Opposing Groups in California Team Up Against Trump

Before Donald Trump’s election, Laurence Berland viewed political protest as a sort of curiosity. He was in a good place to see it: San Francisco’s Mission District, once an immigrant enclave in the country’s heartland of radicalism that is increasingly populated by people like him — successful tech workers driving up rents while enjoying a daily commute to Silicon Valley on luxury motor coaches.

Berland regarded the activism of his adopted city with a mix of empathy and bemusement, checking out Occupy Wall Street demonstrations and protests against the gentrification of his own neighborhood. But now there is less distance between him and activists on the street.

On a recent day, Berland stood with about 100 others — from software engineers like himself to those who work in tech company cafeterias — outside a downtown museum for a rally against Trump. A clipboard-carrying organizer approached Berland to ask if he wanted to join a network of grassroots activists, but Berland waved him away. He had already signed up.

In the place that fought against the Vietnam War and for gay rights and, more recently, has been roiled by dissent over the technology industry’s impact on economic inequality, an unlikely alliance has formed in the left’s resistance against Trump. Old-school, anti-capitalist activists and new-school, free-enterprise techies are pushing aside their differences to take on a common foe.

For years, these two strands of liberal America have been at each other’s throats. There’ve been protests against evictions of those who can’t afford the Bay Area’s ever-soaring rents. And think back, not so long ago, to the raucous rallies to block those fancy buses shuttling tech workers from city neighborhoods to the Silicon Valley campus of Google, where Berland once worked.

Cat Brooks, a Black Lives Matter activist in Oakland, has seen the toll the tech industry has taken on some. Her daughter’s elementary school teacher just moved to a distant suburb after her rent skyrocketed, and Brooks thinks more tech money must find its way into local communities. She nevertheless welcomes the infusion of new energy to the protest arena.

“It’s not about the business of we were here first,” Brooks said. “We’re about the business of how can we support? Division at this time is not helpful.”

The tech industry opposition started when Trump imposed his initial travel ban on immigrants and refugees from seven majority-Muslim nations. The industry prides itself on its openness to immigrants, who comprise about one-quarter of the U.S. technology and science workforce and include the founders of iconic institutions.

Nearly 100 tech companies, including Google, Facebook and Uber, filed a court brief urging suspension of the ban, while Google co-founder Sergey Brin, a Russian immigrant, joined protests at San Francisco International Airport. That was followed by an unprecedented company-wide walkout at Google and now, on March 14, nationwide rallies are planned for a “Tech Stands Up” day of protest.

“People whose pedigree is knocking on doors and calling representatives and waving signs are getting together with people who design apps,” said Ka-Ping Yee, a software engineer from Canada who is a legal permanent resident of the U.S. and who works at a startup to help immigrants send cash home. “People are working with people who do really, really different things because they realize it’s an emergency.”

After the election he helped create an online pledge, signed by thousands of technology workers, against building databases for any potential Muslim registries or to aid deportations of immigrants.

Some aren’t so sure about sharing the streets because they don’t think they share the same goals.

Franki Velez, an Iraq War veteran on disability, stood outside an Oakland rental office recently with other longtime activists and renters fighting eviction. There was not a technology worker in sight, and she worried that they are missing the point anyway. They want to change, but preserve, a system that’s benefited them, she said, while protesters like her want to tear the system down and start from scratch.

“They don’t understand it’s a colonial system that’s never meant to be reformed,” she said.

Still, while their approaches can be strikingly different, Velez’s causes are increasingly being adopted by people not like her.

Velez’s group marched to a Wells Fargo branch to hand over a demand that the bank stop investing in the Dakota Access Pipeline. Two hours later, in the comfortable Silicon Valley suburb of Campbell, biotech executive Michael Clark drew cheers after telling a gathering of anti-Trump activists that he’d closed his Wells Fargo account to protest the pipeline.

