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Companies Look to Space As the Next Frontier

The Trump administration is trying to give private companies a boost in their efforts to capitalize on space as a business venture.

U.S. President Donald Trump Thursday signed a space policy directive aimed at streamlining regulations on commercial use of space.

Trump signed the directive just days after Space X launched another rocket from California carrying satellites into orbit.

WATCH: Trump space policy

The launch and several others planned for June are examples of private industries’ growing interests in space for commercial and scientific research.

“It’s a bit of a renaissance, a bit of a space 2.0. Finally, the commercial sector is starting to come back and do some really interesting things,” said Will Marshall, co-founder and chief executive officer of Planet, a leading provider of geospatial data.

The company has put up approximately 200 satellites that image Earth’s entire land mass each day. Marshall said prior to Planet, satellite imagery was only taken every year or several years. The regular images of Earth can be used in many different industries.

“You can use that data to improve crop yields so farmers can use it to decide when to add fertilizer, when to add water because we can tell crop yield from orbit. Or, it can be used by a commercial consumer mapping companies that are trying to improve their maps you see online, or it could be used by governments for a wide range of things from border security to disaster response,” Marshall said.

Satellites also orbit the planet for purposes of national security.

“We just launched a few months ago a satellite that was just like this, but also had laser communication. We were able to send at 200 megabits per second high data rates down to the ground and the ability for satellites to actually talk to each other. The same satellites that are put up to look at the Earth could be looking around the neighborhood and doing neighborhood watch for the benefit of national security and space situational awareness,” Steve Isakowitz, president and chief executive officer of the Aerospace Corporation, an organization that works with the U.S. Air Force and intelligence community.

Also orbiting Earth is the International Space Station, or ISS, an outpost of great interest to some major companies and research institutions. The ISS National Laboratory and astronauts inside conduct a wide range of experiments that would not be possible on Earth.

“When you remove the gravity vector out of the equation which is what we’re used to here on Earth, we see certain impacts and phenomena associated with that, such as lack of sedimentation, lack of convection, lack of buoyancy,” said Jennifer Lopez, commercial innovation technology lead at the Center for the Advancement of Science in Space, or CASIS, which manages the ISS National Laboratory.

The space station orbits Earth 16 times a day, with exposure to extreme temperatures and radiation, providing a unique environment for experiments.

Some experiments, including those geared to helping people with bone loss and injuries, may benefit life on Earth; however, the findings can also help with future human exploration into deep space. Lopez notes there is research is “looking at bone loss and muscle wasting in a space environment and the effects that a microgravity environment can have on our biological systems.”

“There is so much opportunity right now in space; Mars is one of those opportunities,” said Chad Anderson, chief executive officer of Space Angels, which invests in the space industry.

While NASA works on sending humans to the moon and Mars, the space near Earth and beyond will become busier as businesses explore this final frontier.

Companies Look to Space As the Next Frontier

The Trump administration is trying to give private companies a boost in their efforts to capitalize on space as a business venture.

U.S. President Donald Trump Thursday signed a space policy directive aimed at streamlining regulations on commercial use of space.

Trump signed the directive just days after Space X launched another rocket from California carrying satellites into orbit.

WATCH: Trump space policy

The launch and several others planned for June are examples of private industries’ growing interests in space for commercial and scientific research.

“It’s a bit of a renaissance, a bit of a space 2.0. Finally, the commercial sector is starting to come back and do some really interesting things,” said Will Marshall, co-founder and chief executive officer of Planet, a leading provider of geospatial data.

The company has put up approximately 200 satellites that image Earth’s entire land mass each day. Marshall said prior to Planet, satellite imagery was only taken every year or several years. The regular images of Earth can be used in many different industries.

“You can use that data to improve crop yields so farmers can use it to decide when to add fertilizer, when to add water because we can tell crop yield from orbit. Or, it can be used by a commercial consumer mapping companies that are trying to improve their maps you see online, or it could be used by governments for a wide range of things from border security to disaster response,” Marshall said.

Satellites also orbit the planet for purposes of national security.

“We just launched a few months ago a satellite that was just like this, but also had laser communication. We were able to send at 200 megabits per second high data rates down to the ground and the ability for satellites to actually talk to each other. The same satellites that are put up to look at the Earth could be looking around the neighborhood and doing neighborhood watch for the benefit of national security and space situational awareness,” Steve Isakowitz, president and chief executive officer of the Aerospace Corporation, an organization that works with the U.S. Air Force and intelligence community.

Also orbiting Earth is the International Space Station, or ISS, an outpost of great interest to some major companies and research institutions. The ISS National Laboratory and astronauts inside conduct a wide range of experiments that would not be possible on Earth.

“When you remove the gravity vector out of the equation which is what we’re used to here on Earth, we see certain impacts and phenomena associated with that, such as lack of sedimentation, lack of convection, lack of buoyancy,” said Jennifer Lopez, commercial innovation technology lead at the Center for the Advancement of Science in Space, or CASIS, which manages the ISS National Laboratory.

The space station orbits Earth 16 times a day, with exposure to extreme temperatures and radiation, providing a unique environment for experiments.

Some experiments, including those geared to helping people with bone loss and injuries, may benefit life on Earth; however, the findings can also help with future human exploration into deep space. Lopez notes there is research is “looking at bone loss and muscle wasting in a space environment and the effects that a microgravity environment can have on our biological systems.”

“There is so much opportunity right now in space; Mars is one of those opportunities,” said Chad Anderson, chief executive officer of Space Angels, which invests in the space industry.

While NASA works on sending humans to the moon and Mars, the space near Earth and beyond will become busier as businesses explore this final frontier.

Businesses Looking At Space as the Next Frontier

Space X recently launched another rocket from California carrying satellites into space – accelerating interest by more businesses and research facilities that now view space as an opportunity. At this year’s Milken Institute Global Conference, those in the space business describe why orbiting the Earth is so exciting. VOA’s Elizabeth Lee has details from Los Angeles.

Businesses Looking At Space as the Next Frontier

Space X recently launched another rocket from California carrying satellites into space – accelerating interest by more businesses and research facilities that now view space as an opportunity. At this year’s Milken Institute Global Conference, those in the space business describe why orbiting the Earth is so exciting. VOA’s Elizabeth Lee has details from Los Angeles.

Trump Lawyer Wary of Prosecutors’ Obstruction Questions in Russia Probe

U.S. President Donald Trump “adamantly’ wants to answer questions in the criminal investigation of his 2016 campaign’s links with Russia, but one of his lawyers says he remains skeptical about allowing Trump to face prosecutors’ queries about whether he obstructed justice by trying to thwart the probe.

