Month: July 2018

India’s ‘Worst Water Crisis in History’ Leaves Millions Thirsty

Weak infrastructure and a national shortage have made water costly all over India, but Sushila Devi paid a higher price than most. It took the deaths of her husband and son to force authorities to supply it to the slum she calls home.

“They died because of the water problem, nothing else,” said Devi, 40, as she recalled how a brawl over a water tanker carrying clean drinking water in March killed her two relatives and finally prompted the government to drill a tubewell.

“Now things are better. But earlier … the water used to be rusty, we could not even wash our hands or feet with that kind of water,” she told the Thomson Reuters Foundation in Delhi.

India is “suffering from the worst water crisis in its history”, threatening hundreds of millions of lives and jeopardising economic growth, a government think-tank report said in June.

From the northern Himalayas to the sandy, palm-fringed beaches in the south, 600 million people – nearly half India’s population – face acute water shortage, with close to 200,000 dying each year from polluted water.

Residents like Devi queue daily with pipes, jerry cans and buckets in hand for water from tankers – a common lifeline for those without a safe, reliable municipal supply – often involving elbowing, pushing and punching.

On the rare occasions water does flow from taps, it is often dirty, leading to disease, infection, disability and even death, experts say.

“The water was like poison,” said Devi, who still relies on the tanker for drinking water, outside her one-room shanty in the chronically water-stressed Wazirpur area of the capital Delhi.

“It is better now, but still it is not completely drinkable. It is alright for bathing and washing the dishes.”

Water pollution is a major challenge, the report said, with nearly 70 percent of India’s water contaminated, impacting three in four Indians and contributing to 20 percent of the country’s disease burden.

Yet only one-third of its wastewater is currently treated, meaning raw sewage flows into rivers, lakes and ponds – and eventually gets into the groundwater.

“Our surface water is contaminated, our groundwater is contaminated. See, everywhere water is being contaminated because we are not managing our solid waste properly,” said the report’s author Avinash Mishra.

Loss of livelihood

Meanwhile, unchecked extraction by farmers and wealthy residents has caused groundwater levels to plunge to record lows, says the report.

It predicts that 21 major cities, including New Delhi and India’s IT hub of Bengaluru, will run out of groundwater by 2020, affecting 100 million people.

The head of WaterAid India VK Madhavan said the country’s groundwater was now heavily contaminated.

“We are grappling with issues, with areas that have arsenic contamination, fluoride contamination, with salinity, with nitrates,” he said, listing chemicals that have been linked to cancer.

Arsenic and fluoride occur naturally in the groundwater, but become more concentrated as the water becomes scarcer, while nitrates come from fertilisers, pesticides and other industrial waste that has seeped into the supply.

The level of chemicals in the water was so high, he said, that bacterial contamination – the source of water-borne diseases such as diarrhoea, cholera and typhoid – “is in the second order of problems”.

“Poor quality of water – that is loss of livelihood. You fall ill because you don’t have access to safe drinking water, because your water is contaminated.”

“The burden of not having access to safe drinking water, that burden is greatest on the poor and the price is paid by them.”

Frothy lakes and rivers

Crippling water problems could shave 6 percent off India’s gross domestic product, according to the report by the government think-tank, Niti Aayog.

“This 6 percent of GDP is very much dependent on water. Our industry, our food security, everything will be at stake,” said Mishra.

“It is a finite resource. It is not infinite. One day it can (become) extinct,” he said, warning that by 2030 India’s water supply will be half of the demand.

To tackle this crisis, which is predicted to get worse, the government has urged states – responsible for supplying clean water to residents – to prioritise treating waste water to bridge the supply and demand gap and to save lives.

Currently, only 70 percent of India’s states treat less than half of their wastewater.

Every year, Bengaluru and New Delhi make global headlines as their heavily polluted water bodies emit clouds of white toxic froth due to a mix of industrial effluents and domestic garbage dumped into them.

In Bengaluru – once known as the “city of lakes” and now doomed to go dry – the Bellandur Lake bursts into flames often, sending plumes of black smoke into sky.

The Yamuna river that flows through New Delhi can be seen covered under a thick, detergent-like foam on some days.

On other days, faeces, chemicals and ashes from human cremations float on top, forcing passers-by to cover their mouths and noses against the stench.

That does not stop 10-year-old Gauri, who lives in a nearby slum, from jumping in every day.

With no access to water, it is the only way to cool herself down during India’s scorching summers, when temperatures soar to 45 Celsius (113 Fahrenheit).

“There usually is not enough water for us to take a shower, so we come here,” said Gauri, who only gave her first name, as she and her brother splashed around in the filthy river.

“It makes us itchy and sick, but only for some time. We are happy to have this, everyone can use it.”

 

Likely Impact of US-China Trade War: Prices Up, Growth Down

The world’s two biggest economies have fired the opening shots in a trade war that could have wide-ranging consequences for consumers, workers, companies, investors and political leaders.

The United States slapped a 25 percent tax on $34 billion worth of Chinese imports starting Friday, and China is retaliating with taxes on an equal amount of U.S. products, including soybeans, pork and electric cars.

The United States accuses China of using predatory tactics in a push to supplant U.S. technological dominance. The tactics include forcing American companies to hand over technology in exchange for access to the Chinese market, as well as outright cyber-theft. Trump’s tariffs are meant to pressure Beijing to reform its trade policies.

