China-US Tariff Truce is Opportunity with Tight Time Frame

China and the United States have agreed to put tariffs on hold and give negotiations a chance. But the short 90-day period the two have to finish negotiations, which includes major holidays both in Washington and Beijing, will require quick steps, analysts say.

 

China’s pledges to purchase what the White House calls “substantial” amounts of agricultural, energy, industrial and other products are relatively straightforward. What will be more difficult are the other items that Washington said the two agreed on.

 

Those include the pledge to immediately begin negotiations on structural changes such as forced technology transfers, intellectual property protection, non-tariff barriers, cyber theft, services and agriculture.

Raymond Yeung, a senior economist of Greater China at the Australia and New Zealand Banking Group said that despite the tariff truce, resolving the differences between the two countries and making progress would not be easy.

“Markets should not be too happy too early,” he said. “If you look at the White House statement there is still a lot of structural issues that the Chinese have to fulfill for the U.S. not to increase the tariffs.”

Even so, Asian stocks rallied on Monday on news that the U.S. President Donald Trump and Chinese President Xi Jinping had agreed to not impose any new tariffs for the time being. Soybeans climbed to their highest price a bushel in nearly six months.

Liao Qun, chief economist at China Citic Bank International said it was clear that both governments want to talk and work out their differences and that is a positive thing.

“But this is merely a cease-fire,” he said. “There’s still uncertainty that the trade war could be back on in three months.”

Both Yeung and Liao said the key lies in what Beijing may be able to do to turn around its Made in China 2025 Initiative. Both analysts do not believe that the industrial policy, which aims to close up huge gaps between the Chinese economy and advanced industrial nations and cut the country’s reliance on foreign technology, will be reversed.

But some tweaks are possible, Liao said.

“In principle, China won’t back down [on its Made in China 2025 plan]. But there is still room for negotiation on some aspects. Or maybe China can make concessions in other areas in exchange for keeping the plan intact,” Liao said.

Made in China 2025 is a 10-year campaign that Beijing has launched to help vault itself up the technology value chain. Many foreign countries and investors worry the plan will only exacerbate existing problems such as forced technology transfers in exchange for market access, alleged intellectual property theft and market protectionism.

The Made in China 2025 plan outlines 10 key sectors in which China seeks advances, including information technology; robotics; medicine and medical devices; and high-tech ships and ocean engineering equipment.

Clearly, the message that both countries were trying to convey in the wake of the meeting was different. To get a sense of those differences, one only needs to look at the statements made by both sides in the wake of the meetings

“Despite that both sides are claiming that it was a success if you look at the White House statement they don’t even put trade up as the first item,” Yeung said. China’s Xinhua news agency did not even mention the 90-day period. That tariffs on $200 billion in Chinese goods could still be raised from 10 percent to 25 percent in 90 days if the two fail to reach a deal.

Not only that, but Chinese state media has been largely silent about other details, such as those touching on Made in China 2025 or the specifics of the trade dispute outlined in the White House statement.

An opinion piece in the communist party-backed Global Times said the meeting had given both sides an opportunity to make concrete strides.

The article mentioned the agricultural products that China had agreed to purchase, citing the White House statement, but said little about the other agreements made.

Interestingly, the article did note that White House trade policy adviser Peter Navarro’s attendance at the meeting in Buenos Aries “was not necessarily a bad thing.”

The article suggested that Navarro’s attendance perhaps shows the deal had the support from what the article said was “trade hawks.” Navarro is seen as one of the more hardline members of President Trump’s team when it comes to economic issues with China.

An editorial in the China Daily, which has had very little detail on what the two presidents agreed on, said that while the “positive and constructive consensus” had helped to clear the air and create some breathing space for more “rational thinking,” “lasting improvement is still dependent on the sincerity of the U.S. to engage in equal-footed consultations with China.”

 

Asia Stocks Rally After US-China Truce on Tariffs

Asia stocks rallied Monday on the news that the United States and China, the world’s two largest economies, would not impose any new tariffs during a 90-day grace period, during which the two sides are to negotiate a detailed agreement.

In early trading Monday China’s main market index (the Shanghai Composite) jumped 2.7 percent and the Hang Seng in Hong Kong added 2.8 percent. 

Japan’s Nikkei 225 index climbed 1.4 percent. 

The U.S. pre market indexes – Dow and S&P futures contracts – were 1.9 percent and 1.8 percent higher respectively, indicating a strong start on Wall Street once the New York Stock Exchange opens at 9:30 a.m. Eastern Standard time.

The U.S. and China had agreed to a small truce in their escalating trade war after a meeting between presidents Donald Trump and Xi Jinping following the G-20 summit. 

Trump, speaking to reporters on Air Force One after the plane departed Argentina, said his agreement made over dinner with Xi, will go down “as one of the largest deals ever made. … And it’ll have an incredibly positive impact on farming, meaning agriculture, industrial products, computers — every type of product.”

“China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40 percent,” Trump said on Twitter late Sunday.

​Monday China’s ministry of foreign affairs said the Chinese and U.S. presidents had agreed to work towards removing all tariffs.

Trump agreed that he will leave the tariffs on $200 billion worth of Chinese products at the 10 percent rate, and not raise it to 25 percent, for now, as he has threatened to do come January 1, according to a White House statement. 

“China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial and other product from the United States to reduce the trade imbalance between our two countries,” said White House Press Secretary Sarah Sanders. “China has agreed to start purchasing agricultural product from our farmers immediately.”

Trump and Xi also “agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture,” according to the White House statement. “Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.”

