Pakistan Finance Minister Asad Umar has resigned days after returning home from crucial talks with the International Monetary Fund (IMF) on a financial bailout package to avert a national balance of payments crisis.

While formally announcing his decision to leave Thursday at a hurriedly arranged news conference in Islamabad, Umar explained that he was asked to take the energy minister position instead of finance as part of a Cabinet reorganization.

Umar acknowledged his successor would have to make “some difficult decisions” to deal with economic challenges facing Pakistan.

Prime Minister Imran Khan’s eight-month-old administration has faced sustained criticism from political opponents, independent commentators and the business community over the government’s handling of the economic crisis facing the country. Much of that criticism was leveled against Umar.

Umar returned this week from Washington, where his delegation fleshed out details of Pakistan’s next IMF bailout package that he said could be up to $8 billion.

Critics blamed the outgoing minister for taking months to finalize the IMF deal, saying the delay shattered investor confidence in Pakistan’s economy. But speaking Thursday, Umar defended his performance.

“We have finalized the IMF agreement on much better terms than before.I have made these decisions.I refused to take the decisions that would have crushed the nation,” Umar said without elaborating.

He said that an IMF mission is expected to visit Islamabad later this month to work out more details “since all major issues had been settled and documented,” he said.

13th bailout

The long-delayed package would be Pakistan’s 13th IMF bailout since the late 1980s and comes with a worsening economic outlook for the South Asian nation of more than 200 million people.

Former finance minister Salman Shah, while commenting on Umar’s resignation, noted a lack of effective financial strategy was slowing down the economy, deterring all sorts of investments, fueling inflation and unemployment in Pakistan.

Late Thursday, the government made the formal announcement about the Cabinet reorginization, re-allocating certain portfolios and appointing new ministers as well as several special advisors to the prime minister. They included Abdul Hafeez Sheikh as advisor on finance to Khan. Sheikh served as finance minister of Pakistan under a previous government. Khan has also appointed Ijaz Ahmed Shah as his full time interior minister.
…

The U.S. trade deficit fell to an eight-month low in February as imports from China plunged, temporarily providing a boost to President Donald Trump’s “America First” agenda and economic growth in the first quarter.

The surprise second straight monthly narrowing in the trade gap reported by the Commerce Department on Wednesday was also driven by soaring aircraft exports, which are likely to reverse after Boeing halted deliveries of its troubled 737 MAX aircraft. MAX planes have been grounded indefinitely following two deadly crashes.

Economists warned the trade deficit would remain elevated regardless of whether the United States and China struck a trade deal that was to the White House’s liking because of Americans’ insatiable appetite for cheaper imports.

Talks between Washington and China to resolve the bitter trade war have been dragging. The United States is also embroiled in conflicts with other trading partners, including the European Union, contributing to big swings in exports and imports data in recent months.

“Even if trade negotiations are resolved in such a way as to reduce the bilateral trade deficit with China, one of the Trump administration’s stated goals, this would likely divert trade flows to other countries and have little impact on the top-line U.S. trade deficit,” said Emily Mandel, an economist at Moody’s Analytics in West Chester, Pennsylvania.

The trade deficit tumbled 3.4% to $49.4 billion in February, the lowest level since June 2018. Economists polled by Reuters had forecast the trade shortfall widening to $53.5 billion in February.

The politically sensitive goods trade deficit with China – a focus of the Trump administration’s protectionist trade policy – decreased 28.2% to $24.8 billion in February as imports from the world’s No. 2 economy plunged 20.2%. U.S. exports to China jumped 18.2% in February.

Washington last year imposed tariffs on $250 billion worth of goods imported from China, with Beijing retaliating with duties on $110 billion worth of American products. Trump has defended the duties as necessary to protect domestic manufacturers from what he says is unfair foreign competition.

Trump has delayed tariffs on $200 billion worth of Chinese imports. The White House argues that substantially reducing the trade deficit would lift annual economic growth by at least 3% on a sustainable basis, a feat that economists have said is impossible because of low productivity and population growth.

The economy grew 2.9% in 2018.

The dollar was little changed against a basket of currencies, while U.S. Treasury debt prices rose marginally.

Stocks on Wall Street fell.

Growth estimates raised

February’s smaller trade deficit suggests the economy will probably avoid a sharp slowdown in growth that had been feared at the start of the year. The goods trade deficit declined 1.7% to an eight-month low of $72.0 billion in February.

When adjusted for inflation, the overall goods trade deficit fell $1.8 billion to $81.8 billion, also the lowest since last June. Goldman Sachs raised its first quarter gross domestic product estimate by four-tenths of percentage point to a 2.1% annualized rate.

The Atlanta Federal Reserve bumped up its GDP forecast to a 2.4% pace from a 2.3% rate. The economy grew at a 2.2% rate in the fourth quarter.

“It sounds like pencils are being sharpened in order to revise up first-quarter GDP forecasts,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.

In February, goods exports increased 1.5% to $139.5 billion. The surge in goods exports is unlikely to be sustained given slowing global economic growth. The dollar’s strength last year means U.S.-manufactured goods are less competitive on foreign markets.

Shipments of civilian aircraft soared by $2.2 billion in February. Exports of motor vehicles and parts increased by $0.6 billion. There was a small rise in soybean exports. Economists expect soybean exports to remain moderate because of an outbreak of swine flu that has reduced demand for soybean meal in China.

In February, imports rose 0.2% to $259.1 billion.

Consumer goods imports increased by $1.6 billion in February, led by a $2.1 billion rise in imports of cellphones and other household goods.

Imports of industrial supplies and materials fell by $1.2 billion. Capital goods imports rose slightly, pointing to slower business spending on equipment.

Crude oil imports fell to 173.7 million barrels, the lowest since March 1992, from 223.1 million barrels in January. An increase in domestic production has seen the United States become less dependent on foreign oil.

“We see more potential for stronger imports in coming months, which would reestablish a trend toward wider deficits,” said Andrew Hollenhorst, an economist at Citigroup in New York.

 
…

A long-hidden trove of unpublished works by Franz Kafka could soon be revealed following a decade-long battle over his literary estate that has drawn comparisons to some of his surreal tales.

A district court in Zurich upheld Israeli verdicts in the case last week, ruling that several safe deposit boxes in the Swiss city could be opened and their contents shipped to Israel’s National Library.

At stake are untouched papers that could shed new light on one of literature’s darkest figures, a German-speaking Bohemian Jew from Prague whose cultural legacy has been hotly contested between Israel and Germany.

What’s in the vaults?

Though the exact content of the vaults remains unknown, experts have speculated the cache could include endings to some of Kafka’s major works, many of which were unfinished when they were published after his death.

Israel’s Supreme Court has stripped an Israeli family of its collection of Kafka’s manuscripts, which were hidden in Israeli bank vaults and in a squalid, cat-filled Tel Aviv apartment. But the Swiss ruling would complete the acquisition of nearly all his known works, after years of lengthy legal battles over their rightful owners.

Kafkaesque saga

The saga could have been penned by Kafka himself, whose name has become known as an adjective to describe absurd situations involving inscrutable legal processes. Kafka was known for his tales of everyman protagonists crushed by mysterious authorities or twisted by unknown shames. In “The Trial,” for example, a bank clerk is put through excruciating court proceedings without ever being told the charges against him.

“The absurdity of the trials is that it was over an estate that nobody knew what it contained. This will hopefully finally resolve these questions,” said Benjamin Balint, a research fellow at Jerusalem’s Van Leer Institute and the author of “Kafka’s Last Trial,” which chronicles the affair. “The legal process may be ending, but the questions of his cultural belonging and inheritance will remain with us for a very long time.”

Manuscripts not burned

Kafka bequeathed his writings to Max Brod, his longtime friend, editor and publisher, shortly before his death from tuberculosis in 1924 at the age of 40. He instructed his protege to burn it all unread.

Brod ignored his wishes and published most of what was in his possession — including the novels “The Trial,” “The Castle” and “Amerika.” Those works made the previously little-known Kafka posthumously one of the most celebrated and influential writers of the 20th century.

But Brod, who smuggled some of the manuscripts to pre-state Israel when he fled the Nazis in 1938, didn’t publish everything. Upon his death in 1968, Brod left his personal secretary, Esther Hoffe, in charge of his literary estate and instructed her to transfer the Kafka papers to an academic institution.

Instead, for the next four decades, Hoffe kept the papers stashed away and sold some of the items for hefty sums. In 1988, for instance, Hoffe auctioned off the original manuscript of “The Trial” at Sotheby’s in London. It went for $1.8 million to the German Literature Archive in Marbach, north of Stuttgart.