Clark grew up in New Hampshire and then in Silicon Valley, when his mother took a job at Apple in the 1990s. He always considered himself a political independent, a moderate. But Trump’s election horrified him and, with a friend who runs a gourmet chocolate shop, he founded a chapter of the national liberal group “Indivisible” in Campbell.

“The country has moved so much to the right that puts me in the middle with people I wouldn’t have previously been aligned with,” Clark said. “It’s interesting that someone like me is on the same side as a lot of socialists.”

Trump Budget Plan Set to Spark Another Battle with Congress

U.S. President Donald Trump this week will unveil a budget expected to massively increase military spending while slashing other federal programs.

The proposal, set to be released Thursday, will offer the most detailed look yet at how Trump intends to move ahead with his so-called “America First” policy.

The budget will likely face significant opposition in Congress, where lawmakers are already bickering over a plan to overhaul the nation’s health care program.

Many of Trump’s fellow Republicans support his plan for a larger military; but, unlike Trump, some want to pay for it by cutting Social Security and Medicare – the two largest federal programs.

Democrats are alarmed about the entire proposal, particularly his plan to cut domestic government programs aimed at protecting the environment and helping the poor.

State Dept., foreign aid cuts

Lawmakers in both parties have also expressed concerns about Trump’s steep proposed cuts to the State Department and foreign aid budgets – a move they say will reduce U.S. influence abroad.

White House officials point out the president’s proposals are only a blueprint and that ultimately Congress must agree on a final budget, but they insist difficult decisions must be made.

“Unfortunately, we have no alternative but to reinvest in our military and make ourselves a military power once again,” White House National Economic Council Director Gary Cohn told Fox News Sunday.

“It’s no different than every other family in America that has to make the tough decisions when they need to spend money somewhere, they have to cut it from somewhere else,” Cohn said.

Defense spending

In a blueprint released last month, White House officials said Trump intends to boost the military budget by $54 billion – one of the largest ever increases in national defense spending. This week’s proposal will outline how the president intends to pay for it.

According to budget documents leaked to the media, Trump will offset the military costs with far-reaching reductions in discretionary spending — the part of the budget that pays for various federal government agencies.

Trump is reportedly considering slashing up to 25 percent of the Environmental Protection Agency budget, 30 percent of the Energy Department budget, and 37 percent of the State Department and foreign aid budget.

Reduction in federal workforce

If passed, those cuts would result in a massive reduction of the federal government workforce, which Trump and his fellow Republicans have long said is bloated and inefficient. It is not clear, however, whether Trump’s plans would actually fulfill his campaign promise to reduce the national debt.

That won’t be clear until May, when the White House releases its plans to reform the tax code and its proposals for mandatory spending, which covers existing programs like Medicare and Social Security.

Trump has said it is not politically possible to reduce spending on Medicare and Social Security – which together account for nearly 40 percent of the federal budget. He is also considering a $1 trillion infrastructure plan to upgrade the country’s roads, airports and rail lines.

According to most analysts, that means Trump will likely continue to run a budget deficit.

The federal debt is expected to grow by nearly $10 trillion over the next decade, according to a recent projection by the nonpartisan Congressional Budget Office.

 

‘Boaty McBoatface’ to Embark on First Mission

It’s not every day that an unmanned scientific submarine makes international headlines, but this sub is named Boaty McBoatface, and it is about to embark on its first mission.

The sub is operated by Britain’s National Environmental Research Council, which last year turned to the internet to name the group’s new $248 million research ship that is still under construction.

The online naming poll went viral, but NERC opted instead to name the ship the Royal Research Ship Sir David Attenborough, after the famous British naturalist.

Making sure not to anger the internet, NERC opted to use Boaty McBoatface for the drone sub.

Now, little Boaty is about to undertake its first mission, according to a NERC statement.

