Month: June 2019

Boris Johnson to EU: I Won’t Pay Unless Deal Improved

Former Foreign Secretary Boris Johnson is stepping up his campaign to be Britain’s next prime minister by challenging the European Union over Brexit terms.

Johnson told the Sunday Times he would refuse to pay the agreed-upon 39 billion-pound ($50 billion) divorce settlement unless the EU offers Britain a better withdrawal agreement than the one currently on the table.

 

The contest for leadership of the Conservative Party officially begins Monday. The post was vacated Friday by Prime Minister Theresa May, who will serve as a caretaker until a new leader is chosen and moves into 10 Downing Street.

 

The party expects to name its new leader in late July.

 

Johnson, the early frontrunner in a crowded field, told the newspaper he is the only contender who can triumph over the Labour Party led by Jeremy Corbyn and Nigel Farage’s Brexit Party.

 

Johnson is a hard-line Brexit advocate who vows to take Britain out of the EU on the Oct. 31 deadline even if there is no deal in place.

 

He and other contenders say they can get better terms from EU leaders in Brussels than the deal that May agreed to but was unable to push through Parliament. Those failures led to her decision to resign before achieving her goal of delivering Brexit.

 

But EU officials have said they are not willing to change the terms of the deal May agreed to.

 

One of Johnson’s main rivals for the post, Environment Secretary Michael Gove, continued to be sidetracked Sunday by questions about his acknowledged cocaine use when he was a youthful journalist.

 

He told BBC Sunday that he was “fortunate” not to have gone to prison following his admission of cocaine use. He said he was “very, very aware” of the damage drugs can cause.

 

Nominations for the leadership post close Monday afternoon.

 

 

Trade Experts Unruffled About Rare Earth Minerals Supply

Rising trade tensions between the U.S. and China have sparked worries about the 17 exotic-sounding rare earth minerals needed for high-tech products like robotics, drones and electric cars. 

 

China recently raised tariffs to 25% on rare earth exports to the U.S. and has threatened to halt exports altogether after the Trump administration raised tariffs on Chinese products and blacklisted telecommunications giant Huawei.  

  

With names like europium, scandium and ytterbium, the bulk of rare earth minerals are extracted from mines in China, where lower wages and lax environmental standards make production cheaper and easier.  

  

But trade experts say no one should panic over China’s threats to stop exporting the elements to the U.S. 

 

There is a U.S. rare minerals mine in California. And Australia, Myanmar, Russia and India are also top producers of the somewhat obscure minerals. Vietnam and Brazil both have huge rare earth reserves.  

  

The sky is not falling,'' said Mary B. Teagarden, a China specialist, professor and associate dean at the Thunderbird School of Global Management in Phoenix.There are alternatives.” 

 

Simon Lester, associate director of the center for trade policy studies at the Cato Institute think tank in Washington, agreed. “Over the short term, it could be a big disruption, but companies that want to stay in business will find a way,” he said.    

Although the U.S. is among the world’s top 10 countries for rare earths production, it’s also a major importer of the minerals, looking to China for 80% of what it buys from other countries, according to the U.S. Geological Survey. China last year produced 120,000 metric tons of rare earths, while the United States produced 15,000 metric tons.  

Mountain Pass Mine

 

The United States also depends on China to separate the minerals pulled from Mountain Pass Mine, the sole rare earths mine in the U.S., which was bought two years ago by the Chicago-based JHL Capital Group LLC .  

  

“We need to develop a U.S.-based supply chain so there is no possibility we can be threatened,” said Ryan S. Corbett, managing director of JHL Capital. 

 

The mine’s top products are neodymium and praseodymium, two elements that are used together to make the lightweight magnets that help power electric cars and wind turbines and are found in electronics such as laptop hard drives. 

 

Mountain Pass, located in San Bernardino County, Calif., was once the top supplier of the world’s rare earth minerals, but China began taking over the market in the 1990s and the U.S. mine stopped production in 2002.  

  

Mountain Pass later restarted production, only to close again amid a 2015 bankruptcy. Corbett said extraction resumed last year after JHL Capital purchased the site with QVT Financial LP of New York, which holds 30%, and Shenghe Resources Holding Co. Ltd. of China, a nonvoting shareholder with 9.9%.  

  

Since then, Mountain Pass has focused on achieving greater autonomy with a $1.7 billion separation system set to go online late next year that would allow it to skip sending rare earths ore to China for that step. 

 

China could hurt itself in the long run by cutting off the U.S., specialists said.  

  

David Merriman, a rare earths analyst for Roskill commodity research in London, said that during a similar trade flap with China in 2011, Japan began looking to other countries, including Australia, for the minerals needed to manufacture electronics.   

Australian rare earths production giant Lynas Corp. Ltd. this month announced a proposed deal with Blue Line Corp. of Texas for a separation facility at an industrial site in Hondo, Texas.  

Other deposits

  

There may be other options, too. Deposits of rare earths have been detected in other U.S. states, including Wyoming and Alaska, as well in several remote areas of Canada. The Interior Department is calling for more prospecting and mining of “critical minerals,” including on public lands currently considered off-limits, and even in oceans. 

 

We have to be more forward-thinking,'' said Alexander Gysi, an assistant professor in geology and geological engineering at the Colorado School of Mines in Golden.It would be better for the U.S. to have a greater range of sources for rare earths.”

Smithsonian Museum Wows With Fossils Going Back Billions of Years

It was a bad day 70 million years ago for a triceratops dinosaur, whose remains are displayed beneath a fossilized Tyrannosaurus Rex skeleton — posed as if it were still alive and ready for dinner.  

Huge dinosaurs and other ancient creatures like an elephant-sized ground sloth are part of a remarkable new fossils exhibition that opened June 8 at the Smithsonian National Museum of Natural History in Washington.

Instead of the typical static poses usually seen in museums, the new exhibition has positioned the animals so they look more real and animated — like a Dire Wolf that appears to be chasing prey.

“Did you know that all birds descended from dinosaurs?” said Matthew Carrano, the Curator of Dinosaurs.

