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

Snacks on Wheels: PepsiCo Tests Self-driving Robot Delivery

Forget vending machines, PepsiCo is testing a way to bring snacks directly to college students.

The chip and beverage maker says it will start making deliveries with self-driving robots on Thursday at the University of the Pacific in Stockton, California. Students will be able to order Baked Lay’s, SunChips or Bubly sparkling water on an app, and then meet the six-wheeled robot at more than 50 locations on campus.

Other companies have been using self-driving vehicles to deliver food. Last month, supermarket operator Kroger announced it would start delivering groceries in a driverless vehicle from a store in Scottsdale, Arizona.

The robots used at the University of the Pacific will move at speeds of up to 6 miles per hour, according to Robby Technologies, which makes the robots. Three workers on the campus will be refilling the robots with food and drinks and replacing the batteries with recharged ones when they go dead.

At first three robots will be used, but then grow to a fleet of five over time. The robots, which weigh 80 pounds and are less than 3 feet tall, drive on their own and stop when someone is in front of it, Robby says.

PepsiCo says it’s testing this way to deliver its snacks because more of its customers want a convenient way to buy them on their phones.

North Carolina Court Asked to Order GOP Win in US House Seat

The Republican in the nation’s last undecided congressional race is asking a North Carolina court to require that he be declared the winner because the now-defunct state elections board didn’t act.

A lawsuit Mark Harris filed Thursday claims the disbanded elections board had been declared unconstitutional, so its investigation into alleged ballot fraud by an operative hired by the Harris campaign was invalid.

The elections board was dissolved on Friday by state judges who in October declared its form unconstitutional but allowed investigations to continue. A revamped board takes effect Jan. 31.

Harris asks a trial-court judge to order the state elections director to certify the Republican as the winner.

 

Harris was being interviewed by state investigators Thursday, as all other U.S. House winners are sworn into office in Washington.

Chinese Craft First to Land on Moon’s Far Side

A Chinese spacecraft Thursday made the first-ever landing on the far side of the moon in the latest achievement for the country’s growing space program.

The relatively unexplored far side of the moon faces away from Earth and is also known as the dark side.

A photo taken by the lunar explorer Chang’e 4 at 11:40 a.m. and published online by the official Xinhua News Agency shows a small crater and a barren surface that appears to be illuminated by a light from the probe.

Chang’e 4 touched down on the surface at 10:26 a.m., the China National Space Administration said. The landing was announced by state broadcaster China Central Television at the top of its noon news broadcast.

Growing ambitions in space

The landing highlights China’s growing ambitions as a space power. In 2013, Chang’e 3, the predecessor craft to the current mission, made the first moon landing since the then-Soviet Union’s Luna 24 in 1976. The United States is the only other country that has carried out moon landings.

The work of Chang’e 4, which is carrying a rover, includes carrying out astronomical observations and probing the structure and mineral composition of the terrain.

“The far side of the moon is a rare quiet place that is free from interference of radio signals from Earth,” mission spokesman Yu Guobin said, according to Xinhua. “This probe can fill the gap of low-frequency observation in radio astronomy and will provide important information for studying the origin of stars and nebula evolution.”

Communicating

One challenge of operating on the far side of the moon is communicating with Earth. China launched a relay satellite in May so that Chang’e 4 can send back information.

China plans to send its Chang’e 5 probe to the moon next year and have it return to Earth with samples, the first time that will have been done since the Soviet mission in 1976.

A Long March 3B rocket carrying Chang’e 4 blasted off Dec. 8 from Xichang Satellite Launch Center in southern China. Chang’e is the name of a Chinese goddess who, according to legend, has lived on the moon for millennia.

Chewing the Fat with Pakistan’s BBQ Masters

The sweet aroma of mutton smoke drifts through a maze of crumbling alleyways, a barbecue tang that for decades has lured meat-eaters from across Pakistan to the frontier city of Peshawar.

The ancient city, capital of northwestern Khyber Pakhtunkhwa province, has retained its reputation for some of Pakistan’s tastiest cuisine despite bearing the brunt of the country’s bloody war with militancy.

University student Mohammad Fahad had long heard tales of Peshawar’s famed mutton.

“Earlier we heard of Peshawar being a dangerous place,” he told AFP — but security has improved in recent years, and he finally made the hours-long journey from the eastern city of Lahore to see if it could live up to the hype.

“We are here just to see what the secret to this barbecue is,” he says, excitedly awaiting his aromatic portion in Namak Mandi — “Salt Market” — located in the heart of Peshawar.

The hearty cuisine comes from generations-old recipes emanating from the nearby Pashtun tribal lands along the border with Afghanistan.

It is feted for its simplicity compared with the intricate curries and spicy dishes from Pakistan’s eastern plains and southern coast.

“Its popularity is owed to the fact that it is mainly meat-based and that always goes down well across the country,” says Pakistani cookbook author Sumayya Usmani.

The famed Nisar Charsi (hashish smoker) Tikka — named after its owner’s renowned habit — in Namak Mandi chalks up its decades of success to using very little in the way of spices.

For its barbecue offerings, tikkas — cuts of meat — are generously salted and sandwiched on skewers between cubes of fat for tenderness and taste, and slow-cooked over a wood fire.

Its other famed dish, karahi — or curry stew — is made with slices of mutton pan-cooked in heaped chunks of white fat carved from the sheep’s rump, along with sparing amounts of green chilli and tomatoes.

Both plates are served with stacks of oven-fresh naan and bowls of fresh yogurt.

“It is the best food in the entire world,” gushes co-owner Nasir Khan, adding that the restaurant sources some of the best meat in the country and serves customers from across Pakistan daily along with local regulars.

By Khan’s calculations, the restaurant goes through hundreds of kilograms of meat a day — or about two dozen sheep — with hundreds if not thousands served.

Hash and meat

The clientele at Nisar’s Charsi and other Salt Market eateries usually arrive in large groups, with experienced customers ordering food by the kilo and guiding cleaver-wielding butchers to their preferred cuts, which are then cooked immediately.

Peshawar’s improved security has given business a boost, Khan said.

“We had a lot of troubles and pains,” he admitted, remembering friends lost during the years of devastating bombings and suicide attacks.

But some customers said they had been loyal to Peshawar’s cuisine even during the bloodshed.

“I’ve been coming here for more than 20 years now,” said Hammad Ali, 35, who travelled to Peshawar with eight other colleagues from Pakistan’s capital Islamabad for a gluttonous lunch.

“This taste is unique, that’s why we have come all this way.”

