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Sudan to Unify Currency Rate in Bid to Win Foreign Investment

Sudan is taking steps to close the gap between its official and unofficial currency rates and scrap subsidies by end-2019 to win foreign investment after U.S. sanctions ended, Minister of State for Finance Magdi Hassan Yassin told Reuters on Tuesday.

Washington last month suspended 20-year sanctions and lifted a trade embargo because it decided that Sudan had made progress on counterterrorism cooperation and on internal conflicts such as one in Darfur. It also unfroze assets and removed financial restrictions.

Sudan is hoping the measures will help the import-dependent country get back on its feet after years of hardship caused partly when the south seceded in 2011 and it lost three-quarters of its oil output, its main source of foreign currency.

“We will gradually lift subsidies in accordance with the five-year plan by the end of 2019. … Most of the things that hinder foreign investment are being addressed and there are reforms to investment and company laws,” Yassin said.

Sudan last November cut fuel and electricity subsidies and announced import restrictions to save scarce foreign currency.

Sudan’s year-on-year inflation decreased in October to 33.08 percent from 35.13 percent in September on the back of lower food and beverage prices, a report from Sudan’s central statistics agency said Tuesday.

Sudan’s central bank has held the official exchange rate at 6.7 pounds to the dollar but currency is largely unavailable at that price. The pound currently hovers around 23 pounds to the dollar, according to currency traders.

“The 2018 budget, which will start in January, will be the first budget after the U.S. ended the economic sanctions. … The central bank will set policies to unify the exchange rate,” Yassin said.

But “there are no directions to float the pound,” he added.

Analysts and officials say Sudan must conduct tough reforms such as floating its currency if it hopes to benefit from sanctions relief and begin to attract new investment.

US Commerce Chief: ‘Some Sort’ of NAFTA Deal Will Reach Trump

U.S. Commerce Secretary Wilbur Ross said on Tuesday that he believes NAFTA negotiations will produce “some sort” of a deal for President Donald Trump to evaluate but repeated his warnings that the United States will walk away from the trade pact if key problems are unresolved.

Ross, speaking before the start of a fifth round of talks this week to modernize the North American Free Trade Agreement, said Mexico and Canada would suffer far more than the United States if the pact is dissolved.

“I would certainly prefer them to come to their senses and make a sensible deal,” Ross told a Wall Street Journal CEO forum.

“In any negotiation if you have one party that is not in fact prepared to walk away over whatever are the threshold issues, that party is going to lose,” Ross added.

Trump has relentlessly criticized NAFTA for draining U.S. manufacturing jobs to Mexico, calling it “the worst trade deal ever made” and threatening to scrap it unless it can be improved to reduce U.S. trade deficits with Mexico and Canada.

Ross said Trump’s “general point of view is that no deal is better than a terrible deal,” but added that he does not know how Trump will evaluate a deal resulting from negotiations.

“Some sort of a draft will land on his desk. So it will be a binary decision in that sense,” Ross said.

At negotiations resuming in Mexico City on Thursday, Mexico and Canada are expected to respond to tough demands from the United States such as a five-year sunset clause that would effectively trigger frequent renegotiations as well as a controversial U.S.-specific content rule for automotive products and far higher regional automotive content.

Ross gave no indication that U.S. negotiators would soften their stance on these topics, which the U.S. Chamber of Commerce counts among “poison pill” demands that could sink the talks.

Asked whether the content demands that 85 percent of a car’s value be produced within the region and 50 percent in the United States would simply drive auto and parts production to Asia, as industry executives have warned Ross said: “We don’t think so.

We believe there will be a different thing because of all the other changes that we’re making.”

He said Republican tax reform efforts including lower rates and immediate expensing of capital expenditure costs and regulatory changes would lower the cost of doing business and keep the United States attractive for automotive investment.

Trump has wanted a five-year sunset clause for trade agreements since he began campaigning for president Ross said, to ensure that they deliver promised benefits.

“The reason we want it is that the tragic truth is that forecasts that were made when trade agreements were entered into, never have been achieved, at least in the case of the U.S.”

Behind the Doors of Immigrant Detention

The first room in the former warehouse, now a detention center, is a waiting area where visitors check in and wait to see whether they will be allowed to visit a detainee.

Security screening is similar to that at an airport checkpoint. Visitors must show identification and leave belongings in a locker. No phones. No pictures. No recording of any kind.

“This one is actually nice. She is helpful,” a local volunteer who regularly visits detainees tells me about the security official standing behind the window. Above the window: “United We Stand.”

On a dead end road in Elizabeth, New Jersey, the Elizabeth Detention Center is an immigration jail that holds about 285 people. Privately owned, it is run by the Corrections Corporation of America (CCA), the fifth-largest corrections company in the United States.

The center is in an industrial area surrounded by parking lots, a railroad, a freight station and the New Jersey Turnpike — a geographic location that works as an invisible wall.

Current U.S. policy is to detain those who ask for asylum once they reach a U.S. port of entry regardless of whether they have a valid visa. The Elizabeth Detention Center is a 15-minute drive from Newark Liberty International Airport, one of the busiest entry points to the U.S. for international arrivals.

A name and a number

It is late afternoon at the end of October; about 30 people are waiting to see friends or loved ones inside the Elizabeth facility. All the blue plastic chairs are taken, and there is a check-in line. Some wait outside. Church groups, mothers and children, and other people visiting loved ones wait their turn. Also, volunteers from local nonprofit groups visit detainees every week.

I have been given the name and alien number of a detainee by First Friends, an immigrant advocacy group. It’s all the information I need to be admitted as a volunteer visitor. The goal of the visitation program, according to First Friends organizers, is to give immigrants a moment of support and friendship.

I am asked to show identification. My Maryland driver’s license is met with a skeptical look by the officer. She double-checks front and back, but I get the green light to enter. Like all visitors, I must go through a metal detector, take my shoes and jacket off, and leave my pen and notebook behind. I then step inside a large metal jail door that closes with a clank before another slides open on the other side.

“I never get used to this sound,” another visitor tells me.

Once the gates of an immigration detention center close on asylum seekers, they may not open again for months. As of September, immigration officials say, there were more than 38,000 immigrants detained nationwide in 203 facilities. Detainees leave a detention center once their cases have been gone through the immigration process, which could mean authorization for them to live in the United States or deportation.

The visitation area is filled with round tables and chairs. Detainees must sit facing officers who are posted on the right side of the room. In the back, on a single row of chairs, immigrants wait for their visitors.

Under a Statue of Liberty mural, I sit at a round table and face Faras Khan from Pakistan, who is in the midst of deportation proceedings. His girlfriend is also visiting. As a corrections officer watches from the side of the room, Khan talks about his case, how he feels he is an American because he has not lived in Pakistan since he was a 1-year-old.

Visa overstayed

Khan’s father sought asylum after overstaying a nonimmigrant visa, claiming he had been persecuted in Pakistan. At the time, Khan, still a child, was listed as a derivative beneficiary. His father’s asylum was denied, and he was deported to Pakistan.

