Federal Trade Commission Confirms Facebook Probe

The U.S. Federal Trade Commission said Monday it is investigating the privacy controls of social media giant Facebook in the aftermath of reports that the personal data of tens of millions of Facebook users was compromised by the British voter profiling firm Cambridge Analytica.

The consumer agency’s announcement sent Facebook’s stock price down another 2 percent, after a 14 percent plunge last week cut the company’s market value by $90 billion.

The FTC normally does not announce its investigations, but confirmed the probe after numerous news accounts last week said it had been opened.

Acting consumer protection chief Tom Pahl said the FTC “is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises,” including adherence to a joint U.S.-European privacy accord, “or that engage in unfair acts that cause substantial injury to consumers in violation” of U.S. consumer protections.

Facebook’s privacy practices are being questioned on both sides of the Atlantic after revelations that Cambridge Analytica got the cache of information about Facebook users from British researcher Alexsandr Kogan, who had been authorized by Facebook to collect the data as part of an academic study.

Kogan developed an app on which 270,000 Facebook users supplied information about themselves. In all, because of extensive links of friends and associates to the 270,000 Facebook users, 50 million Facebook users may have had their personal data compromised.

Britain has opened an investigation of Cambridge Analytica and seized data from its London headquarters.

German Justice Minister Katarina Barley met Monday with Facebook officials, later calling for stricter regulation and tougher penalties for companies like Facebook.

“Facebook admitted abuses and excesses in the past and gave assurances that measures since taken mean they can’t happen again,” she said. “But promises aren’t enough. In the future we will have to regulate companies like Facebook much more strictly.”

Facebook said Monday it remains “strongly committed” to protecting people’s information and would answer the FTC’s questions.

Facebook chief Mark Zuckerberg on Sunday apologized to Facebook users in full-page ads in nine British and U.S. for the massive “breach of trust” by the company.

Zuckerberg did not mention Cambridge Analytica, which was paid $6 million by U.S. President Donald Trump’s successful 2016 presidential campaign for the White House to develop voter profiles.

Zuckerberg said in the ads, “This was a breach of trust, and I’m sorry we didn’t do more at the time” when Kogan passed on the Facebook data to Cambridge Analytica.”We’re now taking steps to make sure this doesn’t happen again.”

“We have a responsibility to protect your information,” Zuckerberg said. “If we can’t, we don’t deserve it.”

Kenya to Import 100 Doctors from Cuba

Kenya has agreed to accelerate a health agreement it signed with Cuba last year and bring 100 doctors from the country to fill gaps in Kenyan hospitals.  Fifty Kenyan doctors will also be sent to Cuba for specialized training.  

The Kenyan government says the deal to import Cuban doctors would help counter gaps in Kenya’s medical facilities.

Kenya Cabinet Secretary for Health Sicily Kariuki explains.

“The target is to bring 100 specialized doctors from Cuba.  One is because of the  HR resource gap that we have,” said Kariuki. “We are careful not to crowd the place with general doctors and therefore the aim of my ministry is to bring forward critical care physicians at that level – family physicians, physicists, oncologists and surgeons dealing with plastic reconstructive surgery, dealing with orthopedic surgery and dealing with neurosurgery.

Each Kenyan county is expected to get at least two of the specialist doctors.

But Kenya Medical Practitioners, Pharmacists, and Dentists Union chairman Samuel Oroko says the move will not address the systemic dysfunction in Kenya’s health system.

“There are no drugs, theaters are not functioning, laboratories are not functioning, so even if they come and the systems are not functioning, they are coming just to be idle and they may not get equipment to use to train our own,” said Oroko. “So we need to look at all angles of our health system, not just bringing them because of bringing, but to ensure the system is functional so that they can operate.”

The agreement will also see Kenya work with Cuba on collaborative research projects, training for healthcare workers, and collaborations in fields such as genetic engineering and biotech work.

Former Kenyan Minister of Medical Services, Professor Anyang Nyongo, visited Cuba and says Kenya will benefit from the agreement.

“As health minister I came here and we were trying to work things together and I actually proposed some things that we needed to do, for example malaria vector control, collaborating with teaching, engineering, and a biotechmology center, but unfortunately we did not get far,” said Nyongo. “What gives me satisfaction this time is that the president is determined we implement these long standing proposals of collaboration between us and Cuba.

Oroko says the medical union is not against any collaboration or partnership with other governments.

“Our appeal and advice is that as we consider bringing expertise from other countries, we need to exhaust what we have locally,” said Oroko. “And if we lack capacity locally we should focus on training our own so that they can be able to manage the patients in Kenya.”

The union says more than 1,200 Kenyan doctors have been unemployed since May 2017.

“Equally we do have a number of doctors who have qualified, both general practitioners and specialists, who have not been employed and they are Kenyans,” said Oroko.

Kariuki says there are plans to absorb the graduate doctors into the healthcare system, but she says Kenya would still not be able to meet the recommended doctor to patient ratio.

Oroko says about 4,300 doctors work in the public sector for Kenya’s 38.6 million people.

“There is the required number of doctors we are supposed to have per facility, and it is public knowledge, the WHO requires that we have one doctor per 1,000 patients in any given population, currently in Kenya we have one doctor per 24,000 patients,” said Oroko. “… Where are they going to get the money to employ the ones coming from Cuba?”

The union blocked attempts by the government to bring in doctors from Tanzania at the height of its three month strike last year.  The agreement ending the strike called for pay increases and medical rick allowances. 

