YCLOAK

This week, more than 1,000 entrepreneurs, business executives and government officials are in Hyderabad India to discuss ways to empower people to start businesses and build networks. The focus of the 8th annual Global Entrepreneurship Summit is women, who still lag behind men when it comes to founding businesses and getting funding. Michelle Quinn reports from Hyderabad.
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U.S. ethanol producers, looking to relieve a growing domestic glut, are hunting for new international fuel markets to replace China and Brazil after trade disputes slashed exports to those top buyers.

Without new markets, U.S. producers may have to pare output after spending hundreds of millions of dollars on biofuel production plants in recent years. Currently, the most promising potential destinations for U.S. fuel exports appear to be Mexico and India, industry executives said.

China and Brazil accounted for 41 percent of the 1.17 billion gallons the United States exported last year. Shipments to the two shriveled in September, making U.S. exports for that month the smallest in more than a year.

“There are only so many times you can replace your top market,” said Tom Sleight, president of the U.S. Grains Council, which officials said has been calling on potential buyers in Kenya, Ghana and Nigeria.

China’s demand plummeted by more than 100 million gallons this year after it removed a preferential tariff rate. Brazil’s imports tumbled after it put a quota on imports in September to protect its domestic producers.

Selling points

To drum up new customers, Illinois-based ethanol producer Marquis Energy has sent executives to India, China, Thailand and the Philippines, promoting the corn-based fuel additive as a smog- and oil-import fighter.

“I’ve had a lot of people over there almost nonstop over the last three months,” the company’s chief executive, Mark Marquis, said of the hunt for buyers in Asia. Archer Daniels Midland Co and Flint Hills Resources also have stepped up efforts to sell into Mexico, traders said.

U.S. ethanol prices have slid to nearly a two-year low as daily domestic production last week hit a record 45.1 million gallons, making the search for new export markets more urgent.

Output this year could reach about 16 billion gallons, nearly triple that of 2007.

U.S. exports fell since hitting 2.5 million gallons per day in the first eight months this year. Shipments to Brazil sank to 19 million gallons in September, the smallest monthly volume in more than a year. Exports to China through September were just 60,880 gallons, a precipitous drop from 198 million gallons a year earlier, according to U.S. Department of Agriculture data.

The marketing effort could pay off in Mexico, whose energy regulatory commission (CRE) is to vote soon to ease the flow of fuel imports through state-run Pemex facilities to several Mexican states bordering the United States.

If approved, significant new volumes of gasoline blended with 10 percent ethanol could begin flowing in 2018 into Chihuahua, Coahuila, Nuevo Leon and Tamaulipas states, CRE Commissioner Luis Guillermo Pineda told Reuters.

“The largest supplier is logically the United States, but it can be from anywhere,” Pineda said of the ethanol blend.

Import prediction

Ray Young, ADM’s finance chief, last month told analysts Mexico could be importing 200 million gallons annually by 2019.

U.S. ethanol exports to Mexico last year totaled about 30 million gallons.

U.S. inventories reached 920 million gallons in the week ended November 17, up 16 percent from a year earlier, the U.S. Energy Information Administration said. Ethanol futures have fallen to $1.36 per gallon on the Chicago Board of Trade, down 20 percent from their 2017 high in April.

U.S. producers are pitching China and India on ethanol’s smog-fighting potential. This month, United Airlines canceled flights to India’s capital, New Delhi, citing heavy smog as a public health emergency. China ordered Beijing and more than two dozen other cities to start meeting limits on airborne pollution starting this month.

Ted McKinney, a USDA official interviewed during a biofuel-promotion trip to India, expressed optimism that country could import much more U.S. ethanol for cars and trucks. But others were not so sure.

India’s government wants to promote biofuel production using its own agricultural waste, said Jai Asundi, research coordinator at a Bengaluru-based think tank, the Center for Study of Science, Technology and Policy.

“There is a potential for producing ethanol from locally available sources without depending on imports,” Asundi said.
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Eni US could begin work on oil exploration in federal waters off Alaska as soon as next month after the Trump administration on Tuesday approved permits for leases the company has held for a decade, the Interior Department said.

