Category: Business

Gulf Arab officials used the World Economic Forum in Davos on Wednesday to slam Iran for what they said was its destabilizing behavior in the region, taking advantage of Tehran's conspicuous absence at the annual event. Iranian Foreign Minister Mohammad Javad Zarif had been a regular presence at the annual forum that brings together top politicians, CEOs and bankers, and he often clashed with his Gulf Arab counterparts at competing sessions. But this year, he did not show. As a result, the platform was wide open for Saudi Arabia, the United Arab Emirates and Bahrain to criticize Iran. Iran, the leading Shiite Muslim power, and Sunni Muslim Saudi Arabia, a key U.S. ally, are rivals for influence in the Middle East, where they support opposing sides in Yemen, Syria, Iraq and Lebanon. "In the Middle East, we have two competing…

Toys R Us, a nostalgic favorite even as many shoppers moved to Amazon and huge chains like Walmart, plans to close up to 182 stores, or about 20 percent of its U.S. locations. The company that once dominated toy sales in the U.S. has been operating under bankruptcy protection since last fall, when it filed for Chapter 11 under the weight of $5 billion in debt. Toys R Us operates about 900 stores in the U.S., including Babies R Us stores. Loyal fans lamented the closing of their hometown stores. Many said they liked to shop at Toys R Us because of the atmosphere and the variety of toys they found. "It's an experience," said Bryan Likins of Indianapolis, who takes his 4-year-old daughter to Toys R Us. "She likes…

Protesters have been pouring into the streets in several Swiss cities to express opposition to U.S. President Donald Trump's attendance at this week's World Economic Forum in Davos. Trump arrives Thursday in the Swiss ski resort and is slated to present his "America First" message in a speech Friday to global business and political leaders. On the eve of his arrival, members of Trump's economic team previewed the strategy for increasing U.S. global competitiveness. Treasury Secretary Steve Mnuchin, one of 10 Cabinet secretaries attending the gathering, endorsed a lower dollar, pushing the greenback to its lowest level in three years, according to the Bloomberg Dollar Index. "Obviously, a weaker dollar is good for us as it relates to trade and opportunities," Mnuchin told reporters at Davos. A day after Trump…

The Trump administration is set to announce a raft of trade decisions over the next months, ranging from curbs on foreign imports of steel and aluminum to steps to clamp down on China's alleged theft of intellectual property. U.S. President Donald Trump has stressed his "America First" agenda in his first year in office and called for fairer, more reciprocal trade. He has blamed globalization for ravaging American manufacturing jobs as companies sought to reduce labor costs by relocating to Mexico and elsewhere. Imported washing machines, solar panels In its first major trade decision of the year, the administration slapped steep tariffs on imported washing machines and solar panels, boosting Whirlpool Corp. and dealing a setback to the renewable energy industry. Monday's decision imposed a 20 percent tariff on the first…

Europe's economy is on a roll — raising the question of exactly when the European Central Bank will end its extraordinary stimulus efforts. Bank President Mario Draghi will be at pains this week to leave that point open. No changes in stimulus settings or interest rates are expected at Thursday's meeting of the bank's 25-member governing council, which sets monetary policy for the 19 countries that use the euro. Draghi's post-meeting news conference, however, will be closely scrutinized for any hints of a change in the timetable for withdrawing a key stimulus component — a massive bond-buying program — later this year. Here is a fast guide. Where's inflation? Stubbornly low inflation is why Draghi and his ECB colleagues want to keep the stimulus program running. The bank's mission is…

President Donald Trump on Tuesday signed into law a steep tariff on imported solar panels, a move billed as a way to protect American jobs but which the solar industry said would lead to tens of thousands of layoffs. The following are some questions and answers about the decision: What impact will the decision have on the solar industry? Trump has said the tariff will lead to more U.S. manufacturing jobs, by preventing foreign goods that are cheap and often subsidized from undercutting domestic products. He also expects foreign solar panel producers to start manufacturing in the United States. "You're going to have people getting jobs again and we're going to make our own product again. It's been a long time," Trump said as he signed the order. The main…

A trade group representing U.S. auto parts makers on Monday urged the Trump administration to adopt NAFTA automotive rules that cover research, engineering, design and software development work as part of North American regional value content goals. The proposal from the Motor and Equipment Manufacturers Association (MEMA) was sent to U.S. Trade Representative Robert Lighthizer as a sixth round of negotiations to revise the North American Free Trade Agreement began in Montreal. U.S. demands for sweeping changes to automotive content rules are among the most contentious issues in the NAFTA talks, including a requirement that half the value of all North American vehicles come from the United States and a far higher content requirement of 85 percent from North America. Canada and Mexico have said the U.S. targets are unworkable,…

