Category: Business

Two major U.S. retailers changed their gun sales policies Wednesday in the fallout over a Florida high school massacre. Walmart, the country's biggest retailer, announced it is raising the age restriction for buying guns and ammunition to 21. “We take seriously our obligation to be a responsible seller,” it said in a statement.  Walmart is also dropping toys and other items that resemble assault-style weapons from its website. The retail giant stopped selling assault-style guns in 2015 and does not sell handguns except for its stores in Alaska. Earlier Wednesday, Dick’s Sporting Goods announced it would no longer sell assault-style rifles or any gun to anyone younger than 21. The chain went one step further and urged Congress to ban assault-style weapons and raise the minimum age. The alleged Parkland…

Growth in China’s manufacturing sector in February cooled to the weakest in more than 11/2 years, raising concerns of a sharper-than-expected slowdown in the world’s second biggest economy this year as regulators tighten the screws on financial risks. The weakness was driven by disruption to business activity by the Lunar New Year holidays and curbs to factory output from tougher pollution rules, but there are worries of a bigger loss in momentum. “Although a recovery looks possible in the short-run as the anti-pollution campaign winds down, the risk is still that the economy fares worse this year than is generally expected,” said Julian Evans-Pritchard, senior China Economist at Capital Economics. Index raises concern The official Purchasing Managers’ Index (PMI) released Wednesday fell to 50.3 in February, from 51.3 in January.…

The U.S. Commerce Department on Tuesday recommended raising import duties on Chinese-made aluminum foil it said is being sold at unfairly low prices due to improper subsidies to producers.   The ruling was praised by the Aluminum Association, a trade group that pressed the case and said cheap imports were threatening thousands of jobs.   Beijing faces complaints from the United States, European Union and other trading partners that a flood of Chinese aluminum, steel and other exports are being sold at unfairly low prices, threatening jobs abroad.   The Commerce Department said it concluded Chinese exporters were selling aluminum foil at 49 to 106 percent below fair value and were receiving unfair subsidies of 17 to 81 percent of the goods' value.   Importers will have to post cash…

U.S. President Donald Trump has reached an agreement with the Boeing Co to provide two Air Force One planes for $3.9 billion, the White House said on Tuesday. "President Trump has reached an informal deal with Boeing on a fixed-price contract for the new Air Force One Program," Deputy Press Secretary Hogan Gidley told Reuters. He said the contract will save taxpayers more than $1.4 billion, but those savings could not be independently confirmed. Trump has said Boeing's costs to build replacements for Air Force One aircraft - one of the most visible symbols of the U.S. presidency - were too high and urged the federal government in a tweet to "Cancel order!" The Boeing 747-8s are designed to be an airborne White House able to fly in worst-case security…

Federal Reserve Chairman Jerome Powell, pledging to “strike a balance” between the risk of an overheating economy and the need to keep growth on track, told U.S. lawmakers on Tuesday that the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending. Fed policymakers anticipate three rate increases this year, and Powell gave no indication in prepared remarks to the House Financial Services Committee that the pace needs to quicken even as the “tailwinds” of government stimulus and a stronger world economy propel the U.S. recovery. “The [Federal Open Market Committee] will continue to strike a balance between avoiding an overheating economy and bringing ... price inflation to 2 percent on a sustained basis,” Powell said in prepared remarks for his…

Just as "Black Panther" is setting records at the box office, a new study finds that diverse audiences are driving most of the biggest blockbusters and many of the most-watched hits on television. UCLA's Bunche Center released its fifth annual study on diversity in the entertainment industry Tuesday, unveiling an analysis of the top 200 theatrical film releases of 2016 and 1,251 broadcast, cable and digital platform TV shows from the 2015-2016 season. Among its results: minorities accounted for the majority of ticket buyers for five of the top 10 films at the global box office, and half of ticket buyers for two more of the top 10. "There has been some progress, undeniably. Things are not what they were five years ago," said Darnell Hunt, director of the center,…

The governor of Sao Paulo and likely centrist presidential candidate Geraldo Alckmin said on Monday that he would privatize Brazil's state-run oil company Petroleo Brasileiro SA if he wins the elections in October. Alckmin, who has single digit support in opinion polls, said during a television interview with Band TV that he favored private ownership of Petrobras, as Brazil's biggest company is known, as long as the sale was conducted within a strict regulatory framework. Once a taboo issue in Brazilian politics because of national sovereignty concerns, the privatization of Petrobras is set to become a campaign issue this year as Brazil struggles to bring an unsustainable budget deficit under control. Brazil's left fiercely rejects the sale of Petrobras, but the leftist leader leading early opinion polls, former President Luiz…

