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 Optimistic About New Kavanaugh Inquiry

Amid a new investigation of his Supreme Court nominee, U.S. President Donald Trump maintained his support for Judge Brett Kavanaugh on Saturday, saying that “hopefully, at the conclusion, everything will be fine.” 

Trump, speaking to reporters on the White House South Lawn prior to his departure for a political rally in nearby West Virginia, noted that the FBI “is all over, talking to everybody,” including women who have accused Kavanaugh of sexual misconduct, and “I would expect it’s going to turn out very well for the judge.” 

The president also accused opposition Democrats of acting terribly and dishonestly during the Kavanaugh confirmation process. He expressed anger about the leak of Christine Blasey Ford’s accusation against Kavanaugh, which she sent to a congresswoman but had previously requested remain confidential. 

Despite what Trump told reporters, news reports indicated the White House might be limiting the scope of the FBI’s investigation — such as not permitting scrutiny of the claims of another woman, Julie Swetnick, who has accused Kavanaugh of sexual misconduct at parties while he was a prep school student. 

Trump administration officials also denied they were restricting areas of inquiry.

“The scope and duration has been set by the Senate,” according to a statement by White House spokesman Raj Shah. “The White House is letting FBI agents do what they are trained to do.”

News reports said the FBI had contacted Deborah Ramirez, the second of Kavanaugh’s accusers. The Associated Press reported that Ramirez’s lawyer, John Clune, said she had agreed to cooperate with agents. 

Ramirez alleged in a report published Sept. 23 by The New Yorker magazine that Kavanaugh exposed himself at a drunken dormitory party and shoved his penis in her face, forcing her to touch it while pushing him away. She said the the assault occurred during the 1983-84 school year at Yale University, where they both were students.

The FBI was also following up on accusations by Ford, the first woman who accused Kavanaugh. Her story dated to 1982, when they were teenagers. She said he sexually assaulted her at a gathering at a home in suburban Washington. Kavanaugh has angrily denied the allegation.

Both told their stories to the Senate Judiciary Committee separately Thursday in lengthy hearings.

Trump ordered the new investigation Friday at the request of the Judiciary Committee. The consent for a fresh probe was a concession by the Trump administration and Republicans, who had strongly contended that Kavanaugh was thoroughly vetted numerous times. 

WATCH: Kavanaugh Moves Step Closer to Confirmation, But With a Hitch 

The Judiciary Committee voted Friday to send Kavanaugh’s nomination for the Supreme Court to the full Senate after securing a party-line vote in favor of the nod, but Arizona Republican Jeff Flake requested a delay in the floor vote and the additional investigation.

“This country is being ripped apart here, and we’ve got to make sure that we do due diligence,” Flake said.

Another Republican senator, Lisa Murkowski of Alaska, said Friday that she agreed with Flake’s call for additional FBI investigation.

Republicans hold a slim 51-49 margin in the Senate. Kavanaugh needs at least 50 votes to have his nomination confirmed. Vice President Mike Pence would cast the deciding vote if the Senate was evenly split. If all Democrats vote against Kavanaugh, two Republicans would have to do the same to block his confirmation.

Kavanaugh said in a statement released by the White House that he would continue to cooperate with the FBI and the Senate.

“Throughout this process, I’ve been interviewed by the FBI, I’ve done a number of ‘background’ calls directly with the Senate, and yesterday, I answered questions under oath about every topic the senators and their counsel asked me. I’ve done everything they have requested and will continue to cooperate,” he said.

In another development Friday, a high school friend of Kavanaugh, Mark Judge, said he was willing to cooperate with any FBI investigation. Judge is likely to figure prominently in any inquiry by the FBI, because Ford contends he was present when Kavanaugh assaulted her at the suburban Washington party. Judge has denied being at any party with Ford when an attack took place.

New FBI Investigation Begins Into Kavanaugh

The FBI has launched a new investigation of Supreme Court nominee Brett Kavanaugh.

President Donald Trump ordered the investigation at the request of the Senate Judiciary Committee.

Trump posted on Twitter Friday night:

Trump said in a statement the updated investigation, which follows sexual misconduct allegations, “must be limited in scope” and “completed in less than one week.”

The decision is a reversal for the administration, which had argued that Kavanaugh had been vetted.

WATCH: Kavanaugh Moves Step Closer to Confirmation, But With a Hitch

​Due diligence

Earlier Friday, the Senate Judiciary Committee voted to send Kavanaugh’s nomination for the Supreme Court to the full Senate after securing a vote in favor of Kavanaugh’s nomination from Republican Jeff Flake, who requested a delay and investigation.

The committee of 11 Republicans and 10 Democrats voted along party lines to move the nomination forward.

“This country is being ripped apart here, and we’ve got to make sure that we do due diligence,” Flake said.

Another Republican senator, Lisa Murkowski, said Friday she agrees with Flake in wanting an FBI investigation. Because Republicans hold a slim 51-49 margin in the Senate, they have little choice now but to slow down the process to confirm Kavanaugh.

Republican leaders said Friday they still plan to move ahead with a procedural vote on Kavanaugh’s nomination Saturday.

​Kavanaugh to cooperate

Kavanaugh said in a statement released by the White House that he will continue to cooperate with the FBI and the Senate. 

“Throughout this process, I’ve been interviewed by the FBI, I’ve done a number of ‘background’ calls directly with the Senate, and yesterday, I answered questions under oath about every topic the senators and their counsel asked me. I’ve done everything they have requested and will continue to cooperate,” he said.

The developments come one day after dramatic testimony by Kavanaugh and Christine Blasey Ford, a woman who has accused him of sexual assault when they were teenagers in 1982. Both told their stories to the Senate Judiciary Committee separately in lengthy hearings.

Kavanaugh has angrily denied the allegation that he sexually assaulted Ford at a gathering at a home in suburban Washington.

Kavanaugh needs at least 50 votes to be confirmed by the 100 member Senate. Vice President Mike Pence would cast the deciding vote if the Senate is evenly split. If all Democrats vote against Kavanaugh, two Republicans would also have to do the same to block his confirmation.

In another development Friday, a high school friend of Kavanaugh, Mark Judge, says he is willing to cooperate with any FBI investigation. Judge is likely to figure prominently in any inquiry by the FBI as Ford claims he was present when Kavanaugh allegedly attacked her at a party. Judge has denied being at any party with Ford when an attack took place.

 

WATCH: Personal and Political Debates Collide in Emotional US Supreme Court Fight

How key senators will vote

Also Friday, several Democrats from states that Trump won announced they would vote against Kavanaugh.

Democratic Senator Joe Donnelly from Indiana said he would vote against the appellate court judge. Donnelly said Ford’s sexual assault accusation against Kavanaugh was “disturbing and credible” and repeated a Democratic call for the FBI investigation.

Senator Doug Jones, a first-term Democrat from Alabama, a state in which President Donald Trump won by a wide margin, said Thursday he is voting ‘no’ on Kavanaugh’s bid for the Supreme Court. 

“The Kavanaugh nomination process has been flawed from the beginning,” he said, adding that Ford was credible and courageous.