WATCH: Steve Herman’s video report

​At the dinner, Xi also agreed to designate fentanyl as a controlled substance, meaning that people selling the powerful opioid to the United States will be subject to China’s maximum penalty under the law.

The White House is calling the Chinese president’s decision a “wonderful humanitarian gesture.”

Africa Urged to Use more Gas Reserves to Fuel Economic Development

Energy experts are urging Africa to use more of its gas reserves to fuel economic development. The group gathered in Washington to discuss the role of natural gas in helping to meet the continent’s electricity, health and environmental goals. The meeting coincides with the release of a report funded by Africa 50, which includes the Africa Development Bank, two African central Banks and 27 African countries. VOA Correspondent Mariama Diallo has more.

Argentina, China Sign Deals Strengthening Ties After G-20

China’s president on Sunday signed new trade deals with Argentina as the Asian giant expands its growing role in Latin American economies.

Presidents Mauricio Macri of Argentina and Xi Jinping of China announced the more than 30 agriculture and investment deals during a state visit following the Group of 20 summit of leaders in Buenos Aires. The deals include an agreement to export Argentine cherries to China and an expansion of a currency swap.

China is among Argentina’s top export markets, especially for agricultural commodities that are the engine of its economy. It is also one of Argentina’s biggest lenders, financing about $18.2 billion in infrastructure and other projects, according to the Inter-American Dialogue, a Washington-based think tank.

“China’s development benefits Argentina, our region and the world,” Macri said during a ceremony at the presidential residence in the outskirts of the Argentine capital.

“We have complementary countries. There are few countries in the world that can buy so many of the high-quality products that we’re capable of making,” Macri said.

The visit comes after U.S. officials said they had reached a 90-day truce in the trade dispute with China that has rattled financial markets and imperiled global economic growth. That announcement followed a Saturday dinner meeting between Xi and President Donald Trump.

Argentina also granted Xi the top honor awarded to foreign politicians, and the Argentine polo association gave the Chinese leader a polo horse. The South American country is home to the world’s top polo players, and Macri said that he wants the sport to make a comeback in China.

Photos released by Argentina’s presidency showed a smiling Xi petting the pony with one hand and holding the reins with the other.

Macri also put a red polo helmet emblazoned with China’s flag on Xi’s head.

Xi congratulated Macri on a successful summit and said that both nations believe that the G-20 spirit of solidarity must prevail in “the firm defense of multilateralism and free trade to build an open global economy and foment the world’s prosperity and stability.”

Xi will go on to visit Panama, which has been negotiating a free-trade deal with China after shifting its diplomatic recognition to Beijing from Taiwan last year, a move that led to complaints from U.S. officials.

 

Trump-Xi Dinner in Argentina Leads to Trade War Truce

U.S. President Donald Trump has returned home from the Group of 20 meeting of the world’s top economies. After the curtain came down on the summit, the spotlight lingered on the leaders of the two top economies. As VOA’s White House bureau chief Steve Herman reports from Buenos Aires, in the end a truce was achieved in the escalating battle of tariffs between the United States and China.

WHO: HIV Epidemic Spreads at Alarming Rate in Pakistan

Pakistan is registering approximately 20,000 new HIV infections annually, the highest rate of increase among all countries in the region, warns the World Health Organization (WHO).

The international body says mortality among Pakistanis living with the virus, which causes the deadly AIDS disease, is also rising, in spite of the availability of lifesaving antiretroviral therapy.

The latest government figures show that only 16 percent of the estimated 150,000 people living with HIV had been tested and only 9 percent have access to lifesaving treatment.

“The remaining 135,000 people are walking around in the communities as carriers of (HIV) infection who are ready to transmit infections to those who are not infected, even to their unborn babies,” Dr. Saima Paracha of the National AIDS Control Program, told VOA.

Officials say the HIV epidemic in Pakistan remains largely concentrated among the key populations, including people who inject drugs, the transgender community, sex workers and their clients and men who have sex with men.

“The drivers of infection are now the sexual networks and they are ready to spill the infection into the general public,” Dr. Paracha cautioned.

Paracha says the Pakistani government offers free HIV testing and treatment, but she notes the marginalized key populations continue face widespread stigma and discrimination in the society.

The fear of maltreatment, and punitive actions by law enforcers impacts the willingness of these populations to pursue testing, which remains a major challenge facing national efforts to treat and prevent the spread of HIV, she lamented.

Official estimates show that Pakistan has seen a 45 percent increase in new HIV infections since 2010.

“The number of new HIV infections will continue to increase dramatically if implementation rates of intervention remain at current levels,” said Dr. Nima Saeed Abid, country head of WHO.

An official statement issued in connection with World AIDS Day quoted him as saying that Pakistan has the lowest rate of all regional countries in diagnosing people who are infected and linking them to care and treatment.

Naila Bashir, who heads the HIV treatment center at Islamabad’s Pakistan Institute of Medical Sciences (PIMS), told VOA the facility receives up to 40 new HIV patients every month, underscoring the alarming increase in the number of infections.

The center was established in 2005 and the number of patients has since increased from 22 to more than 3,000, including men, women and children of all ages, said Dr. Bashir.

HIV has never been a priority program in the national health system and the recent abolition of the federal health ministry and the devolution of its functions to the provinces, which lacked preparedness and capacity, have led to the increase in infections, say WHO experts in the country. However, they acknowledge the new government of Prime Minister Imran Khan is giving priority to tackling health emergencies in Pakistan, including HIV.

