Being black and working in the tech industry can be an isolating experience. But at the Afrotectopia festival in New York, it’s what everyone has in common. Tina Trinh meets with the creative people exploring the intersection of race and technology.
…
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 Core Capital Goods Orders, Shipments Jump in February
New orders for key U.S.-made capital goods rebounded more than expected in February after two straight monthly declines and shipments surged, which could temper expectations of a sharp slowdown in business spending on equipment in the first quarter.
The Commerce Department’s report on Friday could prompt economists to raise their economic growth estimates for the first three months of the year. They were slashed last week after data showed retail sales fell in February for the third month in a row.
The Federal Reserve on Wednesday painted an upbeat picture of the economy when it raised interest rates and forecast at least two more increases for 2018.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 1.8 percent last month. That was the biggest gain in five months and followed a downwardly revised 0.4 percent decrease in January.
Economists polled by Reuters had forecast those orders rising only 0.8 percent in February after a previously reported 0.3 percent decline in January. Core capital goods orders increased 7.4 percent on a year-on-year basis.
Shipments of core capital goods increased 1.4 percent last month, the biggest advance since December 2016, after an upwardly revised 0.1 percent gain in January. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.
They were previously reported to have slipped 0.1 percent in January. Business spending on equipment powered ahead in 2017 as companies anticipated a hefty reduction in the corporate income tax rate. The Trump administration slashed that rate to 21 percent from 35 percent effective in January.
U.S. financial markets were little moved by the data as investors worried that President Donald Trump’s announcement on Thursday of tariffs on up to $60 billion of Chinese goods could start a global trade war.
Prices of U.S. Treasuries were mixed while U.S. stock index futures were largely flat. The dollar fell against a basket of currencies.
Strong business spending
The surge in core capital goods orders in February suggests further gains. There had been concerns spending could slow sharply after double-digit growth in the past quarters.
Investment in equipment is likely to be bolstered by robust business confidence, strengthening global economic growth and a weakening dollar, which is boosting demand for U.S. exports.
That is helping to support manufacturing, which accounts for about 12 percent of U.S. economic activity.
The strength in core capital goods shipments, together with a surge in industrial production in February, could help offset the impact of soft consumer spending on first-quarter growth.
The Atlanta Federal Reserve is forecasting gross domestic product increasing at a 1.8 percent annualized rate in the first three months of the year.
The government reported last month that the economy grew at a 2.5 percent pace in the fourth quarter. However, revisions to December data on construction spending, factory orders and wholesale inventories have suggested the fourth-quarter growth estimate could be raised to a 3.1 percent pace. The government will publish its third GDP estimate on Wednesday.
Last month, orders for machinery soared 1.6 percent. There were also hefty increases in orders of primary metals and electrical equipment, appliances and components.
Orders for computers and electronic products fell 0.2 percent, with bookings for communications equipment recording their biggest drop since December 2015.
Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, vaulted 3.1 percent last month as demand for transportation equipment soared 7.1 percent.
That followed a 3.5 percent tumble in January. Orders for motor vehicles and parts increased 1.6 percent last month after edging up 0.1 percent in January.
…
Russia Eyes Restrictions on US Imports in Response to Tariffs
Russia will likely prepare a list of restrictions on imported products from the United States in response to U.S. tariffs on steel and aluminum, Moscow’s trade ministry said on Friday, according to Interfax news agency.
The announcement came after China threatened to retaliate to U.S. President Donald Trump’s measures, stoking fears of a looming global trade war.
“We will prepare our position, submit it to the Economy Ministry and apply to the WTO [the World Trade Organization],” Russia’s Deputy Trade Minister, Viktor Yevtukhov, said, according to Interfax.
“We will probably prepare proposals on the response measures. Restrictions against the American goods. I think that all countries will follow this path,” Yevtukhov added.
The United States has said the tariffs are needed to protect its national security and therefore do not need to be cleared by the WTO. Many trade experts disagree saying they fall under the jurisdiction of the Geneva-based global trade body.
Russian steel and aluminum producers have been playing down the potential impact of the U.S. tariffs. But Russia’s Trade Ministry said there would be an impact.
Russian steel and aluminum producers may lose $2 billion and $1 billion, respectively, from the U.S. tariffs introduction, Yevtukhov said, citing preliminary estimates for the Trade Ministry. It was not clear whether he was referring to annual losses.
China’s commerce ministry said on Friday that the country was planning measures against up to $3 billion of U.S. imports to balance the steel and aluminum tariffs, with a list of 128 U.S. products that could be targeted.
…
McCain’s Absence Weighs on US Senate Colleagues
At a time when the norms of American political discourse are being rewritten and some democratic institutions are undergoing a stress test, Republican Senator John McCain’s absence is keenly felt on Capitol Hill and beyond, fellow senators across the political spectrum told VOA.
“We miss him terribly,” independent Angus King of Maine said. “His voice is so clear and so well-grounded. He’s the conscience of the nation right now.”
“We miss his leadership,” North Carolina Republican Thom Tillis said. “If you think about Senator McCain — his independence, his historic maverick stance — he stretches everybody’s thinking.”
“He is a force of conviction and conscience,” Democrat Richard Blumenthal of Connecticut said, adding that McCain is particularly needed on matters pertaining to Russia.
“The president’s [Donald Trump’s] abject failure to defend our national security interests against the Russians — John McCain’s voice would carry such weight. He is just a force of nature when it comes to our national defense and security,” Blumenthal said.
Longtime senator
McCain, who has represented Arizona in the Senate since 1987, has been absent since December while receiving treatment for brain cancer. His office is not predicting when or whether he might return.
Known for fiery floor speeches, McCain’s public communication in recent months has come via Twitter. He recently defended Robert Mueller, the special counsel in the Russia probe, and blasted Trump’s outreach to his Russian counterpart.
“An American president does not lead the Free World by congratulating dictators on winning sham elections. And by doing so with [Russian President] Vladimir Putin, President Trump insulted every Russian citizen who was denied the right to vote in a free and fair election,” McCain tweeted.
