US Regulators Sue Tesla’s Musk for Fraud, Seek to Bar Him as Officer

U.S. securities regulators on Thursday accused Tesla Inc. Chief Executive Elon Musk of fraud and sought to ban him as an officer of a public company, saying he made a series of “false and misleading” tweets about potentially taking the electric car company private last month.

Musk, 47, is one of the highest-profile tech executives to be accused of fraud by the Securities and Exchange Commission.

Losing its public face and guiding force would be a big blow for money-losing Tesla, which has a market value of more than $50 billion, chiefly because of investors’ belief in Musk’s leadership.

Tesla shares tumbled 12 percent in after-hours trading. Company officials were not immediately available for comment.

The SEC’s lawsuit, filed in Manhattan federal court, came less than two months after Musk told his more than 22 million Twitter followers on Aug. 7 that he might take Tesla private at $420 per share, and that there was “funding secured.”

“Neither celebrity status nor reputation as a technological innovator provides an exemption from federal securities laws,” Stephanie Avakian, co-director of enforcement at the SEC, told a news conference announcing its charges against Musk.

Musk has long used Twitter to criticize short-sellers betting against his company, and already faced several investor lawsuits over the Aug. 7 tweets, which caused Tesla’s share price to gyrate.

According to the SEC, Musk “knew or was reckless in not knowing” that his tweets about taking Tesla private at $420 a share were false and misleading, given that he had never discussed such a transaction with any funding source.

The SEC said he also knew he had not satisfied other contingencies when he declared unequivocally that only a shareholder vote would be needed.

Thursday’s complaint also seeks to impose a civil fine and other remedies. The SEC does not have criminal enforcement power.

On Aug. 24, after news of the SEC probe had become known, Musk blogged that Tesla would remain public, citing investor resistance.

Deputy UN Chief: Fight Against TB Drastically Underfunded

Tuberculosis is a vicious epidemic that is drastically underfunded. That was the takeaway message from the first high-level meeting focused on the infectious disease at the U.N. General Assembly in New York.

Amina Mohammad, U.N. deputy secretary-general, said the disease is fueled by poverty, inequality, migration and conflict, and that an additional $13 billion per year is needed to get the disease under control.  

Last year, tuberculosis killed more people than any other communicable disease — more than 1.3 million men, women and children.

The World Health Organization estimates that the 10 million people who become newly infected each year live mostly in poor countries with limited access to health care.

Dr. Tedros Adhanom Ghebreyesus, head of the WHO, told the assembly that partnership is vital to end the disease. He said the WHO is committed to working with every country, partner and community to get the job done.

The WHO plans to lead U.N. efforts to support governments and other partners in order to drive a faster response to TB.

Most people can be cured with a six-month treatment program. But as world leaders told the assembly, medication is expensive, and the stigma associated with TB interferes with getting people screened and treated.

Nandita Venkatesan, a young woman from India, told the assembly about the toll the disease has taken on her life. She got TB more than once, including a drug-resistant variety. She said it robbed her of eight years of her life while she was being treated. One of the medications she took to help cure TB robbed her of her hearing.

Venkatesan said getting cured involved hospital stays, six surgeries and negative reactions to at least one drug used to cure her.

Just days before the high-level meeting, the WHO released its annual TB report. It found cases in all countries and among all age groups. It also found that two-thirds of the cases were in eight countries — India, Pakistan, Bangladesh, China, Indonesia, the Philippines, South Africa and Nigeria.

The meeting ended with the adoption of a declaration intended to strengthen action and investments for ending TB and saving millions of lives.

Report: Disappearing Wetlands Put Planet Life at Risk 

A new report warns that wetlands are disappearing three times faster than the world’s forests, with serious consequences for all life on earth. 

The Ramsar Convention on Wetlands is a global treaty ratified in 1971 by 170 countries to protect wetlands, which are ecosystems inundated by water, such as swamps, bogs and floodplains. 

Unfortunately, the goal of this treaty is under threat. Ramsar Convention officials report about 35 percent of the world’s wetlands have been lost between 1970 and 2015.

State of crisis

Unless this situation is urgently reversed, Ramsar Convention Secretary-General Martha Roja Urrego warns the world will be in a state of crisis because wetlands are critical for all aspects of life.

“All the water that we use for consumption, irrigation and for hydro-electricity comes directly or indirectly from wetlands,” Urrego said. “Secondly, wetlands also have a main function in filtering waste and pollutants, so they act as the kidneys of the world. They filter the waste.”

Urrego says wetlands also are essential in regulating the global climate as peatlands store twice as much carbon as the world’s forests. 

Several factors

The report finds wetland loss is driven mainly by such factors as climate change, population increase, changing consumption patterns and urbanization, particularly in coastal zones and river deltas.

Authors of the report say biodiversity also is in a state of crisis. They say more than 25 percent of all wetlands plants and animals are at risk of extinction.

Scientists say without biodiversity, there is no future for humanity, because the air people breathe, the water they drink and the food they eat ultimately rely on biodiversity in its many forms.

Life in America’s Northernmost Observatory: Tracking Climate Change, Learning Inupiaq

An observatory in Barrow, Alaska, the most northerly astronomical outpost in the U.S., has become a key scientific instrument in studying climate change. Established in 1973, the Barrow Observatory is staffed year-round by two researchers who measure and track changes in air quality and weather, while also acclimating with local traditions. Natasha Mozgovaya traveled to Barrow, now officially called Utqiagvik, its Inupiaq name, to see what life is like in one of the coldest places in the world.

US, Japan Working Toward Free-trade Agreement

The United States and Japan have agreed to begin negotiations on a bilateral free-trade agreement, reducing the prospect that Washington might impose tariffs against another trading partner.

“We’ve agreed today to start trade negotiations between the United States and Japan,” U.S. President Donald Trump said at a summit with Japanese Prime Minister Shinzo Abe in New York on the sidelines of the U.N. General Assembly.

“This was something that for various reasons over the years Japan was unwilling to do and now they are willing to do. So we’re very happy about that, and I’m sure that we will come to a satisfactory conclusion, and if we don’t, ohhhhhh,” Trump added.

Fast-track authority

The White House released a statement after the meeting, stating the two countries would enter into talks after completing necessary domestic procedures for a bilateral trade agreement on goods and other key areas, including services.

