August 2018 - YCLOAK

US to Proceed With Mexico Trade Pact, Keep Talking to Canada

By Yeco on Friday, August 31, 2018

U.S. President Donald Trump notified Congress on Friday of his intent to sign a trade agreement with Mexico after talks with Canada broke up earlier in the day with no immediate deal to revamp the tri-nation North American Free Trade Agreement.

U.S. Trade Representative Robert Lighthizer said U.S. officials would resume talks with their Canadian counterparts next Wednesday with the aim of getting a deal all three nations could sign.

All three countries have stressed the importance of NAFTA, which governs billions of dollars in regional trade, and a bilateral deal announced by the United States and Mexico on Monday paved the way for Canada to rejoin the talks this week.

But by Friday the mood had soured, partly on Trump’s off-the-record remarks made to Bloomberg News that any trade deal with Canada would be “totally on our terms.” He later confirmed the comments, which the Toronto Star first reported.

“At least Canada knows where I stand,” he later said on Twitter.

Ottawa has stood firm against signing “just any deal.”

’Making progress’

But at a news conference Friday afternoon, Canadian Foreign Minister Chrystia Freeland expressed confidence that Canada could reach agreement with the United States on a renegotiated NAFTA trade pact if there was “goodwill and flexibility on all sides.”

“We continue to work very hard and we are making progress. We’re not there yet,” Freeland told reporters.

“We know that a win-win-win agreement is within reach,” she added. “With goodwill and flexibility on all sides, I know we can get there.”

The Canadian dollar weakened to C$1.3081 to the U.S. dollar after The Wall Street Journal first reported that the talks had ended Friday with no agreement. Canadian stocks remained 0.5 percent lower.

Global equities were also down following the hawkish turn in Trump’s comments on trade.

Lighthizer has refused to budge despite repeated efforts by Freeland to offer some dairy concessions to maintain the Chapter 19 independent trade dispute resolution mechanism in NAFTA, The Globe and Mail reported Friday.

However, a spokeswoman for USTR said Canada had made no concessions on agriculture, which includes dairy, but added that negotiations continued.

The United States wants to eliminate Chapter 19, the mechanism that has hindered it from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday that Mexico had agreed to cut the mechanism. For Ottawa, Chapter 19 is a red line.

Trump argues Canada’s hefty dairy tariffs are hurting U.S. farmers, an important political base for his Republican Party.

But dairy farmers have great political clout in Canada too, and concessions could hurt the ruling Liberals ahead of a 2019 federal election.

At a speech in North Carolina on Friday, Trump took another swipe at Canada. “I love Canada, but they’ve taken advantage of our country for many years,” he said.
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Science

Fake, Low Quality Drugs Come at High Cost

By Yscien on Friday, August 31, 2018

About one in eight essential medicines in low- and middle-income countries may be fake or contain dangerous mixes of ingredients that put patients’ lives at risk, a research review suggests.

Researchers examined data from more 350 previous studies that tested more 400,000 drug samples in low- and middle-income countries. Overall, roughly 14 percent of medicines were counterfeit, expired or otherwise low quality and unlikely to be as safe or effective as patients might expect.

“Low-quality medicines can have no or little active pharmaceutical ingredient [and] can prolong illness, lead to treatment failure and contribute to drug resistance,” said lead study author Sachiko Ozawa of the University of North Carolina at Chapel Hill.

“Or it may have too much active ingredient and cause a drug overdose,” Ozawa said by email. “If it is contaminated or has other active ingredients, then the medication could cause poisoning, adverse drug interactions or avertable deaths.”

Much of the research to date on counterfeit or otherwise unsafe medicines has focused on Africa, and about half of the studies in the current analysis were done there.

Almost one in five medications tested in Africa were fake or otherwise potentially unsafe, researchers report in JAMA Network Open.

Another third of the studies were done in Asia, where about 14 percent of medicines tested were found to be counterfeit or otherwise unsafe.

Antibiotics and antimalarials were the most tested drugs in the analysis. Overall, about 19 percent of antimalarials and 12 percent of antibiotics were falsified or otherwise unsafe.

While fake or improperly made medicines undoubtedly harm patients, the current analysis couldn’t tell how many people suffered serious side effects or died as a result of falsified drugs.

Researchers did try to assess the economic impact of counterfeit or improperly made medicines and found the annual cost might run anywhere from $10 billion to $200 billion.

While the study didn’t examine high-income countries, drug quality concerns are by no means limited to less affluent nations, Ozawa said.

“Even in high-income countries, purchasing cheaper medicines from illegitimate sources online could result in obtaining substandard or falsified medicines,” Ozawa said. “Verify the source before you buy medications, and make policymakers aware of the problem so they can work to improve the global supply chain of medicines.”

The study wasn’t a controlled experiment designed to prove whether or how counterfeit or poorly made medicines directly harm patients, however. And economic impact was difficult to assess from smaller studies that often didn’t include detailed methodology for calculating the financial toll.

The report “provides important validation of what is largely already known,” Tim Mackey of the Global Health Policy Institute in La Jolla, California, writes in an accompanying editorial.

“It is important to note that although the study is comprehensive, its narrow scope means it only provides a snapshot of the entire problem, as it is limited to studies conducted in low- and middle-income countries and to those

medicines classified as essential by the World Health Organization.”
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Economy

Coca-Cola Hopes for Caffeine Hit as It Buys Costa Coffee Chain

By Yeco on Friday, August 31, 2018

Coca-Cola is hoping for a caffeine-fueled boost with the acquisition of British coffee chain Costa.

Costa is Britain’s biggest coffee company, with over 2,400 coffee shops in the U.K. and another 1,400 in more than 30 countries, including around 460 in China, its second-biggest market. Coca-Cola said Friday it will buy the Costa brand from Whitbread for 3.9 billion pounds ($5.1 billion) in cash.

The deal, expected to close in the first half of 2019, comes on the heels of Coca-Cola’s announcement earlier in August that it was buying a minority ownership stake in sports drink maker BodyArmor for an undisclosed amount. Coca-Cola’s other investments in recent years have included milk that is strained to have more protein and a push into sparkling water.

The move is Coca-Cola’s latest diversification as health-conscious consumers, at least in America, move away from traditional soda.

Rival PepsiCo, meanwhile, recently bought carbonated drink maker SodaStream, which produces machines that allow people to make fizzy drinks in their own homes.

Coca-Cola already owns the Georgia and Gold Peak coffee brands, which make bottled and canned drinks, but the purchase of Costa could allow it to compete with brands like Starbucks.

Coffee is growing by 6 percent a year, making it one of the fastest-growing beverage categories in the world, said James Quincey, Coca-Cola president & CEO.

“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand,” he said.

Coca-Cola has over 500 brands in its stable including Fanta, innocent smoothies and Powerade sports drinks. In 2017, it generated operating income of $9.7 billion on revenues of $35.4 billion.

Without being specific about expansion plans, Quincey said in a video posted on Coca-Cola’s website that the company would “over time” look to take Costa “to more people in more places.”

Costa doesn’t currently have a presence in North or South America, but Quincey indicated that one potential early expansion route would be to use Costa’s vending operation and grow the company’s ready-to-drink products. In addition to its shops, Costa has self-serve coffee machines in grocery stores and gas stations.

Whitbread bought Costa for 19 million pounds in 1995, when it had just 39 shops. In recent years, Whitbread has invested heavily in Costa’s expansion overseas, but had been looking to siphon off the business to generate funds for the expansion and for its other business, the budget hotel chain Premier Inn.

Then Coca-Cola got in touch with what Whitbread said was a “highly compelling” offer. The Whitbread board unanimously backed the deal.

Whitbread will use a “significant majority” of the net cash proceeds — around 3.8 billion pounds after taking into account such things as transaction costs — returning cash to shareholders. Some will be used to pay down debt and to make a contribution to the pension fund.

Doing so, Whitbread said, would “provide headroom” to further expand the Premier Inn budget hotel chain in Britain and Germany.

Whitbread’s share price soared 17 percent in early afternoon trading in London.

Nicholas Hyett, equity analyst at London-based stockbrokers Hargreaves Lansdown, said Costa will get “lots of care and attention” from Coca-Cola.

“Its global reach should turbo-charge growth in the years to come, and hot drinks are one of the few areas of the wider beverages sector where the soft drinks giant doesn’t have a killer brand,” he said.
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Economy

US Ports Fear Tariffs Could Reduce Ship Traffic, Jobs

By Yeco on Friday, August 31, 2018

Ports and ground terminals in nearly every state handle goods that are now or will likely soon be covered by import tariffs. Port executives worry that this could mean a slowdown in shipping that would have ripple effects on truckers and others whose jobs depend on trade.

