YCLOAK

The largest lease sale in American history in the offshore Gulf of Mexico yielded $124.76 million in winning bids Wednesday, a modest response to the Trump administration’s effort to pump up investment in the region.

The Interior Department had offered up more than 77 million acres (31.2 million hectares), an area twice the size of Florida, as part of a broader effort by President Donald Trump’s administration to ramp up U.S. fossil fuels output.

Companies bid on just 1 percent of that acreage, and won those tracts with bids averaging $153 an acre — 35 percent below average winning bids at a similar auction last year, and a fraction of the level paid in the region in 2013 when oil prices were much higher, according to a Reuters review of the data.

The Interior Department’s Bureau of Ocean Energy Management, which administered the auction, characterized the results as robust.

“I think we’re seeing continued consistent investment in the Gulf of Mexico,” BOEM spokesman Mike Celata said in a conference call with reporters.

He said 33 companies, including majors Royal Dutch Shell Plc and Total SA, had placed 159 bids on 148 blocks.

But critics of the administration have called the unusually large lease sale ill-timed. U.S. crude oil and natural gas output is already smashing records thanks to improved drilling technology that has opened up cheaper onshore reservoirs, and Brazil and Mexico are competing for drilling investment in their own deep-water acreage.

“Offering a nearly unrestricted supply in a low demand market with a cut-rate royalty and almost no competition is bad policy and an inexcusable waste of taxpayer resources,” the Center for American Progress, a left-leaning policy think tank, said in a statement.

The United States produces about 1.5 million barrels of oil per day from the Gulf of Mexico, about 15 percent of the national total, according to the Energy Information Administration.

The U.S. government offers Gulf of Mexico leases annually, but usually in smaller regional batches. An auction in March 2017, for example, offered up 48 million acres in the Central Gulf of Mexico planning region.
…

Peter G. Peterson, a billionaire and business executive who became one of the most prominent voices to argue for entitlement reform and reducing the U.S. national debt, died of natural causes early Tuesday, his family said. He was 91.

Born in the small town of Kearney, Nebraska, to Greek immigrants, Peterson was CEO of two major U.S. companies and co-founded one of the world’s largest private-equity firms.

He was a national figure in business by the early 1960s, serving as chairman and CEO of Bell and Howell, one of the largest manufacturers of movie cameras at the time.

 

He left Bell and Howell to work for the Nixon administration in the early 1970s, eventually serving as secretary of commerce from 1972 to 1973.

Lehman Brothers 

He took over as chief executive of the investment bank Lehman Brothers in 1973 after leaving the Nixon administration. In 1985, he co-founded the private-equity firm Blackstone Group with Stephen Schwarzman.

“His intelligence, wit and vision made him an inspirational leader who brought people together from the White House to Wall Street,” his family said in a statement.

Blackstone went on to become one of biggest private-equity firms in the world, with $434 billion in assets under management at the end of last year. When the firm went public in 2007, Peterson’s stake in the company made him a billionaire. His wealth was estimated at $2 billion, according to Forbes Magazine.

Fiscal challenges

Peterson dedicated the rest of his life to what he called “key fiscal challenges threatening America’s future,” donating $1 billion to create the Peter G. Peterson Foundation in 2007.

He never publicly endorsed the fiscal ideals of the Tea Party. However, his ideas did give him some common ground with them.

 

He long argued that the United States’ entitlement programs, principally Medicaid, Medicare and Social Security, had to be restructured or benefits cut back to avoid bankrupting the government. Through his foundation, he disseminated his ideas among the public and politicians.

“The fact he was able to start a serious debate about the future of Social Security and other entitlement programs was a huge accomplishment,” said Fred Bergsten, founder of the Peterson Institute for International Economics, who worked with Peterson in various capacities going back to the 1970s.

Raising taxes

Peterson was not considered ideological when it came to dealing with Social Security and Medicare. A life-long Republican, he still believed that raising taxes should be considered as part of any major restructuring of the U.S. budget, Bergsten said.

The foundation quickly became a major voice on all budget-related matters, repeatedly quoted in national media outlets. In 2008, his organization helped bankroll the documentary “I.O.U.S.A,” with the goal of making the federal government’s ballooning national debt, then around $10 trillion, a central campaign issue.

 

“What is most significant is most of our challenges are not really being discussed,” Peterson told The Associated Press in 2008 when he created his foundation. “I’ve been a very lucky beneficiary of the American dream as the son of immigrants. And, the more I look at some of these problems, the more persuaded I am they will pose a serious threat to this country.”

Peterson is survived by his wife, Joan Ganz Cooney, who co-founded the Children’s Television Workshop, and children John Peterson, Jim Peterson, David Peterson, Holly Peterson and Michael Peterson, and nine grandchildren.
…

Women are often short-changed compared to men when communities are compensated or resettled during commercial land deals in Africa, and governments should take action to rectify that, researchers said Tuesday.

The World Resources Institute’s (WRI) research showed men had received up to six times as much for their land. And although women usually had smaller land parcels, they also lost access to resources such as rivers, forests and social networks.

Among other measures, the U.S.-based WRI said governments should enact laws ensuring women receive an equitable share of compensation payments made to households.

“There is usually a power asymmetry between the community and the investor. These deals are presented to the community as almost-done deals with women getting the short-end,” said WRI associate researcher Celine Salcedo-La Vina.

“Most of the time the expected benefits are not legally binding,” she told Reuters by Skype.

WRI focused on Tanzania and Mozambique, which are among the places where major commercial deals in agribusiness, tourism and mining have displaced thousands over the last decade, she said.

Land in Africa is often communally held, with fathers assumed to be the rightful owners who usually pass it on to their sons. That makes it hard for women to own land except through their husbands or by buying it, the World Bank has said.

Women are usually not compensated for lost farms because they are not deemed to own the fields they cultivate, and often grow subsistence crops. Men, on the other hand, typically plant cash crops whose value is easy to determine, WRI said.

Changing land laws

Some African governments, including Tanzania and Mozambique, have enacted new laws to address how investors engage communities during land deals to reduce inequality, WRI said.

But these changes have done little to address how women are compensated or resettled during commercial deals, because most of the laws use “gender-neutral language.”

“When applied in patriarchal contexts [these laws] result in women’s marginalization,” the report said.

Tanzania and Mozambique are working to change their land laws to bring in more rights for women during commercial land deals. However, those would first have to tackle the cultural norms of how women come to own land, Salcedo-La Vina said.

“We have seen where we have men and women working together during land deals, it usually strengthens community rights,” she said.

WRI also recommended that women’s land uses and contributions as heads of households be taken into account, that land titles be in both spouses’ names, and that intangible assets be included when determining compensation.
…

When Commerce Secretary Wilbur Ross held up a can of Campbell’s soup in a CNBC interview to make the case that the Trump administration’s steel and aluminum tariffs were “no big deal,” the canning industry begged to disagree — and they were hardly alone.

President Donald Trump’s strong-armed trade policies have set off an intense scramble among industry groups, companies and foreign countries seeking exemptions from tariffs of 25 percent on steel imports and 10 percent on imported aluminum. The push comes ahead of a round of new penalties expected to be slapped on China by week’s end.

The Can Manufacturers Institute, which represents 22,000 workers at manufacturers across the nation, estimates the steel and aluminum tariffs will harm their industry and consumers alike. The institute says there are 119 billion cans made in the U.S., meaning a 1 cent tariff would lead to a $1.1 billion tax on consumers and businesses.

“Secretary Ross has made cans a poster child to dispel concerns about the costs of tariffs,” said Robert Budway, the institute’s president. He said his organization was concerned Ross “is already predisposed to deny our petitions.”