Such statements earn particular praise from Senate Democrats.
“We’re grappling with whether we cozy up to a foreign adversary,” Virginia Democrat Tim Kaine said. “He has a gravitas that is in short supply. The Senate could use more John McCains, not fewer.”
Republicans are more apt to laud McCain’s leadership on national defense as chairman of the Senate Armed Services Committee.
“During Senate debates, like earlier this week on our role in Yemen, he ordinarily would be in the thick of that,” the Senate’s No. 2 Republican, John Cornyn of Texas, said. “These days it seems like the loudest voice is the one people listen to. John McCain has credibility because of his experience and his passion for national security that very few people can compete with.”
Oklahoma Republican James Inhofe has led the Armed Services Committee in McCain’s absence and is the first to acknowledge he has big shoes to fill, taking over from a man who fought in the Vietnam War, endured more than five years as a prisoner of war, and rose to become his party’s presidential nominee in 2008.
“There is no one [currently serving in the Senate] who has a background like he has,” Inhofe said. “There is something about the sacrifices he has made that sets him apart and beyond the rest of us. I know the things he went through that I didn’t go through.”
Senate votes
Without McCain, the Republican Party’s 51-seat Senate majority has effectively been reduced to 50 in the 100-member chamber. But sources close to Majority Leader Mitch McConnell of Kentucky noted that missing a member has not altered the outcome of any major vote so far this year.
“One senator’s absence on our side is not affecting our workload on any of the issues,” a McConnell aide said.
McCain’s votes have been but one element of his impact on Capitol Hill, according to senators of both parties.
“It goes beyond his vote,” Tillis said. “If you listen to him, sometimes you change your mind. Every once in a while, you try to change his, but I think he’s got a higher score [in changing minds].”
“John McCain calls it the way he sees it. He has a strong moral compass and a real love for this country,” Maryland Democrat Ben Cardin said. “We disagree on a lot of issues, and we agree on a lot of issues. Great leader and a person you could always rely upon to stand by what’s right for our country. Not what’s popular, but what’s right.”
Medical experts say the prognosis is grim for the aggressive form of brain cancer McCain is battling — something many of his colleagues in the Senate find difficult to acknowledge.
“I just wish he were here. I’m still counting on seeing him again here,” Blumenthal said.
“He’s a fighter. I hold out hope that he’ll be back strong as ever,” Cardin said.
On March 18, McCain’s daughter, Meghan McCain, tweeted what appears to be the most recent photo of her father.
…
Conservative Bolton Has Long Been a Trump Favorite
John Bolton, chosen by President Donald Trump late Thursday to replace H.R. McMaster as national security adviser, is a career lawyer and diplomat who has long been on the president’s short list to join the administration.
The lifelong conservative has taken hawkish public stances on such issues as North Korea’s nuclear program. In February, he told VOA’s Korean service that Pyongyang’s recent overtures aimed at renewing talks on the issue were “simply a continuation of their propaganda strategy. I mean, we’ve been down that road several times before, and it’s failed every time.”
Bolton has also been critical of South Korea’s “sunshine policy” regarding the North.
“I think we’ve run out of time” in the effort to prevent Pyongyang from developing nuclear weapons that could hit the United States, he told VOA. But rather than the U.S. taking defensive action, he said, he hoped the U.S. could persuade China “to do something that might eliminate the need for it.”
When questioned about a possible role in the Trump administration, however, Bolton kept mum. “I never comment on those kinds of questions,” he said.
At present, Bolton is a senior fellow at the conservative American Enterprise Institute, a senior adviser for a capital management firm, and a Fox News commentator. He is involved with several conservative policy institutes and lobbying groups, including the National Rifle Association, and he serves on the board of directors for EMS Technologies, a Georgia wireless company that has been a subcontractor on Department of Defense projects.
Bolton served in the presidential administrations of Ronald Reagan, George H.W. Bush and George W. Bush, and held roles in the Justice and State departments, making use of his legal and security expertise.
Most recently, he served as the 25th U.S. ambassador to the United Nations under the George W. Bush administration.
Critical of U.N.
Although he was a U.N. ambassador, Bolton has openly criticized the international organization as ineffective. His tenure at the United Nations lasted from August 2005 to December 2006. His was a recess appointment, meaning he did not have to undergo a Senate confirmation process. Bolton left his position when the appointment ended; he was seen as unlikely to win confirmation by the Democratic-majority Senate that took office in January 2007.
A public figure since the 1980s, Bolton is known for arguing against enforcement of a U.N. biological weapons convention in 2001, saying the agreement would put U.S. national security at risk by opening suspected U.S. weapons sites to inspections.
In a 2003 speech while serving in an arms control and international security post in the State Department, Bolton described North Korean leader Kim Jong Il as a “tyrannical dictator” and added that for North Koreans under Kim’s leadership, “life is a hellish nightmare.”
Bolton has said in a memoir that his “happiest moment” at the State Department was removing U.S. support from the Rome Statute that set up the International Criminal Court.
In 2009, Bolton proposed a solution to the Israeli-Palestinian conflict in which Gaza would be placed under Egyptian control and the West Bank would become part of Jordan.
Bolton has publicly considered running for president but has never actively campaigned. He has long been a Trump favorite and was considered for the position of national security adviser before it went to H.R. McMaster in February 2017. The national security adviser’s position does not require Senate confirmation.
VOA’s Korean service contributed to this report.
…
Trump Issued Summons for Lawsuit on Possible Constitutional Violation
U.S. President Donald Trump has been issued a summons by the attorneys general of the District of Columbia and the neighboring state of Maryland, alleging his business activities are violating a clause of the U.S. Constitution.
The summons issued earlier this week is addressed to Trump in both “his official capacity and his individual capacity.”
The lawsuit alleges that representatives from foreign governments who stay at Trump’s hotels constitute a violation of the Emoluments Clause of the Constitution because the money they pay for lodging constitutes a gift to the president from a foreign government. Such gifts to the president are prohibited unless they are approved by Congress.
