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California High Court Rejects Proposed Measure to Divide State

In November, Californians will not have to decide whether the state should be partitioned.

The state Supreme Court ruled this week that a measure on partitioning the nation’s most populous state into three could not be put on the ballot for the November midterm elections.

In June, state election officials announced the proposed ballot measure had received enough signatures to appear on the ballot. Yet, the state’s highest judicial body ruled that splitting California would amount to a change in its Constitution, requiring the approval of the state legislature before voters go to the polls.

“Significant questions have been raised regarding the proposition’s validity,” the court said. The ruling also said, “We conclude that the potential harm in permitting the measure to remain on the ballot outweighs the potential harm in delaying the proposition to a future election.”

The measure was backed by California-based venture capitalist Tim Draper. He has long attempted to force a vote on similar measures to divvy up his home state.

“Three states will get us better infrastructure, better education and lower taxes,” Draper told the Los Angeles Times last year, after submitting his most recent proposal. “States will be more accountable to us and can cooperate and compete for citizens.”

A California environmental group, the Planning and Conservation League (PCL), opposed the measure.

“California’s Constitution rightfully ensures that voters have a voice in public policy through direct democracy,” Howard Penn, the PCL’s executive director, said in a statement. “If those constitutional safeguards mean anything, they should prevent a billionaire from circumventing the constitutionally required process for making such sweeping changes to our government.”

The high court gave Draper 30 days to respond to the ruling.

If such a measure to divide the state were to pass someday, it would most likely require approval from the U.S. Congress. No U.S. state has been divided since West Virginia broke off from Virginia in 1863, during the Civil War.

California High Court Rejects Proposed Measure to Divide State

In November, Californians will not have to decide whether the state should be partitioned.

The state Supreme Court ruled this week that a measure on partitioning the nation’s most populous state into three could not be put on the ballot for the November midterm elections.

In June, state election officials announced the proposed ballot measure had received enough signatures to appear on the ballot. Yet, the state’s highest judicial body ruled that splitting California would amount to a change in its Constitution, requiring the approval of the state legislature before voters go to the polls.

“Significant questions have been raised regarding the proposition’s validity,” the court said. The ruling also said, “We conclude that the potential harm in permitting the measure to remain on the ballot outweighs the potential harm in delaying the proposition to a future election.”

The measure was backed by California-based venture capitalist Tim Draper. He has long attempted to force a vote on similar measures to divvy up his home state.

“Three states will get us better infrastructure, better education and lower taxes,” Draper told the Los Angeles Times last year, after submitting his most recent proposal. “States will be more accountable to us and can cooperate and compete for citizens.”

A California environmental group, the Planning and Conservation League (PCL), opposed the measure.

“California’s Constitution rightfully ensures that voters have a voice in public policy through direct democracy,” Howard Penn, the PCL’s executive director, said in a statement. “If those constitutional safeguards mean anything, they should prevent a billionaire from circumventing the constitutionally required process for making such sweeping changes to our government.”

The high court gave Draper 30 days to respond to the ruling.

If such a measure to divide the state were to pass someday, it would most likely require approval from the U.S. Congress. No U.S. state has been divided since West Virginia broke off from Virginia in 1863, during the Civil War.

WhatsApp Makes Changes in India After Deadly Attacks

WhatsApp has announced changes for its 200 million users in India following the spread of viral messages via the app that resulted in deadly mob attacks.

India’s government has threatened to take WhatsApp to court, saying “…the medium used for such propagation cannot evade responsibility and accountability.”  The information technology ministry said, “If they remain mute spectators they are liable to be treated as abettors and thereafter face consequent legal action.”  

The Facebook-owned messaging app said it will limit Indian users’ ability to forward messages, allowing only five contacts at a time to receive them.

The firm said it will also remove the quick forward button placed next to media messages.

Both moves are designed to make stop the mass forwards that have resulted in the mob attacks.

India is WhatsApp’s largest market.

WhatsApp Makes Changes in India After Deadly Attacks

WhatsApp has announced changes for its 200 million users in India following the spread of viral messages via the app that resulted in deadly mob attacks.

India’s government has threatened to take WhatsApp to court, saying “…the medium used for such propagation cannot evade responsibility and accountability.”  The information technology ministry said, “If they remain mute spectators they are liable to be treated as abettors and thereafter face consequent legal action.”  

The Facebook-owned messaging app said it will limit Indian users’ ability to forward messages, allowing only five contacts at a time to receive them.

The firm said it will also remove the quick forward button placed next to media messages.

Both moves are designed to make stop the mass forwards that have resulted in the mob attacks.

India is WhatsApp’s largest market.

Pompeo: US Won’t Send Any Americans to Russia for Questioning

U.S. Secretary of State Mike Pompeo says the United States will not send Americans to Russia for questioning. Russian President Vladimir Putin offered to let U.S. investigators question officials in Moscow about Russia’s interference in U.S. 2016 elections if Russian investigators are allowed to question American officials. U.S. President Donald Trump called Putin’s proposal an “incredible offer.” But in an interview with VOA on Thursday, Pompeo rejected the idea. Zlatica Hoke reports.

