China plans to raise the speed of its bullet trains back up to 350 kph (217 mph), state media reported on Thursday, six years after a deadly high-speed rail crash prompted authorities to slow trains across the country.

Trains on China’s high-speed rail network are designed to travel up to 350 kph, but Beijing ordered speeds to be cut to between 250-300 kph in 2011 after over 30 people were killed in a train crash in eastern Zhejiang province.

The Beijing News said the government planned to implement the increased speeds between Beijing and Shanghai in September, which would cut travel time to 4.5 hours from up to 6 hours currently.

China’s newest “Fuxing” bullet trains, which were unveiled in June and are capable of top speeds of 400 kph, will be used for that journey, it said.

China is home to the world’s longest high-speed rail network which competes heavily with domestic airlines. Of China’s 31 provinces and regions, 29 are served by high-speed rail with only the regions of Tibet and Ningxia in the northwest yet to be connected.
…

Intel’s more than two decade-long reign as the king of the silicon-based semiconductor is poised to end Thursday when South Korea’s Samsung Electronics elbows the U.S. manufacturer aside to become the leading maker of computer chips.

Samsung reported record-high quarterly profit and sales Thursday. Analysts say it likely nudged aside Intel in the April-June quarter as the leading maker of semiconductors, the computer chips that are as much a staple of the 21st century wired world as crude oil was for the 20th century.

Samsung said its semiconductor business recorded 8 trillion ($7.2 billion) in operating income on revenue of 17.6 trillion won ($15.8 billion) during the April-June period.

Intel, which reports its quarterly earnings later Thursday, is expected to report $14.4 billion in quarterly revenue.

On an annual basis, Samsung’s semiconductor division is widely expected to overtake Intel’s sales this year, analysts at brokerages and market research firms say.

Mobile devices and data are the keys to understanding Samsung’s ascent as the new industry leader, even as its de facto chief is jailed, battling corruption charges, and it recovers from a fiasco over Galaxy Note 7 smartphones that had to be axed last year because they were prone to catch fire.

Manufacturers are packing more and more memory storage capacity into ever smaller mobile gadgets, as increased use of mobile applications, connected devices and cloud computing services drive up demand and consequently prices for memory chips, an area dominated by Samsung.

Just as Saudi Arabia dominates in oil output, Samsung leads in manufacturing the high-tech commodity of memory chips, which enable the world to store the data that fuels the digital economy.

“Data is the new crude oil,” said Marcello Ahn, a Seoul, South Korea-based fund manager at Quad Investment Management.

For over a decade, Samsung and Intel each ruled the market in its own category of semiconductor.

Intel, the dominant supplier of the processors that serve as brains for personal computers, has been the world’s largest semiconductor company by revenue since 1992 when it overtook Japan’s NEC.

Samsung is reaping the rewards of dominating in the memory chip market which is growing much faster than the market for computers that rely on processing units dominated by Intel, said Chung Chang Won, a senior analyst at Nomura Securities.

“Greater use of smartphones and tablet PCs instead of computers is driving the rise of companies like Samsung,” Chung said.

Since 2002, Samsung Electronics has been the largest supplier of memory chips, called DRAMs and NANDs. But for years demand for memory chips was vulnerable to boom and bust cycles depending on output and on demand from the consumer electronics industry. At times, competition was brutal as supply gluts arose.

That changed in 2012 when Japan’s Elpida filed for bankruptcy and was sold to Micron Technology, leaving only three major suppliers of DRAM, a type of memory chip used in servers, computers and handsets: Samsung Electronics, SK Hynix and Micron.

Tight supplies coupled with rock solid demand have pushed prices of memory chips higher, with average selling prices of DRAMs and flash memory chips doubling over the past year, bringing South Korea’s memory chip makers record wide profit margins. Both Samsung and SK Hynix are expected to report all-time high profits this year.

Amid this boom that analysts call a memory chip “super cycle,” global semiconductor revenue is forecast to jump 52 percent this year, reaching $400 billion for the first time, according to market research firm Gartner.

For the full year, Intel is expected to post $60 billion in annual sales, according to a market consensus polled by FactSet, a financial data provider. Samsung Electronics’ semiconductor business is expected to report 71.9 trillion won ($62.6 billion) in full-year revenues.

Looking ahead, Samsung and SK Hynix, which control more than three quarters of the global DRAM sales, are raising their spending on semiconductor capacity and development in anticipation of robust future demand. SK Hynix raised its capital spending to 9.6 trillion won ($8.6 billion) this year, up more than 50 percent from last year. Samsung has said it plans to spend $18 billion in the next four years to expand memory chip production capacity at its South Korean plants.

Not just tech companies but also transport, retail, tourism, food and other industries are seeking ways to better use or manage data, to gain insights on trends or customer preferences and otherwise make money from “big data.” The rising use of vehicle connectivity and the “internet of things” is expected to drive still further demand for the chips that have helped Samsung move ahead, at least for now.
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Amazon is introducing express delivery to Singapore in its first direct effort to tap into surging online shopping in fast-growing Southeast Asia.

The American e-commerce company announced Thursday it will begin operating a distribution facility bigger than a football field in the wealthy island nation. It promises to deliver tens of thousands of types of items within two hours for free, if customers spend at least 40 Singapore dollars ($29.52).

 

That’s a step up from past international shipping options offered by Amazon, where items sometimes took weeks to arrive.

 

Amazon is late to capitalize on the region’s rising middle class. The biggest local competitor is Lazada, which is backed by Chinese giant Alibaba and launched in the region in 2012. It operates in Indonesia, Malaysia, Thailand, the Philippines, Vietnam and Singapore.

 

Henry Low, the Asia Pacific director of Amazon Prime Now, said the company is keen to expand elsewhere in Southeast Asia, a market of more than 600 million people.

 

“I’m super excited about future possibilities,” Low said.

 

The number of internet users in Southeast Asia is expected to rise from 260 million now to 480 million by 2020, according to research by Google and state-owned investor Temasek Holdings. It forecasts that the value of e-commerce in the region will soar to 88 billion by 2025 from 5.5 billion in 2015.

 

“The offline-to-online shift will continue and we strongly believe in the great success of e-commerce [with] the rising middle class in many Southeast Asian markets,” said Hanno Stegmann, chief executive of the Asia Pacific Internet Group, the Asian arm of Rocket Internet, which founded Lazada.

