Economy

Mexico Approves 4 Trademarks for Trump

By on Sunday, March 12, 2017

On Feb. 19, 2016, at a campaign rally in North Charleston, South Carolina, then-candidate Donald Trump gave a stump speech in which he railed against American jobs moving to Mexico: “We lose our jobs, we close our factories, Mexico gets all of the work,” he said. “We get nothing.” 

 

That same day a law firm in Mexico City quietly filed on behalf of his company for trademarks on his name that would authorize the Trump brand, should it choose, to set up shop in a country with which he has sparred over trade, migration and the planned border wall. 

 

The Trump trademarks have now been granted by the Mexican Institute of Industrial Property (IMPI). Records show the last three were approved February 21, just more than a month after Trump took office, and a fourth was granted October 6, about a month before the U.S. election.

Recent trademark approvals

 

Trump’s company has notched several trademark wins recently. The Associated Press reported Wednesday that the Chinese government recently granted preliminary approval for 38 trademarks to Trump and a related company. 

That sparked outrage from some Democratic senators and critics, who have been pushing Trump to sever financial ties with his global businesses to avoid potential violations of the emoluments clause of the U.S. Constitution, which bars federal officials from accepting anything of value from foreign governments unless approved by Congress.

 

The Mexican trademarks cover a broad range of business operations that can roughly be broken down into construction; construction materials; hotels, hospitality and tourism; and real estate, financial services and insurance. They are all valid through 2026.

 

The same four trademarks were previously held in the name of Donald J. Trump and expired in 2015, a year before the new applications. The new approvals list the trademark owner as the company DTTM Operations LLC, with an address in the Trump Tower on Fifth Avenue in New York.

No new deals abroad

 

As president, Trump has handed management of his business to his two adult sons and vowed to strike no new deals abroad while he is in office. However critics say questions remain about possible conflicts of interest, noting that foreigners could still seek to influence Trump by helping his existing foreign operations or by easing the way for future ones after he leaves the Oval Office.

 

Trump Organization General Counsel Alan Garten said the Mexican government’s decision was not a special favor to the president.

 

“We’re not being granted anything we didn’t have before,” he said. The original trademarks came “years before (Trump) even announced his candidacy.”

 

Garten said the Mexican trademarks originally had two purposes: laying the ground for possible new ventures and keeping other people from using Trump’s name for their own businesses. 

 

He said the trademarks are wholly defensive now.

 

“Circumstances have changed,” Garten said. “He’s been elected and we agreed not to do foreign deals.”

Ethical gray area 

Richard Painter, the chief White House ethics lawyer under George W. Bush, said the Mexican grants are in an ethical gray area: defensive in nature now, perhaps, but setting the president up to profit when he leaves office.

 

“To what extent is this appropriate? I don’t know,” Painter said. “We never had Obama running around the world locking up his name, or Bush.”

 

Intellectual property lawyer Enrique Alberto Diaz Mucharraz is listed on the trademark filings. A junior partner at the Mexico City law firm Goodrich Riquelme y Asociados, he declined to comment citing client confidentiality rules. Phones rang unanswered at the public relations office of IMPI, and there was no response to an emailed request for comment on a list of questions. 

 

Trademarks can prove enormously valuable to companies, especially in countries with a growing number of middle class consumers who recognize the brand, said Ashwinpaul C. Sondhi of A.C. Sondhi & Associates, an investment consultancy in Safety Harbor, Florida.

Why do business in Mexico?

 

Mexican political analyst Alejandro Hope said IMPI is generally considered to be apolitical and the trademark concession was most likely a technical decision. 

 

More remarkable, Hope said, was that the application was filed during a heated campaign when “he had already started using Mexico as a pinata” for political purposes. 

 

“What I find striking is that these guys were thinking about doing business in Mexico while they were trashing Mexico on the campaign trail,” Hope added.

Spotty business record

 

Last decade he and his children aggressively promoted a luxury hotel and condo development with the Trump name on it that was planned for the northern Baja California coast, near Tijuana. In December 2006, 188 units were sold for $122 million during an event at a hotel in San Diego. 

 

But the Trump Ocean Resort Baja Mexico project collapsed, and dozens of buyers who had lost their 30 percent deposits sued in March 2009. Trump settled out of court in November 2013 for an undisclosed sum; in a separate settlement the previous year, developer Irongate, which had licensed the Trump name, agreed to pay the buyers $7.25 million. 

 

On the Caribbean island of Cozumel, near Cancun, Trump tried in 2007 to purchase land for a luxury resort complete with an airstrip and golf course, according to Mexican media reports. It met with local and environmental opposition, and never went anywhere. 

Unpopular in Mexico

 

In all, Trump controls at least 20 trademarks in Mexico, including for Trump Ocean Resort and Trump Isla Cozumel. Others cover activities such as concierge and spa services, alcoholic beverages, golf club operations and home furnishings. For clothing, there’s the Donald J. Trump Signature Collection. 

 

If there are plans to take the Trump brand to Mexico, it could be tough going because of widespread popular anger toward the president for his comments disparaging Mexican immigrants who come to the United States illegally, his threats to tear up the North American Free Trade Agreement and his vows to make Mexico pay for the border wall. 

 

Hope said that if a Trump hotel were in the cards, its prospects could depend a lot on location. 

 

“In Mexico City, I guess they would face a lot of political backlash at this point,” Hope said. Maybe it would fly in more politically insulated areas, like the beach resorts of Cancun or Los Cabos. “But even that would be a hard sell.” 
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Science

Two Critically Ill After Drinking Wolfsbane Tea

By on Saturday, March 11, 2017

Two people are critically sick in San Francisco after drinking tea from the same Chinatown herbalist. 

