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

Irish Regulator Opens Facebook Data Breach Investigation

Ireland’s data regulator has launched an investigation of Facebook over a recent data breach that allowed hackers access 50 million accounts which could potentially cost Facebook more than $1.6 billion in fines.

The Irish Data Protection Commission said Wednesday that it will look into whether the U.S. social media company complied with European regulations that went into effect earlier this year covering data protection.

It’s the latest headache for Facebook in Europe, where authorities are turning up the heat on dominant tech firms over data protection. Last month, European Union consumer protection chief Vera Jourova said that she was growing impatient with Facebook for being too slow in clarifying the fine print in its terms of service covering what happens to user data and warned that the company could face sanctions.

The commission said in a statement that it would examine whether Facebook put in place “appropriate technical and organizational measures to ensure the security and safeguarding of the personal data it processes.”

The commission said earlier this week the number of EU accounts potentially affected numbered less than 5 million.

Ireland, which is Facebook’s lead privacy regulator for Europe, is moving swiftly to investigate the U.S. tech company since the breach became public on Friday.

Facebook said Friday attackers gained the ability to “seize control” of user accounts by stealing digital keys the company uses to keep users logged in. They could do so by exploiting three distinct bugs in Facebook’s code.

The company said it has fixed the bugs and logged out the 50 million breached users — plus another 40 million who were vulnerable to the attack — in order to reset those digital keys. Facebook said it doesn’t know who was behind the attacks or where they’re based. Neither passwords nor credit card data was stolen. At the time, the company said it alerted the FBI and regulators in the U.S. and Europe.

Facebook on Wednesday didn’t immediately return a request for comment.

Facebook has faced a tumultuous year of security problems and privacy issues . News broke early this year that a data analytics firm once employed by the Trump campaign, Cambridge Analytica, had improperly gained access to personal data from millions of user profiles. Then a congressional investigation found that agents from Russia and other countries have been posting fake political ads since at least 2016. In April, Zuckerberg appeared at a congressional hearing focused on Facebook’s privacy practices.

The European Union implemented stronger data and privacy rules, known as General Data Protection Regulation, in May.

The case could prove to be the first major test of GDPR. Under the new rules, companies could be hit with fines equal to 4 percent of annual global turnover for the most serious violations. In Facebook’s case, that could amount to more than $1.6 billion based on its 2017 revenues.

The new rules also require companies to disclose any breaches within 72 hours. The commission said Facebook informed it that its internal investigation is continuing and that it is taking actions to “mitigate the potential risk to users.”

7-Year-Old Toy Reviewer on YouTube Becomes Toy Himself

Seven-year-old Ryan drew millions of views reviewing toys on YouTube. Now, he’s become a toy himself.

Walmart is selling action figures in his likeness, putty with his face on the packaging and other toys under the Ryan’s World brand. It’s a bet that kids, who are spending more time tapping tablets, will recognize Ryan from YouTube and want the toys he’s hawking.

The new line may also help Walmart lure former Toys R Us shoppers, as many chains make a play for those customers ahead of the holiday shopping season.

The first-grader, who’s been making YouTube videos for three years, has become a major influencer in the toy industry. The clips typically show him unboxing a toy, playing with it and then waving goodbye to viewers. His most watched video, in which Ryan hunts for large plastic eggs, has more than 1.5 billion views.

Toys featured in the videos can see a spike in sales, says Jim Silver, editor of toy review site TTPM.com. “Ryan is a celebrity,” he said. “Kids watch his videos. He’s entertaining.”

So much so that toymakers have paid Ryan and his parents to feature their products. Forbes magazine estimated that the Ryan ToysReview YouTube channel brought in $11 million last year, but his parents, Shion and Loann, declined to confirm that number or give any financial details about Ryan’s deals. They also do not give their last name or say where they live for privacy and safety reasons.

Ryan’s path from reviewer to tiny toy mogul started last year when his parents signed with Pocket.watch, a two-year-old company that works with several YouTube personalities to get their names on clothing, books and other products. Ryan is the first with a product line because of his large audience, Pocket.watch says.

Last month, Walmart started selling Ryan’s World bright-colored slime for $4, 5-inch Ryan action figures for $9 and french fry-shaped squishy toys for $18. The retailer is the exclusive seller of some of the line, including T-shirts and stuffed animals.

Whether kids will want them “all comes down to the toy,” says Silver, adding that hits are made on the playground, where youngsters show off their toys and tell others about it.

What Ryan does have is a built-in audience. A video of him searching the aisles of Walmart for Ryan’s World toys has nearly 10 million views in a month, and his YouTube page has more than 16 million subscribers. Anne Marie Kehoe, who oversees Walmart’s toy department, says a couple of thousand people showed up to a recent appearance at an Arkansas store just to see a kid “jumping around and acting crazy.”

Ryan, in a phone interview, says a lot of those people wanted his picture. He then left the phone call to play.

His parents, who stayed on the line, say Ryan spends about 90 minutes a week recording YouTube videos. They say he helped with the creation of some of the toys, like when he asked for an evil twin version of himself for a figurine.

“I’m always amazed at the point of view Ryan has,” said his dad, Shion.

Chris Williams, Pocket.watch’s founder and CEO, sees Ryan as a franchise, like how “Nickelodeon looks at SpongeBob.”

But unlike a cartoon sponge, Ryan will grow up. Williams says he expects the products to evolve with Ryan’s taste. And Ryan’s parents agree, saying they’re prepared to follow his interests as he gets older, like to video games.

“We can change,” Shion said.

5 Things You Need to Know About 2018 Election Security

As U.S. voters prepare to go to the polls for the November 6 midterm elections, federal, state and local officials are preparing, too. But whereas many voters are considering which candidates to support, government officials are doing all they can to make sure everyone who is eligible can cast a ballot and that those votes will be counted correctly.

Fears among many U.S. intelligence and security officials have been growing, dating back to before the 2016 U.S. presidential election when the Office of the Director of National Intelligence and the Department of Homeland Security accused Russia of orchestrating a campaign to hack into the emails of U.S. political organizations and selectively release them to the public.

“These thefts and disclosures are intended to interfere with the U.S. election process,” the joint statement said.

Following President Donald Trump’s election that November, the top three U.S. intelligence agencies issued a declassified report, accusing Russia of executing an unprecedented influence campaign “to undermine public faith in the U.S. democratic process.”

The January 2017 report from the CIA, the FBI and NSA also assessed that “[President Vladimir] Putin and the Russian government aspired to help President-elect Trump’s election chances when possible.”

But the report said Russia’s efforts to use disinformation to sway voters was only one problem. Another was the access Russia got, and maintained, to U.S. state and local electoral systems — though officials concluded Russia was not able to access systems that would have allowed it to physically change vote totals.

More recent U.S. intelligent assessments indicate that in the run-up to this year’s midterm election, the threats have expanded.

In July, Director of National Intelligence Dan Coats ominously declared the “warning lights are blinking red.”

Here are five things to know about the dangers to the electoral system and what the U.S. is doing about them:

Are the Russians interfering again in the U.S. election process?

Yes. “We continue to see a pervasive message campaign by Russia to try to weaken and divide the United States,” Coats told reporters during a White House briefing in August.

Coats previously described Russia’s efforts as “undeniable,” accusing Moscow at the annual Aspen Security Conference in July of “trying to undermine our basic values, divide us with our allies.”

But just how much Russia is doing to undermine the upcoming elections remains a question.

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

Since then, multiple intelligence and security officials have reiterated that the pace and scope of Russian activities do not match their 2016 efforts.

Microsoft has said hackers, using tactics similar to what Russia has used in the past, targeted the campaigns of at least three candidates running for Congress.

Sen. Claire McCaskill, a Democrat from Missouri, announced that suspected Russian hackers had targeted her campaign. Two Republican think tanks, the Hudson Institute and the International Republican Institute, also said they appear to have been targeted.

Are other countries following Russia’s lead and getting into the game this year?

Senior U.S. officials say they are “deeply concerned” about the growing use of influence operations, pointing to countries like China, Iran and North Korea as the biggest culprits after Russia.

Trump has been even more explicit, accusing Beijing of “attempting to interfere in our upcoming 2018 election, coming up in November, against my administration.”

China denies the charges. Still, a growing number of U.S. intelligence and security officials warn that Beijing has the capabilities to do as much, if not more, than Russia did in 2016.