 

As Amazon gears up in Singapore, Rocket Internet already is looking at other emerging markets. Its current focus is on Daraz, an e-commerce platform aimed at the 400 million people living in Myanmar, Pakistan and Bangladesh.

 

Still, there’s plenty of room for growth in Southeast Asia, where e-commerce accounts for only 2.6 percent of the retail market, said Sebastien Lamy, a partner at management consultancy Bain & Company.

 

That’s compared with 15 percent to 25 percent seen in the U.S. and China.

 

Even if online commerce is just getting started, it’s already having an impact in Singapore, whose glitzy malls are the backbone of the local economy and tourism.

 

Mall vacancies along Orchard Road and in other areas are rising, abandoned by shoppers like Rahil Bhagat, a content producer.

 

Rahil started buying video games and accessories online from the U.S. in 2009. Now, he makes 75 percent of his purchases, from car parts to quinoa, online.

 

“Physical shopping has lost its appeal,” he told the AP. “Even if I visited a brick-and-mortar store, I would be checking online to see if it’s cheaper. It usually is.”

 

 
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Leaders of the U.S. central bank said Wednesday that they were holding their benchmark lending rate at a low level — in a range between 1 and 1.25 percent — for the time being.  

Federal Reserve officials said in a report issued after their two-day policy meeting that the world’s largest economy was growing at a “moderate” pace and the job market was improving, but that inflation remained a bit low.

The chief economist of Stifel Fixed Income, Lindsey Piegza, said the Fed appeared eager to raise interest rates back to a more “normal” level and might well approve an increase at its next meeting in September. Sara Johnson of IHS Markit said the next rate hike likely would be in December.

Fed officials cut short-term interest rates to nearly zero during the 2007-09 financial crisis to boost investment and growth. They said the recovering economy no longer needed so much help, so they have been gradually raising interest rates and are expected to boost them further in the future.

In a VOA interview, Piegza said keeping rates too low for too long might prompt investors to seek better returns by putting money into excessively risky areas.

During the recession, the Fed also tried to boost growth by cutting long-term interest rates, with a complex program that involved purchasing huge amounts of securities.  

Fed officials said they would keep these assets for the time being but indicated they would begin selling them off “relatively soon.” Fed officials have said they will take care to reduce these assets in a gradual way that will not disrupt markets.
…

U.S. Treasury Secretary Steven Mnuchin on Wednesday urged federal lawmakers to raise the federal debt limit before they leave Washington for their August recess to avoid increased interest costs to taxpayers and market uncertainty about a potential default.

Mnuchin told a Senate Appropriations subcommittee that maintaining U.S. creditworthiness was of “utmost importance” and that the United States must pay its bills on time.

“As I’ve suggested in the past, based upon our best estimate at the time, we do have funding through September, but I have urged Congress to take this up before they leave for the recess,” Mnuchin said.
…

Foxconn, a Taiwanese electronics manufacturer and major supplier to Apple Inc., has announced plans to build a $10 billion plant in the U.S. state of Wisconsin, to make LCD display screens.

The company, formally known as Hon Hai Precision Industry and which supplies Apple with screens for the iPhone, made the announcement Wednesday as company executives paid a visit to U.S. President Donald Trump in the White House.

Trump said at the meeting that the Foxconn commitment was a result of his election win. And, in fact, just two days after Trump was inaugurated, Foxconn Chief Executive Terry Gou told reporters his company plans to invest $7 billion in a U.S. factory to make computer displays.

 “If I didn’t get elected, he definitely would not be spending $10 billion,” Trump said on Wednesday. “We are going to have some very, very magnificent decades.”

In addition to Trump, Vice President Mike Pence and Wisconsin Governor Scott Walker, who said the project will be the largest economic development project in Wisconsin history, were at the White House event.

Foxconn has pledged to invest $10 billion over the next four years to build a factory that will create a projected 3,000 jobs with a potential to add 10,000 more, the company said in a statement.

But Foxconn made a similar pledge for a factory in Harrisburg, Pennsylvania, in 2013, promising it would invest $30 million and hire 500 workers for a plant to be built there. The deal was widely praised by state and local officials, but the factory was never built.

The Washington Post reported that Gou made similar announcements about planned projects in Indonesia, India, Vietnam and Brazil. In some cases, projects have begun, but fallen far short of the expansive results Gou promised.

Foxconn also has a history of worker safety issues and labor unrest. The company got unwanted international attention in 2010 when, between March and May of that year, 10 workers at Foxconn’s Shenzhen committed suicide. Foxconn’s Shanxi site was the site of a four-hour worker riot in September 2012 that involved some 2,000 people. It was eventually quelled by security personnel.

Apple has defended its supplier, but an audit it requested by the Fair Labor Association found that Foxconn workers were subjected to forced overtime, frequent accidents and unrealistic production quotas.

VOA’s Jim Randle contributed to this report.
…

The European Union warned on Wednesday that it was ready to act within days to counter proposed new U.S. sanctions on Russia, saying they would harm the bloc’s energy security.

Sanctions legislation overwhelmingly approved by the U.S. House of Representatives on Tuesday has angered EU officials: they see it as breaking transatlantic unity in the West’s response to Moscow’s annexation of Crimea from Ukraine in 2014 and its support for separatists in eastern Ukraine.

Brussels also fears the new sanctions will harm European firms with connections to Russia, and oil and gas projects on which the EU is dependent.

“The U.S. bill could have unintended unilateral effects that impact the EU’s energy security interests,” EU chief executive Jean-Claude Juncker said in a statement issued after a meeting at which European commissioners were united in their views, according to a senior EU official.

“If our concerns are not taken into account sufficiently, we stand ready to act appropriately within a matter of days. ‘America First’ cannot mean that Europe’s interests come last,” he said, mentioning President Donald Trump’s guiding slogan.

A EU document prepared for the commissioners, seen by Reuters, laid out the EU’s plans to seek “demonstrable reassurances” that the White House would not use the bill to target EU interests.

The bloc, it says, will also prepare to use an EU regulation allowing it to defend companies against the application of extraterritorial measures by the United States.

If diplomacy fails, Brussels plans to file a complaint at the World Trade Organization. “In addition, the preparation of a substantive response that would deter the U.S. from taking measures against EU companies could be considered,” it says.