 

The tea leaves bought at Sun Wing Wo Trading Company contained the plant-based toxin aconite, the Department of Public Health said Friday. 

 

A man in his 50s last month and a woman in her 30s this month became critically ill within an hour of drinking the tea, and both remain hospitalized, health officials said. 

 

Each person grew weak then had life-threatening abnormal heart rhythms that required resuscitation and intensive care. 

 

Aconite, also known as monkshood, helmet flower and wolfsbane, is used in Asian herbal medicines. But it must be processed properly to be safe. 

 

Health officials are working to find the original source of the tea leaves, and they are warning others to stop consuming it.

 

“Anyone who has purchased tea from this location should not consume it and should throw it away immediately,” said Dr. Tomás Aragón, health officer for the city and county of San Francisco. “Aconite poisoning attacks the heart and can be lethal.”
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Economy

Jobs Report No Longer Phony, Trump Says, Now That It’s His

By on Saturday, March 11, 2017

President Donald Trump is embracing government numbers he once maligned as “phony” as he tries to take credit for the latest U.S. jobs report.

The new administration on Friday promoted Labor Department statistics that show U.S. employers added 235,000 jobs in February. The unemployment rate dipped to 4.7 percent from 4.8 percent.

“Great news for American workers: economy added 235,000 new jobs, unemployment rate drops to 4.7% in first report for (at)POTUS Trump,” tweeted White House Press Secretary Sean Spicer. “Not a bad way to start day 50 of this administration,” he later said.

Watch: US Job Gains Make Higher Interest Rates a Near Certainty

What a difference a year makes

What a difference from last year’s presidential campaign, when Trump repeatedly assailed the report’s legitimacy.

 

Back then, candidate Trump denounced “phony unemployment numbers” he claimed had been invented to make the Democrats look good.

“Don’t believe those phony numbers when you hear 4.9 and 5 percent unemployment. The number’s probably 28, 29, as high as 35,” he said last February, on the day of the New Hampshire presidential primary.

“The 5 percent figure is one of the biggest hoaxes in modern politics,” he said.

That’s last year’s 5 percent, not the new numbers reported on his watch.

Numbers ‘very real now’

Asked about the apparent disconnect, Spicer offered a smile and a quip: “I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past but they are very real now.’”

During a speech at the Detroit Economic club last year, Trump pointed to figures that show one in five American households do not have a single member in the labor force. He failed to mention the one in five includes children, young people in school and senior citizens who are retired.

Though the jobless report has been criticized by others for omitting people who aren’t actively searching for work, it provides a benchmark that is similar to most other nations.

Weather makes difference

While business and consumer confidence have risen since the presidential election, economists also say it’s too soon for Trump to be taking credit for jobs.

“No new economic policies have yet been enacted,” said Scott Anderson, chief economist at Bank of the West. Instead, he pointed to an unusually mild winter that likely boosted hiring by construction firms.

Cold weather in February typically shuts down work sites across much of the country. But last month was the second-warmest February since 1895, helping construction firms add the most new jobs in a decade.

Optimism on the rise

A survey of small businesses shows that their optimism is up since the election, reaching the highest level in 12 years in January, according to the National Federation of Independent Business. Other measures also show greater business confidence.

But many of the corporate announcements of new jobs that Trump has promoted – by ExxonMobil, Intel and Ford, for example – will take place over many years and were already planned before the election.

Trump and Republicans have been quick to claim credit nonetheless.

“The February jobs report exceeded expectations by 50,000 jobs,” said the Republican National Committee in an email, “another sign President Donald Trump’s pro-growth agenda is spurring businesses to hire ‘aggressively.’”

Spicer offers apology

Spicer, meanwhile, may have jumped the gun with his tweets. A 1985 rule bars executive branch officials from commenting publicly on economic data until at least an hour after its release. Jason Furman, President Barack Obama’s top economic adviser, said on Twitter that the rule was intended to prevent White House officials, some of whom see the report a day early, from immediately spinning the data.

Spicer downplayed that mini-controversy, saying he didn’t think happily touting news that had been widely reported was “exactly a market disruption.”’

“I apologize if we were a little excited and we’re so glad to see so many fellow Americans back to work.”
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Economy

Wall Street Celebrates 8 Years of Bull Market 

By on Saturday, March 11, 2017

Happy birthday to the U.S. bull market! Eight years ago, the S&P 500 closed at 676.53, the low point for the worst bear market in equities since the Great Depression.

“No one would have ever believed it possible at the time, but at 97 months old, this now ranks as the second-longest bull market since World War II,” said Ryan Detrick, senior market strategist at LPL Financial. “On a percentage basis, though, both the 1950s and 1990s bull markets saw larger percentage gains.”

Detrick essentially says that age is just a number.

“We don’t believe bull markets die of old age; they die of excesses. This bull might be old, but we aren’t seeing the same type of overspending, overborrowing or overconfidence we’ve seen at other major market peaks.

“This doesn’t mean there won’t be pullbacks along the way, because there will be, but it does suggest this old bull could still have a few tricks up his sleeve.”

Stocks boosted by jobs

U.S. stocks ended higher Friday on the back of a very solid employment report. U.S. job growth increased more than expected in February, and wages rose steadily. Nonfarm payrolls rose by 235,000 jobs last month as the construction sector recorded its largest gain in nearly 10 years, thanks to unseasonably warm weather. And perhaps it reflects President Donald Trump’s infrastructure spending plans.

