President Donald Trump’s tariffs on imported aluminum and steel are disrupting business for hundreds of American companies that buy those metals, and many are pressing for relief.

Nearly 2,200 companies are asking the Commerce Department to exempt them from the 25 percent steel tariff, and more than 200 other companies are asking to be spared the 10 percent aluminum tariff.

Other companies are weighing their options. Jody Fledderman, chief executive of Batesville Tool & Die in Indiana, said American steelmakers have already raised their prices since Trump’s tariffs were announced last month. Fledderman said he might have to shift production to a plant in Mexico, where he can buy cheaper steel.

A group of small- and medium-size manufacturers are gathering in Washington to announce a coalition to fight the steel tariff.
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German Chancellor Angela Merkel backs the idea of a European Monetary Fund, provided national governments have sufficient oversight, sources close to her said before a visit by the French president.

President Emmanuel Macron, who will meet Merkel in Berlin on Thursday, is pushing hard for bold euro zone reforms to defend the 19-member currency bloc against any repeat of the financial crisis that took hold in 2009 and threatened to tear it apart.

His vision includes turning Europe’s existing ESM bailout fund into a European Monetary Fund (EMF). At one point, Macron also suggested the zone should have its own budget worth hundreds of billions of euros, an idea that does not sit well with Germany.

Merkel told lawmakers from her conservative bloc on Tuesday that she favored the EMF concept as long as member states retain scrutiny over the body, participants at the meeting said.

“It’s not that one side is putting the brakes on and the other pushing ahead,” one of the participants at Tuesday’s meeting said. “We want to find a good reform path together.”

German conservatives worry that an EMF could fall under the purview of the European Commission and could use German taxpayers’ money to fund profligate states. They also fear the Bundestag, Germany’s lower house of parliament, would lose its ability to veto euro zone aid packages.

Merkel told the meeting that an EMF should be incorporated into European law via a change in the EU treaty, though she did not make this a stipulation for creating it, participants said.

European treaty change is a tricky feat that could take time to achieve, but by not categorically insisting on it Merkel leaves wiggle room for her talks with Macron.

The chancellor’s remarks to her parliamentary bloc tread a careful line between Macron’s drive for bold euro zone reform and her conservatives’ push to retain scrutiny of any EMF.

A succession of bailouts for Greece aroused stiff opposition in Germany. The Bundestag approved them all, but the rise of the anti-euro Alternative for Germany (AfD) – now the main opposition party – has since heightened the conservatives’ wariness of going too far with euro zone reforms.

“Angela Merkel must not become Macron’s assistant,” the AfD’s leader in parliament, Alexander Gauland, said in a statement, urging her to distance the government from the French leader’s plans.

Reform road map

One participant at Tuesday’s meeting of lawmakers with Merkel said she wanted an EMF to act with conditionality – the same approach taken by the International Monetary Fund, which attaches strict reform conditions to aid.

In line with leading members of her conservatives in parliament, she also rejected plans floated by the European Commission to make use of a specific EU legal provision to develop the existing euro zone bailout fund into an EMF.

Merkel’s coalition partners, the left-leaning Social Democrats (SPD), sympathize with Macron and want him to be rewarded for his efforts to reform the French economy, well aware that a large chunk of French voters remains susceptible to far-right and far-left populists skeptical about the EU.

France and Germany, which account for around 50 percent of euro zone output, are essential to the reform drive. But while they often put on a strong show of political unity and shared intent, the devil is often in the detail.

On Tuesday, Merkel said creating a euro zone banking union was a priority for her, but she also broadened out the reform question to include a European asylum system, as well as foreign, defense and research policy.

Framing reform as such a broad issue risks diluting Macron’s drive to beef up the euro zone with extra funding fire power.

In Brussels, senior EU officials are playing down expectations for rapid and substantial progress. They hope the next couple of months can lay the groundwork for what will be agreed over the coming years.

“We hope to get an early harvest in June and a road map for the rest,” said one senior official, describing the Commission’s hopes for a Franco-German deal to conclude some euro zone reforms at a summit on June 28-29 and agree a schedule for further moves.

