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

Trump Vows to Unearth Truth About Khashoggi Disappearance

President Donald Trump declared Friday the U.S. will uncover the truth about what happened to journalist and U.S. resident Jamal Khashoggi, whose possible murder at Saudi hands after disappearing in Istanbul has captured worldwide attention. Trump promised to personally call Saudi Arabia’s King Salman soon about “the terrible situation in Turkey.”

“We’re going to find out what happened,” Trump pledged when questioned by reporters in Cincinnati where he was headlining a political rally.

Khashoggi, a forceful critic of the Saudi government, went missing more than a week ago after entering a Saudi consulate in Istanbul, and Turkish officials have said they believe he was murdered there. U.S. officials say they are seeking answers from the Saudi government and are not yet accepting the Turkish government’s conclusions.

The Saudis have called accusations that they are responsible for Khashoggi’s disappearance “baseless.” Widely broadcast video shows the 59-year-old writer and Washington Post contributor entering the consulate on Tuesday of last week, but there is none showing him leaving.

Separately, Secretary of State Mike Pompeo spoke to Khashoggi’s fiancee, Hatice Cengiz, the State Department said Friday. No details of the conversation were released. 

In an interview Friday with The Associated Press, Cengiz said Khashoggi was not nervous when he entered the Saudi consulate to obtain paperwork required for their marriage.

“He said, ‘See you later my darling,’ and went in,” she told the AP.

Citing anonymous sources, the Post reported Friday that Turkey’s government has told U.S. officials it has audio and video proof that Khashoggi was killed and dismembered. The AP has not been able to confirm that report.

In written responses to questions by the AP, Cengiz said Turkish authorities had not told her about any recordings and Khashoggi was officially “still missing.”

She said investigators were examining his cellphones, which he had left with her.

Saudi Arabia says Khashoggi left the consulate. He hasn’t been seen since, though his fiancee was waiting outside.

Both Turkey and Saudi Arabia are important U.S. allies in the region. Trump said Treasury Secretary Steve Mnuchin will evaluate whether to attend a Saudi investor conference later this month. 

On Thursday, Trump had said U.S. relations with Saudi Arabia were “excellent” and he was reluctant to scuttle highly lucrative U.S. weapons deals with Riyadh. A number of members of Congress have pressed the Trump administration to impose sanctions on the country in response to the Khashoggi affair.

A delegation from Saudi Arabia arrived in Turkey on Friday as part of an investigation into the writer’s disappearance. In a statement posted on Twitter, the Saudis welcomed the joint effort and said the kingdom was keen “to sustain the security and safety of its citizenry, wherever they might happen to be.”

Cengiz said she and the journalist would have been married this week and had planned a life together split between Istanbul and the United States, where Khashoggi had been living in self-imposed exile since last year.

She had appealed for help to Trump, who earlier this week said he would invite her to the White House.

Cengiz didn’t respond to a question about that, but earlier on Friday she urged Trump on Twitter to use his clout to find out what happened.

“What about Jamal Khashoggi?” she wrote in response to a tweet by Trump in which he said he said he had been “working very hard” to free an American evangelical pastor who has been held for two years in Turkey. Andrew Brunson was released late Friday.

Amid growing concern over Khashoggi’s fate, French President Emmanuel Macron said his country wanted to know “the whole truth” about the writer’s disappearance, calling the early details about the case “very worrying.”

Macron said “I’m waiting for the truth and complete clarity to be made” since the matter is “very serious.” He spoke Friday in Yerevan, Armenia, to French broadcasters RFI and France 24.

In Germany, Chancellor Angela Merkel’s spokesman, Steffen Seibert, said Berlin was also “very concerned” about the writer’s disappearance and called on Saudi Arabia to “participate fully” in clearing up reports that he had been killed.

Global business leaders began reassessing their ties with Saudi Arabia, stoking pressure on the Gulf kingdom to explain what happened to Khashoggi.

Khashoggi, who was considered close to the Saudi royal family, had become a critic of the current government and Crown Prince Mohammed bin Salman, the 33-year-old heir apparent who has introduced reforms but has shown little tolerance for criticism.

As a contributor to The Washington Post, Khashoggi has written extensively about Saudi Arabia, including criticism of its war in Yemen, its recent diplomatic spat with Canada and its arrest of women’s rights activists after the lifting of a ban on women driving.

Those policies are all seen as initiatives of the crown prince, who has also presided over a roundup of activists and businessmen.

 

 

Analyst Looks at Democrats’ House, Senate Prospects

If history is any guide, Democrats should make gains in the midterm congressional elections on Nov. 6. The president’s party nearly always loses seats in midterm elections, with the average loss of House seats ranging between 20 and 30. Many analysts expect a Democratic takeover of the House, but the Senate appears to be different story. Kyle Kondik, managing editor of “Crystal Ball,” a political newsletter produced by the Center for Politics at the University of Virginia, explains why.

Plugged In With Greta Van Susteren: Stuart Eizenstat

VOA contributor Greta Van Susteren interviews Stuart Eizenstat, who was an aide to former President Jimmy Carter during his administration and is the author of “President Carter: The White House Years.” Eizenstat, offering an insider’s perspective, says his objective was to give a complete assessment of the mistakes and the failures of the Carter administration (1977-81), but also the successes that he says have not been appreciated.

US Security Adviser Bolton Vows Tougher Approach to China

U.S. national security adviser John Bolton has vowed to further intensify the Trump administration’s tough approach to China, saying Beijing’s “behavior needs to be adjusted in the trade area, in the international, military and political areas.”

Speaking in a radio interview on the Hugh Hewitt Show recorded Thursday and aired Friday, Bolton said President Donald Trump believed China had taken advantage of the international order for far too long and not enough Americans had stood up to it.

“Now’s the time to do it” he said.

Bolton said Trump’s tough approach toward China, a country the administration saw as the “major issue this century,” had left Beijing “confused.”

“They’ve never seen an American president this tough before. I think their behavior needs to be adjusted in the trade area, in the international, military and political areas, in a whole range of areas,” he said.

“Perhaps we’ll see at the G-20 meeting in Argentina next month Xi Jinping willing to come to talk turkey on some of these issues,” he added.

Bolton’s remarks came amid a series of administration broadsides against China that goes beyond a trade war. These have included accusing Beijing of trying to undermine Trump ahead of next month’s congressional elections and of taking reckless military actions in the South China Sea.

U.S. Treasury Secretary Steven Mnuchin said on Friday that Trump would go through with plans to meet Xi at the G-20 summit if it looked possible to chart “a positive direction.” But he said re-launching trade talks with China would require Beijing to commit to taking action on structural reforms to its economy.

Bolton called recent Chinese behavior in the South China Sea, where a U.S. warship had a near collision with a Chinese vessel last month, “dangerous” and said the United States was determined to keep international sea lanes open.

“This is something the Chinese need to understand,” he said, adding that allies including Britain and Australia were also sailing through the South China Sea to make this point.

“We’re going to do a lot more on that,” he said. “I think we could see more exploitation of mineral resources in the South China Sea with or without Chinese cooperation. They need to know they have not achieved a fait accompli here. This is not a Chinese province and will not be.”

Bolton did not elaborate on his remark about mineral exploitation in the strategic waterway, which China claims almost in its entirety in spite of several rival claimants.

Bolton said China’s violation of international norms in trade and business had allowed it to gain substantial economic and military strength.