Pompeo: US Won’t Send Any Americans to Russia for Questioning

U.S. Secretary of State Mike Pompeo says the United States will not send Americans to Russia for questioning. Russian President Vladimir Putin offered to let U.S. investigators question officials in Moscow about Russia’s interference in U.S. 2016 elections if Russian investigators are allowed to question American officials. U.S. President Donald Trump called Putin’s proposal an “incredible offer.” But in an interview with VOA on Thursday, Pompeo rejected the idea. Zlatica Hoke reports.

Trump Invites Putin to a Summit in US

U.S. President Donald Trump is inviting Russian President Vladimir Putin to a second summit meeting. The announcement came as the storm of criticism and confusion that followed the first summit is still making headlines and getting the attention of the U.S. Congress. Here to explain is VOA’s Carolyn Presutti at the White House.

Trump Invites Putin to a Summit in US

U.S. President Donald Trump is inviting Russian President Vladimir Putin to a second summit meeting. The announcement came as the storm of criticism and confusion that followed the first summit is still making headlines and getting the attention of the U.S. Congress. Here to explain is VOA’s Carolyn Presutti at the White House.

China Boosts Liquidity as Trade War Threatens Economy

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.

China Boosts Liquidity as Trade War Threatens Economy

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.

Rosenstein Defends Charging Foreign Agents US Can’t Arrest

The top law enforcement official overseeing the probe of Russian meddling in the 2016 election is defending the prosecution of foreign agents who may never see the inside of a U.S. courtroom.

Speaking Thursday at the Aspen Security Forum in Colorado, Deputy Attorney General Rod Rosenstein also said the Justice Department will notify the U.S. public when it identifies efforts by foreign government to target U.S. politics. Rosenstein unveiled a report identifying the major cyber threats that the U.S. faces.

“Exposing schemes to the public is an important way to neutralize them,” he said. “The American people have a right to know if foreign governments are targeting them with propaganda.”

He offered a rebuttal to criticism that charging foreign agents involved in cyber-attacks or covert campaigns to sow dissent is futile if they are unlikely to be extradited.

“That is a shortsighted view,” he said.

Indictments as deterrent

The debate has been sparked by the probe of special counsel Robert Mueller, who has indicted more than two dozen Russian nationals on charges related to Russia’s meddling in the election.

Rosenstein said such indictments can act as a deterrent.

“People who thought they were safely under the protection of foreign governments when they committed crimes against America sometimes later find themselves in federal prisons,” he said.

He added that at a minimum, the indictments impede the suspects from traveling to other countries that might extradite them. He said revealing the charges also serves to air the allegations to the U.S. public, bolstering confidence in the justice system.

More active approach

Rosenstein signaled a more active approach by the Justice Department to counter foreign influence and cyber operations. The report outlines how the department will work to expose the foreign efforts without damaging counter-intelligence efforts or wading into U.S. politics.

“The challenge calls for the application of neutral principles,” he said.

More broadly, the report identifies six categories of cyber threats and current efforts to counter them.

Rosenstein Defends Charging Foreign Agents US Can’t Arrest

The top law enforcement official overseeing the probe of Russian meddling in the 2016 election is defending the prosecution of foreign agents who may never see the inside of a U.S. courtroom.

Speaking Thursday at the Aspen Security Forum in Colorado, Deputy Attorney General Rod Rosenstein also said the Justice Department will notify the U.S. public when it identifies efforts by foreign government to target U.S. politics. Rosenstein unveiled a report identifying the major cyber threats that the U.S. faces.

“Exposing schemes to the public is an important way to neutralize them,” he said. “The American people have a right to know if foreign governments are targeting them with propaganda.”

He offered a rebuttal to criticism that charging foreign agents involved in cyber-attacks or covert campaigns to sow dissent is futile if they are unlikely to be extradited.

“That is a shortsighted view,” he said.

Indictments as deterrent

The debate has been sparked by the probe of special counsel Robert Mueller, who has indicted more than two dozen Russian nationals on charges related to Russia’s meddling in the election.

Rosenstein said such indictments can act as a deterrent.

“People who thought they were safely under the protection of foreign governments when they committed crimes against America sometimes later find themselves in federal prisons,” he said.

He added that at a minimum, the indictments impede the suspects from traveling to other countries that might extradite them. He said revealing the charges also serves to air the allegations to the U.S. public, bolstering confidence in the justice system.

More active approach

Rosenstein signaled a more active approach by the Justice Department to counter foreign influence and cyber operations. The report outlines how the department will work to expose the foreign efforts without damaging counter-intelligence efforts or wading into U.S. politics.

“The challenge calls for the application of neutral principles,” he said.

More broadly, the report identifies six categories of cyber threats and current efforts to counter them.

Cyberattacks on 2018 US Political Campaigns Already Underway

Hackers targeted the campaigns of at least three candidates running for Congress in the upcoming 2018 U.S. elections, but the attacks were detected and thwarted, a Microsoft executive said Thursday.