Orders generally take close to an hour to prepare, with customers quaffing tea and occasionally smoking hash ahead of the meal.

“They smoke it openly here,” explained Nisar Charsi’s head chef Mukam Pathan. “When someone smokes one joint of hash, they eat around two kilos of meat.”

For those looking for a little less lamb, the city’s renowned chapli kebab offers an alternative.

The kebab is typically made of minced beef and a mix of spices kneaded into patties and deep fried on a simmering iron skillet.

Rokhan Ullah — owner of Tory Kebab House — said the dish is most popular on cold, winter days that see ravenous customers flocking to its four branches across the city, overwhelming staff and making orders hard to fill.

“They eat it with passion… because one enjoys hot food when the weather is cold,” explained Ullah, who plans to expand in major cities across Pakistan.

Customer Muhib Ullah has been eating kebabs three to four days a week for the last decade.

“This is the tastiest and most famous food in Peshawar,” he declared.

Hours-long meals

For regular barbecue eater Omar Aamir Aziz, it is not just the heaping portions of meat that attract foodies to Peshawari cuisine, but the culture that has built up around the meal.

Other cities in Pakistan and abroad have more in the way of entertainment and nightlife options.

But in deeply conservative Peshawar, eating out is the primary leisure activity.

Meals tend to last for hours after the meat has been consumed as conversation continues over steaming cups of green tea.

“That’s what we have and that’s our speciality,” says Aziz. “We’ve been doing this for two, three, four hundred years.”

Brazil’s Bolsonaro Grabs Control Over Indigenous Lands

New Brazilian President Jair Bolsonaro issued an executive order Wednesday making the Agriculture Ministry responsible for decisions concerning lands claimed by indigenous peoples, in a victory for agribusiness that will likely enrage environmentalists.

The temporary decree, which will expire unless it is ratified within 120 days by Congress, strips power over land claim decisions from indigenous affairs agency FUNAI.

It says the Agriculture Ministry will now be responsible for “identification, delimitation, demarcation and registration of lands traditionally occupied by indigenous people.”

The move stoked concern among environmentalists and rights groups that the far-right president, who took office Tuesday, will open up the vast Amazon rainforest and other ecologically sensitive areas of Brazil to greater commercial exploitation.

The executive order also moves the Brazilian Forestry Service, which promotes the sustainable use of forests and is linked to the Environment Ministry, under Agriculture Ministry control.

Additionally, the decree states that the Agriculture Ministry will be in charge of the management of public forests.

NGOs criticized

Bolsonaro, who enjoys strong support from Brazil’s powerful agribusiness sector, said during his campaign he was considering such a move, arguing that protected lands should be opened to commercial activities.

Brazil’s 900,000 indigenous people make up less than 1 percent of the population, but live on lands that stretch for 106.7 million hectares (264 million acres), or 12.5 percent of the national territory.

“Less than a million people live in these isolated places in Brazil, where they are exploited and manipulated by NGOs,” Bolsonaro tweeted, referring to non-profit groups. “Let us together integrate these citizens and value all Brazilians.”

Critics say Bolsonaro’s plan to open indigenous reservations to commercial activity will destroy native cultures and languages by integrating the tribes into Brazilian society.

Environmentalists say the native peoples are the last custodians of the Amazon, which is the world’s largest rainforest and is vital for climate stability.

Adding to the gloom for NGOs, Bolsonaro also signed an executive order to give his government potentially far-reaching and restrictive powers over non-governmental organizations working in Brazil.

The temporary decree mandates that the office of the Government Secretary, Carlos Alberto Dos Santos Cruz, “supervise, coordinate, monitor and accompany the activities and actions of international organizations and non-governmental organizations in the national territory.”

Good news for farm lobby

After she was sworn in on Wednesday, new Agriculture Minister Tereza Cristina Dias defended the farm sector from accusations it has grown at the expense of the environment, adding that the strength of Brazil’s farmers had generated “unfounded accusations” from unnamed international groups.

Dias used to be the head of the farm caucus in Brazil’s Congress, which has long pushed for an end to land measures that it argues hold back the agricultural sector.

“Brazil is a country with extremely advanced environmental legislation and is more than able to preserve its native forests,” Dias said. “Our country is a model to be followed, never a transgressor to be punished.”

In comments to reporters after her speech, she said that decisions over land rights disputes were a new responsibility for the Agriculture Ministry. However, she indicated that in practice, the demarcation of land limits would fall to a council of ministries, without giving further details.

Bartolomeu Braz, the president of the national chapter of Aprosoja, a major grain growers association, cheered Wednesday’s move to transfer indigenous land demarcation to the Agriculture Ministry.

“The new rules will be interesting to the farmers and the Indians, some of whom are already producing soybeans. The Indians want to be productive too,” he added.

Environmental fears

Three-time presidential candidate and former Environment Minister Marina Silva, who was beaten by Bolsonaro in October’s election, reacted with horror to the move.

“Bolsonaro has begun his government in the worst possible way,” she wrote on Twitter.

Dinamã Tuxá, a member of Brazil’s Association of Indigenous Peoples, said many isolated communities viewed Bolsonaro’s administration with fear.

“We are very afraid because Bolsonaro is attacking indigenous policies, rolling back environmental protections, authorizing the invasion of indigenous territories and endorsing violence against indigenous peoples,” said Tuxá.

Under the new plan, the indigenous affairs agency FUNAI will be moved into a new ministry for family, women and human rights.

A former army captain and longtime member of Congress, Bolsonaro said at his inauguration on Tuesday that he had freed the country from “socialism and political correctness.”

An admirer of Donald Trump, Bolsonaro has suggested he will follow the U.S. president’s lead and pull out of the Paris climate change accord.

In addition to the indigenous lands decree, the new administration issued decrees affecting the economy and society on Wednesday, while forging closer ties with the United States.

Lawyers Request Seizure of Japanese Assets for Korean Forced Labor

Lawyers for South Koreans forced into wartime labor have taken legal steps to seize the South Korean assets of a Japanese company they are trying to pressure into obeying a court ruling to provide them compensation.

Lawyer Lim Jae-sung said Thursday the court in the city of Pohang could decide in two or three weeks whether to accept the request to seize the 2.34 million shares Nippon Steel & Sumitomo Metal Corp. holds in its joint venture with South Korean steelmaker POSCO, which are estimated to be worth around $9.7 million.

Lim said Nippon Steel has been refusing to discuss compensation despite a ruling by South Korea’s Supreme Court in October that the company should pay 100 million won ($88,000) each to four plaintiffs who worked at its steel mills during Japan’s colonial rule of the Korean Peninsula. The court made a similar ruling on Japan’s Mitsubishi Heavy Industries in November, triggering a diplomatic spats between the countries.