Though the first exchange of tariffs is unlikely to inflict much economic harm on either nation, the damage could soon escalate. President Donald Trump, who has boasted that winning a trade war will be easy, said Thursday that he’s prepared to impose tariffs on up to $550 billion in Chinese imports — a figure that exceeds the $506 billion in goods that China actually shipped to the United States last year.

Escalating tariffs would likely raise prices for consumers, inflate costs for companies that rely on imported parts, rattle financial markets, cause some layoffs and slow business investment as executives wait to see whether the Trump administration can reach a truce with Beijing. The damage would threaten to undo many of the economic benefits of last year’s tax cuts.

A full-fledged trade war, economists at Bank of America Merrill Lynch and elsewhere warn, risks tipping the U.S. economy into recession.

And those caught in the initial line of fire — U.S. farmers facing tariffs on their exports to China, for instance — are already hunkered down and fearing the worst. The price of U.S. soybeans has plunged 17 percent over the past month on fears that Chinese tariffs will cut off American farmers from a market that buys about 60 percent of their soybean exports.

“For soybean producers like me this is a direct financial hit,” Brent Bible, a soy and corn producer in Romney, Indiana, said in a statement from the advocacy group Farmers for Free Trade. “This is money out of my pocket. These tariffs could mean the difference between a profit and a loss for an entire year’s worth of work out in the field, and that’s only in the near term.”

Even before the first shots were fired, the prospect of a trade war was worrying investors. The Dow Jones industrial average has shed nearly 1,000 points since June 11.

The Chinese currency, the yuan, has dropped 3.5 percent against the U.S. dollar over the past month, giving Chinese companies a price edge over their U.S. competition. The drop might reflect a deliberate devaluation by the Chinese government to signal Beijing’s “displeasure over the state of trade negotiations,” according to a report Thursday from the Institute of International Finance, a banking trade group.

The Trump administration sought to limit the impact of the tariffs on U.S. households by targeting Chinese industrial goods, not consumer products, for the first round of tariffs. But that step drives up costs for U.S. companies that rely on Chinese-made machinery or components and may force them to pass them along to their business customers, and eventually to consumers.

If you like Chick-fil-A sandwiches, for instance, you may feel the impact of the tariffs. Charlie Souhrada, a vice president of the North American Food Equipment Manufacturers, says the duties could raise the cost of a pressure cooker made by one of its members, Henny Penny. Chick-fil-A uses the cooker for its sandwiches. The administration has placed “these import taxes squarely on the shoulders of manufacturers and by extension consumers,” Souhrada said.

The Federal Reserve is already picking up signs that the threat of a trade war is causing businesses to rethink investment plans. In the minutes from its June 12-13 meeting, the Fed’s policymaking committee noted: “Contacts in some districts indicated that plans for capital spending had been scaled back or postponed as a result of uncertainty over trade policy,”

And if Trump extends the tariffs to $550 billion in Chinese imports, there’s no way consumers could avoid being caught in the crossfire: The taxes would have to hit consumer products like televisions and cellphones.

Consider what happened to the price of washing machines that were subjected to a separate series of Trump tariffs in January. Over the past year, their price has surged more than 8 percent, compared with a slight drop in overall appliance prices.

Even the first round of tariffs means that “American consumers are one step closer to feeling the full effects of a trade war,” said Matthew Shay, president of the National Retail Federation.

“These tariffs will do nothing to protect U.S. jobs, but they will undermine the benefits of tax reform and drive up prices for a wide range of products as diverse as tool sets, batteries, remote controls, flash drives and thermostats,” Shay said. “And students could pay more for the mini-refrigerator they need in their dorm room as they head back to college this fall… a strategy based on unilateral tariffs is the wrong approach, and it has to stop.”

Trump Tariffs Take Effect; China Retaliates

U.S. tariffs against Chinese imports took effect early Friday, a day after President Donald Trump made clear he is prepared to sharply escalate a trade war between the world’s two biggest economies.

The administration started imposing tariffs at 12:01 a.m. Eastern time Friday on $34 billion worth of Chinese imports, a first step in what could become an accelerating series of tariffs. 

China responds

Shortly after the tariffs took effect, China said it was “forced to make a necessary counterattack” to a U.S. tariff hike, but gave no immediate details of possible retaliation.

Later the Chinese foreign ministry confirmed retaliatory tariffs on U.S. goods “took effect immediately” after Washington raised import duties on its goods.

A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase. But Beijing previously issued a $34 billion list of American goods, including soybeans, electric cars and whiskey, it said would be subject to 25 percent tariffs.

The Commerce Ministry on Friday criticized Washington for “trade bullying” following the tariff hike in a spiraling dispute over technology policy that companies worry could chill global economic growth.

The Asian financial markets took Friday’s developments in stride.

Japan’s main stock market index, the Nikkei 225, gained 1.1 percent while the Shanghai Composite Index added 0.5 percent. Hong Kong’s Hang Seng rose 0.8 percent. Shares also gained in early European trading.

Hostilities could grow

Trump discussed the trade war Thursday with journalists who flew with him to Montana for a campaign rally. The president said U.S. tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

After that, the hostilities could intensify: Trump said the U.S. is ready to target an additional $200 billion in Chinese imports — and then $300 billion more — if Beijing refuses to yield to U.S. demands and continues to retaliate.