When Hoffe died in 2008 at age 101, she left the collection to her two daughters, Eva Hoffe and Ruth Wiesler, both Holocaust survivors like herself, who considered Brod a father figure and his archive their rightful inheritance. Both have since also passed away, leaving Wiesler’s daughters to continue fighting for the remainder of the collection.

Legitimate inheritance or cultural assets?

Jeshayah Etgar, a lawyer for the daughters, downplayed the significance of the potential findings in Zurich, saying they were likely replicas of manuscripts Hoffe had already sold. Regardless, he said the ruling was the continuation of a process in which “individual property rights were trampled without any legal justification.” He said his clients legitimately inherited the works and called the state seizure of their property “disgraceful” and “first degree robbery.”

Israel’s National Library claims Kafka’s papers as “cultural assets” that belong to the Jewish people. Toward the end of his life, Kafka considered leaving Prague and moving to pre-state Israel. He took Hebrew lessons with a Jerusalem native who eventually donated her pupil’s vocabulary notebook to the library. In recent years, the library also took possession of several other manuscripts the courts had ordered Hoffe’s descendants to turn over.

“We welcome the judgment of the court in Switzerland, which matched all the judgments entered previously by the Israeli courts,” said David Blumberg, chairman of the Israel National Library, a nonprofit and non-governmental body. “The judgment of the Swiss court completes the preparation of the National Library of Israel to accept to entire literary estate of Max Brod, which will be properly handled and will be made available to the wider public in Israel and the world.”

Other scholars question Israel’s adoption of Kafka, noting that he was conflicted about his own Judaism. The German Literature Archive, for instance, has sided with Hoffe’s heirs and aimed to purchase the collection itself, arguing the German-language writings belong in Germany. Dietmar Jaegle, an archive official, said he would not comment on the Zurich verdict as he had not yet seen it.

Balint cautioned that the contents of the hidden archive may not live up to everyone’s expectations.

“It is very unlikely we are going to discover an unknown Kafka masterpiece in there, but these are things of value,” Balint said, noting the fierce competition over any original Kafka material. “There is something about the uncanny aura of Kafka that is attracted to all this.”
…

China’s economic growth held steady in the latest quarter despite a tariff war with Washington, in a reassuring sign that Beijing’s efforts to reverse a slowdown might be gaining traction.

The world’s second-largest economy expanded by 6.4% over a year earlier in the three months ending in March, the government reported Wednesday. That matched the previous quarter for the weakest growth since 2009.

“This confirms that China’s economic growth is bottoming out and this momentum is likely to continue,” said Tai Hui of JP Morgan Asset Management in a report.

Government intervention

Communist leaders stepped up government spending last year and told banks to lend more after economic activity weakened, raising the risk of politically dangerous job losses.

Beijing’s decision to ease credit controls aimed at reining in rising debt “is starting to yield results,” Hui said.

Consumer spending, factory activity and investment all accelerated in March from the month before, the National Bureau of Statistics reported.

The economy showed “growing positive factors,” a bureau statement said.

​Recovery later this year

Forecasters expect Chinese growth to bottom out and start to recover later this year. They expected a recovery last year but pushed back that time line after President Donald Trump hiked tariffs on Chinese imports over complaints about Beijing’s technology ambitions.

The fight between the two biggest global economies has disrupted trade in goods from soybeans medical equipment, battering exporters on both sides and rattling financial markets.

The two governments say settlement talks are making progress, but penalties on billions of dollars of each other’s goods are still in place.

China’s top economic official, Premier Li Keqiang, announced an annual official growth target of 6% to 6.5% in March, down from last year’s 6.6% rate.

Li warned of “rising difficulties” in the global economy and said the ruling Communist Party plans to step up deficit spending this year to shore up growth.

Beijing’s stimulus measures have temporarily set back official plans to reduce reliance on debt and investment to support growth.

Also in March, exports rebounded from a contraction the previous month, rising 14.2% over a year earlier. Still, exports are up only 1.4% so far this year, while imports shrank 4.8% in a sign of weak Chinese domestic demand.

Auto sales fell 6.9% in March from a year ago, declining for a ninth month. But that was an improvement over the 17.5% contraction in January and February.

Tariffs’ effect long-lasting

Economists warn that even if Washington and Beijing announce a trade settlement in the next few weeks or months, it is unlikely to resolve all the irritants that have bedeviled relations for decades.

The two governments agreed Dec. 1 to postpone further penalties while they negotiate, but punitive charges already imposed on billions of dollars of goods stayed in place.

Even if they make peace, the experience of other countries suggests it can take four to five years for punitive duties to “dissipate fully,” said Jamie Thompson of Capital Economics in a report last week.

Chinese leaders warned previously any economic recovery will be “L-shaped,” meaning once the downturn bottomed out, growth would stay low.

Credit growth accelerated in March, suggesting companies are stepping up investment and production.

Total profit for China’s national-level state-owned banks, oil producers, phone carriers and other companies rose 13.1% over a year ago in the first quarter, the government reported Tuesday. Revenue rose 6.3% and investment rose 9.7%.
…

China’s economic growth held steady in the latest quarter despite a tariff war with Washington, in a reassuring sign that Beijing’s efforts to reverse a slowdown might be gaining traction.

The world’s second-largest economy expanded by 6.4% over a year earlier in the three months ending in March, the government reported Wednesday. That matched the previous quarter for the weakest growth since 2009.

“This confirms that China’s economic growth is bottoming out and this momentum is likely to continue,” said Tai Hui of JP Morgan Asset Management in a report.

Government intervention

Communist leaders stepped up government spending last year and told banks to lend more after economic activity weakened, raising the risk of politically dangerous job losses.

Beijing’s decision to ease credit controls aimed at reining in rising debt “is starting to yield results,” Hui said.

Consumer spending, factory activity and investment all accelerated in March from the month before, the National Bureau of Statistics reported.

The economy showed “growing positive factors,” a bureau statement said.

​Recovery later this year

Forecasters expect Chinese growth to bottom out and start to recover later this year. They expected a recovery last year but pushed back that time line after President Donald Trump hiked tariffs on Chinese imports over complaints about Beijing’s technology ambitions.

The fight between the two biggest global economies has disrupted trade in goods from soybeans medical equipment, battering exporters on both sides and rattling financial markets.

The two governments say settlement talks are making progress, but penalties on billions of dollars of each other’s goods are still in place.

China’s top economic official, Premier Li Keqiang, announced an annual official growth target of 6% to 6.5% in March, down from last year’s 6.6% rate.

Li warned of “rising difficulties” in the global economy and said the ruling Communist Party plans to step up deficit spending this year to shore up growth.

Beijing’s stimulus measures have temporarily set back official plans to reduce reliance on debt and investment to support growth.

Also in March, exports rebounded from a contraction the previous month, rising 14.2% over a year earlier. Still, exports are up only 1.4% so far this year, while imports shrank 4.8% in a sign of weak Chinese domestic demand.

Auto sales fell 6.9% in March from a year ago, declining for a ninth month. But that was an improvement over the 17.5% contraction in January and February.

Tariffs’ effect long-lasting

Economists warn that even if Washington and Beijing announce a trade settlement in the next few weeks or months, it is unlikely to resolve all the irritants that have bedeviled relations for decades.

The two governments agreed Dec. 1 to postpone further penalties while they negotiate, but punitive charges already imposed on billions of dollars of goods stayed in place.

Even if they make peace, the experience of other countries suggests it can take four to five years for punitive duties to “dissipate fully,” said Jamie Thompson of Capital Economics in a report last week.

Chinese leaders warned previously any economic recovery will be “L-shaped,” meaning once the downturn bottomed out, growth would stay low.

Credit growth accelerated in March, suggesting companies are stepping up investment and production.

Total profit for China’s national-level state-owned banks, oil producers, phone carriers and other companies rose 13.1% over a year ago in the first quarter, the government reported Tuesday. Revenue rose 6.3% and investment rose 9.7%.
…

Argentine presidential hopeful Sergio Massa would renegotiate the country’s unpopular financing deal with the International Monetary Fund if he wins office later this year, the former congressman told reporters on Tuesday.

The $56 billion IMF standby financing agreement includes fiscal cuts that have enraged wide segments of the public, denting the popularity of President Mauricio Macri.

“We need to find a longer-term mechanism to ensure that Argentina meets its debt obligations, ” the 46-year-old Massa said in a briefing with international correspondents.

Macri was forced to negotiate the IMF deal last year amid a sell-off in the peso that raised questions about Argentina’s ability to pay dollar-denominated bond obligations. Many Argentines blame the IMF for policies that set the stage for the country’s 2002 sovereign debt default and economic meltdown.

