Category Archives: News

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US Adds Chinese e-commerce Site to ‘Notorious’ List for IP Protection

The U.S. Trade Representative said on Thursday it has added Pinduoduo.com, China’s third-largest e-commerce platform, to its “notorious markets” list for a proliferation of counterfeit products, as the agency also called out China as a priority to watch for intellectual property rights concerns.

In its annual review of trading partners’ protection of intellectual properties rights and so-called “notorious markets,” the U.S. Trade Representative said 36 countries warranted additional bilateral engagement over these issues. The agency kept China on the list and lifted Saudi Arabia up as a priority.

The release of the report comes as the United States and China are embroiled in negotiations to end a tit-for-tat tariff battle that has roiled supply chains and cost both countries billions. The two countries are due to resume talks in Beijing next week.

USTR also kept Alibaba Group’s taobao.com on the “notorious” list, even though the parent company has “taken some steps” to curb the offer and sale of copyright infringing products, according to the report.

The agency bumped Saudi Arabia up to priority in part due to an illicit service for pirated content called BeoutQ, the report said.

Despite “extensive engagement” in Saudi Arabia by both U.S. government and private stakeholders, treatment of intellectual property rights “continued to deteriorate,” USTR said.

 

Irish Regulator Opens Inquiry Into Facebook Over Password Storage

Facebook’s lead regulator in the European Union, Ireland’s Data Protection Commissioner, on Thursday said it had launched an inquiry into whether the company violated EU data rules by saving user passwords in plain text format on internal servers.

The probe is the latest to be launched out of Dublin into the social network giant. The Irish regulator in February said it had seven statutory inquiries into Facebook and three more into Facebook-owned Instagram and WhatsApp.

Facebook in March announced that it has resolved a glitch that exposed passwords of millions of users stored in readable format within its internal systems to its employees.

The passwords were accessible to as many as 20,000 Facebook employees and dated back as early as 2012, cyber security blog KrebsOnSecurity, which first reported the issue, said in its report.

“The Data Protection Commission (DPC) was notified by Facebook that it had discovered that hundreds of millions of user passwords, relating to users of Facebook, Facebook Lite and Instagram, were stored by Facebook in plain text format in its internal servers,” the DPC said in a statement.

“We have this week commenced a statutory inquiry in relation to this issue to determine whether Facebook has complied with its obligations under relevant provisions of the GDPR,” it added.

The DPC said in February that it expected to conclude the first of its investigations into Facebook’s use of personal data this summer and the remainder by the end of the year.

Ireland hosts the European headquarters of a number of U.S. technology firms. Under the EU’s General Data Protection Regulation’s (GDPR) “One Stop Shop”, the Irish commissioner is also the lead regulator for Twitter, LinkedIn Apple and Microsoft.

As part of regulations introduced last year, a firm found to have broken data processing and handling rules can be fined up to 4 percent of their global revenue of the prior financial year, or 20 million euros, whichever is higher.

Canada’s federal privacy commissioner on Thursday announced the results of a probe that found Facebook had committed serious contraventions of privacy law and failed to take responsibility for protecting the personal information of citizens.

Irish Regulator Opens Inquiry Into Facebook Over Password Storage

Facebook’s lead regulator in the European Union, Ireland’s Data Protection Commissioner, on Thursday said it had launched an inquiry into whether the company violated EU data rules by saving user passwords in plain text format on internal servers.

The probe is the latest to be launched out of Dublin into the social network giant. The Irish regulator in February said it had seven statutory inquiries into Facebook and three more into Facebook-owned Instagram and WhatsApp.

Facebook in March announced that it has resolved a glitch that exposed passwords of millions of users stored in readable format within its internal systems to its employees.

The passwords were accessible to as many as 20,000 Facebook employees and dated back as early as 2012, cyber security blog KrebsOnSecurity, which first reported the issue, said in its report.

“The Data Protection Commission (DPC) was notified by Facebook that it had discovered that hundreds of millions of user passwords, relating to users of Facebook, Facebook Lite and Instagram, were stored by Facebook in plain text format in its internal servers,” the DPC said in a statement.

“We have this week commenced a statutory inquiry in relation to this issue to determine whether Facebook has complied with its obligations under relevant provisions of the GDPR,” it added.

The DPC said in February that it expected to conclude the first of its investigations into Facebook’s use of personal data this summer and the remainder by the end of the year.

Ireland hosts the European headquarters of a number of U.S. technology firms. Under the EU’s General Data Protection Regulation’s (GDPR) “One Stop Shop”, the Irish commissioner is also the lead regulator for Twitter, LinkedIn Apple and Microsoft.

As part of regulations introduced last year, a firm found to have broken data processing and handling rules can be fined up to 4 percent of their global revenue of the prior financial year, or 20 million euros, whichever is higher.

Canada’s federal privacy commissioner on Thursday announced the results of a probe that found Facebook had committed serious contraventions of privacy law and failed to take responsibility for protecting the personal information of citizens.

Brent Oil Hits $75 For First Time in 2019 as Russian Exports Cut

Brent oil rose above $75 per barrel on Thursday for the first time this year as quality concerns forced the suspension of some Russian crude exports to Europe while the United States prepared to tighten sanctions on Iran.

Brent crude futures were at $75.24 by 1156 GMT, up 67 cents. They earlier hit a session high of $75.60, their strongest since Oct. 31.

U.S. West Texas Intermediate crude was at $66.14 per barrel, up 25 cents.

Poland and Germany have suspended imports of Russian crude via the Druzhba pipeline, citing poor quality. Trading sources said the Czech Republic had also halted purchases.

The pipeline can ship up to 1 million barrels per day, or 1 percent of global crude demand, with around 700,000 bpd of flows suspended, according to trading sources and Reuters calculations.