Democratic Senator Bill Nelson of swing state Florida also said Thursday he would vote against Kavanaugh. Republicans are trying to gain the vote of Democratic Senator Joe Manchin of West Virginia, a state that Trump won comfortably, along with Republican Senators Susan Collins of Maine and Murkowski of Alaska.

Senator Heidi Heitkamp, a Democrat from North Dakota, also said she needs time to decide how she will vote. She is running for re-election in a state that voted heavily for Trump.

​Bar association request

The American Bar Association late Thursday called on the Judiciary committee and the full Senate to delay the vote until the FBI has time to do a full background check on the claims made by Ford and other women.

“We make this request because of the ABA’s respect for the rule of law and due process under law,’’ the ABA letter to committee leadership said. “Each appointment to our nation’s highest court [as with all others] is simply too important to rush to a vote.”

Earlier Friday, committee Chairman Charles Grassley flatly dismissed the ABA’s request, saying, “I’ve explained many times an FBI investigation is not necessary. The ABA is an outside organization like any other that can send us letters and share their advice, but we’re not going to let them dictate our committee’s business.”

A Pakistani American Startup Fighting Media Censorship

According to the latest report by the Committee to Protect Journalists in Pakistan, fatal violence against journalists has declined, but fear and self-censorship have grown. In this era, five Pakistani American students at Harvard University have created a startup that challenges censorship using the latest block-chain technology. Their mission is “making journalism truly free.” Saqib Ul Islam visited Harvard’s innovation lab to bring us the story of a new company called “Inkrypt.”

Manafort Trial Puts Spotlight on Lobbyists

The trial of Paul Manafort, President Donald Trump’s former campaign chairman, is sending shockwaves across the multibillion dollar lobbying industry in Washington. Many lobbyists in Washington fear his guilty verdict on bank and fraud charges and his guilty plea on obstruction charges will make lobbying a much more risky business. Daria Dieguts has the story.

US Consumers Spend More; Inflation Flattens

U.S. consumer spending increased steadily in August, supporting expectations of solid economic growth in the third quarter, while a measure of underlying inflation remained at the Federal Reserve’s 2 percent target for a fourth straight month.

Economists said Friday’s report from the Commerce Department should allay fears of the economy overheating and likely keeps the U.S. central bank on a gradual path of interest rate increases. The Fed raised rates Wednesday for the third time this year and removed the reference to monetary policy remaining “accommodative.”

“Growth is solid and inflation pressures modest,” said Chris Rupkey, chief economist at MUFG in New York. “This is exactly the environment the Fed needs to move interest rates up at a gradual pace as further rate hikes start to look like tightening.”

Consumer spending

The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.3 percent last month after an unrevised 0.4 percent gain in July. Spending last month was driven by outlays on health care, which offset a drop in motor vehicle purchases.

August’s increase in consumer spending was in line with economists’ expectations. When adjusted for inflation, consumer spending rose 0.2 percent after climbing 0.3 percent in July.

The report came on the heels of data Thursday showing a decline in orders for key capital goods in August and a further widening of the goods trade deficit, which prompted economists to downgrade their gross domestic product growth estimates for the third quarter to as low as a 2.8 percent annualized rate.

Third-quarter GDP growth forecasts were previously as high as a 4.4 percent pace.

Economic growth

The economy grew at a 4.2 percent rate in the second quarter, powered by robust consumer spending. Economists said data in hand suggested that consumer spending was on track to grow around 3.6 percent in the third quarter, close to the 3.8 percent pace set in the April-June period.

Consumer spending is being driven by a tightening labor market, which is starting to boost wage growth, as well as higher savings. It is also being supported by robust consumer confidence.

A separate report Friday showed the University of Michigan’s consumer sentiment index at a six-month high in September. A survey earlier this week from the Conference Board showed consumer confidence hitting an 18-year high in September.

The Conference Board places more weight on the labor market.

The dollar was trading higher against a basket of currencies, while U.S. Treasury yields fell. Stocks on Wall Street were little changed in late afternoon trade.

Eyes on tariffs

In August, spending on goods increased 0.3 percent, likely lifted by higher gasoline prices. Spending on goods rose 0.5 percent in July. Outlays on services advanced 0.4 percent, with spending on health care accounting for much of the increase.

There was a moderation in monthly price gains in August. The personal consumption expenditures (PCE) price index excluding the volatile food and energy components was unchanged. That was the weakest reading since March 2017 and followed a 0.2 percent gain in July.

August’s flat reading left the year-on-year increase in the so-called core PCE price index at 2.0 percent. The core PCE index is the Fed’s preferred inflation measure. It hit the U.S. central bank’s 2 percent inflation target in March for the first time since April 2012.

Economists say inflation could slightly overshoot its target amid concerns an escalating trade war between the United States and China could lead to price increase for a range of consumer goods.

Washington on Monday slapped tariffs on $200 billion worth of Chinese goods, with Beijing retaliating with duties on $60 billion worth of U.S. products. The United States and China had already imposed tariffs on $50 billion worth of each other’s goods.

Walmart Inc, the largest U.S. retailer, said last week it might hike prices because of the duties on Chinese imports.

“With this $200 billion increase, you are effectively tripling the amount of goods subject to a tariff and that has potential to influence prices,” said Tim Quinlan, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

JPMorgan estimates that the tariffs could add 0.2 to 0.3 percentage point to core inflation.

In August, personal income rose 0.3 percent after increasing by the same margin in July. Wages jumped 0.5 percent, the biggest gain in seven months, after rising 0.3 percent in July.

The saving rate was unchanged at 6.6 percent last month.

Trump Dossier Research Chief Declines U.S. Congress Interview Request

The Republican chairman of the U.S. House Judiciary Committee on Friday subpoenaed a U.S. research firm founder to give a deposition on his hiring of a former British spy to compile a dossier on alleged links between U.S. President Donald Trump’s associates and Russia.

Representative Bob Goodlatte, a Republican from Virginia, announced the move on Twitter a day after receiving a letter in which lawyers for Glenn Simpson, the founder of Fusion GPS, said that their client “will not agree to an interview” requested earlier this week.

“As part of our joint investigation into decisions made by DOJ in 2016, today I subpoenaed Glenn Simpson to appear for a deposition,” Goodlatte posted on Twitter.

Goodlatte said in a separate Twitter post that former FBI Director James Comey, former U.S. Attorney General Loretta Lynch and other former Justice Department officials have been invited “as witnesses. Will subpoena them if necessary.”

Simpson’s lawyers also sent their letter to House Oversight Chairman Trey Gowdy, who is conducting with Goodlatte a probe into the Justice Department’s decision to investigate possible collusion between Trump’s 2016 presidential campaign and Russia.

The top Democrats on the committees, Elijah Cummings and Jerrold Nadler, in a statement accused the Republicans, who control Congress, of continuing “to abet the president as the walls close in around him.”

Fusion GPS was hired by lawyers for the Democratic Party and Hillary Clinton’s 2016 presidential campaign to conduct research on Trump, her opponent.

The firm in turn hired Christopher Steele, a former officer of MI6, the British foreign intelligence agency, to produce a dossier that outlined alleged Russian financial dealings with Trump, a longtime real estate developer, and included salacious personal details that remain unconfirmed.