There also is evidence Iran has been trying to expand its influence operations. In September, social media giants Facebook and Twitter announced they had removed hundreds of pages and accounts linked to an Iranian-based campaign that targeted the U.S. as well as other countries.

What are state election officials and political parties doing to protect against the hacking of election machinery?

All 50 U.S. states are working with the Department of Homeland Security (DHS) to help harden their election infrastructures against attacks.

Every state, as well as almost 1,000 local jurisdictions, has enrolled in the Elections Infrastructure Information Sharing and Analysis Center (EI-ISAC), to make it easier to share information about threats.

The federal government has also made an additional $380 million in grants available to state officials to help improve election-related cybersecurity, purchase new voting equipment or improve voter registration systems. Organizations for state officials, like the National Conference of State Legislatures, have also helped pool resources and take advantage of best practices. Several states have also passed new laws to improve election cybersecurity.

But the relationship between the states and the federal government has been uneasy, with some state officials voicing concerns that the Department of Homeland Security was going too far in asserting authority over state and local elections. Still, Homeland Security Secretary Kristjen Nielsen has expressed confidence about reducing the “trust deficit.”

“We have made tremendous strides,” Nielsen said, though she added states would benefit from consistent funding for ongoing security improvements.

What is the federal government doing to try to foil foreign meddling in the election process?

Officials have been working on several fronts to secure the upcoming vote from attacks.

In September, the White House unveiled a new National Cyber Strategy, promising a more aggressive approach in order to deter any sort of cyberattack or intrusion.

“We’re not just on defense,” National Security Advisor John Bolton said. “We’re going to do a lot of things offensively, and I think our adversaries need to know that.”

President Trump also signed an executive order promising to seek retribution, using sanctions and a range of other penalties, against any person, group or country assessed to have meddled in the election.

“We are engaged every single day,” U.S. Cyber Command’s Gen. Paul Nakasone said in September, though he refused to share any specifics.

The U.S. has also tried to hold Russia accountable for its efforts to meddle in the 2016 election, indicting 12 Russians affiliated with the country’s GRU intelligence agency for hacking into Hillary Clinton’s presidential campaign and the Democratic Party.

At the same time, the Department of Homeland Security has been working with all 50 U.S. states to harden the country’s election infrastructure against possible attacks. Those efforts include information sharing and analysis, and deploying network intrusion sensors that can help detect attacks in real time.

DHS said 90 percent of Americans will be voting in areas covered by these sensors.

Will the 2018 midterm elections be secure?

U.S. officials say the election infrastructure is secure and that Americans should trust that their votes will count.

“We currently have no indication that a foreign advisory intends to disrupt our election infrastructure,” Homeland Security Secretary Nielsen said, though she cautioned U.S. adversaries are unlikely to give up altogether.

“We’re constantly on alert,” she said. “We know they have the capability and we know they have the will.”

But protecting and securing U.S. election systems is just part of the challenge. Intelligence officials warn stopping disinformation campaigns is far more difficult because countries like Russia, China and Iran are able to take advantage of social media and U.S. laws that protect freedom of expression.

Government officials have been working with social media companies, like Facebook and Twitter, to remove accounts used by trolls and bots to spread propaganda and false information.

The companies also say they have been more active.

Facebook Chief Operating Officer Sheryl Sandberg told lawmakers in September that the company is “blocking millions of attempts to register false accounts each and every day” and has been “making progress on fake news.”

Still, U.S. intelligence officials said they have no way of knowing when or if one bit of disinformation will cause an individual to change how he or she is going to vote.

Senators Spar Over FBI Probe of Kavanaugh, Trump Mocks His Accuser

As U.S. senators await the result of an FBI investigation and prepare for a potential final vote on President Donald Trump’s Supreme Court nominee, Brett Kavanaugh, Trump used part of a political rally to mock a woman who has accused Kavanaugh of sexually assaulting her.

The FBI investigation was launched Friday, one day after Christine Blasey Ford told the Senate Judiciary Committee that Kavanaugh assaulted her at a high school party. Kavanaugh angrily denied the charges hours later and accused Democrats of orchestrating a “political hit” against him.

In front of a crowd of supporters Tuesday night in Mississippi, Trump gave an apparent re-enactment of Ford’s testimony, mockingly portraying what he described as holes in her testimony.

“How did you get home? ‘I don’t remember.’ How did you get there? ‘I don’t remember,'” Trump said.

Ford told the Senate Judiciary Committee she was “100 percent certain” it was a drunken Kavanaugh who pinned her down on a bed, groped her, tried to take off her clothes, and put his hand over her mouth to muffle her screams for help. Kavanaugh testified he has never assaulted anyone.

Ford’s lawyer, Michael Bromwich, called Trump’s attack Tuesday “vicious, vile and soulless.”

“Is it any wonder that she was terrified to come forward, and that other sexual assault survivors are as well? She is a remarkable profile in courage. He is a profile in cowardice,” Bromwich wrote on Twitter.

Earlier Tuesday, Senate Republicans and Democrats sparred over the ongoing FBI investigation, which is expected to be completed by Friday.

Majority Leader Mitch McConnell said the confirmation vote will occur once senators of both parties have a chance to review the FBI’s conclusions.

“What I can tell you with certainty is that we’ll have an FBI report this week and we’ll have a vote this week,” McConnell told reporters.

Democrats, meanwhile, demanded that the White House divulge its instructions to the FBI in ordering the investigation, that the FBI’s report be made public, and that the bureau’s lead investigators brief senators about their their findings.

“We need to be briefed by the FBI, by the agent in charge,” Minority Leader Chuck Schumer, a New York Democrat, said. “The FBI must not be handcuffed, and their results should be made public.”

In the days since the FBI probe began, one of the nominee’s former classmates at Yale University issued a statement alleging that, as a student, Kavanaugh was “a frequent drinker and a heavy drinker” who often became “belligerent and aggressive” during his binges. 

On Monday, President Trump told reporters the FBI had the authority to interview anyone it desired, pushing back against charges by Senate Democrats that the White House is limiting the scope of the investigation.

At the Capitol, Schumer said questions surrounding Kavanaugh extend beyond sexual assault and now encompass his truthfulness and judicial temperament.

“It’s hard to believe what Judge Kavanaugh swore under oath,” Schumer said. “He sure didn’t show the demeanor of a judge at the hearing.”

Republicans accused Democrats of attempting to destroy the nominee’s reputation for political gain.

“[Democrats] will not be satisfied unless they have brought down Judge Kavanaugh’s nomination,” McConnell said. “The floodgates of mud and muck opened entirely on Brett Kavanaugh and his family.”

“It’s not fair to Judge Kavanaugh to string this matter along further,” Majority Whip John Cornyn of Texas said. “This has become a national embarrassment.”

Democrats countered that brief delays in voting on Kavanaugh pale in comparison to Republicans refusing to consider former President Barack Obama’s final Supreme Court nominee, Merrick Garland, for most of 2016.

Republicans hold a 51-49 Senate majority heading into next month’s midterm elections that will determine which political party controls both houses of Congress.

So far, no Democrat has announced support for Kavanaugh and no Republican has declared opposition to him.

Richard Green and Kenneth Schwartz contributed to this report.

Senators Spar Over FBI Probe of Kavanaugh, Trump Mocks Accuser

As U.S. senators await the result of an FBI investigation and prepare for a potential final vote on President Donald Trump’s Supreme Court nominee, Brett Kavanaugh, Trump used part of a political rally to mock a woman who has accused Kavanaugh of sexually assaulting her.

The FBI investigation was launched Friday, one day after Christine Blasey Ford told the Senate Judiciary Committee that Kavanaugh assaulted her at a high school party. Kavanaugh angrily denied the charges hours later and accused Democrats of orchestrating a “political hit” against him.

Ford told the Senate Judiciary Committee she was “100 percent certain” it was a drunken Kavanaugh who pinned her down on a bed, groped her, tried to take off her clothes, and put his hand over her mouth to muffle her screams for help. Kavanaugh testified he has never assaulted anyone.

In front of a crowd of supporters Tuesday night in Mississippi, Trump gave an apparent re-enactment of Ford’s testimony, mockingly portraying what he described as holes in her testimony.

“How did you get home? ‘I don’t remember.’ How did you get there? ‘I don’t remember,'” Trump said.