Federal Minister for National Health Services Regulation and Coordination, Aamir Mehmood Kiyani, says the government is working on a strategy to remove barriers and challenges in protecting people from HIV infections.

Kiyani told a seminar in Islamabad that since taking office three months ago, the government has moved to established 12 new HIV treatment centers while overall 33 such facilities have been working throughout Pakistan.

U.N. officials say the Pakistan government urgently needs to redouble efforts to “de-stigmatize HIV testing, advocate for confidential, non-discriminatory, community based care models and raise awareness about disease transmission, prevention treatment” to achieve reductions in new infections in affected populations.

Climate Talks Kick off in Poland With boost from G-20 Summit

Negotiators from around the world began two weeks of talks on curbing climate change Sunday, three years after sealing a landmark deal in Paris that set a goal of keeping global warming well below 2 degrees Celsius (3.6 degrees Fahrenheit).

 

Envoys from almost 200 nations gathered in Poland’s southern city of Katowice, a day earlier than originally planned, for the U.N. meeting that’s scheduled to run until Dec. 14.

 

Ministers and some heads of government are joining in Monday, when host Poland will push for a joint declaration to ensure a “just transition” for fossil fuel industries like coal producers who are facing closures as part of efforts to reduce greenhouse gas emissions.

 

The meeting received a boost over the weekend, after 19 major economies at the G-20 summit affirmed their commitment to the 2015 Paris climate accord. The only holdout was the United States, which announced under President Donald Trump that it is withdrawing from the climate pact.

 

“Despite geopolitical instability, the climate consensus is proving highly resilient,” said Christiana Figueres, a former head of the U.N. climate office.

 

“It is sad that the federal administration of the United States, a country that is increasingly feeling the full force of climate impacts, continues to refuse to listen to the objective voice of science when it comes to climate change,” Figures said.

 

She cited a recent expert report warning of the consequences of letting average global temperatures rise beyond 1.5 degrees C (2.7 degrees F).

 

“The rest of the G-20 have not only understood the science, they are taking actions to both prevent the major impacts and strengthen their economies,” said Figueres, who now works with Mission 2020, a group that campaigns to reduce greenhouse gas emissions.

 

The meeting in Katowice is regarded as a key test of countries’ willingness to back their lofty but distant goals with concrete measures, some of which are already drawing fierce protests . At the top of the agenda is the so-called Paris rulebook , which will determine how governments record and report their greenhouse emissions and efforts to cut them.

 

Separately, negotiators will discuss ramping up countries’ national emissions targets after 2020, and financial support for poor nations that are struggling to adapt to climate change.

 

The shift away from fossil fuels, which scientists say has to happen by 2050, is expected to require a major overhaul of world economies.

 

“The good news is that we do know a lot of what we need to be able to do to get there,” said David Waskow of the World Resources Institute.

 

Waskow, who has followed climate talks for years, said despite the Trump administration’s refusal to back this global effort the momentum is going in the right direction.

 

“It’s not one or two players anymore in the international arena,” he said. “It’s what I think you could call a distributed leadership, where you have a number of countries — some of them small or medium-sized — really making headway and doing it in tandem with cities and states and businesses.”

 

Later Sunday, protests were planned by environmental activists calling for an end to coal mining in Poland, which gets some 80 percent of its energy from coal. Katowice is at the heart of Poland’s coal mining region of Silesia and there are still several active mines in and around the city.

 

On Saturday, thousands of people marched in Berlin and Cologne to demand that Germany speed up its exit from coal-fired power plants.

World Bank Doubling Aid to Poor Countries Adapting to Climate Change

The World Bank has announced it is doubling its funding to help poor nations adjust to global warming to $200 billion over five years.

“If we don’t reduce emissions and build adaption now, we’ll have 100 million more people living in poverty by 2030,” the bank’s climate change chief John Roome told the French News Agency.

“And we also know that the less we address this issue proactively in just three regions – Africa, South Asia, and Latin America – we’ll have 133 million climate migrants, Roone cautioned.”

Helping poorer nations adapt to a warmer environment and the weather extremes that come with it include building sturdier homes, finding new sources of fresh water, and what the bank calls “climate smart agriculture.”

The bank’s announcement comes as delegates from 200 countries started a two week-long climate change conference in Katowice, Poland.

The threat posed by global warming “has never been worse,” U.N. climate chief Patricia Espinosa said Sunday.

The threat posed by global warming “has never been worse,” U.N. climate chief Patricia Espinosa said at the start of climate talks in Poland.

“This year is likely to be one of the four hottest years on record. Climate change impacts have never been worse. This reality is telling us that we need to much more,” she said Sunday.

Negotiators from nearly 200 nations are in the southern Polish city of Katowice for two weeks of talks on implementing the landmark 2015 Paris Accord. Signatories to that agreement pledged to cut greenhouse gas emissions and limit the rise in global temperatures to less than two degrees Celsius by 2030.

“Looking from the outside perspective, it’s an impossible task,” Poland’s Deputy Environment Minister Michal Kurtyka told the Associated Press last week.

“The United Nations secretary-general is counting on all of us to deliver. There is no ‘Plan B'”

The climate change talks got a boost when 19 of 20 G-20 nations meeting in Buenos Aires reaffirmed their commitment to fighting climate change.

The United States was the only holdout. President Donald Trump has threatened to pull the U.S. out of the Paris agreement because of what he says is the economic damage the treaty’s provisions would cause.

Trump is a promoter of fossil fuels and nuclear power and has proposed renegotiating the Paris Accord – an idea many dismiss as impractical.

