WTO Member Group Vows to Reform Rules on Subsidies, Dispute Settlement

Top trade officials from 12 countries and the European Union on Thursday vowed to reform World Trade Organization rules in the face of U.S. actions that threaten to paralyze the body and address some of Washington’s complaints about Chinese subsidies.

The officials, meeting in the Canadian capital Ottawa, said they shared a “common resolve for rapid and concerted action” to address challenges to the WTO.

“The current situation at the WTO is no longer sustainable. Our resolve for change must be matched with action,” the officials said in a communique issued after their daylong meeting ended.

The United States and China, which are locked in an escalating tariff war that is threatening the WTO’s foundations, were not invited to the meeting to discuss reform ideas, but Canadian Trade Minister Jim Carr said he would report outcomes to them and try to persuade them to join the reform effort.

Carr acknowledged that no WTO reforms could proceed without a buy-in from the world’s two largest economies.

“They should listen because we’re making good arguments,” Carr told a news conference after the meeting, adding that the group’s proposals would ultimately serve U.S. and Chinese interests.

The officials from Canada, the European Union, Japan, Brazil, Mexico, Australia and seven other countries agreed to meet again in January 2019 to review progress from their discussions.

They were short on specifics of their proposals, but called for urgent action to unblock the appointment of new judges to the Appellate Body of the WTO’s dispute settlement system, which they said puts the functioning of the entire body at risk, causing rules enforcement to grind to a halt by the spring of 2019.

The statement did not refer directly to U.S. actions to block such appointments over longstanding complaints that many past appellate rulings have exceeded the judges’ authority, unfairly favoring China and some other members.

“Our number one priority is getting dispute settlement back on track. What good is there to have rules if they cannot be enforced?” said one participating minister who spoke on condition of anonymity.

U.S. President Donald Trump has repeatedly threatened to pull out of the 23-year-old trade body, with roots that date back to the end of World War II, if it does not “shape up” and treat the United States more fairly.

At the Ottawa meetings, Carr said “there was no blaming, there was no shaming” of the United States and the group agreed to consider “alternative” ways to settle disputes, including mediation.

The trade officials also said they recognize “the need to address market distortions caused by subsidies and other instruments,” a reference to complaints by the United States and some other Western economies that current WTO anti-subsidy rules fail to capture all the ways China’s government supports its industries and state enterprises.

The statement said the officials were concerned with WTO members’ track record in complying with subsidy notification requirements and called for stronger monitoring and transparency of countries’ trade policies.

The member group also vowed to “reinvigorate” the WTO’s long-stalled negotiating function, calling for talks to curb fisheries subsidies to be completed in 2019.

Mexico’s Deputy Economy Minister Juan Carlos Baker said world leaders would have a chance to press the United States, China and other nations twice next month — at an Asia-Pacific summit and a meeting of leaders of the G-20 group of nations.

“We are going to waste no opportunity whatsoever in terms of political events. … I am sure that we will use these occasions to speak about what we’re doing,” he said in an interview.

Water Out of Thin Air: California Couple’s Device Wins $1.5M

It started out modestly enough: David Hertz, having learned that under the right conditions you really can make your own water out of thin air, put a little contraption on the roof of his California office and began cranking out free bottles of H2O for anyone who wanted one.

Soon he and his wife, Laura Doss-Hertz, were thinking bigger — so much so that this week the couple won the $1.5 million XPrize For Water Abundance. They prevailed by developing a system that uses shipping containers, wood chips and other detritus to produce as much as 528 gallons (2,000 liters) of water a day at a cost of no more than 2 cents a quart (1 liter).

The XPrize competition, created by a group of philanthropists, entrepreneurs and others, has awarded more than $140 million over the years for what it calls audacious, futuristic ideas aimed at protecting and improving the planet. The first XPrize, for $10 million, went to Microsoft co-founder Paul Allen and aviation pioneer Burt Rutan in 2004 for SpaceShipOne, the first privately financed manned space flight.

When Hertz learned a couple of years ago that a prize was about to be offered to whoever could come up with a cheap, innovative way to produce clean freshwater for a world that doesn’t have enough of it, he decided to go all in.

At the time, his little water-making machine was cranking out 150 gallons a day, much of which was being given to homeless people living in and around the alley behind the Studio of Environmental Architecture, Hertz’s Venice Beach-area firm that specializes in creating green buildings.

He and his wife, a commercial photographer, and their partner Richard Groden, who created the smaller machine, assembled The Skysource/Skywater Alliance and went to work. They settled on creating little rainstorms inside shipping containers by heating up wood chips to produce the temperature and humidity needed to draw water from the air and the wood itself.

“One of the fascinating things about shipping containers is that more are imported than exported, so there’s generally a surplus,” said Hertz, adding they’re cheap and easy to move around.

And if there’s no wood chips around for heat, coconut husks, rice, walnut shells, grass clippings or just about any other such waste product will do just fine.

“Certainly in regions where you have a lot of biomass, this is going to be a very simple technology to deploy,” said Matthew Stuber, a professor of chemical and biomolecular engineering at the University of Connecticut and expert on water systems who was one of the panel’s judges.

He called their water-making machine a “really cool” merging of rather simple technologies that can be used to quickly deliver water to regions hit by natural disasters or stricken by drought, or even rural areas with a shortage of clean water.

Hertz and Doss-Hertz are just starting to contemplate how to accomplish that.

Theirs was among 98 teams from 27 countries who entered the competition. Many teams were bigger and better funded, while the couple mortgaged their Malibu home to stay in the game. At one point, they were told they hadn’t made the final round of five, but one team dropped out and they were back in.

“If you say we were the dark horse in the race, we weren’t even in the race,” Hertz recalled, smiling.

He stood near a giant copy of the check in his office while Doss-Hertz prepared to leave for a photo shoot and a visitor sampled a glass of their freshly made water.

Now, though, they are in for the long, wet haul.

“There’s no restrictions whatsoever on how it’s used,” Hertz said of the prize money. “But Laura and I have committed to using it all for the development and deployment of these machines, to get them to people who need the water most.

US Stocks Rebound Strongly

Major U.S. stock indexes made strong gains in Thursday’s trading after some upbeat profit reports by major companies. 

The Nasdaq composite posted its biggest daily gain since March, as Microsoft’s upbeat earnings spurred a rebound in technology names and investors snapped up oversold shares. The Nasdaq added 209.94 points, or 2.95 percent, to 7,318.34, a day after it confirmed a correction and registered its biggest decline since 2011.

The Dow Jones industrial average rose 401.13 points, or 1.63 percent, to 24,984.55, while the Standard & Poor’s 500 gained 49.47 points, or 1.86 percent, to 2,705.57. Both moved back into positive territory for the year. 

In Europe, France’s key index jumped 1.6 percent, while German and British stock prices made smaller gains. 

Variety of gainers

The latest round of good U.S. results came from a variety of companies, including Ford Motor Co., Visa Inc., Whirlpool Corp. and Twitter Inc., and offered relief after the earnings season began slowly and stumbled further on sluggish outlooks from manufacturers and chipmakers. 

