YCLOAK

Students who attended for-profit colleges were twice as likely or more to default on their loans than students who attended public schools, according to a federal study published Thursday.

The report by the National Center of Education Statistics looks at students who began their undergraduate education in 2003 and defaulted on at least one loan over the next 12 years. Fifty-two percent of the students who attended for-profit schools defaulted on their loan. That’s compared to 17 percent for those who attended a four-year public institution and 26 percent at community college.

The report also finds that the for-profit students defaulted on their federal student loans in greater numbers than their predecessors eight years before.

The report comes as Education Secretary Betsy DeVos rewrites rules that had been put in place by the Obama administration to protect students who said they were defrauded by their for-profit colleges.

The study also found that this group of students is defaulting on their federal student loans in greater numbers than their predecessors eight years before.

Default rate

Of the students who started college in 2003, 27 percent had defaulted on at least one loan after 12 years, the study found. For those who started their undergraduate education in 1995, the default rate was 18 percent. The rate of full repayment was 20 percent in the younger group, compared to 24 in the older group.

Robert Kelchen, a professor of education at Seton Hall University, suggested that the higher rate among the 2003 freshmen might be due to them entering the labor market at the height of the Great Recession.

Default rates were higher for those students who never completed their education, the study said.

“Degree completion is a key component of a student’s ability to repay their loan,” said Joshua Goodman, a professor of public policy at Harvard University. “Simply attending college without completion doesn’t really pay off.”

Among borrowers in the 2003 group, the median amount owed after 12 years was $3,700 for those who earned undergraduate certificates, $11,700 for students getting associate’s degrees and $13,800 for bachelor’s degrees or higher.
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At 52 years old, with two grown children, Newton Gunathileka thought he should be working less by this point. Instead he has never worked so hard — and earned so little.

Gunathileka, from the Sri Lankan village of Periyakulam, in the North Western Puttalam District, is among hundreds of thousands of rural Sri Lankans who have borne the brunt of the worst drought in four decades.

He has not seen any substantial rains on his farm in at least a year and has lost two harvests, resulting in a loss of more than 200,000 Sri Lankan rupees ($1,325) — and growing debts. He has now abandoned his two acres of rice paddy land and spends his time looking, mainly unsuccessfully, for other work in 40 degree Celsius heat.

“There is no work. Everyone, big or small, has lost out to the drought,” he said.

According to data released in September by the United Nations, there are hundreds of thousands of households like Gunathileka’s facing serious food security issues in Sri Lanka.

With rice production for 2017 expected to be the lowest in a decade, “over 300,000 households (around 1.2 million people) are estimated to be food insecure, with many households limiting their food intake and in some cases eating just one meal a day,” the United Nations update said.

The worst affected areas are the North Western, North Central, Northern and South Eastern Provinces that rely heavily on agriculture. The U.N. Office in Colombo said that affected households were in some cases limiting their food intake, which was hampering people’s day-to-day lives.

Eating their seed

Gunathileka, who hails from the North Western Province, said his family was now eating some of the rice that he had put away to use as seed for the next growing season.

“For the next month or two we are okay with rice, but we have been limiting eating meat, eggs and vegetables we buy from outside. The other big problem I have is my children’s higher education. If we can’t get a harvest at least by the end of the year both of them will have to work,” he said.

His daughter is taking a course in secretarial work while the son is getting ready to sit university entrance exams. The family now survives on about Rs 800 ($5) or less a day, and both Gunathileka and his wife earn cash doing whatever work they can find.

The U.N report also said that household debt was rising due to the drought. A World Food Program survey released in August said that debts of surveyed families had risen by 50 percent in the last year.

“Households reported that the amount of money owed in formal loans has not increased, indicating that families are turning to informal lenders for credit,” the WFP survey said.

Gunathileka said that he was thinking of using the deeds to his paddy rice land as collateral and seeking a small loan from local money lenders.

“The banks will not lend because I can’t show any income. [But] if I don’t get to pay back the money lenders, I lose my land,” he said.

Rain and aid

Government officials said they anticipated the island had weathered the worst of the drought, and rains expected in late October would bring more relief.

Recent rains have dropped the overall number of people affected by drought from 2.2 million a month ago to 1.7 million now, said G.L. Senadeera, director general of the government Disaster Management Center.

He said the government planned to distribute relief food packs worth Rs 5000 ($34) to about 200,000 drought-hit families and provide compensation up to Rs 8500 ($56) per acre for harvest losses this year.

The government’s drought relief efforts, which began in August and were accelerated in September, officials say, are expected to cost about Rs 2.5 billion (about $16 million), according to the Treasury department.

The World Food Programme said in its August report that of 81,000 families surveyed in the 10 worst-hit districts, only 22 percent had access to government relief by early August.

For now, Gunathileka and his wife look up to the sky each time they step out looking for work.

“All we see are clear skies. All we want to see are dark clouds over the horizon,” he said.
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Greece welcomed Wednesday a decision by senior archaeologists to conditionally permit a major tourism project in Athens, saying it cleared the way for the country to turn the site into one of Europe’s biggest coastal resorts.

The 8-billion-euro ($9.4 billion) project to develop the disused Hellenikon airport site is a key term of Greece’s international bailout and is closely watched by its official creditors and potential investors in the crisis-hit country.

Greek developer Lamda signed a 99-year lease with the state in 2014 for the 620-hectare (1,530-acre) area, once the site of Athen’s airport. But the project has faced delays, partly over a long-running disagreement between developers and those who fear it will damage the environment and cultural heritage.

Protection urged for part of site

After three inconclusive meetings in recent weeks, the Central Archaeological Council, an advisory body, recommended Tuesday that about 30 hectares (74 acres) of the 620-hectare plot under the project be declared an archaeological site.

“The decision is fine,” Deputy Economy Minister in charge of investments, Stergios Pitsiorlas, told Reuters. “The fact that a small area is declared of archaeological interest shields the whole process from future litigation.”

Pitsiorlas said the recommendation meant that archaeologists will have a closer supervision of construction work.

Backed by Chinese and Gulf funds, Lamda submitted its detailed development plan for Hellenikon in July, setting off a licensing process that will wrap up with a decree.

The Council approved the plan Tuesday and designated specific areas where construction should not be allowed. It was not immediately clear how the Council’s recommendation could affect Lamda’s construction plan.

​Impact on development

Lamda said it was waiting to be officially notified over the decision before making any public statement, saying “the importance of the archaeological findings has been included from the beginning in the company’s undertakings.”

It said it should be able to assess the impact of the Council’s decision on its development plan once it has reviewed the resolutions and accompanying diagrams.

The recommendation is not binding, however, the culture ministry always respects the body’s decisions.

Greece on Monday overcame another hurdle to the project by winning an appeal over objections by forestry officials.

Hellenikon has become a major political issue in Greece, which is slowly emerging from a multi-year debt crisis.

