Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Scientists Feel Chill of Crackdown on Fetal Tissue Research

To save babies from brain-damaging birth defects, University of Pittsburgh scientist Carolyn Coyne studies placentas from fetuses that otherwise would be discarded — and she’s worried this kind of research is headed for the chopping block.

The Trump administration is cracking down on fetal tissue research , with new hurdles for government-funded scientists around the country who call the special cells vital for fighting a range of health threats. Already, the administration has shut down one university’s work using fetal tissue to test HIV treatments, and is ending other fetal tissue research at the National Institutes of Health.<

“I knew this was something that’s going to trickle down to the rest of us,” said Coyne. She uses the placenta, which people may not think of as fetal tissue but technically is classified as such because the fetus produced it, to study how viruses such as Zika get past that protective barrier early in pregnancy.

“It seems to me what we’re moving toward is a ban,” she added. If so, when it comes to unraveling what happens in pregnancy and fetal development, “we’re going to stay ignorant to a lot of things.”

Different types of tissue left over from elective abortions have been used in scientific research for decades, and the work has been credited with leading to lifesaving vaccines and other advances. Under orders from President Donald Trump, the Health and Human Services Department abruptly announced on Wednesday the new restrictions on taxpayer-funded research, but not privately funded work.

Aside from the cancellation of an HIV-related project at the University of California, San Francisco, university-led projects that are funded by the NIH — estimated to be fewer than 200 — aren’t affected right away.

But as researchers seek to renew their funding or propose new studies, HHS said it will have to pass an extra layer of review, beyond today’s strict scientific scrutiny. Each project will have a federal ethics board appointed to recommend whether NIH should grant the money.

HHS hasn’t offered details but under the law authorizing the review process, that board must include not just biomedical experts but a theologian, and the nation’s health secretary can overrule its advice.

“I predict over time we will see a slow and steady elimination of federal funding for research that uses fetal tissue, regardless of how necessary it is,” said University of Wisconsin law professor Alta Charo, a nationally recognized bioethics expert.

Necessity is the crux of a fierce debate between abortion foes and scientists about whether there are alternatives to fetal tissue for research.

Zika offers a glimpse at the difficulty. Somehow, the Zika virus can sneak from the mother’s bloodstream across the placenta, which protects and nourishes the fetus, and target the fetus’ brain. It’s something researchers hope to learn to block.

Studying the placentas of small animals or even monkeys isn’t a substitute because they differ from the human organ, said Emory University researcher Mehul Suthar. For example, the specific type of placental cell where Zika can lurk in humans isn’t thought to be present in mouse placentas.

And because the placenta continually changes as the fetus that created it grows, first-trimester tissue may show a very different vulnerability than a placenta that’s expelled during full-term birth, when it’s no longer defined as fetal tissue but as medical waste.

Suthar recently submitted a new grant application to study first- and second-trimester placental tissue, and is worried about its fate under the still uncertain ethics provision.

It “sounds a bit murky as to what the impact could be,” he said. It could be small, “or it could be an outright ban on what we’re doing.”

Anti-abortion groups argue there are alternatives, such as stem cells, growing organ-like clumps of cells in lab dishes, or using tissue taken from newborns as they have heart surgery.

Indeed, NIH is funding a $20 million program to research alternatives to fetal tissue and to prove whether they work as well.

“Taxpayer funding ought to go to promote alternatives that are already being used in the production of treatments, vaccines and medicines, and to expand approaches that do not depend on the destruction of unborn children,” said Mallory Quigley of the Susan B. Anthony List, which works to elect anti-abortion candidates to public office.

But dozens of medical and science organizations have told HHS there is no substitute for fetal tissue in studying certain — not all — health disorders, such as HIV, Zika, Alzheimer’s, Parkinson’s, spinal cord injury, and a variety of eye diseases.

To Pittsburgh’s Coyne, part of the political debate is a “completely unsubstantiated belief that not allowing research and science is going to prevent or stop abortions, which is not the case.”

Medical research using fetal tissue won’t stop but will move to other countries, said Charo, who advised the Obama administration. The United Kingdom, Australia, Singapore and China are among the countries using fetal tissue to seek breakthroughs.

“Other countries work with this in a regulated fashion and they will continue to outstrip us,” she said. “We have allowed patients’ interests to become collateral damage in the abortion wars.”

Warren to Activists: ‘Time for Small Ideas Is Over’

Sen. Elizabeth Warren electrified California Democrats on Saturday with a pledge for bold action, matching if not outshining enthusiasm for the state’s own Sen. Kamala Harris to kick off a day when more than a dozen presidential candidates planned to make their cases to thousands of activists in the nation’s largest liberal stronghold. 

 

Some say if we all just calm down, the Republicans will come to their senses,'' Warren said in bringing the crowd to its feet with a thinly veiled shot at former Vice President Joe Biden, who has expressed hope the GOP will havean epiphany” after President Donald Trump is gone. “But our country is in a crisis. The time for small ideas is over.” 

  

Biden was the only major candidate not attending the three-day gathering in San Francisco, opting instead to campaign in Ohio. 

 

California has shifted its 2020 primary earlier on the calendar, to March 3, part of the Super Tuesday collection of contests, in hopes of giving the state more sway in choosing the party’s nominee. California will offer the largest delegate haul, but it is a notoriously difficult state to campaign in, given its massive size and expensive media markets. 

Harris, with a built-in advantage, looked to make a show of force in Saturday’s prime speaking slot to kick off addresses from presidential hopefuls, the day’s main event. She played up her deep connection to California voters, having won statewide office three times, once to the U.S. Senate and twice as the state’s attorney general, and also having been elected as San Francisco’s district attorney. 

 

Harris, too, sparked a standing ovation when she declared, “We need to begin impeachment proceedings and we need a new commander in chief!” 

 

Earlier, House Speaker Nancy Pelosi, also a Californian, avoided mentioning impeachment in her remarks but said the House would hold Trump accountable.  

Former Texas Rep. Beto O’Rourke addressed the morning session of the convention, slipping seamlessly between Spanish and English, a key move in a state with a large Hispanic population. He praised California Democrats for their massive turnout in the 2018 midterms, when the party flipped seven U.S. House seats held for years by Republicans, and noted that his unsuccessful Senate bid drew record Democratic turnout as well.  

  

You, California Democrats, have offered the rest of the country an example,'' he said.And in Texas we were right there with you.”  

  

Vermont Sen. Bernie Sanders is expecting to build heavily on the California organization he built in the last presidential campaign. He wasn’t scheduled to address the full crowd until Sunday, but he greeted union workers at a Saturday morning breakfast and received an enthusiastic reception Friday night at a meeting of the Chicano-Latino caucus, which endorsed him during the close 2016 contest with Hillary Clinton. 

“This time we are going to win California,” he declared.  

  

Other candidates attending the gathering: New Jersey Sen. Cory Booker; New York Sen. Kirsten Gillibrand; Hawaii Rep. Tulsi Gabbard; South Bend, Ind., Mayor Pete Buttigieg; California Rep. Eric Swalwell; Minnesota Sen. Amy Klobuchar; former Colorado Gov. John Hickenlooper; Washington Gov. Jay Inslee; former Obama housing chief Julian Castro; and former Maryland Rep. John Delaney.

Trade Experts Unruffled About Rare Earth Minerals Supply

Rising trade tensions between the U.S. and China have sparked worries about the 17 exotic-sounding rare earth minerals needed for high-tech products like robotics, drones and electric cars. 

 

China recently raised tariffs to 25% on rare earth exports to the U.S. and has threatened to halt exports altogether after the Trump administration raised tariffs on Chinese products and blacklisted telecommunications giant Huawei.  

  

With names like europium, scandium and ytterbium, the bulk of rare earth minerals are extracted from mines in China, where lower wages and lax environmental standards make production cheaper and easier.  

  

But trade experts say no one should panic over China’s threats to stop exporting the elements to the U.S. 

 

There is a U.S. rare minerals mine in California. And Australia, Myanmar, Russia and India are also top producers of the somewhat obscure minerals. Vietnam and Brazil both have huge rare earth reserves.  

  

The sky is not falling,'' said Mary B. Teagarden, a China specialist, professor and associate dean at the Thunderbird School of Global Management in Phoenix.There are alternatives.” 

 

Simon Lester, associate director of the center for trade policy studies at the Cato Institute think tank in Washington, agreed. “Over the short term, it could be a big disruption, but companies that want to stay in business will find a way,” he said.    

Although the U.S. is among the world’s top 10 countries for rare earths production, it’s also a major importer of the minerals, looking to China for 80% of what it buys from other countries, according to the U.S. Geological Survey. China last year produced 120,000 metric tons of rare earths, while the United States produced 15,000 metric tons.  

Mountain Pass Mine

 

The United States also depends on China to separate the minerals pulled from Mountain Pass Mine, the sole rare earths mine in the U.S., which was bought two years ago by the Chicago-based JHL Capital Group LLC .  