It’s unlikely the Japanese companies will follow the South Korean rulings. The Japanese government has expressed strong regret over the rulings and considers all wartime compensation issues settled by a treaty both countries signed in 1965.

Lawyers for forced laborers for Nippon Steel had set a Dec. 24 deadline for the company to respond to their request to begin compensation discussions, but the steelmaker did not respond. Lim said the lawyers decided not to file for a court order that would force Nippon Steel to sell its shares in the South Korean joint venture because they still hope to “amicably” settle the matter through negotiations.

Among the four plaintiffs in the Nippon Steel case, only 94-year-old Lee Chun-sik has survived the legal battle, which extended nearly 14 years.

South Korea says Japan used about 220,000 wartime Korean forced laborers before the end of World War II.

US Senate Panel Sets Confirmation Hearing for Attorney General Nominee

The U.S. Senate Judiciary Committee said on Wednesday it would hold confirmation hearings on Jan. 15 and 16 for Attorney General nominee William Barr, who has come under fire from Democrats for his criticism of the special counsel’s Russia probe.

If confirmed by the Republican-controlled Senate, Barr would take over from Matthew Whitaker, who has been serving as acting attorney general since President Donald Trump forced out Jeff Sessions in November.

The committee’s statement did not give details on the planned hearings.

Senate Democratic leader Chuck Schumer said last month that a memo Barr wrote criticizing Special Counsel Robert Mueller’s investigation into possible Russian interference in U.S. elections should disqualify him from serving as attorney general.

Barr wrote in the June 2018 memo to senior Justice Department officials that Mueller “should not be able to demand that the President submit to an interrogation about alleged obstruction,” CNN has reported.

As attorney general, Barr would oversee the Russia investigation.

Trump has called the probe, which is examining any possible collusion between the Trump campaign and Russia, a witch hunt.

Barr previously served as attorney general from 1991 to 1993 under late President George H.W. Bush.

 

Apple Cuts Revenue Forecast on Weak China Sales 

Apple on Wednesday cut the revenue forecast for its latest quarter, citing fewer iPhone upgrades and weak sales in China, and its shares tumbled in after-hours trade. 

 

The company forecast $84 billion in revenue for its fiscal first quarter ended Dec. 29, which is below analysts’ estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecast revenue of between $89 billion and $93 billion. 

 

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in greater China,” Chief Executive Officer Tim Cook said in a letter to investors. “In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in greater China across iPhone, Mac and iPad.”

Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007. 

Sharp drop

 

Apple shares, which had been halted ahead of the announcement, skidded 7.7 percent in after-hours trade, dragging the company’s market value below $700 billion. 

 

A slew of brokerages reduced their first-quarter production estimates for iPhones after several component makers in November forecast weaker-than-expected sales, leading some market watchers to call the peak for iPhones in several key markets. 

 

On Apple’s earnings call in November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for the lower-than-anticipated sales estimates for the company’s fiscal first quarter. But Cook specifically said he “would not put China in that category” of countries with troubled growth. 

 

That all came before the damage to the Chinese economy from trade tensions with the United States became clear. On Wednesday, China’s central bank magazine said the country’s economic growth could fall below 6.5 percent in the fourth quarter as companies face increased difficulties there. 

 

Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy, a factor that has been exacerbated by the strong U.S. dollar. Apple tends to set its prices in U.S. dollars and charge a broadly equivalent amount in local currencies.  

 

“The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise,” James Cordwell, an analyst at Atlantic Equities, told Reuters. 

Shanahan Takes Helm at Pentagon as Trump Blasts Mattis

Acting U.S. Defense Secretary Patrick Shanahan’s first full day at the Pentagon’s helm was overshadowed Wednesday when President Donald Trump attacked his predecessor Jim Mattis.

Shanahan, who took the Pentagon’s top spot January 1 after serving as deputy defense secretary, was thrust onto the world stage when Mattis quit last month amid long-running disagreements with President Donald Trump.

During televised remarks ahead of his first cabinet meeting of 2019, Trump claimed he had “essentially fired” Mattis, even though the former Pentagon chief had pointedly quit his post over multiple disagreements.

“I’m not happy with what [Mattis has] done in Afghanistan and I shouldn’t be happy,” Trump said, as Shanahan sat by his side.

“I wish him well. I hope he does well. But as you know, President [Barack] Obama fired him and essentially so did I. I want results.”

Mattis, a former Marine general, was head of U.S. Central Command when Obama fired him in 2013 over his hawkish views on Iran.

While it is common for Trump to turn on former staffers and make demeaning remarks after they’ve left their post, the Mattis criticism is notable as Trump had often touted his admiration for the man he called “Mad Dog Mattis.”

The drama came after Shanahan sought to lay out his priorities for America’s massive defense department and how he intends to deal with an urgent list of geopolitical to-dos, including the U.S. withdrawal from Syria.

Soon after arriving at the Pentagon, Shanahan told colleagues to focus on the National Defense Strategy, a Mattis-era review that highlights “Great Power competition” with Russia and China.

“In 2019, the National Defense Strategy remains our guide. America’s military strength remains our focus,” Shanahan said in a New Year’s message on Twitter.

China as focus

A defense official added that Shanahan had told colleagues a major concern would be China.

“While we are focused on ongoing operations, Acting Secretary Shanahan told the team to remember: China, China, China,” the official said.

The U.S. accuses Beijing of an ongoing pattern of military and economic espionage, and has criticized China’s ambitious “Belt and Road” trade and infrastructure initiative as being a form of economic coercion.

Shanahan must oversee the pace at which the U.S. pulls some 2,200 troops out of Syria, following the president’s decision to exit the war-torn country.

Last month, Trump declared victory over the Islamic State group in Syria and claimed the jihadists had been beaten “badly,” even though they still number in the thousands.

He has since backpedaled and suggested more of a phased timeline for the withdrawal.

“We’re withdrawing,” Trump said, adding it would happen “over a period of time.”

At another point, Trump told Shanahan he wanted him to classify various reports, presumably including those detailing the security crisis in Afghanistan.

“For these reports to be given out and essentially given out to the enemy, that’s insane,” Trump told Shanahan.

“I don’t want it to happen anymore. Mr. Secretary, you understand that.”

According to U.S. officials, Trump is also mulling a 50 percent drawdown in Afghanistan — another momentous move that has left lawmakers and international allies fearing for what comes next.