Popular protests supported by Massa’s Peronist party have gained momentum in recent weeks as the Macri administration pursues IMF-backed public utility subsidy cuts and other austerity measures aimed at erasing the primary fiscal deficit this year, a goal included in the IMF pact.

Massa, who wants to unseat Macri in the October election, spoke just hours after Macri’s government announced that consumer prices shot 4.7 percent higher in March alone, bringing 12-month inflation to 54.7 percent.

More than three years into his first term, Macri’s re-election is less than certain as his government strains to jumpstart a shrinking economy while cutting the fiscal deficit and trying to tame one of the world’s highest inflation rates.

Previous Argentine leader and possible October candidate Cristina Fernandez, a free-spending populist with wide support among low-income voters, has risen in the opinion polls while discontent rises over Macri’s policy of cutting public utility subsidies and other austerity measures.

Massa once served in Fernandez’s cabinet but broke with her over what he called her top-down leadership style. He is running behind both Fernandez and Macri in the opinion polls.

Argentina’s economy will remain subject to shocks until clarity emerges regarding the country’s October presidential election, ratings agency Moody’s said this month.
…

Surrounded by vultures perched on trees awaiting their turn, Venezuelan migrants scrape out a living scavenging for metal, plastic, cardboard and food in a Brazilian border town’s rubbish dump.

Trapped in a wasteland limbo, they barely make enough to feed their families and cannot afford a bus ticket to get away and find regular work in Brazilian cities to the south.

They blame leftist President Nicolas Maduro for mismanaging their oil-producing nation’s economy and causing the deep crisis that has driven several million Venezuelans to emigrate across Latin America.

“I left because I was dying of hunger. We are trying to get ahead looking through this rubbish. Every night I pray to God to take me out of here,” said Rosemary Tovar, a 23-year-old mother from Caracas.

Tens of thousands of Venezuelans have fled the political and economic upheaval in their country through Pacaraima, the only road crossing to Brazil, overloading social services and causing tension in the northern border state of Roraima. More than 40,000 Venezuelans have swollen the population of state capital Boa Vista by 11 percent, Mayor Tereza Surita told Reuters.

The influx has also been a headache for Brazil’s new, far-right government of President Jair Bolsonaro, who has so far resisted U.S. pressure to take a more forceful attitude against Maduro. About 3.7 million people have left Venezuela in recent years, mostly via its western neighbor Colombia, according to the World Bank.

A dozen Venezuelans scramble to grab bags of rubbish that tumble from the Pacaraima trash truck twice a day. They then sift through the piles as fetid plumes of smoke rise from the smoldering landfill. Sometimes they scavenge at night using headlamps.

“We are looking for copper and cans, and hopefully something valuable, even food,” said Astrid Prado, who is eight months pregnant. “My goal is to get out of here. Nobody wants to spend their life going through garbage.”

Charly Sanchez, 42, arrived in Brazil a year ago and has not been able to get to Boa Vista to get his work papers so that he can find employment.

“We live off this. We make enough to buy rice, maybe some sausage, but not enough to buy a ticket to Boa Vista,” he said.

Copper pays best, 13 reais ($3.30) a kilo, but it takes Sanchez a whole week to gather that much “wire by wire.”

On a lucky day he said he had found a discarded cellphone, but not today. Some spaghetti, a small jar of sugar and a bit of cooking oil was Sanchez’s pickings for the day.

Samuel Esteban, using a breathing mask for the smoke, stuffed cardboard into a large sack. For 50 kilos he will earn five reais, one third of the minimum monthly wage in Venezuela but just enough to buy a liter of milk in Brazil and some bread.

Tovar criticized Maduro for denying that Venezuela is facing a humanitarian crisis.

“He is so wrong. Look at us here in this dump,” she said. “If Maduro does not leave Venezuela, I will never return there.”
…

Surrounded by vultures perched on trees awaiting their turn, Venezuelan migrants scrape out a living scavenging for metal, plastic, cardboard and food in a Brazilian border town’s rubbish dump.

Trapped in a wasteland limbo, they barely make enough to feed their families and cannot afford a bus ticket to get away and find regular work in Brazilian cities to the south.

They blame leftist President Nicolas Maduro for mismanaging their oil-producing nation’s economy and causing the deep crisis that has driven several million Venezuelans to emigrate across Latin America.

“I left because I was dying of hunger. We are trying to get ahead looking through this rubbish. Every night I pray to God to take me out of here,” said Rosemary Tovar, a 23-year-old mother from Caracas.

Tens of thousands of Venezuelans have fled the political and economic upheaval in their country through Pacaraima, the only road crossing to Brazil, overloading social services and causing tension in the northern border state of Roraima. More than 40,000 Venezuelans have swollen the population of state capital Boa Vista by 11 percent, Mayor Tereza Surita told Reuters.

The influx has also been a headache for Brazil’s new, far-right government of President Jair Bolsonaro, who has so far resisted U.S. pressure to take a more forceful attitude against Maduro. About 3.7 million people have left Venezuela in recent years, mostly via its western neighbor Colombia, according to the World Bank.

A dozen Venezuelans scramble to grab bags of rubbish that tumble from the Pacaraima trash truck twice a day. They then sift through the piles as fetid plumes of smoke rise from the smoldering landfill. Sometimes they scavenge at night using headlamps.

“We are looking for copper and cans, and hopefully something valuable, even food,” said Astrid Prado, who is eight months pregnant. “My goal is to get out of here. Nobody wants to spend their life going through garbage.”

Charly Sanchez, 42, arrived in Brazil a year ago and has not been able to get to Boa Vista to get his work papers so that he can find employment.

“We live off this. We make enough to buy rice, maybe some sausage, but not enough to buy a ticket to Boa Vista,” he said.

Copper pays best, 13 reais ($3.30) a kilo, but it takes Sanchez a whole week to gather that much “wire by wire.”

On a lucky day he said he had found a discarded cellphone, but not today. Some spaghetti, a small jar of sugar and a bit of cooking oil was Sanchez’s pickings for the day.

Samuel Esteban, using a breathing mask for the smoke, stuffed cardboard into a large sack. For 50 kilos he will earn five reais, one third of the minimum monthly wage in Venezuela but just enough to buy a liter of milk in Brazil and some bread.

Tovar criticized Maduro for denying that Venezuela is facing a humanitarian crisis.

“He is so wrong. Look at us here in this dump,” she said. “If Maduro does not leave Venezuela, I will never return there.”
…

Automakers are showcasing electric SUVs and sedans with more driving range and luxury features at the Shanghai auto show, trying to appeal to Chinese buyers in their biggest market as Beijing slashes subsidies that have propelled demand. 

Communist leaders wanting China to lead in electric vehicles have imposed sales targets. That requires brands to pour money into creating models to compete with gasoline-powered vehicles on price, looks and performance at a time when they are struggling with a Chinese sales slump. 

General Motors, Volkswagen, China’s Geely and other brands on Tuesday displayed dozens of models, from luxury SUVs to compacts priced under $10,000, at Auto Shanghai 2019. The show, the global industry’s biggest marketing event of the year, opens to the public Saturday following a preview for reporters.

On Monday, GM unveiled Buick’s first all-electric model for China. GM says the four-door Velite 6 can travel 301 kilometers (185 miles) before the battery needs charging. 

VW showed off a concept electric SUV, the whimsically named ID. ROOMZZ, designed to travel 450 kilometers (280 miles) on one charge. Features include seats that rotate 25 degrees to create a lounge-like atmosphere. 

Communist leaders have promoted “new energy vehicles” for 15 years with subsidies to developers and buyers. That, along with support including orders to state-owned utilities to blanket China with charging stations, is helping to transform the technology into a mainstream product. 

“People’s mindset and governmental policies are more encouraging toward e-cars than in any other country,” said VW CEO Herbert Diess. 

Electric vehicles play a key role in the ruling Communist Party’s plans for government-led development of Chinese global competitors in technologies from robotics to biotech. 

Those ambitions set off Beijing’s tariff war with President Donald Trump. Washington, Europe and other trading partners complain Chinese subsidies to technology developers and pressure on foreign companies to share know-how violate its market-opening commitments. 

Electric car subsidies end next year, replaced by sales quotas. Automakers that fall short can buy credits from competitors that exceed their targets or face possible fines. 

“Most of the traditional car makers are under huge pressure to launch NEVs,” said industry analyst John Zeng of LMC Automotive. 

Last year’s Chinese sales of pure-electric and hybrid sedans and SUVs soared 60% over 2017 to 1.3 million, or half the global total. At the same time, industry revenue was squeezed by a 4.1% fall in total Chinese auto sales to 23.7 million vehicles. 

That skid that worsened this year. First-quarter sales fell 13.7% from a year ago. 

