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

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.

Activity by Violent Latino Gang MS 13 Rising Across US

When making a case for reinforcing the U.S. southern border, President Donald Trump sometimes points to MS-13, the violent Latino gang whose members include some undocumented immigrants as well as homegrown Americans. Some 40 states report rising activity by the gang, especially in poor Hispanic immigrant communities. Cristina Caicedo Smit reports.

Peter Peterson, Billionaire and Philanthropist, Dies at 91

Peter G. Peterson, a billionaire and business executive who became one of the most prominent voices to argue for entitlement reform and reducing the U.S. national debt, died of natural causes early Tuesday, his family said. He was 91.

Born in the small town of Kearney, Nebraska, to Greek immigrants, Peterson was CEO of two major U.S. companies and co-founded one of the world’s largest private-equity firms.

He was a national figure in business by the early 1960s, serving as chairman and CEO of Bell and Howell, one of the largest manufacturers of movie cameras at the time.

 

He left Bell and Howell to work for the Nixon administration in the early 1970s, eventually serving as secretary of commerce from 1972 to 1973.

Lehman Brothers 

He took over as chief executive of the investment bank Lehman Brothers in 1973 after leaving the Nixon administration. In 1985, he co-founded the private-equity firm Blackstone Group with Stephen Schwarzman.

“His intelligence, wit and vision made him an inspirational leader who brought people together from the White House to Wall Street,” his family said in a statement.

Blackstone went on to become one of biggest private-equity firms in the world, with $434 billion in assets under management at the end of last year. When the firm went public in 2007, Peterson’s stake in the company made him a billionaire. His wealth was estimated at $2 billion, according to Forbes Magazine.

Fiscal challenges

Peterson dedicated the rest of his life to what he called “key fiscal challenges threatening America’s future,” donating $1 billion to create the Peter G. Peterson Foundation in 2007.

He never publicly endorsed the fiscal ideals of the Tea Party. However, his ideas did give him some common ground with them.

 

He long argued that the United States’ entitlement programs, principally Medicaid, Medicare and Social Security, had to be restructured or benefits cut back to avoid bankrupting the government. Through his foundation, he disseminated his ideas among the public and politicians.

“The fact he was able to start a serious debate about the future of Social Security and other entitlement programs was a huge accomplishment,” said Fred Bergsten, founder of the Peterson Institute for International Economics, who worked with Peterson in various capacities going back to the 1970s.

Raising taxes

Peterson was not considered ideological when it came to dealing with Social Security and Medicare. A life-long Republican, he still believed that raising taxes should be considered as part of any major restructuring of the U.S. budget, Bergsten said.

The foundation quickly became a major voice on all budget-related matters, repeatedly quoted in national media outlets. In 2008, his organization helped bankroll the documentary “I.O.U.S.A,” with the goal of making the federal government’s ballooning national debt, then around $10 trillion, a central campaign issue.

 

“What is most significant is most of our challenges are not really being discussed,” Peterson told The Associated Press in 2008 when he created his foundation. “I’ve been a very lucky beneficiary of the American dream as the son of immigrants. And, the more I look at some of these problems, the more persuaded I am they will pose a serious threat to this country.”

Peterson is survived by his wife, Joan Ganz Cooney, who co-founded the Children’s Television Workshop, and children John Peterson, Jim Peterson, David Peterson, Holly Peterson and Michael Peterson, and nine grandchildren.

Ethiopia Signs $600M Loan, Grant Deal With World Bank

The World Bank agreed on a $600 million loan and grant for Ethiopia on Tuesday to pay for roads and other infrastructure in urban areas.

The Washington-based bank said the funds would “help strengthen the capacity and performance of local urban governments, expand sustainable urban infrastructure and services, as well as promote local economic development.”

Ethiopia’s urban population is growing by 3.8 percent annually on average, one of the fastest rates in sub-Saharan Africa, and that is presenting challenges to infrastructure, services and jobs, the bank said.

“To successfully manage urbanization … cities are likely to require fiscal transfers for the foreseeable future. This program will help cities to realize their revenue potential,” Abebaw Alemayehu, the World Bank’s team leader for the project, said in a statement.