The attempted attacks tried to use a fake Microsoft domain as a landing page for phishing attacks, said Tom Burt, Microsoft vice president for customer security and trust. He refused to name which candidates were targeted, citing privacy concerns.

“They were all people who, because of their positions, might have been interesting targets from an espionage standpoint, as well as an election disruption standpoint,” Burt told an audience at the annual Aspen Security Forum in Aspen, Colorado.

He also did not identify the source of the phishing attacks, though the tactic was similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Burt said Microsoft coordinated with the U.S. government and was able to take down the fake domains. He also said none of the campaign staffers targeted by the phishing attacks were infected.

​More attacks are coming

Thursday’s revelation came in the wake of U.S. President Donald Trump’s news conference Monday in Helsinki, Finland, after his meeting with Russian President Vladimir Putin. Trump sided with Putin, supporting the Russian leader’s assertions that his country did not meddle with the 2016 U.S. presidential election.

Trump’s comments, which directly contradicted the findings of the U.S. intelligence community, have drawn harsh criticism from politicians, and former diplomatic and intelligence officials.

Current intelligence and security officials have warned repeatedly that not only was Russia responsible for meddling in the 2016 election, but that more attacks — both in the form of hacks and in the form of more subtle information operations — are coming.

Russia taking lead

“What we assessed and reassessed and have carefully gone over still stands,” U.S. Director of National Intelligence Dan Coats said of Russia’s efforts.

“It’s undeniable that the Russians are taking the lead on this,” Coats added, speaking during an appearance at the same security forum. “They are the ones who are trying to undermine our basic values, divide us with our allies.”

But U.S. and private sector officials say that, at least to this point, Russian efforts to influence the 2018 elections appear to be somewhat subdued.

“We’re not seeing the targeting of the actual state and local election systems that we saw in 2016 right now,” said Jeanette Manfra, the Department of Homeland Security’s assistant secretary for cybersecurity.

New tools working

For now, some leading private sector technology and social media companies agree.

Facebook, which Russia used to run ads and false news stories as part of its 2016 influence campaign, thinks some of that could be related to more awareness and crackdowns on the fake accounts Russian-linked operatives had been using.

“The new tools that would identify and remove fake accounts like the IRA [Russia’s Internet Research Agency] was running, combined with the new requirements for transparency in advertising, are such that I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said.

“But we are watching for that activity,” Bickert said.

Microsoft’s Burt is also cautious, despite his experts “not seeing the same level of activity by the Russian activity groups” as they did two years ago.

“It doesn’t mean we’re not going to see it,” he said. “There’s a lot of time left.”

“I think we should all be prepared, given that capability and will, that they’ll do it again,” U.S. Homeland Security Secretary Kirstjen Nielsen warned Thursday. “We would be foolish to think they’re not.”

Cyberattacks on 2018 US Political Campaigns Already Underway

Hackers targeted the campaigns of at least three candidates running for Congress in the upcoming 2018 U.S. elections, but the attacks were detected and thwarted, a Microsoft executive said Thursday.

The attempted attacks tried to use a fake Microsoft domain as a landing page for phishing attacks, said Tom Burt, Microsoft vice president for customer security and trust. He refused to name which candidates were targeted, citing privacy concerns.

“They were all people who, because of their positions, might have been interesting targets from an espionage standpoint, as well as an election disruption standpoint,” Burt told an audience at the annual Aspen Security Forum in Aspen, Colorado.

He also did not identify the source of the phishing attacks, though the tactic was similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Burt said Microsoft coordinated with the U.S. government and was able to take down the fake domains. He also said none of the campaign staffers targeted by the phishing attacks were infected.

​More attacks are coming

Thursday’s revelation came in the wake of U.S. President Donald Trump’s news conference Monday in Helsinki, Finland, after his meeting with Russian President Vladimir Putin. Trump sided with Putin, supporting the Russian leader’s assertions that his country did not meddle with the 2016 U.S. presidential election.

Trump’s comments, which directly contradicted the findings of the U.S. intelligence community, have drawn harsh criticism from politicians, and former diplomatic and intelligence officials.

Current intelligence and security officials have warned repeatedly that not only was Russia responsible for meddling in the 2016 election, but that more attacks — both in the form of hacks and in the form of more subtle information operations — are coming.

Russia taking lead

“What we assessed and reassessed and have carefully gone over still stands,” U.S. Director of National Intelligence Dan Coats said of Russia’s efforts.

“It’s undeniable that the Russians are taking the lead on this,” Coats added, speaking during an appearance at the same security forum. “They are the ones who are trying to undermine our basic values, divide us with our allies.”

But U.S. and private sector officials say that, at least to this point, Russian efforts to influence the 2018 elections appear to be somewhat subdued.

“We’re not seeing the targeting of the actual state and local election systems that we saw in 2016 right now,” said Jeanette Manfra, the Department of Homeland Security’s assistant secretary for cybersecurity.

New tools working

For now, some leading private sector technology and social media companies agree.