Ford’s lawyer, Michael Bromwich, called Trump’s attack Tuesday “vicious, vile and soulless.”

“Is it any wonder that she was terrified to come forward, and that other sexual assault survivors are as well? She is a remarkable profile in courage. He is a profile in cowardice,” Bromwich wrote on Twitter.

Trump’s comments about Ford triggered strong reactions from several senators, some of whom are undecided about whether to vote in favor of Kavanaugh’s nomination.

“There’s no time and place for remarks like that,” Republican Senator Jeff Flake said Wednesday on NBC’s “Today” show. “To discuss something this sensitive at a political rally is just not right. I wish he hadn’t done it,” he said, adding “it’s kind of appalling.”

Republican Senator Susan Collins also condemned Trump’s comments, saying on CNN Wednesday they “were just plain wrong.”

Senator Richard Blumenthal, a Democrat and frequent critic of Trump, said on CNN “this vile, mocking attack on a credible, immensely powerfully eloquent survivor of sexual assault is a mark of disrespect and disregard not only for Dr. Blasey Ford but the entire community.”

Independent Senator Angus King said on CNN’s “New Day” Trump’s remarks “made me feel sort of sick.”

Earlier Tuesday, Senate Republicans and Democrats sparred over the ongoing FBI investigation, which is expected to be completed by Friday.

Majority Leader Mitch McConnell said the confirmation vote will occur once senators of both parties have a chance to review the FBI’s conclusions.

“What I can tell you with certainty is that we’ll have an FBI report this week and we’ll have a vote this week,” McConnell told reporters.

Democrats, meanwhile, demanded that the White House divulge its instructions to the FBI in ordering the investigation, that the FBI’s report be made public, and that the bureau’s lead investigators brief senators about their their findings.

“We need to be briefed by the FBI, by the agent in charge,” Minority Leader Chuck Schumer, a New York Democrat, said. “The FBI must not be handcuffed, and their results should be made public.”

In the days since the FBI probe began, one of the nominee’s former classmates at Yale University issued a statement alleging that, as a student, Kavanaugh was “a frequent drinker and a heavy drinker” who often became “belligerent and aggressive” during his binges.

On Monday, President Trump told reporters the FBI had the authority to interview anyone it desired, pushing back against charges by Senate Democrats that the White House is limiting the scope of the investigation.

At the Capitol, Schumer said questions surrounding Kavanaugh extend beyond sexual assault and now encompass his truthfulness and judicial temperament.

“It’s hard to believe what Judge Kavanaugh swore under oath,” Schumer said.”He sure didn’t show the demeanor of a judge at the hearing.”

Republicans accused Democrats of attempting to destroy the nominee’s reputation for political gain.

“[Democrats] will not be satisfied unless they have brought down Judge Kavanaugh’s nomination,” McConnell said. “The floodgates of mud and muck opened entirely on Brett Kavanaugh and his family.”

WATCH: Senators split on Kavanaugh

“It’s not fair to Judge Kavanaugh to string this matter along further,” Majority Whip John Cornyn of Texas said. “This has become a national embarrassment.”

Democrats countered that brief delays in voting on Kavanaugh pale in comparison to Republicans refusing to consider former President Barack Obama’s final Supreme Court nominee, Merrick Garland, for most of 2016.

Republicans hold a 51-49 Senate majority heading into next month’s midterm elections that will determine which political party controls both houses of Congress.

So far, no Democrat has announced support for Kavanaugh and no Republican has declared opposition to him.

Richard Green and Kenneth Schwartz contributed to this report.

Kavanaugh Controversy Deepens Division Between Parties

The controversy over U.S. President Donald Trump’s nominee for a Supreme Court justice continues while U.S. senators await an FBI report on the allegations of past misconduct by Judge Brett Kavanaugh. Leading Republican and Democratic senators clashed Tuesday over the delay in the vote on Kavanaugh’s nomination. VOA’s Zlatica Hoke reports.

Trade Pact Clause Seen Deterring China Deal with Canada, Mexico

China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries, trade experts said on Tuesday.

The provision specifies that if one of the current North American Free Trade Agreement partners enters a free trade deal with a “non-market” country such as China, the others can quit in six months and form their own bilateral trade pact.

The clause, which has stirred controversy in Canada, fits in with U.S. President Donald Trump’s efforts to isolate China economically and prevent Chinese companies from using Canada or Mexico as a “back door” to ship products tariff-free to the United States.

The United States and China are locked in a spiraling trade war that has seen them level increasingly severe rounds of tariffs on each other’s imports.

Under the clause, the countries in the updated NAFTA, renamed the U.S.-Mexico-Canada Agreement (USMCA), must notify the others three months before entering into such negotiations.

Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said the provision gave the Trump administration an effective veto over any China trade deal by Canada or Mexico.

If repeated in other U.S. negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system.

“For both Canada and Mexico, we have a reason to think an FTA with China is a possibility. It’s not imminent, but this is a very elegant way of dealing with that,” Scissors said.

“There’s no China deal that’s worth losing a ratified USMCA,” Scissors added.

After months of bashing its Western allies on trade, the Trump administration is now trying to recruit them to join the United States in pressuring China to shift its trade, subsidy and intellectual property practices to a more-market driven focus.

Beijing has demanded that the World Trade Organization recognize it as a “market economy” since its WTO accession agreement expired in December 2016, a move that would severely limit Western trade defenses against cheap Chinese goods.

But the United States and European Union are challenging the declaration, arguing that Chinese state subsidies fueling excess industrial capacity, the exclusion of foreign competitors and other practices are signs it is still a non-market economy.

Canadian Sovereignty Questioned

Canadian Prime Minister Justin Trudeau’s Liberal government, seeking to diversify Canada’s export base, held exploratory talks with China on trade in 2016, but a launch of formal negotiations has failed to materialize.

Tracey Ramsey, a legislator for Canada’s left-leaning New Democrats, said in the House of Commons on Tuesday that the clause was “astonishing” and a “severe restriction on Canadian independence.”

“Part of Canada’s concessions in this deal was to include language that holds Canada hostage to the Americans if we decide to trade with another country,” Ramsey said. “Why did the Liberal (Party) give the go-ahead for the U.S. to pull us into their trade wars?”

Canadian Finance Minister Bill Morneau downplayed the provision, arguing it was not significantly different from NAFTA’s clause that allows any member to leave the pact in six months’ time for any reason.

“It is largely the same. It recognizes though that the non-market economy is of significant importance as we move forward. But I don’t think it’s going to make a material difference in our activities,” Morneau told a business audience.

Mexico’s business community sided with the Trump administration in endorsing the pact.

“We are associating ourselves with countries that promote market freedom and that promote free trade in the world, free trade under equal circumstances,” said Juan Pablo Castañon, head of the Consejo Coordinador Empresarial (CCE), which represented Mexico’s private sector during the NAFTA trade talks.

Flake, Coons Forge Rare Bond in US Senate

Republican Sen. Jeff Flake of Arizona and Democratic Sen. Chris Coons of Delaware forged their friendship in Africa, thousands of miles away from the divisiveness of Washington.

Both spent formative time there as young men in the early 1980s — Coons studying in Kenya during college, Flake doing his mission for the Mormon church in southern Africa — and they bonded over their shared interest on a Senate Foreign Relations subcommittee. They traveled to the continent multiple times together, fighting wildlife trafficking, promoting economic development, spending time with a dictator and even being chased by elephants once in 2016.

Flake, who is retiring from Congress this year, said at an event with Coons in Washington on Tuesday that it was that bipartisan bonding — so rare in the Senate these days — that made it possible for them to come together last week and urge an FBI investigation into sexual assault accusations against Supreme Court nominee Brett Kavanaugh. The development delayed Kavanaugh’s final confirmation vote and eased, temporarily, some of the partisan wrath over the nomination.

“We’ve been through a lot,” Flake said, recounting, among other adventures, a four-hour meeting with former Zimbabwean dictator Robert Mugabe and a safari outing gone wrong that led to elephants chasing their vehicle. “And the trust that you develop working with each other on issues like that … that’s how compromises are possible, and there’s less and less of that going on.”

Rare relationships

Bipartisan friendships, especially in the Senate, weren’t always so rare. But in 2018, locked in a political fight that could determine the direction of the Supreme Court for a generation, senators have found little reason to reach across the aisle.

