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

Russia Not Expected to Stand Up for Tanking Ruble Amid Sanctions

A threat of more U.S. sanctions has sent the ruble tumbling to its weakest since mid-2016 but authorities are not expected to leap to the currency’s defense after weathering a similar storm in April, analysts said.

The ruble crashed to 67.67 versus the dollar on Friday, losing more than 6 percent of its value in just one week, as the United States said it would impose fresh sanctions against Moscow.

The ruble’s slide was akin to its drop in April when, also battered by sanctions from Washington, it lost 12 percent in just a few days.

Lack of action

The lack of action by authorities back then is convincing market players now that they will not intervene this time either.

“When we think about what has happened in April, when sanctions were introduced and we saw a similar reaction in the ruble … this is not a move in the ruble that would make policy makers extremely worried,” said Tilmann Kolb, an emerging market analyst at UBS Global Wealth Management in Zurich.

Liza Ermolenko, an economist at Barclays in London, said that given the central bank refrained from intervening in the market in April, it is clear that a more sudden and deeper drop in the ruble would be required to make it step in now.

The authorities have made few public comments on the latest falls, which started on Wednesday, when the U.S. State Department announced a new round of sanctions that pushed the ruble to two-year lows and sparked a wider sell-off over fears Russia was locked in a spiral of never-ending sanctions.

Last intervention in 2014

On Friday the central bank said it had tools to prevent risks to financial stability, without specifying what they were.

The central bank, which last intervened in the market and raised rates to save the ruble from tanking in 2014, described the ruble’s drop on news about more U.S. sanctions as natural reaction.

As in April, the central bank has reduced its daily buying of foreign currency for state reserves this week to lift extra pressure from the ruble, which has fallen by around 15 percent versus the dollar so far this year.

“Authorities do not set a goal of avoiding a ruble drop at the moment. That’s why they won’t do anything,” said Pyotr Milovanov, currency trader at Metallinvestbank in Moscow.

Analysts say the other possible option to support the ruble would be a hike to the key interest rate, now at 7.25 percent, but this also seems to be off the table for now.

Rate hikes?

“At this stage we don’t expect policymakers to resort to rate hikes,” Ermolenko from Barclays said.

Kolb from UBS said he would “expect a bigger reaction if we got perhaps towards 70 (rubles per dollar) but this also depends on how we get there, if at all.”

“I wouldn’t expect Russian policymakers to use their available tools to support the ruble at current levels,” he said.

Confirmation Hearings for Supreme Court Nominee Kavanaugh Open Sept. 4

Confirmation hearings for U.S. Supreme Court nominee Brett Kavanaugh will begin on Sept. 4, Senate Judiciary Committee Chairman Chuck Grassley announced in a statement on Friday.

Opening statements by committee members will take place on Sept. 4, and the questioning of Kavanaugh will start the following day, the committee statement said. The hearings are expected to last three or four days.

Republican President Donald Trump nominated Kavanaugh, 53, on July 9 to replace retiring Justice Anthony Kennedy. Before he can assume the lifetime job on the nine-member court, the Republican-controlled Senate must vote to confirm him.

US Consumer Prices Rise Modestly in July

Consumer prices in the U.S. rose a modest 2.9 percent in July from a year ago, as inflation rose gradually but slowly.

Friday’s Labor Department report showed the Consumer Price Index, a broad measure of Americans’ living expenses, increased two-tenths of a percentage point from the previous month. Core prices, which exclude volatile food and energy prices, rose at the same pace.

The main driver of inflation in July was higher housing costs. Food expenses increased slightly, while energy, medical care and clothing prices fell modestly.

The data showed that prices were rising a little faster than wages, leaving the buying power of paychecks one-tenth of a percentage point lower today than a year ago, despite an otherwise healthy economy.

Inflation increases and wage declines in the past 12 months can be blamed on higher oil, gasoline and transportation costs, which had remained at relatively low levels for the previous six years.

Keeping inflation in check is the job of the Federal Reserve, the central bank system of the U.S. It tries to do that by raising interest rates, which makes it more expensive to borrow money and tends to cool economic activity. Lower levels of commerce tend to reduce the pressure to raise prices and wages that fuel inflation.

The Fed already has raised interest rates twice this year, and many economists expect two more interest rate hikes this year. Higher borrowing costs, however, would make it more difficult for the economy to sustain the 3 percent growth rate President Donald Trump promised to voters.

Charlottesville White Supremacist Protest Recalled One Year Later

Sunday marks the one year anniversary of the violent “Unite The Right” protests in Charlottesville, Virginia. Last year’s protest, organized by white supremacists upset over the removal of a statue of a Confederate hero, left one person dead and 19 injured. White nationalists are planning a protest to mark the occasion in Washington. Meanwhile, Virginia Governor Ralph Northam and the city of Charlottesville declared a state of emergency ahead of the anniversary. Anush Avetisyan reports.

Wildlife Official Who Stirred Fears on Species Law Will Leave Post

The head of the U.S. Fish and Wildlife Service is stepping down after a 14-month tenure in which the agency proposed broad changes to rules governing protections for thousands of species and pushed for more hunting and fishing on federal lands, officials said Thursday.

Greg Sheehan will leave the agency next week to return to his family and home in Utah, spokesman Gavin Shire said. He has led the wildlife service since last June as the senior political official appointed under President Donald Trump in a newly created deputy director position.

Under his tenure, the wildlife service moved recently to end a long-standing practice that automatically gave the same protections to threatened species as it gives more critically endangered species. The proposal also limits habitat safeguards meant to shield recovering species from harm and would require consideration of the economic impacts of protecting a species.

That’s alarmed wildlife advocates who fear a weakening of the Endangered Species Act, which has been used to save species as diverse as the bald eagle and the American alligator. The proposed changes were cheered by Republican lawmakers and others who say the endangered species law has been abused to block economic development and needs reform.

A request to interview Sheehan was declined.

Interior Secretary Ryan Zinke had sought to make Sheehan acting director of the 9,000-employee wildlife service, which would have given him certain legal authorities. However, Sheehan was barred from that role because he did not have the science degree required for the position under federal law, Shire said.

Vacancies at Interior

His departure comes amid a spate of vacancies at the Interior Department more than a year and a half after Trump took office. Those include the heads of the Bureau of Land Management, the National Park Service and the assistant secretary for fish, wildlife and parks.

Before coming to the federal government, Sheehan worked for 25 years in Utah’s Division of Wildlife Resources, including five years as its director.

