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

US Sentences 21 People in India Call Center Scam

The U.S. government has sentenced 21 people to jail terms for their involvement in a call center scam based in India that targeted U.S. victims.

The prison sentences for the convicted ranged from 4 to 20 years.

“The stiff sentences imposed this week represent the culmination of the first-ever, large scale, multijurisdiction prosecution targeting the India call center scam industry,” U.S. Attorney General Jeff Sessions said in a statement Friday.

Thousands defrauded

U.S. officials say the call center scam defrauded thousands of U.S. residents of hundreds of millions of dollars. Prosecutors say the Indian call centers used various telephone fraud schemes to defraud mainly vulnerable Americans, including the elderly and legal immigrants.

Justice Department officials say some of the schemes included impersonating employees of the Internal Revenue Service or the U.S. Citizenship and Immigration Services.

Officials say the callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately.

Victims were instructed to wire money or purchase stored value cards. Once a victim provided payment, the call centers turned to a network of U.S.-based “runners” who would quickly move the money by using anonymous reloadable cards.

India and US defendants

Prosecutors say Miteshkumar Patel, 42, of Illinois, was the head of a Chicago-based crew of “runners” and also coordinated directly with the Indian side of the conspiracy. He was given the longest prison term of the group — 20 years.

“This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public,” Sessions said.

The indictment for the case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy, and money laundering conspiracy. Those defendants have not yet been arraigned.

US Sentences 21 People in India Call Center Scam

The U.S. government has sentenced 21 people to jail terms for their involvement in a call center scam based in India that targeted U.S. victims.

The prison sentences for the convicted ranged from 4 to 20 years.

“The stiff sentences imposed this week represent the culmination of the first-ever, large scale, multijurisdiction prosecution targeting the India call center scam industry,” U.S. Attorney General Jeff Sessions said in a statement Friday.

Thousands defrauded

U.S. officials say the call center scam defrauded thousands of U.S. residents of hundreds of millions of dollars. Prosecutors say the Indian call centers used various telephone fraud schemes to defraud mainly vulnerable Americans, including the elderly and legal immigrants.

Justice Department officials say some of the schemes included impersonating employees of the Internal Revenue Service or the U.S. Citizenship and Immigration Services.

Officials say the callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately.

Victims were instructed to wire money or purchase stored value cards. Once a victim provided payment, the call centers turned to a network of U.S.-based “runners” who would quickly move the money by using anonymous reloadable cards.

India and US defendants

Prosecutors say Miteshkumar Patel, 42, of Illinois, was the head of a Chicago-based crew of “runners” and also coordinated directly with the Indian side of the conspiracy. He was given the longest prison term of the group — 20 years.

“This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public,” Sessions said.

The indictment for the case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy, and money laundering conspiracy. Those defendants have not yet been arraigned.

US Senators Drop Efforts to Cripple China’s ZTE

U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE. 

The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business. 

Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision.

Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days.

Lawmakers from both parties have been critical of President Trump over his decision to lift a ban on U.S. companies selling to ZTE.

Top Senate Democrat Chuck Schumer blasted Friday’s developments.

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump and the congressional Republicans who acted at his behest  have once again made President Xi and the Chinese Government the big winners,” he said in a statement.

Republican Senator Marco Rubio called dropping the provision “bad news” in a tweet Friday.ZTE is accused of selling sensitive technologies to Iran and North Korea, despite a U.S. trade embargo.

In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. 

However, Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.

The Commerce Department announced last week that it has formally lifted the ban on ZTE after the Chinese company complied with all terms of the settlement. 

Most of the world first heard of the dispute over ZTE in May after one of Trump’s tweets.

 

 

 

US Senators Drop Efforts to Cripple China’s ZTE

U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE. 

The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business. 

Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision.

Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days.

Lawmakers from both parties have been critical of President Trump over his decision to lift a ban on U.S. companies selling to ZTE.

Top Senate Democrat Chuck Schumer blasted Friday’s developments.

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump and the congressional Republicans who acted at his behest  have once again made President Xi and the Chinese Government the big winners,” he said in a statement.

Republican Senator Marco Rubio called dropping the provision “bad news” in a tweet Friday.ZTE is accused of selling sensitive technologies to Iran and North Korea, despite a U.S. trade embargo.

In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. 

However, Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.

The Commerce Department announced last week that it has formally lifted the ban on ZTE after the Chinese company complied with all terms of the settlement. 