 
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The European Commission will put forward a proposed free-trade agreement with Japan for fast-track approval Wednesday, hoping to avoid a repeat of the public protests that nearly derailed a trade pact with Canada two years ago.

The European Union and Japan concluded negotiations to create the world’s largest economic area in December, signaling their rejection of the protectionist stance of U.S. President Donald Trump. Now they want to see it go into force.

The agreement would remove EU tariffs of 10 percent on Japanese cars and the 3 percent rate for most car parts. It would also scrap Japanese duties of some 30 percent on EU cheese and 15 percent on wines, and secure access to large public tenders in Japan.

Canada deal memories

The commission, which negotiates trade agreements for the EU, will present its proposals to the 28 EU members, along with another planned trade agreement with Singapore. EU countries, the European Parliament, and the Japanese parliament will have to give their assent before the trade pact can start.

The EU is mindful of protests against and criticism of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) in 2016, which culminated in a region of Belgium threatening to destroy the deal. It provisionally entered force last September.

Both Brussels and Tokyo want to ensure the agreement can enter force early in 2019, ideally before Britain leaves the EU at the end of March. If it does, it could apply automatically to Britain during a transition period until the end of 2020.

Otherwise, it might not.

Before Brexit

Many of Japan’s carmakers serve the EU from British bases, and it has said having a deal in force during the transition would buy it more time to establish a separate trade agreement with Britain.

One reason the Japan deal may get rapid approval is that it does not deal with investment protection, which critics say allows multinational companies to influence public policy with the threat of legal action.

The agreement could then enter force after approval by the national governments and the European Parliament, rather than also having to secure clearance from national and even regional parliaments.

In fact, EU and Japanese negotiators have not agreed on the way in which foreign investors should be protected.
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The city of Yanan, a major wind power base in northwest China’s Shaanxi province, has introduced a lottery system to decide which wind projects will go ahead this year, a sign that grid constraints are forcing local governments to restrict capacity.

China has been aggressively developing alternative power as part of its efforts to cut pollution and greenhouse gas emissions. Grid-connected wind power reached 163.7 gigawatts (GW) last year, up 10.1 percent on the year and amounting to 9.2 percent of total generating capacity.

But capacity expansion has outpaced grid construction, and large numbers of wind, solar and hydropower plants are unable to deliver all their power to consumers as a result of transmission deficiencies, a problem known as curtailment.

Grid constraints

According to a Yanan planning agency notice seen by Reuters, the city was given permission to build 900 megawatts of wind capacity this year, but 1,300 megawatts (or 1.3 GW) have already been declared eligible for construction, forcing authorities to whittle the total number of projects.

“After study it was decided that the lottery method should be used to determine what plans will be submitted (for approval) to the provincial development and reform commission,” it said.

The authenticity of the document was confirmed by a local municipal government official. He declined to give his name or provide details.

China aims to raise the share of non-fossil fuels in its total energy mix to around 15 percent by the end of the decade, up from 12 percent in 2015.

​Renewable power grows

But while renewable power has grown rapidly, around 80 GW of wind capacity was still unable to transmit electricity to consumers in 2015. Wasted wind power amounted to around 12 percent of total generation in 2017, according to the energy regulator.

An environmental group is suing grid companies in the northwest for failing to fulfill its legal obligation to maximize purchases of local renewable power.

To try to prevent waste, China has drawn up guidelines aimed at preventing new plant construction in regions suffering from surplus capacity.

It also released draft guidelines last month for a new renewable energy certificate system that will force regions to meet mandatory clean electricity utilization targets. The plan is expected to help alleviate curtailment.
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Chevron said on Tuesday two of its executives were arrested in Venezuela, a rare move likely to spook foreign energy firms still operating in the OPEC nation stricken by hyperinflation, shortages and crime.

Venezuelan Sebin intelligence agents burst into the Petropiar joint venture’s office in the coastal city of Puerto La Cruz on Monday and arrested the two Venezuelan employees for alleged wrongdoing, a half-dozen sources with knowledge of the detentions told Reuters.