The program will also support projects in 73 towns and benefit more than 6.6 million people, he said.

Under a 2015-2020 development plan, Ethiopia plans to set up thousands of “rural development centers” in a bid to ease the influx of people to its capital, Addis Ababa.

Earlier this month, the World Bank also approved a $375 million loan to Ethiopia to fund a national electrification project.

Google Launches News Initiative to Combat Fake News

Alphabet’s Google is launching the Google News Initiative to weed out fake news online and during breaking news situations, it said in a blog post Tuesday.

Google said it plans to spend $300 million over the next three years to improve the accuracy and quality of news appearing on its platforms. 

The changes come as Google, Facebook and Twitter face a backlash over their role during the U.S. presidential election by allowing the spread of false and often malicious information that might have swayed voters toward Republican candidate Donald Trump.

In a separate blog post, Google said it was launching a tool to help subscribe to news publications.

Subscribe with Google will let users buy a subscription on participating news sites using their Google account and manage all their subscriptions in one place.

Google said it would launch the news subscription with the Financial Times, The New York Times, Le Figaro and The Telegraph among others. The search engine said it plans to add more news publishers soon.

Egyptian Court Rules Uber, Careem Illegal; Appeal Expected

An Egyptian court on Tuesday ordered authorities to revoke the operating licenses of the Uber and Careem ride-hailing services and block their mobile apps and software.

The government and the companies are expected to appeal the administrative court verdict, which would prevent it from being implemented until a higher court weighs in.

The administrative court in Cairo ruled that it is illegal to use private vehicles as taxis.

Both companies provide smartphone applications that connect passengers with drivers who work as independent contractors.

In a brief statement posted on its Facebook account, Careem said it “hasn’t been notified officially to stop its operations” and was operating normally. There was no immediate comment from Uber.

Uber was founded in 2010 in San Francisco, and operates in more than 600 cities across the world. Careem was founded in 2012 in Dubai, and operates in 90 cities in the Middle East and North Africa, Turkey, and Pakistan.

The applications took off in Cairo, a city of 20 million people with near-constant traffic and little parking. The services have recently started offering rides on scooters and tuk-tuks, three-wheeled motorized vehicles that can sometimes squeeze through the gridlock.

The apps are especially popular among women, who face rampant sexual harassment in Egypt, including from some taxi drivers. Cairo’s taxi drivers are also notorious for tampering with their meters or pretending the meters are broken in order to charge higher rates.

In 2016, taxi drivers protested the ride-hailing apps. They have complained that Uber and Careem drivers have an unfair advantage because they do not have to pay the same taxes or fees, or follow the same licensing procedures.

Britain, US Probing Use of Facebook Data by British Voter Profiling Company

Social media giant Facebook faced new investigations Tuesday in both Britain and the United States about the vast troves of information compiled by the company about their users and how that data has been deployed to influence elections by Cambridge Analytica, a British voter profiling business.

British information commissioner Elizabeth Denham said she is seeking a warrant to search Cambridge Analytica’s London headquarters to see whether Facebook did enough to protect users’ personal information about themselves and their friends.  Weekend reports said Cambridge Analytica had improperly used information about more than 50 million Facebook users, including $6 million in work to influence Americans to vote for real estate mogul Donald Trump in his successful 2016 run for the U.S. presidency.

Meanwhile, Bloomberg News reported the U.S. Federal Trade Commission is investigating whether Facebook violated terms of a consent decree it had agreed to with the agency and allowed Cambridge Analytica to use the personal data based on information Facebook users post online about themselves.  Facebook has suspended Cambridge Analytica from its vast social network.

Several U.S. lawmakers have called on Facebook chief Mark Zuckerberg to testify in Congress about his firm’s use of its users’ information.

“We want to know how this happened,” Minnesota Senator Amy Klobuchar said.  “What’s the extent of the damage?  Fifty million of these Facebook profiles were basically stolen, hijacked, including information of people’s residence.  And then how did it happen?  Why did it happen?  And how are they going to fix this?”