Flake’s decision to call for an FBI investigation came a day after an all-day hearing in which California professor Christine Blasey Ford testified that she was sexually assaulted by Kavanaugh in the early 1980s when both were in high school. Kavanaugh also testified, forcefully denying the claim and blaming Democrats.

At a Senate Judiciary Committee meeting the next day, Republicans angrily defended Kavanaugh and some Democrats walked out, protesting a committee vote on Kavanaugh they said was being rushed.

Coons stayed in the room and proposed a one-week delay, in which time an FBI investigation could be conducted. Flake later called it a “sober, rational speech.”

After Coons spoke, Flake walked around the dais, tapped him on the shoulder and motioned into the anteroom, where the two began negotiations. With tight margins in the Senate, Flake had the power to withhold his vote and force an investigation. Republicans and Democrats were in and out of the anteroom, but Flake wanted to talk to Coons, and at one point the two ended up alone in a small phone booth for privacy.

‘It felt real’

Sen. Amy Klobuchar, D-Minn., was an early part of the discussions. She said Flake listened to others, but that his friendship with Coons was a key part of his final decision.

“What I liked about it was that it felt real,” she said of the talks between them.

On Friday, shortly after the deal was announced, Coons teared up talking about Flake, calling him his “role model” and mentioning their trips to Africa. He said then that Flake feels passionately that division in the U.S. “teaches the wrong thing to the world about our democracy, and suggests that we are not able to respect each other or work together.”

Several days later, Coons told The Associated Press that he sees his friendship with Flake as in the mold of two other senators from Delaware and Arizona: former Vice President Joe Biden and the late Republican Sen. John McCain, who died this summer after battling brain cancer. Each served more than three decades in the Senate, and Biden gave a eulogy at one of McCain’s funerals in August.

Coons and Flake attended McCain’s funeral together.

“I am determined, in John’s memory, to try to keep building relationships like that,” Coons said. “And Jeff has been one of the greatest partners I’ve had in my eight years here.”

Coons says he’s emotional about Flake’s decision to retire, which came after differences with President Donald Trump and others in his party. He said he is also struggling with the retirement of Senate Foreign Relations Committee Chairman Bob Corker, R-Tenn., with whom he has worked closely, and the death of McCain. All three questioned Trump’s leadership and occasionally bucked their party.

Coons says he has considered not running for re-election in 2020, but “I look forward to considering to serve if I can find legislative partners comparable to Jeff Flake and Bob Corker, whom I will dearly miss.” He noted this year’s Democratic primary in his state, in which longtime Democratic Sen. Tom Carper was challenged from the left. Carper won the race handily, but Coons says he is concerned in some ways about the increasingly divisive direction of politics within his party.

He adds, somewhat jokingly: “No rational person would do this job and say, ‘I’m loving it.’ ”

Trust is key

Virginia Sen. Mark Warner, the top Democrat on the Senate Intelligence Committee who has worked closely with the Republican chairman, North Carolina Sen. Richard Burr, on the panel’s Russia investigation, says bipartisan relationships are rooted in deep trust.

“I think that’s what Americans want from us, to have these relationships,” Warner said, “It means at some point you have to be willing to show that you aren’t always going to be reflexively for your own team.”

Flake is less certain that voters want to see cooperation. He says there’s no currency, or incentives, to work together in a polarized political climate. He says he is leaving the Senate because he “simply couldn’t run the kind of campaign I figured I’d need to run.”

Speaking of Coons, he said, “The thing I will miss the most about the Senate is relationships like this.”

Trump to Meet With Google CEO, Other Tech Heads in October

U.S. President Donald Trump plans to meet with Google CEO Sundar Pichai and other tech executives this month at a social media summit.

White House economic adviser Larry Kudlow said Tuesday that the administration hoped Facebook and Twitter would send representatives to the meeting. Kudlow added the event would most likely happen in mid-October, though no date has been set.

Prominent conservatives, including the president, have accused Facebook, Google and Twitter of silencing right-leaning voices on their platforms, a suspected practice called “shadow banning.”

Kudlow had a meeting with Pichai last Friday, which he described as “great.”

Pichai drew flack from senators last month after failing to send an executive to a hearing, and he has agreed appear at another.

China’s Private Enterprises Feel Squeeze on All Fronts

As trade tensions between Beijing and Washington worsen, a debate is intensifying in China over the role private and state-owned enterprises play in the economy. The debate has even stoked fears that the communist-led government is preparing to nationalize private industries, analysts say.

Under Xi Jinping’s leadership and especially over the past year, after he scrapped rules on term limits for the president, allowing him to potentially carry on as China’s ruler for life, the communist party has begun re-asserting its dominance over all segments of society, including business.

Party on top

 

In June, the party announced it was mandating all listed companies set up party organizations for their employees. Over the past two weeks, as tensions with Washington have ratcheted up, there have been articles posted online suggesting it was time private enterprises step aside and that China should move toward a large scale centralized private-public mixed economy.

 

“The private economy has accomplished its mission to help the public economy develop and it should gradually step aside,” said Wu Xiaoping, a veteran financier, in one article.

Despite a backlash, even from state media, the fact that the article was not immediately taken down was a sign the government was testing the waters to see the public’s response, said said Frank Xie, an associate professor at the University of South Carolina Aiken.

“In China when there is something that the government doesn’t want people to hear, it won’t survive, as soon as it surfaces on the internet, on Wechat, it will be deleted and removed, right away” Xie said. “And yet this thing, the call by this guy stayed there for so long.”

A more recent comment from the Qiu Xiaoping, deputy secretary of the Ministry of Personnel and Social Affairs, was also met with a backlash. In recent remarks, Qiu said private enterprises need to be more democratic, allow for more participation in management and help strengthen the leadership of the party.

Private assurances

Chinese officials have given assurances that private companies would be looked after. During a visit to the northeastern province of Liaoning late last week, President Xi urged private companies to be confident.

He also pledged that the party would unswervingly develop, support, guide and protect the private sector. Whether Xi’s remarks meant getting more involved in private companies’ affairs was unclear.

Clearly, the private sector is deeply concerned.

 

“Against the backdrop of the U.S.-China trade war there are concerns that the Chinese economy will contract and that Chinese leaders may sacrifice private enterprises to prop up state-owned enterprises,” said Lu Suiqi, an associate professor of economics at Peking University.

Lu said that despite assurances, the commanding role that state-owned enterprises enjoy is unlikely to change.

 

State-owned enterprises have long enjoyed a monopoly over key lucrative industries in China. They’ve also long been a hotbed for corruption. And yet, despite their access to 70 percent of the country’s financial resources, they account for around 30 percent of the economy.

 

Private enterprises receive less access to capital and yet account for 80 percent of employment as well as contributing to 60 percent of the economic growth.

 

But while many in and outside of China see SOEs dragging China’s economy down and as an obstacle to free trade — state owned enterprises are a key part of Washington’s trade complaints — the party is likely to continue its effort to expand the size of state-controlled enterprises.

 

“Whether it is nationalizing private enterprises or making state owned enterprises bigger, it is all about expanding control,” said Darson Chiu, a research fellow at the Taiwan Institute of Economic Research. From China’s point of view, “expanding the size of SOEs, will make it easier to promote a planned economy and manage risks.”

 

That is the opposite of what President Donald Trump is asking China to do and if Beijing does press forward, the two will be on a collision course, said Frank Xie.

 

“It’s only going to encourage Trump to move to the next step, with another $267 billion in tariffs,” Xie said.

 

Survive

 

But serious risks are what China is facing, and it is not just the trade war. China’s stock market is at its lowest point in nearly four years and industrial growth has slowed for four consecutive months.

The Chinese economy is facing a range of problems, including massive government and corporate debt combined with tightening liquidity.

 

Just last week, the head of China’s biggest real estate firm Vanke created a stir online when he announced at a regular meeting that the company’s main goal is to “survive.”

Speaking at an internal meeting, where red banners with the same words “survive” were hung, Vanke Chairman Yu Liang said China is currently at a turning point and no industry will be spared the from negative economic impacts.

Amazon Raising Minimum Wage for US Workers to $15 Per Hour

Amazon is boosting its minimum wage for all U.S. workers to $15 per hour starting next month.

