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Senate Panel Approves Barr Attorney General Nomination

The U.S. Senate Judiciary Committee on Thursday approved President Donald Trump’s attorney general nominee, William Barr, and sent his nomination on to the full Senate for a final confirmation vote.

The committee voted along party lines. Republicans praised Barr as well qualified, while Democrats who voted against him said they were concerned he might not make public the findings from Special Counsel Robert Mueller’s Russia investigation.

A corporate lawyer who previously served as attorney general under Republican President George H.W. Bush in the early 1990s, Barr has been praised by lawmakers from both parties as someone who is deeply familiar with the workings of the Justice Department and does not owe his career to Trump.

He is expected to win confirmation in the Republican-controlled chamber.

If he wins the job, Barr’s independence could be put to the test when Mueller wraps up his investigation into the Trump campaign’s possible ties to Russia during the 2016 election.

The Republican president has repeatedly criticized the investigation as a “witch hunt” and denies any collusion with Moscow.

Barr criticized the investigation last year in a memo to the Justice Department, but he told the committee in confirmation hearings three weeks ago that he would allow Mueller to conclude his work and said he would make as much of his findings public as possible.

But Barr has refused to promise that he will release the report in its entirety, citing Justice Department regulations that encourage prosecutors not to

Judge to Release Some Info on FBI Raid of Trump Lawyer Cohen

A judge has agreed to unseal part of the search warrant that authorized last year’s FBI raids on the home and office of President Donald Trump’s former personal lawyer, Michael Cohen.

But Judge William H. Pauley III ruled Thursday that some parts of the documents should stay secret because making them public could jeopardize ongoing investigations, “including those pertaining to or arising from Cohen’s campaign finance crimes.”

Pauley sentenced Cohen to prison in December for crimes including paying two women to stay silent about affairs they claimed to have had with Trump.

Media organizations had asked for the release of the records.

The judge gave prosecutors until the end of the month to identify portions of the documents that should stay secret.

Apple Puts Modem Engineering Unit Into Chip Design Group

Apple Inc has moved its modem chip engineering effort into its in-house hardware technology group from its supply chain unit, two people familiar with the move told Reuters, a sign the tech company is looking to develop

a key component of its iPhones after years of buying it from outside suppliers.

Modems are an indispensable part of phones and other mobile devices, connecting them to wireless data networks. Apple once used Qualcomm Inc chips exclusively but began phasing in Intel Corp chips in 2016 and dropped Qualcomm from iPhones released last year.

Johny Srouji, Apple’s senior vice president of hardware technologies, took over the company’s modem design efforts in January, the sources said. The organizational move has not been previously reported.

Srouji joined Apple in 2008 to lead chip design, including the custom A-series processors that power iPhones and iPads and a special Bluetooth chip that helps those devices pair with its AirPods wireless headphones and other Apple accessories.

The modem efforts had previously been led by Rubén Caballero, who reports to Dan Riccio, the executive responsible for iPad, iPhone and Mac engineering, much of which involves integrating parts from the company’s vast electronics supply chain.

Apple declined to comment. Technology publication The Information previously reported that Apple was working to develop its own modem chip.

The Cupertino, California-based company has posted job listings for modem engineers in San Diego, a hub for wireless design talent because of Qualcomm’s longtime presence there and a place where Apple has said it plans to build up its workforce.

Apple’s effort to make its own modem chips could take years, and it is impossible to know when, or in what devices, such chips might appear.

“When you’re Apple, everything has to be good,” said Linley Gwennap, president of chip industry research firm The Linley Group. “There’s no room for some substandard component in that phone.”

5G on horizon

Apple’s investment in modem chips comes as carriers and other phone makers are rolling out devices for the next generation of faster wireless networks known as 5G.

Rival handset makers Samsung Electronics Co Ltd and Huawei Technologies Co Ltd already make their own modems.

Making its own modem chips would likely cost Apple hundreds of millions of dollars or more per year in development costs, analysts said, but could save it money eventually.

Modem chips are a major part of the cost of Apple devices, worth $15 to $20 each and likely costing Apple $3 billion to $4 billion for the 200 million or so iPhones it makes a year, said Bernstein analyst Stacy Rasgon.

Apple may also benefit by combining its modem chips with its processor chips, as Samsung, Huawei and most other phone makers do. That saves space and battery life, two important considerations if Apple introduces augmented reality features into future products.

Germany to Restrict Facebook’s Data Gathering Activities

Facebook has been ordered to curb its data collection practices in Germany after a landmark ruling on Thursday that the world’s largest social network abused its market dominance to gather information about users without their consent.

Germany, where privacy concerns run deep, is in the forefront of a global backlash against Facebook, fueled by last year’s Cambridge Analytica scandal in which tens of millions of Facebook profiles were harvested without their users’ consent.

The country’s antitrust watchdog objected in particular to how Facebook pools data on people from third-party apps — including its own WhatsApp and Instagram — and its online tracking of people who aren’t even members through Facebook ‘like’ or ‘share’ buttons.

“In future, Facebook will no longer be allowed to force its users to agree to the practically unrestricted collection and assigning of non-Facebook data to their Facebook accounts,” Federal Cartel Office chief Andreas Mundt said.

Facebook said it would appeal the decision, the culmination of a three-year probe, saying the regulator underestimated the competition it faced, and undermined Europe-wide privacy rules that took effect last year.

“We disagree with their conclusions and intend to appeal so that people in Germany continue to benefit fully from all our services,” Facebook said in a blog post.

In its order, the cartel office said Facebook would only be allowed to assign data from WhatsApp or Instagram to its main Facebook app accounts if users consented voluntarily. Collecting data from third-party websites and assigning it to Facebook would similarly require consent.

If consent is withheld, Facebook would have to substantially restrict its collection and combining of data. It should develop proposals to do this within 12 months, subject to the outcome of appeal proceedings at the Duesseldorf Higher Regional Court that should be filed within a month.

