BMW Warns Profits Will Fall Due to Costs, Trade Uncertainty

German automaker BMW said Wednesday that profits in 2019 would be “well below” last year’s and that it planned to cut 12 billion euros ($13.6 billion) in costs by the end of 2022 to offset spending on new technology.

The company said profits would be eroded by higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates.

The Munich-based automaker also faces increased uncertainty due to international trade conflicts that could lead to higher tariffs.

The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still “remains the ambition” for the company given “a stable business environment.”

BMW said it had no plans for layoffs even as it outlined cost saving measures that include dropping half of its engine variants as it seeks to reduce product complexity. The BMW, MINI and Rolls-Royce brands are to get a single sales division.

Chief Financial Officer Nicolas Peter said that given the headwinds to earnings, “we began to introduce countermeasures at an early stage and have taken a number of far-reaching decisions.”

The company said the measures were needed “to offset the ongoing high level of upfront expenditure required to embrace the mobility of the future.”

BMW shares were down 4.9 percent to 72.02 euros in Frankfurt.

Automakers around the world have faced heavy up-front costs for new technologies expected to change how people get from one place to another in the next decade. Those include electric cars and renting cars through smartphone apps. Yet the returns from such investments remain uncertain and auto companies face competition from tech firms such as Uber and Waymo.

BMW made 7.2 billion euros ($8.2 billion) in net profit last year, down 17 percent from 2017, when it booked a gain of $1 billion from U.S. tax changes. The company faced headwinds from increased tariffs on vehicles exported to China from the United States. It also suffered from turmoil on the German auto market when companies faced bottlenecks getting cars certified for new emissions rules.

BMW faces uncertainty from U.S.-China trade tensions that could result in new tariffs if talks do not result in an agreement. U.S. President Donald Trump has also threatened to impose auto import tariffs that would hit EU automakers, but has held off for now. BMW could also suffer disruption if Britain leaves the European Union without a negotiated departure agreement to address trade issues.

Mexico President Talks US Investment With Trump Son-in-Law

Mexican President Andres Manuel Lopez Obrador says talks with White House senior adviser Jared Kushner have led to advances toward an agreement that would have the U.S. government guarantee some $10 billion in development investments for Mexico and Central America.

Lopez Obrador said Wednesday that the investments would aim to reduce immigration from Mexico and Central America by providing more opportunities in those countries. Roughly half of the sum would go to Mexico while the remainder would be divided among Honduras, Guatemala and El Salvador.

 

Lopez Obrador and President Donald Trump’s son-in-law dined Tuesday in the Mexico City home of Bernardo Gomez, co-executive president of Grupo Televisa.

 

The Mexican leader says they also discussed the pending ratification of the new trade agreement dubbed the U.S.-Mexico-Canada Agreement.

EU Fines Google $1.7 Billion for Abusing Online Ads Market

European Union regulators have hit Google with a 1.49 billion euro ($1.68 billion) fine for abusing its dominant role in online advertising.

It’s the third time the commission has slapped Google with an antitrust penalty, following multibillion-dollar fines resulting from separate probes into two other parts of the Silicon Valley giant’s business.

 

The EU’s competition commissioner, Margrethe Vestager, announced the results of the long-running probe of Google’s AdSense advertising business at a news conference in Brussels on Wednesday.

 

“Today’s decision is about how Google abused its dominance to stop websites using brokers other than the AdSense platform,” Vestager said.

 

The commission found that Google and its parent company, Alphabet, breached EU antitrust rules by imposing restrictive clauses in contracts with websites that used AdSense, preventing Google rivals from placing their ads on these sites.

 

Google “prevented its rivals from having a chance to innovate and to compete in the market on their merits,” Vestager said. “Advertisers and website owners, they had less choice and likely faced higher prices that would be passed on to consumers.”

 

AdSense is an older Google product that lets web publishers such as bloggers place text ads on their websites, with the content of the ads based on results from search functions on their sites. Microsoft filed an EU antitrust complaint about the service in 2009 and the EU Commission formally launched its probe in 2016, although it said at the time that Google had already made some changes to allow affected customers more freedom to show competing ads.

 

Last year, Vestager hit the company with a record 4.34 billion euro ($5 billion) fine following an investigation into its Android operating system. In 2017, she slapped Google with a 2.42 billion euro fine in a case involving its online shopping search results.

 

NASA’s Plan to Scoop Up Dirt from Asteroid Hits Snag

NASA’s plan to scoop up dirt and gravel from an asteroid has hit a snag, but scientists say they can overcome it.

The asteroid Bennu was thought to have wide, open areas suitable for the task. But a recently arrived spacecraft revealed the asteroid is covered with boulders and there don’t seem to be any big, flat spots that could be used to grab samples. 

In a paper released Tuesday by the journal Nature, scientists say they plan to take a closer look at a few smaller areas that might work. They said sampling from those spots poses “a substantial challenge.”  

“But I am confident this team is up to that substantial challenge,” the project’s lead scientist, Dante Lauretta, told reporters at a news conference Tuesday.

The spacecraft, called Osiris-Rex, is scheduled to descend close to the surface in the summer of 2020. It will extend a robot arm to pick up the sample, which will be returned to Earth in 2023. The spacecraft began orbiting Bennu at the end of last year, after spending two years chasing down the space rock.

When the mission was planned, scientists were aiming to take dirt and gravel from an area measuring at least 55 yards (50 meters) in diameter that was free of boulders or steep slopes, which would pose a hazard.

“It is a more rugged surface than we predicted,” said Lauretta, of the University of Arizona in Tucson and one of the paper’s authors. But he said he believed a sample could still be collected.

NASA project manager Rich Burns said a spot will be chosen this summer and the setback won’t delay the sampling.

Patrick Taylor, who studies asteroids at the Lunar and Planetary Institute in Houston but didn’t participate in the spacecraft mission, noted in a telephone interview that the spacecraft was evidently maneuvering more accurately and precisely than had been expected. 

“That gives me confidence they will be able to attempt a sample acquisition,” he said.

Bennu is 70 million miles (110 million kilometers) from Earth. It’s estimated to be just over 1,600 feet (500 meters) across and is the smallest celestial body ever orbited by a spacecraft.

A Japanese spacecraft, Hayabusa2, touched down on another asteroid in February, also on a mission to collect material. Japan managed to return some tiny particles in 2010 from its first asteroid mission.

Goodbye Console? Google Launches Game-streaming Platform

Google on Tuesday unveiled a video-game streaming platform called Stadia, positioning itself to take on the traditional video-game business.

The platform will store a game-playing session in the cloud and lets players jump across devices operating on Google’s Chrome browser and Chrome OS, such as Pixel phones and Chromebooks.

Google didn’t say how much its new service will cost, whether it will offer subscriptions or other options, or what games will be available at launch — all key elements to the success of a new video-game platform. It said only that Stadia will be available in late 2019. 

Google made the announcement at the Game Developers Conference in San Francisco. Some industry watchers were expecting a streaming console, but Google’s platform centers squarely on the company’s cloud infrastructure.

“The new generation of gaming is not a box,” said Google Vice President Phil Harrison. “The data center is your platform.”

Much like movies and music, the traditional video-game industry has been shifting from physical hardware and games to digital downloads and streaming. 

Video-game streaming typically requires a strong connection and more computing power than simply streaming video, since there is real-time interaction between player and game. Google says it is leveraging its data centers to power the system.

Alphabet Inc.’s Google said playing video games will be as simple as pressing a “Play Now” button, with nothing to download or install. An optional dedicated Stadia controller will be available. The WiFi-enabled controller has a button that lets players launch a microphone and use Google Assistant to ask questions about the games being played. Another button lets users share gameplay directly to Google’s video streaming service, YouTube.

