California Gov. Jerry Brown and lawmakers asked the U.S. government Friday for $7.4 billion to help rebuild after a cluster of fires tore through the heart of wine country, killing more than 40 people and leaving thousands without housing.

 

In a letter to the White House, Brown joined California’s U.S. senators and 39 members of its congressional delegation to urge President Donald Trump and Congress to quickly adopt a disaster-related appropriations measure to support the state’s recovery.

 

Brown said the funding would go toward cleanup and programs to support housing, transportation, agriculture, environmental protection and other services for those affected by the fires.

A series of blazes that started in Northern California the night of Oct. 8 killed at least 43 people and destroyed about 8,900 homes and other buildings. At the peak, thousands of firefighters battled 21 blazes that burned simultaneously.

Officials have not yet assessed all the damage and effects of the fires, but the governor’s office and the affected counties determined that $7.4 billion in federal funding is needed to help California recover, the letter says.

 

The wildfires significantly damaged farmland, rangeland and watersheds, and more than a third of the funding requested, $3.1 billion, would go toward helping agricultural industries bounce back, including affected wineries, California officials said.

 

“The full economic impact to the agricultural, tourism, hospitality, and wine industries is still not known,” the letter says. “Nine California wineries were destroyed and 21 were damaged in the nation’s most prominent winemaking region.”

Congress last month approved $576.5 million in aid for wildfires earlier this summer in California and the U.S. West. It also has approved billions in relief funding to help states affected by hurricanes and other weather-related disasters this year.

 

Trump pledged aid for California fire victims on Oct. 10, saying he had told Brown that “the federal government will stand with the people of California.”

 

Brown said he has asked the California Department of Finance to expedite doling out $41.5 million to support the immediate needs of victims not eligible for federal aid.

During the wildfires last month, Brown declared a state of emergency for the Northern California counties of Solano, Napa, Sonoma, Yuba, Butte, Lake, Mendocino and Nevada as well as Orange County in the south.
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The largest port complex in the nation has set goals to drastically reduce air pollution over the next several decades.

The plan approved Thursday at a meeting of the governing boards of the twin ports of Los Angeles and Long Beach outlines strategies for improving equipment and efficiency to eventually move cargo with zero emissions.

The ports estimate that the cost of the efforts ranges from $7 billion to $14 billion, but the plan does not make clear who will pick up the tab. And detailed plans for implementing each program will require approval by each port’s harbor commission.

“Collaboration will be critical to our success,” Long Beach Harbor Commission President Lou Anne Bynum said in a statement. “Moving the needle to zero requires all of us — the ports, industry, regulatory agencies, environmental groups and our communities — to pool our energy, expertise and resources.”

The plan has raised concerns that the enormous cost of the clean air goals could make the two ports less attractive in the face of competition from ports on the East and Gulf coasts.

The Los Angeles Times reported that Pacific Merchant Shipping Association President John McLaurin told commissioners he feared the cost “and its potential negative impacts on port competitiveness and the one in nine jobs in the Southern California region that are reliant on the ports.”

Largest pollution source

The neighboring ports 20 miles south of downtown Los Angeles are the single largest fixed source of air pollution in Southern California, according to the South Coast Air Quality Management District.

Main points of the plan include clean-engine milestones for trucks, creating incentives to speed up fleet turnover to near-zero and zero-emission trucks, and efficiency programs for truck reservations and staging yards. The timeline for achieving a zero-emission truck fleet is 2035.

Other elements include requiring terminal operators to use zero-emission equipment by 2020, if possible, or the cleanest available equipment.

The plan also pursues electrification of terminal equipment and expands on-dock rail, with a goal of moving 50 percent of all cargo out of the ports by train.

The ports of Los Angeles and Long Beach sprawl over more than 23 square miles (60 square kilometers) of land and water. They handle about 40 percent of U.S. container import traffic, about 25 percent of total exports, and together rank as the ninth-largest port complex in the world, according to the ports.
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A Nigerian militant group whose attacks on energy facilities in the Niger Delta last year helped push Africa’s biggest economy into recession said Friday that it had ended its cease-fire.