The company said Tuesday that the wage hike will benefit more than 350,000 workers, which includes full-time, part-time, temporary and seasonal positions. It includes Whole Foods employees. Amazon’s hourly operations and customer service employees, some who already make $15 per hour, will also see a wage increase, the Seattle-based company said.

 

Amazon has more than 575,000 employees globally.

 

Pay for workers at Amazon can vary by location. Its starting pay is $10 an hour at a warehouse in Austin, Texas, and $13.50 an hour in Robbinsville, New Jersey. The median pay for an Amazon employee last year was $28,446, according to government filings, which includes full-time, part-time and temporary workers.

 

Amazon said its public policy team will start pushing for an increase in the federal minimum wage of $7.25 per hour.

 

“We intend to advocate for a minimum wage increase that will have a profound impact on the lives of tens of millions of people and families across this country,” Jay Carney, senior vice president of Amazon global corporate affairs, said in a statement.

 

 

Battle Over Kavanaugh Intensifies Midterm Campaign

In five weeks, U.S. voters head to the polls to elect a new Congress and the outcome will have a profound impact on the next two years of Donald Trump’s presidency. Intensity is building for the Nov. 6 election, especially among opposition Democrats seeking to win back control of the House of Representatives. But the polarizing battle over Supreme Court nominee Brett Kavanaugh seems to be mobilizing voters in both political parties, as we hear from VOA National correspondent Jim Malone.

Kavanaugh Nomination Puts US Senate to the Test

A basic function of America’s constitutional system, filling a Supreme Court vacancy, has been thrown into chaos following accusations of sexual misconduct against nominee Brett Kavanaugh and the intrusion of hyper-partisanship into the judicial confirmation process. VOA’s Michael Bowman reports, the Senate is under intense scrutiny as it struggles to provide “advice and consent” in confirming or rejecting a Supreme Court nominee one month before midterm elections that could reshape Congress.

Mexican Auto Parts Makers See New Trade Deal Boosting Output

Auto parts output in Mexico will jump about 10 percent over the next three years as automakers scramble to adhere to stricter content rules laid out in a new North American trade deal, a top industry executive said on Monday.

The United States and Canada reached an agreement on Sunday after weeks of tense bilateral talks to update the 1994 North American Free Trade Agreement (NAFTA). Mexico and the United States first brokered a bilateral accord in late August.

The new trilateral deal, called the United States-Mexico-Canada Agreement (USMCA), will raise the minimum North American content threshold for cars needed to qualify for duty-free market access to 75 percent from 62.5 percent.

“Carmakers, especially Asian and European carmakers, will have to invest more in tools, in North American components to comply with the new content rules,” Oscar Albin, head of Mexican auto parts industry association INA, said in an interview.

The so-called rules of origin dictate what percentage of a car needs to be built in North America in order to avoid tariffs in the trade deal.

General Motors Co., Ford Motor Co., Fiat Chrysler Automobiles Germany’s Volkswagen AG, Japan’s Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. all build autos in Mexico.

“The American carmakers already have a very well-established footprint in the United States and Mexico” and will more easily adhere to the stricter content rules, Albin told Reuters.

The new rules should boost auto parts production from about $90 billion annually at present to “around $100 billion” over the next three years, he added. In the course of that period, the sector should add about 80,000 new jobs, Albin said.

Stocks in auto parts firms were lifted by the deal.

Shares in Nemak, the auto parts unit of Mexican industrial conglomerate Alfa, closed up by more than 8.5 percent. Stock in Mexican auto parts maker Rassini rose by more than 4.5 percent.

“The United States and Canada will also grow since the three countries will benefit (from the new agreement),” said Albin.

The deal set a five-year transition period once the accord enters into force to meet the new content requirements.

That looked like a tough deadline, Albin said.

“I think (time) is a bit short because any adjustment or change of the supply (chain) for cars already being assembled is practically impossible,” he said.

U.S. President Donald Trump had put creating more manufacturing jobs at the heart of his desire to rework NAFTA.

How NAFTA 2.0 Will Shake Up Business as Usual

American dairy farmers get more access to the Canadian market. U.S. drug companies can fend off generic competition for a few more years. Automakers are under pressure to build more cars where workers earn decent wages.

The North American trade agreement hammered out late Sunday between the United States and Canada, following an earlier U.S.-Mexico deal, shakes up — but likely won’t revolutionize — the way businesses operate within the three-country trade bloc.

The new United States-Mexico-Canada Agreement replaces the 24-year-old North American Free Trade Agreement, which tore down trade barriers between the three countries. But NAFTA encouraged factories to move to Mexico to take advantage of low-wage labor in what President Donald Trump called a job-killing “disaster” for the United States.

Sunday’s agreement is meant to bring manufacturing back to the United States. The president, never known for understatement, said the new deal would “transform North America back into a manufacturing powerhouse.”

But America had to make some concessions, too. For example, it agreed to retain a NAFTA dispute-resolution process that it wanted to jettison but Canada insisted on keeping.

Overall, financial markets were relieved the countries reached a deal. For a time, it had looked like Trump might pull out of a regional free trade pact altogether — or strike one without Canada, America’s No. 2 trading partner. At noon Monday, the Dow Jones industrial average was up more than 240 points.

Economists, trade attorneys and businesses are still parsing the agreement. But here’s an early look at what it means for different players.

How dairy farmers are affected

Trump has raged about Canada’s tariffs on dairy imports, which can approach 300 percent. American dairy farmers have also complained about Canadian policies that priced the U.S. out of the market for some dairy powders and allowed Canada to flood world markets with its own versions.

The new agreement ends the discriminatory pricing and restricts Canadian exports of dairy powders.

It also expands U.S. access to up to 3.75 percent of the Canadian dairy market (versus 3.25 percent in the Trans-Pacific Partnership agreement the Obama administration negotiated but Trump nixed his first week in office). Above that level, U.S. dairy farmers will still face Canada’s punishing tariffs. And the “supply management” system Canada uses to protect its farmers is still largely in place.

Still, trade attorney Daniel Ujczo of the Dickinson Wright law firm said that “the U.S. dairy industry seems happy … for now.”

Shaking things up for automakers

NAFTA remade the North American auto market. Automakers built complicated supply chains that straddled NAFTA borders. In doing so, they took advantage of each country’s strengths — cheap labor in Mexico, and skilled workers and proximity to customers in the United States and Canada.

The new agreement changes things up. For one thing, the percentage of a car’s content that must be built within the trade bloc to qualify for duty-free status rises to 75 percent from 62.5 percent. A bolder provision requires that 40 percent to 45 percent of a car’s content be built where workers earn $16 an hour. That is meant to bring production back to the United States or Canada and away from Mexico (and perhaps to put some upward pressure on Mexican wages).

The provisions could drive up car prices for consumers.

The new deal also provides some protection to Canada and Mexico if Trump goes ahead with his threat to slap 20 percent to 25 percent taxes on imported cars, trucks and auto parts. It would exclude from the proposed tariffs 2.6 million passenger vehicles from both Canada and Mexico.

The impact on multinational companies  

Like other U.S. trade agreements, NAFTA allowed multinational companies to go to private tribunals to challenge national laws they said discriminated against them and violated the terms of the trade agreement. Critics charged the process gave companies a way to get around environmental and labor laws and regulations they didn’t like, overruling democratically elected governments in the process.

U.S. Trade Rep. Robert Lighthizer, who negotiated the new deal, had another complaint: The tribunals took some of the risk out of investing in unstable or corrupt countries such as Mexico. Why, Lighthizer argued, should the United States negotiate deals that encourage investment in other countries?

The new pact scales back provisions protecting foreign investment. Lori Wallach, director of Public Citizen’s Global Trade Watch and a sharp critic of NAFTA, praised the new agreement for reining in what she called NAFTA’s “outrageous” tribunal system that had allowed big companies to launch “attacks on environmental and health policies.”

Windfall for drug companies

The new trade pact delivers a windfall to pharmaceutical companies that make biologics — ultra-expensive drugs produced in living cells. It gives them 10 years of protection from generic competition, up from eight the Obama administration had negotiated in the TPP.

But good news for the pharmaceutical industry could be bad news for users of the drugs and for government policymakers trying to hold down health-care costs.

“New monopoly privileges for pharmaceutical firms … could undermine reforms needed to make medicine more affordable here and increase prices in Mexico and Canada, limiting access to lifesaving medicines,” Wallach said.

