Category: Business

U.S. stocks slumped Friday, pulling down the Dow Jones industrial average by more than 650 points and handing the market its worst week in two years. Technology, banks and energy stocks accounted for much of the broad slide. Several major companies, including Exxon Mobil and Google's parent company, Alphabet, sank after reporting weak earnings. Fears of rising inflation sent bond yields higher and contributed to the stock market swoon after the government reported that wages grew last month at the fastest pace in eight years. The sharp drop follows a long period of unprecedented calm in the market. Stocks haven't had a pullback of 10 percent or more in two years, and hit their latest record highs just one week ago. "We've enjoyed low interest rates for so long, we're…

Stocks closed sharply lower in New York on Friday, extending a weeklong slide, as the Dow Jones industrial average plunged more than 600 points.  The drop capped stocks' worst week in two years. The Dow's drop was its biggest in percentage terms since June 2016. Several giant U.S. companies' shares dropped after reporting weak earnings, including Exxon Mobil and Alphabet. Apple and Chevron also fell. Bond yields rose sharply after the government reported the fastest wage growth in eight years, stoking fears of inflation. The Dow fell 665 points, or 2.5 percent, to 25,520. The Standard & Poor's 500 index dropped 59 points, or 2.1 percent, to 2,762. The S&P is down almost 4 percent since hitting a record high a week ago. The Nasdaq was off 144 points, or 2 percent,…

Britain has made clear its desire to be part of China's so-called "One Belt One Road" initiative — a cornerstone of President Xi Jinping's vision to boost Chinese investment and influence across Asia, Europe and Africa. But there are concerns about the financial and humanitarian costs of the vast infrastructure projects being undertaken. British Prime Minister Theresa May recently visited Beijing, leading a delegation of ministers and business leaders in an effort to boost trade after Britain's European Union exit. The two countries signed deals worth $12.7 billion, and May hailed a "golden era" of Sino-British relations. Her ambassador to Beijing, Barbara Woodward, earlier outlined Britain's hopes of cooperating in China's "One Belt One Road" initiative. "The first is, we'd like to collaborate on practical projects," she said. "The second…

With an eye on general elections next year, India has announced several populist measures that include a health insurance program for 500 million people, and billions of dollars for rural development and affordable housing in its annual budget.   Finance Minister Arun Jaitley said the measures aimed at improving “ease of living” for citizens, the vast majority of whom live in rural areas.   The announcements came amid widespread rural distress due to falling crop prices. Several farmers protests, sometimes violent, took place last year. In a country where two thirds of the 1.3 billion people depend on agriculture, there are growing worries the anger in the countryside will pose a challenge for Prime Minister Narendra Modi’s Hindu nationalist government when it seeks reelection next year. Saying "my government is…

When Janet Yellen leaves the Federal Reserve this weekend after four years as chair, her legacy will include having shattered a social barrier: She is the first woman to have led the world's most powerful central bank, a position that carries enormous sway over the global economy.   Yellen will be remembered, too, for her achievements in deftly guiding the Fed's role in the U.S. economy's slow recovery from a crushing financial crisis and recession. She picked up where her predecessor, Ben Bernanke, had left off in nurturing the nation's recuperation from a crisis that nearly toppled the financial system. As Jerome Powell prepares to succeed Yellen as leader of the U.S. central bank, here are five areas in which Yellen's era at the Fed will be remembered:   Crisis…

A new political dawn in Zimbabwe has sparked talk among farmers of land reform and the return of some whites who lost their land and livelihoods to President Robert Mugabe during a 37-year rule that drove the economy to collapse. Mugabe, 93, resigned in November after the army and his ZANU-PF party turned against him, prompting optimism among some of the thousands of white farmers ousted in the early 2000s on the grounds of redressing imbalances from the colonial era. For colonialists seized some of the best agricultural land that remained in the hands of white farmers after independence in 1980 leaving many blacks effectively landless and making land ownership one of Zimbabwe's most sensitive political topics. Now some white landowners hope the post-Mugabe regime may address the land issue,…