Harrison said he expects all gaming will eventually take place outside consoles, in cloud-powered streaming platforms similar to what Google announced. But not right away.

“It won’t replace traditional games devices overnight,” he said in an interview after the announcement. “And we wouldn’t be here if not for the existing traditional platforms.”

CFRA Research analyst Scott Kessler said Google’s approach that ties YouTube sharing and video-game playing is unique.

“It is not necessarily at this point the easiest thing for people to livestream their games and now you can do it with the push of a button,” he said. “What they’ve done with Stadia is to connect and unify both the gaming platform and the streaming platform which obviously is new.”

The company said Stadia will be available in late 2019 in the U.S., Canada, the U.K. and parts of Europe. Google showed demos of “Assassin’s Creed Odyssey” and “Doom Eternal.” More information about games and pricing is due this summer.

The U.S. video game industry raked in revenue of $43.4 billion in 2018, up 18 percent from 2017, according to research firm NPD Group.

BTIG Managing Director Brandon Ross said Stadia will be a positive for game publishers “assuming that it works and works at scale, which is a big assumption.”

That’s because the platform could bring in players not willing to spend the money upfront for a gaming PC or a console.

“What they’re presenting is a feasible way to play video games in the cloud, and utilizing the cloud so you can play anytime, anyplace and anywhere,” he said. “There’s no friction, including the friction of upfront hardware costs.”

Ross added that Google’s platform could set up a distribution battle between Microsoft, which owns the Xbox, Sony, which owns the PlayStation, Google and perhaps Amazon, which reportedly is working on its own video-game service, as they race to lock down distribution of the most in-demand games.

To that end, Google launched Stadia Games and Entertainment which will develop Stadia-exclusive games.

“The differentiator for any of the distributors on a console or in the cloud is going to be available content,” he said. 

Harrison said Google will rely on outside publishers and game developers to provide many of the games available on the platform. But having its own inside studio will also allow the company to fully test and make use of new features.

“We can be the advance party, so to speak, and we can be testing out the latest technology,” he said. “Once we’ve proven it we can help bring that up to speed on the platform even more quickly with our third-party partners.”

Harrison acknowledged Google faces stiff competition from longtime rivals Microsoft, Sony and others. Google has been working on Stadia for more than four years, he said, and has been working with game developers through Android and Play Store for longer.

The others have more than a decade of experience. But Google believes it brings something new.

“We are not a historical console or PC platform,” he said. “We are built specifically for this new generation.”

WHO Panel Calls for Registry of All Human Gene-Editing Research

It would be irresponsible for any scientist to conduct human gene-editing studies in people, and a central registry of research plans should be set up to ensure transparency, World Health Organization experts said Tuesday.

After its first two-day meeting in Geneva, the WHO panel of gene-editing experts — which was established in December after a Chinese scientist said he had edited the genes of twin babies — said it had agreed on a framework for setting future standards.

It said a central registry of all human genome-editing research was needed “in order to create an open and transparent database of ongoing work,” and asked the WHO to start setting up such a registry immediately.

“The committee will develop essential tools and guidance for all those working on this new technology to ensure maximum benefit and minimal risk to human health,” Soumya Swamanathan, the WHO’s chief scientist, said in a statement.

A Chinese scientist last year claimed to have edited the genes of twin baby girls.

News of the births prompted global condemnation, in part because it raised the ethical specter of so-called “designer babies” — in which embryos can be genetically modified to produce children with desirable traits.

Top scientists and ethicists from seven countries called last week for a global moratorium on gene editing of human eggs, sperm or embryos that would result in such genetically-altered babies — saying this “could have permanent and possibly harmful effects on the species.”

The WHO panel’s statement said any human gene-editing work should be done for research only, should not be done in human clinical trials, and should be conducted transparently.

“It is irresponsible at this time for anyone to proceed with clinical applications of human germline genome editing.”

The WHO’s director-general, Tedros Adhanom Ghebreyesus, welcomed the panel’s initial plans. “Gene editing holds incredible promise for health, but it also poses some risks, both ethically and medically,” he said in a statement.

The committee said it aims over the next two years to produce “a comprehensive governance framework” for national, local and international authorities to ensure human genome-editing science progresses within agreed ethical boundaries.

GM to Invest $2.7B in Sao Paulo, Brazil Factories Over 5 Years

General Motors said on Tuesday it would invest $2.7 billion in two Brazilian factories over the next five years, sparing them from a shakeup of the automaker’s operations, a decision hailed by the governor of Brazil’s largest state.

Sao Paolo state Governor Joao Doria told a joint news conference with GM executives that the plants in Sao Caetano do Sul and Sao Jose dos Campos had been slated for closure last December, and said he convinced GM to reverse the decision, saving jobs.

Last November, GM said it would slash thousands of jobs around the world and would close two unspecified plants outside of North America by the end of 2019.

The company declined to say whether its restructuring plans had referred to the two Brazilian factories, and declined to comment on whether the two plants had been slated for closure as Doria claimed.

Sitting next to Doria at the news conference, GM’s CEO for South America, Carlos Zarlenga, also did not directly address Doria’s recounting of the negotiations with GM.

Doria, a former businessman and reality TV show host, took office in January and became a vocal advocate for the state’s auto industry. Earlier this year, he said he would find a buyer for a Ford Motor Co. plant that is slated to close, after the U.S. automaker said it had tried and failed to find one.

At Tuesday’s news conference, Doria said GM told him in a call days before his inauguration that it planned to close the plants.

“I thought it was going to be good news,” Doria said. “But to my surprise I was told that the next day GM CEO Mary Barra would announce the closing of two factories in Sao Paulo. I fell off my chair.”

He said he dispatched his future state finance minister to fix the situation and landed a meeting in Miami with GM executives. He said 65,000 workers employed directly and indirectly by GM would have lost their jobs without his intervention.

Earlier this month, Doria announced an incentive plan granting automakers a 25 percent reduction in value added taxes if they created at least 400 jobs and invested at least 1 billion reais. At the news conference, GM announced it was creating 400 new jobs.

Zarlenga said the future of its Sao Paulo factories had presented GM “a really serious problem,” but did not confirm that the automaker had considered closing them down.

GM, the sales leader in Brazil, South America’s largest market, had warned local employees it was dealing with heavy losses and “sacrifices” would be necessary.

As announced, the plan pales in comparison to GM’s most recent investment plan in Brazil in 2014, which totaled $4 billion. However, the announcement does not include potential future investments in the automaker’s plants elsewhere in the country.

Chinese Supplements Supplier Sentenced for Fraud

A Chinese national has been sentenced to 18 months in a U.S. prison in connection with a scheme to sell mislabeled dietary supplements to U.S. companies.

Xu Jia Bao, an executive with Shanghai Waseta International Trade Co., was also sentenced to one year of probation for selling synthetic stimulant ingredients to a purported U.S. manufacturer of dietary supplements.  The U.S. company was, in fact, an undercover informant for the U.S. government.

The prosecutors said Xu admitted that he and other executives at Waseta knew major American retailers would not carry supplements known to contain certain stimulants, such as DMHA.  The stimulant, commonly known by its trade name octodrine, has been promoted for such uses as weight loss and enhanced athletic performance.  But researchers have warned about such possible side effects as high blood pressure, shortness of breath and heart attack. 

Xu also admitted that he and Waseta were responsible for a falsely labeled shipment of DMHA that was sent to Texas.

“Consumers are entitled to trust that dietary supplement products accurately identify their ingredients,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will vigorously pursue and prosecute those who attempt to circumvent.”

Xu was arrested in September 2017 while attending a dietary supplement trade show in Las Vegas.