The Niger Delta Avengers announced a halt to hostilities in August 2016, although they carried out attacks in October and November last year.

“Niger Delta Avenger’s cease-fire on Operation Red Economy is officially over,” the group said on its website.

“Our next line of operation will not be like the 2016 campaign, which we operated successfully without any casualties; this outing will be brutish, brutal and bloody,” it said in a section of its statement addressed to oil companies.

The move threatens Nigeria’s fragile economic growth and poses a further security challenge for President Muhammadu Buhari, in addition to the jihadist Boko Haram insurgency in the northeast and rising secessionist sentiments in the southeast.

The government has been in talks for more than a year to address grievances over poverty and oil pollution, but local groups have complained that no progress has been made, despite Buhari’s receiving a list of demands at a meeting last November.

Buhari’s office did not immediately comment.

The 2016 attacks cut oil production from a peak of 2.2 million barrels per day (mbpd) to near 1 mbpd, the lowest level in Africa’s top oil producer for at least 30 years.

Result was recession

The attacks, combined with low oil prices, caused the OPEC member’s first recession in 25 years. Crude sales make up two-thirds of government revenue and most of its foreign exchange. Nigeria came out of recession in the second quarter of this year, mostly because of the rise in oil production after attacks stopped and as prices strengthened.

The Niger Delta Avengers, who say they want a greater share of Nigeria’s energy wealth to go to the impoverished swampland region, said they decided to end the cease-fire because they had “lost faith” in local leaders.

“We can assure you that every oil installation in our region will feel the warmth of the wrath of the Niger Delta Avengers,” it said.

There have been no substantial attacks in the region since January.

Eric Omare, president of the Ijaw Youth Council, which represents the largest ethnic group in the Niger Delta, said the government had paid only “lip service” to communities’ concerns.

“The truth is that the federal government has not demonstrated any seriousness towards addressing the issues that led to the Niger Delta agitation,” Omare said, while adding that his group sought a “peaceful dialogue.”

Nigeria’s economy grew 0.55 percent year-over-year in the second quarter, largely on higher oil receipts.

The World Bank cut its 2017 growth forecast in October to 1 percent from 1.2 percent, as the oil production increase was lower than expected and non-oil sector growth was subdued.
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Venezuela’s cash-strapped government invited creditors to a Nov. 13 meeting in Caracas on Friday, after announcing plans to potentially restructure some $60 billion in bonds that sent the OPEC nation’s debt prices plunging.

President Nicolas Maduro on Thursday vowed to make a $1.2 billion bond payment but said future payments would be refinanced. Investors were unsure about what he meant, because U.S. sanctions has taken refinancing off the table.

Many saw the announcement as paving the way for default – despite Venezuela’s promises to the contrary – because the debt burden has left the country desperately short of basic goods such as food and medicines.

A default could create a sovereign debt crisis of a scale not seen in Latin America since the massive 2001 default in Argentina that shut it out of markets for years.

Investors say a newly created debt negotiation commission has little chance of making progress, in part because it is headed by Vice President Tareck El Aissami – who is blacklisted by the United States for alleged drug dealing.

“This commission will lay the groundwork for true and transparent dialogue between the government and bondholders,” El Aissami, who has no known experience in debt negotiations, said in a televised address.

Investors were bewildered that Maduro, who narrowly won election in 2013 after the death of Hugo Chavez, appeared to be opening the door to default immediately after authorizing more than $2 billion to bond payments.

Market wisdom had been that Venezuela would not make such payments if it expected to end up in default. It will need those funds because it will be locked out of financial markets.

“Nobody has ever paid a bond in full only to announce default the next day,” said an executive from one local brokerage, who asked not to be identified.

In addition to outstanding bonds, Venezuela owes some $26 billion to bilateral and multilateral creditors and $24 billion in commercial loans, according to New York-based Torino Capital.

It put the total public sector debt at $152 billion, though Maduro’s announcement appeared to be focused primarily on bonds.