Many refugees would like to buy low-carbon stoves and lights but poor access in camps and a lack of funding is forcing them to rely on "dirty and expensive" fuels, a report said Tuesday. Millions of refugees worldwide struggle to access energy for cooking, lighting and communication and often pay high costs for fuels like firewood, which are bad for their health. Yet two-thirds would consider paying for clean cookstoves and more than one-third for solar household products, according to a survey by the Moving Energy Initiative (MEI), a partnership among Britain, the United Nations and charities. "Energy providers don't tend to think of refugees as potential energy consumers, but the opportunities to build a relationship with them are huge," Mattia Vianello, one of the report's authors, told the Thomson…

A colorful paint job has transformed one of Mumbai's drab hilltop slums into a tourist destination, even prompting comparisons with Italy's picturesque Amalfi Coast. During a recent journey on a Mumbai metro train, Dedeepya Reddy was struck by the grim appearance of a slum in Asalpha in the city's eastern suburbs as she stared out from her air-conditioned carriage. Reddy, a Harvard University-educated co-founder of a creative agency, was keen to brighten the lives of slum residents, while also changing the perception of slums being dirty and dangerous, and decided on a simple makeover. Armed with dozens of cans of colorful paint, Reddy and a team of about 700 volunteers painted the walls and alleyways of the hilltop slum over two weekends last month. Residents, at first skeptical, also got…

Hackers who stole around $530 million worth of cryptocurrency from the Coincheck exchange last week — one of the biggest such heists ever — are trying to move the stolen “XEM” coins, the foundation behind the digital currency said on Tuesday. NEM Foundation, creators of the XEM cryptocurrency, have traced the stolen coins to an unidentified account, and the account owner had begun trying to move the coins onto six exchanges where they could then be sold, Jeff McDonald said. Hackers made off with roughly $533 million worth of the cryptocurrency from Tokyo-based exchange Coincheck Inc late last week, raising fresh questions about security and regulatory protection in the booming market. The location of the hackers’ account was not known. “(The hackers are) trying to spend them on multiple exchanges.…

Middle Eastern countries should pursue fiscal policies to support growth and build broader tax bases to fund infrastructure projects and social spending, the head of the International Monetary Fund said Tuesday. "A key priority is building broader and more equitable tax bases. All must pay their fair share, while the poor must be protected," IMF Managing Director Christine Lagarde told an economic conference in Marrakech, organized by the Washington-based fund and the kingdom. That would allow them to spend more on social safety nets, health and education services than the current 11 percent of gross domestic product in the region. "Fiscal policy can and must be redesigned to support inclusive growth in the region," Lagarde said. More efforts are also needed to support the private sector, she said. The state, the dominant…

Venezuela is abandoning the most-overvalued of its two official foreign exchange rates, which had been used for state imports of food and medicine amid a worsening economic crisis.   The move could potentially encourage businesses to import more and put more goods on store shelves and in pharmacies, but only if the government carries it out as written, said Francisco Rodriguez, a former Venezuelan official who is now chief economist at the New York-based Torino Capital.   "This is not a place where there's a good tradition of following the letter of the law,'' Rodriguez said Tuesday. "I don't think that one should get too optimistic."   Oil-rich Venezuela is in the fifth year of a deepening economic crisis that has brought scarcities of basic foods and medicine after nearly…

Tourism to Cuba, one of the few bright spots in its ailing economy, has slid in the wake of Hurricane Irma and the Trump administration's tighter restrictions on travel to the Caribbean island, a Cuban tourism official said on Monday. Although the number of visitors rose nearly 20 percent in 2017, it fell 10 percent on the year in December, and is down 7-8 percent this month, Jose Manuel Bisbe York, the president of Cuban state travel agency conglomerate Viajes Cuba, said. Arrivals from the United States, which had surged in the wake of the U.S.-Cuban detente in 2014, took the worst hit, dropping 30 percent last December, he told Reuters. "Since Hurricane Irma, we've seen arrivals shrink," Bisbe York said on the sidelines of the event organized by U.S.…

The European Union says that if U.S. President Donald Trump initiates unfair trade measures against the 28-nation bloc, it would stand ready "to react swiftly and appropriately."   In a weekend interview, Trump said he was annoyed with EU trade policy since he claims the U.S. cannot sufficiently export to the EU. He said his problems with the EU "may morph into something very big" from a trade standpoint.   EU spokesman Margaritis Schinas retorted Monday that "while trade has to be open and fair it also has to be rules-based."   Schinas said: "The EU stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measure from the United States."     ...