Trump Renews Attack Alleging Social Media’s Political Bias

U.S. President Donald Trump on Tuesday accused social media platforms Facebook, YouTube and Twitter of favoring his Democratic opponents over him and his fellow Republicans.

“But fear not, we will win anyway, just like we did before! #MAGA,” he said in a tweet. MAGA refers to Trump’s 2016 campaign slogan, “Make America Great Again.”

Facebook and Twitter declined to comment. Alphabet’s Google, which owns YouTube, did not immediately comment.

The president and other conservatives have repeatedly complained that these big tech platforms treat them unfairly.

Trump has previously accused Twitter of restricting the visibility of prominent U.S. Republicans, without any providing evidence, and the avid social media user has promised to investigate the company’s practices.

Trump and other conservatives say Twitter targets fellow Republicans with a practice dubbed “shadow banning,” limiting the visibility of a Twitter user, including in the platform’s auto-populated dropdown search box.

Representative Devin Nunes of California has sued Twitter over the alleged practice, according to court documents.

Twitter Chief Executive Officer Jack Dorsey has said that algorithms have been changed to fix that issue.

The Justice Department held a meeting last fall between federal officials and state attorneys general to discuss allegations that conservative ideas are suppressed online, but so far no concrete action has been taken as a result.

Saudi Arabia Invests $23 Billion to Improve Living in Riyadh

Saudi Arabia said on Tuesday it would spend 86 billion riyals ($23 billion) to boost the quality of life in the capital Riyadh, increasing green space and recreational areas and installing 1,000 works of art across the city.

The four projects unveiled are part of efforts to open up Saudis’ cloistered lifestyles, encourage physical activity and make life more fun in the conservative kingdom, alongside reforms to diversify the economy away from oil.

They are the latest in a series of planned development investments that King Salman has launched at the side of his son, Crown Prince Mohammed bin Salman, after a global outcry over the killing of Saudi journalist Jamal Khashoggi last October tarnished the crown prince’s image.

Park, cycling track planned

State media showed the pair touring a diorama of the plans, which include a park four times the size of Central Park and 135 kilometers (84 miles) of cycling track. The king also ordered that one of the capital’s main roads be renamed after his son.

The murder of Washington Post columnist Khashoggi in the Saudi consulate in Istanbul sparked international criticism of the crown prince, who had won Western plaudits for easing social strictures. The CIA and some Western countries suspect him of ordering the killing, which Saudi authorities vehemently deny.

The kingdom, and the crown prince, have also been criticized for a crackdown on dissent, including putting 10 prominent women’s rights activists on trial last week.

King stands by son

While some critics abroad have called for the crown prince’s removal, the king has stood by his favorite son and heir apparent as Riyadh tries to move on from the murder and refocus attention on reform plans that require huge foreign investment.

Work on the four new projects will start in the second half of the year and come on line gradually between 2023 and 2030. They will create 70,000 jobs and offer investment opportunities worth 50 billion riyals to local and foreign investors, state news agency SPA said.

One initiative aims to increase six-fold the percentage of green areas in Riyadh, notorious for its multi-lane highways and concrete block buildings, by planting 7.5 million trees. Seven museums, an open art fair, pedestrian bridges and community gardens are also called for.

Life in capital more relaxed

Such features were unimaginable in Riyadh just a few years ago when religious police patrolled the streets enforcing strict social codes like gender segregation and bans on public music.

But life in the capital has become more relaxed in recent years after the crown prince clipped the wings of the religious police, ended a ban on cinemas and began organizing public concerts. He has won the support of many young Saudis.

Saudi citizens have no vote and falling oil income could affect their living standards in coming years. As a result, improving quality of life is seen as important for ensuring political stability.

Exclusive: US Vows to Pursue Ship Owners Who Violate Iran Oil Sanctions

A senior U.S. official says Washington is monitoring ships involved in clandestine transfers of Iranian oil and will hold anyone involved in such transfers responsible for violating U.S. sanctions against Iran.

“We are closely tracking ship-to-ship transfers of [Iranian] oil to evade our oil sanctions,” said Deputy Assistant Secretary of State for Counter Threat Finance and Sanctions David Peyman in an exclusive interview with VOA Persian recently at the State Department. “And we’re working closely with foreign governments to ensure they are monitoring ship-to-ship transfers off their coasts.”

One of the few companies monitoring global oil shipments, TankerTrackers.com, reported last week that it identified in February two cases of clandestine ship-to-ship transfers of Iranian oil with the transponders of the vessels involved being disabled. In an email sent Friday to VOA Persian, TankerTrackers.com co-founder Samir Madani said in both cases, a ship transferred Iranian oil to another ship before a third ship picked up the oil from the second ship and delivered it to a port.

“One transfer took around three months to complete, while the other happened during the span of a month or so,” Madani said.

TankerTrackers.com has said Iranian crude oil tankers have been trying to hide their activities since August by switching off the Automatic Identification System (AIS) transponders that reveal their position and other information.

President Donald Trump re-imposed U.S. sanctions on Iranian oil exports, Tehran’s top revenue source, in November as part of his withdrawal from what he viewed as a flawed 2015 nuclear deal between Iran and world powers. The sanctions unilaterally barred Iran from exporting oil to all but eight governments who were given six months to reduce their Iranian oil purchases to zero.

Peyman said U.S. authorities will act against ship owners, managers, insurance providers and mortgagees linked to vessels involved in the clandestine transfers of Iranian oil at sea. “If you are engaged in evasive action, which is really the worst kind of violation when it comes to U.S. sanctions, we will hold you accountable,” Peyman said.

Flying their flags

In another U.S. step aimed at cracking down on Iranian efforts to evade oil sanctions, Peyman said Washington has secured pledges from several nations to avoid putting their flags on Iranian oil tankers.

Last month, a State Department news site said Panama stripped 59 Iranian-linked ships of their right to fly the Panamanian flag, in a move aimed at supporting U.S. sanctions. It said Panama’s purge of the tankers from its ship registry, one of the world’s largest, will make it harder for Iran to deliver oil to ports around the world.

“Panama really led the way for other countries to follow suit by pulling their own flags and for other countries to commit to the U.S. that they will not reflag those ships that the Panamanians withdrew their flag from,” Peyman said.

The State Department declined to provide examples to VOA Persian of countries that committed not to reflag Iranian vessels that have been de-flagged by Panama.

Iranian Oil Minister Bijan Zanganeh has said Tehran will not comply with what it considers to be “illegal” U.S. sanctions. Speaking on a Jan. 10 visit to Baghdad, Zanganeh also said Iran will not discuss the volume or destination of its oil exports while it remained under U.S. sanctions.

Bypassing sanctions

Peyman said Washington also will take action against any company that uses a new European financial mechanism to engage Iran in transactions that violate U.S. sanctions. Britain, France and Germany launched the Institute in Support of Trade Exchanges, or INSTEX, in January to enable European companies to conduct business with Iran using barter techniques that bypass the U.S. financial system.

INSTEX’s EU sponsors initially intend for it to facilitate humanitarian trade with Iran, but its scope could be expanded to other types of business. U.S. sanctions on Iran contain exemptions for the provision of humanitarian aid, food and medicine to the Iranian people.

Iran has called on EU leaders to ensure that it continues to receive international trade benefits promised under the 2015 nuclear deal that EU nations have sought to uphold following the U.S. pullout. But Iranian officials in recent weeks have expressed disappointment with what they view as the EU’s slow rollout of INSTEX.

Tehran has good reason to be disappointed, according to Peyman.

“I’ve been to several countries in Europe, I’ve spoken with very large industry groups and businesses in the private sector … and every indication that I’m receiving is that there is absolutely no interest to utilize a European financial mechanism to do business with Iran,” he said.