The government and PDVSA owe some $1.6 billion in bond service and delayed bond interest payments by the end of the year, plus another $9 billion in bond servicing throughout 2018.

‘Zero Possibility’

U.S. President Donald Trump, accusing Maduro of dictatorship, barred U.S. banks from participating in or negotiating new Venezuelan debt deals. That rules out swap operations, which allow investors to voluntarily exchange near-term debt for new securities that mature later.

Restructuring – which generally follows a default – refers to an involuntary arrangement under which creditors agree to change payment conditions. But they usually do so only in exchange for major economic reforms, which Maduro has balked at.

“A restructuring has a very close to zero possibility given U.S. sanctions, time constraints given the payment schedule, and the fact that Venezuela obviously does not have the technical capacity to negotiate,” said Jim Barrineau, co-head of emerging market debt at Schroders.

The International Monetary Fund issued a warning to Venezuela on Friday for failing to provide it with economic data on time and gave it six months to address the problem. The IMF could issue a “declaration of censure” for non-compliance, two sources told Reuters.

Although the IMF’s warning is unrelated to Maduro’s announcement, it added to investor worries about the economy.

Venezuelan bond prices took a beating on Friday.

Near-term maturities were hardest hit. The PDVSA 2021 bond dropped 20 percentage points to a bid price of 27 points.

Longer-dated bonds fared better, with PDVSA’s 2027 bond slipping 4.83 points to bid 25.13. Venezuela’s 2018 bond was down 31 points.

Investors holding longer-dated paper generally expect a default will take place well before maturity, while the profitability of short-term bets is more dependent on the bonds being paid off.

Bank of America on Friday estimated that bond prices would drop to around 20 cents on the dollar if a default took place.

There was no immediate impact on oil exports and production from Maduro’s announcement.

EMTA, a trade association that sets practices for emerging markets, recommended that Venezuelan bonds not under U.S. sanctions continue trading with accrued interest – a sign Venezuela is for now expected to keep up with its payments.

The Washington-based International Institute of Finance (IIF) held an investor call for bondholders in the event talks with the government go ahead, according to two market sources who participated in the call.

Most were not planning to go to Caracas, the sources said. IIF declined to comment.

‘Nobody Trusts His Government’

Leaders of the opposition-led National Assembly said on Friday that any restructuring would be invalid without congressional approval.

“Maduro won’t be able to restructure the debt because nobody in the world trusts his government,” National Assembly head Julio Borges said.

Though there is widespread public disquiet at economic hardship, the opposition coalition is cracking after a disastrous showing at last month’s gubernatorial elections, and there is speculation Maduro may bring forward the presidential vote, which had been expected for the end of 2018.

Vice President El Aissami said a $1.2 billion payment on PDVSA’s 2017N bond that matured on Thursday had already been transferred. The Central Bank’s website showed a drop of $430 million in international reserves, signaling the government may have dipped into reserves to pay the PDVSA bond.

That pushed reserves to $9.7 billion, their lowest level in at least 20 years.

The company spent days trying to make payment on its 2020 bond, which finance industry sources attributed to nervousness by bank officials over possible U.S. sanctions violations.

Principal payments on the two bonds were moving through the clearing system without a problem, a source familiar with the matter said on Friday.

The next hard payment deadline for PDVSA is an $81 million bond payment that was due on Oct. 12 but on which the company delayed payment under a 30-day grace period. Failing to pay that on time would trigger a PDVSA default, investors say.

That would expose Venezuela and PDVSA to lawsuits by creditors seeking to seize assets such as refineries in the United States.
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In a warehouse outside Paris, university drop-out Celine Galland stacks  palettes and fills out an inventory sheet, part of a logistics apprenticeship she hopes will put a decade of short-term contracts and unemployment behind her.

France’s jobless rate has sat stubbornly above 9 percent for nearly a decade. President Emmanuel Macron blames a notoriously rigid labor market and has two ideas to change it: more vocational training for school leavers and making it easier for workers to retrain and change jobs.

On Nov. 10, his government will open talks with unions, business leaders and the regions on how to reform the apprentice system, cutting through its bureaucracy and financing.

