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

Report: Ford CEO Warns Tariffs Cut $1 Billion in Profit

Ford chief Jim Hackett on Wednesday ramped up his warnings about the tariffs imposed by President Donald Trump, saying his company was seeing profits slashed by $1 billion.

Hackett said the global automaker could face more damage if the trade confrontations were not resolved quickly.

“The metals tariffs took about $1 billion in profit from us,” Hackett said in an interview on Bloomberg Television. “If it goes on longer, there will be more damage.”

Trump in June imposed steep tariffs on steel and aluminum and has hit $250 billion in Chinese products with tariffs, prompting retaliation from US trading partners and raising costs for many industries.

The company earlier this year estimated materials costs would be $1.5 billion over 2017, which had already seen a jump. 

And in the July earnings report Ford said it lost $500 million in China in the latest quarter due in part to the tariffs.

General Motors likewise warned the current trade wars should cost it $1 billion this year, mainly due to rising input costs.

Ford recently announced it was scrapping plans to import the compact Focus model from Chinese plants into the US market due to the tariffs.

Joseph Hinrichs, Ford’s executive vice president for global operations, said this week the company was speeding up plans to build some models in China since it was becoming less attractive to export amid the trade tensions.

He also said he did not see any easy resolution to the trade dispute between the United States and China. 

Somalia to Get First Direct World Bank Grants in Decades

Somalia’s finance minister says World Bank grants to the government are a sign the country has “trustable leadership” again after decades of chaos and corruption.

The World Bank said Tuesday it will provide $80 million in grants to Somalia’s federal government, the bank’s first direct grants to a Somali central authority in 27 years.

In an interview with VOA’s Somali service, Finance Minister Abdirahman Duale Beileh said the grants are “proof of Somalia’s merit.”

Beileh said $60 million will be used to increase the capacity of Somalia’s financial institutions, and $20 million will go toward education and energy projects to build the country’s resilience.

He said the grants show that international financial agencies have faith the government is capable of fighting against corruption.

“The work we have done and the trustworthiness we have earned brought us here,” he said. 

The World Bank cut ties with Somalia in 1991, following the collapse of the Mohamed Siad Barre government and the start of a long civil war.

Beileh said that in recent years, Somalia’s government has made tangible improvement in management of the economy and its institutions.

However, the latest global index of Transparency International put Somalia as the world’s most corrupt country.

Somali President Mohamed Abdullahi Mohammed, also known as Farmajo, took power last year in an election by parliament that observers said was characterized by bribes and vote-buying.

Beileh acknowledged the government’s fight against corruption is “far from over.”

“There is a perception that Somalia cannot be trusted because of its corruption history. Most of that is not perception,” he said.

He added: “We are proud that we made progress to at least a transparent level that both the World Bank and the IMF can notice.”

Fed Lifts Rates for Third Time in ’18; One More Expected

The Federal Reserve on Wednesday raised a key interest rate for the third time this year in response to a strong U.S. economy and signaled that it expected to maintain a pace of gradual rate hikes.

The Fed lifted its short-term rate — a benchmark for many consumer and business loans — by a quarter-point to a range of 2 percent to 2.25 percent. It was the eighth hike since late 2015.

The central bank stuck with its previous forecast for a fourth rate increase before year’s end and for three more hikes in 2019.

The Fed dropped phrasing it had used for years that characterized its rate policy as “accommodative” by favoring low rates. In dropping that language, the central bank may be signaling its resolve to keep raising rates.

Many analysts think the economy could weaken next year, in part from the effects of the trade conflicts President Donald Trump has pursued with China, Canada, Europe and other trading partners. The tariffs and countertariffs that have been imposed on imports and exports are having the effect of raising prices for some goods and supplies and potentially slowing growth.

Compounding the effects of the tariffs, other factors could slow growth next year. The benefits of tax cuts that took effect this year, along with increased government spending, for example, are widely expected to fade.

Still, some analysts hold to a more optimistic scenario. They think momentum already built up from the government’s economic stimulus will keep strengthening the job market and lowering unemployment — at 3.9 percent, already near a 50-year low. A tight employment market, in this scenario, will accelerate wages and inflation and prod the Fed to keep tightening credit to ensure that the economy doesn’t overheat.

Full-year growth

The U.S. economy, as measured by the gross domestic product, is expected to grow 3 percent for 2018 as a whole. That would mark the strongest full-year gain in 13 years. For the first nine years of the economic expansion, annual GDP growth averaged only around 2.2 percent.

The robust job market has helped make consumers, the main drivers of growth, more confident than they’ve been in nearly 18 years. Business investment is up. Americans are spending freely on cars, clothes and restaurant meals.

All the good news has helped fuel a stock market rally. Household wealth is up, too. It reached a record in the April-June quarter, although the gain is concentrated largely among the most affluent.

Many economists worry, though, that Trump’s combative trade policies could slow the economy. Trump insists that the tariffs he is imposing on Chinese imports, for which Beijing has retaliated, are needed to force China to halt unfair trading practices. But concern is growing that China won’t change its practices, the higher tariffs on U.S. and Chinese goods will become permanent, and both economies — the world’s two largest — will suffer.

Fed Chairman Jerome Powell has so far been circumspect in reflecting on Trump’s trade war. Powell has suggested that while higher tariffs are generally harmful, they could serve a healthy purpose if they eventually force Beijing to liberalize its trade practices.

World Economy Remains on Shaky Ground

The U.N. Conference on Trade and Development warns the world economy remains fragile, one decade after the collapse of the U.S. financial titan Lehman Brothers triggered a global economic crisis.

In its report Trade and Development Report 2018: Power, Platforms and the Free Trade Delusion, UNCTAD says the world economy once again is under stress. It views trade wars and escalating tariffs as symptoms of a growing economic malaise. It warns the world economy is walking a tightrope between debt-fueled growth and financial instability.

Lead author of the report Richard Kozul-Wright says many of the underlying problems that caused the 2008 financial crisis have not been addressed. He says footloose capital, precarious jobs, persistent inequality and rising debt remain problematic.

“We see growing asset bubbles and emerging crises everywhere,” he said. “Profits have been on an all-time high and real investment in the economy has not picked up. What we know from history is that debt-fueled booms always end badly. We do not know how. We do not know when, but if history is any guide the excessive reliance on debt in the current global economy will not end well for many economies.”

Kozul-Wright says trade wars, in many ways, are a reflection of lack of trust across the political system. He blames much of the tensions and problems seen in the global trading system on hyper globalization, which has not resulted in a win-win world.

The report finds global trade continues to be dominated by big firms. It says more than 50 percent of world trade is run through the top one percent of each country’s exporting firms.

 

 

Senate Panel Opens Hearing on Crafting US Privacy Law

The Trump administration is hoping Congress can come up with a new set of national rules governing how companies can use consumers’ data that finds a balance between “privacy and prosperity.”

But it will be tricky to reconcile the concerns of privacy advocates who want people to have more control over the usage of their personal data — where they’ve been, what they view, who their friends are —and the powerful companies that mine it for profit.

Senior executives from AT&T, Amazon, Apple, Google, Twitter and Charter Communications are scheduled to testify at the hearing, amid increasing anxiety over safeguarding consumers’ data online and recent scandals that have stoked outrage among users and politicians.

Sen. John Thune, a South Dakota Republican who heads the Senate Commerce Committee, opened Wednesday’s hearing by saying there’s a strong desire by both Republicans and Democrats for a new data privacy law.

