Category: Business

Latvia's ABLV Bank sought emergency support Monday after U.S. officials accused it of helping breach North Korean sanctions while the country's central bank chief faced bribery allegations, turning up the spotlight on its financial system. The Baltic country, which is a member of the euro zone and shares a border with Russia, has come under increasing scrutiny recently as a conduit for illicit financial activities. Last year, two Latvian banks were fined more than 2.8 million euros ($3.26 million) for allowing clients to violate sanctions imposed by the European Union and United Nations on North Korea. Three others received smaller fines. ABLV said it had sought temporary liquidity support from the central bank after depositors withdrew 600 million euros, about 22 percent of total deposits, following a warning by the…

Latvian Prime Minister Maris Kucinskis assured the country and Europe "there is no sign of danger," after anti-corruption police arrested the head of the Latvian central bank Saturday. "For now, neither I, nor any other official, has any reason to interfere with the work of the Corruption Prevention Bureau," Kucinskis said. Neither Kucinskis nor the police gave any reason why central bank governor Ilmars Rimsevics was arrested. But a police spokeswoman said there will be an announcement "as soon as possible." The Latvian government plans an emergency meeting Monday. Along with heading the Baltic nation's central bank, Rimsevics is also one of 19 governors on the European Central Bank. The U.S. Treasury Department has proposed sanctions against a major Latvian bank for alleged money laundering linked to North Korea's weapons…

The Commerce Department is urging President Donald Trump to impose tariffs or quotas on aluminum and steel imports from China and other countries. Unveiling the recommendations Friday, Secretary Wilbur Ross said in the case of both industries “the imports threaten to impair our national security.” As an example, Ross said only one U.S. company now produces a high-quality aluminum alloy needed for military aircraft. Raise US capacity The measures are intended to raise U.S. production of aluminum and steel to 80 percent of industrial capacity. Currently U.S. steel plants are running at 73 percent of capacity and aluminum plants at 48 percent. Ross emphasized that the president would have the final say, including on whether to exclude certain countries, such as NATO allies, from any actions. China’s Commerce Ministry said…

The uncovering of one of the biggest frauds at a state-owned bank in India has rocked the country's financial sector and brought scrutiny to a billionaire jeweler who counted Hollywood stars among his customers. The nearly $1.8 billion fraud reported at India's second-largest state-owned bank is a blow to the government's efforts to revive the state-owned banking sector, which is already staggering under a mountain of bad debt. Nirav Modi, whose jewelry boutiques span high-end streets from Hong Kong to London to New York and whose diamonds have been worn by Hollywood stars such as Dakota Johnson and Kate Winslet, is being investigated for the fraudulent transactions. His brand ambassador is Bollywood star Priyanka Chopra, who has also carved a niche in the United States. The fraud, which officials say…

Iraq's prime minister was in Kuwait this week, selling his country as a promising investment opportunity. After years of war and sectarian violence, Iraq is moving toward stability and wants to attract the private sector to help fund its $88 billion reconstruction and recovery effort. From the Kuwaiti capital, VOA's Margaret Besheer reports investors are interested. ...

Top U.S. and Mexican officials on Thursday expressed cautious optimism that the North American Free Trade Agreement will be renegotiated, speaking ahead of the next round of trade talks later this month. Asked on local television whether it was more likely the $1.2 trillion trilateral trade pact would survive or die, Mexico's Foreign Minister Luis Videgaray said there was cause for optimism, though Mexico should be prepared for all eventualities. "We should be prepared for a future with or without NAFTA," he said. In Washington, U.S. Treasury Secretary Steven Mnuchin said it was a priority for the Trump administration to renegotiate NAFTA, declining to speculate on the consequences if the United States withdraws from talks. The seventh round of negotiations in Mexico City will take place Feb. 25 to March…