The Associated Press analyzed government data and found that from the West Coast to the Great Lakes and the Gulf of Mexico, at least 10 percent of imports at many ports could face new tariffs if President Donald Trump’s proposals take full effect.

Since March, the U.S. has applied new tariffs of up to 25 percent on nearly $85 billion worth of steel and aluminum and various Chinese products, mostly goods used in manufacturing.

Trump said in a recent tweet, “Tariffs are working big time.” He has argued that the tariffs will help protect American workers and force U.S. trading partners to change rules that the president insists are unfair to the United States.

In New Orleans, port officials say a tariff-related drop in shipments is real, not merely a forecast. Steel imports there have declined more than 25 percent from a year ago, according to the port’s chief commercial officer, Robert Landry.

The port is scouting for other commodities it can import. But expectations appear to be low.

“In our business, steel is the ideal commodity,” Landry said. “It’s big, it’s heavy, we charge by the ton so it pays well. You never find anything that pays as well as steel does.”

The port of Milwaukee imports steel from Europe and ships out agricultural products from the Midwest. Steel imports haven’t dropped yet because they are under long-term contracts, said the port director, Adam Schlicht. But there has been “an almost immediate halt” in outbound shipments of corn because of retaliatory duties imposed by the European Union on American products.

Much of the corn, he said, “is just staying in silos. They are filled to the brim.”

Many other ports have been humming along and even enjoyed an unexpected bump in imports during June and July as U.S. businesses moved up orders to ship before the new tariffs took effect. That started with manufacturing goods and is now spreading to retail items for back-to-school and Christmas.

“Some of my retail customers are forward-shipping the best they can to offset proposed tariffs,” says Peter Schneider, executive vice president of T.G.S. Transportation, a trucking company in Fresno, California.

Port officials were encouraged by this week’s announcement that the United States and Mexico had reached a preliminary agreement to replace the North American Free Trade Agreement, hoping it might lead to reduced trade barriers. Canada’s participation in any new deal to replace NAFTA, though, remains a major question mark.

The port officials continue to worry, though, that Trump will make good on a plan to expand tariffs to an additional $200 billion in Chinese imports — a list that includes fish and other foods, furniture, carpets, tires, rain jackets and hundreds of additional items. Tariffs would make those items costlier in the United States. And if Americans buy fewer of those goods, it would likely lead to fewer container ships steaming into U.S. ports.

The impact will be felt keenly at West Coast ports like Los Angeles and Long Beach.

Los Angeles Mayor Eric Garcetti, relying on information from his port officials, said his port — the biggest in the United States — could suffer a 20 percent drop in volume if the additional $200 billion in tariffs are imposed against Chinese goods.

Jock O’Connell, an economist in California who studies trade, said he doubts a downturn would be so severe — that would match the slump that accompanied the global recession of 2008 — “but we will see a definite impact.”

Here are some of the key findings from the AP analysis:

– U.S. tariffs will cover goods that are imported at more than 250 seaports, airports and ground terminals in 48 states.

At 18 of 43 customs districts — including those representing ports around Los Angeles, San Francisco, New Orleans and Houston — at least 10 percent of their total import value could be covered by new tariffs if all Trump’s proposals take effect.
Retaliatory duties by China and other countries cover $27 billion in U.S. exports.

Eugene Seroka, executive director of the Los Angeles port, worries that “if tariffs make it too expensive to import, there will be an impact on jobs.”

Seroka and others don’t expect layoffs on the docks. Union longshoremen — whose average pay last year on the West Coast was $163,000, according to the Pacific Maritime Association, which negotiates for the ports — often have contract provisions ensuring that they are paid even if there’s no work. And there are fewer of them than there were a few decades ago because the advent of shipping containers has reduced the need for people on the docks.

Dwayne Boudreaux, an International Longshoremen’s Association official in Louisiana, said, though, that his stevedores are handling about 10 percent less steel from Japan because of the new tariffs.

“We don’t think it’s going to [get] worse,” he said. But, he added, “who knows — that could change from the next press conference.”

The impact might be greater on truck drivers and warehouse workers. Fewer will be needed, according to O’Connell.

Many drivers who deliver shipping containers from the dock to warehouses are independents contracted by trucking companies, and they don’t get paid if there is nothing to haul. Some might leave the profession, said Weston LaBar, CEO of the Harbor Trucking Association in Long Beach, California.

“It’s hard to retain drivers,” he said. “If we don’t have work for those drivers, we’re worried they will leave for some other segment of the trucking business or go into another business, like construction.”

Less shipping means less revenue for the ports — something that could limit their ability to pay for expansion and improvement projects, according to Kurt Nagle, president of the American Association of Port Authorities. He said U.S. ports are in the midst of a planned $155 billion in infrastructure spending from 2016 through 2020.

The current trade war was foreshadowed in January by steep U.S. tariffs on imported solar panels and washing machines. It exploded with the U.S. tariffs of 25 percent on imported steel and 10 percent on aluminum. Then came two rounds of duties targeting about $50 billion in imports from China — punishment against that country for pressuring U.S. companies to transfer technology and intellectual property to Chinese companies.

Along the way, China, the European Union, Turkey, Canada and Mexico imposed retaliatory duties on U.S. goods including farm products and Harley-Davidson motorcycles.

This week, the U.S. Trade Representative’s office finished six days of hearings on a plan to hit another $200 billion in Chinese imports with 10 percent duties. Trump has said that if China continues to retaliate he could eventually add tariffs on $450 billion in Chinese goods, nearly 90 percent of that country’s 2017 exports to the U.S.

Trade wars are usually temporary. President George W. Bush abandoned his steel tariffs after less than two years.

Milwaukee’s port director worries, however, that damage from the current trade dispute could linger. Canada is increasing corn exports to Europe, and Brazil is trying to pick up the slack in soybean exports to China.

“Others are already picking up that business,” Schlicht said.
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Economy

Canada, US Push Toward NAFTA Deal by Friday

By Yeco on Friday, August 31, 2018

Top NAFTA negotiators from Canada and the United States increased the pace of their negotiations Thursday to resolve final differences to meet a Friday deadline, with their Mexican counterpart on standby to rejoin the talks soon.

Despite some contentious issues still on the table, the increasingly positive tone contrasted with U.S. President Donald Trump’s harsh criticism of Canada in recent weeks, raising hopes that the year-long talks on the North American Free Trade Agreement will conclude soon with a trilateral deal.

“Canada’s going to make a deal at some point. It may be by Friday or it may be within a period of time,” U.S. President Donald Trump told Bloomberg Television. “I think we’re close to a deal.”

Trilateral talks were already underway at the technical level and Mexican Economy Minister Ildefonso Guajardo was expected to soon rejoin talks with U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland, possibly later on Thursday, people familiar with the process said.

Trump said in a Bloomberg interview: “Canada’s going to make a deal at some point. It may be by Friday or it may be within a period of time,” Trump said. “I think we’re close to a deal.”

Negotiations entered a crucial phase this week after the United States and Mexico announced a bilateral deal on Monday, paving the way for Canada to rejoin talks to modernize the 24-year-old accord that underpins over $1 trillion in annual trade.

The NAFTA deal that is taking shape would likely strengthen North America as a manufacturing base by making it more costly for automakers to import a large share of vehicle parts from outside the region. The automotive content provisions, the most contentious topic, could accelerate a shift of parts-making away from China.

A new chapter governing the digital economy, along with stronger intellectual property, labor and environmental standards could also work to the benefit of U.S. companies, helping Trump to fulfill his campaign promise of creating more American jobs.

Trump has set a Friday deadline for the three countries to reach an agreement, which would allow Mexican President Enrique Pena Nieto to sign it before he leaves office at the end of November. Under U.S. law, Trump must wait 90 days before signing the pact.

The U.S. president has warned he could try to proceed with a deal with Mexico alone and levy tariffs on Canadian-made cars if Ottawa does not come on board, although U.S. lawmakers have said ratifying a bilateral deal would not be easy.

Dairy, dispute settlement

One sticking point for Canada is the U.S. effort to dump the Chapter 19 dispute-resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday that Mexico had agreed to eliminate the mechanism.

Trump also wants a NAFTA deal that eliminates dairy tariffs of up to 300 percent that he argues are hurting U.S. farmers, an important political base for Republicans.

But any concessions to Washington by Ottawa is likely to upset Canadian dairy farmers, who have an outsized influence in Canadian politics, with their concentration in the provinces of Ontario and Quebec.