Trump’s one-two punch on trade has set in motion a deluge of requests to the Commerce Department for exclusions for certain steel and aluminum products. Foreign countries, meanwhile, complain the U.S. trade representative’s office has not provided specific guidance on gaining exemptions before the steel and aluminum tariffs are implemented on Friday.

Countries in the dark

“Typically, the countries are determined before tariffs are announced,” said Josh Zive, senior principal at the law firm Bracewell LLP. This time, countries don’t know whether they will end up being targeted or exempted — “that’s weird and no one knows what to make of it.”

The Trump administration, which has said steel and aluminum imports threaten U.S. national security, has already given Mexico and Canada a reprieve — provided they agree to a revamp of the North American Free Trade Agreement. The European Union, South Korea, Australia and Brazil are among the groups and countries seeking the exemptions.

Senator Ron Wyden of Oregon, the ranking Democrat on the Senate Finance Committee, said tariffs are “sometimes necessary tools” to protect national security or fight unfair trade practices. But he said the administration’s approach is producing “chaos, uncertainty and an alienation of our closest allies.”

Emily Davis, a spokeswoman for U.S. Trade Representative Robert Lighthizer, said the U.S “is engaged in discussions with several countries to determine if means other than tariffs can be arranged to address our national security concerns.”

Companies that buy imported steel and aluminum can request tariff relief from the Commerce Department, especially if they rely on types of imported steel and aluminum that aren’t available from domestic U.S. producers.

Expect a deluge: Steel and aluminum producers have 30 days to make their exemption requests. Commerce expects 4,500 requests for relief and 1,500 objections — and it is supposed to reach decisions in 90 days.

Commerce has said it intends to reach decisions on a company-by-company basis, not by making across-the-board exemptions for individual steel and aluminum products. That decision has created anxieties that certain companies could get tariff relief while others would be forced to pay tariffs on the same product — perhaps because in the time between the two requests domestic U.S. production has ramped up to fill shortages.

“The big thing is, it’s arbitrary,” said Mary Lovely of the Peterson Institute for International Economics. “The government is becoming the matchmaker between the purchaser and the supplier.”

“It’s a real question to me whether they understand the magnitude of the requests they are going to get,” Zive said of Commerce. “How they’re going to get through them in 90 days is difficult to understand.”

Industry officials said other aspects of the exemption process will burden companies. Manufacturers are unclear whether companies will qualify for refunds if they end up getting exemptions after they’ve begun paying the tariffs. And since Trump set no timeline for ending the tariffs, the companies will need to reapply for the exemptions annually.

Stocking up

Companies, meanwhile, have been trying to beat the tariffs by stocking up on imports. Steel imports rose 15 percent last year and another 17 percent in January.

The steel and aluminum tariffs may only be the opening salvo.

Administration officials said Trump is expected to announce $60 billion in tariffs on Chinese imports by Friday on a wide array of consumer goods, from apparel to electronics, and even on imported parts for products made in the U.S.

Ross, appearing before a House budget panel on Tuesday, faced questions about the trade moves, with lawmakers warning the tariffs could lead to retaliation from foreign countries and wreak economic havoc for consumers.

“I worry that now we’re engaged in a trade war which is further going to alienate us from our adversaries,” said Representative Rodney Frelinghuysen, a New Jersey Republican who chairs the powerful House Appropriations Committee.

Representative Derek Kilmer, a Washington state Democrat, noted that the decision to exclude aluminum and steel producers on a company-by-company basis — rather than by individual products — could create the possibility that some companies will gain a huge advantage over their competitors if they win exemptions.

Ross vowed that “the process will be open and transparent” and that Commerce was working to “minimize the amount of inconvenience that any of the affected parties will suffer as a result of the process. We’re gearing up to be fast, to be fair and to be practical.”
…

The world’s financial leaders rejected protectionism Tuesday and urged “further dialogue” on trade, but failed to blunt the threat of a trade war days before U.S. metals tariffs take effect and Washington is to announce measures against China.

Finance ministers and central bankers of the world’s 20 biggest economies, which represent 75 percent of world trade and 85 percent of global gross domestic product, discussed trade disruptions as a risk to growth at a two-day meeting.

But after talks described by participants as “polite” and mainly consisting of read-out statements with no debate, the Group of 20 agreed only to stand by an ambiguous declaration on trade from 2017 and “recognize” the need for more “dialogue and actions.”

“We reaffirm the conclusions of our leaders on trade at the Hamburg Summit and recognize the need for further dialogue and actions. We are working to strengthen contribution of trade to our economies,” the G-20 ministers’ final statement said.

But the declaration did little to dispel concern about a global trade war as the U.S. tariffs of 25 percent on imported steel and 10 percent on aluminum take effect Friday.

Tariffs on Chinese products

Two officials briefed on the matter said U.S. President Donald Trump would also unveil tariffs on up to $60 billion in Chinese technology and telecoms products by Friday, a move stemming from Beijing’s intellectual property practices.

The 2017 Hamburg declaration, which the financial leaders referred to on Tuesday, said G-20 countries would “continue to fight protectionism, including all unfair trade practices.”

But it also said G-20 leaders “recognize the role of legitimate trade defense instruments,” an ambiguity that provides the United States with a way to argue its cause on the tariffs.

U.S. Treasury Secretary Steven Mnuchin made clear Washington’s tariff action was such a legitimate defense.

“We need to be prepared to act in the U.S. interest, again, to defend free and fair, reciprocal trade,” he said in a news conference after the talks, adding that there was always a risk that others would reciprocate.

“There’s a risk of a trade war. The president has said we’re not afraid of getting into a trade war, given the size of our market, the size of our economy, and the fact that we have a big trade deficit,” Mnuchin said.

“On the steel and aluminum issue, this is a result of unfair trade practices and that’s why we’ve responded that way.”

Canadian Finance Minister Bill Morneau, comparing this G-20 meeting to the one in Germany last year, when Mnuchin demanded a rewrite of the long=standing communique language on trade, said the rest of the world now has a better sense of the U.S. view on how the rules of trade should be reworked.

“There’s not a consensus. Everyone around the table doesn’t have the same point of view, but there’s a greater understanding of what it is they’re trying to achieve,” Morneau said.

Europe ready to retaliate

The European Union, the biggest U.S. trading partner, wants to be exempt from the metals tariffs like Canada and Mexico, but so far has not had any success in securing an exemption.

As a result, the EU is preparing retaliatory tariffs on U.S. products such as bourbon, jeans and Harley-Davidson motorcycles.

European officials said that a trade war would produce only losers and that the G-20 ministers were united in support of “multilateralism” — G-20 jargon for solving disputes through negotiations in the World Trade Organization.

“We all agreed trade wars are a negative sum game,” Bank of Italy Governor Ignazio Visco told reporters on the sidelines of the meeting. “There hasn’t been any voice against rule-based multilateralism.”

French Finance Minister Bruno Le Maire stressed Europe expected to get exemptions from the U.S. tariffs without any conditions and warned protectionism would hurt world growth.

Jeopardy to recovery

“It is of the utmost importance to avoid any unilateral choice that might jeopardize our growth. Unfair trade conditions [and] protectionism might jeopardize the economic recovery all over the world,” he said.

Mnuchin said he’d had very direct conversations with his counterparts in China and that he looked forward to working with Liu He, China’s newly installed, Harvard-educated vice premier in charge of financial and industrial policy, on getting better access to the Chinese market.