It also alleges that local businesses suffer because important foreign visitors may opt to stay at a Trump property as a means of currying favor with the president.
The president’s legal representatives have three weeks to respond.
A New York court dismissed a similar case in December, saying the issue brought by the watchdog group Citizens for Responsibility and Ethics was something Congress ought to address, rather than the courts.
That case was appealed in February.
Maryland Attorney General Brian Frosh told the Associated Press in February that this is the first time anyone has tried to sue a president as an individual for violating the Constitution’s Emoluments Clause.
When Trump took office, he failed to divest himself completely from his business interests, but handed over control of the businesses to his adult children.
…
Toys R Us Founder Charles Lazarus Dies at 94
Just a week after the empire he started announced it is shutting down, Toys R Us founder Charles Lazarus died at 94.
“There have been many sad moments for Toys R Us in recent weeks and none more heartbreaking than today’s news about the passing of our beloved founder,” the company said Thursday.
No cause of death was given.
Lazarus, a World War II veteran, started Toys R Us in 1948 as a single store in Washington, D.C., selling baby furniture.
At customer requests, he soon expanded his line to include toys and began opening large stores the size of supermarkets, devoted to toys and bicycles.
Toys R Us and its massive selection became a favorite of suburban American families.
Toys R Us opened stores all over the world before Lazarus stepped down as the head of the company in 1994.
In recent years, Toys R Us found itself struggling to compete with other large stores, especially with the onslaught of such online retailers as Amazon.
It declared bankruptcy last year, and announced last week it was shutting down its remaining stores.
…
Son of US Professor Detained by North Korea Hopes Summit Will See Father Released
The son of a U.S. citizen detained in North Korea is hoping against hope that his father will be released in conjunction with the unexpected summit between President Donald Trump and North Korean leader Kim Jong Un.
“I’m thankful that President Trump is going to have this summit. I’m thankful for his work and what he’s doing. I’m hoping the issue of my dad and other detainees would be brought up,” said Sol Kim in an interview with Voice of America’s Korean Service on Wednesday.
His father, Kim Sang Duk, whose American name is Tony Kim, has been detained in North Korea since April 22, 2017 when he was arrested at Pyongyang International Airport. North Korean state media reported that Kim had been arrested for “committing criminal acts of hostility aimed to overturn” the country and he was held in custody pending a “detailed investigation into his crime.”
Last week’s surprise Stockholm meeting between North Korean Foreign Minister Ri Yong Ho and his Swedish counterpart, Foreign Minister Margot Wallstrom, set off speculation that Sweden would be a possible location for the summit between Trump and Kim Jong Un.
The meeting also brought the issue of Tony Kim and two other Americans to the fore as Sweden is thought to be negotiating with North Korea for release of the U.S. detainees. Sweden has maintained relations with North Korea since 1973 and is one of the few Western countries with an embassy in Pyongyang. It provides consular services for the U.S. in North Korea.
However, State Department spokesperson Heather Nauert said on Wednesday “there’s nothing under way” although seeking the detainees release is “a high priority for this administration.”
Sol Kim said he has not heard anything from the State Department about his father’s possible return.
Sol Kim and his family members and friends have been sending letters to Tony Kim via the State Department, hoping that, somehow, the letters would wind up with the Swedish Embassy in Pyongyang for delivery.
“But I think the letters have not gone [to him] … We just don’t know,” Sol Kim said.
Accountant turned professor
Tony Kim, a former accountant turned professor, had been in North Korea teaching international finance and management to students at Pyongyang University of Science and Technology (PUST), the only private university in the country.
He also taught at PUST’s affiliate institution in China, the Yanbian University of Science and Technology (YUST) in Yanji, for more than 15 years. While at the Yanbian University, the 59-year-old professor made numerous trips to North Korea to teach at PUST after it opened in 2010.
PUST was founded by an evangelical Christian and funded from outside North Korea after the regime authorized the Northeast Asia Foundation for Education and Culture to establish PUST. The school has more than sixty foreign faculty members from China, the U.S., Canada, the U.K., and other European countries, according to its website.
Sol Kim, a 27-year-old graduate student in Southern California, visited North Korea as his father”s teaching assistant.
“I got to see students study. … I got to spend time playing sports after class time. We’d eat and share meals together,” Sol Kim said. “They were very curious. They worked hard. It was a positive experience.”
The Olympics thaw
Sol Kim began speaking out about getting his dad released as tensions began thawing on the Korean Peninsula during the Winter Olympics.
When he heard about the summit between the U.S. and North Korea, Sol Kim ramped up his efforts to get his father released. He talks to the State Department every week. He’s posted on YouTube and launched #USA3.
“I think the response was good. I don’t know how many people read but people would repost or retweet, sharing with their friends,” said Sol Kim.
“They are encouraging for me. I’m not … doing this to get millions and millions of views,” he said. “But the fact that people took the time to share and hear the messages … was encouraging.”
Sol Kim has messages for his father, ones he hopes reach the elder Kim … somehow: “We miss him a lot. I love him. We want him to know that he’ll be becoming a grandpa soon. I look forward to seeing him again.”
The last time he had word of his father was when Joseph Yun, the U.S. special representative for North Korea policy who retired early this month, visited North Korea in June 2017 to secure the release of Otto Warmbier, an American college student who died shortly after his release in a comatose state. Warmbier’s death prompted Trump to issue a ban on U.S. citizens traveling to North Korea.
Two other U.S. citizens, all ethnic Koreans Kim Hak Song and Kim Dong Chul are also detained in North Korea on charges of conducting anti-state activities to overthrow the North Korean government.
Christy Lee contributed to this report which originated on VOA’s Korean Service.
…
Zuckerberg Apology Fails to Quiet Facebook Storm
A public apology by Facebook chief Mark Zuckerberg failed Thursday to quell outrage over the hijacking of personal data from millions of people, as critics demanded that the social media giant go much further to protect user privacy.
