Month: May 2019

Peruvian Government Passes Law to Tackle Tax Avoidance

The Peruvian government passed a law on Monday aimed at closing loopholes that allow companies to avoid paying taxes, estimating it will be able to collect additional revenues equal to nearly 1 percent of gross domestic product per year.

The law, which was passed by decree after being approved by Congress, targets tax schemes including corporate reorganizations and contracts that defer earnings or bring forward spending in order to avoid taxes, the finance ministry said in a statement.

The government expects the new law to generate an additional 6 billion soles ($1.8 billion) per year, Prime Minister Salvador del Solar said in an interview with state-run TV Peru.

The measure will likely help the government meet its goal of trimming the fiscal deficit to its goal of 2.2 percent of GDP this year and 1 percent in 2021, when President Martin Vizcarra’s term ends.

Peru, the world’s second-biggest copper producer, is one of Latin America’s most stable economies. Gross domestic product expanded 4 percent last year.

Meet the T. Rex Cousin Who You Could Literally Look Down On

Scientists have identified an early cousin of the Tyrannosaurus Rex, a pipsqueak that only reached the 3-foot height of a toddler.

The new dinosaur, found in New Mexico, is called Suskityrannus hazelae (SUE-ski-tie-ran-us HAY-zel-a), a name that uses a Native American word for coyote.

Sterling Nesbitt, a paleontologist at Virginia Tech, said this dinosaur lived about 92 million years ago — millions of years before T. rex. It weighed up to 90 pounds, almost nothing compared to the nine-ton king of the dinosaurs.

Suskityrannus hazalae isn’t the first or even smallest of the Tyrannosaurus family tree, but it provides the best example of how this family of modest-sized dinosaurs evolved into the towering horror of movies and nightmares.

The findings were announced Monday in the journal Nature Ecology and Evolution.

Microsoft’s Offers Software Tools to Secure Elections

Microsoft announced an ambitious effort it says will make voting secure, verifiable and subject to reliable audits. Two of the three top U.S elections vendors have expressed interest in potentially incorporating the open-source software into their proprietary voting systems.

 

The software kit is being developed with Galois, an Oregon-based company separately creating a secure voting system prototype under contract with the Pentagon’s advanced research agency, DARPA.

 

Dubbed “ElectionGuard,” the Microsoft kit will be available this summer, the company says, with early prototypes ready to pilot for next year’s general elections. CEO Satya Nadella announced the initiative Monday at a developer’s conference in Seattle.

 

Nadella said the project’s software, provided free of charge as part of Microsoft’s Defending Democracy Program, would help “modernize all of the election infrastructure everywhere in the world.” Microsoft also announced a cut-rate Office 365 application suite for political parties and campaigns for what it charges nonprofits. Both Microsoft and Google provide anti-phishing email support for campaigns.

 

Three little-known U.S. companies control about 90 percent of the market for election equipment, but have long faced criticism for poor security, antiquated technology and insufficient transparency around their proprietary, black-box voting systems. Open-source software is inherently more secure because the underlying code is easily scrutinized by outside security experts.

 

Two of the leading vendors, Election Systems & Software of Omaha, Nebraska, and Hart InterCivic of Austin, Texas, both expressed interest in partnering with Microsoft for ElectionGuard. A spokeswoman for a third vendor, Dominion Voting Systems of Denver, said the company looks forward to “learning more” about the initiative.

 

Anyone with an existing voting system or developing a new one will be able to incorporate the ElectionGuard development kit — at the state or local level in the U.S. or national level for jurisdictions abroad.

 

“It can be used with a ballot-marking device. It can be used with an optical scanner, on hand-marked paper ballots,” said Josh Benaloh, a senior cryptographer at Microsoft Research and key contributor to the ElectionGuard project.

 

Benaloh helped produce a National Academies of Science report last year that called for an urgent overhaul of the rickety U.S. election system, which faced serious threats from Russian hackers who in 2016 attempted to infiltrate voting administration systems in several states.

 

That report called for all U.S. elections to be held on human-readable paper ballots by 2020. It also advocated a specific form of routine post-election audits intended to ensure that votes are accurately counted. While U.S. officials say there is no evidence of hackers tampering with election results, experts say systems used by millions of U.S. voters remain susceptible to tampering.

 

One election official who has been in informal conversations with the ElectionGuard project leaders is Dean Logan, who runs elections for Los Angeles County, the nation’s most populous, and is building an open-source voting system for it.

 

Election integrity activist Susan Greenhalgh of the National Election Defense Coalition said she hoped the project would encourage innovative thinking at the level that elections are actually managed.

 

ElectionGuard aims to provide “end-to-end” verification of voting in two ways, Benaloh said. First, it lets voters confirm that their votes are accurately recorded.

 

Second, the unique coded tracker it produces registers an encrypted version of the vote that keeps the ballot choice itself secret while ensuring votes are accurately counted. Outsiders such as election watchdog groups, political parties, journalists and voters themselves can verify online that votes were properly counted without being altered.

 

The system would also allow for reliable post-election audits and recounts. Microsoft executives say they also plan to build a prototype voting system for reference.

 

A spinoff of Galois called Free & Fair developed the sophisticated post-election audits , known as “risk-limiting,” for Colorado, which was the first U.S. state to require the audits recommended in the National Academies of Sciences report.

 

ElectionGuard is not designed to work with internet voting schemes — which experts consider too easily hackable — and does not currently work with vote-by-mail systems.

 

ES&S told The Associated Press via email that it was excited to partner with Microsoft and “still exploring the potentials” for incorporated the software kit its voting systems.

 

Hart InterCivic, the No. 3 vendor, said it planned a pilot project with Microsoft to “incorporate ElectionGuard functionality as an additional feature” layered over its core platform.

 

A spokeswoman for Dominion, the No. 2 vendor, said “We are very interested in learning more about the initiative and being able to review the various prototypes that are being planned, along with hearing more about other federally-supported efforts in the elections space.”

 

Edgardo Cortes, a former Virginia elections commissioner now with New York University’s Brennan Center, welcomed additional private sector support for election systems.

 

“I think it’ll take a while to catch on and see how beneficial (ElectionGuard) ends up being,” he said. “But I think it certainly does have a great deal of potential.”

 

Columbia University will be partnering with Microsoft to audit the pilots.

Scientists Warn of Mass Extinction of Species

Scientists gathering in Paris are issuing a dramatic warning of the effects that human activity is having on the world’s biodiversity — saying species are being wiped out at an unprecedented rate. Their 1,800-page report was released Monday at a meeting of experts and officials from 132 nations at the 7th session of the Intergovernmental Science and Policy Platform on Biodiversity and Ecosystem Services.

The situation, as scientists describe it,  is serious. In a statement, IPBES estimates that “about one million animal and plant species are now threatened with extinction over the next few decades, something that has never happened before in human history. Nature is globally declining at an unprecedented rate in human history,” warns the scientists’ report.

The scenario they describe is frightening because all depend on the same ecosystem, without exception. Biodiversity is the diversity of the eight million animal and plant species on Earth. The current rate of their extinction, scientists say, is higher than the average of the last 10 million years.