The former investment banker promises an extra 15 billion euros ($17 billion) for professional training over five years, but beyond the money he will need to counter public prejudice if he is to reverse a slide in apprentice numbers.

University did not sit well with Galland, who quit after several weeks. Since then the 31-year-old has worked at menial jobs in McDonald’s and local supermarkets.

“What I love about this is the variety of tasks,” she enthused last week at an AFTRAL logistics and transport training centre in Savigny-le-Temple, east of Paris. “There’s no boredom in this job.”

France’s unemployment rate is more than double Britain’s and several points higher than Germany’s. Particularly troubling for Macron’s centrist government is youth unemployment — nearly one in four 15-24 year olds are without a job, according to official data, a major drag on long-term growth.

Macron has already defied union-led street protests to loosen labor laws, necessary he says to make hiring and firing workers cheaper and easier for small companies.

Leftist opponents and hardline trade unions accuse him of abandoning France’s long-cherished ideals of an egalitarian society to side instead with corporate interests.

But the 39-year-old president is standing firm. He promises greater support for workers through an overhaul of training and a revamped welfare system, pointing to the Nordic model of flexibility in the labor market underpinned by security through the social welfare system.

He will, though, need to overturn a widely-held perception that apprenticeships are a poor alternative to school and university diplomas, which France obsesses over.

“We have to put an end to French defeatism, to people saying that apprenticeships are for those who have failed,” Macron said this month while visiting a college.

Decline in apprenticeships

France’s existing apprenticeship system involves the signing of a contract between the apprentice, the employer and the training institution. Students earn a percentage of the minimum wage and gain workplace experience, while companies can source talent and receive welfare payment waivers.

France lags behind numerous European peers. OECD data from 2016 shows 4.9 percent of French youths aged between 16 and 29 completed apprenticeships in 2012, compared with 8.6 percent in Denmark and 15.1 percent in Germany.

As a recovery in the euro zone’s second biggest economy gathers strength, employers complain they cannot fill vacancies despite the near double-digit jobless rate because of a skills gap — a mismatch Macron says apprenticeships can help fix.

“Our figures have shown a clear trend for several years: 80-95 percent of our apprentices are in jobs within six months of finishing,” said Pierre de Surone, director of the Savigny-Le-Temple training center. “Apprenticeship works!”

While the number of higher education apprentices is rising, the number of youngsters gaining college-level apprenticeship diplomas fell to 260,000 in 2016 from 335,000 a decade ago, Education Ministry data shows.

That presents a challenge for Macron. Data published by Cereq, a French government think-tank, shows apprenticeships boost the employability of individuals with low academic qualifications more than for those at higher education grade.

“We don’t value practical jobs, technical jobs. If we don’t give recognition to these jobs then we’re in trouble,” said Gabriel Schumacher, director at a local distribution company.

 
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President Donald Trump is making his mark on the US Federal Reserve, naming former investment manager and central bank governor Jerome Powell to replace Janet Yellen, whose term expires in February. If confirmed by the Senate, the next chairman of the Federal Reserve will oversee U.S. monetary policy and maintain the stability of the world’s largest economy. Mil Arcega has more from the nation’s capital.
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Venezuela on Thursday announced plans to restructure its burgeoning foreign debt, a move that may lead to a default by the cash-strapped OPEC nation whose collapsing socialist economy has left its population struggling to find food and medicine.

President Nicolas Maduro vowed to make a $1.1 billion payment on a bond maturing Thursday, but also created a commission to study “restructuring of all future payments” in order to meet the needs of citizens.

Venezuela has few avenues to do that though because of sanctions by the United States that bar American banks from participating in or even negotiating such deals.

Thus, Maduro’s most readily available recourse to ease payments is unilaterally halting them.

“I am naming a special presidential commission led by Vice President Tareck El Aissami to begin refinancing and restructuring all of Venezuela’s external debt and (begin) the fight against the financial persecution of our country,” Maduro said in a televised speech.

Billions in bonds

Venezuela and state-owned companies have $49 billion in bonds governed by New York Law and promissory notes, according to New York-based Torino Capital.