The dossier was sent to the FBI, which already had launched an investigation into whether Russia interfered with the election and whether Trump campaign officials worked with Moscow to try to sway the outcome.

The Kremlin denies meddling in the election. Trump, who denies his campaign colluded with Russia, has called Steele’s work an “unverified and Fake Dirty Dossier” and has repeatedly denied any collusion with Russia.

In their letter, seen by Reuters, Simpson’s lawyers said Simpson already had been interviewed by the House Intelligence Committee, of which Gowdy is a member, and the Senate Judiciary Committee, which like all committees are led by Trump’s fellow Republicans.

“Part and parcel of this concerted effort by the president’s congressional allies has been a campaign of retaliation against the government’s whistleblowers, including our client Mr. Simpson, for their willingness to cooperate with U.S. law enforcement and for their exercise of their constitutional rights to free speech and political activity as American citizens,” the lawyers wrote.

 

Judge: Harvard Affirmative Action Case Can Go to Trial

A federal judge Friday cleared the way for a lawsuit to go to trial. It accuses Harvard University of discriminating against Asian-American applicants, a closely watched case that could influence the use of race in college admissions decisions.

U.S. District Judge Allison Burroughs in Boston rejected dueling motions by Harvard and a nonprofit group suing the Ivy League university to rule in their favor ahead of a nonjury trial set to begin Oct. 15.

The ruling came after the U.S. Justice Department, which has been investigating Harvard for potential civil rights violations over its affirmative action policy, threw its support behind the 2014 lawsuit by Students for Fair Admissions Inc.

Burroughs said that rather than presenting her with undisputed facts and evidence that would allow her to rule without overseeing a trial, Harvard and SFFA had filed motions that were “essentially mirror images of one another.”

“There are disputed material facts based on Harvard’s fact witnesses, the statistical evidence, and the expert opinions presented by each side that cannot be resolved before trial,” Burroughs wrote.

Representatives for the group and Harvard did not immediately respond to requests for comment.

Affirmative action

The U.S. Supreme Court has ruled that universities may use affirmative action to help minority applicants get into college.

Conservatives have said such programs can hurt white people and Asian Americans.

SFFA, which is headed by a prominent anti-affirmative action activist, alleged that evidence showed that Harvard’s admissions process, which factored in race, significantly disadvantaged Asian Americans compared with other groups.

Cambridge, Massachusetts-based Harvard has denied the allegations and has criticized the lawsuit as an effort to attack the right of colleges to consider race as an admissions factor.

Trump administration

After President Donald Trump, a Republican, took office last year, the Justice Department began investigating whether Harvard’s policies are discriminatory because they limit Asian-Americans’ acceptance.

In court papers, SFFA claimed an Asian-American male applicant with a 25 percent chance of admission would have a 35 percent chance if he were white, 75 percent chance if he were Hispanic and 95 percent chance if he were black.

A Harvard research division found in 2013 that over a decade, Asian-American admission rates were lower than those for whites annually even though whites outperformed Asian-American applicants only on a subjective “personal” rating, SFFA said.

House Committee to Release Russia Investigation Transcripts

The House intelligence committee voted Friday to release transcripts of more than 50 interviews it conducted as part of its now-closed investigation into Russian election interference during the 2016 presidential campaign.

Among those to be released are interviews with President Donald Trump’s eldest son, Donald Trump Jr., his son-in-law, Jared Kushner, his longtime spokeswoman, Hope Hicks, and his former bodyguard Keith Schiller. The committee also will release dozens of other transcripts of interviews with former Obama administration officials and numerous Trump associates, including Roger Stone, currently the subject of a grand jury investigation.

The move to release the materials by the committee chairman, GOP Rep. Devin Nunes of California, a close Trump ally, will provide the public with 53 transcripts spanning thousands of pages of raw testimony as special counsel Robert Mueller continues his Russia investigation. But not all interviews conducted by the committee are being released, and there wasn’t a firm timetable Friday for when they will ultimately be made public.

The interviews form the basis for the GOP-authored report released this year that concluded there was no coordination between Trump’s presidential campaign and Russian efforts to sway the election. Committee Democrats, who voted against approving the report, have disputed its findings. They say the investigation was shut down too quickly and that the committee didn’t interview enough witnesses or gather enough evidence.

Republican Rep. Mike Conaway of Texas, who led the investigation in place of Nunes, said he “wanted to declassify or release as much of the underlying data as we could so that not only would they have my conclusion, but they could look at what I was looking at to make up their own mind.”

But Rep. Adam Schiff of California, the committee’s top Democrat, said some of the most important transcripts — six in total — are still being withheld.

The withheld transcripts include separate interviews with Rep. Dana Rohrabacher, R-Calif., who has attracted attention for his pro-Russian statements, and Rep. Debbie Wasserman Schultz of Florida, who headed the Democratic National Committee when court papers say its computer systems were hacked by Russia.

Conaway said those transcripts were being withheld as a “professional courtesy” extended to members of Congress who participated in the interviews with the understanding they would be confidential.

Democrats say Wasserman Schultz has agreed to the release of her transcript. And on Friday, Rohrabacher told The Associated Press that he hasn’t objected to the release of his. Asked if he would agree to its release now, Rohrabacher said, “I’ll think about it.”

Also being withheld are transcripts of closed hearings with former CIA Director John Brennan, former FBI Director James Comey and former National Security Agency Director Mike Rogers as well as the transcript for the committee’s business meeting when GOP members approved their final report.

None of the transcripts, including those set for public release, has been provided to Mueller as part of his investigation, a move Democrats unsuccessfully pushed for on Friday.

“We have suspicions that people testified before our committee falsely and committed perjury, and the special counsel is in the best position to determine, on the basis of the additional information he has, who might have perjured themselves,” Schiff said.

But Conaway said Mueller hasn’t asked for access to the transcripts, and Republicans don’t want to be accused of trying to “skew” the investigation or obstruct justice by sending him materials he didn’t request.

“He’ll ask for it if he wants to. He’s a big boy,” Conaway said, noting the special counsel will be able to review them once they’re public.

The 53 transcripts approved for release will now go to the Office of the Director of National Intelligence for a declassification review.

Conaway and Schiff said they didn’t know how long the review would take or when the transcripts would be released to the public. Schiff said Republicans made clear that none of the transcripts, which largely don’t contain classified information, will be released until the declassification review is completed for all of them.

 

Google CEO to Testify Before US House on Bias Accusations

Google Chief Executive Sundar Pichai has agreed to testify before the U.S. House Judiciary Committee later this year over Republican concerns that the company is biased against conservatives, a senior Republican said Friday.

Republicans want to question Google, the search engine of Alphabet Inc, about whether its search algorithms are influenced by human bias. They also want to probe it on issues such as privacy, classification of news and opinion, and dealing with countries with human rights violations.

Pichai met with senior Republicans on Friday to discuss their concerns, House Majority Leader Kevin McCarthy said.

McCarthy told reporters after the meeting that it was “very productive” and “frank.”

“I think we’ve really shown that there is bias, which is human nature, but you have to have transparency and fairness,” McCarthy said. “As big tech’s business grows, we have not had enough transparency and that has led to an erosion of trust and, perhaps worse, harm to consumers.”