 

Row Over Data Mining Firm Cambridge Analytica Reverberates in India

The controversy over the British-based data mining company, Cambridge Analytica, which faces allegations of using the personal data of millions of Facebook followers to influence the U.S. election, is reverberating in India, which is due to hold national elections next year.

The website of the Indian affiliate of Cambridge Analytica, Ovleno Business Intelligence (OBI), has been taken down amid a dispute between the country’s two major political parties over using its services.

Both the ruling Bharatiya Janata Party (BJP) and the main opposition Congress Party have denied doing so. However Ovleno’s site had listed the BJP, the Congress and a regional party known as the Janata Dal (United) among its clients.

India’s Information Technology Minister, Ravi Shankar Prasad, last week warned of tough action against social media giants if the data of Indians was misused.

He said India supports freedom of speech, expression and exchange of ideas on social media, “but any attempt, covert or overt, by the social media, including Facebook, of trying to influence India’s electoral process through undesirable means will neither be appreciated nor be tolerated.”

He said that in the wake of recent data theft from Facebook, the stern warning should be heard “across the Atlantic, far away in California.”

Minister Prasad asked Congress Party leader Rahul Gandhi, to “explain” the role of Cambridge Analytica in his social media outreach and whether the party had engaged in data trade with the firm.

Congress Party spokesman Randeep Sujrewala called the accusation a “fake agenda and a white lie.” He said it was the BJP that had used the company’s services.

Gandhi is expected to be the main opponent to Prime Minister Narendra Modi in 2019. Although Modi’s BJP won a sweeping victory in 2014, many analysts expect next year’s elections to be a much tighter race.

Domestic media reports have said that Cambridge Analytica and its India partner have been in talks with both the Congress and the BJP for a possible collaboration for their 2019 Lok Sabha election campaigns.

On its website, the Indian affiliate of Cambridge Analytica had said it offered services such as “political campaign management,” which includes social media strategy, election campaign management and mobile media management.

Internet experts say India is extremely vulnerable to the misuse of personal data during elections.  

“It’s become a source of micro-targeting. At scale when you can dissect this data and customize messages to individual people to prey on their fears, that kind of campaign is always possible,” said Nikhil Pahwa, a digital rights activist and founder of digital news portal MediaNama.

“The problem is not with one entity [such as Cambridge Analytica] but a system which allows it,” Pahwa said, pointing out that there is too much data floating around.

In an interview with CNN, Facebook CEO Mark Zuckerberg has said Facebook was committed to stopping interference in the U.S. midterm election in November and elections in India and Brazil.

Trade War Fears Affect Asian Shares

World markets edged higher but remained jittery Monday, a result of a feared trade war between two economic powerhouses — the U.S. and China, following U.S. President Donald Trump’s announcement last week of stiff tariffs on imported Chinese steel and aluminum.

However, Chinese Foreign Ministry spokesperson Hua Chunying said Monday that China would be willing to meet with U.S. officials to work out the two countries’ trade issues. while China’s foreign ministry urged the U.S. to “stop economic intimidation” over tariffs.

Monday the Wall Street Journal reported that the U.S. asked China in a letter last week to cut the tariff on U.S. autos, buy more U.S.-made semiconductors and give U.S. firms greater access to the Chinese financial sector.

The Journal also reported U.S. Treasury Secretary Steven Mnuchin may travel to Beijing to negotiate a deal with China.  

The U.S. has accused China of unfair trade practices, including intellectual property theft and dumping Chinese goods on the global marketplace to make U.S. goods appear more expensive.

China has denied the U.S. charges, and Vice Premier Liu He told Treasury Secretary  Mnuchin in a telephone call Saturday that China is ready to defend its interests.

Meanwhile South Korea announced Monday that it has won an exemption from the stiff steel tariffs as it negotiates its trade differences with the U.S.

A senior Chinese official warned Sunday that a trade war would hurt all sides and set off a “greater conflict.”

“A trade war serves the interests of none. It will only lead to serious consequences and negative impact,” Vice Premier Han Zheng said at a development forum in Beijing. “We believe trade protectionism, against the trend, will lead to nowhere.”

Han did not mention the United States or President Donald Trump by name, whose announcement of stiff tariffs on imported Chinese steel and aluminum was answered with tariffs and duties on a list of U.S. imports.

Han appealed to all global trading partners to “cooperate with each other like passengers in the same boat… make economic globalization more open, inclusive, balanced and beneficial for all.”

 

US Gunmaker Remington Files for Bankruptcy

U.S. firearms and ammunition manufacturer Remington has filed for bankruptcy protection in order to reorganize its operations and put in place a debt reduction deal with its creditors.

The company filed its petition for the so-called Chapter 11 bankruptcy Sunday, six weeks after announcing an agreement to reduce its $950 million in debts while transferring ownership.

Remington’s filing listed both its debts and assets between $500 million and $1 billion.

The company is one of the largest firearms makers in the United States and has been in business for 200 years.

But its sales have been slumping, dropping from $865 million in 2016 to $602 million last year. In 2013, it reported more than $1.2 billion in total sales. 

A February document describing the restructuring plan estimated sales will rebound in the coming years, returning to more than $800 million by 2021.

A company report released in October of last year said the decline was due to a number of factors, including “reduced consumer demand and excess inventories,” as well as changes in buying behaviors and a rise in imported products.

It also discussed various government proposals to increase gun regulations, warning that if they were to become law “the cost to the company and its customers could be significant.”

That report, and Remington’s restructuring plan, came before the most recent mass shooting in the United States, a February attack at a Florida high school that left 17 people dead. 