Peyman, who was born in Iran, said no “responsible” European businesses want to trade with an Iranian government they perceive as responsible for killing Americans and sponsoring terrorism on European soil. He said European companies also make an independent business decision, based on a cost-benefit analysis, to do business with the United States and use the U.S. financial system rather than to maintain a relationship with Iran.

Tehran sees itself as a victim, rather than a perpetrator, of terrorism.

“To the extent that there is any appetite by [companies] to use [INSTEX], we’ll be tracking it very, very closely,” Peyman said. “Those companies’ ties to the U.S. financial system will be looked at, their use of U.S. banks will be looked at, and their use of non-U.S. banks that have ties to U.S. banks will be looked at. And we will look at any potential violations, direct or indirect, knowing or unknowing, of U.S. sanctions laws and will vigorously enforce [them].”

This article originated in VOA’s Persian Service.

High-Stakes Boeing Inquiry Hinges on Ethiopia Black Box Secrets

The investigation into the final minutes of Ethiopian Airlines Flight 302 turned on Tuesday to the secrets in the cockpit voice recorder as Boeing and a shaken global aviation industry hung on the outcome.

The voices of Captain Yared Getachew and First Officer Ahmednur Mohammed could reveal what led to the March 10 crash of the Boeing 737 MAX that has worrying parallels with another disaster involving the same model off Indonesia in October.

The twin disasters killed 346 people.

Black box data was downloaded in France but only Ethiopian experts leading the probe have heard the dialogue between Getachew, 29, and Mohammed, 25. The data was back in Addis Ababa on Tuesday, sources familiar with the probe told Reuters.

Experts believe a new automated system in Boeing’s flagship MAX fleet — intended to stop stalling by dipping the nose — may have played a role in both crashes, with pilots unable to override it as their jets plunged downwards.

Both came down just minutes after take-off after erratic flight patterns and loss of control reported by the pilots.

However, every accident is a unique chain of human and technical factors, experts say.

The prestige of Ethiopian Airlines, one of Africa’s most successful companies, and Boeing, the world’s biggest planemaker and a massive U.S. exporter, is at stake.

Awkward questions for industry

Lawmakers and safety experts are questioning how thoroughly regulators vetted the MAX model and how well pilots were trained on new features. For now, regulators have grounded the existing fleet of more than 300 MAX aircraft and deliveries of nearly

5,000 more — worth well over $500 billion — are on hold.

Pressure on the Chicago-headquartered company has grown with news that federal prosecutors and the U.S. Department of Transportation are scrutinizing how carefully the MAX model was developed, two people briefed on the matter said.

The U.S. Justice Department was looking at the Federal Aviation Administration’s (FAA) oversight of Boeing, one of the people said. And a federal grand jury last week issued at least one subpoena to an entity involved in the plane’s development. The rest of the world is watching anxiously.

The European Union’s aviation agency EASA promised its own deep look at Boeing’s software updates and failure modes.

“We will not allow the aircraft to fly if we have not found acceptable answers to all our questions,” its executive director Patrick Ky told an EU parliament committee hearing.

“Whatever the FAA does. OK? This is a personal guarantee that I make in front of you.”

Canada said it would independently certify the MAX in future, rather than accepting FAA validation, and would also send a team to help U.S. authorities evaluate proposed design changes.

In the hope of getting its MAX line back into the air soon, Boeing said it will roll out a software update and revise pilot training. In the case of the Lion Air crash in Indonesia, it has raised questions about whether crew used the correct procedures.

The MAX, which offers cost savings of about 15 percent on fuel, was developed for service from 2017 after the successful launch by its main rival of the Airbus A320neo.

Argus Research cut Boeing stock to “hold” from “buy”, giving the planemaker at least its fourth downgrade since the crash, Refinitiv data showed. Its shares, however, were enjoying a rare respite on Tuesday, up 1.6 pct to $378 and cutting losses since the crash to under 11 pct.

Global ramifications

In the hot seat over its certification of the MAX without demanding additional training and its closeness to Boeing, the FAA has said it is “absolutely” confident in its vetting.

The crisis has put pressure on airline companies.

Norwegian Airlines has already said it will seek compensation after grounding its MAX aircraft.

Various firms are reconsidering Boeing orders, and some are revising financial forecasts given they now cannot count on maintenance and fuel savings factored in from the MAX.

Illustrating the hoops airlines were jumping through, Air Canada said it intends to keep its MAX aircraft grounded until at least July 1, would accelerate intake of recently acquired Airbus A321 planes, and had hired other carriers to provide extra capacity meantime.

Beyond the corporate ramifications, anguished relatives are still waiting to find out what happened.

Many have visited the crash site in a charred field to seek some closure, but there is anger at the slow pace of information and all they have been given for funerals is earth.

“I’m just so terribly sad. I had to leave here without the body of my dead brother,” said Abdulmajid Shariff, a Yemeni relative who headed home disappointed on Tuesday.

NY Mulls Medication-assisted Opioid Treatment in all Lockups

Laura Levine says she never smoked a cigarette or touched a drink until age 35. Then the mother of five tried heroin, and she was hooked.

After some brushes with the law — petty larceny to support her habit — she was booked into Nassau County jail and withdrawal started kicking in. As the nausea, shaking and sweating grew worse, she began pleading with guards for help.

“They kind of laughed and said, ‘You’ll be fine. Nobody dies from heroin withdrawal,’” said Levine, who is in recovery and now works to help others struggling with opioids. “I would rather give birth to all five of my children again without medication than go through withdrawal again.”

More help for people like Levine could be on the way, as lawmakers in New York are considering a measure to make medication-assisted treatment such as methadone or suboxone available to all prison and jail inmates struggling with opioid addiction.

States across the country are considering similar approaches amid research that shows that the drugs along with behavior therapy can help addicts reduce the withdrawal symptoms and cravings that drive many addicts to relapse.

Federal statistics suggest more than half of all inmates in state prisons nationwide have a substance- abuse problem. New York officials say that percentage could be as high as 80 percent in state and local lockups, which at any given time have about 77,000 inmates.

Drug policy experts point to the success of a similar program in Rhode Island, which has seen a sharp drop in the number of former inmates who died of overdoses, from 26 in 2016 to nine last year.

Other successes have been reported in local jails in Louisville, Kentucky; Sacramento, California and in Massachusetts.

“It makes no sense that people who have a public health issue don’t have access to medicine,” said Jasmine Budnella, drug policy coordinator at VOCAL-NY, a group that advocates on behalf of low-income New Yorkers on such issues as criminal justice, drug policy and homelessness. “In the U.S., we talk about human rights but we are literally torturing these people.”

Two years ago, 24-year-old Matt Herring died of a drug overdose after years of struggling with addiction and bouncing in and out of correctional facilities. His mother, Patricia Herring, said Matt once tried to smuggle suboxone into jail in order to avoid the horrors of withdrawal. Guards found the medication and took it away.

Patricia Herring has now become a self-described “mom on a mission” to push for greater resources for addiction treatment in correctional facilities.

“If he had been given medication-assisted treatment when he entered, I don’t know, maybe things would have been different,” she said.

With no organized opposition, the debate over supporting medication-assisted treatment in correctional settings comes down to dollars and cents. Some counties have paid for programs in their jails; others have not. A total of six state and local lockups in the New York City area, for example, have limited drug-assistance programs for opioid addicts.

Albany County became the first county in the state outside of New York City to offer medication-assisted treatment. Sheriff Craig Apple said he’s become a believer.

“It took me a while to get on board with this, but we’re already seeing early success,” he said.

A state budget proposal from Democratic Gov. Andrew would spend $3.75 million to expand access in county jails, and use more than $1 million to expand its use in state prisons. Democratic leaders of the state Legislature have called for more, and advocates say they want to see at least $7 million in the annual budget.