“Ultimately, we’ve got huge issues that are still to be resolved,” said Jerry Dias, head of Canada’s influential Unifor labor union. “Either we’re going to be trading partners or we’re going to fight.”
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Technology

Microsoft to Contractors: Give New Parents Paid Leave

By Ytech on Friday, August 31, 2018

Microsoft will begin requiring its contractors to offer their U.S. employees paid leave to care for a new child.

It’s common for tech firms to offer generous family leave benefits for their own software engineers and other full-time staff, but paid leave advocates say it’s still rare to require similar benefits for contracted workers such as janitors, landscapers, cafeteria crews and software consultants.

“Given its size and its reach, this is a unique and hopefully trailblazing offering,” said Vicki Shabo, vice president at the National Partnership for Women and Families.

The details

The new policy affects businesses with at least 50 U.S.-based employees that do substantial work with Microsoft that involves access to its buildings or its computing network. It doesn’t affect suppliers of goods. Contractors would have to offer at least 12 weeks of leave to those working with the Redmond, Washington-based software giant; the policy wouldn’t affect the contractors’ arrangements with other companies. Leave-takers would get 66 percent of regular pay, up to $1,000 weekly.

The policy announced Thursday rolls out over the next year as the company amends its contracts with those vendors. That may mean some of Microsoft’s costs will rise to cover the new benefits, said Dev Stahlkopf, the company’s corporate vice president and general counsel.

“That’s just fine and we think it’s well worth the price,” she said.

Microsoft doesn’t disclose how many contracted workers it uses, but it’s in the thousands.

The new policy expands on Microsoft’s 2015 policy requiring contractors to offer paid sick days and vacation.

Facebook

Other companies such as Facebook have also committed to improve contractor benefits amid unionization efforts by shuttle drivers, security guards and other contract workers trying to get by in expensive, tech-fueled regions such as the San Francisco Bay Area and around Washington’s Puget Sound.

Facebook doesn’t guarantee that contract workers receive paid parental leave, but provides a $4,000 new child benefit for new parents who don’t get leave. A much smaller California tech company, SurveyMonkey, announced a paid family leave plan for its contract workers earlier this year.

Washington state law

Microsoft said its new policy is partially inspired by a Washington state law taking effect in 2020 guaranteeing eligible workers 12 weeks paid time off for the birth or adoption of a child. The state policy, signed into law last year, follows California and a handful of other states in allowing new parents to tap into a fund that all workers pay into. Washington will also require employers to help foot the bill, and will start collecting payroll deductions next January.

A federal paid parental leave plan proposed by President Donald Trump’s daughter, Ivanka Trump, could rely on a similar model but has gained little traction.

“Compared to what employers are doing, the government is way behind the private sector,” said Isabel Sawhill, a fellow at the Brookings Institution who has urged the White House and Congress to adopt a national policy.

Sawhill said it is “very unusual and very notable” that Microsoft is extending family leave benefits to its contract workers. Microsoft already offers more generous family leave benefits to its own employees, including up to 20 weeks fully paid leave for a birth mother.

Pushing the feds

Microsoft’s push to spread its employee benefits to a broader workforce “sends a message that something has to happen more systematically at the federal level,” said Ariane Hegewisch, a program director for employment and earnings at the Institute for Women’s Policy Research. Until then, she said, it’s helpful that Microsoft seems willing to pay contracting firms more to guarantee their workers’ better benefits.

“Paid family leave is expensive and they acknowledge that,” Hegewisch said. Otherwise, she said, contractors with many employees of child-bearing age could find themselves at a competitive disadvantage to those with older workforces.

Republican state Sen. Joe Fain, the prime sponsor of the measure that passed last year, said Microsoft’s decision was “a really powerful step forward.”

By applying the plan to contractors and vendors around the country, “it really creates a pressure for those state legislatures to make a similar decision that Washington made.”
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Technology

Republican US Senator Asks FTC to Examine Google Ads

By Ytech on Thursday, August 30, 2018

U.S. Senator Orrin Hatch on Thursday added to the growing push in Washington to have the Federal Trade Commission rekindle an antitrust investigation of Alphabet Inc’s Google.

Hatch, the Republican chairman of the Senate Finance Committee, sent a letter to FTC Chairman Joseph Simons recounting several news reports that identified complaints about Google’s anti-competitive conduct and privacy practices.

Alphabet shares were little changed after the release of the letter. The company declined to comment.

Lawmakers from both major parties and Google’s rivals have said this year they see an opening for increased regulation of large technology companies under the FTC’s new slate of commissioners.

Google’s critics say that ongoing European antitrust action against the web search leader and this year’s data privacy scandal involving Facebook Inc and political consulting firm Cambridge Analytica demonstrate their concerns about the unchecked power of the tech heavyweights. About 90 percent of search engine queries in the United States flow through Google.

Facebook and Twitter executives are expected to testify before the Senate Intelligence Committee on September 5 about their efforts to deter foreign campaigns from spreading misinformation online ahead November’s midterm elections. Lawmakers have criticized Alphabet for not scheduling a top executive, such as Chief Executive Larry Page, for the hearings.

In 2013, the FTC closed a lengthy investigation of Google after finding insufficient evidence that consumers were harmed by how the company displayed search results from rivals. President Donald Trump accused Google’s search engine on Tuesday of promoting negative news articles and hiding “fair media” coverage of him.

Trump’s economic adviser, Larry Kudlow, later said the White House was “taking a look” at Google, and that the administration would do “some investigation and some analysis,” without providing further details.

Earlier this year, Representative Keith Ellison, a Democrat, and Representative Todd Rokita, a Republican, sent separate letters asking the FTC to probe Google.

Simon, the new Republican chairman of the FTC, said in July the agency would keep a close eye on big tech companies that dominate the internet.

An FTC representative was not immediately available for comment.

Hatch, at event hosted by reviews website and Google rival Yelp Inc in May, said moves made by “an entrenched monopolist” deserve extra skepticism.

“They may well be used, not to further consumer welfare, but to foreclose competitors,” he said, according to prepared remarks.

Yelp, a local-search service, said in a statement that Hatch’s letter was “heartening to see” as it underscored the bipartisan plea for FTC scrutiny of Google.
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Science

Sexually Transmitted Diseases Seeing Record Increases, CDC Says

By Yscien on Thursday, August 30, 2018

The number of sexually transmitted diseases in the United States is hitting record highs, according to latest data from the Centers for Disease Control and Prevention (CDC).

Nearly 2.3 million cases of chlamydia, gonorrhea and syphilis were diagnosed in 2017, says the CDC. This is the fourth year of increases in STDs and the figures broke 2016’s record by more than 200,000 cases.

Chlamydia remained the most common condition reported to the CDC. More than 1.7 million cases were diagnosed in 2017, with 45 percent among 15- to 24-year-old females.

Chlamydia, gonorrhea, and syphilis often go undiagnosed and untreated, leading to conditions including infertility, ectopic pregnancy, stillbirth in infants, and increased HIV risk.

“We are sliding backward,” said Dr. Jonathan Mermin, director of the CDC’s National Center for HIV/AIDS, Viral Hepatitis, STD and TB Prevention, in a news release. “It is evident the systems that identify, treat and ultimately prevent STDs are strained to [a] near-breaking point.

“Diagnosed cases of gonorrhea increased 67 percent from 333,004 to 555,608 cases, and nearly doubled among men, from 169,130 cases to 322,169 in preliminary data for 2017. Diagnosed cases among women increased for the third year in a row from 197,499 to 232,587.

Syphilis diagnoses increased 76 percent, from 17,375 to 30,644 cases. Gay, bisexual and other men who have sex with men made up almost 70 percent of primary and secondary syphilis cases where the gender of the sex partner is known in 2017. Primary and secondary syphilis are the most infectious stages of the disease.

Researchers say the increases in STDs can be attributed to socioeconomic factors like poverty, stigma, discrimination, and drug use.

While most of the diseases are curable with antibiotics, gonorrhea continues to be resistant to nearly every class of antibiotics used to treat it, with the exception of ceftriaxone.

In 2015, the drug azithromycin was added to treatment for gonorrhea to help delay resistance to ceftriaxone. New CDC findings show that emerging resistance to azithromycin is on the rise in laboratory testing.

“We expect gonorrhea will eventually wear down our last highly effective antibiotic, and additional treatment options are urgently needed,” said Gail Bolan, M.D., director of the CDC’s Division of STD Prevention in a press release. “We can’t let our defenses down — we must continue reinforcing efforts to rapidly detect and prevent resistance as long as possible.”
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Science

Cholera Outbreak Stirs Panic in Algeria

By Yscien on Thursday, August 30, 2018

Algerian health authorities claim the situation is under control after a cholera epidemic in at least four provinces caused more than 60 confirmed cases of the disease, with several deaths reported.