But Khan, now in his late 20s and diagnosed as bipolar, is fighting to stay. He was taken into custody after a meeting with immigration officials and has been detained for more than six months.

A 2016 Human Rights First report shows that clients held at New Jersey facilities, who were represented by Human Rights First pro bono attorneys, were detained for an average of eight months.

After detention

Edafe Okporo was held at Elizabeth for five months. He was taken there after his flight landed at Newark, and he requested asylum.

“I was told by immigration that they don’t have housing for immigrants, arriving alien, so I was told I was going to be taken to a jail,” Okporo said.

Okporo is from Nigeria, where he was working as an LGBTQ rights and public health activist in a country that does not recognize gay rights and criminalizes gay activity. In October 2016, he won an award from a New York human rights organization that published a photo of him and exposed his work.

“The community was calling for my execution, so I had to flee. I had a U.S. visa, and that was the only travel document I had to travel with,” Okporo said.

Okporo said his time in detention put him in a deep depression.

The rooms in Elizabeth, he said, are not private. Though there is a “privacy wall” inside showers and toilets, a person can still see what others are doing.

“I got alone. Lonely. … I’ve never been in that kind of isolation before. You are instructed on what to do and what not to do. And they are giving you food to eat, whether you like it or not, you just do it,” he said.

Anxiously waiting

Not knowing the outcome of his case also added to his anxiety.

“If I lose, I would be returning to my country. If I win, I would be released. Where I would be released? I was depressed because my family … I do not have communications because my family do not accept me because of my sexual orientation,” he said.

Okporo said that besides the volunteer visitation program, he found a way out in books and meditation.

“I love reading. I increased my passion for reading by always going to the library and picking up books to read,” he said. “Even [though] my body was incarcerated, my body was free because I was able to go through a day-to-day activity of how to meditate and get a grip of my mind.”

Okporo was granted asylum.

The American Friends Service Committee, which represents immigrants held in New Jersey detention facilities pro bono, reports that between February 2015 and September 2016 it represented 80 asylum seekers. Of those, 40 received asylum. All remained in detention while their claims were adjudicated.

Okporo will be eligible to apply for legal permanent resident status in one year. But he has already begun his new life in America. With First Friends’ help, he has gotten three jobs.

“I produced a cookbook,” he said proudly, “which featured 40 refugees from different countries around the world.”

Trump Approval Ratings at Around 30 Percent, President Says They’re Wrong

An array of surveys of voter approval ratings for U.S. President Donald Trump continue to be mired in the 30 percent range, but he contended Tuesday that an outlier poll with a higher mark proves the others are wrong.

The latest survey by Quinnipiac University showed American voters disapprove of Trump’s nearly 10-month White House tenure by a 58-to-35 percent margin, with 40 percent saying he is fit to serve as president and 57 percent he is not.

Other recent surveys showed similar results, with Gallup on Tuesday giving Trump a 57-38 disapproval rating. Last week, Reuters/Ipsos pegged his negative standing at 60-35, while The Washington Post-ABC News survey in early October showed a negative reading of 59-37, which it said was the lowest in seven decades at this point in the four-year terms of U.S. presidents.

However, Trump, in a Twitter comment, cited Monday’s result from the Republican-leaning Rasmussen Reports, which showed him at a 53-46 negative standing and attacked mainstream national news outlets for citing the polls with his approval ratings in the 30-percent range.

“One of the most accurate polls last time around,” Trump said of Rasmussen. “But #FakeNews likes to say we’re in the 30’s. They are wrong. Some people think numbers could be in the 50’s. Together, WE will MAKE AMERICA GREAT AGAIN!”

By Tuesday, the Rasmussen polling edged down for Trump, with a 54-44 negative reading.

Quinnipiac pollster Tim Malloy said, “President Donald Trump returns from his big Asia trip to find numbers frozen in the negative. Ominously, there is creeping slippage in (Trump’s political) base.”

Quinnipiac said that American voters by a 58-to-37-percent margin think that Trump is not honest, by 59-38 that he does not have good leadership skills, by 59-39 that he does not care about average Americans, by 65-30 that he is not level-headed and by 62-34 that he does not share their values.

On the plus side, Quinnipiac said by a 58-39 margin, voters think Trump is a strong person and by 55-41 that he is intelligent.

Study: Internet Freedom Worsens in Pakistan

A new independent study places Pakistan among the top four countries, including Brazil, Mexico and Syria, where people have been murdered in each of the last three years for writing about sensitive subjects online.

The annual “Freedom on the Net” report, released Tuesday by U.S.-based Freedom House, is based on an assessment of internet freedom in 65 countries, accounting for 87 percent of internet users worldwide. The latest study primarily focused on developments between June 2016 and May 2017.

The research declared Pakistan “not free” for a sixth consecutive year, noting internet freedom has deteriorated due to violence and intimidation related to social media activists.

“Internet shutdowns, a problematic cybercrime law, and cyberattacks against government critics contributed to the ongoing deterioration. Political speech online is vulnerable to restriction as Pakistan enters an election year in 2018,” the report noted.

The most frequent targets, it says, seem to be online journalists and bloggers covering politics, corruption and crime, as well as people who express religious views that may contrast with or challenge the views of the majority.

The study went on to conclude that perpetrators of the reprisal attacks remained unknown “but their actions often aligned with the interests of politically powerful individuals or entities.”

The report documented incidents of violence and intimidation during the research period. The government of Pakistan has not commented on the findings.

In June, a Pakistani court sentenced to death earlier this year an internet user, Taimoor Raza, for committing blasphemy on Facebook. In April, university student Mashal Khan was killed in the northwestern Khyber Pakhtunkhwa province by a mob who accused him of posting blasphemous content online.

Khan’s murder sparked widespread outrage across Pakistan. An anti-terrorism court is hearing the lynching case against 57 suspects indicated by the court.

“Such attacks often succeed in silencing more than just the victim, encouraging wider self-censorship on sensitive issues like religion. The state’s failure to punish perpetrators of reprisal attacks for online speech perpetuates a cycle of impunity,” according to the report.

The Pakistani government enacted the Prevention of Electronic Crimes Act in August 2016, introducing stronger censorship and surveillance powers with inadequate oversight, say critics.

Earlier this year, five bloggers known for criticizing the powerful military and religious militancy were abducted for few weeks. One of them later told media a government institution had detained and tortured him. Authorities had distanced themselves from the alleged abductions.

Tuesday’s report also criticized the government for the prolonged suspension of mobile internet services in parts of Pakistan, including the violence-plagued northwestern federally administered tribal areas, where security forces have been conducting anti-militancy operations.

About 15 Percent of US Federal Agencies Detected Kaspersky on Networks

About 15 percent of U.S. federal agencies have reported some trace of Moscow-based Kaspersky Lab software on their systems, a Department of Homeland Security (DHS) official told Congress on Tuesday.