The department’s Bureau of Safety and Environmental Enforcement, issued Eni US, a unit of Italy’s Eni, a permit to explore for oil from an artificial island in the Beaufort Sea. Eni is the first company allowed to explore for oil in federal waters off Alaska since 2015.

The approval is part of the Trump administration’s policy to maximize output of fossil fuels for domestic use and for exporting.

Scott Angelle, the BSEE director, said developing Arctic resources responsibly is a “critical component to achieving American energy dominance.”

Environmentalists say exploring for oil in the Arctic is dangerous.

“The Trump administration is risking a major oil spill by letting this foreign corporation drill in the unforgiving waters off Alaska,” said Kristen Monsell, the legal director for oceans at the Center for Biological Diversity nonprofit group.

Eni wants to drill into the Beaufort from the island using extended wells more than 6 miles (10 km) long. Eni US did not immediately respond to a request for comment about when it would start drilling.

In April President Donald Trump signed a so-called America-First Offshore Energy Strategy executive order to extend offshore drilling to areas in the Arctic and other places that have been off limits.

Eni’s leases, which were set to expire by the end of the year, were outside of an area protected by former President Barack Obama weeks before he left office. The company’s plan to move ahead with risky and expensive drilling in the Arctic comes despite years of low oil prices and plentiful sources of crude in the continental United States.

Royal Dutch Shell Plc quit its exploration quest offshore of Alaska in 2015 after a ship it had leased suffered a gash in mostly uncharted waters and environmentalists discovered an existing law that limited the company’s ability to drill.

Republicans are eager to drill elsewhere in Alaska. A tax bill passed by the Senate budget committee Tuesday contained a provision to open drilling in a portion of Alaska’s Arctic National Wildlife Refuge. Conservationists say the refuge is one of the planet’s last paradises.

The bill, which Republicans hope to pass in the full Senate this week, faces an uncertain future.
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Venezuelan leftist President Nicolas Maduro on Tuesday evening held a ceremony to swear in a military officer as the new head of state oil company PDVSA in the presence of the military’s top brass and cheering red-shirted oil workers.

In a surprise move, the unpopular Maduro on Sunday tapped Major General Manuel Quevedo to lead both PDVSA and the Oil Ministry, giving the already powerful military control of the OPEC nation’s dominant industry.

“He’s a man of the people … and, most importantly, he’s honest!” said Maduro, as workers cheered and chanted that they wanted a “clean up in PDVSA!” after a series of corruption scandals.

Maduro also announced he was naming Ysmel Serrano, the head of the trade and supply division, as vice president of PDVSA, which oversees the world’s largest crude reserves. Maduro said he would seek to name the country’s former energy minister, Ali Rodriguez, as “honorary president” of PDVSA.

More military officers are set to be named to senior management posts as part of a shakeup the government says is aimed at fighting corruption, two company sources told Reuters on Monday.

Sources in the sector also said Quevedo’s appointment could quicken a white-collar exodus from PDVSA and worsen operational problems at a time when production has already tumbled to near 30-year lows of under 2 million barrels per day.

 
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As India starts to use blockchain technology for land deals, it must protect the rights of the most vulnerable with policies for the responsible use of big data, analysts said.

At least two Indian states are testing blockchain — a ledger system tracking digital information — to record land deals and bring transparency to a system that is rife with fraud and leaves the poor at risk of eviction.

Putting India’s land records on blockchain — the technology behind the bitcoin currency — would greatly increase efficiency, reduce corruption and boost economic growth, experts say.

But fears about the misuse of data persist.

“One of the biggest challenges with respect to big data is the fear of discrimination and profiling based on religion, caste or income level,” said Nikhil Narendran, a partner at the law firm Trilegal.

“The government should engage in responsible and ethical big data processing, and have adequate mechanisms to retain ownership and confidentiality,” he said in Blockchain for Property, a handbook for its adoption, released Tuesday.

Land records in most Indian states date to the colonial era, and most land holdings have uncertain ownership. Fraud is rampant, and disputes over titles often end up in court.

Torn maps, old disputes

A national land record modernization program, launched in 2008 to survey lands, update records and establish ownership, has been delayed by torn maps and disputes dating back decades.

Blockchain works by creating permanent, public “ledgers” of all transactions, potentially replacing a mass of overlapping records with one simple database.