National Wildlife Federation President Collin O’Mara — who considers Sheehan a friend — said during his watch the service had done good work collaborating with state officials and conservation groups. But O’Mara said there needed to be less emphasis on removing regulations and more on making sure wildlife issues are considered, such as during decisions on energy development.

“Given the magnitude of the wildlife crisis, there’s always more that can be done,” O’Mara said.

Another conservation group, the Center for Biological Diversity, had a more critical response, saying Sheehan’s departure was “welcome news for America’s wildlife.”

“In just one year in office, he inflicted incredible harm on imperiled animals by consistently putting special interests ahead of science and the environment,” said Brett Hartl, the group’s government affairs director.

The Interior Department issued a statement saying Sheehan was “an incredible asset to the Interior team and was tremendous in helping Secretary Zinke expand access for hunting and fishing on over a quarter-million acres of public lands across the country.”

Deputy Operations Director Jim Kurth will lead the agency pending another appointment, Shire said.

Trump Meets with Governors to Address Prison Reform, Recidivism   

President Donald Trump discussed prison reform with governors and state attorneys general at his New Jersey golf club Thursday, part of an effort to increase education, vocational training and other opportunities to make it less likely that inmates will commit new offenses. 

The United States has the largest prison population and the highest per-capita incarceration rate in the world. The majority of inmates are held in state facilities, according to the U.S. Bureau of Justice Statistics. 

White House officals said the group represents states that have implemented reforms similar to those backed by Trump. The mostly Republican group included governors from Kentucky, Georgia, Louisiana, Mississippi and North Dakota, as well as attorneys general from Florida and Texas. 

Trump is pushing a bill that has passed the House of Representatives that would provide $250 million over five years to fund education, vocational training and rehabilitation programs within the federal prison system. Participating inmates get credits toward early release or serving the rest of their sentences in halfway houses or home confinement. 

The prison reform bill, “Formerly Incarcerated Re-enter Society Transformed Safely Transitioning Every Person Act,” is also known by its acronym the First Step Act. 

Jared Kushner, Trump’s son-in-law and adviser, has been working with congressional allies to move the First Step program forward. 

First Step Act

Ryan Streeter, director of domestic policy studies with the American Enterprise Institute, said First Step uses “evidence-based interventions to help people get the kind of training they need, the attachment to the community they need, and the things that we’ve seen actually work in a research-based environment.”

He says there is growing congressional consensus on the need for sentencing reform, but initiatives have faced roadblocks. Streeter sees the legislation as an effort to ensure that when inmates reach the end of their sentences, they don’t end up back behind bars within five years, which is what happens with more than 75 percent of the prison population. 

The First Step Act is a “back end” type of prison reform, meaning it focuses on cutting prison time once people are incarcerated. A “front end” initiative focuses on reducing the amount of people sent to prison and the amount of time they spend there by making changes in the process of arrest, prosecution and sentencing.

The bill focuses solely on the federal prison system, which is only a small part of the overall U.S. prison system. Critics say the bill does not address the main causes of mass incarceration: prison sentences that are too long, and too many incarcerated people. For example, the bill would not reduce or limit mandatory minimum sentences for minor drugs offenses. 

A separate piece of legislation — a broader criminal justice reform bill co-written by senators Chuck Grassley and Richard J. Durbin — is also moving though the Senate and has received bipartisan support.

​The Washington Post is reporting that administration officials are pushing for a deal that would combine the Senate bill and the First Step Act, including provisions that would allow judges to issue sentences shorter than mandatory minimums for low-level crimes. 

The deal may face opposition from within Trump’s own administration, particularly from Attorney General Jeff Sessions, who has come out in strong opposition to any measures that would change mandatory minimum sentencing guidelines. 

Support from minorities

Racial disparity is a huge problem in the U.S. criminal justice system. African-Americans are incarcerated at more than five times the rate of whites.

 According to the Sentencing Project, 1 in every 10 black men in his 30s is in prison or jail on any given day.

Last week at the White House, Trump met with a group of urban pastors to discuss prison reform. Attendees said the president essentially came out in support of broad-based reforms to the criminal justice system.

Criminal justice reform

A number of polls, including one by the American Civil Liberties Union Campaign for Smart Justice, have shown that the majority of Americans support criminal justice reforms and believe the country’s criminal justice system needs significant improvements. 

The U.S. makes up about 5 percent of the world’s population but has 21 percent of the world’s prisoners.  According to the World Prison Brief, an online database providing information on prison systems around the world, 655 people were incarcerated in the U.S. per 100,000 population in 2016.

Samsung’s New Phone Shows How Hardware Innovation Has Slowed

Samsung’s new smartphone illustrates the limits of innovation at time when hardware advances have slowed.

The new phone, the Galaxy Note 9, will be faster and will last longer without a recharge. But while earth-shattering new features are in short supply, it will carry an earth-shattering price tag: $1,000.

The minor improvements reflect a smartphone industry that has largely pushed the limits on hardware. Major changes tend to come every few years rather than annually, and this isn’t the year for anything revolutionary in the Note.

The new phone will get some automatic photo editing and a stylus that can serve as a remote control. But the highlights will be a bigger battery, a faster processor and improved cellular speeds.

“You don’t see massive breakthroughs anymore from a hardware perspective,” said Carolina Milanesi, an analyst with Creative Strategies. “Everything is a little bit better, but nothing’s revolutionary.”

A 21 percent boost in battery capacity from last year’s Note 8 should translate to more than a day of normal use without a recharge. Samsung has been conservative on battery improvements ever since its Note 7 phone in 2016 developed a tendency to burst into flame, prompting an expensive recall and delivering a hit to the company’s reputation.

Since then, Samsung has subjected its phones to multiple inspections, including X-rays and stress tests at extreme temperatures. The company is also sending phones to outside labs, including UL, for independent safety tests.

“We’re three generations removed now,” Samsung’s director of U.S. product marketing, Suzanne De Silva, said of the company’s renewed confidence in the battery. “This is the right innovation at the right time.”

Although Samsung’s Note phones are large, niche products intended for power users, they offer a preview of what’s to come in the mass-market Galaxy S line. A dual-lens camera, with better zooming, came to the Note 8 months before the S9 Plus got it, for instance. The Note also got curved edges before that became standard on Samsung’s flagship phones.

The new phones will come out Aug. 24 in the U.S. Borrowing from the iPhone’s playbook, the Note 9 will have the same price regardless of carrier. The starting price is $1,000, an increase from the Note 8, but on par with Apple’s top-of-the-line iPhone X. The Note 9 will get double the storage, at 128 gigabytes, compared with typical high-end phones, including the iPhone X. Samsung will also sell a 512-gigabyte version for power users for $1,250.