Trump lawyer, former New York Mayor Rudy Giuliani, told CNN on Sunday that special counsel Robert Mueller wants to question the president about two key topics: possible collusion with Russia in the months before the election and whether he sought as president to block the investigation by firing FBI director James Comey while he was heading the Russia probe before Mueller was appointed to take over.

“The collusion part we’re pretty comfortable about because there has been none,” Giuliani said. “The obstruction part I’m not as comfortable with. I’m not. The president’s fine with it. He’s innocent. I’m not comfortable because it’s a matter of interpretation, not just hard and fast, true and not true.”

Giuliani added that “if you interpret his comment about firing Comey … if you interpret that as obstructing the investigation, as opposed to removing a guy who’s doing a bad job …. if you see it as obstructing the investigation, then you can say it’s obstruction.”

Giuliani said the president’s legal team is worried that Trump could be trapped into perjury — the criminal offense of lying under oath — in answering prosecutors’ questions about his reasoning for firing Comey. Initially, the White House said Trump ousted Comey because he allegedly mishandled the FBI’s investigation into the use of a private email server by Trump’s 2016 opponent, Democrat Hillary Clinton, while she was the U.S. secretary of state from 2009 to 2013.

Within days, however, Trump told NBC that he was going to fire Comey in any event and was thinking of “this Russia thing” when he ousted him because he thought it was a phony investigation used by Democrats to explain Clinton’s upset loss.

Whatever the misgivings of Trump’s lawyers about letting him face prosecutors’ questions, Giuliani said, “He’s adamantly wanting to do it.”

But Giuliani said that ultimately the decision of whether Trump meets with Mueller’s team depends on “how comfortable we are in them being open-minded” and believing that prosecutors had not decided in advance that Trump was complicit in wrong-doing.

Asked how he was “so sure” there had not been any collusion between the Trump campaign and Russian interests, Giuliani, a one-time prosecutor, said, “Fifty years of investigative experience tells me they don’t have a darn thing.”

Giuliani said that when he was part of the campaign, “No one knew about Russia, nobody talked about Russia.”

Trump has often assailed the investigation and did so again Sunday, calling it a “phony Russia Collusion Wiitch Hunt,” and a “Rigged Investigation!”

Giuliani has said in recent days that ultimately there won’t be any criminal charges brought against Trump, in keeping with long-standing Justice Department guidelines that a sitting president cannot be charged. But Giuliani said, based on what Mueller concludes about Trump’s actions, Congress could eventually face a decision whether to impeach Trump, leading to a Senate trial on whether he should be removed from office.

The Trump lawyer said that any sit-down with Mueller’s prosecutors would not occur until after the still-possible June 12 summit between Trump and North Korean leader Kim Jong Un in Singapore.

 

 

Trump Lawyer Wary of Prosecutors’ Obstruction Questions in Russia Probe

U.S. President Donald Trump “adamantly’ wants to answer questions in the criminal investigation of his 2016 campaign’s links with Russia, but one of his lawyers says he remains skeptical about allowing Trump to face prosecutors’ queries about whether he obstructed justice by trying to thwart the probe.

Trump lawyer, former New York Mayor Rudy Giuliani, told CNN on Sunday that special counsel Robert Mueller wants to question the president about two key topics: possible collusion with Russia in the months before the election and whether he sought as president to block the investigation by firing FBI director James Comey while he was heading the Russia probe before Mueller was appointed to take over.

“The collusion part we’re pretty comfortable about because there has been none,” Giuliani said. “The obstruction part I’m not as comfortable with. I’m not. The president’s fine with it. He’s innocent. I’m not comfortable because it’s a matter of interpretation, not just hard and fast, true and not true.”

Giuliani added that “if you interpret his comment about firing Comey … if you interpret that as obstructing the investigation, as opposed to removing a guy who’s doing a bad job …. if you see it as obstructing the investigation, then you can say it’s obstruction.”

Giuliani said the president’s legal team is worried that Trump could be trapped into perjury — the criminal offense of lying under oath — in answering prosecutors’ questions about his reasoning for firing Comey. Initially, the White House said Trump ousted Comey because he allegedly mishandled the FBI’s investigation into the use of a private email server by Trump’s 2016 opponent, Democrat Hillary Clinton, while she was the U.S. secretary of state from 2009 to 2013.

Within days, however, Trump told NBC that he was going to fire Comey in any event and was thinking of “this Russia thing” when he ousted him because he thought it was a phony investigation used by Democrats to explain Clinton’s upset loss.

Whatever the misgivings of Trump’s lawyers about letting him face prosecutors’ questions, Giuliani said, “He’s adamantly wanting to do it.”

But Giuliani said that ultimately the decision of whether Trump meets with Mueller’s team depends on “how comfortable we are in them being open-minded” and believing that prosecutors had not decided in advance that Trump was complicit in wrong-doing.

Asked how he was “so sure” there had not been any collusion between the Trump campaign and Russian interests, Giuliani, a one-time prosecutor, said, “Fifty years of investigative experience tells me they don’t have a darn thing.”

Giuliani said that when he was part of the campaign, “No one knew about Russia, nobody talked about Russia.”

Trump has often assailed the investigation and did so again Sunday, calling it a “phony Russia Collusion Wiitch Hunt,” and a “Rigged Investigation!”

Giuliani has said in recent days that ultimately there won’t be any criminal charges brought against Trump, in keeping with long-standing Justice Department guidelines that a sitting president cannot be charged. But Giuliani said, based on what Mueller concludes about Trump’s actions, Congress could eventually face a decision whether to impeach Trump, leading to a Senate trial on whether he should be removed from office.

The Trump lawyer said that any sit-down with Mueller’s prosecutors would not occur until after the still-possible June 12 summit between Trump and North Korean leader Kim Jong Un in Singapore.

 

 

Trump’s ‘Phony’ Source a White House Official

President Donald Trump accused The New York Times on Saturday of inventing a source for a story who, in fact, was a White House official conducting a briefing for reporters under the condition that the official not be named.

Trump tweeted that the Times quoted an official “who doesn’t exist” and referenced a line in the story about a possible summit with North Korea, which read: “a senior White House official told reporters that even if the meeting were reinstated, holding it on June 12 would be impossible, given the lack of time and the amount of planning needed.”

Said Trump: “WRONG AGAIN! Use real people, not phony sources.”

The Times reported in a story about the tweet that it had cited “a senior White House official speaking to a large group of reporters in the White House briefing room.”

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

Trump has repeatedly criticized the use of unnamed sources and labeled information related by unnamed officials “fake news.” Still, his White House regularly arranges briefings with officials who demand anonymity before relaying information, a practice also used by previous administrations.

At the briefing, which was attended by The Associated Press, the official cast doubt on the feasibility of a June 12 summit.