Venezuela’s Information Ministry and state oil company PDVSA did not respond to a request for information about the detentions, which come amid a crackdown on alleged graft in the oil sector.

One of the detainees, Carlos Algarra, is a Venezuelan chemical engineer and expert in oil upgrading whom Chevron had brought in from its Argentina operations. The other, Rene Vasquez, is a procurement adviser, according to his LinkedIn profile.

Arrests comfirmed

The U.S. company confirmed the arrests, which are believed to be the first to affect a foreign oil company’s direct employees.

“Chevron Global Technology Services Company is aware that two of its Venezuelan-based employees have been arrested by local authorities,” Chevron said in a statement.

“We have contacted the local authorities to understand the basis of the detention and to ensure the safety and wellbeing of these employees. Our legal team is evaluating the situation and working towards the timely release of these employees.”

Disagreements lead to arrests

A Chevron spokeswoman declined to provide further details on the case or the status of its operations. The U.S. State Department did not immediately respond to a request for comment.

The executives were arrested after disagreements with their PDVSA counterparts over procurement processes, two of the sources said.

The arrests highlight risks for foreign companies in Venezuela, home to the world’s biggest crude reserves but heaving under a fifth straight year of recession. Some insiders say a fracturing ruling elite is using the purge to wage turf wars or settle scores.

“Our view has been that oil industry companies would do well to be cautious and stop assuming that good relations with PDVSA can last forever due to a common interest in pumping oil,” said Raul Gallegos, associate director with the consultancy Control Risks. “The level of corruption in PDVSA, especially under a military administration, can and will trump production logic.”

Other oil executives jailed

President Nicolas Maduro since last year has overseen the arrest of dozens of oil executives, including the former energy minister and PDVSA president.

The purge comes years after industry analysts began criticizing PDVSA for widespread graft. The government long decried such accusations as “smear campaigns.” But last year, Maduro changed his tone and started blaming “thieves” for rampant graft in the oil sector and an economic crisis that has spawned malnutrition, disease and emigration.

Vowing a cleanup, Maduro replaced many jailed executives with soldiers, but the unpopular management has spurred a wave of resignations.
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Americans who waited until the last day to file their federal taxes faced a major hurdle hours before the midnight deadline. 

The Internal Revenue Service website’s “Direct Pay” page, which allows filers to pay their taxes directly from their bank account free of charge, crashed Tuesday. 

The IRS still expects Americans to pay their taxes but U.S. Treasury Secretary Steve Mnuchin said extensions would be granted to those affected when the site was up again.

“We’ll make sure taxpayers have extensions once the system comes up to make sure they can use it and it in no way impacts people paying their taxes,” Mnuchin told reporters in New Hampshire. “It was just a technical issue we’re working through — a high-volume technical issue that impacted the system.”

For most of Tuesday, the message on the Direct Pay page described a “Planned Outage: April 17, 2018 – December 31, 9999.”The IRS removed the link to that page later in the day.

Pages on the IRS website used to view account information, make a direct payment or set up a payment plan were all not functioning most of the day Tuesday.

It’s unclear when and why the failure occurred.

President Donald Trump’s top economic adviser, Larry Kudlow, offered a deadpan reaction when asked about the failure.

“The IRS is crashing? Sounds horrible. Really bad,” he said during a briefing with reporters in West Palm Beach, Florida. “I hope it gets fixed.”
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Concerned by a rise in near misses by unmanned aircraft and commercial jets, the world’s airlines back development of a U.N.-led global registry for drones, an executive of their trade group said Tuesday.

The International Air Transport Association backs efforts by the U.N. aviation agency to develop such a registry, which could also help track the number of incidents involving drones and jets, said Rob Eagles, IATA’s director of air traffic management infrastructure.

IATA would consider collaborating with the International Civil Aviation  Organization (ICAO) with using the registry for data analysis to improve safety.

ICAO is developing the registry as part of broader efforts to come up with common rules for flying and tracking unmanned aircraft.

“One of the important things we would like to see on a registry as well is the compilation of data which would include incident and accident reporting,” Eagles said in an interview on the sidelines of IATA’s Safety and Flight Ops Conference in Montreal.