Shares in European plane maker Airbus flew higher on Thursday after the company reported improved earnings and was more upbeat about the future following problems to several of its key aircraft programs.   The company said that it surged to a net profit of 1 billion euros ($1.25 billion) in the fourth quarter, from a loss of 816 million euros a year earlier, while revenue was stable around 23.8 billion euros. Airbus delivered a record 718 aircraft last year and expects that figure to rise further in 2018, to 800.   CEO Tom Enders credited "very good operational performance, especially in the last quarter."   Shares in the company jumped about 10 percent on Thursday in Paris. Investors seem optimistic that the company is putting behind it the worst of…

Is that love in the air or french fries? White Castle, KFC and other fast-food restaurants are trying to lure sweethearts for Valentine's Day. It's an attempt to capture a bit of the $3.7 billion that the National Retail Federation expects Americans to spend on a night out for the holiday. Restaurant analyst John Gordon at Pacific Management Consulting Group says it appeals to people who don't want to splurge on a pricier restaurant. And some customers enjoy it ironically. White Castle, which has been offering Valentine's Day reservations for nearly 30 years, expects to surpass the 28,000 people it served last year. Diners at the chain known for its sliders get tableside service and can sip on its limited chocolate and strawberry smoothie. KFC is handing out scratch-and-sniff Valentine's…

The U.S. on Wednesday reported its biggest increase in consumer prices in a year, pushing stocks lower in early trading. The consumer price index, which follows the costs of household goods and services, advanced by a half percentage point in January, up from two-tenths of a point in December. The January increase pushed the year-over-year inflation rate up by 2.1 percent. It was the same 12-month rate recorded in December, increasing fears among investors that firming inflation, along with increasing wages paid to American workers, could lead policymakers at the country's central bank, the Federal Reserve, to boost interest rates at a faster pace. The Labor Department said consumer prices, minus the volatile changes in food and energy costs, rose three-tenths of a percentage point in January, the largest increase…

Electric powered bicycles, known as “e-bikes,” are a common sight among New York’s immigrant delivery workers, who consider the bikes a necessity to make a living wage. The problem is, they’re illegal to operate in the city, creating a dilemma for these immigrants who feel they have no alternative employment options. VOA’s Ramon Taylor and Ye Yuan report. ...

As a student, Leah Wangari imagined a glamorous life as a globe-trotting flight attendant, not toiling in dirt and manure.   Born and raised in Kenya's skyscraper-filled capital, Nairobi, the 28-year-old said farming had been the last thing on her mind. The decision to drop agriculture classes haunted her later, when her efforts in agribusiness investing while running a fashion venture failed.   Clueless, she made her way to an unusual new reality TV show, the first of its kind in Africa. "Don't Lose the Plot," backed by the U.S. government, trains contestants from Kenya and neighboring Tanzania and gives them plots to cultivate, with a $10,000 prize for the most productive. The goal: Prove to young people that agriculture can be fun and profitable.   "Being in reality TV…

Brasilia - It is one of the most expensive areas in the Brazilian capital - and one of the most sacred. A plot in downtown Brasilia - known as Santuário dos Pajés or Shrine of the Shamans - is at the center of a conflict between indigenous people hoping to preserve their traditional way of life and developers eager to build an upmarket neighborhood. While property is often contested in Brazil, it is usually waged over remote jungles or distant mountains - vast swaths of land that can be mined or farmed for profit. This conflict centers on Brasilia's urban power base. Just minutes from the National Congress, the Shrine of the Shamans - with its unpaved roads, forest and small houses - sits surrounded by lavish high rises. Indigenous…

In her village of Komalia, the fog swirls so thick at 7 a.m. that Akansha Singh can see no more than 15 meters ahead. But the 20-year-old is already cycling to her workplace, nine kilometers away. Halfway there she stops for two hours at a computer training center, where she's learning internet skills. Then she's off again, and by 10 a.m. reaches the small garment manufacturing plant where she stitches women's clothing for high-end brands on state-of-the-art electric sewing machines. Solar energy powers most of her day — the computer training center and the 25-woman garment factory run on solar mini-grid electricity — and clean power has given her personal choice as well, she said. If the mini-grid system had not been put in place, Singh — a recent college…

Valentine's Day is probably the most romantic holiday. In the United States, with people sending 190 million Valentine's Day cards and spending around $100 per person on gifts. Instead of going out for a restaurant dinner for the holiday, a new idea is taking hold. These days more couples are planning to do something together. Classes like painting and cooking are a popular. Mariia Prus checked out the options for couples at one of Washington's fanciest hotels. ...