“I think that the main point, I suppose, is that the ball is in North Korea’s court right now. There’s really not a lot of time,” the official said. “There’s a certain amount of actual dialogue that needs to take place at the working level with your counterparts to ensure that the agenda is clear in the minds of those two leaders when they sit down to actually meet and talk and negotiate and hopefully make a deal. And June 12 is in 10 minutes.”

The White House press office invited reporters to the background briefing, both to attend in person or to call-in and insisted that the official not be named. The AP reporter in attendance questioned why the briefing was not on the record, meaning that the official’s name could be used. The official said the president had been talking publicly during the day, as well as Secretary of State Mike Pompeo, and that the briefing was intended to provide “background context.”

Trump’s ‘Phony’ Source a White House Official

President Donald Trump accused The New York Times on Saturday of inventing a source for a story who, in fact, was a White House official conducting a briefing for reporters under the condition that the official not be named.

Trump tweeted that the Times quoted an official “who doesn’t exist” and referenced a line in the story about a possible summit with North Korea, which read: “a senior White House official told reporters that even if the meeting were reinstated, holding it on June 12 would be impossible, given the lack of time and the amount of planning needed.”

Said Trump: “WRONG AGAIN! Use real people, not phony sources.”

The Times reported in a story about the tweet that it had cited “a senior White House official speaking to a large group of reporters in the White House briefing room.”

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

Trump has repeatedly criticized the use of unnamed sources and labeled information related by unnamed officials “fake news.” Still, his White House regularly arranges briefings with officials who demand anonymity before relaying information, a practice also used by previous administrations.

At the briefing, which was attended by The Associated Press, the official cast doubt on the feasibility of a June 12 summit.

“I think that the main point, I suppose, is that the ball is in North Korea’s court right now. There’s really not a lot of time,” the official said. “There’s a certain amount of actual dialogue that needs to take place at the working level with your counterparts to ensure that the agenda is clear in the minds of those two leaders when they sit down to actually meet and talk and negotiate and hopefully make a deal. And June 12 is in 10 minutes.”

The White House press office invited reporters to the background briefing, both to attend in person or to call-in and insisted that the official not be named. The AP reporter in attendance questioned why the briefing was not on the record, meaning that the official’s name could be used. The official said the president had been talking publicly during the day, as well as Secretary of State Mike Pompeo, and that the briefing was intended to provide “background context.”

Beyond Wedding Cake: LGBT Cases for Supreme Court

A flood of lawsuits over LGBT rights is making its way through courts and will continue, no matter the outcome in the Supreme Court’s highly anticipated decision in the case of a Colorado baker who would not create a wedding cake for a same-sex couple.

Courts are engaged in two broad types of cases on this issue, weighing whether sex discrimination laws apply to LGBT people and also whether businesses can assert religious objections to avoid complying with anti-discrimination measures in serving customers, hiring and firing employees, providing health care and placing children with foster or adoptive parents.

The outcome of baker Jack Phillips’ fight at the Supreme Court could indicate how willing the justices are to carve out exceptions to anti-discrimination laws; that’s something the court has refused to do in the areas of race and sex.

The result was hard to predict based on arguments in December. But however the justices rule, it won’t be their last word on the topic.

Boost from Trump

Religious conservatives have gotten a big boost from the Trump administration, which has taken a more restrictive view of LGBT rights and intervened on their side in several cases, including Phillips’.

“There is a constellation of hugely significant cases that are likely to be heard by the court in the near future and those are going to significantly shape the legal landscape going forward,” said Shannon Minter, legal director of the National Center for Lesbian Rights.

Several legal disputes are pending over wedding services, similar to the Phillips case. Video producers, graphic artists and florists are among business owners who say they oppose same-sex marriage on religious grounds and don’t want to participate in same-sex weddings. They live in the 21 states that have anti-discrimination laws that specifically include gay and lesbian people.

In California and Texas, courts are dealing with lawsuits over the refusal of hospitals, citing religious beliefs, to perform hysterectomies on people transitioning from female to male. In Michigan, the American Civil Liberties Union filed suit against the state’s practice of allowing faith-based child placement agencies to reject same-sex couples.

Stark differences

Advocates of both sides see the essence of these cases in starkly different terms.

“What the religious right is asking for is a new rule specific to same-sex couples that would not only affect same-sex couples but also carve a hole in nondiscrimination laws that could affect all communities,” said Camilla Taylor, director of constitutional litigation at Lambda Legal, which supports civil rights for LGBT people.

Jim Campbell of the Christian public interest law firm Alliance Defending Freedom said the cases will determine whether “people like Jack Phillips who believe marriage is the union of a man and a woman, that they too have a legitimate place in public life. Or does he have to hide or ignore those beliefs when he’s participating in the public square?” ADF represents Phillips at the Supreme Court.

Civil rights complaints

The other category of cases concerns protections for LGBT people under civil rights law. One case expected to reach the court this summer involves a Michigan funeral home that fired an employee who disclosed that she was transitioning from male to female and dressed as a woman.

The 6th U.S. Circuit Court of Appeals ruled that the firing constituted sex discrimination under federal civil rights law. That court is one of several that have applied anti-sex discrimination provisions to transgender people, but the Supreme Court has yet to take up a case.

The funeral home argues in part that Congress was not thinking about transgender people when it included sex discrimination in Title VII of the 1964 Civil Rights Act. A trial judge had ruled for the funeral home, saying it was entitled to a religious exemption from the civil rights law.

“Congress has not weighed in to say sex includes gender identity. We should certainly make sure that’s a conscious choice of Congress and not just the overexpansion of the law by courts,” Campbell said. ADF also represents the funeral home.

In just the past week, two federal courts ruled in favor of transgender students who want to use school facilities that correspond to their sexual identity. Those cases turn on whether the prohibition on sex discrimination in education applies to transgender people. Appeals in both cases are possible.

In the past 13 months, federal appeals courts in Chicago and New York also have ruled that gay and lesbian employees are entitled to protection from discrimination under Title VII. Those courts overruled earlier decisions. Title VII does not specifically mention sexual orientation, but the courts said it was covered under the ban on sex bias.

Trump changes course

The Obama administration had supported treating LGBT discrimination claims as sex discrimination, but the Trump administration has changed course. In the New York case, for instance, the Trump administration filed a legal brief arguing that Title VII was not intended to provide protections to gay workers. It also withdrew Obama-era guidance to educators to treat claims of transgender students as sex discrimination.

There is no appeal pending or expected on the sexual orientation issue, and there is no guarantee that the court will take up the funeral home’s appeal over transgender discrimination.

Changes on the court

The trend in the lower courts has been in favor of extending civil rights protections to LGBT employees and students. Their prospects at the Supreme Court may be harder to discern, not least because it’s unclear whether the court’s composition will change soon.