Some retailers benefit, other do not

The United States pressured Canada and Mexico to raise the dollar amount that shipments must reach before they become subject to import duties. Canada, for instance, will allow tax- and duty-free shipments worth up to 40 Canadian dollars (about $31), up from 20 Canadian dollars ($16) under NAFTA.

The change makes U.S. products more competitive in Canada because they will be subject to less tax at the border — and delivers savings to Canadians who shop online. However, trade attorney Ujczo notes, the higher threshold poses a threat to Canadian retailers. 

Kavanaugh Battle Intensifies Midterm Campaign

In five weeks, U.S. voters head to the polls to elect a new Congress and the outcome will have a profound impact on the next two years of Donald Trump’s presidency.

Intensity is building for the Nov. 6 election, especially among opposition Democrats seeking to win back control of the House of Representatives.  But both parties could become energized, depending on the outcome of the polarizing confirmation battle over Supreme Court nominee Brett Kavanaugh.

During the weekend, President Trump was on the campaign trail in West Virginia, whipping up support for Kavanaugh and blasting Democrats.

“I’m not running, but I’m really running and that is why I am all over the place fighting for great candidates,” Trump told the crowd in Wheeling, West Virginia.  “You see what is going on, you see those horrible, horrible, radical group of Democrats and you see it happening right now.”

Emotional hearing

The fight over Kavanaugh has animated those in favor of the judge and those opposed in the wake of a sexual assault allegation made by California professor Christine Blasey Ford.

Ford detailed the alleged assault in emotional and riveting testimony last week before the Senate Judiciary Committee.

“Brett’s assault on me drastically altered my life.  For a very long time, I was too afraid and ashamed to tell anyone the details.”

Supporters have rallied around Kavanaugh after the judge issued a combative denial later in the hearing.

“This confirmation process has become a national disgrace.  You have replaced advice and consent with search and destroy.”

A final Senate vote on Kavanaugh is on hold until the FBI completes an investigation related to the allegations aired in the Senate Judiciary Committee hearing.  Trump said Monday he wants a “comprehensive investigation” but he also added, “I’d like it to go quickly.”

Declining support

A new Quinnipiac University poll found that 48 percent of Americans surveyed oppose Kavanaugh’s confirmation, while 42 percent are in favor.  Women voters in particular oppose Kavanaugh’s appointment by a margin of 55 to 37 percent.  Men support the judge, 49 to 40 percent.

Amid the furor over Kavanaugh, Trump is making a furious push around the country to help Republicans hold their narrow majority in the Senate.

“Promise me, you have to get out for the midterms,” Trump implored supporters during a recent rally in Las Vegas, Nevada.  “Don’t be complacent.  You have got to get out for the midterms.  You have got to vote.”

Many Democrats seem cautiously optimistic about their chances in November of flipping the House of Representatives back under their control.

But even House Democratic leader Nancy Pelosi says the party still has to follow through by turning out voters.  “Seeing the urgency and willing to take responsibility for what happens, understanding that you have to vote.  If you don’t vote, everything else is a conversation.”

And Democrats are also taking advantage of some star power of their own to rev up the party base including Trump’s predecessor, Barack Obama.

Obama recently rallied Democrats in Pennsylvania, targeting those who have skipped voting in past midterm elections.

“They will say, ‘Well, I am going to wait until the presidential election.’  This one is actually more important.  This is actually more important than any election that we have seen in a long time.”

Trump as motivator

For both sides, there is little doubt that Trump will be the central figure in next month’s election.

“He has been out there endorsing people and working in a way that many thought when he was elected he would not be or working within the Republican Party and with other candidates,” said John Fortier of the Bipartisan Policy Center in Washington.

“So he is fully in, for better or worse, and he will certainly help some candidates in Republican places, but may turn off people in others.” Fortier is a frequent guest on VOA’s “Encounter.”

Democrats have been turning out in big numbers in special elections and in primaries since last year, and that is a positive sign for the opposition, said Jim Kessler, a senior vice president for policy at Third Way, a center-left policy research group.

“I expect Democrats to take the House. I now even think they might take the Senate, even though the map is so difficult out there. The excitement among Democratic voters is very, very high.  Republican voters are turning out too, but Democratic voters are really turning out,” said Kessler.

Many experts predict a Democratic takeover of the House would stop President Trump’s agenda in its tracks and put the White House on the defensive.  Some Democrats have talked about trying to impeach Trump.

In short, there is little likelihood of looking for common ground, according to George Washington University analyst Lara Brown.

“The truth is, we are just not in the 90s anymore, and by that I mean that there really is not an appetite on either side for compromise.

Trump is expected to stay busy on the campaign trail right up until Election Day, hopeful of blunting a Democratic surge that not only jeopardizes Republican control of both the House and Senate, but also could place severe constraints on his presidency.

3D Map of Singapore Helps City Planner Prepare for Future

Imagine seeing an incredibly detailed map of your home city in three dimensions, with every citizen carrying a cell phone showing up as a dot on that map. Well, you can’t because there are security issues galore when it comes to tracking people online. But you should know it’s possible, at least in Singapore, where city planners are considering how the technology may help improve life. VOA’s Kevin Enochs reports.

GE, Seeking Path Forward as a Century-old Company, Ousts CEO

General Electric ousted its CEO, took a $23 billion charge and said it would fall short of profit forecasts this year, further signs that the century-old industrial conglomerate is struggling to turn around its vastly shrunken business.

 

H. Lawrence Culp Jr. will take over immediately as chairman and CEO from John Flannery, who had been on the job for just over a year. Flannery began a restructuring of GE in August 2017, when he replaced Jeffrey Immelt, whose efforts to create a higher-tech version of GE proved unsuccessful.

 

However, in Flannery’s short time, GE’s value has dipped below $100 billion and shares are down more than 35 percent this year, following a 45 percent decline in 2017.

 

The company was booted from the Dow Jones Industrial Average this summer and, last month, shares tumbled to a nine-year low after revealing a flaw in its marquee gas turbines, which caused the metal blades to weaken and forced the shutdown of a pair of power plants where they were in use.

GE warned Monday that it will miss its profit forecasts this year and it’s taking a $23 billion charge related to its power business.

 

The 55-year-old Culp was CEO and president of Danaher Corp. from 2000 to 2014. During that time, Danaher’s market capitalization and revenues grew five-fold. He’s already a member of GE’s board.

 

It’s a track record that GE appears to need after a series of notable changes under Flannery failed to gain momentum immediately, although some analysts wonder whether Culp’s history of accomplishments will be enough to reverse the direction of the company.

 

The challenges GE faces — including the power sector’s cyclical, structural and operational challenges — are not easily or quickly fixable, but “GE should be commended for selecting a credible, seasoned GE outsider as chairman/CEO who is likely to more candidly and quickly identify how bad things may be and what needs to be done about it,” said Gautam Khanna, an analyst at Cowen Inc., in a note to investors.

 

Investors will want Culp to “clean house, and fast,” said Scott Davis, founding partner of Melius Research, in a research note where he compared GE’s recent history to a slow but fatal train wreck.

 

“If I’m a GE employee today, I’m happy for the turnaround, but expectations are about to get a whole lot higher…GE employees will either step up or will be replaced,” Davis said.

 

Flannery faced a titanic task in redirecting General Electric, which was founded in 1892 in Schenectady, New York.

 

Just six months after taking over as CEO, Flannery said the company would be forced to pay $15 billion to make up for the miscalculations of an insurance subsidiary. While Wall Street was aware of the issues at GE’s North American Life & Health, the size of the hit caught many off guard.

 

Flannery on the same day said that GE might take the radical step of splitting up the main company’s three main components — aviation, health care and power — into separate businesses.

 

In June GE said it would spin off its health-care business and sell its interest in Baker Hughes, a massive oil services company. It’s been selling off assets and trying to sharpen its focus since the recession, when it’s finance division was hammered.

 

“GE still has too much debt and plenty to fix, but at least we have an outsider with an accelerated mandate to fix it,” Davis said.

 

Flannery vowed to give GE more of a high-tech and industrial focus by honing in on aviation, power and renewable energy — businesses with big growth potential. The shift is historic for a company that defined the phrase “household name.”