“On average, about a quarter of all species, across many groups, are threatened with high risk of extinction,” said Thomas Brooks, the International Union For Conservation of Nature’s chief scientist.

This IPBES gathering is the first of several events to put the ecosystem at the center of discussions. Next deadline: the G-7 at the end of August in Biarritz, chaired by France, which wants to put biodiversity on the agenda.

Boeing Did Not Disclose 737 MAX Alert Issue to FAA for 13 Months

Boeing did not tell U.S. regulators for more than a year that it inadvertently made an alarm alerting pilots to a mismatch of flight data optional on the 737 MAX, instead of standard as on earlier 737s, but insisted on Sunday the missing display represented no safety risk.

The U.S. plane maker has been trying for weeks to dispel suggestions that it made airlines pay for safety features after it emerged that an alert designed to show discrepancies in Angle of Attack readings from two sensors was optional on the 737 MAX.

Erroneous data from a sensor responsible for measuring the angle at which the wing slices through the air – known as the Angle of Attack – is suspected of triggering a flawed piece of software that pushed the plane downward in two recent crashes.

In a statement, Boeing said it only discovered once deliveries of the 737 MAX had begun in 2017 that the so-called AOA Disagree alert was optional instead of standard as it had intended, but added that was not critical safety data.

A Federal Aviation Administration official told Reuters on Sunday that Boeing waited 13 months before informing the agency in November 2018.

By becoming optional, the alert had been treated in the same way as a separate indicator showing raw AOA data, which is seldom used by commercial pilots and had been an add-on for years.

“Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane,” Boeing said.

“They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes.”

Boeing said a Safety Review Board convened after a fatal Lion Air crash in Indonesia last October corroborated its prior conclusion that the alert was not necessary for the safe operation of commercial aircraft and could safely be tackled in a future system update.

The FAA backed that assessment but criticized Boeing for being slow to disclose the problem.

Boeing briefed the FAA on the display issue in November, after the Lion Air accident, and a special panel deemed it to be “low risk,” an FAA spokesman said.

“However, Boeing’s timely or earlier communication with the operators would have helped to reduce or eliminate possible confusion,” he added.

Boeing attributed the error to software delivered to the company from an outside source, but did not give details.

Sunday’s statement marked the first time since the two fatal accidents that Boeing explicitly acknowledged doing something inadvertently in the development of the 737 MAX, albeit on an issue that it contends has no impact on safety.

​Boeing has said the feeding of erroneous Angle of Attack data to a system called MCAS that pushed the planes lower was a common link in two wider chains of events leading to both crashes, but has stopped short of admitting error on that front.

The angle of attack measures the angle between the air flow and the wing and helps determine whether the plane is able to fly correctly. If the angle becomes too steep, the flow of air over the wing is disturbed, throwing the plane into an aerodynamic stall. That means it starts to fall instead of fly.

Although the angle itself is key for onboard systems, the industry has debated for years whether such data should be included in already crowded cockpit displays because it is directly related to airspeed, which pilots already scrutinize.

Some analysts and academics say having the AOA Disagree alert installed would have helped Lion Air maintenance crew diagnose a problem on the penultimate flight of the 737 MAX jet that crashed in October, killing all 189 on board.

The 737 MAX was grounded worldwide over safety concerns following the Ethiopian crash in March, killing 157 people.

When the jet returns to service, all new aircraft will have a working AOA Disagree alert as a standard feature and a no-charge optional indicator showing the underlying data, Boeing said. That restores the situation found on the displays of previous 737NG models since around the middle of last decade.

Airlines with grounded 737 MAX jets will be able to activate the AOA Disagree function directly.

Boeing is also developing a software upgrade and training changes to the MCAS system that must be approved by global regulators before the jets can fly again.

Boeing has yet to formally submit the upgrades to the FAA for approval but could do as early as this week once it completes a special test flight.

Federal prosecutors, the Transportation Department inspector general’s office and a blue-ribbon panel are also looking into the 737 MAX’s certification. A U.S. House of Representatives panel will hold a hearing on the plane’s status with the FAA’s acting chief, Dan Elwell, and National Transportation Safety Board Chairman Robert Sumwalt on May 15. 

Bernie Sanders Calls for Breaking Up Big Agriculture Monopolies

Democratic presidential candidate Bernie Sanders on Sunday proposed a sweeping agriculture and rural investment plan to break up big agriculture monopolies and shift farm subsidies toward small family farmers.

 

“I think a farmer that produces the food we eat may be almost as important as some crook on Wall Street who destroys the economy,” Sanders said during a campaign event in Osage, a town of fewer than 4,000 people. “Those of us who come from rural America have nothing to be ashamed about, and the time is long overdue for us to stand up and fight for our way of life.”

 

Sanders’ plan expands on themes that have been central to his presidential campaign in Iowa since the start, including his emphasis on rural America and pledge to take on and break up big corporations.

 

During his Sunday speech, Sanders outlined the dire circumstances confronting rural America — population decline, school and hospital closures and rising addiction and suicide rates in many rural counties nationwide — as the impetus for his policy.

 

His plan includes a number of antitrust proposals, including breaking up existing agriculture monopolies and placing a moratorium on future mergers by big agriculture companies. He would also ban “vertically integrated” agribusinesses — companies that control multiple levels of production and processing of a product.

One of his competitors in the Democratic race, Massachusetts Sen. Elizabeth Warren, included several of those antitrust planks in the agriculture policy she released in March. But Sanders’ policy is more expansive than just targeting major agriculture corporations — he’s also proposing greater government involvement in setting price controls and managing supply and demand of agriculture commodities.

 

His plan calls for a shift from the current farm subsidy system toward a “parity system,” which means “setting price floors and matching supply with demand so farmers are guaranteed the cost of production and family living expenses.” Critics of the farm bill have argued that the current government subsidy system favors large family farms and corporate farms over small family farms, and Sanders’ policy aims to make that distribution more equal.

 

Such a major change in agriculture policy would require congressional action and would likely face fierce opposition from the farm lobby — but Sanders pledged to fight for farmers against corporate interests.

 

“In rural America, we are seeing giant agribusiness conglomerates extract as much wealth out of small communities as they possibly can while family farmers are going bankrupt and in many ways are being treated like modern-day indentured servants,” Sanders said.

 

Sanders would also classify food supply security as a national security issue and increase scrutiny over foreign ownership of American farmland. And he suggests re-establishing a “national grain and feed reserve” in case of a natural disaster or severe weather event — a proposal inspired in part by the recent flooding on Iowa’s eastern and western borders, which swamped acres of cropland and wiped out farmers’ stores.

Sanders also wants to change patent law to protect small farmers from lawsuits brought by corporate farms, strengthen organic standards and bolster programs aimed at supporting minority farmers. He includes in his proposal planks focused on rural economic and infrastructure development and on incentivizing the agriculture industry to help combat climate change by shifting to more sustainable farming practices.

 

Sanders’ agriculture proposal includes planks that specifically tailor some of his broader policy priorities to rural America. He has proposed increasing funding for public education and establishing a universal childcare system, and his agriculture plan seeks an increase in funding for rural education and a universal childcare system that provides access for rural Americans to daycare.