Most of the world first heard of the dispute over ZTE in May after one of Trump’s tweets.

 

 

 

Democrats Want to Compel Interpreter to Testify About Helsinki Summit

U.S. Democratic lawmakers are trying to compel a government interpreter to testify about what was discussed during President Donald Trump’s one-on-one meeting with Russian leader Vladimir Putin in Helsinki, but legal analysts say that is not likely to happen — unless the president allows it.

Trump and Putin met privately for more than two hours at Monday’s Helsinki summit. Only interpreters were present for the meeting, and details of what was discussed remain unknown to anyone else.

Democrats want to compel the U.S. government interpreter, Marina Gross, to testify before lawmakers, while Republicans are blocking the move.

The call for Gross to testify raises questions concerning legality, executive privilege and the ethical code for interpreters who pride themselves on their discretion and confidentiality.

“There is no precedent for issuing a subpoena for the translator,” scholar William Pomeranz told VOA.

Pomeranz, deputy director of the Kennan Institute for Advanced Russian Studies at the Woodrow Wilson Center in Washington, said he did not expect the translator to be questioned by Congress, “especially because the intent of the [Trump-Putin] meeting was to be an off-the-record conversation.”

Subpoena request

Democrats say that they are concerned about what Trump may have said to Putin and that the circumstances of the summit are exceptional. They cite the fact that the Trump’s administration is already being investigated by special counsel Robert Mueller over Russia’s interference in the 2016 presidential election, and say the circumstances justify subpoenaing Trump’s interpreter.

The White House has been engulfed in controversy since the Helsinki summit, when Trump cast doubt on U.S. intelligence findings that Russia interfered in the 2016 election. Trump has since walked back his comments, saying he does believe U.S. intelligence conclusions.

Pomeranz said the summit “is still clouded in mystery in terms of what were the concrete results.”

He said, “President Putin has suggested there were certain agreements that emerged from the summit. Yet, the State Department and President Trump have not articulated them.”

The top Democrat on the House Intelligence Committee, Adam Schiff of California, formally requested Thursday that the committee issue a subpoena for Gross to testify, but he was overruled by Republicans who hold the majority in the House.

Democratic Representative Bill Pascrell Jr. of New Jersey also raised concerns about whether Trump could have used the summit to pursue his worldwide business interests.

“Given this history, the American people deserve to know if Trump used his position or this meeting with Putin to continue to pursue his own financial interests,” he wrote in a letter requesting that the House Committee on Oversight and Government Reform hear public testimony from Gross.

Executive privilege

Conservatives in the House are arguing that executive privilege shields a president’s interpreter from reporting to Congress, and many if not most legal scholars seem to agree.

While Congress has an oversight role over the executive branch, conservative lawmakers say that presidents should be able to meet with world leaders and speak candidly without interference from lawmakers.

They also warn that subpoenaing Gross would create a dangerous precedent that could hurt the state of U.S. diplomacy as well as future presidents of either party.

Legal scholars who expressed opinions said it’s likely that only Trump could permit Gross to tell anyone about what she heard. The White House has not said whether Trump has asked her to do that.

Interpreters’ code of ethics

The move by Democrats to compel Gross to testify also raised questions about the right of interpreters to adhere to their code of ethics, which bounds them to strict secrecy.

Interpreters say they view their ethics code of confidentiality similar to the lawyer-client privilege or the duty of priests not to disclose what penitents tell them during confession.

Interpreters also say that it can sometimes be difficult to recall the big picture of a conversation they have listened to after relying on short-term memory to interpret.

Pomeranz said the role of the translator is “focused simply on making the statements, not necessarily of the content of the discussions.”

“To be a simultaneous translator is a very difficult job and it doesn’t necessary mean you are in the position to remember the specific details of the conversation,” he said.

Gross is an employee of the State Department and has served as an interpreter to high-level U.S. government officials before. She was the interpreter for Laura Bush at the Russian resort of Sochi in 2008 and interpreted for former Secretary of State Rex Tillerson in Moscow in 2017.

VOA’s Sarah Williams and Pete Cobus contributed.to this report.

Democrats Want to Compel Interpreter to Testify About Helsinki Summit

U.S. Democratic lawmakers are trying to compel a government interpreter to testify about what was discussed during President Donald Trump’s one-on-one meeting with Russian leader Vladimir Putin in Helsinki, but legal analysts say that is not likely to happen — unless the president allows it.