”We now know dinosaurs were fast growing, and very lively animals,” Carrano said. “Many of the dinosaurs you see here didn’t necessarily live together.  Each species lasted a million years ago or so and then another species would appear.  So many different dinosaur ecosystems in the world, just like there’s many different ecosystems in the world today.”

Located in the large, newly restored fossil hall, the exhibition called Deep Time is all about ancient life on earth, and how its climate, ecosystems and geology evolved over 3.7 billion years.  It contains over 700 fossils, including plants, insects, reptiles, and mollusks going back billions of years.  

A fossilized palm tree unearthed in the Arctic shows that area used to be tropical. A tiny ancestor of today’s horses lived 52 million years ago. There’s even some fossilized dinosaur feces.

While wandering through the variety of ecosystems, modern interactive exhibits allow visitors to learn more about the earth’s past, and a glass-walled lab where they can see fossils being prepared for scientific study.

But among these remains is an underlying message about the future and the importance of protecting the Earth.

“We explain and let you explore for yourself what the meaning is in something that might have happened 55 million years ago to tell us a lot about the impact we are having now, because it’s not just a past story it’s also our story right now,” explained Sioban Starrs, the exhibition project manager.  

The objects on display illustrate how much the Earth has changed, affected by shifts in the climate. Scientists say 66 million years ago, the impact of a huge asteroid transformed the environment so much the dinosaurs and most other forms of life couldn’t survive. But today the exhibition points out, humans are the culprit that are causing devastating environmental problems.

“It’s a scientific fact and there’s evidence showing that we are having an impact on this planet that’s unprecedented,” Starrs said. “It’s unprecedented in the scale, and in the rate, and it’s unprecedented that it’s one singular species causing all of these changes.”

“There’s lots of specific things you can do to ameliorate the impacts of climate change,” said Kirk Johnson, the head of the museum. “Decrease climate change and help preserve species and habitats. There’s a lot of things that are happening in the world today that don’t have to be happening.”

Starrs hopes the 5 million people visiting the exhibition each year will think about what they can do to help.

“I would really like to see people getting connected to this story of the impact that we’re having on the planet, and to really wake up and start making smart choices,” she said. “Start looking at the things that people are doing around the world to direct our planet toward a hopeful, positive future.”

Scientists Feel Chill of Crackdown on Fetal Tissue Research

To save babies from brain-damaging birth defects, University of Pittsburgh scientist Carolyn Coyne studies placentas from fetuses that otherwise would be discarded — and she’s worried this kind of research is headed for the chopping block.

The Trump administration is cracking down on fetal tissue research , with new hurdles for government-funded scientists around the country who call the special cells vital for fighting a range of health threats. Already, the administration has shut down one university’s work using fetal tissue to test HIV treatments, and is ending other fetal tissue research at the National Institutes of Health.

“I knew this was something that’s going to trickle down to the rest of us,” said Coyne. She uses the placenta, which people may not think of as fetal tissue but technically is classified as such because the fetus produced it, to study how viruses such as Zika get past that protective barrier early in pregnancy.

“It seems to me what we’re moving toward is a ban,” she added. If so, when it comes to unraveling what happens in pregnancy and fetal development, “we’re going to stay ignorant to a lot of things.”

Different types of tissue left over from elective abortions have been used in scientific research for decades, and the work has been credited with leading to lifesaving vaccines and other advances. Under orders from President Donald Trump, the Health and Human Services Department abruptly announced on Wednesday the new restrictions on taxpayer-funded research, but not privately funded work.

Aside from the cancellation of an HIV-related project at the University of California, San Francisco, university-led projects that are funded by the NIH — estimated to be fewer than 200 — aren’t affected right away.

But as researchers seek to renew their funding or propose new studies, HHS said it will have to pass an extra layer of review, beyond today’s strict scientific scrutiny. Each project will have a federal ethics board appointed to recommend whether NIH should grant the money.

HHS hasn’t offered details but under the law authorizing the review process, that board must include not just biomedical experts but a theologian, and the nation’s health secretary can overrule its advice.

“I predict over time we will see a slow and steady elimination of federal funding for research that uses fetal tissue, regardless of how necessary it is,” said University of Wisconsin law professor Alta Charo, a nationally recognized bioethics expert.

Necessity is the crux of a fierce debate between abortion foes and scientists about whether there are alternatives to fetal tissue for research.

Zika offers a glimpse at the difficulty. Somehow, the Zika virus can sneak from the mother’s bloodstream across the placenta, which protects and nourishes the fetus, and target the fetus’ brain. It’s something researchers hope to learn to block.

Studying the placentas of small animals or even monkeys isn’t a substitute because they differ from the human organ, said Emory University researcher Mehul Suthar. For example, the specific type of placental cell where Zika can lurk in humans isn’t thought to be present in mouse placentas.

And because the placenta continually changes as the fetus that created it grows, first-trimester tissue may show a very different vulnerability than a placenta that’s expelled during full-term birth, when it’s no longer defined as fetal tissue but as medical waste.

Suthar recently submitted a new grant application to study first- and second-trimester placental tissue, and is worried about its fate under the still uncertain ethics provision.

It “sounds a bit murky as to what the impact could be,” he said. It could be small, “or it could be an outright ban on what we’re doing.”

Anti-abortion groups argue there are alternatives, such as stem cells, growing organ-like clumps of cells in lab dishes, or using tissue taken from newborns as they have heart surgery.

Indeed, NIH is funding a $20 million program to research alternatives to fetal tissue and to prove whether they work as well.

“Taxpayer funding ought to go to promote alternatives that are already being used in the production of treatments, vaccines and medicines, and to expand approaches that do not depend on the destruction of unborn children,” said Mallory Quigley of the Susan B. Anthony List, which works to elect anti-abortion candidates to public office.

But dozens of medical and science organizations have told HHS there is no substitute for fetal tissue in studying certain — not all — health disorders, such as HIV, Zika, Alzheimer’s, Parkinson’s, spinal cord injury, and a variety of eye diseases.