Top trade representatives from Canada, Mexico and the United States are set to give an update Monday on the process of renegotiating the North American Free Trade Agreement, while people familiar with the process say a final deal could be pushed far beyond a March target date. The three nations had tried to complete the talks by the end of 2017, but delayed the informal deadline as they worked to find common ground on several contentious issues. The latest round of talks in Montreal included work on a dispute resolution mechanism and rules for the auto industry. The United States wants to largely eliminate the dispute settlement panels and increase the percentage of U.S. content required to be in a vehicle. It has also proposed a clause that would end…

Ingvar Kamprad, who founded Sweden's IKEA furniture brand and transformed it into a worldwide business empire, has died at the age of 91. Kamprad died Saturday of pneumonia in the southern Swedish region of Smaland where he grew up on a farm, and with some modest financial help from his father, starting selling pens, picture frames, typewriters and other goods. It was the start of what became IKEA, now with 403 stores across the globe, 190,000 employees and $47 billion in annual sales. His brand became synonymous with the simplicity of Scandinavian design, modest pricing, flat-pack boxing and do-it-yourself assembly for consumers. It turned Kamprad into an entrepreneur with a reported net worth of $46 billion. The company name was an acronym of his initials, the name of his farm,…

Why has Mumbai's largest slum, which packs some one million people in about two square kilometers, emerged as an unlikely stop for foreign tourists? The draw is not images of squalor and poverty in the heart of India's largest city, but a place where thriving entrepreneurship and stories of hope and success break many stereotypes of a slum. Anjana Pasricha reports. ...

U.S. President Donald Trump touted the continued growth of the U.S. economy on Sunday, saying it is "better than it has been in many decades." "Businesses are coming back to America like never before," Trump said in a Twitter remark, a likely theme of his State of the Union address on Tuesday. "Unemployment is nearing record lows. We are on the right track!" He said, "Chrysler, as an example, is leaving Mexico and coming back to the USA," an exaggeration of Chrysler's expansion plans. Fiat Chrysler, the world's eighth biggest auto manufacturer, says it is investing $1 billion to manufacture its profitable Ram pickup trucks in the midwestern state of Michigan, shifting the production from Mexico, but at the same time is not cutting any of its vehicle manufacturing jobs…

Officials trying to settle differences over how to update the North American Free Trade Agreement have made some progress and hope politicians decide the talks should continue, Steve Verheul, Canada's chief negotiator, told Reuters on Saturday. The United States, Canada and Mexico are due to finish the sixth of seven planned rounds of NAFTA discussions on Monday, with several major issues far from being resolved. U.S. President Donald Trump, who describes the $1.2 trillion pact as a disaster, has frequently threatened to walk away from it unless major changes are made. U.S. Trade Representative Robert Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo will hold a news conference later Monday to announce the next steps. Asked whether he thought the three ministers would decide there is enough…

In a surprise move, the U.S. Environmental Protection Agency reversed itself Friday and stopped the approval process for the proposed Pebble Mine copper and gold mine project in southwest Alaska’s Bristol Bay region. “It is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there,” EPA Administrator Scott Pruitt said in a statement. President Donald Trump has championed increased domestic mining, and the EPA’s decision to halt the Pebble Mine’s approval process comes as a surprise. “Until we know the full extent of that risk, those natural resources and world-class fisheries deserve the utmost protection,” Pruitt said. The Obama administration blocked the proposed mine in 2014 over environmental concerns. Last year, Pruitt reversed that decision, allowing…

President Donald Trump's "America First" policy on trade aims to reverse decades of lopsided exchange by withdrawing from international trade deals, renegotiating others and raising tariffs on foreign-made goods destined for the U.S. But, in a connected global economy, analysts warn the U.S. could find itself increasingly isolated as other countries rush forward to embrace new trade deals. Mil Arcega reports. ...