Alphabet Inc’s Google unit has repeatedly denied accusations of bias against conservatives. Pichai left the meeting without comment.

Pichai wrote in an internal email last week that suggestions that Google would interfere in search results for political reasons were “absolutely false. We do not bias our products to favor any political agenda.”

The CEO had been scheduled to be in Asia this week but canceled the trip to be in Washington.

The hearing will take place after the midterm congressional elections in November, McCarthy said.

Google came under fire from members of both parties earlier this month for refusing to send a top executive to a Senate Intelligence Committee hearing that included Facebook Inc and Twitter Inc executives.

Republicans have also raised concerns about Google’s dominance. Earlier this week, the Justice Department met with state attorneys general to focus on the need to protect consumer privacy when big technology companies amass vast troves of data, but came to no immediate conclusions.

Asked if Republicans will push to break up Google, McCarthy said: “I don’t see that.” He said the hearing will look at privacy, bias issues, China and other matters.

Pichai is also meeting with Democratic lawmakers and is due to meet with White House economic adviser Larry Kudlow on Friday, a White House official said Thursday.

Ousting Musk at Tesla Viewed as Difficult, Possibly Damaging

Tesla without Elon Musk at the wheel? To many of the electric car maker’s customers and investors, that would be unthinkable. But that’s what government securities regulators now want to see.

The Securities and Exchange Commission has asked a federal court to oust Musk as Tesla’s chairman and chief executive officer, alleging he committed securities fraud with false statements about plans to take the company private.

The agency says in a complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding had been secured for Tesla Inc. to go private at $420 per share, a substantial premium over the stock price at the time.

The SEC is asking the U.S. District Court in Manhattan to bar Musk from serving as an officer or director of a public company. It also is asking for an order enjoining Musk from making false and misleading statements along with repayment of any gains as well as civil penalties.

Ousting Musk, who has a huge celebrity status with more than 22 million Twitter followers, would be difficult and could damage the company. He’s viewed by many shareholders as the leader and brains behind Tesla’s electric car and solar panel operations.

The stock market shuddered at the prospect. Shares slid more than 12 percent to $269.52 in Friday morning trading after a number of analysts either downgraded the stock or issued negative notes.

Citi analyst Itay Michaeli downgraded Tesla Inc. shares to Sell/High Risk from Neutral/High Risk, telling investors in a note that the SEC case raises the risk of Musk’s ouster.

“There’s little question that Mr. Musk’s departure would likely cause harm to Tesla’s brand, stakeholder confidence and fundraising — thereby increasing the risk of triggering a downward confidence spiral given the state of Tesla’s balance sheet,” Michaeli wrote.

​’Reputational harm’

He also told investors that Musk could stay on, but “the reputational harm from this might still prevent the stock from immediately returning to ‘normal.’ ” Michaeli set a $225 one-year price target for the stock.

Tesla shares have a $130 “Musk premium” due to future business driven by Musk as a disrupter of multiple industries, but that could go away if Musk is ousted, Barclays analyst Brian Johnson wrote in a note.

“Should the SEC be successful in barring Mr. Musk from serving as an officer or director, investors would focus back on the value of Tesla as a niche automaker,” wrote Johnson, who reiterated an “Underweight” rating and set a price target of $210.

CFRA analyst Garrett Nelson downgraded the stock from “hold” to “sell” and reduced his price target to $225. “Despite Musk’s recent erratic behavior, we think most investors want him to remain with the company and they value shares at what we view as extremely lofty multiples given the potential for Musk’s vision to drive future growth,” he wrote. “Given uncertainty about Musk’s role going forward, we think a lower valuation is justified.”

Musk, in a statement issued by Tesla, disputed the SEC’s claims. “I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way,” the statement said.

According to a person knowledgeable about talks between Tesla and federal securities regulators, Musk rejected a settlement that would have allowed him to pay a small fine and stay on as CEO of the electric car company if he agreed to certain conditions, including restrictions on when he could release information publicly.

The person, who asked not to be identified because the negotiations were private, said Friday that Musk rejected the offer because he didn’t want a blemish on his record.

The SEC complaint alleges that Musk’s tweet harmed investors who bought Tesla stock after the tweet but before accurate information about the funding was made public.

No license in ‘celebrity status’

“Corporate officers hold positions of trust in our markets and have important responsibilities to shareholders,” Steven Peikin, co-director of the SEC’s Enforcement Division, said in a statement. “An officer’s celebrity status or reputation as a technological innovator does not give license to take those responsibilities lightly.”

Peter Henning, a law professor at Wayne State University and a former SEC lawyer, said it’s the first fraud case involving use of social media by the CEO of a public company. Musk and Tesla didn’t fully disclose details of the plan in the Aug. 7 tweet or in later communications that day as required, he noted.

“You can’t make full disclosure in 280 characters,” he said, referring to the length limit of a tweet.

Joseph Grundfest, a professor at Stanford Law School and former SEC commissioner, said Musk will likely want to settle before trial so that he could conceivably stay on as CEO, with some constraints such as prohibiting him from making public statements without supervision. But Musk also could agree to step down as CEO and instead take another title, such as chief production officer.

Grundfest also said that the challenge for the SEC is to “appropriately discipline Musk while not harming Tesla’s shareholders.”

According to the complaint, Musk met with representatives of a sovereign investment fund for 30 to 45 minutes on July 31 at Tesla’s Fremont, Calif., factory. Tesla has identified the fund as Saudi Arabia’s Public Investment Fund, which owns almost 5 percent of the company.

Fund representatives expressed interest in taking Tesla private and asked about building a factory in the Middle East, Musk told the SEC. But at the meeting, there was no discussion of a dollar amount or ownership stake for the fund, nor was there discussion of a premium to be paid to Tesla shareholders, the complaint said. Musk told the SEC that the lead representative of the fund told him he would be fine with reasonable terms for a go-private deal.

No specific terms

“Musk acknowledged that no specific deal terms had been established at the meeting and there was no discussion of what would or would not be considered reasonable. Nothing was exchanged in writing,” the complaint stated.

The SEC alleged in the 23-page complaint that Musk made the statements using his mobile phone in the middle of a trading day. That day, Tesla shares closed up 11 percent from the previous day.

The statements, the complaint said, “were premised on a long series of baseless assumptions and were contrary to facts that Musk knew.” Later in the month, Tesla announced that the go-private plan had been scrapped.

In its complaint, the SEC said that Musk’s statements hurt short sellers, who are investors who borrow a company’s stock betting that it will fall. Then they buy the shares back at a lower price and return them to the lenders, pocketing the profit.

In August, more than $13 billion worth of Tesla shares were being “shorted” by investors, the complaint said, as the stock was under pressure due to questions about Tesla’s finances and Musk’s erratic behavior.

Mark Spiegel, a short-seller and constant Musk critic, applauded the SEC for pursuing what he predicted would be easy for the government to prove.

Tesla’s board said in a statement Thursday night that it is “fully confident in Elon, his integrity, and his leadership of the company.” 