Justice Anthony Kennedy, 81, has been the subject of retirement speculation, though he has not indicated he is planning to retire. When Justice Stephen Breyer turns 80 in August, he will join Kennedy and Justice Ruth Bader Ginsburg, 85, as octogenarians on the bench.

If President Donald Trump were to replace any of those justices, the court probably would be much less receptive to LGBT rights. Even the landmark gay marriage ruling in 2015 that Kennedy wrote was a 5-4 decision.

“We’re very concerned about the composition of the federal bench. Under the Trump administration, we’ve seen a number of federal nominees who have been ideologues, who have taken positions about the very right to exist of LGBT people that is simply inconsistent with fitness to serve as a federal judge,” Taylor of Lambda Legal said.

The ADF’s Campbell said even with the current justices, he holds out some hope that the court would not extend anti-discrimination protections. 

“Justice Kennedy has undoubtedly been the person who has decided the major LGBT cases, but to my knowledge he hasn’t weighed in some of these other issues,” he said.

New York Clothing Store Sells Gender Neutral Lifestyle

New shops appear in New York City every day, but Phluid Project, which recently opened its doors on Broadway, is different. One of the first gender-fluid boutiques in the world, Phluid Project sells clothing for men, women and everyone in between. Both the clothes and the mannequins here are gender-neutral, and as an added selling point, its store owners say the prices are more than affordable. Elena Wolf visited the one-of-a-kind store, where no one feels out of place.

New York Clothing Store Sells Gender Neutral Lifestyle

New shops appear in New York City every day, but Phluid Project, which recently opened its doors on Broadway, is different. One of the first gender-fluid boutiques in the world, Phluid Project sells clothing for men, women and everyone in between. Both the clothes and the mannequins here are gender-neutral, and as an added selling point, its store owners say the prices are more than affordable. Elena Wolf visited the one-of-a-kind store, where no one feels out of place.

Russia, Turkey OK Pipeline Deal, End Gas Dispute

Russian state gas giant Gazprom said Saturday it had signed a protocol with the Turkish government on a planned gas pipeline and agreed with Turkish firm Botas to end an arbitration dispute over the terms of gas supplies. 

The protocol concerned the land-based part of the transit leg of the TurkStream gas pipeline, which Gazprom said meant that work to implement it could now begin.

Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline, which, if completed, would allow Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe.

A source said in February the permit problem might be related to talks between Gazprom and Botas about a possible discount for Russian gas.

Turkish President Tayyip Erdogan said earlier Saturday that Turkey and Russia had reached a retroactive agreement for a 10.25 percent discount on the natural gas Ankara buys from Moscow.

Gazprom said in the Saturday statement, without elaborating, that the dispute with Botas would be settled out of court.

 

Italy’s President Pressured to Accept Euroskeptic Minister

Italy’s would-be coalition parties turned up the pressure on President Sergio Mattarella on Saturday to endorse their euroskeptic pick as economy minister, saying the only other option might be a new election.

Mattarella has held up formation of a government, which would end more than 80 days of political deadlock, over concern about the desire of the far-right League and anti-establishment 5-Star Movement to make economist Paolo Savona, 81, economy minister.

Savona has been a vocal critic of the euro and the European Union, but he has distinguished credentials, including in a former role as an industry minister.

Formally, Prime Minister-designate Giuseppe Conte presents his cabinet to the president, who must endorse it. Conte, a little-known law professor with no political experience, met the president on Friday without resolving the

deadlock.

“I hope no one has already decided ‘no,’ ” League leader Matteo Salvini shouted to supporters in northern Italy. “Either the government gets off the ground and starts working in the coming hours, or we might as well go back to elections.”

Later, 5-Star leader Luigi Di Maio said he expected there to be a decision on whether the president would back the government within 24 hours.

5-Star also defended Savona’s nomination. “It is a political choice. … Blocking a ministerial choice is beyond [the president’s] role,” Alessandro Di Battista, a top 5-Star politician, said.

Mattarella has not spoken publicly about Savona, but through his aides he has made it clear he does not want an anti-euro economy minister and that he would not accept the “diktat” of the parties.

Jittery markets

Savona’s criticism of the euro and German economic policy has further spooked markets already concerned about the future government’s willingness to rein in the massive debt, worth 1.3 times the country’s annual output.

The League and 5-Star have said Savona should not be judged on his opinions, but on his credentials. Savona has had high-level experience at the Bank of Italy, in government as industry minister in 1993-94, and with employers lobby Confindustria.

On his new Facebook page, Conte said he had received best wishes for his government in a phone call with French President Emmanuel Macron.

European Commissioner for Economic Affairs Pierre Moscovici was not hostile when asked about Savona in an interview with France’s Europe1 radio, saying he would work with whomever Italy named.

“Italians decide their own government,” Moscovici said. “Italy is and should remain a country at the heart of the eurozone. … What worries me is the debt, which must be contained.”

The prospect of Italy’s government going on a spending spree on promised tax cuts and welfare benefits roiled markets last week.

On Friday, the closely watched gap between the Italian and German 10-year bond yields, seen as a measure of political risk for the eurozone, was at its widest in four years at 215 basis points.

The chance that the new government will weaken public finances and roll back a 2011 pension reform prompted Moody’s to say — after markets had closed Friday — that it might downgrade the country’s sovereign debt rating.

Moody’s has a Baa2 long-term rating with a negative outlook on Italy. A downgrade to Baa3 would take the country’s debt to just one notch above junk.

Despite the recent surge, Italian yields are well below the peaks they reached during the eurozone crisis of 2011-12, thanks mainly to the shield provided by the European Central Bank’s bond-buying program.

Kenya Moves to Regulate Digital-Fueled Lending Craze

Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones without a bank account.

Now, a proliferation of lenders are using the same technology to extend credit to the banked and unbanked alike, saddling borrowers with high interest rates and leaving regulators scrambling to keep up.

This week, the finance ministry published a draft bill on financial regulation that covers digital lenders for the first time. A key aim is to ensure that providers treat retail customers fairly, it said.

“We have a lot of predatory lending out here, which we want to regulate,” Geoffrey Mwau, director general of budget, fiscal and economic affairs at the treasury, told reporters Thursday.

Test case for lending

As it was for mobile cash, Kenya is something of a test case for the new lending platforms. Several of the companies involved, including U.S. fintech startups, have plans to expand in other frontier markets, meaning Kenya’s regulation will be closely watched.

From having had little or no access to credit, many Kenyans now find they can get loans in minutes.

George Ombelli, a salesman for a company importing bicycles who also owns a hair salon and cosmetics shop with his wife, has borrowed simultaneously from four providers over the past year.