Jeanette Manfra, assistant secretary for cybersecurity at DHS, told a U.S. House of Representatives panel that 94 percent of agencies had responded to a directive ordering them to survey their networks to identify any use of Kaspersky Lab products.

The Trump administration in September ordered civilian U.S. agencies to remove Kaspersky Lab from their networks, saying it was concerned the Moscow-based cybersecurity firm was vulnerable to Kremlin influence and that using its anti-virus software could jeopardize national security.

Kaspersky Lab has repeatedly denied the allegations.

Reporting by Dustin Volz; Editing by Chizu Nomiyama.

Silicon Valley Blasts US Senate Proposal to Tax Startup Options

A proposal by the U.S. Senate to change the way shares in startup companies are taxed incited panic and dread in Silicon Valley on Monday, with startup founders and investors warning of nothing less than the demise of their industry should the proposal become law.

The provision in the Senate’s tax reform plan, which appeared to catch the industry by surprise, involves the treatment of employee stock options. These options give the holder the right to purchase shares in the future at a set price and can be very valuable if a company does well and the share price increases.

Options are often a major portion of the compensation for startup employees and founders, who take lower salaries in anticipation of a big payout if their startup takes off. Options typically vest over a four-year period.

Senate Republicans have now proposed taxing those stock options as they vest and before startup employees have the opportunity to cash them in, resulting in annual tax bills that could easily climb into the tens of thousands of dollars, say startup founders and venture capitalists.

“If there were a single piece of legislation to adversely affect startups, it would be this,” said Venky Ganesan, managing director at venture capital firm Menlo Ventures. “Everyone is freaked out.”

Justin Field, vice president of government affairs at the National Venture Capital Association, said that the Senate’s proposed tax change would be “crippling” to the startup industry.

How far the provision gets remains to be seen. The National Venture Capital Association was successful in getting a similar proposal removed from the House tax bill, although it “didn’t fully appreciate” the Senate’s intention to add the tax provision, Field said.

The association also helped to steer lawmakers away from a proposal discussed late last year to tax venture capitalists’ profits on investments at a higher rate.

Republican Senator Rob Portman of Ohio, a member of the Senate Committee on Finance, has filed an amendment to repeal the provision in the tax bill, according to his spokesman.

A new proposal

Under current tax code, employees are taxed only when they exercise their options. Options are exercised when the price they were granted at–known as the strike price–is lower than the share price, and some shares can then be sold to pay the taxes.

But the Senate proposal would require startup employees to pay regular income tax on the value gain of their stock options even before they are exercised. These options are illiquid assets, and cannot be spent or saved.

“What this would mean is every month, when your equity compensation vests a little bit, you will owe taxes on it even though you can’t do anything with that equity compensation,” Fred Wilson, a venture capitalist with Union Square Ventures, wrote on his blog Monday.

For instance, if a startup employee receives stock options at a dollar per share, and the shares increase in value by $1 every year during the four-year vesting period, the employee would have to pay income tax on $1 per share after the first year, pay again on the $1 increase in value after the second year, and so on.

When that employee owns hundreds of thousands and even millions of shares, that is a hefty bill to pay. And there is always the risk the startup will eventually fail.

“This reform will force the average employee to pay taxes on that bet well before they even know if it’s a winning ticket,” said Amanda Kahlow, founder and executive chairman of marketing data startup 6sense.

For startup founders in particular, such a tax bill could be ruinous.

“It would mean that I would have to sell the company,” said Shoaib Makani, founder and chief executive of long-haul trucking startup KeepTruckin. “I have zero net worth aside from the common stock I hold in the company. It would be impossible. I would be in default.”

Some executives in the startup industry, however, have pushed for companies to move toward bigger salaries so employees are not so dependent on options to buy a house or pay for other large expenses. And when startups suffer valuation cuts, employees can end up with worthless options.

The Senate’s proposal came as a revenue-generating measure to help offset tax breaks in the bill. A spokesman for Senator Orrin Hatch, a Republican and chairman of the Senate Committee on Finance, did not respond to requests for comment and other Republicans on the committee were not immediately available.

A spokeswoman for Senator Ron Wyden, the committee’s ranking member and a Democrat, said he was aware of concerns that the provision would limit startups’ ability to attract talent.

New Russia Probe Details Likely to Dominate Sessions Hearing

Attorney General Jeff Sessions returns to Capitol Hill this week amid growing evidence of contacts between Russians and associates of President Donald Trump, bracing for an onslaught of lawmaker questions about how much he knew of that outreach during last year’s White House campaign.

The appearance before the House Judiciary Committee on Tuesday follows a guilty plea from one Trump campaign aide who served on a foreign policy council that Sessions chaired, as well as statements from another adviser who said he’d advised the then-GOP Alabama senator about an upcoming trip to Russia.

Those details complicate Sessions’ effort to downplay knowledge of the campaign’s foreign contacts, and Democratic lawmakers who already contended the attorney general had not been forthcoming with them have signaled that questions about the new revelations are likely to dominate what could otherwise have been a routine oversight hearing.

“These facts appear to contradict your sworn testimony on several occasions,” Democrats from the committee said in a letter to Sessions last week.

Republicans, for their part, are likely to press Sessions on their demands for investigations into the Clinton Foundation and an Obama-era purchase of American uranium mines by a Russian-backed company.

In a letter to the House Judiciary Committee, the Justice Department said Sessions had directed “senior federal prosecutors” to “evaluate certain issues” raised in letters sent by Republican lawmakers, and to determine whether investigations – or the possible appointment of a special counsel – were warranted. 

Sessions, an early Trump backer who led a foreign policy advisory council during the campaign, has been shadowed for months by questions about his own communications with Russians and by contacts of others in the Trump orbit. That issue has been at the forefront of each of his congressional hearings even as Sessions has labored to promote the Justice Department’s work and priorities, and Tuesday’s appearance is unlikely to be an exception.

Earlier in the year

At his January confirmation hearing, Sessions told Sen. Al Franken, D-Minn., that “I did not have communications” with the Russians during the campaign and said he was “unaware” of contacts between others in the campaign and Russia. Yet he recused himself in March from overseeing the Justice Department’s investigation into potential coordination between the Trump campaign and the Kremlin after acknowledging two previously undisclosed encounters with Russian ambassador Sergey Kislyak.

He struck a similar note before the Senate Judiciary Committee last month, when he denied knowledge of communications between Russians and Trump campaign officials.

“I did not and I’m not aware of anyone else that did, and I don’t believe it happened,” Sessions said under questioning, again from Franken.

But that narrative has been challenged by a pair of recent events, most notably a guilty plea from George Papadopoulos, who last month admitted in court to lying to the FBI about his own foreign contacts. He was part of a foreign policy council that Sessions chaired, and the two are among the men in a March 2016 photograph that Trump posted on social media. Charging documents in that case indicate that Papadopoulos told the council “that he had connections that could help arrange a meeting between then-candidate Trump” and Russian President Vladimir Putin.