“I think there’s a general view among the G-20 that it is our desire to see China open their markets so that we can participate in their markets the way they participate in ours in a much more … reciprocal … relationship,” Mnuchin said.

The G-20 also called for continued international monitoring of cryptocurrencies such as bitcoin and the risks they posed. It said these assets raised issues with consumer and investor protections, market integrity, money laundering and terrorist financing.
…

President Donald Trump will reap a huge budget increase for the military while Democrats cement wins on infrastructure and other domestic programs that they failed to get under President Barack Obama if lawmakers can agree on a $1.3 trillion governmentwide spending bill before a deadline this week. 

Battles over budget priorities in the huge bill were essentially settled Tuesday, but a scaled-back plan for Trump’s border wall and a fight over a tunnel under the Hudson River still held up a final agreement. 

Republican leaders were hopeful a deal could be announced as early as Tuesday evening, allowing for a House vote Thursday. If a bill doesn’t pass Congress by midnight Friday, the government will shut down for a third time this year. 

The measure on the table would provide major funding increases for the Pentagon — $80 billion over current limits — bringing the military budget to $700 billion and giving GOP defense hawks a long-sought victory. 

“We made a promise to the country that we would rebuild our military. Aging equipment, personnel shortages, training lapses, maintenance lapses — all of this has cost us,” said House Speaker Paul Ryan, a Wisconsin Republican. “With this week’s critical funding bill we will begin to reverse that damage.”

Domestic accounts would get a generous 10 percent increase on average as well, awarding Democrats the sort of spending increases they sought but never secured during the Obama administration.

Opioid problem

Democrats touted billions to fight the nation’s opioid addiction epidemic. More than $2 billion would go to strengthen school safety through grants for training, security measures and treatment for the mentally ill. Medical research at the National Institutes of Health, a long-standing bipartisan priority, would receive a record $3 billion increase to $37 billion.

“We have worked to restore and in many cases increase investments in education, health care, opioids, NIH, child care, college affordability and other domestic and military priorities,” said Senator Patty Murray, a Washington state Democrat who has been a key negotiator of the measure.

Agencies historically unpopular with Republicans, such as the Internal Revenue Service, appear likely to get increases, too, in part to prepare for implementation of Trump’s recently passed tax measure. The Environmental Protection Agency, always a GOP target, may get a reprieve this year.

Lawmakers agreed on the broad outlines of the budget plan last month, after a standoff forced an overnight shutdown. The legislation implementing that deal is viewed as possibly one of few bills moving through Congress this year, making it a target for lawmakers and lobbyists seeking to attach their top priorities. 

But efforts to add on unrelated legislation to tackle politically charged issues, such as immigration and rapidly rising health insurance premiums, appeared to be faltering.

Dreamer measure

An effort to extend protections for so-called Dreamer immigrants brought to the country as children appears to have failed. Democrats seemed likely to yield on $1.6 billion in wall funding as outlined in Trump’s official request for the 2018 budget year, but they were digging in against Trump’s plans to hire hundreds of new Border Patrol and immigration enforcement agents.

A dispute over abortion seemed likely to scuttle a Senate GOP plan to provide billions in federal subsidies to insurers to help curb health insurance premium increases.

Senate Majority Leader Mitch McConnell, a Kentucky Republican, was working on Trump’s behalf against funding for a Hudson River tunnel and rail project that’s important to Senate Minority Leader Chuck Schumer, a New York Democrat, and Republicans from New York and New Jersey.

The bill would implement last month’s budget agreement, adding $143 billion over limits set under a 2011 budget and debt pact that forced automatic budget cuts on annual agency appropriations. Coupled with last year’s tax cuts, it heralds the return of trillion-dollar budget deficits as soon as the budget year starting in October.

Republican conservatives are dismayed by the free-spending measure, meaning Democratic votes are required to pass it. That gave Democrats leverage to force GOP negotiators to drop numerous policy riders that Democrats considered poison pills.

Ryan said negotiations were ongoing about adding a widely backed measure that aims to strengthen federal background checks by prodding states to provide all records that disqualify people with severe mental health problems and other issues from buying firearms.

Grain sales subsidies

Republicans continued to press to fix a glitch in the recent tax bill that subsidizes grain sales to cooperatives at the expense of for-profit grain companies, lawmakers said.

“We need to fix that problem,” said House Majority Leader Kevin McCarthy, a California Republican. Schumer was demanding a provision of his own — tax subsidies to construct low-income housing — in exchange, lawmakers said.

The president, meanwhile, has privately threatened to veto the whole package if a $900 million payment is made on the Hudson River Gateway Project. Trump’s opposition is alarming Northeastern Republicans such as Representative Peter King of New York, who lobbied Trump on the project at a St. Patrick’s luncheon in the Capitol last week.

The Gateway Project would add an $11 billion rail tunnel under the Hudson River to complement deteriorating, century-old tunnels that are at risk of closing in a few years. The project enjoys bipartisan support among key Appropriations panel negotiators on the omnibus measure who want to get the expensive project on track while their coffers are flush with money.

“I think we ought to get it done and it has good bipartisan support,” Schumer said. “I’m not going to get into a back-and-forth with the president. This is a needed project, and I hope Congress rises to the occasion.”
…

The Weinstein Co. filed for bankruptcy protection on Monday with a buyout offer in hand from a private equity firm, the latest twist in its efforts to survive the sexual misconduct scandal that brought down co-founder Harvey Weinstein, shook Hollywood and triggered a movement that spread out to convulse other industries.

The company also announced it was releasing any victims of or witnesses to Weinstein’s alleged misconduct from non-disclosure agreements preventing them from speaking out. That step had long been sought by New York Attorney General Eric Schneiderman, who filed a lawsuit against the company last month on behalf of its employees.

“Since October, it has been reported that Harvey Weinstein used non-disclosure agreements as a secret weapon to silence his accusers. Effective immediately, those ‘agreements’ end,” the company said in a statement. “No one should be afraid to speak out or coerced to stay quiet.”

In a statement, Schneiderman praised the decision as “a watershed moment for efforts to address the corrosive effects of sexual misconduct in the workplace.” 

The movie and TV studio becomes the first high-profile company to be forced into bankruptcy in the nationwide outcry over workplace sexual misconduct. Dozens of prominent men in entertainment, media, finance, politics and other realms have seen their careers derailed, but no other company has seen its very survival as tightly intertwined with the fate of one man as the Weinstein Co. 

Some 80 women, including prominent actresses, have accused Harvey Weinstein of misconduct ranging from rape to harassment. Weinstein, who was fired as his company’s CEO in October, has denied any allegations of non-consensual sex.

The Weinstein Co. said it has entered into a “stalking horse” agreement with an affiliate of Dallas-based Lantern Capital Partners, meaning the equity firm has agreed to buy the company, subject to approval by the U.S. Bankruptcy Court in Delaware. 

Lantern was among a group of investors that had been in talks for months to buy the company outside of bankruptcy. That deal was complicated when Schneiderman filed his lawsuit, citing concerns that the sale would benefit executives accused of enabling Weinstein’s alleged misconduct and provide insufficient guarantees of compensation for his accusers. Talks to revive the sale finally fell apart two weeks ago when the group of buyers said they had discovered undisclosed liabilities.

The Weinstein Co. said it chose Lantern as a potential buyer because the firm was committed to keeping on the studio’s employees as a going concern.

“While we had hoped to reach a sale out of court, the Board is pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims,” said Bob Weinstein, who co-founded the company with his brother Harvey in 2005 and remains chairman of the board of directors.