Airlines and airport operators are looking to drone registries, geo-fencing technology and stiffer penalties for operating drones near airports. They hope these steps will ensure flying remains safe as hobbyists and companies like

Amazon.com use more drones.

More close calls

In Britain, the number of near misses between drones and aircraft more than tripled between 2015 and 2017, with 92 incidents recorded last year, according to the U.K. Airprox Board.

Air New Zealand said last month that a flight from Tokyo with 278 passengers and crew on board encountered a drone estimated to be just 5 meters away from the Boeing 777-200 jet during its descent into Auckland.

A single registry would create a one-stop shop that would allow law enforcement to remotely identify and track unmanned aircraft, along with their operators and owners.

It’s not yet clear what kind of drones would be listed in the registry, although IATA would support inclusion of most drones, including large unmanned aircraft and smaller ones used for commercial and industrial purposes, Eagles said.

“The intention at present is to merge this activity into the ICAO registry for manned aircraft, so that the sector has a single consolidated registry network,” ICAO spokesman Anthony Philbin said by email.
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Starbucks said Tuesday it will close all of its more than 8,000 company-owned U.S. stores on May 29 to educate employees about racial bias in an attempt to prevent more acts of discrimination.

The announcement was made days after the arrest of two African American men who sat in a Starbucks in the northeastern city of Philadelphia. The arrests were captured on video and widely circulated on social media, triggering protests and calls for a boycott.

“I’ve spent the past few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it,” said CEO Kevin Johnson. “Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities.”

The coffeehouse chain, which is also closing its corporate offices on May 29, said a curriculum is being developed for its 175,000 employees, with assistance from several racial bias training experts. They include Equal Justice Initiative executive director Bryan Stevenson, NAACP Legal Defense Education Fund president Sherrilyn Ifill and former attorney general Eric Holder.

The two men who were arrested were later released because of a lack of evidence that a crime had been committed. Philadelphia media reported the men had been waiting for a friend at the time of their arrests.

Starbucks said the employee who called police on the men no longer worked at that location.

Johnson, who met with the men, called the arrests “reprehensible.”
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Some of Europe’s biggest venture capital firms are buying into sales of new virtual coins or asking their investors to give them the freedom to do so, in a sign of mainstream investor backing for the booming but controversial crowd-funding tool.

Germany’s HV Holtzbrinck Ventures, which has more than 1 billion euros ($1.23 billion) under management, is talking to its investors about changing the terms of its next fund so it can buy tokens directly, Jan Miczaika, a partner at the firm, told Reuters.

Lakestar, the Zurich-based firm run by Klaus Hommels, has made at least four investments in crypto and blockchain-related businesses since early 2017, among them ShapeShift, an exchange, and Blockchain, a wallet provider, and it is preparing to invest in a combination of coin and equity stakes in more.

Smaller and newer funds like BlueYard Capital and Fabric Ventures are focusing specifically on investments around blockchain — a distributed ledger technology that can remove the need for centralizing institutions — often by buying virtual coins.

Venture capitalists usually take equity stakes in start-ups, gaining a say in how the company is run and legal and governance certainties over their investments. Buying into initial coin offerings (ICOs), as the sale of digital tokens is known, can be far more risky. They offer little more than a promise the tokens will be worth more in future.

But with hundreds of start-ups — ICOs last year raised $6.3 billion — seeking to raise capital for new projects, investors say that to gain access to cutting-edge technology they need the flexibility to compete.

“It’s the internet in the early 1990s, you have to experiment,” said Nicolas Brand, a partner at Lakestar. “I have to find the best way of backing the best entrepreneurs and we need to be agile in how we invest.”

Regulators have raised serious questions about the transparency of ICOs and the risks of scams, although authorities in countries from Switzerland to France have disclosed plans to attract new launches.

Supporters say blockchain will disrupt industries from finance to logistics and that ICOs are a novel way of crowd-funding.