A decision is expected before April 1, when the new budget is due.

“Addiction is a disease,” said New York Assemblywoman Linda Rosenthal, a Manhattan Democrat who is sponsoring the drug-treatment legislation. “We should treat it like a disease.”

Hawaii Weighs First-in-Nation Plastic Bans at Restaurants

Hawaii would be the first state in the U.S. to ban most plastics used at restaurants under legislation that aims to cut down on waste that pollutes the ocean

Hawaii would be the first state in the U.S. to ban most plastics at restaurants under legislation that aims to cut down on waste that pollutes the ocean.

Dozens of cities across the country have banned plastic foam containers, but Hawaii’s measure would make it the first to do so statewide. The liberal state has a history of prioritizing the environment — it’s mandated renewable energy use and prohibited sunscreen ingredients that harm coral.

A second, more ambitious proposal would go even further and prohibit fast-food and full-service restaurants from distributing and using plastic drink bottles, utensils, stirring sticks, bags and straws.

The Hawaii efforts would be stricter than in California, which last year became the first state to ban full-service restaurants from automatically giving out plastic straws, and broader than in Seattle, San Francisco and other cities that have banned some single-use plastics.

Activists believe the foam container measure has a better chance of passing in Hawaii.

“We have this reputation of setting the example for the world to follow, and that’s what we’re trying to do here,” state Sen. Mike Gabbard, lead author of the more ambitious measure, said to the Senate. “Our state can once again take the lead in protecting our environment.”

Gabbard, father of Democratic presidential candidate and U.S. Rep. Tulsi Gabbard, said 95 percent of plastic packaging worldwide is thrown out after being used once. In the U.S., 500 million plastic straws are used and thrown out every day, he said.

Discarded, slow-to-degrade plastic is showing up at sea, as in a massive gyre northeast of the Hawaiian islands, and on beaches.

Plastics also contribute to climate change because oil is used to make them, said Stuart Coleman, Hawaii manager for the Surfrider Foundation.

Eric S.S. Wong, co-owner of two fast-food establishments on Oahu, said not being able to serve food in plastic foam containers would drive up his costs at a time when he faces rising health insurance charges for his employees and a possible minimum wage hike that lawmakers also are considering.

He said he’ll have to raise prices.

“Now all of the sudden, your family’s $30 dining experience became $37 or $38,” Wong said.

His Wiki Wiki Drive Inn takeout counter in Honolulu sells sandwiches, breakfast meals and Hawaii favorites like Loco Moco, which features white rice topped with a hamburger patty, fried egg and gravy.

A package of 200 foam boxes costs him $23, while the same number of biodegradable boxes would cost $57, he said.

Chris Yankowski of the Hawaii Restaurant Association, which represents 3,500 restaurants, said lawmakers are trying to do “too much too fast.”

Yankowski, who is also president of Triple F Distributors, argued that good alternatives to plastic products are not yet available. Hawaii’s cities and counties also don’t provide composting facilities, so there is no organized place to dispose of compostable containers that lawmakers say restaurants should use instead, he added.

 “It’s almost like we want to do great things for the environment, but we’re not ready to handle it when we change it over,” Yankowski said.

The Hawaii Food Industry Association, which counts the state’s biggest supermarkets and convenience stores as members, initially opposed the foam container ban but now supports it.

The group said in written testimony that it’s encountered difficulties coping with varied local regulations and it wants the state to create a consistent standard. Two main counties — Hawaii and Maui — have already adopted plastic foam bans. Maui’s took effect on Dec. 31, while Hawaii’s takes effect on July 1.

The association still opposes the broader measure, which also would ban plastic garbage bags.

The president of Island Plastic Bags, a Hawaii company that makes plastic bags, said the legislation would prohibit his company from selling trash bags to nursing homes and hospitals as well as restaurants and hotels.

Grocery stores wouldn’t be able to sell trash can liners, Adrian Hong said in written testimony. It would create a “public health crisis,” he said.

Gabbard said his proposal was in the early stages so lawmakers have time to address such concerns.

The state Senate has passed both bills. They still must get through several House committees and the full House before heading to the governor.

Cindy McMillan, a spokeswoman for Gov. David Ige, said he hasn’t stated a position on the measures yet.

Justin Macia, a pharmacist in Honolulu, said he would like people to use less plastic and stop using plastic foam entirely because of how long it takes to degrade. Cardboard containers would be a great alternative, he said.

“It’s definitely something that’s got to go,” he said, after eating a sandwich from a foam takeout box.

In Thai Election, New ‘War Room’ Polices Social Media

In Thailand’s election “war room,” authorities scroll through thousands of social media posts, looking for violations of laws restricting political parties’ campaigning on social media that activists say are among the most prohibitive in the world.

The monitors are on the look-out for posts that “spread lies, slander candidates, or use rude language,” all violations of the new electoral law, said Sawang Boonmee, deputy secretary-general of the Election Commission, who gave a Reuters team an exclusive tour of the facility.

When they find an offending post, on, for example, Facebook, they print it out, date-stamp it, and file it in a clear plastic folder, to be handed over to the Election Commission and submitted to Facebook for removal.

“When we order content to be removed, we’ll reach out to the platforms, and they are happy to cooperate with us and make these orders efficient,” Sawang said.

Sawang said the tough electoral laws governing social media for the March 24 election, the first since a 2014 military coup, are a necessary innovation aimed at preventing manipulation that has plagued other countries’ elections in recent years.

“Other countries don’t do this. Thailand is ahead of the curve with regulating social media to ensure orderly campaigning and to protect candidates,” he said.

A Facebook representative said it reviewed requests from governments on a case-by-case basis.

“We have a government request process, which is no different in Thailand than the rest of the world,” the representative said.

Twitter did not respond to a request for comment.

Democracy advocates, worry the social media restrictions laid out by the military government may be impeding parties from freely campaigning.

The rules require that candidates and parties register social media handles and submit a post to the commission, stating what platform it will appear on and for how long.

Parties and candidates are only allowed to discuss policies, and posts that are judged to be misleading voters or that portray others negatively could see the party disqualified, or a candidate jailed for up to 10 years and banned from politics for 20.

Pongsak Chan-on, coordinator of the Bangkok-based Asia Network for Free and Fair Election (ANFREL), said the rules go far beyond combating “fake news” and raise questions about how free and fair the election will be.

“The rules are stricter than in any recent elections anywhere. They’re so detailed and strict that parties are obstructed,” he told Reuters.

‘Doesn’t Bode Well for Democracy’

The monitoring center, with a signboard reading “E-War Room,” has three rows of computers and stacks of printouts, with half a dozen workers spending eight hours a day searching for violations of the law.

Sawang said another intelligence center scanned for violations 24 hours a day but it was “off-limits” to media.

The election is broadly seen as a race between the military-backed prime minister, Prayuth Chan-ocha, and parties that want the military out of politics.

But the stringent rules have left anti-junta parties fretting about how to campaign online, nervous that they could inadvertently break a rule that triggers disqualification.

Up to now, the new rules have not been used to disqualify any candidates though the very threat has had a dampening effect and encouraged self-censorship.

“They create complications for parties,” said Pannika Wanich, spokeswoman for the new Future Forward Party, which has attracted support among young urban folk who have come of age on social media.

She said her party had to consult a legal team before making posts.

Some candidates have deactivated their Facebook pages while others have removed posts that might cause trouble.

Last month, Future Forward leader Thanathorn Juangroonruangkit faced disqualification over an allegation that he misled voters in his biography on the party’s website. The commission dismissed the case last week.

In another petition, the commission was asked to ban the party’s secretary-general for slandering the junta in a Facebook post.