One of the attendees at that meeting, J.D. Gordon, recalled that Sessions quickly “shut him down and said, ‘We’re not going to do that.”’

Gordon has also said that Papadopoulos went around him and Sessions and that they did not know he had continued to try to arrange such a meeting.

Democratic members of the House Judiciary Committee advised Sessions in a letter last week that they intended to press him on what they said were “inconsistencies” between the attorney general’s past statements and the new revelations.

“If, as recent reports suggest, you rejected Mr. Papadopoulos’s suggestion that President Trump meet with Vladimir Putin at that March 31 meeting – a fact you appear to have remembered only after Mr. Papadopoulos’s account was made public – it seems likely that you were ‘aware’ of communications between the Russian government and surrogates of the Trump campaign,” the letter states.

Justice Department spokeswoman Sarah Isgur Flores declined to comment Monday.

Adding to the questions for Sessions was the release by the House Intelligence Committee last week of a transcript of a private interview with Carter Page, a former foreign policy adviser to the campaign who acknowledged that he had contact with a high-level Russian official while on a trip to Russia last year.

Page told the panel he had informed some members of the Trump campaign about the trip, including Sessions. He said he mentioned in passing to Sessions that he was preparing to visit Russia and Sessions “had no reaction whatsoever.”

Shrinking GE Rattles Investors, Shares Hit 5-year Low

General Electric’s new Chief Executive John Flannery on Monday outlined steps that will turn the biggest U.S. industrial conglomerate into a smaller, more focused company, surprising some investors who sold the company’s shares to a five-year low.

Flannery’s plan to shrink GE’s multi-industry array of businesses was a reversal of the deal-driven empire building of his predecessors, Jeff Immelt and Jack Welch, and potentially a milestone in the decline of the conglomerate as a business strategy.

Other companies that once emulated the GE model of spreading bets among diverse industries are now unwinding their portfolios as well, something Immelt also did throughout his 16 years as CEO, even as he made acquisitions.

Flannery said he will pare GE down to three core businesses: power, aviation and healthcare. He will keep Immelt’s strategy of building software to complement GE’s machinery, albeit with a narrower focus and reduced budget.

For investors, Flannery’s decision to cut both the dividend and the 2018 earnings forecast by half added up to a whole that was less than they judged GE be worth last week.

GE shares fell to their lowest level in more than five years as investors worried the years-long overhaul would not pare down enough expenses or generate as much cash as they hoped. They closed off the day’s lows, down 7.2 percent to $19.02.

“They need to cut more cost,” said Scott Davis, an analyst at Melius Research. “GE is still a bloated company with duplicate costs up and down the organization.”

GE stock has effectively been dead money since September 2001, when Immelt took over, posting a negative total return even after reinvesting its juicy dividends. Once the most valuable U.S. publicly traded company, GE now has a market value of $168 billion, less than a fifth of Apple.

“You have pessimism around its portfolio of businesses mixed with a pretty harsh cut in the dividend,” said John Augustine, chief investment officer at Huntington Private Bank. “It took them years to get into this mess and it will take them several years to right the ship and get back into a stronger position.”

‘Soul of the Company’

Flannery, who took over as CEO on Aug. 1, said he was “looking for the soul of the company again” and would focus on “restoring the oxygen of cash and earnings to the company.”

He will cut its board to 12 from 18 members, and bring on three new directors early next year.

GE said it already has shed 25 percent of its corporate staff, meaning 1,500 jobs around the world, including some at its Boston headquarters. It is aiming to reduce overhead cost by $2 billion next year, half of that at its troubled power unit that sells electrical generation equipment.

The transition includes GE getting rid of at least $20 billion of assets through sales, spin-offs or other means.

GE will jettison businesses with “a very dispassionate eye,” Flannery said, keeping only units that offer growth, a leading market position and a large installed base.

GE said it would exit its lighting, transportation, industrial solutions and electrical grid businesses, all of which were widely expected, closing factories around the globe.

But it was vague about other disposals.

It plans to get rid of its 62.5-percent stake in oilfield services company Baker Hughes, only months after making the multi-billion dollar investment. Baker Hughes shares lost 3.2 percent.

Flannery offered no quick fixes for investors. He said power, one of the businesses GE would focus on, was “challenged,” but could be turned around in one to two years.

GE’s Digital unit, on which Immelt bet billions of dollars, would focus on selling apps to customers in its core businesses, Flannery said. He confirmed that the shift meant sales staff were being let go, as Reuters reported last week.

GE also will cut spending on the digital unit to $1.1 billion in 2018 from $1.5 billion in 2017. GE had previously said it would invest $2.1 billion in its digital unit in 2017, but that tally included money not tied to Predix, GE’s industrial-internet platform, GE said.

Flannery said there is “no retreat on the idea” of GE providing both applications and the Predix platform to connect industrial equipment to computers that can make machines run better. However, getting one of its key applications to run on Predix could take two more years.

Flannery added that some of its healthcare IT business, such as software for imaging and hospital staff scheduling, were still critical to the company and not likely to be divested.

Dividend Cut

The dividend cut, to 48 cents from 96 cents next year, is only the third in the company’s 125-year history and the first not during a broader financial crisis. It is expected to save about $4 billion in cash annually.

“This dividend cut will be a major disappointment to GE’s (roughly 40 percent) retail shareholder base,” said RBC Capital Markets analyst Deane Dray.

The cut will be the eighth-biggest dividend cut in history among S&P 500 companies, according to Howard Silverblatt, senior index analyst of S&P Dow Jones Indices. GE also had the biggest cut when it slashed its dividend by $8.87 billion in 2009, Silverblatt said.

GE forecast 2018 adjusted earnings of $1 to $1.07 a share, compared with its earlier estimate of $2 per share. Wall Street was expecting $1.16, according to Thomson Reuters I/B/E/S.

Industrial free cash flow will total just $6 billion to $7 billion next year, up from an estimated $3 billion in 2017, but far below earlier targets of $12 billion for 2017.

GE said the weak power business had largely prompted the dividend cut and lowered earnings forecast. Demand for new power plants will remain slow through 2019, Flannery predicted.

But GE also was to blame, he said.

“We did not manage the (power) business well,” he said. “That’s a fundamental change we need to make and that’s going to take some time. This is not a magic wand.”

North Korea Says US Carrier Groups Raise Nuclear War Threat

North Korea warned Monday that the unprecedented deployment of three U.S. aircraft carrier groups “taking up a strike posture” around the Korean peninsula is making it impossible to predict when nuclear war will break out.

North Korea’s U.N. ambassador, Ja Song Nam, said in a letter to Secretary-General Antonio Gutteres that the joint military exercises with South Korea are creating “the worst ever situation prevailing in and around the Korean peninsula.”