But the approach being pondered by policymakers and pushed by the internet industry leans toward a relatively light government touch. That’s in contrast to stricter EU rules that took effect in May.

An early move in President Donald Trump’s tenure set the tone on data privacy. He signed a bill into law in April 2017 that allows internet providers to sell information about their customers’ browsing habits. The legislation scrapped Obama-era online privacy rules aimed at giving consumers more control over how broadband companies like AT&T, Comcast and Verizon share that information.

Allie Bohm, policy counsel at the consumer group Public Knowledge, says examples abound of companies not only using the data to market products but also to profile consumers and restrict who sees their offerings: African Americans not getting access to ads for housing, minorities and older people excluded from seeing job postings.

The companies “aren’t going to tell that story” to the Senate panel, she said. “These companies make their money off consumer data.”

What is needed, privacy advocates maintain, is legislation to govern the entire “life cycle” of consumers’ data: how it’s collected, used, kept, shared and sold.

Meanwhile, regulators elsewhere have started to act.

The 28-nation European Union put in strict new rules this spring that require companies to justify why they’re collecting and using personal data gleaned from phones, apps and visited websites. Companies also must give EU users the ability to access and delete data, and to object to data use under one of the claimed reasons.

A similar law in California will compel companies to tell customers upon request what personal data they’ve collected, why it was collected and what types of third parties have received it. Companies will be able to offer discounts to customers who allow their data to be sold and to charge those who opt out a reasonable amount, based on how much the company makes selling the information.

Andrew DeVore, Amazon’s vice president and associate general counsel, told the Senate panel Wednesday that it should consider the “possible unintended consequences” of California’s approach. For instance, he says the state law defines personal information too broadly such that it could include all data.

The California law doesn’t take effect until 2020 and applies only to California consumers, but it could have fallout effects on other states. And it’s strong enough to have rattled Big Tech, which is seeking a federal data-privacy law that would be more lenient toward the industry.

“A national privacy framework should be consistent throughout all states, pre-empting state consumer-privacy and data security laws,” the Internet Association said in a recent statement . The group represents about 40 big internet and tech companies, spanning Airbnb and Amazon to Zillow. “A strong national baseline creates clear rules for companies.”

The Trump White House said this summer that the administration is working on it, meeting with companies and other interested parties. Thune’s pronouncement and one from a White House official stress that a balance should be struck in any new legislation — between government supervision and technological advancement.

The goal is a policy “that is the appropriate balance between privacy and prosperity,” White House spokeswoman Lindsay Walters said. “We look forward to working with Congress on a legislative solution.”

 

Texas Candidates Fight it Out for Millennial Vote

Forty-five-year-old Democratic Congressman Beto O’Rourke is challenging 47-year-old Republican incumbent Ted Cruz for a Senate seat in the historically Republican state of Texas. VOA’s Esha Sarai spoke with the candidates and young voters and volunteers energized by their campaigns.

Texans Cruz, O’Rourke Court Millennials in Tight Senate Race

The challenger skateboards in fast-food parking lots and wears his shirttails over scruffy jeans. He sang in a punk band. Some of his campaign events feature bounce houses.

The incumbent usually wears a dark blue suit with a red tie. The word “liberty” is liberally sprinkled in his campaign materials.

Both candidates are courting young voters in the red state of Texas that, as support for Democrats strengthens, could be turning purple.

But will Democrat Beto O’Rourke, 45, a three-term U.S. congressman, defeat Republican Ted Cruz, 47, the junior U.S. senator, in November?

Millennials only recently elbowed baby boomers to become the largest generation of voters in the United States, according to a Fact Tank study by the Pew Research Center published in June.

O’Rourke has energized a young generation of Democratic voters in the once staunchly Republican state by focusing on topics and behaviors relevant to them. The race has tightened in recent weeks after Cruz, who ran for president in 2016, enjoyed an early lead. 

Last week, a Quinnipiac University poll found Cruz leading O’Rourke by 9 percentage points among likely voters. An online poll by Reuters- Ipsos showed O’Rourke 2 points ahead. Last Friday in Dallas, Cruz and O’Rourke engaged in the first of three planned debates. Political analysts are calling the race a toss-up.

O’Rourke, a former businessman, is a different candidate in many ways. His campaign does not accept money from political action committees (PACs) and has raised $26 million in individual donations between Jan. 1 and June 31 — $8 million more than his opponent. 

“Not taking PAC, not taking corporate money, is really appealing to people,” Houston campaign volunteer Clara Goodwin, 25, told VOA. “A lot of people my age feel like we don’t have much of a voice, and that’s partly because politicians are listening to corporate interests more than us.”

That admission was a revelation for O’Rourke.

“I was surprised to hear time after time from young people that the fact that we don’t take political action committee money — no corporate help, no special interest contributions — is the reason that they are part of this campaign,” O’Rourke told VOA at the opening of his Houston campaign headquarters, a festive event packed with 20-something volunteers eating barbecue and registering voters.

Put simply, PACs are financial contributions pooled from donors that are used to elect and defeat candidates or legislation. Since the Supreme Court’s 2010 decision in Citizens United v. Federal Elections Commission, corporations, which are banned from directly donating to campaigns, are allowed to contribute through PACs. 

‘Showing up’ for young people

O’Rourke said the fact that he is “showing up where young people are” is more important than how he raises campaign funds.

“I would never ask any young person to vote for anyone if no one has shown up to ask what’s on their mind, what’s important to them, to hear about the most important issues in the country from their perspective,” he said, noting that his campaign has done many events at universities across the state.

Cruz, too, has attracted young supporters who are showing up to hear his message. 

Karl Schmidt, a 19-year-old Cruz volunteer, said he has supported the incumbent senator since he spoke at his high school in 2014.

“The first time I met him, he came to my high school, and he just felt like a really real guy, you know?” Schmidt told VOA, after controlling a post-rally crowd of Houston supporters waiting to get their photo taken with Cruz. 

Schmidt said he cares most about tax reform and health care, specifically opposing the Obama-era Affordable Care Act, because those issues have affected his family the most. He said Cruz’s plan to address tax policy and health care most closely aligns with his views.

Deep divide on taxes, health care, economy

Cruz supported the Republicans’ trillion dollar tax cut, and drafted a bill that would make those tax cuts permanent. He championed Republican efforts to repeal the ACA, popularly known as Obamacare, and has called for “meaningful reforms” of the U.S. health care system, including expanding health care savings accounts and permitting the sale of health insurance across state lines.

O’Rourke opposed the tax cut, and has focused on creating jobs through increased spending on infrastructure and apprenticeship programs, government deregulation, and expansion of rural broadband service. He favors strengthening the ACA, extending Medicaid to more low-income Texans and eventually creating a universal health care program throughout the U.S.

Despite Cruz’s reputation as a divisive politician who is unpopular on Capitol Hill, some younger voters say they like his proposal to increase economic growth through a bill he introduced in 2015 called the American Energy Renaissance Act. The legislation seeks to remove federal restrictions on energy production and create jobs.

Cruz’s young supporters also applaud his calls for spending cuts in Washington, which they say take precedence over social issues.

Max Louman, 21, a student at New York University, said he’s “more of an economic voter” and would support Cruz in the midterm elections, even though he doesn’t agree with all of Cruz’s positions on social issues.

“I believe the Republican policies for economics help encourage growth more,” Louman said, after attending a Cruz town hall meeting.