Speaking out for the first time about the harvesting of Facebook user data by a British firm linked to Donald Trump’s 2016 campaign, Zuckerberg admitted Wednesday to betraying the trust of its 2 billion users and promised to “step up.”
Vowing to stop data leaking to outside developers and to give users more control over their information, Zuckerberg also said he was ready to testify before US lawmakers — which a powerful congressional committee promptly asked him to do.
With pressure ratcheting up on the 33-year-old CEO over a scandal that has wiped $60 billion off Facebook’s value, the initial response suggested his promise of self-regulation had failed to convince critics he was serious about change.
“Frankly I don’t think those changes go far enough,” Matt Hancock, Britain’s culture and digital minister, told the BBC.
“It shouldn’t be for a company to decide what is the appropriate balance between privacy and innovation and use of data,” he said. “The big tech companies need to abide by the law, and we are strengthening the law.”
In Brussels, European leaders were sending the same message as they prepared to push for tougher safeguards on personal data online, while Israel became the latest country to launch an investigation into Facebook.
The data scandal erupted at the weekend when a whistle-blower revealed that British consultant Cambridge Analytica had created psychological profiles on 50 million Facebook users via a personality prediction app, developed by a researcher named Aleksandr Kogan.
The app, downloaded by 270,000 people, scooped up their friends’ data without consent — as was possible under Facebook’s rules at the time.
‘Breach of trust’
Facebook said it discovered last week that Cambridge Analytica might not have deleted the data as it certified, although the British firm denied wrongdoing.
“This was a major breach of trust and I’m really sorry that this happened,” Zuckerberg said in an interview with CNN, after publishing a blog post outlining his response to the scandal.
“Our responsibility now is to make sure this doesn’t happen again.”
With Facebook already under fire for allowing fake news to proliferate during the U.S. election, Zuckerberg also said “we need to make sure that we up our game” ahead of midterm congressional elections in November, in which American officials have warned Russia can be expected to meddle as it did two years ago.
Cambridge Analytica has maintained it did not use Facebook data in the Trump campaign, but its now-suspended CEO boasted in secret recordings that his company was deeply involved in the race.
WATCH: Facebook Under Fire for Data Misuse
And U.S. special counsel Robert Mueller, who is investigating Russian interference in the 2016 presidential race, is reportedly looking into the consultant’s role in the Trump effort.
‘Abused and misused’
Zuckerberg’s apology followed a dayslong stream of damaging accusations against the world’s biggest social network, which now faces probes on both sides of the Atlantic.
In Washington on Thursday, leaders of the House Energy and Commerce Committee urged Zuckerberg to testify without delay, saying a briefing a day earlier by Facebook officials had left “many questions” unanswered.
“We believe, as CEO of Facebook, he is the right witness to provide answers to the American people,” said a statement from the panel, calling for a hearing “in the near future.”
America’s Federal Trade Commission is reportedly investigating Facebook over the scandal, while Britain’s information commissioner is seeking to determine whether it did enough to secure its data.
On Thursday, Israel’s privacy protection agency said it had informed Facebook of a probe into the Cambridge Analytica revelations, and was looking into “the possibility of other infringements of the privacy law regarding Israelis.”
Meanwhile, European Union leaders were due to press digital giants “to guarantee transparent practices and full protection of citizens’ privacy and personal data,” according to a draft summit statement obtained by AFP.
A movement to quit the social network has already gathered momentum — with the co-founder of the WhatsApp messaging service among those vowing to #deletefacebook — while a handful of lawsuits risk turning into class actions in a costly distraction for the company.
World Wide Web inventor Tim Berners-Lee described it as a “serious moment for the web’s future.”
“I can imagine Mark Zuckerberg is devastated that his creation has been abused and misused,” tweeted the British scientist.
“I would say to him: You can fix it. It won’t be easy but if companies work with governments, activists, academics and web users, we can make sure platforms serve humanity.”
…
Trump Launches Action Toward Imposing Tariffs Against Chinese Imports
U.S. President Donald Trump signed a presidential memorandum on Thursday initiating actions to consider imposing tariffs on a long list of nearly 1,300 Chinese imported products worth about $60 billion.
The move could limit China’s ability to invest in the U.S. technology industry, setting the stage for a possible trade war with Beijing.
The decision to take action is a result of an investigation conducted by the U.S. trade representative to determine whether Beijing’s trade practices may be “unreasonable or discriminatory” and may be “harming American intellectual property rights, innovation or technology development.” After a seven-month investigation, the USTR’s office found the policies were in violation.
At the signing ceremony, Trump said, “We have a tremendous intellectual property theft going on.”
He said the U.S. wants reciprocal trade and tariff deals with China and other countries. “If they charge us, we charge them the same thing,” Trump said at the White House ceremony.
He also blamed the “unfair Chinese trade practices” for the U.S. trade deficit with China, which has reached a record $375 billion on his watch.
Campaign promises
Trump campaigned on promises to bring down America’s massive trade deficit — $566 billion last year — by rewriting trade agreements and cracking down on what he called abusive commercial practices by U.S. trading partners.
The investigation concluded that China “uses foreign ownership restrictions, including joint venture requirements, equity limitations and other investment restrictions to require or pressure technology transfer from U.S. companies to Chinese entities.”
Trade associations representing a wide range of the business community said they largely agreed with criticism of China’s intellectual property practices, but criticized the tariffs as a poor remedy that could ultimately harm U.S. businesses and raise prices for consumers.
Earlier this week, some of the largest American retailers and tech companies, including Walmart and Apple, urged Trump to carefully consider the impact the tariffs would have on consumer prices.
“As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices,” a coalition of more than 40 business groups, led by the Information Technology Industry Council, said Sunday in a letter to the president.
“As the industry closest to consumers, retailers know firsthand how high tariffs will hurt American families,” the letter continued.
The prospect of a trade war sent markets plummeting, with the Dow Jones industrial average closing down 724 points, almost 3 percent, its biggest drop in six weeks.