Lantern co-founders Andy Mitchell and Milos Brajovic said they were committed to “following through on our promise to reposition the business as a pre-eminent content provider, while cultivating a positive presence in the industry.”

Under bankruptcy protection, civil lawsuits filed by Weinstein’s accusers will be halted and no new legal claims can be brought against the company. Secured creditors will get priority for payment over the women suing the company.

Schneiderman’s lawsuit will not be halted by the bankruptcy filing because it was filed by a law enforcement agency. Schneiderman said his investigation would continue and that his office would engage with the Weinstein Co. and Lantern to ensure “that victims are compensated, employees are protected moving forward, and perpetrators and enablers of abuse are not unjustly enriched.”

Other bidders also could emerge during the bankruptcy process, particularly those interested in the company’s lucrative 277-film library, which includes award-winning films from big-name directors like Quentin Tarantino and horror releases from its Dimension label. Free of liabilities, the company’s assets could increase in value in a bankruptcy.

In more fallout over the scandal, New York’s governor directed the state attorney general to review a decision by the Manhattan district attorney’s office not to prosecute a 2015 case involving an Italian model who said Weinstein groped her.

The bankruptcy process will bring the company’s finances into public view, including the extent of its debt. The buyers who pulled out of the sale earlier this month said they discovered up to $64 million in undisclosed liabilities, including $27 million in residuals and profit participation. Those liabilities came on top of $225 million in debt, which the buyers had said they would be prepared to take on as part of a $500 million acquisition deal.

The Weinstein Co. already had been struggling financially before the scandal erupted in October with a news stories in The New York Times and The New Yorker. Harvey and Bob Weinstein started the company after leaving Miramax, the company they founded in 1979 and which became a powerhouse in `90s indie film with hits like “Pulp Fiction.” After finding success with Oscar winners “The Artist” and “The King’s Speech,” the Weinstein Co.’s output and relevance diminished in recent years. The company let go 50 employees in 2016 and continuously shuffled release dates while short of cash.

Last year, the studio sold distribution rights for the movie “Paddington 2” to Warner Bros. for more than $30 million. 
…

Some coastal states opposed to President Donald Trump’s plan to allow oil and gas drilling off most of the nation’s coastline are fighting back with proposed state laws designed to thwart the proposal.

 

The drilling Trump proposes would take place in federal waters offshore in an area called the Outer Continental Shelf. But states control the 3 miles of ocean closest to shore and are proposing laws designed to make it difficult, or impossible, to bring the oil or gas ashore in their areas.

 

A look at the issue:

 

What States Are Doing

 

States including New Jersey, New York, California, South Carolina and Rhode Island have introduced bills prohibiting any infrastructure related to offshore oil or gas production from being built in or crossing their state waters. Washington state is threatening such a bill. Maryland has introduced a bill imposing strict liability on anyone who causes a spill while engaged in offshore drilling or oil or gas extraction.

 

“We started thinking about how we control the first three miles of ocean, and there are state rights that we have,” said New Jersey state Sen. Jeff Van Drew, a Democrat who represents the state’s southern coast. “Even if we don’t succeed in banning it outright, we can still make it a lot more expensive to do it in this area. It’s a back-door, ingenious way to block this.”

 

California Democratic state Sen. Hannah-Beth Jackson said a ban on pipelines and docks could force the industry to rely on ships that would then have to sail to the waters of a different state to bring their cargo ashore. “What we can do is make drilling for offshore oil and gas so prohibitively expensive that it won’t pencil out,” she said.

 

Any Precendent?

 

In 1985, voters in Santa Cruz, California, required that any zoning changes to accommodate onshore facilities for offshore oil exploration or production must be approved by a vote of the electorate, one of 26 similar ordinances that were adopted in California. An oil and gas industry association unsuccessfully sued 13 of the communities, claiming they were interfering with lawful interstate commerce.

 

Oil Industry, U.S. Response

 

Andy Radford, a senior policy adviser with the American Petroleum Institute, said it has been 30 years since the last detailed analysis of potential offshore oil and gas supplies. He said states ought to welcome offshore drilling for the revenue it can produce for them. Offshore energy production in the Atlantic Ocean alone could support 265,000 jobs and generate $22 billion a year within 20 years, he said.

 

“We should take that step forward to advance our energy future,” he said. “Local communities and workers benefit from energy exploration and production, in addition to these investments generating significant state revenues to fund schools, hospitals and other public services.”

 

Connie Gillette, a spokeswoman for the U.S. Bureau of Ocean Energy Management, said “the laws, goals, and policies” of a state adjacent to the Outer Continental Shelf are among the factors the federal government must consider in approving oil and gas leases.

 

Conflicted in South Carolina

 

In May 2017, eight months before Trump proposed the nearly nationwide expansion of offshore drilling, a South Carolina legislator introduced a bill to prohibit oil drilling infrastructure in state waters. The bill remains in committee.

 

South Carolina’s House and Senate both introduced a resolution expressing support for drilling off their state’s coast and criticizing Republican Gov. Henry McMaster’s request to be exempted from the plan, saying the request is “tantamount to the state exercising excessive control of South Carolina’s free market.”
…

Cuba has opened up its first wholesale market in an economy dominated by government-run enterprises.

 

State-run newspaper Granma says the market is part of an ongoing effort to “reorganize” commerce on the communist island. The market will sell beans, beer, sugar, cigars and other basic staples for 20 to 30 percent less than the products are sold throughout the country.

 

Since 2010, the government has authorized about 500,000 people to operate private businesses, and many of them have long-sought access to a wholesale marketplace. Their wait is not over. The government says the market known as the Mercabal is only open to 35 worker-owned cooperatives in Havana, at least for now.

 

The state-run economy accounts for 70 to 80 percent of the Cuban economy.
…

A New York City councilman and a tenants’ rights group said they will investigate allegations that the real estate company formerly controlled by Jared Kushner, a presidential adviser and President Donald Trump’s son-in-law, falsified building permits.

In allegations first uncovered by The Associated Press, the Kushner Companies is accused of submitting false statements between 2013 and 2016, stating it had no rent-controlled apartments in buildings it owned when it actually had hundreds.

Rent-controlled apartments come under tighter oversight from city officials when there is construction work or renovations in buildings. 

The councilman and tenants’ rights group charged the Kushner Companies of lying about rent-control in order to harass and force out tenants paying low rents so it can move in those who would pay more.

They also blame city officials for allegedly being unaware what Kushner was up to.

Rent control is a fixture in many big U.S. cities, where the government regulates rent to help make housing more affordable.

Some tenants in Kushner-owned buildings told the AP that the landlord made their lives a “living hell,” with loud construction noise, drilling, dust and leaking water. They said they believe they were part of a campaign of targeted harassment by the Kushner Companies to get them to leave.

The company denies intentionally falsifying documents in an effort to harass tenants. In a news release Monday, the company called the investigation an effort to “create an issue where none exists.”

“If mistakes or typographical errors are identified, corrective action is taken immediately with no financial benefit to the company,” it said.

The company also said it contracted out the preparation of such documents to a third party and that the faulty paperwork was amended. 

Kushner stepped down as head of his family’s company before becoming presidential adviser. But the AP said he still has a financial stake in a number of properties.
…

Colombia proposed on Monday that the International Monetary Fund provide assistance to help several hundred thousand Venezuelan refugees who have fled an economic and political crisis to  neighboring countries, officials at the G20 summit said.

The proposal was discussed at a meeting on Venezuela by leading finance ministers from the Western Hemisphere, the European Union and Japan, including U.S. Treasury Secretary Steven Mnuchin.