Trump: US to Impose Higher Tariffs on Chinese Exports

U.S. President Donald Trump, looking to pressure China to speed up talks on a new trade agreement, says that starting Friday he will impose sharply higher tariffs on billions of dollars of Chinese exports to the United States.

Trump wrote Sunday on Twitter: “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”

He said he will raise existing 10% tariffs on $200 billion worth of Chinese goods to 25%, and to impose new tariffs on another $325 billion of other products.

The Wall Street Journal reported late Sunday that China is considering canceling trade talks scheduled to take place in Washington this week.

The White House press secretary had not yet responded to VOA for comment regarding the Wall Street Journal report.

Trump and Chinese President Xi Jinping had agreed last December to forestall new tariffs while the talks were going on, but it was not clear how Trump’s announcement would affect the negotiations, set to resume in Washington on Wednesday.

Stock markets were down in both countries Monday, with the Shanghai Composite falling more than 5% and futures on Wall Street down more than 1% ahead of that market’s opening.

Washington and Beijing have engaged in reciprocal tariff hikes over the last year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals. 

Despite an initial goal of finishing by March 1, the two countries have continued to debate several issues, but have yet to complete a deal. Both sides, representing the world’s two biggest economies, have said progress is being made.

The two countries have been trying to resolve disputes over intellectual property theft and forced technology transfers. It is not clear whether the tariffs both countries have imposed will remain in place if an agreement is reached.

Ride a Roller Coaster with No Wheels, No Track

Virtual Reality had a fantastic year in 2016, with the release of several anticipated VR glasses, including the Oculus Rift and the HTC Vive. Gaming and technology fairs presented the new toys proudly, but the boom quickly declined, leaving the technology to only niche applications. Now, a southeastern Chinese city has opened an entertainment park that intends to show VR’s potential as a future technology. Markus Meyer-Gehlen reports.

DRC Ebola Outbreak ‘Worsening;’ Over 1,000 Dead

The International Federation of Red Cross and Red Crescent Societies (IFRC) says the outbreak of Ebola in the Democratic Republic of Congo is “worsening” and has killed more than 1,000 people.

IFRC said Saturday that in the past week, 23 cases were reported in one day, a record number since the start of the outbreak in 2018.

The DRC health ministry said Friday the Ebola death toll has risen to 1,008.

Violence helps cases spike

Violence has complicated efforts to contain the second most deadly Ebola virus outbreak in history, as the number of new cases increases each time treatment and prevention work is disrupted.

Many people are afraid to go to Ebola treatment centers because of the violence. They may instead choose to stay home where they run the risk of infecting their caretakers and neighbors.

“We are at a critical juncture where we need to step up our support to communities that are facing greater risk of infection, yet Ebola responders face massive security challenges and a lack of resources for the response,” said Nicole Fassina, IFRC Ebola Virus Disease Coordinator. “An under-resourced operation creates a very real risk of an international spread of Ebola,” she added.

“We are dealing with a difficult and volatile situation,” said Michael Ryan, the World Health Organization’s executive director of emergencies program. “We are anticipating a scenario of continued, intense transmission.”

Insecurity has become a “major impediment,” Ryan said.

The most deadly Ebola outbreak occurred in West Africa in 2014. More than 11,000 people had been killed by 2016.

European, US Authorities Bust Major Darknet Site

European and American investigators have broken up one of the world’s largest online criminal marketplaces for drugs, hacking tools and financial-theft wares in raids in the United States, Germany and Brazil.

Three German men, ages 31, 22 and 29, were arrested after the raids in three southern states on allegations they operated the so-called “Wall Street Market” darknet platform, which hosted about 5,400 sellers and more than 1 million customer accounts, Frankfurt prosecutor Georg Ungefuk told reporters in Wiesbaden on Friday.

A Brazilian man, the site’s alleged moderator, was also charged.

The three Germans, identified in U.S. court documents as Tibo Lousee, Jonathan Kalla and Klaus-Martin Frost, face drug charges in Germany on allegations they administrated the platform where cocaine, heroin and other drugs, as well as forged documents and other illegal material, were sold.

They have also been charged in the United States with conspiring to launder money and distribute illegal drugs, according to a criminal complaint filed in Los Angeles federal court.

“The charges filed in Germany and the United States will significantly disrupt the illegal sale of drugs on the darknet,” Assistant U.S. Attorney Ryan White told reporters in Germany. “We believe that Wall Street Market recently became the world’s largest darknet marketplace for contraband including narcotics, hacking tools, illegal services and stolen financial data.”

Two-year operation

Ungefuk said Wall Street Market was at least the second biggest, refusing to name others for fear of jeopardizing other investigations.

In the nearly two-year operation involving European police agency Europol and authorities in the Netherlands as well as the U.S. and Germany, investigators pinpointed the three men as administrators of the platform on the darknet. It is part of the internet often used by criminals that is hosted within an encrypted network and accessible only through anonymity-providing tools, such as the Tor browser.

Transactions were conducted using cryptocurrencies, and the suspects took commissions ranging from 2% to 6%, Ungefuk said.

The site trafficked documents such as identity papers and driver’s licenses. But an estimated 60% or more of the business was drug-related, he said.

​Caught during ‘exit scam’

Authorities swept in quickly after the platform was switched into a “maintenance mode” April 23, and the suspects allegedly began transferring funds used on the platform to themselves in a so-called “exit scam,” Ungefuk said.

The U.S. Department of Justice said the administrators took about $11 million in the exit scam from escrow and user accounts.

The U.S. identified a fourth defendant as Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil. It was not clear if he had been arrested, and federal police in Brazil wouldn’t comment.

Annibale, who went by the moniker “MED3LIN” online, faces federal drug distribution and money laundering charges in the United States for allegedly acting as a moderator on the site in disputes between vendors and their customers. He also allegedly promoted Wall Street Market on prominent websites such as Reddit, the Justice Department said.

Brazilian authorities searched his home Thursday after investigators linked his online persona to pictures he posted of himself years ago, U.S. officials said.

Impact will be short-lived

A University of Manchester criminology researcher who follows activity on dark web markets, Patrick Shortis, said the takedown was widely anticipated after Annibale leaked his credentials and the market’s true internet address online.

Knocking out Wall Street Market is unlikely to have a lasting impact on online criminal markets, though law enforcement officials make it clear they are going after sellers and customers, Shortis said.

In Los Angeles, two drug suppliers were arrested, and authorities confiscated about $1 million cash, weapons and drugs in raids. They were only identified by their online monikers, “Platinum45” and “Ladyskywalker,” and characterized as “major drug traffickers” dealing methamphetamine and fentanyl.

Other darknet busts

After the first big takedown of such a marketplace, Silk Road in 2013, it took overall trade about four to five months to recuperate, Shortis said. And after law enforcement took out Hansa and AlphaBay in 2017, it took about a month, he said.

Shortis said one threat he does see to the market, in the short term at least, are so-called denial of service cyberattacks that effectively knock web servers offline by flooding them with traffic.

“An extortionist is currently targeting Empire and Nightmare, who are both in the running to replace Wall Street as the top market,” he said.

The raids in Germany culminated Thursday with the seizure of servers, while federal police confiscated 550,000 euros ($615,000) in cash, Bitcoin and Monero cryptocurrencies, hard drives, and other evidence in multiple raids.