To Pittsburgh’s Coyne, part of the political debate is a “completely unsubstantiated belief that not allowing research and science is going to prevent or stop abortions, which is not the case.”

Medical research using fetal tissue won’t stop but will move to other countries, said Charo, who advised the Obama administration. The United Kingdom, Australia, Singapore and China are among the countries using fetal tissue to seek breakthroughs.

“Other countries work with this in a regulated fashion and they will continue to outstrip us,” she said. “We have allowed patients’ interests to become collateral damage in the abortion wars.”

G-20 Finance Leaders’ Goal: Adapt to Turmoil in Trade, Tech

Financial leaders of the Group of 20 gathered Saturday to brainstorm ways to adapt global finance to an age of trade turmoil and digital disruptions.

The central bank governors and other financial regulators meeting in this southern Japanese port city also flagged risks from upsets to the global economy as Beijing and Washington clash over trade and technology.

Asked if other financial leaders attending the meetings in Fukuoka were raising concerns over the impact on global markets and trade from President Donald Trump’s crusade against huge, chronic U.S. trade deficits, especially with China, U.S. Treasury Secretary Steven Mnuchin said no.

Trump and members of his administration contend that the ripple effects of the billions of dollars in tariffs imposed by Washington on Chinese exports over the past year are creating new business opportunities for other businesses in the U.S. and other countries.

But Mnuchin acknowledged that growth has been slowing in Europe, China and other regions.

“I’m hearing concerns if we continue on this path there could be issues. There will be winners and losers,” he said.

The G-20 officials were expected to express their support for adjusting monetary policy, for example by making borrowing cheaper through interest rate cuts, in a communique to be issued as meetings wrap up on Sunday.

Their official agenda on Saturday was focused on longer-term, more technical issues such as improving standards for corporate governance, policing cyber-currencies and reforming tax systems to ensure they are fair for both traditional and new, online-based industries.

Ensuring that governments capture a fair share of profits from the massive growth of businesses like Google and Amazon has grown in importance over the many years the G-20 finance chiefs have been debating the reforms aimed at preventing tax evasion and modernizing policies to match a financial landscape transformed by technology.

One aim is to prevent a “race to the bottom” by countries trying to lure companies by offering unsustainably and unfairly low tax rates as an incentive.

Mnuchin said he disagreed with details of some of the proposals but not with the need for action.

“Everyone, we are now facing a turning point,” Japanese Finance Minister Taro Aso told the group. “This could be the biggest reform of the long established international framework in over 100 years.”

Some European members of the G-20, especially, want to see minimum corporate tax rates for big multinationals. France and Britain have already enacted stop-gap tax systems for digital businesses, but they are not adequate, said French Finance Minister Bruno Le Maire.

“For the time being there is no fair taxation of this new economic model,” Le Maire said, adding that the hope is to have an agreement by the year’s end.

The issue is not confined to the wealthiest nations. Indonesia, a developing country of 260 million with more than 100 million internet users, is also struggling to keep up.

“The growth has been exponential but we cannot capture this growth in our GDP as well as in our tax revenue,” said Indonesian Finance Minister Mulyani Indrawati.

Mobile banking, big data, artificial intelligence and cloud computing are among many technologies that are expanding access to financial services for many people who in the past might not have even used banks.

But such innovations raise questions about protecting privacy and cybersecurity, Aso said.

“We need to stay vigilant against risks or challenges,” Aso said.

Japan, the world’s third-largest economy, is hosting the G-20 for the first time since it was founded in 1999. The venue for the annual financial meeting, Fukuoka, is a thriving regional hub and base for start-ups.

The G-20 groups include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.

With Mexico Deal Done, US Urges China to Resume Trade Talks

One down, still others to go. President Donald Trump claimed a victory after Washington and Mexico agreed on measures to stem the flow of Central American migrants into the United States.

Trump called off plans to impose a 5% tax on Mexican exports, and Treasury Secretary Steven Mnuchin, speaking to reporters Saturday in Fukuoka on the sidelines of a meeting of financial leaders of the Group of 20 major economies, urged China to follow suit and return to stalled negotiations.

Mnuchin said he planned to have a private conversation with the head of China’s central bank, Yi Gang. In a G-20 group meeting later in the day, the two were seen exchanging friendly remarks, but there were no fresh signs Beijing is ready to compromise in the dispute over trade and technology.

“From our perspective of where we are now, it is a result of them backtracking on significant commitments,” Mnuchin said. “I don’t think it’s a breakdown in trust or good or bad faith. … If they want to come back and complete the deal on the terms we were negotiating, that would be great.”

Mnuchin said he had no direct message to give to Yi, who has participated in the 11 rounds of talks so far on resolving the dispute between the world’s two largest economies over technology and trade.

He said there were no plans for trade talks in Washington or Beijing before Presidents Donald Trump and Xi Jinping are due to meet in Osaka for the G-20 summit on June 28-29.

“This will be a one-on-one with Gov. Yi to talk alone about the trade issues,” Mnuchin said. But he added, “I would expect the main progress will be at the G-20 meetings of the presidents.”

The Trump administration began slapping tariffs on imports of Chinese goods nearly a year ago, accusing Beijing of using predatory means to lend Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles. Those tactics, the U.S. contends, include hacking into U.S. companies’ computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms.

The deal with Mexico helps alleviate uncertainty over the deal Washington recently reached on revising the North American Free Trade Agreement. The new U.S.-Mexico-Canada deal has been heading toward a vote in Congress and might have been stymied by new tariffs. But the U.S. is still negotiating new trade deals with Japan after withdrawing from a Pacific Rim arrangement, the Obama-era proposed Trans-Pacific Partnership.

America’s huge trade deficit with China — a record $379 billion last year — is one factor driving Trump’s frustrations with Beijing.

The United States now is imposing 25% taxes on $250 billion in Chinese goods. Beijing has counterpunched by targeting $110 billion worth of American products, focusing on farm goods such as soybeans in a deliberate effort to inflict pain on Trump supporters in the U.S. heartland.