U.S. attempts to drive Iranian oil exports down to zero also boosted prices.

The United States this week said it would end all exemptions for sanctions against Iran, OPEC’s third-largest producer, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.

The U.S. decision comes amid supply cuts led by the Organization of the Petroleum Exporting Countries since the start of the year aimed at propping up prices.

Still, Brian Hook, U.S. special representative for Iran and senior policy adviser to the secretary of state, said on Thursday “there is plenty of supply in the market to ease that transition and maintain stable prices.”

Consultancy Rystad Energy said Saudi Arabia and its main allies could replace lost Iranian oil.

“Saudi Arabia and several of its allies have more replacement barrels than what would be lost from Iranian exports,” said Rystad’s head of oil research, Bjoernar Tonhaugen.

“Since October 2018, Saudi Arabia, Russia, the UAE, and Iraq have cut 1.3 million bpd, which is more than enough to compensate for the additional loss,” he added.

On the supply side, U.S. crude production has risen by more than 2 million bpd since early 2018 to a record of 12.2 million bpd currently, making the United States the world’s biggest oil producer ahead of Russia and Saudi Arabia.

In part because of soaring domestic production, U.S. commercial crude inventories last week soared to 460.63 million barrels, their highest since October 2017, the Energy Information Administration said on Wednesday.

 

 

 

 

South Korean Economy Shrinks Unexpectedly in 1st Quarter

South Korea’s economy unexpectedly shrank in the first quarter, marking its worst performance since the global financial crisis, as government spending failed to keep up the previous quarter’s strong pace and as companies slashed investment. 

The shock contraction reinforced financial market views that the central bank is likely to make a U-turn on policy, shifting to an easing stance and possibly cutting interest rates to counter declining business confidence and growing external risks.

A worse-than-expected downturn in the memory chips sector hit first quarter capital investment, while slumping exports amid the Sino-U.S. trade dispute erased gains from private consumption, the Bank of Korea said Thursday.

Gross domestic product (GDP) in the first quarter declined a seasonally adjusted 0.3 percent from the previous quarter, the worst contraction since a 3.3 percent drop in late 2008 and sliding from 1 percent growth in October-December, the Bank of Korea said Thursday.

None of the economists surveyed in a Reuters poll had expected growth to contract. The median forecast was for a rise of 0.3 percent.

Government spending

“Government spending failed to keep up the bumper boost of the fourth quarter, especially for construction investment, while a drop in business investment was worse than expected due to a downturn in the chips sector,” a BOK official said, adding there was also a strong base effect after solid fourth-quarter growth.

The grim data came a day after the Moon Jae-in government unveiled a 6.7 trillion won ($5.9 billion) supplementary budget to tackle unprecedented air pollution levels and boost weak exports.

Capital investment tumbled 10.8 percent, the worst reading since 1998, while construction investment inched down 0.1 percent, the BOK said.

Exports fall

Exports fell 2.6 percent quarter-on-quarter, a sharper drop than the 1.5 percent decline in the previous three months.

Private consumption gained by 0.1 percent because of a rise in demands for durable goods.

From a year earlier, Asia’s fourth-largest economy grew 1.8 percent in the January-March quarter, compared with 2.5 percent growth in the poll and 3.1 percent in the final quarter of 2018.

Source: Deutsche Bank to Hand Over Trump Loan Documents

Deutsche Bank has begun to provide documents on financing for some of President Donald Trump’s projects to New York State authorities, a source familiar with the matter told AFP on Wednesday.

In mid-March, New York Attorney General Letitia James subpoenaed the German bank, demanding records related to loans and lines of credit granted to the Trump Organization.

The money was intended to finance projects such as Trump hotels in Washington, D.C., Miami and Chicago, another source told AFP last month on the condition of anonymity. 

No comment on CNN report

It was unclear whether Deutsche Bank had provided all the documents requested.

“We remain committed to cooperating with authorized investigations,” a bank spokesman told AFP, while declining to comment on a CNN report that the company was handing over the documents. 

James’ office also declined to comment on the status of the documents regarding financing for the Trump Organization, the holding company that has been run by Trump’s sons Eric and Donald Trump Jr. since he entered the White House.

New York authorities also wanted records related to the Trump Organization’s failed attempt in 2014 to buy the Buffalo Bills football team, the source said on condition of anonymity. 

James demanded the information from Deutsche Bank after Trump’s former personal attorney Michael Cohen testified before Congress, saying among other things that Trump wildly inflated his net worth in order to secure loans from Deutsche Bank.

Bank a source of funding

Deutsche Bank was one of the few major banks to continue to lend to Trump following the bankruptcies of his casinos and other businesses in the 1990s. The German bank in recent years has loaned Trump more than $300 million.

That put the bank at the center of investigations and congressional scrutiny.

When opposition Democrats took control of the House of Representatives in January, they sought information on interest rates granted to the Trump Organization, as well as details on a huge Russian money laundering case that earned Deutsche Bank a $630 million fine in January 2017.

Source: Deutsche Bank to Hand Over Trump Loan Documents

Deutsche Bank has begun to provide documents on financing for some of President Donald Trump’s projects to New York State authorities, a source familiar with the matter told AFP on Wednesday.

In mid-March, New York Attorney General Letitia James subpoenaed the German bank, demanding records related to loans and lines of credit granted to the Trump Organization.

The money was intended to finance projects such as Trump hotels in Washington, D.C., Miami and Chicago, another source told AFP last month on the condition of anonymity. 

No comment on CNN report

It was unclear whether Deutsche Bank had provided all the documents requested.

“We remain committed to cooperating with authorized investigations,” a bank spokesman told AFP, while declining to comment on a CNN report that the company was handing over the documents. 