Tokens are the route to make money. They embody the idea that consumers will need to own and use them to buy services, from playing computer games to online shopping. When demand for those products spreads, the token prices will rise, creating value for earlier owners like venture capitalists.

“The [blockchain] technology is very exciting. Ninety-five percent of the tokens will go to zero. On the other hand, the other 5 percent are very interesting and could go on to revolutioniZe the market,” said Miczaika at HV Holtzbrinck.

Equity to ICO

Unlike some big U.S. funds, most big European venture capitalists are avoiding the world’s biggest ICO, by messaging app Telegram, people familiar with the funds say, citing concerns about the amount — a reported $1.7 billion — it has raised.

Broader worries about the quality of teams looking to cash in on ICOs are common, and some funds say that far from being a threat to the venture capital model, most ICOs are a fad.

Those that survive will find themselves wanting the support and hand-holding that conventional venture investment offers.

“We need to get our heads around ICOs, but I don’t see it as a threat. I don’t think I’ve missed a company which I wish I’d invested in but couldn’t because it did an ICO,” said Suranga Chandratillake, partner at London-based Balderton Capital.

To date, venture activity has focused on crypto companies like HV Holtzbrinck’s investment in ICO platform Upvest or Point Nine Capital’s stake in peer-to-peer bitcoin lender Bitbond, which tapped into the crypto-trading craze and followed on from a series of investments by well-known U.S. venture funds.

Investors said the next round of activity would target projects offering the building blocks for blockchain’s development, such as software development networks. They will benefit if the largely unproven technology matures.

Buying into the coins is necessary for aligning themselves to such projects, they argue.

“We came to the conclusion that if we really want to do decentralized tokens we have to be a part of it,” said Ciaran O’Leary, who co-founded Berlin-based BlueYard and invested in the 2017 ICO by data storage network Filecoin, which was worth an estimated $200 million.

Risks

ICOs also present major governance and legal concerns, including how to store coins safely after several large hacks.

To keep their investments safe, venture firms are looking at storing coins offline or in wallets where no transaction can take place without the agreement of multiple individuals.

Max Mersch, a partner at Fabric Ventures, said his firm had also introduced multi-year lock-ups prohibiting quick dumping of coins, to encourage longer-term investment horizons and so partners had time to shape governance.

Risks aside, venture capitalists say the potential impact of tokens is too hard to ignore.

“A token is a very powerful innovation and in the best token projects, the fund-raising is actually a byproduct,” said Lakestar’s Brand said. “The token is about activating network effects on steroids,” he said, predicting they would have the power to take on “rival monoliths like Facebook”.
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International Monetary Fund experts say the global economy will continue growing well for the next two years, but expect expansion to slow after 2020.

IMF research director Maurice Obstfeld said Tuesday fading trade could hurt growth and, “The first shots in a potential trade war have now been fired.” He repeated a warning the international rules that nurtured “unprecedented” economic growth after World War II are at risk of being “torn apart.”

Many economists worry that Trump administration efforts to slap tariffs on China and other U.S. trading partners are sparking retaliatory taxes on U.S.-made products that raise the cost of trading and hurt demand, stifling economic growth. Administration officials disagree, and insist their trade and tax policies will boost growth and not spark soaring deficits.

Trade squabbles are a key issue this week as top economic officials and experts gather from 189 nations in Washington for meetings of the IMF and the World Bank.

Obstfeld and his colleagues are also worried that efforts to stimulate economic recovery from the 2008 recession, such as low interest rates and massive purchases of bonds, are now ending. They put the current global growth rate at 2.9 percent, and say this moment of good growth is the time to make changes in tax and other policies that will help economies weather inevitable future downturns.

Growth in advanced economies like the United States is hampered by an aging population with larger numbers of people retiring and leaving the workforce. Slow growth in productivity and high levels of government and private debt are also threats to future growth.

The IMF predicts the world’s second-largest economy, China, will expand at a 6.6 percent rate this year and 6.4 percent in 2019. The global lender says China will continue changing its economic focus from investment and manufacturing toward consumption and services, but warns that a rising debt clouds the nation’s medium-term outlook.