Along with the three carrier groups, he said, the U.S. has reactivated round-the-clock sorties with nuclear-capable B-52 strategic bombers “which existed during the Cold War times.”

He also said the U.S. is maintaining “a surprise strike posture with frequent flights of B-1B and B-2 formations to the airspace of South Korea.”

“The large-scale nuclear war exercises and blackmails, which the U.S. staged for a whole year without a break in collaboration with its followers to stifle our republic, make one conclude that the option we have taken was the right one and we should go along the way to the last,” Ja said.

He didn’t elaborate on what “the last” might be, but North Korea has launched ballistic missiles that have the potential to strike the U.S. mainland, and it recently conducted its largest-ever underground nuclear explosion. It has also threatened to explode another nuclear bomb above the Pacific Ocean.

The four-day joint naval exercises by the U.S. and South Korea, which began Saturday in waters off the South’s eastern coast, were described by military officials as a clear warning to North Korea. They involve the carrier battle groups of the USS Ronald Reagan, Theodore Roosevelt and Nimitz, which include 11 U.S. Aegis ships that can track missiles, and seven South Korean naval vessels.

Seoul’s military said in a statement that the exercises aim to enhance the combined U.S. and South Korean operational and aerial strike capabilities and to display “strong will and firm military readiness to defeat any provocation by North Korea with dominant force in the event of crisis.”

According to the U.S. Navy’s 7th Fleet, it is the first time since a 2007 exercise near Guam that three U.S. carrier strike groups have operated together in the western Pacific.

U.S. Defense Secretary Jim Mattis insisted on Monday that the carrier maneuvers are not extraordinary.

“There’s no big message” intended for North Korea or anyone else, he told reporters in an impromptu exchange in a Pentagon hallway. “This is what we normally do with allies.”

Reminded that it had been 10 years since the last three-carrier exercise, Mattis noted that the Navy has a limited number of carriers and can’t often put three in the same place.

“It’s just a normal operation,” he said.

The military drills come amid U.S. President Donald Trump’s visit to Asia, which has been dominated by discussions over the North Korean nuclear threat.

Ja accused the U.N. Security Council in Monday’s letter of repeatedly “turning a blind eye to the nuclear war exercises of the United States, who is hell bent on bringing a catastrophic disaster to humanity.” He said the exercises raise serious concern about “the double standard” of the U.N.’s most powerful body.

He also referenced Trump’s September speech to the U.N. General Assembly in which the president said that if the U.S. is “forced to defend itself or its allies, we will have no choice but to totally destroy North Korea.”

Trump tweeted soon after making the speech that Korea’s leadership “won’t be around much longer” if it continued its provocations, a declaration that led the North’s foreign minister to assert that Trump had “declared war on our country.”

Ja said Monday the U.S. “is now running amok for war exercises by introducing nuclear war equipment in and around the Korean peninsula, thereby proving that the U.S. itself is the major offender of the escalation of tension and undermining of the peace.”’

Ja asked Guterres to circulate the letter to the Security Council and the General Assembly, and also asked him to use his power under Article 99 of the U.N. Charter to bring to the Security Council’s attention “the danger being posed by the U.S. nuclear war exercises which are clearly threats to international peace and security.”

Mexico Readying Economic Response if US Exits NAFTA

Mexico’s government is preparing a macroeconomic response in case U.S. President Donald Trump makes good on threats to quit the North American Free Trade Agreement (NAFTA), an event which could wreak havoc on the Mexican economy and hurt the peso.

Mexico’s Foreign Minister Luis Videgaray said on Monday the government and central bank were preparing a plan to address the possibility of a future without NAFTA, but gave few details.

The government has said it is examining how it could adjust Mexican legislation to give investors certainty about their investments if the almost 24-year-old NAFTA collapses.

Underpinning some $1.3 trillion in annual trade between the United States, Canada and Mexico, NAFTA has been a central pillar of recent Mexican economic development. Nearly 80 percent of Mexican exports are shipped to the United States.

Trade negotiators from the United States, Mexico and Canada meet in Mexico City this week to continue talks on overhauling the accord, and Videgaray reiterated the government’s position that the expectation was that talks would ultimately succeed.

Mexico would continue to work on diversifying trade, protect foreign investment, review possible changes to tariff barriers, and prepare a macro-economic response from the finance ministry and the central bank, Videgaray added.

“These are the four lines a plan B must include,” he told Mexican radio. “We have to be prepared for all the scenarios and one of the scenarios is that the United States leaves the treaty, and as we have said, that is not the end of the world, the Mexican economy is much bigger than NAFTA.”

Separately, the International Monetary Fund said in a report on Monday that ending NAFTA would bring back World Trade Organization “most-favored nation” tariffs, which would disrupt Mexican-U.S. trade, and could crimp economic growth, dampen capital inflows and raise risk premia.

The IMF suggested that among various policy responses at Mexico’s disposal, “temporary foreign exchange interventions and liquidity provision could help smooth extreme volatility.”

Concerns that Trump could follow through on his threats to dump NAFTA have battered the Mexican peso in recent weeks.

Additionally, Mexico should continue to implement its structural reforms and boost efforts to diversify trading relationships, which would increase competitiveness and help economic growth over the medium-term, the IMF said.

The IMF sees Mexico’s economy growing 1.9 percent next year after projected expansion of 2.1 percent in 2017.

Bipartisan Analysis: Senate Bill Would Hike Taxes for 13.8 Million

Promoted as needed relief for the middle class, the Senate Republican tax overhaul would increase taxes for some 13.8 million moderate-income American households, a bipartisan analysis showed Monday.

The assessment by Congress’ nonpartisan Joint Committee on Taxation emerged as the Senate’s tax-writing committee began wading through the measure, working toward the first major revamp of the tax system in some 30 years.

Barging into the carefully calibrated work that House and Senate Republicans have done, President Donald Trump called for a steeper tax cut for wealthy Americans and pressed GOP leaders to add a contentious health care change to the already complex mix.

Trump’s latest tweet injected a dose of uncertainty into the process as the Republicans try to deliver on his top legislative priority. He commended GOP leaders for getting the tax legislation closer to passage in recent weeks and then said, “Cut top rate to 35% w/all of the rest going to middle income cuts?”

That puts him at odds with the House legislation that leaves the top rate at 39.6 percent and the Senate bill as written, with the top rate at 38.5 percent.

Trump also said, “Now how about ending the unfair & highly unpopular individual mandate in (Obama)care and reducing taxes even further?”

Overall, the legislation would deeply cut corporate taxes, double the standard deduction used by most Americans, and limit or repeal completely the federal deduction for state and local property, income and sales taxes. It carries high political stakes for Trump and Republican leaders in Congress, who view passage of tax cuts as critical to the GOP preserving its majorities at the polls next year.

With few votes to spare, Republicans leaders hope to finalize a tax overhaul by Christmas and send the legislation to Trump for his signature.