Still, China is a top market for global automakers, giving them an incentive to go along with Beijing’s electric ambitions. Total annual sales are expected eventually to reach 30 million, nearly double last year’s U.S. level of 17 million. 

Under Beijing’s new rules, automakers must earn credits for sales of electrics equal to at least 10% of purchases this year and 12% in 2020. Longer-range vehicles can earn double credits. That means some brands can fill their quota if electrics make up as little as 5% of sales. 

Also Tuesday, Nissan Motor Co. and its Chinese partner displayed the Sylphy Zero Emission, an all-electric model designed for China. Based on Nissan’s Leaf, the lower-priced Sylphy went on sale in August.

Mercedes Benz displayed its first all-electric model in China, the EQC 400 SUV. The Germany automaker says it can travel 400 kilometers (280 miles) on one charge and can go from zero to 100 kph (62 mph) in 5.2 seconds. 

Mercedes plans to release 10 electrified models worldwide, with most built in China, according to Hubertus Troska, its board member for China. 

Some Chinese rivals have been selling low-priced electrics for a decade or more. 

China’s BYD Auto, the biggest global electric brand by sales volume, unveiled three new pure-electric models last month. All promise ranges of more than 400 kilometers (280 miles) on one charge. 

Last week, Geely Auto unveiled a sedan under its new electric brand, Geometry, with an advertised range of up to 500 kilometers (320 miles) on one charge. 

Geely’s parent, Geely Holding, launched a joint venture with Mercedes parent Daimler AG in March to develop electrics under the smart brand. Geely Holding is Daimler’s biggest shareholder and also owns Sweden’s Volvo Cars. 

Beijing wants to force automakers to speed up innovation and squeeze out producers that rely too heavily on subsidies. But the technology minister acknowledged in January that China faces a difficult transition as that spending is ending. 

Keeping development on track “will be a challenge,” said Miao Wei, according to a transcript on his ministry’s website. 

The shift creates an opportunity for fledgling Chinese automakers that lag global rivals in gasoline technology. They have just 10% of the global market for gasoline-powered vehicles but account for 50% of electric sales. 

The end of subsidies should lead to dramatic changes, said Zeng of LMC Automotive. He said longer-range, feature-rich models from global majors will replace small producers that cannot survive without subsidies. 

Electric vehicles “will be much more competitive,” said Zeng. 

As the cost of batteries and other components falls, industry analysts say electrics in China could match gasoline vehicles in price and become profitable for manufacturers in less than five years. 

EVs carry a higher sticker price in China than gasoline models. But industry analysts say owners who drive at least 16,000 kilometers (10,000 miles) a year save money in the long run, because maintenance and charging cost less. 
…

Automakers are showcasing electric SUVs and sedans with more driving range and luxury features at the Shanghai auto show, trying to appeal to Chinese buyers in their biggest market as Beijing slashes subsidies that have propelled demand. 

Communist leaders wanting China to lead in electric vehicles have imposed sales targets. That requires brands to pour money into creating models to compete with gasoline-powered vehicles on price, looks and performance at a time when they are struggling with a Chinese sales slump. 

General Motors, Volkswagen, China’s Geely and other brands on Tuesday displayed dozens of models, from luxury SUVs to compacts priced under $10,000, at Auto Shanghai 2019. The show, the global industry’s biggest marketing event of the year, opens to the public Saturday following a preview for reporters.

On Monday, GM unveiled Buick’s first all-electric model for China. GM says the four-door Velite 6 can travel 301 kilometers (185 miles) before the battery needs charging. 

VW showed off a concept electric SUV, the whimsically named ID. ROOMZZ, designed to travel 450 kilometers (280 miles) on one charge. Features include seats that rotate 25 degrees to create a lounge-like atmosphere. 

Communist leaders have promoted “new energy vehicles” for 15 years with subsidies to developers and buyers. That, along with support including orders to state-owned utilities to blanket China with charging stations, is helping to transform the technology into a mainstream product. 

“People’s mindset and governmental policies are more encouraging toward e-cars than in any other country,” said VW CEO Herbert Diess. 

Electric vehicles play a key role in the ruling Communist Party’s plans for government-led development of Chinese global competitors in technologies from robotics to biotech. 

Those ambitions set off Beijing’s tariff war with President Donald Trump. Washington, Europe and other trading partners complain Chinese subsidies to technology developers and pressure on foreign companies to share know-how violate its market-opening commitments. 

Electric car subsidies end next year, replaced by sales quotas. Automakers that fall short can buy credits from competitors that exceed their targets or face possible fines. 

“Most of the traditional car makers are under huge pressure to launch NEVs,” said industry analyst John Zeng of LMC Automotive. 

Last year’s Chinese sales of pure-electric and hybrid sedans and SUVs soared 60% over 2017 to 1.3 million, or half the global total. At the same time, industry revenue was squeezed by a 4.1% fall in total Chinese auto sales to 23.7 million vehicles. 

That skid that worsened this year. First-quarter sales fell 13.7% from a year ago. 

Still, China is a top market for global automakers, giving them an incentive to go along with Beijing’s electric ambitions. Total annual sales are expected eventually to reach 30 million, nearly double last year’s U.S. level of 17 million. 

Under Beijing’s new rules, automakers must earn credits for sales of electrics equal to at least 10% of purchases this year and 12% in 2020. Longer-range vehicles can earn double credits. That means some brands can fill their quota if electrics make up as little as 5% of sales. 

Also Tuesday, Nissan Motor Co. and its Chinese partner displayed the Sylphy Zero Emission, an all-electric model designed for China. Based on Nissan’s Leaf, the lower-priced Sylphy went on sale in August.

Mercedes Benz displayed its first all-electric model in China, the EQC 400 SUV. The Germany automaker says it can travel 400 kilometers (280 miles) on one charge and can go from zero to 100 kph (62 mph) in 5.2 seconds. 

Mercedes plans to release 10 electrified models worldwide, with most built in China, according to Hubertus Troska, its board member for China. 

Some Chinese rivals have been selling low-priced electrics for a decade or more. 

China’s BYD Auto, the biggest global electric brand by sales volume, unveiled three new pure-electric models last month. All promise ranges of more than 400 kilometers (280 miles) on one charge. 

Last week, Geely Auto unveiled a sedan under its new electric brand, Geometry, with an advertised range of up to 500 kilometers (320 miles) on one charge. 

Geely’s parent, Geely Holding, launched a joint venture with Mercedes parent Daimler AG in March to develop electrics under the smart brand. Geely Holding is Daimler’s biggest shareholder and also owns Sweden’s Volvo Cars. 

Beijing wants to force automakers to speed up innovation and squeeze out producers that rely too heavily on subsidies. But the technology minister acknowledged in January that China faces a difficult transition as that spending is ending. 

Keeping development on track “will be a challenge,” said Miao Wei, according to a transcript on his ministry’s website. 

The shift creates an opportunity for fledgling Chinese automakers that lag global rivals in gasoline technology. They have just 10% of the global market for gasoline-powered vehicles but account for 50% of electric sales. 

The end of subsidies should lead to dramatic changes, said Zeng of LMC Automotive. He said longer-range, feature-rich models from global majors will replace small producers that cannot survive without subsidies. 

Electric vehicles “will be much more competitive,” said Zeng. 

As the cost of batteries and other components falls, industry analysts say electrics in China could match gasoline vehicles in price and become profitable for manufacturers in less than five years. 

EVs carry a higher sticker price in China than gasoline models. But industry analysts say owners who drive at least 16,000 kilometers (10,000 miles) a year save money in the long run, because maintenance and charging cost less. 
…

Hundreds of indigenous Karen people in Thailand face evictions from a national park that authorities wish to turn into a World Heritage Site, joining millions in a similarly precarious situation as authorities worldwide push tough conservation laws.

The Kaeng Krachan is Thailand’s biggest national park, sprawled over more than 2,900 square kilometers (1,120 square miles) on the border with neighboring Myanmar.

Renowned for its diverse wildlife, it is also home to about 30 communities of ethnic Karen people, who have traditionally lived and farmed there — and is on a tentative list of world heritage sites.

The United Nations’ cultural agency (UNESCO) had referred the submission back to the Thai government in 2016, asking it to address “rights and livelihood concerns” of the Karen communities, and get their support for the nomination.

The Thai government plans to respond later this year, according to campaigners.

“The communities have not been consulted or reassured on their access to the forest,” said Kittisak Rattanakrajangsri of advocacy group Asia Indigenous Peoples Pact.

“The communities are not opposed to the heritage status,” he told Reuters. “They are just asking that they not be evicted, and that their land rights are secure — because if the park gets heritage status without that, there will be a great many more evictions.”