Facebook Tightens Security After Announcing Breach

The security breach Facebook announced Friday that affected 50 million users was a setback for the social media giant, which has been working for months to regain customers’ trust over how it handles their data.

In addition to the 50 million users whose log-on information could have been accessed by hackers, the company required as a precaution another 40 million to log on to be able to get on their accounts. Facebook said it reported the breach of the company’s code, which the firm said it fixed, to law enforcement.

The social media company was not sure Friday whether any personal information had been gathered or misused, but it scrambled to address the issue, which was discovered earlier in the week. Facebook users may find they have to relink their Facebook accounts to their Instagram accounts, and possibly to third-party apps, which users often log on to with their Facebook accounts.

In a call Friday with reporters, Guy Rosen, Facebook vice president of product management, said that the breach appeared to be very broad with no specific country targeted. “We’ll update with what we learn,” he said. 

Focus on elections

The breach came just weeks before the U.S. midterm elections, something the company has been keenly focused on.

More than 300 Facebook workers are scouring the platform, looking for false news, fake accounts and disinformation campaigns by foreign state-sponsored operatives that may be trying to sway voters. Facebook executives have said that they did not do enough to address these issues in the run-up to other elections such as the 2016 U.S. presidential race and that they are working to fix them.

In addition, Facebook’s relationship with its 2 billion users took a hit last spring when it was disclosed that an outside researcher who was given access to Facebook data used the information for political campaigns. As a result, the company contacted users whose information might have been seen or used by the outside firm Cambridge Analytica.

“We have a responsibility to protect your data, and if we can’t, then we don’t deserve to serve you,” Facebook CEO Mark Zuckerberg said in a statement posted to his Facebook page in March.

‘View As’ tool

The company said hackers exploited the privacy feature known as “View As,” which lets users see how their own profiles would look to other people. Facebook said hackers were then able to use the security flaw to steal log-in keys, called access tokens, that could allow them to access people’s accounts.

“We’re a big fan of ‘View As’ here at EFF,” said Gennie Gebhart, associate director of research at the Electronic Frontier Foundation, the digital civil liberties group. “It’s one good way to make sure that your privacy settings are the way you want them to be. I can see what my friends see or friends of friends see.”

But by checking what a friend can see, the “View As” tool actually made one’s friend vulnerable to this hack.

A relatively new feature that allowed users to upload “Happy Birthday” videos was part of a combination of three bugs that contributed to the vulnerability, the social media firm said.

“It’s one of those weird things that daisy-chained together,” Gebhart added.

Facebook said it was shutting down “View As” until further notice.

The hackers “used the access tokens to query data, but there are no public reports of abusing the access to post updates to timelines or spread disinformation,” said Travis Smith, principal security researcher at Tripwire, a security firm. “This could be because they were only after data or it could be that their attack was cut off midstream by Facebook before they could reach their ultimate goal.”

Security advice

Affected Facebook users should take some additional steps, said Gary Davis, the chief consumer security evangelist at security firm McAfee, who wrote about the Facebook hack in a blog post.

Among them, users should change their log-in information. “Since this flaw logged users out, it’s vital you change up your log-in information,” he wrote. 

He also stressed users should update their Facebook apps as soon as possible.

“Facebook has already issued a fix to this vulnerability, so make sure you update immediately,” he wrote.

Italian Stocks Fall on Populist Government’s Spending Plans

Italy’s stock market fell sharply Friday after the new populist, euroskeptic government announced a sharp public spending increase that will push the budget deficit to 2.4 percent of gross domestic product next year, risking a collision with the European Union.

The benchmark FTSE MIB dropped 2.2 percent early Friday, hours after the government announced its first financial targets since taking office three months ago. 

Italy’s government partners, the 5-Star movement and the League, pressed for money to fulfill campaign pledges, namely a basic citizen’s income for job seekers and a flat tax. Finance Minister Giovanni Tria, who is politically unaligned, had wanted to keep the budget deficit capped at no more than 2 percent.

The leader of the 5-Star Movement, Luigi Di Maio, called the document approved early Friday by the Cabinet “a maneuver of the people.”

“The historic measures are a victory,” Di Maio said. “It is not the government that wins, but citizens. It is a maneuver that allows us to relaunch investments and growth.”

The 2019 deficit target is a significant jump from the 2018 target of 1.6 percent, set by the former center-left government, but still remains within the 3-percent ceiling set by the EU. The European Union has been pressing Italy to address its deficit in a bid to reduce the country’s debt, the second largest in the EU after Greece. 

The spending targets contained in the document calls for spending of 27 billion euros, including blocking an increase in value-added tax, launching the 5-Star Movement’s basic income scheme, undoing pension reforms and introducing a flat tax.

 

To pay for the new spending, the government has pledged a tax amnesty, a spending review and possible changes to tax breaks.

 

The government must submit a draft budget to the EU by Oct. 15.

Kavanaugh Has Supporters, Opponents Among Women

Women demonstrated on Capitol Hill Thursday while the Senate Judiciary Committee listened to testimonies by Supreme Court nominee Brett Kavanaugh and the woman who accused him of a sexual assault 36 years ago. Many women came out in support of professor Christine Blasey Ford. But Kavanaugh has supporters among women, as well. The case reminds many of one in 1991, when attorney Anita Hill accused then-Supreme Court nominee Clarence Thomas of sexual harassment. VOA’s Zlatica Hoke reports.

World Digests Stormy UN General Assembly, Trump’s Tough Talk on Iran, China

As global leaders digest the fallout from a stormy United Nations General Assembly in New York this week, China has strongly denied accusations from U.S. President Donald Trump that Beijing is trying to interfere in the U.S. midterm elections in November. Meanwhile, the diplomatic tussle has intensified between the United States and other signatories over the future of the 2015 Iran nuclear deal, as the U.S. prepares to hit Tehran with fresh sanctions. Henry Ridgwell reports.

Before the Full Senate, Kavanaugh’s Fate Lies in Hands of a Few

President Donald Trump’s nomination of Brett Kavanaugh to the U.S. Supreme Court went before a Senate committee Thursday, with dramatic testimony over almost nine hours from Kavanaugh and from a woman who has accused him of sexually assaulting her when they were high school students in Maryland in 1982.

The Senate Judiciary Committee, which heard from Kavanaugh and his accuser, Christine Blasey Ford, was expected to vote Friday on his nomination.

If approved by the committee, the nomination would then go before the full Senate, where confirmation could hinge on a handful of key senators.

​Republicans

Jeff Flake. A frequent Trump critic who will retire from the Senate in January, Flake was complimentary toward Kavanaugh during his confirmation hearing earlier this month. On Thursday, Flake, who is a Judiciary Committee member and sat through the hearing, said he was still processing his position on the nominee.​

Susan Collins. A moderate who sometimes breaks from party ranks, Collins earlier said she wanted both Ford and Kavanaugh to testify under oath to the committee and told reporters that if Kavanaugh had lied about allegations of sexual misconduct, “that would be disqualifying.”

​Lisa Murkowski. An occasional party renegade, she has not said how she will vote. Murkowski met privately late Thursday with Collins, Flake and Democrat Joe Manchin. Earlier in the day she told Reuters: “I find Dr. Ford’s testimony to be credible.” 