Prime Minister Alexis Tsipras, whose leftist party strongly opposed it before coming to power in 2015, is now seen as keen to implement the deal to help boost economic activity and reduce unemployment, the euro zone’s highest.

Referring to the council’s decision, Deputy Foreign Minister Giannis Amanatidis said it was “a complicated process which was resolved in the best possible way.”
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South Korea indicated Wednesday it was open to talks on revising a 2012 trade pact with the United States after initial differences that followed President Donald Trump’s threat to terminate the accord unless it was renegotiated.

After a day of talks in Washington, South Korea’s trade ministry said in a statement, “The two sides recognized the need to amend the FTA to enhance mutual benefits of the KORUS FTA,” as the pact is called.

The U.S. trade representative, Robert Lighthizer, said the United States looked forward to stepped-up talks “to resolve outstanding implementation issues as well as to engage soon on amendments that will lead to fair, reciprocal trade.”

The statements mark a shift from an initial meeting in August, when the two sides failed to agree on next steps after Lighthizer had made demands to amend the agreement to reduce the U.S. trade deficit with South Korea.

Since the trade agreement went into effect in 2012, the U.S. goods trade deficit with South Korea more than doubled to $27.6 billion last year. But through July 2017, the bilateral trade deficit fell to $13.1 billion from $18.8 billion during the same period of 2016, according to U.S. Census Bureau data.

No date was given for a third round of talks between the two countries, which comes as Lighthizer is also focused on revamping the North American Free Trade Agreement with Mexico and Canada.
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Federal Reserve Chair Janet Yellen said Wednesday that the Fed is committed to making sure that the regulations it imposes on the nation’s community banks are not overly burdensome, noting a proposed rule issued last week to simplify requirements governing how much capital these banks must hold.

In remarks to a community banking conference in St. Louis, Yellen said the proposed new rule on capital requirements was the latest effort by regulators to ease burdens on smaller banks. She says the Fed is seeking to increase the number of community banks eligible for less frequent examinations and loosen requirements for property appraisals on commercial real estate transactions.

Yellen has defended the tougher regulations imposed following the 2008 banking crisis but has said there is room to ease regulatory burdens on smaller banks.

“For community banks, which by and large avoided the risky business practices that contributed to the financial crisis, we have been focused on making sure that much-needed improvements to regulation and supervision are appropriate,” Yellen told the conference.

During last year’s election campaign, Donald Trump attacked the Dodd-Frank Act passed by Congress in 2010 to prevent future crises as a disaster that he said had stifled the economy by limiting bank lending. Yellen, however, has said that the major parts of Dodd-Frank have made the financial system safer and should be retained.
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U.S. business groups expressed frustration on Wednesday with what they said are China’s efforts to tilt the economic playing field in favor of domestic companies, adding that World Trade Organization rules are insufficient to police all of Beijing’s trade practices.

U.S. companies face increasing threats from Chinese investment rules, industrial policies, subsidies to state-owned enterprises, excess manufacturing capacity, cybersecurity regulations and forced technology transfers, the groups told a public hearing held by the U.S. Trade Representative’s office.

The session will influence an annual report on China’s WTO compliance by the U.S. Trade Representative’s office as well as a USTR investigation into China’s intellectual property practices that could lead to imposition of trade sanctions by President Donald Trump.

China has woven a ‘tapestry’

Josh Kallmer, senior vice president of global policy at the Information Technology Industry Council, said China had woven a “tapestry” of rules and policies that places foreign companies at a disadvantage and incentivizes the transfer of technology.

“It just in general puts a thumb on the competitive scale in a way that significantly and profoundly affects U.S.-based and foreign companies,” said Kallmer, who was representing a coalition of technology groups from semiconductors to software.

The concerns are not new. They were highlighted in the USTR’s last report to Congress on China’s WTO compliance issued on Jan, 1, 2017, and raised in subsequent meetings by Trump administration officials.

USTR Assistant Secretary Edward Gresser told the hearing that there was a growing recognition that WTO rules did not cover all of China’s practices viewed as unfair. The United States and other WTO members needed “to find effective ways to address those Chinese government practices that may violate the spirit of the WTO that nevertheless may not fall squarely within the WTO disciplines,” he said.

For investors, China less attractive

Jeremie Waterman, the U.S. Chamber of Commerce’s vice president for Greater China, said China’s restrictive investment regime and other industrial policies requiring technology transfers in recent years have made China a less attractive place to invest for foreign firms, and not all of these policies can be changed with full WTO compliance.

This has been made worse by China’s “Made in China 2025” plan, which aims to supplant foreign products and technologies with domestic ones and new cybersecurity regulations that put foreign information technology products at a disadvantage, Waterman said.

“The ballast has become less stable in recent years” in the U.S.-China economic relationship, he added.
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Dozens of tourists pack beach chairs at a Tunisian luxury hotel, where everything from the swimming pool to the wall paint, the furniture at the shiny reception hall, the police post at its gate and even its name is new.

Nothing reminds holiday-makers of the day in June 2015 when an Islamic State militant shot dead 39 foreigners in this beach resort, triggering an exodus of tourists from the country and severely damaging its economy.

Now some of those tourists are coming back, thanks to a massive security presence and advertising abroad. Tourism revenues rose 21 percent to $851 million in the first nine months of 2017 compared with last year, central bank data show.

The rise is helping the government weather an economic crisis as it prepares an austere budget and tax increases. The reforms were agreed to with the International Monetary Fund in return for a new $350 million loan.

Hotels fill up

Westerners are still reluctant to come back, even though most countries have lifted travel warnings. But hotels have managed to fill rooms, mostly with Algerians and Russians — the latter avoiding Egypt since Islamic State downed a Russian plane in 2015.

“It’s great here. Security is better than in Egypt,” said Galina Rasputov, a vacationer from Moscow. “I’ll come back.”

Rasputov was taking a break from the beach at the bar of the hotel where a Tunisian gunman trained in Libya opened fire with a Kalashnikov in 2015. The hotel was called Imperial Marhaba then; it reopened this summer after undergoing a facelift and changing its name to the Steigenberger Kantaoui Bay.

“We are fully booked,” said Zohra Driss, who owns this and other hotels in Sousse, a tourist beach town 150 kilometers (90 miles) south of the capital, Tunis. “Many are Russians but we also have Algerians, Germans.”

Attacks in 2015

Tourism accounts for about 8 percent of Tunisia’s gross domestic product, provides thousands of jobs and is a key source of foreign currency, but it has struggled since two major attacks in 2015.

The first, at the Bardo National Museum in Tunis, left 21 tourists dead. The Sousse attack killed 39, mostly British vacationers.

And risks remain. Jihadists are returning from Syria, Iraq and Libya after Islamic State lost most of its territory there.