“If they’re put back in the proper place they would be if they weren’t allowed to steal our technology, their military capabilities would be substantially reduced. And a lot of the tensions we see caused by China would be reduced,” Bolton said.

He indicated that Washington was prepared to take more action to restrict sensitive high-tech exports to China.

“We did this and continue to do it in terms of dual-use technology that could affect nuclear, chemical or biological weapons or ballistic-missile development,” he said. “I think in cyberspace, we’re entitled to do the same thing. … We want to do it in ways that protect our open economy, but deny others the ability to take advantage of it.”

Bolton said he expected a second summit between Trump and North Korean leader Kim Jong Un “sometime in the next couple of months,” but said it remained to be seen if the diplomatic effort to persuade Pyongyang to give up its nuclear weapons would be successful.

“The president has held the door open for North Korea,” he said. “They need to denuclearize completely and irreversibly. And if they do that and walk through the door, the future could be very different for the North Korean people.

“The future remains uncertain on the president’s diplomacy. He’s optimistic. He presses hard. He does not have stars in his eyes about this. Neither does Mike Pompeo, neither does Jim Mattis, neither do I,” Bolton said, referring to the U.S. secretaries of defense and state.

O’Rourke Raises Record $38.1M in Texas Senate Race

In one of the most closely watched U.S. Senate contests this year, Democrat Beto O’Rourke raised a record $38.1 million during the third quarter in a bid to oust Ted Cruz, a prominent Texas Republican who made an unsuccessful run for the White House in 2016. 

O’Rourke announced on Friday his eye-popping financial haul over the last three months. It was more than three times the amount raised by Cruz and set a new quarterly fundraising record in a Senate race.

The funding was the most a Senate candidate has raised in a quarter since Rick Lazio, a onetime Republican member of Congress who hauled in $22 million in the third quarter of 2000 in a failed contest against Hillary Clinton for a Senate seat in New York, according to the Center for Responsive Politics.

Last week, Cruz said his campaign had raised more than $12 million during the third quarter and predicted, correctly, that his rival’s take for the period would top $30 million. During a rally in Texas where he announced his own fundraising success, Cruz said of O’Rourke: “If you wanna raise money from Hollywood liberals, there ain’t nothing better. But that’s not Texas.”

O’Rourke’s unprecedented fundraising caused a stir on social media, with many commentators noting that it outpaced what high-profile presidential candidates have raised in a quarter in the past. One noted that Republican Jeb Bush’s unsuccessful 2016 presidential campaign had raised $35.5 million in a quarter. Another pointed out that former President Barack Obama had raised $23.5 in the final quarter before the 2008 primary season kicked off.

Progressive push

The contest between O’Rourke, a three-term liberal member of the House of Representatives, and Cruz, a conservative senator, has fired up progressives around the country, drawing in large amounts of small donations from out-of-district and out-of-state donors as Democrats seek to wrest control of Congress.

O’Rourke, who has rejected receiving money from political action committees, said the latest funding came from 800,000 contributors, although he did not say how many were from outside El Paso, which is the heart of the congressional district he represents.

The Center for Responsive Politics said more than $25 million of the funds raised by O’Rourke during the latest quarter came through ActBlue, the Democratic online fundraising juggernaut. ActBlue said earlier this week that it had raised more than $385 million for 9,300 campaigns and organizations during the third quarter.

In a statement released Friday, O’Rourke said, “The people of Texas in all 254 counties are proving that when we reject PACs and come together not as Republicans or Democrats but as Texans and Americans, there’s no stopping us.”

The O’Rourke-Cruz race currently stands as the second most expensive Senate contest, with each candidate raising more than $23 million through the second quarter. The latest quarterly fundraising puts O’Rourke well ahead of his rival. 

The most expensive Senate race is being waged in Florida between Democratic Sen. Bill Nelson and Republican Gov. Rick Scott; more than $50 million had been raised through the second quarter. Congressional candidates must report their third-quarter fundraising and spending to the Federal Election Commission on Monday.

Despite his sizable fundraising advantage,O’Rourke lags behind Cruz in most polls. In a poll conducted on Thursday by The New York Times’ Upshot newsletter and Siena College, Cruz was ahead of O’Rourke 51 percent to 43 percent.

It’s a ‘serious race’

Nevertheless, with O’Rourke emerging as a competitive challenger in Texas, Republicans are “understanding now that this is a serious race beginning to rally to Cruz’s side,” said Brandon Rottinghaus, a professor of political science at University of Texas at Austin.

Spending on presidential, congressional and local election campaigns has been steadily rising in the United States in recent years, partly as a result of unlimited spending by outside groups.The Center for Responsive Politics expects this election cycle to set a new fundraising and spending record.

But outraising and outspending your rival doesn’t always ensure victory. In one of the most expensive and closely fought races this election cycle, Democrat Jon Ossoff lost in a special election for a House seat in Georgia last year to Republican Karen Handel despite a $20 million fundraising advantage.

Nevertheless, money does make a difference. 

To be competitive, “you need to be able to both outspend or keep up with your opponent but also have at bay, ready to deploy, a huge amount of money in case a super PAC comes in and makes a huge ad buy in your district,” said Sarah Bryner, research director for the Center for Responsive Politics.

Facebook: Hackers Accessed 29M Accounts – Fewer Than Thought

Facebook says hackers accessed data from 29 million accounts as part of the security breach disclosed two weeks ago, fewer than the 50 million it initially believed were affected.

The hackers accessed name, email addresses or phone numbers from these accounts, according to Facebook. For 14 million of them, hackers got even more data, such as hometown, birthdate, the last 10 places they checked into or the 15 most recent searches.

 

An additional 1 million accounts were affected, but hackers didn’t get any information from them.

 

Facebook isn’t giving a breakdown of where these users are, but says the breach was “fairly broad.” It plans to send messages to people whose accounts were hacked.

 

Facebook said third-party apps and Facebook apps like WhatsApp and Instagram were unaffected by the breach.

 

Facebook said the FBI is investigating, but asked the company not to discuss who may be behind the attack. The company said it hasn’t ruled out the possibility of smaller-scale attacks that used the same vulnerability.

 

Facebook has said the attackers gained the ability to “seize control” of those 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 affected users to reset those digital keys.

 

At the time, CEO Mark Zuckerberg – whose own account was compromised – said attackers would have had the ability to view private messages or post on someone’s account, but there’s no sign that they did.

 

 

Global Stocks Climb Following Two Days of Sharp Losses

World stocks are climbing Friday after two days of sharp losses. Major U.S. stock indexes are up more than 1 percent, but they’re still on track for their biggest one-week loss since late March.

Technology and internet companies were some of the hardest hit over the last two days and they led the market higher Friday. Apple climbed 2.7 percent to $220.18. Consumer-focused companies also rallied, as Amazon jumped 3.8 percent to $1,783.96 and Netflix surged 4.7 percent to $336.30.

The S&P 500 index climbed 37 points, or 1.4 percent, to 2,766 at 9:45 a.m. Eastern time. The benchmark index tumbled 5.3 percent over the past two days and as of Thursday it had fallen for six consecutive days. The S&P is down 5.6 percent from its latest record high, set Sept. 20.

The Dow Jones Industrial Average jumped 305 points, or 1.2 percent, to 25,358. The Nasdaq composite surged 138 points, or 1.9 percent, to 7,467. The Russell 2000 index gained 17 points, or 1.2 percent, to 1,563. That index, which is made up of smaller and more U.S.-focused companies, has fallen into a 10 percent “correction” since reaching a record high at the end of August.