Residents in a village of Tipaza province are drinking water from a spring government officials claim is infected with the cholera virus. But residents counter the spring is safe to drink from and that the government analysis is mistaken.

Cholera outbreaks have been confirmed in Tipaza, Blida, Algiers, and Bouira provinces. More than 130 people have been hospitalized with suspected cases of cholera this month and more than 60 cases were confirmed. At least three people have died, according to Algerian media.

Algeria’s health minister, Mokhtar Hazblawi, recently said health officials have been doing their best to keep on top of the situation.

He says since the disease surfaced, the health ministry has devised a strategy to control it and stop it from spreading.

Issam Eddin Bouyoucef of the El Hadi Flici Hospital Center, which treats infectious diseases in Algiers, told Al Hurra TV hundreds of people have come to the hospital fearing they were suffering from cholera.

He said patients must be quarantined and the disease isolated. He stressed his hospital has set up a specialized isolated wing to treat patients while they recover, once the disease has been confirmed.

Bouyoucef said many people have been panicking, mistaking stomach ailments for cholera. Local media report consumers are buying up large quantities of mineral water.

An elderly resident of capital Algiers told Al Hurra TV he was afraid of the potentially deadly disease and thinks that a large number of people who live in his area have been sickened.

Physician Mohammed Gamary complained to a local TV station the media uncovered the cholera epidemic before the government did. He said doctors in Khazrouna, where the disease was first detected, should have sounded the alarm when they noticed the unusual number diarrhea cases.

Pharmacies in Algiers have been selling large quantities of salts to treat diarrhea, while many people have been avoiding fruit and vegetables, which they fear may be contaminated with the cholera virus.

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Science

WHO: Africans Living Longer, Healthier Lives

By Yscien on Thursday, August 30, 2018

The World Health Organization says Africans are living longer and healthier lives. But the WHO warns that that millions on the continent still face the challenge of chronic diseases.

News of the uptick came in Dakar this week where WHO representatives met with officials from 47 African countries.

Healthy life expectancy on the continent rose from 44.4 years at the turn of the century to 53.8 years in 2015. Overall life expectancy climbed from 50.8 years to 61.2.

Matshidiso Moeti, the WHO’s regional director for Africa, said that two factors were mostly responsible for the change.

“What produced this result is a huge increase in access to treatment [of] HIV-AIDS, and in the better prevention and management of malaria,” Moeti said.

But the WHO says the type of disease that most commonly affects Africans is also changing.

While the number of deaths from diarrheal disease, respiratory infections, and HIV is falling, chronic conditions – such as cancer and heart disease – are claiming more lives.

Death rates from non-communicable diseases have remained steady since 2000 while the other top ten causes of mortality in Africa have fallen by 40 percent.

The WHO says health services in Africa have been slow to adapt to the new health challenges.

Humphrey Karamagi, sustainable development goal coordinator for the WHO, says the health needs of African youth are too often overlooked.

“The kind of health challenges that adolescents face are quite different from what we have been used to responding to – drug use, adolescent obesity and so on.”

Many African health officials and experts point to a lack of funding, but Stanley Okolo, head of the West African Health Organization, says that is overly simplistic.

“There is health, which is an issue in terms of investment and health funding. But there is also an issue in terms of health systems and how you can deliver better value for the money you have. And both have to be tackled simultaneously,” Okolo said.

African nations spend an average 40 percent of their health budgets on medical products, while barely a fifth goes to medical staff and infrastructure.

Health officials from Kenya, Nigeria and Cabo Verde say they are responding to the rise in non-communicable diseases by focusing on prevention and promoting healthy lifestyles.

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Science

Vice Premier: Chinese Enforcers Should be "Realistic" in Pollution

By Yscien on Thursday, August 30, 2018

Chinese authorities should not arbitrarily shut down firms that meet emission standards during environmental cleanup campaigns, Vice Premier Han Zheng said on Wednesday.

Beijing has made reducing pollution one of its highest national priorities, but the drive has been criticized as poorly planned at the local level, with across-the-board closures of industrial plants in some regions ensnaring even compliant companies.

Xinhua news agency quoted Han as saying that measures in the battle against pollution should be realistic and sustainable, though environmental protection policies should be strictly enforced to deter companies that violate the rules.

He was speaking at a meeting on a plan to tackle pollution in and around the Beijing-Tianjin-Hebei region during the winter, when smog often blankets northern China.

The Ministry of Ecology and Environment said in May that China would end a “one size fits all” approach to fighting pollution as it tries to devise more nuanced policies that match local conditions and minimize economic disruption.

A plan to switch millions of households and thousands of businesses from coal to natural gas in north China last winter backfired as severe gas shortages hit the region. “Steadily promote clean winter heating in North China, and ensure people are safe and warm,” Han said.
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Economy

Trump OKs Tariff Relief for Three Countries

By Yeco on Thursday, August 30, 2018

U.S. President Donald Trump has signed proclamations permitting targeted relief from steel and aluminum quotas from some countries, the U.S. Commerce Department said on Wednesday.

Trump, who put in place tariffs on steel and aluminum imports in March, signed proclamations allowing relief from the quotas on steel from South Korea, Brazil and Argentina and on aluminum from Argentina, the department said in a statement.

“Companies can apply for product exclusions based on insufficient quantity or quality available from U.S. steel or aluminum producers,” the statement said. “In such cases, an exclusion from the quota may be granted and no tariff would be owed.”

Trump, citing national security concerns, placed tariffs of 25 percent on steel imports and 10 percent on aluminum imports.

The tariffs on steel and aluminum imports from the European Union, Canada and Mexico took effect June 1, and Commerce Secretary Wilbur Ross said May 31 that arrangements had been made with some countries to have non-tariff limits on their exports of the two metals to the United States.

Ross said the arrangement with South Korea was for a quota of 70 percent of average steel exports to the United States in the years 2015 to 2017.

The Brazilian government said at the time the U.S. quotas and tariffs on Brazil’s steel and aluminum exports were unjustified but that it remained open to negotiate a solution.

Brazilian semi-finished steel exports to the United States are subject to quotas based on the average for the three years from 2015-2017, while finished steel products will be limited to a quota of 70 percent of the average for those years.
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Economy

Trump, Trudeau Upbeat About Prospects for NAFTA Deal by Friday

By Yeco on Thursday, August 30, 2018

The leaders of the United States and Canada expressed optimism on Wednesday that they could reach new NAFTA deal by a Friday deadline as negotiators prepared to talk through the night, although Canada warned that a number of tricky issues remained.

Under pressure, Canada rejoined the talks to modernize the 24-year-old North American Free Trade Agreement after Mexico and the United States announced a bilateral deal on Monday. Canadian Foreign Minister Chrystia Freeland said late on Wednesday that talks were at “a very intense moment” but said there was “a lot of good will” between Canadian and U.S. negotiators.

“Our officials are meeting now and will be meeting until very late tonight. Possibly they’ll be meeting all night long,” Freeland said. She and U.S. Trade Representative Robert Lighthizer had agreed to review progress early on Thursday.

U.S. President Donald Trump has set a Friday deadline for the three countries to reach an in-principle agreement, which would allow Mexican President Enrique Pena Nieto to sign it before he leaves office at the end of November. Under U.S. law, Trump must wait 90 days before signing the pact.

Trump has warned he could try to proceed with a deal with Mexico alone and levy tariffs on Canadian-made cars if Ottawa does not come on board, although U.S. lawmakers have said ratifying a bilateral deal would not be easy.

“They (Canada) want to be part of the deal, and we gave until Friday and I think we’re probably on track. We’ll see what happens, but in any event, things are working out very well.” Trump told reporters at the White House.

The upbeat tone contrasted with Trump’s harsh criticism of Canada in recent weeks, railing on Twitter against Canada’s high dairy tariffs that he said were “killing our Agriculture!”

Canadian Prime Minister Justin Trudeau said he thought the Friday deadline could be met.

“We recognize that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether or not there is ultimately a good deal for Canada,” he said at a news conference in northern Ontario on Wednesday.

“No NAFTA deal is better than a bad NAFTA deal.”

Freeland, who is Canada’s lead negotiator, was sidelined from the talks for more than two months, and will be under pressure to accept the terms the United States and Mexico worked out.

She declined comment on the issues still in play, but said on Tuesday that Mexico’s concessions on auto rules of origin and labor rights had been a breakthrough.

Ottawa is also ready to make concessions on Canada’s protected dairy market in a bid to save a dispute-settlement system, The Globe and Mail reported late on Tuesday.