“The consensus is that the situation is extremely negative and we must by any means possible try to influence a solution to the problem and a change in Venezuela’s situation, mainly from the humanitarian point of view,” Brazilian Finance Minister Henrique Meirelles told reporters.

The fund, to be decided by the IMF next month, would only be used outside Venezuela and not by socialist President Nicolas Maduro’s “regime,” he said.

More than 500,000 Venezuelans have crossed into Colombia and 40,000 have left for Brazil as an economic meltdown worsened and opposition hopes of fair elections faded.

There were an estimated 886,000 Venezuelan migrants in South America in 2017, up from around 89,000 in 2015, the International Organization for Migration said in February.

An IMF spokesperson said of the proposal: “We look forward to subsequent discussions in which we would be involved.”

Mnuchin offered to host a follow-up meeting of the finance ministers on the margins of the World Bank/IMF Spring meeting in Washington, in April, a Treasury spokesperson said.

“The focus was on coordinating economic measures to achieve democratic political objectives in Venezuela, addressing the economic and humanitarian tragedy, and constructive responses once Venezuela allows free, fair and regular elections,” he said.

Colombia’s government was preparing a statement on the proposal, a finance ministry official said in Bogota.

The countries concerned with the Venezuelan situation also discussed sanctions and debt repayment as ways to encourage a solution to the crisis, Meirelles said.

“Some countries are already applying sanctions, like the United States. In the case of Brazil, we are owed $1.3 billion in trade financing and want that repaid,” he said. Venezuela recently paid arrears and is up to date, he added.

Other countries, led by Russia and China, favor a moratorium that would suspend Venezuela’s payments, he said. Russia and China did not attend the meeting.

Venezuela is undergoing a major economic crisis, with millions suffering food and medicine shortages, and Maduro’s government is late in paying about $1.9 billion in interest on its debt.
…

Greenpeace says household brands including PepsiCo and Johnson & Johnson are refusing to disclose where they get their palm oil from despite vows to stop buying from companies that cut down tropical forests to grow the widely used commodity.

The environmental group said Monday that in January it asked 16 major brands to reveal their suppliers of palm oil, which is mainly grown in Indonesia and Malaysia and used in a slew of consumer products from snacks to cosmetics. It said eight disclosed the information and eight refused.

Greenpeace said that adds to concerns international consumer goods companies are “way off track” in meeting a 2010 commitment to remove deforestation-linked palm oil from their supply chains by 2020.

“Corporate commitments and polices have proliferated, but companies have largely failed to implement them,” it said.

Colgate-Palmolive, General Mills, Mars, Mondelez, Nestle, Procter & Gamble, Reckitt Benckiser and Unilever agreed to publicly disclose the mills that produce the palm oil they buy and the names of groups that control the mills. Ferrero, Hershey, Kellogg’s, Kraft Heinz, Johnson & Johnson, PepsiCo, PZ Cussons and Smucker refused to provide the information, according to Greenpeace.

Globally, four industries – palm oil, soya, logging and cattle rearing – are the biggest destroyers of the virgin forests that are a crucial buffer against the rise in global temperatures.

Indonesia, which has overtaken Brazil as the country cutting down its forests at the fastest rate, lost 24 million hectares of rainforest between 1990 and 2015, Greenpeace said citing government data.

“Alarmingly, the destruction of Indonesia’s rainforests for palm oil shows no signs of slowing down,” the group said.

Groups representing the palm oil industry in Indonesia and Malaysia contend that much of the opposition to palm oil is a protectionist effort by rival industries in Western nations.

They point to an initiative known as the Roundtable on Sustainable Palm Oil as evidence they are taking conservation and other commitments seriously.

But Greenpeace said neither the industry initiative nor governments can be relied on to prevent palm oil producers from clearing forests.

“Palm oil traders, typically corporations that also have plantation interests, continue to allow oil from rainforest destroyers into their mills, refineries and distribution systems,” it said.
…

Zimbabwe’s new leader has publicly named more than 1,800 companies and individuals accused of illegally stashing hundreds of millions of dollars overseas and not bringing the money home under a now-expired amnesty deal.

President Emmerson Mnangagwa has vowed to fight corruption after the dramatic resignation in November of longtime leader Robert Mugabe, whose government was accused of widespread mismanagement of the once-prosperous country.

Mnangagwa in December announced the amnesty deal, which expired Friday. He now says $591 million of the $1.2 billion suspected to be illegally stashed overseas has been returned.

The president says those on the list should “take heed of the importance of good corporate governance and the legal obligations of citizenry” or face prosecution.

His list shows China as the main destination for “funds externalized to foreign banks in cash or under spurious transactions.”

Four Zimbabwe state-owned diamond-mining firms are among those accused of moving the most money abroad in “illicit financial flows.” The four firms, which mined in fields that once courted controversy over alleged army killings of illegal artisanal miners and looting, are accused of failing to repatriate over $111 million in export proceeds.

Mugabe previously claimed the firms spirited out $15 billion from the diamond fields, where the Chinese were major players until Zimbabwe’s government cancelled all licenses to make way for a state monopoly in 2016.

Also Monday, a government gazette notice said the government has repealed sections of an indigenization law that limited foreign ownership of businesses to 49 percent, though diamonds and platinum are still reserved for majority ownership by the state. The move also had been promised by the new president.
…

U.S. drinkers overtook Britons as the world’s biggest buyers of Champagne in 2017, after British purchases fell heavily for the second-straight year following the vote to leave the European Union, industry data showed.

Higher inflation since the Brexit referendum and slower wage growth have pinched the spending power of British consumers and left households more uncertain about their finances.

In volume terms, sales to Britons, long the biggest foreign buyers of French “bubbly,” fell 11 percent in 2017 after a nine percent drop in 2016, said France’s Champagne federation.

“The UK, still ranked second by value, continues to be adversely affected by the ‘Brexit’ effect,” the CIVC federation said in a statement.

Higher prices limited the damage. The federation said the value of Champagne sales to Britons fell 5.7 percent last year.

It was the first time the U.S. market has supplanted Britain as the biggest buyer of the sparkling wine, made in the Champagne region of northern France.

French sales remained stable in value terms at 2.1 billion euros, out of a world total of 4.9 billion euros in 2017, according to the latest figures, released Sunday.
…

Indonesian president Joko “Jokowi” Widodo has instructed ministers to keep fuel prices stable over the next two years, said Energy Minister Ignasius Jonan, which would, in effect, continue a controversial fuel subsidy scheme that analysts say has negatively impacted growth and the environment. 

The Ministry said it would increase the per-liter subsidy for diesel and regular petrol from 500 Indonesian rupiah (about $0.35) to 700-1000 rupiah ($0.49-$0.70) while keeping pump prices unchanged.

The measure indicates how protectionist measures have been hard to shake for the initially reform-minded Jokowi, who made several inroads against subsidies in 2014 and 2015. 

Meanwhile, the rupiah continues to sink in the global market, due in part to Indonesia’s widening current-account deficit. On Monday, Credit Suisse said “the rupiah is among the most vulnerable emerging market currencies in Asia.”

Political Context

“Subsidizing fuel does tend to exacerbate currency depreciation, because the bulk of Indonesia’s petrol is imported,” said Kevin O’Rourke, a veteran Indonesian political analyst. “Fixed retail prices cause over-consumption, as the price remains the same even though the currency is declining; ordinarily, what should happen is that petrol prices rise as the currency declines, thereby discouraging consumption of the imports.”