U.S. Trade Representative Robert Lighthizer called it a “very important step” in expanding U.S.-Japan relations. He told reporters that the U.S. and Japan were aiming to approve a full free-trade agreement soon. Lighthizer said he would talk to Congress on Thursday about seeking authority for the president to negotiate the agreement, under the “fast track” trade authority law.

Lighthizer said he expected the negotiations to include the goal of reaching an “early harvest” on reducing tariffs and other trade barriers.

Tokyo’s reticence

Tokyo had been reluctant to commit to a bilateral free-trade pact and had hoped that Washington would consider returning to the Trans-Pacific Partnership, a broader regional trade agreement championed by the Obama administration that Trump pulled out of in January 2017.

Trump has complained about Japan’s $69 billion trade surplus with the U.S. and has been pressuring Abe to agree to a two-way agreement to address it, including during Abe’s visit to Trump’s Florida resort, Mar-a-Lago, in April.

Japanese officials have expressed concern Trump might pressure Tokyo to open up its politically sensitive farm market. They also are wary Trump might demand a reduction in Japanese auto imports or impose high tariffs on autos and auto parts, which would be detrimental to Japan’s export-reliant economy.

Trump is expressing confidence the two sides will reach an agreement.

“We’re going to have a really great relationship, better than ever before on trade,” he said. “It can only be better for the United States because it couldn’t get any worse because of what’s happened over the years.”

Uber to Pay $148M for Hiding Data Breach

The ride-hailing service Uber has agreed to pay $148 million to settle claims that it concealed a massive data breach that exposed personal information of drivers and customers. 

In November 2016, Uber learned that hackers had accessed personal data of about 600,000 Uber drivers, including their driver’s license numbers. Hackers also had stolen email addresses and cellphone numbers of 57 million riders worldwide. 

The claims, filed in every U.S. state and the District of Columbia, said rather than inform the drivers involved, Uber hid the breach for more than a year and paid ransom to ensure the data wouldn’t be misused.

“This is one of the most egregious cases we’ve ever seen in terms of notification; a yearlong delay is just inexcusable,” Illinois Attorney General Lisa Madigan told The Associated Press. 

Uber’s chief legal officer, Tony West, said the decision to come clean about the hack was made after major management changes at the company. 

“It embodies the principles by which we are running our business today: transparency, integrity and accountability,” West said. 

Each state will receive a part of the settlement based on how many drivers they have. Most states estimate each affected Uber driver will receive about $100. 

CDC Official: 80,000 Died of Flu Last Winter in US

An estimated 80,000 Americans died of flu and its complications last winter, the disease’s highest death toll in at least four decades.

The director of the U.S. Centers for Disease Control and Prevention, Dr. Robert Redfield, revealed the total in an interview Tuesday with The Associated Press.

Flu experts knew it was a very bad season, but at least one found the size of the estimate surprising.

“That’s huge,” said Dr. William Schaffner, a Vanderbilt University vaccine expert. The tally was nearly twice the figure previously seen by health officials as representing a bad year, he said.

In recent years, flu-related deaths have ranged from about 12,000 to 56,000, according to the CDC. 

Last fall and winter, the U.S. went through one of the most severe flu seasons in recent memory. It was driven by a kind of flu that tends to put more people in the hospital and cause more deaths, particularly among young children and the elderly.

The season peaked in early February and it was mostly over by the end of March.

Making a bad year worse, the flu vaccine didn’t work very well. Experts nevertheless say vaccination is still worth it because it makes illnesses less severe and saves lives.

CDC officials do not have exact counts of how many people die from flu each year. Flu is so common that not all flu cases are reported, and flu is not always listed on death certificates. So the CDC uses statistical models, which are periodically revised, to make estimates.

Fatal complications from the flu can include pneumonia, stroke and heart attack.

CDC officials called the 80,000 figure preliminary, and it may be revised. But they said it was not expected to go down.

The 80,000 figure eclipsed estimates for every flu season going back to the winter of 1976-77. Estimates for many earlier seasons were not readily available.

Last winter was not the worst flu season on record, however. The 1918 flu pandemic, which lasted nearly two years, killed more than 500,000 Americans, historians estimate.

It’s not easy to compare flu seasons through history, partly because the nation’s population is changing. There are more Americans — and more elderly Americans — today than in decades past, noted Dr. Daniel Jernigan, a CDC flu expert.

How bad will the coming flu season be? So far, the flu that’s been detected is a milder strain, and early signs are that the vaccine is shaping up to be a good match, Jernigan said.

The makeup of the vaccine has been changed this year to try to better protect against expected strains.

“We don’t know what’s going to happen, but we’re seeing more encouraging signs than we were early last year,” Jernigan said. 

Experimental Malaria Vaccines Target Liver Cells

After decades of disappointment in efforts to develop a malaria vaccine, researchers are starting to see promise in a new approach.

While most vaccines trigger the body’s defenses to produce antibodies against a disease-causing germ, the new approach recruits an entirely different branch of the immune system.

If it works, it could open up a new route to attack other diseases, including hepatitis and possibly HIV, the virus that causes AIDS.

Nearly 450,000 people die of malaria each year, according to the World Health Organization. The parasites that cause the disease are increasingly becoming drug-resistant. 

One successful vaccine has been developed so far, but it prevented only about a third of cases in a clinical study.

Experts have decided that’s better than nothing. The vaccine is being piloted in Ghana, Kenya and Malawi.

New angle

Other scientists are trying a different angle of attack.

There are basically two ways to prevent germs from causing infections. “You either prevent them from getting into cells with antibodies, or you kill them inside the cells with T-cells,” said Stephen Hoffman, chief executive officer of Sanaria, a company working on one vaccine.

Most vaccines target the infection by building up antibodies. “If you need to kill them inside the cells with T-cells, we haven’t been overwhelmingly successful,” Hoffman said.

But Sanaria is one group seeing success by targeting malaria parasites inside infected liver cells, the first stop in the complex life cycle of the disease.

One key difference is how the vaccine is delivered. Hoffman’s group tried a typical route: injecting radiation-weakened parasites into patients’ skin or muscle. That didn’t work.

But it did work when injected directly into veins.

The weakened parasites traveled to the liver, where they set off an immune reaction. Defensive cells killed liver cells that were infected with malaria parasites.

And the liver’s defenses were ready when faced with the real thing months later.