But the number of foreign tourists rose by 23.4 percent to reach 5.366 million up to September, compared with the same period last year. Officials hope 6.5 million will come in all of 2017, which would be a return to the normal level.

The number of European visitors, however, rose by just 16.5 percent. Major tour operators like Thomas Cook have resumed bookings in select hotels, but the European tourists remain far below their pre-2015 levels.

That has left the industry relying on Algerians, whose numbers rose by 44 percent to 1.8 million up to September.

Almost half a million Russians also came.

“We seek to attract more tourists next year from new destinations like China and Canada while we will still focus on our traditional markets like U.K. and Germany,” said Neji Ben Othman, director general of the tourism ministry.

More security

Tunisia has increased security in Sousse and other tourist spots. Checkpoints were erected on the main roads and at hotels, ancient sites and airports. After police were criticized for a slow response to stop the hotel gunmen, security forces have cracked down on militants, dismantling dozens of cells.

With hotels resembling fortresses, many tourists book “all inclusive” tours that benefit chains and tour operators. But they stay indoors, leaving souvenir traders and cafes idle in the old city. Russians and Algerians, who come by car, also tend to spend less than Germans or Brits, the former clientele.

“Most come only to watch, like in a museum,” said Lutfi Laoun, a vendor who sells traditional pottery. “I haven’t had a single customer today.”
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Ford Motor Co.’s new CEO plans to cut $14 billion in costs, drop some car models and focus the company’s resources on trucks, SUVs and electric vehicles as part of a renewed effort to win over skeptical investors.

Jim Hackett, who became Ford’s CEO in May, met with around 100 investors Tuesday in New York to lay out his plans for the future. He said getting the company lean and flexible will help it handle the changes the auto industry is facing, from car-sharing to self-driving vehicles, to the shift to electric cars.

“I feel a real sense of urgency for what we’re doing here,” Hackett said.

Hackett and his executive team spent the summer reevaluating Ford’s operations after former CEO Mark Fields was ousted in May. Hackett traveled to Russia and Turkey and visited North American plants and Ford’s Silicon Valley research center as part of his review.

He said he was impressed by the talent at Ford, but wants to update factories and speed product development and decision-making. One of his first moves was to pare down the number of people reporting to him. Hackett has eight direct reports, compared to 18 for Fields.

Ford told investors it expects to reduce material costs by $10 billion by 2022 through new deals with suppliers and simpler designs. The company plans to share more parts between vehicles and reduce the options available for configuring a car. For example, customers can now order a Ford Fusion sedan in 35,000 possible combinations. Ford is reducing that to 96.

Ford also says it will cut $4 billion in engineering costs through 2022 by making fewer prototypes and reducing product-development time.

It plans to cut one-third of its engine development costs and redeploy them to electric and hybrid vehicles. Ford plans to introduce 13 new electrics and hybrids over the next five years, including a small electric SUV coming in 2020.

The company plans to reallocate $7 billion from cars to SUVs and trucks. Global demand for those vehicles is rising, and they are critical to Ford’s bottom line. Jim Farley, head of Ford’s global markets, said Ford plans more off-road SUVs like the upcoming Bronco for North America and more low-end small SUVs and seven-passenger SUVs for China.

The automaker plans to cut some cars from its lineup, but didn’t name them Tuesday. Farley said Ford will still offer small cars, like the Focus, but will stick to more expensive — and more profitable — versions.

Smarter vehicles

Ford emphasized that it’s open to new partnerships, such as its recent agreement with Indian automaker Mahindra Group to cooperate on mobility, electric cars and other projects. It is also working with ride-hailing company Lyft on self-driving technology and with China’s Zotye Automobile Co. about an electric car partnership.

The company says its vehicles will get smarter, with 90 percent of its global vehicles getting modem connectivity by 2020. That will allow things like software updates or apps that help drivers find parking. Ford can differentiate itself by offering, say, connected commercial vans that help small businesses keep track of their deliveries.

Marcy Klevorn, Ford’s head of mobility, said Ford launched a medical van service eight weeks ago that can pick up wheelchair-bound patients and take them to the doctor. The service uses Ford-developed software for scheduling appointments, and it will help the company figure out ways that consumers will eventually use self-driving vehicles.

“We have created a box of assets that we can pull out and use for various things,” Klevorn said.

Share price

Ford stuck to its previous guidance for 2017 on Tuesday. The company expects adjusted earnings of $1.65 to $1.85 for the full year. Ford earned $1.76 per share 2016.

Hackett, the former CEO of office furniture company Steelcase Inc., joined Ford’s board in 2013. He briefly led Ford’s mobility unit before being tapped as CEO.

Ford hired Hackett, in part, to turn around its share price, which has languished for the last two years even as rival General Motors Co. saw its shares rise to their highest level in seven years. Ford sunk below Tesla Inc. in market value earlier this year, even though it earned $4.6 billion in 2016 and Tesla has never made a full-year profit.

Ford’s shares rose 2 percent to close at $12.34 Tuesday before Hackett’s presentation. It’s not yet clear if his pitch will improve investors’ confidence.

“Straddling the now and the future will be tricky, especially in terms of profitability,” said Michelle Krebs, an executive analyst for the car-buying site Autotrader.com.

Investors have been critical of Ford for waiting too long to bring a long-range electric vehicle to market, as GM did with the Chevrolet Bolt. They also struggled to understand Ford’s plans to compete on autonomous cars.

“In the past few years, Ford simply hasn’t had a compelling narrative that investors could latch onto,” Barclay’s analyst Brian Johnson wrote in a recent note to investors.
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North Korea’s U.N. ambassador accused the United States on Tuesday of imposing “an economic blockade” on his country and deploying nuclear assets on the Korean Peninsula aimed at toppling leader Kim Jong Un.

Ja Song Nam said the U.S. push for countries to implement what he called “illegal and unjustifiable” U.N. sanctions on North Korea is part of America’s “frantic attempt to completely block our peaceful economy for people’s everyday lives and humanitarian cooperation.”

“The U.S. is clinging to unprecedented nuclear threats and blackmail, economic sanctions and blockade to deny our rights to existence and development, but they only result in our sharper vigilance and greater courage,” he told the General Assembly committee that deals with economic and financial issues.

The U.N. Security Council has imposed its toughest sanctions ever on North Korea in response to its continuing nuclear weapons and ballistic missile tests, with the aim of pressuring Kim’s government into returning to negotiations on denuclearizing the Korean Peninsula.

The measures include a ban on countries importing North Korean coal, iron ore and textiles and new limits on its crucial oil and petroleum product imports. But the economic pressure has had no visible impact on Kim’s government, which appears to be accelerating toward what it says is its goal: putting the entire United States within range of its nuclear weapons.

A week ago, North Korean Foreign Minister Ri Yong Ho told reporters that U.S. President Donald Trump had “declared the war on our country” by tweeting that North Korea’s leadership “won’t be around much longer.” Hours later, the White House pushed back, saying: “We have not declared war on North Korea.”