Largely unknown

Little known outside business and Washington circles, Shanahan takes the world stage at a time of tumultuous changes and unpredictable foreign policy moves under Trump.

Shanahan, 56, did not serve in the military and before serving as deputy defense secretary he spent more than 30 years at Boeing.

While Shanahan has not always had day-to-day involvement in thorny geopolitical issues like Syria, officials say he is ready to tackle them and previously filled in for Mattis when he was traveling.

Despite a lack of foreign policy or military experience, Shanahan’s executive and technical knowledge made him well suited for the Pentagon’s number two position, which focuses more on the Defense Department’s business side.

But some critics have questioned whether a man with deep industry ties should be running the Pentagon.

At his confirmation hearing to be deputy, the late senator John McCain said a lack of detail in some of Shanahan’s foreign policy answers was “almost insulting,” and he expressed concerns that putting a former defense executive in the Pentagon could be akin to putting a fox “back in to the henhouse.”

Lieutenant Colonel Joe Buccino, Shanahan’s spokesman, said he had recused himself from any matters involving Boeing.

Also Wednesday, Shanahan announced that the Pentagon’s comptroller, David Norquist, will perform the duties of deputy secretary of defense.

 

 

Impact on US Government Widens on 12th Day of Shutdown 

A shutdown of about a quarter of the U.S. government rolled into its 12th day on Wednesday, with lawmakers and President Donald Trump divided over his demand for money for a border wall. 

 

The shutdown, which began Dec. 22, is the 19th to occur since the mid-1970s. Most have been brief. Trump’s latest is the third on the Republican president’s watch and already ranks among the longest ever. 

 

There were several very short shutdowns under Republican President Ronald Reagan. Under Democratic President Bill Clinton, there were two shutdowns, including the longest on record: 21 days in 1996. 

 

A 16-day shutdown happened under Democratic President Barack Obama in 2013 in a fight with Republicans over his health care law. 

 

The current shutdown has not affected three-quarters of the government, including the Department of Defense and the Postal Service, which have secure funding. But 800,000 employees from the departments of Homeland Security and Transportation and other agencies have been furloughed or are working without pay. 

 

Here is what is happening around the federal government: 

 

Smithsonian 

 

The Smithsonian museums and the National Zoo in Washington are closed because of the shutdown, according to the Smithsonian website. Among these is the popular National Museum of African American History and Culture, which opened in 2016. “The museum is closed due to the federal government shutdown. Timed entry pass holders will be emailed instructions on how to reschedule their visit,” the museum posted on Instagram.

​Homeland Security 

 

The department that oversees Customs and Border Protection, Immigration and Customs Enforcement, the Transportation Security Administration, the Coast Guard and the Secret Service is affected. But most employees are “essential,” so they are working without pay until a funding bill is passed. 

 

Of 245,000 agency employees, nearly 213,000 have been deemed “essential,” according to the department’s contingency plan. 

 

Housing and Urban Development 

 

Most of this department’s 7,500 employees are “non-essential”; only about 340 are working. Nearly 1,000 others may be called in for specific tasks, without pay. 

 

Public housing authorities and Native American tribal housing entities are not part of the federal government and so are not required to shut down. But the federal government provides some of their funding, so they may need to reduce or change operating hours.  

HUD, which oversees some housing loan and low-income housing payment programs, warned in its contingency plan that “a protracted shutdown could see a decline in home sales, reversing the trend toward a strengthening market that we’ve been experiencing.” 

 

Commerce 

 

The Department of Commerce’s Bureau of Economic Analysis and Census Bureau are not publishing economic data, including key figures on gross domestic product, inflation, personal income, spending, trade and new home sales, during the shutdown. 

 

Office of Personnel Management 

 

The agency that oversees the federal workforce has given advice to workers on dealing with landlords, mortgage lenders and other creditors, including sample letters explaining lost income because of the lack of federal funding. 

Federal Communications Commission

The FCC, which regulates radio and television broadcast and cable systems, said it would suspend most operations at midday on Thursday if the shutdown was still in effect. Work for “the protection of life and property” will continue. So will operations at the agency’s Office of Inspector General, the FCC’s internal watchdog. 

 

Coast Guard 

 

Members of the Coast Guard were due to get their final 2018 paychecks on Monday, their last until the government reopens. 

 

FEMA 

 

The Federal Emergency Management Agency was to resume issuing new flood insurance policies during the shutdown, reversing an earlier decision. 

​Interior

 

The National Park Service, under the umbrella of the Interior Department, is operating with a skeleton staff. Under its contingency plan, some parks may be accessible, with others closed completely. The National Park Service is providing no visitor services such as restrooms, facility and road maintenance, and trash collection. 

 

Transportation

Of its 55,000 employees, 20,400 have been put on leave. This excludes most of the Federal Aviation Administration, where 24,200 are working, and the Federal Highway Administration, where all 2,700 employees are funded through other sources. 

 

Air traffic control, hazardous material safety inspections and accident investigations continue, but some rulemaking, inspections and audits have been paused. 

 

Executive Office of the President 

 

An estimated 1,100 of the office’s 1,800 employees are on leave. This includes most of the Office of Management and Budget, which helps implement budget and policy goals.

Tesla Shares Drop on Price Cut, Disappointing Model 3 Deliveries

Shares in Tesla dropped as much as 9 percent on Wednesday on worries of future profitability, after the electric car maker cut U.S. prices for all its vehicles to offset lower green tax credits, while falling short on quarterly deliveries of its mass-market Model 3 sedan.

Analysts questioned whether the $2,000 price cut on all models signaled lowered demand in the United States, and ultimately whether the move would undermine nascent profitability at the Silicon Valley automaker, which has never posted an annual profit.

“In our view, this move could suggest that what many bulls assume to be a substantial backlog … for Tesla may be less robust,” wrote Bank of America analyst John Murphy in a client note.

Chief Executive Elon Musk, who has often set goals and deadlines that Tesla has failed to meet, surprised investors by delivering on his pledge to make Tesla profitable in the third quarter, for only the third time in its 15-year existence. But the company is unprofitable for the first nine months of 2018, and cash flow remains a concern for investors.

Pressure to deliver on promise

Musk has been under intense pressure to deliver on his promise of stabilizing production for the Model 3, which is seen crucial for easing a cash crunch and achieving long-term profitability. It said it was churning out almost 1,000 Model 3s daily, broadly in line with Musk’s promises but slightly short of Wall Street expectations.

The company said it would begin delivering Model 3s to Europe and China in February.