It enables real-time updates of records, improving efficiency and transparency, and reducing bribes, analysts say.

But there cannot be a complete switch to a blockchain platform, because millions are still not literate and lack access to smartphones and computers, said Ananth Padmanabhan, a fellow at think tank Carnegie India.

“There needs to exist a dual system, that is, an option to use the online services but also the old process of paper documents submission at the government office,” he said.

It is also important that the data not be used to profile people or discriminate against them — for instance, denying home loans to people from certain backgrounds, Narendran said.

“If used in a responsible and ethical manner, big data can bring about real change, including in the area of land transactions,” he told the Thomson Reuters Foundation. “We need a model that is rights based and accountability based, so there are fewer chances of the misuse of data.”
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Chobani, the company that helped kick-start the Greek yogurt craze, is shrinking those words on its label as it may expand beyond that food in an increasingly crowded yogurt market.

The new look, which will show up in supermarkets this week, removes “Greek Yogurt” from underneath the Chobani name. The yogurt inside will stay the same. Its packaging will be more muted than the current bright white, use a new font and style, and feature watercolor paintings of fruits rather than photographs of strawberries and peaches.

“What this new identity enables us to do is start to seed, if you will, us going into other areas beyond yogurt,” says Peter McGuinness, Chobani’s chief marketing officer. But he wouldn’t say what new foods or products it might make, or when it would happen.

Chobani has grown quickly since its yogurt was first sold at supermarkets 10 years ago. Older food companies scrambled to catch up and offer their own versions of Greek yogurt, but last year Chobani overtook General Mills Inc.’s Yoplait as the best-selling yogurt brand in the U.S., according to market research firm Euromonitor.

McGuinness says the new, thicker font makes Chobani easier to spot in the overcrowded yogurt aisle, and the off-white containers differentiate it from its rivals.

Its Smooth Yogurt, which it launched earlier this year as a less-tart alternative to Greek yogurt, gets a more colorful container and shrinks the Chobani name. A similar treatment was given to Chobani Flip, which has yogurt in one container and mix-ins such as chocolate or dried cranberries in the other. Flip, which was launched nearly four years ago, is on track to become a $1 billion business in about two years, says McGuinness. It gets people to eat yogurt beyond breakfast, he says, and brings people to the brand who may not like yogurt.

He declined to say how much the redesign would cost, but anywhere the logo appears is being updated. “This is a big investment,” he says.
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The coal industry and environmentalists squared off Tuesday at a public hearing over the Trump administration’s planned repeal of an Obama-era plan to limit planet-warming carbon emissions.

The Environmental Protection Agency was holding the only scheduled hearing on the reversal in Charleston, West Virginia, capital of a state heavily dependent on coal mining. The hearing was expected to last two days.

The Clean Power Plan sought to ratchet down use of the dirtiest fossil fuel but never took effect because of lawsuits filed by coal companies and conservative-leaning states. Coal-fired power plants are a major source of the carbon emissions driving climate change.

Among those testifying was Bob Murray, chief executive Murray Energy Corp. He derided the Obama plan as an illegal power grab that has cost coal miners their livelihoods.

“The Clean Power Plan would devastate coal-fired electricity generation in America,” said Murray, whose company employs 5,200 miners and has 14 active coal mines. “This would impose massive costs on the power sector and on American consumers.”

Under the Obama administration, EPA held four multiday public hearings — in Washington, Atlanta, Pittsburgh and Denver — to collect feedback before issuing the Clean Power Plan in 2015. About two dozen conservative-leaning states and a battery of fossil-fuel companies immediately sued, successfully preventing the carbon reduction plan from taking effect before the election of Donald Trump, who as a candidate pledged to repeal it.

To head EPA, Trump appointed Scott Pruitt, a former Oklahoma attorney general who was among those who fought the Clean Power Plan in court. Pruitt has made a priority the delay and reversal of recent environmental regulations negatively impacting the profits of coal and petrochemical companies.

Though Trump, Pruitt and others have blamed environmental regulations for the loss of coal-mining jobs, the accelerating shift of electric utilities using cheaper and cleaner-burning natural gas is a primary culprit.