Global trade conflagration
Bloomberg Economics estimated a global trade conflagration could wipe $470 billion off the world economy by 2020.
As news of the impending announcement spread, China announced it was preparing tariffs of its own on U.S. soybeans, sorghum and live hogs.
“China will not sit idly to see its legitimate rights damaged and must take all necessary measures to resolutely defend its legitimate rights,” the Commerce Ministry in Beijing said in a statement on its website.
The Trump administration has said it is simply taking long overdue action following years of unfair Chinese trading practices that they argue previous administrations have insufficiently countered.
Peter Navarro, Trump’s hawkish top trade adviser, said that the administration had decided on the tariffs in lockstep and that the U.S. had opted to take tariff actions after dialogues with China over the past 15 years failed to change Chinese behavior significantly.
The tariffs will be subject to a 15-day comment period before the U.S. trade representative finalizes the move. Other measures, including new restrictions on Chinese investment in the U.S., will take longer.
…
Stocks Dive on Trade War Fears After China Sanctions
Stocks plunged Thursday after the Trump administration slapped sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world’s largest economies would escalate.
The planned sanctions include tariffs on $48 billion worth of Chinese imports as well as restrictions on Chinese investments. Trump said he’s taking those steps in response to theft of American technology, and the Chinese government said it will defend itself. Investors are worried that trade tensions would hurt U.S. companies and harm the world economy.
On Thursday they fled stocks and bought bonds, which sent bond prices higher and yields lower. With interest rates falling, banks took some of the worst losses. Technology and industrial companies, basic materials makers and health care companies also fell sharply.
Peter Donisanu, an investment strategy analyst for the Wells Fargo Investment Institute, said the risk of a damaging trade war is still low because the Trump administration is targeting specific goods that aren’t central to China’s economy. That could change if it puts tariffs on products like electronics or appliances imported from China.
“If the Trump administration really wanted to hurt China and start a trade war, then they would go after those larger sectors,” he said. Still, Donisanu said that after last year’s rally, investors are looking for new reasons to feel optimistic about stocks. With trade tensions in focus over the last month, they’ve had trouble finding any.
The S&P 500 index skidded 68.24 points, or 2.5 percent, to 2,643.69. The Dow Jones industrial average sank 724.42 points, or 2.9 percent, to 23,957.89. The Nasdaq composite gave up 178.61 points, or 2.4 percent, to 7,166.68. The Russell 2000 index of smaller-company stocks lost 35.43 points, or 2.2 percent, to 1,543.87.
Construction equipment maker Caterpillar fell $8.90, or 5.7 percent, to $146.90, for its worst loss since mid-2016. Aerospace company Boeing slid $17.49, or 5.2 percent, to $319.61.
Investors also sold some of the market’s biggest recent winners. Among technology companies, Microsoft fell $2.69, or 2.9 percent, to $89.79 and Alphabet, Google’s parent company, fell $40.85, or 3.7 percent, to $1,053.15. Online retailer Amazon slid $36.94, or 2.3 percent, to $1,544.92.
Recent tariffs
Earlier this month the Trump administration ordered tariffs on imported steel and aluminum, and stocks dropped as investors worried about the possibility of tougher restrictions on international trade and smaller profits for corporations.
Their fears eased when the administration said some countries will be exempt from the tariffs. That continued Thursday, as U.S. Trade Representative Robert Lighthizer said the tariffs won’t apply to the European Union, Canada, Mexico, Argentina, Brazil and Australia.
Donisanu, of Wells Fargo, said the Trump administration isn’t hostile to trade necessarily, but wants to get other countries to revise the terms of America’s trade deals.
“This is probably intended to get China to get more serious in discussions around violations of intellectual property rights and addressing those issues,” he said.
Bond prices climbed, sending yields lower. The yield on the 10-year Treasury note slipped to 2.82 percent from 2.88 percent. Falling bond yields are bad for banks because they force interest rates on loans lower. Bank of America lost $1.32, or 4.1 percent, to $30.55 and JPMorgan Chase gave up $4.79, or 4.2 percent, to $109.95.
Utility companies and real estate investment trusts moved higher. When bond yields decline, investors often bid up those stocks and others that pay big dividends.
The decline in rates comes a day after the Federal Reserve raised interest rates and said the U.S. economy and the job market continued to improve over the last two months. The Fed expects to raise rates three times this year, although some investors think a fourth increase is possible. The Fed also said it might raise rates three more times next year instead of two.
Overseas markets closed mostly lower.
…
Experts: Uber SUV’s Autonomous System Should Have Seen Woman
Two experts say video of a deadly crash involving a self-driving Uber vehicle shows the sport utility vehicle’s laser and radar sensors should have spotted a pedestrian, and computers should have braked to avoid the crash.
Authorities investigating the crash in a Phoenix suburb released the video of Uber’s Volvo striking a woman as she walked from a darkened area onto a street.
Experts who viewed the video told The Associated Press that the SUV’s sensors should have seen the woman pushing a bicycle and braked before the impact.
Also, Uber’s human backup driver appears on the video to be looking down before crash and appears startled about the time of the impact.
“The victim did not come out of nowhere. She’s moving on a dark road, but it’s an open road, so Lidar [laser] and radar should have detected and classified her” as a human, said Bryant Walker Smith, a University of South Carolina law professor who studies autonomous vehicles.
Sam Abuelsmaid, an analyst for Navigant Research who also follow autonomous vehicles, said laser and radar systems can see in the dark much better than humans or cameras and that the pedestrian was well within the system’s range.
“It absolutely should have been able to pick her up,” he said. “From what I see in the video it sure looks like the car is at fault, not the pedestrian.”
The video could have a broad impact on autonomous vehicle research, which has been billed as the answer to cutting the 40,000 traffic deaths that occur annually in the U.S. in human-driven vehicles.
Proponents say that human error is responsible for 94 percent of crashes, and that self-driving vehicles would be better because they see more and don’t get drunk, distracted or drowsy.
But the experts said it appears from the video that there was some sort of flaw in Uber’s self-driving system.