The key House leader on the effort, Rep. Kevin Brady, said he’s “very confident” that Republicans “do and will have the votes to pass” the measure this week.

Brady, chairman of the House Ways and Means Committee, said he doesn’t expect major changes to the bill as it moves to a final vote in the House. Still, he said Trump’s call for removing the requirement to have health insurance as part of the tax agreement “remains under consideration.”

Trump and the Republicans have promoted the legislation as a boon to the middle class, bringing tax relief to people with moderate incomes and boosting the economy to create new jobs.

“This bill is not a massive tax cut for the wealthy. … This is not a big giveaway to corporations,” Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee, insisted as the panel had its first day of debate on the Senate measure.

Hatch also downplayed the analysis by congressional tax experts showing a tax increase for several million U.S. households under the Senate proposal. Hatch said “a relatively small minority of taxpayers could see a slight increase in their taxes.”

The committee’s senior Democrat, Sen. Ron Wyden of Oregon, said the legislation has become “a massive handout to multinational corporations and a bonanza for tax cheats and powerful political donors.”

Tax increase for some

The analysis found that the Senate measure would increase taxes in 2019 for 13.8 million households earning less than $200,000 a year. That group, about 10 percent of all taxpayers, would face tax increases of $100 to $500 in 2019. There also would be increases greater than $500 for a number of taxpayers, especially those with incomes between $75,000 and $200,000. By 2025, 21.4 million households would have steeper tax bills.

The analysts previously found a similar magnitude of tax increases under the House bill.

A group of more than 400 millionaires and billionaires, including prominent figures such as Ben and Jerry’s founders Ben Cohen and Jerry Greenfield, designer Eileen Fisher and financier George Soros, asked Congress to reject the GOP tax plan and not give cuts to the super-wealthy like themselves.

“We urge you to oppose any legislation that further exacerbates inequality,” they said in a letter made public Monday.

Neither bill includes a repeal of the so-called individual mandate of Barack Obama’s Affordable Care Act, the requirement that Americans get health insurance or face a penalty. Several top Republicans have warned that including the provision would draw opposition and make passage tougher.

Among the biggest differences in the two bills that have emerged: The House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal unveiled by GOP leaders last week eliminates the entire deduction. Both versions would eliminate deductions for state and local income taxes and sales taxes.

Senate Majority Leader Mitch McConnell, R-Ky., asked whether the Senate’s proposed repeal of the property tax deduction could bring higher taxes for some middle-class Americans, acknowledged there would be some taxpayers who end up with higher tax bills.

“Any way you cut it, there is a possibility that some taxpayers would get a higher rate,” McConnell told reporters after a forum in Louisville, Kentucky, with local business owners and employees. “You can’t craft any tax bill that guarantees that every single taxpayer in America gets a tax break. What I’m telling you is the overall majority of taxpayers in every bracket would get relief.”

Biden Says he Wouldn’t Have Stepped in for Hillary Clinton

Former Vice President Joe Biden says he wouldn’t have agreed to replace Hillary Clinton as the Democratic presidential nominee under any circumstances.

Biden tells NBC’s “Today” show he had decided not to run last year, and says, “I would have never done that.”

He was asked about former Democratic National Committee chair Donna Brazile’s book, which says she considered replacing Clinton with Biden because of health concerns. Biden says, “I wouldn’t have taken” Clinton’s place as the party’s standard-bearer.

 

Biden says he was for Clinton, but that he worried about her prospects. He says not long before the election, “It hit me like a ton of bricks, there was no discussion of Issues” in her campaign.

 

Biden also said once again that he hasn’t decided about running in 2020.

 

 

 

EU Approves Economic Sanctions, Arms Embargo Against Venezuela

The European Union has approved economic sanctions, including an arms embargo on Venezuela.

EU foreign ministers meeting in Brussels announced the measures on Monday in response to regional elections last month, which they say worsened the country’s crisis.

The weapons ban is intended to prevent the government of President Nicolas Maduro from purchasing military equipment that could be used for repression or surveillance.

The sanctions also include setting up a system for asset freezes and travel restriction on some past and present Venezuelan officials close to Maduro.

Spain has long pushed for sanctions on those close to Maduro, but the EU has been divided over whom to target.

In Monday’s statement, ministers said they would focus on security forces, government ministers and institutions accused of human rights violations, and the disrespect of democratic principles or the rule of law.

Last Thursday, the U.S. imposed financial sanctions on 10 current and former Venezuelan officials because of corruption and abuse of power allegations related to Maduro’s crackdown on the opposition.

The EU also stressed that it would not recognize Venezuela’s pro-Maduro Constituent Assembly, whose 545 members took office in August and sidelined the opposition-led National Assembly. The EU said its creation has only served to “further erode democratic and independent institutions.”

Biden on 2020: ‘Not Sure It’s the Appropriate Thing’ to Do

Former Vice President Joe Biden said he is uncertain about a run for president in 2020, but indicated he’s looking for fresh blood to lead the Democratic Party back to the White House.

“I’ve done it a long time,” said Biden, who previously ran for president in 1988 and 2008, “and I’m just not sure it’s the appropriate thing for me to do.”

His comments came in an interview with Snapchat’s “Good Luck America” set to be released Tuesday morning, in one of Biden’s first on-camera interviews since leaving office in January. The Associated Press was provided with an exclusive preview of the interview.

Biden suggested that if “no one steps up,” he’d be open to giving it another try. 

“I’m not doing anything to run,” he said. “I’m not taking names, I’m not raising money, I’m not talking to anybody, but something’s got to happen.”

Democratic roster

Biden has launched a handful of outside political and policy organizations since leaving the Obama administration, including the Biden Foundation, formed to advocate for his domestic priorities.

The roster of Democrats considering a White House run has swelled well into the double-digits, with potential candidates emboldened by President Donald Trump’s historically low poll numbers.

Biden was interviewed alongside Ohio Gov. John Kasich, a Republican, at the University of Delaware last month.

“We’re both hoping that both our parties generate some real energetic people who have the depth and the capacity to do it,” Biden said of the pair.

Biden, 74, considered a run for the Oval Office in 2016, but decided against it, later citing the trauma of his son Beau’s death to cancer in May 2015 for keeping him from the race. The painful subject forms the story of his new memoir, Promise Me, Dad, set for release this week. Biden is launching a month-long tour to promote the book’s publication. He’s become a vocal critic of Trump’s administration in public appearances in recent months.

“We gotta turn this ship around,” Biden said of the country. “And I’d much prefer to be helping someone turn it around than being the guy trying to turn it around.”

Right decision in 2016

In an interview with Oprah Winfrey released Sunday, Biden said he regrets not being in the White House, but not his decision to stay on the sidelines last year. 

“I don’t regret the decision I made because it’s the right decision for my family,” he said.

Kasich, who has been an outspoken opponent of Trump’s since he challenged him for the Republican nomination in 2016, declined to address his own 2020 plans. “You hold the pen and the Lord will write the sentence,” he said.