Facebook, which Russia used to run ads and false news stories as part of its 2016 influence campaign, thinks some of that could be related to more awareness and crackdowns on the fake accounts Russian-linked operatives had been using.

“The new tools that would identify and remove fake accounts like the IRA [Russia’s Internet Research Agency] was running, combined with the new requirements for transparency in advertising, are such that I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said.

“But we are watching for that activity,” Bickert said.

Microsoft’s Burt is also cautious, despite his experts “not seeing the same level of activity by the Russian activity groups” as they did two years ago.

“It doesn’t mean we’re not going to see it,” he said. “There’s a lot of time left.”

“I think we should all be prepared, given that capability and will, that they’ll do it again,” U.S. Homeland Security Secretary Kirstjen Nielsen warned Thursday. “We would be foolish to think they’re not.”

Trump Administration Wants to Scrap Some Species Protection

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.

Trump Administration Wants to Scrap Some Species Protection

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.

US Seen Receiving Frosty Reception at G-20 Meeting

The financial leaders of the world’s 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other’s goods.

The United States will seek to persuade Japan and the European Union to join it in taking a more aggressive stance against Chinese trade practices at the G-20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official who spoke on condition on anonymity.

But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth.

“U.S. trading partners are unlikely to be in a conciliatory mood,” said Eswar Prasad, international trade professor at Cornell University and former head of the International Monetary Fund’s China Division. “[U.S.] hostile actions against long-standing trading partners and allies have weakened its economic and geopolitical influence.”

At the close of the last G-20 meeting in Argentina in March, the financial leaders representing 75 percent of world trade and 85 percent of gross domestic product released a joint statement that rejected protectionism and urged “further dialogue,” to little concrete effect.

Since then, the United States and China have slapped tariffs on $34 billion of each other’s imports and U.S. President Donald Trump has threatened further tariffs on $200 billion worth of Chinese goods unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

Trump has said the U.S. tariffs aim to close the $335 billion annual U.S. trade deficit with China.

U.S. Treasury Minister Steven Mnuchin has no plans for a bilateral meeting with his Chinese counterpart in Buenos Aires, a U.S official said this week.

Growth concerns

Rising trade tensions have led to concerns within the Japanese government over currency volatility, said a senior Japanese G-20 official who declined to be named. Such volatility could prompt an appreciation in the safe-haven yen and threaten Japanese exports.

Trump’s metals tariffs prompted trade partners to retaliate with their own tariffs on U.S. goods ranging from whiskey to motorcycles. The United States has said it will challenge those tariffs at the World Trade Organization.

The EU finance ministers signed a joint text last week that will form their mandate for this weekend’s meeting, criticizing “unilateral” U.S. trade actions, Reuters reported. The ministers will stress that trade restrictions “hurt everyone,” a German official said.

In a briefing note prepared for the G-20 participants, the International Monetary Fund said if all of Trump’s threatened tariffs — and equal retaliation — went into effect, the global economy could lose up to 0.5 percent of GDP, or $430 billion, by 2020.

Global growth also may have peaked at 3.9 percent for 2018 and 2019, and downside risks have risen due to the tariff spat, the IMF said.

“While all countries will ultimately be worse off in a trade conflict, the U.S. economy is especially vulnerable,” IMF Managing Director Christine Lagarde wrote in a blog post. “Policymakers can use this G-20 meeting to move past

self-defeating tit-for-tat tariffs.”

Trade is not on host country Argentina’s published agenda for the July 21-22 ministerial, which focuses on the “future of work” and infrastructure finance. But it will likely be discussed during a slot devoted to risks facing the global

economy, much as in March, according to an Argentine official involved in G-20 preparations, who asked not be named.

US Seen Receiving Frosty Reception at G-20 Meeting

The financial leaders of the world’s 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other’s goods.

The United States will seek to persuade Japan and the European Union to join it in taking a more aggressive stance against Chinese trade practices at the G-20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official who spoke on condition on anonymity.

But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth.

“U.S. trading partners are unlikely to be in a conciliatory mood,” said Eswar Prasad, international trade professor at Cornell University and former head of the International Monetary Fund’s China Division. “[U.S.] hostile actions against long-standing trading partners and allies have weakened its economic and geopolitical influence.”

At the close of the last G-20 meeting in Argentina in March, the financial leaders representing 75 percent of world trade and 85 percent of gross domestic product released a joint statement that rejected protectionism and urged “further dialogue,” to little concrete effect.

Since then, the United States and China have slapped tariffs on $34 billion of each other’s imports and U.S. President Donald Trump has threatened further tariffs on $200 billion worth of Chinese goods unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

Trump has said the U.S. tariffs aim to close the $335 billion annual U.S. trade deficit with China.

U.S. Treasury Minister Steven Mnuchin has no plans for a bilateral meeting with his Chinese counterpart in Buenos Aires, a U.S official said this week.

Growth concerns

Rising trade tensions have led to concerns within the Japanese government over currency volatility, said a senior Japanese G-20 official who declined to be named. Such volatility could prompt an appreciation in the safe-haven yen and threaten Japanese exports.