Most of that early work has been done in mice and macaques. When Hoffman and colleagues did something similar with a handful of human patients, most were protected against infection.

No waiting

Recruiting immune cells in the liver is especially effective because “we don’t need to wait until the immune system figures out that the parasite is in the liver and starts mounting an immune response, which can take days and sometimes weeks,” said Adrian Hill, director of the Jenner Institute at Oxford University. 

“By then, the malaria’s gone. It only spends a week in the liver, and then it’s out in your blood causing disease.”

Hill’s group just published a study in the journal Science Translational Medicine in which immune cells in the liver were triggered by using a protein from the parasite, rather than the entire organism.

Scientists hope to get a better grasp on the system these vaccines employ, known as cellular immunity. Harnessing this system could help tackle hepatitis and HIV infection.

Drugs can control HIV infection but can’t eliminate it from the body.

“If somebody could get cellular immunity to work really well for vaccination, that would be transformative for a whole range of diseases,” Hill said. “Not just for infectious diseases that we want to prevent, but ones that we want to treat and we can’t treat today.”

US Lawmakers Urged to Enact Personal Data Protections, But With Care

U.S. communications and social media titans are urging lawmakers to craft strong, uniform protections for Americans’ personal data without squashing innovation.

The Senate Commerce Committee heard testimony Wednesday from Apple, Amazon.com, Google, Twitter, and AT&T executives at a time when data breaches are commonplace, many Americans are mystified or unaware of how their personal data may be used or shared, and jurisdictions from the European Union to the state of California have taken action to safeguard consumers.

“Privacy means much more than having the right to not share your personal information. Privacy is about putting the user in control when it comes to that information. We believe that privacy is a fundamental human right, which should be supported by both social norms and the law,” said Apple’s vice president for software technology, Bud Tribble.

“In today’s data-driven world, it is more important than ever to maintain consumers’ trust and give them control over their personal information,” said AT&T’s senior vice president for global public policy, Leonard Cali.

The executives urged lawmakers to implement national standards that would preempt individual states from taking action on their own, as California has done.

“California is a single state, and if other states follow suit, we’ll be facing a patchwork of rules and fragmentation that will be just unworkable for consumers, as well as mobile companies and internet companies,” Cali said.

At the same time, senators were urged to craft legislation with care. Several witnesses described the European Union’s General Data Protection Regulation, implemented earlier this year, as overly burdensome.

“Meeting its [the GDPR’s] specific requirements for the handling, retention, and deletion of personal data required us to divert significant resources to administrative tasks and away from invention on behalf of customers,” Amazon.com Vice President Andrew DeVore said.

DeVore added, “We encourage Congress to ensure that additional overhead and administrative demands any legislation might require, actually produce commensurate consumer privacy benefits.”

Current proposal

Congress already has legislation to consider. Earlier this year, Minnesota Democratic Senator Amy Klobuchar and Louisiana Republican John Kennedy introduced a bill that would require companies to write terms of service agreements in plain language and allow consumers to review data collected about them and find out if and how it has been shared. Other proposals are likely to be forthcoming.

“The question is no longer whether we need a federal law to protect consumers’ privacy,” said the committee’s chairman, Republican Senator John Thune of South Dakota. “The question is what shape that law should take.”

Privacy questions

Several senators readily acknowledged that they did not grow up in the digital age.

“This thing sometimes mystifies me,” Montana Democrat Jon Tester said, holding up his smartphone.  Tester added that he was perplexed to see that, after searching for new tires for his truck, online advertisements for tires appeared on Web pages he subsequently visited.

“How the hell did they get that information?” he asked.

Google Chief Privacy Officer Keith Enright responded the search engine allows Web pages to earn revenue “by placing advertisements that may be targeted to a user’s interests.” But, he stressed, “No personal information is passing from Google to that third party — we neither sell it nor share it.”

Seasonal ‘Plague’ Hits College Freshman

Sometimes, all the hand sanitizer in the world cannot prevent the inevitable.

College freshmen across the country are being introduced to a whole new world of pathogens and other infections at this time of year.

It starts with just one or two people in a dorm hall, said Dr. David Reitman, medical director of the Student Health Center at American University in Washington. They cough without covering the spray of germs that can reach 30 feet, as measured by Massachusetts Institute of Technology researcher Lydia Bourouiba.

Then comes a sore throat and a general feeling of ickiness that lasts a week or so. It spreads slowly but surely, and soon the whole floor of the dorm is a sick ward. Once again, new students have been struck by the freshman plague.

Brendon Gardner, a freshman at Fordham University in New York, had been warned by older siblings and friends about the cesspool of pathogens he was about to enter, but he still wasn’t prepared. 

“I figured, eh, wouldn’t happen to me. But then it did,” said Gardner from his dorm after a week of coughing and a runny nose. “And it was so annoying.”

Not a specific pathogen

The freshman plague, Reitman said, is not one particular disease or pathogen, but “refers to viruses that are easily transmissible by people who are living in close quarters in which they easily pass from one person to another.”

The plague emerges in freshman dorms because of a perfect storm of factors: a large group of people crammed into a relatively small space, often sharing facilities such as showers, kitchens and bathrooms. This makes it easy for viruses to hop from one victim to the next.

The reason these illnesses appear more commonly in freshman dorms than in upperclassman housing is freshman are exactly that — fresh. They are still learning the ropes of dorm living and have not yet mastered the practices and routines that could keep them healthy.

The best way to avoid catching the plague, Reitman said, is to maintain basic hygiene and healthy habits. Wash your hands often, including your wrists. Use a hand sanitizer, especially before eating. This, as well as avoiding behaviors like sharing drinks or food, can improve one’s odds against contracting viruses. And don’t smoke. It inflames the respiratory system, he said.

Less obvious ways of dodging the plague are to drink lots of fluids and maintain regular sleep and eating schedules. That’s easier said than done for college students.

And there’s always the flu vaccine. Although 70 percent of college students in the U.S. say they believe it is important to get a yearly flu shot, only 46 percent say they get vaccinated, according to a National Foundation for Infectious Diseases report in 2017. So, the plague persists.

“I just wanted to stay in bed all day but couldn’t because I have 8:30 classes every morning. And in class, I didn’t want to talk at all because I sounded like a croaking toad,” said Arnav Bhutada, another freshman plague sufferer at Fordham.