He took small loans from two Silicon Valley-backed U.S. fintech firms, Branch and Tala, to see what rates he would get, as well as from a new mobile app launched by Barclays Kenya in March and a business loan from Kenya’s Equity Bank.

Citing a slowdown in his business because of elections-related political turmoil last year, Ombelli said he has fallen behind on some of his payments. He fears he will be reported to one of Kenya’s three credit bureaus, jeopardizing his chances of being able to borrow more to grow his business.

​‘Too many loans is a problem’

“I’ve realized having too many loans is a problem,” the 38-year-old father of three said in an interview in a coffee shop in Nairobi’s business district.

He is not alone. In the last three years, 2.7 million people out of a population of around 45 million have been negatively listed on Kenya’s Credit Reference Bureaux, according to a study by Microsave, which advises lenders on sustainable financial services.

For 400,000 of them, it was for an amount less than $2.

Global implications

Some of the fintech lenders are expanding into other African countries and into Latin America and Asia, saying their aim is to help some of the billions of people who lack bank accounts, assets or formal employment climb the economic ladder.

Tala says it has granted more than 6 million loans worth more than $300 million, mainly in Kenya, since it launched in Kenya in 2014. It is expanding its newer businesses in Mexico, Tanzania and the Philippines and is piloting in India.

Tala and Branch argue that their technology, which relies on an algorithm that builds a financial profile of customers, minimizes the risk of default. They say they strive to play a helpful role in planning for tighter regulation.

“We believe that credit bubbles and over-indebtedness will be a challenge over the next decade. (Credit Reference) Bureaus and regulation will be a big part of the solution,” said Erin Renzas, a Branch spokeswoman.

Branch says it expects to grant about 10 million loans worth a total of $250 million this year in Kenya and its other markets, Nigeria and Tanzania.

High interest rates

The current status of the sector, outside the direct remit of the central bank, allows providers, both banks and others, to skirt a government cap on interest of four points above the central bank’s benchmark interest rate, which now stands at 9.5 percent.

Market leader M-Shwari, Kenya’s first savings and loans product introduced by Safaricom and Commercial Bank of Africa in 2012, charges a “facilitation fee” of 7.5 percent on credit regardless of its duration.

On a loan with a month’s term, this equates to an annualized interest rate of 90 percent. The shortest loan repayment period is one week. A Safaricom spokesman referred Reuters to the CBA for comment. Calls to their switchboard and an email were not answered on Thursday.

Tala and Branch, number four and six in a ranking based on usage data by FSD Kenya, offer varying rates depending on the repayment period.

Their apps, downloaded by Reuters, each offered a month’s loan at 15 percent, equating to 180 percent over a year. Both companies say rates drop dramatically as people pay back successive loans.

Barclays Kenya launched an app in March offering 30-day loans with an interest rate of just less than 7 percent, still a hefty 84 percent annual equivalent rate. Reuters was unable to reach their spokespeople by telephone.

The new draft bill says digital lenders will be licensed by a new Financial Markets Conduct Authority and that lenders will be bound by any interest rate caps the Authority sets. But it is not clear if digital lenders are subject to such caps and the current government cap on banks’ interest rates is under review.

Introduced in 2016 to stop banks charging high interest rates, the cap has stifled traditional bank lending and the International Monetary Fund has conditioned Kenya’s continued access to balance of payments support on its removal.

But members of parliament say the public has had enough of high interest rates and the draft does not say the cap will be lifted. The finance ministry will come up with a final version of the bill in the next few weeks before sending it to parliament.

VOA Persian Interviews Secretary Pompeo on Iran

U.S. Secretary of State Mike Pompeo outlined the Trump administration’s efforts to end Iran’s nuclear program in an exclusive interview with VOA’s Persian service. VOA’s Julie Taboh reports, Thursday’s conversation also covered recent protests in Iran and the administration’s efforts to free Americans detained by Iran.

VOA Persian Interviews Secretary Pompeo on Iran

U.S. Secretary of State Mike Pompeo outlined the Trump administration’s efforts to end Iran’s nuclear program in an exclusive interview with VOA’s Persian service. VOA’s Julie Taboh reports, Thursday’s conversation also covered recent protests in Iran and the administration’s efforts to free Americans detained by Iran.

For Trump, There’s Always a ‘New Deal’ on the Horizon

Though U.S. President Donald Trump decided Thursday to not hold direct talks with North Korean leader Kim Jong Un, Trump has suggested he’s open to talks down the road, if relations improve. That offer of new talks, on his terms, is part of a pattern for Trump when it comes to negotiations. And it’s something that has had mixed results, as VOA’s Bill Gallo reports.

For Trump, There’s Always a ‘New Deal’ on the Horizon

Though U.S. President Donald Trump decided Thursday to not hold direct talks with North Korean leader Kim Jong Un, Trump has suggested he’s open to talks down the road, if relations improve. That offer of new talks, on his terms, is part of a pattern for Trump when it comes to negotiations. And it’s something that has had mixed results, as VOA’s Bill Gallo reports.

US Sen. Corker Meets with Venezuela’s President Maduro

The chairman of the U.S. Senate Foreign Relations Committee met with Venezuelan President Nicolas Maduro on Friday, less than a week after the embattled socialist leader was re-elected in a vote the U.S. condemned and he kicked out the top American diplomat in the country.

The visit appeared to be an attempt by Sen. Bob Corker to push for the release of Joshua Holt, a U.S. citizen who has been held for two years in a Caracas jail without a trial on what he has called trumped-up weapons charges.

Corker, a Republican from Tennessee, was seen live on state TV shaking hands with Maduro and being greeted by first lady Cilia Flores as he entered the presidential palace. He left an hour later, and neither the senator nor the president made any statements.

Maduro easily won a second, six-year term in Sunday’s election, which was criticized by the U.S. and other nations as a “sham” after several of his key rivals were barred from running. After his victory, Maduro expelled U.S. charge d’affaires Todd Robinson and his deputy for allegedly conspiring to sabotage the vote by pressuring opposition parties to boycott the election, which had the lowest voter turnout in decades.

Corker was accompanied by an aide, Caleb McCarry, who led backchannel talks earlier this year with a close associate of Maduro aimed at securing the release of Holt.

Speculation on social media

Holt, a 26-year-old from Utah, traveled to Venezuela in June 2016 to marry a woman he had met online while looking for Spanish-speaking Mormons to help him improve his Spanish. He was arrested after police said they found an assault rifle and grenades during a raid on the public housing complex where the couple lived. He has denied the charge.

Shortly after Corker’s meeting with Maduro, social media in Venezuela lit up with speculation that Holt and his wife, Thamara Caleno, would be released as a good will gesture to improve relations, much as North Korean leader Kim Jong Un did by freeing three American detainees.