Trump and Putin met privately for more than two hours at Monday’s Helsinki summit. Only interpreters were present for the meeting, and details of what was discussed remain unknown to anyone else.

Democrats want to compel the U.S. government interpreter, Marina Gross, to testify before lawmakers, while Republicans are blocking the move.

The call for Gross to testify raises questions concerning legality, executive privilege and the ethical code for interpreters who pride themselves on their discretion and confidentiality.

“There is no precedent for issuing a subpoena for the translator,” scholar William Pomeranz told VOA.

Pomeranz, deputy director of the Kennan Institute for Advanced Russian Studies at the Woodrow Wilson Center in Washington, said he did not expect the translator to be questioned by Congress, “especially because the intent of the [Trump-Putin] meeting was to be an off-the-record conversation.”

Subpoena request

Democrats say that they are concerned about what Trump may have said to Putin and that the circumstances of the summit are exceptional. They cite the fact that the Trump’s administration is already being investigated by special counsel Robert Mueller over Russia’s interference in the 2016 presidential election, and say the circumstances justify subpoenaing Trump’s interpreter.

The White House has been engulfed in controversy since the Helsinki summit, when Trump cast doubt on U.S. intelligence findings that Russia interfered in the 2016 election. Trump has since walked back his comments, saying he does believe U.S. intelligence conclusions.

Pomeranz said the summit “is still clouded in mystery in terms of what were the concrete results.”

He said, “President Putin has suggested there were certain agreements that emerged from the summit. Yet, the State Department and President Trump have not articulated them.”

The top Democrat on the House Intelligence Committee, Adam Schiff of California, formally requested Thursday that the committee issue a subpoena for Gross to testify, but he was overruled by Republicans who hold the majority in the House.

Democratic Representative Bill Pascrell Jr. of New Jersey also raised concerns about whether Trump could have used the summit to pursue his worldwide business interests.

“Given this history, the American people deserve to know if Trump used his position or this meeting with Putin to continue to pursue his own financial interests,” he wrote in a letter requesting that the House Committee on Oversight and Government Reform hear public testimony from Gross.

Executive privilege

Conservatives in the House are arguing that executive privilege shields a president’s interpreter from reporting to Congress, and many if not most legal scholars seem to agree.

While Congress has an oversight role over the executive branch, conservative lawmakers say that presidents should be able to meet with world leaders and speak candidly without interference from lawmakers.

They also warn that subpoenaing Gross would create a dangerous precedent that could hurt the state of U.S. diplomacy as well as future presidents of either party.

Legal scholars who expressed opinions said it’s likely that only Trump could permit Gross to tell anyone about what she heard. The White House has not said whether Trump has asked her to do that.

Interpreters’ code of ethics

The move by Democrats to compel Gross to testify also raised questions about the right of interpreters to adhere to their code of ethics, which bounds them to strict secrecy.

Interpreters say they view their ethics code of confidentiality similar to the lawyer-client privilege or the duty of priests not to disclose what penitents tell them during confession.

Interpreters also say that it can sometimes be difficult to recall the big picture of a conversation they have listened to after relying on short-term memory to interpret.

Pomeranz said the role of the translator is “focused simply on making the statements, not necessarily of the content of the discussions.”

“To be a simultaneous translator is a very difficult job and it doesn’t necessary mean you are in the position to remember the specific details of the conversation,” he said.

Gross is an employee of the State Department and has served as an interpreter to high-level U.S. government officials before. She was the interpreter for Laura Bush at the Russian resort of Sochi in 2008 and interpreted for former Secretary of State Rex Tillerson in Moscow in 2017.

VOA’s Sarah Williams and Pete Cobus contributed.to this report.

California High Court Rejects Proposed Measure to Divide State

In November, Californians will not have to decide whether the state should be partitioned.

The state Supreme Court ruled this week that a measure on partitioning the nation’s most populous state into three could not be put on the ballot for the November midterm elections.

In June, state election officials announced the proposed ballot measure had received enough signatures to appear on the ballot. Yet, the state’s highest judicial body ruled that splitting California would amount to a change in its Constitution, requiring the approval of the state legislature before voters go to the polls.

“Significant questions have been raised regarding the proposition’s validity,” the court said. The ruling also said, “We conclude that the potential harm in permitting the measure to remain on the ballot outweighs the potential harm in delaying the proposition to a future election.”

The measure was backed by California-based venture capitalist Tim Draper. He has long attempted to force a vote on similar measures to divvy up his home state.