According to Pew Research, the top voting issues for all voters in 2016 were the economy, terrorism, foreign policy and health care, in that order.

Like Louman, Cruz said he believes his and Republican economic policies are ultimately better for young people.

“The agenda of the left wing, the agenda of socialists, is absolutely devastating to young people,” Cruz told VOA.

O’Rourke cited a number of issues that he said young people have told him are important to them.

“Making sure that the internet is open and works for everyone, regardless of your ability to pay,” he said, referring to net neutrality. “Making sure that we have universal health care. Or making sure that we deliver on our promise for leading the conversation on immigration. Or ending gun violence in our schools and in our communities.”

Power of the vote

Regardless of political party, many young people advocate open discussion and voting. Just 51 percent of millennials — born between 1981 and 1996 — voted in the 2016 elections, compared to 61 percent of the general electorate, according to U.S. Census Bureau data.

Houston resident Elvonte Patton, 29, created “The Young and the Politics,” a nonpartisan political organization that encourages young people to register to vote. 

“Go exercise your right to vote. That’s all that matters to me,” he told VOA at a local O’Rourke rally where his organization registered new voters. In March, Patton ran for a seat on the Harris County Board of Education and was defeated in the Democratic primary. 

Cruz supporter Schmidt said his friends were too young to vote in the most recent elections in 2016. This time, he said, he’s “definitely going to make sure all my friends go out and vote.”

 “I think the young people are going to predict this race,” said Patton, who said he is confident that voter turnout, particularly among young people, will grow in the 2018 midterm elections. “Honestly, whoever the young people go and vote for, that’s who will win this race,” he said. 

Senate Republicans Hire Arizona Prosecutor to Question Kavanaugh Accuser

Senate Republicans have hired an Arizona prosecutor to question a woman accusing Supreme Court nominee Brett Kavanaugh of sexual assault.

A press release from committee chairman Chuck Grassley’s office described woman attorney Rachel Mitchell as “a career prosecutor with decades of experience prosecuting sex crimes.” Mitchell worked in the Maricopa County Attorney’s office in Phoenix as the chief of the Special Victims Division, which covers sex crimes and family violence.

Republicans have been keen to hire a woman to question Christine Blasey Ford, who has accused Kavanaugh sexually assaulting her when both were teenagers, to avoid the appearance of bias by the all-male group of Republicans on the Senate panel.

The U.S. Senate’s partisan brawl over President Donald Trump’s embattled Supreme Court nominee intensified Tuesday, fewer than 48 hours before Judge Kavanaugh and Ford were expected to give contradictory testimony on the alleged incident. 

Republican Majority Leader Mitch McConnell of Kentucky accused Democrats of rushing to convict Kavanaugh and “destroy his good name” with unproven allegations, abandoning any presumption of innocence — a bedrock principle of American jurisprudence.

“Justice matters. Evidence matters. Facts matter,” McConnell said. “This is America here. … Everyone deserves better than this, not just Judge Kavanaugh.”

Senate Democrats countered that, if Republicans wanted to learn the facts about the nominee’s past behavior, they would not have rejected calls for an FBI investigation of the allegations against him.

Democrats also accused Republicans of treating Ford dismissively at a time when victims of sexual crimes are speaking out across the nation. Ford accused Kavanaugh of sexually assaulting her at a high school party in the 1980s, a charge the nominee has repeatedly denied.

“Labeling this a partisan smear job demeans not only the senators in my caucus,” Minority Leader Chuck Schumer of New York said. “It demeans many, many women who have come forward … to share their stories.”

Schumer added, “Leader McConnell should rethink what he said in the heat of the moment and apologize to Dr. Ford.”

The sharp exchanges on the Senate floor came one day after Kavanaugh appeared on U.S. cable television — an unprecedented move for a Supreme Court nominee — to refute all allegations of sexual misconduct.

“I’ve never sexually assaulted anyone. Not in high school. Not ever,” Kavanaugh told Fox News, adding that he has no intention of bowing out of the nomination.

In New York, President Trump accused Democrats of mounting “a con game” and heaped scorn on a second accusation leveled against Kavanaugh, that he exposed himself at a college party decades ago.

The new allegation by Deborah Ramirez, reported Sunday by The New Yorker magazine, prompted the Senate Judiciary Committee’s top Democrat, Dianne Feinstein of California, to call for a postponement of Thursday’s highly anticipated hearing where Kavanaugh and Ford are to testify.

Ramirez’s lawyer told NBC’s Today Show that she is willing to testify publically to Congress.

Republicans have rejected any further delays in the confirmation process. Instead, they scheduled a judiciary committee vote for Friday, which will be followed by consideration by the full Senate.

Kavanaugh, a judicial conservative and Trump’s second Supreme Court pick, was nominated to fill the vacancy created by Justice Anthony Kennedy’s retirement.

His confirmation by the Republican-controlled Senate had seemed all but assured until allegations of sexual misconduct surfaced nearly two weeks ago.

Shape-Changing Materials to Enter Everyday Life

Many materials change shape when exposed to heat, electricity or some other kind of energy. That change is usually random, but scientists are now learning how to direct that energy to turn the material into a predetermined shape. VOA’s George Putic visited a lab at Carnegie Mellon University in Pittsburgh that experiments with morphing materials.

Brazil’s Jobs Crisis Lingers, Posing Challenge for Next President

After losing his job with a foreign food company in March, Alexander Costa surveyed Brazil’s anemic labor market and decided to start selling cheap lunches by the beach in Rio de Janeiro to try and provide for his young family.

“I could have stayed home, looking for work, sending out resumes, with few jobs and things very hard,” Costa said. “But I didn’t stand still. I decided to create something different … to reinvent myself.”

Many other Brazilians have also had to reinvent themselves in recent years, as Latin America’s largest economy struggles to overcome a jobs crisis more than a year after officially exiting recession.

Nearly 13 million people – or more than the entire population of Greece – are out of a job, with the unemployment rate hovering between 12 percent to 14 percent since 2016. As a result, unemployment is among voters’ top concerns ahead of next month’s election.

The desperate search for work amid a string of political graft scandals and rising violence has soured the mood, polarizing debate and distracting from the country’s underlying fiscal challenges.

But only by lowering the unemployment rate will Brazil achieve the rise in household spending it needs to maintain sustained growth, said Marcos Casarin, the head of Latin America macro research at Oxford Economics.

“The only way to have a prolonged recovery in economic activity is if unemployment starts to fall in a substantial way,” he said.

However, it could take several years to get the rate below 10 percent, he said, adding: “I’m not very optimistic.”

Divisive Figures

With no presidential candidate likely to win a majority in the first-round vote on Oct. 7, it looks increasingly likely voters will face a choice between two candidates in the Oct. 28 run-off: far-right Jair Bolsonaro and leftist Fernando Haddad of the Workers Party.

Both are divisive figures — rejected by nearly half the electorate — making it likely that either one will face an uphill battle to pass ambitious economic reforms that foreign investors have long called for.

Bolsonaro has vowed to erase Brazil’s primary budget deficit by 2020 through controversial privatizations and spending cuts.

Haddad has proposed broadening the central bank’s mandate to include unemployment, while boosting government-led investments, revoking a spending ceiling and scuttling privatizations.

Both Bolsonaro and Haddad are pitching their proposals as ways to tackle the unemployment crisis, which has pushed many into the informal sector, sapping tax income and leaving workers without paid holidays, salary raises and other benefits.