  

“We need to develop a U.S.-based supply chain so there is no possibility we can be threatened,” said Ryan S. Corbett, managing director of JHL Capital. 

 

The mine’s top products are neodymium and praseodymium, two elements that are used together to make the lightweight magnets that help power electric cars and wind turbines and are found in electronics such as laptop hard drives. 

 

Mountain Pass, located in San Bernardino County, Calif., was once the top supplier of the world’s rare earth minerals, but China began taking over the market in the 1990s and the U.S. mine stopped production in 2002.  

  

Mountain Pass later restarted production, only to close again amid a 2015 bankruptcy. Corbett said extraction resumed last year after JHL Capital purchased the site with QVT Financial LP of New York, which holds 30%, and Shenghe Resources Holding Co. Ltd. of China, a nonvoting shareholder with 9.9%.  

  

Since then, Mountain Pass has focused on achieving greater autonomy with a $1.7 billion separation system set to go online late next year that would allow it to skip sending rare earths ore to China for that step. 

 

China could hurt itself in the long run by cutting off the U.S., specialists said.  

  

David Merriman, a rare earths analyst for Roskill commodity research in London, said that during a similar trade flap with China in 2011, Japan began looking to other countries, including Australia, for the minerals needed to manufacture electronics.   

Australian rare earths production giant Lynas Corp. Ltd. this month announced a proposed deal with Blue Line Corp. of Texas for a separation facility at an industrial site in Hondo, Texas.  

Other deposits

  

There may be other options, too. Deposits of rare earths have been detected in other U.S. states, including Wyoming and Alaska, as well in several remote areas of Canada. The Interior Department is calling for more prospecting and mining of “critical minerals,” including on public lands currently considered off-limits, and even in oceans. 

 

We have to be more forward-thinking,'' said Alexander Gysi, an assistant professor in geology and geological engineering at the Colorado School of Mines in Golden.It would be better for the U.S. to have a greater range of sources for rare earths.”

Buttigieg’s High College Debt Draws Attention to Issue

Democratic presidential candidate Pete Buttigieg knows firsthand the burden of six-figure student loan debt. He and his husband, Chasten, are far from alone, though, and their personal college indebtedness is helping to keep the issue on the national stage. 

 

With loans totaling more than $130,000, they are among the 43 million people in the United States who owe federal student loan debt. 

 

The debtors are so numerous and the total debt so high — more than $1.447 trillion, according to federal statistics — that several of the Democratic candidates have made major policy proposals to address the crisis. Their ideas include wiping away debt, lowering interest rates, expanding programs that tie repayment terms to income, and making college free or debt-free. 

 

Student loan debt is often discussed as an issue that mostly affects millennials, but it cuts across age groups. Federal statistics show that about 7.8 million people age 50 and older owe a combined $291.9 billion in student loans. People age 35 to 49, a group that covers older millennials such as Buttigieg as well as Generation X, owe $548.4 billion. That group includes more than 14 million people.  

One of the most detailed plans to help solve the problem has come from Sen. Elizabeth Warren of Massachusetts, who says she would entirely erase student debt for 75% of borrowers while making public colleges and universities free. Her plan would be paid for by a tax on “ultramillionaires,” those households with a net worth of $50 million or more. Warren wants to cancel $50,000 in student loan debt for each borrower with a household income under $100,000 and would cancel smaller amounts for those who earn more.  

  

Sen. Bernie Sanders of Vermont has outlined a plan to make public universities tuition-free and says he wants to lower student loan rates and “substantially lower student debt.”  

  

Former Rep. Beto O’Rourke of Texas stops short of advocating for programs to cancel all debt, like Warren wants to do. Instead, he has suggested wiping away debt for people who go into jobs where there’s a manpower shortage, such as doctors in rural areas, but it’s not clear which professions would qualify. 

 

He also has said he wants to give Americans two years of free tuition at community colleges, make four-year state universities debt-free for those with low and modest incomes and allow borrowers to refinance student loans at lower interest rates.  

Julian Castro, housing secretary in the Obama administration, says he wants to eliminate tuition at public colleges and universities. He has issued a plan that would not require loan repayment until borrowers earn more than 250% of the federal poverty level, currently $25,750 for a family of four. It would cap monthly payments at 10% of their income after that.   

  

Sen. Kamala Harris of California has publicly called for debt-free college, wants to allow people to refinance their loans at a lower interest rate, base repayment on income and simplify financial aid applications to make it easier for needy students to apply.  

  

If elected, Buttigieg, the 37-year-old mayor of South Bend, Ind., would likely be the first president with student loan debt. Barack and Michelle Obama said they paid off their student loans a few years before he was elected to the U.S. Senate in 2006.  

  

Buttigieg often speaks about the experience that he and his husband have had with student loan debt. Buttigieg graduated from Harvard in 2004, then won a Rhodes scholarship and graduated from Oxford in 2007. The mayor previously told Vice that he got through school without much debt, but that Chasten racked up loans while getting bachelor’s and master’s degrees to become a teacher.  

  

In his financial disclosure filed with the Office of Government Ethics in mid-May, Buttigieg reported that he and his husband have between $110,000 and $265,000 in student loan debt. The report requires a range rather than a specific dollar amount. Chris Meagher, a campaign spokesman, said the exact amount is $131,296.  

Americans with student loans owe on average $33,000, so the Buttigiegs’ debt is on the high end. They are among the 2.8 million Americans who owe more than $100,000 in federal student loan debt. 

 

Meagher did not answer questions about whether the loans belonged to Buttigieg or his husband, or both. 

 

The disclosure statement shows that the couple has 20 loans outstanding, with interest rates ranging from 3.4 percent to 6.8 percent, on loans that were opened between 2009 and 2017. Fifteen of those accounts, more than $100,000 of the balance, were reported to be on an income-based repayment plan. 

 

Buttigieg has spoken about making it easier to refinance student loan debt. During a town hall hosted by Fox News, he discussed expanding the federal Pell Grant program and making it easier to pay off debt through public service. On his website, he called for middle- and low-income families to pay zero tuition'' at public colleges, or to attend themdebt free.”  

  

Buttigieg has also called for more support for students who enter public service, such as teaching. 

 

Seven 2020 presidential contenders have proposed legislation in the Senate to do that. The bill would simplify and expand a program that forgives federal loans for public service workers who make 120 monthly loan payments while working for a government agency or qualified nonprofit. Only about 1% of borrowers who applied to the program were approved. The candidates backing the legislation are Warren, Sanders, Harris, and Sens. Kirsten Gillibrand of New York, Amy Klobuchar of Minnesota, Cory Booker of New Jersey and Michael Bennet of Colorado.  

  

Former Vice President Joe Biden made a call for a similar simplification and expansion Tuesday in a speech in Houston before one of the nation’s largest teachers unions. 

G-20 Finance Leaders’ Goal: Adapt to Turmoil in Trade, Tech

Financial leaders of the Group of 20 gathered Saturday to brainstorm ways to adapt global finance to an age of trade turmoil and digital disruptions.

The central bank governors and other financial regulators meeting in this southern Japanese port city also flagged risks from upsets to the global economy as Beijing and Washington clash over trade and technology.

Asked if other financial leaders attending the meetings in Fukuoka were raising concerns over the impact on global markets and trade from President Donald Trump’s crusade against huge, chronic U.S. trade deficits, especially with China, U.S. Treasury Secretary Steven Mnuchin said no.

Trump and members of his administration contend that the ripple effects of the billions of dollars in tariffs imposed by Washington on Chinese exports over the past year are creating new business opportunities for other businesses in the U.S. and other countries.

But Mnuchin acknowledged that growth has been slowing in Europe, China and other regions.

“I’m hearing concerns if we continue on this path there could be issues. There will be winners and losers,” he said.

The G-20 officials were expected to express their support for adjusting monetary policy, for example by making borrowing cheaper through interest rate cuts, in a communique to be issued as meetings wrap up on Sunday.

Their official agenda on Saturday was focused on longer-term, more technical issues such as improving standards for corporate governance, policing cyber-currencies and reforming tax systems to ensure they are fair for both traditional and new, online-based industries.

Ensuring that governments capture a fair share of profits from the massive growth of businesses like Google and Amazon has grown in importance over the many years the G-20 finance chiefs have been debating the reforms aimed at preventing tax evasion and modernizing policies to match a financial landscape transformed by technology.

One aim is to prevent a “race to the bottom” by countries trying to lure companies by offering unsustainably and unfairly low tax rates as an incentive.

Mnuchin said he disagreed with details of some of the proposals but not with the need for action.

“Everyone, we are now facing a turning point,” Japanese Finance Minister Taro Aso told the group. “This could be the biggest reform of the long established international framework in over 100 years.”