A spokesman for the forest department did not respond to requests for comment.

A spokesman for the U.N. human rights office (OHCHR) in Bangkok said they had recently facilitated a meeting between a rights organization working with the Karen, and Thai officials.

Worldwide, more than 250,000 people were evicted from protected areas in 15 countries from 1990 to 2014, according to Washington D.C.-based advocacy group Rights and Resources Initiative.

In India, more than 1.9 million indigenous families face evictions after their forest rights claims were rejected.

‘No legal rights’

Since Kaeng Krachan was declared a national park in 1981, hundreds of Karen — a hill tribe people thought to number about 1 million in Thailand — have been evicted, according to activists.

Last year the country’s top court ruled that about 400 who had been evicted in 2011 had no legal right over the land.

“The security of indigenous people in Thailand is so tenuous because they have no legal rights, and no recognition of their dependence on forests,” said Worawuth Tamee, an indigenous rights lawyer.

“The laws have made them encroachers,” he said. 

A 2010 Cabinet resolution had called for recognizing the Karen people’s way of life and their right to earn a livelihood the traditional way. But this has not been implemented, said

Tamee.

After the military government took charge in 2014, it vowed to “take back the forest” and increase forest cover to about 40 percent of the total surface area from about a third.

This has resulted in hundreds of reclamations from farmers and forest dwellers, according to research organization Mekong Region Land Governance.

“It is the biggest challenge facing indigenous people,” said Tamee. “Parks are not just for the enjoyment of city people and tourists. They are also the home of poor, indigenous people who have nowhere else to go.”
…

Hundreds of indigenous Karen people in Thailand face evictions from a national park that authorities wish to turn into a World Heritage Site, joining millions in a similarly precarious situation as authorities worldwide push tough conservation laws.

The Kaeng Krachan is Thailand’s biggest national park, sprawled over more than 2,900 square kilometers (1,120 square miles) on the border with neighboring Myanmar.

Renowned for its diverse wildlife, it is also home to about 30 communities of ethnic Karen people, who have traditionally lived and farmed there — and is on a tentative list of world heritage sites.

The United Nations’ cultural agency (UNESCO) had referred the submission back to the Thai government in 2016, asking it to address “rights and livelihood concerns” of the Karen communities, and get their support for the nomination.

The Thai government plans to respond later this year, according to campaigners.

“The communities have not been consulted or reassured on their access to the forest,” said Kittisak Rattanakrajangsri of advocacy group Asia Indigenous Peoples Pact.

“The communities are not opposed to the heritage status,” he told Reuters. “They are just asking that they not be evicted, and that their land rights are secure — because if the park gets heritage status without that, there will be a great many more evictions.”

A spokesman for the forest department did not respond to requests for comment.

A spokesman for the U.N. human rights office (OHCHR) in Bangkok said they had recently facilitated a meeting between a rights organization working with the Karen, and Thai officials.

Worldwide, more than 250,000 people were evicted from protected areas in 15 countries from 1990 to 2014, according to Washington D.C.-based advocacy group Rights and Resources Initiative.

In India, more than 1.9 million indigenous families face evictions after their forest rights claims were rejected.

‘No legal rights’

Since Kaeng Krachan was declared a national park in 1981, hundreds of Karen — a hill tribe people thought to number about 1 million in Thailand — have been evicted, according to activists.

Last year the country’s top court ruled that about 400 who had been evicted in 2011 had no legal right over the land.

“The security of indigenous people in Thailand is so tenuous because they have no legal rights, and no recognition of their dependence on forests,” said Worawuth Tamee, an indigenous rights lawyer.

“The laws have made them encroachers,” he said. 

A 2010 Cabinet resolution had called for recognizing the Karen people’s way of life and their right to earn a livelihood the traditional way. But this has not been implemented, said

Tamee.

After the military government took charge in 2014, it vowed to “take back the forest” and increase forest cover to about 40 percent of the total surface area from about a third.

This has resulted in hundreds of reclamations from farmers and forest dwellers, according to research organization Mekong Region Land Governance.

“It is the biggest challenge facing indigenous people,” said Tamee. “Parks are not just for the enjoyment of city people and tourists. They are also the home of poor, indigenous people who have nowhere else to go.”
…

Mexican President Andres Manuel Lopez Obrador said on Monday he will create a “Robin Hood” institute to return to the people the ill-gotten wealth seized from corrupt politicians and gangsters.

His administration is drawing up a bill to create an independent “Robin Hood” institute “against the corrupt” that would put confiscated goods such as real estate, jewelry and cars into the public’s hands, the president told reporters.

“Let’s quickly return everything to the people that’s been stolen,” he said at his regular morning news conference.

For example, the institute could assign seized homes to municipalities for schools, hospitals or elderly care centers, he said. Assets seized by the government tend to have been ransacked or require expensive upkeep, he noted.

He did not estimate the value of the assets, or offer details on how they would be given back to the people.

Since taking office in December, veteran leftist Lopez Obrador has rolled out a string of welfare programs for the poor and the elderly, cut salaries for top civil servants and says he is saving public money by eliminating corruption.

Lopez Obrador has shunned the often luxurious trappings of Mexico’s wealthy elites, choosing to fly coach and drive through the capital in a white Volkswagen Jetta.

Immediately upon taking office, he turned over the presidential palace to the public and put his predecessor’s official plane up for sale.
…

Mexican President Andres Manuel Lopez Obrador said on Monday he will create a “Robin Hood” institute to return to the people the ill-gotten wealth seized from corrupt politicians and gangsters.

His administration is drawing up a bill to create an independent “Robin Hood” institute “against the corrupt” that would put confiscated goods such as real estate, jewelry and cars into the public’s hands, the president told reporters.

“Let’s quickly return everything to the people that’s been stolen,” he said at his regular morning news conference.

For example, the institute could assign seized homes to municipalities for schools, hospitals or elderly care centers, he said. Assets seized by the government tend to have been ransacked or require expensive upkeep, he noted.

He did not estimate the value of the assets, or offer details on how they would be given back to the people.

Since taking office in December, veteran leftist Lopez Obrador has rolled out a string of welfare programs for the poor and the elderly, cut salaries for top civil servants and says he is saving public money by eliminating corruption.

Lopez Obrador has shunned the often luxurious trappings of Mexico’s wealthy elites, choosing to fly coach and drive through the capital in a white Volkswagen Jetta.

Immediately upon taking office, he turned over the presidential palace to the public and put his predecessor’s official plane up for sale.
…

A U.S. government agency says it plans to invest hundreds of millions of dollars in businesses that empower women in Africa.

President Donald Trump’s daughter, Ivanka Trump, and the acting head of the Overseas Private Investment Corporation (OPIC), David Bohigian, announced the initiative Monday in Addis Ababa, Ethiopia, where they are part of a U.S. government delegation.

A statement from OPIC says the “2X Africa” initiative aims to mobilize $1 billion and directly invest $350 million in companies and funds “owned by women, led by women,” or by “providing a good or service that intentionally empowers women on the continent.”

The statement said that on Sunday, Bohigian signed a “letter of interest” with an Ethiopian company called Muya to help support the company through OPIC financing. Muya, owned by fasion designer Sara Abera, produces household products and was the first Ethiopian company to obtain membership in the World Fair Trade Organization.

Ivanka Trump visited Muya on Sunday after she arrived in Addis Ababa for a summit on African women’s economic inclusion and empowerment.

She is in the East African country to promote a $50 million initiative enacted by her father in February that is aimed at encouraging women’s employment in developing countries.

“Fundamentally, we believe that investing in women is a smart development policy and it is a smart business,” Trump said after sampling coffee at a traditional Ethiopian ceremony. “It’s also in our security interest, because women, when we’re empowered, foster peace and stability.”

Trump also laid a wreath at an Ethiopian Orthodox church to honor the victims of last month’s Ethiopian Airlines crash that killed all 157 people on board.

It was not immediately clear if the controversy that surrounds the U.S. president will follow his daughter to Africa. The president has not been kind in his remarks about Africa and its migrants.

Ivanka Trump is also scheduled to meet with Ethiopian President Sahle-Work Zewde and Prime Minister Abiy Ahmed before going on to Ivory Coast, where she will attend a meeting on economic opportunities for women in West Africa.

She is also scheduled to make an appearance at a World Bank policy summit.

 
…

Elizabeth Warren is vowing to prohibit new fossil fuel leasing on public lands if she’s elected president, one of several new energy proposals she rolled out on Monday before a campaign swing in two Western states.