“It’s very restrictive and doesn’t bode well for democracy,” said Tom Villarin, a Philippine congressman and member of ASEAN Parliamentarians for Human Rights (APHR). “Putting more restrictions on social media during a campaign season defeats the purpose of holding elections in the first place.”

Fighting Fake News

About 74 percent of Thailand’s population of 69 million are active social media users, putting Thais among the world’s top 10 users, according to a 2018 survey by Hootsuite and We Are Social.

Thailand is Facebook’s eighth biggest market with 51 million users, the survey showed.

Facebook said it has teams with Thai-language speakers to monitor posts and restricts electoral advertisements from outside the country.

“Combating false news is crucial to the integrity and safety of the Thailand elections,” said Katie Harbath, Facebook’s Global Politics and Government director, during a Bangkok visit in January.

Sawang said the election commission has also gained cooperation from Twitter and Japanese messaging app Line, used by 45 million Thais.

Line Thailand told Reuters it did not monitor chats for the election commission but helped limit fake news by showing only articles from “trusted publishers” on its news feature.

S. Korea Alert System Warns ‘Smartphone Zombies’ of Traffic

A city in South Korea, which has the world’s highest smartphone penetration rate, has installed flickering lights and laser beams at a road crossing to warn “smartphone zombies” to look up and drivers to slow down, in the hope of preventing accidents.

The designers of the system were prompted by growing worry that more pedestrians glued to their phones will become casualties in a country that already has some of the highest road fatality and injury rates among developed countries.

State-run Korea Institute of Civil Engineering and Building Technology (KICT) believes its system of flickering lights at zebra crossings can warn both pedestrians and drivers.

In addition to red, yellow and blue LED lights on the pavement, “smombies” – smartphone zombies – will be warned by laser beam projected from power poles and an alert sent to the phones by an app that they are about to step into traffic.

“Increasing number of smombie accidents have occurred in pedestrian crossings, so these zombie lights are essential to prevent these pedestrian accidents,” said KICT senior researcher Kim Jong-hoon.

The multi-dimensional warning system is operated by radar sensors and thermal cameras and comes with a price tag of 15 million won ($13,250) per crossing.

Drivers are alerted by the flashing lights, which have shown to be effective 83.4 percent of the time in the institute’s tests involving about 1,000 vehicles.

In 2017, more than 1,600 pedestrians were killed in auto related accidents, which is about 40 percent of total traffic fatalities, according to data from the Traffic Accident Analysis System.

South Korea has the world’s highest smartphone penetration rate, according to Pew Research Center, with about 94 percent of adults owning the devices in 2017, compared with 77 percent in the United States and 59 percent in Japan.

For now, the smombie warning system is installed only in Ilsan, a suburban city about 30 km northwest of the capital, Seoul, but is expected to go nationwide, according to the institute.

Kim Dan-hee, a 23-year-old resident of Ilsan, welcomed the system, saying she was often too engrossed in her phone to remember to look at traffic.

“This flickering light makes me feel safe as it makes me look around again, and I hope that we can have more of these in town,” she said.

Ethiopia and Indonesia Crash Parallels Heap Pressure on Boeing

Investigators into the Boeing 737 MAX crash in Ethiopia have found striking similarities in a vital flight angle with an airplane that came down off Indonesia, a source said, piling pressure on the world’s biggest planemaker.

The Ethiopian Airlines disaster eight days ago killed 157 people, led to the grounding of Boeing’s marquee MAX fleet globally and sparked a high-stakes inquiry for the aviation industry.

Analysis of the cockpit recorder showed its “angle of attack” data was “very, very similar” to that of the Lion Air jet that went down off Jakarta in October, killing 189 people, a person familiar with the investigation said.

The angle of attack is a fundamental parameter of flight, measuring the degrees between the air flow and the wing. If it is too high, it can throw the plane into an aerodynamic stall.

“If that’s the case, that does raise the possibility that there is a similar occurrence between the Lion Air and Ethiopian Airlines accidents,” said Clint Balog, a Montana-based professor at Embry-Riddle Aeronautical University.

Even then, it was too early to draw firm conclusions, he added.

A flight deck computer’s response to an apparently faulty angle-of-attack sensor is at the heart of the ongoing probe into the Lion Air crash.

Ethiopia’s Transport Ministry, France’s BEA air accident authority and the U.S. Federal Aviation Administration (FAA) have all pointed to similarities between the two disasters, but safety officials stress the investigation is at an early stage.

“Everything will be investigated,” Ethiopian Transport Ministry spokesman Musie Yehyies told Reuters.

Both planes were 737 MAX 8s and crashed minutes after takeoff with pilots reporting flight control problems.

Under scrutiny is a new automated system in the 737 MAX model that guides the nose lower to avoid stalling, while Boeing has raised questions in the Lion Air case about whether crew used the correct procedures.

Lawmakers and safety experts are asking how thoroughly regulators vetted the system and how well pilots around the world were trained for it when their airlines bought new planes.

Boeing Plans New Software

Boeing Chief Executive Dennis Muilenburg, facing the biggest crisis of his tenure, said on Monday the company understands that “lives depend on the work we do.”

Muilenburg also said a software upgrade for its 737 MAX aircraft that the planemaker started in the aftermath of the Lion Air deadly plane crash was coming “soon.”

The fix was developed when regulators suggested false sensor data could cause a system known as MCAS (Maneuvering Characteristics Augmentation System) to overreact and make the jet hard to control.

Canada is re-examining the validation it gave Boeing’s 737 MAX jets, following reports of a U.S. probe into the aircraft’s certification by the FAA, Canadian Transport Minister Marc Garneau said on Monday.

Acting FAA Administrator Dan Elwell said on Wednesday in a call with reporters that he was “absolutely” confident in the certification of the Boeing 737 MAX 8. The FAA did not immediately respond to a request for comment on Canada’s action.

The FAA finds itself in the hot seat, especially over its decision to certify the 737 MAX without demanding additional training. FAA and Boeing will face congressional questions about why the software upgrade took so long to complete and whether Boeing had too great a role in the certification process.

With the prestige of one of the United States’ biggest exporters at stake, Boeing has halted deliveries of its best-selling model that was intended to be the industry standard but is now under a shadow. Developed in response to the successful launch of the Airbus A320neo, some 370 MAX jets were in operation at the time of the Ethiopian crash, and nearly 5,000 more on order.

After a 10 percent drop last week that wiped nearly $25 billion off its market share, Boeing stock slid about 1.8 percent on Monday.

Weekend media reports intensified pressure on Boeing and its domestic U.S. regulator following a call last week by a U.S. flight attendants union for a “certification review.”

The Seattle Times said the company’s safety analysis of the MCAS system had crucial flaws, including understating power.

The Wall Street Journal reported that prosecutors and the U.S. Department of Transportation were scrutinizing the FAA’s approval of the MAX series, while a jury had issued a subpoena to at least one person involved in its development.

Boeing and the FAA declined to comment on that.

Last week, sources told Reuters that investigators found a piece of a stabilizer in the Ethiopian wreckage set in an unusual position similar to that of the Lion Air plane.

Future Orders at Stake

Ethiopia is leading the probe, although the black boxes were sent to France and U.S. experts are also participating.

Investigators were expected to select a handful of the roughly 1,800 parameters of flight data in their initial review, including those thrown up by the Lion Air investigation, before analyzing the rest in coming weeks and months.

Norwegian Airlines has already said it will seek compensation after grounding its MAX aircraft, and various companies are reconsidering orders.

Boeing’s main rival, Airbus, has seen its stock rise 5 percent since the crash, but cannot simply pick up the slack given the complicated logistics of plane-building.

For now, Boeing continues to build planes while keeping them parked.