Some European members of the G-20, especially, want to see minimum corporate tax rates for big multinationals. France and Britain have already enacted stop-gap tax systems for digital businesses, but they are not adequate, said French Finance Minister Bruno Le Maire.

“For the time being there is no fair taxation of this new economic model,” Le Maire said, adding that the hope is to have an agreement by the year’s end.

The issue is not confined to the wealthiest nations. Indonesia, a developing country of 260 million with more than 100 million internet users, is also struggling to keep up.

“The growth has been exponential but we cannot capture this growth in our GDP as well as in our tax revenue,” said Indonesian Finance Minister Mulyani Indrawati.

Mobile banking, big data, artificial intelligence and cloud computing are among many technologies that are expanding access to financial services for many people who in the past might not have even used banks.

But such innovations raise questions about protecting privacy and cybersecurity, Aso said.

“We need to stay vigilant against risks or challenges,” Aso said.

Japan, the world’s third-largest economy, is hosting the G-20 for the first time since it was founded in 1999. The venue for the annual financial meeting, Fukuoka, is a thriving regional hub and base for start-ups.

The G-20 groups include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.

With Mexico Deal Done, US Urges China to Resume Trade Talks

One down, still others to go. President Donald Trump claimed a victory after Washington and Mexico agreed on measures to stem the flow of Central American migrants into the United States.

Trump called off plans to impose a 5% tax on Mexican exports, and Treasury Secretary Steven Mnuchin, speaking to reporters Saturday in Fukuoka on the sidelines of a meeting of financial leaders of the Group of 20 major economies, urged China to follow suit and return to stalled negotiations.

Mnuchin said he planned to have a private conversation with the head of China’s central bank, Yi Gang. In a G-20 group meeting later in the day, the two were seen exchanging friendly remarks, but there were no fresh signs Beijing is ready to compromise in the dispute over trade and technology.

“From our perspective of where we are now, it is a result of them backtracking on significant commitments,” Mnuchin said. “I don’t think it’s a breakdown in trust or good or bad faith. … If they want to come back and complete the deal on the terms we were negotiating, that would be great.”

Mnuchin said he had no direct message to give to Yi, who has participated in the 11 rounds of talks so far on resolving the dispute between the world’s two largest economies over technology and trade.

He said there were no plans for trade talks in Washington or Beijing before Presidents Donald Trump and Xi Jinping are due to meet in Osaka for the G-20 summit on June 28-29.

“This will be a one-on-one with Gov. Yi to talk alone about the trade issues,” Mnuchin said. But he added, “I would expect the main progress will be at the G-20 meetings of the presidents.”

The Trump administration began slapping tariffs on imports of Chinese goods nearly a year ago, accusing Beijing of using predatory means to lend Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles. Those tactics, the U.S. contends, include hacking into U.S. companies’ computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms.

The deal with Mexico helps alleviate uncertainty over the deal Washington recently reached on revising the North American Free Trade Agreement. The new U.S.-Mexico-Canada deal has been heading toward a vote in Congress and might have been stymied by new tariffs. But the U.S. is still negotiating new trade deals with Japan after withdrawing from a Pacific Rim arrangement, the Obama-era proposed Trans-Pacific Partnership.

America’s huge trade deficit with China — a record $379 billion last year — is one factor driving Trump’s frustrations with Beijing.

The United States now is imposing 25% taxes on $250 billion in Chinese goods. Beijing has counterpunched by targeting $110 billion worth of American products, focusing on farm goods such as soybeans in a deliberate effort to inflict pain on Trump supporters in the U.S. heartland.

The U.S. side has been preparing to expand retaliatory tariff hikes of 25% on another $300 billion of Chinese products, and Mnuchin indicated it was prepared to take that step if negotiations with Beijing fail. But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

“As the president has said, if we can get the right agreement, that’s great. If we can’t, we will proceed with tariffs,” he said.

 

US, China Talk Trade at G-20 Finance Meeting

U.S. Treasury Secretary Steven Mnuchin said Saturday that he plans to speak privately with China’s central bank governor about trade on the sidelines of annual Group of 20 finance talks in southern Japan, but has no direct message to give him.

Mnuchin and Yi Gang, chairman of the People’s Bank of China, are to hold routine talks on various issues and then break away for their discussion on trade. Yi, he noted, has participated in now-stalled talks between Washington and Beijing over the trade and technology dispute between the two largest economies.

“This will be a one-on-one with Gov. Yi to talk alone about the trade issues,” Mnuchin told reporters in the Japanese city of Fukuoka. But he added, “I would expect the main progress will be at the G-20 meetings of the presidents.”

He said there were no plans for trade talks in Washington or Beijing before Presidents Donald Trump and Xi Jinping are to meet in Osaka for the G-20 summit June 28-29.

​Trump tariffs

The Trump administration began slapping tariffs on imports of Chinese goods nearly a year ago, accusing Beijing of using predatory means to lend Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles. Those tactics, the U.S. contends, include hacking into U.S. companies’ computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms.

Trump has also complained repeatedly about America’s huge trade deficit with China, a record $379 billion last year.

The United States now is imposing 25% taxes on $250 billion in Chinese goods. Beijing has counterpunched by targeting $110 billion worth of American products, focusing on farm goods such as soybeans in a deliberate effort to inflict pain on Trump supporters in the U.S. heartland.

The U.S. side has been preparing to expand retaliatory tariff hikes of 25% on another $300 billion of Chinese products, and Mnuchin indicated it was prepared to take that step if negotiations with Beijing fail. But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

​‘Hearing concerns’

Asked if other financial leaders attending the meetings in Fukuoka were raising the issue, Mnuchin said no. But he acknowledged the slowdown in Europe, China and other regions.

“I’m hearing concerns if we continue on this path there could be issues. There will be winners and losers,” he said.

Mnuchin and other officials in the Trump administration assert that the winners from the tariffs standoff, including the United States, will benefit from investments by companies moving their operations out of China to avoid the tariffs.

Countries were welcoming news that after a flurry of negotiations, Trump said he would refrain from imposing 5% tariffs on products from Mexico after it “agreed to take strong measures” to stem the flow of Central American migrants into the United States.

The tariffs that had been scheduled for Monday were “indefinitely suspended” after the two sides signed an agreement, he said in a tweet.

“It’s a good thing,” Japan’s central bank governor, Haruhiko Kuroda, told reporters.

On the agenda: taxes and crime

The agenda for the G-20 talks in Fukuoka on Saturday were mainly concerned with reforms of tax policies, combatting money laundering and cybercrimes, and innovations in financial technologies.

Japan is hosting the G-20 for the first time since it was founded in 1999.

FedEx Ends Amazon’s FedEx Express Plane Service

FedEx Corp. Friday decided not to renew its contract with Amazon.com Inc. for U.S. cargo delivery through FedEx Express, the unit that delivers packages on planes, a move that reflects the broader trend of the e-commerce company moving services in-house.

Amazon has been building out its own delivery network of planes, trucks and vans, a development that is seen posing a potential long-term challenge to FedEx and delivery rival United Parcel Service Inc., both of which count Amazon as a customer.

FedEx described the decision as a strategic move that would allow it to focus on the broader e-commerce market, a group that would include rivals of Amazon scaling up one- and two-day delivery. FedEx forecast that the market would double to 100 million packages per day in the United States by 2026.

“Amazon had a better rate with UPS, so it made no sense for them to use FedEx,” said Dean Maciuba, director of consulting services at Logistics Trends and Insights.

Other FedEx contracts unaffected

The decision does not impact any existing contracts between Amazon and other FedEx business units or relating to international services, the package delivery company said.

Amazon accounted for less than 1.3% of FedEx’s revenue last year, the company said in its statement.

Analysts said that the ending of FedEx Express’ contract with Amazon is likely to benefit UPS, which gets a relatively larger share of revenue from the online retailer.

“We would expect UPS to report much stronger volume growth in next-day air products over the next several quarters,” Bernstein analyst David Vernon wrote in a client note.

UPS volumes have been boosted by Amazon’s move to one-day shipping for its paid Prime service, and “this news means more growth in lower priced, lower weight, lower service level … domestic express products at UPS,” Vernon said.

Amazon building its fleet

In recent years, Amazon has steadily expanded its fleet of delivery aircraft, which Air Transport Services Group Inc. and Atlas Air Worldwide Holdings have operated.

The company is investing $1.5 billion to build an air cargo hub in northern Kentucky, setting it up to rely less on others for air shipping.

Amazon has 40 leased cargo planes and has signed an agreement to bring 10 more planes into the fleet in the next two years.

“We respect FedEx’s decision and thank them for their role serving Amazon customers over the years,” Amazon said in an emailed statement.

Shares of FedEx, which rose as much as 1.65% earlier in the session, pared gains and closed up 0.75% at $158.02. Amazon shares ended the day 2.8% higher at $1,804.03.

UPS shares closed up 0.2% at $98.23 after rising as much as 1% earlier in the session.