The Trump Organization said Monday it has made good on the president's promise to donate profits from foreign government spending at its hotels to the U.S. Treasury, but neither the company nor the government disclosed the amount or how it was calculated.   Watchdog groups seized on the lack of detail as another example of the secrecy surrounding President Donald Trump's pledges to separate his administration from his business empire.   "There is no independent oversight or accountability. We're being asked to take their word for it," said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington. "Most importantly, even if they had given every dime they made from foreign governments to the Treasury, the taking of those payments would still be a problem under the Constitution."…

Greece entered a last round of reform talks with creditors Monday, just five months before the country's massive rescue program ends — and with the government and central bank publicly disagreeing on how to finance the nation after the bailout.   Government officials said the talks with representatives of Greece's European partners and the International Monetary Fund in Athens would cover privatizations and energy.   But the negotiations were upstaged by a continued spat between Greece's central bank governor, Yannis Stournaras, and the government over financing policies after the bailout runs out in August. The country will then have to raise money from international investors in bond markets — at a much higher rate than bailout creditors charge.   Stournaras repeated his argument that the government should consider setting up…

President Emmanuel Macron on Saturday faced heckles and whistles from French farmers angry with reforms to their sector, as he arrived for France's annual agricultural fair. For over 12 hours, Macron listened and responded to critics' rebukes and questions — only to return home to the Elysee Palace with an adopted hen. "I saw people 500 meters away, whistling at me," Macron said, referring to a group of cereal growers protesting against a planned European Union free-trade pact with a South American bloc, and against the clampdown on weedkiller glyphosate. "I broke with the plan and with the rules and headed straight to them, and they stopped whistling," he told reporters. "No one will be left without a solution," he said. Macron was seeking to appease farmers who believe they have no alternative…

Investor Warren Buffett says Wall Street’s lust for deals has prompted CEOs to act like oversexed teenagers and overpay for acquisitions, so it has been hard to find deals for Berkshire Hathaway. In his annual letter to shareholders Saturday, Buffett mixed investment advice with details of how Berkshire’s many businesses performed. Buffett blamed his recent acquisition drought on ambitious CEOs who have been encouraged to take on debt to finance pricey deals. “If Wall Street analysts or board members urge that brand of CEO to consider possible acquisitions, it’s a bit like telling your ripening teenager to be sure to have a normal sex life,” Buffett said. Berkshire is also facing more competition for acquisitions from private equity firms and other companies such as privately held Koch Industries. Sticking with…

Australia appears to be failing in its efforts to crack down on bribery, according to the latest survey conducted by Transparency International, a non-governmental organization based in Germany. The group said developed countries - including Australia - appeared to be lagging in their efforts to combat corruption in the public sector.  It pointed to an inadequate regulation of foreign political donations in Australia, conflicts of interest in planning approvals, revolving doors and improper industry lobbying in large-scale mining projects.   While Australia's ranking is unchanged - it remains ranked 13th out of 180 countries - its corruption score has slipped eight points since the index started in its current form in 2012. Concern about Australia's ranking comes as debate continues about the need for a nationwide anti-corruption body similar to…

Three more companies say they have ended marketing programs with the National Rifle Association (NRA), as gun control advocates stepped up pressure on firms to cut ties to the gun industry following last week’s school shooting in Florida. Activists have posted petitions online, identifying businesses that offer discounts to NRA members, in a push to pressure the companies to cut ties to the gun rights organization. Corporations that ended their discount programs with NRA members on Friday included insurance company MetLife, car rental company Hertz, and Symantec Corp., the software company that makes Norton Antivirus technology. The move comes after several other companies cut their ties to the NRA earlier this week, including car rental company Enterprise, First National Bank of Omaha, Wyndham Hotels and Best Western hotels. The NRA…

The heaviest, the largest, the most impactful —  those were the superlatives the Trump administration used to describe its latest sanctions against North Korea. But were the Treasury Department designations of more than 50 companies and ships accused of illicit trading with the pariah nation really the toughest action yet by the U.S. and the wider world? Probably not. Here's a look at how President Donald Trump and a top lieutenant described Friday's sanctions to punish the North for its development of nuclear weapons and ballistic missiles — and how they stack up against past economic restrictions that have been piled on Kim Jong Un's government in response to its illegal weapons tests. Treasury Secretary Steven Mnuchin: "The Treasury Department is announcing the largest set of sanctions ever imposed in…