The U.S. side has been preparing to expand retaliatory tariff hikes of 25% on another $300 billion of Chinese products, and Mnuchin indicated it was prepared to take that step if negotiations with Beijing fail. But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

“As the president has said, if we can get the right agreement, that’s great. If we can’t, we will proceed with tariffs,” he said.

 

US, China Talk Trade at G-20 Finance Meeting

U.S. Treasury Secretary Steven Mnuchin said Saturday that he plans to speak privately with China’s central bank governor about trade on the sidelines of annual Group of 20 finance talks in southern Japan, but has no direct message to give him.

Mnuchin and Yi Gang, chairman of the People’s Bank of China, are to hold routine talks on various issues and then break away for their discussion on trade. Yi, he noted, has participated in now-stalled talks between Washington and Beijing over the trade and technology dispute between the two largest economies.

“This will be a one-on-one with Gov. Yi to talk alone about the trade issues,” Mnuchin told reporters in the Japanese city of Fukuoka. But he added, “I would expect the main progress will be at the G-20 meetings of the presidents.”

He said there were no plans for trade talks in Washington or Beijing before Presidents Donald Trump and Xi Jinping are to meet in Osaka for the G-20 summit June 28-29.

​Trump tariffs

The Trump administration began slapping tariffs on imports of Chinese goods nearly a year ago, accusing Beijing of using predatory means to lend Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles. Those tactics, the U.S. contends, include hacking into U.S. companies’ computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms.

Trump has also complained repeatedly about America’s huge trade deficit with China, a record $379 billion last year.

The United States now is imposing 25% taxes on $250 billion in Chinese goods. Beijing has counterpunched by targeting $110 billion worth of American products, focusing on farm goods such as soybeans in a deliberate effort to inflict pain on Trump supporters in the U.S. heartland.

The U.S. side has been preparing to expand retaliatory tariff hikes of 25% on another $300 billion of Chinese products, and Mnuchin indicated it was prepared to take that step if negotiations with Beijing fail. But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

​‘Hearing concerns’

Asked if other financial leaders attending the meetings in Fukuoka were raising the issue, Mnuchin said no. But he acknowledged the slowdown in Europe, China and other regions.

“I’m hearing concerns if we continue on this path there could be issues. There will be winners and losers,” he said.

Mnuchin and other officials in the Trump administration assert that the winners from the tariffs standoff, including the United States, will benefit from investments by companies moving their operations out of China to avoid the tariffs.

Countries were welcoming news that after a flurry of negotiations, Trump said he would refrain from imposing 5% tariffs on products from Mexico after it “agreed to take strong measures” to stem the flow of Central American migrants into the United States.

The tariffs that had been scheduled for Monday were “indefinitely suspended” after the two sides signed an agreement, he said in a tweet.

“It’s a good thing,” Japan’s central bank governor, Haruhiko Kuroda, told reporters.

On the agenda: taxes and crime

The agenda for the G-20 talks in Fukuoka on Saturday were mainly concerned with reforms of tax policies, combatting money laundering and cybercrimes, and innovations in financial technologies.

Japan is hosting the G-20 for the first time since it was founded in 1999.

FedEx Ends Amazon’s FedEx Express Plane Service

FedEx Corp. Friday decided not to renew its contract with Amazon.com Inc. for U.S. cargo delivery through FedEx Express, the unit that delivers packages on planes, a move that reflects the broader trend of the e-commerce company moving services in-house.

Amazon has been building out its own delivery network of planes, trucks and vans, a development that is seen posing a potential long-term challenge to FedEx and delivery rival United Parcel Service Inc., both of which count Amazon as a customer.

FedEx described the decision as a strategic move that would allow it to focus on the broader e-commerce market, a group that would include rivals of Amazon scaling up one- and two-day delivery. FedEx forecast that the market would double to 100 million packages per day in the United States by 2026.

“Amazon had a better rate with UPS, so it made no sense for them to use FedEx,” said Dean Maciuba, director of consulting services at Logistics Trends and Insights.

Other FedEx contracts unaffected

The decision does not impact any existing contracts between Amazon and other FedEx business units or relating to international services, the package delivery company said.

Amazon accounted for less than 1.3% of FedEx’s revenue last year, the company said in its statement.

Analysts said that the ending of FedEx Express’ contract with Amazon is likely to benefit UPS, which gets a relatively larger share of revenue from the online retailer.

“We would expect UPS to report much stronger volume growth in next-day air products over the next several quarters,” Bernstein analyst David Vernon wrote in a client note.

UPS volumes have been boosted by Amazon’s move to one-day shipping for its paid Prime service, and “this news means more growth in lower priced, lower weight, lower service level … domestic express products at UPS,” Vernon said.

Amazon building its fleet

In recent years, Amazon has steadily expanded its fleet of delivery aircraft, which Air Transport Services Group Inc. and Atlas Air Worldwide Holdings have operated.

The company is investing $1.5 billion to build an air cargo hub in northern Kentucky, setting it up to rely less on others for air shipping.

Amazon has 40 leased cargo planes and has signed an agreement to bring 10 more planes into the fleet in the next two years.

“We respect FedEx’s decision and thank them for their role serving Amazon customers over the years,” Amazon said in an emailed statement.

Shares of FedEx, which rose as much as 1.65% earlier in the session, pared gains and closed up 0.75% at $158.02. Amazon shares ended the day 2.8% higher at $1,804.03.

UPS shares closed up 0.2% at $98.23 after rising as much as 1% earlier in the session.

Trump Announces Deal With Mexico Averting Tariffs

Cindy Saine at the State Department contributed to this report. 

 

U.S. President Donald Trump said late Friday that the United States and Mexico had reached a deal on migration to avert tariffs.

“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended,” he tweeted.

“Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States,” Trump said.

Earlier Friday, Trump had tweeted that there was a “good chance” the two sides would reach a deal to avert tariffs over the surge of migrants across the U.S. border. However, he added, “If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!”  