The unemployment rate fell one-tenth of a percentage point to 4.7 percent, even as more people entered the labor market.

Oil slick

U.S. crude oil prices fell below $50 a barrel to their lowest levels since mid-December early Thursday, after the Energy Information Administration reported an 8 million-barrel rise in U.S. stockpiles last week. That was about four times as much as analysts had expected, and marked the ninth week in a row of inventory gains.

J.J. Kinahan, chief market strategist at TD Ameritrade, points out in a note that “as supplies keep posting new record highs, energy sector stocks now bring up the rear in sector performance year to date, down more than 6 percent.”

Anticipated interest rate hikes

All eyes will be on the Federal Reserve on Wednesday, when the Federal Open Market Committee delivers its decision on interest rates.

Following the strong employment report, traders have essentially priced in a rate hike, giving a better-than-even chance of two more rate hikes during 2017, with a small chance of a fourth increase. Based on the price of fed funds futures contracts traded at CME Group, it appears the risk is to the downside, should the Fed not raise rates, or, conversely, if the central bank decides on a rise of more than 25 basis points.

If the Fed were to keep rates unchanged, it would send a signal that it does not have much confidence in the economy, and that could cause a spike in market volatility.

Trading week ahead

This month has been an unusually busy month for global markets, and that will continue next week. In addition to the Fed, the Bank of Japan and Bank of England are set to meet, the Netherlands holds an election, Chinese Premier Li Keqiang is holding a news conference and the G-20 finance ministers are meeting in Germany.

Stateside, investors will have a fresh set of retail sales data, as well as the Consumer Price Index, housing starts and leading indicators.

Debt ceiling

By the end of Wednesday, the U.S. Treasury is expected to reach its maximum debt ceiling, which means Treasury Secretary Steven Mnuchin will have to scramble to ensure the country can continue to keep paying its bills in full and on time.

The debt limit is the total amount of money that the U.S. government is authorized to borrow to meet its obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds and other payments.

Failing to increase the debt limit would have catastrophic economic consequences and is considered unthinkable. It would cause the government to default on its legal obligations, an unprecedented event in American history. Mnuchin sent a letter to Congress this week addressing the issue.

Merkel to meet Trump

German Chancellor Angela Merkel will meet with Trump in the U.S. capital on Tuesday, and the results of their talks will be watched closely to see if Berlin and Washington can get past a variety of potential strains to the trans-Atlantic relationship that have arisen this year.

During the U.S. political campaign, Trump said Merkel’s policy of accommodating immigrants was steering Germany toward “disaster.” And in contrast to Trump’s policies, Merkel has insisted that Europe can never isolate itself socially and economically from its neighbors.
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Technology

California Ready to Open Its Roads to Driverless Cars 

By on Saturday, March 11, 2017

Cars with no steering wheel, no pedals and nobody at all inside could be driving themselves on California roads by the end of the year, under proposed new state rules that would give a powerful boost to the fast-developing technology.

For the past several years, tech companies and automakers have been testing self-driving cars on the open road in California. But regulators insisted that those vehicles have steering wheels, foot controls and human backup drivers who could take over in an emergency.

On Friday, the state Department of Motor Vehicles proposed regulations that would open the way for truly driverless cars.

Under the rules, road-testing of such vehicles could begin by the end of 2017, and a limited number could become available to customers as early as 2018, provided the federal government gives the necessary permission.

Other states allow tests

Currently, federal automobile standards require steering wheels, though Washington has shown a desire to encourage self-driving technology.

While a few other states have permitted such testing, this is a major step forward for the industry, given California’s size as the most populous state, its clout as the nation’s biggest car market and its longtime role as a cultural trendsetter.

The proposed regulations also amount to the most detailed regulatory framework of any state.

“California has taken a big step. This is exciting,” said Bryant Walker Smith, a law professor at the University of South Carolina who tracks government policy on self-driving cars.​

Rules maybe ready by year’s end

The rules are subject to a public hearing and a comment period and could change. Regulators hope to put them in effect by December.

The proposal is more than two years overdue, reflecting complex questions of safety and highly advanced technology.

“We don’t want to race to meet a deadline,” said Bernard Soriano, a leader of the motor vehicle agency’s self-driving program. “We want to get this right.”

In one important change from prior drafts, once a manufacturer declares its technology is road-ready, it can put its cars on the market. That self-certification approach mirrors how federal officials regulate standard cars, and represents a big victory for such major players as Waymo, Google’s self-driving car project.

Also under the proposed regulations, any driverless car still must be remotely monitored and able to pull itself over safely in an emergency.

Consumer Watchdog objects

A Waymo spokesman had no immediate comment. The chief skeptic of the technology, California-based Consumer Watchdog, said the proposal does not protect the public.

“The new rules are too industry-friendly,” Consumer Watchdog’s John Simpson said in a statement.

The technology is developing quickly. More than a year ago, a Waymo prototype with no steering wheel or pedals drove a blind man on city streets in Texas.

Are they safer?

Supporters say the cars may one day be far safer than those with humans at the wheel, since the machinery won’t drive distracted, drunk or drowsy.

During road-testing in California, self-driving cars with human backup drivers are believed to have caused a few collisions.

A year ago, Waymo reported that during the 424,331 miles its cars had driven themselves, a human driver intervened 11 times to avoid a collision. In an update earlier this year, Waymo said its fleet had driven 636,868 miles in autonomous mode; it did not say how many crashes were avoided.