In a previous visit to Caracas in 2015, Corker was shunned by Maduro after having been promised a meeting with the president. Upon his return to Washington, Corker blasted Maduro’s government, saying its “flawed economic policies and political system” had put Venezuela on a “destructive path.”

There was no immediate comment from Corker’s office about the nature of his latest visit.

​Other senators 

Last month, U.S. Sen. Dick Durbin, the No. 2 ranking Democrat on the Foreign Relations Committee, also met with Maduro to press for Holt’s release.

The Maduro government has been seeking contacts in the U.S. to stave off the threat of crippling oil sanctions that could further damage an economy already staggering from hyperinflation and widespread shortages.

U.S. Sen. Marco Rubio, an outspoken critic of Maduro who has President Donald Trump’s ear on Venezuela, played down Corker’s visit.

“Any U.S. Senator can meet with whoever they want,” Rubio tweeted. “But no matter how many senators dictator (at)NicolasMaduro gets to meet with him, U.S. sanctions will go away when Maduro leaves & democracy returns.”

Venezuelan Information Minister Jorge Rodriguez described Maduro’s conversation with Corker as “very good meeting, good news for the Venezuelan people” but gave no details of what the two discussed.

A close Maduro ally, socialist party boss Diosdado Cabello, accused Holt of being the CIA’s spy chief in Latin America after the prisoner appeared in a video last week pleading for help, saying his life had been threatened during a riot by inmates in the Caracas jail where he and dozens of Maduro’s opponents are being held.

Before he left Venezuela on Thursday on Maduro’s orders, Robinson had been pushing unsuccessfully to see Holt.

However, on Friday, U.S. officials were allowed entry to the prison, according to a message posted by Holt’s mother, Laurie Holt, on her Facebook page. She said her son “was in good spirits,” except for discomfort from dozens of mosquito bites. She said his visitors gave him bug repellant.

US Sen. Corker Meets with Venezuela’s President Maduro

The chairman of the U.S. Senate Foreign Relations Committee met with Venezuelan President Nicolas Maduro on Friday, less than a week after the embattled socialist leader was re-elected in a vote the U.S. condemned and he kicked out the top American diplomat in the country.

The visit appeared to be an attempt by Sen. Bob Corker to push for the release of Joshua Holt, a U.S. citizen who has been held for two years in a Caracas jail without a trial on what he has called trumped-up weapons charges.

Corker, a Republican from Tennessee, was seen live on state TV shaking hands with Maduro and being greeted by first lady Cilia Flores as he entered the presidential palace. He left an hour later, and neither the senator nor the president made any statements.

Maduro easily won a second, six-year term in Sunday’s election, which was criticized by the U.S. and other nations as a “sham” after several of his key rivals were barred from running. After his victory, Maduro expelled U.S. charge d’affaires Todd Robinson and his deputy for allegedly conspiring to sabotage the vote by pressuring opposition parties to boycott the election, which had the lowest voter turnout in decades.

Corker was accompanied by an aide, Caleb McCarry, who led backchannel talks earlier this year with a close associate of Maduro aimed at securing the release of Holt.

Speculation on social media

Holt, a 26-year-old from Utah, traveled to Venezuela in June 2016 to marry a woman he had met online while looking for Spanish-speaking Mormons to help him improve his Spanish. He was arrested after police said they found an assault rifle and grenades during a raid on the public housing complex where the couple lived. He has denied the charge.

Shortly after Corker’s meeting with Maduro, social media in Venezuela lit up with speculation that Holt and his wife, Thamara Caleno, would be released as a good will gesture to improve relations, much as North Korean leader Kim Jong Un did by freeing three American detainees.

In a previous visit to Caracas in 2015, Corker was shunned by Maduro after having been promised a meeting with the president. Upon his return to Washington, Corker blasted Maduro’s government, saying its “flawed economic policies and political system” had put Venezuela on a “destructive path.”

There was no immediate comment from Corker’s office about the nature of his latest visit.

​Other senators 

Last month, U.S. Sen. Dick Durbin, the No. 2 ranking Democrat on the Foreign Relations Committee, also met with Maduro to press for Holt’s release.

The Maduro government has been seeking contacts in the U.S. to stave off the threat of crippling oil sanctions that could further damage an economy already staggering from hyperinflation and widespread shortages.

U.S. Sen. Marco Rubio, an outspoken critic of Maduro who has President Donald Trump’s ear on Venezuela, played down Corker’s visit.

“Any U.S. Senator can meet with whoever they want,” Rubio tweeted. “But no matter how many senators dictator (at)NicolasMaduro gets to meet with him, U.S. sanctions will go away when Maduro leaves & democracy returns.”

Venezuelan Information Minister Jorge Rodriguez described Maduro’s conversation with Corker as “very good meeting, good news for the Venezuelan people” but gave no details of what the two discussed.

A close Maduro ally, socialist party boss Diosdado Cabello, accused Holt of being the CIA’s spy chief in Latin America after the prisoner appeared in a video last week pleading for help, saying his life had been threatened during a riot by inmates in the Caracas jail where he and dozens of Maduro’s opponents are being held.

Before he left Venezuela on Thursday on Maduro’s orders, Robinson had been pushing unsuccessfully to see Holt.

However, on Friday, U.S. officials were allowed entry to the prison, according to a message posted by Holt’s mother, Laurie Holt, on her Facebook page. She said her son “was in good spirits,” except for discomfort from dozens of mosquito bites. She said his visitors gave him bug repellant.

US Conservationists Sue Trump Administration Over Migratory Bird Policy

A coalition of conservation groups sued the Trump administration on Thursday, accusing the government of slashing protections for migratory birds.

At issue is the Migratory Bird Treaty Act, which the National Audubon Society and other plaintiffs say has been undermined. In the past, the act helped hold parties responsible for actions that killed or injured migratory birds.

But in December, the Trump administration said energy companies and other businesses that accidentally kill migratory birds will no longer be criminally prosecuted.

“As you can imagine, many causes of bird fatalities — including oil spills — could fall into this ‘unintentional’ category, so we’re taking the administration to court,” David Yarnold, president and CEO of the National Audubon Society, a plaintiff in the lawsuit, said in a statement.

Plaintiffs also include the American Bird Conservancy, the Center for Biological Diversity, and Defenders of Wildlife. The lawsuit was filed in the U.S. District Court for the Southern District of New York.

Defendants are the U.S. Department of the Interior, U.S. Fish and Wildlife Service and Daniel Jorjani, the Interior Department’s principal deputy solicitor.

The U.S. Attorney’s Office for the Southern District of New York, representing the government in the lawsuit, declined to comment. Representatives for the Fish and Wildlife Service, interior and justice departments also declined comment.