“Three states will get us better infrastructure, better education and lower taxes,” Draper told the Los Angeles Times last year, after submitting his most recent proposal. “States will be more accountable to us and can cooperate and compete for citizens.”

A California environmental group, the Planning and Conservation League (PCL), opposed the measure.

“California’s Constitution rightfully ensures that voters have a voice in public policy through direct democracy,” Howard Penn, the PCL’s executive director, said in a statement. “If those constitutional safeguards mean anything, they should prevent a billionaire from circumventing the constitutionally required process for making such sweeping changes to our government.”

The high court gave Draper 30 days to respond to the ruling.

If such a measure to divide the state were to pass someday, it would most likely require approval from the U.S. Congress. No U.S. state has been divided since West Virginia broke off from Virginia in 1863, during the Civil War.

California High Court Rejects Proposed Measure to Divide State

In November, Californians will not have to decide whether the state should be partitioned.

The state Supreme Court ruled this week that a measure on partitioning the nation’s most populous state into three could not be put on the ballot for the November midterm elections.

In June, state election officials announced the proposed ballot measure had received enough signatures to appear on the ballot. Yet, the state’s highest judicial body ruled that splitting California would amount to a change in its Constitution, requiring the approval of the state legislature before voters go to the polls.

“Significant questions have been raised regarding the proposition’s validity,” the court said. The ruling also said, “We conclude that the potential harm in permitting the measure to remain on the ballot outweighs the potential harm in delaying the proposition to a future election.”

The measure was backed by California-based venture capitalist Tim Draper. He has long attempted to force a vote on similar measures to divvy up his home state.

“Three states will get us better infrastructure, better education and lower taxes,” Draper told the Los Angeles Times last year, after submitting his most recent proposal. “States will be more accountable to us and can cooperate and compete for citizens.”

A California environmental group, the Planning and Conservation League (PCL), opposed the measure.

“California’s Constitution rightfully ensures that voters have a voice in public policy through direct democracy,” Howard Penn, the PCL’s executive director, said in a statement. “If those constitutional safeguards mean anything, they should prevent a billionaire from circumventing the constitutionally required process for making such sweeping changes to our government.”

The high court gave Draper 30 days to respond to the ruling.

If such a measure to divide the state were to pass someday, it would most likely require approval from the U.S. Congress. No U.S. state has been divided since West Virginia broke off from Virginia in 1863, during the Civil War.

WhatsApp Makes Changes in India After Deadly Attacks

WhatsApp has announced changes for its 200 million users in India following the spread of viral messages via the app that resulted in deadly mob attacks.

India’s government has threatened to take WhatsApp to court, saying “…the medium used for such propagation cannot evade responsibility and accountability.”  The information technology ministry said, “If they remain mute spectators they are liable to be treated as abettors and thereafter face consequent legal action.”  

The Facebook-owned messaging app said it will limit Indian users’ ability to forward messages, allowing only five contacts at a time to receive them.

The firm said it will also remove the quick forward button placed next to media messages.

Both moves are designed to make stop the mass forwards that have resulted in the mob attacks.

India is WhatsApp’s largest market.

WhatsApp Makes Changes in India After Deadly Attacks

WhatsApp has announced changes for its 200 million users in India following the spread of viral messages via the app that resulted in deadly mob attacks.

India’s government has threatened to take WhatsApp to court, saying “…the medium used for such propagation cannot evade responsibility and accountability.”  The information technology ministry said, “If they remain mute spectators they are liable to be treated as abettors and thereafter face consequent legal action.”  

The Facebook-owned messaging app said it will limit Indian users’ ability to forward messages, allowing only five contacts at a time to receive them.

The firm said it will also remove the quick forward button placed next to media messages.

Both moves are designed to make stop the mass forwards that have resulted in the mob attacks.

India is WhatsApp’s largest market.

Pompeo: US Won’t Send Any Americans to Russia for Questioning

U.S. Secretary of State Mike Pompeo says the United States will not send Americans to Russia for questioning. Russian President Vladimir Putin offered to let U.S. investigators question officials in Moscow about Russia’s interference in U.S. 2016 elections if Russian investigators are allowed to question American officials. U.S. President Donald Trump called Putin’s proposal an “incredible offer.” But in an interview with VOA on Thursday, Pompeo rejected the idea. Zlatica Hoke reports.