Even though the improvements from last year aren’t huge, Technalysis Research analyst Bob O’Donnell said they will come across as major for those who haven’t upgraded for a few years.

Thursday’s announcement in New York comes about a month before Apple is expected to unveil new iPhones. There’s been speculation — unconfirmed by Apple — that all new iPhones will ditch the home button and fingerprint sensor and rely entirely on facial-recognition technology found in the iPhone X. The Note 9 will still have a fingerprint sensor on the back of the phone. In a jab at Apple, Samsung executives also frequently emphasize that their phones have standard headphone jacks, which newer iPhones no longer do.

The camera in the Note 9 will use artificial intelligence to detect what’s in a scene — whether that’s food, flowers or a sunset — to automatically tweak images to make them pop. It’s much like applying filters with an app, except that the phone will do this itself, much the way Google’s Pixel phones already do.

As with the Pixel, the Note won’t be saving a version without the tweaks. Purists can turn the feature off to get images that reflect what the eye sees — an option unavailable with Pixel. The camera will also offer a warning if someone blinked in a shot, or if the image is blurry.

The Note’s stylus will now have Bluetooth, allowing people to control phones and apps from up to 30 feet away. This will let people control music or snap selfies just by clicking the stylus.

Samsung also said the popular shooter game “Fortnite” is coming to Android and will be exclusive to Samsung phones until Sunday.

Drones Can Help Farmers Grow Healthier and More Abundant Crops

Unmanned aerial vehicles, commonly referred to as drones, can become an important tool for farmers around the world within the next 10 years. Researchers at Texas A&M University in College Station are looking at different applications of precision farming with drone technology. VOA’s Elizabeth Lee has the details.

Both Trump and Democrats See Positives in Ohio Election Results

In U.S. politics, President Donald Trump and Republicans are claiming victory in a special congressional election in Ohio seen as a possible bellwether for the November midterm elections. While the race officially remains too close to call, both major political parties see encouraging signs in the results, as we hear from VOA National correspondent Jim Malone in Washington.

Both Trump, Democrats See Positives in Ohio Election Results

President Donald Trump and his Republican supporters are claiming victory in a special congressional election in Ohio, even though officially the race remains too close to call. The race was seen by many as a possible bellwether for the midterm congressional elections in November.

Republican Troy Balderson leads Democrat Danny O’Connor by about 1,700 votes, but a few thousand provisional ballots remain to be counted.

Even if the Republican eventually emerges victorious in the Ohio race, opposition Democrats also see plenty to be optimistic about as they look ahead to the November midterms, when all 435 House seats will be at stake along with 35 of the 100 U.S. Senate seats.

​Tipping by Trump

President Trump held a rally in Ohio a few days before the voting on behalf of Balderson, and many analysts believe that may have tipped the election in Balderson’s favor.

Trump was quick to take credit on Twitter Wednesday, claiming that Balderson’s fortunes took “a big turn for the better” after his speech Saturday night. In a second tweet, the president boasted that “As long as I campaign and/or support Senate and House candidates (within reason), they will win!”

Trump also promised to campaign on behalf of Republican candidates in the midterm elections and predicted, “We will have a giant Red Wave!”

In remarks to his supporters Tuesday night, Balderson was quick to pay tribute to the president for his last-minute help.

“I’d like to thank President Trump,” Balderson said to cheers. “America is on the right path and we are going to keep it going that way.”

​Democratic surge

Balderson benefited from large campaign contributions from the Republican Party’s campaign arm to offset heavy Democratic spending in the race on behalf of Danny O’Connor.

For the most part, O’Connor tried to stay focused on economic issues and health care and was less interested in making Trump the central issue in the race.

“I heard over and over again that the people of central Ohio are sick and tired of the same old Washington politics,” O’Connor told supporters Tuesday night. “Folks want new leadership.”

O’Connor’s strong showing came in a district that Republicans have held for more than three decades and which Trump carried in the 2016 election by more than 11 points.

In his rally Saturday on behalf of Balderson, Trump laid out a template for future campaign attacks as he strove to take the focus off of him and aim squarely at opposition Democrats.

“If the Democrats get in, they are going to raise your taxes, you are going to have crime all over the place and you are going to have people pouring across the border,” Trump told supporters. “So why would that be a blue wave? I think it could be a red wave, really I think it should be a red wave.”

Warning signs

The fact that Democrat O’Connor ran a close race in a strongly Republican district, however, strikes experts as yet another warning sign for Republicans in November.

“It is more evidence that in race after race throughout this year, Republicans have been underperforming the levels that they were at in 2016, which has to spell trouble for them moving forward,” said Brookings Institution analyst John Hudak.

Balderson also received help from Ohio Governor John Kasich. On Sunday on ABC’s This Week, Kasich predicted a narrow Republican victory in the election, but he also warned that Trump remains a polarizing figure for the broader electorate.

“The chaos that seems to surround Donald Trump has unnerved a lot of people. So suburban women in particular here are the ones who are really turned off,” Kasich told ABC.

Double-edged weapon

So on one hand, the Ohio results suggest the president can tip a close race into the Republican column. 

“Oh, I believe the president does think that his ability to weigh in and endorse a candidate can have an effect,” said analyst Hudak.

But Hudak also argued that in addition to motivating his own base, Trump also is proving to be a turnout motivator for Democrats who want to show their displeasure with him.

“While his intervention or maybe Governor Kasich’s intervention or someone else’s intervention may well have made the difference in this 1,700-vote margin in Ohio, the president has probably also played a significant role in the shift from Republicans toward Democrats in a race like this.”

No matter who is declared the eventual winner of Tuesday’s special election, Balderson and O’Connor are expected to face off again in November when it is likely that Trump will once again be the pivotal issue for voters in midterm elections where the control of Congress is at stake.

Kids + Screen Time = Dry Eyes

If you’ve ever spent a lot of time in front of a computer, you’ve probably come away bleary eyed. That’s because you don’t blink as much when you are working on a computer, which could lead to dry eyes. With the popularity of video games and online activities, dry eye is becoming increasingly common in children and teens glued to their screens. The condition can cause permanent eye damage, but fortunately, as VOA’s Carol Pearson reports, there’s an app for that.

Army Suspends Discharges of Immigrant Recruits

The U.S. Army has stopped discharging immigrant recruits who enlisted seeking a path to citizenship, at least temporarily.

A memo shared with The Associated Press Wednesday and dated July 20 spells out orders to high-ranking Army officials to stop processing discharges of men and women who enlisted in the special immigrant program, effective immediately.

It was not clear how many recruits were affected by the action, and the Pentagon did not immediately respond to requests for comment about the memo.