“Cute though it sounds, this unmanned submarine is part of a fleet of some pretty intrepid explorers,” it said. “This month they’ll begin their first mission, traversing a deep current that originates in Antarctica and flows through the Southern Ocean. They’ll be collecting data for the Dynamics of the Orkney Passage Outflow (DynOPO) project as they ‘fly’ through submarine waterfalls and rapids, shedding light on how global warming is changing our oceans.”

Boaty McBoatface will likely be operated from the RSS Sir David Attenborough when it is finished being built in 2019.

“Work continues on dry land for now, but she’ll be ready to ‘splashdown’ off the yard and into the blue early next year, whilst works will continue inside,” NERC said. “Then she’ll be taken for trials to make sure she’s seaworthy and her scientific equipment is working to perfection before she sets off for her first mission in 2019.”

Intel to Buy Israeli Technology Firm Mobileye for $15B

U.S. chipmaker Intel agreed to buy driverless technology firm Mobileye for $15.3 billion on Monday, positioning itself for a dominant role in the autonomous-driving sector after missing the market for mobile phones.

The $63.54 per share cash deal is the biggest technology takeover in Israel’s history and the largest purchase of a company solely focused on the self-driving sector.

Intel will integrate its automated driving group with Mobileye’s operations, with the combined entity being run by Mobileye Chairman Amnon Shashua from Israel.

Intel Chief Executive Brian Krzanich said the acquisition, which unites Intel’s processors with Mobileye’s computer vision, was akin to merging the “eyes of the autonomous car with the intelligent brain that actually drives the car.”

Mobileye accounts for 70 percent of the global market for driver-assistance and anti-collision systems. It employs 660 people and had adjusted net income of $173.3 million last year.

Intel said it expected the transaction to close within the next nine months and to immediately boost its non-GAAP earnings per share and free cash flow.

The price represents a premium of around 33 percent to Mobileye’s Friday closing price of $47 a share.

“It’s an area where the company (Intel) has had very little presence – the automotive market, and so this is a tremendous opportunity for them to get into a market that has significant growth opportunities,” said Betsy Van Hees, an analyst at Loop Capital Markets who has a “buy” rating on Intel shares.

“Mobileye’s technology is very critical … The price seems fair,” she added.

Because Mobileye’s Shashua will remain in charge and the combined entity will be based in Israel, analysts said they expected it to be far more difficult for rivals to mount a counter offer for Mobileye.

Shashua and two other senior Mobileye executives stand to do well by the deal: together they own nearly 7 percent of the company. Shmuel Harlap, Israel’s biggest car importer and one of Mobileye’s earliest investors, also holds a 7 percent stake.

Yossi Vardi, seen as the godfather of Israeli high-tech, said the deal was a big endorsement of the whole sector.

“I’m sure that this … will be a very important impetus to create a whole industry related to autonomous and connected vehicles (in the country),” he said.

Battle for self-control

Automakers and their suppliers have been expanding alliances in the race to develop self-driving cars, a sector that once seemed a science-fiction dream but is drawing closer to reality month after month.

Mobileye and Intel are already collaborating with German automaker BMW on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.

At the same time, Mobileye has teamed up with Intel for its fifth-generation of chips that will be used in fully autonomous vehicles that are scheduled for delivery around 2021.

While Intel is known for hardware chips and Mobileye for collision detection software, their merger promises to create the most complete portfolio of technologies needed for driverless vehicles, including cameras, sensor chips, in-car networking, roadway mapping, machine learning and cloud software, as well as the data-centres needed to manage all the data involved.

Last October, Qualcomm announced a $47 billion deal to acquire the Netherlands’ NXP, the largest automotive chip supplier, putting pressure on other chipmakers seeking to make inroads into the market for autonomous driving components, including Intel, Mobileye and rival NVIDIA.

The Qualcomm-NXP deal, which will create the industry’s largest portfolio of sensors, networking and other elements vital to autonomous driving, is expected to close later in 2017, subject to regulatory and shareholder approvals.

For a dozen years, Mobileye has relied on Franco-Italian chipmaker STMicroelectronics to produce chips that the Israeli company sells to many of the world’s top automakers for its current, third-generation of driver-assistance systems.