U.S. and Mexican officials returned to the negotiating table Friday for a third day of talks to find a way to stem the migrant flow.

Effect on hiring?

Trump’s trade wars with Mexico and other countries appeared to have spooked American companies into putting the brakes on hiring. They added just 75,000 jobs in May, far fewer than the 180,000 economists expected, the Labor Department reported Friday.  

 

Although the jobless rate held steady at a 50-year low of 3.6%, Friday’s figures were the latest signal that the U.S. economy, while healthy, is weakening. Manufacturers, which are particularly sensitive to trade disputes, added only 3,000 jobs, extending an anemic streak of hiring in the sector.

U.S. and Mexican officials discussed a deal calling for Mexico to sharply increase patrols of its border with Guatemala to curb migration, The Washington Post reported, with the deployment of 6,000 National Guard troops. The newspaper said Mexico and the U.S. could overhaul asylum rules throughout the region, requiring Central Americans to first seek refuge in Mexico rather than traveling through it to reach the U.S. 

 

With such a plan in place, the United States could send Guatemala asylum seekers to Mexico, and those from Honduras and El Salvador to Guatemala.  

Earlier Friday in Mexico City, President Andres Manuel Lopez Obrador reiterated his own optimistic position. 

Causes of ‘chaos’

 

“There is dialogue and an agreement can be reached,” Lopez Obrador said. “I’m optimistic we can achieve that.” He added it was a mistake, though, for the U.S. to link migration with trade, saying again that migration must be addressed by solving social and economic problems in Central America.

“The causes of the migratory chaos aren’t being analyzed, only the effects,” he said.  

U.S. authorities have said more than 100,000 undocumented migrants, mostly from the three Central American countries, have crossed into the United States in recent months. The U.S. government announced Wednesday that in May, 144,000 migrants were detained at the border, up 32% from April. It was the highest monthly figure in 13 years. 

 

Some Republican lawmakers, normally close political allies of Trump, had said they would try to block any potential tariffs with legislation, which would have drawn wide support from opposition Democrats. Numerous lawmakers feared rising consumer costs for Americans if the tariffs were imposed on Mexican goods, including cars and numerous food products exported to the U.S.

Trump Criticizes NASA Moon Mission After Promoting It Earlier 

U.S. President Donald Trump on Friday criticized NASA for aiming to put astronauts back on the moon by 2024 and urged the space agency to focus instead on “much bigger” initiatives like going to Mars, undercutting his previous support for the lunar initiative. 

“For all of the money we are spending, NASA should NOT be talking about going to the Moon – We did that 50 years ago,” the president wrote on Twitter. “They should be focused on the much bigger things we are doing, including Mars (of which the Moon is a part), Defense and Science!” 

Trump’s statement, tweeted from Air Force One as he returned from Europe, appeared at odds with his administration’s recent push to return humans to the lunar surface by 2024 “by any means necessary,” five years sooner than the previous goal of 2028. 

Space outpost

NASA plans to build a space outpost in lunar orbit that can relay astronauts to the lunar surface by 2024, part of a broader initiative to use the moon as a staging ground for eventual missions to Mars. 

NASA Administrator Jim Bridenstine said Trump was only reaffirming NASA’s space plan. 

“As @POTUS said, @NASA is using the Moon to send humans to Mars!” he said on Friday in a tweet referring to the president of the United States. 

The accelerated timetable to land humans on the moon by 2024 ran into early trouble when the Trump administration asked a skeptical Congress in May to increase NASA’s 2020 budget proposal by $1.6 billion as a “down payment” to accommodate the accelerated goal. 

The accelerated timetable for going to the moon was a key recommendation in March of the new National Space Council led by Vice President Mike Pence. 

‘Sustainable human presence’

NASA’s website on Friday said the Artemis program would send “the first woman and the next man to the Moon by 2024 and develop a sustainable human presence on the Moon by 2028.” The program takes its name from the twin sister of Apollo and the goddess of the moon in Greek mythology. 

NASA’s Apollo program landed the first men on the moon 50 years ago on July 20. 

The NASA website also provided details on the space agency’s plans for making the moon a jumping-off point for future missions to Mars and a place to test equipment and technology for other forays out into the solar system. 

Private companies are also joining the race to the moon. Billionaire entrepreneur Jeff Bezos last month unveiled a mock-up of a lunar lander being built by his Blue Origin rocket company and touted his moon goals as part of a strategy aimed at capitalizing on the Trump administration’s push to establish a lunar outpost in just five years. 

Research: Russian Disinformation on YouTube Draws Ads, Lacks Warnings

Fourteen Russia-backed YouTube channels spreading disinformation have been generating billions of views and millions of dollars in advertising revenue, according to researchers, and had not been labeled as state-sponsored, contrary to the world’s most popular streaming service’s policy.

The channels, including news outlets NTV and Russia-24, carried false reports ranging from a U.S. politician covering up a human organ harvesting ring to the economic collapse of Scandinavian countries. Despite such content, viewers have flocked to the channels and U.S. and European companies have bought ads that run alongside them.

The previously unpublished research by Omelas, a Washington-based firm that tracks online extremism for defense contractors, provides the most comprehensive view yet of the Russian government’s success in attracting viewers and generating revenue from propaganda on YouTube, which has 2 billion monthly viewers worldwide.

YouTube, owned by Alphabet Inc’s Google, introduced a policy in February of 2018 to identify channels predominantly carrying news items and are wholly or partly funded by national governments, in order to help users make informed viewing decisions.

YouTube said on Wednesday that following inquiries from Reuters it added the state-funding disclaimer to 13 additional Russian channels, including eight of the channels spreading disinformation.

Twelve other Russia-sponsored channels identified by Omelas with misleading or inaccurate news reports already had the state-funding label.

Collectively, the 26 channels drew 9 billion views from January 2017 through December 2018, Omelas found. Another 24 Russian channels with no apparent ties to disinformation attracted an additional 4 billion views, Omelas said.