The Trump administration’s December move, in a legal memo from the Interior Department, reversed a longstanding practice at the agency and a last-minute rule implemented by the outgoing Obama administration. It came after several appeals courts ruled that the government was interpreting a century-old law aimed at protecting birds too broadly.

In the legal opinion, Jorjani said that a 1918 law that officials have used to prosecute those who kill birds “incidentally” as part of doing business was really aimed at preventing poaching and hunting without a license.

The Migratory Bird Treaty Act “applies only to direct and affirmative purposeful actions that reduce migratory birds, their eggs, or their nests, by killing or capturing, to human control,” Jorjani wrote.

The memo is already being followed, the lawsuit said, and one or more companies constructing natural gas pipelines were told they may cut down trees with nesting birds during the breeding season.

The conservation groups request that the court vacate the memo and declare the defendants “revert to their prior, correct longstanding interpretation and policy,” the lawsuit said.

US Conservationists Sue Trump Administration Over Migratory Bird Policy

A coalition of conservation groups sued the Trump administration on Thursday, accusing the government of slashing protections for migratory birds.

At issue is the Migratory Bird Treaty Act, which the National Audubon Society and other plaintiffs say has been undermined. In the past, the act helped hold parties responsible for actions that killed or injured migratory birds.

But in December, the Trump administration said energy companies and other businesses that accidentally kill migratory birds will no longer be criminally prosecuted.

“As you can imagine, many causes of bird fatalities — including oil spills — could fall into this ‘unintentional’ category, so we’re taking the administration to court,” David Yarnold, president and CEO of the National Audubon Society, a plaintiff in the lawsuit, said in a statement.

Plaintiffs also include the American Bird Conservancy, the Center for Biological Diversity, and Defenders of Wildlife. The lawsuit was filed in the U.S. District Court for the Southern District of New York.

Defendants are the U.S. Department of the Interior, U.S. Fish and Wildlife Service and Daniel Jorjani, the Interior Department’s principal deputy solicitor.

The U.S. Attorney’s Office for the Southern District of New York, representing the government in the lawsuit, declined to comment. Representatives for the Fish and Wildlife Service, interior and justice departments also declined comment.

The Trump administration’s December move, in a legal memo from the Interior Department, reversed a longstanding practice at the agency and a last-minute rule implemented by the outgoing Obama administration. It came after several appeals courts ruled that the government was interpreting a century-old law aimed at protecting birds too broadly.

In the legal opinion, Jorjani said that a 1918 law that officials have used to prosecute those who kill birds “incidentally” as part of doing business was really aimed at preventing poaching and hunting without a license.

The Migratory Bird Treaty Act “applies only to direct and affirmative purposeful actions that reduce migratory birds, their eggs, or their nests, by killing or capturing, to human control,” Jorjani wrote.

The memo is already being followed, the lawsuit said, and one or more companies constructing natural gas pipelines were told they may cut down trees with nesting birds during the breeding season.

The conservation groups request that the court vacate the memo and declare the defendants “revert to their prior, correct longstanding interpretation and policy,” the lawsuit said.

Markets Disrupted as Italy’s Populists Negotiate Cabinet

Italy’s prime minister-designate, Giuseppe Conte, a political novice and obscure law professor accused of padding his resume, put the finishing touches to his cabinet lineup Friday. And initial reaction from financial markets was far from approving.

Italian government bond prices slumped and the country’s ailing banks saw their stock prices hit an 11-month low. Italy’s outgoing economy minister, Pier Carlo Padoan, warned the incoming coalition government of the anti-establishment Five Star Movement (M5S) and far-right League not to underestimate the power of the markets.

“The most worrying aspect of the program, which this government is working on, is its underestimation of the consequences of certain choices,” Padoan told the Il Sole 24 Ore newspaper.

M5S and the League unveiled their government agreement a week ago, after more than 70 days of tortuous talks, following the country’s inconclusive parliamentary elections in March. The polls saw establishment parties trounced.

The coalition partners’ program includes massive tax cuts favoring the rich — a League demand — additional spending on welfare for the poor, and job-seekers and a roll-back of pension reforms that helped Italy weather the multi-year-long eurozone debt crisis which bankrupted Greece.

Investors — domestic and foreign — are expressing alarm about what the next few months may hold for an Italy governed by unlikely political partners. Fears include a public sector spending spree that will put Rome not only on a collision course with the European Union over budget rules. It also will weaken the already perilous state finances of Italy, the third largest economy in Europe and the second most indebted.

Some financial analysts say investors are becoming wary about European equities in general, fearing political and economic unpredictability in Italy could trigger contagion, prompting a new eurozone crisis. European markets were on track Friday to record collectively their first weekly decline since March — and investors last week withdrew the most money in nearly two years from western European funds.

“Investors should take caution as far as European equities go,” Boris Schlossberg, managing director of FX Strategy at BK Asset Management, told CNBC’s cable TV show Trading Nation this week.

Immigration

EU officials in Brussels and Italy’s half-a-million migrants are as anxious as investors. They are bracing for confrontations with the incoming populist government, whose two halves agree about very little, except when it comes to euro-skepticism and disapproval of migrants. M5S itself is split sharply between liberals and conservatives.

Earlier this week Italian President Sergio Mattarella approved Giuseppe Conte, aged 54, as the coalition’s nominee for prime minister — despite evidence that the academic had padded his resume with stints at New York University, Girton College, Cambridge and France’s prestigious Sorbonne. None of them had any record of his official attendance, although he was granted a visitor’s library card by NYU.

Conte also claimed in his resume to have founded a prominent Italian law practice, but was only an external contributor, according to the firm.

A figurehead?

Few here in Rome believe Conte, who was born in the southern region of Puglia, will be anything but a figurehead. The mutually antagonistic party leaders, M5S’ Luigi Di Maio and the League’s Matteo Salvini, weren’t prepared to give way to each other and let the other have the job — hence Conte’s nomination, which still has to be approved by parliament.

The Economist magazine suggested he might end up as the fictional valet Truffaldino, a character in an 18th century Italian comedy entitled “Servant of Two Masters.” Whether he will be able to bridge disagreements between Di Maio and Salvini is unclear — and a testimony to that, say analysts, is the party leaders’ decision to set up a “conciliation committee” to adjudicate disputes.

“Nobody knows what will happen, because this is a government without precedent and the two parties are virtually incompatible,” said Sergio Fabbrini, director of the LUISS School of Government in Rome.

Economy

The parties were locked in dispute Friday with no agreement about who should occupy the key position of economy minister. The League has been pushing for 82-year-old economist Paolo Savona, a former industry minister who wants Italy to drop the euro as its currency, which he describes as “a German cage.” Savona opposed Italy signing in 1992 the Maastricht Treaty, a key document that started the process of closer EU political integration.