The government and state oil company PDVSA owe about $1.6 billion in debt service and delayed interest payments by the end of the year, plus another $9 billion in bond servicing in 2018.

The next hard payment deadline for PDVSA is an $81 million bond payment that was due Oct 12 but on which the company delayed payment under a 30-day grace period. Failing to pay that on time would trigger a default, investors say.

That would likely make countries less willing to do business with Venezuela, aggravating shortages of food and medicine and creating further problems for its oil industry, which is hobbled by under-investment.

Wall Street for years pumped billions of dollars into Venezuela by way of bond purchases, passing off the revolutionary rhetoric of the ruling Socialist Party as bluster that belied an iron-clad willingness to pay its debts.

Maduro surprised many by maintaining debt service after the 2014 crash in oil prices, diverting hard currency away from imports of food and medicine toward Wall Street investors.

PDVSA carried out a debt renegotiation in 2016.

But that option was taken off the table after U.S. President Donald Trump levied sanctions blocking the purchase of new debt issued by Venezuela and government-owned entities.

Investors puzzled

Investors seemed puzzled by Maduro’s statements Thursday, which neither clearly declared default nor laid out a path to easing payment burden.

“At no moment did he say they wouldn’t pay, so it’s not a default,” said Alejandro Grisanti of Caracas-based consultancy Ecoanalitica. “But in this environment, Maduro has no way to restructure or refinance as he said today.”

And the mere presence of El Aissami on the new debt commission makes it a non-starter for U.S. financial institution. He was blacklisted this year by U.S. Treasury Department on accusations he is involved in drug trafficking.

The increased pressure of the sanctions has made banks more nervous about working with PDVSA, according to financial industry sources, leading to delays in simple operations.

PDVSA struggled for days to deliver funds for a bond payment due last week amid confusion over which banks were charged with transferring the money.

​Toll on Venezuelans

Critics say Maduro’s decision to put debt above imports has taken a huge toll on the population.

Child malnutrition has reached the scale of a humanitarian crisis in four Venezuelan states, according to a May 2017 report by Caritas Internationalis, a Rome-based nongovernmental organization with links to the Catholic Church. Medicine shortages have also left children dying of preventable diseases.

Officials say ideological adversaries are exaggerating problems for political effect.

But the situation is a stark contrast to the oil boom years of late socialist leader Hugo Chavez, who spent generously on social welfare programs while borrowing profusely to keep spending at full tilt.

Venezuela’s debt is the highest yielding of emerging market bonds measured by JPMorgan’s EMBI Global Diversified Index , paying investors an average of 31 percentage points more than comparable U.S. Treasury notes.

That is nearly double the spread on bonds issued by Mozambique, which is already in default, and more than six times the spread on bonds from war-torn Ukraine.
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Officials in the U.S. and Puerto Rico gave differing views Thursday on when power will be fully restored to the U.S. territory after Hurricane Maria hit as a Category 4 storm more than a month ago.

Ricardo Ramos, director of the state-owned power company, said the utility has restored 35 percent of the electrical system’s regular output and expects to reach 50 percent by mid-November and 95 percent by mid-December. But Ray Alexander, director of contingency operations at the U.S. Army Corps of Engineers, said the corps’ goal is to have 50 percent restored by the end of November and 75 percent by the end of January.

 

“We are focused on executing the mission we’ve been assigned,” Alexander said at a hearing in Washington, adding that the agency has been working with the U.S. Department of Energy to help develop a more resilient electrical grid for Puerto Rico.

Gov. Ricardo Rossello criticized the Army Corps of Engineers earlier this week for what he said was a lack of urgency in responding to Puerto Rico’s island-wide blackout.

The discrepancy came as President Donald Trump cleared the way for additional federal funding for Puerto Rico by amending a September disaster declaration to increase the share of rebuilding and recovery costs borne by the U.S. government.

Trump had already authorized the Federal Emergency Management Agency to pay 100 percent of some cleanup and emergency costs for 180 days. Washington will now pay 90 percent of the additional cost of rebuilding Puerto Rico, including repair of public infrastructure like hospitals, bridges and roads and restoration of the island’s devastated power grid.