Omelas estimated those 13 billion total views could have generated up to $58 million from ads, including some from Western advertisers. It estimated that Russia could have received $7 million to $32 million under YouTube’s standard revenue-sharing program, while YouTube itself would have pocketed from $6 million to $26 million.

An accurate analysis is difficult because YouTube shares limited audience and sales data. YouTube declined comment on the channels’ revenue. Calls and emails to the Russian government and the country’s embassies in the United States and Britain were not returned.

It is not uncommon for state broadcasters around the world to put videos on YouTube. Russia’s channels, though, have faced more scrutiny since the United States concluded that Russian operatives attempted to disrupt the 2016 presidential election by posting fake news to social media from fabricated personas and news organizations. Russia has denied any wrongdoing.

“YouTube continues to enable the monetization of state propaganda, fringe conspiracies and intentional outrage,” said Ryan Fox, chief operating officer of cybersecurity firm New Knowledge.

Money-maker for Google

YouTube said it welcomes governments in its revenue-sharing program and does not bar disinformation.

“We don’t treat state-funded media channels differently than other channels when it comes to monetization, as long as they comply with all of our other policies,” YouTube spokeswoman Alex Krasov told Reuters. “And we give users context for news-related content, including by labeling government-funded news sources.” 

The Russian-sponsored YouTube channels come from government ministries and state media networks, some dating back 13 years, according to Omelas, which based its research on a public database from the European Union of online disinformation sources.

The channels listed by Omelas, of which NTV was the most viewed, contain nearly 770,000 videos, including singing competitions, talk shows and news clips, some more clearly biased or inaccurate than others. A few of the channels are in English, French or other languages but most are in Russian. YouTube mostly generates its revenue from selling ads placed adjacent to, before or during videos on its service.

Some Western advertisers, which were unaware their ads were appearing on Russian channels, told Reuters they were concerned about being associated with questionable content.

Grammarly, an online grammar-checking service whose ads appeared on Russian channels with deliberately misleading news, told Reuters it would never knowingly associate with misinformation.

“We have stringent exclusion filters in place with YouTube that we believed would exclude such channels, and we’ve asked YouTube to ensure this does not happen again,” spokesperson Senka Hadzimuratovic said in a statement.

Other ads reaching viewers on Russian-funded conspiracy videos came from insurer Liberty Mutual, the European Central Bank and software firms Adobe Inc, Yandex NV and Wix.com Ltd, according to research by Omelas and Reuters.

The ECB, Adobe and Yandex declined to comment. Liberty Mutual and Wix did not respond to requests for comment. John Montgomery, a global executive vice president at ad buying company GroupM, said advertisers can set filters to automatically avoid supporting some objectionable channels but they are imperfect.

“Disinformation is probably the biggest challenge we’ve got on the internet today,” he said.

Facebook Stops Huawei From Pre-Installing Its Apps on Phones

Facebook has stopped letting its apps come pre-installed on smartphones sold by Huawei in order to comply with U.S. restrictions, dealing a fresh blow to the Chinese tech giant.

The social network said Friday that it has suspended providing software for Huawei to put on its devices while it reviews recently introduced U.S. sanctions.

Owners of existing Huawei smartphones that already have Facebook apps can continue using them and downloading updates.

It’s not clear if buyers of new Huawei devices will be able to install Facebook’s apps on their own.

Facebook’s move is the latest fallout in the escalating U.S.-China tech feud.

The Commerce Department last month effectively barred U.S. companies from selling their technology to Huawei and other Chinese firms without government approval.

US Jobs Growth Slows Sharply

U.S. job growth slowed sharply in May and wages rose less than expected, suggesting the loss of momentum in economic activity was spreading to the labor market, which could increase calls for the Federal Reserve to cut interest rates this year.

The cool-off in hiring reported by the Labor Department on Friday was even before a recent escalation in trade tensions between the United States and two of its major trading partners, China and Mexico. Economists have warned that the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.

The economy thus far has been largely resilient to the trade war with China. President Donald Trump in early May slapped additional tariffs of up to 25% on $200 billion of Chinese goods, which prompted retaliation by Beijing.

Last week, Trump said he would impose a tariff on all goods from Mexico in a bid to stem the tide of migrants across the U.S.-Mexican border. Talks are ongoing to prevent the duties from kicking in at 5% on June 10.

Nonfarm payrolls increased by 75,000 jobs last month, the government said in its closely watched employment report, falling below the roughly 100,000 needed per month to keep up with growth in the working-age population.

The economy created 75,000 fewer jobs in March and April than previously reported. Economists polled by Reuters had forecast payrolls rising by 185,000 jobs last month.

May’s disappointing job growth was flagged by a report on Wednesday from payrolls processing firm ADP showing the smallest gain in private payrolls in nine years last month. Another report this week showed a drop in online ads by businesses looking for help.

Last month’s slowdown in job gains, however, probably understates the health of the labor market as measures such as weekly applications for unemployment benefits and the Institute for Supply Management’s services employment gauge have suggested underlying strength.

Monthly wage growth remained moderate in May, with average hourly earnings increasing six cents, or 0.2% following a similar gain in April. That lowered the annual increase in wages to 3.1% from 3.2% in April. The average workweek was unchanged at 34.4 hours last month.

The moderation in wage gains, if sustained could cast doubts on the Fed’s optimism that inflation would return to the U.S. central bank’s 2% target. Financial markets are pricing in two rate cuts this year.

The tepid employment report added to soft data on consumer spending, business investment, manufacturing and homes sales in suggesting the economy was losing momentum in the second quarter following a temporary boost from exports, inventory accumulation and defense spending. Growth is cooling as the massive stimulus from last year’s tax cuts and spending increases fades.

The Atlanta Fed is forecasting gross domestic product rising at a 1.5% annualized rate in the second quarter. The economy grew at a 3.1% pace in the first quarter.

The unemployment rate remained near a 50-year low of 3.6% in May. The jobless rate was partly pushed down by workers dropping out of the labor force over the last four months.

Employment gains in May slowed across all sectors. Manufacturing payrolls increased by 3,000 last month.