Pruitt has also sought to cast doubt on the consensus of climate scientists that the continued burning of fossil fuels is the main driver of global warming. Scientists say climate change has already triggered rising seas and more extreme weather, including killer heat waves, worsened droughts and torrential rains.

Pruitt did not attend Tuesday’s public hearing, which was presided over by three EPA employees.

The Sierra Club’s climate-policy director, Liz Perera, told them that the proposed repeal ignores scientific reality.

“This is about the kind of world that we want to leave for our children,” she said.
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Jerome Powell says that if confirmed as the next chairman of the Federal Reserve, he expects the Fed to continue raising interest rates gradually to support its twin goals of maximum employment and stable prices.

Under his leadership, Powell also says, the Fed would consider ways to ease the regulatory burdens on banks while preserving the key reforms Congress passed to try to prevent another financial crisis.

Powell’s comments came in written testimony prepared for his confirmation hearing Tuesday before the Senate Banking Committee.

A member of the Fed’s board since 2012, Powell was nominated by President Donald Trump to succeed Janet Yellen after her four-year term as chair ends in February. Trump decided against offering Yellen a second term.

In his remarks released Monday, Powell sought to send the reassuring message that he would represent a figure of stability and continuity at the nation’s central bank while remaining open to making certain changes as appropriate.

On banking regulations, Powell said in his testimony, “We will continue to consider appropriate ways to ease regulatory burdens while preserving core reforms … so that banks can provide the credit to families and businesses necessary to sustain a prosperous economy.”

Among those reforms, Powell mentioned the stricter standards for capital and liquidity that banks must maintain under the Dodd-Frank financial reform law and the annual “stress tests” that the biggest banks must undergo to show they could withstand a severe downturn.

‘Gradual’ is key

Regarding interest rates, Powell said, “We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink.” The Fed has begun gradually shrinking its balance sheet, which swelled after the financial crisis from bond purchases it made to help reduce long-term borrowing rates.

The Yellen Fed has raised rates four times starting in December 2015, including two rate hikes this year. Economists expect a third rate hike to occur in December, and they’re projecting at least three additional rate increases in 2018.

Powell cautioned that while Fed officials want to make the path of interest rate policy as predictable as possible, “the future cannot be known with certainty.” For that reason, he said, it’s important for the Fed to retain the flexibility it needs to adjust its policies in response to economic developments.

In deciding not to offer Yellen another four years as chair, Trump made her the only Fed leader in nearly four decades not to be offered a second term.

Yellen, a Democrat who was nominated by President Barack Obama and became the first woman to lead the Fed, announced last week that she would step down from the Fed board once Powell is confirmed to succeed her as chair. Yellen could have remained on the board even after Powell became chair.

Yellen will leave the Fed in February after a tenure characterized by a cautious stance toward rate hikes, relative transparency about the Fed’s expectations and projections and support for the stricter bank rules that were enacted after the 2008 financial crisis.

A centrist

In his five years as a member of the Fed’s seven-member board of governors, Powell has built a reputation as a centrist. He never dissented from the policies advocated by Yellen or her predecessor, Ben Bernanke.

In his own remarks on rate policies, Powell has so far stuck close to the Yellen line. In a speech in June, he said that while low unemployment argued for raising rates, weak inflation suggested that the Fed should move cautiously in doing so. That wary approach reflected Yellen’s own warnings about the need to raise rates only incrementally, depending on the latest economic data.

Powell’s actions on the Dodd-Frank Act, the law enacted to tighten banking regulations after the 2008 crisis, may turn out to be the area where he will differ most from his predecessor. Yellen rejected arguments that the tighter regulations had hurt economic growth by making banks less likely to lend. Powell, for his part, has suggested that in some areas, the Dodd-Frank restrictions might have gone too far.

In a congressional appearance in June, Powell said that the “core reforms” should be retained but that in some respects there was a need to “go back and clean up our work.” He indicated that two areas where loosening the rules might be considered were in easing regulations on smaller banks and revising the “Volcker rule” curbs on investment trades by big banks.

 
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Ivanka Trump described the hurdles faced by women during a speech Tuesday at a business conference in India, which is treating her trip like a royal visit.

But her solo outing also highlighted questions about whether her message of empowering poor women matches her actions.