Stocks have sold off recently amid worries about rising interest rates, growing trade tensions between the world’s two largest economies, China’s slowing economy and the fading impact of the recent U.S. tax cut on company profits. 

In a further sign that economic growth is moderating, U.S. business spending on equipment appeared to have remained slow in September and the goods trade deficit grew as rising imports outpaced a rebound in exports. 

Lower prices

But the recent sell-off has also made stocks a bit cheaper. The S&P 500’s valuation fell to a 2½-year low of 15.3 times profit estimates for the next 12 months from 15.8, according to trading and data business Refinitiv.

Results from S&P 500 companies have pushed up third-quarter profit growth estimates to 23.6 percent from 21.8 percent in the last 10 days. But forecasts have trimmed fourth-quarter growth estimates to 19.4 percent from 19.9 percent, according to I/B/E/S data from Refinitiv. 

Some information for this report came from Reuters.

UK Fines Facebook Over Data Privacy Scandal, EU Seeks Audit

British regulators slapped Facebook on Thursday with a fine of 500,000 pounds ($644,000) — the maximum possible — for failing to protect the privacy of its users in the Cambridge Analytica scandal.

At the same time, European Union lawmakers demanded an audit of Facebook to better understand how it handles information, reinforcing how regulators in the region are taking a tougher stance on data privacy compared with U.S. authorities.

Britain’s Information Commissioner Office found that between 2007 and 2014, Facebook processed the personal information of users unfairly by giving app developers access to their information without informed consent. The failings meant the data of some 87 million people was used without their knowledge.

“Facebook failed to sufficiently protect the privacy of its users before, during and after the unlawful processing of this data,” said Elizabeth Denham, the information commissioner. “A company of its size and expertise should have known better and it should have done better.”

The ICO said a subset of the data was later shared with other organizations, including SCL Group, the parent company of political consultancy Cambridge Analytica, which counted U.S. President Donald Trump’s 2016 election campaign among its clients. News that the consultancy had used data from tens of millions of Facebook accounts to profile voters ignited a global scandal on data rights.

The fine amounts to a speck on Facebook’s finances. In the second quarter, the company generated revenue at a rate of nearly $100,000 per minute. That means it will take less than seven minutes for Facebook to bring in enough money to pay for the fine.

But it’s the maximum penalty allowed under the law at the time the breach occurred. Had the scandal taken place after new EU data protection rules went into effect this year, the amount would have been far higher — including maximum fines of 17 million pounds or 4 percent of global revenue, whichever is higher. Under that standard, Facebook would have been required to pay at least $1.6 billion, which is 4 percent of its revenue last year.

The data rules are tougher than the ones in the United States, and a debate is ongoing on how the U.S. should respond. California is moving to put in regulations similar to the EU’s strict rules by 2020 and other states are mulling more aggressive laws. That’s rattled the big tech companies, which are pushing for a federal law that would treat them more leniently.

Facebook CEO Mark Zuckerberg said in a video message to a big data privacy conference in Brussels this week that “we have a lot more work to do” to safeguard personal data.

About the U.K. fine, Facebook responded in a statement that it is reviewing the decision.

“While we respectfully disagree with some of their findings, we have said before that we should have done more to investigate claims about Cambridge Analytica and taken action in 2015. We are grateful that the ICO has acknowledged our full cooperation throughout their investigation.”

Facebook also took solace in the fact that the ICO did not definitively assert that U.K. users had their data shared for campaigning. But the commissioner noted in her statement that “even if Facebook’s assertion is correct,” U.S. residents would have used the site while visiting the U.K.

EU lawmakers had summoned Zuckerberg in May to testify about the Cambridge Analytica scandal.

In their vote on Thursday, they said Facebook should agree to a full audit by Europe’s cyber security agency and data protection authority “to assess data protection and security of users’ personal data.”

The EU lawmakers also call for new electoral safeguards online, a ban on profiling for electoral purposes and moves to make it easier to recognize paid political advertisements and their financial backers.

 

Google Abandons Berlin Campus Plan After Locals Protest

Google is abandoning plans to establish a campus for tech startups in Berlin after protests from residents worried about gentrification.

The internet giant confirmed reports Thursday it will sublet the former electrical substation in the capital’s Kreuzberg district to two charitable organizations, Betterplace.org and Karuna.

Google has more than a dozen so-called campuses around the world. They are intended as hubs to bring together potential employees, startups and investors.

Protesters had recently picketed the Umspannwerk site with placards such as “Google go home.”

Karuna, which helps disadvantaged children, said Google will pay 14 million euros ($16 million) toward renovation and maintenance for the coming five years.

Google said it will continue to work with startups in Berlin, which has become a magnet for tech companies in Germany in recent years.

At Many Hospitals Worldwide, If You Don’t Pay, You Can’t Leave

Doctors at Nairobi’s Kenyatta National Hospital have told Robert Wanyonyi there’s nothing more they can do for him. Yet more than a year after he first arrived, shot and paralyzed in a robbery, the ex-shopkeeper remains trapped in the hospital.

Because Wanyonyi cannot pay his bill of nearly 4 million Kenyan shillings ($39,570), administrators are refusing to let him leave his fourth-floor bed.

At Kenyatta National Hospital and at an astonishing number of hospitals around the world, if you don’t pay up, you don’t go home.

The hospitals often illegally detain patients long after they should be medically discharged, using armed guards, locked doors and even chains to hold those who have not settled their accounts. Even death does not guarantee release: Kenyan hospitals and morgues are holding hundreds of bodies until families can pay their loved ones’ bills, government officials say.

An Associated Press investigation has found evidence of hospital imprisonments in more than 30 countries worldwide, according to hospital records, patient lists and interviews with dozens of doctors, nurses, health academics, patients and administrators. The detentions were found in countries including the Philippines, India, China, Thailand, Lithuania, Bulgaria, Bolivia and Iran. Of more than 20 hospitals visited by the AP in Congo, only one did not detain patients.

Millions possibly affected

“What’s striking about this issue is that the more we look for this, the more we find it,” said Dr. Ashish Jha, director of the Harvard Global Health Institute. “It’s probably hundreds of thousands, if not millions of people that this affects worldwide.”

During several August visits to Kenyatta National Hospital — a major medical institution designated a Center of Excellence by the U.S. Centers for Disease Control and Prevention — the AP witnessed armed guards in military fatigues standing watch over patients. Detainees slept on bedsheets on the floor in cordoned-off rooms. Guards prevented one worried father from seeing his detained toddler.

Kenya’s ministry of health and Kenyatta canceled several scheduled interviews with the AP and declined to respond to repeated requests for comment.

Health experts decry hospital imprisonment as a human rights violation. Yet the United Nations, U.S. and international health agencies, donors and charities have all remained silent while pumping billions of dollars into these countries to support their splintered health systems or to fight outbreaks of diseases including AIDS and malaria.

“People know patients are being held prisoner, but they probably think they have bigger battles in public health to fight, so they just have to let this go,” said Sophie Harman, a global health expert at Queen Mary University of London.

Hospitals often acknowledge detaining patients isn’t profitable, but many say it can sometimes result in a partial payment and serves as a deterrent.