Federal Reserve policymakers fretted on Friday that they could face the next U.S. recession with virtually the same arsenal of policies used in the last downturn and, with interest rates still relatively low, those will not pack the same punch. In the midst of an unprecedented leadership transition, Fed officials are publicly debating whether to scrap their approach to inflation targeting, how much of its bond portfolio to retain, and how much longer they can raise interest rates in the face of an unexpectedly large boost from tax cuts and government spending. After years of near-zero rates and $3.5 trillion in bond purchases all meant to stimulate the economy in the wake of the 2007-09 recession, the Fed has gradually tightened policy since late 2015. Its key rate is now in the range of 1.25 to 1.5 percent, and while the Fed plans to…

European Union leaders staked out opening positions Friday for a battle over EU budgets that many conceded they are unlikely to resolve before Britain leaves next year, blowing a hole in Brussels' finances. At a summit to launch discussion on the size and shape of a seven-year budget package to run from 2021, ex-communist states urged wealthier neighbors to plug a nearly 10 percent annual revenue gap being left by Britain, while the Dutch led a group of small, rich countries refusing to chip in any more to the EU. Germany and France, the biggest economies and the bloc's driving duo as Britain prepares to leave in March 2019, renewed offers to increase their own contributions, though both set out conditions for that, including new priorities and less waste. Underlining…

U.S. stocks rallied on Friday, lifted by gains in technology stocks and a retreat in Treasury yields as the Federal Reserve eased concerns about the path of interest rate hikes this year. The U.S. central bank, looking past the recent stock market sell-off and inflation concerns, said it expected economic growth to remain steady and saw no serious risks on the horizon that might pause its planned pace of rate hikes. Investors largely expect the Fed to raise rates three times this year, beginning with its next meeting in March, the first under new Chair Jerome Powell. Traders currently see a 95.5 percent chance of a quarter-percentage-point hike next month, according to Thomson Reuters data. "Certainly bond yields pulling back today is helpful for stocks, at least for the short…

U.S. President Donald Trump has called a meeting early next week with key senators and Cabinet officials to discuss potential changes to biofuels policy, which is coming under increasing pressure after a Pennsylvania refiner blamed the regulation for its bankruptcy, according to four sources familiar with the matter. The meeting comes as the oil industry and corn lobby clash over the future of the Renewable Fuel Standard (RFS), a decade-old regulation that requires refiners to cover the cost of mixing biofuels such as corn-based ethanol into their fuel. Trump’s engagement reflects the high political stakes of protecting jobs in a key electoral state. Oil refiner Philadelphia Energy Solutions (PES), which employs more than 1,000 people in Philadelphia, declared bankruptcy last month and blamed the regulation for its demise. Oil, farm…

The U.S. Defense Department supports moves by the Commerce Department to impose tariffs on steel and aluminum imports, although it would prefer a system of targeted tariffs rather than a global quota or a global tariff. The Commerce Department on Feb. 16 recommended that President Donald Trump impose steep curbs on steel imports from China and other countries and offered the three options to the president, who has yet to make a decision. The Defense Department said in a statement issued Thursday that it was concerned about the potential impact on U.S. allies of the proposed measures and said that was the reason it preferred targeted tariffs. It recommended that while the tariffs on steel should proceed, the administration should wait before pressing ahead with the measures on aluminum. “The…

Saudi Arabia will stage more than 5,000 shows, festivals and concerts in 2018, double the number of last year, as it tries to shake off its conservative image in a drive to keep tourist dollars at home and lure in visitors. The state wants to capture up to a quarter of the $20 billion currently spent overseas every year by Saudis seeking entertainment, lifting a ban on cinemas and putting on shows by Western artists. U.S. rapper Nelly performed in Jeddah in December, albeit to a men-only crowd, and Greek musician Yanni played to a mixed-gender audience. The gradual relaxing of gender segregation risks causing a backlash from religious conservatives, but public objections to a wider program of reforms have been more muted in recent months after several critics were…

General Motors has proposed $2.8 billion of fresh investment into its South Korean operations over the 10 years as part of its plan to restructure the embattled unit, a South Korean senior government official said on Wednesday. The offer comes as the Detroit carmaker and the South Korean government discuss restructuring options at loss-making GM Korea, one of GM's largest offshore operations. The official with direct knowledge of the matter said GM had also asked South Korea to inject funds into GM Korea in which the country's state bank also holds a stake. However, the official added that a close look into GM's proposal was necessary to determine whether the investment plan was sufficient to rescue the unit, which directly employs some 16,000 workers. "We need to have a closer…