Alaska’s all-Republican congressional delegation three weeks ago praised Interior Secretary Ryan Zinke after he announced nearly all federal waters off the state’s coast could be offered for petroleum lease sales. But after hearing from critics who do not want drilling in their home waters, U.S. Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young are backtracking. In a letter Friday to Zinke, the delegation requested that most Alaska waters from the state’s Panhandle to the Bering Strait be removed from the proposed five-year drilling plan. Instead, they urged lease sales in only three areas: Cook Inlet, where petroleum platforms have extracted oil and natural gas for decades, and the Arctic waters of the Chukchi and Beaufort seas. “We believe the strongest near-term offshore program in Alaska is one that…

A U.S. trade commission on Friday handed an unexpected victory to Bombardier Inc. against Boeing Co., in a ruling that allows the Canadian company to sell its newest jets to U.S. airlines without heavy duties, sending Bombardier's shares up 15 percent. The U.S. International Trade Commission's unanimous decision was the latest twist in U.S.-Canadian trade relations that have been complicated by disputes over tariffs on Canadian lumber and U.S. milk and President Donald Trump's desire to renegotiate or even abandon the North American Free Trade Agreement (NAFTA). Trump, who did not weigh in on the dispute personally, took his "America First" message to the world's elite on Friday, telling a summit that the United States would "no longer turn a blind eye" to what he described as unfair trade practices. The ITC commissioners voted 4-0 that Bombardier's prices did not harm…

President Donald Trump has warned that the United States will no longer tolerate unfair trade practices and will always put America first in future trade deals. Giving the closing speech at the World Economic Forum in the Swiss resort of Davos on Friday, Trump lauded the performance of the U.S. economy under his leadership. The speech, however, was overshadowed by further controversy over alleged links between the president's campaign team and Russia. Henry Ridgwell reports. ...

Around the world, an area larger than all of South America has been deforested, eroded, drained or salinized. A new report says there's money to be made restoring that land. VOA's Steve Baragona has more. ...

The U.S. economy likely maintained a brisk pace of growth in the fourth quarter, driven by an acceleration in consumer and business spending, which could set it on course to attain the Trump administration’s 3 percent annual growth target this year. Gross domestic product probably increased at a 3.0 percent annual rate also boosted by a rebound in homebuilding investment and a pickup in government outlays, according to a Reuters poll of economists. The strong growth pace would come despite anticipated drags from trade and inventory investment. It would follow a 3.2 percent pace of expansion in the third quarter and mark the first time since 2004 that the economy enjoyed growth of 3 percent or more for three straight quarters. The Commerce Department will publish its advance fourth-quarter GDP…

U.S. President Donald Trump has questioned whether peace talks between the Israelis and Palestinians will ever resume. He made the remarks in a meeting with Israeli Prime Minister Benjamin Netenyahu at the World Economic Forum in Davos, Switzerland, where he accused the Palestinians of disrespecting the United States by refusing to meet with Vice-President Mike Pence during his recent visit to the region. Trump threatened to cut aid money to the Palestinian territories. “That money is on the table and that money is not going to them unless they sit down and negotiate peace.  Because I can tell you that Israel does want to make peace, and they’re going to have to want to make peace too or we’re going to have nothing to do with it any longer,” he…

U.S. and Mexican unions will formally complain to the U.S. Labor Department on Thursday that Mexico continues to violate NAFTA’s weak labor standards, a move that they hope will persuade U.S. negotiators to push for stronger rules. The AFL-CIO told Reuters that it and Mexico’s UNT were filing the complaint with the U.S. office that oversees the labor accord attached to the North American Free Trade Agreement as U.S., Canadian, and Mexican negotiators met in Montreal to try to modernize the 1994 trade pact. The complaint, seen by Reuters, argues that Mexico’s proposed labor law amendments to implement constitutional reforms will violate the North American Agreement on Labor Cooperation. It seeks efforts from the United States to prevent the measures from being implemented and to demand changes to bring Mexico…

Puerto Rico's governor submitted a revised fiscal plan overnight Thursday that estimates the U.S. Caribbean territory's economy will shrink by 11 percent and its population drop by nearly 8 percent next year. The proposal doesn't set aside any money to pay creditors in the next five years as the island struggles to restructure a portion of its $73 billion public debt. The original plan had set aside $800 million a year for creditors, a fraction of the roughly $35 billion due in interest and payments over the next decade. The five-year plan also assumes Puerto Rico will receive at least $35 billion in emergency federal funds for post-hurricane recovery and another $22 billion from private insurance companies. Some analysts view that assumption as risky given that the U.S. Treasury Department…