If Facebook fails to comply, the cartel office said it could impose fines of up to 10 percent of the company’s annual global revenues, which grew by 37 percent to $55.8 billion last year. Antitrust lawyer Thomas Vinje, a partner at Clifford Chance in Brussels, said the Cartel Office ruling had potentially far-reaching implications.

“This is a landmark decision,” he told Reuters. “It’s limited to Germany but strikes me as exportable and might have a significant impact on Facebook’s business model.”

Vinje said it would be tough for Facebook to persuade the court that the Cartel Office’s definition of the market for social media, and its dominance, were misguided. This is a battle that many firms have fought in court and lost, he added.

Implications

German Justice Minister Katarina Barley welcomed the ruling. “Users are often unaware of this flow of data and cannot prevent it if they want to use the services,” she told Reuters. “We need to be rigorous in tackling the abuse of power that comes with data.”

The German antitrust regulator’s powers were expanded in 2017 to include consumer protection in public-interest cases where it could argue that a company — such as Facebook — had so little competition that consumers lack any effective choice.

Facebook has an estimated 23 million daily active users in Germany, giving it a market share of 95 percent, according to the Cartel Office which considers Google+ — a rival social network that is being closed down to be its only competitor.

Facebook said the cartel office failed to recognize the extent of competition it faced from Google’s YouTube or Twitter for users’ attention, and also said the regulator was encroaching into areas that should be handled by data protection watchdogs.

Facebook is considering appealing on the data protection issues to the European Court of Justice, but here the Cartel Office may also have the upper hand, said Vinje, the lawyer.

“It seems to me that the Federal Cartel Office is informed by data protections, but not dependent on them, and that it has based its decision squarely on competition law,” he said.

The European Commission said: “We are closely following the work of the Bundeskartellamt both in the framework of the European Competition Network and through direct contacts.”

“The European legislator has made sure that there is now a regulation in place that addresses this type of conduct, namely the General Data Protection Regulation [GDPR],” it added.

As part of complying with the GDPR, Facebook said it had rebuilt the information its provides people about their privacy and the controls they have over their information, and improved the privacy ‘choices’ that they are offered. It would also soon launch a ‘clear history’ feature, it said.

Mundt also expressed concern over reports that Facebook, which counts 2.7 billion users worldwide, plans to merge the infrastructure of its Messenger, WhatsApp and Instagram services.

“If I understand things correctly, this move would intensify the pooling of data,” said Mundt. “It’s not very hard to conclude that, putting it carefully, this could be relevant in antitrust terms. We would have to look at this very closely.”

Facebook has said that discussions on such a move are at a very early stage.

Twitter Profit Soars as User Base Shrinks

Twitter said Thursday profits rose sharply in the fourth quarter, lifted by gains in advertising despite a drop in its global user base.

The short-messaging platform said it posted a $255 million profit in the final three months of 2018, compared with $91 million a year earlier, as revenues rose 24 percent to $909 million.

But Twitter’s base of monthly active users declined to 321 million — a drop of nine million from a year earlier and five million from the prior quarter.

Twitter said it would stop using the monthly user base metric and instead report “monetizable” daily active users in the US and worldwide.

Using that measure, Twitter showed a base of 126 million worldwide, up nine percent over the year.

“2018 is proof that our long-term strategy is working,” said chief executive Jack Dorsey.

“Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant tweets have been embraced by the people who use Twitter. We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.”

Twitter shares sputtered and then fell sharply after the report, dropping as much as eight percent in pre-market trade.

Jasmine Enberg of the research firm eMarketer said the earnings were nonetheless positive.

“Twitter’s Q4 earnings prove that the company is still able to grow its revenues without increasing its user base,” she said.

“The falloff in monthly active users is likely a continuation of Twitter’s efforts to remove questionable accounts.”

Twitter, which has struggled to keep up with fast-growing rivals like Facebook and Instagram, said it changed the measure for its user base to reflect “our goal of delivering value to people on Twitter every day and monetizing that usage.”

 

 

 

Filing: Fiat Chrysler, Bosch Agree to Pay $66M in Diesel Legal Fees

Fiat Chrysler Automobiles NV and Robert Bosch have agreed to pay lawyers representing owners of U.S. diesel vehicles $66 million in fees and costs, according to court filing on Wednesday and people briefed on the matter.

In a court filing late on Wednesday in U.S. District Court in San Francisco, lawyer Elizabeth Cabraser said after negotiations overseen by court-appointed settlement master Ken Feinberg, the companies agreed not to oppose an award of $59 million in attorney’s fees and $7 million in costs.

The lawyers had originally sought up to $106.5 million in fees and costs.

Under a settlement announced last month, Fiat Chrysler and Bosch, which provided emissions control software for the Fiat Chrysler vehicles, will give 104,000 diesel owners up to $307.5 million or about $2,800 per vehicle for diesel software updates.

The legal fees are on top of those costs. Fiat Chrysler and Bosch did not immediately comment late Wednesday.

Fiat Chrysler is paying up to $280 million, or 90 percent of the settlement costs, and Bosch is paying $27.5 million, or 10 percent. The companies are expected to divide the attorney costs under the same formula, meaning Fiat Chrysler will pay $60 million and Bosch $6 million, the people briefed on the settlement said.

U.S. District Judge Edward Chen must still approve the legal fees. He has set a May 3 hearing on a motion to grant final approval.

The Italian-American automaker on Jan. 10 announced it settled with the U.S. Justice Department, California and diesel owners over civil claims that it used illegal software that produced false results on diesel-emissions tests.

Fiat Chrysler previously estimated the value of the settlements at about $800 million.

Fiat Chrysler is also paying $311 million in total civil penalties and issuing extended warranties worth $105 million, among other costs.

The settlement covers 104,000 Ram 1500 and Jeep Grand Cherokee diesels from the model years 2014 to 2016. In addition, Fiat Chrysler will pay $72.5 million for state civil penalties and $33.5 million to California to offset excess emissions and consumer claims.

The hefty penalty was the latest fallout from the U.S. government’s stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules.

The Justice Department has a pending criminal investigation against Fiat Chrysler.