Trump Announces Deal With Mexico Averting Tariffs

Cindy Saine at the State Department contributed to this report. 

 

U.S. President Donald Trump said late Friday that the United States and Mexico had reached a deal on migration to avert tariffs.

“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended,” he tweeted.

“Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States,” Trump said.

Earlier Friday, Trump had tweeted that there was a “good chance” the two sides would reach a deal to avert tariffs over the surge of migrants across the U.S. border. However, he added, “If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!”  

U.S. and Mexican officials returned to the negotiating table Friday for a third day of talks to find a way to stem the migrant flow.

Effect on hiring?

Trump’s trade wars with Mexico and other countries appeared to have spooked American companies into putting the brakes on hiring. They added just 75,000 jobs in May, far fewer than the 180,000 economists expected, the Labor Department reported Friday.  

 

Although the jobless rate held steady at a 50-year low of 3.6%, Friday’s figures were the latest signal that the U.S. economy, while healthy, is weakening. Manufacturers, which are particularly sensitive to trade disputes, added only 3,000 jobs, extending an anemic streak of hiring in the sector.

U.S. and Mexican officials discussed a deal calling for Mexico to sharply increase patrols of its border with Guatemala to curb migration, The Washington Post reported, with the deployment of 6,000 National Guard troops. The newspaper said Mexico and the U.S. could overhaul asylum rules throughout the region, requiring Central Americans to first seek refuge in Mexico rather than traveling through it to reach the U.S. 

 

With such a plan in place, the United States could send Guatemala asylum seekers to Mexico, and those from Honduras and El Salvador to Guatemala.  

Earlier Friday in Mexico City, President Andres Manuel Lopez Obrador reiterated his own optimistic position. 

Causes of ‘chaos’

 

“There is dialogue and an agreement can be reached,” Lopez Obrador said. “I’m optimistic we can achieve that.” He added it was a mistake, though, for the U.S. to link migration with trade, saying again that migration must be addressed by solving social and economic problems in Central America.

“The causes of the migratory chaos aren’t being analyzed, only the effects,” he said.  

U.S. authorities have said more than 100,000 undocumented migrants, mostly from the three Central American countries, have crossed into the United States in recent months. The U.S. government announced Wednesday that in May, 144,000 migrants were detained at the border, up 32% from April. It was the highest monthly figure in 13 years. 

 

Some Republican lawmakers, normally close political allies of Trump, had said they would try to block any potential tariffs with legislation, which would have drawn wide support from opposition Democrats. Numerous lawmakers feared rising consumer costs for Americans if the tariffs were imposed on Mexican goods, including cars and numerous food products exported to the U.S.

O’Rourke Campaigns With His Wife as He Struggles With Women

Beto O’Rourke stumbled with women from the start, featuring his wife sitting silently in his presidential campaign launch video and joking repeatedly about being a part-time parent.

But with his campaign at risk of stalling, O’Rourke is attempting to improve his standing with female voters. His wife, Amy, will begin a rare string of campaign appearances on Friday in Iowa, speaking at joint events and making herself available to chat and take pictures with would-be supporters.

Her presence will be an important test of whether Beto O’Rourke can reverse his less-than-favorable first impressions with women. It’s an unusual position for a candidate whose appeal with women helped make him a national political phenomenon while nearly upsetting Texas Sen. Ted Cruz last fall. And it shows how much work has to be done to get his presidential bid back on track.

“Any perceived entitlement by a young white male candidate did disqualify him with some young women activists,” Judy Downs, executive director of the Des Moines-area Polk County Democratic Party, said of O’Rourke. Downs remains undecided in the party’s 2020 primary but added, “In a field where we have 24 qualified candidates, that kind of small-level of gaffe can be enough to cut someone off the list.”

This Iowa swing comes as O’Rourke seeks to reintroduce himself to voters.

He burst into the presidential race at a breakneck pace, bouncing around the country and prioritizing town hall crowds over national media appearances and building out a campaign infrastructure. When initial buzz fizzled, O’Rourke changed course, hiring dozens of new staffers, appearing more often on national TV and rolling out detailed proposals on immigration and other hot-button issues, attempting to shake perceptions he offered more style than substance.

Aides insist that strategy shift doesn’t extend to Amy O’Rourke, noting that she campaigned in New Hampshire last month. They say her stepping more into the presidential race spotlight is due to the logistics of their three children finishing the school year — not an acknowledgement that his campaign needs her help.

“When she can get on the road, she wants to get on the road,” O’Rourke spokesman Chris Evans said. “She is as much of the core of the campaign as he is.”

But others in O’Rourke’s orbit acknowledge there’s ground to be made up.

“He has this kind of persona of the preppy rich kid and it’s easy to say, He's just another privileged white guy and does America need that now?' I totally see that," said Tzatzil LeMair, who helped organize campaign events while O'Rourke was running for Senate in Texas and helms the "Latinos for Beto" page on Facebook. "Beto is like this product, but you have to try it. You have to get people to meet him. You need toexperience’ Beto.”

Iowa state Sen. Clarie Celsi remains undecided in the primary but said O’Rourke’s parenting quip was a “deal breaker for me,” despite his quickly apologizing and abandoning it during the campaign’s opening days.

“You see young men with five kids running for office, and you’re like, `Oh, I wonder how you’re able to do that — oh, you have a wife at home, great.’ But women have to fight a lot harder to be able to have that much freedom,” she said.

Playing an active role in the campaign, Amy O’Rourke could smooth over such impressions. A 37-year-old teacher and school administrator, she advised on policy and strategy during the Senate race and is doing the same for the presidential bid, aides say. Even while not personally campaigning, she helps plan travel schedules, reviews major issue proposals and critiques things like designs on campaign shirts.

“We’re better when Amy talks. We’re better when she’s talking, be it in a video, on stage or in Beto’s ear,” said Kim Olson, a friend of the O’Rourkes who campaigned unsuccessfully for Texas agriculture commissioner last year and is now running for Congress in a district between Fort Worth and Dallas.

Winning over women will be crucial to success in Iowa. Women made up a majority of Iowa voters who supported Democratic House candidates, according to AP VoteCast, a survey of voters from the 2018 midterms, and they typically turn out in stronger numbers than men for the caucuses, which begin the presidential nominating process.

O’Rourke received 52 percent of the 2018 female vote in the nation’s largest red state compared to 48 percent for Cruz, according to VoteCast, though Cruz won the race by 2.6 percentage points. O’Rourke’s campaign also points to recent polling suggesting he could beat President Donald Trump in a head-to-head, 2020 matchup, fueled by strong favorability ratings with women.

Even as he reboots his campaign, though, the new Beto O’Rourke at times looks like the old one. He recently livestreamed getting a haircut, a move he also made while running for Senate. But he joked this time about “cutting off some of this ear hair you get when you get older,” a quip that women on social media quickly noted a female candidate wouldn’t have been able to live down.

Avery Blank, an adviser to the Washington-based Wilson Center’s Women in Public Service Project, wrote a column about Amy’s nonspeaking role in the O’Rourke launch video. She says the campaign missed a chance to leverage what she knew about her husband as a person — but appearing together before voters can fix that.

“Let Amy speak,” Blank said. “Give her the mic.”

Research: Russian Disinformation on YouTube Draws Ads, Lacks Warnings

Fourteen Russia-backed YouTube channels spreading disinformation have been generating billions of views and millions of dollars in advertising revenue, according to researchers, and had not been labeled as state-sponsored, contrary to the world’s most popular streaming service’s policy.

The channels, including news outlets NTV and Russia-24, carried false reports ranging from a U.S. politician covering up a human organ harvesting ring to the economic collapse of Scandinavian countries. Despite such content, viewers have flocked to the channels and U.S. and European companies have bought ads that run alongside them.

The previously unpublished research by Omelas, a Washington-based firm that tracks online extremism for defense contractors, provides the most comprehensive view yet of the Russian government’s success in attracting viewers and generating revenue from propaganda on YouTube, which has 2 billion monthly viewers worldwide.

YouTube, owned by Alphabet Inc’s Google, introduced a policy in February of 2018 to identify channels predominantly carrying news items and are wholly or partly funded by national governments, in order to help users make informed viewing decisions.

YouTube said on Wednesday that following inquiries from Reuters it added the state-funding disclaimer to 13 additional Russian channels, including eight of the channels spreading disinformation.

Twelve other Russia-sponsored channels identified by Omelas with misleading or inaccurate news reports already had the state-funding label.

Collectively, the 26 channels drew 9 billion views from January 2017 through December 2018, Omelas found. Another 24 Russian channels with no apparent ties to disinformation attracted an additional 4 billion views, Omelas said.

Omelas estimated those 13 billion total views could have generated up to $58 million from ads, including some from Western advertisers. It estimated that Russia could have received $7 million to $32 million under YouTube’s standard revenue-sharing program, while YouTube itself would have pocketed from $6 million to $26 million.