White House spokesman Raj Shah told Fox News that Trump “believes that Americans’ privacy should be protected.  You know, if Congress wants to look into the matter or other agencies want to look into the matter, we welcome that.”

Denham told BBC Radio, “We are looking at whether or not Facebook secured and safeguarded personal information on the platform and whether when they found out about the loss of the data they acted robustly and whether or not people were informed.”

Investors have reacted negatively to Facebook’s role in the data breach, with its stock price dropping by nearly 10 percent in the last few days, and the company losing billions of dollars in valuation.

British television station Channel 4 News broadcast surreptitious footage Monday showing an undercover interview one of its reporters conducted with Cambridge Analytica chief executive Alexander Nix in which he claimed to have used “a web of shadowy front companies” to influence elections.

According to the broadcast, with the reporter posing as someone who wanted to influence an election in Sri Lanka, Nix suggested using an attractive woman to seduce a candidate the client was looking to defeat, or sending someone posing as a wealthy developer to pass on a bribe to a politician.

After the telecast, the company said Nix’s answers came in a discussion with “ludicrous hypothetical scenarios.”

In a statement, Nix said, “I am aware how this looks, but it is simply not the case.  I must emphatically state that Cambridge Analytica does not condone or engage in entrapment, bribes or so-called ‘honeytraps,’ and nor does it use untrue material for any purpose.”

The company has disputed reports about its use of vast data troves from Facebook.

Facebook says its data was initially collected by a British academic, Aleksandr Kogan, who created an app on Facebook that was downloaded by 270,000 people, which provided not only their personal data, but also that of their friends they had exchanged information with.  Facebook claims Kogan then violated the company’s terms by passing the information on to Cambridge Analytica.

Britain’s Cambridge University, where Kogan teaches, on Tuesday asked Facebook for all information it has about Kogan’s relationship with Cambridge Analytica.

Kogan has told colleagues at the university he would answer questions from U.S. and British lawmakers, along with the U.S. Federal Bureau of Investigation, about his data collection from Facebook users, but so far no one has asked to interview him.

Facebook Under Fire for Developer’s Data Mining

The Facebook backlash is intensifying.

Congressional leaders, regulators in the United States and Europe and state officials are putting pressure on Facebook to answer questions about fresh allegations over how the social networking giant was manipulated in the run-up to the 2016 U.S. presidential election.

 

The Senate Commerce Committee has sent questions to the company about how a data consulting firm, Cambridge Analytica, allegedly used 50 million Facebook users’ data to aid political campaigns.  British and U.S. lawmakers called for Facebook CEO Mark Zuckerberg to testify.  The company is reportedly holding an employee meeting Tuesday to answer questions.

 

Among the tough questions the company faces is why it did not inform the affected users about the issue.  On Monday, the firm’s stock dropped nearly seven percent, losing $36 billion in value, Facebook’s biggest one day decline in nearly four years.  In early trading Tuesday, Facebook shares were down about three percent.

 

The probe over Cambridge Analytica is just the latest flashpoint around Facebook’s role in the 2016 election and comes as the company faces questions about how it should be regulated and monitored going forward.

 

With its more than two billion monthly users and billions of dollars in profit, Facebook has become a powerful conduit of news, opinion and propaganda, much of it targeted at individuals based on their own data.  The social media site and investigators have found that Russia-backed operatives had used Facebook to spread disinformation and propaganda.

 

In recent months, the company, along with YouTube and Twitter, has changed some of its practices to reduce the power of automated accounts and propaganda.  Facebook has said it would hire 10,000 security employees.

 

A professor and the data-mining company

 

Facebook’s most recent troubles began in 2013 when an app called “Thisisyourdigitallife” developed by Aleksandr Kogan, a Cambridge University professor, offered users a personality survey.  The users were invited to download the app, which then gathered user information about their profiles and that of some of their friends.

 

The professor shared data with Cambridge Analytica, the data-mining firm that worked with U.S. President Donald Trump’s campaign, according to The New York Times and The Observer.

 

While the gathering of the data was legitimate at the time, Facebook says the professor did not abide by the company’s rules when he passed the data to a third party – Cambridge Analytica – thus violating Facebook’s terms and conditions.  Facebook discovered the violation in 2015 and required Cambridge Analytica to delete the data, but didn’t tell affected users.