In 2014, the year he was elected president, Jokowi raised fuel prices and capped the diesel subsidy within months of taking office. Last year he also pushed to phase out electricity subsidies, but was already facing pushback from consumers amid rising inflation. Consumer expectations are perhaps looming larger now that he is in the latter half of his term, and gearing up for a competitive reelection campaign in 2019. 

“Widodo hopes to keep retail prices stable through the April 2019 election, despite the gap between the Indonesia Crude Price (ICP) and the budget’s oil price assumption,” said O’Rourke. “Ostensibly, this subsidization aims to preserve consumer purchasing power; in reality, Widodo clearly hopes to avoid sacrificing popularity ahead of his re-election bid.” Ironically, he said, artificially low fuel prices end up creating inflation anyway, since people tend to then over-consume imported petrol, which further sinks the rupiah.

The subsidy may also imperil Indonesia’s public transport ambitions, said Jakarta-based energy policy researcher Lucky Lontoh. “Jokowi’s massive infrastructure development actually was started with a fuel subsidy reduction back in 2014, which freed some fiscal space needed to fund the infrastructure projects. More subsidies means the government will have less money to fund other development activities.” 

Environmental Impact

Fuel subsidies are considered a regressive form of spending because their benefits are captured by people wealthy enough to drive and own vehicles, said Paul Burke, an economist at Australian National University who focuses on energy and transportation. 

But they also aggravate traffic jams — including in cities like the notoriously traffic-choked Jakarta — air pollution, and oil dependence, said Burke, citing a recent paper he authored on the topic. 

Burke said Indonesia’s substantial progress on electricity subsidies are a hopeful sign and possible roadmap for fuel subsidy reform. 

“Over recent years, Indonesia has achieved substantial success in reducing electricity subsidies, by increasing some electricity tariffs to cost-reflective levels,” he said. “Poor households are among those that have been exempted from the reforms… [which] have made an important contribution to improving the efficiency of Indonesia’s electricity use. As electricity prices have increased, electricity use has shifted to a lower-growth trajectory. This has helped Indonesia to avoid the need to build too many expensive new power stations.”

In the fuel realm, Burke said a reform option that economists often suggest is a “fuel excise,” which is a tax on the sale of fuel and the opposite of a fuel subsidy. “Fuel excise would be a progressive form of revenue raising, would help to reduce pollution and traffic jams, and would help Indonesia reduce its budget deficit and fund key priorities.”

Fossil fuel subsidies have existed in Indonesia since its independence in 1949 and, per the International Energy Agency, accounted for nearly 20 percent of fiscal expenditure by the 1960’s. In that context, the reforms of modern-day Indonesia and the Jokowi administration are not inconsiderable: by 2014, about 3 percent of the GDP was spent on fossil fuel subsidies, and by 2016, after Jokowi’s initial spate of reforms, it was less than 1 percent. 

But, due to consumer expectations, the political climate, and the unique challenges of the fuel industry — Indonesia both has a lot of natural resources itself and a burgeoning consumer class — the current subsidy apparatus may prove sticky for the near future. 
…

When the Kushner Cos. bought three apartment buildings in a gentrifying neighborhood of Queens in 2015, most of the tenants were protected by special rules that prevent developers from pushing them out, raising rents and turning a tidy profit.

 

But that’s exactly what the company then run by Jared Kushner did, and with remarkable speed. Two years later, it sold all three buildings for $60 million, nearly 50 percent more than it paid.

Now a clue has emerged as to how President Donald Trump’s son-in-law’s firm was able to move so fast: The Kushner Cos. routinely filed false paperwork with the city declaring it had zero rent-regulated tenants in dozens of buildings it owned across the city when, in fact, it had hundreds.

 

While none of the documents during a three-year period when Kushner was CEO bore his personal signature, they provide a window into the ethics of the business empire he ran before he went on to become one of the most trusted advisers to the president of the United States.

 

“It’s bare-faced greed,” said Aaron Carr, founder of Housing Rights Initiative, a tenants’ rights watchdog that compiled the work permit application documents and shared them with The Associated Press. “The fact that the company was falsifying all these applications with the government shows a sordid attempt to avert accountability and get a rapid return on its investment.”

 

Kushner Cos. responded in a statement that it outsources the preparation of such documents to third parties that are reviewed by independent counsel, and “if mistakes or violations are identified, corrective action is taken immediately.”

 

“Kushner would never deny any tenant their due-process rights,” it said, adding that the company “has renovated thousands of apartments and developments with minimal complaints over the past 30 years.”

 

New York City Council members are calling for an investigation into the AP’s report.

 

For the three Queens buildings in the borough’s Astoria neighborhood, the Kushner Cos. checked a box on construction permit applications in 2015 that indicated the buildings had zero rent-regulated tenants. Tax records filed a few months later showed the company inherited as many as 94 rent-regulated units from the previous owner.

 

In all, Housing Rights Initiative found the Kushner Cos. filed at least 80 false applications for construction permits in 34 buildings across New York City from 2013 to 2016, all of them indicating there were no rent-regulated tenants. Instead, tax documents show there were more than 300 rent-regulated units. Nearly all the permit applications were signed by a Kushner employee, including sometimes the chief operating officer.

 

Had the Kushner Cos. disclosed those rent-regulated tenants, it could have triggered stricter oversight of construction crews by the city, including possibly unscheduled “sweeps” on site by inspectors to keep the company from harassing tenants and getting them to leave.

 

Instead, current and former tenants of the Queens buildings told the AP that they were subjected to extensive construction, with banging, drilling, dust and leaking water that they believe were part of targeted harassment to get them to leave and clear the way for higher-paying renters.

 

“It was noisy, there were complaints, I got mice,” said mailman Rudolph Romano, adding that he also bristled at a 60 percent rent increase, a hike the Kushner Cos. contends was initiated by the previous landlord. “They cleaned the place out. I watched the whole building leave.”

 

Tax records show those rent-regulated units that numbered as many as 94 when Kushner took over fell to 25 by 2016.

 

In Kushner buildings across the city, records show frequent complaints about construction going on early in the morning or late at night against the rules, improper or illegal construction, and work without a permit.

 

At a six-story walk-up in Manhattan’s East Village that was once home to the Beat poet Allen Ginsberg, the Kushner Cos. filed an application to begin construction in late 2013 that, again, listed zero rent-regulated tenants. Tax records a few months later showed seven rent-regulated units.

 

“All of a sudden, there was drilling, drilling. … You heard the drilling in the middle of night,” said one of the rent-regulated tenants, Mary Ann Siwek, 67, who lives on Social Security payments and odd jobs. “There were rats coming in from the abandoned building next door. The hallways were always filled with lumber and sawdust and plaster.”

 

A knock on the door came a few weeks later, and an offer of at least $10,000 if she agreed to leave the building.

 

“I know it’s pretty horrible, but we can help you get out,” Siwek recalls the man saying. “We can offer you money.”

 

Siwek turned down the cash and sued instead. She said she won a year’s worth of free rent and a new refrigerator.

 

New York City Council member Ritchie Torres, who plans to launch an investigation into permit applications, said: “The Kushners appear to be engaging in what I call the weaponization of construction.”

 

Rent stabilization is a fixture of New York City that can bedevil developers seeking to make money off buildings. To free themselves of its restrictions, landlords usually have to wait until the rent rises above $2,733 a month, something that can take years given the small increases allowed each year.

 

Submitting false documents to the city’s Department of Buildings for construction permits is a misdemeanor, which can carry fines of up to $25,000. But real estate experts say it is often flouted with little to no consequences. Landlords who do so get off with no more than a demand from the city, sometimes a year or more later, to file an “amended” form with the correct numbers.