General Motors said Tuesday it will close an underutilized factory in Gunsan, South Korea, by the end of May as part of a restructuring of its operations.   The move is a setback for the administration of President Moon Jae-in, who has made jobs and wages a priority.   A GM statement said Monday the company has proposed to its labor union and other stakeholders a plan involving further investments in South Korea that would help save jobs.   "As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonstrate significant progress by the end of February, when GM will make important decisions on next steps," Barry Engle, GM executive vice president and president of GM International, said in the statement.  …

Companies selling some of the most lucrative prescription painkillers funneled millions of dollars to advocacy groups that in turn promoted the medications' use, according to a report released Monday by a U.S. senator. The investigation by Missouri's Senator Claire McCaskill sheds light on the opioid industry's ability to shape public opinion and raises questions about its role in an overdose epidemic that has claimed hundreds of thousands of American lives. Representatives of some of the drugmakers named in the report said they did not set conditions on how the money was to be spent or force the groups to advocate for their painkillers. The report from McCaskill, ranking Democrat on the Senate's homeland security committee, examines advocacy funding by the makers of the top five opioid painkillers by worldwide sales…

It's a long way from Abidjan in the Ivory Coast to the interstate highway near Chicago where trucker Mamoudou Diawara relishes the advantages that come with traveling the open road. "Trucking is the freedom," Diawara says. "It is the freedom and the money is right. I am not going to lie to you. You make more than the average Joe." Increasing demand for long-haul truckers in the United States is drawing more African immigrants like Diawara onto America's roads. He says truckers in the United States can make as much as $200,000 a year. The sometimes dangerous work involves long hours, but it's a chance to make a new life in a new country on his terms. "You got to get the goods to the people," he says. "This is…

President Donald Trump is proposing a $4 trillion-plus budget for next year that projects a $1 trillion or so federal deficit and — unlike the plan he released last year — never comes close to promising a balanced federal ledger even after 10 years. And that's before last week's $300 billion budget pact is added this year and next, showering both the Pentagon and domestic agencies with big increases.   The spending spree, along with last year's tax cuts, has the deficit moving sharply higher with Republicans in control of Washington.   The original plan was for Trump's new budget to slash domestic agencies even further than last year's proposal, but instead it will land in Congress three days after he signed a two-year spending agreement that wholly rewrites both…

The invention of a machine that removes pumpkin seeds from the shell and sorts them is being celebrated in Cameroon as traders hope to boost production of the commodity in the Central African Country. Mariama Diallo reports. ...

Federal investigators are still looking at how CSX railway crews routed an Amtrak train into a parked freight train in Cayce, South Carolina, last weekend. But even if CSX should bear sole responsibility for the accident, Amtrak will likely end up paying crash victims’ legal claims with public money. Amtrak pays for accidents it didn’t cause because of secretive agreements negotiated between the passenger rail company, which receives more than $1 billion annually in federal subsidies, and the private railroads, which own 97 percent of the tracks on which Amtrak travels. Both Amtrak and freight railroads that own the tracks fight to keep those contracts secret in legal proceedings. But whatever the precise legal language, plaintiffs’ lawyers and former Amtrak officials say Amtrak generally bears the full cost of damages…

Increasing demand for long-haul truckers in the United States is drawing more African immigrants onto America's roads. VOA's Arzouma Kompaoré hitched a ride with African truckers whose routes to success stretch across the United States. ...

There are growing fears that Britain could be headed for a so-called cliff-edge exit from the European Union, as big differences remain between Brussels and London over the shape of any deal. It comes as Japan warns its businesses may pull out of Britain if they face higher costs after Brexit. A leaked government analysis suggests that economic growth in Britain will decline by up to 8 percent after it leaves the bloc. Henry Ridgwell reports from London. ...