Democrat-Controlled House Makes Gun Safety Top Priority   

 

HEAD:

 

TEASER: The House heard testimony from gun violence survivors and community activists for the first time in eight years

 

 

 

The Democratic House majority has put gun violence back on the agenda for the first time in eight years, hearing testimony Wednesday on Capitol Hill from victims and gun-safety activists.

“Despite the obvious need to address the scourge of gun violence, Congress, for too long, has done virtually nothing,” said Jerrold Nadler (D-N.Y.), chairman of the House Judiciary committee. “But now, we begin a new chapter.”

The gun safety debate escalated after a shooter killed 17 people with an AR-15 semi-automatic rifle on Feb. 14 last year in Parkland, Florida. Survivors of the shooting at Marjory Stoneman Douglas high school organized the “March for Our Lives” protest in Washington, D.C. to demand gun safety. Hundreds of thousands of people around the country attended this and similar marches.

In the months following the shooting, March for Our Lives activists worked with gun safety organizations in communities plagued by gun violence. 

“I’ve just been working tirelessly to share my platform … with those marginalized communities because their voices are just as important as mine and my colleagues from Parkland,” Aalayah Eastmond, a former Stoneman Douglas student, told the committee.

“With all the different shootings and the Parkland teens, focus has become on gun violence. And I’m really happy about that,” Diane Latiker, who started Kids off the Block to help vulnerable youth in Chicago stay out of gun violence, told VOA.

“But what I really want to do is focus it on those who deal with it every day in their communities across this country. Don’t forget about the people in communities like mine who suffer with gun violence every day,” Latiker said.

Advocates for gun safety are hopeful that stricter gun control legislation will be passed now that the Democrats control the House of Representatives.

“We have the power to make a change now that Democrats have the house,” said Alexis Jade Ferguson, a student at Georgetown attending Wednesday’s hearing. “As much as I want to say that there’s hope that there’s going to change, I think this is one step in the direction,” she said.

Gun safety advocates are pushing for House Resolution 8, sometimes known as the Universal Background Checks bill, to be passed. Less than one week into taking control of the House, Democrats introduced the bill, which would require background checks on those purchasing nearly all firearms, with limited exceptions.

Nearly all — 97 percent — of Americans support universal background checks on firearm purchases, according to a 2018 Quinnipiac University poll. [[link:https://poll.qu.edu/national/release-detail?ReleaseID=2521 ]]

“The majority of Americans favor these common-sense gun-violence prevention measures, and we’re hopeful that that will happen this session,” said Chris Stauffer, a member of the D.C. chapter of March for Our Lives who attended Wednesday’s hearing.

“I mean that’s why we all voted in November to get a gun-sense majority into Congress,” he said.

Though the measure is likely to pass the House, it may face opposition in the Republican-majority Senate.

“We are hopeful but … nothing’s guaranteed,” said Rachel Usdan, the leader of the D.C. chapter of Moms Demand Action.

“Things are promising in the house but the Senate is another story.”

Republicans, who generally support the right of U.S. citizens to own firearms, hold 53 of the Senate’s 100 seats. Gun rights advocates like the National Rifle Association argue that universal background checks don’t reduce gun violence but do violate citizens’ rights.

Trump Calls Widening House Probe ‘Presidential Harassment’

U.S. President Donald Trump says there is no basis for a powerful legislative committee to investigate his personal finances.

“No other politician has to go through that. It’s called presidential harassment. And it’s unfortunate and it really does hurt our country,” Trump responded Wednesday when asked by a reporter about the House Intelligence Committee’s decision to examine his finances.

Trump took aim at the committee’s chairman, Adam Schiff, a Democrat and prominent critic of the president.

“Under what basis would he do that? He has no basis to do that. He’s just a political hack. He’s trying to build a name for himself,” Trump said of Schiff at the conclusion of a brief event in the White House Roosevelt Room to announce David Malpass as the U.S. nominee to run the World Bank.

Hours earlier, Schiff declared that the committee, in the hands of opposition Democrats following last November’s midterm congressional election, would broaden its investigation to go “beyond Russia” and examine whether Trump’s concern for his financial interests are driving his policy decisions and other actions as president.

The committee’s wider mandate will “allow us to investigate any credible allegation that financial interests or other interests are driving decision-making of the president or anyone in the administration,” Schiff told reporters. “That pertains to any credible allegations of leverage by the Russians or the Saudis or anyone else.”

In a statement, the California congressman and former federal prosecutor said the committee would continue examining Russia’s actions during the 2016 presidential election as well as contacts between Moscow and Trump’s campaign team, but now would also scrutinize “whether any foreign actor has sought to compromise or holds leverage, financial or otherwise, over Donald Trump, his family, his business, or his associates.”

The committee voted earlier Wednesday to send more than 50 transcripts of interviews from its Russia investigation to special counsel Robert Mueller.

When the panel was under Republican control last year, lawmakers of the then-majority party in the House of Representatives sought to bring their investigation to an end, despite protests from Democrats that it was premature to reach any conclusions.

Trump, during his State of the Union address Tuesday to lawmakers of both chambers, termed such inquiries by congressional committees “ridiculous partisan investigations.”

In his speech, Trump stated, “If there is going to be peace and legislation, there cannot be war and investigation.”

Clock Ticking on Efforts to Strike US Border Deal

U.S. lawmakers working to avert another partial government shutdown emerged from a closed-door meeting Wednesday asserting that an agreement on border security could be reached in the coming days, but indicated that partisan differences remained on specific elements of a potential deal. 

The bipartisan joint committee, tasked with crafting a plan to boost U.S. border security before federal funding expires Feb. 15, conferred privately with career officials of U.S. Customs and Border Protection. The briefing occurred one day after President Donald Trump restated his funding demand for physical barriers along the U.S.-Mexico border.

“The clock is ticking away,” Senate Appropriations Committee Chairman Richard Shelby, an Alabama Republican, told reporters. “We’re hopeful. The tone is good between the various conferees. We’re dealing in substance now.”

“All of us feel pressure to get it [a deal] done, and I believe we should,” said the Senate’s No. 2 Democrat, Dick Durbin of Illinois. 