Democrats

Heidi Heitkamp. Facing a re-election campaign in North Dakota, a heavily pro-Trump state, she had called for further investigation of Ford’s allegations. She said late Thursday she needs to “fully digest” the committee hearing. 

​Joe Manchin. Also up for re-election, in the pro-Trump state of West Virginia, he met with Republicans late Thursday.

Joe Donnelly. Donnelly is up for re-election in the red-leaning state of Indiana. He has said the allegations against Kavanaugh “merit further review.”

Doug Jones. The first Democratic senator elected from Alabama in more than 20 years, he must show he can be independent-minded to stay in office. The Kavanaugh vote could be a test.

Puerto Rico Struggling, Still Open for Tourists, Governor Says

Puerto Rico Gov. Ricardo Rossello flew to New York this week on a mission: convince potential tourists that the hurricane-ravaged island was ready for their return.

But Puerto Rico’s recovery from last year’s Hurricane Maria has been a “mixed bag,” Rossello told Reuters on Thursday, acknowledging that the bankrupt U.S. territory, while improving, was far from out of the woods.

Puerto Rico has received only a small fraction of the federal funding it needs to get back on its feet, Rossello said in a 75-minute interview, and getting access to the rest could take more than a decade.

$4 billion or less

His administration estimates that fixing Puerto Rico fully will require $139 billion, but the federal government has earmarked only about $60 billion to $65 billion for the recovery, he said. Of that, only about $3 billion to $4 billion has actually flowed into the island’s coffers. 

Obtaining the remainder could take 10 to 11 years, he said, adding that his team was lobbying Congress for more money.

Compounding the problem is Puerto Rico’s bankruptcy in U.S. federal court, where it is trying to restructure $120 billion of debt and pension obligations. There are also ongoing spending disputes between the government and a federally appointed fiscal oversight board.

In the year since Hurricane Maria, Rossello has at times been diplomatic regarding the federal government’s response, while at other times — especially lately — he’s been more critical. He has also been criticized for sticking with an estimated death toll of 64 early on, when  strong evidence suggested it could be higher. A government-commissioned study by researchers at George Washington University eventually pegged the toll at around 3,000.

When asked whether his administration’s messaging strategies have been tied to an effort to maintain good relations with President Donald Trump, Rossello said a “critical part” of the island’s recovery “is making sure the federal  government responds to our petitions.”

“So ,yes, I have opted for a path that involves dialog, that involves collaboration,” Rossello said, adding that he has not been afraid to be critical.

If Trump does not sign the island’s request to extend the federal  government’s 100 percent coverage of repair costs, “I’ll be the first one to fight it,” Rossello said, “and I’ll be the first to point out that action, or lack of action, is one of the main obstacles to our recovery.”

Rossello said Puerto Rico still has as many as 60,000 homes with temporary tarp roofs. It also has hundreds of thousands of informally constructed homes with many owners lacking title to their property.

Rebuilding will require that the current ranks of about 45,000 construction workers to grow to 130,000, according to Rossello, who recently signed an executive order increasing the minimum hourly construction wage to $15 despite opposition from the oversight board and the private sector.

Power shift

The island’s government is still considering initiatives that could make the its troubled electricity grid more resilient, Rossello said. Ultimately, the island hopes to generate 40 percent of its electricity from renewables and steer away from fossil fuels. The shift would require a new regulatory policy, approval by the bondholders, and, potentially, investment from outside companies or organizations.

“We have received 10 to 12 unsolicited proposals for generation,” he said, while acknowledging the government has yet to find a private operator for the power utility’s transmission and distribution operations.

But changes at the electric agency known as PREPA, which Rossello called one of the most troubled organizations in modern history, will be gradual. The governor said he was working with a search firm to identify outside board members for the utility, after nearly the entire board quit in an uproar over appointment of a new chief executive.

Limited electricity was a major problem for the island’s small-business sector, according to a Federal Reserve Bank of New York report on Thursday. A survey of more than 400 businesses with fewer than 500 employees found 77 percent suffered losses as a result of Hurricanes Irma and Maria.

Broader effort

Meanwhile, Rossello is trying not only to restore tourism, but to expand it in such a way that it incorporates hundreds of square miles of seaside and mountain communities that are largely unvisited. Puerto Rico’s tourism is small compared with that of other Caribbean locales and tends to be centered in San Juan.

The island’s visitor lodgings hit a 2017 high of 204,025 in July, but fell to just under 30,000 in October following the hurricanes, according to Puerto Rico Tourism Company data.

Persuading tourists to leave the capital, though, will require easier travel. “Puerto Rico should be a multiport destination,” he said, discussing plans to beef up airport capacity in the south and west of the island.

He emphasized the possibility of capitalizing on Puerto Rico’s near-constant spate of community festivals. “We have flower festivals, orange festivals, plantain festivals, coffee festivals, music festivals,” he said.

Rossello pointed to so-called chinchorreos as a possible draw, events in which Puerto Rican foodies move from one inexpensive eatery to the next.

“A bar crawl for food — that’s the best way to put it,” the governor said, “and the island is small, so you start in one place and you’re on a beachfront, and 15 minutes later you’re in the mountains.”

US Regulators Sue Tesla’s Musk for Fraud, Seek to Bar Him as Officer

U.S. securities regulators on Thursday accused Tesla Inc. Chief Executive Elon Musk of fraud and sought to ban him as an officer of a public company, saying he made a series of “false and misleading” tweets about potentially taking the electric car company private last month.

Musk, 47, is one of the highest-profile tech executives to be accused of fraud by the Securities and Exchange Commission.

Losing its public face and guiding force would be a big blow for money-losing Tesla, which has a market value of more than $50 billion, chiefly because of investors’ belief in Musk’s leadership.

Tesla shares tumbled 12 percent in after-hours trading. Company officials were not immediately available for comment.

The SEC’s lawsuit, filed in Manhattan federal court, came less than two months after Musk told his more than 22 million Twitter followers on Aug. 7 that he might take Tesla private at $420 per share, and that there was “funding secured.”

“Neither celebrity status nor reputation as a technological innovator provides an exemption from federal securities laws,” Stephanie Avakian, co-director of enforcement at the SEC, told a news conference announcing its charges against Musk.

Musk has long used Twitter to criticize short-sellers betting against his company, and already faced several investor lawsuits over the Aug. 7 tweets, which caused Tesla’s share price to gyrate.

According to the SEC, Musk “knew or was reckless in not knowing” that his tweets about taking Tesla private at $420 a share were false and misleading, given that he had never discussed such a transaction with any funding source.

The SEC said he also knew he had not satisfied other contingencies when he declared unequivocally that only a shareholder vote would be needed.

Thursday’s complaint also seeks to impose a civil fine and other remedies. The SEC does not have criminal enforcement power.

On Aug. 24, after news of the SEC probe had become known, Musk blogged that Tesla would remain public, citing investor resistance.

Trump Press Conference: From George Washington to Elton John

U.S. President Donald Trump strode up to the lectern and took stock of the world’s press in a five-star New York hotel.

“This is quite a gathering. Wow!” he crowed.