However, most measures taken by Brussels would require approval from all 28 EU member governments, which could expose potential differences in individual nations’ relations with Moscow and Washington.

Despite changes to the U.S. bill that took into account some EU concerns, Brussels said the legislation could still hinder upkeep of the gas pipeline network in Russia that feeds into Ukraine and supplies over a quarter of EU needs. The EU says it could also hamper projects crucial to its energy diversification goals, such as the Baltic Liquefied Natural Gas (LNG) project.

The new sanctions target the disputed Nord Stream 2 project for a new pipeline running from Russia to Germany under the Baltic Sea. But the EU note says: “the impact would in reality be much wider.”

A list prepared by the EU executive, seen by Reuters, shows eight projects including those involving oil majors Anglo-Dutch Shell, BP and Italy’s Eni that risk falling foul of the U.S. measures.

Voicing frustration at the fraying in the joint Western approach to Moscow, Juncker said “close coordination among allies” was key to ensuring that curbs on business with the Russian energy, defense and financial sectors, imposed in July 2014, are effective.

EU sources said Juncker told Commissioners the risk to EU interests was collateral damage of a U.S. domestic fight between Trump and U.S. lawmakers.

It was unclear how quickly the U.S. bill would reach the White House for Trump to sign into law or veto. The bill amounts to a rebuke of Trump by requiring him to obtain lawmakers’ permission before easing any sanctions on Moscow.

Rejecting the legislation — which would potentially stymie his wish for improved relations with Moscow — would carry a risk that his veto could be overridden by lawmakers.

Industry concerns

European energy industry sources voiced alarm at the potentially wide-ranging damage of the new U.S. measures.

“This is pretty tough,” one industry source told Reuters.

“We are working with EU officials to see what safeguards can be anticipated to protect our investment and give us certainty.”

Five Western firms are partnered with Russia’s Gazprom in Nord Stream 2: German’s Wintershall and Uniper, Anglo-Dutch Royal Dutch Shell, Austria’s OMV and France’s Engie.

But EU officials warn the U.S. measures would also hit plans for the LNG plant on the Gulf of Finland in which Shell is partnering with Gazprom.

The EU document shows they might jeopardize Eni’s 50 percent stake in the Blue Stream pipeline from Russia to Turkey as well as the CPC pipeline, carrying Kazakh oil to the Black Sea, involving European groups BG Overseas Holdings, Shell and Eni.

It further warns that BP would be forced to halt some activities with Russian energy major Rosneft.
…

 Amazon has some job openings. Lots of them.

The company said Wednesday that it’s looking to fill more than 50,000 positions across the U.S.

 

It’s planning to make thousands of offers on the spot on Aug. 2, when it opens the doors to potential hires at 10 Amazon.com Inc. shipping sites.

 

There will be more than 10,000 part-time jobs available at sorting centers, and some supporting and managerial positions.

 

The labor market is growing tight with back-to-school and holiday shopping around the corner. Others will be competing for those same hires.

 

The unemployment rate is 4.4 percent, near a 16-year low, yet the average hourly pay rose just 2.5 percent in the past year. The last time unemployment was this low, wages were rising at roughly a 4 percent rate.

 

 
…

Promising startups in the United States receive a shred of the billions of dollars investors pump into them when led by women, a major study found Tuesday.

Between 2011 and 2013, companies with a female CEO received $1.5 billion of the $51 billion that venture capital investors poured into those they deemed promising, or a mere 3 percent of available dollars, according to the study by U.S. researchers.

They also found that all-male teams were four times more likely to win venture funding than teams counting at least one woman among them.

Venture capital is money invested in small businesses thought to have high-return potential.

The findings published in the journal Venture Capital confirmed a pattern of historically low levels of venture funds flowing into businesses led by women.

A prior milestone study, the Diana Project, had found that venture capital injected into female-led companies never exceeded 4 percent of total funds invested between the early 1950s and the turn of the century.

In the new study, researchers examined nearly 7,000 U.S. companies that received venture capital between 2011 and 2013. They then identified companies with women on their executive teams.

‘Not in the right network’

Just why female-led companies were recipients of less venture capital raised questions about the industry’s inner workings, said co-author Candida Brush, a professor of entrepreneurship at Babson College in Massachusetts.

“What is the disconnect?” Brush said in a phone interview.

“My hypothesis on the disconnect is that women are not in the right network [or] they’re either being put through a tighter screen,” she told the Thomson Reuters Foundation.

The report’s authors, who include other Babson College professors and an entrepreneurial consultant, found there was no significant performance difference between companies whose CEOs were women and those whose leaders were men.

The ratio of male to female startup entrepreneurs is fairly equal, according to the 2013 Global Entrepreneurship Monitor’s Global Report.

But the venture capital industry in the United States, where most leading venture capital firms are located, is 92 percent male, said Brush.

“Those are things that have to be looked at,” she said.

Earlier this month, prominent Silicon Valley investor Dave McClure resigned from his position as a partner at the venture capital firm 500 Startups following allegations of sexual harassment.

McClure’s resignation came after entrepreneur Sarah Kunst accused the investor of misconduct in a New York Times story.
…

U.S. President Donald Trump named on Tuesday two possible candidates to run the Federal Reserve over the next few years: current Fed Chair Janet Yellen and Trump’s economic adviser Gary Cohn, according to an interview with The Wall Street Journal.

Yellen, whose four-year term expires in February, “is in the running, absolutely,” to be renominated, Trump was quoted as saying. In addition, Cohn, a former Goldman Sachs president who is now director of the National Economic Council, “certainly would be in the mix,” he said.

Trump said he probably would make the announcement at the end of the year, the paper reported. He was also quoted saying that there are “two or three” other contenders, though he declined to name them.

Any Fed nominee would need Senate confirmation.

Trump’s comments could sharpen speculation over who will take the helm of the world’s most influential central bank, which is leading a global shift toward tighter monetary policy.

Earlier this month, Politico reported that Yellen was increasingly unlikely to serve another term, while Cohn was the top candidate.

Cohn, a Democrat who is managing the White House’s search for candidates, did not work on Trump’s campaign and only got to know him after the November election. “I’ve gained great respect for Gary working with him,” the paper quoted Trump as saying on Tuesday.

Yellen took over from Ben Bernanke as Fed chair in February 2014 with the U.S. economic recovery from the 2008 financial crisis still on shaky ground. As unemployment has since fallen, she has overseen four interest rate hikes and aims for at least one more before the end of this year.