Mobileye’s relationships with automakers, leading suppliers and STMicroelectronics will continue uninterrupted, the companies said in their statement, and Mobileye’s current product roadmap will not be affected.

Founded in 1999, Mobileye made its mission to reduce vehicle injuries and fatalities. After receiving an investment of $130 million from Goldman Sachs in 2007, it listed on the New York Stock Exchange in 2014.

Vietnam to Test Trump on Signing Solo Trade Pacts

Vietnam will test U.S. President Donald Trump’s openness to one-on-one trade deals as it starts nudging Washington for an eventual agreement to replace its role in the defunct Trans Pacific Partnership (TPP).

Official media outlets in Vietnam say Prime Minister Nguyen Xuan Phuc told an American business delegation last week he was ready to visit the United States, and that he hoped to meet Trump for a discussion about trade, among other topics.

Vietnam depends heavily on factory exports, which are about 19 percent of a $200 billion economy.

“A trade agreement with the U.S., a very large market, would certainly bring some benefits, that’s clear,” said Marie Diron, senior vice president at Moody’s Investors Service in Singapore. “It would be about, kind of about anchoring these export markets with a trade agreement in place.”

Trump is not expected to prioritize free trade deals in the short term, analysts say, but he may someday consider them. Trade deals usually obligate signatories to cut tariffs on each other’s good or services.  

US companies eye Vietnam market

Nguyen may have a chance at working out a trade deal with the United States because American firms selling products such as fast food, mobile phones and even insurance want more access to Vietnam’s fast-growing middle class.

More than one-third of the country’s roughly 93 million people will be middle class or higher by 2020, according to a Boston Consulting Group study.

“You would expect the direction of goods coming from Vietnam to the U.S. picking up more sharply than the other way around,” said Rahul Bajoria, a regional economist with Barclays in Singapore.

But, he said, “it could be the case there might be some pressure from the large [American] industrial manufacturers like the aircraft manufacturers or train companies. All of them may be much more interested in exporting to Vietnam.”

The United States is Vietnam’s top export market, giving the Asian country a trade surplus last year, with exports worth $38.1 billion and imports of $8.7 billion.

But in January, imports increased 14.6 percent, pointing to a possible soft spot in Vietnam for Western brands. American names such as Apple, Dell and Starbucks are easy to find in cities such as the financial center Ho Chi Minh City.

“The U.S. could export to Vietnam, to a market that’s growing so fast, with 90 plus million people who are very brand conscious, where Western brands have a very high reputation,” said Vojislav Milenkovic, analyst with the business advisory BDG Insights in Ho Chi Minh City.

“You can see this every day on the street. You can see that people are trying to save and to buy high-quality products from the foreign countries,” he said.

But Vietnamese consumers still earn just half of their counterparts in China, Diron said. “For some companies, that could be a hurdle,” she said. China’s market is also much larger that Vietnam’s.

End of TPP

Leaders in Hanoi had hoped the TPP would give them access to the U.S. market plus 10 other countries, including Japan. Trump withdrew the United States from the TPP in January, saying it would hurt the country.

Because of the size of the U.S. economy, Trump’s withdrawal made it effectively impossible for other countries to keep the TPP alive.

Trump said shortly after taking office he could consider one-on-one free trade agreements instead of regional ones.

Japanese Prime Minister Shinzo Abe has said he is open to the idea of a bilateral trade pact with the United States, and members of the U.S. Congress advocate an agreement with Britain.

In a phone call after his election in November, Trump told Nguyen he wanted to strengthen ties with Vietnam and that he was willing to meet in the United States.

In exchange for trade favors, Trump might ask Vietnam to support the U.S. presence in the South China Sea where the United States is trying to resist Chinese maritime expansion, said Oscar Mussons, international business advisory associate with the Dezan Shira & Associates consultancy in Ho Chi Minh City.

