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Bush Praised for Life of Service as Reactions Pour in After His Death

Condolences and praise began to pour in from former presidents and political figures around the world for former U.S. President George H.W. Bush, who died Friday:

“George H.W. Bush was a man of the highest character and the best dad a son or daughter could ask for,” former President George W. Bush said in a statement following the announcement of his father’s death.

 

U.S. President Donald Trump and his wife, Melania, praised the 41st president’s ability to inspire “generations of his fellow Americans to public service – to be, in his words, ‘a thousand points of light’ illuminating the greatness, hope and opportunity of America to the world.”

The Trumps added, “Along with his full life of service to country, we will remember former President Bush for his devotion to family – especially the love of his life, Barbara.”

Former President Jimmy Carter said he and his wife, Rosalynn, “are deeply saddened by the death of former President George H.W. Bush. His administration was marked by grace, civility, and social conscience. Through his Points of Light initiative and other projects, he espoused a uniquely American volunteer spirit, fostering bipartisan support for citizen service and inspiring millions to embrace community volunteerism as a cherished responsibility.”

Former President Barack Obama and his wife, Michelle, released a joint statement, saying, “Bush’s life is a testament to the notion that public service is a noble, joyous calling.”

 

The Obamas recalled that Bush once said he got more of a kick out of being one of the founders of the YMCA in Midland, Texas, in 1952 than almost anything he had ever done. “What a testament to the qualities that make this country great,” the Obamas said.

“Few Americans have been – or will ever be – able to match President Bush’s record of service to the United States and the joy he took every day from it,” said Bill and Hillary Clinton, the former president and secretary of state, respectively.  They noted Bush’s “military service in World War II, to his work in Congress, the United Nations, China, the Central Intelligence Agency, the Vice Presidency and the Presidency, where he worked to move the post-Cold War world toward greater unity, peace, and freedom.”

​James Baker, Bush’s former secretary of state, said that in each position Bush held, he “led with strength, integrity, compassion and humility – characteristics that define a truly great man and effective leader.”

John Sununu, who was Bush’s chief of staff, wrote in The Washington Post on Saturday, “Although he (Bush) would never be comfortable taking credit for the success of his life, most historians now agree that Bush was a great president who accomplished great things. He helped make America safer and the world more stable and more prosperous than ever before in history.”

Kuwait’s ruling emir, Sheikh Sabah al-Ahmad al-Sabah, said Bush tried to “create a new international order based on justice and equality among nations” and never “forgot the Kuwaiti people and will remain in their memory.”

 

Former Soviet leader Mikhail Gorbachev and Bush worked together to end the Cold War in the late 1980s to early 1990s through such things as U.S.-Russia arms control agreements, including the Strategic Arms Reduction Treaty. He sent condolences to the Bush family, saying they “deeply appreciated the attention, kindness and simplicity typical of George and Barbara Bush, as well as the rest of their large, friendly family.”

Russian President Vladimir Putin, via the Kremlin website, said Saturday, “A distinguished man has passed away. One who served his country for his entire life, with a weapon in his hands during wartime and in high office during peacetime.”

A Timeline: George H.W. Bush: 41st US President

Significant dates in the life of former U.S. President George H.W. Bush.

1924 — George H.W. Bush is born June 12 in Milton, Massachusetts, to Prescott Bush and Dorothy Walker Bush

1941 — A few weeks after the Japanese attack Pearl Harbor, Bush meets Barbara Pierce at a Christmas dance.

1942 — Enlists in the U.S. Navy on the day he turns 18 years old.

1943 — Becomes the youngest commissioned pilot in the naval air service.

1945 — Marries Barbara Pierce in January while on leave. Bush is honorably discharged from the Navy in September.

1948 — Graduates from Yale and accepts a job in the oil industry and moves his family to Texas.

1952 — Co-founds Zapata Petroleum. Bush’s father, Prescott Bush, is elected to the U.S. Senate from Connecticut.

1962 — Becomes chairman of the Harris County Republican Committee. His father retires from the Senate.

1964 — Is unsuccessful in his run for seat in the U.S. Senate.

1966 — Elected to the U.S. House of Representatives. Becomes the first freshman in 63 years to be offered a seat on the powerful Ways and Means Committee.

1970 — Gives up his congressional seat to again run for the Senate, but is defeated by Democrat Lloyd Bentsen.

1971 — Appointed as the U.S. Ambassador to the United Nations by President Richard Nixon.

1974 — Appointed to be chief of the U.S. Liaison Office in China by President Gerald Ford.

1976 — Is named Director of the Central Intelligence Agency.

1979 — Declares his candidacy for the presidency of the United States.

1980 — Fails to win the nomination of the Republican Party but is picked as Ronald Reagan’s vice president. Reagan-Bush beat Carter-Mondale in a landslide.

1981 — Is sworn in as the 43rd vice president.

1987 — Announces he will run for president.

​1989 — Is sworn in as the 41st president of the United States. On Dec. 20, the United States invades Panama, captures dictator Manuel Noriega and brings him to the U.S. to stand trial for drug-trafficking.

1991 — The United States and its allies launch a military operation to expel Iraqi forces from Kuwait. Operation Desert Storm begins with aerial and naval bombardment, followed by a ground assault five weeks later. A cease-fire is declared 100 hours after the start of the ground assault.

1992 — Bush announces his candidacy for re-election. In November, he is defeated by Bill Clinton.

2001 — Attends the inauguration of his son, George W. Bush, as the 43rd president of the United States. It is the first time, since John and John Quincy Adams almost 200 years earlier, that a father and son have been elected president.

2011 — Is awarded the Presidential Medal of Honor, the highest civilian honor in the United States, by President Barack Obama.

2014 — Fulfills a long-standing promise to skydive on his 90th birthday. It is the eighth time the former president has made a parachute jump, including on his 80th and 85th birthdays.

2018 — Dies Nov. 30, age 94

Former President George H.W. Bush Dies: A Life of Commitment to US

George H.W. Bush, the 41st president of the United States, a man born of patrician pedigree, but with a sense of honor, duty and service to his country that played out over the last 60 years of the 20th century, died Friday at age 94.

In a life on the world stage and at the highest levels of the American political scene, Bush lost and won elections before becoming the American leader in 1989, and then, with a declining U.S. economy and unemployment rising, was turned out of office after four years in the White House, losing his re-election bid in 1992.

He marked the start of his presidency with a sweeping inaugural declaration that “a new breeze is blowing, and a world refreshed by freedom seems reborn; for in man’s heart, if not in fact, the day of the dictator is over. The totalitarian era is passing, its old ideas blown away like leaves from an ancient, lifeless tree.”

His pronouncement soon proved prophetic, with the fall of the Berlin Wall and the collapse of the Soviet Union occurring early in his presidency. Bush met with Soviet leader Mikhail Gorbachev shortly after the fall of the Berlin Wall, their Malta talks viewed as an important stepping stone toward the two leaders signing the 1991 Strategic Arms Reduction Treaty.

During his four years in the White House, Bush ordered a military operation in Panama to overthrow its drug-trafficking leader, Manuel Noriega. Later, he sent troops to the Mideast to repel Iraqi dictator Saddam Hussein in his attempted takeover of oil-rich Kuwait. It was perhaps the high point of Bush’s presidency, his approval rating among U.S. voters reaching a record 89 percent, with a fireworks display lighting the night-time sky over Washington to salute the successful mission.

Upon later reflection, Bush’s foray into Kuwait was considered as something less than a total victory in that many Iraqi troops were pushed back into their homeland, rather than captured or killed, and Hussein remained in power, only overthrown years later in the 2003 U.S. invasion ordered by Bush’s son, President George W. Bush.

The elder Bush said he rejected an overthrow of the Iraqi government because it would have “incurred incalculable human and political costs. We would have been forced to occupy Baghdad and, in effect, rule Iraq.”