“Effective immediately, you will suspend processing of all involuntary separation actions,” read the memo signed by Acting Assistant Secretary of the Army for Manpower and Reserve Affairs Marshall Williams.

Dozens of discharges 

The disclosure comes one month after the AP reported that dozens of immigrant enlistees were being discharged or their contracts were canceled. Some said they were given no reason for their discharge. Others said the Army informed them they’d been labeled as security risks because they have relatives abroad or because the Defense Department had not completed background checks on them.

Early last month, the Pentagon said there had been no specific policy change and that background checks were ongoing. And in mid-July, the Army reversed one discharge, for Brazilian reservist Lucas Calixto, 28, who had sued. Nonetheless, discharges of other immigrant enlistees continued. Attorneys sought to bring a class action lawsuit last week to offer protections to a broader group of reservists and recruits in the program, demanding that prior discharges be revoked and that further separations be halted.

A judge’s order references the July 20 memo, and asks the Army to clarify how it impacts the discharge status of Calixto and other plaintiffs. As part of the memo, Williams also instructed Army officials to recommend whether the military should issue further guidance related to the program.

Margaret Stock, an Alaska-based immigration attorney and a retired Army Reserve lieutenant colonel who helped create the immigrant recruitment program, said Wednesday the memo proves there was a policy.

“It’s an admission by the Army that they’ve improperly discharged hundreds of soldiers,” she said. “The next step should be go back and rescind the people who were improperly discharged.”

Discharged recruits and reservists reached Wednesday said their discharges were still in place as far as they knew.

One Pakistani man caught by surprise by his discharge said he was filing for asylum. He asked that his name be withheld because he fears he might be forced to return to Pakistan, where he could face danger as a former U.S. Army enlistee.

Security requirements

The reversal comes as the Defense Department has attempted to strengthen security requirements for the program, through which historically immigrants vowed to risk their lives for the promise of U.S. citizenship.

President George W. Bush ordered “expedited naturalization” for immigrant soldiers after 9/11 in an effort to swell military ranks. Seven years later the Military Accessions Vital to the National Interest program, known as MAVNI, became an official recruiting program.

It came under fire from conservatives when President Barack Obama added DACA recipients — young immigrants who were brought to the U.S. illegally as children — to the list of eligible enlistees. In response, the military layered on additional security clearances for recruits to pass before heading to boot camp.

The Trump administration added even more hurdles, creating a backlog within the Defense Department. Last fall, hundreds of recruits still in the enlistment process saw their contracts canceled.

Government attorneys called the recruitment program an “elevated security risk” in another case involving 17 foreign-born military recruits who enlisted through the program but have not been able to clear additional security requirements. Some recruits had falsified their background records and were connected to state-sponsored intelligence agencies, the court filing said.

Eligible recruits are required to have legal status in the U.S., such as a student visa, before enlisting. More than 5,000 immigrants were recruited into the program in 2016, and an estimated 10,000 are currently serving. Nearly 110,000 members of the Armed Forces have gained citizenship by serving in the U.S. military since Sept. 11, 2001, according to the Defense Department.

Chinese Media Say US Tariff Moves Reflect ‘Mobster Mentality’

Chinese state media on Thursday accused the United States of a “mobster mentality” in its move to implement additional tariffs on Chinese goods and warned that Beijing had all the necessary means to fight back.

The comments marked a ratcheting up in tensions between the world’s two largest economies over a trade dispute, which is already affecting industries including steel and autos and is causing unease about which products could be targeted next.

Beijing late on Wednesday said it would slap additional tariffs of 25 percent on $16 billion worth of U.S. imports, in retaliation against news the United States plans to begin collecting 25 percent extra in tariffs on $16 billion worth of Chinese goods beginning August 23.

“The two countries’ trade conflict, which is merely push and shove at the moment, is likely to escalate into more than just a scuffle if the U.S. administration cannot marshal its mobster mentality,” state newspaper China Daily said in an editorial.

“China continues to do its utmost to avoid a trade war, but in the face of the U.S.’s ever greater demand for protection money, China has no choice but to fight back,” it said.

So far, China has now either imposed or proposed tariffs on $110 billion of U.S. goods, representing the vast majority of its annual imports of American products. Big-ticket U.S. items that are still not on any list are crude oil and large aircraft.

“China has confidence in protecting its own interests [and] has many means,” state broadcaster CCTV said on its early-morning news show.

Another commentary, written by China Institute of International Studies research fellow Jia Xiudong and published in the overseas edition of the People’s Daily newspaper, said the United States was trying to “suppress China’s development.”

China should consider “unconventional methods” such as the stimulus plan used by Beijing during the global financial crisis if needed to sustain economic growth, the Global Times newspaper, a tabloid published by the ruling Communist Party’s People’s Daily, said in a commentary.

New York Moves to Cap Uber, App-Ride Vehicles

New York’s city council on Wednesday dealt a blow to Uber and other car-for-hire companies, passing a bill to cap the number of vehicles they operate and impose minimum pay standards on drivers.

The city of 8.5 million is the biggest app-ride market in the United States, where public transport woes and astronomical parking costs have helped fuel years of untamed growth by the likes of Lyft, Uber and Via.

But that growth has brought New York’s iconic yellow cabs to their knees. Since December, six yellow cab drivers have committed suicide. Those deaths have been linked, at least in part, to desperation over plummeting income.

The bill stipulates a 12-month cap on all new for-hire-vehicle licenses, unless they are wheelchair accessible, as well as minimum pay requirements for app drivers — regulated by the Taxi and Limousine Commission (TLC).

It makes New York the first major city in the United States to limit the number of app-based rides and to impose pay rules for drivers.

A recent TLC-commissioned study recommended a guaranteed income of $17.22 an hour for drivers — $15, plus a supplement to mitigate against rest time.

New York Mayor Bill de Blasio, a progressive Democrat, vowed to sign the bill into law, proclaiming that it would “stop the influx of cars contributing to the congestion grinding our streets to a halt.”

“More than 100,000 workers and their families will see an immediate benefit from this legislation,” de Blasio said.

Around 80,000 drivers work for at least one of the big four app-based companies in New York, compared to 13,500 yellow cab drivers, according to the recent TLC-commissioned study.

The increased competition has slashed the value of yellow cab taxi licenses, from more than $1 million in 2014 to and less than $200,000 today.

China, Germany Defend Iran Business Ties as US Sanctions Grip

China and Germany defended their business ties with Iran on Wednesday in the face of President Donald Trump’s warning that any companies trading with the Islamic Republic would be barred from the United States.