In all, 27 companies have Department of Motor Vehicles permits to test on California roads.

Waymo was able to legally put its prototype on the road in Texas because state law there does not prohibit a fully driverless car. Other states have explicitly invited the technology onto its roads, including Michigan, whose governor signed a bill in December that allows the public testing of cars with no driver.

In the meantime, the industry has been lobbying the U.S. Transportation Department and Congress for rule changes that could speed the introduction of truly driverless cars.
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Economy

Caribbean Nations Huddle in Havana on Migration, Trade

By on Saturday, March 11, 2017

Foreign ministers and other officials from 25 Caribbean countries met in Havana on Friday to discuss a joint response in the face of Trump administration threats to migrants and trade.

Opening remarks at the closed-door event, attended by representatives from Colombia, Mexico, Cuba and other countries in Central America and the Caribbean islands, made clear the new U.S. administration and key economic partner was uppermost on the agenda, though the name “Trump” was never uttered.

“We are meeting at an exceptional historic moment when there are geographic changes on the global scene and we have to be prepared,” said June Soomer, from Saint Lucia and secretary general of the Association of Caribbean States.

“We are not going to resign ourselves to what others in the world dictate. We are not a mediocre region, we are one of excellence and peace,” Sooner added.

Cuban President Raul Castro also attended the meeting.

His foreign minister, Bruno Rodriguez, lit into U.S. President Donald Trump’s policies in his opening remarks and said the organization should come up with a joint response, as they threaten the development models of local economies.

“The excluding and repressive migration policies announced by countries of destination… as well as the implementation of extremely protectionist trade measures, are real challenges for our sub region,” he said.

“In the face of the walls intended to be built, our choice should continue to be unity, solidarity and cooperation to defend the most legitimate interests of our peoples,” he said.
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Economy

Panel Rules Venezuela Won’t Have to Pay $1.4B to ExxonMobil

By on Saturday, March 11, 2017

A World Bank arbitration panel has determined that Venezuela will not have to pay $1.4 billion to ExxonMobil for confiscating company assets during a wave of nationalizations.

 

ExxonMobil asked the bank’s investment dispute panel for $12 billion for the seizure of its Cerro Negro facilities in the Orinoco Basin under then-President Hugo Chavez. The panel awarded $1.4 billion, a decision that was appealed by Venezuela.

 

The Washington-based panel issued a ruling Friday that annulled most of a $1.6 million judgment against Venezuela. The decision was celebrated in Caracas, where the socialist government is facing a cash shortfall triggered by collapsing oil production in recent years.

 

A lawyer for Venezuela said the decision as “correct and courageous.”

ExxonMobil did not immediately respond to a request for comment.
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Science

Trump Nominee to Lead FDA Has Deep Ties to Drug Companies

By on Friday, March 10, 2017

U.S. President Donald Trump has chosen Dr. Scott Gottlieb, a conservative health policy expert with deep ties to the pharmaceutical industry, to lead the U.S. Food and Drug Administration, a White House official said Friday.

If confirmed by the Senate, Gottlieb would be in charge of implementing Trump’s plan to dramatically cut regulations governing food, drugs, cosmetics, dietary supplements and tobacco.

Gottlieb is well-known on Capitol Hill, where he has testified multiple times on hot-button health issues, including complex drug pricing matters, and is viewed favorably by drug companies and pharmaceutical investors. A former FDA official, Gottlieb also sits on the boards of pharmaceutical companies.

“Thank God it’s Gottlieb,” Brian Skorney, an investment analyst at Robert W. Baird, wrote in a research note. “We view this as a favorable development for the sector.”

Gottlieb, 44, is a resident fellow at the conservative American Enterprise Institute think tank and a partner at a large venture capital fund. He is a former FDA deputy commissioner who has frequently advocated a loosening of requirements needed for approval of new medical products.

“Scott knows how the agency works and he will move it forwards, though maybe not always in ways the agency is comfortable with,” said John Taylor, a lawyer and president of compliance and regulatory affairs with the consulting firm Greenleaf Health and a former acting FDA deputy commissioner.

Picked over O’Neill

Gottlieb was chosen over Jim O’Neill, a libertarian investor close to Silicon Valley billionaire Peter Thiel, a PayPal co-founder who now advises Trump on technology and science matters. O’Neill’s stated view that drugs should be approved before being proven effective generated widespread alarm.

 

Gottlieb, who declined to comment on the nomination, is unlikely to upend the FDA in the way O’Neill might have, but he is nonetheless expected to bring significant change, including moving the agency to increase flexibility in the clinical trial development process.

In this he will be supported by the recently passed 21st Century Cures Act, which instructs the FDA among other things to consider the use of “real world evidence” to support new drug applications. This could include anecdotal data, observational studies and patient reports.

“People don’t want to take chances with safety, but there’s increasingly some clamor to be more flexible on the efficacy side,” said Kathleen Sanzo, who leads the FDA practice at the law firm Morgan, Lewis & Bockius. “You need to have some signal of efficacy. The question is: How much?”

Generic therapeutics

One of Gottlieb’s priorities will most likely be to streamline the process for approving generic versions of complex, difficult-to-copy therapeutics. He has stated publicly that he does not believe the FDA has good tools or policies to move such products and has advocated the creation of different approval standards.

A survey conducted by Mizuho Securities USA Inc. of 53 pharmaceutical executives found that 72 percent favored Gottlieb over other potential candidates. Many described him as knowledgeable, experienced and balanced.