Tennessean ‘optimistic’

“I continue to be very optimistic,” Tennessee Republican Rep. Chuck Fleischmann said. “We have a lot of good minds in that room. We have a lot of good hearts in that room.”

At the same time, U.S. lawmakers acknowledged that disagreements have yet to be resolved.

Durbin said Wednesday’s meeting reinforced his belief that extending walls and fencing on America’s southern border would be ineffective and wasteful. He said border officials confirmed that the vast majority of illegal narcotics entering the United States pass through legal points of entry, not over open border territory.

“It turns out that fewer than one out of five trucks are actually inspected as they come across that border, and only 1.5 percent of cars are inspected,” Durbin said, adding that the funding priority should be to provide Customs and Border Protection agents with more technology and manpower at points of entry. 

‘Three-legged stool’

 

North Dakota Republican Sen. John Hoeven had a different take on the briefing. 

“One size does not fit all,” he said. “It’s a three-legged stool. Yes, you need technology. Yes, you need personnel. But you also have to have a border barrier.”

In his State of the Union address to Congress on Tuesday, Trump said walls are needed “to secure vast areas between our ports of entry,” adding, “Where walls go up, illegal crossings go down.”

For now, conference committee members aren’t predicting whether a border security agreement will contain even a portion of the $5.7 billion in wall funding Trump has sought, spawning doubts as to whether the president would support any bill a politically divided Congress might pass.

“Obviously, it would be great if the president decided to sign the bill,” Senate Majority Leader Mitch McConnell, a Kentucky Republican, said Tuesday. “I think the conferees ought to reach an agreement. And then we’ll hope that the president finds it worth signing.”

Stopgap bill

A 35-day partial government shutdown, the longest in U.S. history, ended in late January when Congress passed a stopgap bill to reopen federal agencies for three weeks. 

The shutdown began last December, when, at Trump’s behest, the then-Republican-led House refused to consider a Senate funding bill that omitted wall funding — and Senate Democrats rejected a House-passed bill that contained wall funding.

The three-week funding period was designed to give Congress time to forge a bipartisan border security package and fully fund federal operations for the remainder of the fiscal year.

“We’re on the right track,” Texas Rep. Kay Granger, the top Republican on the House Appropriations Committee, told reporters. “I think if we have enough time, we can get it done.” 

Trump Taps World Bank Critic David Malpass to Lead It

President Donald Trump says Treasury Department official David Malpass is his choice to lead the World Bank.

Trump introduced Malpass on Wednesday as the “right person to take on this incredibly important job.” Malpass is a sharp critic of the 189-nation lending institution.

Malpass says he’s honored by the nomination. He says a key goal will be to implement changes to the bank that he and Treasury Secretary Steven Mnuchin helped negotiate, and to ensure that women achieve full participation in developing economies.

Malpass would succeed Jim Yong Kim, who departed in January three years before his term was to end.

Other candidates will likely be nominated for the post by the bank’s member countries. A final decision on a new president will be up to the bank’s board.

Mnuchin: Powell and Trump Had ‘Productive’ Meeting

Treasury Secretary Steven Mnuchin said Wednesday that President Donald Trump had a “quite productive” dinner with Federal Reserve Chairman Jerome Powell. He says they discussed a wide range of subjects, from the state of the economy to the Super Bowl and Tiger Woods’ golf game.

Talking to reporters at the White House, Mnuchin said that Trump was very engaged during the casual dinner Monday night. It took place in the White House residence and marked the first time Powell and Trump have met since Powell took office as Fed chairman a year ago.

 

Mnuchin said that Powell’s comments were consistent with what he has been saying publicly about the economy. The Fed said in a statement that Powell did not discuss the future course of interest rates.

 

 

Conflict, Trade Feature in Trump’s State of the Union Foreign Policy

In the foreign policy section of his State of the Union Address, U.S. President Donald Trump spoke of ending conflicts where American troops have fought for years, and preventing what he sees as inevitable future conflicts if not for the policies enacted by his administration.

Afghanistan, Iraq wars

Trump noted the vast costs of the wars in Afghanistan and Iraq, which have resulted in the deaths of nearly 7,000 U.S. military personnel since 2001.

He said that after so many years of fighting in Afghanistan, now is the time “to at least try for peace,” saying the Taliban wants the same.

“My administration is holding constructive talks with a number of Afghan groups, including the Taliban.  As we make progress in these negotiations, we will be able to reduce our troop presence and focus on counterterrorism,” Trump said.

He has also ordered the withdrawal of U.S. troops from Syria, where they have been fighting to dislodge the Islamic State group since the militants swept through large areas of northern Iraq and eastern Syria in 2014.

“Today, we have liberated virtually all of the territory from the grip of these bloodthirsty monsters.  Now, as we work with our allies to destroy the remnants of ISIS, it is time to give our brave warriors in Syria a warm welcome home,” Trump said, using an acronym for the militant group.

North Korea

Following up on a June 2018 summit with North Korean leader Kim Jong Un, Trump announced Tuesday he would again meet with Kim on February 27 in Vietnam.

He touted a list of what he said were the successes of a “bold new diplomacy” toward North Korea, including the return of American hostages and a halt in nuclear and missile testing that followed the first summit.

“If I had not been elected president of the United States, we would right now, in my opinion, be in a major war with North Korea,” Trump said, adding that his relationship with Kim “is a good one.”

Iran

His rhetoric toward Iran was much stronger, remaining consistent with the tone he has struck since before becoming president when he was strongly critical of the international agreement that limited Iran’s nuclear program in exchange for sanctions relief.

“My administration has acted decisively to confront the world’s leading state sponsor of terror: the radical regime in Iran,” Trump said in his address.  “It is a radical regime.  They do bad, bad things.”

Last year, Trump withdrew the United States from the agreement formally known as the Joint Comprehensive Plan of Action.  Partners Britain, China, France, Russia and Germany have remained committed to the deal, along with Iran, and the United Nations nuclear watchdog agency has certified in multiple reports that Iran remains in compliance with measures meant to ensure it cannot develop a nuclear weapon.