Early commitment to country

Bush’s commitment to his country came early in life. He was a naval fighter pilot in World War II, attacking Japanese targets at the age of 18, victorious in one of the war’s largest air battles, the Battle of the Philippine Sea. Later, he completed one mission after his plane was hit by flak, leaving his engine on fire. He bailed out of the aircraft and was rescued in the waters off the Bonin Islands.

In his rise to the presidency, Bush held a variety of key positions over the years, often deemed by Republican presidents as the most qualified man in U.S. public life. He served as U.S. ambassador to the United Nations in the early 1970s, chairman of the Republican National Committee a short time later, then as chief U.S. envoy to China in the mid-1970s. Later, he was director of the Central Intelligence Agency.

He was not always a successful politician, losing a 1964 election for a U.S. Senate seat from Texas, where he later founded an oil company. He won an election for a seat in the House of Representatives before losing another bid for a Senate seat. That loss set him on a path to the string of high-level appointments in the 1970s.

​Reagan’s running mate

Bush sought the 1980 Republican presidential nomination but lost it to then-California governor, Ronald Reagan, who tapped Bush as his vice presidential running mate in two successful national campaigns, in 1980 and again four years later.

With Reagan barred by the U.S. Constitution from serving more than two terms, Bush plotted a presidential run for 1988, ultimately defeating the Democratic nominee, Massachusetts Gov. Michael Dukakis.

The campaign was marked by an infamous political television ad produced by a group supporting Bush that depicted Dukakis as weak on crime because as governor he had released on weekend furlough a convicted killer, a black man named Willie Horton, who then raped a white woman and assaulted her white fiance. Some critics viewed the ad as racist and an attempt to play on white voters’ fears of crimes committed by menacing black men.

Four years later, however, Bush lost the presidency to Arkansas Gov. Bill Clinton, although the two later became friends, occasionally dispatched by subsequent U.S. presidents to oversee assistance efforts after natural disasters.

​Elder statesman

In his retirement years, Bush watched as one of his sons, George W. Bush, twice won the presidency, only the second time in U.S. history that a father and son both became the U.S. leaders. Bush oversaw the opening of his presidential library in College Station, Texas, and was widely honored as an elder statesman. But on several occasions, as he was confined to a wheelchair while he battled a form of Parkinson’s disease, he had to apologize for inappropriately touching women who were standing next to him after telling a sexually suggestive joke.

Bush was married for 73 years to the former Barbara Pierce, a woman he met in his teenage years. It was the longest marriage among any U.S. presidential couples. She died at 92 in April 2018.

US Judge Gives Preliminary OK to $48M VW Investor Settlement 

A U.S. judge in California has granted preliminary approval of a $48 million settlement for investors who said Volkswagen AG made false and misleading statements about its excess diesel emissions. 

Lawyers for the investors, who include police and other municipal pension funds, had estimated that the maximum they could have recovered was $147 million. But Judge Charles Breyer said the settlement agreed to in August appeared “fair, adequate and reasonable.” 

VW, in a statement, said Friday that the “proposed settlement agreement eliminates the uncertainty and considerable costs of protracted litigation in the United States and is in the best interests of the company.” The ruling was issued late Wednesday. 

Buybacks

In total, Volkswagen has agreed to pay more than $25 billion in the United States for claims from owners, environmental regulators, states and dealers, and has offered to buy back about 500,000 polluting U.S. vehicles. The buybacks will continue through 2019. 

The German automaker admitted in September 2015 to secretly installing software in nearly 500,000 U.S. cars to cheat government exhaust emissions tests. The vehicles had emitted up to 40 times the legally allowable pollutants. 

In 2017, VW also pleaded guilty of fraud, obstruction of justice and falsifying statements in a U.S. court. Under the plea deal, the automaker agreed to sweeping reforms, new audits and oversight by an independent monitor for three years. 

Federal prosecutors in Detroit unsealed criminal charges in May against former VW Chief Executive Officer Martin Winterkorn, who remains in Germany. Two other former VW executives have pleaded guilty in the investigation and are in prison. 

In total, nine people have been charged in the United States. 

Breyer set a date for a fairness hearing to allow further comment on the August settlement for May 10, after which a final ruling will be issued. 

US Judge Gives Preliminary OK to $48M VW Investor Settlement 

A U.S. judge in California has granted preliminary approval of a $48 million settlement for investors who said Volkswagen AG made false and misleading statements about its excess diesel emissions. 

Lawyers for the investors, who include police and other municipal pension funds, had estimated that the maximum they could have recovered was $147 million. But Judge Charles Breyer said the settlement agreed to in August appeared “fair, adequate and reasonable.” 

VW, in a statement, said Friday that the “proposed settlement agreement eliminates the uncertainty and considerable costs of protracted litigation in the United States and is in the best interests of the company.” The ruling was issued late Wednesday. 

Buybacks

In total, Volkswagen has agreed to pay more than $25 billion in the United States for claims from owners, environmental regulators, states and dealers, and has offered to buy back about 500,000 polluting U.S. vehicles. The buybacks will continue through 2019. 

The German automaker admitted in September 2015 to secretly installing software in nearly 500,000 U.S. cars to cheat government exhaust emissions tests. The vehicles had emitted up to 40 times the legally allowable pollutants. 

In 2017, VW also pleaded guilty of fraud, obstruction of justice and falsifying statements in a U.S. court. Under the plea deal, the automaker agreed to sweeping reforms, new audits and oversight by an independent monitor for three years. 

Federal prosecutors in Detroit unsealed criminal charges in May against former VW Chief Executive Officer Martin Winterkorn, who remains in Germany. Two other former VW executives have pleaded guilty in the investigation and are in prison. 

In total, nine people have been charged in the United States. 

Breyer set a date for a fairness hearing to allow further comment on the August settlement for May 10, after which a final ruling will be issued. 

Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft’s big bet on cloud computing is paying off as the company has surpassed Apple as the world’s most valuable publicly traded company. 

 

The software maker’s prospects looked bleak just a few years ago, as licenses for the company’s Windows system fell with a sharp drop in sales of personal computers. 

 

But under CEO Satya Nadella, Microsoft has found stability by focusing on software and services over the internet, or the cloud, with long-term business contracts.  

  

That 1990s personal-computing powerhouse is now having a renaissance moment, as it eclipses Facebook, Google, Amazon and the other tech darlings of the late decade. 

 

Apple had been the world’s most prosperous firm since claiming the top spot from Exxon Mobil earlier this decade. Microsoft surpassed Apple briefly a few times this week, but didn’t close on top until Friday, with a market value of $851 billion to Apple’s $847 billion. Microsoft hadn’t been at the top since the height of the dot-com boom in 2000.  

Apple’s plunge

  

Microsoft became a contender again in large part because Apple’s stock fell nearly 20 percent in November, while Microsoft hasn’t done any worse than the rest of the stock market. But the fact that it hasn’t done poorly reflects its steady focus on business customers in recent years. 

 

Microsoft lost its luster as people were shunning PCs in favor of smartphones. In 2013, PC sales plunged 10 percent to about 315 million, the worst year-to-year drop ever, according to research firms Gartner and IDC. It didn’t help that Microsoft’s effort to make PCs more like phones, Windows 8, was widely panned.  

  

But a turnaround began when the Redmond, Wash., company promoted Nadella as CEO in 2014. He succeeded Microsoft’s longtime CEO, Steve Ballmer, who initially scoffed at the notion that people would be willing to pay $500 or more for Apple’s iPhones.  