An accurate analysis is difficult because YouTube shares limited audience and sales data. YouTube declined comment on the channels’ revenue. Calls and emails to the Russian government and the country’s embassies in the United States and Britain were not returned.

It is not uncommon for state broadcasters around the world to put videos on YouTube. Russia’s channels, though, have faced more scrutiny since the United States concluded that Russian operatives attempted to disrupt the 2016 presidential election by posting fake news to social media from fabricated personas and news organizations. Russia has denied any wrongdoing.

“YouTube continues to enable the monetization of state propaganda, fringe conspiracies and intentional outrage,” said Ryan Fox, chief operating officer of cybersecurity firm New Knowledge.

Money-maker for Google

YouTube said it welcomes governments in its revenue-sharing program and does not bar disinformation.

“We don’t treat state-funded media channels differently than other channels when it comes to monetization, as long as they comply with all of our other policies,” YouTube spokeswoman Alex Krasov told Reuters. “And we give users context for news-related content, including by labeling government-funded news sources.” 

The Russian-sponsored YouTube channels come from government ministries and state media networks, some dating back 13 years, according to Omelas, which based its research on a public database from the European Union of online disinformation sources.

The channels listed by Omelas, of which NTV was the most viewed, contain nearly 770,000 videos, including singing competitions, talk shows and news clips, some more clearly biased or inaccurate than others. A few of the channels are in English, French or other languages but most are in Russian. YouTube mostly generates its revenue from selling ads placed adjacent to, before or during videos on its service.

Some Western advertisers, which were unaware their ads were appearing on Russian channels, told Reuters they were concerned about being associated with questionable content.

Grammarly, an online grammar-checking service whose ads appeared on Russian channels with deliberately misleading news, told Reuters it would never knowingly associate with misinformation.

“We have stringent exclusion filters in place with YouTube that we believed would exclude such channels, and we’ve asked YouTube to ensure this does not happen again,” spokesperson Senka Hadzimuratovic said in a statement.

Other ads reaching viewers on Russian-funded conspiracy videos came from insurer Liberty Mutual, the European Central Bank and software firms Adobe Inc, Yandex NV and Wix.com Ltd, according to research by Omelas and Reuters.

The ECB, Adobe and Yandex declined to comment. Liberty Mutual and Wix did not respond to requests for comment. John Montgomery, a global executive vice president at ad buying company GroupM, said advertisers can set filters to automatically avoid supporting some objectionable channels but they are imperfect.

“Disinformation is probably the biggest challenge we’ve got on the internet today,” he said.

Facebook Stops Huawei From Pre-Installing Its Apps on Phones

Facebook has stopped letting its apps come pre-installed on smartphones sold by Huawei in order to comply with U.S. restrictions, dealing a fresh blow to the Chinese tech giant.

The social network said Friday that it has suspended providing software for Huawei to put on its devices while it reviews recently introduced U.S. sanctions.

Owners of existing Huawei smartphones that already have Facebook apps can continue using them and downloading updates.

It’s not clear if buyers of new Huawei devices will be able to install Facebook’s apps on their own.

Facebook’s move is the latest fallout in the escalating U.S.-China tech feud.

The Commerce Department last month effectively barred U.S. companies from selling their technology to Huawei and other Chinese firms without government approval.

US Jobs Growth Slows Sharply

U.S. job growth slowed sharply in May and wages rose less than expected, suggesting the loss of momentum in economic activity was spreading to the labor market, which could increase calls for the Federal Reserve to cut interest rates this year.

The cool-off in hiring reported by the Labor Department on Friday was even before a recent escalation in trade tensions between the United States and two of its major trading partners, China and Mexico. Economists have warned that the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.

The economy thus far has been largely resilient to the trade war with China. President Donald Trump in early May slapped additional tariffs of up to 25% on $200 billion of Chinese goods, which prompted retaliation by Beijing.

Last week, Trump said he would impose a tariff on all goods from Mexico in a bid to stem the tide of migrants across the U.S.-Mexican border. Talks are ongoing to prevent the duties from kicking in at 5% on June 10.

Nonfarm payrolls increased by 75,000 jobs last month, the government said in its closely watched employment report, falling below the roughly 100,000 needed per month to keep up with growth in the working-age population.

The economy created 75,000 fewer jobs in March and April than previously reported. Economists polled by Reuters had forecast payrolls rising by 185,000 jobs last month.

May’s disappointing job growth was flagged by a report on Wednesday from payrolls processing firm ADP showing the smallest gain in private payrolls in nine years last month. Another report this week showed a drop in online ads by businesses looking for help.

Last month’s slowdown in job gains, however, probably understates the health of the labor market as measures such as weekly applications for unemployment benefits and the Institute for Supply Management’s services employment gauge have suggested underlying strength.

Monthly wage growth remained moderate in May, with average hourly earnings increasing six cents, or 0.2% following a similar gain in April. That lowered the annual increase in wages to 3.1% from 3.2% in April. The average workweek was unchanged at 34.4 hours last month.

The moderation in wage gains, if sustained could cast doubts on the Fed’s optimism that inflation would return to the U.S. central bank’s 2% target. Financial markets are pricing in two rate cuts this year.

The tepid employment report added to soft data on consumer spending, business investment, manufacturing and homes sales in suggesting the economy was losing momentum in the second quarter following a temporary boost from exports, inventory accumulation and defense spending. Growth is cooling as the massive stimulus from last year’s tax cuts and spending increases fades.

The Atlanta Fed is forecasting gross domestic product rising at a 1.5% annualized rate in the second quarter. The economy grew at a 3.1% pace in the first quarter.

The unemployment rate remained near a 50-year low of 3.6% in May. The jobless rate was partly pushed down by workers dropping out of the labor force over the last four months.

Employment gains in May slowed across all sectors. Manufacturing payrolls increased by 3,000 last month.

Manufacturing employment will be watched closely for signs of the impact of the tariffs on the economy. Factory output has been weak and sentiment dropped to a 31-month low in May, with manufacturers worried mostly about the trade tensions. Employers in the construction sector hired 4,000 workers in May. Government payrolls fell by 15,000 jobs.

 

In Reversal, Biden Opposes Ban on Federal Money for Abortion

After two days of intense criticism, Democratic presidential candidate Joe Biden reversed course Thursday and declared that he no longer supports a long-standing congressional ban on using federal health care money to pay for abortions.

“If I believe health care is a right, as I do, I can no longer support an amendment” that makes it harder for some women to access care, Biden said at a Democratic Party fundraiser in Atlanta.

The former vice president’s reversal on the Hyde Amendment came after rivals and women’s rights groups blasted him for affirming through campaign aides that he still supported the decades-old budget provision. The dynamics had been certain to flare again at Democrats’ first primary debate in three weeks.

Centrist risks

Biden didn’t mention this week’s attacks, saying his decision was about health care, not politics. Yet the circumstances highlight the risks for a 76-year-old former vice president who’s running as more of a centrist in a party where some skeptical activists openly question whether he can be the party standard-bearer in 2020.

And Biden’s explanation tacitly repeated his critics’ arguments that the Hyde Amendment is another abortion barrier that disproportionately affects poor women and women of color.

“I’ve been struggling with the problems that Hyde now presents,” Biden said, opening a speech dedicated mostly to voting rights and issues important to the black community.

“I want to be clear: I make no apologies for my last position. I make no apologies for what I’m about to say,” he explained, arguing that “circumstances have changed” with Republican-run states, including Georgia, where Biden spoke, adopting new, severe restrictions on abortion.

‘Middle ground’ on abortion

A Roman Catholic who has wrestled publicly with abortion policy for decades, Biden said he voted as a senator to support the Hyde Amendment because he believed that women would still have access to abortion even without Medicaid insurance and other federal health care grants and that abortion opponents shouldn’t be compelled to pay for the procedure. It was part of what Biden has described as a “middle ground” on abortion.

Now, he says, there are too many barriers that threaten that constitutional right, leaving some women with no reasonable options as long as Republicans keep pushing for an outright repeal of the Supreme Court’s 1973 decision that legalized abortion nationwide.

The former vice president said he arrived at the decision as part of developing an upcoming comprehensive health care proposal. He has declared his support for a Medicare-like public option as the next step toward universal coverage. He reasoned that his goal of universal coverage means women must have full and fair access to care, including abortion.

​Reversal praised

A Planned Parenthood representative applauded Biden’s reversal but noted that he has been lagging the women’s rights movement on the issue.

“Happy to see Joe Biden embrace what we have long known to be true: Hyde blocks people, particularly women of color and women with low incomes, from accessing safe, legal abortion care,” said Leana Wen of Planned Parenthood, the women’s health giant whose services include abortion and abortion referrals.

Other activists accepted credit for pushing Biden on the issue.