Trump’s metals tariffs prompted trade partners to retaliate with their own tariffs on U.S. goods ranging from whiskey to motorcycles. The United States has said it will challenge those tariffs at the World Trade Organization.

The EU finance ministers signed a joint text last week that will form their mandate for this weekend’s meeting, criticizing “unilateral” U.S. trade actions, Reuters reported. The ministers will stress that trade restrictions “hurt everyone,” a German official said.

In a briefing note prepared for the G-20 participants, the International Monetary Fund said if all of Trump’s threatened tariffs — and equal retaliation — went into effect, the global economy could lose up to 0.5 percent of GDP, or $430 billion, by 2020.

Global growth also may have peaked at 3.9 percent for 2018 and 2019, and downside risks have risen due to the tariff spat, the IMF said.

“While all countries will ultimately be worse off in a trade conflict, the U.S. economy is especially vulnerable,” IMF Managing Director Christine Lagarde wrote in a blog post. “Policymakers can use this G-20 meeting to move past

self-defeating tit-for-tat tariffs.”

Trade is not on host country Argentina’s published agenda for the July 21-22 ministerial, which focuses on the “future of work” and infrastructure finance. But it will likely be discussed during a slot devoted to risks facing the global

economy, much as in March, according to an Argentine official involved in G-20 preparations, who asked not be named.

Trump Slams Record EU Fine Against Google

President Donald Trump lashed out Thursday after Brussels hit US tech giant Google with a record fine, and warned he would no longer allow Europe to take “advantage” of the United States.

“I told you so! The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google,” Trump tweeted in reaction to the 4.34 billion euro penalty imposed on Google for abusing the dominance of its mobile operating system.

“They truly have taken advantage of the US, but not for long!” he said.

In announcing the fine on Wednesday, EU Competition Commissioner Margrethe Vestager accused Google of using the Android system’s near-stranglehold on smartphones and tablets to promote the use of its own Google search engine while shutting out rivals.

The decision, which followed a three-year EU investigation, comes as fears of a transatlantic trade war mount because of President Donald Trump’s decision to impose tariffs on European steel and aluminum exports.

The new sanction nearly doubles the previous record EU antitrust fine of 2.4 billion euros, which also targeted Google, in that case for the Silicon Valley titan’s shopping comparison service in 2017.

Denmark’s Vestager ordered Google to “put an effective end to this conduct within 90 days or face penalty payments” of up to five percent of its average daily turnover.

The Google decision came one week before European Commission chief Jean-Claude Juncker was due to travel to the United States for crucial talks with the American president on the tariffs dispute and other issues.

Google chief Sundar Pichai immediately said the firm would appeal.

“Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal,” he said in a blog post.

Google provides Android free to smartphone manufacturers and generates most of its revenue from selling advertisements that appear along with search results.

The EU says Android is used on around 80 percent of mobile devices, both in Europe and worldwide.

The Android case originated when a lobbying group called FairSearch — with members then including huge tech companies like Microsoft, Nokia and Oracle — complained that Google was unfairly tilting the field of competition.

Google’s parent company Alphabet ranked as the fifth largest information technology company in the world in 2017, with global revenue of $111 billion, according to Forbes magazine.

That figure represented a doubling in global revenue in only four years.

Trump Slams Record EU Fine Against Google

President Donald Trump lashed out Thursday after Brussels hit US tech giant Google with a record fine, and warned he would no longer allow Europe to take “advantage” of the United States.

“I told you so! The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google,” Trump tweeted in reaction to the 4.34 billion euro penalty imposed on Google for abusing the dominance of its mobile operating system.

“They truly have taken advantage of the US, but not for long!” he said.

In announcing the fine on Wednesday, EU Competition Commissioner Margrethe Vestager accused Google of using the Android system’s near-stranglehold on smartphones and tablets to promote the use of its own Google search engine while shutting out rivals.

The decision, which followed a three-year EU investigation, comes as fears of a transatlantic trade war mount because of President Donald Trump’s decision to impose tariffs on European steel and aluminum exports.

The new sanction nearly doubles the previous record EU antitrust fine of 2.4 billion euros, which also targeted Google, in that case for the Silicon Valley titan’s shopping comparison service in 2017.

Denmark’s Vestager ordered Google to “put an effective end to this conduct within 90 days or face penalty payments” of up to five percent of its average daily turnover.

The Google decision came one week before European Commission chief Jean-Claude Juncker was due to travel to the United States for crucial talks with the American president on the tariffs dispute and other issues.

Google chief Sundar Pichai immediately said the firm would appeal.

“Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal,” he said in a blog post.

Google provides Android free to smartphone manufacturers and generates most of its revenue from selling advertisements that appear along with search results.

The EU says Android is used on around 80 percent of mobile devices, both in Europe and worldwide.

The Android case originated when a lobbying group called FairSearch — with members then including huge tech companies like Microsoft, Nokia and Oracle — complained that Google was unfairly tilting the field of competition.