That bet paid off. Windows is now a dwindling fraction of Microsoft’s business. While the company still runs consumer-focused businesses such as Bing search and Xbox gaming, it has prioritized business-oriented services such as its Office line of email and other workplace software, as well as newer additions such as LinkedIn and Skype. But its biggest growth has happened in the cloud, particularly the cloud platform it calls Azure. Cloud computing now accounts for more than a quarter of Microsoft’s revenue, and Microsoft rivals Amazon as a leading provider of such services. 

 

Wedbush analyst Dan Ives said Azure is still in its early days, meaning there’s plenty of room for growth, especially considering the company’s large customer base for Office and other products. 

 

“While the tech carnage seen over the last month has been brutal, shares of [Microsoft] continue to hold up like the Rock of Gibraltar,” he said. 

 

Being less reliant on consumer demand helped shield Microsoft from holiday season turbulence and U.S.-China trade war jitters affecting Apple and other tech companies. 

 

President Donald Trump amplified those tariff concerns when he told The Wall Street Journal in a story published late Monday that new tariffs could affect iPhones and laptops imported from China. 

 

The iPhone maker had already seen its stock fall after reporting a mixed bag of quarterly results in early November amid fears about how the technology industry will fare in the face of such threats as rising interest rates, increased government regulation and Trump’s escalating trade war with China. 

Reporting change

 

Apple also spooked investors with an unexpected decision to stop disclosing how many iPhones it sells each quarter. That move has been widely interpreted as a sign that Apple foresees further declines in iPhone sales and is trying to mask that.  

  

While smartphones caused the downturn in personal computers years ago, sales of smartphones themselves have now stalled. That’s partly because with fewer innovations from previous models, more people choose to hold on to the devices for longer periods before upgrading. 

 

Daniel Morgan, senior portfolio manager for Synovus Trust, said Microsoft is outperforming its tech rivals in part because of what it’s not. It doesn’t face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices. Unlike Netflix, it’s not on a hunt for a diminishing number of international subscribers. And while Amazon also has a strong cloud business, it’s still more dependent on online retail.  

Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft’s big bet on cloud computing is paying off as the company has surpassed Apple as the world’s most valuable publicly traded company. 

 

The software maker’s prospects looked bleak just a few years ago, as licenses for the company’s Windows system fell with a sharp drop in sales of personal computers. 

 

But under CEO Satya Nadella, Microsoft has found stability by focusing on software and services over the internet, or the cloud, with long-term business contracts.  

  

That 1990s personal-computing powerhouse is now having a renaissance moment, as it eclipses Facebook, Google, Amazon and the other tech darlings of the late decade. 

 

Apple had been the world’s most prosperous firm since claiming the top spot from Exxon Mobil earlier this decade. Microsoft surpassed Apple briefly a few times this week, but didn’t close on top until Friday, with a market value of $851 billion to Apple’s $847 billion. Microsoft hadn’t been at the top since the height of the dot-com boom in 2000.  

Apple’s plunge

  

Microsoft became a contender again in large part because Apple’s stock fell nearly 20 percent in November, while Microsoft hasn’t done any worse than the rest of the stock market. But the fact that it hasn’t done poorly reflects its steady focus on business customers in recent years. 

 

Microsoft lost its luster as people were shunning PCs in favor of smartphones. In 2013, PC sales plunged 10 percent to about 315 million, the worst year-to-year drop ever, according to research firms Gartner and IDC. It didn’t help that Microsoft’s effort to make PCs more like phones, Windows 8, was widely panned.  

  

But a turnaround began when the Redmond, Wash., company promoted Nadella as CEO in 2014. He succeeded Microsoft’s longtime CEO, Steve Ballmer, who initially scoffed at the notion that people would be willing to pay $500 or more for Apple’s iPhones.  

That bet paid off. Windows is now a dwindling fraction of Microsoft’s business. While the company still runs consumer-focused businesses such as Bing search and Xbox gaming, it has prioritized business-oriented services such as its Office line of email and other workplace software, as well as newer additions such as LinkedIn and Skype. But its biggest growth has happened in the cloud, particularly the cloud platform it calls Azure. Cloud computing now accounts for more than a quarter of Microsoft’s revenue, and Microsoft rivals Amazon as a leading provider of such services. 

 

Wedbush analyst Dan Ives said Azure is still in its early days, meaning there’s plenty of room for growth, especially considering the company’s large customer base for Office and other products. 

 

“While the tech carnage seen over the last month has been brutal, shares of [Microsoft] continue to hold up like the Rock of Gibraltar,” he said. 

 

Being less reliant on consumer demand helped shield Microsoft from holiday season turbulence and U.S.-China trade war jitters affecting Apple and other tech companies. 

 

President Donald Trump amplified those tariff concerns when he told The Wall Street Journal in a story published late Monday that new tariffs could affect iPhones and laptops imported from China. 

 

The iPhone maker had already seen its stock fall after reporting a mixed bag of quarterly results in early November amid fears about how the technology industry will fare in the face of such threats as rising interest rates, increased government regulation and Trump’s escalating trade war with China. 

Reporting change

 

Apple also spooked investors with an unexpected decision to stop disclosing how many iPhones it sells each quarter. That move has been widely interpreted as a sign that Apple foresees further declines in iPhone sales and is trying to mask that.  

  

While smartphones caused the downturn in personal computers years ago, sales of smartphones themselves have now stalled. That’s partly because with fewer innovations from previous models, more people choose to hold on to the devices for longer periods before upgrading. 

 

Daniel Morgan, senior portfolio manager for Synovus Trust, said Microsoft is outperforming its tech rivals in part because of what it’s not. It doesn’t face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices. Unlike Netflix, it’s not on a hunt for a diminishing number of international subscribers. And while Amazon also has a strong cloud business, it’s still more dependent on online retail.  

New North American Trade Deal Signed in Buenos Aires

U.S. President Donald Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto have signed the new U.S. Mexico Canada Agreement, a deal designed to replace the North American Free Trade Agreement. White House Correspondent Patsy Widakuswara reports.

New North American Trade Deal Signed in Buenos Aires

U.S. President Donald Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto have signed the new U.S. Mexico Canada Agreement, a deal designed to replace the North American Free Trade Agreement. White House Correspondent Patsy Widakuswara reports.

Markets Sweat on Lopez Obrador’s ‘True Colors’ on Eve of New Mexican Presidency

During Andres Manuel Lopez Obrador’s successful campaign for the Mexican presidency, his advisers met representatives of dozens of investment funds to allay fears about the leftist’s plans, saying he prized economic stability and wanted to attract foreign capital.

Initially, it worked.

When Lopez Obrador won office by a landslide on July 1, the peso and the stock market rose, buoyed by his conciliatory tone.

The rally continued when Mexico and the United States reached a deal to rework the NAFTA trade pact in late August.

But the mood has since changed.

Lopez Obrador, who takes office Saturday, began saying in September that Mexico was “bankrupt.” When he canceled a new $13 billion Mexico City airport on Oct. 29 on the basis of a widely-derided referendum, investors took flight.

“[Lopez Obrador] behaved quite well from the election in early July until the referendum on the airport. That was really an indication of his true colors,” said Penny Foley, portfolio manager for emerging markets and international equities groups at TCW Group Inc, which manages $198 billion in total.

Foley said the referendum prompted TCW to cut its exposure to bonds issued by state oil firm Pemex, on the grounds that under a Lopez Obrador administration the company would be driven more by politics than by profit.

“We are now slightly underweight Mexico in the dollar fund and neutral in the local currency fund,” she added.

Lopez Obrador wants to attract investment from home and abroad to fuel economic growth and drive an ambitious infrastructure agenda, including a major rail project linking Cancun to Mexico’s southeast, plus a new oil refinery.

Yet decisions such as the airport cancellation have fed investors’ concerns he could push Mexico toward a more authoritarian, arbitrary and partisan form of government.