The price cut of $2,000 beginning on Wednesday on the Model 3 — as well as on its higher-priced Model S and Model X — took the market by surprise and weighed on the stock, pushing it down 9.4 percent in morning trade. Shares were last down 6.7 percent at $310.48.

The price cut comes as automakers expect U.S. new vehicle sales to weaken in 2019, and increased competition from new electric vehicle entrants. Tesla sales benefited from a $7,500 federal tax credit on electric vehicles throughout 2018, but that full credit expired at the end of 2018, and new buyers will now receive only half that amount.

Under a major tax overhaul passed by the Republican-controlled U.S. Congress in 2017, tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker. The tax credit is then reduced by 50 percent every six months until it phases out.

“The price cut is what’s driving the stock lower, as it openly acknowledges the sunset of subsidy dollars is a material headwind,” said Craig Irwin, an analyst with Roth Capital Partners.

But some said fears of eroded demand were overblown. Gene Munster of Loup Ventures calculated that the lowered tax credit equaled, on average, to a 3-percent discount on a Tesla. If Tesla had a demand issue, therefore, the company would have cut its prices by more than 3 percent, he wrote in a note.

 Also on Wednesday, General Motors said it had sold its 200,000th electric vehicle in 2018, similarly triggering a phase-out of the federal tax credit, according to a source.

Effect on profit?

Hargreaves Lansdown analyst Nicholas Hyett estimated in a client note that if Tesla continues to deliver cars at the current rate, the price cut will mean $700 million in lost revenue in 2019.

Wedbush analyst Daniel Ives, meanwhile, said the price cut was “a potential positive” for demand, “but not what the bulls wanted to hear on the impact to profitability and ultimately the bottom line.”

Tesla delivered 63,150 Model 3s in its fourth quarter, falling short of FactSet estimates of 64,900. Tesla said that based on its own compilation of analysts’ forecasts, its delivery numbers were in line with market expectations.

Bank of America analyst John Murphy wrote that the numbers were in line with market consensus, though below the bank’s estimate of 71,500 Model 3s.

Deliveries rise, forecasts missed

Total deliveries rose from the third quarter to 90,700 cars, but missed forecasts, which had been influenced by analysts’ expectations of a surge in buyers looking to cash in on the tax credit before year-end.

The automaker’s third-quarter pre-tax profit was around $3,200 per vehicle delivered, but for the first nine months of 2018 the company suffered a third-quarter loss per vehicle delivered of $8,019, according to Reuters calculations.

Overall, total production rose 8 percent to 86,555 vehicles. The company churned out 61,394 Model 3s, up from a total of 53,239 Model 3s in the third quarter.

“Tesla disappointed the market. The deliveries are below our estimates and the consensus estimates. I don’t expect that Tesla operates in the black in 2019,” said Frank Schwope, an analyst with NORD/LB.

 

How Do Workers Compete With Machines In the Near Future?

Many of today’s jobs did not exist 10 years ago. And a decade from now, technology’s march will likely replace many jobs of today.

Jennail Chavez, 25, said it was a mid-life crisis that brought her to a noisy classroom where sounds of hammering and sawing surrounded her. She was working at a warehouse and wanted to do something more rewarding. She found her answer back at school. After completing a two-year program at the Los Angles Trade Technical College, Chavez plans to be a general contractor. As a person who loves working with her hands, choosing a career in a male-dominated profession did not intimidate her. 

“I need a trade to match my personality and why not come into construction,” said Chavez.

But Chavez realized what she is learning to do may soon be replaced by machines.

“I actually came across a 3-D printer that actually built houses, and I was like ‘no, I’m actually in the industry to start building houses. What am I going to do?”

“Re-skilling is an essential part of so much of the economy right now,” said Laurence Frank, president of the Los Angeles Trade Technical College. He said workers constantly have to learn new skills to keep up with advancing technology.

Jacob Portillo is well aware of the need to keep up. He recently graduated from a program that trained him to work on diesel trucks, and already has had to adapt to changes in brake systems.

“Every year that passes by it evolves into something different, something new. Just keep learning and keep evolving along with the field,” Portillo said, who has found a good paying job working on trucks.

Jobs that require critical thinking will be hard to replace with robots. “Plumbers, people that work as electricians, where there has to be constant problem solving, constant decision making – those jobs are pretty secure,” Frank said. 

Soft skills such as communication, time management and teamwork will also help workers stay employed in the future.

“So, are we teaching people to be good communicators? Are we teaching people to work in teams? At secondary or post-secondary level? Are we teaching people to synthesize and analyze,” asked Jane Oates, president of Working Nation, a campaign to help American workers prepare for future jobs. 

Oates said many high schools and universities in the United States are not keeping up with the pace of technology to prepare students. “They’re teaching things that are antiquated because that’s what they have the professors to do,” Oates said, suggesting schools hire faculty from industry and develop apprenticeships with industry professionals. 

“In the 21st century, you are not ever going to be done learning and adapting and figuring out how you fit into the new paradigm,” said Oates.

After graduating from trade school, Jennail Chavez said she plans on working for a few years before returning to school to learn how to work with electric and solar power.

How Do Workers Compete With Machines In the Near Future?

Many of today’s jobs did not exist 10 years ago. And a decade from now, technology will likely replace some jobs we do today. What can workers do when machines become a prominent part of almost every industry? VOA’s Elizabeth Lee finds out from a technical college in Los Angeles.

Trump Invites Congressional Leaders to Briefing As Shutdown Continues

U.S. President Donald Trump has invited Democratic and Republican leaders in Congress to what the White House is calling a “border security briefing” Wednesday, while a partial government shutdown hits its 12th day.

Senate Majority Leader Mitch McConnell is expected to attend the session. It is not clear if Senate Minority Leader Chuck Schumer or fellow Democrat and House speaker-designate Nancy Pelosi will be there, or whether the two sides will use the meeting to negotiate plans to reopen the government.

Democrats will have a majority in the House of Representatives when the new Congress opens Thursday, and Pelosi plans to hold votes on a pair of bills that would fund most of the shuttered agencies through the end of September and the Department of Homeland Security through February 8.

The proposed legislation does not include the $5 billion in funding for a wall at the U.S.-Mexico border that Trump is demanding in any spending measure he signs. Democrats have previously offered $1.3 billion in funding for other border security measures instead.

White House Press Secretary Sarah Huckabee Sanders said in a statement late Tuesday that the Democratic plan is a “non-starter” and “fails to secure the border and puts the needs of other countries above the needs of our own citizens.”

Pelosi and Schumer have rejected Trump’s wall plan as “expensive and ineffective” and say Trump has yet to put forth a plan that has a chance to pass in both the House and Senate. 