Tips for coping

Though freshman plague is not a serious or threatening disease, it can really put a damper on those first months of college. To make it more bearable,  take ibuprofen to help ease sore throats and general achiness, Reitman said. Get lots of fluids and sleep, and maybe swap out that pizza and fries for soup at the dining hall.

If more serious symptoms appear — fever above 102 degrees or diarrhea — or the illness persists beyond a week, students should consider seeking medical attention.

Students who are bedridden should curl up with a nice mug of tea, catch up on Netflix and wait for the body to cleanse itself of the virus so they can go back to making the most of their college experience. 

Report: Ford CEO Warns Tariffs Cut $1 Billion in Profit

Ford chief Jim Hackett on Wednesday ramped up his warnings about the tariffs imposed by President Donald Trump, saying his company was seeing profits slashed by $1 billion.

Hackett said the global automaker could face more damage if the trade confrontations were not resolved quickly.

“The metals tariffs took about $1 billion in profit from us,” Hackett said in an interview on Bloomberg Television. “If it goes on longer, there will be more damage.”

Trump in June imposed steep tariffs on steel and aluminum and has hit $250 billion in Chinese products with tariffs, prompting retaliation from US trading partners and raising costs for many industries.

The company earlier this year estimated materials costs would be $1.5 billion over 2017, which had already seen a jump. 

And in the July earnings report Ford said it lost $500 million in China in the latest quarter due in part to the tariffs.

General Motors likewise warned the current trade wars should cost it $1 billion this year, mainly due to rising input costs.

Ford recently announced it was scrapping plans to import the compact Focus model from Chinese plants into the US market due to the tariffs.

Joseph Hinrichs, Ford’s executive vice president for global operations, said this week the company was speeding up plans to build some models in China since it was becoming less attractive to export amid the trade tensions.

He also said he did not see any easy resolution to the trade dispute between the United States and China. 

Somalia to Get First Direct World Bank Grants in Decades

Somalia’s finance minister says World Bank grants to the government are a sign the country has “trustable leadership” again after decades of chaos and corruption.

The World Bank said Tuesday it will provide $80 million in grants to Somalia’s federal government, the bank’s first direct grants to a Somali central authority in 27 years.

In an interview with VOA’s Somali service, Finance Minister Abdirahman Duale Beileh said the grants are “proof of Somalia’s merit.”

Beileh said $60 million will be used to increase the capacity of Somalia’s financial institutions, and $20 million will go toward education and energy projects to build the country’s resilience.

He said the grants show that international financial agencies have faith the government is capable of fighting against corruption.

“The work we have done and the trustworthiness we have earned brought us here,” he said. 

The World Bank cut ties with Somalia in 1991, following the collapse of the Mohamed Siad Barre government and the start of a long civil war.

Beileh said that in recent years, Somalia’s government has made tangible improvement in management of the economy and its institutions.

However, the latest global index of Transparency International put Somalia as the world’s most corrupt country.

Somali President Mohamed Abdullahi Mohammed, also known as Farmajo, took power last year in an election by parliament that observers said was characterized by bribes and vote-buying.

Beileh acknowledged the government’s fight against corruption is “far from over.”

“There is a perception that Somalia cannot be trusted because of its corruption history. Most of that is not perception,” he said.

He added: “We are proud that we made progress to at least a transparent level that both the World Bank and the IMF can notice.”

Fed Lifts Rates for Third Time in ’18; One More Expected

The Federal Reserve on Wednesday raised a key interest rate for the third time this year in response to a strong U.S. economy and signaled that it expected to maintain a pace of gradual rate hikes.

The Fed lifted its short-term rate — a benchmark for many consumer and business loans — by a quarter-point to a range of 2 percent to 2.25 percent. It was the eighth hike since late 2015.

The central bank stuck with its previous forecast for a fourth rate increase before year’s end and for three more hikes in 2019.

The Fed dropped phrasing it had used for years that characterized its rate policy as “accommodative” by favoring low rates. In dropping that language, the central bank may be signaling its resolve to keep raising rates.

Many analysts think the economy could weaken next year, in part from the effects of the trade conflicts President Donald Trump has pursued with China, Canada, Europe and other trading partners. The tariffs and countertariffs that have been imposed on imports and exports are having the effect of raising prices for some goods and supplies and potentially slowing growth.

Compounding the effects of the tariffs, other factors could slow growth next year. The benefits of tax cuts that took effect this year, along with increased government spending, for example, are widely expected to fade.

Still, some analysts hold to a more optimistic scenario. They think momentum already built up from the government’s economic stimulus will keep strengthening the job market and lowering unemployment — at 3.9 percent, already near a 50-year low. A tight employment market, in this scenario, will accelerate wages and inflation and prod the Fed to keep tightening credit to ensure that the economy doesn’t overheat.

Full-year growth

The U.S. economy, as measured by the gross domestic product, is expected to grow 3 percent for 2018 as a whole. That would mark the strongest full-year gain in 13 years. For the first nine years of the economic expansion, annual GDP growth averaged only around 2.2 percent.

The robust job market has helped make consumers, the main drivers of growth, more confident than they’ve been in nearly 18 years. Business investment is up. Americans are spending freely on cars, clothes and restaurant meals.

All the good news has helped fuel a stock market rally. Household wealth is up, too. It reached a record in the April-June quarter, although the gain is concentrated largely among the most affluent.

Many economists worry, though, that Trump’s combative trade policies could slow the economy. Trump insists that the tariffs he is imposing on Chinese imports, for which Beijing has retaliated, are needed to force China to halt unfair trading practices. But concern is growing that China won’t change its practices, the higher tariffs on U.S. and Chinese goods will become permanent, and both economies — the world’s two largest — will suffer.

Fed Chairman Jerome Powell has so far been circumspect in reflecting on Trump’s trade war. Powell has suggested that while higher tariffs are generally harmful, they could serve a healthy purpose if they eventually force Beijing to liberalize its trade practices.

Stealth Drug Targets Superbug Through Trojan Horse

The Trojan Horse allowed the ancient Greek army to enter the city of Troy and defeat it. A similar strategy could help doctors destroy superbugs that are resistant to current antibiotics.

The decreasing effectiveness of antibiotics is among the most critical challenges facing medicine today, as drug-resistant bacteria resist almost every therapy thrown at them. But researchers at the University of Washington School of Medicine wondered if superbugs could be tricked into taking in a molecule that looks like food but wreaks havoc once inside.