 

Housing Rights Initiative found the Kushner Cos. filed dozens of amended forms for the buildings mentioned in the documents, most of them a year to two later.

 

“There is a lack of tools to go after landlords who harass tenants, and there is a lack of enforcement,” said Seth Miller, a real estate lawyer who used to work at a state housing agency overseeing rent regulations. Until officials inspect every construction site, “you’re going to have this incentive for landlords to make life uncomfortable for tenants.”

 

New York City’s Department of Buildings did not comment in general about the false filings by the Kushner Cos., but said it disciplined a contractor who filed false documents while working on two of the Queens buildings, which are currently under investigation by a tenant-harassment task force. It added that the department is also ramping up its monitoring of construction, hiring 72 new inspectors under city laws recently passed to crack down on tenant harassment.

 

 “We won’t tolerate landlords who use construction to harass tenants — no matter who they are,” spokesman Joseph Soldevere said.

 

Exactly how much money the Kushner Cos. earned from the buildings mentioned in the documents is unclear. Of those 34 buildings, only the three in Queens and a fourth in Brooklyn appear to have been sold. The company also likely made money by reducing the number of rent-regulated tenants and bringing in those who would pay more.

 

Jared Kushner, who stepped down as CEO of the Kushner Cos. last year before taking on his advisory role at the White House, sold off part of his real estate holdings as required under government ethics rules. But he retained stakes in many properties, including Westminster Management, the Kushner Cos. subsidiary that oversees its residential properties. A financial disclosure last year showed he still owns a stake in Westminster and earned $1.6 million from the holding.

 

Back in Queens, the mailman Romano was one of the few rent-regulated tenants who fought back.

 

He hired a lawyer who found out he was protected from the 60-percent rent hike by law, something Romano did not know at the time. And he said his rent, which was set to increase to $3,750, was restored to $2,350.

 

Romano is still in the building where he has lived for nine years, with his wife, four children and his guests from the construction days — the mice.

 

 “I still haven’t gotten rid of them.”
…

Air bags in some Hyundai and Kia cars failed to inflate in crashes and four people are dead. Now the U.S. government’s road safety agency wants to know why.

The National Highway Traffic Safety Administration says it’s investigating problems that affect an estimated 425,000 cars made by the Korean automakers. The agency also is looking into whether the same problem could happen in vehicles made by other companies.

In documents posted on its website Saturday , the safety agency says the probe covers 2011 Hyundai Sonata midsize cars and 2012 and 2013 Kia Forte compacts. The agency says it has reports of six front-end crashes with significant damage to the cars. Four people died and six were injured.

Electrical circuits 

The problem has been traced to electrical circuit shorts in air bag control computers made by parts supplier ZF-TRW. NHTSA now wants to know if other automakers used the same computer.

On Feb. 27, Hyundai recalled nearly 155,000 Sonatas because of air bag failures, which the company blamed on the short circuits.Hyundai’s sister automaker Kia, which sells similar vehicles, has yet to issue a recall.

In a statement Saturday, Kia said that it has not confirmed any air bag non-deployments in its 2002-2013 Kia Forte models arising from “the potential chip issue.” The company said it will work with NHTSA investigators.

“Kia will act promptly to conduct a safety recall, if it determines that a recall would be appropriate,” the company said.

But a consumer complaint cited in NHTSA’s investigation documents said Kia was informed of a crash near Oakland in which air bags failed to deploy and a passenger was killed.

In October 2015, the complainant told NHTSA that a 2012 Forte was involved in a serious front-end crash that occurred in July 2013. A passenger was killed and the driver was injured. According to the complaint, Kia was notified, the air bag computer was tested and it was “found not to be working.”

Kia spokesman James Bell said he could not comment beyond the company’s statement.

Hyundai recall

In addition, no deaths or injuries were disclosed in Hyundai’s recall documents, which were posted by NHTSA in early March.

Hyundai spokesman Jim Trainor says the problem occurred in rare high-speed head-on collisions that were offset from the center of the vehicles. “It’s very unusual to have that kind of collision,” he said Saturday.

Dealers will consider offering loaner cars to owners until the problem can be repaired, he said. “We certainly would do everything we can to help our customers,” Trainor said.

Hyundai said in a statement that the air bag control circuitry was damaged in three crashes and a fourth crash is under investigation.

ZF-TRW said in a statement that it is prevented by confidentiality agreements from identifying other automakers that bought its air bag control computers. The company said it is working with customers and supports the NHTSA investigation.

According to NHTSA, Hyundai investigated and found the problem was “electrical overstress” in the computers. The company didn’t have a fix developed at the time but said it was investigating the problem with ZF-TRW. Hyundai does not yet have a fix for the problem but said it expects the Sonata recall to start April 20. The problem also can stop the seat belts from tightening before a crash.

In the documents, NHTSA said it understands that the Kia Fortes under investigation use similar air bag control computers made by ZF-TRW. The agency noted a 2016 recall involving more than 1.4 million Fiat Chrysler cars and SUVs that had a similar problem causing the air bags not to deploy. Agency documents show those vehicles had air bag computers made by ZF-TRW.
…

The pot revolution is alive and well in the state of Colorado where recreational cannabis has been legal since 2014. While the full impact of legal marijuana in Colorado has yet to be determined, what is clear is that cannabis has become a giant moneymaker for the state. And as Paula Vargas reports from Denver, women entrepreneurs — weed warriors, as some have called them — are leading the way.
…

Britain should consider a limited extension to its exit process from the European Union if needed to ensure details of its future relationship with the

bloc are agreed, a committee of lawmakers said in a report.

Prime Minister Theresa May formally notified the EU of Britain’s intention to leave by triggering Article 50 of the membership treaty on March 29, 2017, setting the clock ticking on a two-year exit process.

Britain has said it wants to have the basis of a trade deal set out with the EU by October, but the Exiting the EU Committee said in a report published Sunday that deadline would be tight.

“In the short time that remains, it is difficult to see how it will be possible to negotiate a full, bespoke trade and market access agreement, along with a range of other agreements, including on foreign affairs and defense cooperation,” the committee said.

“If substantial aspects of the future partnership remain to be agreed in October, the government should seek a limited extension to the Article 50 time to ensure that a political declaration on the future partnership that is sufficiently detailed and comprehensive can be concluded.”

The report also said it should be possible to prolong, if necessary, the length of any post-Brexit transition that’s agreed upon by Britain and the EU.

Britain has said it is confident it can reach a deal on the transition period at an EU summit this month. It expects the transition to last around two years after its departure date, although the European Union has said it should be shorter,

ending on Dec. 31, 2020.

The Exiting the EU committee, made up of lawmakers from all the main political parties, also called on the government to present a detailed plan on how a “frictionless” border between Northern Ireland and the Republic of Ireland would work.

The Irish border is a key sticking point in negotiations between the U.K. and the EU, as Britain has said it wants to leave the customs union but does not want a “hard” land border with customs checks.
…

German Chancellor Angela Merkel and Chinese President Xi Jinping on Saturday discussed overcapacity in world steel markets and agreed to work on

solutions within the framework of the Group of 20 industrialized nations, Merkel’s spokesman said.

The two leaders emphasized close ties between the two countries, which are both facing planned U.S. steel and aluminum tariffs, and agreed to deepen the strategic partnership between them, Steffen Seibert said in a statement.

He said Merkel invited Chinese officials to visit Berlin for consultations, and Xi invited Merkel to visit China.

They also discussed the situation in North Korea regarding its nuclear and missile development efforts.
…

A former midlevel employee of German industrial giant Siemens pleaded guilty Thursday of conspiring to pay tens of millions of dollars to Argentine officials to win a $1 billion contract to create national ID cards.