Ahead of their potential meeting, Trump and Pelosi traded comments Tuesday on Twitter.

“Border Security and the Wall ‘thing’ and Shutdown is not where Nancy Pelosi wanted to start her tenure as Speaker! Let’s make a deal?” Trump said.

Pelosi responded that Trump “has given Democrats a great opportunity to show how we will govern responsibly & quickly to pass our plan to end the irresponsible #TrumpShutdown.”

Before the shutdown went into effect, the Senate passed a stopgap funding bill that would have funded the now-closed government operations through February 8 without the wall funding. The House passed its own bill that did have funding for the wall.

Pelosi said in a letter to colleagues Tuesday that lawmakers in the Senate should now support the new Democratic plan after their earlier action, and that if they reject it, then they would be “fully complicit in chaos and destruction” caused by the ongoing shutdown.

About 800,000 government workers have either been told to stay home or continue working without pay until the shutdown is resolved.

Tourists in Washington are seeing new effects of the impasse Wednesday as the Smithsonian museums and the National Zoo close until a deal is reached. The National Gallery of Art will be closed starting Thursday.

Romney Attacks Trump, Saying He Causes Dismay Around the World

Mitt Romney, the former Republican presidential candidate and incoming U.S. senator from Utah, sharply criticized President Donald Trump and suggested the U.S. leader had caused dismay around the world.

In a Washington Post essay published on Tuesday evening, Romney criticized a number of Trump’s actions in December.

“The appointment of senior persons of lesser experience, the abandonment of allies who fight beside us, and the president’s thoughtless claim that America has long been a ‘sucker’ in world affairs all defined his presidency down,” he wrote.

He added that “Trump’s words and actions have caused dismay around the world.”

The White House did not immediately respond to a request for comment.

Romney suggested that “on balance, (Trump’s) conduct over the past two years … is evidence that the president has not risen to the mantle of the office.”

Romney is staking out an independent position two days before he takes office on Thursday. It is unclear whether Trump will face a serious challenge in 2020 to securing the Republican Party’s presidential nomination.

Trump last February endorsed Romney’s run for a Senate seat in Utah.

During the 2016 presidential campaign, Romney excoriated Trump as a “fraud” who was “playing the American public for suckers.” Trump responded that Romney had “choked like a dog” in his unsuccessful 2012 campaign against Democratic President Barack Obama.

Despite Romney’s prior criticism, after Trump won the presidency in November 2016, he briefly considered tapping Romney as secretary of state.

In his essay on Tuesday, Romney said he “will speak out against significant statements or actions that are divisive, racist, sexist, anti-immigrant, dishonest or destructive to democratic institutions.”

Romney has strongly defended press freedom and challenged Trump’s repeated attacks on some news outlets as an “enemy of the people.”

“The media is essential to our Republic, to our freedom, to the cause of freedom abroad, and to our national security. It is very much our friend,” Romney wrote in an essay in November.

Global Tech Show to Celebrate Innovation Amid Mounting Concerns

Amid trade wars, geopolitical tensions and a decline in public trust, the technology sector is seeking to put its problems aside with the Consumer Electronics Show, the annual extravaganza showcasing futuristic innovations.

The Jan. 8-11 Las Vegas trade event offers a glimpse into new products and services designed to make people’s lives easier, fun and more productive, reaching across diverse sectors such as entertainment, health, transportation, agriculture and sports.

“Smart” devices using various forms of artificial intelligence will again be a major focus at CES.

Visitors are likely to see more dazzling TV screens, intuitive robots, a range of voice-activated devices, and folding or roll-up smartphone displays. Also on display will be refinements to autonomous transportation and gadgets taking advantage of 5G, or fifth-generation wireless networks.

But the celebration of innovation will be mixed with concerns about public trust in new technology and other factors that could cool the growth of a sizzling economic sector.

“I think 2019 will be a year of trust-related challenges for the tech industry,” said Bob O’Donnell of Technalysis Research.

CES features 4,500 exhibitors across 2.75 million square feet (250,000 square meters) of exhibit space showcasing artificial intelligence, augmented and virtual reality, smart homes, smart cities, sports gadgets and other cutting-edge devices. Some 182,000 trade professionals are expected.

Much ado about data

There will be a focus on artificial intelligence that can “personalize” a user’s experience with a device or a car, or even predict what someone is seeking — whether it’s music or medical care.

But because this ecosystem is built around data, confidence has been eroded by scandals involving Facebook, Google and other guardians of private information.

“The public is wary because of recent events,” said Roger Kay, analyst and consultant with Endpoint Technologies Associates. “I think the industry will be slowed by this skepticism.”

Carolina Milanesi, an analyst with Creative Strategies, said, “You’ll definitely hear people talk about security more, and really looking at how you secure the data,” at CES.

Trade frictions

The Consumer Technology Association, which operates the show, acknowledges that the sector is being hurt by tariffs and trade frictions between the two largest economic players, the United States and China.

Tariffs on tech products jumped to $1.3 billion in October, according to CTA, raising fears about growth.

“It’s almost inevitable that an economic slowdown will occur if these tariffs continue,” said Sage Chandler, CTA vice president for international trade.

The U.S.-China trade issues and the arrest of a top executive of Chinese giant Huawei in Canada have thrown into question the “supply chain,” the system in which U.S. designs are manufactured in China for the global market.

“This does cast a shadow over CES,” O’Donnell said.

AI and personalization

The auto sector will again have a major presence at CES with most major manufacturers on hand, some with prototypes of self-driving vehicles.

Japanese carmaker Honda will be showing an “autonomous work vehicle” which can be configured for search and rescue operations, firefighting and other uses.

Other exhibitors will be showing technology designed to serve as the “brains” of self-driving vehicles, not only for navigation but to create a better, more personalized “user experience” for travelers.

The show includes startups offering “predictive” health care solutions designed to anticipate the kind of care senior citizens may need.

Facial recognition, which is already being used on many smartphones, will be incorporated into vehicles, doorbells and security systems as part of efforts to increase personalization and improve security.

And consumer products group Procter & Gamble, making its first appearance at CES, will demonstrate ways to use facial recognition and AI for improved skin care and beauty recommendations.

The new applications raise questions on whether consumers are ready for technologies that evoke the notion of Big Brother and a surveillance state.

Brenda Leong, senior counsel at the Future of Privacy Forum, a Washington think-tank, said consumers should be mindful about whether data from facial recognition is kept only on the devices, such as in the iPhone, or held in a database.