That would bring the total of targeted Chinese goods to potentially $550 billion, which is more than the $506 billion in goods that China actually shipped to the United States last year.

The Trump administration has argued that China has deployed predatory tactics in a push to overtake U.S. technological dominance. These tactics include cyber-theft as well as requiring American companies to hand over technology in exchange for access to China’s market.

California Senators Reach Agreement on Net Neutrality Bill

Key California lawmakers said Thursday they’ve reached an agreement on legislation to enshrine net neutrality provisions in state law after the Federal Communications Commission dumped rules requiring an equal playing field on the internet.

California’s bill is one of the nation’s most aggressive efforts to continue net neutrality, and the deal comes after a bitter fight among Democrats over how far the state should go.

Democratic Sen. Scott Wiener, who repudiated his own legislation when major pieces were removed two weeks ago, said those provisions have been restored under his agreement with Democratic Assemblyman Miguel Santiago.

“We need to ensure the internet is an open field where everyone has access, the companies that are providing internet access are not picking winners and losers,” Wiener told reporters at a Capitol news conference.

Santiago came under fire from net neutrality advocates around the country when the Assembly committee he leads stripped key provisions from the legislation — a decision that drew rebukes from members of Congress, including House Minority Leader Nancy Pelosi. 

Santiago became the subject of online memes and a flood of calls to his office accusing the Los Angeles lawmaker of selling out to internet providers, citing his contributions from AT&T.

Santiago portrayed net neutrality as crucial to the future of the progressive movement and called on other liberal states to follow suit.

“There’s a lot of blue states in the country,” Santiago said. “We expect them to stand up and join us in this fight and pass measures that are equally as strong.”

Internet companies say it’s not practical for them to comply with state-by-state internet regulations and warn that Wiener’s bill would discourage the rollout of new technology in California.

“For decades, California has benefited from American innovation and investment, but SB 822 is a flawed and consumer unfriendly approach,” CTIA, a wireless industry lobbying group, said in a statement. 

The FCC last year repealed Obama-era regulations that prevented internet companies from speeding up or slowing down the delivery of certain content. Net neutrality advocates worry that, without net neutrality rules, internet providers would be free to block political content, slow down websites from their competitors or drive consumers to their own content.

The debate in California is being closely watched by net neutrality advocates around the country, who are looking to the state to pass sweeping net neutrality provisions that could drive momentum in other states.

Wiener said the key provisions removed from his bill were restored. One would require data to be treated equally at the point where it enters an internet company’s network, not just within the company’s own infrastructure.

The other bans a practice known as “zero rating,” in which internet or cellphone providers exempt certain data from a monthly cap. Critics of the practice say zero rating encourages low monthly data caps and cuts off vast swaths of the internet for people who can’t afford higher data allotments. 

He declined to release the new bill language until lawmakers return in August from a summer break.

Under the agreement, Wiener’s bill will be linked to separate legislation by Democratic Sen. Kevin de Leon to prohibit state contracting with companies that don’t abide by net neutrality provisions.

NHC: Tropical Storm Beryl Could Become Hurricane by Saturday

Tropical Storm Beryl is strengthening over the tropical Atlantic and could become a hurricane by Friday or Saturday, the U.S. National Hurricane Center (NHC) said Thursday.

Beryl is about 1,295 miles (2,080 km) east-southeast of the Lesser Antilles in the Caribbean Sea and contains maximum sustained winds of 50 miles per hour (85 km/h), the NHC said in its latest advisory.

“The center of Beryl will remain east of the Lesser Antilles through Sunday,” the Miami-based weather forecaster added.

US Border Authorities Find Invasive Beetles in Bag of Seeds

A woman traveling from Iraq to a Detroit-area airport was found to be carrying seeds infested with an invasive beetle.

 

U.S. Customs and Border Protection says in a release Thursday that agriculture specialists discovered the Khapra beetles November 23 at Detroit Metropolitan Airport in Romulus. They were in a bag of seeds the woman planned to sow in her garden.

 

The Khapra beetle is considered one of the world’s most destructive pests for stored grains, cereals and seeds.

 

The Associated Press sent an email Thursday to border officials asking if the woman was fined or charged.

 

Khapra beetles were found in January at Washington Dulles International Airport in rice brought from Saudi Arabia and in February at Baltimore Washington International Thurgood Marshall Airport in cow peas brought from Nigeria.

 

Kenya’s Digital Taxi Services Paralyzed, Strike Enters 4th Day

Drivers of Kenya’s digital taxis shut down operations Monday in protest of what they term as exploitative corporate practices. They say the firms are charging low rates to their clients, yet imposing high commissions on the drivers, leading them to work longer hours with little pay.

The Digital Taxi Association of Kenya, representing more than 2,000 digital taxi drivers, is in the fourth day of a protest that has seen drivers switch off their services, stalling transportation in the country.

The drivers say client charges have reduced over time as more digital taxi apps enter the market, but their commissions to the taxi firms have remained the same.

The drivers are demanding a review of their rates and working conditions. Through their association, they want the digital taxi services to double their client rates and reduce driver commissions to the companies so they can earn decent wages.

“The fare itself, it has been very low from the word go,” said Anthony Maina, an Uber driver in Kenya. “The percentage after they get their commission, we get very little returns.”