On the New York Stock Exchange, winners outnumbered losers eight to one.

Stocks in Europe and Asia also recovered some of their recent losses. The French CAC 40 and the DAX in Germany both rose 0.8 percent while Britain’s FTSE 100 was 0.7 percent higher. Japan’s Nikkei 225 index gained 0.5 percent after sinking early in the day and following a nearly 4 percent loss on Thursday. Hong Kong’s Hang Seng surged 2.1 percent and the Kospi in South Korea rose 1.5 percent.

The market’s recent losing streak started when strong economic data and positive comments from Federal Reserve Chair Jerome Powell helped set off a wave of selling in the bond market. Investors were betting that the U.S. economy would keep growing at a healthy pace. The sales pushed bond prices lower and yields higher. That drove interest rates sharply higher, which worried investors who felt that a big increase in interest rates could eventually stifle economic growth. Higher yields also make bonds more appealing to investors versus stocks.

The worst losses went to stocks that have led the market in recent years, including technology companies, as well as companies that do better when economic growth speeds up, like industrial firms.

Banks rose as they began to report their third-quarter results. Citigroup jumped 2.4 percent to $70.04. Last year’s corporate tax cut and rising interest rates have helped banks make more money.

Bond prices turned lower as the stock market stabilized. The yield on the 10-year Treasury note rose to 3.16 percent from 3.13 percent.

High-dividend stocks lagged the rest of the market, and utilities and household goods makers were little changed. Those stocks held up a bit better than the rest of the market over the last six days. Investors view them as relatively safe, steady assets that look better when growth is uncertain and the rest of the market is in turmoil.

U.S. crude oil added 0.6 percent to $71.43 a barrel in New York. Brent crude, the international standard, was up 0.6 percent to $80.77 a barrel in London.

The dollar rose to 112.17 yen from 111.94 yen. The euro fell to $1.1548 from $1.1594.

Candidate Resigns Amid Controversy Over Parkland Comments

A Republican candidate for Connecticut’s General Assembly has withdrawn following criticism over comments he made online about victims of the school shooting in Parkland, Florida.

Steven Baleshiski, a 22-year-old college student from Southington, had been challenging six-term state Rep. Joe Aresimowicz for a House seat.

The Hartford Courant reports the Republican town committees for Southington and Berlin withdrew their endorsements of Baleshiski before he resigned. The two committees said they do not condone Baleshiski’s “hurtful and dividing behavior.” Committee chairs said they are looking for a new candidate.

In a social media post in March, Baleshiski said a survivor of the Parkland shooting who turned to gun-control advocacy “can burn in hell.”

Baleshiski did not respond to a request for comment from the newspaper.

‘Winter Is Coming’: Indonesia Warns World Finance Leaders Over Trade War

Just in case any of the global central bankers and finance ministers gathered in Indonesia missed the message delivered repeatedly this week, the host nation said it again Friday: Everyone stands to lose if trade wars are allowed to escalate.

Indonesian President Joko Widodo didn’t mention the United States or China, the world’s two largest economies, but it was clear who he was talking about in an address to the plenary session of the International Monetary Fund and World Bank meetings on the island of Bali.

“Lately it feels like the relations among the major economies are becoming more and more like Game of Thrones,” Widodo said in a speech peppered with references to the HBO series about dynasties and kingdoms battling for power.

“Are we so busy fighting with each other and competing against each other that we fail to notice the things which are increasingly threatening, all of us alike, rich and poor, large and small,” he said.

Poorer and populous emerging market countries like his are among the most vulnerable to the fallout from the ongoing U.S.-Sino tariff war, and rising U.S. interest rates that are drawing investors away and driving down currencies.

“All these troubles in the world economy, are enough to make us feel like saying: ‘Winter is coming,'” Widodo said, using a phrase that characters in the popular fantasy series constantly repeat to refer to spectral dangers that could destroy them all.

With rivalry growing in the world economy, Widodo said “the situation could be more critical compared to the global financial crisis 10 years ago.”

The market ructions have now cascaded through to developed markets with Wall Street extending a slide into a sixth session on Thursday amid the trade war fears.

The United States and China have slapped tit-for-tat tariffs on hundreds of billions of dollars of each other’s goods over the past few months.

The tariffs stem from the Trump administration’s demands that China make sweeping changes to its intellectual property practices, rein in high-technology industrial subsidies, open its markets to more foreign competition and take steps to cut a politically sensitive U.S. goods trade surplus.

Rubbing salt in U.S. wounds, China reported on Friday an unexpected acceleration in export growth in September and a record $34.13 billion trade surplus with the United States.

Mnuchin: China trade talks must include yuan

In an interview with Reuters, U.S. Treasury Secretary Steven Mnuchin said that he told China’s central bank chief that currency issues need to be part of any further U.S.-China trade talks and expressed his concerns about the yuan’s recent weakness.

Mnuchin also said that China needs to identify concrete “action items” to rebalance the two countries’ trade relationship before talks to resolve their disputes can resume.

The U.S. Treasury chief and People’s Bank of China Governor Yi Gang extensively discussed currency issues on the sidelines of the meetings in Bali.

Mnuchin’s comments on China’s currency come ahead of next week’s scheduled release of a hotly anticipated Treasury report on currency manipulation, the first since a significant weakening of yuan began this spring.

Mnuchin said re-launching trade talks would require China to commit to taking action on structural reforms to its economy.

If the relationship could be rebalanced, he said the U.S.-China total annual trade relationship could grow to $1 trillion from $650 billion currently, with $500 billion of exports from each country.

G-20 members and trade issues

Meanwhile, the chairman of a meeting of finance leaders from the Group of 20 leading industrialized and emerging economies admitted that the trade tensions within the group could only be solved by the countries directly involved.

“The G-20 can play a role in providing the platform for discussions. But the differences that still persist should be resolved by the members that are directly involved in the tensions,” Nicolas Dujovne, Argentina’s Treasury Minister, told a news conference after chairing the G-20 meeting in Bali.

More than 19,000 delegates and other guests, including ministers, central bank heads and some leaders, were attending the IMF-World Bank meetings, and Widodo asked them to “cushion the blows from trade wars, technical disruption and market turmoil.”

“I hope you will each do your part to nudge our various leaders in the right direction,” Widodo said, adding that “confrontation and collision impose a tragic price.”

The IMF’s twice-yearly report on the Asia Pacific region, released Thursday, warned that the market rout seen in emerging economies could worsen if the Federal Reserve and other major central banks tightened monetary policy more quickly than expected.

At Friday’s plenary, IMF managing director Christine Lagarde estimated that the escalation of current trade tensions could reduce global GDP by almost one percent over the next two years.

IMF forecasts of global economic growth for both 2018 and 2019 were cut to 3.7 percent, from 3.9 percent in its July forecast.

“Clearly, we need to de-escalate these disputes,” Lagarde told the plenary session.

Melania Trump Says She Loves Trump, Ignores Cheating Rumors

Melania Trump says she loves President Donald Trump and has “much more important things to think about” than allegations he cheated on her with a porn star, a Playboy Playmate or anyone else.

 

Mrs. Trump, who was interviewed by ABC while touring Africa last week, said people are just spreading rumors about her marriage.

 

“I know people like to speculate and media like to speculate about our marriage and circulate the gossip,” she said. “But I understand the gossip sells newspapers, magazines … and, unfortunately, we live in this kind of world today.”

 

She insisted allegations of her husband’s infidelities are not a concern.