Nuclear Arms Treaty

Trump last week announced the U.S. withdrawal from a 30-year-old nuclear arms treaty with Russia that banned the countries from possessing certain missiles.  He says Russia violated the pact, which Russia denies.

Trump suggested in his speech Tuesday the possibility of negotiating a new agreement that would add other nuclear powers such as China.  But in a comment that came shortly after he highlighted an increase in U.S. military spending, he warned that in the absence of such a deal, “we will outspend and out-innovate all others by far.”

Venezuela

Trump also used part of his speech to express support for the people of Venezuela, saying the United States stands with them “in their noble quest for freedom.”

The country has seen massive protests ahead of and following President Nicolas Maduro’s re-election last year in a vote the opposition called a sham.

The U.S. leader condemned what he called “the brutality” of Maduro’s government, saying its policies have put the country “into a state of abject poverty and despair.”

Trump reiterated U.S. support for Juan Guaido, who has also received the support of a number of European and South American countries since declaring himself president last month.  Russia and China are among the governments insisting Maduro remains president.

China and economic conflict

China featured in a much shorter section of Trump’s speech that dealt with economic conflict.

“We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end,” Trump said.

He cited new tariffs he has imposed on imports of Chinese goods, and said negotiations continue toward a new U.S.-China trade deal that he is insisting includes protecting American jobs, reducing the U.S. trade deficit with China and ending unfair trade practices.

In one of the few specific requests he made to the joint session of Congress gathered to listen to his speech, Trump asked lawmakers to pass legislation that would respond to a country placing tariffs on U.S. goods by enacting equivalent tariffs on imports of the same products from that country coming into the United States.

Trade with Canada, Mexico

His other economic focus was trade with neighbors Canada and Mexico.

After his decision to abandon the 1994 North American Free Trade Agreement, representatives from the three countries came together last year to craft a new trade deal known as the United States-Mexico-Canada Agreement.

The new deal has not yet been ratified, but Trump said Tuesday it would boost U.S. manufacturing jobs and automobile production, while also helping the agriculture sector and offering protections for intellectual property.

Highlights of Democratic Response to President Trump’s State of the Union

Stacey Abrams, a former Georgia state legislative leader who fell short last fall in her bid to become the first African-American woman to win a governorship, gave the Democratic response to President Donald Trump’s State of the Union message Tuesday night.

Here are highlights of her remarks.

Abrams stressed the need for bipartisanship and the need to avoid a repeat of the recent 35-day partial government shutdown that left 800,000 federal workers furloughed and without pay. She accused Trump of “making their livelihoods a pawn for a political game” in pressing for $5.7 billion in government funds to build a wall along the U.S.-Mexico border that most Americans don’t want.

 
Abrams, who accused her Republican opponent for governor  -- Secretary of State Brian Kemp – of voter suppression, called for reforms to assure voting rights and ballot access to African Americans and other minorities. “This is the next battle for our democracy, one where all eligible citizens can have their say about the vision we want for our country,” she said. “We must reject the cynicism that says allowing every eligible vote to be cast and counted is a 'power grab.”

 
She called on Congress to craft a bipartisan, humane “21st century immigration plan, while complaining that “this administration chooses to cage children and tea families apart.” She said that “compassionate treatment at the border is not the same as open borders.”

Rwanda Signs $400M Deal to Produce Methane Gas from ‘Killer Lake’

Rwanda said on Tuesday it had signed a $400 million deal to produce bottled gas from Lake Kivu, which emits such dense clouds of methane it is known as one of Africa’s “Killer Lakes.”

The project by Gasmeth Energy, owned by U.S. and Nigerian businessmen and Rwandans, would suck gas from the lake’s deep floor and bottle it for use as fuel. This should, in turn, help prevent toxic gas bubbling to the surface.

The seven-year deal, signed on Friday, was announced on Tuesday.

Rwanda already has two companies that extract gas from Lake Kivu to power electricity plants.

Clare Akamanzi, chief executive of the Rwanda Development Board, told Reuters bottled methane would help cut local reliance on wood and charcoal, the fuels most households and tea factories use in the East African nation of 12 million people.

“We expect to have affordable gas which is environmentally friendly,” she said. “We expect that people can use gas instead of charcoal, the same with industries like tea factories instead of using firewood, they use gas. It’s part of our green agenda.”

The deep waters of Lake Kivu, which lies in the volcanic region on Rwanda’s border with the Democratic Republic of Congo, emit such dense clouds of methane that scientists fear they might erupt, killing those living along its shore.

Eruptions from much smaller methane-emitting lakes in Cameroon, one causing a toxic cloud and another sparking an explosion, killed a total of nearly 1,800 people. The shores of Lake Kivu are much more densely populated.

Gasmeth Energy said it would finance, build and maintain a gas extraction, processing and compression plant to sell methane domestically and abroad.

The bottled gas should be on sale within two years, Akamanzi said, adding that prices had yet to be determined.

Uruguay Betting on Exports of Medical Marijuana

When he was younger, the only thing that Enrique Morales knew about marijuana was that you smoked it to get high.

 

Today, the former driver is a horticulturist on a cannabis plantation about 80 miles (130 kilometers) west of the Uruguayan capital of Montevideo and he says drops of marijuana oil have been key to treating his mother’s osteoarthritis.

 

“My perception has now changed. It is a plant that has a lot of properties!” he said.

 

The company that owns the plantation, Fotmer SA, is now part of a flourishing and growing medical cannabis industry in Uruguay.

 

The country got a head start on competitors in December 2013 when it became the first in the world to regulate the cannabis market from growing to purchase, a move that has brought a wave of investment.

 

For Uruguayan citizens or legal residents over 18 years old, the law allows the recreational use, personal cultivation and sale in pharmacies of marijuana through a government-run permit system, and officials later legalized the use and export of medical marijuana to countries where it is legal.

No company has yet begun large-scale export operations, but many say selling medical cannabis oil beyond the local market of 3.3 million inhabitants is key to staying ahead of the tide and transforming Uruguay into a medical cannabis leader along with the Netherlands, Canada and Israel.