Vietnam may need to wait out most of Trump’s current term before getting any trade deals, Bajoria cautioned.

Any deal takes time to negotiate, he said, and the U.S. government may try first to build its relations with China, the world’s number two economy after the United States. “I don’t think there’s scope for an FTA over the next 12 months,” Bajoria said.

Since Trump was elected, Vietnamese leaders afraid that the TPP would die began looking instead to other trade deals.

An agreement reached with the European Union in 2015 is due to take effect next year if it clears hurdles in the European bloc’s parliament.

China is also keen to bolster trade ties, but Vietnam hopes to avoid dependence on the long-time political rival that’s known for unloading cheap mass-produced goods in Vietnam at prices lower than what local companies can charge.

Scientists Race to Prevent Wipeout of World’s Coral Reefs

There were startling colors here just a year ago, a dazzling array of life beneath the waves. Now this Maldivian reef is dead, killed by the stress of rising ocean temperatures. What’s left is a haunting expanse of gray, a scene repeated in reefs across the globe in what has fast become a full-blown ecological catastrophe.

The world has lost roughly half its coral reefs in the last 30 years. Scientists are now scrambling to ensure that at least a fraction of these unique ecosystems survives beyond the next three decades. The health of the planet depends on it: Coral reefs support a quarter of all marine species, as well as half a billion people around the world.

“This isn’t something that’s going to happen 100 years from now. We’re losing them right now,” said marine biologist Julia Baum of Canada’s University of Victoria. “We’re losing them really quickly, much more quickly than I think any of us ever could have imagined.”

Even if the world could halt global warming now, scientists still expect that more than 90 percent of corals will die by 2050. Without drastic intervention, we risk losing them all.

“To lose coral reefs is to fundamentally undermine the health of a very large proportion of the human race,” said Ruth Gates, director of the Hawaii Institute of Marine Biology.

Coral reefs produce some of the oxygen we breathe. Often described as underwater rainforests, they populate a tiny fraction of the ocean but provide habitats for one in four marine species. Reefs also form crucial barriers protecting coastlines from the full force of storms.

They provide billions of dollars in revenue from tourism, fishing and other commerce, and are used in medical research for cures to diseases including cancer, arthritis and bacterial or viral infections.

“Whether you’re living in North America or Europe or Australia, you should be concerned,” said biologist Ove Hoegh-Guldberg, director of the Global Change Institute at Australia’s University of Queensland. “This is not just some distant dive destination, a holiday destination. This is the fabric of the ecosystem that supports us.”

And that fabric is being torn apart.

“You couldn’t be more dumb … to erode the very thing that life depends on — the ecosystem — and hope that you’ll get away with it,” Hoegh-Guldberg said. 

Corals are invertebrates, living mostly in tropical waters. They secrete calcium carbonate to build protective skeletons that grow and take on impressive colors, thanks to a symbiotic relationship with algae that live in their tissues and provide them with energy.

But corals are sensitive to temperature fluctuations, and are suffering from rising ocean temperatures and acidification, as well as from overfishing, pollution, coastal development and agricultural runoff.

A temperature change of just 1 to 2 degrees Celsius (1.8 to 3.6 degrees Fahrenheit) can force coral to expel the algae, leaving their white skeletons visible in a process known as “bleaching.”

Bleached coral can recover if the water cools, but if high temperatures persist for months, the coral will die. Eventually the reef will degrade, leaving fish without habitats and coastlines less protected from storm surges. 

The first global bleaching event occurred in 1998, when 16 percent of corals died. The problem spiraled dramatically in 2015-2016 amid an extended El Nino natural weather phenomenon that warmed Pacific waters near the equator and triggered the most widespread bleaching ever documented. This third global bleaching event, as it is known, continues today even after El Nino ended.

Headlines have focused on damage to Australia’s famed Great Barrier Reef, but other reefs have fared just as badly or worse across the world, from Japan to Hawaii to Florida.