 

Trump, who during the 2016 presidential campaign was heard on an old “Access Hollywood” tape talking about groping and try to have sex with women, has been accused of having multiple affairs. Porn star Stormy Daniels and ex-Playboy Playmate Karen McDougal have said they had sex with him years ago.

 

Trump has denied the trysts with Daniels and McDougal but has acknowledged reimbursing his lawyer for a $130,000 hush money payment made to Daniels. Mrs. Trump has generally kept quiet on the subject.

 

Asked in the ABC interview if she loves her husband, Mrs. Trump said, “Yes, we are fine. Yes.”

 

She played down a suggestion the repeated rumors of his philandering had put a strain on their marriage.

 

“It is not concern and focus of mine,” she said. “I’m a mother and a first lady, and I have much more important things to think about and to do.”

 

But when she was asked if the repeated rumors had hurt her, she paused. Then she reiterated the “media world is speculating.”

 

“Yeah, it’s not always pleasant, of course,” she said. “But I know what is right and what is wrong and what is true and not true.”

 

Portions of Mrs. Trump’s interview aired Friday on “Good Morning America.” Her full interview is set to air Friday night in an ABC News special, “Being Melania – The First Lady.”

Other portions of the interview aired earlier this week featured Mrs. Trump saying she could be “the most bullied person” in the world and saying women who make accusations of sexual assault need to “show the evidence.”

 

Donald Trump, on the 2005 “Access Hollywood” tape that became public during the 2016 campaign, says when he’s attracted to beautiful women, “I just start kissing them. It’s like a magnet.” He said when you’re a star, women let you.

 

“Grab them by the p—-,” Trump adds. “You can do anything.”

 

Trump’s former personal lawyer Michael Cohen pleaded guilty in August to campaign finance violations alleging he, Trump and the National Enquirer tabloid were involved in buying the silence of Daniels and McDougal after they alleged affairs with Trump.

House Seat Suddenly in Play After Trump Backer’s Indictment

New York’s most conservative congressional district is unexpectedly in play as Republican incumbent Chris Collins, one of President Donald Trump’s first supporters, fights insider trading charges while seeking re-election.

Republican leaders in a western New York district that Trump swept overwhelmingly in 2016 are counting on party and presidential loyalty, even if it means voting for someone that even they wanted off the ballot.

“This district is Trump country, and it will continue to be,” said Erie County Republican Party Chairman Nicholas Langworthy. “It’s a conservative Republican district, and I expect that when the dust settles on election night it will re-elect a conservative Republican to the seat.”

Democratic challenger Nate McMurray is still the underdog but says his volunteers and donations have surged since Collins was charged in August, and his crowds have gone from handfuls to hundreds.

“It’s like an avalanche that started out with a little snowball that’s rolling downhill and getting bigger and bigger every day,” McMurray, a Grand Island town supervisor, said recently to a roomful of supporters. They included Tom Perez, the Democratic National Committee chairman, who dropped in to drum up enthusiasm in what had been a little-watched race.

Once considered a sure win for Republicans, Real Clear Politics now lists the race as a “toss-up,” and the Cook Political Report in mid-September moved the seat from “likely Republican” to merely “lean Republican.” McMurray said this week his internal polling showed the race to be a dead heat.

With Democrats forecast to make gains in the House, for some voters in the Republican-advantaged district, the decision will be more about keeping the challenger out than Collins in, analysts said.

“The old phrase of ‘all politics is local,’ the Tip O’Neill statement? These local races are not so local anymore,” American University political science professor Jan Leighley said.

Accusations against Collins

Collins, with a reported net worth of $44 million one of the wealthiest members of Congress, is accused of illegally leaking confidential information about a biopharmaceutical company to his son and the father of his son’s fiancee that allowed them to avoid hundreds of thousands of dollars in stock losses. The most serious charge carries a potential prison term of up to 20 years. If he wins and is later convicted and forced to resign, a special election would be held.

The 68-year-old Collins pleaded not guilty and initially vowed to continue his re-election campaign. He then agreed to be removed from the ballot “in the best interests of the constituents,” only to reverse course again and announce he would stay on the ballot — even as party leaders who had spent weeks exploring legal maneuvers to remove him were preparing to announce a replacement.

“The stakes are too high to allow the radical left to take control of this seat in Congress,” Collins said in a Sept. 19 statement. 

Collins is one of two Republican congressmen running for re-election while under indictment. Rep. Duncan Hunter, of California, has pleaded not guilty to spending campaign funds for personal expenses. Hunter and Collins were the first two Republicans to endorse Trump in the Republican presidential primaries, and their indictments drew a critical Sept. 3 tweet from Trump aimed at Attorney General Jeff Sessions.

Tweeted Trump: “Two easy wins now in doubt because there is not enough time.”

Since entering the race, Collins has limited his personal appearances largely to friendly gatherings like the Republican Women’s Autumn Brunch and the Newstead GOP Sportsman Extravaganza. He declined to be interviewed by The Associated Press.

“A lot of folks just happy that I’m back in the race,” he told WIVB this week. “They know what’s at stake. … Every seat matters. As you read the pundits now, it’s going to be a very close election to see who is going to be in the majority of the House come next year.”

The campaigns

Collins, a businessman who made his money by buying distressed businesses and turning them around, proudly carries an A+ rating from the National Rifle Association and cites among his priorities never increasing entitlement programs, reforming the tax code and balancing the federal budget in 10 years.

He has been on the air with negative television ads, including one that was assailed by critics as racist. It showed McMurray speaking Korean as a portrait of North Korean leader Kim Jong Un floated in the background and captions falsely implied McMurray was talking about sending American jobs to Asia.

McMurray, a lawyer, studied the development of constitutional democracy in South Korea as a Fulbright scholar. His campaign has focused on health care for all, protecting Social Security, the environment and strengthening infrastructure. He said he supports gun rights but also universal background checks and a ban on bump stocks.

Out in the district, 23-year-old line cook Brett Schuman said the allegations against Collins were enough to sway him. “When there’s anything happening, criminal or otherwise, I’m going to defer to the other party.”

Retired engineer Don Lloyd said he liked McMurray’s background and education but would still vote for Collins, if only to help Republicans keep control of the House and preserve Trump’s agenda. Democrats need a net gain of 23 seats to take control of the chamber.

“Let’s face it, the election isn’t about Chris Collins — it’s about Trump,” said Lloyd, 70.

“So hold your nose, I guess.”

Russia Space Agency: Astronauts Will Likely Fly in Spring

The head of Russia’s space agency said Friday that two astronauts who survived the midair failure of a Russian rocket would fly again and would provisionally travel to the International Space Station (ISS) in spring of next year.

Dmitry Rogozin, the head of Russian space agency Roscosmos, was speaking a day after Russian cosmonaut Alexei Ovchinin and American Nick Hague made a dramatic emergency landing in Kazakhstan after the failure of the Soyuz rocket carrying them to the orbital ISS.

Rogozin Friday posted a picture on Twitter of himself next to the two astronauts and said they had now arrived in Moscow. Both men escaped unscathed and feel fine, Roscosmos has said.

The mishap occurred as the first and second stages of a Russian rocket separated shortly after the launch from Kazakhstan’s Soviet-era cosmodrome of Baikonur.

Thursday’s accident was the first serious launch problem experienced by a manned Soyuz space mission since 1983, when a crew narrowly escaped before a launch pad explosion.

The Interfax news agency Friday cited a source familiar with the Russian investigation as saying that a faulty valve had caused the first stage of the Soyuz-FG rocket to malfunction even though the valve had been properly checked before take-off.