 

“The Latin American market is poorly supplied and is growing,” said Chuck Smith, chief operating officer of Denver, Colorado-based Dixie Brands, which recently formed a partnership with Khiron Life Sciences, a Toronto company that has agreed to acquire Dormul SA, which has a Uruguayan license to produce medical cannabis.

 

“Uruguay is taking a leadership position in growing high CBD, high value hemp products. So we see that as a great opportunity from a supply chain perspective,” he said, referring to the non-psychoactive cannabidiols that are used in medical products.

 

Khiron has said it should be able to export medical marijuana from Uruguay to southern Brazil under regulations of the Mercosur trade bloc, marking a milestone for Uruguayan marijuana companies focused on exports.

 

Fotmer, based in the small town of Nueva Helvecia, also currently employs 80 people and is investing $7 million in laboratories and 10 tons of crops that it hopes to ship to countries including Germany and Canada, which is struggling to overcome supply shortages in its cannabis market.

Fotmer s 35,000 marijuana plants are sheltered in 18 large greenhouses measuring 12.5 meters by 100 meters (41 feet by 328 feet), where workers such as Morales change into special clothing, wash their hands with alcohol and wear gloves and surgical masks to avoid any contamination.

 

Helena Gonzalez, head of quality control, research and development for Fotmer, said the precautions are important in producing a quality product that can be used in medical research into the effects of cannabis products.

 

“Aiding that research is another of our objectives,” she said.

 

The first crop of prized flowers will be harvested for their cannabis oil in March.

 

The oil containing THC and CBD will be extracted in its labs to eventually manufacture pills, creams, ointments, patches and other treatments for cases of epilepsy and chronic pain, among other ills.

 

Competition is arriving as well. In December, Uruguayan President Tabare Vazquez inaugurated a $12 million laboratory owned by Canada s International Cannabis Corp., which aims to produce and export medicine from hemp, a variety of cannabis that contains CBDs but has no psychoactive effects.

 

Despite the momentum, experts say there is one key problem: Countries including Ecuador, Cuba, Panama, El Salvador and Guatemala continue to prohibit both the recreational and medicinal use of marijuana and exports of cannabis products are subject to a complex web of international regulations that is still being developed.

Marcos Baudean, a member of Monitor Cannabis at the University of the Republic of Uruguay, says another difficulty is that the South American country is competing for market share. He said cannabis exports give the country a chance to expand beyond its traditional exports of raw materials into more sophisticated products involving science and biology.

 

Diego Olivera, head of Uruguay s National Drug Secretariat, said Uruguay s comprehensive cannabis law, along with its strong rule of law and transparent institutions, gives it a head start.

 

“Uruguay today has a dynamism in the cannabis industry that is very difficult to find in other sectors,” he said.

Madrid Taxi Drivers Call Off Anti-Uber Strike, Vow to Fight On

Taxi-drivers in the Spanish capital seeking tighter regulation of Uber and other ride-hailing services called off their indefinite strike on Tuesday after 16 days during which they obtained no concessions from the Madrid regional government.

Madrid’s refusal to accept drivers’ demands came after ride-hailing companies Uber and Cabify said last week they were suspending their services in Barcelona in response to the regional government’s imposition of limits on how they operate in the city.

Union representatives in Madrid said the strike had demonstrated the unity and power of the drivers, which would help them continue the fight for their demands.

“It is a long war, in which you can lose battles, but in the end I’m sure we can win,” Julio Sanz, head of the Taxi Federation union, told reporters.

The city’s taxi drivers started the protests on Jan. 20 against the private services, which offer rides that often undercut taxi prices and can be hailed via the internet rather than in the street.

Last week, riot police backed by a fleet of tow trucks had to clear hundreds of vehicles blocking the capital’s Paseo de la Castellana thoroughfare.

In September, Spain’s government gave ride-hailing companies four years to comply with regulation granting them just one new licence for every 30 taxi licences. The cab drivers are demanding stricter regulations now.

Following protests by Barcelona taxi-drivers, the Catalan government had ruled that ride-hailing services could only pick up passengers after a 15-minute delay from the time they were booked.

AP Source: Trump to Tap Critic of Agency to Lead World Bank

President Donald Trump plans to nominate David Malpass, a Trump administration critic of the World Bank, to lead the institution.

 

That’s according to a senior administration official who spoke on condition of anonymity because the official wasn’t authorized to comment publicly on personnel decisions.

 

Trump is expected to make an announcement later this week.

 

Malpass, the undersecretary for international affairs at the Treasury Department, has been a sharp critic of the World Bank, especially over its lending to China.

 

Malpass would succeed Jim Yong Kim, who announced in January that he is stepping down three years before his term was set to expire.

 

The final decision on a successor to Kim will be up to the bank’s board.

 

Politico was first to report on the nomination.

 

 

Who Is Stacey Abrams?

Stacey Abrams, who has been chosen to give the Democratic response to the State of the Union, is a rising political star in the Democratic Party and the first African-American woman to deliver the address.

Abrams recently showed that she can mobilize the power of black women voters in her close but unsuccessful bid to become Georgia’s governor, and Democratic leaders are hoping that her selection to give the prominent address will energize the party’s base.

“She is just a great spokesperson. She is an incredible leader. She has led the charge for voting rights, which is at the root of just about everything else,” said Senate Minority Leader Chuck Schumer.

Schumer, along with other top Democrats, have been urging Abrams to challenge Georgia’s Republican Sen. David Perdue, one of President Donald Trump’s most outspoken allies in Congress, as part of an effort to gain Democratic control of the Senate.

Boost for fellow Democrats

While Abrams narrowly lost the Georgia governor’s race last year to Republican Brian Kemp, her presence at the top of the ticket boosted Democratic votes in the state and helped other state Democrats win office.

Democrats flipped a House seat in a suburban Atlanta congressional district that Republicans had held for decades and also flipped at least a dozen state legislative seats across the Atlanta suburbs.

The fact that Abrams, 45, nearly won the governor’s race in the reliably Republican Southern state has been seen by Democrats as reinforcing her ability to gain supporters and energize voters. 