Eberhard Reichart, 78, who worked for Siemens from 1964 to 2001, appeared in federal court in New York to plead guilty to one count of conspiring to violate the anti-bribery Foreign Corrupt Practices Act and to commit wire fraud.

Reichart was arraigned last December in a three-count indictment filed in December 2011 charging him and seven other Siemens executives and agents with participating in the decadelong scheme, the Justice Department said Thursday. 

The men were accused of conspiring to pay more than $100 million in bribes to high-level Argentine officials to win the contract in 1998. 

As part of his guilty plea, Reichart admitted in court that he engaged in the bribery conspiracy and that he and his co-conspirators used shell companies to conceal the illicit payments to Argentine officials.

The Argentine government terminated the contract in 2001, but the Siemens executives “sought to recover the profits they would have reaped” through an illicitly obtained contract, said Preet Bharara, former U.S. attorney for the Southern District of New York, in 2011. 

“Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules,” acting Assistant Attorney General John Cronan said Thursday.

In 2008, Siemens pleaded guilty of violating the Foreign Corrupt Practices Act in connection with the Argentine bribery scheme, agreeing to pay the Justice Department and Securities and Exchange Commission $800 million in criminal and civil penalties.

The company paid the German government another $800 million to settle similar charges brought by the Munich Public Prosecutor’s Office.

The Foreign Corrupt Practices Act bars U.S. companies and foreign firms with a presence in the U.S. from paying bribes to foreign officials.

Last year, 11 companies paid just over $1.92 billion to resolve charges brought under the anti-bribery law, according to data compiled by the FCPA Blog.
…

White House trade adviser Peter Navarro said Thursday that President Donald Trump would soon consider new punitive measures against China for its alleged “theft” of intellectual property.

U.S. officials, according to news accounts, are considering imposing as much as $60 billion in annual tariffs against Chinese information technology, telecommunications and consumer exports to the U.S. in an effort to trim its chronic annual trade deficit with Beijing by $100 billion. Last year, the U.S. says it imported Chinese goods worth $375 billion more than it exported to China.

“In the coming weeks, President Trump is going to have on his desk some recommendations,” Navarro told CNBC. “This will be one of the many steps the president is going to courageously take in order to address unfair trade practices.

“I don’t think there’s a single person … on Wall Street that will oppose cracking down on China’s theft of our intellectual property or their forced transfer,” Navarro said.

The new tariffs and other measures would be in addition to the 25 percent tariff on steel imports to the U.S. and 10 percent levy on aluminum that Trump announced last week, some of which affect China.

​At a political fundraiser Wednesday, Trump attacked several trading partners for the billions of dollars in trade surpluses they have built up against the U.S. He contended that China had become an economic power — the world’s second biggest economy — because of its trade surplus with the United States.

China warned it would likely retaliate against any new tariffs the U.S. imposes.

Foreign minister spokesman Lu Kang said, “History has proven that a trade war is in no one’s interest.”

He said that “if an undesirable situation arises, China has the intention of safeguarding its legitimate rights.”

Trump’s new tariffs on metal imports have led in recent days to volatility on U.S. stock exchanges, with wide day-to-day swings of hundreds of points in stock indexes. 

But Navarro said the U.S. can impose the tariffs in a way that can be good for the American people and good for the global trading system. We can do this in a way that is peaceful and will improve and strengthen the trading system. … Everybody on Wall Street needs to understand: Just relax.”
…

HSBC will reveal a gender pay gap of 59 percent at its main U.K. banking operation, the biggest yet disclosed by a British bank, according to a copy of the lender’s report on the subject seen by Reuters on Thursday ahead of its publication.

The bank will also disclose a mean gender bonus gap of 86 percent at HSBC Bank Plc, which is the biggest of the lender’s seven entities in Britain and employs 23,507 people.

A spokeswoman for the bank confirmed the contents of the report.

The gender pay gap is the biggest yet reported by a British financial firm, according to government data, with some firms yet to provide figures ahead of an April deadline set by Prime Minister Theresa May last year.

Almost 50 years since the passage of Britain’s equal pay act, the continued gulf in earnings between men and women has attracted significant public attention over the past year or so.

In common with other banks, HSBC said its pay gap was largely accounted for by the bank having fewer women in senior roles.

The gender pay gap measures the difference between the average salary of men and women, calculated on an hourly basis.

HSBC said women held only 23 percent of senior leadership positions in its workforce in Britain, despite accounting for more than half of total staff.

The bank said it was taking a number of steps to reduce the pay gap, including committing to an aspirational target of women holding 30 percent of senior roles by 2020.

Last month, Asia-focused Standard Chartered reported a gap of 30 percent in Britain, while Virgin Money — the only major UK lender run by a woman — said its female staff earned on average 32.5 percent less per hour than its male workforce.

Lloyds Banking Group and Royal Bank of Scotland reported gender pay gaps of 32.8 percent and 37 percent respectively.

Barclays said last month it paid women in its international division, which houses its investment bank, on average 48 percent of what men earned in fixed pay.

The pay gaps have drawn criticism from lawmakers and are likely to spur questions from investors in the upcoming season for shareholder meetings, with stock prices and future earnings potential strongly linked to banks’ efforts to revive their reputations in the wake of the global financial crisis.
…

Germany said on Thursday that any escalation of U.S. President Donald Trump’s tariffs on metal imports into a full-blown trade war could cause tangible damage to the global recovery, although the tariffs themselves should have only a limited effect.

Trump last week ordered the imposition of duties on incoming steel and aluminum and threatened to levy a tax on European cars if the European Union did not remove “horrific” tariffs and trade barriers on a range of goods.

“The German economic upswing is continuing at the beginning of 2018. The global economic environment is still favorable,” the Economy Ministry said in its monthly report. But it said U.S. trade policies were creating a sense of uncertainty.

The tariffs on steel and aluminum will affect trade flows in some regions, but their overall implications for the global economy are likely to be manageable, it said.

“But a possible escalation into a trade war and rising uncertainty among market participants could cause tangible damage,” it added.

European Council President Donald Tusk on Wednesday urged the United States to revive trade talks rather than escalate a dispute over tariffs on metals and cars.

And Swiss National Bank Chairman Thomas Jordan said on Thursday that U.S. protectionism could be a threat to the export-dependent Swiss economy and trigger safe-haven flows that would drive up the value of the Swiss currency.

‘At a crossroads’

Germany’s new economy minister, Peter Altmaier, said Trump was challenging the multilateral trade system as defined by the rules of the World Trade Organization (WTO).

“We are at a very important crossroads,” Altmaier said, warning of a scenario in which countries could start a spiral of tit-for-tat trade restrictions.

“This is a really huge challenge with implications for all of us,” Altmaier added. He said consumers in all countries would end up footing the bill because tariffs would push up prices for many kinds of products.

The threat of a full-blown trade war will also be on the agenda of the G-20 meeting in Argentina, where finance ministers and central bank governors from the world’s 20 biggest economies meet from March 17 to 20.

Germany’s new finance minister, Olaf Scholz, will meet his U.S. counterpart Steven Mnuchin on Sunday or Monday on the sidelines of the meeting to discuss trade, banking regulation and other issues, senior German officials said on Thursday.

“The minister will have bilateral meetings with all G-7 counterparts,” one of the officials said, on condition of anonymity, adding that multilateral trade would “certainly be a big topic” at the G-20 meeting.

The taxation of profits from digital business and regulation of crypto currencies will also be in focus, the official added.

 
…