James’ office also declined to comment on the status of the documents regarding financing for the Trump Organization, the holding company that has been run by Trump’s sons Eric and Donald Trump Jr. since he entered the White House.

New York authorities also wanted records related to the Trump Organization’s failed attempt in 2014 to buy the Buffalo Bills football team, the source said on condition of anonymity. 

James demanded the information from Deutsche Bank after Trump’s former personal attorney Michael Cohen testified before Congress, saying among other things that Trump wildly inflated his net worth in order to secure loans from Deutsche Bank.

Bank a source of funding

Deutsche Bank was one of the few major banks to continue to lend to Trump following the bankruptcies of his casinos and other businesses in the 1990s. The German bank in recent years has loaned Trump more than $300 million.

That put the bank at the center of investigations and congressional scrutiny.

When opposition Democrats took control of the House of Representatives in January, they sought information on interest rates granted to the Trump Organization, as well as details on a huge Russian money laundering case that earned Deutsche Bank a $630 million fine in January 2017.

Facebook Beats Profit Estimates, Sets Aside $3B for Privacy Penalty


Facebook on Wednesday blew away Wall Street profit estimates in the first quarter as it kept a lid on the costs of making its social networks safer, and set aside $3 billion to cover a settlement with U.S. regulators, calming investors who had worried about the outcome of a months-long federal probe.

Shares of the world’s biggest online social network jumped more than 10% after hours.

The U.S. Federal Trade Commission has been investigating revelations that Facebook inappropriately shared information belonging to 87 million of its users with the now-defunct British political consulting firm Cambridge Analytica.

The probe has focused on whether the sharing of data and other disputes violated a 2011 agreement with the FTC to safeguard user privacy. Facebook set aside $3 billion to cover anticipated costs associated with the settlement, but said the charges could reach as high as $5 billion.

Civil penalty

If the settlement is in that range, it would be the largest civil penalty paid to the agency, said David Vladeck, a former FTC official now at Georgetown Law School.

“Everyone expected there would be a substantial civil penalty in this case,” said Vladeck. “There’s no question that Facebook is going to have to settle this matter. Investors want this behind them.”

The accrual cut the company’s net income in the first quarter to $2.43 billion, or $0.85 per share.

Excluding the $3 billion it set aside, Facebook would have earned $1.89 a share, up from $1.69 the year prior and easily beating analysts’ average estimate of $1.63 per share, according to IBES data from Refinitiv.

Total first-quarter revenue rose 26% to $14.9 billion from $12.0 billion last year, compared to analysts’ average estimate of $15.0 billion.

Shares rise 

Shares of Facebook rose 10% to $200.50 in after-hours trade, demonstrating the company’s resilience despite a series of scandals over improperly shared user data and propaganda that made it the target of political scrutiny across the globe.

The company’s shares lost a third of their value last year, after executives first warned about costs associated with its drive to improve safety and slowing growth in revenue and operating margin.

Total expenses in the first quarter were $11.8 billion, up 80% compared with a year ago. The operating margin fell to 22% from 46% a year ago, but would have been 42%  without the one-time expense.

“This is a strong report suggesting that advertisers still see value in Facebook’s platform, as they did before the controversies and scandals erupted,” said Haris Anwar, senior analyst at financial markets platform Investing.com.

Expenses will grow

Executives have forecast that expenses will grow 40% to 50%  in 2019, but say they expect the downward trend to taper off after this year as revenue from new ways of pushing ads and facilitating transactions offset the security spending.

Monthly and daily users of the main Facebook app compared to last quarter were both up 8% to 2.38 billion and 1.56 billion, respectively.

Estimates were for 2.4 billion monthly users and 1.6 billion daily users, according to Refinitiv averages.

 

 

Microsoft Surges Toward Trillion-Dollar Value as Profits Rise

Microsoft said profits climbed in the past quarter on its cloud and business services as the U.S. technology giant saw its market value close in on the trillion-dollar mark.

Profits in the quarter to March 31 rose 19 percent to $8.8 billion on revenues of $30.8 billion, an increase of 14 percent from the same period a year earlier.

Microsoft shares gained some 3% in after-hours trade, pushing it closer to $1 trillion in value. 

It ended the session Wednesday with a market valuation of some $960 million, just behind Apple but ahead of Amazon.

In the fiscal third quarter, Microsoft showed its reliance on cloud computing and other business services which now drive its earnings, in contrast to its earlier days when it focused on consumer PC software.

“Leading organizations of every size in every industry trust the Microsoft cloud,” chief executive Satya Nadella said in a statement.

Commercial cloud revenue rose 41% from a year ago to $9.6 billion, which now makes up nearly a third of sales, Microsoft said.

Some $10.2 billion in revenue came from the “productivity and business services” unit which includes its Office software suite for both consumers and enterprises, and the LinkedIn professional social network.

The “more personal computing” unit which includes its Windows software, Surface devices and gaming operations generated $10.6 billion in the quarter.

Trump Threatens to Go to Supreme Court on Impeachment

U.S. President Donald Trump, in his latest bucking of constitutional norms, is threatening to proactively take his case to the Supreme Court if the House of Representatives considers impeaching him.

“If the partisan Dems ever try to impeach, I would first head to the Supreme Court,” Trump announced Wednesday on Twitter.

“Not only are there no ‘High Crimes and Misdemeanors,’ there are no Crimes by me at all,” the president stated in a pair of tweets in his latest comments about the special counsel’s report on the two-year investigation into whether there was collusion between Trump’s 2016 election campaign and Russia. 

Since the redacted report’s release, Democrats, who control the House, have been debating whether to commence impeachment proceedings against the president.

House Speaker Nancy Pelosi is urging caution, although some members of her party worry Democrats will pay a political price with liberal voters if they do not begin impeachment.