The comments from Beijing and Berlin signaled growing anger from partners of the United States, which reimposed strict sanctions against Iran on Tuesday, over its threat to penalize businesses from third countries that continue to operate there.

“China has consistently opposed unilateral sanctions and long-armed jurisdiction,” the Chinese foreign ministry said.

“China’s commercial cooperation with Iran is open and transparent, reasonable, fair and lawful, not violating any United Nations Security Council resolutions,” it added in a faxed statement to Reuters.

“China’s lawful rights should be protected.”

The German government said U.S. sanctions against Iran that have an extra-territorial effect violate international law, and Germany expects Washington to consider European interests when coming up with such sanctions.

The reimposition of U.S. sanctions followed Trump’s decision earlier this year to pull out of a 2015 deal to lift the punitive measures in return for curbs on Iran’s nuclear program designed to prevent it from building an atomic bomb.

Iran’s highest authority, Supreme Leader Ayatollah Ali Khamenei, said meanwhile the country had nothing to be concerned about, a report on his official website said in an apparent reference to the imposition of the U.S. sanctions

“With regard to our situation do not be worried at all. Nobody can do anything,” Khamenei said recently, the website reported. “There is no doubt about this.”

Iranian President Hassan Rouhani, speaking in a meeting with North Korea’s foreign minister, said that America could not be trusted, according to the Islamic Republic News Agency.

“Today, America is identified as an unreliable and untrustworthy country in the world which does not adhere to any of its obligations,” Rouhani said.

Tuesday’s sanctions target Iran’s purchases of U.S. dollars, metals trading, coal, industrial software and the auto sector.

Trump tweeted on Tuesday: “These are the most biting sanctions ever imposed, and in November they ratchet up to yet another level. Anyone doing business with Iran will NOT be doing business with the United States.”

Europeans withdraw

European countries, hoping to persuade Tehran to continue to respect the deal, have promised to try to lessen the blow of sanctions and to urge their firms not to pull out. But that has proved difficult: European companies have quit Iran, arguing that they cannot risk their U.S. business.

Among those that have suspended plans to invest in Iran are France’s oil major Total, its big carmakers PSA and Renault, and their German rival Daimler.

Danish engineering company Haldor Topsoe, one of the world’s leading industrial catalyst producers, said on Wednesday it would cut around 200 jobs from its workforce of 2,700 due to the new U.S sanctions on Iran, which made it very hard for its customers there to finance new projects.

The chief executive of reinsurance group Munich Re said it may abandon its Iran business under pressure from the United States, but described the operation as very small.

Turkey, however, said it would continue to buy natural gas from Iran.

“Simplistic idea”

In Tehran, Iranian Foreign Minister Mohammad Javad Zarif was quoted by an Iranian newspaper as saying that a U.S. plan to reduce Iran’s oil exports to zero would not succeed.

U.S. officials have said in recent weeks that they aim to pressure countries to stop buying oil from Iran in a bid to force Tehran to halt its nuclear and missile programs and involvement in regional conflicts in Syria and Iraq.

“If the Americans want to keep this simplistic and impossible idea in their minds they should also know its consequences,” Zarif told the Iran newspaper. “They can’t think that Iran won’t export oil and others will export.”

Rouhani hinted last month that Iran could block the Strait of Hormuz, a major oil shipping route, if the U.S. attempted to stop the Islamic Republic’s oil exports.

Trump responded by noting that Iran could face serious consequences if it threatened the United States.

“The Americans have assembled a war room against Iran,” Zarif said. “We can’t get drawn into a confrontation with America by falling into this war room trap and playing on a battlefield.”

Iran has dismissed a last-minute offer from the Trump administration for talks, saying it could not negotiate while Washington had reneged on the 2015 deal to lift sanctions.

In a speech hours before the sanctions were due to take effect on Tuesday, Rouhani rejected negotiations as long as Washington was no longer complying with the deal.

“If you stab someone with a knife and then you say you want talks, then the first thing you have to do is remove the knife,” Rouhani said in a speech broadcast live on state television.

Record Number of Women Seeking Seats in US Congress

A record number of women are running for the US Congress in November, a surge that follows a year marked by the #MeToo movement and defiance of President Donald Trump.

After another round of primary voting in several states on Tuesday, 183 women will fight for a seat in the House of Representatives in November’s midterm election.

“It’s official,” the Center for American Women and Politics (CAWP) said after the voting in Kansas, Michigan and Missouri. “We’ve broken the record for women major party nominees for US House in any year.”

Until now the record was 167.

In another record, at least 11 women are running for state governor, the advocacy group said on Twitter. Until now that number had peaked at 10, in 1994.

In June, women also set a record for how many are running for the Senate. It is 42 — 24 Democrats and 18 Republicans. The previous record was 40, set in 2016, said the CAWP.

Several women candidates in races that they have a good chance of winning are from minorities with little or no representation in Congress.

They include Rashida Tlaib, who won a Democratic primary Tuesday in Michigan and is now poised to become the first Muslim woman elected to Congress.

Several Native American women are also running for seats.

“A Native American woman has never been elected to the US Congress,” CAWP said.

The strong number of female candidates comes midway through the term of Trump, whose inauguration in January 2017 was met the next day with a huge march in Washington favor of women’s rights.

It also comes as the #MeToo movement against sexual harassment of women by men in powerful positions has marked a watershed moment in US society.

Tesla Board Evaluating CEO Musk’s Idea to Go Private

Tesla Inc’s board said it was evaluating taking the company private, a day after Chief Executive Elon Musk surprised shareholders with the idea of launching the biggest leveraged buyout of all time.

In a statement on Tesla’s website on Wednesday, six of Tesla’s nine directors said the board had met several times over the last week to discuss such an idea and was “taking the appropriate next steps to evaluate this.”

Musk said on Twitter on Tuesday that he was considering taking the loss-making electric car-maker private at $420 a share, which would value a deal at more than $70 billion. He said funding was “secured,” without elaborating.

Tesla said on Wednesday the discussions had addressed the issue of how to fund such a deal, but gave no details. The statement did not address how the $420-per-share price was established.

Several securities attorneys told Reuters that Musk could face investor lawsuits if it was proven he did not have secure financing at the time of his tweet.

Public companies have four days to report certain material events that shareholders should know about to the U.S. Securities and Exchange Commission.

Tesla’s shares were down 2.1 percent at $371.70 on Wednesday after closing up 11 percent on Tuesday.

Some Wall Street analysts were skeptical of Musk’s ability to gather the huge financial backing to complete such a deal, given that Tesla loses money, has $10.9 billion of debt and its bonds are rated junk by credit ratings agencies.