The main digital taxi services in Kenya are the American brand Uber and Estonian Taxify, as well as at least three others.

Uber charges a 25 percent commission on each ride, while apps like Taxify charge 15 percent. The drivers want rates at least doubled per kilometer, and commissions slashed to 10 percent.

Kenya Digital Taxi Services Director David Muteru is calling on Kenya’s Ministry of Transport to resolve the issue.

“All these things are happening where we have government agencies who can [take care of all these things] without having pressure from us,” Muteru said. “It is not our wish to come here and start demonstrating. Our demand is that we must have regulations. [The pricing] is very skewed in favor of the app companies to the detriment of drivers.”

Maina says Uber reduced the maximum working hours from 18 to 12 in an effort to better the working conditions, but drivers overwork to earn more to meet expenses.

“We cannot afford daily maintenance, he said. “An example, each and every day you have to fuel the vehicle, you have to wash the car, and if you happen to be in the city center, you have to pay the city council. All those expenses, when you put them together and maybe you do not own the vehicle yourself, you have to pay the partner and you know fuel has been going up every day and they are not adjusting their commission or fare. So that has been a big problem for us.”

Earlier in the week, Uber drivers in South Africa also went on strike to protest the 25 percent fee charged by Uber.

Digital Taxi Association representatives in Kenya are in negotiations with the taxi firms and Kenya’s Ministry of Transport as their strike continues.

New Treatments Give Hope to People With Brain Tumors

Republican Senator John McCain is perhaps the best known person who has brain cancer. His is a glioblastoma, the most deadly type. Since McCain announced the news last year, he has had surgery and chemotherapy. There’s no cure for this type of cancer, and even with treatment, most people don’t live longer than three years after being diagnosed.

Surgeons often can’t remove the entire tumor because it might affect brain functions, or it might be attached to the spinal column. These tumors often grow tentacles that make them impossible to cut out completely.

Untreated, people have just months to live. But even with treatment, the two-year survival rate is just 30 percent, according to the American Brain Tumor Association.

What’s hopeful is that some new treatments are showing promise.

A case in point is Lori Mines. This 40-year-old wife and mother was diagnosed with stage four brain cancer two years ago. She had a severe headache followed by a stroke. When doctors ordered a brain scan, they found two large brain tumors, one on either side of her brain. One of the tumors was attached to the spinal column so it couldn’t be completely removed. After surgery, Mines had radiation.

“I didn’t even want to know anything about it. I just basically wanted to focus on trying to get better,” she said.

Even noncancerous brain tumors can be deadly if they interfere with portions of the brain responsible for vital bodily functions. Treatment often includes surgery, chemotherapy or radiation or a combination of these treatments.

Glioblastomas are the most common type of cancerous brain tumors, and the five-year relative survival rate is less than 6 percent. 

Mines says she’s realistic, although she hopes she can live longer. She says she will just keep fighting for herself, for her husband, and for her young daughter.

“I have persisted because there’s no other option,” she said.

Scientists at Duke Health found they can increase the survival rate for some patients by injecting a modified polio virus directly into the tumor. Other researchers are trying to get the body’s immune system to attack the tumors.

Dr. Arnab Chakravarti heads the Department of Radiation Oncology at The Ohio State University where he specializes in brain cancers. Chakravarti says medical researchers are examining novel clinical trials, targeted therapies and immunotherapies.

“There’s a lot of hope for this patient population,” he said.

Chakravarti led a study on the genetic makeup of gliomas, brain tumors that can be cancerous or benign. The researchers found they could more than double the life expectancy among patients who had a distinctive biomarker, a cell or a molecule that is present with a particular type of tumor. It helps doctors decide what treatment can work best to shrink the tumor.

“It’s very important to personalize care for the individual patient and that’s why biomarkers, prognostic and predictive biomarkers are so important,” Chakravarti said. The study was published in JAMA Oncology. 

Experts say testing genetic markers will become the standard for patients with malignant brain tumors. They are also looking at targeted drug therapies as part of individualized treatment. The hope is that getting a diagnosis of brain cancer will no longer be an imminent death sentence.

Illegal Cigarette Trade Costing S. Africa $510 mln a Year

South Africa has become one of the biggest markets for illegal cigarette sales and is losing out on 7 billion rand ($514 million) a year in potential tax revenue, a report funded by a tobacco industry group said on Thursday.

The study carried out by Ipsos found illegal cigarette trade spiked between 2014 and 2017 after a probe into the underground industry was dropped by the South African Revenue Service (SARS) under suspended commissioner Tom Moyane.

Moyane, an ally of former President Jacob Zuma, is the main focus of an ongoing SARS commission of inquiry over allegations of widespread corruption at the tax agency under his watch. He denies any wrongdoing.

Former head of enforcement at SARS, Gene Ravele, told the inquiry last week the decision to drop the investigation into illegal tobacco trade was intended to let it continue.

“After I left [in 2015], there was no inspections at cigarette factories. It was planned,” said Ravele.

A packet of cigarettes should incur a minimum tax of 17.85 rand ($1.31), yet packs are sold on the black market for as little as 5 rand as manufacturers dodge official sales channels to avoid paying tax, the Ipsos study found.

Three-quarters of all South Africa’s informal vendors — totaling 100,000 — sell illegal cigarettes in an industry that was worth 15 billion rand ($1.10 billion) over the last three years, the report said.