Sticking points

One of the issues for Canada in the revised deal is the U.S. effort to dump the Chapter 19 dispute resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases. U.S. Trade Representative Robert Lighthizer said on Monday that Mexico had agreed to eliminate the mechanism.

To save that mechanism, Ottawa plans to change one rule that effectively blocked American farmers from exporting ultra-filtered milk, an ingredient in cheesemaking, to Canada, the Globe and Mail reported, citing sources.

Trudeau repeated on Wednesday that he will defend Canada’s dairy industry.

Earlier on Wednesday, the Trump administration’s own anti-dumping duties on Canadian paper, used in books and newsprint, were thrown out by the U.S. International Trade Commission.

The independent panel ruled that about $1.21 billion in such paper imports from Canada were not harming U.S. producers.

Other hurdles to a NAFTA deal include intellectual property rights and extensions of copyright protections to 75 years from 50, a higher threshold than Canada has previously supported.

Some see the tight time-frame as a challenge.

“There’s nothing here that is not doable for Canada,” said Brian Kingston, vice president for international affairs at The Business Council of Canada.

“We’ve got the best negotiators in the world, but they can only stay awake so many hours of every day.”
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Technology

Germany, Seeking Independence From US, Pushes Cybersecurity Research

By Ytech on Wednesday, August 29, 2018

Germany announced a new agency on Wednesday to fund research on cybersecurity and to end its reliance on digital technologies from the United States, China and other countries.

Interior Minister Horst Seehofer told reporters that Germany needed new tools to become a top player in cybersecurity and shore up European security and independence.

“It is our joint goal for Germany to take a leading role in cybersecurity on an international level,” Seehofer told a news conference with Defense Minister Ursula von der Leyen. “We have to acknowledge we’re lagging behind, and when one is lagging, one needs completely new approaches.”

The agency is a joint interior and defense ministry project.

Germany, like many other countries, faces a daily barrage of cyberattacks on its government and industry computer networks.

However, the opposition Greens criticized the project. “This agency wouldn’t increase our information technology security, but further endanger it,” said Greens lawmaker Konstantin von Notz.

The agency’s work on offensive capabilities would undermine Germany’s diplomatic efforts to limit the use of cyberweapons internationally, he said. “As a state based on the rule of law, we can only lose a cyberpolitics arms race with states like China, North Korea or Russia,” he added, calling for “scarce resources” to be focused on hardening vulnerable systems.

Germany and other European countries also worry about their dependence on U.S. technologies. This follows revelations in 2012 by U.S. NSA whistleblower Edward Snowden of a massive spying network, as well as the U.S. Patriot Act which gave the U.S. government broad powers to compel companies to provide data.

“As a federal government we cannot stand idly by when the use of sensitive technology with high security relevance are controlled by other governments. We must secure and expand such key technologies of our digital infrastructure,” Seehofer said.
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Science

Iraq Sees Spike in Water-Borne Illnesses

By Yscien on Wednesday, August 29, 2018

Iraqi health officials say that a health crisis stemming from water pollution and a shortage of clean drinking water has worsened in recent days, as hospitals in the southern port city of Basra treat more than 1,000 cases of intestinal infections on a daily basis. The problem was exacerbated several months ago when Turkey cut back on water distributed to the Tigris and Euphrates Rivers.

A crowd of young men took to the streets on in the southern port city of Basra Tuesday, demanding the central government and Prime Minister Haidar al-Abadi increase the quantity of clean drinking water allotted to their province. Abadi vowed to increase spending on infrastructure for the province during a visit to Basra in July.

A young man, whose friend was killed during a rally several weeks ago, broke down and sobbed over the protesters’ inability to force Iraqi leaders to improve the condition of public services in Basra, especially the region’s worn-out water infrastructure and insufficient quantities of drinking water allotted by the central government.

Some health officials in Basra warn that a cholera outbreak is possible due to water pollution and water-borne parasites that have made thousands of people sick in recent days. The director general of the Basra Health department, Riad Abdul Amir, told Al Hurra TV the situation continues to worsen.

He says more than 17,500 cases of intestinal ailments, resulting from contaminated drinking water, have been treated by Basra hospitals during the past two weeks, alone.

Abdul Amir says the problem stems from insufficient fresh water supplies coming into the city via canals and water pipes from the north.

“Salty water [which has infiltrated the water network],” he asserts, “is known to reduce the efficacy of chlorine used to treat and kill bacteria in drinking water,” he said.

Safaa Kazem, a docotor who has been treating dozens of cases of intestinal problems and diarrhea in Basra’s Sadr Teaching Hospital each day, says water from the city’s supply is not safe to drink.

She says the degree of water sterilization is minimal and that Basra’s water is very salty and has an extremely high level of microbes in it, along with a high degree of chemical pollution.

Basra Governor Assad al Edani told Al Hurra TV that his province has been suffering from numerous infrastructure problems for a long time.

He says the water network in Basra hasn’t been updated in at least 30 years and the old pipes often break, mixing drinking water with sewage.

Edani says “not enough fresh water is arriving via the region’s only canal from Thi Qar province to the north.” He thinks a “strong current of fresh water will flush out salty water seeping into the water network from the sea.”

Edani adds that the population of Basra has “more than doubled since the water network was last updated in the early 1990s.”

Iraq’s individual provinces have been fighting for water, amid a general shortage, since Turkey in early June severely curtailed the number of cubic meters of water it funnels into both the Tigris and Euphrates rivers.

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Science

Virtual Reality: Digital Medicine to Combat Pain

By Yscien on Wednesday, August 29, 2018

Amanda Greene lives with pain.

“If I don’t have nerve pain, I might have joint pain. If I’m not having joint pain, I might have headaches,” Greene said.

The unrelenting pain is a symptom of lupus, an autoimmune disease in which a patient’s immune system attacks the body. Greene has tried acupuncture, massage and opioids, but realized she was allergic to the addictive pain medicine.

The newest therapy that excites her: virtual reality. Greene participated in a test through the company “appliedVR” to see if and how virtual reality could help patients. Greene’s virtual experience helped her to relax and trained her to breathe in a specific way. She saw a tree, crystals, water and her breath as she was guided to inhale and exhale.

“It worked. It works for me,” Greene said. “It’s the quality of life, it is the range of motion, it is like, forget about quality of life, it is the life.”

VR in hospitals and clinics

Brennan Spiegel is a gastroenterologist who has used VR for his patients. He said abdominal pain and gastrointestinal discomfort, in some cases, are related to a patient’s mental state.

“Something like virtual reality actually can intercede in the brain-gut axis and sort of rewire the neurocircuitry in a way that helps to reduce abdominal pain,” said Spiegel, who is also director of Health Services Research at Cedars-Sinai and heads its virtual reality program.

More than 2,500 patients have been treated with virtual reality at Cedars-Sinai, a hospital with the largest documented therapeutic VR program in the world, according to Spiegel.

“Virtual reality can reduce pain, can reduce blood pressure, can improve quality of life, reduce anxiety and now, we’re looking to see can it do really important things like reduce the need for opioids.”

Spiegel said more than 100 hospitals across the United States are using VR as a form of therapy for patients to help manage symptoms such as pain and anxiety. He said an increasing number of countries worldwide are taking an interest, and doctors are starting to develop international guidelines on how to apply and validate the technology in health care.

Spiegel is now taking virtual reality outside the hospital to partner clinics such as Attune Health in Los Angeles, where many of the patients suffer from autoimmune or inflammatory diseases that cause symptoms such as joint pain.

A rheumatologist and founder of Attune Health, Swamy Venuturupalli is conducting a study on how VR can reduce the pain levels of patients in his clinic. Virtual experiences include swimming with dolphins and meditation exercises before a campfire. Venuturupalli said VR is not just a distraction for patients experiencing pain; it can also train them in deep breathing exercises and biofeedback.

“It allows you to connect with that part of your brain that you’re normally not in contact with — the part of the brain that controls respiration, the part of the brain that controls your heart rate and the emotional part of your brain,” Venuturupalli said.

Doctors are also looking into the potential side effects of VR, such as whether it could be addictive.

“It’s probably unlikely and, in fact, we have not seen abuse amongst our patients who are using it for therapeutic purposes rather than for gaming or entertainment,” Spiegel said.

The most common side effect for some patients, according to Spiegel, is “simulator sickness,” the feeling of dizziness and nausea when the patient is wearing a VR headset. He said less than 10 percent of patients experience this, but the symptoms quickly disappear when the headset comes off.