Trump’s speech at the Global Entrepreneurship Summit in the southern city of Hyderabad was broadcast live throughout India by major news channels. A buildup worthy of a Bollywood musical included cultural references that ranged from independence leader Mahatma Gandhi to the movie “Slumdog Millionaire.”

The city had cleared away beggars and filled potholes ahead of the visit by Trump, the daughter of President Donald Trump and a senior presidential adviser. She arrived without top officials from the State Department.

“As a former entrepreneur, employer, and executive in a male-dominated industry, I’ve seen firsthand that all too often women must do more than their male counterparts to prove themselves at work, while also disproportionately caring for their families at home,” Trump said in her speech.

But the conference’s focus on female entrepreneurs raises questions about some of the commercial decisions made by Trump and her namesake brand.

Critics have faulted her for failing to use her leadership role to call out labor and human rights abuses, particularly in China, where the bulk of her U.S. merchandise ships from. And they point out that she has failed to take a public stand on alleged abuses in her brand’s own supply chain.

Trump stepped back from day-to-day management of her brand before taking on an official role as White House adviser, but still retains an ownership interest.

“After my father’s election, I saw an opportunity to leave my businesses for the privilege of serving our country, and empowering all Americans to succeed,” she said in the speech.

Abigail Klem, president of the Ivanka Trump brand, has called supply chain integrity “a top priority,” but the brand has not joined the growing number of companies that publicly identify their manufacturers.

A September investigation by The Associated Press showed that Trump’s supply chain has become more opaque than ever since she took on her White House role, making it impossible to know whom her company is doing business with around the world. The brand has said supply chains are the responsibility of its licensees.

Earlier this month, 23 rights groups signed a letter urging Trump, her brand and two licensees to publish the names and addresses of suppliers.

They also urged Trump and her brand to publicly demand that the Chinese government not prosecute three activists detained this past summer while investigating the brand’s supply chain, and allow independent monitoring of factories.

Trump was joined at Tuesday’s conference by Indian Prime Minister Narendra Modi.

“What you are achieving here is truly extraordinary,” Trump said. “From your childhood selling tea to your election as India’s prime minister, you’ve proven that transformational change is possible.”

Modi was scheduled to host Trump for dinner at the luxurious Falaknuma Palace Hotel.

“This event showcases the close ties between the United States of America and India,” Modi said. “It underlines our shared commitment to entrepreneurship and innovation.”

Trump did not spend a lot of time during her speech discussing U.S. politics, although she did say the administration was “laser focused on passing long overdue tax cuts.”

The cleanup of Hyderabad, a southern technology hub, began a month ahead of the conference, when the city began rounding up several hundred homeless people and beggars.

Officials said the drive against begging was launched because two international events were taking place in the city — the entrepreneurship summit and the World Telugu Conference in December. Begging is a criminal offense in India and can be punished by as much as 10 years in prison, although the law is rarely enforced.

Beggars tend to crowd around cars at traffic signals, knocking on windows and asking for food and money. They include children as young as 5, who weave through dangerous traffic and often perform small acrobatic acts.

“It’s cool that she’s coming,” said Amani Bhugati, a medical student, before the speech. “She’s glamorous, beautiful and powerful. It’s like a combination of Hollywood and politics.”

Others marveled at the improvements made around Hyderabad. “All new,” said Gopal, a taxi driver who gave only his first name.

But he also pointed to the potholes that remain on many smaller streets. “She’s not coming here, so they didn’t fix it,” he said.

More than 1,200 people were attending the three-day conference, although not everyone was thrilled about Trump’s presence.

“It’s now being called Ivanka Trump’s summit. It totally overshadows all our work,” said Sangeeta Agarawal, the chief executive of U.S. startup Helpsy Health. “We feel that’s it become more about her.”

The annual entrepreneurship conference has a theme this year of “Women first, prosperity for all,” and involves networking, mentoring and workshops.

Trump was to host at least two panel discussions before leaving Wednesday.

 
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The world economy is growing faster than it has in seven years and more and more people are working — but the high growth isn’t expected to last long, and wages remain stubbornly stagnant.

That’s according to forecasts Tuesday from the Organization for Economic Cooperation and Development, which urged governments to do more to ensure longer-term growth and better living standards across the board.