Manufacturing employment will be watched closely for signs of the impact of the tariffs on the economy. Factory output has been weak and sentiment dropped to a 31-month low in May, with manufacturers worried mostly about the trade tensions. Employers in the construction sector hired 4,000 workers in May. Government payrolls fell by 15,000 jobs.

 

How Communities Can Survive Floods, Major Storms, Wildfires 

The 2019 Atlantic hurricane season is officially underway, yet many people haven’t recovered from some of last year’s storms. Meantime, tornados have torn up swaths of several U.S. states in the past few weeks, and floodwaters have wreaked even more damage.

Across the U.S. and elsewhere, tornados, flooding and fires have destroyed homes, sometimes entire communities. Victim after victim describes the trauma.

Preston Black in Oklahoma says a tornado threw his trailer home several meters into the air. His parents, wife and children were all inside. Then, he saw his wife in the debris.

 “To see her like that. … It was awful,” he said. “The worst thing I could ever see.”

She survived. But they lost everything they had.

Hurricane Michael

Last October, Hurricane Michael destroyed entire towns in Florida. Some people are still living in tents. Janelle Crosby lives in a trailer home full of health hazards.

“Rats. Critters. It’s disgusting. Mold. This they put up to try to contain the mold. It was pink, it’s now black.”

Natural disasters affect everyone differently. In California, Gwen Oesch found that the immediate impact of loss can’t always be anticipated.

“I didn’t realize how much my home means to me,” she said, with a sigh.

Solace in numbers

When a community is hit by a disaster, it can be less traumatic than an individual disaster like an accident, according to Dr. John Lauriello, a psychiatrist at the University of Missouri Health Care.

“I think there’s a shared understanding of the trauma, which I think can be very, very helpful because people feel like it wasn’t just them. It occurred to their community and, therefore, the community is going to work together, and the rebuilding will happen together.”

In Missouri, universities are housing people whose homes were destroyed by massive flooding and a tornado. Darrell Bonner says he’s grateful for a place to stay.

“It’s a blessing living here. A lot of financial burden has been let loose a little bit. There’s hope. There are people out there willing to help,” he said.

 

WATCH: Natural Disasters Take Psychological Toll on Survivors

Crosby says in her Florida community, people share whatever they have.

“We just all take care of each other. It’s hard, but like I said earlier, if one of us has generator gas, or if we have propane, we all get to cook that night. If not, we get out here and make fires on the grill and cook.”

For children, routine key

Psychiatrist Laine Young-Walker at the University of Missouri Health Care says the sooner parents can get their children back into a normal routine, the better off they will be.

“They thrive in and survive on structure and routine,” Young-Walker said. “So when a natural disaster like this happens and they get displaced, they’re not in their home anymore, their school is closed, they’re not able to go to the school. They don’t have that structure. They don’t have that routine and that consistency. And it can cause a lot of stress for them.”

If schools are destroyed, Young-Walker suggests finding ways to do class work.

Last year, a teacher turned her California home into a classroom when her students’ school was destroyed by fire. Eight-year-old Eleanor Weddig thought it was better than school.

 “I love it. It’s like more comfortable than our classroom, the chairs are cushy, that’s one thing that I like. And anyway it’s a house so it’s, like, more fancy and stuff and she cooks us great lunches. Like every lunch I love,” Eleanor said.

Californian Gwen Oesch credits community support with helping people who had lost their homes during the wildfires.

“It’s almost like a therapy thing, you know?” she said. “We’re all in the same place, and dealing with the same thing. We’re talking about the people who lost their homes and how sad it is. But, you know what? We’re resilient.”

Seaweed Could Help Produce Biodegradable Plastic

Efforts to recycle discarded plastic have not reduced piles of single-use products from landfills, and China will no longer import plastic waste for recycling. The United Nations says more than 8 million tons of plastic enters the ocean every year. Plastics are increasingly killing marine life and birds, threatening ecosystems and harming humans. Researchers are working to develop biodegradable materials to replace the durable plastic. VOA’s Zlatica Hoke reports on one such project in Israel.

WHO: 1 Million STD Cases Diagnosed Every Day

More than 1 million people across the world are diagnosed with sexually transmitted infections (STI) every day, the World Health Organization said.

In a study released Thursday, the U.N. health agency said 1 in every 25 people globally has at least one of four infections: chlamydia, gonorrhea, trichomoniasis and syphilis. Some people have more than one STI, also called sexually transmitted disease.

“These infections indicate people are taking risks with their health, with their sexuality and with their reproductive health,” said Dr. Melanie Taylor, lead author of the report.

The WHO said there were more than 376 million new cases of STIs among men and women aged 15 to 49 in 2016, the latest year for which data is available. The WHO report broke down the infection rates in 2016 to: 127 million new cases of chlamydia, 87 million of gonorrhea, 6 million of syphilis and 156 million of trichomoniasis.

STI’s are transmitted through unprotected vaginal, anal and oral sex. In some cases, the diseases are passed from mother to child during pregnancy. Syphilis can also be transmitted through contact with infected blood.

If left untreated, STIs can cause infertility, stillbirths, ectopic pregnancy and an increased risk of HIV. Syphilis alone causes more than 200,000 newborn deaths and stillbirths each year.

“This is a wake-up call for a concerted effort to ensure everyone, everywhere can access the services they need to prevent and treat these debilitating diseases,” WHO official Dr. Peter Salama said.

NASA: Just Binoculars Needed to See Jupiter’s Largest Moons

Keep an eye on the sky this month as the mighty Jupiter puts on a show. 

NASA says Jupiter will make its closest approach to Earth in June — so close that skywatchers will be able to see it with the naked eye, and even some of its largest moons using simple equipment.

“The solar system’s largest planet is a brilliant jewel to the naked eye, but looks fantastic through binoculars or a small telescope, which will allow you to spot the four largest moons,” the U.S. space agency posted on its website.

Some might also “glimpse a hint of the banded clouds” that surround the planet, NASA said.