Sexual Allegations Roil US Senate Race

Allegations of sexual misconduct against a Republican Senate candidate have thrown the party into chaos at a critical time – as Republicans make a major push to overhaul America’s tax code and as President Donald Trump concludes a marathon Asia trip. VOA’s Michael Bowman reports, many Republican lawmakers are denouncing or distancing themselves from firebrand Christian conservative Roy Moore, who, until last week, had been heavily favored to win next month’s special election for a Senate seat in Republican-leaning Alabama.

Venezuela Sets Foreign Debt Meeting for Monday Afternoon

Venezuela’s foreign debt renegotiation committee will meet with creditors at 2 p.m. (1800 GMT) on Monday at the government’s “White Palace” in downtown Caracas, the finance minister said on Saturday.

“Once again, we invite investors to register their participation in this meeting,” Simon Zerpa, who is also the finance boss of state oil company PDVSA but is on a U.S. sanctions list for alleged corruption, said in a Tweet.

Foreign investor sources had said Zerpa and committee head Tareck El Aissami, who is Venezuela’s vice president but also on a U.S. blacklist for alleged drug traffickers, would probably sit out the meeting to allay any fears about meeting them.

But Saturday’s exhortation by Zerpa, and the location of the meeting right opposite the Miraflores presidential palace, appear to indicate the meeting will not be a low-profile affair.

Socialist leader Nicolas Maduro’s move a week ago to summon bondholders for talks about “restructuring” and “refinancing” some $60 billion in bonds has spooked markets worried Venezuela is heading for a default amid U.S. financial sanctions.

President Donald Trump’s measures against the Maduro administration, which it accuses of being a “dictatorship” that has impoverished Venezuela’s 30 million people through corruption and incompetence, effectively bar U.S. banks from rolling over the country’s debt into new bonds.

Venezuela did, however, appear to be honoring its most recent debt payment: a $1.2 billion payment due on a bond from state oil company PDVSA. Two investors told Reuters they had finally received payment, albeit delayed.

It is unclear how widespread investor participation in Monday’s meeting in Caracas will be. U.S.-based creditors are not prohibited from attending the meeting, but are barred from dealings with officials like Zerpa and El Aissami.

Chairman: House Won’t Agree to Nix Property Tax Deduction

The chairman of the House’s tax-writing committee said Sunday that he’s confident that chamber won’t go along with the Senate’s proposal to eliminate the deduction for property taxes, setting up a major flashpoint as Republicans in the House and Senate aim to put a tax cut bill on President Donald Trump’s desk before Christmas.

 

The GOP is moving urgently to push forward on the first rewrite of the U.S. tax code in three decades, but key differences promise to complicate the effort.

 

Among the biggest differences in the two bills that have emerged: the House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal unveiled by GOP leaders last week eliminates the entire deduction.

 

The deduction is particularly important to residents in states with high property values or tax rates, such as New Jersey, Illinois, California and New York. Congressman Kevin Brady, chairman of the House Ways and Means Committee, said he worked with lawmakers in those states to ensure the House bill “delivers this relief,” and he was committed to ensuring it stays in the final package.

 

“It’s important to make sure that people keep more of what they learn, even in these high-tax states,” Brady, R-Texas, said during an appearance on “Fox News Sunday.”

 

Both the House and Senate bill would eliminate deductions for state and local income taxes and sales taxes paid. Sen. Chuck Schumer, D-N.Y., said Republicans should fully restore what is referred to as the SALT deduction, or millions of middle-class families would end up paying higher federal income taxes, not less.

 

“The House’s so-called ‘compromise’ would be saying to the middle class we’ll only chop off four of your fingers instead of all five,” Schumer said in a statement.

 

 

In Florida, All Eyes on Puerto Rican Voters After Maria

The arrival of more than than 130,000 Puerto Ricans in Florida since Hurricane Maria has some officials anticipating a political shakeup in a battleground state dominated by the Republican party.

 

Both parties are actively courting new arrivals to Florida, which President Donald Trump won last year by 112,000 votes out of 9.6 million cast.

 

Many Puerto Ricans have expressed outrage over Trump’s handling of the storm but have applauded efforts by Republican Gov. Rick Scott to welcome them.

 

As U.S. citizens, Puerto Ricans can vote in federal elections when they move to the mainland. Newcomers must register as voters by next July 30 to vote in primaries ahead of the 2018 general election of a new governor to replace term-limited Scott and choose Florida’s congressional delegation.

 

Javier Gonzalez has joined a human tide of more than 130,000 U.S. citizens arriving in Florida since Hurricane Maria wrecked Puerto Rico, grateful for a place to start over but resenting how their island has been treated since the disaster.

 

More than a million Puerto Ricans — about 5 percent of Florida’s population — already call the state home, and given the outrage many feel over President Donald Trump’s handling of the storm, political observers say this voting bloc could loosen the Republican Party’s hold on this battleground state.

 

Gonzalez, 38, saw the storm destroy the restaurant he opened with his father five years ago. Without power or reliable water, he became violently ill from food poisoning for three weeks. Finally, he packed his bags, determined to make his future in Miami instead.

 

“There is resentment, and we feel abandoned compared to Texas and Florida,” Gonzalez said. “We were desperate for help.”

 

Like any Puerto Rican, Gonzalez can vote in all elections now that he’s moved to the mainland. He doesn’t plan to register for any party, but he follows the news and understands their platforms. He’s aware of Trump’s tweets.

 

“It’s not right that we’ve fought from World War I, to Vietnam and Afghanistan and that the first thing the president says is: ‘You have a large debt, big problems and have cost us millions,'” Gonzalez added.

 

Puerto Ricans are not the gift to the Republican Party that the anti-Castro Cuban diaspora has been historically. They’ve tended to favor Democrats, given their support for public education and social services. Around 70 percent of Florida’s non-Cuban Latinos voted for Hillary Clinton.

 

Both parties are courting the new arrivals to Florida, which Trump won last year by just 112,000 votes out of 9.6 million cast.

 

“There is an intent to grab those who are coming,” said Rep. Robert Asencio, a Democrat of Puerto Rican descent who represents Miami in the Florida House and leads the Miami-Dade Committee for Hurricane Maria Relief.

 

“A lot of my colleagues say they are not politicizing this, but there is an effort to bring people either to the Democratic or the Republican side,” Asencio said.

 

Newcomers must register by next July 30 to vote in 2018 for a new governor to replace term-limited Republican Gov. Rick Scott and choose Florida’s congressional delegation, now 11 Democrats and 16 Republicans. Democratic U.S. Senator Bill Nelson also defends his seat next year, and Scott, who has been applauded for helping evacuees, is expected to challenge him in what could be a close race.

 

Scott set up three disaster relief centers to help arrivals with driver’s licenses, job searches, and disaster aid applications. Scott also asked education officials to waive public school enrollment rules for evacuated islanders, and to give college-bound evacuees the same tuition breaks state residents get.