“He will be a pragmatic leader with an eye toward both expedited approvals and safety,” one executive wrote.

Others were less sanguine, citing his deep ties to industry, including his seat on multiple pharmaceutical company boards, as potential conflicts of interest.

Dr. Michael Carome, director of Public Citizen’s Health Research Group, said Gottlieb “has spent most of his career dedicated to promoting the financial interests of the pharmaceutical industry.” If confirmed, he added, “he will have to be recused from key decisions time and time again.”
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Technology

Nude Photo-sharing Scandal Rocks US Marine Corps

By on Friday, March 10, 2017

A Facebook group consisting of thousands of U.S. Marines and Marine veterans has shared nude photographs of women, including fellow Marines, through social media, prompting the U.S. military to launch an investigation into the incident.

The commandant of the Marine Corps, General Robert Neller, told reporters Friday at the Pentagon that when female Marines are subjected to cyberbullying, presumably by other Marines, it “undermines everything” the military branch stands for, as it protects and serves the country.

“There is no honor in denigrating a fellow Marine in any way, shape or form,” Neller said.

The general said fewer than 10 victims have come forward, but evidence provided by a reporter suggested that around 30 women have been victimized by the cyberbullying scandal.

Marine officials say they were informed about the Facebook site that is sharing the nude photos, known as the “Marines United” community page, on January 30. On February 1, the Marine Corps had the site taken down, but learned later about a link to Google Drive files that contained the nude photos. Some of the photos shared were taken without the women’s knowledge.

Neller said an investigation into the incident by the Naval Criminal Investigative Service (NCIS) is under way. In addition, Neller said the Marine Corps is setting up a task force to see what actions can be taken, and to come up with practices that both prevent this violation in the future and prevent the “subculture that gave rise to this.”

Secretary of Defense Jim Mattis released a statement Friday calling the “lack of respect for the dignity and humanity” of fellow military members “unacceptable and counter to unit cohesion.”

“We will not excuse or tolerate such behavior if we are to uphold our values and maintain our ability to defeat the enemy on the battlefield,” added Mattis, a former Marine general.

Neller told reporters he will testify on Capitol Hill about the incident next week. He also has planned to visit Camp Lejeune, in eastern North Carolina, one of the largest Marine bases on the U.S. East Coast.

Marine officials said they are working to ensure the victims’ privacy is protected as the investigation continues. There are reports that some Marines have continued to share the nude photos, despite the ongoing investigation.
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Technology

Tech and Hollywood Head to Texas SXSW Festival

By on Friday, March 10, 2017

Movie stars, tech moguls and music artists are among those converging in Austin, Texas, starting this week, as part of South by Southwest Conference and Festivals.

Known by its shorthand SXSW, the nine-day event, now in its 31st year, mixes music, film, comedy and digital entertainment, as well as technology and politics.

The event in the Texas capital, normally a low-key tech hub, has become an important nexus where the already successful mix with the aspiring. New movies premiere, music acts perform and startups pitch their wares. Twitter gained traction at SXSW in 2007, putting up flat-panel screens in the hallways.

But not every new tech or its CEO can call SXSW experience a success. Facebook CEO Mark Zuckerberg struggled through his keynote interview in 2008. Meerkat, a video streaming app that took off in SXSW 2015, quickly faded.

This year, among the actors, musicians and tech celebrities, Buzz Aldrin, the former astronaut who walked on the moon in 1969, will speak about human space exploration.

U.S. government officials and American politicians also come to mingle with the celebrities and tech executives. At last year’s SXSW, President Barack Obama and first lady Michelle Obama spoke to the festival-goers.

FBI Director James Comey was expected to speak at this year’s event, but he canceled. In his place, James Baker, the FBI’s general counsel, is scheduled to discuss the “intersection of national security, technology and First Amendment rights.”

On Sunday, Joe Biden, the former U.S. vice president, will speak about his work on cancer research as part of the Biden Cancer Initiative.

The intersection of politics and technology is one major theme this year, with SXSW organizers creating a “Tech Under Trump” series of discussions. Topics include immigration, self-driving cars and the effects that artificial intelligence may have on jobs. One panel, “Startup investing in the Trump years,” will look at how the Trump administration could affect the investment landscape.

Some panels tout how technology can be used to achieve goals such as helping people seeking faith. Yasmin Green, head of research and development at Jigsaw — a technology incubator that is part of Alphabet, Google’s parent company — will discuss how technology can be used to fight extremism.

Other sessions focus on bleaker possibilities, like how technology can potentially hurt people, such as robots taking jobs.

Ultimately, SXSW this year, as in the past, is a giant party with thousands of people looking for the next big thing.
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Science

Do You Trust Information You Don’t Want to Hear?

By on Friday, March 10, 2017

In America’s current polarized climate, social observers have noted, people tend to turn to news sources that reflect their political beliefs and avoid listening to anything that challenges them. But without a shared understanding of what’s going on, it becomes difficult, if not impossible, to achieve cooperation and compromise.

It is not only regarding politics that people avoid or ignore information that may be useful, according to a new study from Carnegie Mellon University. Dieters may choose to overlook how many calories there are in a rich dessert. People with a family history of a genetic disease may skip screening tests that could reveal whether their health is at risk.

Writing in the Journal of Economic Literature, the study’s authors explain how and why people deliberately avoid information that could threaten their happiness and well-being. “People often avoid information that could help them to make better decisions if they think the information might be painful to receive,” said George Loewenstein, who co-founded the field of behavioral economics.