“Independent superettes, corner cafes and general dealers are the key channels for ultra-cheap brands, with hawkers providing a key entry point, mainly through the loose cigarette sales,” Ipsos head of measurement Zibusiso Ngulube said. “These manufacturers are perfectly primed to continue to grow at a fast rate.”

The study was funded by The Tobacco Institute of Southern Africa, which includes arms of global manufacturers like Philip Morris International, Alliance One and British American Tobacco.

Russian Search Engine Alerts Google to Possible Data Problem

The Russian Internet company Yandex said Thursday that its public search engine has been turning up dozens of Google documents that appear meant for private use, suggesting there may have been a data breach.

Yandex spokesman Ilya Grabovsky said that some Internet users contacted the company Wednesday to say that its public search engine was yielding what looked like personal Google files.

Russian social media users started posting scores of such documents, including an internal memo from a Russian bank, press summaries and company business plans.

 

Grabovsky said Yandex has alerted Google to the concerns.

 

It was unclear whether the files were meant to be publicly viewable by their authors and how many there were. Google did not comment.

 

Grabovsky said that a Yandex search only yields files that don’t require logins or passwords. He added that the files were also turning up in other search engines.

Merkel Would Back Cutting EU Tariffs on US Car Imports

German Chancellor Angela Merkel said on Thursday she would back lowering European Union tariffs on U.S. car imports, responding to an offer from Washington to abandon threatened levies on European cars in return for concessions.

“When we want to negotiate tariffs, on cars for example, we need a common European position and we are still working on it,” Merkel said.

U.S. President Donald Trump threatened last month to impose a 20-percent import tariff on all EU-assembled vehicles, which could upend the industry’s current business model for selling cars in the United States.

According to an industry source, the U.S. ambassador to Germany told German car bosses from BMW, Daimler and Volkswagen at a meeting on Wednesday that Trump could abandon such threats if the EU scrapped duties on U.S. cars imported into the bloc.

Merkel said any move to cut tariffs on U.S. vehicles would require reductions on those imported from other countries to conform with World Trade Organization rules.

“I would be ready to support negotiations on reducing tariffs, but we would not be able to do this only with the U.S.,” she said.

German automotive trade body VDA said any suggestions about mutually removing tariffs and other trade barriers were positive signals.

“But it is clear that the negotiations are exclusively being held at a political level,” it said in a statement.

Current U.S. import tariff rates on cars are 2.5 percent and on trucks 25 percent. The EU has a 10 percent levy on car imports from the United States.

Trump hit the EU, Canada and Mexico with tariffs of 25 percent on steel and 10 percent on aluminum at the start of June, ending exemptions that had been in place since March.

The EU executive responded by imposing its own import duties of 25 percent on a range of U.S. goods, including steel and aluminum products, farm produce such as sweetcorn and peanuts, bourbon, jeans and motor-bikes.

Trump’s protectionist trade policies, which also target Chinese imports, have raised fears of a full-blown and protracted trade war that threatens to damage the world economy.

 

 

 

Unemployment Among Saudis Hits Record 12.9 %

Unemployment among Saudi citizens edged up to a record 12.9 percent in the first quarter of this year as private employers struggled under the weight of a new tax and a domestic fuel price hike, official data showed on Thursday.

The figures underlined the difficulties which the government faces as it pushes through reforms to reduce the economy’s reliance on oil exports.

The reforms aim to develop non-oil industries and create jobs, but they also involve austerity steps to close a big state budget deficit; a 5 percent value-added tax was imposed at the start of 2018. The austerity is hurting many private companies.

The first-quarter unemployment rate was the highest recorded by the official statistics agency in data going back to 1999. It exceeded the 12.8 percent level which had prevailed for the previous three quarters.

Authorities are keen to lure more Saudis, especially Saudi women, into the labor force to make the economy more efficient and reduce the government’s financial burden.

The latest data showed little progress in that area, however, with the number of Saudi job seekers falling to 1.07 million in the first quarter from 1.09 million in the previous quarter, even as the number of employed Saudis also declined.

The figures revealed a continued exodus of hundreds of thousands of foreign workers from Saudi Arabia because of the weak economy and hikes in fees which companies must pay the government to hire expatriates.

The number of foreigners employed in the kingdom shrank to 10.18 million from 10.42 million in the previous quarter and 10.85 million in the first quarter of 2017 – a drop which is slowing the economy by hurting consumer demand.

Saudi gross domestic product, adjusted for inflation, grew 1.2 percent from a year earlier in the first quarter of 2018, beginning to recover after shrinking in 2017, figures released earlier this week showed.

But the rebound was largely due to stabilizing oil output, and economists expect the oil sector to lead growth later this year with non-oil businesses expanding only modestly – a trend that may keep unemployment high.

 

Iran’s OPEC Boss: Trump’s Tweets Have Added $10 to Oil Prices

U.S. President Donald Trump, who recently called on OPEC producers to help reduce oil prices, has raised prices through his tweets, Iranian OPEC Governor Hossein Kazempour Ardebili was quoted as saying by news agency SHANA on Thursday.

“Your tweets have increased the prices by at least $10. Please stop this method,” the oil ministry news agency quoted Kazempour Ardebili as saying.