“We’re pleased that Joe Biden has joined the rest of the 2020 Democratic field in coalescing around the party’s core values — support for abortion rights, and the basic truth that reproductive freedom is fundamental to the pursuit of equality and economic security in this country,” said Ilyse Hogue, president of NARAL, a leading abortion-rights advocacy group.

Reaction on both sides

Repealing Hyde has become a defining standard for Democrats in recent years, making what was once a more common position among moderate Democrats more untenable, particularly given the dynamics of primary politics heading into 2020. At its 2016 convention, the party included a call for repealing Hyde in the Democratic platform, doing so at the urging of nominee Hillary Clinton.

At least one prominent Democratic woman remained unconvinced.

“I am not clear that Joe Biden believes unequivocally that every single woman has the right to make decisions about her body, regardless of her income or race,” said Democratic strategist Jess Morales Rocketto, who worked for Clinton in 2016. “It is imperative that the Democratic nominee believe that.”

Republicans pounced, framing Biden’s change in position as a gaffe.

“He’s just not very good at this. Joe Biden is an existential threat to Joe Biden,” said Tim Murtaugh, the communications director for President Donald Trump’s reelection campaign.

A senior Biden campaign official said some aides were surprised at the speed of the reversal, given Biden’s long history of explaining his abortion positions in terms of his faith. But aides realized that as the front-runner, the attacks weren’t going to let up, and his campaign reasoned that the fallout within the Democratic primary outweigh any long-term benefit of maintain his previous Hyde support.

The official spoke on condition of anonymity to discuss internal conversations.

Fiat Chrysler Drops Renault Merger Idea

Italian-U.S. carmaker Fiat Chrysler on Thursday pulled the plug on its proposed merger with Renault, saying negotiations had become “unreasonable” because of  political resistance in Paris.  

 

Fiat Chrysler Automobiles, or FCA, had stunned the markets last week with a proposed “merger of equals” with the French group that would — together with Renault’s Japanese partners, Nissan and Mitsubishi Motors — create an auto giant spanning the globe.  

 

The French government, which controls 15 percent of Renault, gave the deal a conditional green light, with analysts suggesting it wanted more control over the combined group alongside Fiat’s Agnelli family. 

 

FCA said late Wednesday that it “remains firmly convinced of the compelling, transformational rationale” of the tie-up, which it said was “carefully balanced to deliver substantial benefits to all parties.”

 

“However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” it said in a statement.  

 

On Thursday, FCA chief John Elkann stood by the decision to start, and then leave, the merger talks. 

 

“When it becomes clear that the conversations have been brought to the point beyond which it becomes unreasonable to go, it is necessary to be equally brave to interrupt them,” Elkann wrote in a letter to employees published by Italian media.  

Renault expressed its “disappointment” at the turnabout. 

 

“We view the [Fiat] opportunity as timely, having compelling industrial logic and great financial merit, and which would result in a European-based global auto powerhouse,” it said in a statement. 

 

The combined group, including Nissan and Mitsubishi, would have been by far the world’s biggest, with total sales of 15 million vehicles, compared with both Volkswagen and Toyota, which sell around 10.6 million apiece. 

 

Shares in Renault plunged by more than 6 percent on the Paris stock exchange. In Milan, FCA shares also initially slid but then recovered to close up 0.1 percent.

Nissan holds key

Despite the verbal sparring that erupted after FCA’s announcement, industry experts did not rule out talks being resumed.  

 

“The collapse of the proposed Fiat Chrysler/Renault merger leaves both firms exposed to the shifting dynamics of a sector at a crossroads,” Ilana Elbim, credit analyst for Hermes Investment Management, said in a note.  

 

Pointing to falling sales volumes in major auto markets, she said “mega-mergers designed to save on capital expenditures remain inevitable.” 

 

On Tuesday, Renault’s board had said it was studying FCA’s offer “with interest,” but held off final approval pending further deliberations.  

 

By Wednesday, all Renault directors had come around in favor of the merger, with the exception of the employee representative affiliated with the powerful CGT union and two from Nissan who abstained, according to a source close to Renault.   

The two Nissan directors were said to have asked for more time to approve the deal. There was no official comment from Nissan headquarters in Tokyo. 

 

Relations between Renault and Nissan have come under strain since the arrest in November of their joint boss, Carlos Ghosn, who awaits trial in Japan on charges of financial misconduct. 

 

French Finance Minister Bruno Le Maire had laid down conditions for the tie-up with FCA, insisting there be no plant closures and that the Renault-Nissan alliance be preserved.  

 

The Renault source said Le Maire had asked for another board meeting next Tuesday following his return from a trip to Japan, where he was to discuss the proposal with his Japanese counterpart at a meeting of G-20 finance ministers.  

Blame game

A source close to FCA said it was the “sudden and incomprehensible” objections by Le Maire’s ministry that had caused the deal to collapse. 

 

Italian Deputy Prime Minister Luigi Di Maio said: “When politics tries to intervene in economic procedures, they don’t always behave correctly, I don’t want to say any more.”   

But Le Maire stressed that, of his conditions, only the explicit approval of Nissan remained to be secured, while aides denied that the ministry had played politics with the deal. 

 

A source close to the finance ministry said the French government “regrets the hasty decision of FCA.” 

 

“Despite significant progress, a short delay was still necessary so that all conditions set by the state could be met,” it said. 

 

Le Maire indicated the French government was amenable to changes at Renault despite FCA’s U-turn. 

 

“We remain open to the prospect of industrial consolidation, but once again, in calmness, without haste, to guarantee the industrial interests of Renault and the industrial interests of the French nation,” he told the French parliament. 

 

For his part, Elkann said FCA “will continue to be open to opportunities of all kinds that offer the possibility of strengthening and accelerating the realization of this strategy and creating value.” 

Google Cloud Gaming Service to Launch in 14 Countries This Year

Google on Thursday released new details about its video game streaming service Stadia, which will be available in 14 countries starting in November.

For the launch, Google will sell its “founders edition bundle” hardware pack for $129, with a monthly subscription price of $9.99. In Europe, the price will be 129 euros and 9.99 euros per month.

The new gaming platform aims for a Netflix-style subscription that enables players to access games on any device, powered by the internet cloud.

This could disrupt the huge gaming industry by allowing users to avoid consoles and game software on disc or download.

Subscribers will have access to free games and will be able to purchase some blockbuster titles as well.

The first free title will be the shooter game Destiny 2 from game developer Bungie.

Users may also purchase hit titles such as Assassin’s Creed Odyssey and Ghost Recon Breakpoint.

Stadia will launch in the United States, Britain, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Spain and Sweden.

Announcing the game platform earlier this year, Google chief executive Sundar Pichai said the initiative is “to build a game platform for everyone.”

Google’s hope is that Stadia could become for games what Netflix or Spotify are to television or music, by making console-quality play widely available.

Yet it remains unclear how much Google can grab of the nascent, but potentially massive, industry.

As it produces its own games, Google will also be courting other studios to move to its cloud-based model.

US Authorities to Finally Check 2016 NC Poll Books for Hacking

More than two years after voter check-in software failed on Election Day in a North Carolina county, federal authorities will conduct a forensic analysis of electronic poll books for evidence of tampering by Russian military hackers. 

 

The Department of Homeland Security analysis of laptops used in Durham County is the first known federal probe of voting technology that malfunctioned during the 2016 election. 

 

State election officials had renewed their long-dormant request for the forensic exam based on the report by special counsel Robert Mueller on Russian election interference.  

  

Poll book provider VR Systems says that contrary to Mueller’s findings, it does not believe its network was infiltrated. 

 

The malfunction in heavily Democratic Durham County forced voters to use paper ballots and wait in line during extended voting hours.

D-Day Aside, Trump Assails Targets Back Home

U.S. President Donald Trump, in Europe to commemorate the 75th anniversary of D-Day, took time Thursday to unleash new broadsides at political targets back home for their roles in investigating him, special counsel Robert Mueller and House Speaker Nancy Pelosi.

Trump contended in a Fox News interview that Mueller made “such a fool” of himself last week when he delivered his first and only public statement on his 22-month investigation of Russian meddling in the 2016 U.S. presidential election and whether Trump, as president, obstructed justice by trying to thwart it. 

Mueller said that with the long-time Justice Department policy forbidding the filing of criminal charges against sitting presidents, “Charging the president with a crime was not an option we could consider.” Even so, Mueller said, “If we had confidence that the president clearly did not commit a crime, we would have said that” and declined to exonerate him of obstruction allegations. Instead, Mueller said that prosecutors made no determination on whether charges were warranted.

Attorney General William Barr and then-Deputy Attorney General Rod Rosenstein had earlier decided charges were not warranted against Trump, with Barr saying that Mueller had assured him, as he wound up his investigation, that he was not saying that obstruction charges would have been warranted absent the Justice Department policy banning charges against a sitting president.