“Who gives $30 to $50 billion to buy back the shares?” asked NordLB analyst Frank Schwope. “And if you stay as a shareholder you get less information than before and you depend more and more on Elon Musk.”

The deal would be the biggest leveraged buyout of all time, beating the $45-billion record set by Texas power utility Energy Future Holdings.

The most obvious equity partners for Musk would be a sovereign wealth fund such as Saudi Arabia’s Public Investment Fund (PIF), which sources said on Tuesday had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp’s Vision Fund, bankers said.

China’s Tencent Holdings Ltd, which took a 5-percent stake in Tesla last year, could also be a possible partner.

Surprise move

In a letter after his tweet on Tuesday, Musk fleshed out his idea, suggesting shareholders would get the option to sell their shares for $420 each or remain investors in a private Tesla, out of the glare of Wall Street and its need for positive quarterly results.

He said that would allow Tesla to “operate at its best, free from as much distraction and short-term thinking as possible.” Some on Wall Street shared that view.

“They’re being bombarded with questions that we don’t think are as relevant to the long-term value of the company,” said Sam Korus, an analyst for ARK Investment Management, which had 443,874 Tesla shares as of June 30. Korus said he would need more details from Musk to judge whether a buyout offer would be practical and at what price it would be attractive.

Musk has been under intense pressure this year to turn his money-losing, debt-laden company into a profitable higher-volume manufacturer, a prospect that has sent Tesla’s valuation higher than that of General Motors Co.

The company is still working its way out of what Musk called “production hell” at its home factory in Fremont, California, where a series of manufacturing challenges delayed the ramp-up of production of its new Model 3 sedan, on which the company’s profitability rests.

Going private is one way to avoid close scrutiny by the public market as Musk and the company face those challenges. Musk has feuded publicly with regulators, critics, short sellers and reporters, and some analysts suggested that less transparency would be welcomed by Musk.

The six board members who issued the statement on Wednesday included James Murdoch, chief executive of Twenty-First Century Fox Inc and Brad Buss, who was the chief financial officer of solar panel maker SolarCity until it was bought by Tesla in 2016.

Other board members mentioned in the statement included Robyn Denholm, Ira Ehrenpreis, Antonio Gracias and Linda Johnson Rice. Tesla’s other board members are Musk, his brother Kimbal Musk and venture capitalist Steve Jurvetson.

China Exports Accelerated in July Despite Rise in US Tariffs

China’s exports to the United States surged last month as its merchants rushed to fill orders ahead of a jump in U.S. tariffs on Chinese goods.

Its shipments to the United States climbed 13 percent in July from a year earlier, to $41.5 billion, after a roughly similar rise in June, customs data show.

At the same time, Beijing’s trade surplus with the United States — a frequent source of anger and threats from President Donald Trump — grew 11 percent to $28 billion.

Chinese exporters appear to be trying to ship their goods to the United States before tariffs that Trump is imposing in a fight over technology policy take full effect. The trade war between the world’s two biggest economies has forced many multinational companies to reschedule purchases and rethink where they buy materials and parts to try to dodge or blunt the effects of tit-for-tat tariffs between Washington and Beijing.

Beijing has warned that its exporters face “rising instabilities” after Washington slapped 25 percent duties on $34 billion of Chinese goods last month in response to complaints that China steals or pressures foreign companies to hand over technology. Beijing has retaliated against the U.S. tariffs with higher duties on a similar amount of American goods.

On Tuesday, the Trump administration announced that it would proceed with previously announced 25 percent tariffs on an additional $16 billion of Chinese imports starting Aug. 23. On Wednesday, China hit back by saying it would impose identical 25 percent punitive duties on $16 billion of U.S. goods, including cars, crude oil and scrap metal, also to take effect Aug. 23.

A Commerce Ministry statement labeled Trump’s decision to go ahead with the latest U.S. tariffs “very unreasonable.” Beijing’s retaliatory move was a “necessary response” to “safeguard its legitimate interests,” the ministry said on its website.

Escalating its tensions with Beijing, the Trump administration has also threatened to impose penalties on an additional $200 billion in Chinese exports to the United States. Beijing says it is ready to retaliate against $60 billion of American imports. (Beijing cannot tax an equal amount of U.S. products, because the United States exports far fewer goods to China than it imports.)

Tariffs are taxes on imports. They are meant to protect homegrown businesses and put foreign competitors at a disadvantage. But the taxes also exact a price on domestic businesses and consumers who buy imports and end up paying more for them.

In July, China’s global exports surged 12 percent, even faster than an 11 percent increase in June. At the same time, overall imports to China jumped 27 percent last month.

Exports to the rest of the world might have been boosted by a weaker Chinese currency. The yuan has declined by 8 percent this year against the dollar and by about 4 percent against a basket of global currencies. A weakening currency makes a nation’s goods more affordable for overseas buyers.

China’s trade conflict with the United States, coupled with weakening global demand, has compounded the challenges for Beijing. Economic growth has slowed since regulators tightened controls on bank lending to rein in surging debt.

The unusually strong July import figures reflected higher prices, according to Julian Evans-Pritchard of Capital Economics.

“We expect export growth to cool in the coming months, though this will primarily reflect softer global growth rather than U.S. tariffs,” Evans-Pritchard said in a report. “Import growth is likely to slow as domestic headwinds continue to weigh on economic activity.”

China’s global trade surplus narrowed by 40 percent from a year earlier to $28 billion. In the meantime, its trade gap with the 28-nation European Union contracted 8 percent to $11.2 billion.

China is running out of American goods to hit with retaliatory tariffs given the two nations’ lopsided trade balance. Last year’s imports from the United States totaled about $130 billion. That leaves only about $20 billion for penalty tariffs after increases that have already been imposed or threatened on U.S. goods are counted.

Beijing has stepped up efforts, so far without success, to recruit governments including Germany and France as allies. Those nations have criticized Trump’s tactics, but they share U.S. complaints about Chinese industrial policy and market barriers.

Twitter Breaks With Tech Giants, Keeps Alt-Right InfoWars

After several social media outlets banned alt-right conspiracy theorist Alex Jones and his show InfoWars earlier this week, Twitter announced it would be keeping Jones, sparking backlash from users.

“We didn’t suspend Alex Jones or Infowars yesterday. We know that’s hard for many but the reason is simple: he hasn’t violated our rules,” Twitter CEO Jack Dorsey wrote. Jones, who has become notorious for hosting The Alex Jones Show on InfoWars, has more than 860,000 followers on Twitter.