‘A way to conduct business’

Festus Njuguna, an oncologist at the Moi Teaching and Referral Hospital in Eldoret, about 300 kilometers northwest of Nairobi, said the institution regularly detains children with cancer who have finished their treatment, but whose parents cannot pay.

“It’s not a very good feeling for the doctors and nurses who have treated these patients, to see them kept like this,” Njuguna said.

Still, many officials openly defend the practice.

“We can’t just let people leave if they don’t pay,” said Leedy Nyembo-Mugalu, administrator of Congo’s Katuba Reference Hospital. He said holding patients wasn’t an issue of human rights, but simply a way to conduct business: “No one ever comes back to pay their bill a month or two later.”

Global health agencies and companies that operate where patients are held hostage often have very little to say about it.

The CDC provides about $1.5 million every year to Kenyatta National Hospital and Pumwani Maternity Hospital, helping to cover treatment costs for patients with HIV and tuberculosis, among other programs. The CDC declined to comment on whether it was aware that patients were regularly detained at the two hospitals or if it condones the practice.

Dr. Agnes Soucat of the World Health Organization said it does not support patient detentions, but has been unable to document where it happens. And while the WHO has issued hundreds of health recommendations on issues from AIDS to Zika virus, the agency has never published any guidance advising countries not to imprison people in their hospitals.

‘Cruel, inhuman and degrading’

Many Kenyan human rights advocates lament that hospitals continue to hold patients despite what was seen as a landmark judgment in 2015.

Back then, the High Court ruled that the detention of two women at Pumwani who couldn’t pay their delivery fees — Maimuna Omuya and Margaret Oliele — was “cruel, inhuman and degrading.” Omuya and her newborn were held for almost a month next to a flooded toilet while Oliele was handcuffed to her bed after trying to escape.

Earlier this month, the High Court ruled again that imprisoning patients “is not one of the acceptable avenues [for hospitals] to recover debt.”

Omuya said she is still psychologically scarred by her detention at Pumwani, especially after another recent run-in with a Nairobi hospital.

Several months ago, her youngest brother was treated for a suspected poisoning. When Omuya and her family were unable to pay the bill, the situation took a familiar but unwelcome turn: he was imprisoned. Her brother was only freed after his doctor intervened.

“Detentions still go on because there are no rights here,” Omuya said. “What I suffered, I want no one else to suffer.”

 

EU Parliament Moves to Ban Single-Use Plastics

The European Parliament voted overwhelmingly Wednesday to ban single-use plastic products such as straws, eating utensils and coffee sticks across the European Union.

The measure passed 571 to 53, with 34 abstentions.

If approved by the European Commission — the EU executive — and individual states, the ban would become law in 2021.

Supporters say plastics are a major source of pollution that chokes oceans, litters cities, and can take decades to disintegrate.

Some U.S. cities have moved to ban plastic straws in restaurants after a heartbreaking video of a wildlife rescuer pulling a straw out of a turtle’s bloody nose was posted on the internet earlier this year.

A consortium of European plastics manufacturers called the EU bill “disproportionate” and said banning single-use plastics discourages investment into new ways to recycle.

The EU plastics bill also includes deadlines for reducing or recycling other plastics such as bottles, fishing lines, food wrappers, and cigarette filters.

 

These Carbon-Capture Methods Are Ready to Fight Climate Change Today, Experts Say

Four cost-effective methods are ready today to remove substantial amounts of planet-warming carbon dioxide (CO2) from the atmosphere, according to a new report from a panel of top scientists.

All four take advantage of nature’s ability to take carbon from the air and store it.

However, fully implementing all of them still would not be enough to prevent potentially catastrophic levels of global warming, according to the report from the National Academies of Sciences, Engineering, and Medicine. 

Nearly all nations have signed on to the Paris climate agreement, which pledges to keep global warming to less than a global average of 2 degrees Celsius above pre-industrial levels, and ideally below 1.5 degrees.

Emissions from burning fossil fuels and other sources have already warmed the planet about 1 degree. At the current pace, temperatures will likely top 1.5 degrees by mid-century, according to the latest report from the U.N. Intergovernmental Panel on Climate Change. 

Zero emissions technologies such as wind farms and solar panels will not be enough to stop global warming, the U.N. report says. Negative emissions technologies will be needed as well. 

Trees are tops

The National Academies panel looked at existing strategies for removing CO2 from the atmosphere and found four that are ready for widespread use. 

The first is among the most tried-and-true: planting trees.

“It’s even kind of a misnomer to call it a technology,” said Princeton University biologist Stephen Pacala, who chaired the panel.

Adding and restoring forests, plus better management of existing forests, are the two cheapest ways to get substantial amounts of carbon out of the atmosphere, the report says. 

Farm and ranch lands offer the next biggest and cheapest CO2 removal strategies. 

Overused soils lose carbon, as well as nutrients. Rebuilding them increases their fertility and water-holding capacity. 

“And you get a negative emission because the carbon comes from the atmosphere,” Pacala said.

“We know how to do quite a bit of this,” he added, with soil conservation techniques that began after the 1930s Dust Bowl in the U.S. Great Plains.

The fourth ready-to-go approach, the report says, is known as biomass energy with carbon capture and storage, or BECCS. It generally involves burning or fermenting some kind of plant matter to produce electricity, fuel or heat, then capturing and storing the carbon emissions in underground sinks or elsewhere. 

The report says BECCS has the biggest CO2 removal potential of the four but is also the most costly.

Big gap

Applied worldwide, these techniques together have the potential to pull up to 10 gigatons of CO2 out of the atmosphere per year. 

The world emits about 50 gigatons per year.  

The authors note that devoting more land to CO2 removal would mean diverting land needed to produce food and clothing. 

For example, they say removing 10 gigatons of CO2 by BECCS alone would consume nearly 40 percent of the world’s cropland.  

Even 10 gigatons of CO2 removal is extremely optimistic, the authors note. It assumes all the strategies are used to their fullest extent everywhere.

The panel also considered emerging technology that captures carbon dioxide directly from the air. 

Currently, it is too expensive to be practical. But if the costs come down, Pacala said, it “would have essentially unlimited capacity to remove carbon.” 

Another promising approach would take advantage of the ability of certain naturally occurring minerals to react with CO2 and lock it up. But the authors say the fundamentals are poorly understood.

The report outlines a detailed research agenda to maximize all of the strategies. It notes that while the U.S. federal government may have other priorities, U.S. states, cities, corporations and other countries around the world are investing in fighting climate change. The country where the tools are developed stands to gain an economic boost, it says.

Tech Companies Lead Another Steep Sell-Off in US Stocks

Another torrent of selling gripped Wall Street on Wednesday, sending the Dow Jones Industrial Average plummeting more than 600 points and extending a losing streak for the benchmark S&P 500 index to a sixth day.

The tech-heavy Nasdaq composite bore the brunt of the sell-off, leaving it more than 10 percent below its August peak, what Wall Street calls a “correction.” The Dow and S&P 500 erased their gains for the year.

Technology stocks and media and communications companies accounted for much of the selling. AT&T sank after reporting weak subscriber numbers, and chipmaker Texas Instruments fell sharply after reporting slumping demand.