No regime change

The Trump administration, referring to the tweet, stressed that the U.S. was not seeking to overthrow North Korea’s government. U.S. Cabinet officials, particularly Secretary of State Rex Tillerson, have insisted that the U.S.-led campaign of diplomatic and economic pressure on North Korea is focused on eliminating its nuclear weapons program, not its totalitarian government.

North Korea’s ambassador told the assembly committee that “our people will continue to uphold the line of simultaneous development of the state nuclear force and the economy.”

Ja said the country is committed to implementing U.N. goals to end poverty and preserve the environment by 2030 and said Trump’s announced intention to withdraw the U.S. from the 2015 Paris climate change agreement “illustrates the negative stand of the U.S. towards the sustainable development goals.”

To achieve these goals, Ja said, “we should immediately obliterate the high-handed measures of the U.S., including the sanctions imposed on the developing countries.”

And clearly aiming at the United States and other economic powers, he said the “monopolistic position” of countries that control the monetary and trade system should be destroyed at the same time.
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The recovery of eastern Caribbean islands hardest hit by recent hurricanes, including Dominica, Barbuda, Turks and Caicos, the British Virgin Islands and Anguilla, could cost up to $1 billion, a senior U.N. official said Tuesday.

“It’s going to be a large-scale rebuilding effort that will take time,” said Stephen O’Malley, the U.N. resident coordinator for Barbados and the Organization of Eastern Caribbean States, “and it will be important to do that right.”

He told U.N. correspondents in a phone briefing from Dominica that “we don’t have exact figures yet,” but for the worst-affected islands the recovery bill will be “half a billion to a billion dollars.”

O’Malley said the United Nations, World Bank and Antigua government have conducted a post-disaster needs assessment for Barbuda, whose 1,800 residents were evacuated to Antigua before Hurricane Irma damaged 95 percent of its structures on Sept. 14. And he said a similar assessment will be done in Dominca, which was ravaged on Sept. 18 by Hurricane Maria, a Category 5 storm, probably in about three weeks.

“They want to build back better and they take that very, very seriously — to make sure that that can be done,” O’Malley said.

Making plans for future

Dominica’s Prime Minister Roosevelt Skerrit said he wants to have the world’s first “climate-resilient nation.”

He made an impassioned case for the world to do more to help vulnerable countries cope with the effects of global warming and urged the U.N. General Assembly 10 days ago to “let these extraordinary events elicit extraordinary efforts to rebuild nations sustainably.”

O’Malley said the effects of climate change are evident in the Caribbean, where the sea is heating up.

“The fact that the Caribbean Sea heats up, it intensifies the strengths of hurricanes; it doesn’t necessarily make them more frequent but it intensifies” the storm, he said.

O’Malley said the challenge for the islands in rebuilding is: “How do you protect yourself against that? How do you ensure that you have a resilient state and a resilient economy if you know that the risk factors are going to be elevating in this next period of time?”

Immediate disaster relief critical

As for immediate disaster relief following Hurricanes Irma and Maria, he said, regional efforts and military assistance from outside the region have been critical.

He singled out the Caribbean Disaster and Emergency Management Agency which sent a ship from Barbados to Dominica with initial aid workers the day after Hurricane Maria devastated the island.

When he landed at the airport in Dominica on Tuesday, he said there were policemen from St. Kitts, soldiers from Jamaica and Trinidad and Tobago securing the airport and other sites.

“That has helped the government set itself back up — that regional solidarity,” O’Malley said.

Some ‘green’ returning to Dominica

He said Dominica has also benefited from timely military support, especially helicopters and water desalination plants on naval vessels that produced water that could be taken inland and distributed.

He singled out military help to Dominica from Venezuela, United States, United Kingdom, Canada, France and the Netherlands.

Compared with the situation a week ago, O’Malley said he could already see some green returning to the almost totally brown island, streets were clear, roads were opening up, power and water supplies were being restored and the port was open. Now, he said, power and water need to be restored to everyone on Dominica and the economy needs to start operating quickly.

 
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House Republicans and Democrats on Tuesday grilled Equifax’s former chief executive over the massive data hack of the personal information of 145 million Americans, calling the company’s response inadequate as consumers struggle to deal with the breach. 

Former Equifax CEO Richard Smith apologized for the compromise of such information as names, addresses, birth dates and Social Security numbers. Smith was the lone witness at the first of several Capitol Hill hearings this week. No current Equifax official testified.

“The criminal hack happened on my watch, and as CEO, I am ultimately responsible, and I take full responsibility,” Smith said. “I am here today to say to each and every person affected by this breach, I am truly and deeply sorry for what happened.”

Democrats favor legislation that they say would establish strong data security standards and prompt notification and relief for consumers when their information is hacked. But Republicans tamped down expectations for any congressional action as this year the GOP-led Congress has rolled back several Obama-era rules affecting businesses and the financial sector.

“Equifax deserves to be shamed in this hearing, but we should also ask what Congress has done, or failed to do, to stop data breaches from occurring,” said Rep. Jan Schakowsky, D-Ill.

Rep. Bob Latta, R-Ohio, the chairman of the subcommittee examining the breach, said there are already laws on the books that require companies to secure sensitive consumer data. He said that hearings before four House and Senate panels this week should run their course before lawmakers make a decision about what to do next.

“The big thing we heard today is it was a very human error on their part,” Latta said.

Timeline of breach

Smith offered a timeline of what went wrong, saying the Department of Homeland Security warned the company on March 8 about the need to patch a particular vulnerability in software used by Equifax and other businesses. The company disseminated that warning by email the next day and requested that applicable personnel install the upgrade. The company’s policy requires the upgrade to occur within 48 hours, but that did not occur. The company’s information security department also ran scans on March 15 that did not pick up the vulnerability.

In late July, data security officials noticed suspicious activity on a website, which Smith said “happens routinely around our business.” He said an internal investigation ensued and he was alerted the next day, but he had no knowledge at that time that consumers’ personal information had been accessed.

Lawmakers pressed Smith about company executives selling stock in the company after the suspicious activity had been detected. On August 1 and 2, Equifax Chief Financial Officer John Gamble and two other executives, Rodolfo Ploder and Joseph Loughran, sold a combined $1.8 million in stock.

Smith described the executives as “honorable men, men of integrity.” He said at that point in time the company was unaware that consumer data had been accessed.

Schakowsky said “for a lot of Americans, that just doesn’t pass the smell test.”

Smith said the full extent of what occurred emerged during a meeting he had with cybersecurity experts and outside counsel on August 17. The board was alerted the following week and the public on September 7, after the company had made plans for how it would try to help consumers respond.

‘Damage control’

The timeline laid out by Smith didn’t satisfy many lawmakers, who accused the company of being too slow.