And so began 1 hour and 22 minutes with the world’s most powerful man, pumped by days of U.N. diplomacy and seething over Democratic opposition to his Supreme Court nominee, now fighting multiple allegations of inappropriate sexual behavior while a student.

Standing before a large row of American flags, the 45th president of the United States dealt with everything from China, Iran and the Kurds, to socialism, Justin Trudeau, women, the Supreme Court and Middle East peace.

Without notes and clearly relishing the occasion, he dished out compliments and made digs where he saw fit.

 

WATCH: Trump Accuses China of Meddling in US Elections at Press Conference

“You do a very good job,” he told a Fox reporter who asked about NAFTA.

“Say ‘thank you, Mr. Trump,’” he mocked when a New York Times journalist said the newspaper was thriving rather than failing, with circulation figures up under the Trump presidency.

From the Lotte New York Palace on Madison Avenue, a brisk seven-minute walk from his old penthouse home and real-estate company headquarters at Trump Tower, the 72-year-old president appeared ready to go on all night. 

Here is a sampling:

On Supreme Court pick Brett Kavanaugh:

“If we brought George Washington here,” said an exasperated Trump of America’s first president and founding father, “the Democrats would vote against him, just so you understand, and he may have had a bad past, who knows.”

On sexual assault:

“I’ve had a lot of false charges made against me. Really false charges!” he said as journalists pointed out that he had been the accused of inappropriate sexual behavior in the past. “So when you say ‘does it affect me in terms of my thinking with respect to Judge Kavanaugh?’ Absolutely. Because I’ve had it many times.”

On women:

“I’ve always said, women are smarter than men.”

On the Kurds:

“They’re great people, they’re great fighters, I like them a lot,” he said, later calling on a journalist as “Yes please, Mr. Kurd.”

On U.N. laughter:

“They weren’t laughing at me, they were laughing with me,” he insisted of the laughter that broke out in the U.N. General Assembly on Tuesday after Trump boasted that his administration had done more than any other in U.S. history.

On Xi Jinping:

“I will, tomorrow, make a call to him and say ‘Hey, how are you doing?’ Trump said with a smile after admitting that Xi “may not be a friend of mine anymore.

“They are doing studies on Donald Trump, they are trying to figure it all out,” he said in reference to apparent Chinese interest in an American president so different to his predecessors.

Ending on a high:

“Elton John said when you hit that last tune and it’s good, don’t go back,” he said, taking the last question and pondering on what happens when a performer doesn’t deliver a good encore after a rousing concert.

“They don’t hit it and … everyone leaves and they say ‘that wasn’t a very good concert, was it?’”

Trump: New Sanctions Will Force Iran Back to Nuclear Talks

U.S. President Donald Trump said “Iran has to come back and they have to talk” if it wants to avoid a new round of economic sanctions.

Speaking to reporters in New York Wednesday, the president defended his decision to withdraw from the 2015 six-nation agreement for Tehran to give up its nuclear program in exchange for the removal of crippling economic sanctions.

“Here’s the thing: they have rampant inflation,” Trump said. “They have rampant inflation, their money is worthless. Everything is going wrong.

“At some point I think they are going to want to come back and say can we do something. Very simple, I just don’t want them to have nuclear weapons,” he added.

​Taking on Iran, nuclear deal

Taking the gavel of the United Nations Security Council earlier in the day, Trump used most of his remarks on the theme of nuclear nonproliferation to criticize Iran, labeling the government the “world’s leading sponsor of terrorism.”

He claimed that “Iran’s aggression only increased” after the 2015 nuclear deal, known as the Joint Comprehensive Plan of Agreement (JCPOA) was signed. The Trump administration withdrew from the deal earlier this year.

Trump repeated his frequent assertion that the JCPOA, which was signed by his predecessor, Barack Obama, was a “horrible, one-sided” deal benefiting Iran.

“They needed cash,” Trump said. “We gave it to them.”

Trump added that Iran, “a regime with this track record, must never be allowed to possess a nuclear weapon,” and warned that Washington will pursue even tougher sanctions against Tehran.

Speaking immediately after Trump, French President Emmanuel Macron said there needs to be a long-term strategy to manage the Iran issue and it cannot be done with just sanctions and containment.

Macron added that all countries share the same objective of preventing Iran from obtaining nuclear weapons.

​Rouhani reacts

Speaking at a news conference shortly after the Security Council session, Iranian President Hassan Rouhani said the meeting, which he did not attend, showed how isolated the United States is in its decision to withdraw from the nuclear deal.

“And today in the U.N. Security Council it became clear that America is alone,” Rouhani told reporters. “All the countries that spoke in the U.N. Security Council supported the JCPOA, either directly or indirectly, and referred to the American action as an incorrect action.”

Rouhani dismissed additional sanctions President Trump said would go into effect in early November, saying there was “not much left” for the U.S. to do. He urged nations to “trample upon” the sanctions and ignore them, because they are “illegal” and contradict the U.N. Security Council resolution that endorsed the nuclear deal as international law.

“The most important substance of the discussion is that nearly all other council members reiterated their commitment to preserving the Joint Comprehensive Program of Action, despite U.S. opposition, while several members (notably UK, France, Netherlands, Sweden) expressed their strong concern about Iran’s other destabilizing activities,” said Thomas Countryman, former assistant secretary of state for international security and nonproliferation and now chairman of the board for the Arms Control Association.

In addition to controlling the spread of nuclear weapons, Trump, in his remarks on the stated theme of the council’s meeting, said, “We must never forget the risk posed by biological and chemical weapons.”

The U.S. president noted action he has taken to respond to Syria’s use of chemical weapons against civilians during that country’s protracted civil war and said, “The Syrian regime’s butchery is enabled by Russia and Iran.”

But Trump expressed gratitude to Iran, Russia and Syria for slowing attacks in Idlib, saying, “Get the terrorists, but I hope the restraint continues.”

​US, North Korea

Trump told the Security Council that “many things are happening behind the scenes” between the United States and North Korea as they pursue denuclearization of the Korean Peninsula.

Trump predicted that very good news will be coming out of North Korea “in coming days and years.”

Earlier Wednesday, Trump said his administration is planning a second summit with Kim and details will be announced soon.

“I’ll be meeting with Chairman Kim,” Trump told reporters arriving at the United Nation’s General Assembly. He said a date and location would be announced soon.

U.S. Secretary of State Mike Pompeo said he is planning the summit and that it may take place after October. The State Department announced Pompeo will visit Pyongyang next month.

“We’re working diligently to make sure we get the conditions right so that we can accomplish as much as possible during the summit. But we hope it will be soon,” Pompeo told the program CBS This Morning. “It may happen in October, but more likely sometime after that.”

Pompeo’s remarks came one day after Trump touted his relationship with North Korea, telling the United Nations General Assembly it has helped ease tensions on the Korean Peninsula.

“The missiles and rockets are no longer flying in every direction, nuclear testing has stopped; some military facilities are already being dismantled,” Trump said.

Trump added that “much work remains to be done” with North Korea and said, “The sanctions will stay in place until denuclearization occurs.”