Google’s parent company Alphabet ranked as the fifth largest information technology company in the world in 2017, with global revenue of $111 billion, according to Forbes magazine.

That figure represented a doubling in global revenue in only four years.

US Intelligence Chief is Tough on Russia, at Odds with Trump

National Intelligence Director Dan Coats’ drumbeat of criticism against Russia is clashing loudly with President Donald Trump’s pro-Kremlin remarks, leaving the soft-spoken spy chief in an uncomfortable – and perhaps perilous – seat in the administration.

Trump’s remarks after Wednesday’s Cabinet meeting, where he appeared to deny the longtime U.S. foe was still targeting American elections, are just the latest in a growing list of statements that conflict with Coats’. His job is to share the work of the 17 intelligence agencies he oversees with the president.

 

Coats, who will be speaking Thursday at a national security conference in Aspen, Colorado, is a former Republican lawmaker. He was banned from traveling to Russia in 2014 for calling out its annexation of Crimea, and he has continued to raise the alarm on Russia since his appointment by Trump as intelligence chief in March 2017.

 

That’s left Coats in a tight spot. Trump has been determined to forge closer ties with Russian President Vladimir Putin, culminating in this week’s extraordinary summit in Helsinki. The disconnect with Coats was laid bare after Trump sparked outrage back home by giving credence to Russia’s denial of interference in the 2016 U.S. election as he stood alongside Putin.

 

Back in Washington, Coats was quick to issue a statement Monday to rebut that position. He restated the U.S. intelligence assessment about Russian meddling and “their ongoing, pervasive efforts to undermine our democracy.”

 

Former intelligence officials say Coats is just speaking truth to power, a mantra often used in describing the intelligence agencies’ historical relationship with any president. But in the Trump administration, Coats could be walking into a minefield, given the president’s track record of firing officials who don’t toe his line.

 

Michael Morell, former deputy and acting director of the CIA, said Coats and other national security officials in the Trump administration are just doing their jobs, and the president undermines them and the institutions they lead when he makes “inaccurate statements.”

 

“By doing this, the president is undermining our national security,” Morell said.

 

Trump did walk back his post-Putin summit comments on Tuesday, saying he’d misspoken when he said he saw no reason why it was Russia that had interfered in the 2016 election. He also said he accepted the intelligence agencies’ conclusion of Russian meddling. But he added, “It could be other people also. A lot of people out there.”

 

The president’s mixed messaging grew even more confusing Wednesday. He was asked if Russia was still targeting the U.S. and answered “no”  – a statement that Morell contended was “flat-out wrong” because the Russians never stopped trying to interfere in the U.S. democracy.

 

White House press secretary Sarah Huckabee Sanders said later that Trump does believe that Russia may try to target U.S. elections again and the “threat still exists.”

 

When asked Wednesday in a CBS News interview whether Trump agrees with Coats that the Russian threat is ongoing, the president said he did.

 

“Well, I accept. I mean, he’s an expert. This is what he does. He’s been doing a very good job. I have tremendous faith in Dan Coats, and if he says that, I would accept that. I will tell you though, it better not be. It better not be,” Trump said.

 

Trump has had a tense relationship with U.S. intelligence agencies since before he was elected, largely because of their conclusion that Putin ordered “an influence campaign” in 2016 aimed at helping the Trump campaign and harming his Democratic opponent, Hillary Clinton.

 

Earlier in the administration, Coats’ voice was drowned out by the more outspoken Mike Pompeo, who was CIA director before Trump tapped him as secretary of state. Now with Pompeo heading the State Department, Coats has been thrust into the limelight as the voice of the intelligence community. In Aspen on Thursday, he’s expected to outline the cyberthreats the U.S. faces from Russia as well as other countries, such as China, North Korea and Iran.

 

Coats, 75, has been immersed in Washington politics for years. He served in the House in the 1980s and the Senate in the 1990s and 2010s and was the U.S. ambassador to Germany from 2001 to 2005. In 2014, Coats, who was a member of the Senate Intelligence Committee, denounced Russia’s interference in eastern Ukraine and was banned from Russia.

 

Coats blew it off: “Our summer vacation in Siberia is a no-go,” he joked.

 

Still, Coats is not known as being flippant. He’s prided himself as being a steady voice, but it’s clear he is no fan of Russia.

 

In comments at a Washington think tank last week, he said, “The Russian bear … is out of the cave, hungry and clawing for more territory, more influence and using the same tactics we saw in the Cold War and more.”

 

He said the “more” is cyberthreats that are targeting U.S. government and businesses in the energy, nuclear, water, aviation and critical-manufacturing sectors. He said that while there had not been the scale of electoral interference detected in 2016, “we fully realize that we are just one click on a keyboard away from a similar situation repeating itself.”

 

Those tough remarks came just days before the Trump-Putin summit – and that was not the first time Coats has made statements starkly at odds with his boss.