“I worry that your job today is about damage control. You put a happy face on your firm’s disgraceful actions, and then depart with a golden parachute,” said Ben Ray Lujan, D-N.M. “Unfortunately, if fraudsters destroy my constituent’s savings and financial futures, there’s no golden parachute awaiting them.”

Lawmakers said that at one point Equifax tweeted the wrong link for consumers to check to learn if they were part of the breach.

“Talk about ham-handed responses, this is simply unacceptable,” said Rep. Greg Walden, R-Ore.

Smith said he was disappointed in the rollout of call centers and a website designed to help the people affected by the breach. He said the company has increased its number of customer service representatives and the website has been improved. He said more than 400 million consumers contacted the company in the weeks following the announcement of the breach. He said the company wasn’t prepared for that kind of volume.

Lawmakers said they’re getting scores of calls from constituents concerned that their information was stolen and the potential ramifications in the years ahead. Rep. Ryan Costello, R-Pa., said hundreds of constituents have contacted his office about the company’s response.

“The slow rollout and how poorly it was done. To me, it was just inexcusable,” Costello said.
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Indigenous people under threat from companies seeking to develop their land for agriculture, mining and energy projects will be supported with money and practical help through a major global partnership backed by philanthropic and government funding.

The International Land and Forest Tenure Facility is the first initiative to provide grants to advance the rights of indigenous people to help them protect their forest land and resources.

“Creating mechanisms that allow indigenous peoples and local communities to gain tenure over their land or forests is a key way to tackle climate change and inequality,” said Darren Walker, president of the Ford Foundation, a major backer.

Norway pledges $20 million

The facility won a $20 million pledge from Norway on Tuesday when it was launched at a land rights conference in Stockholm.

Indigenous people and rural communities have customary claims to two thirds of the world’s land but are legally recognized as holding only 10 percent, according to the Rights and Resources Initiative (RRI), a global network.

This has contributed to an increase in conflicts over land in countries rich in tropical forests and natural resources as agribusinesses, mining and energy companies lay claim to indigenous land and forests.

Forests help slow global warming

Forests absorb planet-warming carbon dioxide and when they are degraded or destroyed, the carbon stored in the trees is released into the atmosphere. Deforestation accounts for 10 to 15 percent of carbon emissions worldwide.

If the facility invests at least $10 million a year for its first 10 years, experts project an increase in titled, protected and well-managed community and indigenous tropical forests of more than 40 million hectares (100,000 acres), an area roughly the size of Sweden.

Such efforts would also prevent deforestation of one million hectares and the release of 500 million tons of carbon dioxide and help reduce poverty among indigenous people, the RRI said.

“The Tenure Facility provides a powerful solution to save the world’s forests from the ground up,” said Carin Jämtin, director general of the Swedish International Development Cooperation Agency, another key funder.

Pilot projects

The facility has already provided grants and guidance for pilot projects in Indonesia, Mali, Peru, Cameroon, Liberia and Panama.

A 2015 peace accord that ended Mali’s civil war failed to address land-based conflicts that contributed to the war, said Boubacar Diarra, the project’s coordinator in the West African country.

The facility helped to set up 17 local land commissions to sort through conflicting claims to determine who owns the land, he said.

“These commissions have reduced conflicts by up to a third by working with local villagers and tribal leaders,” Diarra told the Thomson Reuters Foundation.
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The European Union insisted Tuesday that Brexit negotiations with Britain will not move on to the question of future relations until enough progress has been made on divorce issues, such as how much the country’s exit bill should be.

Britain desperately wants talks to move on to future trade and security arrangements but EU Commission President Jean-Claude Juncker said that more needs to be done on the withdrawal issues first.

Juncker told the European Parliament that “we have not made the sufficient progress needed” and the legislators backed him, approving a resolution underscoring the same point with a vote of 557 to 92 with 29 abstentions. It further underscored the unity of the 27 EU nations as they face off with Britain in the talks.

The EU wants London to commit to guaranteeing the rights of EU citizens already in Britain, making sure border posts do not reappear between the U.K.’s Northern Ireland and Ireland itself and pay up for everything it had agreed to while it was a member.

Juncker said “the taxpayers in the EU 27 should not pay for the British decision” to leave, while the bloc’s chief negotiator, Michel Barnier, said “serious differences remain” on how many bills the U.K. still has to settle. Estimates vary widely from 20 billion euros ($27 billion) to over three times that amount.

“Serious rifts remain, especially on the financial settlement,” Barnier said. “We will not pay at 27 what has been decided at 28, it is simple as that.”

The parliamentary resolution called for postponing any move to widen the talks with Britain unless “a major breakthrough” takes place during the fifth round of negotiations in Brussels next week.

Observers said decisive progress was highly unlikely. Tuesday’s moves further dampened hopes that the EU leaders might give the green light to an expansion in the talks at a summit on Oct 19-20.

Many lawmakers were also dismissive of Britain’s Conservative government, which is widely seen as insecure and bumbling.

The head of the biggest party group in the European Parliament called for the sacking of British Foreign Secretary Boris Johnson for stoking confusion over the Brexit talks.

The European People’s Party chairman, Manfred Weber, appealed to Prime Minister Theresa May: “Please sack Johnson, because we need a clear answer who is responsible for the British position.”

Weber turned Henry Kissinger’s famous observation about the many leaders in the EU onto Britain: “Who shall I call in London? Who speaks for the government? Theresa May, Boris Johnson, or even (Brexit negotiator) David Davis?”

Others are speculating that Britain might actually be stalling to make sure that the member states that trade heavily with the U.K. would buckle and concede at the last moment, sowing discord among the 27.

EPP member Tom Vandenkendelaere said the strong backing of the resolution proved differently. “If the Brits they can play their old divide-and-rule game, they’d better think again,” he said.
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After several years of struggling to make a living doing odd jobs in and around his village, 26-year-old Pushkar Singh came to New Delhi from the northern Uttarakhand state three months ago to hunt for a job.

The high school dropout is willing to do anything — cook, work as a security guard, a peon in an office. But not only has he failed to secure a job, he has not even got an interview so far.

“It’s a huge worry, not having work,” said a despondent Singh as he wondered how long he can continue staying with his relatives.

The hopes of young people like Singh had been fueled by Prime Minister Narendra Modi’s promise of creating millions of jobs for the country’s huge young population when he took power in 2014. Optimism rose after India won the tag of the world’s fastest growing economy. 

But the Indian economy has hit a sharp slowdown, leaving tens of thousands of people struggling to find work in mega cities like New Delhi, which are magnets for migrant labor.

The economy clocked a growth rate of 5.7 percent in the April to June quarter, its most sluggish pace in three years.

The bleak number has set alarm bells ringing and raised fears that India could struggle to return to a high growth path.

“It is a cause for concern, the economy has slowed down much more than most had expected,” said D.K. Joshi, Chief Economist at rating agency Crisil in Mumbai.