 

Cambridge Analytica has denied that it kept the data.  One Facebook executive in charge of security is reportedly leaving the firm as a result the matter.

 

Facebook suspends accounts

 

Last week, as the story broke, Facebook suspended the accounts of Cambridge Analytica and other parties, including the professor. 

 

Facebook says its policies around outside parties and data collection have since changed.  Now all apps requesting detailed user information go through the company’s App Review process.  The company has hired a digital forensics firm to conduct an audit of Cambridge Analytica to see if the data was deleted.

 

“If this data still exists, it would be a grave violation of Facebook’s policies and an unacceptable violation of trust and the commitments these groups made,” Facebook said

 

What to do about Facebook

 

In recent months, privacy advocates, regulators and lawmakers have discussed new ways of regulating Facebook.  At the moment, lawmakers are calling for answers.

 

“They’ve got responsibility to make sure that that information is used in an appropriate way, so we want to find out how it was gotten, how it was used, and we want Facebook obviously to be transparent about that,” said U.S. Senator John Thune, a Republican representing South Dakota.  

 

“I have serious concerns about the role @Facebook played in facilitating and permitting the covert collection and misuse of consumer information by Cambridge Analytica,” tweeted U.S. Senator Ron Wyden, an Oregon Democrat.

 

 

 

Crash Marks 1st Death Involving Fully Autonomous Vehicle

A fatal pedestrian crash involving a self-driving Uber SUV in a Phoenix suburb could have far-reaching consequences for the new technology as automakers and other companies race to be the first with cars that operate on their own.

The crash Sunday night in Tempe was the first death involving a full autonomous test vehicle. The Volvo was in self-driving mode with a human backup driver at the wheel when it struck 49-year-old Elaine Herzberg as she was walking a bicycle outside the lines of a crosswalk in Tempe, police said.

 

Uber immediately suspended all road-testing of such autos in the Phoenix area, Pittsburgh, San Francisco and Toronto. The ride-sharing company has been testing self-driving vehicles for months as it competes with other technology companies and automakers like Ford and General Motors.

 

Though many in the industries had been dreading a fatal crash they knew it was inevitable.

 

Tempe police Sgt. Ronald Elcock said local authorities haven’t determined fault but urged people to use crosswalks. He told reporters at a news conference Monday the Uber vehicle was traveling around 40 mph when it hit Helzberg immediately as she stepped on to the street.

 

Neither she nor the backup driver showed signs of impairment, he said.

 

“The pedestrian was outside of the crosswalk, so it was midblock,” Elcock said. “And as soon as she walked into the lane of traffic, she was struck by the vehicle.”

 

The National Transportation Safety Board, which makes recommendations for preventing crashes, and the National Highway Traffic Safety Administration, which can enact regulations, sent investigators.

 

Uber CEO Dara Khosrowshahi expressed condolences on his Twitter account and said the company is cooperating with investigators.

 

The public’s image of the vehicles will be defined by stories like the crash in Tempe, said Bryant Walker Smith, a University of South Carolina law professor who studies self-driving vehicles. It may turn out that there was nothing either the vehicle or its human backup could have done to avoid the crash, he said.

 

Either way, the fatality could hurt the technology’s image and lead to a push for more regulations at the state and federal levels, Smith said.

Autonomous vehicles with laser, radar and camera sensors and sophisticated computers have been billed as the way to reduce the more than 40,000 traffic deaths a year in the U.S. alone. Ninety-four percent of crashes are caused by human error, the government says.

 

Self-driving vehicles don’t drive drunk, don’t get sleepy and aren’t easily distracted. But they do have faults.

 

“We should be concerned about automated driving,” Smith said. “We should be terrified about human driving.”

 

In 2016, the latest year available, more than 6,000 U.S. pedestrians were killed by vehicles.

 

The federal government has voluntary guidelines for companies that want to test autonomous vehicles, leaving much of the regulation up to states.

 

Many states, including Michigan and Arizona, have taken a largely hands-off approach, hoping to gain jobs from the new technology, while California and others have taken a harder line.