 
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Every year when the pastoralist men in Fatima Demba’s Mauritanian village return from their months-long journey to find pastures and water, the women erupt in wild celebrations.

“We draw henna tattoos on our bodies, we braid our hair, we wear our nicest clothes,” she said, re-adjusting her bright yellow and blue robe.

Yet although she longs for her husband to come home, Demba sees one benefit in his absence.

“I am in charge of everything,” she told the Thomson Reuters Foundation, sitting in the shade of a mud-brick hut in Mafoundou village. “Our money, our field of millet — even the village’s borehole is my responsibility.”

Prolonged dry spells in this southern region of Mauritania have depleted grazing land, forcing pastoralists to travel ever longer distances to search for food and water for their herds.

That gives women in these predominantly male-dominated societies newfound power to manage harvests, the family’s remaining animals and household finances, experts say.

“Women pastoralists are the first up in the morning and the last to go to bed at night,” said Aminetou Mint Maouloud, who started the country’s first association of women herders in 2014.

“Whether it’s making butter from cow milk, fetching wood or tending to ill animals, it all comes down to women,” she added.

Worsening Drought

Livestock herding is a traditional way of making a living in West Africa’s Sahel, a semi-arid belt below the Sahara, but herders have become increasingly vulnerable to food insecurity as climate change disrupts rain patterns in the region.

That is particularly true in the impoverished desert nation of Mauritania, according to El Hacen Ould Taleb, head of the Groupement National des Associations Pastorales (GNAP), a charity working with pastoralists.

“Transhumance — the seasonal migration of pastoralists and their herds to neighboring Senegal or Mali — normally starts in October but the rains were so bad last year that people started leaving in August,” he said.

His organization is helping pastoralists find smarter migration routes — with water sources and markets along the way, for example — as part of the British government-funded Building Resilience and Adaptation to Climate Extremes and Disasters (BRACED) program.

Demba, whose husband has been gone for seven months, says she does not know when he will return.

“He has no choice, he must save our animals,” she said, pausing to take a sip of a glass of green mint tea.

In the meantime, “the family depends on me,” she added.

Under-recognized

Although women play a crucial role in pastoralism, it is rarely acknowledged, according to Mint Maouloud.

“A man will listen to everything his wife whispers on the pillow, but in the morning she won’t get any credit for it,” she said.

To change that, her association has elected a council of eight women from villages around the country. Together they lobby the country’s government on pastoralism issues.

“We tell them where an animal clinic might be needed, or which markets are best for specific kinds of animals,” she explained.

Their suggestions could find an unusually understanding ear.

Since Mauritania’s livestock ministry was created in 2014, both of its leaders have been women.

Vatma Vall Mint Soueina, the current minister, says women seeking political roles is “extremely encouraging” — and that she has seen women grow in economic clout.

“We are seeing women becoming more independent, by virtue of being so active economically,” she said from her office in Nouakchott, the capital.

Financial Independence

In Hadad village, amid stretches of sand and dirt dotted with the odd wilting tree, a dozen women huddle under a large tent covered with striped rugs.

Mariem Mint Lessiyad, a tiny woman with piercing brown eyes, chats energetically to the group, interrupted only by a bleating baby goat.

She leads a cooperative of 100 pastoralist women from nearby villages who buy chickens and sheep to raise and slaughter, selling affordable portions to local families.

“There is less meat going around, so we need to be clever with how we consume it,” she said.

The women buy a sheep for 12,000 Mauritanian ouguiya ($34), for instance, and make a profit of about 2,000 ouguiya ($6) per animal, she said.

They plan to reinvest the surplus in setting up a leather goods business.

“We can’t rely on our husbands to support us financially. They are too poor, especially now that they have to spend more money on keeping our animals healthy,” Mint Lessiyad said.

Mint Maouloud and her association are trying to persuade financial institutions to make it easier for women to get loans, so groups like Mint Lessiyad’s can get ahead.

Access to finance can be problematic, she said, with some banks outright refusing to lend money to women.

“It’s important to make women herders more independent financially, so they don’t rely on their husbands’ generosity or understanding,” she added.
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