VR pharmacy and clinics

The company appliedVR uses immersive technology to help people manage pain and anxiety. It also is developing content and working with people in entertainment and academia to find VR experiences appropriate for patients. The vision is to have a VR pharmacy.

“You need a wide variety of content because you have a wide variety of people in health care. From infancy to geriatrics and with every personality type,” said Josh Sackman, president and co-founder of appliedVR.

Swimming with dolphins may relax one patient, yet terrify another. Greene said watching a fashion show in virtual reality helps her escape her pain.

The medical world’s reaction to using VR in the clinical setting has changed in the past three years, said Sackman. In 2015, he experienced skepticism among doctors who wondered why television or a tablet couldn’t be used to distract patients. Sackman said that unlike a screen, VR blocks out the sights and sounds of a hospital or clinic as soon as the patient puts on the VR headset.

“In a matter of moments, you see a patient who is in agony, in terrible pain, stressed, having panic and all of a sudden, their body relaxes, a smile comes on their face and you see a physical transformation,” Sackman said.

Spiegel would like to create outpatient VR clinics. He said the aim is not to have patients stay in VR forever.

“The idea is to learn while you’re in virtual reality, that you do have governance over your body, that the mind matters and that you can learn these skills that are then reproduceable and could be called upon when you need them in the real world,” Spiegel said.
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Economy

US Economy Grows a Bit Faster Than First Thought

By Yeco on Wednesday, August 29, 2018

The U.S. economy expanded at a 4.2 percent annual rate in April, May and June, the Commerce Department said Wednesday.

The second-quarter growth figure for gross domestic product was one-tenth of a percentage point higher than initial estimates.

“The economy is in good shape,” said PNC Bank Chief Economist Gus Faucher. He wrote that this was the best “year-over-year increase in three years.”

But Faucher also said growth above 4 percent was “unsustainable” and that the economy was “set to slow somewhat in the second half of 2018,” hitting 3.4 percent growth for the whole year. He predicted U.S. economic growth would slow further in 2019 and 2020 as the “stimulus from tax cuts and spending increases fades.”

U.S. President Donald Trump cheered the news:

But Senate Minority Leader Chuck Schumer, a New York Democrat, had a different take on the report.

“No amount of President Trump tweets can change the fact that real wages are declining,” he said in a statement, adding that the cost of living — particularly gas and health care costs, “thanks in large part to Republicans and the Trump administration” — is “continuing to climb.”

Wednesday’s report from the Commerce Department was a routine revision; such changes are made as more complete data become available.

Growth figures were boosted by a decline in imports, particularly petroleum, and by some temporary factors.

One of those factors was a surge in soybean exports, which were rushed at a faster-than-usual pace to beat tariffs imposed by China in retaliation for new tariffs imposed by the Trump administration on Chinese goods.

The new second-quarter figures were nearly double those of the first quarter.
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Technology

Rights Groups Urge no Censored Google Search for China

By Ytech on Wednesday, August 29, 2018

More than a dozen human rights groups have sent a letter to Google urging the company not to offer censored internet search in China, amid reports it is planning to again provide the service in the giant market.

The joint letter dated Tuesday calls on CEO Sundar Pichai to explain what Google is doing to safeguard users from the Chinese government’s censorship and surveillance.

It describes the censored search engine service, codenamed “Dragonfly,” as representing “an alarming capitulation by Google on human rights.”

“The Chinese government extensively violates the rights to freedom of expression and privacy; by accommodating the Chinese authorities’ repression of dissent, Google would be actively participating in those violations for millions of internet users in China,” the letter says.

In a statement, Google said it has “been investing for many years to help Chinese users, from developing Android, through mobile apps such as Google Translate and Files Go, and our developer tools. But our work on search has been exploratory, and we are not close to launching a search product in China.”

The expression of concern by the rights groups follows a letter earlier this month signed by more than a thousand Google employees protesting the company’s secretive plan to build a search engine that would comply with Chinese censorship. The letter called on executives to review ethics and transparency at the company.

Google had previously complied with censorship controls starting in 2006 as it sought a toehold in the booming Chinese economy. But it exited the Chinese search market in 2010 under unrelenting pressure from human rights groups and some shareholders to leave.

The letter, signed by groups including Amnesty International, Human Rights Watch and Reporters Without Borders, said China’s controls over the internet have only strengthened since then amid an overall crackdown on civil liberties and freedom of expression.

“It is difficult to see how Google would currently be able to relaunch a search engine service in China in a way that would be compatible with the company’s human rights responsibilities under international standards, or its own commitments,” the letter said.

According to online news site The Intercept, Google created a custom Android app that will automatically filter out sites blocked by China’s so-called “Great Firewall.”

Google co-founder Sergey Brin was born in the Soviet Union in 1973 and lived there until age 6 when his family fled. He has said his experience with a repressive regime shaped his and the company’s views.

However, Pichai, who became CEO in 2015 when Google became part of parent Alphabet, has said he wants Google to be in China serving Chinese users.

In December, Google announced it was opening an artificial intelligence lab in Beijing, and in June, Google invested $550 million in JD.com, a Chinese e-commerce platform that is second only to Alibaba in the country. The companies said they would collaborate on retail solutions around the world without mentioning China, where Google services including Gmail and YouTube are blocked.

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Economy

Britain Seeks Ways to Continue Trading with Iran

By Yeco on Wednesday, August 29, 2018

British officials have been turning to Japan for tips on how to dodge American sanctions on Iran, according to local media.

Britain is already seeking from Washington exemptions from some U.S. sanctions, which are being re-imposed by President Donald Trump because of the U.S. withdrawal earlier this year from a controversial 2015 nuclear deal with Tehran. The British are especially keen to maintain banking links with Iran and to import Iranian oil.

According to local media, U.K. officials have been asking their Japanese counterparts how they managed in the past to sidestep some aspects of the pre-2015 sanctions regime, which allowed Tokyo to sign oil deals with Iran as well as insurance contracts without incurring U.S. penalties.

Re-imposed U.S. sanctions penalize any foreign companies that deal with Iran by barring them from doing business in America. That threat has already persuaded more than 50 Western firms to shutter their operations in Iran, including French automakers Renault and Peugeot and the French oil giant Total as well as Germany’s Deutsche Bahn railway company and Deutsche Telekom.

Seeking waivers

British ministers have publicly announced that they are hoping to secure waivers from sanctions for oil imports, tanker insurance and banking. There is particular concern, say British officials, about the position of a gas field 240 miles from Aberdeen which is jointly owned by BP and a subsidiary of Iran’s state-controlled oil company.

According to The Times newspaper, British diplomats and Treasury officials have discussed with their Japanese counterparts what options they may have of evading penalties, if British firms continue to trade with Iran. Britain’s Foreign Office hasn’t commented on the specific claims in report. But in a general statement it says: “We are working with European and other partners, to ensure Iran continues to benefit from sanctions relief through legitimate business, for as long as Iran continues to meet its nuclear commitments under the deal.”

Faltering Iranian economy

On Tuesday, Iranian president Hassan Rouhani was grilled by the country’s lawmakers, who for the first time in his five-year tenure called him before parliament to answer questions about the country’s faltering economy amid the tightening U.S. sanctions.

They asked him about high unemployment, rising food prices and the collapsing value of the Iranian currency. Rouhani, who overcame the opposition of hardliners in the first place to sign the 2015 nuclear deal with the U.S. and other world powers, insisted Iran would overcome the “the anti-Iranian officials in the White House.”

He added: “We are not afraid of America or the economic problems. We will overcome the troubles.” His answers didn’t reassure lawmakers, who voted to reject most of them. Earlier this month the parliament impeached the economy and labor ministers amid growing anger about the economy.

In order to try to keep open financial channels with Tehran and facilitate Iran’s oil exports, the European Union has taken steps to counter renewed U.S. sanctions, including forbidding EU citizens and firms from complying with them.

The European Commission updated a blocking statute on August 7, which bans companies from observing the sanctions — unless expressly authorized by Brussels to do so. It would allow EU firms to recover damages arising from the sanctions. But many companies say they are fearful of losing current or potential business in the U.S.

“Under these conditions it is very difficult,” according to the Director for International Relations at BusinessEurope, a lobby group, Luisa Santos. She says even small and medium-sized businesses which don’t trade with U.S. will face significant challenges because they will need financing from Western banks.

The first round of U.S. nuclear sanctions on Iran officially snapped back into place earlier this month but the more biting sanctions will be re-imposed on November 4 as Washington seeks to pummel the Iranian economy. The first phase U.S. sanctions prohibit any transactions with Iran involving dollars, gold, precious metals, aluminum, steel, commercial passenger aircraft, shipping and Iranian seaports.