Because of the clandestine nature of the operation and the difficulty of tracing cryptocurrencies, Ungefuk said it was difficult to assess the overall volume of business conducted by the darknet group. But he said that “we’re talking about profits in the millions at least.”

Guatemala’s Poor Bear Brunt of Climate Change, Research Says

Guatemala’s subsistence farmers and indigenous people living in poor rural 

communities are most affected by rising temperatures and unpredictable rainfall linked to climate change, a leading researcher said Friday.

Poverty makes the Central American country highly vulnerable to the impact of global warming that damages harvests and causes food shortages, said Edwin Castellanos, lead author of a report by the Guatemalan System of Climate Change Sciences (SGCCC). 

Guatemala could see a rise of 3 to 6 degrees Celsius by 2100 and a drop of 10 to 30 percent in rainfall if countries such as China, India and the United States do not cut greenhouse gas emissions, according to the SGCCC. 

Nearly 200 countries agreed in 2015 to curbing greenhouse emissions enough to keep the global hike in temperatures “well below” 2 C above pre-industrial times while pursuing a tougher 1.5 C ceiling. 

Carbon dioxide and methane are the main greenhouse gases that trap heat and contribute to climate change. 

“Guatemala is very vulnerable due to its high levels of poverty,” said Castellanos, who is dean of the Research Institute at Guatemala’s Valle University and a leading expert in climate change in Central America. 

“Changes in weather exacerbate and worsen the situation, especially among the poorest populations,” he said. 

Chronic malnutrition

Seven in every 10 farming families live in poverty, and nearly half of all children under age 5 have chronic malnutrition, according to a report this week by the SGCCC, a group of universities, researchers and government agencies. 

About half of Guatemala’s population of 17 million is indigenous, many of them subsistence bean and maize farmers. 

“It will depend a lot on what developed countries do to reduce their greenhouse gas emissions,” Castellanos told the Thomson Reuters Foundation. 

Rainfall in Guatemala is becoming more unpredictable, resulting in crop losses, he said. 

“The rainy season is starting later,” he said. “When it does start to rain, the rains are very intense.” 

Guatemala is located in a wet, tropical area but poor management has caused major water shortages in many areas, he said. 

Also, over the past four decades, the average temperature in Guatemala has risen already by at least 1 degree Celsius, according to the SGCCC. 

In 2013, Guatemala passed a law requiring all government agencies to draw up plans to combat climate change, but it lacks the resources and funding to effect major change, he said. 

Guatemala’s agriculture ministry has started helping small farmers set up irrigation systems to cope with drought, but only about a thousand irrigation systems are being built a year when millions of families are in need, he said.

30 Nations Pitch Internet Security Rules Amid Huawei Concern

Cybersecurity officials from dozens of countries on Friday proposed a set of principles to ensure the safety of next generation mobile networks amid concerns over the use of gear made by China’s Huawei.

The non-binding proposals were published at the end of a two-day meeting in Prague to discuss the security of new 5G networks.

The U.S. has been lobbying allies to ban Huawei from 5G networks over concerns China’s government could force the company to give it access to data for cyberespionage. Huawei, the world’s biggest maker of telecom infrastructure equipment, has denied the allegations.

The proposals reflected security concerns, with some wording that also appeared to be aimed at raising the bar for Chinese suppliers. The document said “security and risk assessment of vendors and network technologies” should be taken into account, as well as “the overall risk of influence on a supplier by a third country,” especially its “model of governance.”

“Security and risk assessments of vendors and network technologies should take into account rule of law,” it said.

U.S. officials have urged their allies to take into account the laws and legal system of a country where a 5G supplier is based, saying that China’s lack of independent judiciary means companies have no legal options if they don’t want to comply with Beijing’s orders.

The European Commission has also recommended that EU countries factor in the legal systems of the countries where 5G suppliers are headquartered.

At the meeting in Prague, the cybersecurity officials came mainly from countries that are strategic allies, including European Union member states, the United States and its Asia-Pacific allies including Australia, Japan and South Korea and Singapore. NATO and European Union officials also participated but China and Russia were not present.

Europe has become a key battleground in the war over whether to ban Huawei, with countries gearing up to deploy the new networks, starting with the auction of radio frequencies this year.

US Adds Robust 263K Jobs; Unemployment at 49-Year Low

U.S. employers added a robust 263,000 jobs in April, suggesting that businesses have shrugged off earlier concerns that the economy might slow this year and anticipate strong customer demand.

The unemployment rate fell to a five-decade low of 3.6% from 3.8%, though that drop partly reflected an increase in the number of Americans who stopped looking for work. Average hourly pay rose 3.2% from 12 months earlier, a healthy increase though unchanged from the previous month.

Friday’s jobs report from the Labor Department showed that solid economic growth is still encouraging strong hiring nearly a decade into the economy’s recovery from the Great Recession. The economic expansion is set to become the longest in history in July.

Many businesses say they are struggling to find workers. Some have taken a range of steps to fill jobs, including training more entry-level workers, loosening educational requirements and raising pay.

The brightening picture represents a sharp improvement from the start of the year. At the time, the government was enduring a partial shutdown, the stock market had plunged, trade tensions between the United States and China were flaring and the Federal Reserve had just raised short-term interest rates in December for a fourth time in 2018. Analysts worried that the economy might barely expand in the first three months of the year.

Yet the outlook soon brightened. Chair Jerome Powell signaled that the Fed would put rate hikes on hold. Trade negotiations between the U.S. and China made some progress. The economic outlook in some other major economies improved. Share prices rebounded.

And in the end, the government reported that the U.S. economy grew at a 3.2% annual rate in the January-March period — the strongest pace for a first quarter since 2015. That said, the growth was led mostly by factors that could prove temporary — a restocking of inventories in warehouses and on store shelves and a narrowing of the U.S. trade deficit. By contrast, consumer spending and business investment, which more closely reflect the economy’s underlying strength, were relatively weak.

Yet American households have become more confident since the winter and are ramping up their spending. Consumer spending surged in March by the most in nearly a decade. A likely factor is that steady job growth and solid wage increases have enlarged Americans’ paychecks.

Businesses are also spending more freely. Orders to U.S. factories for long-lasting capital goods jumped in March by the most in eight months. That suggested that companies were buying more computers, machinery and other equipment to keep up with growing customer demand.

Housing, too, is rebounding after home sales had slumped in the second half of last year. Mortgage rates rose to nearly 5% last fall as the Fed raised interest rates. With the Fed now putting rate hikes on hold, borrowing costs have declined.

In February, sales of existing homes jumped by the most in three years. And in March, more Americans signed contracts to buy a house. Contract signings usually lead to finished sales one to two months later.

Vietnam Develops Own Smartphones After Decades of Contract Work

Vietnam is used to being an order taker. Companies such as Nokia and Samsung Electronics use the Southeast Asian country’s cheap labor to assemble consumer electronics for export. Those investments from abroad have slowly handed Vietnam the supplies, parts and know-how needed for local companies to make their own smartphones.

In a bellwether case, a unit of the Vingroup property and retail conglomerate began selling phones in December with plans to join a Spanish technology firm in escalating production over the next two years, according to domestic media reports.