Roles of House, Senate, Supreme Court

Trump’s threat to approach the Supreme Court puzzles three constitutional scholars, contacted Wednesday by VOA, who do not see the high court intervening.

“Giving the Supreme Court a role in the impeachment process was considered but deliberately discarded by the framers [of the U.S. Constitution] in 1787,” Harvard Law School professor Laurence Tribe told VOA. “The only [Supreme Court] justice who has a role is the chief justice, who presides at the impeachment trial of the president.”

Robert Pushaw, a law professor at Pepperdine University, agrees.

“The Supreme Court has held — correctly, in my view — that impeachment is a political question committed by the Constitution to Congress, not a ‘justiciable’ legal issue for courts. Therefore, any such request by President Trump would almost certainly be rejected,” he said.

“The Constitution says that the House shall have the sole power of impeachment, and has authority to determine its own rules of proceeding. On its face, that appears to shut out the courts,” Heritage Foundation senior legal fellow Thomas Jipping, a former chief counsel on the Senate Judiciary Committee, told VOA. “That said, House members all have an obligation to ensure that such constitutional responsibilities are not hijacked for partisan political purposes.”

The Supreme Court also ruled in 1993 that courts would have no role in the impeachment process.

After any such proceeding in the House, under the law, the Senate, which is controlled by Trump’s Republican Party, would be responsible for determining whether to convict the president.

Only twice in American history has the Senate voted on whether to convict a president. Both Andrew Johnson in 1868 and Bill Clinton in 1999 were acquitted on all charges.

‘Fighting all the subpoenas’

Trump, since launching his presidential campaign in 2015 as a political novice, has broken with convention, both in rhetoric and action — delighting his supporters and infuriating detractors.

“Whether currently indictable or not, it is clear that the president has, at a minimum, engaged in highly unethical and unscrupulous behavior which does not bring honor to the office he holds,” Pelosi said in a letter to her party colleagues Monday. 

Trump is clearly indicating his administration will defy requests from Democratic lawmakers for information and testimony.

“They want to know every deal I’ve ever done,” Trump told reporters Wednesday on the White House South Lawn, before he boarded the Marine One helicopter. “We’re fighting all the subpoenas.”

The president accused opposition party lawmakers of using their investigations as a strategy for next year’s presidential election.

The House Judiciary Committee has issued a subpoena for former White House counsel Don McGahn, while the House Oversight Committee is moving to hold former White House personnel security director Carl Kline in contempt for failing to appear at a hearing.

Oversight Committee Chairman Elijah Cummings said in a statement Tuesday, “it appears that the President believes that the Constitution does not apply to his White House, that he may order officials at will to violate their legal obligation, and that he may obstruct attempts by Congress to conduct oversight.”

A second demand from House Democrats for Trump’s tax returns spanning a six-year period has been defied by the Treasury Department.

Treasury Secretary Steven Mnuchin sent a letter Tuesday to the House Ways and Means Committee saying he would give a final response on May 6, noting that the request raises “serious constitutional questions” and his department is continuing to consult with the Justice Department.

House Oversight Chairman Cites ‘Massive’ Obstruction by Trump, Barr 

The Democratic chairman of the House oversight committee accused the Trump administration of a “massive, unprecedented and growing pattern of 

obstruction” for ordering federal employees not to comply with congressional investigations. 

President Donald Trump and Attorney General William Barr “are now openly ordering federal employees to ignore congressional subpoenas and simply not show up — without any assertion of a valid legal privilege,” Rep. Elijah Cummings of Maryland said in a statement. 

The Justice Department on Wednesday rebuffed the House Oversight and Reform Committee, which had sought to interview an official involved in the Trump administration’s decision to put a citizenship question on the 2020 U.S. Census. 

The department said John Gore, a deputy assistant attorney general in the Civil Rights Division, would not participate in a deposition scheduled for Thursday if he could not have a Justice Department lawyer at his side. The committee had offered to allow a lawyer to sit in a different room. 

Cummings said the subpoena issued to Gore was adopted on a bipartisan basis and that there was no privilege asserted by the White House or Justice Department that would preclude him from appearing. 

“This is a massive, unprecedented and growing pattern of obstruction,” Cummings said, warning the federal employees to “think very carefully about their own legal interests” in refusing to comply with the panel’s requests.

Trump’s Fed Pick Moore Draws Fire From Democrats; Republicans Silent

Stephen Moore, the economic commentator that U.S. President Donald Trump has said he will nominate to the Federal Reserve Board, is drawing new fire from top Democrats for his comments denigrating, among other targets, women and the Midwest.

But Republicans, whose 53 to 47 majority in the U.S. Senate gives them the final say on whether Moore’s pending nomination is confirmed, have not weighed in since news surfaced this week documenting Moore’s long history of sexist remarks, some of which he says were made jokingly.

As a Fed governor, Moore would have a say on setting interest rates for the world’s biggest economy. Some economists and Democratic lawmakers have questioned his competence, citing his support for tying policy decisions to commodity prices and his fluctuating views on rates. This week though, it is his comments about gender and geography that are drawing criticism.

“What are the implications of a society in which women earn more than men? We don’t really know, but it could be disruptive to family stability,” Moore wrote in one column in 2014.

In 2000, he opined that “women tennis pros don’t really want equal pay for equal work. They want equal pay for inferior work.” The New York Times among others has documented many other instances where he expressed similar viewpoints.

It’s just added evidence that Moore is unfit for the Fed job, vice chair of the joint economic committee Carolyn Maloney told Reuters.

“Those include his reckless tendency to politicize the Fed as well as his bizarre and sexist comments about women in sports that came to light this week,” she said.

