the company was complying with the Clean Air Act. Volkswagen already admitted it installed devices on diesel models designed to turn on pollution control devices during emissions tests and turn them off when the car is…

The U.S. trade deficit narrowed sharply in March as exports increased to a record high amid a surge in deliveries of commercial aircraft and soybeans, bolstering the economy's outlook heading into the second quarter. While other data on Thursday showed a modest increase in new applications for jobless benefits last week, the number of Americans receiving unemployment aid fell to its lowest level since 1973, pointing to tightening labor market conditions. Wage growth is also rising, with hourly compensation accelerating in the first quarter, more evidence that inflation pressures are building. "The good news is that we are exporting more, but with the labor markets incredibly tight, labor costs are accelerating as well," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "The rise in labor costs…

President Trump plans to meet next week with leaders from U.S. and foreign carmakers on trade and changes to emission standards. “When the White House wants to meet with us about our sector and policy, we welcome the opportunity,” Alliance of American Automobile Manufacturers spokeswoman Gloria Bergquist said Wednesday. The time and agenda of the talks are still to be announced. But the car builders want to make their concerns about possible changes to the North American Free Trade Agreement known to the president. They are also expected to talk about Trump administration plans to revise strict Obama-era emission standards for U.S. cars and light trucks. Seventeen states and Washington, D.C., are suing the administration over the plans, accusing the Environmental Protection Agency of breaking the law. “This is about…

The International Monetary Fund censured Venezuela on Wednesday for failing to hand over essential economic data to the fund. “The [Executive] Board noted that adequate data provision was an essential first step to understanding Venezuela's economic crisis and identifying possible solutions,” an IMF statement said. The board is giving Venezuela another six months to comply or face possible expulsion from the IMF. “The Fund stands ready to work constructively with Venezuela toward resolving its economic crisis when it is prepared to re-engage with the Fund,” the IMF said. Venezuela has not responded to the IMF’s action. But President Nicolas Maduro’s socialist government has long declined to provide data to the IMF. It regards the IMF as a U.S. tool and part of a Washington-inspired economic war against Venezuela. Corruption and…

A Chinese company that manufactured Ivanka Trump shoes and has been accused of serious labor abuses is being celebrated in a blockbuster propaganda film for extending China's influence around the globe.   The state-backed documentary "Amazing China" portrays the Huajian Group as a beneficent force spreading prosperity — in this case, by hiring thousands of Ethiopians at wages a fraction of what they'd have to pay in China. But in Ethiopia, Huajian workers told The Associated Press they work without safety equipment for pay so low they can barely make ends meet.   "I'm left with nothing at the end of the month," said Ayelech Geletu, 21, who told the AP she earns a base monthly salary of 1,400 Birr ($51) at Huajian's factory in Lebu, outside Addis Ababa. "Plus,…

U.S. Commerce Secretary Wilbur Ross said on Tuesday that the Trump administration was prepared to levy tariffs on China if an American delegation heading to Beijing did not reach a negotiated settlement to reduce trade imbalances. Ross, speaking to CNBC television before traveling to China for talks on Thursday and Friday with top Chinese officials, said he had “some hope” agreements could be reached to resolve the trade tensions between the world’s two largest economies. But he added that U.S. President Donald Trump, who has made reducing the U.S. trade deficit with China a key part of his administration's trade policy, would have to first approve any deals. Top economic officials The U.S. delegation to Beijing also includes Trump’s top economic officials, including Treasury Secretary Steven Mnuchin, U.S. Trade Representative…

Workers and protesters throughout the world observed May Day Tuesday with rallies and strikes demanding their governments address better working conditions and other labor issues. In addition to being an international day honoring workers or a traditional spring time festival, Tuesday is also International Worker’s Day in many countries. Russia In Moscow, about 120,000 people marched from Red Square to the main streets in a traditional May Day parade. In St. Petersburg, Russia, several hundred citizens upset over the Kremlin’s efforts to restrict internet freedom, joined the official May Day celebration. They protested the ban of the messaging application Telegram, a move that triggered a rally in Moscow that was attended by 10,000 people. Spain Marches calling for gender equality, higher salaries and better pensions were held in more than…

Pakistan has formally reopened a major trade route with landlocked Afghanistan after nearly four years. Authorities had closed the remote Ghulam Khan border crossing in North Waziristan in 2014 after launching a major army-led counter-militancy offensive in the tribal district, once condemned as the “epicenter” of international terrorism. Military officials say the Waziristan region has since been almost completely secured and rehabilitation as well as reconstruction activities are currently under way there. Pakistani Prime Minister Shahid Khaqan Abbasi traveled to the tribal region on Monday and inaugurated a newly constructed terminal to formally resume cross-border trading activities. Ghulam Khan is the third-largest official crossing point on the nearly 2,600-kilometer, largely porous frontier between Pakistan and Afghanistan. Torkham and Chaman are the other two crossings that Afghans use for bilateral trade…

The third and fourth biggest U.S. wireless carriers, T-Mobile and Sprint, said Sunday they plan to merge, the third attempt they've made to join forces against the country's two biggest mobile device firms, Verizon and AT&T. The deal, if it happens this time, calls for T-Mobile to buy Sprint for $26 billion in an all-stock deal. The combined carrier would have 126 million customers, still third in the pecking order of U.S. wireless carriers, but closer to the top two. Verizon has more than 150 million customers, and AT&T more than 142 million. The latest agreement caps four years of on-and-off talks between T-Mobile and Sprint. Sprint dropped its bid for T-Mobile more than three years ago after U.S. regulators objected and another proposed merger fell through last November. The…

From T-shirts, socks and toys to knives and lanterns, a store in upstate New York takes pride in only selling goods that are made in America. Olga Loginova from VOA's Russian service talked to the store owner about his business, which emerged after the 2008 financial crisis. ...

The U.S. economy likely slowed in the first quarter as growth in consumer spending braked sharply, but the setback is expected to be temporary against the backdrop of a tightening labor market and large fiscal stimulus. Gross domestic product probably increased at a 2.0 percent annual rate, according to a Reuters survey of economists, also held back by a moderation in business spending on equipment as well as a widening of the trade deficit and decline in investment in homebuilding. Those factors likely offset an increase in inventories. The economy grew at a 2.9 percent pace in the fourth quarter. The government will publish its snapshot of first-quarter GDP Friday at 8:30 a.m.  Don't lose sleep The anticipated tepid first-quarter growth will, however, probably not be a true reflection of…