China invited Latin American and Caribbean countries to join its "One Belt, One Road" initiative on Monday, as part of an agreement to deepen economic and political cooperation in a region where U.S. influence is historically strong. Chinese Foreign Minister Wang Yi said the region was a natural fit for the initiative, which China has leveraged to deepen economic and financial cooperation with developing nations. "China will always stay committed to the path of peaceful development and the win-win strategy of opening up and stands ready to share development dividends with all countries," Wang said at a meeting between China and 33 members of the Community of Latin American and Caribbean States (CELAC). Representatives from China and CELAC signed a broad agreement to expand ties in the second time China…

The EU’s justice commissioner is working on a proposal that could oblige member states such as Poland, which has clashed with Brussels over reforms to its courts, to pass tests on the independence of their judicial systems before receiving funding. Vera Jourova said there was agreement within the executive European Commission to work on ideas to encourage strong judiciaries in planning for the new budget from 2021. “One way could be to insist that independent justice systems are necessary for effective control of the use of EU funds,” she said. “I would like to propose that link.” Seven-year budget plan A Commission spokesman said on Monday the work by Jourova was part of broader preparations for a new, seven-year EU budget plan, due to be published in May, and was…

The International Monetary Fund says the global economy grew at a faster than expected 3.7 percent pace in 2017 and will do better this year and next. IMF Managing Director Christine Lagarde called predictions of strengthening growth "very welcome news." She spoke Monday in Davos, Switzerland, at the annual World Economic Forum. IMF experts say 120 nations, representing three-quarters of the global economy, saw growth last year. IMF experts said tax cuts in the United States will have a positive but "short term" impact on the economy. Lagarde urged political and economic leaders to take advantage of good times to make reforms that will soften the impact of the next, inevitable, economic downturn. She said there is "significant" uncertainty in the year ahead, where a long period of low interest…

Some in the U.S. solar-power industry are hoping a decision this week by President Donald Trump doesn't bring on an eclipse. Companies that install solar-power systems for homeowners and utilities are bracing for Trump's call on whether to slap tariffs on imported panels. The solar business in the U.S. has boomed in recent years, driven by falling prices for panels, thanks in part to cheap imports. That has made solar power more competitive with electricity generated from coal and natural gas. A green-technology research firm estimates that tariffs could cost up to 88,000 U.S. jobs related to installing solar-power systems. On the other side are two U.S. subsidiaries of foreign companies that argue the domestic manufacturing of solar cells and modules has been decimated by a flood of imports, mostly…

The exiled former leader of the Maldives said Monday that this year's presidential election could be the last chance to extricate his country from increasing Chinese influence, which he described as a land grab in the guise of investments in island development.   Mohamed Nasheed told reporters in Sri Lanka's capital that current President Yameen Abdul Gayoom has opened the doors to Chinese investment without any regard for procedure or transparency.   "A large emerging power is busy buying up the Maldives,'' Nasheed said, explaining that he was referring to China.   China is "buying up our lands, buying up our key infrastructure and effectively buying up our sovereignty," he said.   China considers Maldives to be key cog in the Indian Ocean in its "One Belt One Road" project…

Australia has filed a formal complaint with the World Trade Organization that accuses Canada of placing "discriminatory" rules on the sales of imported wine. Canada is Australia's fourth-biggest wine market. Officials in Canberra say rules in Canada unfairly discriminate against overseas wine. An official protest has been lodged with the World Trade Organization (WTO) against regulations in the Canadian province of British Columbia, where wine produced locally can be sold in grocery stores but imports must be sold in a "store within a store" with a separate cash register. Canberra's objection also targets policies in other provinces, including Ontario, Quebec and Nova Scotia, as well as federal practices in Canada, which could breach a WTO agreement. They mean higher prices for foreign wines, as well as other barriers to sale,…

Iran's supreme leader has ordered the Revolutionary Guard to loosen its hold on the economy, the country's defense minister says, raising the possibility that the paramilitary organization might privatize some of its vast holdings. The comments this weekend by Defense Minister Gen. Amir Hatami appear to be a trial balloon to test the reaction of the idea, long pushed by Iran's President Hassan Rouhani, a relative moderate. Protests over the country's poor economy last month escalated into demonstrations directly challenging the government.   But whether the Guard would agree remains unclear, as the organization is estimated to hold around a third of the country's entire economy.   Hatami, the first non-Guard-affiliated military officer to be made defense minister in nearly 25 years, made the comments in an interview published Saturday…