Pompeo: US Won’t Send Any Americans to Russia for Questioning

U.S. Secretary of State Mike Pompeo says the United States will not send Americans to Russia for questioning. Russian President Vladimir Putin offered to let U.S. investigators question officials in Moscow about Russia’s interference in U.S. 2016 elections if Russian investigators are allowed to question American officials. U.S. President Donald Trump called Putin’s proposal an “incredible offer.” But in an interview with VOA on Thursday, Pompeo rejected the idea. Zlatica Hoke reports.

Trump Invites Putin to a Summit in US

U.S. President Donald Trump is inviting Russian President Vladimir Putin to a second summit meeting. The announcement came as the storm of criticism and confusion that followed the first summit is still making headlines and getting the attention of the U.S. Congress. Here to explain is VOA’s Carolyn Presutti at the White House.

Trump Invites Putin to a Summit in US

U.S. President Donald Trump is inviting Russian President Vladimir Putin to a second summit meeting. The announcement came as the storm of criticism and confusion that followed the first summit is still making headlines and getting the attention of the U.S. Congress. Here to explain is VOA’s Carolyn Presutti at the White House.

China Boosts Liquidity as Trade War Threatens Economy

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.

China Boosts Liquidity as Trade War Threatens Economy

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.

Rosenstein Defends Charging Foreign Agents US Can’t Arrest

The top law enforcement official overseeing the probe of Russian meddling in the 2016 election is defending the prosecution of foreign agents who may never see the inside of a U.S. courtroom.

Speaking Thursday at the Aspen Security Forum in Colorado, Deputy Attorney General Rod Rosenstein also said the Justice Department will notify the U.S. public when it identifies efforts by foreign government to target U.S. politics. Rosenstein unveiled a report identifying the major cyber threats that the U.S. faces.

“Exposing schemes to the public is an important way to neutralize them,” he said. “The American people have a right to know if foreign governments are targeting them with propaganda.”

He offered a rebuttal to criticism that charging foreign agents involved in cyber-attacks or covert campaigns to sow dissent is futile if they are unlikely to be extradited.

“That is a shortsighted view,” he said.

Indictments as deterrent

The debate has been sparked by the probe of special counsel Robert Mueller, who has indicted more than two dozen Russian nationals on charges related to Russia’s meddling in the election.

Rosenstein said such indictments can act as a deterrent.

“People who thought they were safely under the protection of foreign governments when they committed crimes against America sometimes later find themselves in federal prisons,” he said.

He added that at a minimum, the indictments impede the suspects from traveling to other countries that might extradite them. He said revealing the charges also serves to air the allegations to the U.S. public, bolstering confidence in the justice system.

More active approach

Rosenstein signaled a more active approach by the Justice Department to counter foreign influence and cyber operations. The report outlines how the department will work to expose the foreign efforts without damaging counter-intelligence efforts or wading into U.S. politics.

“The challenge calls for the application of neutral principles,” he said.

More broadly, the report identifies six categories of cyber threats and current efforts to counter them.

Rosenstein Defends Charging Foreign Agents US Can’t Arrest

The top law enforcement official overseeing the probe of Russian meddling in the 2016 election is defending the prosecution of foreign agents who may never see the inside of a U.S. courtroom.

Speaking Thursday at the Aspen Security Forum in Colorado, Deputy Attorney General Rod Rosenstein also said the Justice Department will notify the U.S. public when it identifies efforts by foreign government to target U.S. politics. Rosenstein unveiled a report identifying the major cyber threats that the U.S. faces.

“Exposing schemes to the public is an important way to neutralize them,” he said. “The American people have a right to know if foreign governments are targeting them with propaganda.”

He offered a rebuttal to criticism that charging foreign agents involved in cyber-attacks or covert campaigns to sow dissent is futile if they are unlikely to be extradited.

“That is a shortsighted view,” he said.

Indictments as deterrent

The debate has been sparked by the probe of special counsel Robert Mueller, who has indicted more than two dozen Russian nationals on charges related to Russia’s meddling in the election.

Rosenstein said such indictments can act as a deterrent.

“People who thought they were safely under the protection of foreign governments when they committed crimes against America sometimes later find themselves in federal prisons,” he said.

He added that at a minimum, the indictments impede the suspects from traveling to other countries that might extradite them. He said revealing the charges also serves to air the allegations to the U.S. public, bolstering confidence in the justice system.