Mexico’s S&P/BVM IPC stock index has tumbled 17 percent since the market’s post-election peak on Aug. 28, while the peso has fallen around 8 percent against the dollar.

Bond yields on Mexican 10-year sovereign debt have jumped 121 basis points, a sign investors see it as a riskier bet.

By contrast, yields on Brazil’s 10-year debt have fallen over 20 basis points since the Oct. 28 presidential election victory of Jair Bolsonaro, a far-right politician who has appointed a group of pro-market economists to his team. Mexican corporate debt markets have taken note.

Airport operator GAP, which controls terminals in a dozen cities including Tijuana and Guadalajara, canceled a planned 6 billion peso debt issuance this week.

“We decided to wait for better conditions,” GAP chief financial officer Saul Villarreal told Reuters.

Some European businesses are also in wait-and-see mode, said Alberico Peyron, a board member and former head of the Italian chamber of commerce in Mexico.

There was “no panic so far,” but a few executives had put plans on hold until the picture became clearer, he said, adding: “There are more who are worried than are optimistic.”

‘Errors’ made

After 30 years of kicking against the establishment, the veteran Lopez Obrador, a 65-year-old former mayor of Mexico City, claimed the presidency with a promise to clean up government, cut poverty and tame Mexico’s drug cartels.

Aiming to almost double economic growth to around 4 percent, Lopez Obrador wants to revive Pemex, increase pensions and spur development in the poorer south to contain illegal immigration that has strained ties with U.S. President Donald Trump.

Lopez Obrador says rooting out corruption will free up billions of dollars, while he intends to save more with pay cuts for civil servants. However, critics say the cuts could affect the quality of officials in his new administration.

Johannes Hauser, managing director of the German chamber of commerce in Mexico, told Reuters the association’s annual survey of firms, currently underway, was upbeat on Mexico.

Still, initial results suggested companies were not quite as eager to invest or create new jobs as they were a year ago. And the airport cancellation had been a shock, he said.

During their campaign outreach, some of Lopez Obrador’s advisers sought to play down the airport’s importance to markets, while others suggested it was likely to be completed.

Without providing evidence, Lopez Obrador said the project — which has been under construction since 2015 — was tainted by corruption. But more than once, Lopez Obrador had raised the possibility of turning its completion into a private concession.

Incoming Finance Minister Carlos Urzua, whose team sat down with financial heavyweights such as Bank of America, BlackRock, Credit Suisse and Morgan Stanley, told Reuters in April that foreign investors were “not very worried” about the airport.

Now, the scrapping of the hub has raised the prospect of a messy legal dispute with investors that could cost billions of dollars — as well as cloud interest in new projects.

Some members of Lopez Obrador’s incoming government privately express deep misgivings about the decision to cancel the airport, which was based on a referendum organized by his own party in which barely 1 percent of the electorate voted.

They felt the poll, which critics lambasted as opaque and open to abuse, undermined the credibility he had built up over the years he spent campaigning against corruption and vote-rigging.

Lopez Obrador’s taste for rule by referendum, and changes to laws governing everything from banking to mining and pension funds that have been proposed by his National Regeneration Movement and the party’s allies in Congress, have further curdled sentiment.

“I’ve moved from being cautiously optimistic after the election, to being quite pessimistic now,” said Andres Rozental, a former deputy foreign minister of Mexico. “He’s not building on what he got. He’s destroying little by little what he got.”

Facing questions about the airport controversy from a panel of prominent Mexican journalists this month, Lopez Obrador was unrepentant about the referendum, saying that “errors” made were blown out of proportion by adversaries trying to hurt him.

“What I regard as most important in my life is my honesty,” he said. “We are not creating a dictatorship,” he added, repeating what is a frequent aside in his public pronouncements.

Nevertheless, Arturo Herrera, an incoming deputy finance minister, conceded this week that the transition had tested the next government, which must present its first budget by mid-December.

“What we’re all learning is that we need to be extremely careful,” he told Mexican television.

Markets Sweat on Lopez Obrador’s ‘True Colors’ on Eve of New Mexican Presidency

During Andres Manuel Lopez Obrador’s successful campaign for the Mexican presidency, his advisers met representatives of dozens of investment funds to allay fears about the leftist’s plans, saying he prized economic stability and wanted to attract foreign capital.

Initially, it worked.

When Lopez Obrador won office by a landslide on July 1, the peso and the stock market rose, buoyed by his conciliatory tone.

The rally continued when Mexico and the United States reached a deal to rework the NAFTA trade pact in late August.

But the mood has since changed.

Lopez Obrador, who takes office Saturday, began saying in September that Mexico was “bankrupt.” When he canceled a new $13 billion Mexico City airport on Oct. 29 on the basis of a widely-derided referendum, investors took flight.

“[Lopez Obrador] behaved quite well from the election in early July until the referendum on the airport. That was really an indication of his true colors,” said Penny Foley, portfolio manager for emerging markets and international equities groups at TCW Group Inc, which manages $198 billion in total.

Foley said the referendum prompted TCW to cut its exposure to bonds issued by state oil firm Pemex, on the grounds that under a Lopez Obrador administration the company would be driven more by politics than by profit.

“We are now slightly underweight Mexico in the dollar fund and neutral in the local currency fund,” she added.

Lopez Obrador wants to attract investment from home and abroad to fuel economic growth and drive an ambitious infrastructure agenda, including a major rail project linking Cancun to Mexico’s southeast, plus a new oil refinery.

Yet decisions such as the airport cancellation have fed investors’ concerns he could push Mexico toward a more authoritarian, arbitrary and partisan form of government.

Mexico’s S&P/BVM IPC stock index has tumbled 17 percent since the market’s post-election peak on Aug. 28, while the peso has fallen around 8 percent against the dollar.

Bond yields on Mexican 10-year sovereign debt have jumped 121 basis points, a sign investors see it as a riskier bet.

By contrast, yields on Brazil’s 10-year debt have fallen over 20 basis points since the Oct. 28 presidential election victory of Jair Bolsonaro, a far-right politician who has appointed a group of pro-market economists to his team. Mexican corporate debt markets have taken note.

Airport operator GAP, which controls terminals in a dozen cities including Tijuana and Guadalajara, canceled a planned 6 billion peso debt issuance this week.

“We decided to wait for better conditions,” GAP chief financial officer Saul Villarreal told Reuters.

Some European businesses are also in wait-and-see mode, said Alberico Peyron, a board member and former head of the Italian chamber of commerce in Mexico.

There was “no panic so far,” but a few executives had put plans on hold until the picture became clearer, he said, adding: “There are more who are worried than are optimistic.”

‘Errors’ made

After 30 years of kicking against the establishment, the veteran Lopez Obrador, a 65-year-old former mayor of Mexico City, claimed the presidency with a promise to clean up government, cut poverty and tame Mexico’s drug cartels.

Aiming to almost double economic growth to around 4 percent, Lopez Obrador wants to revive Pemex, increase pensions and spur development in the poorer south to contain illegal immigration that has strained ties with U.S. President Donald Trump.

Lopez Obrador says rooting out corruption will free up billions of dollars, while he intends to save more with pay cuts for civil servants. However, critics say the cuts could affect the quality of officials in his new administration.

Johannes Hauser, managing director of the German chamber of commerce in Mexico, told Reuters the association’s annual survey of firms, currently underway, was upbeat on Mexico.

Still, initial results suggested companies were not quite as eager to invest or create new jobs as they were a year ago. And the airport cancellation had been a shock, he said.

During their campaign outreach, some of Lopez Obrador’s advisers sought to play down the airport’s importance to markets, while others suggested it was likely to be completed.

Without providing evidence, Lopez Obrador said the project — which has been under construction since 2015 — was tainted by corruption. But more than once, Lopez Obrador had raised the possibility of turning its completion into a private concession.