Banks, health care and industrial companies also took heavy losses, outweighing gains by utilities and other high-dividend stocks.

Disappointing quarterly results and outlooks continued to weigh on the market, stoking investors’ jitters over future growth in corporate profits. Bond prices continued to rise, sending yields lower, as traders sought safe-haven investments.

“Investors are on pins and needles,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “There has definitely been a change in sentiment for investors starting with the volatility we had last week. The sentiment and the outlook seem to be turning more negative, or at the very least, less rosy.”

The S&P 500 lost 84.59 points, or 3.1 percent, to 2,656.10. The index is now off about 9.4 percent from its Sept. 20 peak.

The Dow tumbled 608.01 points, or 2.4 percent, to 24,583.42. The tech-heavy Nasdaq slid 329.14 points, or 4.4 percent, to 7,108.40. That’s the Nasdaq’s biggest drop since August 2011.

The Russell 2000 index of smaller-company stocks gave up 57.89 points, or 3.8 percent, to 1,468.70.

Bond prices rose, sending the yield on the 10-year Treasury note down to 3.11 percent from 3.16 percent late Tuesday.

Google Abandons Planned Berlin Office Hub

Campaigners in a bohemian district of Berlin celebrated Wednesday after Internet giant Google abandoned strongly-opposed plans to open a large campus there.

The US firm had planned to set up an incubator for start-up companies in Kreuzberg, one of the older districts in the west of the capital.

But the company’s German spokesman Ralf Bremer announced Wednesday that the 3,000 square-metre (3,590 square-yard) space — planned to host offices, cafes and communal work areas, would instead go to two local humanitarian associations.

Bremer did not say if local resistance to the plans over the past two years had played a part in the change of heart, although he had told the Berliner Zeitung daily that Google does not allow protests dictate its actions.

“The struggle pays off,” tweeted “GloReiche Nachbarschaft”, one of the groups opposed to the Kreuzberg campus plan and part of the “F**k off Google” campaign.

Some campaigners objected to what they described as Google’s “evil” corporate practices, such as tax evasion and the unethical use of personal data.

Some opposed the gentrification of the district, pricing too many people out of the area.

A recent study carried out by the Knight Fox consultancy concluded that property prices are rising faster in Berlin than anywhere else in the world: they jumped 20.5 percent between 2016 and 2017.

In Kreuzberg over the same period, the rise was an astonishing 71 percent.

Kreuzberg, which straddled the Berlin Wall that divided East and West Berlin during the Cold War, has traditionally been a bastion of the city’s underground and radical culture.

WHO: ‘Very Serious’ Ebola Situation in Eastern DRC

Violence in the eastern Democratic Republic of Congo is hampering efforts to contain an Ebola outbreak that has already killed more than 150 people, according to the World Health Organization.

“It’s a very serious situation. This is something that we have been fearing from the beginning; that the security situation will influence the response to the level that we cannot really function fully,” says a WHO spokesman, Tarik Jasarevic.

The outbreak in Congo’s North Kivu province is in a conflict zone where dozens of armed groups operate.  Aid agencies have been forced to suspend or slow down their work on several occasions since the outbreak began in July.

Health workers killed

It happened again over the weekend, when two health agents with Congo’s military were killed by rebels.  The next day, residents in the city of Beni pelted aid groups’ vehicles with stones during a protest against a separate rebel attack that killed at least 13 people. 

Jasarevic tells VOA’s English-to-Africa service that the incidents have forced Ebola containment teams to severely curtail their operations. The result?  

“Contacts will not be followed; this is something that has to be done on a daily basis. People who may develop the disease will not go immediately to treatment centers and will present danger to their environment,” he says.

Containment delayed

That means health workers will have to essentially start over to locate contacts of Ebola victims and ensure they are vaccinated. 

“In case we are not able to access communities, if in case response measures are not being put in place  safe burials, contact tracing, vaccinations, provision of treatment to those who are sick — it is really difficult to hope that the Ebola outbreak can be contained on its own,” Jasarevic says.

Latest numbers

According to the WHO’s most recent report, released Tuesday, a total of 238 confirmed and probable Ebola Virus Disease cases have been reported in Congo’s North Kivu and Ituri provinces.  It said 155 people have died.

The WHO has warned the virus could spread to nearby countries, such as Uganda, Rwanda and Burundi.

“Neighboring countries need to be ready in case the outbreak spreads beyond the Democratic Republic of the Congo,” said the latest WHO report.

West Africa’s Ebola Outbreak Cost $53 Billion: Study

An Ebola outbreak that ravaged Sierra Leone, Guinea and Liberia in 2014 cost economies an estimated $53 billion, according to a study in this month’s Journal of Infectious Diseases.

The study aimed to combine the direct economic burden and the indirect social impact to generate a comprehensive cost of the outbreak, which was the worst in the world.

The outbreak ran from 2013 to 2016 and killed at least 11,300 people, more than all other known Ebola outbreaks combined. The vast majority of cases were in Guinea, Liberia and Sierra Leone.

The report’s authors, Caroline Huber, Lyn Finelli and Warren Stevens, put the economic costs at $14 billion and said the human cost was even greater, based on the people affected and a dollar figure that reflects the value of each human life.

The total is far higher than previous estimates. In October 2014, the World Bank said the Ebola epidemic could cost $32.6 billion by the end of 2015 in a worst case scenario, but by November 2014 it dialled back that forecast to $3-4 billion. In 2016 the World Bank estimate of economic loss was $2.8 billion.

The 2003 severe acute respiratory syndrome (SARS) cost an estimated $40 billion, while the 2015-2016 Zika virus outbreak in the Americas was estimated to have caused $20 billion in social costs, the new study said.

But a repeat of the 1918 influenza pandemic could cost an annual 700,000 lives and $490 billion, the authors said, citing research published in 2016.

The new Ebola study factored in the impact on healthworkers, long-term conditions suffered by 17,000 Ebola survivors, and costs of treatment, infection control, screening and deployment of personnel beyond West Africa.

The biggest cost not previously accounted for was deaths from other diseases, as Ebola tied up healthcare resources and hospital admissions fell dramatically, adding $18.8 billion to the total bill.

During the outbreak there were 10,623 additional deaths from HIV/AIDS, tuberculosis and malaria, with 3.5 million additional untreated malaria cases.

Measles caused 2,000-16,000 extra deaths as 1 million children missed being vaccinated for measles, and 600,000-700,000 missed other vaccines.

But the authors added that they had limited information on the cost of deploying international health staff and military personnel, and they were obliged to place a value on human life, a widely accepted economic measurement.

Although the “value of a statistical life” (VSL) in North America and Europe is estimated at $7 million-9 million, the authors said, they took a figure from the only study in a West African context, with a VSL of $577,000 in Sierra Leone.

Indonesian Village Bans 3 HIV+ Orphans From School

Authorities in a North Sumatra village have banned three HIV+ orphans from elementary school, and threatened the children, who are from outside the area, with expulsion from Nainggolan due to community fears of transmission.