NASA has relied on Russian rockets to ferry astronauts to the space station since the United States retired its Space Shuttle program in 2011, although the agency has announced plans for a test flight carrying two astronauts on a SpaceX commercial rocket next April.

Space is an area of cooperation between the United States and Russia at a time of fraught relations. Asked about the mishap, President Donald Trump told reporters at the White House he was “not worried” that American astronauts have to rely on Russia to get into space.

Moscow has suspended all manned space launches, while Rogozin has ordered a state commission to investigate what went wrong. Russia’s Investigative Committee has also opened a criminal investigation into the matter.

Unmanned launches of the Progress spacecraft, which carry food and other supplies to the ISS and use the same rocket system as Soyuz, might also be suspended, Interfax has said.

 

WATCH: US-Russian Space Crew Makes Emergency Landing

US-Russian Space Crew Makes Emergency Landing After Rocket Problem

A U.S. astronaut and a Russian cosmonaut made an emergency return to earth Thursday shortly after launching on what was supposed to be a mission to the International Space Station. Rescuers reached American Nick Hague and Russian Alexei Ovchinin after their emergency landing in Kazakhstan. VOA Pentagon correspondent Carla Babb recently sat down with Hague to talk about his future in space, a future now up in the air after his unexpected fall to Earth.

Facebook Deletes Hundreds of Pages, Accounts for Spreading Fake News

Facebook announced Thursday that it had deleted over 800 mostly U.S.-based pages and accounts that were posting politically oriented spam and engaging in “inauthentic behavior.” 

The social media giant declined a request from VOA News to name the 559 pages and 251 accounts. Nation in Distress, a pro-President Donald Trump page identified by The Washington Post as being among the banned, had over 3 million followers.

Facebook said that many of the pages and accounts had posted political clickbait across multiple fake accounts to drive users to their websites, where they were often targeted with ads. 

“Many used the same techniques to make their content appear more popular on Facebook than it really was,” Facebook said on its news blog. “Others were ad farms using Facebook to mislead people into thinking that they were forums for legitimate political debate.”

Facebook said “the ‘news’ stories or opinions these accounts and pages share are often indistinguishable from legitimate political debate,” noting the proximity of the 2018 midterm elections.

In the past, Facebook has purged dozens of pages spreading fake news originating from Iran and Russia, countries that have antagonistic relations with the U.S. The company says most of the pages and accounts banned this time were from the U.S.

Musk Rejects Report on Succession at Tesla

Elon Musk replied with a tweet saying “This is incorrect” after the Financial

Times reported that outgoing Twenty-First Century Fox Inc. Chief Executive James Murdoch was the lead candidate to replace him as Tesla Inc. chairman.

Tesla has until Nov. 13 to appoint an independent chairman of the board, part of settlements reached last month between Tesla, Musk and U.S. regulators after Musk tweeted in August that he had secured funding to take the electric car maker private.

The SEC settlement capped months of debate and some investor calls for stronger oversight of Musk, whose recent erratic public behavior raised concerns about his ability to steer the money-losing company through a rocky phase of growth.

The U.S. Securities and Exchange Commission, which said Musk’s tweeted statements about going private were fraudulent, allowed the billionaire to retain his role as CEO while requiring he give up his chairmanship.

Musk had said he was considering taking Tesla private at a price of $420 a share, a number that is slang for marijuana. He tweeted the three-word denial of the Financial Times story on Wednesday at 4:20 pm PDT (2320 GMT), about six hours after the newspaper’s post.

In a vote of confidence for Musk, shareholder T. Rowe Price Group Inc. said in a regulatory filing on Wednesday that it had raised its stake to 10.2 percent at the end of September from just under 7 percent in June.

The Financial Times cited two people briefed on discussions saying Murdoch was the lead candidate for the job. Murdoch, already an independent director of Tesla, has signaled he wants the job, the report said.

The son of Fox mogul Rupert Murdoch, he joined Tesla’s board last year after years of work with media companies. He has no experience in manufacturing and has never led a company that makes cars or electric vehicles.

Murdoch could not immediately be reached for comment. Tesla did not respond to a request for comment. Twenty-First Century Fox declined to comment.

​Board roles

Musk is the public face of Tesla, and any chairman would have to contend with his powerful personality. Thanks to his vision and audacious showmanship, Tesla’s valuation has at times eclipsed that of established U.S. automakers with billions in revenues, and the company has garnered legions of fans, despite repeated production issues.

“The question when it comes to James Murdoch is, ‘Is he the guy who’ll be able to establish that level of authority with Elon Musk?’ ” asked Abby Adlerman, CEO of Boardspan, a corporate governance consulting company.

Murdoch, who at 45 is a near contemporary of 47-year-old Musk, recently navigated a takeover battle between Fox and Comcast Corp. to buy European pay-TV company Sky, which he also chaired.

His record in ensuring Sky’s independent shareholders were represented throughout was exemplary, media analyst Alice Enders said.

“His experience is very recent and very relevant,” she said.

Investor concerns that Tesla’s board was too closely tied to Musk led to the company’s addition of two independent directors, including Murdoch, in July 2017.

Earlier this year, leading U.S. proxy advisers Glass Lewis & Co. and Institutional Shareholder Services and union-affiliated investment adviser CtW Investment Group had recommended investors cast votes “against” the re-election of Murdoch as a Tesla director at the company’s annual meeting held on June 5.

While CtW cited a lack of relevant experience and a “troubled history as an executive and director,” both proxy firms warned that Murdoch already served on too many boards.

Murdoch currently serves on the boards of Twenty-First Century Fox and News Corp. He stepped down from Sky Plc on Tuesday following the completion of Comcast’s takeover of the broadcaster.

He was appointed chief executive of Sky, founded by his father, in 2003, becoming the youngest CEO of a FTSE 100 company.

“Under his leadership, Sky went down the technology route,” Enders said. “It’s no accident he oversaw that strategy, which was really distinct from the strategy other pay-TV companies followed, and in my view was his most valuable contribution.”

Murdoch replaced his father as chairman of Sky in 2007, but was forced out in 2012 after being embroiled in Britain’s phone-hacking scandal. He returned to Sky’s board in 2016 after rebuilding his career at Fox.

WHO Cracks Down on Illicit Sale of Tobacco

Parties to a new global treaty to combat the illicit sale of tobacco products have taken the first steps toward cracking down on this multi-billion dollar trade.  At a three-day meeting at the headquarters of the World Health Organization in Geneva they have outlined a plan to shut down the lucrative black market trade in tobacco.

A global tobacco treaty (Protocol to Eliminate Illicit Trade in Tobacco Products) entered into force on September 25, with 48 countries joining the new protocol, which is part of the WHO Framework Convention for Tobacco Control (FCTC).  Two-thirds of the parties have enacted or strengthened national legislation aimed at tackling illicit trade in tobacco products.

Parties attending the meeting have set up a working group to create a monitoring system to track and trace the movement of tobacco products. They hope this global information sharing system will be up and running by 2023.  

Head of the FCTC Secretariat, Vera da Costa e Silva, says illicit trade accounts for one in 10 cigarettes consumed.  She says these cigarettes are low-priced and more affordable for young people and vulnerable populations.  She says this results in increased consumption of the toxic product by these groups.

She told VOA the black market in tobacco thrives in both rich and poor countries, but it is a much bigger problem in developing countries.