Since that shooting, there has been an increase in calls for more gun control. Several major retailers have instituted changes in gun sales policies that range from stopping gun sales to raising the minimum age of those eligible to purchase firearms. 

Banking giant Citigroup also announced it would require new retail clients to insist on background checks for gun purchases as well as a ban on sales to people under the age of 21. The state of Florida similarly enacted a new law limiting gun purchases to those age 21 and older.

Many Americans believe current gun laws are appropriate or too strict, while a new poll indicates growing support for stricter measures.

The poll by the The Associated Press and NORC Center for Public Affairs Research released Friday said 69 percent of Americans support stricter gun control, up from 61 percent in October 16 and 55 percent when the poll first asked the question in October 2013.

Unlocking Secrets of Extinct Canine-Looking Tiger

The exotic Tasmanian tiger once roamed Australia and New Guinea. It looked like a cross between a tiger and a dog, and is believed to have become extinct in the wild in the 20th century. The last one died in a zoo in the 1930’s. Using preserved Tasmanian tigers, Australian scientists did 3D scans of the animal, which they hope will explain why it evolved to look so much like a canine. VOA’s Deborah Block has more.

Facebook Questioned About Pulling Android Call, Text Data

On the same day Facebook bought ads in U.S. and British newspapers to apologize for the Cambridge Analytica scandal, the social media site faced new questions about collecting phone numbers and text messages from Android devices.

The website Ars Technica reported that users who checked data gathered by Facebook on them found that it had years of contact names, telephone numbers, call lengths and text messages.

Facebook said Sunday the information is uploaded to secure servers and comes only from Android users who opt-in to allow it. Spokeswomen say the data is not sold or shared with users’ friends or outside apps. They say the data is used “to improve people’s experience across Facebook” by helping to connect with others.

The company also says in a website posting that it does not collect the content of text messages or calls. A spokeswoman told the Associated Press that Facebook uses the information to rank contacts in Messenger so they are easier to find, and to suggest people to call.

Users get the option to allow data collection when they sign up for Messenger or Facebook Lite, the Facebook posting said. “If you chose to turn this feature on, we will begin to continuously log this information,” the posting said.

The data collection can be turned off in a user’s settings, and all previously collected call and text history shared on the app will be deleted, Facebook said.

The feature was first introduced on Facebook Messenger in 2015 and added later on Facebook Lite.

Messages were left Sunday seeking comment about security from Google officials, who make the Android operating system.

Reports of the data collection came as Facebook CEO Mark Zuckerberg took out ads in multiple U.S. and British Sunday newspapers to apologize for the Cambridge Analytica scandal.

The ads say the social media platform doesn’t deserve to hold personal information if it can’t protect it.

According to the ads, a quiz app built by a Cambridge University researcher leaked Facebook data of millions of people four years ago. Zuckerberg said this was a “breach of trust” and that Facebook is taking steps to make sure it doesn’t happen again.

Facebook’s privacy practices have come under fire after Cambridge Analytica, a Trump-affiliated political consulting firm, got data inappropriately. The social media platform’s stock value has dropped over $70 billion since the revelations were first published.

Among the newspapers with the ads were The New York Times and The Washington Post in the U.S., and The Sunday Times and The Sunday Telegraph in the United Kingdom.

The ads said Facebook is limiting the data apps received when users sign in. It’s also investigating every app that had access to large amounts of data. “We expect there are others. And when we find them, we will ban them and tell everyone affected,” the ads stated.

Cambridge Analytica got the data from a researcher who paid 270,000 Facebook users to complete a psychological profile quiz back in 2014. But the quiz gathered information on their friends as well, bringing the total number of people affected to about 50 million.

The Trump campaign paid the firm $6 million during the 2016 election, although it has since distanced itself from Cambridge.

China Warns Trade War Will Set off a ‘Greater Conflict’

A senior Chinese official is warning that a trade war would hurt all sides and set off a “greater conflict.”

“A trade war serves the interests of none. It will only lead to serious consequences and negative impact,” Vice Premier Han Zheng said at a development forum in Beijing Sunday. “We believe trade protectionism, against the trend, will lead to nowhere.”

Han did not mention the United States or President Donald Trump by name, whose announcement of stiff tariffs on imported Chinese steel and aluminum was answered with tariffs and duties on a list of U.S. imports.

Han appealed to all global trading partners to “cooperate with each other like passengers in the same boat … make economic globalization more open, inclusive, balanced and beneficial for all.”

Fears of a trade war between the world’s two largest economies have sent world markets tumbling.

The United States has accused China of unfair trade practices, including intellectual property theft and dumping Chinese goods on the global marketplace to make U.S. goods appear more expensive.

China has denied the U.S. charges, and Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin in a telephone call Saturday that China is ready to defend its interests.

Facebook’s Zuckerberg Apologizes for ‘Breach of Trust’ in Disclosure of Users’ Data

Facebook co-founder and chief executive officer Mark Zuckerberg apologized Sunday in full-page ads in nine major British and U.S. newspapers for the massive “breach of trust” at the social media giant that revealed personal information of millions of Facebook users.

Zuckerberg did not mention the British firm accused of using the data, the voter profiling company Cambridge Analytica that obtained the cache of information from British researcher Alexsandr Kogan, who had been authorized by Facebook to collect the data as part of an academic study.

Cambridge Analytica was paid $6 million by President Donald Trump’s successful 2016 presidential campaign for the White House to develop voter profiles.