The video, Smith said, may not show the complete picture, but “this is strongly suggestive of multiple failures of Uber and its system, its automated system, and its safety driver.”
Tempe police, as well as the National Transportation Safety Board and the National Highway Traffic Safety Administration are investigating the Sunday night crash, which occurred outside of a crosswalk on a darkened boulevard.
The crash was the first death involving a fully autonomous test vehicle. The Volvo was in self-driving mode traveling about 40 mph (64 kph) with a human backup driver at the wheel when it struck 49-year-old Elaine Herzberg, police said.
The lights on the SUV did not illuminate Herzberg until a second or two before impact, raising questions about whether the vehicle could have stopped in time.
Tempe Police Chief Sylvia Moir told the San Francisco Chronicle earlier this week that the SUV likely would not be found at fault.
But Smith said that from what he observed on the video, the Uber driver appears to be relying too much on the self-driving system by not looking up at the road.
“The safety driver is clearly relying on the fact that the car is driving itself. It’s the old adage that if everyone is responsible no one is responsible,” Smith said. “This is everything gone wrong that these systems, if responsibly implemented, are supposed to prevent.”
The experts were unsure if the test vehicle was equipped with a video monitor that the backup driver may have been viewing.
Uber immediately suspended all road-testing of such autos in the Phoenix area, Pittsburgh, San Francisco and Toronto.
An Uber spokeswoman, reached Wednesday night by email, did not answer specific questions about the video or the expert observations.
“The video is disturbing and heartbreaking to watch, and our thoughts continue to be with Elaine’s loved ones. Our cars remain grounded, and we’re assisting local, state and federal authorities in any way we can,” the company said in a statement.
Tempe police have identified the driver as 44-year-old Rafael Vasquez. Court records show someone with the same name and birthdate as Vasquez spent more than four years in prison for two felony convictions — for making false statements when obtaining unemployment benefits and attempted armed robbery — before starting work as an Uber driver.
Tempe police and the NTSB declined to say whether the Vasquez who was involved in the fatal crash is the same Vasquez with two criminal convictions.
Attempts by the AP to contact Vasquez through phone numbers and social media on Wednesday afternoon were not successful.
Local media have identified the driver as Rafaela Vasquez. Authorities declined to explain the discrepancy in the driver’s first name.
The fatality has raised questions about whether Uber does enough to screen its drivers.
Uber said Vasquez met the company’s vetting requirements.
The company bans drivers convicted of violent crimes or any felony within the past seven years. Records show Vasquez’ offenses happened before the seven-year period, in 1999 and 2000.
The company’s website lists its pre-screening policies for drivers that spell out what drivers can and cannot have on their record to work for Uber.
Their driving history cannot have any DUI or drug-related driving offenses within the past seven years, for instance. They also are prevented from having more than three non-fatal accidents or moving violations within the past three years.
…
Analysts Outline Goals for All Sides in Proposed US-North Korea Summit
A proposed U.S.-North Korea summit is, for now, just that: a proposal. On this week’s edition of VOA’s “Plugged In With Greta Van Susteren,” analysts say that while the logistics and timing of talks are up in the air, so is the definition of real progress for all sides involved. VOA’s Robert Raffaele has more.
…
US Elections Face Continued Cyberthreats
U.S. officials conceded more work needs to be done to protect elections in America from continuing Russian cyberthreats. VOA’s Michael Bowman reports from Capitol Hill, where current and former Homeland Security secretaries testified before the Senate Intelligence Committee.
…
Facebook Under Fire for Data Misuse
Facebook is coming under intense criticism following reports that information from 50 million users was gathered by a voter data firm. Lawmakers are demanding answers, and Facebook stock has lost about $35 billion in its value. Michelle Quinn reports on the threats the company faces.
…
Fed Signals at Least Three More Rate Hikes in 2018
U.S. Federal Reserve officials voted to raise the central bank’s benchmark interest rate by a quarter of a percent this week, signaling perhaps three or more rate hikes this year as economic conditions improve. But as Mil Arcega reports, rising rates mean higher borrowing costs for consumers, many who have yet to see a significant increase in wages.
…
Trump Expected to Turn Up the Heat on China in Looming Trade War
U.S. President Donald Trump is expected at any time to fire a salvo directly at China in what could escalate into a full-scale trade war between the world’s two largest economies.
Trade actions against China, partly in response to the theft and improper transfer of American technology to Chinese companies, are expected to be announced by Trump as soon as Thursday. His schedule includes a midday signing of a memorandum “targeting China’s economic aggression.”
On the anticipated eve of the measures, U.S. officials spoke to reporters about their monthslong investigation under Section 301 of the Trade Act of 1974 of Beijing’s trade practices.
China has long been considered by many in the international community to have contravened fundamental principles of global trade, despite joining the World Trade Organization in 2001.
There have been a “number of specific failings by China to live up to its WTO obligations,” said an official of the U.S. Trade Representative in a Wednesday background briefing for reporters.
The briefing and other comments not for attribution by officials are seen as clear signals the administration, in response to an Aug. 14 memo by Trump, intends to use the Section 301 trade tool.
The last time it was wielded was by the Clinton administration against Japan to pry open that country’s automotive sector.
‘Ripping off’
China has been “ripping off” the United States, Trump has emphasized numerous times in public remarks during which he has harshly criticized his predecessors for not doing anything about it.
According to published reports, Trump is expected to impose tariffs, valued at tens of billions of dollars, on a number of Chinese products. Sources say that in addition to tariffs, restrictions on Chinese investment in the United States are likely as a response to Beijing using state funds and enterprises under the government’s control to purchase intellectual property here.
Trump in January hit the Chinese-dominated solar panel and cell industry with tariffs. Earlier this month, he launched global tariffs on steel and aluminum (from which Canada and Mexico were quickly given indefinite exemptions), a move China’s commerce ministry said it “strongly opposed.”
U.S. Trade Representative officials on Wednesday declined to specify what new actions will be taken, but they did not disagree that an announcement is expected as soon as Thursday.