Incoming Finance Minister Carlos Urzua, whose team sat down with financial heavyweights such as Bank of America, BlackRock, Credit Suisse and Morgan Stanley, told Reuters in April that foreign investors were “not very worried” about the airport.

Now, the scrapping of the hub has raised the prospect of a messy legal dispute with investors that could cost billions of dollars — as well as cloud interest in new projects.

Some members of Lopez Obrador’s incoming government privately express deep misgivings about the decision to cancel the airport, which was based on a referendum organized by his own party in which barely 1 percent of the electorate voted.

They felt the poll, which critics lambasted as opaque and open to abuse, undermined the credibility he had built up over the years he spent campaigning against corruption and vote-rigging.

Lopez Obrador’s taste for rule by referendum, and changes to laws governing everything from banking to mining and pension funds that have been proposed by his National Regeneration Movement and the party’s allies in Congress, have further curdled sentiment.

“I’ve moved from being cautiously optimistic after the election, to being quite pessimistic now,” said Andres Rozental, a former deputy foreign minister of Mexico. “He’s not building on what he got. He’s destroying little by little what he got.”

Facing questions about the airport controversy from a panel of prominent Mexican journalists this month, Lopez Obrador was unrepentant about the referendum, saying that “errors” made were blown out of proportion by adversaries trying to hurt him.

“What I regard as most important in my life is my honesty,” he said. “We are not creating a dictatorship,” he added, repeating what is a frequent aside in his public pronouncements.

Nevertheless, Arturo Herrera, an incoming deputy finance minister, conceded this week that the transition had tested the next government, which must present its first budget by mid-December.

“What we’re all learning is that we need to be extremely careful,” he told Mexican television.

Indian Politicians Spar Over Dodgy Economic Data as Election Nears

It may be the world’s sixth largest, but most other things about India’s economy are up for debate.

The ruling Bharatiya Janata Party (BJP) is under fire for the release of new historical GDP figures that significantly downgraded growth during the years the opposition Congress party was in power, replacing old government estimates and those prepared by an independent committee.

The figures, released by the government’s Central Statistics Office (CSO), showed growth in the 10 years of Congress rule to 2014 averaged 6.7 percent, below an average of 7.4 percent under the current government. A previous government estimate had growth under Congress at 7.8 percent.

P. Chidambaram, a former Congress finance minister, called the release “a joke”. In response India’s current finance minister, the BJP’s Arun Jaitley, said the CSO was a credible organization.

The fallout comes at a critical time for Prime Minister Narendra Modi.

India’s economy grew a weaker-than-expected 7.1 percent in the July-September quarter, from a more than two-year high of 8.2 percent in the previous quarter, government data showed on Friday.

Modi faces a general election next year, when the performance of the economy under his pro-business administration compared with the Congress era is likely to dominate campaigning.

The spat has also alarmed India’s top statisticians, who have long faced the difficult task of estimating growth and unemployment in an economy with hundreds of millions of informal workers, and dominated its financial press and political cartoons in recent days.

“The entire episode threatens to bring disrepute to India’s statistical services,” said an editorial in Mint, one of the country’s leading business newspapers, on Friday.

A joke widely circulated on WhatsApp said the government would soon be reinterpreting the last cricket World Cup, in which India crashed out in the semi-finals, to say the country won based on a new methodology.

COMPETING INTERESTS

Unlike many major economies, India lacks an independent statistical body.

An organization called the National Statistics Commission (NSC) was formed in 2005 with that intention, though it is yet to be recognized as the official body for generating statistics.

Last year the NSC set up a committee, chaired by economist Sudipto Mundle, to come up with a new set of historical GDP figures.

Its report, published in July, showed growth averaged 8.1 percent in the decade before the BJP took power.

After the figures were cheered by the Congress, the government issued a clarification saying the report “had not yet been finalised and various alternative methods are being explored”. Shortly after, the report was pulled from the government’s website.

“The whole thing has unfortunately become very political,” said Mundle, on the battle between the two parties. “It is very troubling.”

Attempts to formalize the NSC’s role have been successively stonewalled by both Congress and the BJP, said N R Bhanumurthy, who sat on the committee chaired by Mundle.

“They have not shown much interest in making it independent from our government,” he said.

The debate over India’s true level of growth is the latest to frustrate economists looking to measure the performance of the country of 1.3 billion people.

India has not published its official employment survey since 2015, while a smaller quarterly survey on companies employing more than 10 workers has not been released since March while the government comes up with new methodology.

India’s large informal sector made calculating employment “almost impossible”, Bhanumurthy said, leading to a vacuum that was filled with competing political interests.

Indian Politicians Spar Over Dodgy Economic Data as Election Nears

It may be the world’s sixth largest, but most other things about India’s economy are up for debate.

The ruling Bharatiya Janata Party (BJP) is under fire for the release of new historical GDP figures that significantly downgraded growth during the years the opposition Congress party was in power, replacing old government estimates and those prepared by an independent committee.

The figures, released by the government’s Central Statistics Office (CSO), showed growth in the 10 years of Congress rule to 2014 averaged 6.7 percent, below an average of 7.4 percent under the current government. A previous government estimate had growth under Congress at 7.8 percent.

P. Chidambaram, a former Congress finance minister, called the release “a joke”. In response India’s current finance minister, the BJP’s Arun Jaitley, said the CSO was a credible organization.

The fallout comes at a critical time for Prime Minister Narendra Modi.

India’s economy grew a weaker-than-expected 7.1 percent in the July-September quarter, from a more than two-year high of 8.2 percent in the previous quarter, government data showed on Friday.

Modi faces a general election next year, when the performance of the economy under his pro-business administration compared with the Congress era is likely to dominate campaigning.

The spat has also alarmed India’s top statisticians, who have long faced the difficult task of estimating growth and unemployment in an economy with hundreds of millions of informal workers, and dominated its financial press and political cartoons in recent days.

“The entire episode threatens to bring disrepute to India’s statistical services,” said an editorial in Mint, one of the country’s leading business newspapers, on Friday.

A joke widely circulated on WhatsApp said the government would soon be reinterpreting the last cricket World Cup, in which India crashed out in the semi-finals, to say the country won based on a new methodology.

COMPETING INTERESTS

Unlike many major economies, India lacks an independent statistical body.

An organization called the National Statistics Commission (NSC) was formed in 2005 with that intention, though it is yet to be recognized as the official body for generating statistics.

Last year the NSC set up a committee, chaired by economist Sudipto Mundle, to come up with a new set of historical GDP figures.

Its report, published in July, showed growth averaged 8.1 percent in the decade before the BJP took power.

After the figures were cheered by the Congress, the government issued a clarification saying the report “had not yet been finalised and various alternative methods are being explored”. Shortly after, the report was pulled from the government’s website.

“The whole thing has unfortunately become very political,” said Mundle, on the battle between the two parties. “It is very troubling.”

Attempts to formalize the NSC’s role have been successively stonewalled by both Congress and the BJP, said N R Bhanumurthy, who sat on the committee chaired by Mundle.

“They have not shown much interest in making it independent from our government,” he said.

The debate over India’s true level of growth is the latest to frustrate economists looking to measure the performance of the country of 1.3 billion people.

India has not published its official employment survey since 2015, while a smaller quarterly survey on companies employing more than 10 workers has not been released since March while the government comes up with new methodology.

India’s large informal sector made calculating employment “almost impossible”, Bhanumurthy said, leading to a vacuum that was filled with competing political interests.

Washington’s New Power Standoff – Trump, Pelosi

They haven’t spoken in days, not since President Donald Trump called to congratulate Nancy Pelosi on Democrats’ election night win.

But they don’t really need to. Trump and Pelosi go way back, from the time she first showed up at Trump Tower fundraising for the Democrats long before he would become president or she the House speaker. Two big-name heirs to big-city honchos — Trump and Pelosi each had fathers who were political power players in their home towns — they’ve rubbed elbows on the Manhattan social scene for years.