Microbiology professor Pradeep Singh said they focused on iron, which is a critical nutrient for bacteria to multiply and spread. He told VOA that natural binders in the body take up iron, which is also important for our health, and try to keep it from bacteria. But the invaders have mechanisms to get to the bound iron.

“So, we were thinking about an alternative way that didn’t involve iron binding,” he explained. “How could we exploit the really high requirement for iron for infecting bacteria? And that’s how we came up with the idea of using a chemical mimic to exploit the bacteria’s own uptake system to get an antimicrobial drug inside.”

An iron Trojan Horse

The mimic they chose was gallium, a metal similar to iron. And like many successful antibiotics, Singh notes that gallium targets a number of vital functions in the bacteria.

“We know that one of the things it does is it inhibits an enzyme that is involved in producing copies of bacterial cell DNA — that’s really important for making daughter cells. If you can’t replicate your DNA, you can’t multiply. We’ve also shown that gallium can inhibit an enzyme that protects (bacteria) from oxidative stress like hydrogen peroxide. It probably does a bunch of other things, too, so it kind of just causes this kind of haywire in the cell for a bunch of those biological functions of iron.”

In lab studies, bacteria developed resistance to gallium at low rates, and its potency was increased when it was administered with some existing antibiotics. These factors led Singh and his colleague Chris Goss, a professor of medicine and pediatrics, to do preliminary tests of gallium in mice and humans, with exciting results detailed in the current issue of Science Translational Medicine.

A promising strategy against bad bacteria

 

In mice, they found that a single dose of gallum cured lethal lung infections.

The human trial — involving 20 patients with the lung disease cystic fibrosis — provided some tantalizing findings. Goss told VOA the gallium was given by infusion over five days. And while it rapidly cleared from the blood, it moved to the lungs, positively impacting patients’ breathing for up to a month.

“The key measure in cystic fibrosis and many lung diseases is forced expiratory volume, which is, you blow in a tube, and we see how much you can blow. And what we found is actually (forced expiratory volume) increased significantly from baseline in the realm of what we would normally see in an antibiotic-treated population. So, a similar effect as giving inhaled antibiotics or some oral antibiotics. And that was what I think made this an unusual finding, that the proof seemed to be there that you can give this drug intravenously, and it would actually impact lung function.”

More research is needed to confirm gallium’s safety and effectiveness as a treatment, but preliminary results suggest that the strategy that ended the Trojan War might be a winning approach to today’s battle against superbugs.

World Economy Remains on Shaky Ground

The U.N. Conference on Trade and Development warns the world economy remains fragile, one decade after the collapse of the U.S. financial titan Lehman Brothers triggered a global economic crisis.

In its report Trade and Development Report 2018: Power, Platforms and the Free Trade Delusion, UNCTAD says the world economy once again is under stress. It views trade wars and escalating tariffs as symptoms of a growing economic malaise. It warns the world economy is walking a tightrope between debt-fueled growth and financial instability.

Lead author of the report Richard Kozul-Wright says many of the underlying problems that caused the 2008 financial crisis have not been addressed. He says footloose capital, precarious jobs, persistent inequality and rising debt remain problematic.

“We see growing asset bubbles and emerging crises everywhere,” he said. “Profits have been on an all-time high and real investment in the economy has not picked up. What we know from history is that debt-fueled booms always end badly. We do not know how. We do not know when, but if history is any guide the excessive reliance on debt in the current global economy will not end well for many economies.”

Kozul-Wright says trade wars, in many ways, are a reflection of lack of trust across the political system. He blames much of the tensions and problems seen in the global trading system on hyper globalization, which has not resulted in a win-win world.

The report finds global trade continues to be dominated by big firms. It says more than 50 percent of world trade is run through the top one percent of each country’s exporting firms.

 

 

Senate Panel Opens Hearing on Crafting US Privacy Law

The Trump administration is hoping Congress can come up with a new set of national rules governing how companies can use consumers’ data that finds a balance between “privacy and prosperity.”

But it will be tricky to reconcile the concerns of privacy advocates who want people to have more control over the usage of their personal data — where they’ve been, what they view, who their friends are —and the powerful companies that mine it for profit.

Senior executives from AT&T, Amazon, Apple, Google, Twitter and Charter Communications are scheduled to testify at the hearing, amid increasing anxiety over safeguarding consumers’ data online and recent scandals that have stoked outrage among users and politicians.

Sen. John Thune, a South Dakota Republican who heads the Senate Commerce Committee, opened Wednesday’s hearing by saying there’s a strong desire by both Republicans and Democrats for a new data privacy law.

But the approach being pondered by policymakers and pushed by the internet industry leans toward a relatively light government touch. That’s in contrast to stricter EU rules that took effect in May.

An early move in President Donald Trump’s tenure set the tone on data privacy. He signed a bill into law in April 2017 that allows internet providers to sell information about their customers’ browsing habits. The legislation scrapped Obama-era online privacy rules aimed at giving consumers more control over how broadband companies like AT&T, Comcast and Verizon share that information.

Allie Bohm, policy counsel at the consumer group Public Knowledge, says examples abound of companies not only using the data to market products but also to profile consumers and restrict who sees their offerings: African Americans not getting access to ads for housing, minorities and older people excluded from seeing job postings.

The companies “aren’t going to tell that story” to the Senate panel, she said. “These companies make their money off consumer data.”

What is needed, privacy advocates maintain, is legislation to govern the entire “life cycle” of consumers’ data: how it’s collected, used, kept, shared and sold.

Meanwhile, regulators elsewhere have started to act.

The 28-nation European Union put in strict new rules this spring that require companies to justify why they’re collecting and using personal data gleaned from phones, apps and visited websites. Companies also must give EU users the ability to access and delete data, and to object to data use under one of the claimed reasons.

A similar law in California will compel companies to tell customers upon request what personal data they’ve collected, why it was collected and what types of third parties have received it. Companies will be able to offer discounts to customers who allow their data to be sold and to charge those who opt out a reasonable amount, based on how much the company makes selling the information.

Andrew DeVore, Amazon’s vice president and associate general counsel, told the Senate panel Wednesday that it should consider the “possible unintended consequences” of California’s approach. For instance, he says the state law defines personal information too broadly such that it could include all data.