Warren, a U.S. senator from Massachusetts, already has launched more than a half-dozen new proposals since entering the Democratic primary , outpacing her many rivals in a calculated bid to lead 2020′s ideas race. Her latest addition to her policy agenda aims to reverse the significant climb in drilling on public lands under President Donald Trump while also fleshing out her approach to climate change, a key issue for her party’s liberal base.

Besides an executive order barring new fossil fuel leases on public lands on shore and offshore, Warren said Monday that she would work toward boosting U.S. electricity generation from renewable sources offshore or on public lands. Her plan also includes free entry to national parks, the reinstatement of Obama-era environmental policies Trump rolled back and the creation of a service program to help maintain public lands.

“Any serious effort to address climate change must include public lands — fossil fuel extraction in these areas is responsible for nearly a quarter of all U.S. greenhouse gas emissions,” Warren wrote in a Monday blog post announcing her proposals.

Warren is set to discuss the public lands policies this week during campaign stops in South Carolina, Colorado and Utah.

Her proposals, particularly the bid to end new fossil fuel leasing on public lands, are likely to draw plaudits from environmental groups while running afoul of the oil and gas industry, which has benefited from millions of acres of public land offered for lease since Trump took office. Advocacy groups had urged then-President Barack Obama to halt new leases on federal land without success.

However, the Trump administration’s plans for new offshore drilling have sparked legal challenges of their own, including one affecting tests on the Atlantic coast that’s backed by the Republican attorney general of South Carolina.

Warren’s bid for a dramatic increase in renewable electricity generation on public land and offshore is a major turnabout from current policy. She acknowledged in her blog post that her goal is “nearly ten times what we are currently generating” but billed it as achievable.

Among Warren’s other policy rollouts this year are proposals to tax the nation’s wealthiest people and tax corporations with profits greater than $100 million , a universal child care plan and proposals designed to decrease consolidation in the tech industry and the agriculture industry.
…

A dispute between Haiti and a U.S. energy trading firm is leading to long blackouts and fuel shortages in the Caribbean nation, feeding anger at President Jovenel Moise’s government following the collapse of a supply deal with Venezuela last year.

The capital Port-au-Prince’s fragile power grid was dealt a blow when Novum Energy Trading Corp suspended shipments in February, leaving residents without electricity for days and many gas stations with no fuel at the pumps.

Novum says the government owes it $40 million in overdue payments for fuel. Haitian officials did not reply to requests for comment.

The Western Hemisphere’s poorest nation, Haiti long relied on fuel shipments from nearby OPEC member Venezuela, which offered cheap financing to several Caribbean nations to buy its gasoline, diesel and other products through a program called Petrocaribe.

But the scheme fell apart last year due to economic turmoil in Venezuela, forcing Haiti – a nation of 11 million people – to return to international markets.

Novum, which has supplied Haiti with fuel for more than four years, stepped up its shipments as the Petrocaribe deal unravelled. Novum said it supplied 80 percent of Haiti’s gasoline and diesel needs last year.

On Feb. 27, Novum anchored a vessel carrying 150,000 barrels of gasoline off Port-au-Prince until the payment dispute could be resolved. The cargo was equivalent to roughly half of Haiti’s monthly consumption of gasoline, according to industry experts.

After more than a month waiting, Novum on April 4 said the situation was “untenable” and sent the vessel to Jamaica to take on provisions.

Youri Chevry, mayor of Port-au-Prince, a sprawling city of more than 2.6 million people, said electricity and gasoline shortages had grown worse over the past month as Haiti waited for the shipment.

“It’s a very bad situation … It has a lot of repercussions,” he said.

Chris Scott, Novum’s chief financial officer, said the vessel would not dock until the government could pay. He said Novum had taken such measures “fairly regularly” since mid-2018 as Haiti started to fall behind on payments after the Petrocaribe program collapsed.

“They need to pay in order for us to be able to discharge,” Scott said.

A government official, who asked not to be identified, said fuel distribution companies in Haiti had not paid the government for gasoline and diesel it purchased on their behalf from Novum. That in turn meant the government could not pay the U.S. company for the fuel.

The official said other companies were still supplying Haiti with fuel. He did not provide details.

The scarcity of fuel and growing economic problems has put basic necessities increasingly out of reach for many Haitians, despite a $229 million loan program from the International Monetary Fund (IMF) reached last month.

“I’m barely surviving,” said 40-year-old Amos, one of scores of hawkers selling black market gasoline on a busy street in the capital. On bad day, he earns little more than 50 cents. “It’s going to be difficult to see change in this country.”

Protests

Protesters have for months agitated to remove Moise, a former businessman who took office in February 2017. They blame him for inflation running at around 17 percent, the depreciation of the gourde currency, and for not investigating alleged misuse of Petrocaribe funds by public officials.

Between Feb. 7 and Feb. 27, the protests claimed at least 26 lives and injured more than 77 people, according to the Inter-American Commission on Human Rights, though the situation has calmed since then.

Moise has refused to step aside, saying in February he would not hand power to the leaders of violent protests. He pledged his government would take steps to address people’s grievances.

Corruption is a perennial concern in Haiti. The nation ranked 166 from 183 countries in Transparency International’s global survey of perceptions of corruption last year – only Venezuela had a worse ranking in the Western Hemisphere.

International pressure has grown for an investigation. In a March 20 letter, 104 member of the U.S. Congress asked President Donald Trump’s government to support investigations into Petrocaribe in Haiti, pointing to the alleged misuse of $2 billion in low-interest loans under the scheme.

At the height of the Petrocaribe program, Venezuelan fuel covered nearly 70 percent of Haiti’s needs. Venezuela provided long-term financing for the oil on flexible terms, with a maximum 2 percent interest rate and a two-year grace period.

Petrocaribe included a fund for infrastructure and social projects in member countries.

By April 2018, Venezuela was no longer exporting fuel to Haiti, according to documents from Venezuelan state oil company PDVSA seen by Reuters.

After the program lapsed, Haitian energy companies lacked the hard U.S. currency to be able to buy fuel on international markets, said an executive at one firm, who asked not to be identified.

Andre Michel, an opposition leader looking into the alleged corruption surrounding Petrocaribe, said it was difficult to estimate how much was stolen but the signs of misused of funds appeared compelling.

“No serious projects have been completed: no hospitals, no campus for students, no roads, no housing projects,” he said.

An oft-heard lament on the streets of Port-au-Prince is that while politicians pilfer billions, Haitians go hungry. Roads in the city are potholed and the vestiges of a deadly 2010 earthquake can still be seen at practically every corner.

Destine Legagneur, a small business owner, whose shop is a stone’s throw from the presidential palace, said Haitians would be scarred by the Petrocaribe scheme for years to come.

“That money is going to have to be paid to Venezuela one way or another,” he said. “If it’s not me, it’s my kids that are going to have to pay.”
…

Ivanka Trump arrived in Addis Ababa, the capital of Ethiopia, Sunday for a summit on African women’s economic inclusion and empowerment.

President Donald Trump’s daughter and senior adviser visited a coffee shop and textile company in Addis Ababa. She is there to promote a $50 million initiative enacted by her father in February that is aimed at encouraging women’s employment in developing countries.

The Women’s Global Development and Prosperity (W-GDP) Initiative says it hopes to “reach 50 million women by 2025, through the work of the the United States Government and its partners.”

“Fundamentally, we believe that investing in women is a smart development policy and it is a smart business,” Ivanka Trump said after sampling coffee at a traditional Ethiopian ceremony. “It’s also in our security interest, because women, when we’re empowered, foster peace and stability.”

It was not immediately clear if the controversy that surrounds the U.S. president will follow his daughter to Africa. The president has not been kind in his remarks about Africa and its migrants.

“I don’t think people will have a good feeling” Ethiopian journalist Sisay Woubshet said about the president’s daughter visit to the continent.

Marakle Tesfaye, an activist, said, however, “I think she’s coming genuinely to empower women and it’s good that she’s coming because she will push forward our agenda.”

Ivanka Trump will also meet with meet with Ethiopian President Sahle-Work Zewde and Prime Minister Abiy Ahmed before going on to Ivory Coast, where she will attend a meeting on economic opportunities for women in West Africa.

She is also scheduled to an make an appearance at a World Bank policy summit.
…

Ivanka Trump arrived in Addis Ababa, the capital of Ethiopia, Sunday for a summit on African women’s economic inclusion and empowerment.

President Donald Trump’s daughter and senior adviser visited a coffee shop and textile company in Addis Ababa. She is there to promote a $50 million initiative enacted by her father in February that is aimed at encouraging women’s employment in developing countries.

The Women’s Global Development and Prosperity (W-GDP) Initiative says it hopes to “reach 50 million women by 2025, through the work of the the United States Government and its partners.”