“I like her. I like her demeanor. I think she’s done a good job,” Trump was quoted as saying. “I’d like to see rates stay low. She’s historically been a low-interest-rate person.”

During last year’s presidential election campaign, Trump had accused the Fed of keeping rates low to help President Barack Obama, saying the Fed had created a “false economy” and that rates should change.

In an April interview with The Wall Street Journal, Trump did not rule out a second term for Yellen.
…

Apple Chief Executive Tim Cook has committed to build three big manufacturing plants in the United States, the Wall Street Journal quoted U.S. President Donald Trump as saying.

“I spoke to [Cook], he’s promised me three big plants — big, big, big,” Trump told the Journal in an interview on Tuesday.

Trump didn’t elaborate on where those plants would be located or when they would be built, the paper reported.

Cook said in May that Apple planned to create a $1 billion fund to invest in U.S. companies that perform advanced manufacturing. He also said the company intended to fund programs that could include teaching people how to write computer code to create apps.

Apple came under fire from Trump during his campaign because it makes most of its products in China.

“We’re gonna get Apple to start building their damn computers and things in this country, instead of in other countries,” Trump had said in a speech in January last year.

Apple, on its part, had been making disclosures to highlight how it had been contributing to job creation in the United States.

Cook said in February that Apple spent $50 billion in 2016 with its U.S. suppliers.

The world’s largest company by market valuation had also claimed that it created 2 million jobs in the United States, 80,000 of which are directly at Apple and the rest coming from suppliers and developers for the company’s app ecosystem.

Trump’s comments on Tuesday were some of the first he has made regarding Apple’s manufacturing since assuming the presidency.

“I said you know, Tim, unless you start building your plants in this country, I won’t consider my administration an economic success,” the Journal quoted Trump as saying.

Apple didn’t immediately respond to a request for comment.

Trump also said that Foxconn, a major Apple supplier, plans to build a big plant in the United States and is “strongly considering” putting it in Wisconsin, the Journal reported.

Foxconn said last month it plans to invest more than $10 billion in a display-making factory in the United States.
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Colombian officials received $27 million in bribes from Brazilian engineering firm Odebrecht, more than double previously thought, as the company sought to win a road-building contract, Colombia’s attorney general said on Tuesday.

As fallout from a massive corruption scandal continues to bite Odebrecht, Attorney General Nestor Humberto Martinez said bribes paid for the contract to build a 528-km (328-mile) highway were much more than the $11 million originally estimated.

Martinez said criminal charges for money laundering would be filed against two Brazilian citizens, one Portuguese and three Colombians. He will also ask the Supreme Court of Justice to investigate five congressional lawmakers.

Seven people, including a former senator and an ex-vice minister of transport, have been jailed for involvement in the corruption scandal.

Odebrecht’s bribes in Colombia spilled over into the election campaigns of President Juan Manuel Santos, who in March acknowledged that his 2010 election campaign received illegal payments. He said he had no knowledge at the time of the payments.

Odebrecht allegedly paid hundreds of millions of dollars in bribes in association with infrastructure projects in 12 countries, including Brazil, Argentina, Colombia, Mexico and Venezuela, between 2002 and 2016.
…

Peruvian authorities have launched a major crackdown on modern slavery after a warehouse fire in Lima last month killed four workers, including two who were trapped inside a padlocked container on the roof.

Officials said they had shut down six furniture factories in the capital on Monday in an operation to root out forced labor and exploitation, following raids by prosecutors, police and labor inspectors.

Last month’s toxic blaze which tore through several warehouses in the city center highlighted labor exploitation in the capital and prompted calls for better protection of workers’ rights and more labor inspections.

President visits site of blaze

Peruvian President Pedro Pablo Kuczynski said the victims were “practically slave workers” when he visited the site following the June 22 blaze.

Peru’s attorney general said on Monday there would be more raids on factories and warehouses to prevent further “tragic accidents.”

Another eight operations are planned this year in the wider Lima region and the north of the country where forced labor has been linked to the fishing industry.

Prosecutors said the furniture factories targeted in Monday’s raids were operating without a licence, health and safety was “inadequate” and fire exits had been blocked, putting workers at risk.

Over 200,000 trapped in slavery

An estimated 200,500 people are trapped in modern day slavery in Peru, according to rights group The Walk Free Foundation, the third highest number in Latin America after Mexico and Colombia.

The International Labor Organization (ILO), which estimates there are 21 million people in forced labour worldwide, welcomed the new labor inspections in Peru.

“The tragic fire was shocking. People were outraged,” said Teresa Torres, coordinator of ILO’s program against forced labor in Peru.

“Having this kind of task force carrying out inspections is progress and an important response from the government,” she told the Thomson Reuters Foundation.

Need for ‘justice’

Public prosecutors have launched an investigation into possible human trafficking following the fire.

“What’s important in this case is that there’s justice, and as such those people responsible are punished,” Torres said, adding those found guilty could face up to 25 years in prison.

Across Peru, forced labor is more commonly linked to the illegal logging industry and illegal gold mines in the Amazon jungle. Girls are also trafficked to these areas for sex work.

Forced labor widespread

Torres said the warehouse blaze showed forced labor is more widespread than many Peruvians believe.

“This is more evidence to show that forced labour doesn’t just happen in … remote areas of the Amazon, but it could be happening right in the center of the capital too,” Torres said.

“We have information that forced labor is also happening in the north of Peru, in other sectors such as the shrimp fishing industry.”

She said victims of forced labor were often hidden from view, working on fishing vessels, in small clandestine workshops, commercial agriculture or private homes.
…

Following a lack of agreement at the U.S. China Comprehensive Economic Dialogue in Washington last week, analysts say they expect the Trump administration to impose stiff penalties on Chinese steel and other imports. They are also predicting the U.S. might go a step further and start questioning some of the rules of the World Trade Organization, which it regards as being unduly favorable to Beijing.

“It appears that not much was accomplished. Negotiations were deadlocked,” said Charles W. Boustany Jr., a retired U.S. Congressman and Counselor at The National Bureau of Asian Research. “I believe the Trump Administration is intent on imposing tariffs and other restrictions on steel imports”.

