Category: Business

U.S. President Donald Trump signed a presidential memorandum on Thursday initiating actions to consider imposing tariffs on a long list of nearly 1,300 Chinese imported products worth about $60 billion. The move could limit China's ability to invest in the U.S. technology industry, setting the stage for a possible trade war with Beijing. The decision to take action is a result of an investigation conducted by the U.S. trade representative to determine whether Beijing's trade practices may be "unreasonable or discriminatory" and may be "harming American intellectual property rights, innovation or technology development." After a seven-month investigation, the USTR's office found the policies were in violation. At the signing ceremony, Trump said, "We have a tremendous intellectual property theft going on." He said the U.S. wants reciprocal trade and tariff deals…

Stocks plunged Thursday after the Trump administration slapped sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world's largest economies would escalate. The planned sanctions include tariffs on $48 billion worth of Chinese imports as well as restrictions on Chinese investments. Trump said he's taking those steps in response to theft of American technology, and the Chinese government said it will defend itself. Investors are worried that trade tensions would hurt U.S. companies and harm the world economy. On Thursday they fled stocks and bought bonds, which sent bond prices higher and yields lower. With interest rates falling, banks took some of the worst losses. Technology and industrial companies, basic materials makers and health…

U.S. Federal Reserve officials voted to raise the central bank's benchmark interest rate by a quarter of a percent this week, signaling perhaps three or more rate hikes this year as economic conditions improve. But as Mil Arcega reports, rising rates mean higher borrowing costs for consumers, many who have yet to see a significant increase in wages. ...

U.S. President Donald Trump is expected at any time to fire a salvo directly at China in what could escalate into a full-scale trade war between the world’s two largest economies. Trade actions against China, partly in response to the theft and improper transfer of American technology to Chinese companies, are expected to be announced by Trump as soon as Thursday. His schedule includes a midday signing of a memorandum “targeting China’s economic aggression.” On the anticipated eve of the measures, U.S. officials spoke to reporters about their monthslong investigation under Section 301 of the Trade Act of 1974 of Beijing’s trade practices. China has long been considered by many in the international community to have contravened fundamental principles of global trade, despite joining the World Trade Organization in 2001.…

U.S. congressional leaders have reached a deal on a $1.3 trillion spending bill as a budget deadline looms. Lawmakers now have until midnight Friday to approve it and prevent the year's third government shutdown. Passage of the massive bipartisan effort seems certain. The bill, which will keep the government funded until the end of September, has President Donald Trump's support, the White House said in a statement released Wednesday. "The president had a discussion with (House) Speaker (Paul) Ryan and (Senate) Leader (Mitch) McConnell, where they talked about their shared priorities secured in the omnibus spending bill," said White House Press Secretary Sarah Huckabee Sanders. Deadline late Friday The bill will give Trump a huge budget increase for the military, including a 2.4 percent pay raise for military personnel. It…

When Nestle executive Stephan Canz attended the German school in Nairobi in the early 1980s, it was surrounded by lush coffee farms. Today, the trees have long since been uprooted and replaced by a shopping mall and upmarket homes, driving a sharp drop in production of Kenya's premium beans. "The coffee has disappeared," said Canz, who co-manages Swiss-based Nestle's partnerships with coffee farmers globally. "You have to go almost to the slopes of Mount Kenya to find coffee." Kenya accounts for just 1 percent of the global crop, but its high-quality arabica beans are sought-after for blending with other varieties. Alarmed by a steep drop in the country's production, Nestle, which buys 10 percent of the world's coffee and has the leading packaged coffee business, is working with farmers to…

French commuters face major train service disruptions on Thursday due to an unexpectedly large walkout by railway workers angry at the government's plans to shake up the state-owned and highly indebted SNCF rail company. Labor unions said last week they would launch rolling strikes in early April, but France's transport minister said many were planning to join a wider day of public service protests on Thursday, reducing rail services by 50 percent. "There will ultimately be serious disruption tomorrow," Transport Minister Elisabeth Borne said. Unions are on a collision course with the government over its plans for the biggest shake-up of SNCF (Societe Nationale des Chemins de Fer) since the nationalization of the railways in the 1930s. Among the government's plans are the trimming of benefits received by SNCF's 260,000…