“Fundamentally, we believe that investing in women is a smart development policy and it is a smart business,” Ivanka Trump said after sampling coffee at a traditional Ethiopian ceremony. “It’s also in our security interest, because women, when we’re empowered, foster peace and stability.”

It was not immediately clear if the controversy that surrounds the U.S. president will follow his daughter to Africa. The president has not been kind in his remarks about Africa and its migrants.

“I don’t think people will have a good feeling” Ethiopian journalist Sisay Woubshet said about the president’s daughter visit to the continent.

Marakle Tesfaye, an activist, said, however, “I think she’s coming genuinely to empower women and it’s good that she’s coming because she will push forward our agenda.”

Ivanka Trump will also meet with meet with Ethiopian President Sahle-Work Zewde and Prime Minister Abiy Ahmed before going on to Ivory Coast, where she will attend a meeting on economic opportunities for women in West Africa.

She is also scheduled to an make an appearance at a World Bank policy summit.
…

Cryptocurrency exchanges are growing in the Philippines, despite a downturn last year in the value of the virtual currencies, due to growing popular demand and lenience among regulators.

Authorities in the developing Southeast Asian country have permitted at least 29 exchanges of cryptocurrency following three that the central bank said it approved this week, according to domestic media reports. 

That count, which is high for Asia, follows a total of 10 exchanges permitted by the central bank. The Cagayan Economic Zone Authority in the archipelago’s far north has issued 19 additional permits, the zone’s website said in October. 

These exchanges feed into the development of a fast-growing financial technology, or fintech, sector in the Philippines, said Jonathan Ravelas, chief market strategist with Banco de Oro UniBank in Metro Manila.

“Fintech appears to be very advanced in the Philippines,” he said. Consumers, he said, “eventually look at the mobility of having it in mobile wallets, [which] gives them flexibility to use money.”

Uses for cryptocurrency

Cryptocurrency, most notably its standard bearer Bitcoin, became an investment vehicle in much of the world about a decade ago. But a 70% drop in Bitcoin prices last year weakened enthusiasm for crypto overall. 

​Filipinos generally pick more traditional investments such as equities, Ravelas said, but young companies are eyeing cryptocurrency to raise capital, a process called initial coin offerings. Seven in 10 Filipinos have no bank account, he added, so virtual currency gives those consumers a new option for making payments.

That population would be able to jump on a currency source that’s open to anyone and transparent because of its online transaction ledger called the blockchain.

Government support

The central bank governor may see the cryptocurrency trade as part of his bigger plan to advance the country’s electronic payment systems, analysts say.

Cryptocurrency “probably goes toward those efforts at facilitating electronic payments. I think that’s the key point,” said Christian de Guzman, vice president and senior credit officer with Moody’s Sovereign Risk Group in Singapore.

The 2016 National Payment Systems Act, among others, “bolsters the central bank’s capacity to foster the efficiency of payment systems as pipelines of funds in the financial market,” the authority’s governor Benjamin Diokno said in a speech last month.

The central bank and Securities and Exchange Commission are “working towards regulating cryptocurrencies to protect the Filipino people,” domestic Bitcoin and blockchain news website Bitpinas said in November. “This is a positive step towards adoption as this move will give users security and confidence in dealing with it.”

Said de Guzman: “A certain segment of the population is certainly very technically sophisticated.” 

First mover advantage?

The Philippines, though later than much of East Asia in picking up cryptocurrency, would eventually stand out if regulators embrace rather than restrict it.

China and South Korea have placed curbs on certain types of crypto trade. Both banned initial coin offerings in 2017, and China ordered the closure of cryptocurrency exchanges as part of that move. South Korea has at least 21 exchanges.

​Japan is widely seen as Asia’s most liberal place for cryptocurrency. That country, which has let 17 exchanges fully register, overtook China in 2017 as the biggest Bitcoin market in the world with 58 percent of the global volume. Japan declared Bitcoin legal tender in 2017.

The Philippines in its current groove should take a “first mover advantage,” said Kenneth Ameduri, financial analyst and CEO of the crypto-specialized news website Crush the Street in the United States.

“I think the Philippines understand that it’s going to be a very big deal to be involved with cryptocurrency, because it’s going to happen no matter what, and if they’re the ones to treat this capital best, the capital is going to flow there and the other jurisdictions are just going to completely miss out,” Ameduri said.

The Philippines might eventually look harder at the role of cryptocurrency in falsifying tax payments and paying for illegal drugs, de Guzman said. Taxation and drugs are already sticky issues without crypto.

Exchanges contacted for this report declined comment.
…

In a twist, China has announced that it has persuaded Malaysia to resume a canceled rail project worth $10.7 billion. The sudden about-face by Kuala Lumpur, which had earlier rejected the Chinese-funded project, will be a big boost for China ahead of a Belt and Road Forum in Beijing later this month, say analysts.

China is hosting its second annual Belt and Road Forum from April 25 to 27 in Beijing. The event is likely to include the heads of state and governments of 40 different countries and officials from 60 others as Beijing tries to win more support for the trillion-dollar infrastructure and investment plan known as the Belt and Road Initiative, or BRI.

In recent months, the initiative has faced tough challenges as Sierra Leone, Bangladesh, Myanmar and Malaysia canceled or reduced the size of previously negotiated deals. Although Malaysia is back on board, it has forced China to accept a 30 percent reduction in the price of the project.

The reworked deal with Malaysia highlights how China is trying to face up to widespread criticism about the financing costs of its projects and concerns expressed by experts and government leaders around the world that the projects are nothing but diplomacy debt traps.

“I think China is trying to make changes. But it is trying to do too much too quickly and with too much skepticism facing it. No wonder it’s having a torrid time,” said Kerry Brown, director of the Lau China Institute at King’s College London.

Analysts said it is likely that the forum will be mostly about optics, but some real deals could be finalized. Given the heavy criticism about the projects, there will be high expectations from participants, which Beijing has said will include 40 heads of states and governments.  

“They will presumably want something more than mere protocol. Even the promise of deals is better than none at all,” Brown said.

Analysts add that, despite the criticism of the plan, which has been loud at times, the BRI has been able to attract dozens of foreign governments and has been backed by institutions like the World Bank because it is offering to build much-needed infrastructure and help foot the cost.

“The reason so many countries are interested in BRI is because China is offering something no one else is and there is genuine demand for what BRI represents,” said Paul Haenle, director of the Carnegie-Tsinghua Center for Global Policy in Beijing.

Still, it has not been easy for Chinese leaders to wade through the skepticism and sometimes strong opposition to the program from the United States’ and China’s neighbor, India. Critics see BRI as China’s attempt to impose financial imperialism on economically weak but strategically located countries. Many have also raised questions because of the lack of transparency surrounding the projects.

Recently however, there have been signs China is modifying the program to suit the needs of its customers, particularly those like Malaysia and Italy, which are not as desperately in need of Beijing’s financial largesse and deep pockets. Italy recently joined the BRI bandwagon after visiting Chinese President Xi Jinping provided the kind of assurances Rome sought.

“Chinese regulators realize they need to be pragmatic if these projects are to be successful, especially where there is local pushback on political and societal levels,” said Andrew Polk, partner at Beijing-based consultancy firm Trivium China.

There are still serious questions about the kind of changes that Beijing is ready to make. Some analysts believe that China might offer better financial terms and stop its practice of flooding foreign projects with Chinese workers; however, they say Beijing is unlikely to make changes in crucial areas like the transparency of deals and Chinese companies involved in overseas projects.

“Beijing could make the terms of deals public, which would be a major signal of change, but no indications of that happening soon,” said Jonathan Hillman, director of the Reconnecting Asia Project at the Center for Strategic and International Studies in Washington.

“Greater transparency would constrain Beijing’s ability to funnel cash through BRI projects to its friends in high places,” he said.

There have been problems even in places where Chinese projects have proven to be successful in terms of implementation. For instance, Chinese companies have ensured the commercial success of the Greek port city of Piraeus. “But its political impact is mixed. Greeks might welcome Chinese investment, but they don’t want China’s environmental or labor practices,” Hillman said.

The U.S. recently described BRI as a “vanity project” and announced it would not send a high-level delegation to the forum. Analysts are wondering if the U.S. will stay away from the meeting altogether.

“The U.S. has made its position clear. It opposes the BRI. Attendance under the current circumstances with the trade war unresolved would be odd,” Brown said.

Haenle said he believes the U.S. should engage with the BRI along with its friends and partners.

“The U.S. is right to point out the flaws in the Belt and Road Initiative, but if it wishes to see them corrected, it must also put forward its own alternatives and refrain from knee-jerk reactions,” he said.
…

The latest power outage started another tough week for factory owner Antonello Lorusso in the city of Valencia, once Venezuela’s industrial powerhouse.