“In the streets of developing countries, you can see all over the world sales of illicit trade of tobacco products.  They are openly in their markets…. When it comes to the distribution, this is linked to street sales, to bootlegging as well through borders and even to sales to and by minors.  That is a real problem of illicit trade in tobacco products,” she said.

Da Costa e Silva said this flourishing illegal trade undermines tobacco control policies and public health.  She said it also fuels organized crime and increases tobacco profits through tax evasion, resulting in substantial losses in governments’ revenues.   

She said studies show governments lose $31 billion in taxes annually from the illegal trafficking in tobacco products.  

The World Health Organization reports seven million people die prematurely every year from tobacco-related causes.

 

Top Trump Economic Adviser Denies President Is Pressuring Fed

One of Donald Trump’s top economic advisers says the president is not trying to improperly influence the U.S. central bank.

The director of the National Economic Council, Larry Kudlow, spoke to the television network CNBC a day after Trump said the U.S. Federal Reserve is “loco” (crazy) for raising interest rates. On Thursday, Trump continued his attacks on the central bank, calling the Fed “out of control,” but denied he has plans to fire Fed Chair Jay Powell. 

Kudlow said, “We all know the Fed is independent. The president is not dictating policy to the Fed.”  

The Federal Reserve slashed the benchmark interest rate nearly to zero in an emergency, temporary effort to boost economic growth hurt by a severe recession 10 years ago. Since then, the economy has stopped shrinking and resumed growth, unemployment has fallen to historic lows, and wages and inflation have begun to rise modestly.  

Low interest rates boost growth by making it cheaper for businesses and families to borrow money to build factories or buy homes.  Economists warn that keeping interest rates too low for too long could spark strong inflation that pushes up prices and wages so sharply that they damage the economy.  

To fend off inflation, the Fed has been slowly raising rates a quarter of a percentage point at a time. They are expected to continue this effort to gradually return rates to their historic averages.

A common conflict grows out of the fact that incumbent elected politicians get the blame if the economy is not growing strongly. That gives presidents and others a political incentive to keep interest rates low, regardless of the consequences.  

That is why central banks in the United States and elsewhere are often set up to be insulated from political pressure — so they can make decisions based on economic merit rather than potential popularity.

When the independence of a central bank is seriously questioned, markets and currencies can fall, because investors lose confidence in the economic management of a nation.

U.S. stock markets fell sharply again Wednesday with the benchmark Dow Jones industrial average off nearly 550 points, a drop of more than 2 percent.

This was the second sharp loss for U.S. stocks in as many days, with a total loss for the Dow at more than 1,300 points. Many key European and Asian stock indexes also declined. 

Missouri Appeals Ruling That Blocked Part of Voter Photo ID

Missouri’s top election official on Thursday said the state was appealing a judge’s ruling that blocked enforcement of parts of a voter photo identification law, adding that the ruling was causing “mass confusion” ahead of a key election for a U.S. Senate seat.

Republican Secretary of State Jay Ashcroft in a statement said the state attorney general had appealed the ruling and asked it to be put on hold as that process plays out. 

At issue is Senior Cole County Circuit Judge Richard Callahan’s recent ruling striking down a requirement that a voter lacking a valid photo ID must sign a sworn statement and present some other form of identification in order to cast a regular ballot. Callahan also blocked the state from advertising that a photo ID is required to vote.

Ashcroft said there’s confusion because Callahan’s ruling “directs the STATE not to use the statement.” But Ashcroft said it’s local election authorities who would have been responsible for requesting that voters without proper photo identification sign an affidavit, “so it is not clear if they are bound by the judge’s decision.”

“The judge’s decision has injected mass confusion into the voting process just weeks before an important election — an action the courts historically and purposely have not taken,” Ashcroft said, adding that many local election authorities already had trained poll workers to require voters to sign sworn statements.

Callahan’s ruling came as voters are preparing for a Nov. 6 election headlined by the race between Democratic U.S. Sen. Claire McCaskill and her Republican challenger, Attorney General Josh Hawley, whose office is defending the state law on behalf of Ashcroft.

Strategist Symone Sanders of Priorities USA, a Washington-based liberal advocacy group that sued on behalf of some Missouri voters, in a statement praised Callahan’s ruling and criticized the photo ID law as having “required voters to sign a threatening and confusing affidavit to receive a regular ballot if they didn’t have photo identification.”

“What’s confusing is the secretary of state’s support of limiting access to the ballot box,” she said.

Missouri’s 2016 law was enacted when the Republican-led Legislature overrode the veto of then-Gov. Jay Nixon, a Democrat. Voters in 2016 also approved a constitutional amendment intended to permit photo identification laws. The Missouri law was not yet in effect for the 2016 elections.

Voter photo ID requirements have been pushed by Republicans in numerous states as a means of preventing fraud. They have been opposed by Democrats who contend such laws can disenfranchise poor, elderly, disabled and minority voters who are less likely to have photo IDs.

Arkansas Supreme Court Upholds Revised Voter ID Law

Arkansas’ highest court on Thursday upheld a voter ID law that is nearly identical to a restriction struck down by the court four years ago.

The Arkansas Supreme Court reversed a judge’s ruling against the law approved last year by the Republican-controlled Legislature and governor. A judge had blocked officials from enforcing the restriction, but justices in May stayed that ruling and kept the law in effect while they considered the case.

The high court in 2014 struck down a previous version of the voter ID law as unconstitutional.

The revised voter ID law, which was approved last year, requires voters to show photo identification before casting a ballot. Unlike the previous measure, the new law allows voters to cast provisional ballots if they sign a sworn statement confirming their identities. Opponents of the new measure had argued that it circumvented the 2014 ruling.

In the 5-2 ruling Thursday, justices said lawmakers had the power to enact the restriction by labeling it a change to a constitutional amendment related to voter registration requirements. “It is therefore constitutional,” Justice Robin Wynne wrote in the court’s ruling.

Arkansas officials argued the new law complies with part of the Supreme Court’s ruling striking down the 2013 measure. Justices in 2014 unanimously struck down the previous voter ID law, with a majority of the court ruling that it unconstitutionally added a qualification to vote. Three justices, however, ruled the measure didn’t get the two-thirds vote needed to change voter registration requirements.

A majority of the court has changed hands since that ruling, and more than two-thirds of the Arkansas House and Senate approved the new measure last year.

A justice who disagreed with the ruling Thursday questioned the court’s argument that the law was related to voter registration, noting that the state doesn’t require photo ID in order to register to vote.

“If providing photo identification were required at registration, requiring presentation of the card at the polling place would be more defensible,” Justice Jo Hart wrote. “Asking for a photo identification card at the polling place strikes me as locking the barn door after the horse has been stolen.”

Trump Voices Optimism About Republican Election Chances

U.S. President Donald Trump said Thursday he is optimistic about Republicans retaining control of both chambers of Congress in next month’s nationwide congressional elections, as well as his own re-election in 2020.

“I think the Republicans are very energized,” Trump told interviewers on his favorite news talk show, “Fox & Friends,” because of the robust U.S. economy and last week’s Senate confirmation of Trump nominee Brett Kavanaugh to the Supreme Court. “I really believe we’re going to do well. I think we’ll be successful.”

Trump’s prediction on the Nov. 6 elections halfway through his first four-year White House term is at odds with historical trends favoring the political party out of power, the Democrats at the moment, in U.S. midterm elections.

In addition, independent analysts say polling shows Democrats are poised to take control of the House of Representatives, while Republicans are likely to retain their slim majority in the Senate.