Peter G. Peterson, a billionaire and business executive who became one of the most prominent voices to argue for entitlement reform and reducing the U.S. national debt, died of natural causes early Tuesday, his family said. He was 91. Born in the small town of Kearney, Nebraska, to Greek immigrants, Peterson was CEO of two major U.S. companies and co-founded one of the world’s largest private-equity firms. He was a national figure in business by the early 1960s, serving as chairman and CEO of Bell and Howell, one of the largest manufacturers of movie cameras at the time.   He left Bell and Howell to work for the Nixon administration in the early 1970s, eventually serving as secretary of commerce from 1972 to 1973. Lehman Brothers  He took over as…

An Egyptian court on Tuesday ordered authorities to revoke the operating licenses of the Uber and Careem ride-hailing services and block their mobile apps and software. The government and the companies are expected to appeal the administrative court verdict, which would prevent it from being implemented until a higher court weighs in. The administrative court in Cairo ruled that it is illegal to use private vehicles as taxis. Both companies provide smartphone applications that connect passengers with drivers who work as independent contractors. In a brief statement posted on its Facebook account, Careem said it "hasn't been notified officially to stop its operations" and was operating normally. There was no immediate comment from Uber. Uber was founded in 2010 in San Francisco, and operates in more than 600 cities across…

Nearly 50 countries expressed concern on Tuesday about the "serious threat" to the World Trade Organization posed by unilateral trade actions, a pointed reference to U.S. import tariffs that have caused a global outcry. Delivering concluding remarks after a two-day informal meeting of the WTO members in New Delhi, Indian Trade Minister Suresh Prabhu did not refer to the United States by name. He said members expressed deep concern over the "serious threat" posed to the credibility of the WTO, particularly on its principle of "non-discrimination" following the cycle of recent unilateral trade measures. "In some interventions, the need for WTO members taking urgent and coordinated action to address the underlying issues was highlighted," Prabhu said. "It was recognized by almost all the participants that it is the collective responsibility…

The European Union said on Tuesday that the right of citizens from poorer member states to work in richer ones on a low salary would be limited to 18 months under a reform of the bloc's labor laws sought by France. The new law, promoted by French President Emmanuel Macron and backed by Luxembourg, Belgium and the Netherlands, among others, would rein in current rules on the so-called posting of workers, which richer EU states say undercut their labor markets. Poorer EU states from Spain to Poland have opposed the change, saying their citizens should be allowed to work in a wealthier state on a lower salary than a worker from the host country under the bloc's competition rules. The deal, which had been tentatively agreed earlier this month, also…

A New York City councilman and a tenants' rights group said they will investigate allegations that the real estate company formerly controlled by Jared Kushner, a presidential adviser and President Donald Trump's son-in-law, falsified building permits. In allegations first uncovered by The Associated Press, the Kushner Companies is accused of submitting false statements between 2013 and 2016, stating it had no rent-controlled apartments in buildings it owned when it actually had hundreds. Rent-controlled apartments come under tighter oversight from city officials when there is construction work or renovations in buildings.  The councilman and tenants' rights group charged the Kushner Companies of lying about rent-control in order to harass and force out tenants paying low rents so it can move in those who would pay more. They also blame city officials…

Colombia proposed on Monday that the International Monetary Fund provide assistance to help several hundred thousand Venezuelan refugees who have fled an economic and political crisis to  neighboring countries, officials at the G20 summit said. The proposal was discussed at a meeting on Venezuela by leading finance ministers from the Western Hemisphere, the European Union and Japan, including U.S. Treasury Secretary Steven Mnuchin. "The consensus is that the situation is extremely negative and we must by any means possible try to influence a solution to the problem and a change in Venezuela's situation, mainly from the humanitarian point of view," Brazilian Finance Minister Henrique Meirelles told reporters. The fund, to be decided by the IMF next month, would only be used outside Venezuela and not by socialist President Nicolas Maduro's…

The Trump administration on Monday banned all use by Americans of Venezuelan cryptocurrency, saying that its introduction is intended to skirt U.S. sanctions. In a separate move, the administration also slapped sanctions on four current and former senior Venezuelan officials accused of corruption and mismanagement.   In an executive order that took effect immediately upon its issuance, President Donald Trump declared illegal all U.S. transactions related to Venezuelan digital currencies, coins or tokens. The prohibition applies to all people and companies subject to U.S. jurisdiction. The move follows the introduction last month of a Venezuelan cryptocurrency known as the "petro," for which the government says it has received investment commitments of $5 billion.   In the executive order, Trump said it was an "attempt to circumvent U.S. sanctions" imposed for…