And despite daily barbs in Washington, he’s always “Mr. President” to her, and she’s one prominent politician he has not labeled with a derisive nickname.

Not quite friends, nor enemies, theirs is perhaps the most important relationship in Washington. If anything is to come of the new era of divided government, with a Republican president and Democratic control of the House, it will happen in the deal-making space between two of the country’s most polarizing politicians.

The day after their election night phone call, Trump and Pelosi did speak again, indirectly, across Pennsylvania Avenue.

“I really respected what Nancy said last night about bipartisanship and getting together and uniting,” Trump said in a press conference at the White House. “That’s what we should be doing.”

Pressed after his unusual public lobbying for Pelosi to become House speaker, Trump insisted he was sincere.

“A lot of people thought I was being sarcastic or I was kidding. I wasn’t. I think she deserves it,” he said. “I also believe that Nancy Pelosi and I could work together and get a lot of things done.”

Pelosi sent word back a few minutes later from her own press conference at the Capitol, which she delayed for nearly an hour as the president conducted his.

“Last night, I had a conversation with President Trump about how we could work together,” Pelosi said, noting that “building infrastructure” was one of the items they discussed.

“He talked about it during his campaign and really didn’t come through with it in his first two years in office,” she nudged. “I hope that we can do that because we want to create jobs from sea to shining sea.”

Despite all the campaign trail trash talk, both Trump and Pelosi have incentive to make some deals.

The president could use a domestic policy win heading into his own re-election in 2020, alongside his regular railing against illegal immigration, the “witch hunt” of the Russia investigation or other issues that emerge from his tweets.

Democrats, too, need to show Americans they can do more than resist the Trump White House. It’s no surprise that two of the top Democratic priorities in the new Congress, infrastructure investment and lowering health care costs, dovetail with promises Trump made to voters, but has not yet fulfilled.

“I do think there’s opportunities to pass legislation,” said former White House legislative director Marc Short.

Trump has long viewed Pelosi as both a foil and a possible partner, and she sees in him the one who can sign legislation into law.

The president has told confidants that he respects Pelosi’s deal-making prowess and her ability to hang on to power in the face of a series of challenges from the left wing of the party, according to four White House officials and Republicans close to the White House. The officials were not authorized to publicly discuss private conversations and requested anonymity.

He told one ally this month that he respected Pelosi “as a fighter” and that he viewed her as someone with whom he could negotiate.

“The president respects her,” said Short.

Short described the interaction between Pelosi and Trump during a 2017 meeting with other congressional leaders at the White House to prevent a government shutdown. “They were throwing pros and cons back at each other,” he said.

“The question I can’t answer is to what extent will Democrats give Pelosi political bandwidth” to strike deals, Short said. He pointed to potential areas of agreement like infrastructure, drug prices and prison reform.

But part of Trump’s push for Pelosi to return to power was more nakedly political. Pelosi has long been a popular Republican target, spurring countless fundraising efforts and attack ads. And Trump has told advisers that, if needed, he would make her the face of the opposition in Democratic party until the 2020 presidential field sorts itself out.

Pelosi’s name draws some of the biggest jeers at his rallies and he believes that “she could be Hillary” in terms of a Clinton-like figure to rally Republicans against, according to one of the advisers familiar with the president’s private conversations.

At the same time, Trump has not publicly branded Pelosi with a mocking nickname. She’s no “Cryin’” Chuck Schumer, as he calls the top Senate Democrat, or “Little” Adam Schiff at the Intelligence Committee or “Low IQ” Rep. Maxine Waters of California, who will chair the Financial Services Committee.

On whether Trump likes Pelosi as ally or adversary, Short said, “I don’t think those are mutually exclusive.”

Pelosi, perhaps more than her Republican counterparts — outgoing Speaker Paul Ryan or Senate Majority Leader Mitch McConnell — became an early observer, and adapter, to the Trump style of governing.

When Trump and Democrats were trying to broker an immigration deal in September 2017, she suggested he could tweet his assurances to the young Dreamers. And he did.

Around the same time when Trump and congressional leaders convened at the White House to avoid a federal government shutdown, Republicans and Trump’s own Cabinet team pressed for their preferred solution. But Pelosi kept asking a simple question: How many Republican votes could they bring to the table? When it was clear they could not bring enough for passage, Trump intervened and agreed with Democrats “Chuck and Nancy,” as he came to call them.

Votes, Pelosi explained later, were the “currency of the realm.” Trump, as a businessman, she said, got it.

Pelosi is poised to become House speaker again if she wins her election in January. Asked this week how Trump might react to having a woman in power, Pelosi recalled the first time she held the office, when George W. Bush was president, in 2007.

Bush would call her “No. 3,” she said, a reference to the speaker’s spot in the presidential succession line, after the president and the vice president.

“He treated me and the office I hold with great respect,” she said. “I would expect nothing less than that from this President of the United States.”

Washington’s New Power Standoff – Trump, Pelosi

They haven’t spoken in days, not since President Donald Trump called to congratulate Nancy Pelosi on Democrats’ election night win.

But they don’t really need to. Trump and Pelosi go way back, from the time she first showed up at Trump Tower fundraising for the Democrats long before he would become president or she the House speaker. Two big-name heirs to big-city honchos — Trump and Pelosi each had fathers who were political power players in their home towns — they’ve rubbed elbows on the Manhattan social scene for years.

And despite daily barbs in Washington, he’s always “Mr. President” to her, and she’s one prominent politician he has not labeled with a derisive nickname.

Not quite friends, nor enemies, theirs is perhaps the most important relationship in Washington. If anything is to come of the new era of divided government, with a Republican president and Democratic control of the House, it will happen in the deal-making space between two of the country’s most polarizing politicians.

The day after their election night phone call, Trump and Pelosi did speak again, indirectly, across Pennsylvania Avenue.

“I really respected what Nancy said last night about bipartisanship and getting together and uniting,” Trump said in a press conference at the White House. “That’s what we should be doing.”

Pressed after his unusual public lobbying for Pelosi to become House speaker, Trump insisted he was sincere.

“A lot of people thought I was being sarcastic or I was kidding. I wasn’t. I think she deserves it,” he said. “I also believe that Nancy Pelosi and I could work together and get a lot of things done.”

Pelosi sent word back a few minutes later from her own press conference at the Capitol, which she delayed for nearly an hour as the president conducted his.

“Last night, I had a conversation with President Trump about how we could work together,” Pelosi said, noting that “building infrastructure” was one of the items they discussed.

“He talked about it during his campaign and really didn’t come through with it in his first two years in office,” she nudged. “I hope that we can do that because we want to create jobs from sea to shining sea.”

Despite all the campaign trail trash talk, both Trump and Pelosi have incentive to make some deals.

The president could use a domestic policy win heading into his own re-election in 2020, alongside his regular railing against illegal immigration, the “witch hunt” of the Russia investigation or other issues that emerge from his tweets.

Democrats, too, need to show Americans they can do more than resist the Trump White House. It’s no surprise that two of the top Democratic priorities in the new Congress, infrastructure investment and lowering health care costs, dovetail with promises Trump made to voters, but has not yet fulfilled.

“I do think there’s opportunities to pass legislation,” said former White House legislative director Marc Short.

Trump has long viewed Pelosi as both a foil and a possible partner, and she sees in him the one who can sign legislation into law.

The president has told confidants that he respects Pelosi’s deal-making prowess and her ability to hang on to power in the face of a series of challenges from the left wing of the party, according to four White House officials and Republicans close to the White House. The officials were not authorized to publicly discuss private conversations and requested anonymity.