“We’re getting very close,” said a USTR official speaking to reporters on condition of not being named. “The president will have the final say.”
Bracing for an anticipated harsh reaction from China, the official noted, “We recognize the potential gravity of the situation here.”
Depending on the severity of the measures taken by Trump, stock markets in Asia and elsewhere could be roiled, according to market analysts.
Trade groups representing American retail giants, such as Walmart, and tech companies, including Apple, warn that sweeping tariffs would raise prices for consumers in the United States and might not do much to reduce the trade deficit.
…
US Congress Races to Pass $1.3 Trillion Spending Bill
U.S. congressional leaders have reached a deal on a $1.3 trillion spending bill as a budget deadline looms.
Lawmakers now have until midnight Friday to approve it and prevent the year’s third government shutdown. Passage of the massive bipartisan effort seems certain.
The bill, which will keep the government funded until the end of September, has President Donald Trump’s support, the White House said in a statement released Wednesday.
“The president had a discussion with (House) Speaker (Paul) Ryan and (Senate) Leader (Mitch) McConnell, where they talked about their shared priorities secured in the omnibus spending bill,” said White House Press Secretary Sarah Huckabee Sanders.
Deadline late Friday
The bill will give Trump a huge budget increase for the military, including a 2.4 percent pay raise for military personnel.
It also will include a measure strengthening the federal background check system for gun purchases.
WATCH: Federal Budget Explainer
The “Fix NICS” measure would provide funding for states to comply with the existing National Instant Criminal Background Check system and penalize federal agencies that don’t comply.
It also will include money to improve school safety, including money for training school officials and law enforcement officers on how to identify signs of potential violence and intervene early, installing metal detectors and other steps to “harden” schools to prevent violence.
GOP aides said that Trump will win $1.6 billion for a wall and physical barriers along the U.S.-Mexico border. But Trump would be denied a far larger $25 billion request for multiyear funding for the project.
To the Democrats’ disappointment, the bill makes no mention of protections for so-called Dreamers, undocumented immigrants brought to the United States as children.
No insurer subsidies
It also won’t provide subsidies to health care insurers who cut costs for low-earning customers. And it won’t have federal payments for carriers to help them afford to cover their costliest clients.
Both parties touted the $4.6 billion in total funding to fight the nation’s opioid addiction epidemic and a record $3 billion increase for medical research at the National Institutes of Health.
The House is expected to vote on the bill by Thursday, followed quickly by the Senate, to meet Friday’s midnight deadline.
…
EXCLUSIVE: Kaspersky Lab Plans Swiss Data Center to Combat Spying Allegations: Documents
Moscow-based Kaspersky Lab plans to open a data center in Switzerland to address Western government concerns that Russia exploits its anti-virus software to spy on customers, according to internal documents seen by Reuters.
Kaspersky is setting up the center in response to actions in the United States, Britain and Lithuania last year to stop using the company’s products, according to the documents, which were confirmed by a person with direct knowledge of the matter.
The action is the latest effort by Kaspersky, a global leader in anti-virus software, to parry accusations by the U.S. government and others that the company spies on customers at the behest of Russian intelligence. The U.S. last year ordered civilian government agencies to remove the Kaspersky software from their networks.
Kaspersky has strongly rejected the accusations and filed a lawsuit against the U.S. ban.
The U.S. allegations were the “trigger” for setting up the Swiss data center, said the person familiar with Kapersky’s Switzerland plans, but not the only factor.
“The world is changing,” they said, speaking on condition of anonymity when discussing internal company business. “There is more balkanisation and protectionism.”
The person declined to provide further details on the new project, but added: “This is not just a PR stunt. We are really changing our R&D infrastructure.”
A Kaspersky spokeswoman declined to comment on the documents reviewed by Reuters.
In a statement, Kaspersky Lab said: “To further deliver on the promises of our Global Transparency Initiative, we are finalizing plans for the opening of the company’s first transparency center this year, which will be located in Europe.”
“We understand that during a time of geopolitical tension, mirrored by an increasingly complex cyber-threat landscape, people may have questions and we want to address them.”
Kaspersky Lab launched a campaign in October to dispel concerns about possible collusion with the Russian government by promising to let independent experts scrutinize its software for security vulnerabilities and “back doors” that governments could exploit to spy on its customers.
The company also said at the time that it would open “transparency centers” in Asia, Europe and the United States but did not provide details. The new Swiss facility is dubbed the Swiss Transparency Centre, according to the documents.
Data review
Work in Switzerland is due to begin “within weeks” and be completed by early 2020, said the person with knowledge of the matter.
The plans have been approved by Kaspersky Lab CEO and founder Eugene Kaspersky, who owns a majority of the privately held company, and will be announced publicly in the coming months, according to the source.
“Eugene is upset. He would rather spend the money elsewhere. But he knows this is necessary,” the person said.
It is possible the move could be derailed by the Russian security services, who might resist moving the data center outside of their jurisdiction, people familiar with Kaspersky and its relations with the government said.
Western security officials said Russia’s FSB Federal Security Service, successor to the Soviet-era KGB, exerts influence over Kaspersky management decisions, though the company has repeatedly denied those allegations.
The Swiss center will collect and analyze files identified as suspicious on the computers of tens of millions of Kaspersky customers in the United States and European Union, according to the documents reviewed by Reuters. Data from other customers will continue to be sent to a Moscow data center for review and analysis.
Files would only be transmitted from Switzerland to Moscow in cases when anomalies are detected that require manual review, the person said, adding that about 99.6 percent of such samples do not currently undergo this process.
A third party will review the center’s operations to make sure that all requests for such files are properly signed, stored and available for review by outsiders including foreign governments, the person said.
Moving operations to Switzerland will address concerns about laws that enable Russian security services to monitor data transmissions inside Russia and force companies to assist law enforcement agencies, according to the documents describing the plan.
The company will also move the department which builds its anti-virus software using code written in Moscow to Switzerland, the documents showed.