Loewenstein and his colleagues found that when people cannot avoid encountering information that goes against their beliefs, they may discount it; they point to widespread disbelief and doubts about scientific evidence of climate change. By the same token, questionable evidence may be treated as credible if it confirms what someone wants to believe.

There can be understandable reasons for avoiding information. Not taking a genetic test could allow someone to enjoy life until illness can’t be ignored. Not following the stock market could keep investors from selling in a panic.

Co-author David Hagmann notes that “bombarding people with information that challenges their cherished beliefs … is more likely to engender defensive avoidance than receptive processing.”

To reduce the political divide, “we have to find ways not only to expose people to conflicting information, but to increase people’s receptivity to information that challenges what they believe and want to believe,” he said.
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Science

Kenya Firing Doctors in Dispute Over Collective Bargaining Agreement

By on Friday, March 10, 2017

A decision by the government to fire doctors who went on strike three months ago has left Kenya’s health care sector in crisis.

Kenyans remain in limbo after the two sides failed to agree on and sign documents that cover a range of issues, including better pay and working conditions for the doctors, improved health facilities and security for medical staff.

Peter Munya is the governor of the state of Meru and chairman of the council of governors. He says the government remains firm in its decision to penalize doctors who refuse to return to work.

“The decision we took still stands and I am told people are following the processes of laying off those who have not reported back to work,” said Munya. “I am told [disciplinary measures] have been given. So that is what we are implementing.”

12 medics fired

On Wednesday, the biggest hospital in the county, Kenyatta National Hospital, fired 12 medics and put 48 others on notice.

Kenyan media report a handful of physicians returned to work.  

Dr. George Got is with the union that represents the doctors. He said its national advisory council agreed to proposed amendments presented in a collective bargaining agreement (CBA) that now awaits the signatures of both parties.

“I can only confirm, we were told that the CBA would be signed with the amendments,” said Got. “I will not tell you exactly which amendments because that’s fairly confidential. So the third document to be signed is a formal return-to-work formula checking out the procedures of returning to work.”

Union remains optimistic

Got said the union had yet to receive word whether the government would sign the documents, but that union officials remained optimistic.

“The national advisory council remains committed, and so far we have not received any communication that those documents will not be signed.” Got said. “We are just waiting for our negotiators to brief us as when they sign, and they advise us to resume work; we already gave them our blessing, and we shall resume work.”

Governor Munya confirmed to VOA that changes were made to the previous collective bargaining agreement of 2013 in which doctors sought a pay raise of up to 180 percent. The government’s offer stands at 40 percent.

Foreign doctors may be hired

Munya says the government is considering hiring foreign doctors.

“We want to start working out the process of hiring doctors from outside the country, and the minister of health is already working on that,” Munya said. The minister “has spoken to friendly countries that can provide doctors, and he is also working on the legal framework to register these doctors locally.”

This is not the first time the government has announced the plan to fire doctors and bring in physicians from abroad.

The state plans to hire physicians from neighboring Tanzania as well as Cuba and India. Before that happens, an appeals court will have to rule on the matter.
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Science

WHO: Half a Million Africans Die From Cancer Annually

By on Friday, March 10, 2017

The World Health Organization says about half a million Africans die of cancer each year, or six percent of global cancer deaths annually.

The leading cancers in Africa affect the breast, cervix and prostate, according to WHO.

Dr. Andre Ilbawi, the technical officer for cancer control at WHO headquarters in Geneva, says the cause of the illness in Africa is not always clear, though factors that may contribute to breast cancer include alcohol use, obesity and lack of physical activity.

Weakened immune systems also play a role, making people susceptible to many infections and diseases, including the human papilloma virus, or HPV, which can cause cervical cancer.

“Women in Africa have a higher rate of HIV, which makes worse the effect of HPV,” Ilbawi said, “so we see the combination of infectious causes really can explain the majority of cervical cancer cases in Africa and elsewhere.”

Ilbawi says other infections, besides HPV, also can lead to cancer.

“We know the immune system plays a very important role in fighting cancer. And in some situations, infections can cause cancer themselves,” he said. “It’s not always as easy as saying malaria triggers cancer years down the line for someone exposed to malaria, but we do know there are some cause and effects for infectious causes of cancer in Africa. Some include hepatitis B and C, [which] contribute to liver cancer. … There are infections in the stomach that can contribute to gastric cancer … so infections both directly and by weakening the immune system can contribute to cancer cases.”

Early detection

Not all cancers are fatal, especially if detected early. The WHO is working to encourage governments to adopt measures that are low cost, but high impact, especially on the local, or primary care, level.

“Early diagnosis has a strategic position in health expenditures because if we are able to detect cancer early, then the costs of treatment are lower,” Ilbawi said. “We know from high-income countries that detecting cancer at stage one or two [out of four] reduces the cost of treatment between two- to four-fold in some settings.”

He also says earlier detection makes it likely that less toxic medications can be used.

WHO guidelines suggest inexpensive ways to improve cancer detection, beginning by educating the public and health workers on how to recognize potential symptoms.

“We need that provider to identify high-risk symptoms and say to a patient, ‘I understand you are having bleeding in your stool or a lump or mass that may be concerning to you. It could be many possible diseases. But what you need to do is get from the primary care level to the diagnostic facilities, where you can access biopsy and pathology to confirm whether it’s cancer,'” Ilbawi said.

“The first-level provider is critical because that’s where most patients go first. And we have to bring those providers into the health system for cancer — not just focus on high-cost treatment at a centralized facility when most people can’t get there, can’t afford those treatments or get there far too late,” he added.