Zuckerberg said in the ads, “This was a breach of trust, and I’m sorry we didn’t do more at the time” when Kogan developed an app on which 270,000 Facebook users supplied information about themselves. “We’re now taking steps to make sure this doesn’t happen again.”

In all, because of extensive links of friends and associates to the 270,000 Facebook users, 50 million Facebook users may have had their personal data compromised.

“We have a responsibility to protect your information,” Zuckerberg said. “If we can’t, we don’t deserve it.”

The ads ran in six British national newspapers, including the best-selling Mail, The Sunday Times and The Observer, along with The New York Times, The Washington Post and The Wall Street Journal in the U.S.

Zuckerberg said Facebook, with 2.2 billion users worldwide, is also investigating “every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected.”

A new Reuters-Ipsos poll in the U.S. released Sunday showed that 41 percent of Americans trust Facebook to obey laws that protect their personal information, compared to 66 percent of trust in Amazon; 62 percent in Google; 60 percent in Microsoft and 47 percent in Yahoo.

Scientists Track Chinese Space Station as It Falls to Earth

Scientists are monitoring a defunct Chinese space station that is expected to fall to Earth around the end of the month, the largest manmade object to re-enter Earth’s atmosphere in a decade.

The head of the European Space Agency’s debris office, Holger Krag, says China’s Tiangong-1 space station will likely fall to Earth between March 30 and April 3.

Krag said it still not yet known where the space station will hit Earth, but said it would be extremely unlikely for anyone to be injured when it does.

Injury unlikely

“Our experience is that for such large objects typically between 20 and 40 percent of the original mass, of 8.5 tons, will survive re-entry and then could be found on the ground, theoretically,” he said.

“However, to be injured by one of these fragments is extremely unlikely. My estimate is that the probability to be injured by one of these fragments is similar to the probability of being hit by lightning twice in the same year,” Krag added.

He said the space station is expected to fall between the areas of 43 degrees south and 43 degrees north, and everything outside that zone is considered safe.

“Northern Europe including France, Germany, Austria and Switzerland are definitely on the safe side. Southern Europe, the southern part of North America, South Asia, Africa, Australia and also South America are still within the zone today,” he said.

Where will it hit?

Scientists say it is hard to predict where Tiangong-1 will hit Earth in part because of its low orbit and high velocity. They say the space station is traveling 17,400 mph and orbits Earth about every 90 minutes.

Tiangong-1 was launched into orbit in 2011 as China’s first space lab. It carried out orbit experiments in preparation for China’s plan to put a permanent space station into orbit by 2023.

 

Pride, Loneliness in the Deep North: Russians Who Refuse to Abandon Arctic City

In Russia’s far north, the city of Vorkuta is slowly being reclaimed by the Arctic tundra. Its population has plummeted as the local coal mines have closed, and the very future of the city is in doubt. As Henry Ridgwell reports for VOA, Vorkuta’s fate reflects a wider population crisis across Russia’s far north as old Soviet industries have crumbled.

Swelling Tourism Numbers Come at a Cost in Indonesia

Tourist numbers in Indonesia swelled last year on the back of overseas advertising and infrastructure development. President Joko Widodo has said he wants to “create 10 tourist destinations like the island of Bali.” But the pleasing economic numbers also come with a social and environmental cost as rampant development threatens ecosystems and traditional livelihoods. Jack Hewson has this report.

Blacks in Silicon Valley Share Lessons on Pursuing Unicorns or Gazelles

What does it take to build a thriving technology company – and an environment in which black techies, their financial backers and their markets can flourish?

That question underpins the new VOA documentary “Beyond the Unicorn.”  Subtitled “Africans Making IT in Silicon Valley,” it explores how some Africans and African-Americans are finding their way in the tech sector’s global capital in California.

The 26-minute documentary profiles several entrepreneurs and venture capitalists and how they overcome hurdles. Its screening Wednesday evening, at a VOA event at the San Francisco campus of the French university INSEEC U., served as a springboard for a panel discussion spanning market potential, funding gaps and hiring disparities.

First, a definition for the uninitiated. A unicorn is a private startup technology firm valued at $1 billion or more. Once rare, such companies have proliferated in the last few years, with almost 200 globally as of last May, according to Forbes.

Silicon Valley has spawned herds of unicorns, such as Uber and Airbnb.  

Africa hasn’t. With less readily available investment funding, “a unicorn might be quite unrealistic for an entrepreneur in Africa to build very quickly,” said venture capitalist Mbwana Alliy, who appears in the documentary. He suggested its counterpart might be a “zebracorn.”           

“Does that mean it’s a $100 million startup? Maybe that’s more achievable for an entrepreneur,” said Alliy, founder of the Africa-focused Savannah Fund. “And it’s still a major outcome.”   

Panelist Stephen Ozoigbo proposed another term: gazelle, “something real and indigenous.”

“If it’s a gazelle, then you’re sure it would outrun, it would outhustle” the competition, said Ozoigbo, CEO of the African Technology Foundation.   

​Market potential

The continent has some fast-growing economies – think Ethiopia and Nigeria – and the world’s fastest-growing population. More than half of its countries are expected to double their head counts by 2050, the United Nations reports.

No wonder investment in African tech ventures is surging.

Figures vary: The Disrupt Africa news portal says African tech startups raised more than $195 million last year, up from almost $130 million in 2016.

Partech Ventures reports even stronger growth. The global venture capital firm, which has offices in San Francisco and Dakar, Senegal, reports that 124 tech startups drew $560 million in equity in 2017, up from almost $367 million for 74 startups the previous year.