Even if the League fails in its bid to secure the economic portfolio for Savona, there are plenty of likely policy clashes ahead between the EU and Western Europe’s first all-populist government, despite the fact the League is no longer demanding Italy drop Europe’s single currency and M5S is no longer pushing for a referendum on Italy’s future EU membership.

Both party leaders now talk about reforming the EU from within.

Trouble ahead

Nonetheless, flashpoints are on the near horizon. Salvini, a hardline migrant opponent, is likely to become interior minister and will oversee the coalition’s agreed to anti-immigration plans, many of which are in violation of EU law. They include truncating asylum procedures, the forcible detention of irregular migrants and the repatriation of half-million migrants, most from sub-Saharan Africa, to their countries of origin.

Next month, EU leaders are due to extend the European bloc’s sanctions on Russia, but Italy’s coalition partners are opposed, viewing Moscow as a partner, rather than foe. Both M5S and the League want the sanctions lifted that were imposed on Russia for its 2014 annexation of Crimea.

Some analysts predict the new government’s slim majority — only seven in the Senate — as well as fiscal realities, will constrain the revolutionary fervor of Italy’s populists. But others envision instability and unpredictability in the weeks and months ahead.

On Friday, the European Commission’s vice-president for the euro, Valdis Dombrovskis, issued a stark warning to Italy: “Our message from the European Commission is very clear: that it is important Italy continues to stick with responsible fiscal and macro-economic policies.”

Markets Disrupted as Italy’s Populists Negotiate Cabinet

Italy’s prime minister-designate, Giuseppe Conte, a political novice and obscure law professor accused of padding his resume, put the finishing touches to his cabinet lineup Friday. And initial reaction from financial markets was far from approving.

Italian government bond prices slumped and the country’s ailing banks saw their stock prices hit an 11-month low. Italy’s outgoing economy minister, Pier Carlo Padoan, warned the incoming coalition government of the anti-establishment Five Star Movement (M5S) and far-right League not to underestimate the power of the markets.

“The most worrying aspect of the program, which this government is working on, is its underestimation of the consequences of certain choices,” Padoan told the Il Sole 24 Ore newspaper.

M5S and the League unveiled their government agreement a week ago, after more than 70 days of tortuous talks, following the country’s inconclusive parliamentary elections in March. The polls saw establishment parties trounced.

The coalition partners’ program includes massive tax cuts favoring the rich — a League demand — additional spending on welfare for the poor, and job-seekers and a roll-back of pension reforms that helped Italy weather the multi-year-long eurozone debt crisis which bankrupted Greece.

Investors — domestic and foreign — are expressing alarm about what the next few months may hold for an Italy governed by unlikely political partners. Fears include a public sector spending spree that will put Rome not only on a collision course with the European Union over budget rules. It also will weaken the already perilous state finances of Italy, the third largest economy in Europe and the second most indebted.

Some financial analysts say investors are becoming wary about European equities in general, fearing political and economic unpredictability in Italy could trigger contagion, prompting a new eurozone crisis. European markets were on track Friday to record collectively their first weekly decline since March — and investors last week withdrew the most money in nearly two years from western European funds.

“Investors should take caution as far as European equities go,” Boris Schlossberg, managing director of FX Strategy at BK Asset Management, told CNBC’s cable TV show Trading Nation this week.

Immigration

EU officials in Brussels and Italy’s half-a-million migrants are as anxious as investors. They are bracing for confrontations with the incoming populist government, whose two halves agree about very little, except when it comes to euro-skepticism and disapproval of migrants. M5S itself is split sharply between liberals and conservatives.

Earlier this week Italian President Sergio Mattarella approved Giuseppe Conte, aged 54, as the coalition’s nominee for prime minister — despite evidence that the academic had padded his resume with stints at New York University, Girton College, Cambridge and France’s prestigious Sorbonne. None of them had any record of his official attendance, although he was granted a visitor’s library card by NYU.

Conte also claimed in his resume to have founded a prominent Italian law practice, but was only an external contributor, according to the firm.

A figurehead?

Few here in Rome believe Conte, who was born in the southern region of Puglia, will be anything but a figurehead. The mutually antagonistic party leaders, M5S’ Luigi Di Maio and the League’s Matteo Salvini, weren’t prepared to give way to each other and let the other have the job — hence Conte’s nomination, which still has to be approved by parliament.

The Economist magazine suggested he might end up as the fictional valet Truffaldino, a character in an 18th century Italian comedy entitled “Servant of Two Masters.” Whether he will be able to bridge disagreements between Di Maio and Salvini is unclear — and a testimony to that, say analysts, is the party leaders’ decision to set up a “conciliation committee” to adjudicate disputes.

“Nobody knows what will happen, because this is a government without precedent and the two parties are virtually incompatible,” said Sergio Fabbrini, director of the LUISS School of Government in Rome.

Economy

The parties were locked in dispute Friday with no agreement about who should occupy the key position of economy minister. The League has been pushing for 82-year-old economist Paolo Savona, a former industry minister who wants Italy to drop the euro as its currency, which he describes as “a German cage.” Savona opposed Italy signing in 1992 the Maastricht Treaty, a key document that started the process of closer EU political integration.

Even if the League fails in its bid to secure the economic portfolio for Savona, there are plenty of likely policy clashes ahead between the EU and Western Europe’s first all-populist government, despite the fact the League is no longer demanding Italy drop Europe’s single currency and M5S is no longer pushing for a referendum on Italy’s future EU membership.

Both party leaders now talk about reforming the EU from within.

Trouble ahead

Nonetheless, flashpoints are on the near horizon. Salvini, a hardline migrant opponent, is likely to become interior minister and will oversee the coalition’s agreed to anti-immigration plans, many of which are in violation of EU law. They include truncating asylum procedures, the forcible detention of irregular migrants and the repatriation of half-million migrants, most from sub-Saharan Africa, to their countries of origin.

Next month, EU leaders are due to extend the European bloc’s sanctions on Russia, but Italy’s coalition partners are opposed, viewing Moscow as a partner, rather than foe. Both M5S and the League want the sanctions lifted that were imposed on Russia for its 2014 annexation of Crimea.

Some analysts predict the new government’s slim majority — only seven in the Senate — as well as fiscal realities, will constrain the revolutionary fervor of Italy’s populists. But others envision instability and unpredictability in the weeks and months ahead.

On Friday, the European Commission’s vice-president for the euro, Valdis Dombrovskis, issued a stark warning to Italy: “Our message from the European Commission is very clear: that it is important Italy continues to stick with responsible fiscal and macro-economic policies.”