Kazempour Ardebili said Trump was trying to intensify tensions between Iran and Saudi Arabia and he called on the United States to join world powers in a meeting with Iran in Vienna on Friday.

Foreign ministers from the five remaining signatories of a nuclear deal between Tehran and world powers will meet Iranian officials in Vienna to discuss how to keep the accord alive after the U.S. withdrawal from the pact.

Strait of Hormuz threat

The head of Iran’s Revolutionary Guards said on Thursday their forces were ready to implement Iran’s threat to block the Strait of Hormuz and that if Iran cannot sell its oil under the U.S. pressure, no other regional country will be allowed to.

“We are hopeful that this plan expressed by our president will be implemented if needed … We will make the enemy understand that either all can use the Strait of Hormuz or no one,” Mohammad Ali Jafari, commander of the Islamic Revolutionary Guard Corp, was quoted as saying by Tasnim news agency.

Ford Says No Plans for Now to Hike China Prices

U.S. car maker Ford Motor Co said on Thursday it has no plans currently to hike retail prices of its imported Ford and Lincoln models in China, despite steep additional tariffs on imported U.S. vehicles set to come into play on Friday.

The firm, which has been facing sluggish sales in the world’s largest auto market, said in a statement “it has no current plans to increase the manufacturer’s suggested retail price (MSRP) on its import line-up in China.”

Ford is the first foreign automaker to address pricing issues ahead of the new tariffs that will affect around $34 billion of U.S. imports from soybeans and cars to lobsters.

China, which just days ago cut tariffs on all imported automobiles, has said that it will slap an additional 25 percent levy on 545 American products, including U.S.-made cars, should the Trump administration go ahead with plans to implement tariffs on $34 billion of Chinese imports from July 6.

Ford added it encouraged Washington and Beijing to resolve their issues over trade and that it would “continue to monitor the situation as it evolves.”

 

Canadian Heat Wave Leaves at Least 17 Dead

Six more people have died in Montreal due to a heat wave, bringing to 12 the city’s total death toll from the extreme weather conditions that have gripped central and eastern Canada, health officials said on Wednesday.

Montreal previously raised the city’s response level to “intervention” from “alert” after a spike in heat-related calls to the government’s health information line and for ambulances. 

David Kaiser, a physician at Montreal’s Public Health Department, said most of the victims lived alone and none had access to air conditioning.

Separately, five people died in Quebec’s Eastern Townships, which health officials said could be linked to heat.

Canadian Weather issued a heat warning for southern Quebec, which includes Montreal. The advisory was expected to be in place until Thursday. Heat warnings were also issued for much of Ontario, Nova Scotia and New Brunswick.

Montreal reached a high of 34 degrees Celsius (93 degrees Fahrenheit) on Wednesday, a peak that is expected to continue on Thursday, before cooling to 24 degrees Celsius on Friday.

According to Canadian Weather’s advisory, humidex values in southern Quebec will reach near 40 on Wednesday, but conditions will grow “even more uncomfortable” on Thursday, when humidex values reach 43. Humidex, or the humidity index, expresses how temperatures feel when incorporating the effect of humidity.

In a statement issued on Wednesday, Montreal’s emergency services reported over 1,200 calls per day related to the heat, which represents 30 percent more than its busiest days.

Montrealers were urged not to dial 911 for non-urgent ailments, as the influx of calls causes delays in interventions for urgent matters. 

US Offers German Automakers Solution to Trade Spat, Report Says

United States Ambassador to Germany Richard Grenell reportedly told German auto makers Wednesday the U.S. would back off threats of tariffs on European car imports in exchange for the European Union’s elimination of duties on U.S. cars.

The German newspaper Handelsblatt reported Grenell told BMW, Daimler and Volkswagen executives of the proposal during a meeting Wednesday at the embassy in Berlin.

Daimler and Volkswagen declined to comment and BMW was not immediately available for comment, the report said.

The reported proposal comes after the European Union warned U.S. President Donald Trump last Friday the potential indirect costs of imposing tariffs on cars could amount to $294 billion.

The EU report, submitted to the U.S. Commerce Department, maintained the tariffs would disrupt cross-border supply chains in the automotive industry. The report said the tariffs could possibly trigger higher U.S. industrial costs, raise consumer prices, hurt exports and cost jobs.  

The World Trade Organization said Wednesday trade barriers being set by world economic powers could jeopardize the global economic recovery.

“This continued escalation poses a serious threat to growth and recovery in all countries, and we are beginning to see this reflected in some forward-looking indicators,” WTO Director General Roberto Azevendo said.

Azevendo did not expound on his remarks, but the WTO’s quarter trade outlook indicator in May suggested trade growth in the second quarter would decelerate.

 

Scientists Create Hybrids in Race to Save Rhino Subspecies

Scientists say they’re several steps closer to perfecting a method for saving the northern white rhino from extinction. 

Writing in the journal Nature Communications, researchers said Wednesday that they had succeeded in creating embryos using frozen northern white rhino sperm and eggs from a southern white rhino.

It’s the first time such hybrid embryos have been created, and the scientists from Europe and the United States hope it will provide a pathway to saving the northern white rhino subspecies, of which only two females remain.

They plan to harvest the females’ egg cells soon and produce “pure” northern white rhinos to be borne by a southern white surrogate in three years. They’re also working on a second method that would see sperm and eggs produced from preserved cells of northern white rhinos.