Still, Africa gets only a very tiny share of global private equity capital, said Andile Ngcaba, a panelist and founder of the African tech investment management fund Convergence Partners.

That’s just one of the challenges for Africans and African-Americans in tech.

Lack of diversity

Blacks account for just 3 percent of the workforce among Silicon Valley’s top 75 tech companies, an underrepresentation so striking that it has drawn public condemnation and scrutiny by the U.S. Equal Employment Opportunity Commission in a 2016 report.

The male-dominated tech sector can be even less welcoming to black females.

“Being an African woman in Silicon Valley … has been very difficult. I actually had an easier time in Nigeria,” said Bukola Akinfaderin, a senior developer – and the only black female mobile engineer – for the genealogy website Ancestry.com. She said her homeland’s tech sector has less of a gender imbalance.

Akinfaderin, featured in the documentary, finds support in groups such as dev/color, a nonprofit for black software engineers.

She gets encouragement to revive Jandus Radio, her app enabling the African diaspora to hear live radio from the continent. It had as many as 500,000 users by 2016, when the hosting company’s server malfunctioned and deleted the app’s database. She plans to reboot the app as KinFolk.

Akinfaderin touts the value of being an African woman engineer working in Silicon Valley. “When you’re building a product – especially if it’s a consumer-facing product, one that’s international – you are going to need perspective from everyone.”

Need for helping hands

Mentoring and networking can make all the difference in finding opportunities, said Nate Yohannes, a Microsoft business development director for artificial intelligence – and the evening’s keynote speaker.

“Coming to the United States as a child of [Eritrean] refugees,” he said, he couldn’t always rely on his parents’ guidance because of their unfamiliarity with the new setting. So, he sought out mentors, who helped shape his trajectory from law school to a Wall Street job to the U.S. Small Business Association to Microsoft.

“It’s on us” to help each other and connect the continents, Yohannes told the scores of people, including other Africans, in the screening room.

Other concerns

Africa’s rapid population growth heightens the need to educate African youths so they can compete for work globally, said Convergence Partners’ Ngcaba. He added that those aspiring to the tech sector will need training in, say, data science, machine learning and artificial intelligence.

“That’s the only way we can position ourselves in the global landscape,” Ngcaba said.

Skills, opportunity and capital are vital for entrepreneurs, agreed Yonas Beshawred, founder and CEO of StackShare, an online marketplace for comparing engineering tools and software.

But, he added, “I think the most important thing is that you have something that you’re passionate about and you start working on it … instead of just talking.”

A VOA showcase

The “Unicorn” screening event also served as a showcase for VOA’s commitment to “telling America’s story” along with providing accurate news and information to countries without independent media, VOA director Amanda Bennett said. 

“And what is more American than the American diaspora, the people who come here from places around the world looking for something and looking to give something, looking to be someone? And what is more American than technology?” she asked rhetorically in her introductory remarks, pointing out that VOA opened a Silicon Valley office last spring.

Some Fear Steel Tariff Could Hurt Auto Industry in the South

German business leaders are expressing concerns that President Donald Trump’s 25 percent tariff on imported steel could affect the auto industry in the South.

 

WABE Radio reports Mercedes-Benz USA this month opened its new North American headquarters in Sandy Springs, Georgia, for 1,000 employees.

The luxury car manufacturer is owned by Germany-based Daimler, but Mercedes-Benz USA CEO Dietmar Exler used the grand opening to remind the crowd of the brand’s U.S. presence.

German automakers in US 

That includes operations in South Carolina and in Alabama.

 

“We are now in the midst of construction of our own factory here, which will open doors in the fall in Charleston, South Carolina, and we’ll make all of the Sprinter vans for North America right here,” Exler said at the grand opening of its headquarters in Sandy Springs, Georgia, just north of Atlanta.

 

“Right next to me you have a member of the most successful SUV family, a GLE Coupe,” Exler said. “As you know, the GLE and the GLS are produced in Alabama. Last year, 280,000 cars were produced here not just for the U.S. market, but for markets all over the world.”

 

German car factories in the U.S. made more than 800,000 vehicles last year, and about half were sold overseas, according to the German Association of the Automotive Industry.

 

This month, Volkswagen of America Inc. announced plans to build a new five-passenger SUV at its factory in Chattanooga, Tennessee, where it manufactures other vehicles. Volkswagen AG is based in Wolfsburg, Germany.

 

“During my time as governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today — a thriving U.S. manufacturing operation that can produce three models, and counting,” said Tennessee Gov. Bill Haslam said in a statement Monday, when plans were announced.

 

“We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce,” Haslam said.

Volkswagen Chattanooga also manufactures the Passat and the Atlas.

​Trump proclamation, industry concern

Trump signed a proclamation last week to impose a 25 percent tariff on steel from every country except Canada and Mexico. The hope is to boost steel manufacturing in the U.S.

The concern among some industry experts is that tariffs on steel could hurt companies like Mercedes-Benz, Volkswagen and Porsche, all of which have significant operations in the South, said Stefan Mair of the Federation of German Industries in Berlin.

 

“Do you see the cars outside? There’s a lot of steel in there,” Mair said at the grand opening of the Georgia headquarters complex. “We think there will be some additional percentage points on the prices of cars.”

 

That price increase could be enough to stop people from buying new cars, said Lisa Cook, who teaches economics and international relations at Michigan State University.

 

“If consumers are price sensitive, and they are for many types of cars, this could cause people to postpone their decision to purchase a car,” Cook said.