Outgoing President Michel Temer last year passed an overhaul of the country’s labor laws, which was intended to make the job market more flexible and which the government said would help create new jobs, an effect that as yet has failed to materialize.

Bolsonaro supports Temer’s labor reform and wants to further cut work regulations to boost jobs. Haddad has suggested putting the labor reform, which was opposed by unions, to a referendum, while also advocating a short-term stimulus program.

Costa, however, was unwilling to wait and see what Brazil’s next president comes up with.

His meals-on-wheels business started slowly, selling 13-reais ($3) lunches from the back of his car in Rio’s wealthy Barra da Tijuca neighborhood. But business took off when he joined forces with his friend, Stefan Weiss, whose white BMW provides a ritzier shop window from which they now sell roughly 200 hot meals each day.

“At the moment, Brazil faces a big problem in relation to the economy and the lack of jobs,” said Weiss, who works on an offshore oil platform but sells meals on days off to earn extra cash. “The people who lost their jobs are trying to find new ways to establish themselves in the market.”

Into the Fold? What’s Next for Instagram as Founders Leave

When Kevin Systrom and Mike Krieger sold Instagram to Facebook in 2012, the photo-sharing startup’s fiercely loyal fans worried about what would happen to their beloved app under the social media giant’s wings. 

None of their worst fears materialized. But now that its founders have announced they are leaving in a swirl of well wishes and vague explanations, some of the same worries are bubbling up again — and then some. Will Instagram disappear? Get cluttered with ads and status updates? Suck up personal data for advertising the way its parent does? Lose its cool? 

Worst of all: Will it just become another Facebook?

“It”s probably a bigger challenge (for Facebook) than most people realize,” said Omar Akhtar, an analyst at the technology research firm Altimeter. “Instagram is the only platform that is growing. And a lot of people didn’t necessarily make the connection between Instagram and Facebook.”

Instagram had just 31 million users when Facebook snapped it up for $1 billion; now it has a billion. It had no ads back then; it now features both display and video ads, although they’re still restrained compared to Facebook. But that could quickly change. Facebook’s growth has started to slow, and Wall Street has been pushing the company to find new ways to increase revenue.

Instagram has been a primary focus of those efforts.

Facebook has been elevating Instagram’s profile in its financial discussions. In July, it unveiled a new metric for analysts, touting that 2.5 billion people use at least one of its apps — Facebook, Instagram, WhatsApp or Messenger — each month. While not particularly revealing, the measurement underscores the growing importance Facebook places on those secondary apps. 

Facebook doesn’t disclose how much money Instagram pulls in, though Wedbush analyst Michael Pachter estimates it’ll be around $6 billion this year, or just over 10 percent of Facebook’s expected overall revenue of about $55.7 billion. 

Facebook CEO Mark Zuckerberg has long seen Instagram’s promise. At the time, it was by far Facebook’s largest acquisition (although it was dwarfed by the $19 billion Zuckerberg paid for WhatsApp two years later). And it was the first startup allowed to operate mostly independently. 

That has paid off big time. Not only did Instagram reach 1 billion users faster than its parent company, it also succeeded in cloning a popular Snapchat feature, dealing a serious blow to that social network upstart and succeeding where Facebook’s own attempts had repeatedly failed. Instagram also pioneered a long-form video feature to challenge YouTube, another big Facebook rival.

Recently, Instagram has been on a roll. In June, Systrom traveled to New York to mark the opening of its new office there, complete with a gelato bar and plans to hire hundreds of engineers. Only a month earlier, Instagram had moved into sparkly new offices in San Francisco. In a July earnings call, Zuckerberg touted Instagram’s success as a function of its integration with Facebook, claiming that it used parent-company infrastructure to grow “more than twice as quickly as it would have on its own.”

But Instagram has also been a case study in how to run a subsidiary independently — especially when its parent is mired in user-privacy problems and concerns about election interference, fake news and misinformation. And especially when its parent has long stopped being cool, what with everyone and their grandma now on it.

Instagram’s simple design — just a collection of photos and videos of sunsets, faraway vacations, intimate breakfasts and baby close-ups — has allowed it to remain a favorite long after it became part of Facebook. If people go to Twitter to bicker over current events and to Facebook to see what old classmates are up to, Instagram is where they go to relax, scroll and feast their eyes.

So, will that change?

“I don’t think Zuckerberg is dumb,” Akhtar said. “He knows that a large part of Instagram’s popularity is that it’s separate from Facebook.”

As such, he thinks Facebook would be wise to reassure users that what they love about Instagram isn’t going to change — that they are not going to be forced to integrate with Facebook. “That’ll go a long way,” he said. 

Internally, the challenge is a bit more complicated. While Systrom and Krieger didn’t say why they’re leaving, their decision echoes the recent departure of WhatsApp’s co-founder and CEO Jan Koum, who resigned in April. Koum had signaled years earlier that he would take a stand if Facebook’s push to increase profits risked compromising core elements of the WhatsApp messaging service, such as its dedication to user privacy. When Facebook started pushing harder for more revenue and more integration with WhatsApp, Koum pulled the ripcord.

One sign that additional integration may be in Instagram’s future: Zuckerberg in May sent longtime Facebook executive Adam Mosseri to run Instagram’s product operation. Mosseri replaced longtime Instagrammer Kevin Weil, who was shuffled back to the Facebook mothership. 

That likely didn’t sit well with Instagram’s founders, Akhtar and other analysts said. Now that they’re gone as well, Mosseri is the most obvious candidate to head Instagram. 

“Kevin Systrom loyalists are probably going to leave,” Akhtar said. 

Which means Facebook may soon have a new challenge on its hands: Figuring out how to keep Instagram growing if it loses the coolness factor that has bolstered it for so long.

Automakers Seek Flexibility at Hearing on Mileage Standards

Automakers sought flexibility while environmental groups blasted the Trump administration’s proposal to roll back fuel economy standards at a public hearing on the plan in the industry’s backyard.

At the hearing Tuesday in Dearborn, Michigan, home to Ford Motor Co. and just miles from the General Motors and Fiat Chrysler home offices, industry officials repeated two themes: They’ll keep working to make cars and trucks more efficient, but they may not be able to meet existing standards because people are buying more trucks and SUVs.

Environmental groups, though, urged the government to scrap its plan to roll back the standards and instead keep in place the ones that were reaffirmed in the waning days of the Obama administration. They said the technology to meet the standards at low costs is available, and they accused President Donald Trump’s Department of Transportation of twisting numbers to justify the rollback.

Nearly 150 people were scheduled to testify at the hearing, the second on the preferred option of the National Highway Traffic Safety Administration and Environmental Protection Agency to freeze the standards at 2020 levels.

In 2016, for the first time since the latest standards started, the auto industry couldn’t meet them without using emissions credits earned in prior years, said Steve Bartoli, vice president of fuel economy compliance for Fiat Chrysler Automobiles. The reason is because with relatively low gas prices, people are buying more trucks and SUVs rather than fuel-efficient cars, he said.

Last year, cars made up only 36 percent of the U.S. new-vehicle fleet, something that wasn’t expected when the current requirements were put in place six years ago, he said. “The forecasts referenced by the agencies at that time showed cars increasing from 50 percent to 57 percent of annual vehicle sales by 2025,” Bartoli said.

The Obama EPA proposed raising the standard to 36 miles per gallon (15 kilometers per liter) by 2025, about 10 miles per gallon (4 kilometers per liter) higher than the current requirement. The goal was to reduce car emissions and save money at the pump.