Republicans, she said, “should also take note that Moore has said capitalism is more important than democracy. That’s a dangerous comment that further confirms my belief that Moore shouldn’t be allowed on the Fed Board.”

Maloney earlier this month sent a letter urging Republican Senator Mike Crapo and Democratic Senator Sherrod Brown to oppose Moore’s nomination. Crapo and Brown are the chair and vice chair, respectively, of the Senate banking committee, which would be Moore’s first stop in any confirmation hearings.

Senators Elizabeth Warren and Charles Schumer, both Democrats, have also publicly criticized Moore as well as businessman Herman Cain, who withdrew his name from consideration for the Fed this week amid mounting objections.

Cain said he stopped the process because he realized the job would mean a pay cut and would prevent him from pursuing his current business and speaking gigs.

The Senate banking panel’s 13 Republican members, contacted by Reuters about their views on Moore’s suitability for the Fed role after his derisive commentary about women came to light, all either did not respond or declined to comment.

But Brown on Wednesday blasted Moore for comments he made in 2014 calling cities in the Midwest, including Cincinnati, the “armpits of America.” Brown demanded an apology.

“It would be your job to carefully consider monetary and regulatory policies that support communities throughout the country” even those you apparently consider beneath you,” Brown wrote in a letter to Moore. “Based on your bias against communities across the heartland of our country, it’s clear that you lack the judgment to make important decisions in their best interest.”

 

Boeing Reports Lower Profits Amid 737 MAX Crisis

Boeing reported lower first-quarter profits Wednesday as the global grounding of its 737 MAX plane following two crashes hit results.

The US aerospace giant reported $2.1 billion in profits, down 13.2 percent from same period a year ago.

Revenues dipped 2.0 percent to $22.9 billion, due to a tumble in commercial plane revenues following the suspension of 737 MAX deliveries.

Boeing also withdrew its full-year profit forecast, citing uncertainty surrounding the 737 MAX.

The aerospace giant has been under scrutiny since the March 10 crash of an Ethiopian Airlines jet, which came on the heels of an October Lion Air crash. Together the crashes claimed 346 lives.

Boeing said it is “making steady progress” on a fix to the jet’s anti-stall system that is thought to be a factor in both accidents.

The company has conducted more than 135 test flights of the fix and is working with global regulators and airlines, it said in a news release.

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” said Chief Executive Dennis Muilenburg in a press release.

The company announced earlier this month it was cutting monthly production of the 737 by about 20 percent.

Boeing shares were up 1.3 percent at $379.07 in pre-market trading.

Technology Ethics Campaigners Offer Plan to Fight ‘Human Downgrading’

Technology firms should do more to connect people in positive ways and steer away from trends that have tended to exploit human weaknesses, ethicists told a meeting of Silicon Valley leaders on Tuesday.

Tristan Harris and Aza Raskin are the co-founders of the nonprofit Center for Humane Technology and the ones who prompted Apple and Google to nudge phone users toward reducing their screen time.

Now they want companies and regulators to focus on reversing what they called “human downgrading,” which they see as at the root of a dozen worsening problems, by reconsidering the design and financial incentives of their systems.

Before a hand-picked crowd of about 300 technologists, philanthropists and others concerned with issues such as internet addiction, political polarization, and the spread of misinformation on the web, Harris said Silicon Valley was too focused on making computers surpass human strengths, rather than worrying about how they already exploit human weaknesses.

If that is not reversed, he said, “that could be the end of human agency,” or free will.

Problems include the spread of hate speech and conspiracy theories, propelled by financial incentives to keep users engaged alongside the use of powerful artificial intelligence on platforms like Alphabet Inc’s YouTube, Harris said.

YouTube and other companies have said they are cracking down on extremist speech and have removed advertising revenue-sharing from some categories of content.

Active Facebook communities can be a force for good but they also aid the dissemination of false information, the campaigners said. For example, a vocal fringe that oppose vaccines, believing contrary to scientific evidence that they cause autism, has led to an uptick in diseases that were nearly eradicated.

Facebook said in March it would reduce the distribution of content from groups promoting vaccine hoaxes.

In an interview after his speech, Harris said that what he has called a race to the bottom of the brainstem – manipulation of human instincts and emotions – could be reversed.

For example, he said that Apple and Google could reward app developers who help users, or Facebook could suggest that someone showing signs of depression call a friend who had previously been supportive.

Tech personalities attending included Apple co-founder Steve Wozniak, early Facebook funder turned critic Roger McNamee and MoveOn founders Joan Blades and Wes Boyd. Tech money is also backing the Center, including charitable funds started by founders of Hewlett Packard, EBay, and Craigslist.

The big companies, Harris said, “can change the incentives.”

Multisensory VR Allows Users to Step Into a Movie and Interact with Objects

Imagine stepping into a movie or virtual world and being able to interact with what’s there. That’s now possible through the magic of Hollywood combined with virtual reality technology.  For $20, the company Dreamscape takes visitors through a multi-sensory journey. Currently in Los Angeles, creators say they plan on opening more virtual reality venues across the U.S. and eventually to other countries.

  Once visitors step through these doors, they leave behind reality and embark on a journey to another world.

“We see Dreamscape as a travel agency that will take you on adventures that transcend time, space and dimension,” Bruce Vaughn, Dreamscape Immersive chief executive officer, said.   

Vaughn used to work on Disney theme park attractions and special effects.  

Imagine a trip to a zoo filled with alien creatures from outer space or going on a treasure hunt or an underwater adventure. That’s the world visitor Zach Green stepped into when he entered a Dreamscape room. 

“I kind of forgot I was in Earth for a second and I was actually under the ocean,” Green expressed.

Dreamscape makes it possible by combining Hollywood storytelling with the expertise of building theme parks. These ingredients are brought to life through virtual reality says motion picture screenwriter and producer Walter Parkes who is also co-founder and chairman of the board of Dreamscape.   