On Monday, sites such as YouTube and Facebook banned Jones and his pages from their platforms, claiming that Jones’s videos violated the sites’ hate speech guidelines.

Jones has repeatedly used language incendiary towards Muslim and transgender people, and in July he appeared to threaten to shoot U.S. Special Counsel Robert Mueller, who is investigating President Trump and his White House on possible ties to Russia.

“[Mueller is] a demon I will take down, or I’ll die trying,” Jones said on a July broadcast, miming a gun-firing motion with his hands. “You’re going to get it, or I’m going to die trying, bitch.”

In the past, Jones has baselessly alleged the 9/11 terrorist attacks and the 2012 Sandy Hook Elementary School Shooting in Connecticut were hoaxes perpetrated by the U.S. government.

Several parents of children killed in the Sandy Hook shooting are suing Jones for defamation. In a court document, the parents of one of the slain children claimed Jones broadcast his personal information on his show. At the time of its removal, Jones’s YouTube channel had more than 2.4 million subscribers, with 1.5 billion views across all of its videos.

Twitter’s hateful conduct guidelines bar “wishes for the physical harm, death, or disease of individuals or groups” as well as “behavior that incites fear about a protected group.”

“We do not tolerate behavior that harasses, intimidates, or uses fear to silence another person’s voice,” the site’s guidelines say.

While Dorsey acknowledged in a Tweet that accounts such as InfoWars can “sensationalize issues and spread unsubstantiated rumors,” he also wrote that it “serves the public conversation best” for “journalists document, validate, and refute such information directly.”

Several journalists pushed back against Dorsey’s request.

“I am not getting paid to clean up your website for you,” wrote Matt Pearce, a journalist for The Los Angeles Times, in a response to Dorsey’s Tweet.

Twitter has banned significant alt-right personalities in the past.

In 2016, alt-right provocateur Milo Yiannopoulos, who has ties to white nationalist groups, was permanently banned from the site after instigating racist and sexist harassment against American actress Leslie Jones, who is black.

And in 2017, Twitter suspended the account of James Allsup, a white nationalist who spoke at the “Unite The Right” rally in Charlottesville, Virginia earlier that year.

“We’re going to hold Jones to the same standard we hold to every account, not taking one-off actions to make us feel good in the short term,” Dorsey wrote Tuesday.

NY Congressman Collins Arrested, Charged with Insider Trading

Federal prosecutors have filed insider trading charges against Republican Congressman Chris Collins, who was arrested and is scheduled to appear in federal court in Manhattan.

The lawmaker from New York, one of the first members of Congress to support then-candidate Donald Trump during the 2016 presidential election, turned himself in to the Federal Bureau of Investigation early Wednesday.

The U.S. Attorney’s Office in the Southern District of New York charged Collins in connection with an alleged insider trading scheme involving his investments in the Australian biotech company Innate Immunotherapeutics Ltd.

Earlier this year, an Office of Congressional Ethics report said Collins may have committed a federal crime by disclosing proprietary information about the company with investors, including his son, who was also charged. The office voted unanimously to send the case to the House Ethics Committee.

His son, Cameron Collins, allegedly passed the information to another alleged conspirator, Stephen Zarsky, the father of the junior Collins’ fiancee. 

The three men are charged with conspiracy, wire fraud, securities fraud and making false statements to the FBI. They also face civil charges by the U.S. Securities and Exchange Commission.

Collins served on the company’s board and owned 16.8 percent of the company’s stock. His son was also a “substantial” shareholder, prosecutors said.

Indictment details

The indictment says Collins allegedly learned in an email from Innate’s chief executive that a trial for a multiple sclerosis drug had failed. Collins then disclosed the information to his son, who passed it on to his fiancee, Zarsky and a friend. Zarsky tipped off his brother, his sister and a friend, the indictment said.

“Congressman Christopher Collins is charged with insider trading and lying to the FBI, as are his son, Cameron Collins and Stephen Zarsky, the father of Cameron’s fiancee,” U.S. Attorney Geoffrey Berman said.  “Representative Collins, who, by virtue of his office, helps write the laws of this country, acted as if the law did not apply to him.”

The indictment also says Collins did not trade his own Innate stock, which lost millions of dollars in value, maintaining he was “virtually precluded” from doing so due, in part, to the fact he already faced a congressional ethics investigation related to his Innate holdings. Prosecutors said, however, others avoided nearly $770,000 in losses as a result of the information.

Collins’ attorneys said in a statement they “will mount a vigorous defense to clear his good name” and added, “It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stock.”

Midterm elections

House Republican leader Paul Ryan said the allegations against Collins “demand a prompt and thorough investigation by the House Ethics Committee” and added that Collins would no longer serve on the House Energy and Commerce Committee “until this matter is settled.”

Collins is running for re-election in November and has raised more than $1.3 million dollars for his re-election bid, according to a filing with the Federal Election Commission. 

The three-term congressman represents a largely Republican district that most political analysts believed would not be ripe for a Democratic takeover in the November midterm elections.

Zarsky attorney Amanda Bassen declined to comment, and lawyers for Cameron Collins could not be immediately reached.

Innate, which is based in Sydney, also did not immediately respond to requests for comment.

US Senator Delivers Trump Letter to Putin

A U.S. senator says he has delivered a letter from President Donald Trump to Russian President Vladimir Putin calling for more talks and exchanges between the two countries.

Kentucky Republican Rand Paul, a Trump supporter who has been in Moscow in recent days holding discussions with Russian lawmakers, said Wednesday, “I was honored to deliver a letter from President Trump to President Vladimir Putin’s administration.”

In a Twitter remark, Paul said the letter “emphasized the importance of further engagement in various areas including countering terrorism, enhancing legislative dialogue and resuming cultural exchanges.”

The White House said the letter was requested by Paul.

“At Senator Paul’s request, President Trump provided a letter of introduction. In the letter, the President mentioned topics of interest that Senator Paul wanted to discuss with President Putin,” White House Deputy Press Secretary Hogan Gidley said.

Both Trump and Putin have invited each other to their respective capital cities in the aftermath of last month’s Helsinki summit between the two leaders. But no new meeting has been scheduled and the White House said it was delaying a Putin visit to Washington until 2019, by which time it said it expects special counsel Robert Mueller’s criminal investigation into Russian meddling in the 2016 U.S. presidential election to be completed.

Trump was widely criticized in the U.S. for his performance at the Helsinki summit as he appeared to embrace Putin’s denial that Russia had interfered in the election, equating the Russian leader’s stance with the U.S. intelligence community’s finding that Russia had sought to help Trump win. In a joint news conference with Trump, Putin said he did want Trump to win because then-candidate Trump had said he wanted to improve U.S.-Russian relations.