Some airlines are revising financial forecasts, too, given the MAX had been factored in as providing around 15 percent maintenance and fuel savings.

WestJet Airlines Ltd. on Monday became the second Canadian carrier to suspend its 2019 financial projections, following Air Canada in light of the 737 MAX groundings.

Paris Catches Asian Tigers in Most Expensive City Race

Paris and Hong Kong for the first time joined Singapore as the world’s most expensive cities to live in, a study revealed on Tuesday, with utilities and transport driving up the cost of living.

Zurich, Geneva and Japan’s Osaka trailed closely, with emerging market cities like Istanbul and Moscow plummeting down the ranking due to high inflation and currency depreciation, said the Economist Intelligence Unit’s bi-annual survey of 133 cities.

It was the first time in more than 30 years that three cities shared the top spot, a sign that pricey global cities are growing more alike, said the report’s author, Roxana Slavcheva.

“Converging costs in traditionally more expensive cities … is a testament to globalization and the similarity of tastes and shopping patterns,” she said in a statement.

“Even in locations where shopping for groceries may be relatively cheaper, utilities or transportation prices drive up overall cost of living,” she said.

Rising costs in cities are often driven by a vibrant job market attracting skilled workers with high wages, said Anthony Breach, an analyst with the British think tank Center for Cities — which was not involved in the study.

Urban planners need to plan ahead and build more housing to keep prices affordable and overall costs down, Breach told the Thomson Reuters Foundation.

For the EIU survey researchers compared the cost of more than 150 items such as cars, food, rent, transport and clothing in 133 cities.

A woman’s haircut was about $15 in Bangalore, India, compared to $210 in New York, for example, while a bottle of beer was about half a dollar in Lagos, Nigeria, and more than $3 in Zurich.

British cities recovered a few positions a year after reaching the cheapest level in more than two decades due to Brexit uncertainty, with London ranking 22nd and Manchester 51st, up eight and five spots respectively.

Political turmoil in Venezuela plummeted Caracas to the bottom of the ranking, followed by Damascus, Syria, with Karachi, Pakistan, Buenos Aires, Argentina, and New Delhi also featuring among the 10 cheapest cities.

But a city’s drop in the index does not necessarily mean life automatically gets cheaper for people living there, as prices adjust to inflation often quicker than wages, said Gunes Cansiz of the World Resources Institute (WRI), a think tank.

“The cost of living in Istanbul, for example, might seem to have decreased, but since household expenses have increased, this has no positive reflection on the daily life of Istanbulites,” said Cansiz, director at WRI’s Turkey Sustainable Cities program.

NATO to Receive First Northrop Surveillance Drone, Years Late

NATO is to receive the first of five Northrop Grumman high-altitude drones in the third quarter after years of delays, giving the alliance its own spy drones for the first time, the German government told lawmakers.

Thomas Silberhorn, state secretary in the German Defense Ministry, said the NATO Alliance Ground Surveillance (AGS) drone would be delivered to an air base in Sigonella, Italy, followed by four additional systems, including drones and ground stations built by Airbus, later in the year.

NATO plans to use the aircraft, a derivative of Northrop’s Global Hawk drone, to carry out missions ranging from protection of ground troops to border control and counter-terrorism. The drones will be able to fly for up to 30 hours at a time in all weather, providing near real-time surveillance data.

Northrop first won the contract for the AGS system from NATO in May, 2012, with delivery of the first aircraft slated for 52 months later. However, technical issues and flight test delays have delayed the program, Silberhorn said.

Andrej Hunko, a member of the radical Left opposition party, called for Germany to scrap its participation in the program, warning of spiraling costs and the risk that it could escalate the conflict in eastern Ukraine.

“The drones are closely linked to a new form of warfare,” he said. “They stand for an arms race that will see existing surveillance and spy systems replaced with new platforms.”

Silberhorn, in a previously unreported response to a parliamentary query from Hunko, said NATO had capped the cost of the program at 1.3 billion euros ($1.47 billion) in 2007.

Germany, which is funding about a third of system, scrapped plans to buy its own Global Hawk drones amid spiraling costs and certification problems, and is now negotiating with Northrop to buy several of its newer model Triton surveillance drones.

Fifteen NATO countries, led by the United States, will pay for the AGS system, but all 29 alliance nations are due to participate in its long-term support.

Germany has sent 76 soldiers to Sigonella to operate the surveillance system and analyze its findings, Silberhorn said.

He said a total of 132 German soldiers would eventually be assigned to AGS, of whom 122 would be stationed in Sigonella.

NATO officials had no immediate comment on the program’s status or whether Northrop faced penalties for the delayed delivery.

No comment was available from Northrop.

US Government, Intel Aim for Nation’s Fastest Computer 

A U.S. government-led group is working with chipmaker Intel and Cray to develop and build the nation’s fastest computer by 2021 for conducting nuclear weapons and other research, officials said Monday.

The Department of Energy and the Argonne National Laboratory near Chicago said they were working on a supercomputer dubbed Aurora with Intel, the world’s biggest supplier of data center chips, and Cray, which specializes in the ultra-fast machines. 

The $500 million contract for the project calls on the companies to deliver a computer with so-called exaflop performance — that is, being able to perform 1 quintillion (1,000,000,000,000,000,000) calculations per second.

If the project succeeds, Aurora would represent nearly an order of magnitude leap over existing machines that feature so-called petaflop performance, capable of doing 1 quadrillion (1,000,000,000,000,000) calculations a second. 

It also heightens the stakes in a race in which the United States, China, the European Union and Japan have all announced plans to build exaflop-capable supercomputers. 

One of Aurora’s primary functions would be simulating nuclear blasts, a pillar of weapons development since the ban of live detonation testings.

Aurora will be built with artificial intelligence capabilities for projects such as developing better battery materials and helping the Department of Veterans Affairs prevent suicides, Rick Stevens, an associate lab director with Argonne overseeing the exascale computing project, said during a news 

briefing.

The project is a win for Intel, which will supply its Xeon CPU chips and Optane memory chips for Aurora. 

Intel has been fending off rival U.S. chipmaker Nvidia Corp.’s rise in the chip content of supercomputers as the machines take on more artificial intelligence work. Nvidia’s chips are found in five of the world’s current top 10 supercomputers, though the Nvidia chips are found alongside chips from its rivals, according to TOP500, which ranks the machines.

The world’s current most powerful machine, the Summit supercomputer at Oak Ridge National Laboratory in Tennessee, contains chips from International Business Machines Corp. and Nvidia.

The source of chips for supercomputers has become a factor in trade tensions between the United States and China. The world’s third-fastest supercomputer — the Sunway TaihuLight in China — has chips developed domestically in China. 

Chirag Dekate, an analyst with Gartner who studies the supercomputing market, said that despite the small contract size relative to Intel’s overall revenue, the work done on Aurora will eventually filter down to the company’s commercial customers. 

“It’s not just a jingoistic race between the U.S. and China,” Dekate said. “The innovations that Intel is developing here will percolate down to other parts of its business.” 

Mental Health ‘Epidemic’ Hits Generation Z

Nineteen-year-old college student Margaret Pisacano can usually feel a panic attack coming on; her thoughts start to spiral, her breathing speeds up, and her heart races.

“It’s as if a tornado and a tsunami of emotions just like overcame your body and you couldn’t control anything,” Pisacano says. “It was like almost a total loss of control over any feeling or thinking in your body.”

The Arizona native, who attends college in Florida, was first diagnosed with general anxiety disorder in middle school. She is among millions of stressed-out members of Generation Z — the group of young people born roughly between 1995 and 2015, who are currently between 4 and 24 years old.