“Our technology allows us at Dreamscape to actually track your full body, all of your movements and render you in an avatar. We use the word registration where we’re actually registering you as a human presence inside a virtual world is very unique,” Parkes said.

Visitor Robin McMillan is wowed by the experience.

“I think it’s probably the future of entertainment in terms of a completely immersive experience. You kind of forget you’re in a room,” McMillan said.

Before stepping into the virtual world, travelers would first have to put on four sensors, one on each hand and one on each foot, have a backpack on and virtual reality goggles. Now they’re ready to step inside. 

“We blur that line between the physical and the virtual by letting you actually reach out and pet an alien creature or have a torch that actually lights your way and it’s physically there,” Vaughn said.

That’s not all. Each person’s backpack computer and the sensors in the room trigger special effects such as wind, mist and ground vibrations.  Six people at a time can take part in the 10 minute experience interact. The company is already planning new worlds for travelers to visit.

Apparel Sector a Reminder That Vietnam and China Must Get Along

Vietnam this week just celebrated the fact it has survived nearly a millennium of independence from China, which previously ruled the smaller neighbor for nearly as long. Much is made of the ancient rivalry between the two sides — but there is far less attention, especially on the international stage, on areas where they both get along fairly well.

The textile and garment sector is as good an example as any of this amicable cooperation, given that China is the world’s biggest exporter in the industry, and Vietnam is the second biggest. Analysts often describe Hanoi as taking a path similar to Beijing’s, both having communist leaders who turned toward export-led market capitalism in recent decades, and in terms of selling ever more footwear, clothes and bags to the world, Vietnam is indeed following China’s actions.

“China and Vietnam hold a pivotal position in the global textile market,” Chen Dapeng, president of the China National Garment Association, said at a trade conference in Ho Chi Minh City this month. “The industries of the two countries are highly complementary.”

The industries compete for customers, but they are also complementary in that Chinese factories supply much of the fabric and other inputs needed in the business, while Vietnamese factory hands are increasingly supplying the labor as costs rise in China.

“We believe many in Asia can cooperate,” said Le Tien Truong, CEO of the Vietnam National Textile and Garment Group. “We are not just taking Chinese investment, but also reforming Vietnamese suppliers.”

He and others in Vietnam speak of domestic reform because the country does not have as large and complex a network of textile suppliers and processors as in China. That is one reason the smaller country relies on the larger one as its biggest source of imported goods overall. No matter the geopolitical problems at the top, the reality is that textile firms on both sides of the border work together to turn a profit. 

On one hand, amid the trade war between the United States and China, the latter competitor has lost some of its business to Vietnam. On the other hand, it is not just foreign third parties moving factories from China to Vietnam, but also Chinese investors themselves, who deem it beneficial to relocate some of their supply chain to the south.

This month a large contingent of Chinese textile companies went scouting for Vietnamese partners in the industrial parks just outside Ho Chi Minh City.

This global shift in interest toward Vietnam has helped it to catch up to China, which is still the export leader in shoes and garments.

“We congratulate Vietnam for that big effort,” said Sun Rui Zhe, president of the China National Textile and Apparel Council.

He noted his country looks to support that effort as part of its Belt and Road Initiative, which gives loans and grants to dozens of countries, mostly for infrastructure, but also private industry, including textiles. Beijing has already financed dozens of projects in Vietnam, from coal power to ship yards to fertilizer plants.

“China has done our best to improve our relations all over the world,” Sun said.

New Zealand, France Plan Bid to Tackle Extremism on Social Media

In the wake of the Christchurch attack, New Zealand said on Wednesday that it would work with France in an effort to stop social media from being used to promote terrorism and violent extremism.

Prime Minister Jacinda Ardern said in a statement that she will co-chair a meeting with French President Emmanuel Macron in Paris on May 15 that will seek to have world leaders and CEOs of tech companies agree to a pledge, called the Christchurch Call, to eliminate terrorist and violent extremist content online.

A lone gunman killed 50 people at two mosques in Christchurch on March 15, while livestreaming the massacre on Facebook.

Brenton Tarrant, 28, a suspected white supremacist, has been charged with 50 counts of murder for the mass shooting.

“It’s critical that technology platforms like Facebook are not perverted as a tool for terrorism, and instead become part of a global solution to countering extremism,” Ardern said in the statement.

“This meeting presents an opportunity for an act of unity between governments and the tech companies,” she added.

The meeting will be held alongside the Tech for Humanity meeting of G7 digital ministers, of which France is the chair, and France’s separate Tech for Good summit, both on 15 May, the statement said.

Ardern said at a press conference later on Wednesday that she has spoken with executives from a number of tech firms including Facebook, Twitter, Microsoft, Google and few other companies.

“The response I’ve received has been positive. No tech company, just like no government, would like to see violent extremism and terrorism online,” Ardern said at the media briefing, adding that she had also spoken with Facebook’s Mark Zuckerberg directly on the topic.

A Facebook spokesman said the company looks forward to collaborating with government, industry and safety experts on a clear framework of rules.

“We’re evaluating how we can best support this effort and who among top Facebook executives will attend,” the spokesman said in a statement sent by email.

Facebook, the world’s largest social network with 2.7 billion users, has faced criticism since the Christchurch attack that it failed to tackle extremism.

One of the main groups representing Muslims in France has said it was suing Facebook and YouTube, a unit of Alphabet’s Google, accusing them of inciting violence by allowing the streaming of the Christchurch massacre on their platforms.

Facebook Chief Operating Officer Sheryl Sandberg said last month that the company was looking to place restrictions on who can go live on its platform based on certain criteria.