Earlier in August, Woody Johnson, the U.S. ambassador to Britain, cautioned there would be trade consequences for Britain, which he described as the closest U.S. ally, unless London breaks with the EU and abides by the re-imposed sanctions on Tehran.

The envoy also delivered a clear ultimatum to British businesses, instructing them to stop trading with Iran or face “serious consequences.”

Trump’s decision in May to withdraw from the 2015 nuclear deal, signed by his predecessor Barack Obama, in which Tehran agreed to nuclear curbs in return for sanctions relief, paved the way for the restoration of unilateral American economic penalties on Iran.

The U.S. administration blames Iran for fomenting instability in the Middle East and encouraging terrorism. Trump has described the 2015 nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), as a “horrible, one sided” agreement.

U.S. officials say Iran has used the money going into the country after the 2015 deal, when sanctions were eased, not to improve the lives of ordinary Iranians but to increase spending on the military and proxy forces in the Middle East, including Hezbollah in Lebanon and militants in Yemen.
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Economy

US, Canada Holding Trade Talks Following US-Mexico Pact

By Yeco on Wednesday, August 29, 2018

Negotiators from Canada and the United States are holding detailed trade negotiations in Washington as they seek to work out a replacement for the North American Free Trade Agreement.

The talks come after the United States and Mexico agreed to a bilateral trade deal this week while leaving the door open for Canada to join and preserve what has been a trilateral trade relationship for more than 20 years.

Canadian Foreign Minister Chrystia Freeland met with U.S. Trade Representative Robert Lighthizer on Tuesday for what she said were “very constructive” initial talks before more specific negotiations between the two sides on Wednesday.

Freeland said some of the details of the U.S.-Mexico agreement, particularly what she called “significant concessions” by Mexico on rules regarding automotive labor and parts origin, have given Canada optimism about the talks in Washington.

“The fact that Mexico was able to do something that I think must have been quite difficult for Mexico and make those concessions does really set the stage for some productive conversations for us here this week.”

It is unclear if the United States and Canada will resolve their long-standing disputes over duties on automobiles and dairy products that have persisted through months of NAFTA negotiations.

Freeland was also due to meet with Mexican trade officials who were still in Washington.

Final details of the U.S.-Mexico deal have yet to be worked out, but Lighthizer said he believes the tentative agreement is a win for both countries that creates more jobs for farmers and other workers.

To escape tariffs, the deal calls for 75 percent of “auto content” – parts and amenities – to be made in either the U.S. or Mexico, up from the current 62.5 percent North American content. In addition, 40 to 45 percent of the auto content must be produced by workers earning $16 or more an hour.

The average hourly pay for U.S. auto workers is more than $22 an hour, but in Mexico it is now less than $3.50 an hour. With the increase in labor costs, it likely will boost the cost of buying a vehicle.

“I think it’s going to modernize the way we do automobile trade, and I think it’s going to set the rules for the future at the highest standards in any agreement yet negotiated by any two nations for things like intellectual property, and digital trade, and financial services trade, and all of the things that we think of as the modernizing, cutting-edge places that our economy is going,” Lighthizer said.

“So this is great for business,” he said. “It’s great for labor. It has terrific labor provisions in it. Stronger and more enforceable labor provisions than have ever been in an agreement by a mile. Not even close.”

However, lawmakers in both countries still need to approve the pact in the coming months.

Some of the agreement mirrors elements contained in the Trans-Pacific Partnership, the 12-nation Pacific Rim trade pact that Mexico and the U.S. both agreed to, before President Donald Trump withdrew the United States. It requires Mexico to allow more collective bargaining for workers and calls for more stringent air quality and marine life protections.

The accord is set to last for six years, at which point the United States and Mexico will review it, and if both sides agree, they would extend it for 16 more years.

But the agreement does not end steel and aluminum tariffs Trump imposed on Mexico earlier this year, leading to Mexican levies on U.S. imports.

Trade between the U.S. and Mexico totaled an estimated $615.9 billion in 2017, with the U.S. exporting $63.6 billion more in goods and services than it imported.
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Economy

Trudeau Promises Effort to Reach Trade Agreement With US

By Yeco on Wednesday, August 29, 2018

Canadian Prime Minister Justin Trudeau says his country will negotiate new trade terms with the United States, but will only accept a deal that serves Canada’s interests. Speaking after the United States reached a tentative deal with Mexico to replace the North American Free Trade Agreement (NAFTA), Trudeau said negotiators have made some progress. U.S. President Donald Trump has threatened to increase U.S. tariffs on Canada’s auto imports if a deal is not reached. VOA’s Zlatica Hoke has more.
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Technology

Cameroon Gaming Stars Train New Generation of Business Superheroes

By Ytech on Wednesday, August 29, 2018

Off a dusty path in the capital city, flanked by chickens roosting in the grass, one of Cameroon’s most successful digital startups is capitalizing on its success to foster a new generation of entrepreneurs.

Founded in 2013, Kiro’o Games has grown to become Central Africa’s first major video games studio. It draws on African mythology rather than Hollywood for inspiration, as in its fantasy role-playing game “Aurion: Legacy of the Kori-Odan.”

Today, Kiro’o’s online educational platform Rebuntu, launched in June last year, trains young Cameroonians to navigate obstacles in real-life business.

“Our generation has the duty to bring something really new that will finally generate growth,” said Olivier Madiba, founder and chief executive officer of Kiro’o.

Subscribers pay 10,000 Central African francs ($17.50) to access a digital training manual, featuring cartoons and advice on how to find good projects, hire the right staff and secure investor funding.

They can also seek online and in-person mentoring from Kiro’o staff.

In volatile Central Africa, better known for conflict, disease and poverty, training locals to set up international companies may seem like mission impossible.

Unlike neighboring states, Cameroon has been relatively stable for decades, but is blighted by high youth unemployment.

Many young people with professional education are forced to take up lower-skilled jobs such as farming, driving taxis and running market stalls.

But Kiro’o digital communications head William Fankam believes there is another way: create your own work.

“We are wall-breakers,” he told the Thomson Reuters Foundation, adding that the gaming team is determined not to let the region’s challenges halt their progress.

The company has broken down barriers in education, with its game designers managing to acquire expertise despite a lack of specialized training in Cameroon.

And it has also overcome the obstacle of financing, Fankam said, developing its own model to raise funds from investors.

The entrepreneurs’ training program aims to share Kiro’o’s pioneering approach with others, he added.

That may seem counter-intuitive in a competitive environment, but in Cameroon, there is a need to stimulate a dynamic and creative business community, he said.

“We realized we can’t evolve alone,” he said. “We want to create an ecosystem where we’ll have many startups with different services which would have an impact on the Cameroonian economy, and wider in Africa.”

In just over a year, about 1,000 Cameroonians have signed up for the training.

The Ministry of Posts and Telecommunications has paid inscription fees for more than 800 of them, who are looking to set up technology-focused businesses.

‘Impossible Dream’

Kenneth Fabo, who runs JeWash, a home dry-cleaning and ironing service in Douala and Yaounde, said the program is helping him devise a crowdfunding strategy to grow his business.

“They taught us a certain method that helped us prepare to fund-raise effectively,” he said, describing how he received training to ensure the business is managed transparently and responsibly in a way that reassures investors.

Kiro’o Games – despite its unique selling point as an African company producing culturally relevant video games – struggled to raise money at the start, said Madiba.

“All conventional investors, the banks, the businesses, rejected our project,” said Madiba, whose childhood ambition was to make computer games. “So we decided to invent our own fundraising process.”

Through a combination of tactics including YouTube videos, a campaign on creative funding platform Kickstarter and tapping non-conventional backers like the Cameroonian diaspora, the group went on to raise 130 million francs ($227,000) from nearly 90 international investors – “a dream that everyone told us was impossible,” said Madiba.

Arielle Kitio Tsamo, founder of CAYSTI, an initiative that trains youth in technology, and winner of the 2018 Norbert Segard Foundation prize for African innovation, said her company had benefited from the Kiro’o support.

“They helped us structure our business model,” she said, adding the scheme also connected her with government partners.

Business Against Poverty

Efforts to motivate entrepreneurs and share knowledge are vital in Cameroon, where the education system does not provide such training, said Steve Tchoumba, business development manager at ActivSpaces, an incubator and accelerator for tech startups.

It provides temporary office space, as well as business coaching and links with mentors and investors, and has also set up partnerships with schools and universities.

“We want to motivate youth to consider entrepreneurship – and specifically technological entrepreneurship – as a potential way of poverty alleviation,” said Tchoumba.

“For every company that is created, there is income for the country, there’s employment for the youth,” he said.