The California law doesn’t take effect until 2020 and applies only to California consumers, but it could have fallout effects on other states. And it’s strong enough to have rattled Big Tech, which is seeking a federal data-privacy law that would be more lenient toward the industry.

“A national privacy framework should be consistent throughout all states, pre-empting state consumer-privacy and data security laws,” the Internet Association said in a recent statement . The group represents about 40 big internet and tech companies, spanning Airbnb and Amazon to Zillow. “A strong national baseline creates clear rules for companies.”

The Trump White House said this summer that the administration is working on it, meeting with companies and other interested parties. Thune’s pronouncement and one from a White House official stress that a balance should be struck in any new legislation — between government supervision and technological advancement.

The goal is a policy “that is the appropriate balance between privacy and prosperity,” White House spokeswoman Lindsay Walters said. “We look forward to working with Congress on a legislative solution.”

 

Asian Lender Says Trade Wars, Debt Adding to Financial Risks

Trade conflicts, rising debt and the potential impact from rising interest rates in the U.S. will likely dampen growth in the coming year, the Asian Development Bank said Wednesday in an update of its regional economic outlook report. 

The Manila, Philippines-based regional lender said Wednesday that it expects economic growth to remain at a robust 6.0 percent in 2018 but to slip to 5.8 percent next year. 

It cited looming financial and trade shocks as the biggest sources of potential trouble. If the U.S. economy shows signs of overheating, interest rate hikes by the Federal Reserve could disrupt currency markets and other capital flows, leading to problems with bad loans. 

Overly high housing prices also are risks for China, Hong Kong, Malaysia and South Korea, it said. 

But it said the bigger threat comes from potential damage to supply chains caused by trade conflicts, especially between the U.S. and China. 

President Donald Trump pushed ahead Monday with higher tariffs on $200 billion of Chinese imports.

In a conflict stemming from U.S. complaints Beijing steals or pressures foreign companies to hand over technology, Trump went ahead Monday with a tax hike on $200 billion of Chinese imports. Beijing retaliated by imposing penalties on $60 billion of U.S. goods.

That move will likely shave 0.5 percentage points off of China’s growth and 0.1 percentage points off of growth in the U.S., the report said. 

It said further expansion would cause still more pain across the region, though while the U.S. trade deficit with China might shrink, the deficit with Asia overall would not decline so much because other countries would likely exporting more to make up the difference. 

China and the United States had earlier imposed 25 percent tariffs on $50 billion of each other’s goods. Combined, the tariffs now cover nearly half the goods and services China sells America and nearly 60 percent of what the United States sells China. 

“Prolonged trade conflict can damage confidence and deter investment,” the ADB report said. It said the impact would be large both regional and globally, especially if it expands to include autos and auto trade. 

“Estimates of impacts do not fully capture possible disruption to production units as overseas business networks are severed and investment plans are cancelled amid a reallocation of global production,” it said.

Brazil’s Jobs Crisis Lingers, Posing Challenge for Next President

After losing his job with a foreign food company in March, Alexander Costa surveyed Brazil’s anemic labor market and decided to start selling cheap lunches by the beach in Rio de Janeiro to try and provide for his young family.

“I could have stayed home, looking for work, sending out resumes, with few jobs and things very hard,” Costa said. “But I didn’t stand still. I decided to create something different … to reinvent myself.”

Many other Brazilians have also had to reinvent themselves in recent years, as Latin America’s largest economy struggles to overcome a jobs crisis more than a year after officially exiting recession.

Nearly 13 million people – or more than the entire population of Greece – are out of a job, with the unemployment rate hovering between 12 percent to 14 percent since 2016. As a result, unemployment is among voters’ top concerns ahead of next month’s election.

The desperate search for work amid a string of political graft scandals and rising violence has soured the mood, polarizing debate and distracting from the country’s underlying fiscal challenges.

But only by lowering the unemployment rate will Brazil achieve the rise in household spending it needs to maintain sustained growth, said Marcos Casarin, the head of Latin America macro research at Oxford Economics.

“The only way to have a prolonged recovery in economic activity is if unemployment starts to fall in a substantial way,” he said.

However, it could take several years to get the rate below 10 percent, he said, adding: “I’m not very optimistic.”

Divisive Figures

With no presidential candidate likely to win a majority in the first-round vote on Oct. 7, it looks increasingly likely voters will face a choice between two candidates in the Oct. 28 run-off: far-right Jair Bolsonaro and leftist Fernando Haddad of the Workers Party.

Both are divisive figures — rejected by nearly half the electorate — making it likely that either one will face an uphill battle to pass ambitious economic reforms that foreign investors have long called for.

Bolsonaro has vowed to erase Brazil’s primary budget deficit by 2020 through controversial privatizations and spending cuts.

Haddad has proposed broadening the central bank’s mandate to include unemployment, while boosting government-led investments, revoking a spending ceiling and scuttling privatizations.

Both Bolsonaro and Haddad are pitching their proposals as ways to tackle the unemployment crisis, which has pushed many into the informal sector, sapping tax income and leaving workers without paid holidays, salary raises and other benefits.

Outgoing President Michel Temer last year passed an overhaul of the country’s labor laws, which was intended to make the job market more flexible and which the government said would help create new jobs, an effect that as yet has failed to materialize.

Bolsonaro supports Temer’s labor reform and wants to further cut work regulations to boost jobs. Haddad has suggested putting the labor reform, which was opposed by unions, to a referendum, while also advocating a short-term stimulus program.

Costa, however, was unwilling to wait and see what Brazil’s next president comes up with.

His meals-on-wheels business started slowly, selling 13-reais ($3) lunches from the back of his car in Rio’s wealthy Barra da Tijuca neighborhood. But business took off when he joined forces with his friend, Stefan Weiss, whose white BMW provides a ritzier shop window from which they now sell roughly 200 hot meals each day.

“At the moment, Brazil faces a big problem in relation to the economy and the lack of jobs,” said Weiss, who works on an offshore oil platform but sells meals on days off to earn extra cash. “The people who lost their jobs are trying to find new ways to establish themselves in the market.”

Into the Fold? What’s Next for Instagram as Founders Leave

When Kevin Systrom and Mike Krieger sold Instagram to Facebook in 2012, the photo-sharing startup’s fiercely loyal fans worried about what would happen to their beloved app under the social media giant’s wings. 