The group, which recommends policies for leading economies, predicts sustained growth in the U.S. this year and next and a sharper-than-expected increase in the countries that use the euro currency.

For 2019, however, the OECD forecasts “a tempering of growth rather than continued strengthening.”

Chief Economist Catherine Mann urged faster re-training of workers amid drastic technological changes, extending retirement ages, investing in renewable energy and simplified tax rules to reduce risks of a new downturn.

“We’ve got wind under the wings but we’re flying low,” she said at the OECD headquarters in Paris.

The agency slightly raised its global growth forecast to 3.6 percent this year — the highest since the post-crisis upturn in 2010 — thanks to rising industrial production, trade and technology spending.

But that “remains modest by past standards,” the OECD said.

Globally, it forecasts 3.7 percent growth next year with a slight drop to 3.6 percent in 2019.

In the United States, the OECD inched up its outlook, predicting 2.2 percent growth this year and 2.5 percent in 2018 thanks to “buoyant asset prices and strong business and consumer confidence.” It expects U.S. growth to fall back to 2.1 percent in 2019.

The OECD cautioned that its forecasts are clouded by uncertainty over President Donald Trump’s tax policies and risks of protectionist trade moves. Trump campaigned to protect manufacturing jobs in the U.S. and renegotiate international trade deals he sees as unfair.

The long-troubled eurozone enjoyed another boost as the OECD became the latest group to raise its forecasts for the 19-country region. Tuesday’s report foresees 2.4 percent growth this year and 2.1 percent for next year, but predicted growth will sink back below 2 percent in 2019.

The main trouble spot is Britain, whose economy will continue to be hobbled by uncertainty surrounding its exit from the European Union. Economic growth “will continue to weaken” and be just above 1 percent in 2018 and 2019, it said.

Another big concern of the OECD: employment is rising across most rich economies, but people’s wages aren’t.

“It’s against intuition, it’s against basic principles of economics, and normally it should have been otherwise,” OECD chief Angel Gurria said. “Clearly growth has to be made more inclusive.”

“The ongoing digital revolution should be unlocking efficiencies and allowing workers to produce more,” he said. But “nobody will be able to produce more if they don’t have the skills to get the most out of the machine.”

The report also warned of the risks of high corporate debt in China and spiking housing prices in some U.S. cities and rising household debt.

 
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In the United States, it’s Cyber Monday, a day when holiday shoppers could set a new spending record for online purchases from work, home or anywhere with their cellphones.

With rising wages in the U.S., low unemployment and strong consumer confidence, research firm Adobe Analytics predicted shoppers could spend $6.6 billion on Monday, more than a 16 percent jump over last year’s record-setting total.

Online shopping has been increasing steadily in the U.S. for years as many consumers stay away from traditional brick-and-mortar stores in favor of the convenience of shopping from laptop computers, hand-held devices or, to the dismay of their employers, workplace computers.

Black Friday

Black Friday, the day after last week’s Thanksgiving holiday in the U.S., is traditionally the biggest holiday shopping day of the year, coming a few weeks ahead of gift-giving at Christmas and Hanukkah. Equity firm Consumer Growth Partners estimated Friday’s sales, both in stores and online, at about $33 billion, a 4.8 percent advance over 2016.

Even as shoppers, lured by discounted prices, thronged to stores on Friday to buy the latest tech gadgets, toys and clothing, retailers reported that overall, the number of shoppers in their stores dipped a bit, an indication that many buyers were instead shopping online.

The National Retail Federation is predicting that U.S. consumer spending in November and December could climb 4 percent over a year ago to $682 billion, which would make this the strongest holiday shopping season since 2014.

Competition

Two of the biggest online retailers in the U.S., Amazon.com and Wal-Mart Stores, are about even in offering the lowest prices on a large array of consumer items, a Reuters survey showed. A year ago, products bought through Amazon were typically 3 percent cheaper, but the news agency said its survey showed that Wal-Mart has now narrowed the gap to three-tenths of 1 percent.

The boost in consumer spending, which accounts for 70 percent of the U.S. economy, the world’s largest, is buoyed by a falling jobless rate. The unemployment rate was 4.1 percent in October, the lowest level in 17 years, and employers hired another 261,000 workers.

 
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