Tchoumba particularly hopes to foster social businesses that can bring wider benefits to local communities.

Multinational companies are also showing interest in West Africa’s startup scene.

Since 2017, Google has been running Launchpad Accelerator Africa, a training program for promising startups. In June, it began accepting applications from Cameroon, Senegal and Ivory Coast, among others.

Despite promising developments, many of the African incubators that have sprung up in the past five years have limited resources, World Bank private-sector specialist Alexandre Laure noted in a blog earlier this year.

Challenges include a lack of basic business necessities, such as a reliable power supply, with sub-Saharan Africa having the world’s lowest household electrification rate.

Kiro’o’s Madiba admits dealing with power cuts and other fundamental problems is tough, but says the group’s resilience has spurred it on to greater things.

“When we started we were just passionate — but at a certain point we became a symbol of something, and we didn’t anticipate this,” he said, referring to the frequent emails he receives from Cameroonians struggling to set up a business.

Many tell him they do not give up because Kiro’o shows that success is possible.

“It’s not only a job — you are building a legacy,” said Madiba.

($1 = 572.4500 CFA francs)
…

Technology

Oprah, John Legend Voice ‘Madagascar’ Director’s VR Passion Project

By Ytech on Wednesday, August 29, 2018

It’s been around for decades, but, unlike regular 3D, virtual reality (VR) has yet to make a big impact in the movie industry, something a maker of Hollywood animations believes can change – if the films are good enough.

Eric Darnell, who co-wrote and directed the “Madagascar” movies, showed his own VR film at the Venice Film Festival this week, “Crow: The Legend,” in which the viewer is immersed in the story of a mythical bird that has to fly to the sun to bring back warmth to the Earth.

With a voice cast that includes Oprah Winfrey, John Legend and “Crazy Rich Asians” star Constance Wu, “Crow” is hardly an amateur affair, but Darnell’s Baobab Studios will be giving the movie away rather than selling it, as a way to generate interest in the medium.

“I don’t expect it’s going to be today or six months even,” he said of when VR might go mainstream.

“The technology has to get better, headsets have to get cheaper, the content has to get better and that’s at least as important as anything else,” Darnell told Reuters. “It’s a chicken and an egg thing. You can make all the great headsets you can but if there’s not great content … what’s the point?”

Darnell said he was attracted to VR after becoming “a little bit stale” making regular animation.

“When I put a VR headset on, it just blew me away and it reminded me of the first time I saw computer animation back in the early 80s … (That) launched a whole career for me and so when I put that headset on it reminded me of what I felt like

back then.”

In “Crow”, based on a native American legend, the viewer wears a VR helmet and hand-controllers to join the bird on its adventure, using the hands to send waves of virtual energy to help it on its way.

“I think the way we are really going to get there is by putting the viewer inside the story,” Darnell said. “Not just playing a story for them, putting them inside the story so that other characters recognize that the viewer is there and that it means something to them, that you are in their world.”

The Venice Film Festival runs from Aug. 29 to Sept 8.
…

Economy

China Struggles to Curb Its Reliance on US Buyers, Suppliers

By Yeco on Wednesday, August 29, 2018

Faced with plunging U.S. orders, surgical glove maker Ren Jiding is hunting for new markets amid Chinese government calls to reduce reliance on the United States. But no other market can absorb the 60 percent of his sales that went to American customers last year.

“Other countries import much less than the United States,” said Ren, a co-owner of Hongyeshangqin Medical Science and Technology Co. Ltd. in the eastern city of Zibo.

From medical products to smartphone chips to soybeans, Beijing is responding to President Donald Trump’s tariff hikes by pushing companies to trade more with other countries. But there are few substitutes for the United States as an export market and source of technology for industries including telecom equipment makers that Chinese leaders are eager to develop.

Beijing has announced tariff cuts and other changes while rejecting U.S. demands to scale back plans such as “Made in China 2025,” which calls for state-led creation of Chinese champions in robotics, biotech and other fields. American leaders say those violate Beijing’s market-opening promises and might erode U.S. industrial leadership.

The response highlights the cost the ruling Communist Party is willing to pay in lost sales and jobs to stick to plans that are fueling conflict with Washington, Europe and other trading partners.

’Fundamental’ to growth

“China sees its technology and industrial policies as fundamental to its growth,” Tianjie He of Oxford Economics said in an email. “It is thus hard to see China’s leadership committing to significant changes.”

Trump has raised duties on $50 billion worth of Chinese imports, including ultrasound scanners and industrial components that Washington says benefit from improper policies. China retaliated with similar penalties.

The U.S. is poised to raise duties on $200 billion worth of imports, including the gloves made by Ren’s company. Beijing has issued a list of American goods for retaliation.

The impact on China is “small and is containable, at least for the time being,” said Vincent Chan of Credit Suisse. He said the “worst case” outlook if all threatened U.S. tariff hikes go ahead would cut China’s growth by 0.2 percentage point this year and 1.3 percent in 2019.

Chinese leaders have tried to cushion the blow to their own economy by targeting American goods its importers can get from other countries — soybeans from Brazil, gas from Russia, cars from Germany and fish from Vietnam.

Beijing has promised to use revenue from the higher tariffs to help struggling exporters and has ordered banks to lend more freely to them.

The biggest jolt so far came from Beijing’s cancellation of orders for soybeans, the biggest American export to China at $21 billion last year. That hammered farm states that voted for Trump in the 2016 election. It also pushed up prices for Chinese farmers that use soybeans for animal feed and food processors that crush them for cooking oil.

That could be a windfall for Brazil. But China already is its top market and consumes two-thirds of the global supply. Chinese total imports last year of 95 million metric tons were 50 percent more than the South American giant’s entire exports.

Few sources

“The Chinese can talk all they want about finding other sources of soybeans,” but 80 percent come from the United States, Brazil and Argentina, said Michael Cordonnier, president of Soybean & Corn Advisor Inc., a U.S. research firm.

“If you want to import soybeans, it generally must be from one of those three countries,” Cordonnier wrote in an email.

Regulators also cut import duties on automobiles on July 1 but raised them on vehicles from the United States. That helps luxury brands that import from Germany and Japan.

Replacing markets for Chinese exporters that support tens of millions of jobs will be harder.

The United States bought $430 billion of China’s exports last year, or 20 percent of the $2.2 trillion total. The No. 2 market was the 28-nation European Union at $370 billion.

“We can’t afford to lose the U.S. market,” said David Hu, general manager of Sinohood Bags Factory Ltd. in the southeastern city of Yiwu.

Americans bought 40 percent of Hu’s canvas tote bags last year, including the most profitable customized versions with Christmas and other designs.

“What we export to Europe is lower-end products with lower prices,” said Hu. “We could explore the Indian, Vietnamese or Philippine markets. But the prices they offer would be too low.”

Chinese officials point to potential markets in the Belt and Road Initiative, a multibillion-dollar plan led by President Xi Jinping to boost trade by building ports, railways and other infrastructure across Asia to Europe.

That has brought a flood of contracts to Chinese state-owned builders, but complaints about costs have hurt its appeal. Prime Minister Mahathir Mohamad of Malaysia announced this month the cancellation of plans for Chinese-built projects, including a $20 billion rail line.

“There is potential for development in areas such as Central Asia, Eastern Europe, Africa and South America. But their problems are development imbalance and economic instability,” said Li Yong, a senior fellow at the China Association of International Trade, an industry group.

Focus on diversification

Local officials have met with exporters to exhort them to “diversify markets,” according to the state press.

Authorities in the central city of Jingzhou visited exporters to help with customs forms, financing and other details, the website China Industry and Commerce News said.

Ren, the surgical glove maker, said his 300-employee company was looking at Europe and developing countries, but demand was sluggish.

Some companies are confident of keeping their U.S. market share. That reflects the possible success of official efforts to develop higher-tech goods instead of competing on price alone.

The general manager of Yihua Electronic Equipment Co. in southern China’s Guangdong said the tariffs should not affect sales of its digital soldering guns, one-fifth of which are sold to the United States.

“With the 25 percent tariffs, ours still are cheaper than similar German- or Japanese-made products,” said the manager, who would give only his surname, Gou. “We are not producing something like shoes and clothing that could be easily replaced.”

Trump’s pressure could encourage Beijing to throw even more resources at nurturing its own technology creators.

China’s search for non-U.S. suppliers could help companies such as Taiwanese chipmaker MediaTek Inc. But redesigning a phone or network gear and then gaining regulatory and customer approval can take a minimum of three to five years.

“For now,” said He of Oxford Economics, “China remains technologically dependent on the U.S.”
…

Month: August 2018