The children, a boy and two girls, aged 7 to 11 years, were infected by transmission from their mothers, Berlina Sibagariang, executive secretary of the Batak Protestant Christian Huria AIDS Committee (HKBP), told VOA Indonesia. The orphaned children attended preschool and the Nainggolan State Primary School in North Sumatra for one day before they were expelled, in response to outcry from students and parents who learned of their HIV status, according to Sibagariang.

“We want those three children to enjoy their rights to go to school and get an education,” Sibagariang said, adding “the community hopes that the children will no longer attend local schools. They are afraid that their children will be infected with HIV.”

The children were removed from classes on October 22, and Sibagariang said the local community set an October 25 deadline for the children to leave the village.

While an estimated five million people are infected with HIV in Asia, the rate of new infections has slowed in the last decade. But not in Indonesia, which now has an estimated 660,000 people living with HIV, according to the UNAIDS. According to the U.N. agency, Indonesia had 48,000 new HIV infections and 38,000 AIDS-related deaths in 2016, an increase in AIDS-related deaths of 68 percent from 2010. As of 2016, an estimated 3,200 Indonesian children were infected with HIV due to mother-to-child transmission.

There is, Indonesians activists note, ignorance of HIV and its transmission.

“Many people in our rural area still don’t really know what HIV/AIDS is, or the regulations covering it,” Puta Elvina, commissioner of Indonesia’s National Commission to Protect Children (KPAI) told VOA. In Nainggolan, “the school should educate the [Parent Teachers Association (PTA)] about HIV/AIDS so they know they don’t have to worry about it. [The PTA} should communicate to them how people become infected, how HIV is transmitted, etc. And the school has an obligation to those HIV-kids, to protect and support them. Actually not only the school, but also the local people (to support the kids) and the local government.”

Human immunodeficiency virus (HIV) can only be transmitted from an infected person to another through direct contact of bodily fluids such as blood (including menstrual blood), semen, vaginal secretions and breast milk, according to the San Francisco AIDS Foundation, a leading U.S. source of information on HIV and AIDS. “Blood contains the highest concentration of the virus, followed by semen, followed by vaginal fluids, followed by breast milk. … It is possible for an HIV-infected mother to transmit HIV before or during birth or through breast milk. Breast milk contains HIV, and while small amounts of breast milk do not pose significant threat of infection to adults, it is a risk for infants.”

The shunning behavior in Nainggolan is not unique. “HIV stigma is effectively universal, but its form varies from one country to another, and the specific groups targeted for AIDS stigma vary considerably,” says the University of California, Davis. “Whatever its form, HIV stigma inflicts suffering on people and interferes with attempts to fight the AIDS epidemic.”

Tiqoh, who has only one name, is an activist at Yayasan Pelita Ilmu (YPI), a non-governmental organization with a long track record on HIV/AIDS education in Indonesia, understands the difficulty of talking about HIV “with the local people, but perhaps the school could also involve doctors from the local clinic. Those parents and local people who refuse to take care these kids, or don’t want them to study in the same class as their children, they’re taking these actions because they don’t know much about HIV/AIDS. They’re just worry that their kids might be infected.”

HKBP is continuing talks with local government officials and the community as the Thursday deadline approaches in an attempt to stop expulsion of the children from Nainggolan.

“They said that we should remove those children because the local government hasn’t issued a permit to send children to those schools or even stay in that village,” said Sibagariang. “In fact, the home in that village – where we sent the children – is our home, an HKBP home. They have right to stay there.  It’s our home!”

Local leader, Samosir Regent Rapidin Simbolon, told VOA that the HKBP hospital in Nainggolan once “accommodated the elderly, but now they accommodate children who are exposed to HIV.”

So far, the talks have resulted in a suggestion to homeschool the children but the HKBP AIDS Committee rejected this option, saying it would isolate the children and paper over what they see as the real issue: misunderstanding of HIV-AIDS.

 

The committee criticized another local leader, Samosir Deputy Regent, Juang Sinaga, who called for the children to be expelled from the village, and sent to the jungle.

Rapidin told VOA “I am responsible,” he said. “I will not allow the public to directly shun them. … We will protect (the children) so no one will take advantage of the situation. Be assured we are protecting them, we will even involve the police, if necessary. I guarantee that the children are being monitored.”

But the regent said that there were different opinions about the orphans–parents don’t want their children in classes with the HIV+ orphans, “while HKBP who said that [separating these children] is discriminating against HIV-people.”

“The HKBP does not want to understand us,” Rapidin said. “The three children who are positive are not from our region. They come from outside. We are actually very tolerant, it’s OK here. But they (HKBP) are insistent. The HKBP cannot insist like that. Nainggolan residents also have rights.”

Anugerah Andriansyah reported from North Sumatra, Indonesia and Eva Mazrieva reported from Washington, D.C.

 

Saudi Crown Prince Expects Economic Growth of 2.5 Percent in 2018

Saudi Crown Prince Mohammed bin Salman said on Wednesday the kingdom will continue with reforms and spending on infrastructure, predicting the economy will grow by 2.5 percent this year.

Speaking at an investment conference in Riyadh, the crown prince also said he expected economic growth next year to be higher.

Higher oil prices has helped Saudi Arabia’s economy grow in the second quarter at its fastest pace for over a year, according to official data.

Gross domestic product, adjusted for inflation, expanded 1.6 percent from a year earlier in the April-June quarter. That was up from 1.2 percent in the first quarter and the fastest growth since the fourth quarter of 2016.

The pick-up was mainly due to the government sector, where growth jumped to 4.0 percent from 2.7 percent as authorities boosted spending, the data showed.

The crown prince also said the kingdom would press ahead with a war on terrorism.

 

Facebook Unveils Systems for Catching Child Nudity, ‘Grooming’ of Children

Facebook Inc said on Wednesday that company moderators during the last quarter removed 8.7 million user images of child nudity with the help of previously undisclosed software that automatically flags such photos.

The machine learning tool rolled out over the last year identifies images that contain both nudity and a child, allowing increased enforcement of Facebook’s ban on photos that show minors in a sexualized context.

A similar system also disclosed Wednesday catches users engaged in “grooming,” or befriending minors for sexual exploitation.

Facebook’s global head of safety Antigone Davis told Reuters in an interview that the “machine helps us prioritize” and “more efficiently queue” problematic content for the company’s trained team of reviewers.

The company is exploring applying the same technology to its Instagram app.

Under pressure from regulators and lawmakers, Facebook has vowed to speed up removal of extremist and illicit material.

Machine learning programs that sift through the billions of pieces of content users post each day are essential to its plan.

Machine learning is imperfect, and news agencies and advertisers are among those that have complained this year about Facebook’s automated systems wrongly blocking their posts.

Davis said the child safety systems would make mistakes but users could appeal.

“We’d rather err on the side of caution with children,” she said.

Facebook’s rules for years have banned even family photos of lightly clothed children uploaded with “good intentions,” concerned about how others might abuse such images.

Before the new software, Facebook relied on users or its adult nudity filters to catch child images. A separate system blocks child pornography that has previously been reported to authorities.