 

California is among states that require manufacturers to report any incidents during the testing phase. As of early March, the state’s motor vehicle agency had received 59 such reports.

 

Arizona Gov. Doug Ducey used light regulations to entice Uber to the state after the company had a shaky rollout of test cars in San Francisco. Arizona has no reporting requirements. Hundreds of vehicles with automated driving systems have been on Arizona’s roads.

 

Ducey’s office expressed sympathy for Herzberg’s family and said safety is the top priority.

 

The crash in Arizona isn’t the first involving an Uber autonomous test vehicle. In March 2017, an Uber SUV flipped onto its side, also in Tempe. No serious injuries were reported, and the driver of the other car was cited for a violation.

 

Herzberg’s death is the first involving an autonomous test vehicle but not the first in a car with some self-driving features. The driver of a Tesla Model S was killed in 2016 when his car, operating on its Autopilot system, crashed into a tractor-trailer in Florida.

 

The NTSB said that driver inattention was to blame but that design limitations with the system played a major role in the crash.

 

The U.S. Transportation Department is considering further voluntary guidelines that it says would help foster innovation. Proposals also are pending in Congress, including one that would stop states from regulating autonomous vehicles, Smith said.

 

Peter Kurdock, director of regulatory affairs for Advocates for Highway and Auto Safety in Washington, said the group sent a letter Monday to Transportation Secretary Elaine Chao saying it is concerned about a lack of action and oversight by the department as autonomous vehicles are developed. That letter was planned before the crash.

 

Kurdock said the deadly accident should serve as a “startling reminder” to members of Congress that they need to “think through all the issues to put together the best bill they can to hopefully prevent more of these tragedies from occurring.”

Senate Intelligence Committee Launches Campaign to Prevent US Election Hacking

The U.S. Senate Intelligence Committee recommended Tuesday that Congress “urgently pass” legislation to bolster federal help to states that are trying to prevent their election systems from being hacked as they were in 2016.

New legislation is included in the committee’s initial draft of recommendations to prevent more hacking of U.S. elections. The recommendations are included in the committee’s initial findings after spending more than a year investigating Russian attempts to target U.S. voting systems during the 2016 campaign.

The recommendations also call on the Department of Homeland Security to develop channels of communication between federal, state and local officials, and that Washington “clearly communicate” that attacks on elections are hostile and appropriate agencies should “respond accordingly.”

The Department of Homeland Security has said Russian agents targeted the election systems in 21 states before the November 2016 election and separately engaged in a social media campaign that was designed to create confusion and fuel social discord. U.S. intelligence agencies have said, however, there is no evidence the 2016 hacks affected election results, although they have concluded that Russia meddled in the campaign to help Republican U.S. President Donald Trump get elected. Moscow has repeatedly denied interfering in the campaign and Trump insists there was no collusion.

Intelligence officials have repeatedly warned they expect Russia or others to attempt to interfere in the November 2018 midterm elections, when control of Congress is at stake.

“We are here to express concerns but also confidence in our state and local governments,” said Senator Richard Burr, the Republican chairman of the Senate Intelligence Committee.

The Senate Intelligence Committee has been conducting what is widely viewed as the least partisan out of the three primary congressional probes of Russia’s meddling in 2016.

Special Counsel Robert Mueller also is investigating Russia’s activities in 2016, as well as looking into the possibility of collusion with Russia or obstruction of justice by Trump associates.

Alabama Lawmakers to Debate Arming Teachers in School

The Alabama House of Representatives will debate on Tuesday whether teachers can carry guns on campus. The latest push for school security proposed by Republican Rep. Will Ainsworth would allow designated teachers or school administrators approved by local law enforcement to carry firearms in school. Parents wouldn’t know which educators carry for security reasons. 

The bill passed in a tight committee vote last week after contentious debate during a public hearing. It’s one of multiple gun-related bills introduced in the Alabama legislature after the Feb. 14 shooting at a Florida high school that killed 17 people.

Lawmakers in at least ten other states have also proposed arming teachers or school employees. Florida passed a school safety and gun control law that included arming teachers three weeks after the Parkland massacre.