Trump administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumers’ hands more quickly.

Industry response

Bartoli and other industry representatives said they’ll keep making vehicles more efficient, but need the more flexible standards because of the market shift. Industry officials said they don’t support a full freeze on the standards.

“FCA is willing to work with all parties on a data-driven final rule that results in market-facing fuel economy improvements that also support greater penetration of alternative powertrains” such as electric vehicles, Bartoli said.

Rhett Ricart, a Columbus, Ohio, car dealer who is regulatory chairman for the National Automobile Dealers Association, said trying to force people into efficient cars is like trying to make a 3-year-old eat vegetables. “If he doesn’t like vegetables, you can’t stuff his mouth full of them,” Ricart said.

Environmental response

But environmental groups said the Obama standards should remain in place, arguing that the technology is advancing so fast that automakers can meet the standards without adding huge costs for consumers. They said by the EPA’s own calculations, 60,000 jobs will be lost by 2030 developing and building fuel efficient technologies. They urged NHTSA and the EPA, which are holding the hearings, to scrap their preferred option of a freeze.

John German, senior fellow with the International Council on Clean Transportation, a group that pushes for stronger standards, said outside the hearing that the Trump administration’s cost estimates per car for the Obama standards are inflated to justify the freeze. Consumer savings at the pump are roughly three times the cost, which the ICCT calculates to be $551 per vehicle.

He also said the industry has developed lower-cost improvements to internal combustion powertrains faster than expected, so auto companies can meet standards without selling a lot of electric vehicles.

Environmental groups also said the Obama standards vary with vehicle size and give the industry flexibility to meet them. “The standards are working as designed,” German said.

California response

At Monday’s hearing in Fresno, California, state officials said the proposed rollback would damage people’s health and exacerbate climate change, and they demanded the Trump administration back off.

Looming over the administration’s proposal is the possibility that California, which has become a key leader on climate change as Trump has moved to dismantle Obama-era environmental rules, could set its own fuel standard that could roil the auto industry. That’s a change the federal government is trying to block.

“California will take whatever actions are needed to protect our people and follow the law,” Mary Nichols, chairwoman of the California Air Resources Board, testified at the hearing.

Automakers want one standard for the whole country, so they don’t have to design different vehicles for California and the states that follow its requirements.

Another hearing is planned Wednesday in Pittsburgh.

US Military Official: No Plans for Venezuela Military Intervention

U.S. President Donald Trump’s nominee to lead U.S. military operations in Latin America said on Tuesday there is no planning under way for any kind of military option to address the economic and political crisis in Venezuela.

Navy Vice Admiral Craig Faller, the nominee to lead the U.S. Southern Command, was asked at his Senate confirmation hearing whether there had been suggestions from Trump or other top U.S. officials that preparations should be made for “surgical or other” military action.

“We are not doing anything other than normal prudent planning that a combatant command would do to prepare for a range of contingencies,” Faller said in a response to a question from Democratic Senator Claire McCaskill.

Venezuela accused the United States this month of seeking an intervention and supporting military conspiracies following a New York Times report that the Trump administration held secret meetings with rebellious military officers over the last year to discuss a plan to overthrow Venezuelan President Nicolas Maduro.

Faller also spoke during the hearing of the military’s plans to support Venezuela’s neighbors Colombia, Ecuador and Peru as they deal with migrants fleeing Venezuela due to the country’s economic crisis, including plans to send a U.S. Navy hospital ship, the Comfort.

US Senate Brawl Over Kavanaugh Intensifies

The U.S. Senate’s partisan brawl over President Donald Trump’s embattled Supreme Court nominee intensified Tuesday, fewer than 48 hours before Judge Brett Kavanaugh and one of his accusers were expected to give contradictory testimony on whether the nominee committed sexual assault as a teenager.

 

Republican Majority Leader Mitch McConnell of Kentucky accused Democrats of rushing to convict Kavanaugh and “destroy his good name” with unproven allegations, abandoning any presumption of innocence – a bedrock principle of American jurisprudence.

 

“Justice matters. Evidence matters. Facts matter,” McConnell said. “This is America here … Everyone deserves better than this, not just Judge Kavanaugh.”

 

Senate Democrats countered that, if Republicans wanted to learn the facts about the nominee’s past behavior, they would not have rejected calls for an FBI investigation of the allegations against him.

 

Democrats also accused Republicans of treating Christine Blasey Ford dismissively at a time when victims of sexual crimes are speaking out across the nation. Ford accused Kavanaugh of sexually assaulting her at a high school party in the 1980s, a charge the nominee has repeatedly denied.

​“Labeling this a partisan smear job demeans not only the senators in my caucus,” Minority Leader Chuck Schumer of New York said. “It demeans many, many women who have come forward … to share their stories.”

 

Schumer added, “Leader McConnell should rethink what he said in the heat of the moment and apologize to Dr. Ford.”

Standing firm

The sharp exchanges on the Senate floor came one day after Kavanaugh appeared on U.S. cable television – an unprecedented move for a Supreme Court nominee – to refute all allegations of sexual misconduct.

 

“I’ve never sexually assaulted anyone. Not in high school. Not ever,” Kavanaugh told Fox News, adding that he has no intention of bowing out of the nomination.

 

In New York, President Trump accused Democrats of mounting “a con game” and heaped scorn on a second accusation leveled against Kavanaugh, that he exposed himself at a college party decades ago.

The new allegation, reported Sunday by The New Yorker magazine, prompted the Senate Judiciary Committee’s top Democrat, Dianne Feinstein of California, to call for a postponement of Thursday’s highly-anticipated hearing where Kavanaugh and Ford are to testify.

 

Republicans have rejected any further delays in the confirmation process, which includes a committee vote followed by consideration by the full Senate.

 

Kavanaugh, a judicial conservative and Trump’s second Supreme Court pick, was nominated to fill the vacancy created by Justice Anthony Kennedy’s retirement.

 

His confirmation by the Republican-controlled Senate had seemed all but assured until allegations of sexual misconduct surfaced nearly two weeks ago.

US Consumer Confidence Hits 18-Year High; House Prices Slowing

U.S. consumer confidence surged to an 18-year high in September as households grew more upbeat about the labor market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China.

While other data on Tuesday showed a moderation in house price increases in July, the gains probably remain sufficient to boost household wealth and continue to support consumer spending, as well as making home purchasing a bit more affordable for first-time buyers.

“The consumer is always in the driver’s seat when it comes to stoking the fires that run the engines of economic growth, but the million dollar question is what is going to happen down the road when the trade tariffs start to bite?” said Chris Rupkey, chief economist at MUFG in New York.

The Conference Board said its consumer confidence index increased to a reading of 138.4 this month from an upwardly revised 134.7 in August. That was the best reading since September 2000 and the index is not too far from an all-time high of 144.7 reached that year.

Economists polled by Reuters had forecast the consumer index slipping to a reading of 132.0 this month from the previously reported 133.4 in August.

Consumers’ assessment of labor market conditions improved sharply even as the trade war between the United States and China escalated, which economists warned would lead to job losses and higher prices for consumers. 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.

For now, consumers appear to be shrugging off the trade tensions. Households were this month upbeat about business conditions over the next six months, with many planning purchases of household appliances, motor vehicles and houses.

Some economists believe a tightening labor market, which is starting to boost wage growth, and higher savings could provide a cushion for households against more expensive consumer goods imports from China.