Back in Washington, Trump clarified his remarks and has said that Russia interfered, but has continued to call the claim that Russia tried to help him win and Mueller’s investigation “a big hoax.”

 

Trump Says He Wants China to Treat US ‘Fairly’ on Trade

U.S. President Donald Trump predicted Tuesday the United States and China will have a “fantastic trading relationship” but one that will be different from the way it has been under previous presidents.

Speaking to a group of invited business leaders, Trump said he wants China to do well, but also wants Chinese policies to treat the United States fairly.

Trump has frequently highlighted China as a target of what he says are unbalanced trade relationships he wants to alter in order to benefit American workers. He has implemented more than $30 billion in new tariffs on Chinese goods, and on Tuesday his administration said another $16 billion in tariffs would go into effect later this month.

China has said it plans to counter with tens of billions of dollars in tariffs on U.S. exports. It also released its latest trade figures Tuesday showing a surge in exports in July despite the U.S. actions.

Paul Hanke, a professor of applied economics at the Johns Hopkins University and a former Reagan Administration trade official, told VOA the U.S. trade deficit with China is “really not a problem.”

He compared the situation to the trade deficit the United States had with Japan in the 1980s that prompted President Ronald Reagan to institute the type of protectionist policies Trump is now supporting. But Hanke said he expects China to have a stronger response than the Japanese did.

“China is a big power and they’re going to play hard ball with the United States, so this will get worse, not better,” he said.

Trump said Tuesday his administration has already used tax cuts, deregulation and trade policies to boost the U.S. economy, which grew by 4.1 percent in the second quarter of this year.

The president falsely asserted that level of growth was a record, or close to a record. Since 2011, the U.S. economy has posted three separate quarters above 4.7 percent growth.

Trump predicted his policies would push growth even higher, surpassing percent in the next quarter “as trade deals come in” that are “sane and fair for our country.”

He also said that next week the White House would make an announcement regarding his goal of making prescription drugs more affordable.

Trump gave no details other than to say the coming action would “get them down really, really substantially.”

During Tuesday’s event he highlighted his objection last month to planned price increases by pharmaceutical giant Pfizer, which quickly rolled back it prices to prior levels. Pfizer said it would keep the old prices until Trump can put in place a plan to strengthen the healthcare system, or the at the end of the year, whichever comes first.

Victor Beattie contributed to this report.

Can a Robot Know When It’s Wrong?

Today’s robots can be programmed to do many things – from vacuuming floors to assembling cars. But teaching them to recognize and correct a mistake is much harder to do. A group of scientists, led by researchers at Carnegie Mellon University, is trying to solve that problem. VOA’s George Putic has more.

NYC Ponders Precedent With 1-Year Cap on New Ride-Hail Car Services

New York City’s iconic but imperiled yellow cab industry may be getting help from lawmakers who want to pump the brakes on fast-expanding ride-hailing services like Uber and Lyft.

In what would be a first-in-the-nation step if passed, the City Council on Wednesday is set to vote on proposals that would cap new licenses for car service drivers for one year while officials study the massive changes rippling through the taxi industry.

Other proposals would set minimum pay levels for all drivers and minimum fares, which are now regulated for traditional cabs but not their multitudes of new competitors.

The legislation is a reaction to stories of financial hardship told by drivers, who complain that there are so many Uber cars on the road now that it is getting hard for anyone to make a decent living.

“There has to be a pause button that’s going to give people some breathing room,” said Bhairavi Desai, of the New York Taxi Workers Alliance.

City Council Speaker Corey Johnson said lawmakers aren’t against the ride-hailing newcomers. “We think they’ve actually filled a need,” he said. “We also believe there needs to be a regulatory framework in place.”

For generations, taxi drivers in New York were protected by rules that restricted competition. Around 13,500 yellow cabs had the special licenses, called medallions, needed to pick up passengers on the street. Several thousand more drivers worked for black car companies that dispatched vehicles by phone, mostly in the outer boroughs of Bronx, Queens, Staten Island and Brooklyn, where yellow cabs generally wouldn’t travel.

That system was smashed when the city began allowing passengers to use smartphone apps to hail cars almost anywhere.

The change kicked off a dizzying increase in the number of car service drivers from about 65,000 in 2015 to 100,000 now.

$1 million taxi medallions

One unforeseen development has been plunging value of the traditional taxi medallions. As recently as four years ago, they were changing hands at prices reaching $1 million. They were considered such a ticket to guaranteed income, banks allowed owners to borrow huge sums against them for home mortgages or school loans.

Now, many of those loans are coming due. Drivers no longer have the income to pay them off. And with medallions now trading at $200,000 or less, owners don’t have the collateral to refinance.

Driver Lal Singh said he owes $312,000 on a medallion he thought would be his ticket to middle-class comfort. But he can’t sell at a price high enough to cover his debt. So at age 62, he’s still driving 14-hour shifts, despite having high blood pressure and diabetes, with every penny going to pay off his debt.

“Everybody say, ‘This is my retirement. Some income will come in from the medallion. We will survive,'” he said. “But now we have no hope and I don’t see any place, which direction I should go.”

Six drivers have taken their own lives in the last year, including one who shot himself in his car in front of City Hall after railing against politicians and Uber in a newsletter column.

“I will not be a slave working for chump change,” Douglas Shifter wrote. “I would rather be dead.”

Drivers previously pushed for a cap on new competition in 2015, but were beaten back by ride-hailing companies. The same companies are now pushing back on the new proposals, saying they would prevent them from replacing drivers who quit and lead to reduced service.

“We’re really concerned about the process and the speed with which the council is trying to ram this through,” said Joseph Okpaku, vice president of public policy at Lyft.

Racial profiling argument

Uber spokesman Josh Gold said a cap on new licenses would reverse the progress made extending service to neighborhoods poorly served by traditional taxis.

That argument has gotten support from some civil rights activists like the Rev. Al Sharpton, who have long criticized the yellow cab industry for discrimination and profiling of minorities.

“They’re talking about putting a cap on Uber, do you know how difficult it is for black people to get a yellow cab in New York City?” Sharpton wrote on Twitter.

The level of upheaval in the industry hasn’t been seen on this scale since the first half of the 20th century, when the medallion system was put in place to deal with issues of competition, said Graham Hodges, a professor at Colgate University.

Flaws in that system, like racial profiling and inadequate demand, “made it easy for Uber, Lyft and the others to come in, say, ‘We’re going to provide a much better service,”‘ he said.

“That doesn’t mean those flaws couldn’t be remedied without destroying the system,” he said.