For the past month, unprecedented nationwide blackouts paralyzed the factory and the rest of the country, cutting off power, water and cell service to millions of Venezuelans.

Lorusso’s packaging plant, Distribuidora Marina, had already struggled through years of hyperinflation, vanishing client orders, and a flight of employees. Now the situation was worse.

For the whole month of March, Lorusso said, his company produced only its single daily capacity: 100 tonnes of packaged sugar and grains. When Reuters visited on April 8, he was using a generator to keep one of his dozen packaging machines working to fulfill the single order he had received. Power had been on for a few hours, but was too weak to run the machines.

“There is no information, we don’t know if the blackouts will continue or not,” said Lorusso, who has owned the factory for over 30 years. He said the plant had just a day’s worth of power over the previous week.

Power has been intermittent since early March, when the first major blackout plunged Venezuela into a week of darkness.

Electricity experts and the opposition have called the government incompetent at maintaining the national grid. President Nicolas Maduro has accused the opposition and the U.S. government of sabotage.

Venezuela’s industry has collapsed during six years of recession that have halved the size of the economy. What is left is largely outside of the capital Caracas, the only big city that Maduro’s government has excluded from a power rationing plan intended to restrict the load on the system.

In Valencia, a few multinational companies like Nestle and Ford Motor Co cling on. But the number of companies based there has fallen to a tenth of the 5,000 there were two decades ago, when Maduro’s predecessor Hugo Chavez became president, according to the regional business association.

‘The game is over’

The government said on April 4 that the power rationing plan meant Valencia would spend at most 3 hours a day without electricity, but a dozen executives and workers there said outages were still lasting over 10 hours. Generators are costly and can only power a fraction of a business’s operations, they said. Many factories have shut down.

“The game is over. Companies are entering a state of despair due to their inviability,” said an executive of a food company with factories in Valencia, speaking on condition of anonymity.

Industrial companies this year are operating below 25 percent of capacity, according to industry group Conindustria. It estimated companies lost about $220 million during the days in March without power, and would lose $100 million more in April.

Nestle’s factory, which produces baby food, halted during the first blackout in early March and operations again froze two weeks later, with employees sent home until May, according to Rafael Garcia, a union leader at the plant. He blamed the most recent stoppage on very low sales of baby food which cost almost a dollar per package, or about what a person on minimum wage earns in a week.

“My greatest worry is the closure of the factory,” said Garcia, as he sat at a bus stop on Valencia’s Henry Ford avenue, in the city’s industrial outskirts where warehouses sit empty and streets are covered in weeds.

Nestle did not respond to emails seeking comment.

Ford’s plant along the avenue was working at a bare minimum for several months, union leaders said. In December, the carmaker began offering buyouts to staff after it received no orders for 2019, they said. Ford, in December, said it had “no plans to leave the country.”

The outages have idled more than just factories. In the countryside, lack of power has prevented farmers from pumping water to irrigate fields.

Since January, farmers have sown 17,500 hectares of crops, a third of the area seeded last year, and they fear losing the harvest due to the lack of water, according to agricultural associations. In the central state of Cojedes, several rice growers have already lost their crops, farmers said.

“In the rural areas, the blackouts last longer,” said Jose Luis Perez, spokesman for a rice producers federation. Producers of cheese, beef, cured meats and lettuce told Reuters orders had dropped by half in March as buyers worried the food would perish once their freezers lost power in the next blackout.

Back in Valencia, Lorusso was preparing his factory for the new era of scarce power. He has converted one unused truck in his parking lot into a water tank. He plans to sell another to buy a second generator.

“We’ve spent years getting used to things. Then we were dealt this hard blow, and now we’re trying to find ways to cope,” he said.
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Amazon.com Inc Chief Executive Jeff Bezos on Thursday challenged retailers to hike their minimum wages to $16 an hour, prompting a comeback from Walmart Inc which asked its rivals to pay taxes.

“Today I challenge our top retail competitors (you know who you are!) to match our employee benefits and our $15 minimum wage,” the billionaire entrepreneur said in a letter to shareholders. “Do it! Better yet, go to $16 and throw the gauntlet back at us.”

The online retailer raised its minimum wage to $15 per hour for U.S. employees from November, giving in to critics of poor pay and working conditions at the company.

Some critics have said the hike was insufficient and note that Amazon paid zero U.S. federal income tax on more than $11 billion in profits before taxes in 2018, and received a $129 million tax rebate from the federal government.

Walmart’s executive vice president of corporate affairs, Dan Bartlett, responded to Bezos by tweeting, “Hey retail competitors out there (you know who you are) how about paying your taxes?”

Walmart, which has raised its minimum wage twice since 2015, pays an entry wage of $11 per hour. CEO Doug McMillon has said Walmart’s average U.S. hourly wage is $17.50 including bonuses based on store performance, and excluding health care benefits.

The two retailers, which are fierce rivals, rarely go after one another other publicly.

Amazon’s wage hike came as U.S. unemployment was at a near two-decade low, with retailers and shippers competing for hundreds of thousands of workers for the all-important holiday shopping season.

Bezos said in his letter that the wage hike has benefited more than 250,000 Amazon employees and over 100,000 seasonal employees who worked during the last holiday season at Amazon sites in the United States.

Amazon’s third-party sales in 2018 accounted for 58 percent of total sales, up from 56 percent in 2017, Bezos said.

Amazon has said that it pays all the required taxes in every country where it operates, including $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years.

“Corporate tax is based on profits, not revenues, and our profits remain modest given retail is a highly competitive, low-margin business,” according to recent Amazon statements.

 
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Walt Disney Co on Thursday said its new family-friendly streaming service will cost $7 monthly or $70 annually with a slate of exclusive TV shows and movies from some of the world’s most popular entertainment franchises in a bid to challenge the digital dominance of Netflix.

The ad-free monthly subscription called Disney+ is set to launch on Nov. 12 and in every major global market over time, the company said. In addition to Disney films and TV shows, it will feature programming from the Marvel superhero universe, the “Star Wars” galaxy, “Toy Story” creator Pixar animation and the National Geographic channel.

The company said it has struck deals with Roku Inc and Sony Corp to distribute Disney+ on streaming devices and console gaming systems and expects it to be widely available on smart televisions, tablets, and other outlets by launch.

Disney kicked off its presentation to Wall Street analysts at its Burbank, California, headquarters on Thursday with a video that demonstrated the breadth of its portfolio, showing clips from dozens of classic TV shows and movies from “Frozen” and “The Lion King” to “Avatar” and “The Sound of Music.”

Executives said they see opportunities to take its ESPN+ sport streaming video service to Latin America and are looking into international expansion of its Hulu streaming video business, which offers movies and shows targeted to adults.

The entertainment giant is trying to transform itself from a cable television powerhouse into a leader of streaming media. Chief Executive Bob Iger in February called streaming the company’s “No. 1 priority.”

Wall Street has pinned high hopes on the new service, which analysts expect would cost about $7.50 monthly and lure about 7.2 million U.S. subscribers in 2020 and 13.66 million by 2021, according to a poll of analysts conducted by Reuters.

The digital push is Disney’s response to cord-cutting, the dropping of cable service that has hit its ESPN sports network and other channels, and the rise of Netflix Inc. The Silicon Valley upstart has amassed 139 million customers worldwide since it began streaming 12 years ago.

The Mouse House, as Disney is known, will join the market at a time when audiences are facing a host of choices, and monthly bills, for digital entertainment. Apple Inc, AT&T Inc’s WarnerMedia and others plan new streaming services. To bolster its potential digital portfolio, Disney recently purchased film and TV assets from Rupert Murdoch’s 21st Century Fox and gained prized properties such as “Avatar.”

In a January regulatory filing, Disney reported losses of more than $1 billion for streaming-related investments in Hulu and technology company BAMtech.

Disney had been supplying new movies such as “Black Panther” and “Beauty and the Beast” to Netflix after their runs in theaters but ended that arrangement this year to feed its own streaming ambitions. The company estimated it is foregoing $150 million in licensing revenue this fiscal year by saving programming for its own platforms.

The Disney+ programming will draw in part from Disney’s deep library of classic family films. It also will include exclusive original content such as a live-action “Star Wars” series called “The Mandalorian,” a show focused on Marvel movie villain Loki, and animated “Monsters at Work,” inspired by hit Pixar movie “Monsters Inc.”

Some new Disney movies, such as a “Lady and the Tramp” remake, will go directly to the Disney+ app. Other new releases will appear on Disney+ after their run in theaters and after the cycle out of the home video sales window, executives have said.
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