Europe Could Suffer Collateral Damage in US-China Trade War

European businesses are unsettled as they watch the U.S. and China collide over trade. And for good reason: the nascent global trade war could represent the biggest single threat to the economic upswing that has helped the region get past its financial crisis.

In theory, some European companies could benefit, jumping into market niches if Chinese businesses are kept out of the U.S. market. But that would only be a few companies or sectors.

When your entire economy is heavily dependent on trade, an overall slowdown in global commerce caused by tit-for-tat import taxes provokes fear and undermines confidence.

And that’s just what’s happening in Europe. By one measure, business confidence has fallen in six of the past seven months in Germany, where exports are almost half of annual economic output.

“It’s worth all our efforts to defuse this conflict, so it doesn’t become a war,” German Chancellor Angela Merkel said Wednesday.

The U.S. is due to put tariffs on $34 billion worth of Chinese goods on Friday. The Chinese will respond with tariffs on an equivalent value of U.S. products such as soybeans, seafood and crude oil.

Amid all this, Europe has its own trade dispute with the U.S. After the U.S. put tariffs on steel and aluminum from many allies, including the European Union, the 28-country bloc responded with import taxes on some $3.25 billion of U.S. goods. The Trump administration is also studying the option of putting tariffs on cars, which would significantly escalate the confrontation.

The head of the EU’s executive, Jean-Claude Juncker, will head to Washington in late July to try to personally persuade Trump against further measures targeting Europe.

The disputes over trade threaten to spoil the good times for Europe’s economy.

Growth last year was the strongest in a decade, since before the global financial crisis. While that has eased in recent quarters, the economy is still strong enough to create jobs. The number of unemployed fell by 125,000 in May, leaving unemployment in the 19 countries that use the euro at 8.4 percent, the lowest since 2008 and down from a high of 12.1 percent in 2013.

“Trade tensions stoked by U.S. President Donald Trump are clouding the economic outlook in Europe,” wrote analysts at Berenberg bank in London. They rated the trade risk ahead of troubles from Italy’s heavy debt load or faster than expected interest rate increases from the U.S. Federal Reserve.

Many European companies would suffer because they both produce and sell goods in the U.S. and China, the world’s biggest economies.

For example, tariffs that China is expected to impose Friday on U.S.-made autos would hit German carmakers Daimler and BMW since they both make vehicles in the United States and export them to China.

Daimler has already lowered its outlook for profits, citing higher than expected costs from the new tariffs. BMW warned in a letter to Commerce Secretary Wilbur Ross on Friday that tariffs would make it harder for it to sell in China the vehicles it builds at its factory in Spartanburg, South Carolina, “potentially leading to a strongly reduced export volumes and negative effects on investment and employment in the United States.”

Last year, BMW exported 272,000 vehicles from the Spartanburg plant, more than half its total production. Of those, 81,000 — worth $2.37 billion — went to China. BMW says its exports reduced the U.S. trade deficit by around $1 billion.

By themselves, the tariffs that take effect Friday won’t immediately have a dramatic impact on global trade. The fear is that retaliation will spiral, hitting the total amount of global commerce.

Even if the overall effect is to harm growth, there could be benefits for some European companies and sectors. Economists Alicia Garcia Herrero and Jianwei Xu at the French bank Natixis say that European makers of cars, aircraft, chemicals, computer chips and factory machinery could in theory snare market share by substituting for Chinese or American products in the two markets. But that’s only if Europe’s own trade dispute with the U.S. does not escalate — a big if.

Europe is waiting to see whether the Trump administration will go ahead separately with tariffs on auto imports. European companies like BMW, Daimler’s Mercedes-Benz, Volkswagen’s Porsche and Audi divisions, and Fiat Chrysler send $46.6 billion worth of vehicles every year to the U.S. Some 13.3 million people, or 6.1 percent of the employed population of the EU, work in the automotive sector, according to the European Automobile Manufacturers Association.

“Europe cannot win anything” on an overall basis “for one obvious reason: we are net exporters,” said Garcia Herrero, chief economist for Asia Pacific at Natixis and a senior fellow at European research institute Bruegel. “But we should not understate the view that some sectors could get something out of a U.S.-China trade war.”

Amid the brewing conflict, China has sought to get Europe on its side, putting on a diplomatic charm offensive during visits by Merkel and French Prime Minister Edouard Philippe. The EU and China agreed last month to deepen commercial ties and support trade rules. But the EU remains a close, longtime ally of the U.S. on a range of issues, despite the current tensions with the Trump administration.

One negative outcome for Europe, Herrero said, would be if Trump can push the Chinese into a trade agreement aimed at reducing the U.S. trade deficit. The additional U.S. goods to China could come at the expense of European competitors.

“If China concedes to the U.S. proposed agreement, the whole situation faced by the EU would be much tougher,” she and Xu wrote in a research note. “For China to massively reduce its trade surplus with the U.S., it has to in some way substitute its imports away from the EU to the U.S., which would have a significant negative impact on the EU producers.”

Century’s Longest Total Lunar Eclipse to Grace the Sky

Skygazers will have a celestial treat this month, when the longest total lunar eclipse of this century will grace the night sky on the evening of July 27. 

NASA says the lunar eclipse will last for 1 hour and 43 minutes with total viability in Eastern Africa and Central Asia. Residents in other parts of Africa and Asia as well those in Europe, Australia and South America will be able to see a partial lunar eclipse.