“Moreover, consumers may choose to substitute purchases of goods affected by tariffs with other goods and firms may choose to absorb the higher costs,” saidRoiana Reid, an economist at Berenberg Capital Markets in New York.

Strong labor market

The Conference Board consumer survey’s so-called labor market differential, derived from data about respondents who think jobs are hard to get and those who think jobs are plentiful, rose to 32.5 in September, the highest level since January 2001, from 30.2 in August.

This measure, which closely correlates to the unemployment rate in the Labor Department’ employment report, is pointing to further declines in the jobless rate and labor market slack. The labor market is viewed as either at or near full employment, with the jobless rate at 3.9 percent.

The robust labor market, together with the strong economy and steadily rising inflation, have left economists confident that the Federal Reserve will raise interest rates on Wednesday for the third time this year.

The dollar was trading slightly weaker against a basket of currencies, while U.S. government bond yields rose. Stocks on Wall Street were little changed.

The consumer confidence report added to fairly upbeat data on consumer spending and manufacturing that have suggested solid economic growth in the third quarter. Gross domestic product increased at a 4.2 percent annualized rate in the second quarter. Growth estimates for the July-September quarter are above a 3.0 percent pace.

While the broader economy is powering ahead, the housing market is continuing to lag behind amid signs that higher mortgage rates and house prices are starting to hurt demand.

Separately, the S&P CoreLogic Case-Shiller composite home price index of 20 U.S. metropolitan areas rose 5.9 percent in July from a year ago after increasing 6.4 percent in June.

Prices in the 20 cities edged up 0.1 percent in July from June on a seasonally adjusted basis, the survey showed.

The moderation in house price inflation was also underscored by another report from the Federal Housing Finance Agency, which showed its home price index rising 0.2 percent in July after gaining 0.3 percent in June.

The FHFA’s index is calculated by using purchase prices of houses financed with mortgages sold to or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac.

“Consumers are delirious but not bidding up prices of homes as much as they had been,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “Increasing prices and mortgage rates are reducing affordability and sales and that is translating into slower price gains.”

Japan Preschools Use Tablets to Prep Tots for Digital Age

It’s drawing time at this suburban nursery school in Japan, but instead of crayons, tiny fingers are tapping on colors on iPad screens and taking selfies. Digital schooling has arrived in this nation long known for its zealous commitment to “three R’s” education.

Coby Preschool, in a small town northeast of Tokyo, is among nearly 400 kindergartens and nursery schools in Japan that are using smartphone software applications designed especially for preschoolers called KitS.

That’s only about 1 percent of this nation’s kindergartens and nursery schools. But it’s a start. Coby is helping lead a national initiative in “digital play.”

Parents everywhere worry their children might fall behind, and Japan is no exception.

The government has recently made strengthening technology education national policy even as it struggles to meet its goal of supplying one digital device — computer or tablet — for every three children.

Digital play

With KitS, developed by Tokyo-based startup SmartEducation, children color birds and flowers that appear to come alive as three-dimensional computer graphics. Children also draw various creatures that, when captured as computer images, swim or float around in virtual landscapes.

In a recent session, children got a triangle image on their iPads and were asked to draw on it with digital colors, store that image, and draw another one to create a two-screen story.

 

The usually shy children burst into an uproar, brainstorming happily about what the triangle might represent: a sandwich, a rice ball, a dolphin, a roof, a mountain.

The children were then encouraged to come to the front of the class and explain what they had drawn as the images were shown on a large screen.

“There is no right or wrong answer,” said Akihito Minabe, the preschool principal leading the session.

The point is to nurture creativity, focus and leadership skills.

“They think on their own, they learn it’s OK to think freely, and it’s fun to come up with ideas,” said Minabe.

 In the U.S., 98 percent of children age 8 and under have a mobile device in their homes, while 43 percent have their own tablet, according to The Genius of Play, a U.S. program that researches education and play.

That’s similar to Japan, where each adult has an average of more than one smartphone and about half of preschoolers have access to a mobile device, according to Japanese government data.

 In many U.S., Asian and European preschools and elementary schools, teachers use technology to present stories, music and other information. Educators are also studying children’s social development through how they learn to share digital devices.

Getting smarter?

Much of what’s driving the adoption of tablets in U.S. preschools is a belief, founded or not, that an early start will make kids smarter at technology, said Patricia Cantor, a professor of early childhood education at Plymouth State University in New Hampshire.

However, early research into how tablets and apps affect learning for kids ages 2 to 5 is inconclusive.

“Touchscreen stuff is pretty intuitive. They don’t need training,” Cantor said.

Some studies show positive outcomes among young children using mobile devices to improve their literacy, science or math skills, but there’s little research comparing tablet-assisted learning to more conventional teaching approaches, according to a review of 19 studies by Christothea Herodotou, a lecturer at The Open University in the United Kingdom.

Herodotou said it’s unclear which features might help or hinder learning. Devices and apps can also be misused — for instance, to keep children occupied so teachers can do other things.

“Even if it’s designed to encourage learning or exploration or curiosity, it may not be used in that way,” said Cantor. “There’s so much junk out there.”

Still, the target age for “digital play” is getting ever younger.

Experts have known for years that playing is how children learn, says Ken Seiter, Executive Vice President at The Toy Association, a nonprofit, which represents businesses that design, produce, license and deliver youth-entertainment products.

Toys can teach toddlers simple programming or use augmented reality to bring story characters digitally alive, said Seiter, whose organization spearheads The Genius of Play, a U.S.-based program that researches education and play.

Japan’s take

Japan’s classrooms tend to be more structured than in the West, with students often acting in unison as they line up, bow and chant together. Children tend to be passive, and the emphasis is on the group rather than individuals. Youngsters, even some preschoolers, attend extracurricular cram schools.

KitS’ designers have sought to make activities fun. One aim appears to be nurturing outspokenness.

Yuhei Yamauchi, a professor of information studies at the University of Tokyo and KitS adviser, sees practical benefits.

By the time today’s 5-year-olds start work, most jobs will require computer skills. Given Japan’s shrinking population, people may work into their 80s, shifting jobs several times. Digital skills are more critical than ever, he said.

Digital tools deliver the equivalents of libraries and museums at a child’s fingertips, said Ron Shumsky, a child psychologist who works in Japan. That can be addictive, he cautions, and students must be taught safe and responsible “Digital citizenship,” he said.

It’s so compelling it pulls you in,” he said. “It keeps you wanting more.”

Experts warn that staring for too long at screens can damage eyesight and deter creative thinking. It’s a complex problem, since children may see their parents immersed in devices themselves.

KitS limits each session on the iPad to 15 minutes. Classes are held just 30 times a year.

Family dialogue

At the preschool in Yoshikawa, a sleepy Tokyo bed town ringed by lush rice paddies, the children have mastered time-lapse photography using their iPads.

Japanese preschools like Coby are subsidized by local governments. Fees, including meals, are on a sliding scale based on income with the poorest families paying nothing.

Each preschool pays SmartEducation an initial 500,000 yen ($4,400), not including the cost of the iPads, and 30,000 yen ($265) more a month for maintenance. The cost for training teachers is included.

Students use the iPad message function to send their parents photos of themselves in action and share trailers of their upcoming performances.

The kids are keen to talk about it, and parents say the endeavor encourages communication beyond the usual daily stream of commands: Eat dinner, take a bath, go to bed.