New Zealand, France Plan Bid to Tackle Extremism on Social Media

In the wake of the Christchurch attack, New Zealand said on Wednesday that it would work with France in an effort to stop social media from being used to promote terrorism and violent extremism.

Prime Minister Jacinda Ardern said in a statement that she will co-chair a meeting with French President Emmanuel Macron in Paris on May 15 that will seek to have world leaders and CEOs of tech companies agree to a pledge, called the Christchurch Call, to eliminate terrorist and violent extremist content online.

A lone gunman killed 50 people at two mosques in Christchurch on March 15, while livestreaming the massacre on Facebook.

Brenton Tarrant, 28, a suspected white supremacist, has been charged with 50 counts of murder for the mass shooting.

“It’s critical that technology platforms like Facebook are not perverted as a tool for terrorism, and instead become part of a global solution to countering extremism,” Ardern said in the statement.

“This meeting presents an opportunity for an act of unity between governments and the tech companies,” she added.

The meeting will be held alongside the Tech for Humanity meeting of G7 digital ministers, of which France is the chair, and France’s separate Tech for Good summit, both on 15 May, the statement said.

Ardern said at a press conference later on Wednesday that she has spoken with executives from a number of tech firms including Facebook, Twitter, Microsoft, Google and few other companies.

“The response I’ve received has been positive. No tech company, just like no government, would like to see violent extremism and terrorism online,” Ardern said at the media briefing, adding that she had also spoken with Facebook’s Mark Zuckerberg directly on the topic.

A Facebook spokesman said the company looks forward to collaborating with government, industry and safety experts on a clear framework of rules.

“We’re evaluating how we can best support this effort and who among top Facebook executives will attend,” the spokesman said in a statement sent by email.

Facebook, the world’s largest social network with 2.7 billion users, has faced criticism since the Christchurch attack that it failed to tackle extremism.

One of the main groups representing Muslims in France has said it was suing Facebook and YouTube, a unit of Alphabet’s Google, accusing them of inciting violence by allowing the streaming of the Christchurch massacre on their platforms.

Facebook Chief Operating Officer Sheryl Sandberg said last month that the company was looking to place restrictions on who can go live on its platform based on certain criteria.

US White Nationalists Barred by Facebook Find Haven on Russia Site

With U.S. social media companies tightening their content policies in the wake of the recent mosque shootings in New Zealand, some extremist groups are getting pushed to the margins of the internet. Researchers say that has turned Russian social media platforms such as VKontakte, or VK, into safe harbors for an ever greater number of white nationalists seeking to communicate with each other and get their messages out. VOA’s Anush Avetisyan has more.

Multisensory VR Allows Users to Step Into a Movie and Interact With Objects

Imagine stepping into a movie or virtual world and being able to interact with what’s there. That’s now possible through the magic of Hollywood combined with virtual reality technology.  For $20, the company Dreamscape takes visitors through a multi-sensory journey. Currently in Los Angeles, creators say they plan on opening more virtual reality venues across the U.S. and eventually to other countries.  VOA’s Elizabeth Lee shows us what to expect.

US White Nationalists Barred by Facebook Find Haven on Russia Site

With U.S. social media companies tightening their content policies in the wake of the recent mosque shootings in New Zealand, some extremist groups are getting pushed to the margins of the internet. Researchers say that has turned Russian social media platforms such as VKontakte, or VK, into safe harbors for an ever greater number of white nationalists seeking to communicate with each other and get their messages out. VOA’s Anush Avetisyan has more.

Multisensory VR Allows Users to Step Into a Movie and Interact With Objects

Imagine stepping into a movie or virtual world and being able to interact with what’s there. That’s now possible through the magic of Hollywood combined with virtual reality technology.  For $20, the company Dreamscape takes visitors through a multi-sensory journey. Currently in Los Angeles, creators say they plan on opening more virtual reality venues across the U.S. and eventually to other countries.  VOA’s Elizabeth Lee shows us what to expect.

Democrats Hope to Press Star Witness of Mueller Report in Congress

Donald McGahn, the former White House counsel described in the Mueller report as repeatedly standing up to President Donald Trump, could become a star witness again if congressional Democrats get their way in their investigation of whether Trump used his office to obstruct justice.

Since the April 18 release of Special Counsel Robert Mueller’s report on Russian interference in the 2016 election and any ties to Republican Trump’s campaign, Democrats have seen McGahn as someone who could be as important as Mueller himself, according to a source familiar with the matter.

But the Democrats are likely to face Trump’s resistance. The Washington Post reported on Tuesday that the White House planned to oppose a subpoena by the House of Representatives Judiciary Committee for McGahn to testify.

Mueller’s 448-page partially blacked out report portrayed McGahn as one of the few figures in Trump’s orbit to challenge him when he tried to shut down the investigation that has clouded his more than two years in the White House.

“Mr. McGahn has been touted as a man of integrity and he is a major witness in the Mueller report,” said Sheila Jackson Lee, a member of the judiciary committee.

The White House did not immediately comment on the Washington Post report, which said Trump will claim executive privilege, a legal doctrine allowing the president to withhold information about internal executive branch deliberations from other branches of government.

Trump said in a Tuesday interview with the Washington Post that White House lawyers had not “made a final, final decision” about whether they will cite executive privilege to prevent McGahn and other former and current officials from testifying.

“They testified for so many hours. They have all that information that’s been given,” Trump told the newspaper of the Mueller report and congressional Democrats.

McGahn’s attorney, William Burck, did not respond to requests for comment.

Democrats are particularly interested in hearing McGahn describe in his own words and in Congress an account in the Mueller report in which McGahn refused Trump’s instructions.

In June 2017 Trump called McGahn to say he should tell Deputy Attorney General Rod Rosenstein to remove the special counsel because he had conflicts of interest, the report said.