OxyContin maker Purdue Pharma LP said Saturday that it has cut its sales force in half and will stop promoting opioids to physicians, following widespread criticism of the ways that drugmakers market addictive painkillers. The drugmaker said it will inform doctors Monday that its sales representatives will no longer be visiting physician offices to discuss its opioid products. It will now have about 200 sales representatives, Purdue said. “We have restructured and significantly reduced our commercial operation and will no longer be promoting opioids to prescribers,” the Stamford, Connecticut-based company said in a statement. New marketing push Doctors with opioid-related questions will be directed to its medical affairs department. Its sales representatives will now focus on Symproic, a drug for treating opioid-induced constipation, and other potential non-opioid products, Purdue said.…

It's been a tough week on Wall Street. The Dow Jones Industrial average closed more than 300 points higher Friday, after plunging more than 1,000 points the day before, the second steepest decline in history. The biggest dive happened Monday when the blue chip index fell more than 1,100 points. It's enough to make even the most experienced investors swoon. But does this mean the end of the nine-year bull market? Is it time to worry? Mil Arcega spoke with economic analysts to get some answers. ...

U.S. stocks slumped Friday afternoon after opening higher in the last trading session of a turbulent week in which the Dow Jones industrial average and the Standard & Poor's 500 Index plunged into correction territory for the first time in two years. The Dow, the more broad-based S&P 500 and the technology-laden NASDAQ composite were all about one percent lower in afternoon trading. Earlier Friday, global stock indexes closed out the week in negative territory, deepening the weeklong sell-off. France's CAC 40 Index fell 1.2 percent, Britain's FTSE 100 Index lost seven-tenths of one percent and Germany's DAX finished 1.2 percent lower. Asian benchmarks fell more sharply. China's Shanghai Composite Index plummeted 4 percent, Tokyo's Nikkei 225 retreated 2.3 percent and Hong Kong's Hang Seng Index lost just over 3…

Kenya's cut-flower industry has blossomed since the 1980s, and now holds the biggest market share for exports to Europe. Kenya's flower producers are hoping direct flights set to open between Nairobi and New York City could help them put down roots in a new market — the United States. On the cutting floor of a factory in Naivasha, about a hundred workers dressed in red smocks stand at sorting tables, some with blades at the ready. The remnants of their work lay scattered about on the gray cement floor.  Naivasha is Kenya's floriculture heartland and workers at Van den Berg Kenya are trimming, packing and refrigerating bundles of roses.  With Valentine's Day just around the corner, this is the busiest time of year for flower growers in Kenya — the…

U.S. stocks tumbled again Thursday as investors continued to fret about the possibility of rising inflation and higher interest rates.  For the second time in four days, the Dow Jones industrial average sank more than 1,000 points, or 4.2 percent, to end Thursday day at 23,860. The Standard and Poor's Index, the benchmark for many index funds, also shed 100.66 points, or 3.8 percent, to close at 2,581. It last hit that low in mid-November. The two indexes have dropped 10 percent from their all-time highs, set on January 26. That means they are in what is known on Wall Street as a "correction," fueled by fears that a long stretch of low interest rates and tame inflation, which helped driven up stock prices, might be coming to an end. As…

China’s export growth accelerated in January amid mounting trade tension with Washington while imports surged as factories stocked up ahead of the Lunar New Year holiday. Exports rose 11.1 percent compared with a year earlier to $200.5 billion, up from December’s 10.9 percent growth, trade data showed Thursday. Imports surged 36.9 percent to $180.1 billion, up from the previous month’s 4.5 percent. China’s politically sensitive trade surplus with the United States widened by 2.3 percent from a year ago to $21.9 billion, while its global trade gap narrowed by 60 percent to $20.3 billion. “Export growth remained robust in January, indicating steady global demand momentum,” said Louis Kuijs of Oxford Economics in a report. “While we expect the favorable external setting to continue to support China’s exports, rising U.S.-China trade…