Facebook has not previously disclosed data on child nudity removals, though some would have been counted among the 21 million posts and comments it removed in the first quarter for sexual activity and adult nudity.

Facebook said the program, which learned from its collection of nude adult photos and clothed children photos, has led to more removals. It makes exceptions for art and history, such as the Pulitzer Prize-winning photo of a naked girl fleeing a Vietnam War napalm attack.

Protecting minors

The child grooming system evaluates factors such as how many people have blocked a particular user and whether that user quickly attempts to contact many children, Davis said.

Michelle DeLaune, chief operating officer at the National Center for Missing and Exploited Children (NCMEC), said the organization expects to receive about 16 million child porn tips worldwide this year from Facebook and other tech companies, up from 10 million last year.

With the increase, NCMEC said it is working with Facebook to develop software to decide which tips to assess first.

Still, DeLaune acknowledged that a crucial blind spot is encrypted chat apps and secretive “dark web” sites where much of new child pornography originates.

Encryption of messages on Facebook-owned WhatsApp, for example, prevents machine learning from analyzing them.

DeLaune said NCMEC would educate tech companies and “hope they use creativity” to address the issue.

Apple CEO Backs Privacy Laws, Warns Data Being ‘Weaponized’

The head of Apple on Wednesday endorsed tough privacy laws for both Europe and the U.S. and renewed the technology giant’s commitment to protecting personal data, which he warned was being “weaponized” against users.

 

Speaking at an international conference on data privacy, Apple CEO Tim Cook applauded European Union authorities for bringing in a strict new data privacy law this year and said the iPhone maker supports a U.S. federal privacy law.

 

Cook’s remarks, along with comments due later from Google and Facebook top bosses, in the European Union’s home base in Brussels, underscore how the U.S. tech giants are jostling to curry favor in the region as regulators tighten their scrutiny.

 

Data protection has become a major political issue worldwide, and European regulators have led the charge in setting new rules for the big internet companies. The EU’s new General Data Protection Regulation, or GDPR, requires companies to change the way they do business in the region, and a number of headline-grabbing data breaches have raised public awareness of the issue.

 

“In many jurisdictions, regulators are asking tough questions. It is time for rest of the world, including my home country, to follow your lead,” Cook said.

 

“We at Apple are in full support of a comprehensive federal privacy law in the United States,” he said, to applause from hundreds of privacy officials from more than 70 countries.

 

In the U.S., California is moving to put in regulations similar to the EU’s strict rules by 2020 and other states are mulling more aggressive laws. That’s rattled the big tech companies, which are pushing for a federal law that would treat them more leniently.

 

Cook warned that technology’s promise to drive breakthroughs that benefit humanity is at risk of being overshadowed by the harm it can cause by deepening division and spreading false information. He said the trade in personal information “has exploded into a data industrial complex.”

 

“Our own information, from the everyday to the deeply personal, is being weaponized against us with military efficiency,” he said. Scraps of personal data are collected for digital profiles that let businesses know users better than they know themselves and allow companies to offer users increasingly extreme content that hardens their convictions,” Cook said.

 

“This is surveillance. And these stockpiles of personal data serve only to enrich only the companies that collect them,” he said.

 

Cook’s appearance seems set to one-up his tech rivals and show off his company’s credentials in data privacy, which has become a weak point for both Facebook and Google.

 

With the spotlight shining as directly as it is, Apple have the opportunity to show that they are the leading player and they are taking up the mantle,'' said Ben Robson, a lawyer at Oury Clark specializing in data privacy. Cook's appearanceis going to have good currency,” with officials, he added.

 

Facebook CEO Mark Zuckerberg and Google head Sundar Pichai were scheduled to address by video the annual meeting of global data privacy chiefs. Only Cook attended in person.

 

He has repeatedly said privacy is a “fundamental human right” and vowed his company wouldn’t sell ads based on customer data the way companies like Facebook do.

 

His speech comes a week after the iPhone maker unveiled expanded privacy protection measures for people in the U.S., Canada, Australia and New Zealand, including allowing them to download all personal data held by Apple. European users already had access to this feature after GDPR took effect in May. Apple plans to expand it worldwide.

 

The International Conference of Data Protection and Privacy Commissioners, held in a different city every year, normally attracts little attention but its Brussels venue this year takes on symbolic meaning as EU officials ratchet up their tech regulation efforts.

 

The 28-nation EU took on global leadership of the issue when it beefed up data privacy regulations by launching GDPR. The new rules require companies to justify the collection and use of personal data gleaned from phones, apps and visited websites. They must also give EU users the ability to access and delete data, and to object to data use.

 

GDPR also allows for big fines benchmarked to revenue, which for big tech companies could amount to billions of dollars.

 

In the first big test of the new rules, Ireland’s data protection commission, which is a lead authority for Europe as many big tech firms are based in the country, is investigating Facebook after a data breach let hackers access 3 million EU accounts.

 

Google, meanwhile, shut down its Plus social network this month after revealing it had a flaw that could have exposed personal information of up to half a million people.

 

 

 

Rust Belt’s Got Talent, But No Money

Julius Wakam worked in auto manufacturing for 11 years before being laid off in 2008. Today, the married father of three has a job at a hardware store to make ends meet until he can secure another well-paying position in his field.

Like many workers in America’s so-called Rust Belt, Wakam lost his manufacturing job not only to an influx of robots, but also because the jobs were shipped overseas where labor is cheaper.

“For me and my co-workers, they shipped the jobs overseas to Mexico, Brazil, China and a few went to India,” Wakam says.

Today, the Rust Belt is perhaps best-known for its declining industry, aging and shuttered factories, and falling population, primarily in the Midwest and Great Lakes region.

But the Midwest region was once known for the booming steel production and heavy industry that powered the nation for several generations. And it could be in a position to do so again.

“Probably the greatest driver of our opportunity in a changed economy from the factory era is this innovation infrastructure where we have 20-plus of the largest research universities on earth,” says John Austin, director of the Michigan Economic Center. “That’s more than any other region. The West Coast has 13. The East Coast has 15. No place in Europe has this concentration of large scale universities that produce thousands upon thousands of STEM, MBAs, engineers and medical talent.”

The Midwest is also home to more than 200 of the nation’s Fortune 500 companies. Austin says America’s Heartland has the horsepower to grow new jobs and industries.

“The Rust Belt can be and is becoming a center of innovation, new business and job creation in all of the arenas that are emerging,” he says. “The emerging sectors, the work of tomorrow, not just the work of the past where we kind of ruled the world and created the great agro-industrial economy that powered America after World War II for several generations.”

Austin says some Rust Belt cities have already turned the corner from being single industry towns to more diverse, economic regions. He cites places like Pittsburgh, Indianapolis, Columbus, Ohio, and Minneapolis-St. Paul as examples of metropolitan areas that have built robust economies partially powered by technology and medical innovation.

However, money is key to that transformation and it’s been slow in coming. Rust Belt innovations tend to be commercialized on the East or West Coast. And that’s where most of the Midwest’s investment dollars end up as well.

Half of all investment money comes from the Midwest, but only 5 percent of total venture capital is invested in the Midwest, according to Austin, who says that dynamic must change for the Rust Belt to reach its full potential.