Saudi Arabia’s energy minister urged global oil producing nations on Sunday to extend their cooperation beyond 2018, but said this might mean a new form of deal rather than continuing the same supply cuts that have boosted prices in recent months. It was the first time that Saudi Arabia had publicly raised the possibility of a new form of coordination among oil producers after 2018. Their agreement on supply cuts, originally launched last January, is set to expire in December this year. Cooperation 'here to stay' Khalid al-Falih, speaking to reporters ahead of a meeting later in the day of the joint ministerial committee, which oversees implementation of the cuts, said extending cooperation would convince the world that coordination among producers was “here to stay.” “We shouldn’t limit our efforts…

Afghanistan's arts and architecture were once the pride of Asia. However, more than four decades of war have left many of the country’s traditional crafts on the verge of extinction. Now a Britain-based organization, Turquoise Mountain, is working to preserve Afghan heritage in the capital’s still surviving commercial district, Murad Khani. VOA Deewa service’s Munaza Shaheed reports from a recent trip to Kabul. ...

Donald Trump, the presidential candidate, would not like the way Trump, the president, is crowing about today’s unemployment rate. He’d be calling the whole thing a “hoax.” Trump raised a red flag about declining jobless numbers during his campaign, denying President Barack Obama any credit. Trump noted that the jobless rate masks the true employment picture by leaving out the millions who have given up looking for work. But Trump is seeing red no more. The same stats he assailed in 2015 and 2016 now are his proof of “fantastic,” “terrific” economic progress, for which he wants the credit. That disconnect is part of why Trump’s statements about the economy this past week, some accurate on their face, fall short of the whole truth. Trump also made the far-fetched claim…

Imagine if cigarettes were no longer addictive and smoking itself became almost obsolete; only a tiny segment of Americans still lit up. That's the goal of an unprecedented anti-smoking plan being carefully fashioned by U.S. health officials. But the proposal from the Food and Drug Administration could have another unexpected effect: opening the door for companies to sell a new generation of alternative tobacco products, allowing the industry to survive — even thrive — for generations to come. The plan puts the FDA at the center of a long-standing debate over so-called "reduced-risk" products, such as e-cigarettes, and whether they should have a role in anti-smoking efforts, which have long focused exclusively on getting smokers to quit. "This is the single most controversial — and frankly, divisive — issue I've…

Swiss luxury watchmaker Audemars Piguet said it would launch a second-hand business this year, becoming the first big brand to announce plans to tap into a fast-growing market for pre-owned premium watches. The company told Reuters it would launch the business at its outlets in Switzerland this year. If this proved successful, it would roll out the operation in the United States and Japan. “Second-hand is the next big thing in the watch industry,” Chief Executive Francois-Henry Bennahmias told Reuters in an interview at the SIHH watch fair in Geneva this week. Going to the 'dark side' Luxury watchmakers have hitherto eschewed the second-hand trade, fearing diluting the exclusivity of their brands and cannibalizing their sales. They have instead ceded the ground to third-party dealers. But some are now looking to change tack,…

Foreign investors in Vietnam will welcome a fairer, more predictable set of business practices as the government pursues the heads of local firms over corruption, analysts believe. Some foreign companies might review their own books to ensure clean accounting, as prosecutors investigate executives in Vietnamese firms over suspected graft. Most will laud the crackdown as steps toward transparency, fairness in business and better-run local partner companies, economists predict. “The corruption cleanup, I think so far, seems to be well received,” said Song Seng Wun, an economist with the private banking unit of CIMB in Singapore. “There is at least on the surface an effort to clean up and be more transparent in the way of doing business as a way to ensure firmer ground.” Increased confidence among foreign factory investors,…

Widow Ahatho Turuga lost 20 of her goats to drought early last year, but the shopkeeper is planning to reinvest in her herd once she has saved enough money. "I think I will start with four goats and see how it goes," she said, rearranging soap on the upper shelf of her shop in Loglogo, a few kilometers from Marsabit town. She recalled how frequent droughts had left her on the edge of desperation, struggling to care for six of her own children and four others she adopted after their mother died. But Turuga is finding it easier to cope since taking part in a rural entrepreneurship program run by The BOMA Project, a nonprofit helping women in Kenya's dry northern areas beat extreme poverty and adapt to climate change.…