Following the race, Abrams challenged the results, sharply accusing Kemp of deliberately suppressing thousands of votes. A group backed by Abrams filed a federal lawsuit this month saying Georgia deprived many low-income people and minorities of their voting rights during the race, which was overseen by Kemp, then secretary of state.

Abrams is a Yale Law School graduate who was elected to Georgia’s General Assembly in 2006. She rose to lead the Democrats in the assembly, taking over as the minority leader in 2011. She was known by her colleagues for being well-prepared, a good listener and someone who inspired others to trust and follow her. Although she ran unapologetically as a liberal, she was still able to earn the respect of many of her Republican colleagues and work with them across the aisle.  

‘Vision for prosperity and equality’

Abrams has said she is “honored” to be delivering the response to the State of the Union address. She has said that she intends to “deliver a vision for prosperity and equality, where everyone in our nation has a voice and where each of those voices is heard.” 

In recent years, the response to the State of the Union speech has usually given by someone whom party leaders see as a rising political star. But delivering the response can also be a thankless task that is heavily scrutinized.

“Stacey Abrams embodies the American Dream, and her powerful message of progress for all is deeply needed during this time for our country,” House Speaker Nancy Pelosi said. 

Trump Has Solid US Economy for SOTU, but Threats Remain

President Donald Trump will enjoy the backdrop of a mostly solid economy as he delivers his second State of the Union address Tuesday night, though questions about its sustainability linger.

Trump will likely tout the latest signs of strength: Friday’s jobs report showed that employers added the most jobs in January in nearly a year. The proportion of Americans working or looking for work reached a roughly five-year high. And a separate report showed that factory output rose at a healthy clip in December.

 

Those figures, however, haven’t fully erased concerns about an array of headwinds facing the U.S. economy this year.

 

Several challenges loom: Overseas growth is stumbling, led by weakness in China, the world’s second-largest economy. Europe is hamstrung by a recession in Italy and the potential for an unruly Brexit. A trade war between the U.S. and China and higher U.S. mortgage rates, partly engineered by the Federal Reserve, remain threats. The impact of the administration’s tax cut may fade. And a 35-day partial government shutdown will likely trim official measures of growth for the first quarter, economists say.

 

U.S. businesses are defying those headwinds, for now. Many analysts attribute the economy’s current health to Trump’s tax cuts in late 2017 and a jump in government spending last year, as part of a budget deal between the administration and Congress.

 

“No other major economy in the world did what we did,” said Ethan Harris, global economist at Bank of America Merrill Lynch. “The stimulus did a very good job of covering up all the blemishes of the economy, including the risks of the trade war.”

 

Economic growth reached 3.8 percent last spring and summer, the fastest six-month pace in four years. It also accelerated job gains at a time when many economists expected hiring to slow. With the unemployment rate already low, analysts figured that companies would have fewer unemployed people to hire.

 

Yet employers stepped up their hiring and drove the unemployment rate down to 3.7 percent in November, the lowest in five decades. It has since ticked up to 4 percent, partly because of government workers who were temporarily unemployed because of the shutdown.

 

White House officials say the good times will continue. Kevin Hassett, a top administration economist, forecasts that growth will clock in at 3 percent a year for the next decade. He predicts that the administration’s corporate tax cuts will entice businesses to invest more in machinery, software and buildings, which will make workers more productive and generate longer-term growth.

 

So far there is little evidence that that is happening, economists say. After a burst of investment in the first half of last year, companies have since pulled back on spending. Some economists attribute their caution to the administration’s trade war with China.

 

“They’re willing to add more people — that’s good,” said Diane Swonk, chief economist at Grant Thornton, referring to U.S. businesses. But “right now they’re not willing to pull the trigger and bet on building more capacity. That undermines your foundation for future growth.”

 

Most economists expect the impact of the tax cuts and extra government spending to fade as the year progresses and for the rate hikes the Fed has already imposed to hold back growth somewhat. Inevitably, too, a prolonged global slump would weaken the U.S. economy as well.

 

Harris forecasts that growth will slow to a 2 percent annual rate in the final three months of this year. Economists at JPMorgan Chase expect it will be just 1.5 percent.

 

Exactly how the U.S. economy is faring is harder than usual to judge because many data reports, including the quarterly figures on growth, are still delayed from the shutdown. The government hasn’t yet said when it will release its first estimate of gross domestic product — the broadest gauge of the economy — for the final three months of 2018.

 

Trends that had looked alarming a month or two ago now appear benign, perhaps even supportive of growth. The stock market, having plunged nearly 20 percent late last year, rose 8 percent in January, its best monthly performance since 2015. Americans who are invested in stocks typically cut spending when market indexes fall steadily. That is now less likely to happen.

 

And suddenly the Fed under Chairman Jerome Powell looks like an economic ally. The central bank had raised its benchmark short-term interest rate four times last year — action that helped make mortgages and other consumer and business loans costlier. In December, the Fed’s policymakers said they envisioned raising rates twice more this year.

 

But this week, the Fed held its benchmark rate steady and sent its strongest signal to date that it saw no need to raise rates in the coming months — perhaps even for the rest of the year. Its message ignited a rally on Wall Street, which cheered the prospect of continued modest borrowing rates for the near future.

 

At the same time, Swonk points out that home and auto sales are declining, suggesting they have peaked. A slowdown in such major purchases could weigh on growth in the coming months.

 

Who Is Attending the State of the Union as an Official Guest?

Both the president and lawmakers invite guests to the State of the Union address, usually to make a statement on an issue they wish to highlight. Here are some notable officials and the guests they plan to bring to the address.

President Donald Trump

The president has invited Judah Samet, who survived the Holocaust and the mass shooting at the Tree of Life Synagogue in Pittsburgh in October 2018 that killed 11 people, as well as Timothy Matson, a member of the Pittsburgh Police Department SWAT team, which responded to the shooting. Trump has invited several other people, including family members of Gerald and Sharon David, a Nevada couple who were killed in their home in January by an illegal immigrant; Matthew Charles, who was sentenced in 1996 to 35 years in prison for selling crack cocaine, among other charges, and was released in January as a result of Trump’s prison reforms; and Elvin Hernandez, a special agent with the Trafficking in Persons Unit of the Department of Homeland Security’s Homeland Security Investigations division.