Skywatchers in North America will not be able to see the rare event and will have to wait until 2020 to experience a total lunar eclipse. 

During a lunar eclipse, the moon appears to be red because it lines up perfectly with the Earth and sun such that the Earth’s shadow totally blocks the sun’s light. The moon loses the brightness normally caused by the reflection of the sun’s light and takes on an eerie, reddish glow, giving the lunar eclipse moon the nickname of blood moon.

Scientists say the reason this lunar eclipse is especially long is because the moon is passing almost directly through the central part of Earth’s shadow. To compare, it falls just 4 minutes shy of the longest possible time a lunar eclipse could last. 

Earlier this year, a lunar eclipse occurred in January at the same time as a super moon, which takes place when a full moon is at its closet orbital point to Earth, appearing brighter and larger than usual. That event delighted moon watchers by being both a blood moon and super moon at the same time.

For those who aren’t able to see the lunar eclipse this month, July has another treat in store for skygazers.

At the end of the month, Mars makes a close approach to Earth, reaching the point in its orbit when it is closet to our planet. Mars will appear about 10 times brighter than usual, with peak brightness occurring on July 31.

Everyone in the world will have the possibility to see this celestial phenomena, providing the skies are clear.

China Presses Europe for Anti-US Alliance on Trade

China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump’s trade policies at a summit

this month, but it’s facing resistance, European officials said.

In meetings in Brussels, Berlin and Beijing, senior Chinese officials, including Vice Premier Liu He and the Chinese government’s top diplomat, State Councillor Wang Yi, have proposed an alliance between the two economic powers and offered to open more of the Chinese market in a gesture of goodwill.

One proposal has been for China and the European Union to launch joint action against the United States at the World Trade Organization.

But the European Union, the world’s largest trading bloc, has rejected the idea of allying with Beijing against Washington, five EU officials and diplomats told Reuters, ahead of the Sino-European summit in Beijing on July 16-17.

Instead, the summit is expected to produce a modest communique that affirms the commitment of both sides to the multilateral trading system and promises to set up a working group on modernizing the WTO, EU officials said.

Liu has said privately that China is ready to set out for the first time what sectors it can open to European investment at the annual summit, expected to be attended by President Xi Jinping, China’s Premier Li Keqiang and top EU officials.

Chinese state media have promoted the message that the EU is on China’s side, officials said, putting the bloc in a delicate position. The past two summits, in 2016 and 2017, ended without a statement because of disagreements about the South China Sea and trade.

“China wants the European Union to stand with Beijing against Washington, to take sides,” said one European diplomat. “We won’t do it and we have told them that.”

China’s Foreign Ministry did not immediately respond to a request for comment on Beijing’s summit aims.

In a commentary on Wednesday, China’s official Xinhua news agency said China and Europe “should resist trade protectionism hand in hand.”

“China and European countries are natural partners,” it said. “They firmly believe that free trade is a powerful engine for global economic growth.”

China’s moment?

Despite Trump’s tariffs on European metals exports and threats to hit the EU’s automobile industry, Brussels shares Washington’s concern about China’s closed markets and what Western governments say is Beijing’s manipulation of trade to dominate global markets.

“We agree with almost all the complaints the U.S. has against China. It’s just we don’t agree with how the United States is handling it,” another diplomat said.

Still, China’s stance is striking, given Washington’s deep economic and security ties with European nations. It shows the depth of Chinese concern about a trade war with Washington, as Trump is set to impose tariffs on billions of dollars’ worth of Chinese imports on Friday.

It also underscores China’s new boldness in trying to seize leadership amid divisions between the United States and its European, Canadian and Japanese allies over issues including free trade, climate change and foreign policy.

“Trump has split the West, and China is seeking to capitalize on that. It was never comfortable with the West being one bloc,” said a European official involved in EU-China diplomacy.

“China now feels it can try to split off the European Union in so many areas — on trade, on human rights,” the official said.

Another official described the dispute between Trump and Western allies at the Group of Seven summit last month as a gift to Beijing because it showed European leaders losing a longtime ally, at least in trade policy.

European envoys say they already sensed a greater urgency from China in 2017 to find like-minded countries willing to stand up against Trump’s “America First” policies.

No ‘systemic change’

An April report by New York-based Rhodium Group, a research consultancy, showed that Chinese restrictions on foreign investment were higher in every single sector save real estate, compared with the European Union, while many of the big Chinese takeovers in the bloc would not have been possible for EU companies in China.

China has promised to open up. But EU officials expect any moves to be more symbolic than substantive.

They say China’s decision in May to lower tariffs on imported cars will make little difference because imports make up such a small part of the market.

China’s plans to move rapidly to electric vehicles mean that any new benefits it offers traditional European carmakers will be fleeting.

“Whenever the train has left the station, we are allowed to enter the platform,” a Beijing-based European executive said.

However, China’s offer at the upcoming summit to open up reflects Beijing’s concern that it is set to face tighter EU controls, and regulators are also blocking Chinese takeover attempts in the United States.

The European Union is seeking to pass legislation to allow greater scrutiny of foreign investments.

“We don’t know if this offer to open up is genuine yet,” a third EU diplomat said. “It’s unlikely to mark a systemic change.”