Low-cost options

Other low-cost options include providing social workers and patient navigators who can help direct patients to facilities that provide blood and tissue testing — and treatment.

Ilbawi says therapies for cancer patients do not have to be costly. They might involve surgery, chemotherapy, and oral and hormonal treatments.

The WHO advises countries on how to improve cancer care, including insurance and other mechanisms that make treatment more affordable.

Ibawi says it’s a coordinated effort that includes governments, advocacy groups, the U.N. and donors. Together, they help identify where strategic investments can help improve health services and extend the lives of hundreds of thousands of people.
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Economy

U.S. Commerce Secretary Says NAFTA Talks to Launch Soon

By on Friday, March 10, 2017

U.S. Commerce Secretary Wilbur Ross says he hopes to launch formal talks to renegotiate the North American Free Trade Agreement with Mexico and Canada in a little more than three months.

Ross spoke with reporters in Washington Friday, saying he hopes to notify Congress in the next couple of weeks that the 90-day countdown to talks has begun. He spoke in a joint news conference with Mexican Economy Minister Ildefonso Guajardo.

Ross is obligated to formally notify Congress of his plans to renegotiate the deal; the letter he sends to Congress officially starts the process. If he carries through on his promise, talks would likely begin in early July.

Ross said any revision of NAFTA would either be two bilateral agreements with Mexico and Canada or one deal among all three countries.

At Friday’s news conference, Guajardo voiced his support for a trilateral deal, resembling the trade agreement now in place. Rather than separate U.S.-Mexico and U.S.-Canada discussions, he said all three nations should negotiate together.

“NAFTA is a trilateral agreement, and it would make a lot of sense to have trilateral discussions,” he said. He also noted that Mexico will be ready to start negotiations by the end of May.

In Houston, Texas, Canadian Prime Minister Justin Trudeau told reporters he is open to working with the Trump administration to revise NAFTA.

President Donald Trump has said he plans to renegotiate NAFTA because, he says, the United States has lost more than one-fourth of its manufacturing jobs to Mexico. But the nonpartisan Congressional Research Service reported in 2015 that NAFTA caused only a modest effect on job losses.

Ball State University in Indiana reported that trade deals like NAFTA were responsible for about 10 percent of factory job losses since the 1970s, while automation was responsible for 88 percent of factory job losses over the same period.

 
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Technology

Facebook Founder, Wife Expecting 2nd Child

By on Friday, March 10, 2017

Facebook founder and CEO Mark Zuckerberg and his wife are expecting their second child.

 

In a Facebook post, Zuckerberg says his wife Priscilla Chan is pregnant with a girl. The couple already has a 1-year-old daughter.

 

In his post, Zuckerberg writes that he’s happy his first daughter, Max, will have a sister. Zuckerberg says he grew up with three sisters and they taught him to learn from smart, strong women. He also says his wife grew up with two sisters.

 

Zuckerberg says he and his wife can’t wait to welcome the baby and do their best to raise another strong woman.

 
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Technology

What the CIA WikiLeaks Dump Tells Us: Encryption Works

By on Friday, March 10, 2017

If the tech industry is drawing one lesson from the latest WikiLeaks disclosures, it’s that data-scrambling encryption works, and the industry should use more of it.

 

Documents purportedly outlining a massive CIA surveillance program suggest that CIA agents must go to great lengths to circumvent encryption they can’t break. In many cases, physical presence is required to carry off these targeted attacks.

 

“We are in a world where if the U.S. government wants to get your data, they can’t hope to break the encryption,” said Nicholas Weaver, who teaches networking and security at the University of California, Berkeley. “They have to resort to targeted attacks, and that is costly, risky and the kind of thing you do only on targets you care about. Seeing the CIA have to do stuff like this should reassure civil libertarians that the situation is better now than it was four years ago.”

 

More encryption

 

Four years ago is when former NSA contractor Edward Snowden revealed details of huge and secret U.S. eavesdropping programs. To help thwart spies and snoops, the tech industry began to protectively encrypt email and messaging apps, a process that turns their contents into indecipherable gibberish without the coded “keys” that can unscramble them.

 

The NSA revelations shattered earlier assumptions that internet data was nearly impossible to intercept for meaningful surveillance, said Joseph Lorenzo Hall, chief technologist at the Washington-based civil-liberties group Center for Democracy & Technology. That was because any given internet message gets split into a multitude of tiny “packets,” each of which traces its own unpredictable route across the network to its destination.

 

The realization that spy agencies had figured out that problem spurred efforts to better shield data as it transits the internet. A few services such as Facebook’s WhatsApp followed the earlier example of Apple’s iMessage and took the extra step of encrypting data in ways even the companies couldn’t unscramble, a method called end-to-end encryption.

 

Challenges for authorities

 

In the past, spy agencies like the CIA could have hacked servers at WhatsApp or similar services to see what people were saying. End-to-end encryption, though, makes that prohibitively difficult. So the CIA has to resort to tapping individual phones and intercepting data before it is encrypted or after it’s decoded.

 

It’s much like the old days when “they would have broken into a house to plant a microphone,” said Steven Bellovin, a Columbia University professor who has long studied cybersecurity issues.

 

Cindy Cohn, executive director for Electronic Frontier Foundation, a group focused on online privacy, likened the CIA’s approach to ” fishing with a line and pole rather than fishing with a driftnet.”