Trump also failed to get McGahn to dispute media reports that the president tried to fire Mueller, the report said.

“That, in itself, could be an obstruction of justice, as Mr. McGahn would be able to testify — that he was asked to do it and then asked not to tell anyone what he’d been asked to do,” Lee said.

Committee Chairman Jerrold Nadler, who has subpoenaed the U.S. Department of Justice to provide the unredacted Mueller report and underlying evidence, issued a subpoena on Monday for McGahn to provide the committee with documents by May 7 and testify on May 21.

But it was not clear that McGahn would comply, especially if the White House asserts executive privilege. Nor could Democrats predict how much the former White House counsel would be willing to discuss, even if he does testify.

On Tuesday evening, Nadler said, “The moment for the White House to assert some privilege to prevent this testimony from being heard has long since passed.”

The House of Representatives has the sole power under the U.S. Constitution to impeach the president, and any effort would be led by the judiciary panel.

Mueller’s report concluded that there was not enough evidence to establish that Trump’s campaign engaged in a criminal conspiracy with Moscow. However, the report outlined multiple instances where Trump tried to thwart Mueller’s probe.

Mueller stopped short of concluding whether Trump could be prosecuted for obstruction of justice, a criminal charge that requires proof beyond a reasonable doubt.

But such a high standard would not apply to Democrats if they decided to bring impeachment proceedings.

In the days following the Mueller report’s release, McGahn came under attack from Trump’s personal attorney Rudolph Giuliani who called into question the veracity of his statements to Mueller’s team of prosecutors.

“I would ask which of the three versions is McGahn standing by. There are three versions he gives of that account,” Giuliani told CNN over the weekend. “I’m telling you, he’s confused.”

A prominent elections lawyer, McGahn served as Trump’s campaign counsel before being named White House counsel in November 2016.

He played a pivotal role in helping Trump reshape the federal judiciary in a conservative direction and roll back regulations on a range of industries.

Democrats Hope to Press Star Witness of Mueller Report in Congress

Donald McGahn, the former White House counsel described in the Mueller report as repeatedly standing up to President Donald Trump, could become a star witness again if congressional Democrats get their way in their investigation of whether Trump used his office to obstruct justice.

Since the April 18 release of Special Counsel Robert Mueller’s report on Russian interference in the 2016 election and any ties to Republican Trump’s campaign, Democrats have seen McGahn as someone who could be as important as Mueller himself, according to a source familiar with the matter.

But the Democrats are likely to face Trump’s resistance. The Washington Post reported on Tuesday that the White House planned to oppose a subpoena by the House of Representatives Judiciary Committee for McGahn to testify.

Mueller’s 448-page partially blacked out report portrayed McGahn as one of the few figures in Trump’s orbit to challenge him when he tried to shut down the investigation that has clouded his more than two years in the White House.

“Mr. McGahn has been touted as a man of integrity and he is a major witness in the Mueller report,” said Sheila Jackson Lee, a member of the judiciary committee.

The White House did not immediately comment on the Washington Post report, which said Trump will claim executive privilege, a legal doctrine allowing the president to withhold information about internal executive branch deliberations from other branches of government.

Trump said in a Tuesday interview with the Washington Post that White House lawyers had not “made a final, final decision” about whether they will cite executive privilege to prevent McGahn and other former and current officials from testifying.

“They testified for so many hours. They have all that information that’s been given,” Trump told the newspaper of the Mueller report and congressional Democrats.

McGahn’s attorney, William Burck, did not respond to requests for comment.

Democrats are particularly interested in hearing McGahn describe in his own words and in Congress an account in the Mueller report in which McGahn refused Trump’s instructions.

In June 2017 Trump called McGahn to say he should tell Deputy Attorney General Rod Rosenstein to remove the special counsel because he had conflicts of interest, the report said.

Trump also failed to get McGahn to dispute media reports that the president tried to fire Mueller, the report said.

“That, in itself, could be an obstruction of justice, as Mr. McGahn would be able to testify — that he was asked to do it and then asked not to tell anyone what he’d been asked to do,” Lee said.

Committee Chairman Jerrold Nadler, who has subpoenaed the U.S. Department of Justice to provide the unredacted Mueller report and underlying evidence, issued a subpoena on Monday for McGahn to provide the committee with documents by May 7 and testify on May 21.

But it was not clear that McGahn would comply, especially if the White House asserts executive privilege. Nor could Democrats predict how much the former White House counsel would be willing to discuss, even if he does testify.

On Tuesday evening, Nadler said, “The moment for the White House to assert some privilege to prevent this testimony from being heard has long since passed.”

The House of Representatives has the sole power under the U.S. Constitution to impeach the president, and any effort would be led by the judiciary panel.

Mueller’s report concluded that there was not enough evidence to establish that Trump’s campaign engaged in a criminal conspiracy with Moscow. However, the report outlined multiple instances where Trump tried to thwart Mueller’s probe.

Mueller stopped short of concluding whether Trump could be prosecuted for obstruction of justice, a criminal charge that requires proof beyond a reasonable doubt.

But such a high standard would not apply to Democrats if they decided to bring impeachment proceedings.

In the days following the Mueller report’s release, McGahn came under attack from Trump’s personal attorney Rudolph Giuliani who called into question the veracity of his statements to Mueller’s team of prosecutors.

“I would ask which of the three versions is McGahn standing by. There are three versions he gives of that account,” Giuliani told CNN over the weekend. “I’m telling you, he’s confused.”

A prominent elections lawyer, McGahn served as Trump’s campaign counsel before being named White House counsel in November 2016.

He played a pivotal role in helping Trump reshape the federal judiciary in a conservative direction and roll back regulations on a range of industries.