None of their worst fears materialized. But now that its founders have announced they are leaving in a swirl of well wishes and vague explanations, some of the same worries are bubbling up again — and then some. Will Instagram disappear? Get cluttered with ads and status updates? Suck up personal data for advertising the way its parent does? Lose its cool? 

Worst of all: Will it just become another Facebook?

“It”s probably a bigger challenge (for Facebook) than most people realize,” said Omar Akhtar, an analyst at the technology research firm Altimeter. “Instagram is the only platform that is growing. And a lot of people didn’t necessarily make the connection between Instagram and Facebook.”

Instagram had just 31 million users when Facebook snapped it up for $1 billion; now it has a billion. It had no ads back then; it now features both display and video ads, although they’re still restrained compared to Facebook. But that could quickly change. Facebook’s growth has started to slow, and Wall Street has been pushing the company to find new ways to increase revenue.

Instagram has been a primary focus of those efforts.

Facebook has been elevating Instagram’s profile in its financial discussions. In July, it unveiled a new metric for analysts, touting that 2.5 billion people use at least one of its apps — Facebook, Instagram, WhatsApp or Messenger — each month. While not particularly revealing, the measurement underscores the growing importance Facebook places on those secondary apps. 

Facebook doesn’t disclose how much money Instagram pulls in, though Wedbush analyst Michael Pachter estimates it’ll be around $6 billion this year, or just over 10 percent of Facebook’s expected overall revenue of about $55.7 billion. 

Facebook CEO Mark Zuckerberg has long seen Instagram’s promise. At the time, it was by far Facebook’s largest acquisition (although it was dwarfed by the $19 billion Zuckerberg paid for WhatsApp two years later). And it was the first startup allowed to operate mostly independently. 

That has paid off big time. Not only did Instagram reach 1 billion users faster than its parent company, it also succeeded in cloning a popular Snapchat feature, dealing a serious blow to that social network upstart and succeeding where Facebook’s own attempts had repeatedly failed. Instagram also pioneered a long-form video feature to challenge YouTube, another big Facebook rival.

Recently, Instagram has been on a roll. In June, Systrom traveled to New York to mark the opening of its new office there, complete with a gelato bar and plans to hire hundreds of engineers. Only a month earlier, Instagram had moved into sparkly new offices in San Francisco. In a July earnings call, Zuckerberg touted Instagram’s success as a function of its integration with Facebook, claiming that it used parent-company infrastructure to grow “more than twice as quickly as it would have on its own.”

But Instagram has also been a case study in how to run a subsidiary independently — especially when its parent is mired in user-privacy problems and concerns about election interference, fake news and misinformation. And especially when its parent has long stopped being cool, what with everyone and their grandma now on it.

Instagram’s simple design — just a collection of photos and videos of sunsets, faraway vacations, intimate breakfasts and baby close-ups — has allowed it to remain a favorite long after it became part of Facebook. If people go to Twitter to bicker over current events and to Facebook to see what old classmates are up to, Instagram is where they go to relax, scroll and feast their eyes.

So, will that change?

“I don’t think Zuckerberg is dumb,” Akhtar said. “He knows that a large part of Instagram’s popularity is that it’s separate from Facebook.”

As such, he thinks Facebook would be wise to reassure users that what they love about Instagram isn’t going to change — that they are not going to be forced to integrate with Facebook. “That’ll go a long way,” he said. 

Internally, the challenge is a bit more complicated. While Systrom and Krieger didn’t say why they’re leaving, their decision echoes the recent departure of WhatsApp’s co-founder and CEO Jan Koum, who resigned in April. Koum had signaled years earlier that he would take a stand if Facebook’s push to increase profits risked compromising core elements of the WhatsApp messaging service, such as its dedication to user privacy. When Facebook started pushing harder for more revenue and more integration with WhatsApp, Koum pulled the ripcord.

One sign that additional integration may be in Instagram’s future: Zuckerberg in May sent longtime Facebook executive Adam Mosseri to run Instagram’s product operation. Mosseri replaced longtime Instagrammer Kevin Weil, who was shuffled back to the Facebook mothership. 

That likely didn’t sit well with Instagram’s founders, Akhtar and other analysts said. Now that they’re gone as well, Mosseri is the most obvious candidate to head Instagram. 

“Kevin Systrom loyalists are probably going to leave,” Akhtar said. 

Which means Facebook may soon have a new challenge on its hands: Figuring out how to keep Instagram growing if it loses the coolness factor that has bolstered it for so long.

GSK Vaccine Success a Milestone in TB, But Room for Improvement

An experimental GlaxoSmithKline vaccine could prevent tuberculosis developing in half of those who receive it, making it potentially the first new shot against the global killer in a century, researchers said on Tuesday.

Given the failure of other candidates in recent years, it marks a milestone in the fight against TB, although the 54 percent efficacy rate achieved in adults in a mid-stage clinical trial is low compared to immunizations for other diseases.

The current vaccine called Bacille Calmette-Guérin (BCG) was developed in 1921 and is given routinely to babies in countries with high rates of TB to prevent severe disease.

However, BCG protection wears off in just a few years and it does nothing to protect against the most common form of TB that invades the lungs of adults and adolescents, and can be transmitted through coughing and sneezing.

A more effective vaccine is viewed by experts as key to controlling TB and fighting the growing scourge of drug-resistant infection. With TB a major focus for global health, the United Nations is holding its first ever high-level meeting on the disease in New York on Wednesday.

GSK’s vaccine is designed to stop latent TB from becoming active and causing sickness. An estimated 1.7 billion people – one quarter of the global population – have latent TB infection, putting them at risk of a disease that killed 1.6 million people last year.

Results of an ongoing Phase IIb trial of the vaccine – known as M72/AS01 and developed by GSK in conjunction with Aeras, a nonprofit TB group backed by the Bill & Melinda Gates Foundation – were published online by the New England Journal of Medicine.

After a mean follow-up of 2.3 years, 10 of the 1,786 adults vaccinated twice developed active pulmonary TB compared with 22 of the 1,787 given two placebo injections. The study was conducted in Kenya, Zambia and South Africa.

The vaccine did produce more side effects than placebo, with two-thirds of participants reporting at least one adverse event, typically injection-site reactions or flu-like symptoms.

Most of the volunteers had received the BCG vaccine and all were HIV negative. People with HIV are more vulnerable to TB because their immune systems are weakened.