 

Encryption has grown so strong that even the FBI had to seek Apple’s help last year in cracking the locked iPhone used by one of the San Bernardino attackers. Apple resisted what it considered an intrusive request, and the FBI ultimately broke into the phone by turning to an unidentified party for a hacking tool – presumably one similar to those the CIA allegedly had at its disposal.

 

On Wednesday, FBI Director James Comey acknowledged the challenges posed by encryption. He said there should be a balance between privacy and the FBI’s ability to lawfully access information. He also said the FBI needs to recruit talented computer personnel who might otherwise go to work for Apple or Google.

 

Government officials have long wanted to force tech companies to build “back doors” into encrypted devices, so that the companies can help law enforcement descramble messages with a warrant. But security experts warn that doing so would undermine security and privacy for everyone. As Apple CEO Tim Cook pointed out last year, a back door for good guys can also be a back door for bad guys. So far, efforts to pass such a mandate have stalled.

 

Still a patchwork

 

At the moment, though, end-to-end encrypted services such as iMessage and WhatsApp are still the exception. While encryption is far more widely used than it was in 2013, many messaging companies encode user data in ways that let them read or scan it. Authorities can force these companies to divulge message contents with warrants or other legal orders. With end-to-end encryption, the companies wouldn’t even have the keys to do so.

 

Further expanding the use of end-to-end encryption presents some challenges. That’s partly because encryption will make it more difficult to perform popular tasks such as searching years of emails for mentions of a specific keyword. Google announced in mid-2014 that it was working on end-to-end encryption for email, but the tools have yet to materialize beyond research environments.

 

Instead, Google’s Gmail encrypts messages in transit. But even that isn’t possible unless it’s adopted by the recipient’s mail system as well.

 

And encryption isn’t a panacea, as the WikiLeaks disclosures suggest.

 

According to the purported CIA documents, spies have found ways to exploit holes in phone and computer software to grab messages when they haven’t been encrypted yet. Although Apple, Google and Microsoft say they have fixed many of the vulnerabilities alluded to in the CIA documents, it’s not known how many holes remain open.

 

“There are different levels where attacks take place, said Daniel Castro, vice president with the Information Technology and Innovation Foundation. “We may have secured one level (with encryption), but there are other weaknesses out there we should be focused on as well.”

 

Cohn said people should still use encryption, even with these bypass techniques.

 

“It’s better than nothing,” she said. “The answer to the fact that your front door might be cracked open isn’t to open all your windows and walk around naked, too.”

 
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Science

Researchers: Fast Radio Bursts Could Power Alien Spaceships

By on Friday, March 10, 2017

Extremely brief but powerful radio bursts coming from billions of light years away could be evidence of an advanced alien civilization, according to a new paper.

Fast radio bursts, which are “millisecond-long flashes of radio emission” could be “leakage” from “planet-sized transmitters” that power alien spaceships over incredible distances.

“Fast radio bursts are exceedingly bright given their short duration and origin at great distances, and we haven’t identified a possible natural source with any confidence,” said theorist Avi Loeb of the Harvard-Smithsonian Center for Astrophysics. “An artificial origin is worth contemplating and checking.”

The bursts were first observed in 2007, and so far, fewer than two dozen have been detected using massive radio telescopes. They appear to originate from galaxies billions of light years away, researchers said.

For the paper, researchers tried to assess the feasibility of creating massive transmitters, determining that while it would be well beyond our technology, it would be within the realm of possibility, according to the laws of physics.

They also investigated whether such a device would be viable from an “engineering perspective,” with particular focus on how something that would need such massive amounts of energy would not melt. They said “a water-cooled device twice the size of Earth could withstand the heat.”

Researchers theorize that the use of such massive radio transmitters could be to power “interstellar light sails.” The power would be enough to push a ship of a million tons or about the same as 20 large cruise ships here on Earth.

“That’s big enough to carry living passengers across interstellar or even intergalactic distances,” said co-author Manasvi Lingam, also of Harvard.

In order to do that, the beam of energy would need to be focused constantly on the would-be ship. The reason we may only observe brief flashes here on Earth is that the “host planet, star and galaxy are all moving relative to us. As a result, the beam sweeps across the sky and only points in our direction for a moment.”

The paper was published in the Astrophysical Journal Letters.
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Economy

South African Taxi Drivers Hold Airport Protest Against Uber

By on Friday, March 10, 2017

South African taxi drivers on Friday blocked roads around Johannesburg’s main international airport to protest against ride-hailing company Uber, causing some passengers to miss their flights.

The protest by drivers with metered cabs, who say Uber unfairly siphons business from them, caused morning traffic jams on two highways near O.R. Tambo International Airport. Police later cleared the roads.

The impact of the blockade will continue “to be felt throughout the day due to earlier delays, particularly on flights that need to return to O. R. Tambo International Airport,” Airports Company South Africa, which manages the airport, said in a statement. “Airlines have informed the airport that passengers that missed flights in the morning are being accommodated on other flights.”

South African Airways urged passengers to arrive at the airport earlier than usual, even if they planned to fly later in the day.

In a statement, Uber said many South African drivers with metered taxis are also picking up customers with its ride-hailing app.

“Our technology is open and pro-choice and we are keen to offer it to a broad number of taxi drivers to boost their chances for profit,” said Uber, adding that threats and intimidation toward Uber drivers are unacceptable.

Meanwhile, some Uber drivers protested outside the company’s Johannesburg office on Friday, local media reported. That group of protesters reportedly said Uber does not do enough to address their safety concerns.

Taxi drivers in some other countries also have protested, sometimes violently, against Uber because of concerns over allegedly unfair competition.
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