Turkey’s main business lobby on Thursday called on the government to end the state of emergency as parliament extended it for a sixth time since it was imposed after an attempted coup in 2016. Emergency rule allows President Tayyip Erdogan and the government to bypass parliament in passing new laws and allows them to suspend rights and freedoms. More than 50,000 people have been arrested since its introduction and 150,000 have been sacked or suspended from their jobs. The Turkish parliament on Thursday voted to extend the state of emergency, with the ruling AK Party and the nationalist opposition voting in favor. Rights groups and some of Turkey’s Western allies fear Erdogan is using the crackdown to stifle dissent and crush his opponents. Freedom House, a Washington-based watchdog, downgraded Turkey…

Nigeria moved closer to turning the first part of a long-awaited oil industry bill into law after the lower house passed the same version of the legislation approved by the Senate last year, a lawmaker in the House of Representatives said on Thursday. It is the first time both houses have approved the same version of the bill. It still needs the president's signature to become law. The legislation, which Nigeria has been trying to pass for more than a decade, aims to increase transparency and stimulate growth in the country's oil industry. Under President Muhammadu Buhari's administration, the Petroleum Industry Bill was broken up into sections to ease passage. The House of Representatives passed the first part called the Petroleum Industry Governance Bill (PIGB) on Wednesday. "The PIGB, as…

Wall Street roared upward Wednesday, with investor enthusiasm sending all three major stock indices to record finishes, and the Dow to its first close above 26,000 points. The blue-chip Dow gained 1.3 percent to close at 26,115.65 — just eight trading sessions after breaking the 25,000 mark — with strong showings from Boeing, IBM and Intel.  The broader S&P 500 added 0.9 percent to close at 2,802.56, while the tech-heavy Nasdaq gained a full percentage point to settle at 7,298.28. With just 11 trading days so far in 2018, Wednesday's session marked the seventh time this year all three major indices closed at all-time highs. Maris Ogg of Tower Bridge Associates told AFP the sustained rally was boosted by a "confluence of good news," including strong company earnings, slashed corporate tax…

Financial crime fighters at the U.S. Treasury are "aggressively" pursuing virtual currency platforms that lack strong internal safeguards against money laundering, a top official told a Senate panel on Wednesday. With more criminals using the emerging asset class to store and transmit their ill-gotten gains, Treasury's Financial Crimes Enforcement Network (FinCEN) will pursue malfeasant virtual currency platforms even if they are located overseas, Sigal Mandelker, the U.S. Treasury Department's undersecretary for terrorism and financial crimes, told the Senate Banking Committee. U.S.-based platforms for bitcoin and other virtual currencies are required to comply with antimoney laundering (AML) rules including filing suspicious activity reports, with around 100 such platforms registered with FinCEN. But many other countries have no such requirements. "The real vulnerability that we all have to address is that while…

In a modest apartment near a Caracas slum, nutrition professor Nancy Silva and four aids spread rich, dark Venezuelan cocoa on a stone counter to make chocolate bars to be sold in local shops that cater to the crisis-hit country's dwindling elite. Like some 20 recently launched Venezuelan businesses, Silva uses the country's aromatic cocoa to make gourmet bars of the kind that can fetch more than $10 each in upscale shops in Paris or Tokyo. The oil-rich but recession-devastated nation's Byzantine bureaucracy makes large-scale exports nearly impossible for small businesses. As a result, most of her bars are sold locally for less than one U.S. dollar - well out of reach of millions of Venezuelans who earn less than that in a week, but reasonably priced for the well-heeled…

El Salvador is discussing a deal with Qatar under which Salvadoran migrants facing the loss of their right to stay in the United States could live and work temporarily in the Middle Eastern country, the government of the Central American nation said on Tuesday. Last week, U.S. President Donald Trump's administration said that as of September 2019, it would eliminate the temporary protected status, or TPS, that allows some 200,000 Salvadorans to live in the United States without fear of deportation. Presidential communications chief Eugenio Chicas said El Salvador was in talks to see how Salvadorans could be employed in Qatar, a wealthy country of some 2.6 million people that is scheduled to host the soccer World Cup in 2022. "The kingdom of Qatar ... has held out the possibility…

Car dealerships in Mexico City have kicked off the new year offering "clearance sales" and free insurance as 2017 models collect dust on their lots, a reminder that consumer nerves over high interest rates could slow the economy ahead of elections. The first drop in auto sales in eight years is the most visible sign that the great Mexican shopper, the heart and soul of Latin America's second-largest economy, is feeling the pinch of inflation at a 16½-year high and a battered peso. A government decision to scrap fuel subsidies last year has made running a car more expensive, while the central bank's battle with inflation has put car loans out of reach for many. "If I'm going to buy a new car and then not be able to fill…