 

GE traces its roots to Thomas Edison and the invention of the light bulb, and the company grew with the American economy. At the start of the global financial crisis in 2008, it was one of the nation’s biggest lenders, its appliances were sold by the millions to homeowners around the world and it oversaw a multinational media powerhouse including NBC television.

 

But the economic crises revealed how unwieldy General Electric had become, with broad exposure damage during economic downturns.

 

Shares of General Electric Co., based in Boston, surged 11 percent in midday trading.

 

Massachusetts Gov. Charlie Baker, who helped lure GE to Boston from Connecticut in 2016 with incentives like state grants and property tax relief, said he’s not too concerned about GE’s latest travails. He noted that the company is still worth about $100 billion and has what he called a “huge footprint” in Massachusetts in health care, green technology, and renewable energy.

 

He said the state “did not write a big check to GE based on job projections or anything like that.”

Trump Rallies in Tennessee to Boost Senate Hopeful Blackburn

President Donald Trump is back in Tennessee, trying to push U.S. Rep. Marsha Blackburn’s Senate bid over the finish line.

 

Trump headlined a high-dollar, closed-door fundraiser for Blackburn in Johnson City before appearing at a packed rally at the Freedom Hall Civic Center.

 

Blackburn is in a tight race against the state’s Democratic ex-Gov. Phil Bredesen, who, like other Democratic candidates across Trump country, has painted himself as a pragmatist willing to work with the president on certain issues. The Tennessee campaign is among several closely watched races expected to determine control of the Senate, and Republicans are desperate to defend a narrow two-seat majority in the face of surging Democratic enthusiasm.

 

And the stakes couldn’t be clearer. The rally comes as the FBI is continuing to investigate sexual misconduct allegations against Trump’s Supreme Court nominee, Brett Kavanaugh — an FBI investigation that was forced by a small group of undecided senators who could sink the nomination. Trump earlier Monday disputed reports that his White House has tried to narrow the scope of the investigation and limit which witnesses the FBI could interview, saying he wants them “to do a very comprehensive investigation, whatever that means.”

 

Trump is planning a busy week of campaign travel, with trips to a handful of states including Mississippi, Minnesota and Kansas as he tries to boost Republican turnout for the midterm elections.

 

Blackburn’s contest, in a state that Trump won by 26 points, has drawn especially heavy interest from the White House, with repeat visits by both Trump and Vice President Mike Pence.

 

Bredesen has tried to distance himself from the national Democratic Party, presenting himself as an independent thinker who will support Trump’s policies when they’re beneficial to the state.

 

“I need to make clear to everybody my independence from all of the national Democratic stuff,” the former two-term governor recently told The Associated Press.

 

Blackburn and Bredesen are seeking the seat of Republican Sen. Bob Corker, who is retiring.

 

Bredesen, who would be the first Democrat to win a Senate campaign in Tennessee since Al Gore in 1990 if he’s victorious, has run TV ads in which he says that he’s “not running against Donald Trump” and learned long ago to “separate the message from the messenger.” He was holding an event in Chattanooga on Monday night that he’d hoped would be a debate with Blackburn, and he has been needling her for not agreeing to one.

 

Trump, as he has in other states, is expected to argue Bredesen is not the centrist he says he is and will wind up voting with Democratic leaders including Chuck Schumer and Nancy Pelosi if he gets to Washington.

 

Blackburn, meanwhile, has stressed her ties to Trump, running ads that feature footage of his last rally in the state in May.

 

“Phil, whatever the hell his name is, this guy will 100 percent vote against us every single time,” Trump said at the time.

 

Trump offered an early endorsement of Blackburn in April, tweeting that she is “a wonderful woman who has always been there when we have needed her. Great on the Military, Border Security and Crime.”

Pew Survey: America’s Image Worsens Under Trump

The image of the United States has deteriorated further among its traditional allies after a year in which President Donald Trump ratcheted up his verbal attacks on countries like Canada and Germany, a leading survey showed.

The survey of 25 nations by the Pew Research Center also showed that respondents from across the globe have less confidence in Trump’s ability to lead than they do in Russia’s Vladimir Putin and China’s Xi Jinping.

Since taking office in January 2017, Trump has pulled the United States out of international agreements like the Paris climate accord and Iran nuclear deal, cozied up to authoritarian leaders like Putin and North Korea’s Kim Jong Un, and criticized his neighbors and NATO allies.

In June, after a G7 summit in Canada, Trump refused to sign a joint statement with America’s allies, deriding his host, Canadian Prime Minister Justin Trudeau, as “very dishonest and weak”. He has repeatedly attacked Germany for its trade surplus, low defense spending and reliance on Russian gas.

Last week, when giving a speech at the U.N. General Assembly in New York, Trump drew laughter from world leaders when he claimed to have achieved more in his two years in the White House than almost any other U.S. administration in history.

The survey showed that America’s image, which took a big hit in 2017, Trump’s first year in office, continued to deteriorate in many countries in 2018, particularly in Europe.

Just 30 percent of Germans have a favorable view of the United States, down five points from last year and the lowest score in the entire survey after Russia, on 26 percent.

Only 38 percent of French and 39 percent of Canadians said they had a positive view of the United States, both down from last year. Mexico inched up slightly to 32 percent.

Faith in Merkel Highest

The countries with the most positive views of the United States were Israel, the Philippines and South Korea, all at 80 percent or above. Across all countries, the U.S. got positive marks, with 50 percent saying they had a positive view, compared to 43 percent who were negative.

Just 7 percent of Spanish, 9 percent of French and 10 percent of Germans said they had confidence in Trump’s leadership. In 20 of the 25 countries surveyed, a majority said they had no confidence in Trump.

Across all countries, an average of 27 percent of respondents said they had confidence in Trump. That compared unfavorably to Putin, on 30 percent, and Xi, on 34 percent.

German Chancellor Angela Merkel was the only leader in which a majority of those surveyed, 52 percent, expressed confidence.

French President Emmanuel Macron was just behind at 46 percent.

Despite Trump’s low ratings, 63 percent of respondents said the world was better off with the United States as the leading power, compared to 19 percent who preferred China in that role.

Allies took a dim view of the Trump administration’s position on civil liberties, with majorities in Canada, the United Kingdom, France, Germany, Australia and Mexico saying the government did not respect the personal freedoms of its people.

Reflecting Trump’s “America First” stance, substantial majorities in 19 of the 25 countries surveyed said the United States did not take their interests into account when making international policy.

The survey was conducted between May and August, and based on interviews with over 900 people in each of the surveyed countries.

Obama Backs More Than 200 Democrats Ahead of Midterms

Former President Barack Obama is expanding his influence ahead of November’s midterm elections. On Monday, he released a second slate of endorsements for Democrats running for offices ranging from local to national, bringing the total to more than 300.

 

Among the most prominent candidates to win Obama’s support are Alexandria Ocasio-Cortez, the Democratic congressional candidate who won an upset primary victory this summer in New York; Andrew Gillum, the Tallahassee mayor who is running for governor in Florida; and Kyrsten Sinema, the Democratic nominee for Senate in Arizona.

 

While the candidates that Obama endorsed stretch up and down the ballot — from gubernatorial hopefuls to aspiring state lawmakers — he notably declined to wade into several races that have captivated national attention. Obama did not endorse Rep. Beto O’Rourke, the Democrat challenging Sen. Ted Cruz in Texas, or Phil Bredesen, a former Democratic governor of Tennessee who is now running for Senate against Republican Rep. Marcia Blackburn.

 

Obama’s endorsement might not be helpful to Democrats competing in southern states, where the former president isn’t popular. Bredesen said last month he wouldn’t welcome Obama or other party leaders campaigning for him in Tennessee.

 

Obama favored Democrats in close races across the country, veterans of his administration and past campaigns, and he also prioritized diversity. In a statement, Obama described the candidates as “Americans who aren’t just running against something, but for something.”

 

“The Democratic Party has always made the biggest difference in the lives of the American people when we lead with conviction, principle and bold, new ideas. Our incredible array of candidates up and down the ticket, all across the country, make up a movement of citizens who are younger, more diverse, more female than ever before,” Obama said.

 

The former president’s engagement in the political fray since leaving office has been limited and carefully crafted. He returned to the political stage last month with a speech in Illinois, in which he made a sharp break from the deference that past presidents typically show their successors, offering a scathing rebuke of President Donald Trump’s tenure.