“We are working to create a Midwest/Great Lakes regional fund that would help more of the wealth and investment dollars from the region, and the big dollars on the coast, find good investments and create more jobs and businesses locally,” Austin says.

There is a place for laid-off workers like Julius Wakam in the Midwest’s emerging new economy. In many cases workers go back to school to learn how to program the robots that supplanted them in the factories where they once worked.

“Someone has to program the robots, someone has to maintain and repair the robots,” says James Sawyer, president of Macomb Community College. “So that’s kind of the transformation that’s gone on. The loading jobs no longer exist, but someone, a skilled worker, needs to take care of the robots that replaced that human element.”

The Michigan-based community college offers workforce training programs that can last 12-to-18 weeks.

“The majority of our workforce programs tend to focus in the advance manufacturing arena,” says Sawyer. “So these are things like robotics, control systems, integration of automation, those types of programs have been very popular in the recent past. And that’s very indicative of the transformation currently going on in manufacturing. So we’re supplying the workers to help do that transformation.”

At the time he was laid off, Julius Wakam was already pursuing an engineering degree at the University of Michigan Dearborn. He completed his degree and then signed up for a workforce training program at Macomb Community College to make himself more marketable.

“That is a program that America really, really needs with the robots taking over,” says Wakam.

Although the job search continues, Wakam says he’s gotten more interest from potential employers since completing Macomb’s workforce training program. He plans to keep looking until he lands a job that utilizes his training and skills.

“To get back to where I was before, the kind of money I was making, that’s what I’m talking about,” he says. “It’s been very rough, but I’m a child of hope. I’m never, never, never going to give up hope and I’m going to keep fighting until I get there.”

UK Watchdog: Smugglers to Exploit Border if no Brexit Deal

Smugglers and other organized criminals are likely to exploit gaps in border enforcement if Britain leaves the European Union without an agreement, a watchdog warned Wednesday, amid a growing chorus of warnings about the disruptive impact of a “no-deal” Brexit.

Britain is due to leave the EU on March 29, but London and Brussels have not reached an agreement on divorce terms and a smooth transition to a new relationship. The stalemate has heightened fears that the U.K. might leave without a deal in place, leading to chaos at ports and economic turmoil.

 

The National Audit Office said in a report that political uncertainty and delays in negotiations with the EU have hampered preparations for new border arrangements, and the government is now racing to bolster computer systems, increase staffing and build new infrastructure to track goods.

 

The office said that 11 of 12 major projects may not be delivered on time or at “acceptable quality,” with those who rely on the border “paying the price.” It added that “organized criminals and others are likely to be quick to exploit any perceived weaknesses or gaps in the enforcement regime.”

 

“This, combined with the U.K.’s potential loss of access to EU security, law enforcement and criminal justice tools, could create security weaknesses which the government would need to address urgently,” the office’s report said.

 

Meanwhile, the Financial Times reported that Transport Secretary Chris Grayling had raised at a Cabinet meeting on Tuesday the idea of chartering ships to bring in food and medicines through alternative ports if new customs checks led to gridlock on the main shipping route between Dover in England and Calais in France.

 

“We remain confident of reaching an agreement with the EU, but it is only sensible for government and industry to prepare for a range of scenarios,” the Department for Transport said in a statement.

 

Prime Minister Theresa May said this week that a divorce deal is “95 percent” done, but the two sides still have a “considerable” gap over the issue of the border between the U.K.’s Northern Ireland and EU member Ireland. Britain and the EU agree there must be no barriers that could disrupt businesses and residents on both sides of the border and undermine Northern Ireland’s hard-won peace process. But so far, each side has rejected the other’s solution.

 

May has attempted to break the impasse by suggesting that a post-Brexit transition period, currently due to end in December 2020, could be extended to give more time for new trade and customs arrangements to be put in place that would eliminate the need for border checks.

 

EU has said it is open to the proposal, but the idea has infuriated May’s political opponents on both sides of Britain’s Brexit divide.

 

Pro-Brexit politicians see it as an attempt to bind the country to the bloc indefinitely, while pro-EU politicians say it is a sign of May’s weak bargaining hand and an attempt to stall for time.

 

On Wednesday, May will try to stem a growing revolt within her Conservative Party over her Brexit blueprint. She’ll address the 1922 Committee, a grouping of backbench Conservative legislators with a key role in deciding who leads the party.

 

Under Conservative rules, a vote of no-confidence in the leader is triggered if 15 percent of party lawmakers write to the 1922 Committee requesting one. The required number currently stands at 48; only committee chief Graham Brady knows how many have been submitted.

 

 

 

No US High-ranking Officials to Attend China Investment Fair

The U.S. will not send a high-ranking official to attend a major investment fair in China next month, the U.S. Embassy said Wednesday, in a move underscoring worsening trade frictions between the world’s two largest economies.

“China needs to make the necessary reforms to end its unfair practices that are harming the world economy,” an embassy spokesperson said, speaking on routine condition of anonymity.

 

“The U.S. government has no current plans for high-level U.S. government participation” in the expo, the official told The Associated Press. “We encourage China to level the playing the field for U.S. goods and services.”

 

State media reported the first-ever China International Import Expo scheduled for Nov. 5-10 in the financial hub of Shanghai has attracted more than 2,800 companies from 130 nations.

 

The fair aims to advertise China’s importance as a market for foreign goods and recent moves to encourage trade and investment amid accusations that it discriminates against foreign companies and unfairly demands they hand over crucial technology.

 

The event comes as the U.S. has raised tariffs to up to 25 percent on $250 billion of Chinese goods with the possibility of more such measures to come. Beijing has responded with its own tariff hikes on $110 billion of American imports.

 

“China’s return to the path of economic reform and sincere commitment to market-based trade and investment norms would be good for the United States, the world and ultimately good for China,” the embassy spokesperson said.

 

Neither Beijing nor Washington has shown any sign of backing down despite China reporting growth in its $12 trillion-a-year economy slowing to a post-global crisis low of 6.5 percent over a year earlier in September. China’s stock market has also sagged 30 percent since January.

 

In response, Beijing has cut tariffs, promised to lift curbs on foreign ownership of auto producers and taken other steps to rev up growth.

 

But leaders have refused to scrap plans such as “Made in China 2025,” which calls for state-led creation of Chinese champions in robotics and other technologies — seen as a major threat to the U.S. and other advanced economies.

 

President Donald Trump has also accused China of seeking to interfere in next month’s midterm elections, while offering no proof, and tensions have risen as well over Taiwan arms sales and Beijing’s territorial claims in the South China Sea.

 

 

Hi-tech Cameras Spy Fugitive Emissions

The technology used in space missions can be expensive but it has some practical benefits here on Earth. Case in point: the thousands of high resolution images taken from the surface of Mars, collected by the two Mars rovers – Spirit and Opportunity. Now researchers at Carnegie Mellon University, in Pittsburgh, are using the same technology to analyze air pollution here on our planet. VOA’s George Putic reports.