The dialogue mechanism was created last April after talks between Presidents Donald Trump and Xi Jinping as a means to resolve old sticking points, including a huge trade imbalance of $347 billion that favors Beijing. But the first meeting, which was co-chaired by U.S. Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and Chinese Vice Premier Wang Yang, merely helps to highlight the stiff differences between the two sides.

At the heart of the differences were Chinese steel exports and the massive trade deficit. The U.S. feels cheap steel exports are resulting in job losses, a view echoed regularly in Europe.

Boustany said the Trump administration would impose controls on steel imports using national security as the reason. Similar views are being expressed by several experts.

” I do expect in some point in the near future for the Trump administration to impose penalties on steel imports from China and perhaps a few other countries justifying those limits on national security grounds,” Scott Kennedy, Deputy Director, Freeman Chair in China Studies at the Washington based Center for Strategic & International Studies, said.

Rejecting WTO rules

He said the U.S. government may go further and start reviewing its commitment to some rules of the World Trade Organization.

“I think during the last five years, China’s economic policies, the level of innovation by the government in different industries, its promotion of high-tech in a discriminatory way has widened the gap between Chinese practices and its commitments (to WTO). And given China’s size, that had a big affect on the global economy, including on the U.S. and its high-tech industries,” he said.

Kennedy also said, “I think that has generated anxiety and doubts in the United States about the WTO’s rules and whether those rules were good enough to constrain Chinese trade practices.”

After the talks, Chinese Vice Premier Wang Yang said the world’s two biggest economies need to cooperate and warned that “confrontation will immediately damage the interests of both.” U.S. Treasury Secretary Steven Mnuchin blamed the trade gap between the two countries on “Chinese government intervention in its economy.”

Trump’s surprise

“The Chinese basically wanted to bring Trump and his team back on the mainstream of U.S.-China bilateral dialogue on economic and trade cooperation the way it used to be during the Obama period. Even Bush did the same thing,” said Sourabh Gupta, Institute for China – America Studies in Washington. “Trump came with so much radicalism on trade issues that they just want to maintain a workable format, which is productive and result oriented.”

Paul T. Haenle, Director of the Carnegie-Tsinghua Center for Global Policy, said Trump’s approach to trade has completely thrown China’s long-term economic plans off the rails. He added that Beijing is not being helped with signs of rising protectionism in Europe.

“I think the Chinese side has been somewhat surprised by the toughness of the Trump administration, particularly on White House priority areas like trade (steel) and North Korea,” he said.

China recently began importing U.S. beef and took other measures to placate Washington. But these items are not enough to placate the new administration in Washington, Haenle said.

“The new U.S. administration has come away with a more realistic sense of the limits of Chinese cooperation, particularly in the lead up to the 19th Party Congress,” he said.

Analysts said the ruling Communist Party is unlikely to make too many concessions and appear weak in its negotiations with Washington ahead of the crucial Communist Party meeting later this year.

 
…

A Ghanaian teenager wanted to develop a video search engine that could challenge the dominance of YouTube. As Faith Lapidus reports, he’s well on his way.
…

From recycled paint to rented jeans, businesses large and small are looking at ways to cut waste, use fewer resources and help create what has been coined a “circular economy” in which raw materials and products are repeatedly reused.

Unilever, Renault, Google and Nike are some of the companies starting to move towards a circular business model, experts say.

Cities too – including London, Amsterdam and Paris – are looking at how they can shift to a circular economy, which means reusing products, parts and materials, producing no waste and pollution, and using fewer new resources and energy.

London’s Waste and Recycling Board last month published a road map for how the city as a whole could make the shift, thereby cutting emissions and creating jobs.

“As London grows it faces unprecedented pressure on its land and its resources. If we are to meet these challenges, moving London to a circular economy will be vital,” Shirley Rodrigues, London’s deputy mayor for environment and energy, told the Thomson Reuters Foundation.

The city would likely need less land and infrastructure to manage waste, freeing up space for housing and saving up to 5 billion pounds ($6.5 billion) in infrastructure costs. The shift could generate 40,000 jobs, including 12,500 new jobs across London, she said.

It would also cut harmful greenhouse gas emissions.

“It is widely accepted that the circular economy has the potential to reduce greenhouse gas emissions … through using less resources to make products in the first place and releasing less gases from energy generation, for example,” Rodrigues said.

“This can also be achieved through using resources more efficiently by extending the life of products and through the sharing of goods,” she added.

PwC, which offers audit, tax and consulting services, is going circular, and offering advice about this to its clients, who number 26,000 in Britain with more overseas.

The company uses cooking fat from its canteens and other kitchens to fuel its offices, it re-uses and remanufactures office furniture where possible and donates the rest to charity, and when its computers and phones need upgrading – a frequent occurrence – they send them to another company which resells them.

‘Walk the talk’

Bridget Jackson, PwC’s head of corporate sustainability, is looking at everything from office carpets to recycled wall paint to see how to cut the company’s waste and use of resources. Even worn out company uniforms are taken apart and reused.

“There are big cost savings, there’s reputational benefits from being responsible, and it is a topic which is of a lot of interest to our employees,” Jackson said.

“We are often giving advice to clients about how they can make their operations more efficient and be more sustainable, and we try to walk the talk,” she said.

Some companies are looking for ways to become less reliant on raw materials because they fluctuate in price and become harder to source.

That can mean recycling aluminum for cars, old trainers for sportswear, and others are looking at reusing parts.

Many have developed ways to lease products – including jeans, lighting and photocopiers – to customers who return them when they want to upgrade.

London authorities are hoping that architects will increasingly design buildings which can be taken apart at the end of their lives and the materials and components used again.

“I think increasingly, everything that we do will be seen through the lens of a circular economy,” said Wayne Hubbard, chief operating officer of the London Waste and Recycling Board.

Experts say change is happening in pockets.

“We’re still in the early stages where you see some businesses, some cities, national governments playing around with these ideas and … starting to make moves towards a circular economy,” said Ashima Sukhdev, head of governments and cities at the Ellen MacArthur Foundation. “I’m very hopeful that London will become a circular economy.”
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More steps to free up trade globally have been taken since Donald Trump was elected than measures to restrict it, the World Trade Organization said, despite concerns his administration would introduce a raft of punitive rules to protect U.S. jobs.

The WTO’s global monitoring report, debated at a trade policy review on Monday, covers October 2016 to May 2017.