“I realized I tend not to wait for what the children have to say,” said hospital worker Masami Uno, whose son, 5-year-old Ayumu, and 2-year-old daughter attend Coby. “It made me stop and think about that.”

The kids AP spoke with favored the usual sorts of career goals, saying they wanted to be ballerinas and soccer players. None said they wanted to be a computer programmer when they grow up.

But they like the KitS.

“It’s fun,” said Yume Miyasaka, 6.

She noted with a little pride that her father uses an iPad for work. But, referring to her iPad creation, she said, “He usually doesn’t draw shaved ice.”

Former Trump Hotel in Panama City Rebranded as JW Marriott

A luxury hotel in Panama City that used to bear the Trump name has formally been rebranded after a bitter dispute over control.

The 70-story, sail-shaped tower is now the JW Marriott. It’s operated by U.S. hotelier Marriott International, which took over management.

Owners and administrators unveiled the new name Tuesday on a granite wall at the entrance where the Trump name was removed in March.

After a hotly-contested legal fight, majority investor Orestes Fintiklis was able to evict managers from the U.S. president’s family company this year.

The company had appealed to Panamanian President Juan Carlos Varela to intervene, raising ethical concerns over possible mingling of Trump’s business and government interests.

Democrats Seek Gains in 2018 Gubernatorial Races

Most of the attention on this year’s midterm elections is about which party will control Congress after the results are known on November 6. In addition to races for the Senate and House of Representatives, U.S. voters also will elect 36 state governors, and Democrats appear poised to make gains.

Republicans control 26 of the state governorships at stake in November, while Democrats currently hold nine seats, and there is one independent governor, Bill Walker in Alaska.

Democrats see opportunities for gains in some larger states like Florida, Michigan and Ohio, where Republican incumbents are term-limited and barred from running again. They also have targeted vulnerable Republican incumbents in Illinois and in Wisconsin, though, where Governor Scott Walker is making a bid for a third term.

In Florida, progressive Democrat Andrew Gillum is in a close race with Republican Ron DeSantis, an avid supporter of President Donald Trump.

Another close race is expected in Ohio where Republican Mike DeWine hopes to succeed Governor John Kasich, a once and possibly future presidential contender, but must fend off Democrat Richard Cordray.

Republicans believe their best chances to pick up seats previously held by Democrats are in Connecticut and Colorado. Republicans also are confident about holding governorships in two heavily Democratic states, Maryland and Massachusetts, where popular GOP incumbents have distanced themselves from President Trump.

The outcome of the 36 governor’s races have implications for the next presidential election in 2020 and beyond. Control of the governor’s mansion in a given state can help the party’s presidential contender in 2020. In addition, governors in most states play a crucial role in approving how congressional districts are redrawn every 10 years based on population shifts reflected in the national census.

Republicans were successful in redrawing House districts to their advantage after the 2010 census in large part because of the gains they made in governors’ races and state legislatures, which also have a key role in the process.

The political process often leads to what is known as “gerrymandering,” when one party has an advantage in how congressional districts are redrawn that results in an electoral advantage that can last for years.

Both parties have done it throughout history, and now Democrats are counting on gains at the gubernatorial level to create a more level playing field after the 2020 census.

 

American Expands Inflight Food Options on Domestic Routes

American Airlines is expanding its inflight food options with the addition of a light and healthy Mediterranean menu.

The world’s largest carrier on Monday announced an agreement with the restaurant chain Zoe’s Kitchen.

 

American, which is based in Fort Worth, Texas, says the new Zoe’s Kitchen menu will be sold on most domestic flights longer than three hours beginning Dec. 1. Options will include hummus topped with olives, a turkey sandwich with specialty cheese and crunchy Mediterranean slaw, and a chicken wrap with roasted tomatoes, arugula and artichokes.

 

American currently serves cookies and mini pretzels for free during flights over 250 miles (400 kilometers). Sandwiches, wraps and snack boxes are also available for sale on most domestic flights.

 

Justice Dept to Discuss Consumer Protection at Social Media Meeting

The U.S. Justice Department said on Monday it will hold a “listening session” with officials from more than a dozen states on Tuesday to discuss consumer protection and the technology industry, an agency official said.

The meeting, first announced on Sept. 5, was called by Attorney General Jeff Sessions to discuss whether social media companies have intentionally stifled “the free exchange of ideas.” It followed criticisms by President Donald Trump of social media outlets, alleging unfair treatment of conservatives.

Sessions will meet with attorneys general or representatives from California, Louisiana, Missouri, Nebraska, and Texas, among others, said the official, who declined to be named.

Discussions are expected to focus on companies like Facebook, Twitter and Google owner Alphabet, which have been accused by some conservatives of seeking to exclude their ideas.

The companies have denied any bias.

As of Monday, two people familiar with the planning said that they had not yet seen an agenda for the meeting. Last Friday, a person familiar with the discussions said the Justice Department was considering delaying the meeting.

The Justice Department had previously said it had invited a bipartisan group of 24 state attorneys general to attend the Sept. 25 meeting.

Texas Attorney General Ken Paxton has said that he worries about suppression of conservative ideas on Facebook, Twitter and other social media.

A spokeswoman for Attorney General Xavier Becerra from California, home to much of the tech industry, said that he looked forward to a “thoughtful” meeting.

Representative Greg Walden, chair of the House of Representatives Energy and Commerce Committee, said in a hearing this month that Twitter had made “mistakes” that, he said, minimized Republicans’ presence on its site, a practice conservatives have labeled “shadow banning.”

Twitter Chief Executive Jack Dorsey responded at the hearing that some platform’s algorithms had been changed to fix the issue.

Some of the state officials attending the meeting or sending representatives have also expressed concern about how Google uses consumer data.

Mississippi Attorney General Jim Hood filed a lawsuit against Google in January 2017, accusing the company of misusing data collected from public school students who use the company’s software. That lawsuit is pending.

Missouri Attorney General Josh Hawley, meanwhile, opened an investigation in November 2017 into whether Google’s data collection practices violate consumer protection laws. Hawley is also probing whether Google violated antitrust law by manipulating search results to favor its own products.

Google said at the time of the probe being opened that it had “strong privacy protections in place for our users and continue to operate in a highly competitive and dynamic environment.”

Instagram Co-founders Resign

The co-founders of Instagram are resigning their positions with the social media company.

 

Chief Executive Kevin Systrom said in a statement late Monday that he and Mike Krieger plan to leave the company in the next few weeks.

 

Krieger is chief technical officer. They founded the photo-sharing app in 2010 and sold it to Facebook in 2012 for about $1 billion.

 

There was no immediate word on why they chose to leave the company but Systrom says they plan to take time off to explore their creativity again.

Representatives for Instagram and Facebook didn’t immediately respond to after-hours messages from The Associated Press.

 

Instagram has seen explosive growth since its founding, with an estimated 1 billion monthly users and 2 million advertisers.

Scientists Voice Opposition to Changes in US Endangered Species Act

Thousands of scientists joined on Monday to accuse the Trump administration of trying to erode the Endangered Species Act in favor of commercial interests with a plan to revamp regulations that have formed a bedrock of U.S. wildlife protection for over 40 years.

The extraordinary critique of the administration’s proposal, which was unveiled in July, came in an open letter addressed to Interior Secretary Ryan Zinke and Commerce Secretary Wilbur Ross from three associations representing 9,000 professional biologists.

A separate letter similarly condemning revisions proposed to endangered species policies was signed by 273 leading university scientists from around the country.