He told one ally this month that he respected Pelosi “as a fighter” and that he viewed her as someone with whom he could negotiate.

“The president respects her,” said Short.

Short described the interaction between Pelosi and Trump during a 2017 meeting with other congressional leaders at the White House to prevent a government shutdown. “They were throwing pros and cons back at each other,” he said.

“The question I can’t answer is to what extent will Democrats give Pelosi political bandwidth” to strike deals, Short said. He pointed to potential areas of agreement like infrastructure, drug prices and prison reform.

But part of Trump’s push for Pelosi to return to power was more nakedly political. Pelosi has long been a popular Republican target, spurring countless fundraising efforts and attack ads. And Trump has told advisers that, if needed, he would make her the face of the opposition in Democratic party until the 2020 presidential field sorts itself out.

Pelosi’s name draws some of the biggest jeers at his rallies and he believes that “she could be Hillary” in terms of a Clinton-like figure to rally Republicans against, according to one of the advisers familiar with the president’s private conversations.

At the same time, Trump has not publicly branded Pelosi with a mocking nickname. She’s no “Cryin’” Chuck Schumer, as he calls the top Senate Democrat, or “Little” Adam Schiff at the Intelligence Committee or “Low IQ” Rep. Maxine Waters of California, who will chair the Financial Services Committee.

On whether Trump likes Pelosi as ally or adversary, Short said, “I don’t think those are mutually exclusive.”

Pelosi, perhaps more than her Republican counterparts — outgoing Speaker Paul Ryan or Senate Majority Leader Mitch McConnell — became an early observer, and adapter, to the Trump style of governing.

When Trump and Democrats were trying to broker an immigration deal in September 2017, she suggested he could tweet his assurances to the young Dreamers. And he did.

Around the same time when Trump and congressional leaders convened at the White House to avoid a federal government shutdown, Republicans and Trump’s own Cabinet team pressed for their preferred solution. But Pelosi kept asking a simple question: How many Republican votes could they bring to the table? When it was clear they could not bring enough for passage, Trump intervened and agreed with Democrats “Chuck and Nancy,” as he came to call them.

Votes, Pelosi explained later, were the “currency of the realm.” Trump, as a businessman, she said, got it.

Pelosi is poised to become House speaker again if she wins her election in January. Asked this week how Trump might react to having a woman in power, Pelosi recalled the first time she held the office, when George W. Bush was president, in 2007.

Bush would call her “No. 3,” she said, a reference to the speaker’s spot in the presidential succession line, after the president and the vice president.

“He treated me and the office I hold with great respect,” she said. “I would expect nothing less than that from this President of the United States.”

Cohen Guilty Plea Signals New Turn in Russia Probe

The investigation into Russia’s role in the 2016 U.S. presidential election took a potentially significant turn Thursday when President Donald Trump’s former personal lawyer, Michael Cohen, entered a guilty plea at a federal court in New York. Cohen admitted that he lied to Congress about Trump’s interest in a real estate project in Russia while he was running for president. VOA National correspondent Jim Malone has more from Washington.

Cohen Guilty Plea Signals New Turn in Russia Probe

The investigation into Russia’s role in the 2016 U.S. presidential election took a potentially significant turn Thursday when President Donald Trump’s former personal lawyer, Michael Cohen, entered a guilty plea at a federal court in New York. Cohen admitted that he lied to Congress about Trump’s interest in a real estate project in Russia while he was running for president. VOA National correspondent Jim Malone has more from Washington.

Trump’s Ex-Lawyer Pleads Guilty to New Charge 

Reporters traveling with President Donald Trump to the G-20 Summit in Argentina say he is in a bad mood and distracted after his former lawyer, Michael Cohen, admitted lying to Congress about a Trump real estate deal in Russia.

Cohen pleaded guilty in federal court in New York Thursday, admitting he misled lawmakers about the timing of talks with Russia for building a Trump tower in Moscow.

Special counsel Robert Mueller, who is probing possible collusion between the Trump campaign and Russian election meddling, brought the charges against Cohen. Cohen is already facing prison time for bank fraud and activities related to his taxicab business.

WATCH: Cohen Guilty Plea Signals New Turn in Russia Probe

 

What Cohen said to Congress

Cohen told the Senate Intelligence Committee last year that negotiations between the Trump organization and Russia to build the tower in Moscow ended in January 2016. The talks actually continued as late as June of that year, after Trump clinched the Republican presidential nomination.

Cohen also admitted to lying to Congress about other details of the Moscow project, including his own contacts with Russian officials and that he never asked Trump to fly to Moscow himself.

According to the charging documents, Cohen’s close friend and onetime Trump employee Felix Sater talked about giving Russian President Vladimir Putin a $50 million penthouse in the Trump tower as a ploy to get Russian oligarchs to pay top dollar to also live there.

Cohen told the judge he lied to Congress because he wanted to be consistent with Trump’s “political messaging” and out of his desire “to be loyal” to Trump.

​Trump tower in Moscow

Trump’s plans to build a hotel-retail-apartment complex in Moscow go back more than 20 years.

The president insisted throughout the campaign that he had nothing to do with Russia and had no connections to the Kremlin.

But earlier Thursday, while standing outside the White House, Trump told reporters he had been “thinking about building a building.”

“There would be nothing wrong if I did do it. I was running my business while I was campaigning. There was a good chance that I wouldn’t have won, in which case I would have gone back into the business and why should I lose lots of opportunities?” he asked reporters.

Trump landed in Buenos Aires late Thursday for the Group of 20, a meeting of leaders from industrial and emerging-market nations.

Cohen had once said he would “take a bullet” for Trump.

The president now blasts him as a “weak person” who lied to Mueller to get a lighter prison sentence for his financial crimes.

Trump also stressed that his Moscow deal was never a secret and that he abandoned the idea because he wanted to focus on running for president.

The talks between Russia and Cohen for a Trump tower appear to be unrelated to the question of whether the Trump campaign colluded with Russia to meddle in the 2016 election.

But the negotiations over the deal were going on at the same time Russia was interfering in the election by hacking Democratic party e-mails.

The top Democrat on the Senate Intelligence Committee, Mark Warner, said Cohen’s plea is another example of Trump allies being untruthful about Russia, asking reporters, “What are they covering up for?”

Democratic Congressman Adam Schiff, in line to become chairman of the House Intelligence Committee next year, said Cohen’s guilty plea clearly demonstrates “the president’s own denials during the campaign were false or misleading.”

Trump has tried to distance himself from Cohen, despite their long relationship. Cohen testified in August that Trump ordered him to illegally arrange payments before the 2016 election to buy the silence of two women who claim they had affairs with Trump, something Trump has denied.

Rosenstein Calls for Tech Firms to Work With Law Enforcement

U.S. Deputy Attorney General Rod Rosenstein called on social media companies and technology firms Thursday to work with law enforcement to protect the public from cybercriminals.  

 

Speaking at a symposium on online crime, Rosenstein said that “social media platforms provide unprecedented opportunities for the free exchange of ideas. But many users do not understand that the platforms allow malicious actors, including foreign government agents, to deceive them by launching vast influence operations.” 

 

He said it was up to the companies to “place security on the same footing as novelty and convenience, and design technology accordingly.”  

 

He warned that if the technology sector failed to do so, government would have to step in.  

 

“I think the companies now do understand if they do not take it upon themselves to self-regulate — which is essentially the theme of my talk today — they will face the potential of government regulation,” he said. 

Extortion scheme

 

Rosenstein’s remarks came a day after the Justice Department charged two Iranian hackers in connection with a multimillion-dollar cybercrime and extortion scheme that targeted government agencies, cities and businesses. 

 

Rosenstein said many tech companies are willing to work with law enforcement and to prevent the use of their platforms to spread disinformation. 