More active approach

Rosenstein signaled a more active approach by the Justice Department to counter foreign influence and cyber operations. The report outlines how the department will work to expose the foreign efforts without damaging counter-intelligence efforts or wading into U.S. politics.

“The challenge calls for the application of neutral principles,” he said.

More broadly, the report identifies six categories of cyber threats and current efforts to counter them.

Cyberattacks on 2018 US Political Campaigns Already Underway

Hackers targeted the campaigns of at least three candidates running for Congress in the upcoming 2018 U.S. elections, but the attacks were detected and thwarted, a Microsoft executive said Thursday.

The attempted attacks tried to use a fake Microsoft domain as a landing page for phishing attacks, said Tom Burt, Microsoft vice president for customer security and trust. He refused to name which candidates were targeted, citing privacy concerns.

“They were all people who, because of their positions, might have been interesting targets from an espionage standpoint, as well as an election disruption standpoint,” Burt told an audience at the annual Aspen Security Forum in Aspen, Colorado.

He also did not identify the source of the phishing attacks, though the tactic was similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Burt said Microsoft coordinated with the U.S. government and was able to take down the fake domains. He also said none of the campaign staffers targeted by the phishing attacks were infected.

​More attacks are coming

Thursday’s revelation came in the wake of U.S. President Donald Trump’s news conference Monday in Helsinki, Finland, after his meeting with Russian President Vladimir Putin. Trump sided with Putin, supporting the Russian leader’s assertions that his country did not meddle with the 2016 U.S. presidential election.

Trump’s comments, which directly contradicted the findings of the U.S. intelligence community, have drawn harsh criticism from politicians, and former diplomatic and intelligence officials.

Current intelligence and security officials have warned repeatedly that not only was Russia responsible for meddling in the 2016 election, but that more attacks — both in the form of hacks and in the form of more subtle information operations — are coming.

Russia taking lead

“What we assessed and reassessed and have carefully gone over still stands,” U.S. Director of National Intelligence Dan Coats said of Russia’s efforts.

“It’s undeniable that the Russians are taking the lead on this,” Coats added, speaking during an appearance at the same security forum. “They are the ones who are trying to undermine our basic values, divide us with our allies.”

But U.S. and private sector officials say that, at least to this point, Russian efforts to influence the 2018 elections appear to be somewhat subdued.

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

New tools working

For now, some leading private sector technology and social media companies agree.

Facebook, which Russia used to run ads and false news stories as part of its 2016 influence campaign, thinks some of that could be related to more awareness and crackdowns on the fake accounts Russian-linked operatives had been using.

“The new tools that would identify and remove fake accounts like the IRA [Russia’s Internet Research Agency] was running, combined with the new requirements for transparency in advertising, are such that I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said.

“But we are watching for that activity,” Bickert said.

Microsoft’s Burt is also cautious, despite his experts “not seeing the same level of activity by the Russian activity groups” as they did two years ago.

“It doesn’t mean we’re not going to see it,” he said. “There’s a lot of time left.”

“I think we should all be prepared, given that capability and will, that they’ll do it again,” U.S. Homeland Security Secretary Kirstjen Nielsen warned Thursday. “We would be foolish to think they’re not.”

Cyberattacks on 2018 US Political Campaigns Already Underway

Hackers targeted the campaigns of at least three candidates running for Congress in the upcoming 2018 U.S. elections, but the attacks were detected and thwarted, a Microsoft executive said Thursday.

The attempted attacks tried to use a fake Microsoft domain as a landing page for phishing attacks, said Tom Burt, Microsoft vice president for customer security and trust. He refused to name which candidates were targeted, citing privacy concerns.

“They were all people who, because of their positions, might have been interesting targets from an espionage standpoint, as well as an election disruption standpoint,” Burt told an audience at the annual Aspen Security Forum in Aspen, Colorado.

He also did not identify the source of the phishing attacks, though the tactic was similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Burt said Microsoft coordinated with the U.S. government and was able to take down the fake domains. He also said none of the campaign staffers targeted by the phishing attacks were infected.

​More attacks are coming

Thursday’s revelation came in the wake of U.S. President Donald Trump’s news conference Monday in Helsinki, Finland, after his meeting with Russian President Vladimir Putin. Trump sided with Putin, supporting the Russian leader’s assertions that his country did not meddle with the 2016 U.S. presidential election.

Trump’s comments, which directly contradicted the findings of the U.S. intelligence community, have drawn harsh criticism from politicians, and former diplomatic and intelligence officials.