US steel in cars

 

A little more than a quarter of all U.S. steel is used to make cars in this country, according to the German American Chamber of Commerce for the southern U.S.

 

“Approximately 25 percent of all steel is used in automotive manufacturing and 10 percent in machinery and equipment; both industries that German companies have heavily invested in the U.S. over the years,” said Stefanie Ziska, president of GACC South.

 

Making cars more expensive to build and export could hurt U.S. jobs, said Jeffrey Rosensweig, who teaches international business at Georgia’s Emory University.

 

“That would not only cost us jobs, it would hurt the U.S. and could potentially harm the U.S. trade balance,” Rosensweig said. “Just the opposite of what President Trump thinks he’s trying to achieve.”

 

He said the steel tariffs could trigger a trade war that would go beyond the auto industry.

 

“These foreign nations that we’re going to put these import taxes on, these tariffs, are not stupid,” Rosensweig said. “They’re going to retaliate against our exports, and they’re going to hit us where it hurts, which is often our farm exports.”

Indian Agency Denies Reported Security Lapse in ID Card Project

The semi-government agency behind India’s national identity card project on Saturday denied a report by news website ZDNet that the program has been hit by another security lapse that allows access to private information.

ZDNet reported that a data leak on a system run by a state-owned utility company, which it did not name, could allow access to private information of holders of the biometric “Aadhaar” ID cards, exposing their names, their unique 12-digit identity numbers and their bank details.

But the Unique Identification Authority of India (UIDAI), which runs the Aadhaar program, said “there is no truth in this story” and that it was “contemplating legal action against ZDNet.”

ZDNet could not immediately be contacted for comment on the UIDAI’s response.

“There has been absolutely no breach of UIDAI’s Aadhaar database. Aadhaar remains safe and secure,” the agency said in a statement late Saturday.

Even if the claim purported in the story were taken as true, it would raise security concerns about the database of the utility company and would have “nothing to do with the security of UIDAI’s Aadhaar database,” it said.

More than 1 billion users

ZDNet had reported that even though the security lapse was flagged to some government agencies over a period of time, it had yet to be fixed. It said it was withholding the name of the utility and other details.

Karan Saini, a New Delhi security researcher, said that anyone with an Aadhaar number was affected.

“This is a security lapse. You don’t have to be a consumer to access these details. You just need the Uniform Resource Locator where the Application Programming Interface is located. These can be found in less than 20 minutes,” Saini told Reuters.

In recent months, researchers and journalists who have identified loopholes in the identity project have said they were slapped with criminal cases or harassed by government agencies because of their work.

Aadhaar, a biometric identification card with over 1.1 billion users, is the world’s biggest database. But it has been facing increased scrutiny over privacy concerns following several instances of breaches and misuse.

Last Thursday, the CEO of UIDAI said the biometric data attached to each Aadhaar was safe from hacking because the storage facility was not connected to the internet.

“Each Aadhaar biometric is encrypted by a 2,048-key combination and to decode it, the best and fastest computer of our era will take the age of the universe just to hack into one card’s biometric details,” Ajay Bhushan Pandey said.

UK Watchdog Evaluates Evidence From Cambridge Analytica

Britain’s information regulator said Saturday that it was assessing evidence gathered from a raid on the office of data mining firm Cambridge Analytica, part of an investigation into alleged misuse of personal information by political campaigns and social media companies like Facebook.

More than a dozen investigators from the Information Commissioner’s Office entered the company’s central London office late Friday, shortly after a High Court judge granted a warrant. The investigators were seen leaving the premises early Saturday after spending about seven hours searching the office.

The regulator said it would “consider the evidence before deciding the next steps and coming to any conclusions.”

“This is one part of a larger investigation by the ICO into the use of personal data and analytics by political campaigns, parties, social media companies and other commercial actors,” it said.

Authorities in Britain as well as the U.S. are investigating Cambridge Analytica over allegations the firm improperly obtained data from 50 million Facebook users and used it to manipulate elections, including the 2016 White House race and the 2016 Brexit vote in Britain.

Both Cambridge Analytica and Facebook deny wrongdoing. 

​Chief executive suspended

The data firm suspended its CEO, Alexander Nix, this week after Britain’s Channel 4 News broadcast footage that appeared to show Nix suggesting tactics like entrapment or bribery that his company could use to discredit politicians. The footage also showed Nix saying Cambridge Analytica played a major role in securing Donald Trump’s victory in the 2016 U.S. presidential election.

Cambridge Analytica’s acting chief executive, Alexander Tayler, said Friday that he was sorry that SCL Elections, an affiliate of his company, “licensed Facebook data and derivatives from a research company [Global Science Research] that had not received consent from most respondents” in 2014.

“The company believed that the data had been obtained in line with Facebook’s terms of service and data protection laws,” Tayler said.

His statement said the data were deleted in 2015 at Facebook’s request, and he denied that any of the Facebook data that Cambridge Analytica obtained were used in the work it did on the 2016 U.S. election.

China Warns US It Will Defend Own Trade Interests

The United States has flouted trade rules with an inquiry into intellectual property and China will defend its interests, Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin in a telephone call on Saturday, Chinese state media reported.

The call between Mnuchin and Liu, a confidante of President Xi Jinping, was the highest-level contact between the two governments since U.S. President Donald Trump announced plans for tariffs on up to $60 billion of Chinese goods on Thursday.

The deepening rift has sent a chill through financial markets and the corporate world as investors predicted dire consequences for the global economy should trade barriers start going up.