Indonesian president Joko "Jokowi" Widodo has instructed ministers to keep fuel prices stable over the next two years, said Energy Minister Ignasius Jonan, which would, in effect, continue a controversial fuel subsidy scheme that analysts say has negatively impacted growth and the environment.  The Ministry said it would increase the per-liter subsidy for diesel and regular petrol from 500 Indonesian rupiah (about $0.35) to 700-1000 rupiah ($0.49-$0.70) while keeping pump prices unchanged. The measure indicates how protectionist measures have been hard to shake for the initially reform-minded Jokowi, who made several inroads against subsidies in 2014 and 2015.  Meanwhile, the rupiah continues to sink in the global market, due in part to Indonesia's widening current-account deficit. On Monday, Credit Suisse said "the rupiah is among the most vulnerable emerging market currencies…

Air bags in some Hyundai and Kia cars failed to inflate in crashes and four people are dead. Now the U.S. government’s road safety agency wants to know why. The National Highway Traffic Safety Administration says it’s investigating problems that affect an estimated 425,000 cars made by the Korean automakers. The agency also is looking into whether the same problem could happen in vehicles made by other companies. In documents posted on its website Saturday , the safety agency says the probe covers 2011 Hyundai Sonata midsize cars and 2012 and 2013 Kia Forte compacts. The agency says it has reports of six front-end crashes with significant damage to the cars. Four people died and six were injured. Electrical circuits  The problem has been traced to electrical circuit shorts in…

The pot revolution is alive and well in the state of Colorado where recreational cannabis has been legal since 2014. While the full impact of legal marijuana in Colorado has yet to be determined, what is clear is that cannabis has become a giant moneymaker for the state. And as Paula Vargas reports from Denver, women entrepreneurs — weed warriors, as some have called them — are leading the way. ...

Britain should consider a limited extension to its exit process from the European Union if needed to ensure details of its future relationship with the bloc are agreed, a committee of lawmakers said in a report. Prime Minister Theresa May formally notified the EU of Britain's intention to leave by triggering Article 50 of the membership treaty on March 29, 2017, setting the clock ticking on a two-year exit process. Britain has said it wants to have the basis of a trade deal set out with the EU by October, but the Exiting the EU Committee said in a report published Sunday that deadline would be tight. "In the short time that remains, it is difficult to see how it will be possible to negotiate a full, bespoke trade and market access agreement, along with a range of other agreements, including…

A former midlevel employee of German industrial giant Siemens pleaded guilty Thursday of conspiring to pay tens of millions of dollars to Argentine officials to win a $1 billion contract to create national ID cards. Eberhard Reichart, 78, who worked for Siemens from 1964 to 2001, appeared in federal court in New York to plead guilty to one count of conspiring to violate the anti-bribery Foreign Corrupt Practices Act and to commit wire fraud. Reichart was arraigned last December in a three-count indictment filed in December 2011 charging him and seven other Siemens executives and agents with participating in the decadelong scheme, the Justice Department said Thursday.  The men were accused of conspiring to pay more than $100 million in bribes to high-level Argentine officials to win the contract in…

White House trade adviser Peter Navarro said Thursday that President Donald Trump would soon consider new punitive measures against China for its alleged “theft” of intellectual property. U.S. officials, according to news accounts, are considering imposing as much as $60 billion in annual tariffs against Chinese information technology, telecommunications and consumer exports to the U.S. in an effort to trim its chronic annual trade deficit with Beijing by $100 billion. Last year, the U.S. says it imported Chinese goods worth $375 billion more than it exported to China. “In the coming weeks, President Trump is going to have on his desk some recommendations,” Navarro told CNBC. “This will be one of the many steps the president is going to courageously take in order to address unfair trade practices. “I don’t…

HSBC will reveal a gender pay gap of 59 percent at its main U.K. banking operation, the biggest yet disclosed by a British bank, according to a copy of the lender's report on the subject seen by Reuters on Thursday ahead of its publication. The bank will also disclose a mean gender bonus gap of 86 percent at HSBC Bank Plc, which is the biggest of the lender's seven entities in Britain and employs 23,507 people. A spokeswoman for the bank confirmed the contents of the report. The gender pay gap is the biggest yet reported by a British financial firm, according to government data, with some firms yet to provide figures ahead of an April deadline set by Prime Minister Theresa May last year. Almost 50 years since the…