His comments about North Korea were in sharp contrast from those he delivered at the assembly last year, when he threatened to “totally destroy” the country and ridiculed North Korean leader Kim Jong Un as “Rocket Man” who was on a “suicide mission.”

South Korea’s president, Moon Jae-in, personally relayed a message to Trump on Monday, telling him that Kim wants to meet him again soon to make progress on denuclearization of the Korean Peninsula.

Wednesday’s Security Council meeting, with a U.S. president taking the gavel for only the third time (Trump’s predecessor Barack Obama did it twice), comes one day after Trump called on world leaders during his address before the U.N. General Assembly to “isolate Iran’s regime as long as its aggression continues.”

VOA United Nations correspondent Margaret Besheer, Wayne Lee and Richard Green​ contributed to this report.

US Congressional Panel Considers Ways to Respond to Rohingya Crisis

VOA’s Greta Van Susteren told a congressional panel Tuesday that Rohingya refugees are vulnerable to human trafficking, exploitation and violent extremism. Van Susteren and Stephen Pomper, U.S. program director for the International Crisis Group, gave their testimonies on Myanmar’s persecuted Muslim group to the House Foreign Affairs Committee in a hearing on “Genocide Against the Burmese Rohingya.” VOA’S Zlatica Hoke has more.

US, Japan Working Toward Free-trade Agreement

The United States and Japan have agreed to begin negotiations on a bilateral free-trade agreement, reducing the prospect that Washington might impose tariffs against another trading partner.

“We’ve agreed today to start trade negotiations between the United States and Japan,” U.S. President Donald Trump said at a summit with Japanese Prime Minister Shinzo Abe in New York on the sidelines of the U.N. General Assembly.

“This was something that for various reasons over the years Japan was unwilling to do and now they are willing to do. So we’re very happy about that, and I’m sure that we will come to a satisfactory conclusion, and if we don’t, ohhhhhh,” Trump added.

Fast-track authority

The White House released a statement after the meeting, stating the two countries would enter into talks after completing necessary domestic procedures for a bilateral trade agreement on goods and other key areas, including services.

U.S. Trade Representative Robert Lighthizer called it a “very important step” in expanding U.S.-Japan relations. He told reporters that the U.S. and Japan were aiming to approve a full free-trade agreement soon. Lighthizer said he would talk to Congress on Thursday about seeking authority for the president to negotiate the agreement, under the “fast track” trade authority law.

Lighthizer said he expected the negotiations to include the goal of reaching an “early harvest” on reducing tariffs and other trade barriers.

Tokyo’s reticence

Tokyo had been reluctant to commit to a bilateral free-trade pact and had hoped that Washington would consider returning to the Trans-Pacific Partnership, a broader regional trade agreement championed by the Obama administration that Trump pulled out of in January 2017.

Trump has complained about Japan’s $69 billion trade surplus with the U.S. and has been pressuring Abe to agree to a two-way agreement to address it, including during Abe’s visit to Trump’s Florida resort, Mar-a-Lago, in April.

Japanese officials have expressed concern Trump might pressure Tokyo to open up its politically sensitive farm market. They also are wary Trump might demand a reduction in Japanese auto imports or impose high tariffs on autos and auto parts, which would be detrimental to Japan’s export-reliant economy.

Trump is expressing confidence the two sides will reach an agreement.

“We’re going to have a really great relationship, better than ever before on trade,” he said. “It can only be better for the United States because it couldn’t get any worse because of what’s happened over the years.”

Uber to Pay $148M for Hiding Data Breach

The ride-hailing service Uber has agreed to pay $148 million to settle claims that it concealed a massive data breach that exposed personal information of drivers and customers. 

In November 2016, Uber learned that hackers had accessed personal data of about 600,000 Uber drivers, including their driver’s license numbers. Hackers also had stolen email addresses and cellphone numbers of 57 million riders worldwide. 

The claims, filed in every U.S. state and the District of Columbia, said rather than inform the drivers involved, Uber hid the breach for more than a year and paid ransom to ensure the data wouldn’t be misused.

“This is one of the most egregious cases we’ve ever seen in terms of notification; a yearlong delay is just inexcusable,” Illinois Attorney General Lisa Madigan told The Associated Press. 

Uber’s chief legal officer, Tony West, said the decision to come clean about the hack was made after major management changes at the company. 

“It embodies the principles by which we are running our business today: transparency, integrity and accountability,” West said. 

Each state will receive a part of the settlement based on how many drivers they have. Most states estimate each affected Uber driver will receive about $100. 

US Lawmakers Urged to Enact Personal Data Protections, But With Care

U.S. communications and social media titans are urging lawmakers to craft strong, uniform protections for Americans’ personal data without squashing innovation.

The Senate Commerce Committee heard testimony Wednesday from Apple, Amazon.com, Google, Twitter, and AT&T executives at a time when data breaches are commonplace, many Americans are mystified or unaware of how their personal data may be used or shared, and jurisdictions from the European Union to the state of California have taken action to safeguard consumers.

“Privacy means much more than having the right to not share your personal information. Privacy is about putting the user in control when it comes to that information. We believe that privacy is a fundamental human right, which should be supported by both social norms and the law,” said Apple’s vice president for software technology, Bud Tribble.

“In today’s data-driven world, it is more important than ever to maintain consumers’ trust and give them control over their personal information,” said AT&T’s senior vice president for global public policy, Leonard Cali.

The executives urged lawmakers to implement national standards that would preempt individual states from taking action on their own, as California has done.

“California is a single state, and if other states follow suit, we’ll be facing a patchwork of rules and fragmentation that will be just unworkable for consumers, as well as mobile companies and internet companies,” Cali said.

At the same time, senators were urged to craft legislation with care. Several witnesses described the European Union’s General Data Protection Regulation, implemented earlier this year, as overly burdensome.

“Meeting its [the GDPR’s] specific requirements for the handling, retention, and deletion of personal data required us to divert significant resources to administrative tasks and away from invention on behalf of customers,” Amazon.com Vice President Andrew DeVore said.

DeVore added, “We encourage Congress to ensure that additional overhead and administrative demands any legislation might require, actually produce commensurate consumer privacy benefits.”

Current proposal

Congress already has legislation to consider. Earlier this year, Minnesota Democratic Senator Amy Klobuchar and Louisiana Republican John Kennedy introduced a bill that would require companies to write terms of service agreements in plain language and allow consumers to review data collected about them and find out if and how it has been shared. Other proposals are likely to be forthcoming.

“The question is no longer whether we need a federal law to protect consumers’ privacy,” said the committee’s chairman, Republican Senator John Thune of South Dakota. “The question is what shape that law should take.”

Privacy questions

Several senators readily acknowledged that they did not grow up in the digital age.

“This thing sometimes mystifies me,” Montana Democrat Jon Tester said, holding up his smartphone.  Tester added that he was perplexed to see that, after searching for new tires for his truck, online advertisements for tires appeared on Web pages he subsequently visited.

“How the hell did they get that information?” he asked.

Google Chief Privacy Officer Keith Enright responded the search engine allows Web pages to earn revenue “by placing advertisements that may be targeted to a user’s interests.” But, he stressed, “No personal information is passing from Google to that third party — we neither sell it nor share it.”