Areas Chief Executive Jacqui Shea said the results were “ground-breaking” and showed that more effective TB vaccines were achievable.

GSK is confident it can do better in future, with larger trials set to refine the vaccine’s dosing schedule and potentially target specific groups of patients who are most likely to benefit.

“It’s the first time we really tested the biological potential of our vaccine and we think that there is a lot of additional improvement now that we can bring,” the company’s head of vaccines research, Emmanuel Hanon, told Reuters.

TB is a particularly tricky disease to vaccinate against because the bacteria that cause it can hide from the body’s immune system and scientists lack protective markers in the blood to predict whether a vaccine will work.

As a result, TB vaccines must be tested in big clinical trials, a large and costly gamble.

Mike Turner, head of infection and immunobiology at the Wellcome Trust medial charity, said the encouraging results represented a “landmark moment” and M72/AS01 now needed to be tested in much larger numbers of people.

Number of Babies Born With Syphilis in US Doubles in Four Years 

The number of babies born infected with syphilis in the United States has more than doubled since 2013, according to the U.S. Centers for Disease Control and Prevention.

In a report released Tuesday, the CDC said the number of cases of congenital syphilis, in which the disease is passed from the mother to the baby, increased 153 percent — from 362 in 2013 to 918 in 2017.

“When a baby gets syphilis, it means the system has failed that mother repeatedly, both before and during her pregnancy,” said David Harvey, executive director of the National Coalition of STD Directors.

“If STD prevention programs had anywhere near the support they need, no new mom would ever have to cope with this devastating diagnosis,” he said.

Syphilis is easily treatable with antibiotics. But when untreated in the mother, it increases the risk of miscarriage and newborn death. Children born with the disease can suffer severe health consequences, including deformed bones, blindness or deafness.

About 70 percent of the cases of congenital syphilis in the U.S. over the span studied were found in California, Florida, Louisiana, New Mexico and Texas. 

Harvey said women should be tested before becoming pregnant, soon after becoming pregnant, and throughout the pregnancy. 

One-third of the mothers who gave birth to babies with congenital syphilis had been tested. But the tests were performed too late in their pregnancies to prevent the infection of the fetuses, or the women became infected after being tested. 

“That we have any cases of syphilis among newborns, let alone an increasing number, is a failure of the health care system,” Harvey said. 

Congenital syphilis is only a part of the nation’s growing STD crisis. According to the CDC, the three most easily treatable sexually transmitted diseases — chlamydia, gonorrhea and syphilis — rose nearly 10 percent in 2017 to an all-time high of nearly 2.3 million cases. That eclipsed the previous record total from 2016 by more than 200,000 cases.

A Swipe is Not Enough: Tinder Tests Extra Control for Women

The Indian edition of dating app Tinder is testing a new feature which gives women an additional level of scrutiny before they allow men to start messaging conversations, with a view to rolling the function out globally.

The “My Move” feature allows women to choose in their settings that only they can start a conversation with a male match after both have approved each other with Tinder’s swiping function.

Normally, the app gives both parties to a successful match – where both have swiped yes on the other’s photograph – the right to text each other immediately.

Tinder has been testing the function for several months and plans to spread it worldwide if the Indian rollout proves successful. Rival dating-app Bumble already only allows the female party to a heterosexual match to start conversations.

Dating is still frowned upon in many circles in India’s religiously- and ethnically-divided society, where arranged marriages are still the norm.

Taru Kapoor, general manager for Tinder owner Match Group in India, told Reuters the function had been pioneered in India because of Tinder’s need to attract more women to the app by making them feel more comfortable and secure.

“We’re a platform based on mutual respect, consent, and choice,” she said. “We are focused on making the experience of women safer.”

Thousands of reports of sexual violence and rape in India each year have raised concerns around the safety of women in many parts of the country.

Yet an emerging class of young, well-to-do Indians in cosmopolitan cities like Bengaluru and Mumbai have made the country Tinder’s largest market in Asia. The company also says India is its “chattiest” market globally, with users using the in-app messaging feature more than any other country.

Tinder has generally had few ad campaigns and its few glossy productions in India have tended to focus on the female experience on the app – a reflection of the predominance of men on the Indian version.

The app, which has an average 3.8 million users globally had the highest number of monthly active users on Android phones in India last month in the Lifestyle category, according to market data and analytics firm, App Annie.

The app is also the third highest earner by revenue across all categories when Google Play & iOS revenues are combined.

“I know the kind of creeps out there on Tinder and other dating apps,” said one of a dozen male users Reuters talked to on Tuesday.

“One extra layer of security doesn’t do much harm to men apart from slimming their chances of striking up a conversation.”

Several female users interviewed by Reuters remained skeptical about the usefulness of the feature and said the change in settings would not do much to change their experience.

“Even after carefully picking someone, if they turn out to be nothing like you imagined, there is always an unmatch option,” said one 25-year-old Bengaluru resident who met her boyfriend through Tinder.

Sudan Reports Outbreak of Mosquito-borne Disease

More than 11,000 people in Sudan’s eastern state of Kassala have been infected over the past month by Chikungunya, a debilitating mosquito-borne viral disease, but no deaths have been reported, a Sudanese official said Tuesday.

Chikungunya is spread by two mosquito species and can cause severe symptoms, which develop three to seven days after a person is bitten by an infected mosquito. They include high fever, headache, muscle pain, back pain and rash. In rare cases, it is fatal. There are no dedicated treatments or vaccines for Chikungunya.

“So far official statistics say that about 11,000 people were infected, and there haven’t been any documented cases of death because of the Chikungunya fever,” said Magzoub Abou Moussa, a spokesman for the Kassala state administration.

Heavy rains

The outbreak began in recent weeks when heavy rains pummeled the area, which led to the flooding of a major river in Kassala.

Abou Moussa said his state had received health and technical aid from Sudan’s health ministry, but expressed concern over the spread of the virus and called for further help.

Eyewitnesses said they had seen planes on Monday sweeping over the state, spraying mosquito pesticides.

Sudanese opposition parties have accused the government of failing to deal with the situation in Kassala and called for international organizations’ help.

“We hold the government fully responsible for the spread of the epidemic,” said a statement from the National Umma Party, the largest opposition party. “We call on civil society organizations and the World Health Organization to help the people of Kassala.”

Activists on social media said the number of people infected by the disease was much higher than the government’s figure and that there had been deaths not documented by the government.