Host country Poland is expected to propose what it calls a “just transition” for the oil, gas, and coal industries to ease the financial blow from the move away from such polluting sources of energy.

Negotiators are also expected to put forth plans to help developing nations adapt to a warming climate.

 

Can Artificial Intelligence Make Doctors Better?

Teacher Rishi Rawat has one student who is not human, but a machine.

Lessons take place at a lab inside the University of Southern California’s (USC) Clinical Science Center in Los Angeles, where Rawat teaches artificial intelligence, or AI.

To help the machine learn, Rawat feeds the computer samples of cancer cells.

“They’re like a computer brain, and you can put the data into them and they will learn the patterns and the pattern recognition that’s important to making decisions,” he explained.

AI may soon be a useful tool in health care and allow doctors to understand biology and diagnose disease in ways that were never humanly possible.

​Doctors not going away

“Machines are not going to take the place of doctors. Computers will not treat patients, but they will help make certain decisions and look for things that the human brain can’t recognize these patterns by itself,” said David Agus, USC’s professor of medicine and biomedical engineering, director at the Lawrence J. Ellison Institute for Transformative Medicine, and director at the university’s Center for Applied Molecular Medicine.

Rawat is part of a team of interdisciplinary scientists at USC who are researching how AI and machine learning can identify complex patterns in cells and more accurately identify specific types of breast cancer tumors.

Once a confirmed cancerous tumor is removed, doctors still have to treat the patient to reduce the risk of recurrence. The type of treatment depends on the type of cancer and whether the tumor is driven by estrogen. Currently, pathologists would take a thin piece of tissue, put it on a slide, and stain with color to better see the cells.

“What the pathologist has to do is to count what percentage of the cells are brown and what percentage are not,” said Dan Ruderman, a physicist who is also assistant professor of research medicine at USC.

The process could take days or even longer. Scientists say artificial intelligence can do something better than just count cells. Through machine learning, it can recognize complicated patterns on how the cells are arranged, with the hope, in the near future of making a quick and more reliable diagnosis that is free of human error.

“Are they disordered? Are they in a regular spacing? What’s going on exactly with the arrangement of the cells in the tissue,” described Ruderman of the types of patterns a machine can detect.

“We could do this instantaneously for almost no cost in the developing world,” Agus said.

​Computing power improves

Scientists say the time is ripe for the marriage between computer science and cancer research.

“All of a sudden, we have the computing power to really do it in real time. We have the ability of scanning a slide to high enough resolution so that the computer can see every little feature of the cancer. So it’s a convergence of technology. We couldn’t have done this, we didn’t have the computing power to do this several years ago,” Agus said.

Data is key to having a machine effectively do its job in medicine.

“Once you start to pool together tens and hundreds of thousands of patients and that data, you can actually [have] remarkable new insight, and so AI and machine learning is allowing that. It’s enabling us to go to the next level in medicine and really take that art to new heights,” Agus said.

Back at the lab, Rawat is not only feeding the computer more cell samples, he also designs and writes code to ensure that the algorithm has the ability to learn features unique to cancer cells.

The research now is on breast cancer, but doctors predict artificial intelligence will eventually make a difference in all forms of cancer and beyond.

Can Artificial Intelligence Help Doctors Make Better Decisions?

With the help of artificial intelligence and machine learning, doctors may soon have new ways of diagnosing and treating patients in ways that were never humanly possible. Scientists at the University of Southern California in Los Angeles are developing a way of using machine learning to identify specific types of breast cancer tumors, and they say it’s just the beginning of what the computer can do. VOA’s Elizabeth Lee has the details from Los Angeles.

Espionage, ID theft? Risks From Stolen Marriott Data Myriad

The data stolen from the Marriott hotel empire in a massive breach is so rich and specific it could be used for espionage, identity theft, reputation attacks and even home burglaries, security experts say.

Hackers stole data on as many as 500 million guests of former Starwood chain properties over four years including credit card and passport numbers, birthdates, phone numbers and hotel arrival and departure dates.

It is one of the biggest data breaches on record. By comparison, last year’s Equifax hack affected more than 145 million people. A Target breach in 2013 affected more than 41 million payment card accounts and exposed contact information for more than 60 million customers.

Especially sensitive data

But the target here — hotels where high-stakes business deals, romantic trysts and espionage are daily currency — makes the data gathered especially sensitive.

Jesse Varsalone, a University of Maryland cybersecurity expert, said the affected reservation system could be extremely enticing to nation-state spies interested in the travels of military and senior government officials.

“There are just so many things you can extrapolate from people staying at hotels,” Varsalone said.

And because the data included reservations for future stays, along with home addresses, burglars could learn when someone wouldn’t be home, said Scott Grissom of LegalShield, a provider of legal services.

Starwood brand hotels

The affected hotel brands were operated by Starwood before it was acquired by Marriott in 2016. They include W Hotels, St. Regis, Sheraton, Westin, Element, Aloft, The Luxury Collection, Le Meridien and Four Points. Starwood-branded timeshare properties were also affected. None of the Marriott-branded chains were threatened.

Email notifications for those who may have been affected begin rolling out Friday and the full scope of the breach was not immediately clear.

Marriott was trying to determine if the purloined records included duplicates, such as a single person staying multiple times.

Breach undetected for a while

Security analysts were especially alarmed to learn of the breach’s undetected longevity. Marriott said it first detected it Sept. 8 but was unable to determine until last week what data had possibly been exposed because the thieves used encryption to remove it in order to avoid detection.