Vingroup should expect a stronger than ever onshore supply chain plus abundant labor, analysts in Vietnam say, but must appeal better than its predecessors, mostly written off as failures, to the domestic market where shoppers tend to prefer foreign brands.

“I would say that there’s more and more bits and pieces that are being produced in Vietnam as the Taiwanese and Koreans and everybody else moves their parts supply here,” said Frederick Burke, partner with the law firm Baker McKenzie in Ho Chi Minh City.

Brisk sales of a locally made phone would push Vietnam’s low-wage, contract-reliant economy up the value chain.

​Qphones out, Bphones in

Vietnamese developers have launched a handful of mobile phones over the past decade under brands such as Qphone and Mobiistar. A lot have faded or folded because of poor marketing or lack of knowledge about what consumers want, said Thanh Vo, senior analyst with the market research firm IDC Indochina in Ho Chi Minh City.

In 2015, handset builder and software firm BKAV Corp. came out with what consumers and analysts describe as Vietnam’s first qualified success.

BKAV’s first devices, the Bphone and Bphone 2, got poor reviews, domestic news website VietNamNet Bridge said in a report in October. But its $314 Bphone 3 released last year won praise among experts for its processing speed and water resistance “contrary to all predictions,” the report said.

Vinsmart signed an agreement in July with BQ of Spain to launch four smartphones under the Vsmart brand in December, the Vietnam Investment Review reported. Vingroup, which is run by Vietnam’s richest person Pham Nhat Vuong, plans to make up to 5 million handsets a year by 2021, the Financial Times reported.

Vingroup did not answer a request for comment for this report.

​Nation of factories

Foreign investment in Vietnamese manufacturing is fueling economic growth of 6% to 7% every year. The GDP rose nearly 7.1% in 2018, the highest in 11 years. Among the engines, Samsung, LG Electronics, Nokia and Intel are all making “multibillion-dollar investments” in Vietnam, business consultancy Dezan Shira & Associates says. Exports of electronics had exceeded $40 billion by 2017.

Five years ago, just 2% of the value added to made-in-Vietnam electronics was local, Burke said. That percentage, he said, is higher now. The Vsmart phones will probably still use parts from offshore, he said, but find a solid local supply chain as well.

The Bphone 3s run on Qualcomm Snapdragon processors and use Gorilla Glass covers by Corning. Both suppliers are American.

Labor for domestic phones will be intensely local, Vo said. 

“From my experience, Vingroup will pay the high salaries to recruit the human resources from other competitors,” he said.

​Hesitant consumers

Economic growth will help expand the middle class to about one-third of Vietnam’s 96 million people by next year, the Boston Consulting Group estimates. Some of that new wealth in the country where just about everyone, including fishermen and garbage collectors, carries a smartphone has gone toward high-end phones by Apple and Samsung.

“I am not interested in Vietnamese phones, since the Bphone was unveiled a few years ago, and the quality is not good,” said Phuong Hong, a 10-year iPhone user in Ho Chi Minh City.

But consumers who normally buy relatively cheap handsets made by Chinese firms such as Oppo and Huawei might consider a local brand in the same price range, Burke said.

Because consumers normally pick smartphones for their design and price rather than country of origin, Vietnamese vendors must step up their marketing and figure out before production what domestic shoppers want, Vo said. Vietnamese are looking for phones as cheap as $200, he added.

“We’ve seen many people try and many people fail, so one has to take a view on whether Vietnamese really want to buy a Vinsmart phone rather than a Samsung phone or an Apple phone, for example,” said Kevin Snowball, chief executive officer with PXP Vietnam Asset Management in Ho Chi Minh City.

SpaceX Admits Crew Capsule Destroyed in April Test

Nearly two weeks after a fiery explosion during a ground test of its new crew capsule, SpaceX confirmed Thursday that the vehicle was destroyed, but neither the company nor NASA, its primary customer, have publicly acknowledged the nature of the mishap.

Instead, Hans Koenigsmann, vice president of flight reliability for California-based Space Exploration Technologies Corp., known as SpaceX, continued to refer to the accident simply as an “anomaly,” jargon for when something goes wrong.

The April 20 accident occurred at Cape Canaveral Air Force Station as SpaceX was about to test eight emergency thrusters designed to propel the capsule, dubbed Crew Dragon, to safety from atop the rocket in the event of a launch failure.

“Just prior, before we wanted to fire the (thrusters), there was an anomaly and the vehicle was destroyed,” Koenigsmann told reporters Thursday at NASA’s Kennedy Space Center. “There were no injuries. SpaceX had taken all safety measures prior to this test, as we always do.”

The news conference was called ahead of Friday’s scheduled launch of an unmanned resupply mission to the International Space Station using a cargo-only capsule built by SpaceX, the private rocket venture of billionaire entrepreneur Elon Musk.

When pressed about the accident, Koenigsmann declined to say whether an explosion or fire was involved. NASA has likewise declined to describe the mishap.

A leaked video of the accident, which a NASA contractor has acknowledged as authentic in an internal memo obtained by the Orlando Sentinel newspaper, showed the capsule blasting to smithereens. A pall of smoke was also widely observed from a distance at the time of the ill-fated test.

SpaceX’s reluctance to describe in plain terms what happened to the capsule was at odds with NASA’s long history of transparency surrounding accidents involving its human spaceflight program.

The Crew Dragon had been scheduled to carry U.S. astronauts Bob Behnken and Doug Hurley to the space station in a test mission in July, although April’s accident, as well as some vehicle design hitches, are likely to push that launch to later in the year or into 2020.

“It’s certainly not great news for the schedule overall, but I hope we can recover,” Koenigsmann said.

The destroyed vehicle was one of six such capsules built or in late production by SpaceX, and the first flown into space. A SpaceX Falcon 9 rocket launched it without crew to the space station in March for a six-day visit before returning to Earth, splashing down safely in the Atlantic for retrieval.

Koenigsmann said initial data from the accident showed the mishap occurred during activation of the emergency thrusters, which SpaceX calls the SuperDraco system.

“We have no reason to believe there is an issue with the SuperDracos themselves,” Koenigsmann said, adding that the engines have been tested nearly 600 times in the past.

NASA has been awarded $6.8 billion to SpaceX and rival Boeing Co to develop separate capsule systems to fly astronauts to space, but both companies have faced technical challenges and delays.

Facebook Bans Several Personalities for Hate Speech

The hugely popular social media site Facebook has banned Nation of Islam leader Louis Farrakhan, right-wing conspiracy theorist Alex Jones and several others for hate speech.

Facebook said Thursday that the individuals violated its policy against instigating violence.

“Individuals and organizations who spread hate or attack or call for the exclusion of others on the basis of who they are have no place on Facebook … regardless of ideology,” a spokeswoman said.

They are also barred from Facebook’s photo-sharing site, Instagram.

Facebook did not say whether any specific posts from those named led to the ban.

Jones is best known for theories claiming the government was behind the 9/11 terror attacks and that the Sandy Hook Elementary School massacre in Connecticut in 2012 was a hoax.

He angrily responded to the ban, saying Facebook had “defamed” him.

Another far-right commentator banned, Paul Joseph Watson, has been accused of racism and intense hatred of Muslims.