Reasons for the slowdown

The slowdown has prompted critics to accuse Modi’s government of economic mismanagement.

Most attention has turned to two major measures that have disrupted the economy in the last year. Critics have slammed the government for imposing a currency change last November to flush out illegal cash, saying it slowed down businesses amid massive currency shortages and gave an unnecessary shock to a cash dependent economy.

In July, India implemented a long overdue and widely welcomed tax reform — a goods and services tax (GST) meant to clean up a complex tax regime and make it easier to do business.

But many worry that faulty implementation and multiple tax rates have created confusion for businesses struggling with the new system.

Economists point out that the currency change and GST, coming within months of each other, have made the slowdown sharper and deeper for virtually all sectors of the economy, which had already started losing pace last year.

The impact is evident in the markets of the Indian capital, which are usually the most crowded at this time of the year. It is India’s main festive season, when consumer spending hits a high. But shop owners are disappointed because customers are not opening their wallets easily.

A usually buzzing upmarket area in New Delhi wears a deserted look. Manu Talwar, the owner of a shop selling high-end mobile phones, has been struggling to make a sale in a country counted as the world’s fastest growing smart phone market, where a new device is coveted by an aspirational generation. 

“You can see the market, it does not look like Diwali, the market is so down. Mobiles, accessories, people were crazy about it. As of now, iPhone 8 has launched, but there is no market,” said Talwar.

The government says it is looking for ways to rev up the economy — according to reports, it is considering spending billions of dollars to give investment a push.

Prime Minister Modi, seen as a business-friendly, reformist leader, recently announced the formation of a five-member panel to advise him on economic issues.

At the heart of the challenge is the need for jobs in a country where about 10 million enter the workforce every year. Modi had hoped to give manufacturing a push to create jobs for low-skill labor, but a flagship “Make in India’ program he launched to woo foreign investors has yet to show significant results. And a slowing economy means that jobs are even being lost in several sectors.

“To think of an overall manufacturing push of the kind China gave, or many East Asian economies that we observed in those economies, that does not seem to be a reality in India. There is a lot of ground to cover to reach that level,” said economist Joshi.

Officials are striking an optimistic note, calling the slowdown transitory, but economists warn recovery will be gradual.

That means Pushkar Singh’s hunt for a job and shop owner Manu Talwar’s hopes of the market picking up may not happen anytime soon.
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With more and more consumers shopping online, do brick-and-mortar stores stand a chance?

At least for one pop-up shop in New York City, the future of retail is about embracing digital trends rather than resisting them.

Mastercard and Marie Claire magazine have teamed up to create “The Next Big Thing” concept shop, a pop-up store in SoHo that brings the convenience of online shopping to a physical storefront.

Industry insiders aren’t discounting physical stores just yet.

“I’m a big believer in the physical store and I think when you look at just pure volume of sales, you still see a majority of that happening in a physical environment,” said Stephane Wyper, senior vice president of Internet of Things partnerships and commercialization at Mastercard.

For its part, Mastercard is taking cues from the online world and making transacting as seamless as possible.

“We look at solving for one very key point of friction, which is how do I reduce the amount of time that somebody has to wait and actually go through the checkout process,” Wyper said.

Window-shopping is interpreted literally here, with a touchscreen display built into the store window which lets users get their retail therapy fix any time of day. Passersby can browse, select and pay for clothes without stepping foot inside. Payment is made via an accompanying store app that’s powered by Mastercard.

Inside, fitting rooms also allow for cashless check out and payment via touchscreen mirrors created by Oak Labs.

Technology is allowing brick-and-mortar stores to respond swiftly to ever-changing consumer tastes.

“In the online world where you can track page views, click-throughs, we can track impressions, discoveries, dwell time, and provide that real-time data analytics,” said Phillip Raub, co-founder of b8ta. The retail tech startup was part of the concept shop and had several consumer electronics on display.

Tech startup b8ta uses cameras to measure foot traffic and time spent looking at products. Tabletop tablets display product information and marketing that vendors can change on the fly.

“Physical retail is probably the #1 biggest area of opportunity for brand product and awareness . . . the future really is looking at how do you start monetizing the space and the services that you provide, in addition to the fact that you can purchase products,” said Raub.

Not to be left out is the social experience of shopping.

“This is a playground for women,” said Nancy Berger, publisher of Marie Claire, “It really brings together, in a social way, interesting women so that they can experience this all together. And I think that sense of community is really going to be an important part of this experience.”

The pop-up store runs until Oct. 12 and has hosted several events such as makeovers, food samplings and talks on health and wellness.

By bringing digital convenience and know-how into a physical store, organizers are showcasing a 2.0 version of brick-and-mortar retail.

“It’s really an opportunity, when you look at the Internet of Things and these connected devices, to really leverage those, to really redefine what the physical store could be,” Wyper said.
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Even though gasoline-powered SUVs are what people are buying now, General Motors is betting that electric vehicles will be all the rage in the not-to-distant future.

The Detroit automaker is promising two new EVs on Chevrolet Bolt underpinnings in the next 1 ½ years and more than 20 electric or hydrogen fuel cell vehicles by 2023. The company sees its entire model lineup running on electricity in the future, whether the source is a big battery or a tank full of hydrogen.

“We are far along in our plan to lead the way into that future world,” product development chief Mark Reuss said Monday at a news conference at the GM technical center north of Detroit.

The event was billed as a “sneak peak” into GM’s electric future. The company also pledged to start producing hydrogen fuel cell vehicles for commercial or military use in 2020. And it promised an increase in the number of electric fast-charging stations in the U.S., which now total 1,100 from companies and governments, taking a shot at electric competitor Tesla Inc. by saying the system would not be “walled off” from electric vehicles made by other manufacturers.

Tesla has 951 fast-charging stations globally that can only be used by Tesla owners.

The hastily called event was short on specifics, and it came just a day before the CEO of Ford Motor Co., GM’s prime competitor, was to announce its business plan that likely will include electric and autonomous vehicles as priorities.

The two new GM electrics in the immediate future likely will be SUVs or a sportier car designed to compete with Tesla’s upcoming Model 3 sedan, Reuss said. The Model 3, which is now in the early stages of production, will go hood-to-hood with the Bolt, starting around $35,000 (excluding a $7,500 federal tax credit) with a range of over 200 miles. The Bolt starts at $37,495 excluding the credit.

Behind Reuss and other executives were nine vehicles covered with tarps that the company said were among the 20 to be unveiled by 2023. GM pulled away the tarps on three of them, clay models of low-slung Buick and Cadillac SUVs and a futuristic version of the Bolt that looked like half of an airport control tower glued to the top of a car body. The rest remained covered.

The company wouldn’t allow photographs of the vehicles, and it wouldn’t say if any of the vehicles it showed were the ones coming in the next 18 months.