The best opportunity will be Monday when Jupiter, Earth and Saturn all fall into a straight line, an annual event called “opposition.” From June 14 to 19, amateur astronomers can see a “beautiful lineup” of the moon, Jupiter and Saturn, which will change each night as the moon orbits Earth.

“While you’re out marveling at this trio, there’s a really neat astronomy observation you can attempt yourself, just by paying attention to the moon’s movement from night to night,” the agency added on its website.

For those who would like an even closer look at the largest planet in our solar system, NASA suggests visiting its website for images sent back by Juno, the spacecraft currently orbiting Jupiter. 

Fiat Chrysler Drops Renault Merger Idea

Italian-U.S. carmaker Fiat Chrysler on Thursday pulled the plug on its proposed merger with Renault, saying negotiations had become “unreasonable” because of  political resistance in Paris.  

 

Fiat Chrysler Automobiles, or FCA, had stunned the markets last week with a proposed “merger of equals” with the French group that would — together with Renault’s Japanese partners, Nissan and Mitsubishi Motors — create an auto giant spanning the globe.  

 

The French government, which controls 15 percent of Renault, gave the deal a conditional green light, with analysts suggesting it wanted more control over the combined group alongside Fiat’s Agnelli family. 

 

FCA said late Wednesday that it “remains firmly convinced of the compelling, transformational rationale” of the tie-up, which it said was “carefully balanced to deliver substantial benefits to all parties.”

 

“However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” it said in a statement.  

 

On Thursday, FCA chief John Elkann stood by the decision to start, and then leave, the merger talks. 

 

“When it becomes clear that the conversations have been brought to the point beyond which it becomes unreasonable to go, it is necessary to be equally brave to interrupt them,” Elkann wrote in a letter to employees published by Italian media.  

Renault expressed its “disappointment” at the turnabout. 

 

“We view the [Fiat] opportunity as timely, having compelling industrial logic and great financial merit, and which would result in a European-based global auto powerhouse,” it said in a statement. 

 

The combined group, including Nissan and Mitsubishi, would have been by far the world’s biggest, with total sales of 15 million vehicles, compared with both Volkswagen and Toyota, which sell around 10.6 million apiece. 

 

Shares in Renault plunged by more than 6 percent on the Paris stock exchange. In Milan, FCA shares also initially slid but then recovered to close up 0.1 percent.

Nissan holds key

Despite the verbal sparring that erupted after FCA’s announcement, industry experts did not rule out talks being resumed.  

 

“The collapse of the proposed Fiat Chrysler/Renault merger leaves both firms exposed to the shifting dynamics of a sector at a crossroads,” Ilana Elbim, credit analyst for Hermes Investment Management, said in a note.  

 

Pointing to falling sales volumes in major auto markets, she said “mega-mergers designed to save on capital expenditures remain inevitable.” 

 

On Tuesday, Renault’s board had said it was studying FCA’s offer “with interest,” but held off final approval pending further deliberations.  

 

By Wednesday, all Renault directors had come around in favor of the merger, with the exception of the employee representative affiliated with the powerful CGT union and two from Nissan who abstained, according to a source close to Renault.   

The two Nissan directors were said to have asked for more time to approve the deal. There was no official comment from Nissan headquarters in Tokyo. 

 

Relations between Renault and Nissan have come under strain since the arrest in November of their joint boss, Carlos Ghosn, who awaits trial in Japan on charges of financial misconduct. 

 

French Finance Minister Bruno Le Maire had laid down conditions for the tie-up with FCA, insisting there be no plant closures and that the Renault-Nissan alliance be preserved.  

 

The Renault source said Le Maire had asked for another board meeting next Tuesday following his return from a trip to Japan, where he was to discuss the proposal with his Japanese counterpart at a meeting of G-20 finance ministers.  

Blame game

A source close to FCA said it was the “sudden and incomprehensible” objections by Le Maire’s ministry that had caused the deal to collapse. 

 

Italian Deputy Prime Minister Luigi Di Maio said: “When politics tries to intervene in economic procedures, they don’t always behave correctly, I don’t want to say any more.”   

But Le Maire stressed that, of his conditions, only the explicit approval of Nissan remained to be secured, while aides denied that the ministry had played politics with the deal. 

 

A source close to the finance ministry said the French government “regrets the hasty decision of FCA.” 

 

“Despite significant progress, a short delay was still necessary so that all conditions set by the state could be met,” it said. 

 

Le Maire indicated the French government was amenable to changes at Renault despite FCA’s U-turn. 

 

“We remain open to the prospect of industrial consolidation, but once again, in calmness, without haste, to guarantee the industrial interests of Renault and the industrial interests of the French nation,” he told the French parliament. 

 

For his part, Elkann said FCA “will continue to be open to opportunities of all kinds that offer the possibility of strengthening and accelerating the realization of this strategy and creating value.” 

Google Cloud Gaming Service to Launch in 14 Countries This Year

Google on Thursday released new details about its video game streaming service Stadia, which will be available in 14 countries starting in November.

For the launch, Google will sell its “founders edition bundle” hardware pack for $129, with a monthly subscription price of $9.99. In Europe, the price will be 129 euros and 9.99 euros per month.

The new gaming platform aims for a Netflix-style subscription that enables players to access games on any device, powered by the internet cloud.

This could disrupt the huge gaming industry by allowing users to avoid consoles and game software on disc or download.

Subscribers will have access to free games and will be able to purchase some blockbuster titles as well.

The first free title will be the shooter game Destiny 2 from game developer Bungie.

Users may also purchase hit titles such as Assassin’s Creed Odyssey and Ghost Recon Breakpoint.

Stadia will launch in the United States, Britain, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Spain and Sweden.

Announcing the game platform earlier this year, Google chief executive Sundar Pichai said the initiative is “to build a game platform for everyone.”

Google’s hope is that Stadia could become for games what Netflix or Spotify are to television or music, by making console-quality play widely available.

Yet it remains unclear how much Google can grab of the nascent, but potentially massive, industry.

As it produces its own games, Google will also be courting other studios to move to its cloud-based model.