 

But he said that “some technology experts castigate colleagues who engage with law enforcement to address encryption and similar challenges. Just because people are quick to criticize you does not mean that you are doing the wrong thing.” 

 

U.S. law enforcement officials have long been pushing tech companies to make it easier for them to access information on private devices such as cellphones and social media accounts. But most firms have resisted, citing privacy of the users.  

 

Rosenstein said data encryption practices were a “significant detriment to public safety.”  

 

“Improvements in the ability to investigate crime and hold perpetrators accountable must match the pace at which technology is making crimes easier to commit and more destructive,” Rosenstein said. 

Rosenstein Calls for Tech Firms to Work With Law Enforcement

U.S. Deputy Attorney General Rod Rosenstein called on social media companies and technology firms Thursday to work with law enforcement to protect the public from cybercriminals.  

 

Speaking at a symposium on online crime, Rosenstein said that “social media platforms provide unprecedented opportunities for the free exchange of ideas. But many users do not understand that the platforms allow malicious actors, including foreign government agents, to deceive them by launching vast influence operations.” 

 

He said it was up to the companies to “place security on the same footing as novelty and convenience, and design technology accordingly.”  

 

He warned that if the technology sector failed to do so, government would have to step in.  

 

“I think the companies now do understand if they do not take it upon themselves to self-regulate — which is essentially the theme of my talk today — they will face the potential of government regulation,” he said. 

Extortion scheme

 

Rosenstein’s remarks came a day after the Justice Department charged two Iranian hackers in connection with a multimillion-dollar cybercrime and extortion scheme that targeted government agencies, cities and businesses. 

 

Rosenstein said many tech companies are willing to work with law enforcement and to prevent the use of their platforms to spread disinformation. 

 

But he said that “some technology experts castigate colleagues who engage with law enforcement to address encryption and similar challenges. Just because people are quick to criticize you does not mean that you are doing the wrong thing.” 

 

U.S. law enforcement officials have long been pushing tech companies to make it easier for them to access information on private devices such as cellphones and social media accounts. But most firms have resisted, citing privacy of the users.  

 

Rosenstein said data encryption practices were a “significant detriment to public safety.”  

 

“Improvements in the ability to investigate crime and hold perpetrators accountable must match the pace at which technology is making crimes easier to commit and more destructive,” Rosenstein said. 

52% of Americans Would Be ‘Very Comfortable’ with Woman President

Several Democratic women, including Senators Kamala Harris (California), Elizabeth Warren (Massachusetts), Kirsten Gillibrand (New York) and possibly even 2016 nominee Hillary Clinton, are potential presidential contenders in 2020, but it could be more of an uphill battle for them than for their male counterparts.

That’s because just over half of Americans are totally comfortable with the idea of a woman president, according to a new report by the consulting firm Kantar Public. 

The report finds that while 63 percent of Americans are perfectly fine with the idea of a woman heading a major corporation, just 52 percent are as comfortable with a scenario featuring a female president.

Men are more inclined to judge a person’s leadership suitability based on gender, while women are more likely to think men and women are equally suited to leadership, according to the report, which finds that 60 percent of women would be OK with one of their own as commander-in-chief, compared to just 45 percent of men.

Ten thousand people in seven developed countries – members of the G7 – were surveyed for the study. In addition to the United States, members of the G7 include Canada, France, Germany, Italy, Japan, and the United Kingdom. England and Germany currently have a woman leading their governments.

Judicial Nominations, Congressional Probes Likely to Flourish in 2019

A bolstered Republican Senate majority will facilitate U.S. President Donald Trump’s push to remake the federal judiciary even as Congress as a whole returns to political gridlock beginning next year, observers say.

 

While Democrats won control of the House of Representatives in midterm elections earlier this month, Republicans boosted their Senate majority from 51 to 54 seats in the 100-member chamber, with only one contest, in Republican-leaning Mississippi, yet to be decided.

 

Beginning in January, Democrats will be able to use their House majority to block any legislation to which they object. But in one critical area, judicial nominees, Republicans will have a stronger hand to confirm Trump’s picks for lifetime appointments to the federal bench and make the judiciary far more ideologically conservative for years, perhaps decades, to come.

 

“While most things the Senate does need to get 60 votes to overcome a filibuster, nominations only need 51 votes,” Molly Reynolds, a governance studies fellow at Washington‘s Brookings Institution, said. “When you have 53 votes (Republicans have just gained another Senate seat in a Mississippi runoff election), that gives you more of a margin for error.”

 

‘Judge factory’

“The Senate has become a judge factory,” American Enterprise Institute resident scholar Norman Ornstein said. “[Republican Majority Leader Mitch] McConnell is bringing up a substantial number of judges. With 53 [Republican senators], you can withstand one, two, or even three defections (Republican ‘no’ votes), and still get it done. So for McConnell, this is a substantial amount of breathing room.”

Lawmakers have signaled they are coming to terms with a Congress that will be politically divided and require bipartisan cooperation to send legislation to the president’s desk.

 

“Marshaling resources against the opioid crisis, reforming Dodd Frank [financial regulations], funding our armed forces, taking care of our veterans…are some of the things we have done in this Congress on a bipartisan basis,” McConnell, who represents Kentucky, recently tweeted.

 

In an opinion piece for Fox News, the majority leader wrote, “Looking ahead to the coming year, there will be no shortage of opportunities to continue this impressive record of cooperation across the aisle and across the Capitol.”

 

‘Check on Donald Trump’

For their part, Democrats are not dismissing bipartisanship, but are making clear they intend to flex their newfound political muscle.

 

“There is now a check on Donald Trump, and that is great news for America,” Senate Democratic Minority Leader Chuck Schumer of New York said at a post-election news conference.

 

On Twitter, Schumer wrote, “We have tremendous unity in our caucus…Democrats are going to be relentlessly focused on the issues that matter most to the American people.”

 

“Divided control of the two houses of Congress is not a recipe for [producing] major legislation over the next two years,” Reynolds said. “There will be some things they work together on, perhaps infrastructure, perhaps prescription drug prices. But by and large, I expect the two chambers to be operating on different playing fields.”

 

The year 2010 saw the mirror image of the 2018 midterm election results. In 2010, Republicans won control of the House of Representatives and used it as a check on then-president Barack Obama, a Democrat, as well as what was then a Democratically-led Senate. Legislative gridlock and a series of partial U.S. government shutdowns ensued beginning in 2011.

“Just as in 2011 and 2012, we’re going to see almost no progress on the major issues facing the country, with one possible exception, [improving U.S.] infrastructure, where the interests of House Democrats and the president may come together,” Ornstein said.

 

Investigations expected

But differences between 2019 and 2011 are likely, given Democrats’ stated intention to investigate the Trump administration.

 

“I expect Democrats to spend most of their time on oversight and engaging in a wide range of investigations, some of which will target President Trump personally as well as the conduct of the executive branch over the last two years,” Reynolds said.

 

“This time around, Democrats in the House are not going to instigate a [government] shutdown. We may get a shutdown in the coming months but it will come from Donald Trump insisting on full funding for his [border] wall,” Ornstein said, adding. “[Congressional] investigations are going to bring a great deal of tension.”

 

Trump remains combative on the ongoing Russia probe and is warning of consequences if House Democrats open the investigative floodgates, recently tweeting, “The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!”

 

Changes in party control of one or both houses of Congress occurred in 2007, 2011, 2015, and will occur again in 2019. Throughout it all, Congress has suffered low approval ratings from the American people, a situation that is unlikely to improve anytime soon.

 

“We’re going to have sharper partisan edges in the body, a lot of partisan and ideological combat, tribal combat, in the coming years,” Ornstein said. “It’s hard for me to imagine that Americans are going to feel better about things.”

 

“Gridlock is likely to keep most Americans not terribly happy with how Washington works,” Reynolds said.