A report released Thursday by the American Psychological Association finds the rate of adolescents reporting symptoms of major depression increased 52 percent between 2005 and 2017 — from 8.7 percent to 13.2 percent — among youth from the ages of 12 and 17.

The increase was even higher — 63 percent from 2009 to 2017 — among young adults between the ages of 18 and 25.

The survey examined data from 611,880 adolescents and adults. The researchers did not find a similar increase in adults older than 26. 

Today, one in three teens between the ages of 13 and 18 has an anxiety disorder.

“The current rate of anxiety is 31 percent in adolescents,” says Dr. Elena Mikalsen, head of the Psychology Section at the Children’s Hospital of San Antonio in Texas. “It’s an epidemic. It’s a mental health emergency.”

Everyone gets anxious some of the time, but that anxiety is usually temporary. However, for a person with an anxiety disorder, the feeling doesn’t go away and can worsen over time to the point where it might trigger headaches, chronic pain, stomach issues, immune system suppression and disrupted sleep.

School and the pressure to get good grades appears to be the leading source of stress for many young people.

“We see all of our anxiety referrals very clearly as soon as the school year starts, almost like from the first week and until the school year ends and then we see none of them in the summer,” says Mikalsen. “The worst is the end of May when all of the teens get their grades…they’re just panicking terribly. We hospitalize kids for all kinds of medical issues because they get their grades and their immune system just collapses. The highest rate of suicide is in April and May when they’re having finals, when they’re having exams.”

The American Psychological Association found that almost one-third of teens say they feel sad or depressed and overwhelmed due to stress.

Claire Taylor, a 17-year-old high school junior in Massachusetts, was diagnosed with generalized anxiety a couple of years ago, but didn’t have her first panic attack until she started visiting colleges ahead of her scheduled high school graduation next year.

“For my whole life, college has kind of been my end goal…It kind of hit me that college is not the end, and that there’s more after that,” Taylor says. “I’m really not sure what I want to do when I go to college for and so just the whole prospect kind of freaked me out…I was shaking and crying and I couldn’t quite articulate why until after the fact.”

College-related anxiety is rising, according to a 2017 report from the Higher Education Research Institute at UCLA. The institute surveyed 8,264 incoming first-year students at 30 U.S. colleges and universities and found that 39 percent reported frequently feeling anxious, but fewer than half of those students say they sought personal counseling in college.

Tarek Saoud, 22, began suffering from panic attacks after he went to college and felt the mounting pressure to set a course for success in life.

“I tried switching my (college) majors a few times, but I really did not like anything,” he says. “Not being able to find something was a big issue for me…Where I grew up here in Northern Virginia, it’s very expected to be either a businessman, a lawyer, a doctor, a scientist, something like along those lines. Those are what is seen as successful.”

Getting an appointment at the on-campus mental health center proved almost impossible, according to Saoud, who recounts a near-suicide attempt that was interrupted by a concerned friend who came looking for him.

“I’d been thinking about suicide for months at that point…there’s this big ledge I was sitting on with this big fall under it. I was just kind of sitting there thinking about, ‘Could I do this right now? Like, do I have everything in order? Did I forget anything that would get anyone in trouble and what not?’ Not like sad about it, just getting my things in order,” he says.

“I kind of felt crazy in my own head,” Saoud says. “When I was getting anxiety, super-irrational thoughts were running through my head all the time. Things like, ‘You’re never going to be happy, things are never going to get better’…It’s really easy to mask whatever inner issues are going on by being a super social, outgoing person, drinking a lot.”

He left school in Ohio during his sophomore year in college, returning home to Northern Virginia where he was eventually diagnosed with anxiety and clinical depression.

There are two new stressors impacting young people are perhaps a sign of the times. Mikalsen says more of her patients are concerned about school shootings and the lockdown drills they practice at school.

“I’ve been a psychologist for about twenty years and this is the first year that I now have patients who have Post Traumatic Stress Disorder from school lockdowns,” she says. “Before, it was you hide and now the hiding is not working, so now it’s attack the shooter and everybody’s like, ‘I can’t attack anybody. I’m too scared.’ And they’re supposed to be climbing on desks and throwing things and they’re practicing that in the classroom.”

The way their parents use social media is also causing stress for some teens.

“There is a problem happening right now with parents wanting to videotape their children and take pictures of their children in vulnerable moments. Like when kids are really stressed out, like when they’re anxious, when they’re upset,” says Mikalsen. “There’s a general lack of boundaries now because we’re all on social media…and I think it’s become a really big problem for kids that their information is just shared out there everywhere with everybody, causing stress and anxiety.”

Saoud says learning to express his feelings has helped get his anxiety under control, but not all young people feel free to be candid about their mental health.

“I don’t think a lot of my friends know because I don’t talk about it that often,” says Pisacano, the 19-year-old Florida college student. “It feels like they don’t want to hear me talk about it almost. It’s almost like I want to shield them from discomfort. I’m not uncomfortable talking about my mental health issues, but I think my friends are uncomfortable that I’m mentally ill.”

Taylor, the 17-year-old Massachusetts high school student, feels that she has generally accepted her anxiety as a fact of life. But she does feel regret when her mental illness stops her from doing things she would otherwise enjoy, like an exchange trip to Spain that she passed on due to her fear of flying.

“Even though I had a lot of great friends on the trip, I was still too afraid,” she says, “so in that sense, like I wish that my anxiety either manifested itself differently, or that I didn’t have anxiety, because I think it would have been really fun to go on the trip and it would have been an experience that I would remember forever, but usually I just kind of accept it as part of who I am.”

Saoud is attending community college for now and intends to transfer to a four-year college soon. Still on medication and seeing a psychologist, he doesn’t say he’s ‘cured,’ but feels there’s been a huge improvement over when he hit bottom.

“Sometimes I get in my head about the future and I think, ‘Where’s the point?’…but those are the times that I really sit down with myself and think about what I have achieved, what I want to achieve, how much I have to be grateful for,” Saoud says. “I’d like to say I’m hopeful. I really do believe that I have a lot of potential for the future.”

 

Japan to Make Crater on Asteroid to Get Underground Samples

Japan’s space agency said Monday that its Hayabusa2 spacecraft will follow up last month’s touchdown on a distant asteroid with another risky mission — to drop an explosive to make a crater and collect underground samples to get possible clues to the origin of the solar system.

Hayabusa2 made history on Feb. 22 when it successfully touched down on the boulder-rich asteroid, where it also collected some surface fragments.

The Japan Aerospace Exploration Agency said Hayabusa2 is to drop a copper impactor the size of a baseball and weighing 2 kilograms (4.4 pounds) on the asteroid on April 5 to collect samples from deeper underground where they had not been exposed to the sun or space rays.

The new mission will require an immediate evacuation of the spacecraft to the other side of the asteroid so it won’t get hit by flying shards from the blast, JAXA said. While moving away, Hayabusa2 will leave a camera to capture the outcome.

The mission will allow JAXA scientists to analyze details of a crater to find out the history of the asteroid, said Koji Wada, who is in charge of the project.

Hayabusa2 will start descending toward the asteroid the day before to carry out the mission from its home position of 20 kilometers (12 miles) above. It will drop a cone-shaped piece of equipment containing explosives that will blast off a copper plate on the bottom. It will turn into a ball and slam into the asteroid at the speed of 2 kilometers (1.2 miles) per second.

JAXA has previously planned to have Hayabusa2 briefly touchdown in a crater, but an agency researcher, Takashi Kubota, said they may not force it to prioritize safety for the spacecraft. Kubota said it would be the first time a spacecraft would take materials from underground a space object.

The asteroid, named Ryugu after an undersea palace in a Japanese folktale, is about 900 meters (3,000 feet) in diameter and about 300 million kilometers (180 million miles) from Earth.