He said he did not break any of Facebook’s rules and called on like-minded commentators to pressure the Trump administration to take action on their behalf.

Farrakhan, the veteran leader of the black nationalist group Nation of Islam, has long been accused of anti-Semitism and black separatism. He has not responded to the Facebook ban.

Other far-right personalities barred from Facebook are Paul Nehlen, Laura Loomer and Milo Yiannopoulos.

White House Downplays Trump Meeting With Tycoon

A White House meeting between the current U.S. president and a prominent businessman who is seeking to become president of Taiwan is causing concern. 

The White House on Thursday sought to downplay any diplomatic or political sensitivities, saying President Donald Trump and Foxconn founder Terry Gou did not discuss support for the billionaire’s presidential campaign in Taiwan. 

“He is just a great friend” of Trump, White House press secretary Sarah Sanders said in a statement. 

The Taiwanese businessman, however, in a Facebook posting after Wednesday’s meeting and in a discussion with reporters, said he told the president of his candidacy and Trump responded that being president “was a tough job.” 

He also displayed a pen and autographed coin he said that Trump gave him.

“If I am elected president of the Republic of China, I will be a peacemaker and won’t become a troublemaker,” Gou told reporters. “I will strengthen Taiwan and the U.S. economically.” He also boasted that of all the presidential contenders, he is the only one to have secured an Oval Office meeting. 

Wednesday’s discussion is the first known circumstance of a sitting American president meeting with a Taiwanese presidential candidate since Washington broke diplomatic ties with Taipei in 1979 as part of its recognition of the communist government in Beijing. 

Gou is to seek the nomination of the opposition Kuomintang party in Taiwan’s 2020 presidential election. The party is regarded as having a friendlier stance toward Beijing than the ruling Democrat Progressive Party of President Tsai Ing-wen. 

Trump also was seen as breaking protocol as president-elect when he had a phone conversation with Tsai, something that prompted protest from the Chinese government, which regards Taiwan as a renegade island province. 

The Trump-Gou meeting occurred at a particularly sensitive time. The United States is in the final stages of negotiating a sweeping trade deal with China amid growing strategic tension between the two Pacific powers. 

Meanwhile, Gou — who has appeared in public previously alongside Trump to tout economic investment — is receiving criticism in the U.S. state of Wisconsin because what was envisioned as a $10 billion liquid crystal display factory project has fallen behind schedule. 

“Mr. Gou is spending a lot of money in Wisconsin and soon will announce even more investment there,” the White House press secretary said in her statement. 

Foxconn, which is a major supplier for Apple Inc. products, says Gou and Trump discussed the “positive progress of the Wisconn Valley Science and Technology Park project and other matters.” 

Trump, a strong supporter of the project in the political swing state, has proclaimed it the “eighth wonder of the world” for its scope and its projected economic impact, including as many as 13,000 jobs. 

There is concern about whether it will become a reality as envisioned because Foxconn failed to meet its job targets in 2018 to qualify for state tax credits and it has reduced the size of the factory it originally announced it would construct. 

Gou, speaking to reporters on Wednesday, disputed that anything significant has changed. 

“It is not right to say our investment in Wisconsin has changed,” he said. “We suspended the work around October and November last year because the weather there was snowy and icy cold. We will continue our work in May when the weather gets warmer.”

Gou on Thursday flew to Wisconsin on his private jet and met with Gov. Tony Evers at an airport terminal to further try to allay concerns about the project. 

Evers earlier told reporters he would emphasize to Gou that there must be adequate protections for taxpayers and environmental standards. 

Melinda Gates Speaks to VOA About Women’s Empowerment 

VOA Africa Division’s Linord Moudou spoke to Melinda Gates about women’s empowerment, work in Africa, the work of the Bill and Melinda Gates Foundation and how men can benefit from women’s empowerment. The interview also touched on the pay gap between men and women and the anti-vaccination movement. 

  

Q: Melinda Gates, thank you so much for joining us on the Voice of America. 

 

Melinda Gates: Thanks for having me. 

 

Q: You just released a book, The Moment of Lift. First of all, you are well known as a accomplished businesswoman and a philanthropist. Why was it important for you to become an author and write this book? 

 

Gates: Well, I have met so many women and families over 20 years of foundation travels to many, many, many countries, and the stories these women have shared with me about their lives have called me to action. And I wanted to write a book that would call others to action, because I believe that equality can’t wait. When we make women equal in society, it lifts up their family and society, and we need to make sure that we really get to equality for women all over the world.

 

Q: So when we talk about equality for women, how would you describe it? What are some of the basic steps? 

 

Gates: To me, equality for women shows up when they have their full voice and their full decision-making authority in their home, in their community and in their workplace. If we can make sure women have that, you will have true equality in society for all women. 

WATCH: Melinda Gates Speaks About Women’s Empowerment 

​Q: So, why did you think of this title, The Moment of Lift? What is the moment? 

 

Gates: Well, when I was a little girl my dad was an Apollo engineer, and he worked on that first mission that went up to space, and my sister and I would get to be in our jammies late at night, watching that that rocket take off. And I love that moment when the engines were ignited, and the Earth was shaking and rumbling, and that rocket would lift off against the forces of gravity that pushed it down, and head off to the moon. And I thought about women. I have thought about all the barriers that hold us down in various societies, and if we could remove those barriers, we would get this moment of lift for women and men all over the world. 

 

Q: And let’s talk about some of those barriers. You’ve traveled around the world, working and empowering women and girls. What are some of the commonalities you were able to see, to witness? 

 

Gates: Well, I see so many women that if we allow them, as a world, to have access to contraceptives, what we know from society after society around the world is once a woman has access to contraceptives, she can time and space the births of her children. She can continue her education, she can work in the workforce if she chooses, her kids are healthier, she’s healthier, the family’s wealthier and better educated. So that barrier — every society has to make the transition through contraceptives first. If women have access to contraceptives, and their kids and they have good health, the next barrier you have to remove is education. Because when women are educated, it changes absolutely everything in their family, and even the decisions they make and what they go do in the world. 

 

Q: So you went to an all-girls Catholic high school. So did I, actually. And one of the things I can remember is contraceptives are not a part of discussion — not very often, at least. So what prompted you to really turn your interest into enabling women to have access to contraceptives, as well as family planning? Why is it such an important part of your work? 

 

Gates: Yes, so I was meeting so many women around the world, and I would be there to talk about vaccinations for their children, which they were thrilled to talk about. They said, “You know, I walk 10 kilometers in the heat to get them. I know the difference.” But when I turn the questions and let them ask questions of me, they would say, “But what about my health? What about that contraceptive that, at this little clinic, I can get vaccines and I used to be able to get contraceptives and now I can’t?” And it was through these rallying calls for women saying, “Why isn’t the world allowing us to have these anymore?” that I came to learn and realize the difference they make in women’s lives. And 200 million women are asking us as a world for contraceptives. It’s a very inexpensive tool. We use it in the United States. More than 90% of women use it in the United States and in Europe, and yet if we don’t allow women to have that tool, [if] we don’t provide it, they can’t lift themselves out of poverty. And so I started to realize that was a really important piece of the work. 

 

Q: And you say in the book, as you work to empower women, others have empowered you. How so? 