 

Asencio calls Scott’s actions “damage control,” given the multimillionaire governor’s close relationship with Trump, who offended Puerto Ricans by tweeting they wanted “everything to be done for them” rather than taking responsibility for their own recovery. They also resent Trump’s rating of his own disaster response as a “10 out of 10,” blaming his administration for delays that exposed their families to illness and misery.

 

The island still faces a lengthy and painful recovery after the storm took down the entire electrical grid, leaving hospitals in the dark and closing schools for several weeks. Initial projections that 95 percent of the people will have power restored by year’s end now look optimistic.

 

Maria’s evacuees are following waves of people frustrated by Puerto Rico’s unemployment and debt crisis who settled in Central Florida, shifting from New York, the favored destination of previous generations. Of the more than 140,000 islanders estimated to have left since the storm, more than 130,000 went to Florida, where Puerto Ricans may soon displace Cubans as the largest Latino group.

 

State Rep. Rene Plasencia, a Republican from Orlando, predicts that Scott’s warm welcome will leave a bigger impression on the newcomers than any Trump tweets.

 

“For whatever people think of the president, you have to take into consideration the actions of Governor Scott,” said Plasencia, whose mother and wife are from Puerto Rico. “People aren’t making decisions out of a sequence of tweets… It makes good news, but it doesn’t make political shifts.”

 

Billionaires Charles and David Koch also are involved, funding the Libre Initiative, which welcomed hundreds of evacuees on the first cruise ship to arrive from San Juan.

 

Cesar Grajales, who lobbies for Libre, says they’re helping evacuees learn English and connect with community and business leaders.

 

Democrats hope Colombian-American Annette Taddeo’s recent underdog state Senate victory against a well-funded Republican in South Florida shows her anti-Trump message will keep resonating.

 

“It is a strong indication that voters are paying attention, and they are angry,” said Cristobal Alex, president of the Latino Victory Project. “We wouldn’t have the devastation and abandonment of Puerto Rico without Donald Trump. People will look at that.”

 

On the island, Puerto Rico’s lack of statehood means they can’t vote in general presidential elections, and can only send a non-voting representative to Congress. On the mainland, they’ll have more power.

 

“I know for a fact that we are well educated and we are going to come here to work,” Gonzalez said. “And yes, we are going to make a voice. We are going to make a bigger voice than before.”

 

 

Emirates Airlines Orders 40 Boeing 787s in $15B Deal

Emirates Airlines agreed to buy 40 Boeing 787-10s in a deal worth more than $15 billion.

The purchase was announced Sunday at the Dubai Air Show by the largest airline in the Middle East.

Deliveries of the wide-body, twin-engine planes are set to begin in 2022.

Boeing’s website says the aircraft typically carries 330 passengers with a range of 11,900 kilometers.  

The manufacturer says the 787 is 25 percent more fuel-efficient than the aircraft it replaces.

Also, Azerbaijan Airlines announced a $1.9 billion deal for more 787s, five to carry passengers and two more to haul freight.

West Virginia Mine Sites Touted for Agriculture Potential

West Virginia could produce profitable niche crops grown on reclaimed mine sites.

At least that’s what Nathan Hall, president of Reclaim Appalachia envisions.

Hall spoke about uses for reclaimed sites at the West Virginia Good Jobs Conference last Tuesday at Tamarack. The goal of the conference is to bring together entrepreneurs, funders, local community leaders and government agencies to trade ideas, provide mentorship and support entrepreneurs in southern West Virginia.

Reclaim’s first operational site is next to the Buck Harless Wood Products Industrial Park in Holden, a property owned by the Mingo County Redevelopment Authority.

Former miners

Reclaim and Refresh Appalachia have partnered to develop an active commercial agroforestry site, which is on about 50 acres of land that was mined and reclaimed in the late 1990s, managing crops including blackberries, hazelnuts, lavender and pawpaws. The site also has animals including chickens, hogs, goats and honeybees, which are managed with “rotational grazing techniques.”

Hall said he first started work on the Mingo County site early last year. The business has five full time crew members and one crew chief. Of those six employees, four are former coal miners.

According to Reclaim’s website, the organization intends to replicate the model on more mined properties and on a larger scale.

“With any post surface mine landscape, this model works well,” Hall said. “It’s especially suited to areas where it’s not feasible to turn into a big shopping center or a golf course.”

Long-term approach

Hall said the model is designed to be long term and said sites like these may not see profit until a few years down the road.

“This approach is never profitable in year one or even year two,” he said. “It’s more of a three-five year horizon to get into the black. A lot of agricultural investments like this are longer term.

“With animals, you have to establish a breeding stock. It takes some time before you’re able to send animals to slaughter,” Hall said. “And with perennial plants, it takes a year of establishment to get fruit, sometimes three to four years. We are looking at this as a longer-term investment but this is a pretty common way to invest in projects you see on the West Coast and the Northeast. A lot of investors know this is not a quick turnaround.”

However, down the road, Hall said he envisions West Virginia as being primary producers of niche produce on the East Coast.

“If we produce enough at a low cost and upgrade to high value products, move it six to nine hours away, there is a huge amount of ways to use these lands in ways that we’ve barely started to scratch the surface,” he said.

Crops, animals for rocky soil

Hall mentioned the possibility of products including lavender or grapes — plants that can thrive in the rocky soil.

“You could even have things like goat meat, which is something you don’t think about as something to eat in this area,” Hall said. “There are huge markets for it, maybe not here but the conditions are great for these sites.”

Hall spoke about some of the struggles with using these sites including the rocky terrain itself.

“You think about nice farmland where there is this loose, fluffy, brown soil you can almost scoop your hand into,” he said. “This soil, you can’t get a shovel to go more than 2 inches. The only thing that can survive is something with a shallow breeding system.”

Controlling invasive species

Another issue is invasive species of plants that were planted for reclamation. However, Hall said animals including goats and hogs can eat the shrubby plants while also adding nutrients to the soil.

“I’m a fan of high-intensity rotational grazing,” he said. “You have people out there tending fences and maintaining the animals and the site regularly. It has a more diversified income. And there is a benefit to the land through manure and reducing unwanted vegetation. You can eventually replant to better quality pastures if you do rotational.”

He said stacking systems including orchards and animals have been efficient in maintaining the land along with adding a larger labor force.

“You have the animals in between the orchard growth keeping the areas maintained,” he said. “It’s benefiting the roots and the trees. You’re also able to sell the meat and eggs while harvesting fruit and berries.”

Not the first attempt

Hall isn’t the first or the only person to grow crops on reclaimed mine sites. Hall mentioned one in particular back in the 1990s in Kentucky where there was a hog farm on a former mine site.

“There are a lot of activity in these spaces,” he said. “We are more focused on stacking systems and having this multifaceted approach. Other folks want one piece. It’s an interesting time to be involved. We can learn from each other and grow a new sector of the economy.”