‘Bunch of haters’

Trump said that if Democrats assume control of the House, “We’ll just have to fight it out” over the next two years “because there’s a bunch of haters” against him and his policies. Some Democrats have already said that if they have a majority in the House they plan to launch impeachment proceedings against Trump and investigations of his personal finances and government programs he has changed since he assumed power in January 2017.

Still, Trump said if there is a Democratic takeover in the House, “It’s possible we’ll get along,” because both he and Democrats could reach agreement on infrastructure spending they both favor to repair crumbling highways and bridges in the U.S.

2020

As for 2020, Trump declined to say whether there was any possible single Democratic opponent he feared most in his bid for a second four-year term.

“So far, I like ’em all, everyone of them,” Trump said. “I don’t see a name I don’t like.”

Several Democrats, including former Vice President Joe Biden, say they will make up their minds by the end of the year whether to mount a nationwide campaign against Trump. Already, some of them have been making campaign-style speeches in states with early 2020 Democratic primaries that will play a pivotal role in determining Trump’s eventual opponent.

Republican prospects

Trump said that with the economy doing well, often a key determinant in U.S. presidential elections, “I don’t see why I wouldn’t do well in the election. We’ve done more in less than two years than anyone in history, and I don’t think it’s even close.”

Yet, national surveys show voters consistently disapprove of Trump’s performance in office, currently by about a 53 to 43 percent margin.

Experts: Urbanization Will Spread Housing Crisis Worldwide

More than half of the world’s population lives in cities, according to United Nations figures.  By the middle of this century, 68 percent of the world will be urbanized, adding 2½ billion people to global cities.  The growth will bring problems, including lack of housing, and,  as Mike O’Sullivan reports, some ballooning urban regions already face a housing crisis.

US Companies Affected by Trump Tariffs Grapple With Uncertainty

The trade war between the United States and China has made for a nerve-wracking summer of uncertainty in Wisconsin, where manufacturing has long been in decline yet remains a vital part of the state’s economy.

At Johnson Level and Tool in suburban Milwaukee, the Trump administration’s thrust-and-parry trade moves with China and other countries have left the company bracing for up to $3.7 million in extra costs annually because of higher tariffs on imports, including some of its levels that are made in China.

The company has a range of options to try to blunt its higher costs — from raising prices on the levels it sells to big box stores to potentially moving some of its manufacturing now done in China to another country to avoid tariffs.

But as companies across America struggle to adapt to the higher prices from import taxes, the options that officials at Johnson Level and Tool face underscore there are no easy answers — and no surefire way to avoid paying more for indispensable imports. As Trump’s tariffs on countless U.S. imports take root, some of the largest U.S. corporations have warned that higher prices are coming.   

For many such companies, a key internal question is whether to absorb the higher costs themselves, at least temporarily, to avoid losing customers — or raise prices immediately. Johnson Level has chosen to raise its prices for the stores that buy its products by 8 percent to 10 percent to match its higher costs imposed by the tariffs.

Levels are a basic tool essential for things like getting doorways square and hanging pictures straight. Though Johnson manufactures some of its levels in Mequon, it imports others that are cheaper to make in China because their tooling machines cost just one-tenth what they do in the U.S., said Paul Buzzell, the company’s chief financial officer. About half of the levels the company sells are imported from China.

The uncertainty over how long the tariffs will remain in place has made it harder to find a solution, Buzzell said. He said he always assumed that if the U.S. increased tariffs, it would give businesses a year or two to prepare by making adjustments with their suppliers.

That was the assumption, he said, when the company “started investing in our suppliers and relationships in China.”

“We have this uncertainty, and almost overnight our business really has changed and so the competitive landscape is different,” Buzzell said.

The first tariffs on Chinese steel and aluminum in June didn’t affect Johnson Level; the company doesn’t import those raw materials. But in July, a second round of tariffs on $50 billion worth of Chinese imports covering hundreds of items, including all the levels and laser levels the company imports, meaning they were now paying 25 percent more for those.

Despite its decline over the years, manufacturing still plays a central role in Wisconsin’s economy, making the survival of companies like Johnson Level essential to the state.

About 16 percent of Wisconsin’s workforce is in manufacturing — second only to Indiana, according to the National Association of Manufacturers . And global trade — whether involving manufacturing, farming or other industries — supports about 800,000 jobs in the state, according to the advocacy group U.S. Chamber of Commerce . That’s roughly a quarter of the state’s total workforce.

In business since 1947, Johnson Level and Tool sells levels and measuring tools to stores nationwide, including Home Depot, Menards, Lowe’s and Ace Hardware.  

Buzzell said some of his customers, whom he declined to name, have already balked at suggested price increases. One business customer that he said accounted for about $2 million in Johnson’s annual sales found another supplier shortly after Johnson raised its prices, Buzzell said.

Margaret Smith, a spokeswoman for Home Depot, said the company works “with suppliers to mitigate impact on customers.” She said she couldn’t elaborate.

Buzzell said the company, which employs about 100 people, has no plans to reduce staff. He wouldn’t disclose Johnson Level’s annual revenue, saying only that it’s under $50 million. Buzzell said one option likeliest to succeed — but also the costliest — would be for the company to find another country not subject to tariffs that can manufacture what it needs. Johnson Level has discussed that possibility, including making in the U.S. what it now imports from China, but it would entail a complex and time-consuming process.

‘Uncertainty’ reigns

“This is a classic example of uncertainty,” Buzzell said. “We’re questioning, should we treat these tariffs as a long-term thing that’s never going away.”

On the other hand, he said, the company must make pivotal decisions even knowing that the Trump administration could rescind its tariff increases at any time.

“You don’t really know what to do,” Buzzell said.

The uncertainty over how long the tariffs will stay is making decisions difficult for other companies that import products from China as well.

“The big question is, nobody knows how long they’ll be in place, so it’s hard making changes,” Austin Ramirez, the CEO of Husco International, said in an interview.

The Wisconsin-based Husco makes hydraulic and electro-mechanical components for cars and uses machines and metal from China.

“This is costing us a fortune,” Ramirez told U.S. Sen. Ron Johnson at a meeting with business leaders in July. Ramirez said the company was incurring about a million dollars a month more in expenses because of the Trump tariffs. Husco International makes roughly a half-billion in total revenue, Ramirez said.   

Husco International does about half its business overseas, with plants in Asia and Europe. The company also has about 100 manufacturing jobs in the U.S. for exports to other countries, but retaliatory tariffs on U.S. exports means those jobs could move elsewhere, Ramirez said.

“Those jobs are at risk because I can move them to overseas plants that aren’t subject to these tariffs,” Ramirez told Johnson.

At Regal Ware, a company that makes pots, frying pans and cast aluminum cookware, $2 million in profits could vanish if tariffs remain in place this year, said Doug Reigl, a vice president at the Wisconsin-based company.

Reigl said the company will consider moving production overseas “or look for ways to take costs out of operations here in the U.S.” if the tariffs stay.  

While layoffs may not be imminent at manufacturing companies, hiring could face a slowdown, said Dr. Joseph Daniels, chairman of the economics department at Marquette University.

“I would say what’s at risk is actually job creation,” Daniels said.

That’s a concern Buzzell shares.

“It’s not going to shut us down,” he said of the tariffs. “But what it does, it theoretically takes away money to invest in long-term projects.”

 

 

As Markets Swoon, Finance Chiefs Urge US, China to Cool It

The heads of the World Bank and IMF appealed Thursday to the U.S. and China to cool their dispute over technology policy and play by world trade rules, as tumbling share prices drove home potential perils from a clash between the world’s two biggest economies.