 

Gates: I think by other women sharing the stories of their lives. I would often be coming back from various countries in Africa — Malawi, Mozambique, Tanzania, Senegal — and as I was flying home I kept thinking of all these barriers I would see holding women down in Africa. And I would think, “If women could only have this barrier removed or that.” But it was then their stories that helped me turn the question back on the U.S. and say, “How far are we really in the United States?” OK, we’ve made some distance, but less than 25% of people in Congress are women. Less than 5% of Fortune 500 CEOs are women. If a woman wants to start a business in the United States, less than 2% of venture capital funding goes to women-led businesses. So they helped me see what needs to get done around the world, not just in their own countries and where we can help and intervene, but really in our own country, too, in the United States. 

 

Q: So you talked about stories of women in the book. You also bring some of your stories in the book, and you are known to be a private woman. Why was it so important for you to share your own stories? You talk about abuse and other stories — why did you do that?  

  

Gates: Yes. So in this book, even though I’m incredibly private, I decided to be pretty vulnerable, quite vulnerable. That was not an easy decision, but I do. I share stories of my own personal journey because they are the stories, also, of millions of other women. So this story that I do tell of abuse that I experienced — it silenced me. I lost my self-confidence. And we know millions of women around the world are in relationships where they’re being abused. Women tell me about it when I go in villages. I hear about sexual harassment in the workplace in many places in the United States. It’s a spectrum, but any type of harassment holds a woman back. It pushes her back into her corner and she doesn’t get her voice or she doesn’t feel confident to take a decision. So I choose to share a story like that, and my own climb to equality, to let everyone know it is possible. 

 

Q: I would like to read something from the book. You write, “The first time I was asked if I was a feminist, I didn’t know what to say because I didn’t think of myself as a feminist. Twenty-two years later, I am an ardent feminist.” Feminism is a word that is celebrated by some and makes others cringe, even some women. So, what is feminism to you? How are you a feminist? 

 

Gates: Feminism is when a woman has her full voice, and her full decision-making authority wherever she is in her life, in her home, in her community and in her workplace. If she has her voice and can take any decision, then she is fully empowered. And if you believe that, then you are feminist, in my opinion. 

 

Q: Great. Now, the work of the Bill and Melinda Gates Foundation has impacted the world. And particularly, you have worked on the continent of Africa. More than $15 billion has been invested in projects related to Africa. Would you tell us about the impact that you were able to see that has really transformed people’s lives? 

 

Gates: Yes, so the foundation has been in existence now for over 20 years. I think the most important thing for everybody to know is we work in partnership. There is nothing the foundation has ever done without being in full partnership with others, and particularly with governments and citizens on the ground in various countries. And philanthropy is just — all it can be is this catalytic wedge. We can try things; we can experiment where you wouldn’t want a government to do that with taxpayer money. But if we can prove things out and measure it, then we can ask government to scale it up. And so I think one of the foundation’s biggest successes has been in vaccinations. Why is childhood death down, cut in half since 1990? Two enormous reasons: vaccinations and malarial bed nets. And we’re part of two large-scale partnerships to try — that we have done, worked on — to scale up vaccines, in many countries in Africa and all over the world, and to make sure that malaria bed nets through the Global Fund are distributed. 

 

Q: So speaking of vaccinations, vaccines have helped the world get rid certain diseases, like smallpox. Today we see a resurgence of measles. And one of the reasons is because some parents in the United States refused to vaccinate their children. How does it make you feel? 

 

Gates: When I hear that there are cases of measles in the United States, I’m incredibly frustrated. And I’m saddened to think that a global health issue that we have solved in the United States has come back because parents have believed misinformation. And, you know, no child should have measles in this country. No person who is in an immune-compromised situation in the United States should be affected by someone else because a parent has chosen not to get the measles vaccine. These are lifesaving tools. Women tell me all over Africa they walk 10 miles in the heat to get vaccines because it saves their children’s lives. So I’m saddened to see this in the United States and I hope it makes people realize how lucky we are to have vaccines in our country. 

 

Q: Now, working on the African countries, on the African continent, as well as other countries in the world, there are some changes that cannot occur without abandoning certain cultural practices and beliefs. So how do you get people to embrace new ideas in such circumstances? 

 

Gates: Well, everywhere we work, for instance, on the continent of Africa, you know, each country is different and then there are many, many cultures inside of each country. So what you can do, the way to work, is to go — or what we’ve chosen to do — is to work with partners who’ve been on the ground often 30 or 40 years, living with villagers, and people from the community are part of those partners. And what you do is you come in and see where the community’s at, what they’re trying to learn, what their requests and needs are, and then you start to bring in some education — educating around the things they care about and some education about tools we have here in the United States, like contraceptives. And when you’re in a trusting relationship where the villagers start to believe and understand some of the education you’ve brought in, they will start to ask for those tools. And so we do all of our work in that cultural context, [that] hopefully  appropriate way.

 

Q: So to go back to the family planning — why is it so important? What is the message behind family planning? 

 

Gates: Family planning is the greatest anti-poverty tool we have in the world. When a woman can time and space the births of her children, her family is healthier — her entire family — the kids are better educated, and the family is wealthier. And I met a woman named Marianne in Korogocho — in a slum, actually, in Kenya — and she summed up this family planning conversation that we’d had. There’s about 30 women there, and at the end, after two hours, she finally said — she had this beautiful baby girl in her arms, a newborn — and she said, “I want to give every good thing to this child — before I have another one.” And I thought, “Yeah. That sums up how parents feel about their children.” We want to time and space when we have children, so we can bring every good thing to our child, and then have another one. 

 

Q: So what do you say to men in countries where women are treated unequally? 

 

Gates: We go in and work with partners, and we say to men, “If you want your children to be healthy, you need to think about certain things that your wife is doing — the amount of unpaid labor she does, the amount she chops wood, carries water, cooks the meals — and if you’re willing to think about that and to take some of that burden away from her, she will actually be better off and your kids will be better off.” And the only way to do that is to, again, work with partners who are from the community and on the ground, and then have the village look at the tasks that women and men do, have an open conversation over time about that, and then commit to change. And when you do that — I’ve actually seen this in Malawi — the men become champions. They say, “My gosh, my whole house has changed because I’m carrying water now and my wife isn’t, or I’m chopping the firewood, and she has more time for these other things.” And so that’s a conversation we need to have all over the world. Even in the United States, women do 90 minutes more of what we call this “unpaid labor” in our homes [per day] than men do. Some of it is loving, caring work we want to do, caring for our loved ones, but some of it is just chores, right? And so we need to look at that 90 minutes, even in the U.S. — or six hours more that a woman does every day in India versus her husband — and say, “How do we redistribute the workload so women can do other things in the productive work they want to do in their lives?” 

 

Q: Do you see a world where unpaid labor will become maybe something more valued for women who are doing it? 