 

Since then, as he has campaigned on behalf of Democrats in states like California, Ohio and Pennsylvania, he has largely shied away from as explicit indictments of the Trump presidency, instead imploring voters — particularly young Americans — to vote.

 

Hillary Clinton, the former Democratic presidential nominee, also tweeted words of encouragement for a slew of Democrats backed by Run For Something, a group launched in the aftermath of the 2016 elections to encourage young Democrats to enter politics.

 

“Pitch into their campaigns if you can, reach out to friends in their districts to encourage their support, or start with a like or a follow,” Clinton tweeted. “November 6th is only 36 days away, so there’s no time to waste.”

Trump Hits Brazil, India Commerce After Clinching N. American Trade Deal

Fresh from clinching an updated North American commerce pact, U.S. President Donald Trump on Monday criticized Indian and Brazilian trade tactics, describing the latter as being “maybe the toughest in the world” in terms of protectionism.

Addressing reporters at a White House event to celebrate the agreement of an updated trilateral trade deal between the United States, Mexico and Canada, Trump added India and Brazil to a growing list of countries that, he argues, treat the world’s top economy unfairly in terms of commerce.

“India charges us tremendous tariffs. When we send Harley Davidson motorcycles, other things to India, they charge very, very high tariffs,” Trump said, adding that he had brought up the issue with Indian Prime Minster Narendra Modi, who he said was “going to reduce them very substantially.”

Modi’s office could not immediately be reached for a request for comment. India’s government has become more protectionist in recent months, raising import tariffs on a growing number of goods as it promotes its ‘Make in India’ program.

After criticizing India, Trump turned to Brazil, the second-largest economy in the Americas behind the United States.

“Brazil’s another one. That’s a beauty. They charge us whatever they want,” he said. “If you ask some of the companies, they say Brazil is among the toughest in the world – maybe the toughest in the world.”

Brazil is one of the world’s most closed major economies, and in recent months has tussled with the Trump administration over trade in sectors such as ethanol and steel.

After Trump’s comments, Brazil’s Foreign Trade Minister, Abrão Neto, defended the relationship, saying it was “very positive.” He added that over the last 10 years, the United States has enjoyed a trade surplus with Brazil of $90 billion in goods, and of $250 billion in goods and services.

Neto pointed out that the United States was Brazil’s second-largest trading partner, behind China, and that the two countries had a “complementary and strategic” commercial relationship that could, nonetheless, be improved.

Trump’s “America First” trade policies, particularly his escalating trade war with China, are aimed at boosting U.S. manufacturing, but they have spooked investors who worry that supply lines could be fractured and global growth derailed.

There are now U.S. tariffs active on $250 billion worth of Chinese goods, with threats on additional goods worth $267 billion.

Instagram Names Adam Mosseri as New CEO

Adam Mosseri, a veteran 10-year Facebook executive, will become the new head of Instagram, outgoing co-founders Kevin Systrom and Mike Krieger announced Monday.

“We are thrilled to hand over the reins to a product leader with a strong design background and a focus on craft and simplicity,” Systrom and Krieger said in a press release.The pair announced their resignation last week without giving a clear explanation.

Mosseri, 35, has been Instagram’s head of product since May. He began as a designer at Facebook in 2008, and recently ran its News Feed. His appointment comes among fears that with the departure of Instagram’s independent-minded founders, the app will become more like Facebook: Cluttered with features, and invasive of user’s personal data.

Instagram was founded in 2010 and bought by Facebook two years later for $1 billion. While Facebook has struggled to hold onto younger users, Instagram remains popular with teens. It has also remained scandal-free, while Facebook has taken heat for numerous scandals including the spread of fake news, alleged exploitation of user data with third parties, electoral interference, and its use as a platform for radical leaders to spread propaganda in developing countries.

Trump Hails ‘Terrific’ Trade Deal with Canada, Mexico

It is the biggest-ever and the best trade deal in the world – that’s how U.S. President Donald Trump and members of his administration are touting a new trade pact they have reached with neighbors Canada and Mexico.

“This landmark agreement will send cash and jobs pouring into the United States and into North America,” predicted Trump.

After intense last-minute discussions just ahead of a self-imposed Sunday midnight deadline, the United States and Canada announced they had reached a deal, allowing a modified three-way pact with Mexico to replace the nearly quarter-century-old North American Free Trade Agreement (NAFTA).

“This is a terrific deal for all of us,” Trump said in a victory speech in the White House Rose Garden where he was surrounded by several members of his Cabinet and his trade negotiators who had worked to achieve the United States-Mexico-Canada Agreement (USMCA).  

The pact, underpinning $1.2 trillion in annual trade, is based on “fairness and reciprocity,” according to Trump, who added that it was reached after disagreements with his counterparts in Mexico City and Ottawa, Enrique Pena Nieto and Justin Trudeau.

Trump said he spoke to both leaders on Monday.

‘Most competitive’

The agreement will consolidate the North American region “as one of the most competitive in the world,” according to the Mexican president on Twitter.

“This deal makes our partnership even stronger and benefits people across North America,” Trudeau tweeted.

The pact is expected to be signed in 60 days by the three leaders, possibly at the Group of 20 (G-20) summit in late November in Argentina.

Foreign outsourcing for U.S. automotive production will be reduced under the deal, said Trump, who predicted “once USMCA is approved, it will be a new dawn for the U.S. auto industry and the U.S. auto worker,” turning the country again into “a manufacturing powerhouse.”

While the president told reporters that he is “not at all confident” Congress – which could see the House back under control of the opposition Democrats after the November midterm elections — will approve the deal, other members of his administration are expressing greater optimism.

“There could be Democratic support for this” as it contains provisions favorable to American labor – a traditional backer of the Democratic Party, National Economic Council Director Larry Kudlow tells VOA.

“I think it’s going to pass with a substantial majority,” predicts U.S. Trade Representative Robert Lighthizer. “This is not a Republican-only agreement. It was not designed to be a Republican-only agreement. There are really no poison pills in here for Democrats.”

“Democrats will closely scrutinize the text of the Trump administration’s NAFTA proposal and look forward to further analyses and conversations with stakeholders,” House Minority Leader Nancy Pelosi said in a statement.

Trump had made criticism of NAFTA a centerpiece of his successful 2016 election campaign, terming it the worst trade deal in history and blaming NAFTA for the loss of American manufacturing jobs since it went into effect in 1994.  

The U.S. agreement with Ottawa will boost American access to Canada’s dairy market – with some concessions on its heavily protected supply management system — while shielding the Canadians from possible U.S. auto tariffs.

Steel and aluminum tariffs imposed by Washington, however, will remain. Canada had demanded protection from Trump’s tariffs on imported steel and aluminum.

“For those babies out there who keep talking about tariffs,” this deal would not have happened without tariffs, Trump told reporters during a nearly 80-minute event in the White House Rose Garden.

The metal tariffs discussions are on a “completely separate track,” according to a senior U.S. official.

In a big victory for Canada, NAFTA’s Chapter 19 dispute resolution system, which involves anti-dumping and countervailing decisions, will remain intact.

‘Deadline was real’

The Trump administration had imposed a midnight Sunday deadline for Trudeau’s government to reach agreement on an updated NAFTA or face exclusion from the treaty.

“This deadline was real,” according to a senior U.S. official. “We ended up in a good place that we ultimately think is a good deal for all three countries.”

U.S. officials, in recent weeks, had been adamant that the text for a new deal – whether it would only be with Mexico or also include Canada – to be released by September 30 to meet congressional notification requirements and to allow outgoing Mexican President Pena Nieto to be able to sign the deal before he is succeeded by Andres Manuel Lopez Obrador, a left-wing populist.  

Canada’s government had faced strong opposition to elements of the revised pact from the country’s dairy farmers. Voters in Quebec, home to 354,000 dairy cows – the most of any province — head to the polls for provincial elections Monday, which cast a shadow over the last-minute negotiations.

The National Association of Manufacturers (NAM) in the United States declared itself “extremely encouraged” by initial details of the new three-way pact.

“As we review the agreement text, we will be looking to ensure that this deal opens markets, raises standards, provides enforcement and modernizes trade rules so that manufacturers across the United States can grow our economy,” NAM President and Chief Executive Officer Jay Timmons said.

“This administration is committed to strong and effective enforcement of this agreement,” a senior U.S. official told reporters. “This is not going to just be words on paper. This is real.”