Reuss said the new vehicles that aren’t built on the Bolt platform will have GM’s next-generation electric architecture, which he said will be more efficient with longer range than the Bolt’s 238 miles. Through August, GM has sold 11,670 Bolts, which is less than 1 percent of GM’s total U.S. sales so far this year.

Reuss promised that the new vehicles will be profitable as people become more accustomed to the advancing technology. “We can’t just flip a switch and make the world go all-electric,” he said.
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U.S. factory activity surged to a more than 13-year high in September amid strong gains in new orders and raw material prices, pointing to underlying strength in the economy even as Hurricanes Harvey and Irma are expected to dent growth in the third quarter.

The economic outlook was also bolstered by other data on Monday showing a rebound in construction spending in August. The acceleration in manufacturing activity and the accompanying increase in prices could harden expectations that the Federal Reserve will raise interest rates in December.

The Institute for Supply Management (ISM) said its index of national factory activity surged to a reading of 60.8 last month, the highest reading since May 2004, from 58.8 in August.

A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12 percent of the U.S. economy. The ISM said Harvey and Irma had caused supply chain and pricing issues in the chemical products sector. There were also concerns about the disruptive impact of the storms in the food, beverage and tobacco products industries.

The hurricanes are expected to chop off as much as six-tenths of a percentage point from gross domestic product growth in the third quarter. Harvey, which pummeled Texas at the end of August, has undercut consumer spending and weighed on industrial production, homebuilding and home sales.

Further weakness is likely after Irma struck Florida in early September, causing widespread power cuts. Manufacturing outside the areas affected by the hurricanes remained strong in September. The ISM survey’s production sub-index rose 1.2 points to a reading of 62.2 in September.

A gauge of new orders jumped to 64.6 in September from 60.3 in August. Factories reported paying more for raw materials, with the survey’s prices paid index surging 9.5 point to 71.5, the highest reading since May 2011.

The dollar rose against the euro after the data. Prices for U.S. Treasuries were trading higher as were stocks on Wall Street.

Construction spending rises

In separate report Monday, the Commerce Department said construction spending rose 0.5 percent to $1.21 trillion. July’s construction outlays were revised sharply down to show a 1.2 percent plunge instead of the previously reported 0.6 percent drop. Construction spending increased 2.5 percent on a year-on-year basis.

The government said Harvey and Irma did not appear to have impacted the construction spending data as the responses from the Texas and Florida areas affected by the storms were “not significantly lower than normal.”

In August, spending on private residential projects increased 0.4 percent, rising for a fourth straight month.

Spending on nonresidential structures increased 0.5 percent, snapping two straight monthly declines.

In the wake of Harvey and Irma, nonresidential construction spending could fall in September. According to the Commerce Department, Texas and Florida accounted for 22 percent of U.S. private nonresidential construction spending in 2016.

Investment in nonresidential structures such as oil and gas wells has been slowing as the boost from recovering oil prices fizzles. Private construction projects spending increased 0.4 percent in August.

Outlays on public construction projects rebounded 0.7 percent in August after slumping 3.3 percent in July. Spending on state and local government construction projects increased 1.1 percent in August. Gains in September are likely to be curbed by the hurricanes.

Texas and Florida accounted for 15 percent of U.S. state-and-locally owned construction spending in 2016, according to the Commerce Department.

Federal government construction spending tumbled 4.7 percent to its lowest level since April 2007.
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The U.S. Supreme Court on Monday refused to consider a bid by Samsung Electronics Co Ltd. to force customers who have filed proposed class-action lawsuits against the company to arbitrate their claims instead of bringing them to court.

The justices left intact a lower court’s ruling that purchasers of certain Galaxy smartphones made by the South Korean electronics company were not bound by a warranty provision that compelled arbitration of customer complaints.

Warranties with arbitration clauses have become common in consumer electronics and other industries. Courts and regulatory agencies increasingly are scrutinizing arbitration agreements that seek to limit options for resolution of future disputes.

The Samsung case involves two smartphone buyers from California who separately filed proposed class-action lawsuits in 2014 over concerns about the products’ performance and resale value.

Neither Daniel Norcia, who owned an Galaxy S4 device, nor Hoai Dang, who owned an SIII, saw the arbitration provisions when they bought the phone because the language was placed deep inside the warranty booklet and not mentioned on the box, according to their legal papers.

The agreement states that all disputes must be resolved through arbitration, and specifically rules out class actions.

Samsung tried to force the customers to arbitrate their claims, but a unanimous three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco denied the request in January. The court said Samsung did not provide proper notice of the arbitration provision and neither customer had expressly consented to be bound by it.

Appealing to the Supreme Court, Samsung noted that the 9th Circuit decided that the warranty was valid except for the arbitration provision. Samsung argued that the 9th Circuit ruling violated a U.S. law called the Federal Arbitration Act that requires arbitration agreements to be treated equally with other contracts.
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Casinos in the world’s biggest casino hub of Macau extended a 14-month winning streak in September with revenue up 16.1 percent, priming for a bumper national holiday week, which is expected to see strong visitor traffic in the southern Chinese territory.

Macau, a former Portuguese colony and now special administrative region, is the only place in the country where casino gambling is legal.

Government data Sunday showed monthly gambling revenue was 21.4 billion patacas ($2.66 billion) in September, within analyst expectations of growth between 11-17 percent.

Two typhoons

September saw the tail end impact from two typhoons in August, which caused massive destruction and unprecedented flooding.

Many casinos shut down for several days and had problems accessing fresh water and power, but big resorts on Macau’s Las Vegas style Cotai strip were left relatively unscathed.

Macau’s government this week will release a 15-year plan to boost tourism with key objectives including rebranding Macau into a multiday destination and managing local tourism capacity.

Typically during national holidays, Macau’s tiny peninsula and adjoining islands are inundated with swarms of visitors putting pressure on creaking infrastructure and transport. 

Casino executives have said that hotels are fully booked for the official holiday period, Oct. 1-8.
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An official survey released Saturday said that China’s factory activity expanded in September at the fastest pace in five years, as the country’s vital manufacturing sector stepped up production to meet strong demand.

The official manufacturing purchasing managers’ index rose to 52.4 in September, up from 51.7 in the previous month and the highest level since April 2012.

The report by the Federation of Logistics & Purchasing said production, new export orders and overall new orders grew at a faster pace for the month.

“The manufacturing sector continues to maintain a steady development trend and the pace is accelerating,” said Zhao Qinghe, senior statistician at the National Bureau of Statistics, which released the data. Zhao noted that the report found both domestic and global demand have improved.

However, in a separate report, the private Caixin/Markit manufacturing PMI slipped to 51.0 from 51.6, as factories reported that production and new orders expanded at slower rates last month.