Both came as the 60-day public comment period drew to a close for what would be the most sweeping overhaul in decades of the rules implementing the landmark environmental law.

The 1973 Endangered Species Act (ESA) currently protects more than 1,600 species of U.S. animals and plants listed as either endangered — on the brink of extinction — or threatened — deemed likely to become extinct in the foreseeable future.

The ESA is credited with a number of high-profile success stories, including the comeback of the American bald eagle, the California condor and the grizzly bear.

But the act has long been controversial for requiring the government to designate “critical habitat” deemed essential to a listed species’ survival and limiting commercial activities there, such as construction, mining, energy development or logging.

Developers and other critics argue that such restrictions pose an unfair and overly burdensome intrusion on property rights and economic activity.

Under the administration’s proposal, the government would end the practice of automatically treating endangered species and threatened species essentially the same.

The plan also calls for initially evaluating a species’ critical habitat on the basis of its current range, rather than according to the larger area it could be expected to occupy once recovered.

The administration has argued its proposal would enhance wildlife protection by building greater support for a statute that has become outdated and by streamlining the regulatory process.

Scientists, however, said the planned revisions would undermine the ESA and drive some wildlife closer to extinction.

One proposed change, they said, to allow consideration of economic factors when assessing a species’ status, would violate the law’s requirement that safeguards hinge solely on science.

“This is completely disastrous for efforts to save species from extinction,” said Stuart Pimm, a conservation ecology professor at Duke University.

A spokesman for the U.S. Fish and Wildlife Service, Brian Hires, said the agency encourages “input on our proposed ESA regulatory changes from all stakeholders as part of a robust and transparent public process.”

Trump and Moon Sign Revised Trade Agreement

U.S. President Donald Trump and South Korean President Moon Jae-in signed a revised free trade agreement between the two countries Monday afternoon in New York, following their bilateral meeting on the sidelines of the United Nations General Assembly (UNGA).

“I’m very excited about our new trade agreement,” Trump said during a joint press conference with Moon. “This is a brand new agreement. This is not an old one rewritten. … I’m very excited about that for the United States, and I really believe it’s good for both countries.” 

Trump called the signing “a historic milestone in trade” and “something that most people thought was not going to be happening.”

Speaking through an interpreter, Moon called the revision of the free trade agreement “significant, in the sense that it expands the ROK-U.S. alliance to the economic realm, as well.”

“With the swift conclusion of the negotiations for the revision, uncertainty surrounding our FTA (Free Trade Agreement) have been eliminated,” he said, adding that “as a result, companies from both countries will now be able to do business under more stable conditions.”

The new deal contains amendments to the 2012 U.S.-South Korea free trade deal known as KORUS, which Washington and Seoul agreed to revise in March. 

Trump had previously blamed KORUS, signed during the Obama administration, for increasing U.S. trade deficits with South Korea. 

The amendments include provisions to ease customs barriers for U.S. agricultural goods and pharmaceutical exports. It will increase the number of cars the U.S. can export to South Korea, from 25,000 to 50,000, without being subject to the country’s more stringent safety regulations.

Seoul also accepted a quota on its steel exports to the U.S. to avoid the tariffs Trump has imposed on other countries.

The new deal, however, does not include a currency agreement as members of the Trump administration had previously indicated.

NAFTA deal

Meanwhile, the U.S. and Canada are still trying to work out a deal on a new North American Free Trade Agreement (NAFTA). Canadian Prime Minister Justin Trudeau told reporters in Montreal on Sunday that negotiators are “very likely” to hold informal talks on the sidelines of the UNGA. 

Trump struck a side deal on the three-nation trade agreement with Mexico last month and has threatened to exclude Canada. His administration wants to reach an agreement by the end of September.

Canada says it does not feel bound by any deadlines. Trudeau reiterated his position that he would not sign a bad NAFTA deal.

In a blog for the conservative-leaning Heritage Foundation, economist Tori Whiting wrote that under the new KORUS agreement, Washington “failed to fully achieve the goal of eliminating tariff and non-tariff barriers.” She added that protectionist tariffs “should remain dormant under a new NAFTA.”

US-China tariffs

Also on Monday, a new round of U.S.-imposed duties on $200 billion worth of Chinese goods, and a retaliatory set of tariffs imposed by Beijing on $60 billion worth of U.S. goods took effect.

The new U.S. duties cover thousands of Chinese-made products, including electronics, food, tools and housewares. The new tariffs begin at 10 percent, and will rise to 25 percent on Jan. 1, 2019. 

In a policy statement, Beijing accused Washington of using tariffs as a means of intimidating other countries to submit to U.S. wishes on economic matters.

“We have now reached a stalemate,” Eswar Prasad, senior fellow at Brookings Institution, said in his podcast, “where neither side can be seen as caving in to each other’s demands, potentially signaling that we could be in for a long-standing trade war.”

Prasad added that it seems clear Trump “wants nothing less than total capitulation by the Chinese side on all American demands.”

This includes, he said, not just measures by China to reduce the trade deficit, but also other issues that the U.S. has long been concerned about, such as “better protection of intellectual property rights of American companies, better access to Chinese markets for American investors, as well as American manufacturers.” 

The U.S. has already imposed tariffs on $50 billion worth of Chinese goods, and China has retaliated on an equal amount on U.S. goods. 

Earlier this month, Trump threatened more tariffs on Chinese goods — another $267 billion worth of duties that would cover virtually all the goods China imports to the United States.

Iran’s Currency Hits Another Record Low, With Six Weeks to US Sanctions

Iran’s currency has hit another record low against the dollar, six weeks before the United States is due to reimpose sanctions on Iranian oil exports that are Tehran’s main revenue source.

The Bonbast.com website, which tracks Iran’s unofficial exchange rates, showed a new low of 16,000 tomans, or 160,000 rials, to the dollar Monday.

The rial has weakened to a series of record lows against the U.S. currency in recent weeks. Bonbast.com displayed the rial at a record low of 128,000 to the dollar on Sept.  3.

Iran’s official exchange rate, set by its central bank, has stood at 42,000 to the dollar since April.

The Trump administration has vowed to reinstate sanctions on Iranian oil exports on Nov. 4, in a bid to pressure Tehran to give up what the U.S. says is its nuclear weapons ambitions.

Iran denies seeking nuclear weapons. Washington reimposed a first set of economic sanctions on Iran last month as part of the pressure campaign. The moves reverse the previous U.S. administration’s suspension of those sanctions under terms of a 2015 nuclear deal between Iran and six world powers.

Speaking to VOA Persian last Friday in an interview broadcast Monday, U.S. economist Steve Hanke of Johns Hopkins University said Iranians should expect more of the same with their currency.

“The Iranian people already have anticipated the problems that will befall them after the sanctions go back on, and they react much more rapidly, of course, than anyone,” Hanke said. “That is why the rial has been plummeting and inflation has been soaring.”

A weakening rial makes dollar-denominated imports more expensive for Iranians.

In a Monday tweet, Hanke said Iran’s annual inflation rate has hit a record high of 293 percent.

In a graphic posted with the tweet, Hanke said he calculated the rate using data from Bonbast.com, Iran’s central bank and the U.S. Bureau of Labor Statistics. 

“It is impossible to predict how low the Iranian currency will go,” Hanke said. “We just know it is dying. And when currencies die, inflation goes up, the economy tends to be completely destabilized, and society in general becomes destabilized because [people] can’t trust their own money.”

This article originated in VOA’s Persian Service.