“Even if commercial institutions are collecting the data, everybody is worried about government access,” she said.

Patrick Moorhead of Moor Insights & Strategy said consumers have shown a willingness to adopt these new technologies if they offer convenience.

“If they are balanced from a benefit point of view, those worries are going to go away,” he said.

Moorhead noted that as facial recognition has become a standard feature for many smartphones, “those fears have faded.”

O’Donnell said consumers are starting to understand more about data and become more discerning about which companies and devices they trust.

“Personalization is something people want, and they are willing to give up some privacy to get it,” he said.

“But if they can get personalization on the device without sending it to the cloud, they get the benefits without giving up privacy.”

Partial US Government Shutdown in 11th Day, as Border Wall Dispute Lingers

The partial U.S. government shutdown is in its 11th day at the dawn of 2019, with lawmakers and President Donald Trump still at odds over his demand for money to build a wall along the U.S.-Mexican border.

Democrats in the House of Representatives say that when they assume control of the chamber on Thursday, they plan to quickly approve legislation to reopen the quarter of government operations that have been closed since Dec. 22, although passage in the Senate is uncertain.

The Democrats’ spending plan includes no money for Trump’s border wall, which the U.S. leader derided in a New Year’s Day Twitter comment.

Later in the day, Trump invited top congressional leaders, both Republicans and Democrats, to the White House on Wednesday for a briefing on border security. But it was unclear whether that could lead to breaking the stalemate over his wall proposal he contends would thwart illegal immigration.

As the calendar turned to the new year, Trump said in an all-caps tweet that Americans would have a good year, if they weren’t obsessed with opposing him.

The House Democrats’ budget plan would fund most shuttered agencies through the end of September, while approving funding for the Department of Homeland Security through Feb. 8.

In Twitter comments, Trump has continued to push for wall funding, $5 billion as a down payment on the barrier that could cost more than $20 billion, while Democrats have offered to approve $1.3 billion for other border security efforts, but not the wall.

In one tweet Monday, Trump said, “Without the Wall there can be no Border Security.”

House speaker-designate Nancy Pelosi and Senate Minority Leader Chuck Schumer released a joint statement Monday calling for Republican support for the new funding legislation.

“It would be the height of irresponsibility and political cynicism for Senate Republicans to now reject the same legislation they have already supported,” the statement said.

Trump and Democratic lawmakers have not held any negotiations for days over the dispute.  The ongoing shutdown of a quarter of U.S. government operations means 380,000 government workers are furloughed while another 420,000 are still working, but will not be paid until the funding dispute is resolved.​

New Acting Chief: Pentagon ‘Focused on Safeguarding Our Nation’

Acting U.S. Defense Secretary Pat Shanahan said Tuesday the department “remains focused on safeguarding our nation,” as he officially took over the post left by the resignation of Jim Mattis.

“I now look forward to working with President Trump to carry out his vision alongside strong leaders including the service secretaries, the Joints Chiefs of Staff, the combatant commanders, and senior personnel in the Office of the Secretary of Defense,” Shanahan said in a statement.

Unlike Mattis, who came to the Pentagon as a revered former Marine general who served in Afghanistan, Shanahan does not have any military experience. Shanahan came to the Defense Department in 2017 from aviation giant Boeing, where he spent more than 30 years overseeing both civilian and military related programs.

Mattis resigned on December 20 following a White House meeting with Trump during which the two men disagreed over the president’s decision to withdraw all U.S. troops from Syria, where they have been helping in the fight against the Islamic State terror group.

“Our Department’s leadership, civilian and military, remains in the best possible hands,” Mattis wrote in his official farewell message Monday, his last day on the job.

“I am confident that each of you remains undistracted from our sworn mission to support and defend the Constitution while protecting our way of life,” he continued. “So keep the faith in our country and hold fast, alongside our allies, aligned against our foes.”

While it was not the first time the two men disagreed on policy, for Mattis the Syria decision represented a breaking point.

“You have the right to have a Secretary of Defense whose views are better aligned with yours on these and other subjects,” Mattis wrote at the time, adding he would stay on until the end of February 2019 to allow time for a successor to be found and so that he could represent the U.S. at a NATO Defense Ministerial meeting.

Mattis also warned the president that the United States “must be resolute and unambiguous in our approach to countries whose strategic interests are increasingly in tension with ours,” naming both China and Russia.

And he further warned that the United States could not afford to alienate allies.

“Our strength as a nation is inextricably linked to the strength of our unique and comprehensive system of alliances and partnership.”

Three days later, Trump announced via Twitter that Mattis would be leaving at the end of the year.

According to Pentagon officials, Mattis’ departure, at his own request, would not be marked by any of the fanfare normally seen to pay respect to an outgoing defense secretary.

Instead, the handover of authority from Mattis to Acting Defense Secretary Shanahan was to be carried out through a phone call, alerting all relevant government agencies to the change in command.

Shortly after the Pentagon released Mattis’ farewell message, the Trump took to Twitter Monday.

“I am the only person in America who could say that, “I’m bringing our great troops back home, with victory,” and get BAD press,” he wrote.

Mattis began his last message as secretary of defense by quoting from a telegram U.S. President Abraham Lincoln sent to Gen. Ulysses Grant in 1865, a little more than two months before the end of the U.S. Civil War.

“Let nothing which is transpiring, change, hinder or delay your military movements, or plans,” it read.

Trump, Democrats Still Far From Border Wall Deal

U.S. leaders remain at an impasse as House Democrats plan to pass legislation Thursday that would fund many of the government agencies currently shut down, but without money for a border wall that President Donald Trump insists is necessary for security.

The legislative effort, which is set to take place when the new Congress goes into session with Democrats holding a majority in the House, has two pieces.  One would fund most shuttered agencies through the end of September, while the other would give the Department of Homeland Security (DHS) its funding through Feb 8.

As with previous Democratic proposals, the DHS funding would not include money for the wall.

Trump has taken to Twitter several times to express his viewpoint, including fresh posts Monday saying “without the Wall there can be no Border Security.”

“The Democrats will probably submit a Bill, being cute as always, which gives everything away but gives NOTHING to Border Security, namely the Wall,” Trump wrote.

House speaker-designate Nancy Pelosi and Senate Minority Leader Chuck Schumer released a joint statement Monday calling for Republican support for the legislation.

“It would be the height of irresponsibility and political cynicism for Senate Republicans to now reject the same legislation they have already supported,” the statement said.

Trump wants $5 billion as a down payment on the barrier that could cost more than $20 billion to build, while Democrats have offered to approve $1.3 billion for other border security efforts.