Marriott said it did not yet know how many credit card numbers might have been stolen. A spokeswoman said Saturday that it was not yet able to respond to questions such as whether the intrusion and data theft was committed by a single or multiple groups.

Cybersecurity expert Andrei Barysevich of Recorded Future said Saturday he believed the breach was financially motivated.

The cybercrime gang expert in credit card theft such as the eastern European group known as Fin7 could be a suspect, he said, noting that a dark web credit card vendor recently announced that 2.6 million cards stolen from an unnamed hotel chain would soon be available to the online criminal underworld.

“We will have to wait until an official forensic report, although, Marriott may never share their findings openly,” he said.

Marriott said the stolen credit card information was encrypted but the hackers may have obtained the “two components needed to decrypt the payment card numbers.” It said it cannot “rule out the possibility that both were taken.”

Privacy laws

For as many as two-thirds of those affected, the exposed data could include mailing addresses, phone numbers, email addresses and passport numbers. Also dates of birth, gender, reservation dates, arrival and departure times and Starwood Preferred Guest account information.

The breach of personal information could put Marriott in violation of new European privacy laws, as guests included European travelers.

Marriott set up a website and call center for customers who believe they are at risk.

The FBI said anyone contacted by Marriott should “take steps to monitor and safeguard their personally identifiable information and report any suspected instances of identity theft to the FBI’s Internet Crime Complaint Center at www.ic3.gov.”

Passport numbers have previously been part of a hack, though it’s not common. They were among records on 9.4 million passengers of Hong Kong-based airline Cathay Pacific obtained in a breach announced in October.

Combined with names, addresses and other personal information, passport numbers are a greater concern than stolen credit card numbers because thieves could use them to open fraudulent accounts, said analyst Ted Rossman of CreditCards.com.

Hotels long a source of information

The data purloining highlights just how dangerous hotels can be for people worried about their privacy.

“Hotels have long been important government sources of local information for tracking foreigners: reservation systems and loyalty programs took the surveillance global and made it easier for us to give up our privacy,” said Colin Bastable, CEO of Lucy Security.

Intelligence agencies including the U.S. National Security are well plugged into the global travel industry “by fair means or foul,” he said, nongovernment cybercriminals now have the same hacking tools.

“Consumers have become collateral damage,” he said. “And we are all consumers.” He advises providing hotels with as little information as possible when making reservations and checking in.

Last year, the cybersecurity firm FireEye highlighted an effort in which Russian state agents allegedly tried to infiltrate the reservation systems of hotels in Europe and the Middle East.

21 million Starwood program members

When its acquisition by Marriott was first announced in 2015, Starwood had 21 million people in its loyalty program. The company manages more than 6,700 properties across the globe, most in North America.

Marriott, based in Bethesda, Maryland, said in a regulatory filing that it was too early to say what financial impact the breach might have on the company. It said it has cyber insurance and is working with its carriers to assess coverage.

Elected officials were quick to call for action.

The New York attorney general opened an investigation.

Virginia Sen. Mark Warner said the U.S. needs laws that limit the data companies can collect on customers and ensure that companies account for security costs rather than making consumers “shoulder the burden and harms resulting from these lapses.”

US Judge Gives Preliminary OK to $48M VW Investor Settlement 

A U.S. judge in California has granted preliminary approval of a $48 million settlement for investors who said Volkswagen AG made false and misleading statements about its excess diesel emissions. 

Lawyers for the investors, who include police and other municipal pension funds, had estimated that the maximum they could have recovered was $147 million. But Judge Charles Breyer said the settlement agreed to in August appeared “fair, adequate and reasonable.” 

VW, in a statement, said Friday that the “proposed settlement agreement eliminates the uncertainty and considerable costs of protracted litigation in the United States and is in the best interests of the company.” The ruling was issued late Wednesday. 

Buybacks

In total, Volkswagen has agreed to pay more than $25 billion in the United States for claims from owners, environmental regulators, states and dealers, and has offered to buy back about 500,000 polluting U.S. vehicles. The buybacks will continue through 2019. 

The German automaker admitted in September 2015 to secretly installing software in nearly 500,000 U.S. cars to cheat government exhaust emissions tests. The vehicles had emitted up to 40 times the legally allowable pollutants. 

In 2017, VW also pleaded guilty of fraud, obstruction of justice and falsifying statements in a U.S. court. Under the plea deal, the automaker agreed to sweeping reforms, new audits and oversight by an independent monitor for three years. 

Federal prosecutors in Detroit unsealed criminal charges in May against former VW Chief Executive Officer Martin Winterkorn, who remains in Germany. Two other former VW executives have pleaded guilty in the investigation and are in prison. 

In total, nine people have been charged in the United States. 

Breyer set a date for a fairness hearing to allow further comment on the August settlement for May 10, after which a final ruling will be issued. 

Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft’s big bet on cloud computing is paying off as the company has surpassed Apple as the world’s most valuable publicly traded company. 

 

The software maker’s prospects looked bleak just a few years ago, as licenses for the company’s Windows system fell with a sharp drop in sales of personal computers. 

 

But under CEO Satya Nadella, Microsoft has found stability by focusing on software and services over the internet, or the cloud, with long-term business contracts.  

  

That 1990s personal-computing powerhouse is now having a renaissance moment, as it eclipses Facebook, Google, Amazon and the other tech darlings of the late decade. 