Several U.S. chief executives attending a high-profile forum in Beijing on Saturday, including BlackRock Inc’s Larry Fink and Apple Inc’s Tim Cook, urged restraint.

In his call with Mnuchin, Liu, a Harvard-trained economist, said China still hoped both sides would remain “rational” and work together to keep trade relations stable, the official Xinhua news agency reported.

U.S. officials say an eight-month probe under the 1974 U.S. Trade Act has found that China engages in unfair trade practices by forcing American investors to turn over key technologies to Chinese firms.

However, Liu said the investigation report “violates international trade rules and is beneficial to neither Chinese interests, U.S. interests nor global interests”, Xinhua cited him as saying.

In a statement on its website, the office of the U.S. Trade Representative Robert Lighthizer said it had filed a request – at the direction of Trump – for consultations with China at the World Trade Organization to address “discriminatory technology licensing agreements.”

China’s commerce ministry expressed regret at the filing on Saturday, and said China had taken strong measures to protect the legal rights and interests of both domestic and foreign owners of intellectual property.

Counter moves

During a visit to Washington in early March, Liu had requested Washington set up a new economic dialogue mechanism, identify a point person on China issues, and deliver a list of demands.

The Trump administration responded by telling China to immediately shave $100 billion off its record $375 billion trade surplus with the United States. Beijing told Washington that U.S. export restrictions on some high-tech products are to blame.

“China has already prepared, and has the strength, to defend its national interests,” Liu said on Saturday.

According to an editorial by China’s state-run Global Times, it was Mnuchin who called Liu.

Firing off a warning shot, China on Friday declared plans to levy additional duties on up to $3 billion of U.S. imports in response to U.S. tariffs on steel and aluminium, imposed after a separate U.S. probe.

Zhang Zhaoxiang, senior vice president of China Minmetals Corp, said that while the state-owned mining group’s steel exports to the U.S. are tiny, the impact could come indirectly.

“China’s direct exports to the U.S. are not big. But there will be some impact due to our exports via the United States or indirect exports,” Zhang told reporters on the sidelines of the China Development Forum in Beijing on Saturday.

Global Times said Beijing was only just beginning to look at means to retaliate.

“We believe it is only part of China’s countermeasures, and soybeans and other U.S. farm products will be targeted,” the widely-read tabloid said in a Saturday editorial.

Wei Jianguo, vice chairman of Beijing-based think tank China Centre for International Economic Exchanges, told China Daily that Beijing could impose tariffs on more U.S. products, and is considering a second and even third list of targets.

Possible items include aircraft and chips, Wei, a former vice commerce minister, told the newspaper, adding that tourism could be a possible target.

Soybeans, autos, planes

The commerce ministry’s response had so far been “relatively weak,” respected former Chinese finance minister Lou Jiwei said at the forum.

“If I were in the government, I would probably hit soybeans first, then hit autos and airplanes,” said Lou, currently chairman of the National Council for Social Security Fund.

U.S. farm groups have long feared that China, which imports more than third of all U.S. soybeans, could slow purchases of agricultural products, heaping more pain on the struggling U.S. farm sector.

U.S. agricultural exports to China stood at $19.6 billion last year, with soybean shipments accounting for $12.4 billion.

Chinese penalties on U.S. soybeans will especially hurt Iowa, a state that backed Trump in the 2016 presidential elections.

Boeing jets have also been often cited as a potential target by China.

China and the U.S. had benefitted by globalization, Blackrock’s Larry Fink said at the forum.

“I believe that a dialogue and maybe some adjustments in trade and trade policy can be in order. It does not need to be done publicly; it can be done privately,” he said.

Apple’s Tim Cook called for “calm heads” amid the dispute.

The sparring has cast a spotlight on hardware makers such as Apple, which assemble the majority of their products in China for export to other countries.

Electrical goods and tech are the largest U.S. import item from China.

Some economists say higher U.S. tariffs will lead to higher costs and ultimately hurt U.S. consumers, while restrictions on Chinese investments could take away jobs in America.

“I don’t think local governments in the United States and President Trump hope to see U.S. workers losing their jobs,” Sun Yongcai, general manager at Chinese railway firm CRRS Corp, which has two U.S. production plants, said at the forum.

 

Australia Developing Lasers to Track, Destroy Space Junk

Australian scientists say a powerful ground-based laser targeting space junk will be ready for use next year.  They say there are hundreds of thousands of pieces of debris circling the Earth that have the potential to damage or destroy satellites.

Reducing the amount of space junk in orbit has been the focus of a meeting of scientists this week in Canberra organized by Australia’s Space Environment Research Center.  

The meeting has heard that a laser using energy from light radiation to move discarded objects in space could be ready for use within a year.  Researchers in Australia believe the technology would be able to change the path of orbital junk to prevent collisions with satellites. The aim is to eventually build more powerful laser beams that could push debris into the Earth’s atmosphere, where it would burn up.

Professor Craig Smith, head of EOS Space Systems, the Australian company that is developing the junk-busting devices, explained how it would work.

“We track objects and predict collisions to high accuracy and if we think a space debris object is going to have a collision with another space debris object then we can use our laser to change its orbits rather than crashing into a satellite or another space debris object causing more space debris.  Again as we ramp up the power to bigger and bigger lasers then, yes, you can actually start moving it enough to what we call de-orbit the satellite by reducing its velocity enough that it starts to change orbit height and eventually hits the atmosphere and the atmosphere takes over and drags it,” Smith said.  