Trump noted that after Mueller made his public statement, the Justice Department and Mueller’s office clarified there was “no conflict” between their views. Trump claimed that Mueller had “to straighten out his testimony because his testimony was wrong.” Mueller has not testified before any Congressional committees about his report.

With Mueller declining to clear Trump of obstruction allegations, about a quarter of opposition Democrats in the Democratic-controlled House of Representatives have called for Trump’s impeachment or the start of an impeachment inquiry, which Trump says is unwarranted.

Pelosi has resisted calls to open an impeachment proceeding against Trump, preferring to continue wide-ranging House committee investigations of the obstruction allegations, Trump’s finances and other Trump administration policies during his 29-month presidency. 

But the political news site Politico reported that she told Democratic colleagues in a meeting this week, “I don’t want to see him impeached, I want to see him in prison.” Pelosi has said she prefers to defeat Trump in the 2020election and then prosecute him for his alleged crimes once he is out of office.

“Nancy Pelosi, I call her Nervous Nancy,” Trump said, saying he does not care whether Democrats call Mueller to testify about his investigation. “Nancy Pelosi is a disaster, OK? Let her do what she wants. You know what, I think they’re in big trouble.” 

IMF: US Trade Wars Are Risk to America’s Economy

The U.S. economy could be weakened by escalating trade wars or a sudden downturn in global financial markets, the International Monetary Fund (IMF) warns.

In an annual review of the U.S. economy, the IMF said it was on a 2.6 percent growth track this year, greater than the 2.3 percent growth rate forecast in April.

But the report also said the U.S. economy appears to be increasingly vulnerable amid investor concern over America’s trade wars, noting they could trigger worsening global financial conditions.

The IMF criticized U.S. President Donald Trump’s administration for efforts to remake global trade relationships through higher tariffs and said it was “especially important” to resolve the trade dispute with China.

The report said the U.S. economy has recovered from the financial crisis that began in 2008, but millions of Americans did not benefit from the recovery. Household income increased a meager 2.2 percent from the end of the last century, the report said, while the U.S. economy expanded 23 percent per capita during the same period.

“The poorest 40 percent of households have a level of net wealth that is lower today than it was in 1983,” the report said.

The report called on the Trump administration to avert an economic slowdown by adopting measures to cut public and corporate debt and address inequality.

On Wednesday, the IMF warned the U.S.-China trade war could cut world economic growth next year.

IMF Managing Director Christine Lagarde said Trump’s threat to tax all trade between the two countries would shrink the global Gross Domestic Product (GDP) by one-half-of-one percent.

“This amounts to a loss of about about $455 billion, larger than the size of South Africa’s economy,” Lagarde said in a briefing note for the Group of Twenty (G-20), a collection of the world’s largest advanced and emerging economies. “These are self-inflicted wounds that must be avoided… by removing the recently implemented trade barriers and by avoiding further barriers in whatever form,” she added.

The warning came as G-20 finance ministers and central bankers prepare to meet in Japan later this month. They will gather just weeks after U.S.-China talks collapsed amid claims of broken promises and another round of punishing tariffs.

Vietnam Businesses Push for Green Economy

Liz Hung supports a lot of the imaginative concepts being discussed to make Vietnam “greener” economically and in terms of urban planning.

 

Consider traffic lights. Hung described how government authorities could collect smartphone data to see which streets are crowded, and then calibrate the stoplights to optimize traffic flow.

 

Hung and others in the private sector are giving Vietnamese officials their wish list for a green economy, from more renewable energy to buildings that collect rain water for use.

 

“Road congestion costs us at least 2 to 5% of our [gross domestic product] growth every year because of the time we lost or the high transportation cost, so that is why being smart [in] mobility is very crucial,” said Hung, who is CBRE associate director of Asia Pacific Research.

 

Hung’s comment highlights the link between good city planning and economic benefits.

Emulating China, Australia

 

There is also a larger debate about whether the economic benefits outweigh the costs of going green.

 

There is a financial cost of technology to make Vietnam more efficient. But there also is a security cost, as “smart devices,” like lights connected to the internet, have looser security settings that make them easier to hack.

 

In looking for inspiration for Vietnam’s future, Hung looked at places from Hangzhou, China, where she heard about the traffic data, to Adelaide, Australia, where authorities installed smart sensors in trash bins, which alert garbage collectors when the bins are nearly full.

 

If the idea is to increase efficiency, Vietnam should think about energy use, said Tomaso Andreatta, vice chair at the European Chamber of Commerce in Vietnam.

 

Last month, the chamber held a forum on sustainable cities. In addition to rooftop solar panels and wind turbines, some cities are exploring ways to create energy from things that would otherwise be tossed out.

 

Trash can be burned, for example, to boil water for steam generators that produce electricity, a process known as waste-to-energy. This does risk increasing carbon emissions or decreasing incentives for recycling, however.

Aiming for zero waste

 

“More and more we realize that resources are limited, and producing waste destroys the quality of life,” Andreatta said. “Therefore, there’s been a movement worldwide to reducing waste to an absolute minimum, ideally zero.”

 

He went on to say, “The rapid development of the middle class and its lifestyle, which includes intensive air conditioning use, accounts for a considerable proportion of energy consumption growth.”

 

It may be the middle class that benefits most from a greener Vietnam, where the private sector steps in to create greater efficiencies, when the government is not involved.

 

Property developers are building enclosed communities where sustainability is part of the design, whether it’s motion-detecting lights, or insulation that keeps indoor temperatures manageable. One developer introduced pollution warnings. Another made a transportation app just for its residents.

 

But what about those who are not lucky enough to live in a gated community?

 

Government officials say they are listening to proposals across all sectors. They say that as Vietnam faces a major threat from climate change, it needs to make greater efforts at green planning.

 

“Climate change will have a big impact on the region,” said Huynh Xuan Thu, deputy chief officer of the Ho Chi Minh City Department of Architecture and Urban Planning.

 

Some of the ideas, such as a country full of electric cars, may be a pipe dream or years down the road. But Vietnam is getting started on some of the proposals.

 

In Ho Chi Minh City, officials are looking at traffic sensors and gathering data on congestion, which they hope to reduce through technology in the near future.

 

US Productivity Grew at Solid 3.4% Rate in First Quarter

U.S. productivity grew at a strong 3.4% rate in the January-March quarter, the best showing in more than four years, the Labor Department reported Thursday. It was an encouraging sign that productivity may finally be improving after a long stretch of weakness.

 

The first quarter gain was more than double the 1.3% increase in the fourth quarter, although it was slightly lower than an initial estimate of 3.6% made a month ago. Labor costs fell during the first quarter, declining by 1.6% following a 0.4% drop in the fourth quarter.

 

Productivity, the amount of output per hour of work, is a key factor determining an economy’s growth potential. If the current rebound continues, it would provide support for President Donald Trump’s efforts to achieve sustained 3% growth rates.

 

The slight downward revision in productivity reflected the fact that overall output, as measured by gross domestic product, was revised down from an initial estimate of 3.2% growth to 3.1% growth in the first quarter.

 

The 3.4% advance in productivity was the strongest increase since a 3.7% rise in the third quarter of 2014. Productivity has risen 2.4% over the past four quarters, the best performance since a 2.7% four-quarter gain in 2010.

 

Productivity gains over the past decade have been lackluster, averaging just 1.3% annually from 2007 through 2018. That was less than half the 2.7% gains seen from 2000 to 2007, a period when the economy was benefiting from technology improvements in computers and the internet. From 1947 through 2018, annual productivity gains averaged 2.1%.

 

Economists see the slowdown in productivity over the past decade as one of the country’s biggest economic challenges. But recent signs indicate that may be turning around. The economy’s potential to grow is governed by two major factors, growth of the labor force and growth in productivity.

 

For all of 2018, GDP growth was 2.9%. The Trump administration has projected sustained GDP gains of 3% or better over the next decade, well above the 2.2% average GDP gains seen since the current expansion began in June 2009.

 

In a separate report Thursday, the Labor Department said that applications for unemployment benefits, a proxy for layoffs, held steady at 218,000 last week. That is a low level that indicates a strong job market. The government will release its May jobs report on Friday.

 

 

Front-Runner Biden Campaigning for President on His Terms

Just six weeks into his presidential campaign, Joe Biden is running as the Democrat to beat, charting a distinct path through the primary states, taking positions that may rile the party base and working with a single goal in mind: not being lumped in with the rest of the field.

While most Democrats crowd an Iowa dinner this weekend, he won’t be on the campaign trail. While most Democrats tout their support of abortion rights, Biden is offering a more nuanced, middle-ground position. And while most Democrats are preparing to battle one another, Biden is focused on President Donald Trump.

Biden’s moves suggest a candidate looking beyond the Democratic primary to the general election, laser-focused on issues that could shore him up with swing voters in key battleground states even if it spurs consternation from some Democrats now. At the moment, the strategy seems to be working as Biden enjoys a sizable lead in most early polls. But that could change with the first presidential debate of the season just weeks away.