Kaspersky has received “solid support” from the Swiss government, said the source, who did not identify specific officials who have endorsed the plan.
…
Nestle Provides Lifeline for Struggling Kenyan Coffee Farmers
When Nestle executive Stephan Canz attended the German school in Nairobi in the early 1980s, it was surrounded by lush coffee farms.
Today, the trees have long since been uprooted and replaced by a shopping mall and upmarket homes, driving a sharp drop in
production of Kenya’s premium beans.
“The coffee has disappeared,” said Canz, who co-manages Swiss-based Nestle’s partnerships with coffee farmers globally. “You have to go almost to the slopes of Mount Kenya to find coffee.”
Kenya accounts for just 1 percent of the global crop, but its high-quality arabica beans are sought-after for blending with other varieties.
Alarmed by a steep drop in the country’s production, Nestle, which buys 10 percent of the world’s coffee and has the leading packaged coffee business, is working with farmers to guarantee its supplies.
In a $1 million project, begun in 2010, it says it is boosting bean production and quality.
Mary Wanja, with 350 coffee trees on her plot in rural Kirinyaga at the foot of Mount Kenya, is one of more than 40,000 of Kenya’s 600,000 coffee farmers participating in the project.
She harvested 1,200 kg of coffee last year, double the previous year, and saw her annual earnings rise to 100 shillings ($0.99) per kg, from 70 shillings.
“We are planting more trees so we can harvest more,” she said, standing amid newly planted seedlings provided by the Nestle project, which she joined three years ago.
Multiplier effect
Since Kenya’s production peaked at 129,000 tonnes in 1988/89 it has dropped steadily due to poor management and global price swings. Farmers have switched crops or sold their land.
Nestle, which is counting on growth in its coffee business as it overhauls its business to improve performance, works with a local milling and marketing company, Coffee Management Services (CMS), to train farmers regularly on fertilizer application, pest and disease control. It provides seedlings for farmers wishing to plant more.
“People didn’t know how and when to apply fertilizer properly. Nestle has taught us a lot,” said William Njeru, a farmer who harvested 7,600 kg last year, up from around 1,200 kg a year before he joined the project five years ago.
“If we can have other partners who are doing what Nestle is doing, the multiplier effect on productivity in Kenya can be very high,” said Peter Kimata, deputy head of Nestle’s partner CMS.
A half hour drive up the road from his office sits an abandoned coffee factory with rusting machinery.
Farmer Moses Wachira says it was closed in 2013 after its management embezzled farmers’ money. That forced 500 farmers to start selling their coffee to brokers who offer lower prices.
“These problems are causing production to fall because nobody watches to ensure managers do not misappropriate farmers’ money,” said the white-bearded farmer.
Kenya’s harvest fell 12 percent in the 2016/17 season to 40,700 metric tonnes, according to government data.
Government efforts to revive the sector have faltered. Last year, a judge stopped the government from acting on the recommendations of an official report on ways to boost coffee production after farmers claimed they were not consulted.
Some Kenyan farmers will miss out on expanding the crop to meet 2-3 percent annual growth in global demand for coffee, according to Nestle, as consumers discover new ways of consuming coffee, including capsules and cold brews.
Demand for coffee is also growing locally.
In Kenya, cafe chain Java, owned by Dubai-based private equity firm Abraaj, opened its first shop in 1999 and has grown to 68 retail outlets, as an emerging middle class and young professionals develop a taste for lattes and mocha.
“The coffee has to come from somewhere,” said Canz.
French Protests to Cause Widescale Train Disruption on Thursday
French commuters face major train service disruptions on Thursday due to an unexpectedly large walkout by railway workers angry at the government’s plans to shake up the state-owned and highly indebted SNCF rail company.
Labor unions said last week they would launch rolling strikes in early April, but France’s transport minister said many were planning to join a wider day of public service protests on Thursday, reducing rail services by 50 percent.
“There will ultimately be serious disruption tomorrow,” Transport Minister Elisabeth Borne said.
Unions are on a collision course with the government over its plans for the biggest shake-up of SNCF (Societe Nationale des Chemins de Fer) since the nationalization of the railways in the 1930s. Among the government’s plans are the trimming of benefits received by SNCF’s 260,000 employees and a cut in its 45 billion euro ($56 billion) debt.
The showdown was due to start with strikes two days a week over three months from April 3. It is shaping up as the biggest test of Emmanuel Macron’s presidency since the 40-year-old came to power last May on a promise of sweeping economic reforms.
Thursday’s stoppages are not part of the programmed rolling strikes. They are being organized to dovetail with a day of demonstrations by civil servants and public service employees opposed to plans to change the retirement system.
Minister Borne said the stoppages would halve regional rail services nationally and that high-speed TGV connections between major cities would be cut to 40 percent of normal levels.
…
New Technology Being Developed for Pacemakers
When you are watching a television show and see someone get their heart shocked back into a rhythm, you will see their entire body rise up in the air. That’s what happens when a defibrillator is used, because the shock is that powerful. As VOA’s Carol Pearson reports, scientists are now working on better, more effective, and less-shocking ways to get a heart to start beating once again.
…
White House Defends Trumps Phone Call to Putin
The White House has defended U.S. President Donald Trump’s phone call to Russian President Vladimir Putin to congratulate him on his election victory. The call early Tuesday coincided with the announcement by a Senate panel that a careful investigation showed Russia had meddled in the U.S. 2016 presidential election. Trump made no mention of the finding Tuesday but rather spoke of the need to meet with Putin to discuss important global issues. VOA’s Zlatica Hoke reports.
…
Amid Political Turmoil, Republicans Warn Trump Not to Fire Mueller
Political turmoil continues to swirl around President Donald Trump. In recent days, Trump has stepped up his criticism of the Russia probe being led by special counsel Robert Mueller. This comes in the wake of last week’s firing of Secretary of State Rex Tillerson and a congressional loss in Pennsylvania that could portend a Democratic wave in the November midterm elections. VOA national correspondent Jim Malone has more from Washington.
…