Cooking is Chris Spear's passion. He's been professionally cooking since he was 16. Over the years, he worked for big restaurants and reached a point where he had almost 100 employees reporting to him. That's when he missed flexibility and wanted to be more creative. So, he quit working for restaurants and founded his own catering company, Perfect Little Bites in Frederick, Maryland. "Not that having your business is easy, but I want to have the flexibility to say, 'It's Valentine's Day, and it's more important to me to stay home with my wife,' or to be home cooking for someone. I really wanted something that I felt was mine," Spear explained. Spending long hours in the kitchen doesn't tire Spear, but he had often been concerned that becoming an independent…

President Donald Trump freestyled with the facts when talking trade with Canadian Prime Minister Justin Trudeau. The Republican described the discussion during a fundraising speech in St. Louis on Wednesday.   According to audio obtained by The Washington Post, Trump insisted that the United States runs a trade deficit with Canada.   Trump said Trudeau told him there was no trade deficit. Trump said he replied, "'Wrong, Justin, you do.' I didn't even know. ... I had no idea. I just said, 'You're wrong.'"   Trump claimed the figures don't include timber and energy.   However, the Office of the United States Trade Representative says the United States has a trade surplus with Canada. ...

President Donald Trump's recently proposed tariffs on steel and aluminum have spurred a hot debate in the U.S. that doesn't adhere to traditional party lines. Is the administration's move a boon to American workers or the beginning of a trade war? VOA's Plugged In with Greta Van Susteren examines the pros, cons, impact and history of tariffs on goods imported to the United States. VOA's Joan DeLuca reports: ...

U.S. Trade Representative Robert Lighthizer said Wednesday that the United States would challenge Indian government export subsidies because they hurt American workers and manufacturers. Lighthizer said he had requested "dispute settlement consultations" with the Indian government at the World Trade Organization because the subsidies allow India to sell goods at lower prices. He said his office "will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO." The announcement is the latest step in President Donald Trump's trade offensive.The White House has announced tariffs on imported steel and aluminum as well as on imports of solar panels and washing machines. Lighthizer's office said India offers benefits valued at $7 billion annually…

General Motors, Fiat Chrysler, Volkswagen and Mercedes all knew of problems with dangerous exploding Takata air bag inflators years before issuing recalls, according to three class actions filed Wednesday with the federal court in Miami. The lawsuits cite company documents obtained through previous legal actions against other automakers over faulty Takata inflators. The plaintiffs allege that automakers were informed of inflator defects during tests but delayed taking action. Allegations against GM are among the most serious. Takata documents showed that GM employees expressed concerns about inflators rupturing as early as 2003. Messages were left Wednesday seeking comment from GM, VW and Mercedes. Fiat Chrysler declined comment, saying it had not been served with the lawsuit. Takata uses the chemical ammonium nitrate to create small explosions to inflate air bags. But…

U.S. President Donald Trump is naming Larry Kudlow, a longtime conservative economic analyst and television business show commentator, as his new top White House economic adviser. The 70-year-old Kudlow told news media he accepted Trump's offer Wednesday to become director of the White House's National Economic Council. Reports say a formal announcement could come Thursday. He will replace former Wall Street financier Gary Cohn, who resigned last week after breaking with President Trump on trade policy. Cohn had lost an internal debate, among Trump advisers, aimed at convincing the president not to impose steep new tariffs on steel and aluminum imports.   Kudlow, who was an informal economic adviser to Trump during the first year of his presidency, also opposed Trump's imposition of the 25 percent levy on steel and…

Behind the U.S. move to block Singapore-based Broadcom's hostile bid for U.S. chipmaker Qualcomm lies a new global struggle for influence over next-generation communications technology — and fears that whoever takes the lead could exploit that advantage for economic gain, theft and espionage. In the Broadcom-Qualcomm deal, the focus is on so-called "5G" wireless technology, which promises data speeds that rival those of landline broadband now. Its proponents insist that 5G, the next step up from the "4G" networks that now serve most smartphones, will become a critical part of the infrastructure powering everything from self-driving cars to the connected home. 5G remains in the early stages of development. Companies including Qualcomm, based in San Diego, and China's Huawei have been investing heavily to stake their claim in the underlying…