“You are still running for the Democratic Party nomination, and you have to respect where the party is … and avoid pitfalls,” said Karen Finney, a key adviser in 2016 to Hillary Clinton, who navigated a fraught relationship with Democrats’ left flank to win the nomination but went on to lose the election. “It’s a very fine line he’s trying to walk.”

There are fresh signs of the peril he faces atop the field.

In a span of 24 hours this week, a staffer appeared to cut short a question-and-answer session with New Hampshire voters after the candidate called China “xenophobic,” suggesting the campaign remains anxious about Biden’s tendency to go off script. Aides admitted the campaign published a climate policy proposal without properly sourcing some material, a sign of a potential lack of discipline that sank Biden’s previous White House bids.

And Biden’s defense of his abortion views enraged fellow Democrats and left him uncomfortably close to Trump, whose campaign happily noted the president also opposes federal money supporting abortion.

More broadly, Biden risks contending with the same air of inevitability that Clinton confronted in 2016, magnifying every misstep and turning some voters against her.

“There are just places where he is out of step with the party,” Finney observed, citing his middle ground on abortion. “The question becomes whether there’s an assumption by this campaign that parts of the base might not like various positions but because people want to win, they’ll be willing to look past it.”

Biden’s Democratic competitors have been reluctant to attack publicly. Even as they disagreed with Biden’s abortion views on Wednesday, they generally avoided referring to him by name.

In private, however, rival campaigns are eager to complain that Biden hides from scrutiny. He’s among the only top-tier candidates yet to appear in a cable news town hall, and in contrast with many of his opponents, he rarely takes questions from groups of reporters after his campaign appearances.

Some of Biden’s top-tier opponents acknowledge they fear voter backlash should they engage the popular Biden more directly. They expect to debate policy differences, but most want to avoid the kind of scorched-earth attacks that fueled Trump’s rise during the 2016 Republican primary.

Only groups like the Progressive Change Campaign Committee — which backs Massachusetts Sen. Elizabeth Warren — have called Biden out aggressively. The group this week tweeted a picture of Biden’s schedule for June that features 10 days of campaigning; several days are limited to invitation-only fundraisers.

“You can hide for a few weeks during the primary, but you can’t hide from public engagement during the general election against Trump,” said PCCC co-founder Adam Green.

At Biden headquarters, aides don’t deny a front-runner’s approach, but they dispute any characterization that the former vice president isn’t engaging voters. Days when he’s not on the campaign trail, they say, are devoted to meetings with policy advisers and campaign aides. Indeed, Biden has unveiled two comprehensive policy outlines (education and climate) before the 40-day mark of his campaign, a faster clip than the gaggle of candidates who launched their bids in January and February.

And they say Biden made it to all four early voting states faster than most of his top-tier rivals.

Biden isn’t skipping large-scale Democratic events altogether. On Thursday, he’ll be in Atlanta at a Democratic National Committee event focused on minorities and voting rights. Later in June, he’ll spend two days at the South Carolina state party convention, an important stop ahead of the South’s first primary and the first nominating contest to feature a large black contingent.

And allowing a press pool at fundraisers — something his opponents aren’t doing systematically — means any misstep is captured, even if not on camera. He’s attended house parties and lunchtime meet-and-greets and taken questions in New Hampshire and Iowa, even if not as much as barnstormers like Warren or New Jersey Sen. Cory Booker.

Scott Brennan, a former Iowa Democratic Party chairman, said Biden’s strength in early polls allows him to “get a pass” from some of the criticism for now. But he warned that Biden should be aware of a nebulous measure: “Whether voters feel like you’re accessible.”

Then-Sen. Barack Obama skipped Iowa’s Hall of Fame dinner in 2007 — the same event Biden will miss this weekend. But Obama went on to win Iowa, largely because of his lengthy sessions answering questions from voters in more personal settings.

In New Hampshire on Tuesday, voters offered a mixed assessment.

Cynthia Tomai, a 51-year-old who is self-employed, said Biden has to play “catch up” to other candidates. “Would I like to see a little bit more aggressiveness in him?” Tomai said. “Yeah, I would. I think he does need to change his message a little bit.”

Lloyd Murray, a 67-year-old military veteran and business owner, said Biden’s front-runner approach is smart.

“I’m scared for him,” Murray said. “He’s known to make [gaffes] in the past. I want him to play it safe. He’s in the lead.”

 

 

Ai-Da, Humanoid Robot Artist, Gears Up for First Solo Exhibition

Wearing a white blouse and her dark hair hanging loose, Ai-Da looks like any artist at work as she studies her subject and puts pencil to paper. But the beeping from her bionic arm gives her away – Ai-Da is a robot.

Described as “the world’s first ultra-realistic AI humanoid robot artist,” Ai-Da opens her first solo exhibition of eight drawings, 20 paintings, four sculptures and two video works next week, bringing “a new voice” to the art world, her British inventor and gallery owner Aidan Meller says.

“The technological voice is the important one to focus on because it affects everybody,” he told Reuters at a preview.

“We’ve got a very clear message we want to explore: the uses and abuses of A.I. today, because this next decade is coming in dramatically and we’re concerned about that and we want to have ethical considerations in all of that.”

Named after British mathematician and computer pioneer Ada Lovelace, Ai-Da can draw from sight thanks to cameras in her eyeballs and AI algorithms created by scientists at the University of Oxford that help produce coordinates for her arm to create art.

She uses a pencil or pen for sketches, but the plan is for Ai-Da to paint and create pottery. Her paint works now are printed onto canvas with a human painting over.

“From those coordinates from the drawing we’ve been able to take that into a algorithm that is then able to output it through a Cartesian graph that then produces a final image,” Meller said.

“It’s a really exciting process never been done before in the way that we’ve done it…We don’t know exactly how the drawings are going to turn out and that’s really important.”

On show at the “Unsecured Futures” exhibition are drawings paying tribute to Lovelace and mathematician Alan Turing, abstract paintings of trees, sculptures based on Ai-Da’s drawings of a bee and video works, one of which, “Privacy” pays homage to Yoko Ono’s 1965 “Cut Piece.”

Ai-Da, whose construction was completed in April, has already seen her art snapped up.

“It’s a sold out show with over a million pounds worth of artworks sold,” Meller said.

The exhibition, which opens on June 12 at the Barn Gallery at St John’s College, looks at the boundaries between technology, AI and organic life.

Asked by Meller about “all the AI going on at the moment,” Ai-Da, who has pre-programmed speech, replied: “New technologies bring the potential for good and evil. It is a great responsibility to try to curb excesses of negative use, something that we all must consider.”

Warren Criticizes Trump’s ‘Dart Throwing’ Mexico Tariff Decision

Democratic presidential hopeful Elizabeth Warren on Wednesday criticized U.S. President Donald Trump’s decision to impose tariffs on Mexico as “random dart throwing” that lacks a coherent strategy.

Trump unexpectedly told Mexico last week to take a harder line on curbing illegal immigration or face 5% tariffs on all its exports to the United States, rising to as much as 25% later in the year. On Tuesday, Trump said he expected to impose the tariffs as of Monday.

“Trump’s random dart throwing ain’t helping anybody,” Warren, a U.S. Senator from Massachusetts, told reporters after a campaign event in Elkhart, Indiana.

Moments earlier, before a crowd of about 600 in the town with a large manufacturing sector, Warren assailed companies that are moving production abroad. While that echoed Trump’s criticism, she faulted his approach.

“Lets be clear — tariff policy by tweet does not work,” Warren said. “Randomly raising tariffs on a handful of goods with no coherent policy and doing it nation by nation makes no sense at all.”

Warren is one of more than 20 Democrats vying for the Democratic nomination to challenge Trump in the November 2020 election.

Mexican officials will seek to persuade the White House in talks hosted by U.S. Vice President Mike Pence on Wednesday that their government has done enough to stem immigration and avoid looming tariffs. The tariff fight merges two of Trump’s biggest campaign promises, on immigration and fair trade.

“Nobody goes into battle by themselves when they can be stronger by having allies in it,” Warren said, calling for a “coherent trade policy.”

Other Candidates Weigh In

U.S. Senator Amy Klobuchar, who is also running to be a Democratic presidential nominee, criticized Trump for creating “chaos” by creating the tariffs and promising more.

“That’s the kind of chaos he likes,” Klobuchar said in an appearance on CNN on Tuesday. “And I just think that’s not how you embark on international diplomacy with one of our best allies.

U.S. Senator Kirsten Gillibrand, another Democratic presidential hopeful, had a similar criticism.

“This president has no plan and no ability to have a thoughtful approach towards trade or the economy,” Gillibrand said on Monday in a town hall on Fox News. “Because if he wanted to reduce the trade deficit, he’s only grown it.”