 

On June 8, when Trump suggested at a summit in Canada that Russia should be asked to rejoin the G-7 organization of industrialized nations, Coats was making a speech in Normandy, France. There, Coats offered a laundry list of what he said were recent malign activities by Moscow. Those included political hacking in France, Germany and Norway, a damaging cyberassault on Ukraine, and Russian agents’ alleged attempt to kill two people in Britain with a nerve agent.

 

“These Russian actions are purposeful and premeditated and they represent an all-out assault, by (Russian President) Vladimir Putin, on the rule of law, Western ideals and democratic norms,” he said.

 

 

US Intelligence Chief is Tough on Russia, at Odds with Trump

National Intelligence Director Dan Coats’ drumbeat of criticism against Russia is clashing loudly with President Donald Trump’s pro-Kremlin remarks, leaving the soft-spoken spy chief in an uncomfortable – and perhaps perilous – seat in the administration.

Trump’s remarks after Wednesday’s Cabinet meeting, where he appeared to deny the longtime U.S. foe was still targeting American elections, are just the latest in a growing list of statements that conflict with Coats’. His job is to share the work of the 17 intelligence agencies he oversees with the president.

 

Coats, who will be speaking Thursday at a national security conference in Aspen, Colorado, is a former Republican lawmaker. He was banned from traveling to Russia in 2014 for calling out its annexation of Crimea, and he has continued to raise the alarm on Russia since his appointment by Trump as intelligence chief in March 2017.

 

That’s left Coats in a tight spot. Trump has been determined to forge closer ties with Russian President Vladimir Putin, culminating in this week’s extraordinary summit in Helsinki. The disconnect with Coats was laid bare after Trump sparked outrage back home by giving credence to Russia’s denial of interference in the 2016 U.S. election as he stood alongside Putin.

 

Back in Washington, Coats was quick to issue a statement Monday to rebut that position. He restated the U.S. intelligence assessment about Russian meddling and “their ongoing, pervasive efforts to undermine our democracy.”

 

Former intelligence officials say Coats is just speaking truth to power, a mantra often used in describing the intelligence agencies’ historical relationship with any president. But in the Trump administration, Coats could be walking into a minefield, given the president’s track record of firing officials who don’t toe his line.

 

Michael Morell, former deputy and acting director of the CIA, said Coats and other national security officials in the Trump administration are just doing their jobs, and the president undermines them and the institutions they lead when he makes “inaccurate statements.”

 

“By doing this, the president is undermining our national security,” Morell said.

 

Trump did walk back his post-Putin summit comments on Tuesday, saying he’d misspoken when he said he saw no reason why it was Russia that had interfered in the 2016 election. He also said he accepted the intelligence agencies’ conclusion of Russian meddling. But he added, “It could be other people also. A lot of people out there.”

 

The president’s mixed messaging grew even more confusing Wednesday. He was asked if Russia was still targeting the U.S. and answered “no”  – a statement that Morell contended was “flat-out wrong” because the Russians never stopped trying to interfere in the U.S. democracy.

 

White House press secretary Sarah Huckabee Sanders said later that Trump does believe that Russia may try to target U.S. elections again and the “threat still exists.”

 

When asked Wednesday in a CBS News interview whether Trump agrees with Coats that the Russian threat is ongoing, the president said he did.

 

“Well, I accept. I mean, he’s an expert. This is what he does. He’s been doing a very good job. I have tremendous faith in Dan Coats, and if he says that, I would accept that. I will tell you though, it better not be. It better not be,” Trump said.

 

Trump has had a tense relationship with U.S. intelligence agencies since before he was elected, largely because of their conclusion that Putin ordered “an influence campaign” in 2016 aimed at helping the Trump campaign and harming his Democratic opponent, Hillary Clinton.

 

Earlier in the administration, Coats’ voice was drowned out by the more outspoken Mike Pompeo, who was CIA director before Trump tapped him as secretary of state. Now with Pompeo heading the State Department, Coats has been thrust into the limelight as the voice of the intelligence community. In Aspen on Thursday, he’s expected to outline the cyberthreats the U.S. faces from Russia as well as other countries, such as China, North Korea and Iran.

 

Coats, 75, has been immersed in Washington politics for years. He served in the House in the 1980s and the Senate in the 1990s and 2010s and was the U.S. ambassador to Germany from 2001 to 2005. In 2014, Coats, who was a member of the Senate Intelligence Committee, denounced Russia’s interference in eastern Ukraine and was banned from Russia.

 

Coats blew it off: “Our summer vacation in Siberia is a no-go,” he joked.

 

Still, Coats is not known as being flippant. He’s prided himself as being a steady voice, but it’s clear he is no fan of Russia.

 

In comments at a Washington think tank last week, he said, “The Russian bear … is out of the cave, hungry and clawing for more territory, more influence and using the same tactics we saw in the Cold War and more.”

 

He said the “more” is cyberthreats that are targeting U.S. government and businesses in the energy, nuclear, water, aviation and critical-manufacturing sectors. He said that while there had not been the scale of electoral interference detected in 2016, “we fully realize that we are just one click on a keyboard away from a similar situation repeating itself.”