“The report shows an encouraging decrease in the rate of new trade-restrictive measures put in place — hitting the lowest monthly average since the financial crisis,” WTO Director-General Roberto Azevêdo said in a statement.

The semi-annual report, largely coinciding with the period since the election of U.S. President Donald Trump, showed that the 164 WTO members put 74 new restrictive measures in place, including tariffs, customs regulations and quantitative restrictions, with an impact of $49 billion of trade.

At the same time, they took 80 steps to help trade, such as cutting tariffs or simplifying customs procedures, affecting a much bigger $183 billion of trade.

Restrictions peaked in 2011

Trade-restrictive steps peaked at 22 per month in 2011, roughly twice the level in the period of the latest report.

During the period under review, the United States introduced new restrictions including a provisional duty on Canadian softwood lumber, suspecting it of being unfairly priced.

It also brought in “Buy America” provisions to ensure that, subject to some conditions, state loan funds are not used for water infrastructure projects unless all the steel used in the project was produced in the United States, the WTO report said.

Liberalized trade

Trump had also liberalized trade by scrapping broadband privacy rules, allowing Internet service providers to commericalize user data without explicit permission from the U.S. Federal Communications Commission, the report said.

China, routinely the WTO member most often accused of unfair pricing and illegal subsidies, had introduced new restrictions with a cybersecurity law, requiring data generated in China to be stored in China, and a film production law, requiring Chinese movies get two-thirds of the screen time at Chinese cinemas.

But it also eased approval requirements for foreign-owned banks to invest in Chinese banks and to supply some investment banking services in China, the WTO report said.
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Thailand’s justice ministry froze some of former Prime Minister Yingluck Shinawatra’s bank accounts, the ministry and her legal team said on Monday, in relation to a $1 billion fine imposed by the ruling junta over her administration’s rice-subsidy program.

She has filed a court petition to revoke the freezing of her bank accounts and to grant an injunction to suspend asset seizures, saying they were unlawful.

Yingluck, whose government was ousted by the junta in a 2014 coup, will deliver a closing statement in a separate criminal case over the rice subsidies next week.

The program, which helped Yingluck sail to victory in a 2011 election, bought rice from farmers at above-market rates and distorted global prices but proved popular with rural voters.

Finance Ministry permanent secretary Somchai Sujjapongse told reporters on Monday that government committees submitted details of 12 bank accounts which belong to Yingluck to the Legal Execution Department, which then took action.

Yingluck received a formal notice about her frozen accounts from the department on Monday, her legal team said.

Yingluck declined to comment when contacted by Reuters.

Her supporters have accused the courts of bias in frequently ruling against Yingluck and her family members.

The rice scheme was a policy engineered by Yingluck’s brother, former prime minister Thaksin Shinawatra, who was toppled in a 2006 coup and lives abroad, to avoid a two-year prison sentence from 2008 for graft in a land purchase case.

Thaksin won the hearts of voters in the populous northeast and the north but made enemies among the powerful, military-backed Bangkok elite.

In 2015, a military-appointed legislature banned Yingluck from politics for five years after finding her guilty of mismanaging the rice scheme.

The Supreme Court will give its verdict in the criminal case against Yingluck on Aug. 25.

Yingluck, who says the trial against her is politically motivated, faces up to 10 years in prison if she is found guilty of negligence over her role in the scheme.
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The U.S. Carrier factory where President Donald Trump says he saved 800 jobs from moving to Mexico notified 300 people last week that they were being laid off.

The layoff notices began Thursday, exactly six months since Trump took office. The layoffs are part of a deal Trump made with the company in December to prevent deeper cuts at the Indianapolis plant.

The layoffs are the first of a group of 630 job terminations planned for the year as the company moves some of its operations to Mexico. Carrier – owned by United Technologies Company (UTC) – announced in December that its fan coil department would relocate to Mexico by the end of 2017.

WATCH: Despite Trump’s efforts, Indiana Carrier lays off employees

The Carrier plant, which makes gas furnaces, became an issue in last year’s presidential election when UTC announced plans to eliminate about 2,100 jobs in the state and transfer those operations to Mexico. As a presidential candidate, Trump roundly criticized that decision.

After winning the election, Trump worked out a deal with his vice president-elect, Mike Pence, who was then the governor of Indiana, to provide as much as $7 million in tax incentives and training grants for Carrier in exchange for keeping about 700 of those jobs in the state.

In a letter sent to the Indiana Department of Workforce Development in May, a human resources manager for Carrier said, “While the entire facility is not closing, the separations are expected to be permanent.”

In addition, UTC is expected to lay off an additional 700 workers at factories in the town of Huntington, Indiana, near the city of Fort Wayne.

However, Carrier has also said it will honor its commitment, made in 2016, to employ about 1,100 people in Indianapolis.

Robert James, head of the United Steelworks Local 1099, the Carrier workers’ local union, told VOA the union is trying to negotiate retirement incentives and “voluntary separation” incentives, or buyouts, for the workers to cut down the number of actual job losses.

During the 2016 presidential election campaign, James was most concerned about job security. When he spoke to VOA in April of 2016, he was expecting to lose his job when Carrier moved the work to Mexico.

A lot has happened since.

“We appreciate what President Trump did,” James said at the time, referring to Trump’s efforts to keep the Carrier facility open and employing workers in Indianapolis making furnaces.

Uncertainties

While a lot of positive developments have happened since VOA last spoke to James, he recently said a cloud of uncertainty still hangs above the facility.

“What we saw in December when President Trump came to Carrier … it was a dog and pony show.” Because only some, not all, of the jobs were saved, he added.

“He stood up there before 100 people who were in that room and told those 100 workers that there were 1,100 jobs being saved. And he was wrong,” James said.

According to James, only 730 are slated to stay in Indiana.

Mohan Tatikonda, a professor of Operations Management at the Kelly School of Business at Indiana University, said most factories like Carrier “have already moved.”

Tatikonda said lower-skill jobs such as those at Carrier naturally flow to a lower-wage environment, eventually.

“We can be happy – it [[saving some jobs]] made a difference for so many families, but it wasn’t a lasting solution, and it is not a solution that is in any way replicable or applicable to other factories,” Tatikonda said.

While James’ job at the plant is secure, for now, he is focused on helping those who are leaving this year to look for other work, including “some the same age as I am that is going to make it a lot harder. Because when you are in your 50s, trying to look for a job – that’s not a good thing,” he added.