Trump and Democratic lawmakers have not held any negotiations for days over the dispute.  The ongoing shutdown of a quarter of U.S. government operations means 380,000 government workers are furloughed while another 420,000 are still working, but will not be paid until the funding dispute is resolved.

The Digital Revolution’s Double-Edged Sword

Digital developments that have upended businesses throughout the global economy, from music to manufacturing, are also changing what the world trades and how manufacturers and merchants move and sell their goods. Experts tell VOA’s Jim Randle, the digital revolution presents significant opportunities, but also serious problems, for countries.

Warren Takes Step Toward 2020 Presidential Bid

U.S. Senator Elizabeth Warren has announced the formation of a presidential exploratory committee for a presidential bid in the 2020 election. Warren told reporters Monday that she wants to make America a land of opportunity for all its citizens and not just for the wealthy. VOA’s Zlatica Hoke reports the senator from Massachusetts is the first major Democrat to make a formal step toward entering the contest for the party’s presidential nomination.

Trade Optimism Lifts Stocks, But 2018 Ends in Red

Equities around the world rose Monday as possible progress in resolving the trade dispute between the United States and China engendered some investor optimism in what has been a punishing end of year for markets.

The U.S. benchmark S&P 500 stock index advanced in light trading volume after U.S. President Donald Trump said he held a “very good call” with China’s President Xi Jinping on Saturday to discuss trade and said “big progress” was being made.

Chinese state media were more reserved, saying Xi hoped the negotiating teams could meet each other halfway and reach an agreement that was mutually beneficial.

The rise in U.S. equities mirrored that in Asian and European markets, which were also buoyed by trade optimism.

Despite Monday’s advance, equities ended the year largely in the red, victims of investor anxiety over trade tensions and slowing economic growth. Asian and European shares had been sluggish for much of the year, and in recent months, U.S. stocks followed suit.

“If the European economy continues to decelerate and the Chinese economy decelerates because of tariffs, there is definitely going to be spillover to the United States,” said Shannon Saccocia, chief investment officer at Boston Private.

The S&P 500 dropped more than 9 percent in December, its largest decline since the Great Depression. For the year, the index slid more than 6 percent, its biggest drop since the 2008 financial crisis.

Asia-Pacific shares outside Japan ended down 16 percent for the year, while the STOXX 600 was more than 13 percent lower.

MSCI’s gauge of stocks around the globe fell 11.1 percent in 2018.

A further blow to the Chinese economy could spur a quicker resolution to the U.S.-China trade dispute and thus boost global equities, Saccocia said. Survey data on Monday showed Chinese manufacturing activity contracting for the first time in two years even as the service sector improved.

On Monday, the Dow Jones Industrial Average rose 265.06 points, or 1.15 percent, to 23,327.46, the S&P 500 gained 21.11 points, or 0.85 percent, to 2,506.85 and the Nasdaq Composite added 50.76 points, or 0.77 percent, to 6,635.28.

MSCI’s emerging markets index rose 0.32 percent, while the MSCI world stock index gained 0.66 percent.

No more hikes

Yields on U.S. Treasuries fell on Monday, keeping with the trend over the past two months as investors moved to lower-risk investments.

Benchmark 10-year notes last rose 15/32 in price to yield 2.686 percent, compared with 2.738 percent late Friday.

The fall in Treasury yields reflects expectations of a slowdown, if not a pause altogether, in the Federal Reserve’s progression of interest-rate hikes.

The precipitous drop in yields has undermined the U.S. dollar in recent weeks. The dollar index, which measures the greenback against a basket of six other currencies, was down 0.3 percent and on track to end December with a loss. It is, however, still set for its highest yearly percentage gain since 2015.

On Monday, the dollar fell to a six-month low against the yen.

The euro was up 0.2 percent to $1.1459, on track to end the year down nearly 5 percent against the dollar.

Oil posted its first year of losses since 2015, with Brent crude futures down 19.5 percent and U.S. West Texas Intermediate crude futures down 24.8 percent.

On Monday, Brent crude settled 59 cents higher, or 1.11 percent, at $53.80 a barrel. U.S. crude settled up 8 cents, or 0.18 percent, at $45.41 a barrel.

China Factory Activity Shrinks for First Time in 2 Years

China’s factory activity shrank in December for the first time in more than two years, an official survey showed Monday, intensifying pressure on Beijing to reverse an economic slowdown as it enters trade talks with the Trump administration.

The purchasing managers’ index of the National Bureau of Statistics and an industry group, the China Federation of Logistics & Purchasing, fell to 49.4 from November’s 50.0 on a 100-point scale. Any reading below 50 shows that activity is contracting. The December figure was the lowest since February 2016 and the first drop since July 2016.

 

In the quarter that ended in September, China’s economic growth sank to a post-global crisis low of 6.5 percent compared with a year earlier. The slowdown occurred despite government efforts to stem the downturn by ordering banks to lend more and by boosting spending on public works construction.

 

Forecasters expect annual growth of about 6.5 percent, down slightly from 2017’s 6.7 percent. But some industry segments, including auto and real estate sales, have suffered more serious declines.

 

“Downward pressure on the economy is still large,” economist Zhang Liqun said in a statement issued with the PMI.

 

Overall orders and exports both contracted, indicating that Chinese factories are suffering from weak demand at home and abroad. Exports to the United States kept growing at double-digit monthly rates through late 2018 despite President Donald Trump’s punitive tariffs. But growth in exports to the rest of the world fell sharply in November and forecasters expect American demand to weaken in early 2019.

 

That adds to complications for Chinese leaders who are trying to reverse a broad economic slowdown and avert politically dangerous job losses.

 

Chinese and U.S. envoys are due to meet in early January for negotiations that are intended to resolve their economically threatening trade war. Over the weekend, Trump sounded an optimistic note, tweeting that he had spoken with President Xi Jinping by phone.

 

“Deal is moving along very well,” Trump tweeted. “If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!”

 

But economists say the 90-day moratorium on new penalties that was agreed to by Trump and Xi on Dec. 1 is likely too little time to resolve their sprawling dispute.

 

Chinese economic activity already was weakening after Beijing tightened controls on bank lending in late 2017 to cool a debt boom. The downturn was more abrupt than expected, which prompted regulators to shift course and ease credit controls. But they moved gradually to avoid reigniting a rise in debt. Their measures have yet to put a floor under declining growth.

 

Chinese leaders promised at an annual economic planning meeting in mid-December to shore up growth with tax cuts, easier lending for entrepreneurs and other steps.