 

Apple had been the world’s most prosperous firm since claiming the top spot from Exxon Mobil earlier this decade. Microsoft surpassed Apple briefly a few times this week, but didn’t close on top until Friday, with a market value of $851 billion to Apple’s $847 billion. Microsoft hadn’t been at the top since the height of the dot-com boom in 2000.  

Apple’s plunge

  

Microsoft became a contender again in large part because Apple’s stock fell nearly 20 percent in November, while Microsoft hasn’t done any worse than the rest of the stock market. But the fact that it hasn’t done poorly reflects its steady focus on business customers in recent years. 

 

Microsoft lost its luster as people were shunning PCs in favor of smartphones. In 2013, PC sales plunged 10 percent to about 315 million, the worst year-to-year drop ever, according to research firms Gartner and IDC. It didn’t help that Microsoft’s effort to make PCs more like phones, Windows 8, was widely panned.  

  

But a turnaround began when the Redmond, Wash., company promoted Nadella as CEO in 2014. He succeeded Microsoft’s longtime CEO, Steve Ballmer, who initially scoffed at the notion that people would be willing to pay $500 or more for Apple’s iPhones.  

That bet paid off. Windows is now a dwindling fraction of Microsoft’s business. While the company still runs consumer-focused businesses such as Bing search and Xbox gaming, it has prioritized business-oriented services such as its Office line of email and other workplace software, as well as newer additions such as LinkedIn and Skype. But its biggest growth has happened in the cloud, particularly the cloud platform it calls Azure. Cloud computing now accounts for more than a quarter of Microsoft’s revenue, and Microsoft rivals Amazon as a leading provider of such services. 

 

Wedbush analyst Dan Ives said Azure is still in its early days, meaning there’s plenty of room for growth, especially considering the company’s large customer base for Office and other products. 

 

“While the tech carnage seen over the last month has been brutal, shares of [Microsoft] continue to hold up like the Rock of Gibraltar,” he said. 

 

Being less reliant on consumer demand helped shield Microsoft from holiday season turbulence and U.S.-China trade war jitters affecting Apple and other tech companies. 

 

President Donald Trump amplified those tariff concerns when he told The Wall Street Journal in a story published late Monday that new tariffs could affect iPhones and laptops imported from China. 

 

The iPhone maker had already seen its stock fall after reporting a mixed bag of quarterly results in early November amid fears about how the technology industry will fare in the face of such threats as rising interest rates, increased government regulation and Trump’s escalating trade war with China. 

Reporting change

 

Apple also spooked investors with an unexpected decision to stop disclosing how many iPhones it sells each quarter. That move has been widely interpreted as a sign that Apple foresees further declines in iPhone sales and is trying to mask that.  

  

While smartphones caused the downturn in personal computers years ago, sales of smartphones themselves have now stalled. That’s partly because with fewer innovations from previous models, more people choose to hold on to the devices for longer periods before upgrading. 

 

Daniel Morgan, senior portfolio manager for Synovus Trust, said Microsoft is outperforming its tech rivals in part because of what it’s not. It doesn’t face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices. Unlike Netflix, it’s not on a hunt for a diminishing number of international subscribers. And while Amazon also has a strong cloud business, it’s still more dependent on online retail.  

Fear, Stigma, Ignorance Keep AIDS Epidemic Going

There’s been a lot of progress in the fight against AIDS over the past 30 years, but as the 30th World AIDS Day is observed on Dec. 1 — people still die from the disease. And others are newly infected every day even though the tools are available to end the epidemic.

Fear, stigma and ignorance. The World Health Organization says these are the reasons the AIDS epidemic is not over because doctors can treat HIV, the virus that causes AIDS. 

With treatment, no one needs to die from AIDS, and those with the virus can’t give it to someone else. In addition, with prevention therapy, no one needs to get infected.  

Dr. Jared Baeten, an HIV specialist at the University of Washington, spoke to us via Skype and says even with these tools we’re not there yet.

“… because the ability to deliver those at the scale and with the coverage needed to be able to get HIV to go away is not nearly where it should be,” said Baeten. 

Nearly a million people still die every year from AIDS. Professor Steffani Strathdee at the University of California San Diego says one of the biggest challenges is that HIV often affects people on the fringes of some societies around the world.  

“There are populations all over the world that are underserved and these include injection drug users and sex workers, in particular,” Strathdee said.

It also includes men who have sex with men, transgender people, prisoners and the sexual partners of these people. Professor Strathdee says people who are hungry or need shelter are more concerned about their immediate needs than they are about HIV.

“My research and research in this field really shows you have to address the whole person and their needs in order to address HIV as one of their health concerns,” Strathdee said.

Strathdee says unless this happens, countries will have to bear the heavy social and economic costs of AIDS.

In addition, Baeten says testing and treatment have to be available to everyone.    

“The biggest thing that we’ve learned for preventing HIV in the last decades is that there is no magic bullet, but when you put a whole bunch of really good things together and it has exactly the kind of impact that a magic bullet can give you,” Beaten said 

Scientists say using these tools, educating people and getting more people into treatment will reduce stigma, and then, when a vaccine comes along, we can finally put an end to AIDS.

UN Official: Polio Remains Global Threat

Tremendous progress has been made in efforts to wipe out polio around the world. Before a global eradication program began 30 years ago, about 350,000 children became paralyzed from polio each year. The figure dropped to 28 in 2018. 

Nevertheless, Helen Rees, chair of the World Health Organization’s emergency committee, said Friday that polio remained an international threat. She said every available health strategy must be used to prevent the wild polio virus from spreading across borders. 