Earlier this year, Trump tweeted twice about former union leader Chuck Jones after Jones criticized the deal. Trump said Jones had done a “terrible job” negotiating for the workers and suggesting that he “spend more time working.”

Jones has since retired.

Carrier said the employees who lose their jobs will get severance pay. It says at least 30 people are taking advantage of educational funding offered by Carrier.

VOA’s Kane Farabaugh contributed to this report.
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The United States and Britain are launching preliminary talks in Washington on a trade deal that will set up a new trade relationship between the two countries, after Britain’s exit from the European Union. Britain hopes removing barriers under its current EU arrangement will boost trade with the United States by $40 billion by 2030. But as VOA Europe correspondent Luis Ramirez reports from London, no one is expecting these to be easy negotiations.
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The Federal Reserve has already achieved one of its two mandates: With the unemployment rate at just 4.4 percent, the Fed has essentially maximized employment.

 

It’s the Fed’s other goal — price stability — that’s stayed persistently out of reach. Inflation has been edging further below the Fed’s 2 percent target. Problem is, too-low inflation tends to slow consumer spending, the U.S. economy’s main fuel. Many consumers delay purchases if they think the same price — or a lower one — will be available later.

 

Low inflation will likely be a key discussion point when the Fed holds its latest policy meeting this week. The central bank has raised its benchmark interest rate twice this year, but no one expects another hike when its meeting ends Wednesday. And unless inflation picks up, some analysts foresee no further rate increase this year.

 

Fed Chair Janet Yellen deepened the uncertainty earlier this month when she sounded less sure about her position that a slowdown in inflation this year was due to temporary factors.

Yellen conceded that Fed officials were puzzled by recent developments. Her remarks lifted financial markets as investors interpreted her words to suggest that the Fed might slow its pace of rate increases.

 

“In the past, Yellen was pretty confident that inflation would come back, but that is now in doubt,” said Sung Won Sohn, economics professor at California State University-Channel Islands.

 

Over the past 12 months, the inflation gauge the Fed monitors most closely has risen just 1.4 percent, according to the latest data. That’s down from a 1.9 percent year-over-year increase in January. In part, it’s why some economists say they suspect the Fed may be keeping its rate increases on hold, waiting to see if inflation in coming months rebounds from its current slowdown.

 

After leaving its key rate at a record low near zero for seven years after the financial crisis erupted in 2008, the Fed has raised it modestly four times — in December 2015, December 2016 and twice so far this year, in March and June. Even now, the rate remains historically low, in a range of 1 percent to 1.25 percent.

 

Months ago, the Fed had signaled its readiness to raise rates three times this year on the assumption that it needed to be more aggressive to ensure that consistently low unemployment didn’t contribute to high inflation later on.

 

In June, Yellen and other officials sought to explain away the unwelcome slip in inflation as a result of such onetime factors as a plunge in consumer cellphone charges and a dip in prescription drug prices.

 

But in delivering the Fed’s semiannual report to Congress this month, Yellen acknowledged some doubt. She described inflation as a “two-edge” problem, with the threat that prices could either rise too slowly or suddenly jump if a tight job market triggered wage pressures that stoked inflation.

 

Yellen didn’t rule out another rate increase this year. But investors have themselves grown more uncertain, with the CME Group’s closely watched gauge foreseeing a 47 percent chance of another rate increase by year’s end.

 

Diane Swonk, chief economist at DS Economics, said she still thinks the Fed will raise rates one more time this year — in December — but only if her forecast of a rebound in inflation comes true.

 

“I think we are going to get to a third rate hike this year, but it will be driven by the inflation data,” she said. “There is a real desire on the part of the Fed to hit the pause button until the haze clears and they can see more clearly what is happening.”

 

Mark Zandi, chief economist at Moody’s Analytics, said he believes the Fed will act again by December, in part because of concerns that stock prices and other asset prices have been lifted too high by investors who have become too optimistic about how long the Fed will delay its tightening of credit.

 

“The valuations in financial markets are very high right now,” Zandi said. “This has got to be making Fed officials nervous.”

 

Zandi also said he thought the Fed could provide details this week about its plans to start paring its enormous $4.5 trillion in holdings of Treasury and mortgage bonds, which it accumulated after the 2008 financial crisis in a drive to ease long-term borrowing rates.

Some say they think the Fed will begin in either September or October to begin shrinking those holdings, a move that is expected to put gradual upward pressure on long-term borrowing rates, including mortgages.

 

Eventually, Zandi predicted, as the job market strengthens further, the Fed will have to switch from worrying about inflation that is too low to inflation that will start to exceed its 2 percent target. He said he foresees three additional Fed rate increases next year.

 

 
…

Lucy Harris thinks Britain’s decision to leave the European Union is a dream come true. Nick Hopkinson thinks it’s a nightmare.

The two Britons — a “leave” supporter and a “remainer” — represent the great divide in a country that stepped into the unknown just over a year ago, when British voters decided by 52 percent to 48 percent to end more than four decades of EU membership.

They are also as uncertain as the rest of the country about what Brexit will look like, and even when it will happen. Since the shock referendum result, work on negotiating the divorce from the EU has slowed to a crawl as the scale and complexity of the challenge becomes clearer.

Harris, founder of the pro-Brexit group Leavers of London, says she is hopeful, rather than confident, that Britain will really cut its ties with the EU.

“If we haven’t finalized it, then anything’s still up for grabs,” she said. “Everything is still to play for.”

She’s not the only Brexiteer, as those who support leaving the EU are called, to be concerned. After an election last month clipped the wings of Britain’s Conservative government, remainers are gaining in confidence.

“Since the general election I’ve been more optimistic that at least we’re headed toward soft Brexit, and hopefully we can reverse Brexit altogether,” said Hopkinson, chairman of pro-EU group London4Europe. “Obviously the government is toughing it out, showing a brave face. But I think its brittle attitude toward Brexit will break and snap.”

Many on both sides of the divide had assumed the picture would be clearer by now. But the road to Brexit has not run smoothly.

First the British government lost a Supreme Court battle over whether a vote in Parliament was needed to begin the Brexit process. Once the vote was held, and won, Prime Minister Theresa May’s Conservative government officially triggered the two-year countdown to exit, starting a race to untangle four decades of intertwined laws and regulations by March 2019.