 

Those tough remarks came just days before the Trump-Putin summit – and that was not the first time Coats has made statements starkly at odds with his boss.

 

On June 8, when Trump suggested at a summit in Canada that Russia should be asked to rejoin the G-7 organization of industrialized nations, Coats was making a speech in Normandy, France. There, Coats offered a laundry list of what he said were recent malign activities by Moscow. Those included political hacking in France, Germany and Norway, a damaging cyberassault on Ukraine, and Russian agents’ alleged attempt to kill two people in Britain with a nerve agent.

 

“These Russian actions are purposeful and premeditated and they represent an all-out assault, by (Russian President) Vladimir Putin, on the rule of law, Western ideals and democratic norms,” he said.

 

 

Presidential Power Key Issue in Court Confirmation Fight 

President Donald Trump’s Supreme Court nominee, federal judge Brett Kavanaugh, can expect tough questions on a range of issues when he faces a Senate confirmation hearing sometime in the next few months.

Democrats are likely to pepper Kavanaugh with questions about his stance on abortion, gay rights and affirmative action. But another key area of interest is Kavanaugh’s expansive view of presidential power, something Democrats want to press him on with Trump in the White House.

When he was nominated at the White House earlier this month, Kavanaugh pledged to bring an independent mindset to the high court.

 

WATCH: Scope of Presidential Power Key Issue in Court Confirmation Fight

“I believe that an independent judiciary is the crown jewel of our constitutional republic,” he said. “If confirmed by the Senate, I will keep an open mind in every case, and I will always strive to preserve the Constitution of the United States and the American rule of law.”

Democrats have vowed to fight Kavanaugh’s nomination from the start, fearing his appointment could ensure a strongly conservative court for a generation. Several have also expressed concern about his views on executive power.

Kavanaugh’s experience

Before his confirmation as a federal judge in 2006, Kavanaugh got an up-close view of presidential power working in the White House of President George W. Bush. Before that, Kavanaugh worked with independent counsel Ken Starr in his investigation of President Bill Clinton in the late 1990s.

Reflecting on those experiences, Kavanaugh wrote an article in 2009 for the Minnesota Law Review that laid out his view on presidential power and the Constitution. Kavanaugh wrote that presidents “should be excused from the burdens of ordinary citizenship while serving in office.”

In Kavanaugh’s view, that includes excusing a president from having to deal with civil suits or criminal investigations while in office. 

“A president who is concerned about an ongoing criminal investigation is almost inevitably going to do a worse job as president,” he wrote.

​Skeptical Democrats

Democrats are expected to closely question him on the issue, especially in light of the ongoing Russia probe involving Trump and whether special counsel Robert Mueller might eventually try to compel the president to submit to an interview.

“Not only did Mr. Kavanaugh say that a president should not be subpoenaed, he said a president should not be investigated,” Senate Democratic leader Chuck Schumer said. “Mr. Kavanaugh, is the president above the law?”

Kavanaugh’s view of presidential power is not unusual among conservative legal scholars, Jonathan Turley of George Washington University said.

“Kavanaugh’s natural default position is Article II (of the Constitution) on presidential power. He tends to defer greatly to presidents,” Turley told The Associated Press. “That can only help President Trump if an issue goes before the court. But that is his philosophy. It does not mean he’s biased.”

Compelling a president

Some experts predict that if Kavanaugh is confirmed to the high court, he could find himself in the middle of a debate over whether a sitting president could be subpoenaed by an investigating special counsel like Mueller.

“So if, for example, the president chooses not to sit for a voluntary interview, and special counsel Mueller tries to subpoena the president,” ABC News legal analyst Kate Shaw said. “There is an open legal question about whether you can subpoena a sitting president, and that could end up very quickly going before the Supreme Court if there is a legal fight over it.”

Kavanaugh’s view worries liberal activists who will be pushing Democrats to press him during the confirmation process.

“Brett Kavanaugh has a very frighteningly wide view of presidential power, and I think that is something very much in play, given the investigations that are going on right now,” said Drew Courtney with People for the American Way, a liberal group that has lined up against Kavanaugh’s confirmation.

​Republican defenders

Kavanaugh’s Republican allies said they are prepared for a range of attacks on his record, including his stand on presidential power.

“That kind of cheap political fearmongering insults the intelligence of the American people, because Americans understand the difference between a political office and a judicial office,” Majority Leader Mitch McConnell said during a recent speech on the Senate floor.

A new POLITICO/Morning Consult poll shows Americans are divided along party lines when it comes to Kavanaugh’s confirmation. The poll found 71 percent of Republicans want Kavanaugh confirmed, while only 17 percent of Democrats support him.

A Quinnipiac poll from earlier this month found that American voters also want the Supreme Court to act as a check on Trump, by a margin of 65 percent to 24 percent. For Republicans, the poll found 48 percent supported that, while 37 percent did not.

Kavanaugh’s confirmation requires a majority vote in the Senate, where Republicans hold a narrow 51- to 49-seat margin over Democrats.