Typically, U.S. states cover 25 percent of those costs, with federal taxpayers covering 75 percent. Puerto Rico’s finances were in shambles even before the storm made landfall in September.

A large swath of the island still has no electricity, and complaints are widespread among business owners who say losses are mounting and from parents who say their children need to start school. Nearly 20 percent of the island remains without water since Maria hit Sept. 20 with winds of up to 154 mph, killing at least 55 people. Tens of thousands have lost their jobs and some say more than 470,000 people could leave the island in upcoming years.

“If we don’t re-establish power and other basic services, the damage to our economy will be even greater,” said Puerto Rico’s public affairs secretary, Ramon Rosario. “We cannot allow that, and we have established clear goals.”

The difference in estimates came two days after the state-owned utility canceled a heavily scrutinized $300 million contract awarded to Whitefish Energy Holdings. The Montana-based company is located in the hometown of U.S. Interior Secretary Ryan Zinke and had only two-full time employees before the storm hit. Crews subcontracted by Whitefish will finish their projects before Nov. 30, officials said.

Ramos continued to praise Whitefish despite local and federal audits of the contract. “They’ve performed very well,” he said.

Ramos said he is recommending that Oklahoma-based Cobra Acquisitions, which has a $200 million contract with the government, subcontract the workers Whitefish had employed if the contract allows for it. Ramos also said Cobra’s contract is “practically” the same as the one awarded to Whitefish.

He said the power company sent letters requesting help and received responses from the American Public Power Association and Edison Electric Institute. In addition, New York Gov. Andrew Cuomo announced Thursday that his state’s power authority would send 350 workers and 220 bucket trucks next week along with special equipment. It also is sending a tactical power restoration team that includes 28 engineers and 15 damage assessment experts.

The Army Corps of Engineers said it also expects about 2,100 workers to arrive by mid-November to help restore power.

 
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Ivanka Trump, U.S. President Donald Trump’s daughter and informal adviser, told a summit in Tokyo Friday that the world must boost women and minority participation in the fields of science, technology, engineering and math (STEM).

Ivanka Trump, seen as an important influence on her father, has made women’s issues one of her signature policy areas since beginning her role at the White House. Her comments came ahead of her father’s trip to Asia, his first since taking office in January, that begins in Japan on Sunday.

 

WATCH: Ivanka Trump on Women’s Participation in STEM Fields

“Female and minority participation in STEM fields is moving in the wrong direction,” she said at the World Assembly for Women summit. “We must create equal participation in these traditionally male-dominated sectors of our economy.”

She said her father’s tax reforms, unveiled by Republicans in the U.S. House of Representatives on Thursday, would benefit American families.

“We are seeking to simplify the tax code, lower rates, expand the child tax credit, eliminate the marriage penalty, and put more money back in the pockets of hard-working Americans,” she told a meeting room in a Tokyo hotel that had a number of empty seats.

Japanese Prime Minister Shinzo Abe said his government was aiming to mobilize women in Japan’s workforce and boost economic growth, launching policies such as improved childcare in his “Womenomics” program.

“We’ve put our full strength into creating an environment where it’s easy for women to work,” Abe said in an opening address to the conference. “I really feel that Japan has come a long way,” he said. 

Japan’s gender gap remains wide despite such efforts, with little progress made since Abe vowed at the United Nations in 2013 to create “a society where women can shine.”

Japan ranked 114 out of 144 in the World Economic Forum’s 2017 Global Gender Gap report, sandwiched between Guinea and Ethiopia and down 13 places since Abe took power.

Abe appointed only two women to ministerial posts in a Cabinet reshuffle in August, down from three and five respectively in his previous two Cabinets. Only 14 percent of Japan’s lawmakers are women.

Men also dominate decision-making in business in Japan. Only 3.7 percent of Japanese-listed company executives were women at the end of July, according to the Cabinet Office, barely changed from 3.4 percent a year earlier.

 
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