Global economic growth is slowing but remains strong, Christine Lagarde, managing director of the International Monetary Fund, said on the sidelines of the IMF-World Bank annual meeting, being held this week on the Indonesian island of Bali.

Countries are mostly in a “strong position,” she said, “which is why we believe we are not seeing what is referred to as ‘contagion.”‘

But the gyrations that rocked Wall Street the day before and Asia and Europe on Thursday, taking the Shanghai Composite index down 5.2 percent and Japan’s Nikkei 225 nearly 4 percent, do partly reflect rising interest rates in the U.S. and some other countries and growing uncertainty over trade, she said.

“It’s the combination of the two that is probably showing some of the tensions that we see in terms of indices, short-term indicators as well as possibly market volatility,” Lagarde said.

The U.S. and Chinese exchanges of penalty tariffs in their dispute isn’t helping, she said.

Her advice was threefold: “De-escalate. Fix the system. Don’t break it.”

She acknowledged that the World Trade Organization, based in Geneva, has made scant headway in recent years toward a global agreement on trade rules that can address issues like complaints over Chinese policies that U.S. President Donald Trump says unfairly extract advanced technologies and put foreign companies at a disadvantage in a quest to dominate certain industries.

“Our strong recommendation is to escalate work for a world trade system that is stronger, that is fairer and is fit for the purpose,” she said in opening remarks. 

‘More trade not less’

Somewhat obliquely, she said policies aimed toward an excessively “dominant position” were not compatible with free and fair trade.

The IMF has downgraded its forecast for global economic growth to 3.7 percent this year from its earlier estimate of 3.9 percent. It also issued reports this week on government finance and financial stability that warn of the risks of disruptions to world trade.

World Bank President Jim Yong Kim said the World Bank is working with developing countries to brace for a further deterioration.

“Trade is very critical because that is what has lifted people out of extreme poverty,” Kim said. “I am a globalist. That is my job. That is our only chance of ending extreme poverty. We need more trade not less trade,” he said.

Kim said the World Bank has launched a “human capital index” to help rank countries by the level of their investments in such areas as education and health care.

Policies to build such human capital are among the “smartest investments countries can make,” he said.

He praised host country Indonesia, a democratic, Muslim-majority country of 260 million, for fostering strong growth but noted there was much room for improvement. The country is ranked 87th of 150 countries in the list.

Indonesia has endured a slew of disasters in recent months. Before dawn on Thursday, an earthquake collapsed homes on Indonesia’s Java island, killing at least three people just two weeks after a major quake and tsunami disaster in a central region of the archipelago killed more than 2,000 people and left perhaps thousands more buried deeply in mud.

Thursday’s magnitude 6.0 quake offshore north of Bali shook the area where the IMF-World Bank delegates are meeting, but there were no signs of significant damage.

The annual financial meetings take place at a time of growing concern over trends other than trade, such as moves to raise borrowing costs in the U.S. and some other regions to help cool growth and keep inflation in check. Rising interest rates are drawing investment flows out of emerging markets in Asia and Latin America at a time when growth in their exports is likely to slow.

Rising debts

Argentina and Pakistan, Venezuela and Zimbabwe are among countries grappling with crises. Concerns are growing, also, over slowing growth in China and rising debts among some developing countries resulting from projects associated with Beijing’s “Belt and Road Initiative” to develop ports, roads and other infrastructure. 

Lagarde said the IMF will send a team to Pakistan in the coming weeks after a meeting with its finance minister, Asad Umar, in which he requested emergency bailout loans.

The IMF chief did not say how much Umar had requested. Analysts say Pakistan is seeking $8 billion in loans to deal with a balance of payments crisis. Pakistan’s currency plunged by around 7 percent earlier this week after word of the loan request was made public.

Asked whether IMF help might amount to a “bailout” for Chinese loans, Lagarde said any such help would have to be completely transparent.

“In whatever work we do we need a complete understanding and complete transparency about the nature of a debt that is bearing on a country,” she said.

The annual summit for global finance brings together central bankers and finance ministers, development experts and civil society groups from across the globe.

Bali has suffered terrorist bombings in the past, and the event was being held amid tight security. A convoy of armed personnel carriers was lined up alongside a beach path and access to the area was tightly controlled. 

Still, about a dozen activists concerned with land grabs and other issues sometimes associated with World Bank-sponsored projects staged a brief, peaceful protest over the cancellation by local authorities of a conference they were to hold in the nearby city of Denpasar.

“If they don’t want to ever hear our voices, what kinds of projects are we expecting?” said Joan Salvador, a member of a Philippine women’s group.

Those involved had badges allowing them to enter the tightly guarded venue, and an IMF official said she would convey their concerns “to the highest levels.”

Reagan Back on Campaign Trail — as Hologram

A characteristic twinkle in his eye, Ronald Reagan waves to a crowd from aboard a rail car in a hologram revealed Wednesday at the late president’s namesake library in Southern California.

“We think we made a good beginning, but you ain’t seen nothin’ yet!” the digital resurrection of the nation’s 40th president says in his steady voice as a flurry of balloons falls in front of him.

Reagan, who died in 2004 at age 93, was speaking about the nation’s future during a 1984 campaign stop but easily could have been referencing the technology that brought him back to life in 2018. The audio used is edited from his real remarks.

​’A stunning experience’

“We wanted to make President Reagan as lifelike as possible,” said John Heubusch, executive director of the Reagan Foundation. “It’s a stunning experience.”

In two other holograms, Reagan appears in a suit and tie inside the Oval Office and in horseback riding pants, carrying a lasso alongside his dog, Victory, at his beloved ranch. All three holograms will be on display to visitors of the Ronald Reagan Presidential Library, west of Los Angeles, starting Thursday.

They will be shown in a specially designed room that will be the first stop for guests. Seats are set up in front of a stage, and a curtain opens up to thunderous applause at Reagan’s campaign stop more than three decades ago.

How it was done

The computer-generated imagery for the holograms was created starting with a silicone cast of Reagan’s head that was photographed from various angles with 300 cameras. His head was then digitally “placed” on the body of an actor portraying the president with full costumes and backdrops for the three scenarios.

Reagan’s face comes to life via specific movements of the mouth, nose, eyes, cheeks and hairline, all manipulated by computers.

The library worked with the same special-effects technicians who helped bring singers like Michael Jackson, Billie Holiday and Roy Orbison back to life on stage.

The Hollywood firm Hologram USA helped create the holograms and the stage on which they’re projected.

A lover of technology

As a radio host, television star and movie actor, Reagan understood and appreciated new technologies, company senior vice president David Nussbaum said.

“He always thought many steps ahead,” he said. “If he was looking down right now on this project, I think he would give us his seal of approval. I think he would totally get this and support it.”

Seeing her former boss “almost in the flesh” was “a little eerie, but at the same time, very comforting,” said Joanne Drake, who served as Reagan’s chief of staff after the Republican left office following his two terms from 1981 to 1989.

“It’s fun to think that he’s standing in front of us,” said Drake, who’s now chief administration officer for the foundation. “Intellectually, you know it’s not him standing there, but you see his facial movements and his arm movements and his body and that twinkle in his eye and that little grin that he always got, and it makes you remember really what he brought to the office.”

Drake said future plans could include bringing the holograms on the road.

“I do think we’re going to see Ronald Reagan back in Washington, D.C.,” she said.