South Korea's cryptocurrency industry is anticipating much better times as the market regulator changes tack from its tough stance on the virtual coin trade, promising instead to help promote blockchain technology. The regulator said Tuesday that it hopes to see South Korea — which has become a hub for cryptocurrency trade — normalize the virtual coin business in a self-regulatory environment. "The whole world is now framing the outline [for cryptocurrency] and therefore [the government] should rather work more on normalization than increasing regulation," Choe Heung-sik, chief of South Korea's Finance Supervisory Service (FSS), told reporters. FSS has been leading the government's regulation of cryptocurrency trading as part of a task force. Cryptocurrency operators have drawn a new optimism from Choe's comments, seeing them clearly indicating the government's cooperation in…

South Korea said on Wednesday it is signing free trade agreements with five Central American nations aimed at boosting market access for the Korean auto sector and electronics makers. Trade minister Kim Hyun-chong will meet representatives from Costa Rica, El Salvador, Honduras, Nicaragua and Panama in Seoul on Wednesday to sign five separate bilateral pacts which will eliminate duties on about 95 percent of traded goods and services, Korea’s trade ministry said in an e-mailed statement. The agreements are subject to parliamentary approval in each country, and is likely to take effect at different times depending on the ratification process. The five trade pacts open South Korea to key Central American countries after its deals with the U.S., the European Union and China helped boost exports. “The South Korea-Central America…

Through medication and narcotics smuggling, ivory and people trafficking, oil theft and piracy, Africa is, by conservative estimates, losing about $50 billion a year in illicit financial flows — more, in fact, than it receives in official development assistance.  A report by the Paris-based Organization for Economic Cooperation and Development offers a bigger look at the illegal economy behind the losses and how African and richer nations can fight it. The OECD report zooms in on West Africa, and one sector in particular stands out. Catherine Anderson, who heads governance issues as the OECD, said 80 percent of illicit financial flows from West Africa are generated from the theft of natural resouces, principally oil. But West African countries aren't the only ones losing out from illicit flows, Anderson said. So are developed nations. Migrant trafficking,…

When Markus Rohner flew into Cape Town's airport this month, he found an unexpected line at the men's washroom. With the city facing an unprecedented water shortage, airport authorities had turned off all the sink taps but one, leaving visitors to wait in line to wash their hands, under the watchful eye of a bathroom attendant. "In Johannesburg, there were a lot of jokes about the situation. People were saying to each other: 'Let's go to Cape Town for a dirty weekend,'" said Rohner, who visited both cities recently for his job as a sales and marketing director for a Swiss machinery manufacturer. Cape Town, which is battling to keep its taps flowing as reservoirs run close to dry following a three-year drought, declared a national disaster this month. Without…

Standing by a towering equatorial forest, Jean-Noel Kouame’s new breeze-block house may be beyond the reach of Ivory Coast’s power grid, but it’s perfectly located for solar power entrepreneurs. Buoyed by success in East Africa, off-grid solar power startups are pouring into West Africa, offering pay-as-you-go kits in a race to claim tens of millions of customers who lack reliable access to electricity. At least 11 companies, including leading East African players such as Greenlight Planet, d.light, Off-Grid Electric (OGE), M-KOPE Solar, Fenix International and BBOXX, have moved into the region, most within the last two years. With a potential market worth billions of dollars, major European energy companies such as French utilities EDF and Engie are taking notice too. “It’s important to be there now, because the race has…

For the first time in Ukraine's history, U.S. anthracite is helping to keep the lights on and the heating going this winter following a deal that has also helped to warm Kyiv’s relations with President Donald Trump. The Ukrainian state-owned company that imported the coal told Reuters that the deal made commercial sense. But it was also politically expedient, according to a person involved in the talks on the agreement and power industry insiders. On Trump’s side it provided much-needed orders for a coal-producing region of the United States which was a vital constituency in his 2016 presidential election victory. On the Ukrainian side the deal helped to win favor with the White House, whose support Kyiv needs in its conflict with Russia, as well as opening up a new…

Brazil's political affairs minister Carlos Marun said on Monday that passage of a bill to overhaul the country's costly social security system has effectively ground to a halt in Congress and would become a campaign issue in this year's election. Marun spoke to reporters after the head of the Senate, Eunicio Oliveira, said the federal government's military intervention in Rio de Janeiro would, by the rules of the country's constitution, block any vote on pension reform or any other measure requiring a constitutional amendment. But Marun acknowledged what President Michel Temer's critics believe is the real reason for holding up a pension vote: the unpopular bill never gained enough support and the government faced certain defeat. "We don't have the votes. I couldn't guarantee we would have the votes by…