The system, which would operate through a telescope near the Australian capital, Canberra, is expected to be finished early next year. It is estimated there are 7,500 tons of trash in space.  This includes an estimated half-a-million marble-sized pieces of junk, while other items, such as discarded rockets and disused parts of space crafts, are much larger.

In 2012, the eight-ton Envisat Earth Observation satellite unexpectedly shut-down in orbit, where it remains.  The size of a school bus, the satellite is one of the largest pieces of ‘junk’ in orbit and could become a catastrophic hazard if struck  by other space debris and broken into fragments.

But space debris does not have to be big to cause damage.  A floating fleck of paint is thought to have cracked a window on the International Space Station.

In Europe, large nets and harpoons are being developed to catch debris encircling our planet.

Wayne Huizenga, Who Built Fortune in Trash, Dies at 80

H. Wayne Huizenga, a college dropout who built a business empire that included Blockbuster Entertainment, AutoNation and three professional sports franchises, has died. He was 80.

Huizenga died Thursday night at his home, said Valerie Hinkell, a longtime assistant. The cause was cancer, said Bob Henninger, executive vice president of Huizenga Holdings.

Starting with a single garbage truck in 1968, Huizenga built Waste Management Inc. into a Fortune 500 company. He purchased independent sanitation engineering companies, and by the time he took the company public in 1972, he had completed the acquisition of 133 small-time haulers. By 1983, Waste Management was the largest waste disposal company in the United States.

The business model worked again with Blockbuster Video, which he started in 1985 and built into the leading movie rental chain nine years later. In 1996, he formed AutoNation and built it into a Fortune 500 company.

Sports team owner

Huizenga was founding owner of baseball’s Florida Marlins and the NHL’s Florida Panthers — expansion teams that played their first games in 1993. He bought the NFL’s Miami Dolphins and their stadium for $168 million in 1994 from the children of founder Joe Robbie but had sold all three teams by 2009.

“Wayne Huizenga was a seminal figure in the cultural history of South Florida,” current Dolphins owner Stephen Ross said in a statement. “He completely changed the landscape of the region’s sports scene. … Sports fans throughout the region owe him a debt of thanks.”

The Marlins won the 1997 World Series, and the Panthers reached the Stanley Cup Finals in 1996, but Huizenga’s beloved Dolphins never reached a Super Bowl while he owned the team.

“If I have one disappointment, the disappointment would be that we did not bring a championship home,” Huizenga said shortly after he sold the Dolphins to Ross. “It’s something we failed to do.”

Fan favorite — for a time

Huizenga earned an almost cultlike following among business investors who watched him build Blockbuster Entertainment into the leading video rental chain by snapping up competitors. He cracked Forbes’ list of the 100 richest Americans, becoming chairman of Republic Services, one of the nation’s top waste management companies, and AutoNation, the nation’s largest automotive retailer. In 2013, Forbes estimated his wealth at $2.5 billion.

For a time, Huizenga was also a favorite with South Florida sports fans, drawing cheers and autograph seekers in public. The crowd roared when he danced the hokey pokey on the field during an early Marlins game. He went on a spending spree to build a veteran team that won the World Series in the franchise’s fifth year.

But his popularity plummeted when he ordered the roster dismantled after that season. He was frustrated by poor attendance and his failure to swing a deal for a new ballpark built with taxpayer money.

Many South Florida fans never forgave him for breaking up the championship team. Huizenga drew boos when introduced at Dolphins quarterback Dan Marino’s retirement celebration in 2000 and kept a lower public profile after that.

In 2009, Huizenga said he regretted ordering the Marlins’ payroll purge.

“We lost $34 million the year we won the World Series, and I just said, ‘You know what, I’m not going to do that,’” Huizenga said. “If I had it to do over again, I’d say, ‘OK, we’ll go one more year.’”

He sold the Marlins in 1999 to John Henry, and sold the Panthers in 2001, unhappy with rising NHL player salaries and the stock price for the team’s public company.

Dolphins man

Huizenga’s first sports love was the Dolphins; he had been a season-ticket holder since their first season in 1966. But he fared better in the NFL as a businessman than as a sports fan.

He turned a nifty profit by selling the Dolphins and their stadium for $1.1 billion, nearly seven times what he paid to become sole owner. But he knew the bottom line in the NFL is championships, and his Dolphins perennially came up short.

Huizenga earned a reputation as a hands-off owner and won raves from many loyal employees, even though he made six coaching changes. He eased Pro Football Hall of Famer Don Shula into retirement in early 1996, and Jimmy Johnson, Dave Wannstedt, interim coach Jim Bates, Nick Saban, Cam Cameron and Tony Sparano followed as coach.

Johnson tweeted: “A great man, one of the nicest individuals I have ever known, Wayne Huizenga passed away. RIP.”

Garbage business

Harry Wayne Huizenga was born in the Chicago suburbs on Dec. 29, 1937, to a family of garbage haulers. He began his business career in Pompano Beach in 1962, driving a garbage truck from 2 a.m. to noon each day for $500 a month.

Huizenga was a five-time recipient of Financial World magazine’s “CEO of the Year” award, and was the Ernst & Young “2005 World Entrepreneur of the Year.”

Regarding his business acumen, Huizenga said: “You just have to be in the right place at the right time. It can only happen in America.”

In 1960, he married Joyce VanderWagon. Together they had two children, Wayne Jr. and Scott. They divorced in 1966. Wayne married his second wife, Marti Goldsby, in 1972. She died in 2017.