Both indexes are based on a 100-point scale with 50 dividing expansion from contraction. But the federation’s report is focused more on large, state-owned enterprises while the Caixin survey is weighted to smaller, private companies.

Another official index covering non-manufacturing activity rebounded after two months of contraction, rising to 55.4 last month from 53.4 in August. That indicates momentum is picking up again in China’s service sector.

The reports come ahead of the ruling Communist Party’s twice-a-decade congress set for next month, where top leaders will be reshuffled and authorities will outline economic policies.

Earlier this month, rating agency Standard & Poor’s downgraded China’s credit rating on government borrowing, citing rising debt levels that raise financial risks and could drag on economic growth.
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Nearly all U.S. taxpayers say American tax law, which runs tens of thousands of pages, is an incredibly complicated, annoying mess. And there is no agreement on how to fix the problem. Republicans recently outlined a new effort they say will be clearer, fairer and helpful to the economy. Critics say the Republican plan would cut taxes for the rich and increase the U.S. debt. VOA’s Jim Randle looks at how the system is supposed to work, and what critics say is wrong.
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Christine Lagarde, the head of the International Monetary Fund, has a message for the world’s central bankers: Don’t be Luddites.

Addressing a conference in London on Friday, Lagarde said virtual currencies, which are created and exchanged without the involvement of banks or government, could in time be embraced by countries with unstable currencies or weak domestic institutions.

“In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money,” she said. “The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve.”

The most high-profile of these digital currencies is bitcoin, which like others can be converted to cash when deposited into accounts at prices set in online trading. Its price has been volatile, soaring over recent years but falling sharply earlier this month on reports that China will order all bitcoin exchanges to close and one of the world’s most high-profile investment bankers said bitcoin was a fraud.

For now, Lagarde said, digital currencies are unlikely to replace traditional ones, as they are “too volatile, too risky, too energy intensive and because the underlying technologies are not yet scalable.”

High-profile hacks have also not helped, she noted. One notable failure was that of the Mt. Gox exchange in Japan in February 2014, in which about 850,000 bitcoins were lost, possibly to hackers. Following that, Japan enacted new laws to regulate bitcoins and other cryptocurrencies.

But in time, she argued, technological innovations could address some of the issues that have kept a lid on the appeal of digital currencies.

“Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays, so I think it may not be wise to dismiss virtual currencies,” Lagarde said.

Lagarde’s comments appear at odds with the views of JPMorgan Chase CEO Jamie Dimon, who this month described bitcoin as a fraud and said he’d fire any of his traders if they caught dealing in the digital currency.

In a speech laying out the potential changes wrought by financial innovations, Lagarde also said that over the next generation, “machines will almost certainly play a larger role” in helping policymakers, offering real-time forecasts, spotting bubbles, and uncovering complex financial linkages.

“As one of your fellow Londoners – Mary Poppins – might have said: bring along a pinch of imagination!”
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The government has fined U.S. tree-trimming company a record $95 million for knowingly hiring undocumented immigrants.

U.S. prosecutors said the fine against Philadelphia-based Asplundh Tree Expert Co. was the largest criminal penalty ever imposed in an immigration case.

Prosecutors said company managers deliberately looked the other way while supervisors knowingly hired thousands of undocumented workers between 2010 and 2014.

The prosecutors said this gave Asplundh a large workforce ready to take on emergency weather-related jobs across the country, putting its competitors at an unfair disadvantage.

A federal investigation into Asplundh was opened in 2015 and the company said it had since taken a number of steps to end “the practices of the past.”

“We accept responsibility for the charges as outlined, and we apologize to our customers, associates and all other stakeholders,” company Chairman Scott Asplundh said.
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Senegalese start-ups are testing a fledgling market for online music platforms in French-speaking West Africa, where interest in digital entertainment is growing but a lack of credit cards has prevented big players from making inroads.

Long celebrated in Europe for their contribution to “world” music – with Mali’s Salif Keita, Senegal’s Youssou N’Dour and Benin’s Angelique Kidjo household names in trendy bars – West African musicians have struggled to make money back home, where poverty is widespread and music piracy rampant.

Online music providers such as Apple’s download store iTunes and streaming service Spotify are either unavailable – no one can sign up for Spotify in Africa yet – or require a credit card or bank account, which most West Africans lack.

But smartphone use is surging and entrepreneurs say there is latent demand for platforms tailored to Francophone West Africa, whose Malian “desert blues,” Ivorian “zouglou” and Senegalese “mbalax” cross African borders but are only profitable in Europe, via download and streaming services.

“We started by saying, look, there is a void. Because digital distribution products are made in Europe or the U.S., for Europeans and Americans.” said Moustapha Diop, the founder and CEO of MusikBi, “The Music” in the local Wolof language, a download store launched in 2016.

MusikBi, like its rivals, is small and cash strapped, but with more than 10,000 users, Diop sees potential.

The company received a boost in May when Senegalese-American singer Akon bought 50 percent of it, which Diop says will allow the company to start a new marketing campaign.

MusikBi and rival JokkoText allow users to purchase songs by text message and pay with phone credit, mobile money or cash transfers. Both want to expand throughout West Africa.

Many of the new industry entrants like MusikBi and JokkoText are based in Dakar, which is an emerging tech start-up hub for Francophone West Africa, partly thanks to the fact it has enjoyed relative political and economic stability compared with most of its neighbors.

On the streaming front, Deedo, created by a Senegalese national in France and backed by French bank BPI, will launch in Senegal, Mali, Ivory Coast and France next month, and will offer similar payment options. Senegalese hip-hop group Daara J plans o start a streaming platform next year.

There is scant industry presence elsewhere in the region except in Anglophone Nigeria, Africa’s most populous nation.

Pirates to Payers

Every evening young people jog down Dakar’s streets with headphones in their ears. Most download music illegally online or buy pirated CDs and USB memory sticks in street markets.

Convincing them to pay for content is a challenge, but not an insurmountable one, analysts say.

“Experience shows that people are willing to pay for convenience,” said David Price, director of insight and analysis at London-based industry federation IFPI.

“If you give them something attractive and affordable, they stop pirating,” he said, adding that local platforms have gained followings in Latin America and India.

France’s Deezer has also targeted the region in partnership with mobile operator Tigo, but has not gained a large following. Deedo meanwhile plans to launch a version of its site in Pulaar, one of West Africa’s most widely spoken a languages, founder Awa Girard told Reuters.

Senegalese singer Sahad Sarr told Reuters he had sold some songs on MusikBi and was excited about Deedo, but added: “The culture here is not to buy music online. Change will be slow.”

Most of his listeners on Spotify and other platforms are Senegalese people living in Europe or North America, he said.

At Dakar’s main university, students showed Reuters the many websites they use to download music illegally.

Some said they would pay for a good service, but others were less convinced, like 22-year-old Macodou Loum. “Between two choices, free and not free, we will choose the free one,” he said.
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