“The fear is that we might well see a resurgence, that we could see exportation again and a reversal of all of the work and all of the country global efforts that have gone into trying to eradicate polio,” Rees said. “And we certainly cannot allow that to happen.” 

Polio remains endemic in Afghanistan, Pakistan and Nigeria. Rees said that over the last few months, there has been a worrying exportation of the wild polio virus to and from Pakistan and Afghanistan. 

“We have got widespread, positive environmental sampling in Pakistan,” she said. “And in Afghanistan, because of the more difficult situation there in terms of security, we are unable to access probably as many as a million children for vaccination.”  

Separately, there is good news from the African region. The director of WHO’s polio eradication program, Michel Zaffran, noted that the wild polio virus has not been seen in Nigeria since it was last detected more than two years ago. 

If this keeps up, he said, the regional certification commission could be able to declare the wild polio virus eradicated from the African region at the end of 2019 or early 2020. He said $4.2 billion would be needed over the next five years to see the last of this disease. 

Polio, which has no cure, invades the nervous system and can cause irreversible paralysis within hours. The WHO says polio is transmitted from one person to another through the fecal-oral route, or less frequently by a common vehicle like contaminated food and water. Fever, fatigue, headache, vomiting, stiffness in the neck and limb pain are among polio’s symptoms. 

Bloomberg Announces $50 Million Donation to Fight Opioid Epidemic

Former New York Mayor Michael Bloomberg’s charity has announced a $50 million donation to help fight the nation’s opioid epidemic.

Bloomberg Philanthropies said over the next three years it will help up to 10 states address the causes of opioid addiction and strengthen prevention and treatment programs. Its initiative involves a partnership with the Centers for Disease Control and Prevention, The Pew Charitable Trusts, Johns Hopkins University and Vital Strategies.

Bloomberg, who has been considering a 2020 Democratic presidential bid, was expected to discuss the funding Friday during his keynote address at The Bloomberg American Health Summit in Washington. A spokeswoman said there was “no stated link” between his political aspirations and the $50 million investment to fight opioids.

Bloomberg’s charity said CDC data shows there were more than 70,000 U.S. drug overdose deaths last year, including more than 47,000 from opioids, the highest numbers on record. It said those numbers are a leading factor in the decline of U.S. life expectancy over the past three years.

Bloomberg called the sobering numbers part of “a national crisis.”

“For the first time since World War I, life expectancy in the U.S. has declined over the past three years — and opioids are a big reason why,” he said. “We cannot sit by and allow this alarming trend to continue — not when so many Americans are being killed in what should be the prime of their lives.”

He said in a statement he hoped his charity’s work in Pennsylvania, one of the states hardest hit by the opioids crisis, would lay the groundwork “for more effective action across the country.”

The partnership focuses on identifying new approaches to tackle opioids and plugging gaps in current treatment and prevention programs. Staff members from partner organizations will support state and local programs to reduce opioid-related deaths, and successful initiatives and guidelines will be replicated elsewhere, with the goal of creating a model for the rest of the nation.

Pennsylvania Governor Tom Wolf said he was “deeply grateful” for the financial and technical resources his state will receive through the partnership with Bloomberg Philanthropies.

“From our first responders and health care professionals to teachers and social service providers, heroes across our commonwealth are saving lives and protecting residents in our communities every day from this awful scourge,” Wolf, a Democrat, said in a statement issued by the Bloomberg charity. “We are doing everything we can to help them, and I am confident that this partnership will mark a turning point in our efforts.”

The Drug Enforcement Administration said this month in its National Drug Threat Assessment that heroin, fentanyl and other opioids continue to be the highest drug threat in the nation.

Bloomberg, who has been an independent, a Republican and a Democrat, declared lifetime allegiance to the Democratic Party and outlined an aggressive timeline for deciding whether to run for president in an interview with The Associated Press this month. He has regularly criticized President Donald Trump and spent a fortune to help elect Democrats in the midterm elections.

Canada, Mexico, US Sign Trade Deal

The leaders of Canada, Mexico and the United States signed a new North American trade deal Friday. Justin Trudeau, Enrique Pena Nieto and Donald Trump inked the deal in Argentina, ahead of the opening of the G-20 summit.

It will, however, take a while for the agreement to take effect as lawmakers from all three countries have to approve the scheme, officially known as the US-Mexico-Canada Agreement, or USMCA.

The pact underpins $1.2 billion in annual trade among the three countries.

It replaces NAFTA, a pact that Trump had roundly criticized in his 2016 presidential campaign, terming it the worst trade deal in history and blaming NAFTA for the loss of American manufacturing jobs since it went into effect in 1994. 

Trump called the deal a “model agreement that changes the trade landscape forever” at a news conference with his North American counterparts in Buenos Aires, Argentina, ahead of the G-20 conference.

When the three countries agreed on the USMCA deal earlier this year, the U.S. leader said, “This landmark agreement will send cash and jobs pouring into the United States and into North America.” 

Joshua Meltzer, a senior Fellow at the Brookings Institution, told VOA at that time that the deal was not that much different from NAFTA.

“I wouldn’t say it’s a vastly different deal at all.” Meltzer said. “It’s an agreement that’s over 20 years old and so it clearly needed to be updated.I think certainly it reduces a level of anxiety about how the administration was going to square its rhetoric on trade with an actual trade deal. We certainly see some increased protectionism in some areas, particularly in the auto sector.But overall it’s an update of a trade agreement, it’s comprehensive, and it’s largely good for improving integration between the three economies.” 