​House Speaker Nancy Pelosi

The Democratic minority leader is bringing Elizabeth Guzman, the Virginia delegate who will deliver the Spanish response to the State of the Union address. Pelosi has also invited Melody Klingenfuss, who was brought illegally to the United States a child, also known as a “Dreamer.” 

Senator Rick Scott

Republican Scott’s guest for the State of the Union address is Andrew Pollack, whose daughter Meadow was one of 17 people killed in the 2018 Parkland, Florida, school shooting. Scott, who was the governor of Florida when the shooting took place, appointed Pollack to Florida’s education board. However, Scott’s successor, Republican Governor Ron DeSantis, rescinded that appointment along with dozens of others made by Scott.

Representative Alexandria Ocasio-Cortez

Democrat Ocasio-Cortez is taking Ana Maria Archila, a woman who cornered former Senator Jeff Flake on live television to protest his support for Supreme Court nominee Brett Kavanaugh. Archila, who lives in Ocasio-Cortez’s New York district, confronted Flake in a Senate elevator along with another woman last September and yelled at him over his support of Kavanaugh, who was accused of sexual assault. The women described themselves as survivors of sexual assault and asked Flake to reconsider his support of Kavanaugh, a moment that was replayed throughout the media. Kavanaugh denied the accusation and was later confirmed to the high court.

Representative Jeff Fortenberry

Republican Fortenberry, from Nebraska, has invited Nadia Murad, an Iraqi Yazidi human rights activist who escaped captivity by the Islamic State and went on to win the Nobel Peace Prize.

​Representative Jimmy Gomez 

Democrat Gomez, from California, is bringing Sandra Diaz, a formerly undocumented immigrant who worked as a housekeeper from 2010-2013 at the Trump National Golf Club in Bedminster, New Jersey. Diaz is from Costa Rica and has since become a legal U.S. resident. Democratic Congresswoman Bonnie Watson Coleman of New Jersey has invited Victorina Morales, another undocumented worker who previously worked at the same Trump property. Morales was fired from working as a maid in the golf club after coming forward to the media about being undocumented.

Senator Thom Tillis

Republican Tillis, from North Carolina, will attend the State of the Union with evangelical pastor Andrew Brunson, who was released from a Turkish prison last year. The detention of Brunson, on charges of espionage in 2016, strained U.S.-Turkey relations. The Trump administration had strongly pressed Turkey for his release.

Representative Chris Pappas

Democrat Pappas, from New Hampshire, is one of at least four members of Congress who is bringing a transgender service member or veteran to the address. Pappas, an openly gay congressman, has invited Tavion Dignard, who served in the U.S. Navy from 1998-2002. The Trump administration has banned most openly transgender men and women from serving in the military, and the Supreme Court ruled last month the government could carry out the policy while legal challenges to it play out in the court system. 

US Trade Agency Sees Negotiating New WTO Rules to Rein in China as Futile

Negotiating new World Trade Organization rules to try to rein in China’s “mercantilist” trade practices would be largely a futile exercise, the Trump administration’s trade office said on Monday, vowing to pursue its unilateral approach to protect U.S. workers, farmers and businesses.

The U.S. Trade Representative’s office used its annual report to Congress on China’s WTO compliance in part to justify its actions in a six-month trade war with Beijing aimed at forcing changes in China’s economic model.

The report also reflects the United States’ continued frustration with the WTO’s inability to curb what it sees as China’s trade-distorting non-market economic policies, and offered little hope that situation could change soon.

“It is unrealistic to expect success in any negotiation of new WTO rules that would restrict China’s current approach to the economy and trade in a meaningful way,” the USTR said in the report.

Some U.S. allies, including Canada, the European Union and Japan, which are also frustrated with pressures created by China’s economic policies, have begun talks on the first potential changes and modernization of WTO rules since it was founded in 1995.

But any WTO rule changes must be agreed by all 164 member nations, and past efforts have stalled. It was “highly unlikely” China would agree to new disciplines targeting changes to its trade practices and economic system, the USTR said.

Tariff deadline

The report shed little light on progress in talks between the United States and China to ease a bruising tariff fight, despite a swiftly approaching March 2 deadline to hike U.S. tariffs to 25 percent from 10 percent on $200 billion worth of Chinese goods imports.

The WTO report follows two days of intense talks between high-level U.S. and Chinese officials last week centered on U.S. demands for structural policy changes. These include enforcing intellectual property protections, ending cyber theft of trade secrets, halting the forced transfers of American technology to Chinese firms and reining in industrial subsidies.

While U.S. President Donald Trump said he would like to meet Chinese President Xi Jinping to try to hammer out a trade deal, the USTR report makes clear a massive amount of work will be needed to bridge the gulf between the two countries.

It cited the key structural issues in the talks, which also include China’s new cybersecurity law and discriminatory regulatory practices, as examples of how China aids domestic firms at the expense of foreign competitors in ways that escape WTO rules, adding that China has become “a unique and pressing problem for the WTO and the multilateral trading system.”

The criticism also comes as the United States weakens the WTO’s role as global commerce watchdog by blocking the appointments of judges to its appellate body, which may no longer be able to function by December, when two judges step down.

‘Holding China accountable’

USTR said the United States intends to “hold China accountable” for adhering to existing WTO rules and “any unfair and market-distorting trade practices that hurt U.S. workers, businesses, farmers or ranchers.”

“Until China transforms its approach to the economy and trade, the United States will take all appropriate actions to ensure that the costs of China’s non-market economic system are borne by China, not by the United States,” USTR said.

The agency reiterated a broad array of concerns over China’s key structural issues, such as its 2025 plan for investment in particular sectors and its failure to follow market-oriented principles expected of WTO members, the report said.

“China retains its non-market economic structure and its state-led, mercantilist approach to trade, to the detriment of its trading partners,” it said.