Then, May called an early election in a bid to strengthen her hand in EU negotiations. Instead, voters stripped May’s Conservatives of their parliamentary majority, severely denting May’s authority — and her ability to hold together a party split between its pro-and anti-EU wings.

Since the June 8 election, government ministers have been at war, providing the media with a string of disparaging, anonymously sourced stories about one another. Much of the sniping has targeted Treasury chief Philip Hammond, the most senior minister in favor of a compromise “soft Brexit” to cushion the economic shock of leaving the bloc.

The result is a disunited British government and an increasingly impatient EU.

EU officials have slammed British proposals so far as vague and inadequate. The first substantive round of divorce talks in Brussels last week failed to produce a breakthrough, as the EU’s chief negotiator, Michel Barnier, said Britain must clarify its positions in key areas.

Barnier said “fundamental” differences remain on one of the biggest issues — the status of 3 million EU citizens living in Britain and 1 million U.K. nationals who reside in other European countries. A British proposal to grant permanent residency to Europeans in the U.K. was dismissed by the European Parliament as insufficient and burdensome.

There’s also a fight looming over the multibillion-euro bill that Britain must pay to meet previous commitments it made as an EU member. British Foreign Secretary Boris Johnson recently asserted the bloc could “go whistle” if it thought Britain would settle a big exit tab.

“I am not hearing any whistling. Just the clock ticking,” Barnier replied.

EU officials insist there can be no discussion of a future trade deal with Britain until “sufficient progress” has been made on citizens’ rights, the exit bill and the status of the Irish border.

“We don’t seem to be much further on now than we were just after the referendum,” said Tim Bale, professor of politics at Queen Mary University of London. “I’m not sure anybody knows just how this is going to go. I’m not sure the government has got its negotiating goals sorted. I’m not sure the EU really knows what [Britain’s goals] are either.

“I think we are going to find it very, very hard to meet this two-year deadline before we crash out.”

The prospect of tumbling out of the bloc — with its frictionless single market in goods and services — and into a world of tariffs and trade barriers has given Britain’s economy the jitters. The pound has lost more than 10 percent of its value against the dollar in the last year, economic growth has slowed and manufacturing output has begun to fall.

Employers’ organization the Confederation of British Industry says the uncertainty is threatening jobs. The group says to ease the pain, Britain should remain in the EU’s single market and customs union during a transitional period after Brexit.

That idea has support from many lawmakers, both Conservative and Labour, but could bring the wrath of pro-Brexit Conservatives down on the already shaky May government. That could trigger a party leadership challenge or even a new election — and more delays and chaos.

In the meantime, there is little sign the country has heeded May’s repeated calls to unite. A post-referendum spike in hate crimes against Europeans and others has subsided, but across the country families have fought and friendships have been strained over Brexit.

“It has created divisions that just weren’t there,” said Hopkinson, who calls the forces unleashed by Brexit a “nightmare.”

On that, he and Harris agree. Harris set up Leavers of London as a support group after finding her views out of synch with many others in her 20-something age group.

“I was fed up with being called a xenophobe,” she said. “You start this conversation and it gets really bad very quickly.”

She strongly believes Britain will be better off outside the EU. But, she predicts: “We’re in for a bumpy ride, both sides.”
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Authorities in Madrid asked Spain’s anti-trust watchdog on Saturday to investigate whether Uber’s new low-cost airport transfer service constitutes unfair competition.

The city council’s request follows the ride-hailing app’s return to the Spanish capital last year after the CNMC competition regulator called for the government to lift a ban on the U.S. company.

The firm’s recently launched Uber Airport service offers a tariff of 15-29 euros for a ride between Madrid’s Barajas international airport and the city center. Standard taxi fares for the trip are fixed at 30 euros.

“(Uber Airport) could violate several articles of the Law of Unfair Competition and consumer rights, if it is proven that the service is being operated at prices below operational costs and with the sole intention of gaining customers through unfair competition,” Madrid City Council said in statement.

No one at Uber could immediately be reached to comment.

European regulations

Uber, which expanded into Europe six years ago, has come under attack from established taxi companies and some EU countries because it is not bound by strict local licensing and safety rules that apply to some of its competitors.

Spanish taxi drivers have held three strikes so far this year, arguing that ride-hailing apps, which are regulated in Spain under VTC licenses typically used for private, chauffeur-driven vehicles, constitute unfair competition because they do not meet current regulations and pay less tax.

In May, the European Court of Justice (ECJ) dealt a blow to the company by ruling that it should be considered a transport service and not an app.
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The state government in India’s capital told Philip Morris International Inc and other tobacco companies Saturday to remove all advertisements from tobacco shops in the city, warning them of legal action if they do not comply.

The order, sent by Delhi state’s chief tobacco control officer S. K. Arora, comes days after Reuters reported that Philip Morris was promoting Marlboro cigarettes, the world’s best-selling brand, by advertising them at tobacco shops and distributing free cigarette samples. Government officials say such tactics flout the law.

The strategy was laid out in hundreds of pages of internal Philip Morris documents reviewed by Reuters that cover the period from 2009 to 2016. 

​Tobacco ads illegal

Indian officials have previously said tobacco advertising using brand names or promotional slogans is illegal under the country’s Cigarettes and Other Tobacco Products Act and its accompanying rules. But Philip Morris and India’s leading cigarette maker ITC Ltd say they comply with regulations and that the law allows advertising inside a kiosk.

Arora said the federal health ministry had told him that all brand advertisements, irrespective of where they were placed, were not allowed in the country.

Philip Morris and ITC did not immediately respond to requests for comment Saturday.

Tobacco companies have continued to advertise at sale points despite repeated warnings from the Delhi state government in recent years. Philip Morris has been paying a monthly fee to some tobacco vendors to display the company’s colorful advertisements, the Reuters investigation found.

Arora also told Reuters he “will investigate and conduct raids” to check on distribution of free cigarettes at social events. 

“If violations are found, action as per law will be taken,” Arora said.

Tobacco law enacted in 2003

India enacted its national tobacco control law in 2003 and has since added rules to strengthen it, but government officials say companies get away with violations because law enforcement is weak.

The federal health ministry Friday said it planned to seek an explanation from Philip Morris and other tobacco companies about their marketing practices following the Reuters investigation that was published earlier this week. 

Philip Morris and ITC did not respond to requests for comment.
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