Market Shifts Leave US Manufacturing Behind

U.S. President Donald Trump has challenged car giant GM’s decision to close five plants across the United States and Canada just weeks before the holidays. GM says changing car habits are to blame for the closings, which impact thousands of workers across North America. VOA’s Katherine Gypson reports from the GM plant in Ohio, where workers say they feel left behind by the global marketplace.

Space Force: To Stand Alone or Not to Stand Alone

Top administration officials are debating whether to create a stand-alone Space Force to handle space defense or a Space Force that falls within the Air Force, officials tell VOA.

Either option requires congressional approval, which could prove difficult with a Democratic-led House and a Republican-led Senate.

An Oct. 26 memo obtained by VOA directs that the Department of Defense create the “optimal organizational construct to meet (the president’s) intent.” 

The memo, signed by Executive Secretary of the National Space Council Scott Pace and National Security Council official Earl Matthews, instructs the Pentagon to focus on whether the Space Force is most efficient as a new independent department or as “a separate service within the Department of the Air Force, along the lines of the U.S. Marine Corps within the Department of the Navy or the U.S. Coast Guard within the Department of Homeland Security.”

Support in the House

This latter organizational structure has bipartisan support in the House, but the former has often been seen by Democrats as an expensive solution. 

Vice President Mike Pence and Deputy Secretary of Defense Patrick Shanahan met Thursday to discuss how to build the first new military branch since 1947, as President Donald Trump has directed. 

A National Space Council official told VOA Thursday the October memo does not represent a shift in White House guidance. 

“The direction to create the U.S. Space Force remains exactly the same, and the Space Council is continuing to work with the departments and agencies responsible for implementing the president’s direction to develop the sixth branch of the Armed Forces,” the official said.

Space Command next?

Officials say the president also intends to establish a U.S. Space Command, a move already directed by Congress.

The U.S. military is organized into 10 combatant commands based on either geography, such as Indo-Pacific Command and European Command, or unified functions, such a Transportation Command and Cyber Command.

This new, 11th combatant command would oversee space defense much like U.S. Cyber Command oversees cyber defense. Space Command is expected to start in mid-2019 with initial operation capability.

Officials familiar with Space Force deliberations have raised concerns to VOA that a new military branch could duplicate the work of the new combatant command. They say a separate military service may not be needed once the combatant command is fully operational. 

“You don’t see a Cyber Force in addition to Cyber Command,” one official said on condition of anonymity.

Cost estimates for the Space Command have been modeled after the creation of U.S. Strategic Command, which was set up in the early 1990s. The biggest expense will be the creation of a new headquarters for the combatant command in order to make room for providing new capabilities, according to one official.

Soviet-Era Moon Rocks Sell for $855,000 in New York

Three tiny rocks brought back from the moon in 1970 by the unmanned Soviet Luna-16 mission sold for $855,000 on Thursday at a New York auction. 

They’re the only documented lunar rocks in private hands, Sotheby’s auction house said. The U.S. collector who bought the rocks was not named. 

The sellers, also from the U.S., bought the rocks for $442,500 at a Sotheby’s Russian space history sale in 1993. That was the first time that a piece of a celestial body had been offered for sale to the public.

The rocks originally had been given to the widow of Sergei Pavlovich Korolev, the former director of the Soviet Union’s space program, by the Soviet government in recognition of her husband’s work.

It is extremely rare for authentic lunar samples to come on the market. All samples collected by American astronauts are deemed the property of the U.S. government — except one.

Last year, a bag used by Apollo 11 astronaut Neil Armstrong to collect moon dust was sold by Sotheby’s for $1.8 million, netting a hefty profit for its owner. 

 

A Chicago-area woman, Nancy Carlson, bought the bag, which had been misidentified, at an online government auction for $995. After she sent it to NASA for identification, the space agency confirmed that it had been used by Armstrong and still contained moon dust. 

NASA fought to keep the bag but lost a court fight in 2016. 

Rosenstein Calls for Tech Firms to Work With Law Enforcement

U.S. Deputy Attorney General Rod Rosenstein called on social media companies and technology firms Thursday to work with law enforcement to protect the public from cybercriminals.  

 

Speaking at a symposium on online crime, Rosenstein said that “social media platforms provide unprecedented opportunities for the free exchange of ideas. But many users do not understand that the platforms allow malicious actors, including foreign government agents, to deceive them by launching vast influence operations.” 

 

He said it was up to the companies to “place security on the same footing as novelty and convenience, and design technology accordingly.”  

 

He warned that if the technology sector failed to do so, government would have to step in.  

 

“I think the companies now do understand if they do not take it upon themselves to self-regulate — which is essentially the theme of my talk today — they will face the potential of government regulation,” he said. 

Extortion scheme

 

Rosenstein’s remarks came a day after the Justice Department charged two Iranian hackers in connection with a multimillion-dollar cybercrime and extortion scheme that targeted government agencies, cities and businesses. 

 

Rosenstein said many tech companies are willing to work with law enforcement and to prevent the use of their platforms to spread disinformation. 

 

But he said that “some technology experts castigate colleagues who engage with law enforcement to address encryption and similar challenges. Just because people are quick to criticize you does not mean that you are doing the wrong thing.” 

 

U.S. law enforcement officials have long been pushing tech companies to make it easier for them to access information on private devices such as cellphones and social media accounts. But most firms have resisted, citing privacy of the users.  

 

Rosenstein said data encryption practices were a “significant detriment to public safety.”  

 

“Improvements in the ability to investigate crime and hold perpetrators accountable must match the pace at which technology is making crimes easier to commit and more destructive,” Rosenstein said.