Gates:  Absolutely. It needs to. I mean, when we think of what paid labor is and unpaid labor, we didn’t for a long time even measure this unpaid labor, and that’s because — let’s go back in time: Economists were predominantly men. It’s a very male-dominated field. So they chose to measure what they knew, which was productive labor. But I would tell you, and what I see from the research, is that our economies are built on the backs of this unpaid labor that women do all over the world. That is also productive. We want somebody taking care of the kids. We want things to happen in our homes. But men and women need to look at that, and I am so encouraged by this next generation that I see who’s coming up, where many young men, particularly in the United States and in Europe, have been raised under moms who work. So the way they look at the work in the home is, they know when they come into the partnership or the marriage, they’re going to do half the work.

 

Q: So speaking of the next generation and men, while empowering women and girls, what is the message to boys and young men? Will men now feel marginalized when they see all this movement around empowering girls?

 

Gates: What I would say to everyone in the world is that equality can’t wait. Our societies are better off when we have equality. Men will actually tell you — I’ve met men in Kenya and Tanzania and Malawi who’ve done this looking at the redistribution of labor in their homes; I meet men in the United States who say, “Hey, I’m actually helping do things I didn’t do before” — and what they start to see is they’re happier, their families are happier, their wife is happier. And what I’ve learned from men around the world, they’ll say — particularly in countries that have paid family medical leave for a long time, like Sweden — they say, “I want to be there at the birth of my child and to take care of my child. I want to participate in that, and my society values it, and so we have paid family medical leave so I can take care of the kids or take care of my aging parents.” And to me that’s enlightened men, and that makes a better society.

 

Q: And now before we wrap two more questions. The Bill and Melinda Gates Foundation, along with partners and other organizations, has invested lots of resources and money in various programs to help developing countries, yet we still see a lot of suffering, whether it’s in health or other areas. Why does it seem like there is a gap between the amount of assistance out there and the number of people who die from preventable diseases? 

 

Gates: I think — I know there’s still people dying of preventable diseases, and every one of those lives, what I want people to know is it’s a tragedy. And when there is generosity from the developed world, in conjunction with African nations putting in some of their own taxpayer monies, you start to move societies forward. And so in the United States, less than 1% of our foreign aid budget goes to countries all over the world. And what you do is you create peace and stability in those places and families lift themselves up. And so what I want people to know is we need to continue to make those investments, because many of these deaths or these diseases, those are needless health emergencies in a family, and they affect families. 

 

Q: And finally, how does empowering women change the world? What is the takeaway from the book? 

 

Gates: If you empower women, they empower everybody else around them. And so if we want healthy societies, we lift up all women. And the goal is not just equality. The goal is a better human race with more connection, and that’s the message of the book. 

 

Q: Melinda Gates, thank you so much for your time. 

Gates: Thank you. 

Beyond Meat Goes Public as Sales of Plant-based Meats Rise

The Nasdaq is adding fake meat to its diet.

Beyond Meat, the purveyor of plant-based burgers and sausages, made its debut on the stock exchange Thursday. It’s the first pure-play maker of vegan “meat” to go public, according to Renaissance Capital, which researches and tracks IPOs.

Beyond Meat raised about $240 million selling 9.6 million shares at $25 each. That values the company at about $1.5 billion.

The 10-year-old company has attracted celebrity investors like Microsoft co-founder Bill Gates and actor Leonardo DiCaprio and buzz for placing its products in burger joints like Carl’s Jr. It sells to 30,000 grocery stores, restaurants and schools in the U.S., Canada, Italy, the United Kingdom and Israel.

Beyond Meat CEO Ethan Brown said the IPO timing is right because the company wants to expand overseas. He also wants consumers to be able to buy shares since they have fueled the company’s growth.

“It really is a wonderful feeling to be able to welcome people in who have helped this brand,” Brown told The Associated Press.

Still, Beyond Meat has never made an annual profit; it lost $30 million last year. It’s also facing serious competition from other “new meat” companies like Impossible Foods and traditional players like Tyson Foods Inc. Tyson recently sold a stake in Beyond Meat because it plans to develop its own alternative meat.

The IPO comes amid growing consumer interest in plant-based foods for their presumed health and environmental benefits. U.S. sales of plant-based meats jumped 42% between March 2016 and March 2019 to a total of $888 million, according to Nielsen. Traditional meat sales rose 1% to $85 billion in that same time frame.

The trend is a global one. U.K. sales of meat alternatives jumped 18% over the last year, while sales of traditional meat and poultry slid 2%.

Even Burger King has recognized the appeal. Earlier this week, the fast food chain announced that it would start testing the Impossible Whopper, made with a plant-based burger from Impossible Foods, in additional markets after its monthlong test in St. Louis proved successful.

Brown says Beyond Meat’s ingredient list — it only uses natural ingredients that haven’t been genetically modified and doesn’t use soy — sets it apart from competitors. Its products are made from pea protein, canola oil, potato starch and other plant-based ingredients. Its burgers “bleed” with beet juice; its sausages are colored with fruit juice.

Unlike competitors, Beyond Meat products have also been sold in the meat section of groceries since 2016. That has broadened their appeal beyond vegetarians. Beyond Meat says a 26-week study last spring showed that 93% of Kroger customers who bought its burgers also bought animal meat during the same period.

Health comparisons are mixed. A four-ounce 92% lean burger from Laura’s Lean Beef has higher fat and cholesterol than a Beyond Meat burger, but Beyond Meat’s burger has higher sodium and carbohydrates and slightly less protein. The lean beef burger is 160 calories; a Beyond Meat burger is 270 calories.

Brown says Beyond Meat is working on reducing sodium, which is a natural byproduct of its manufacturing process. But he also points out that red meat and processed meat have been classified as possible carcinogens by the World Health Organization.

Beyond Meat also costs more. For $5.99, consumers can get two 4-ounce patties of Beyond Burger or four 4-ounce patties of Laura’s Lean Beef.

Brown said Beyond Meat has a five-year goal of getting at least one product — most likely beef — to cost less than the animal version. He expects the supply chain will grow as sales expand, which will lower the cost of raw ingredients like peas.

But Beyond Meat touts environmental benefits as well. The company says a plant-based burger takes 99% less water and 93% less land to produce than a beef burger, and generates 90% fewer greenhouse gas emissions.

Beyond Meat was founded in 2009 by Brown, a former clean energy executive. Brown’s family part-owned a Maryland dairy farm, so as a child, Brown spent weekends and summers on the farm. As he grew older, he began to question whether people really needed animals to produce meat.

Brown teamed up with two professors from the University of Missouri, Fu-hung Hsieh and Harold Huff, who had been developing soy-based chicken since the 1980s. By 2013, Beyond Meat was selling plant-based chicken strips nationwide at Whole Foods. (The company discontinued chicken earlier this year but says it’s working on a better recipe.)

For investors, the stock is not without risk. Amid its annual losses, Beyond Meat must also continue to spend heavily on research and development. The El Segundo, California-based company employs 63 scientists, engineers, researchers, technicians and chefs at its 30,000-square-foot lab. It also has manufacturing facilities in Columbia, Missouri.

Renaissance Capital, which has researched the company, says investors will likely tolerate the losses because the business is growing so quickly. Beyond Meat’s net revenue was $87.9 million last year, 170% higher than 2017.

In documents filed with the U.S. Securities and Exchange Commission, Beyond Meat says it will invest $40 million to $50 million in current and new manufacturing facilities and spend $50 million to $60 million on product development and sales. The rest will be used to pay down debt and fund operations.