Current intelligence and security officials have warned repeatedly that not only was Russia responsible for meddling in the 2016 election, but that more attacks — both in the form of hacks and in the form of more subtle information operations — are coming.

Russia taking lead

“What we assessed and reassessed and have carefully gone over still stands,” U.S. Director of National Intelligence Dan Coats said of Russia’s efforts.

“It’s undeniable that the Russians are taking the lead on this,” Coats added, speaking during an appearance at the same security forum. “They are the ones who are trying to undermine our basic values, divide us with our allies.”

But U.S. and private sector officials say that, at least to this point, Russian efforts to influence the 2018 elections appear to be somewhat subdued.

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

New tools working

For now, some leading private sector technology and social media companies agree.

Facebook, which Russia used to run ads and false news stories as part of its 2016 influence campaign, thinks some of that could be related to more awareness and crackdowns on the fake accounts Russian-linked operatives had been using.

“The new tools that would identify and remove fake accounts like the IRA [Russia’s Internet Research Agency] was running, combined with the new requirements for transparency in advertising, are such that I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said.

“But we are watching for that activity,” Bickert said.

Microsoft’s Burt is also cautious, despite his experts “not seeing the same level of activity by the Russian activity groups” as they did two years ago.

“It doesn’t mean we’re not going to see it,” he said. “There’s a lot of time left.”

“I think we should all be prepared, given that capability and will, that they’ll do it again,” U.S. Homeland Security Secretary Kirstjen Nielsen warned Thursday. “We would be foolish to think they’re not.”

Trump Administration Wants to Scrap Some Species Protection

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.

Trump Administration Wants to Scrap Some Species Protection

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.

US Seen Receiving Frosty Reception at G-20 Meeting

The financial leaders of the world’s 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other’s goods.

The United States will seek to persuade Japan and the European Union to join it in taking a more aggressive stance against Chinese trade practices at the G-20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official who spoke on condition on anonymity.

But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth.

“U.S. trading partners are unlikely to be in a conciliatory mood,” said Eswar Prasad, international trade professor at Cornell University and former head of the International Monetary Fund’s China Division. “[U.S.] hostile actions against long-standing trading partners and allies have weakened its economic and geopolitical influence.”

At the close of the last G-20 meeting in Argentina in March, the financial leaders representing 75 percent of world trade and 85 percent of gross domestic product released a joint statement that rejected protectionism and urged “further dialogue,” to little concrete effect.

Since then, the United States and China have slapped tariffs on $34 billion of each other’s imports and U.S. President Donald Trump has threatened further tariffs on $200 billion worth of Chinese goods unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

Trump has said the U.S. tariffs aim to close the $335 billion annual U.S. trade deficit with China.

U.S. Treasury Minister Steven Mnuchin has no plans for a bilateral meeting with his Chinese counterpart in Buenos Aires, a U.S official said this week.

Growth concerns

Rising trade tensions have led to concerns within the Japanese government over currency volatility, said a senior Japanese G-20 official who declined to be named. Such volatility could prompt an appreciation in the safe-haven yen and threaten Japanese exports.

Trump’s metals tariffs prompted trade partners to retaliate with their own tariffs on U.S. goods ranging from whiskey to motorcycles. The United States has said it will challenge those tariffs at the World Trade Organization.

The EU finance ministers signed a joint text last week that will form their mandate for this weekend’s meeting, criticizing “unilateral” U.S. trade actions, Reuters reported. The ministers will stress that trade restrictions “hurt everyone,” a German official said.

In a briefing note prepared for the G-20 participants, the International Monetary Fund said if all of Trump’s threatened tariffs — and equal retaliation — went into effect, the global economy could lose up to 0.5 percent of GDP, or $430 billion, by 2020.

Global growth also may have peaked at 3.9 percent for 2018 and 2019, and downside risks have risen due to the tariff spat, the IMF said.

“While all countries will ultimately be worse off in a trade conflict, the U.S. economy is especially vulnerable,” IMF Managing Director Christine Lagarde wrote in a blog post. “Policymakers can use this G-20 meeting to move past

self-defeating tit-for-tat tariffs.”

Trade is not on host country Argentina’s published agenda for the July 21-22 ministerial, which focuses on the “future of work” and infrastructure finance. But it will likely be discussed during a slot devoted to risks facing the global

economy, much as in March, according to an Argentine official involved in G-20 preparations, who asked not be named.