UN Official Warns of Imminent Great Hunger in Yemen

A United Nations official is warning that Yemen is in imminent danger of being engulfed by unprecedented famine. Mark Lowcock, U.N. undersecretary-general for humanitarian affairs, advised the U.N. Security Council Tuesday that the war-torn Arab country is facing greater famine than any professional in the field has ever seen. VOA’s Zlatica Hoke reports the U.N. official called for efforts to stop violence and increase humanitarian aid.

Islamic Banking Grows in Africa Amid Booming Muslim Population

Islamic-style banking is on the rise worldwide, showing especially strong growth in Africa recently, according to the rating agency Moody’s. This type of banking system doesn’t charge or pay interest, uses physical assets to underpin transactions, and does not invest in so-called “sin” industries like alcohol, pork and gambling. In South Africa, the continent’s financial hub, Islamic banking is gaining popularity among the minority Muslim community. VOA’s Anita Powell reports in Johannesburg.

US Lawmaker Vows to Work Toward New Trump Tax Cut

The top Republican lawmaker on tax policy in the U.S. House of Representatives said Tuesday that he was working with the White House and Treasury to develop a new 10 percent middle-class tax cut plan that

President Donald Trump began touting over the weekend.

Rep. Kevin Brady of Texas, who chairs the tax-writing House

Ways and Means Committee, said the plan would be crafted in “coming weeks” and would advance in Congress if Republicans retained control of the House and Senate in midterm elections on Nov. 6.

“President Trump believes American families deserve to keep more of what they work so hard to earn. We agree,” Brady said in a statement.

In what is widely seen by lobbyists as the latest Republican campaign message on taxes, Trump told reporters on Tuesday at the White House that the plan would emerge soon.

“This will be on top of the tax reduction that the middle class has already gotten. And we’re putting in a resolution, probably this week,” the president said.

Surprised

Trump’s comments came a day after congressional and administrative staff appeared to be caught off guard by word of a new tax cut, which surfaced on Saturday.

The White House on Tuesday described the new tax cut as an agenda item for 2019 and suggested it could be offset by cuts in spending.

Republicans are in a pitched battle to retain control of the House and Senate against an energized Democratic voting base that has made contests competitive even in some Republican strongholds.

“What President Trump is doing on the [campaign] trail is he’s just describing what he wants to be in the tax bill that moves next year,” Trump economic adviser Kevin Hassett told MSNBC on Tuesday. “You could expect in our budget, and also in our approach to legislation next year, that we’re going to be pursuing a big reduction in government spending.”

Trump signed steep tax cuts for businesses and individuals into law last December as part of a sprawling Republican tax overhaul. Stung by criticism that their tax plan shortchanged families by having individual tax cuts expire after 2025, House Republicans voted last month to make the individual cuts

permanent in a legislative package dubbed “Tax Reform 2.0.”

“Because of the fact that the economy is doing so well, we feel like we can give up some more. I couldn’t have gotten that extra 10 percent when we originally passed the [tax] plan. We maxed out,” Trump said.

US Tech Companies Reconsider Saudi Investment

The controversy over the death of Saudi Arabian journalist Jamal Khashoggi has shined a harsh light on the growing financial ties between Silicon Valley and the world’s largest oil exporter.

As Saudi Arabia’s annual investment forum in Riyadh — dubbed “Davos in the Desert” — continues, representatives from many of the kingdom’s highest-profile overseas tech investments are not attending, joining other international business leaders in shunning a conference amid lingering questions over what role the Saudi government played in the killing of a journalist inside their consulate in Turkey.

Tech leaders such as Steve Case, the co-founder of AOL, and Dara Khosrowshahi, the chief executive of Uber, declined to attend this week’s annual investment forum in Riyadh. Even the CEO of Softbank, which has received billions of dollars from Saudi Arabia to back technology companies, reportedly has canceled his planned speech at the event.

But the Saudi controversy is focusing more scrutiny on the ethics of taking money from an investor who is accused of wrongdoing or whose track record is questionable.

Fueling the tech race

In the tech startup world, Saudi investment has played a key role in allowing firms to delay going public for years while they pursue a high-growth strategy without worrying about profitability. Those ties have only grown with the ascendancy of Crown Prince Mohammed bin Salman, the son of the Saudi king.

The kingdom’s Public Investment Fund has put $3.5 billion into Uber and has a seat on Uber’s 12-member board. Saudi Arabia also has invested more than $1 billion into Lucid Motors, a California electric car startup, and $400 million in Magic Leap, an augmented reality startup based in Florida.

Almost half of the Japanese Softbank’s $93 billion Vision Fund came from the Saudi government. The Vision Fund has invested in a Who’s Who list of tech startups, including WeWork, Wag, DoorDash and Slack. 

Now there are reports that as the cloud hangs over the crown prince, Softbank’s plan for a second Vision fund may be on hold. And Saudi money might have trouble finding a home in the future in Silicon Valley, where companies are competing for talented workers, as well as customers.

The tech industry is not alone in questioning its relationship with the Saudi government in the wake of Khashoggi’s death or appearing to rethink its Saudi investments. Museums, universities and other business sectors that have benefited financially from their connections to the Saudis also are taking a harder look at those relationships.

Who are my investors?

Saudi money plays a large role in Silicon Valley, touching everything from ride-hailing firms to business-messaging startups, but it is not the only foreign investment in the region.

More than 20 Silicon Valley venture companies have ties to Chinese government funding, according to Reuters, with the cash fueling tech startups. The Beijing-backed funds have raised concerns that strategically important technology, such as artificial intelligence, is being transferred to China.

And Kremlin money has backed a prominent Russian venture capitalist in the Valley who has invested in Twitter and Facebook.

The Saudi controversy has prompted some in the Valley to question their investors about where those investors are getting their funding. Fred Wilson, a prominent tech venture capitalist, received just such an inquiry.

“I expect to get more emails like this in the coming weeks as the start-up and venture community comes to grip with the flood of money from bad actors that has found its way into the start-up/tech sector over the last decade,” he wrote in a blog post titled “Who Are My Investors?”

“Bad actors’ doesn’t simply mean money from rulers in the gulf who turn out to be cold blooded killers,” Wilson wrote. “It also means money from regions where dictators rule viciously and restrict freedom.” 

This may be a defining ethical moment in Silicon Valley, as it moves away from its libertarian roots to seeing the world in its complexity, said Ann Skeet, senior director of leadership ethics at the Markkula Center for Applied Ethics at Santa Clara University.

“Corporate leaders are moving more quickly and decisively than the administration, and they realize they have a couple of hats here — one, they are the chief strategist of their organization, and they also play the role of the responsible person who creates space for the right conversations to happen,” she said.

Tech’s evolving ethics

Responding to demands from their employees and customers, Silicon Valley firms are looking more seriously at business ethics and taking moral stands.

In the case of Google, it meant discontinuing a U.S. Defense Department contract involving artificial intelligence. In the case of WeWork, the firm now forbids the consumption of meat at the office or purchased with company expenses, on environmental grounds.

The Vision Fund will “undoubtedly find itself in a more challenging environment in convincing startups to take its money,” Amir Anvarzadeh, a senior strategist at Asymmetric Advisors in Singapore, recently told Bloomberg.