Around the islands of the Maldives, an idyllic Indian Ocean tourism destination, some 73 percent of surveyed reefs suffered bleaching between March and May 2016, according to the country’s Marine Research Center.

“This bleaching episode seems to have impacted the entire Maldives, but the severity of bleaching varies” between reefs, according to local conditions, said Nizam Ibrahim, the center’s senior research officer.

Worst hit have been areas in the central Pacific, where the University of Victoria’s Baum has been conducting research on Kiritimati, or Christmas Island, in the Republic of Kiribati. Warmer water temperatures lasted there for 10 months in 2015-2016, killing a staggering 90 percent of the reef.

Baum had never seen anything like it.

“As scientists, we were all on brand new territory,” Baum said, “as were the corals in terms of the thermal stress they were subjected to.”

To make matters worse, scientists are predicting another wave of elevated ocean temperatures starting next month. 

“The models indicate that we will see the return of bleaching in the South Pacific soon, along with a possibility of bleaching in both the eastern and western parts of the Indian Ocean,” said Mark Eakin, coral reef specialist and coordinator of the National Oceanic and Atmospheric Administration’s Coral Reef Watch, which uses satellites to monitor environmental conditions around reefs. It may not be as bad as last year, but could further stress “reefs that are still hurting from the last two years.”

The speed of the destruction is what alarms scientists and conservationists, as damaged coral might not have time to recover before it is hit again by warmer temperatures.

But some may have a chance.

Last month, Hoegh-Guldberg helped launch an initiative called 50 Reefs, aiming to identify those reefs with the best chance of survival in warming oceans and raise public awareness. His project partner is Richard Vevers, who heads the XL Caitlin Seaview Survey, which has been documenting coral reefs worldwide.

“For the reefs that are least vulnerable to climate change, the key will be to protect them from all the other issues they are facing _ pollution, overfishing, coastal development,” said Vevers, who founded The Ocean Agency, an Australian organization seeking new technologies to help mitigate some of the ocean’s greatest challenges. If the reefs remain healthy and resilient, “they can hopefully become the vital seed-centers that can repopulate surrounding reefs.”

Nature itself is providing small glimmers of hope. Some of Kiritimati’s corals, for example, are showing tentative signs of a comeback.

But scientists don’t want to leave it to chance, and are racing ahead with experiments they hope might stave off extinction.

“We’ve lost 50 percent of the reefs, but that means we still have 50 percent left,” said Gates, who is working in Hawaii to breed corals that can better withstand increasing temperatures. “We definitely don’t want to get to the point where we don’t intervene until we have 2 percent left.”

Going a step further, she is also trying to “train” corals to survive rising temperatures, exposing them to sub-lethal heat stress in the hope they can “somehow fix that in their memory” and survive similar stress in the future.

“It’s probably time that we start thinking outside the box,” Gates said. “It’s sort of a no-win game if we do nothing.”

Saudi King Visits Japan, Seeks Help Diversifying Economy

King Salman and hundreds of business leaders from Saudi Arabia are in Japan for talks Monday mainly expected to focus on economic ties.

The visit is the first by a Saudi king in 46 years, though Salman visited more recently as crown prince.

Saudi Arabia is one of Japan’s biggest suppliers of crude oil, accounting for about a third of its total imports of oil from the Middle East.

The kingdom is striving to diversify its economy away from its heavy reliance on oil exports, and Salman is on a month-long tour of Asia to advance his kingdom’s economic and business interests.

Japan’s Chief Cabinet Secretary Yoshihide Suga told reporters Monday that Japan is willing to provide support for the economic power in the Middle East.

“We will discuss growth strategy, including our `Saudi Vision’ project,” he said, referring to Japanese collaboration with Vision 2030, a roadmap adopted by the kingdom last year for its development and economic objectives  

He did not confirm reports that the countries would agree to set up a special economic zone in Saudi Arabia.

Salman met with Japanese Foreign Minister Fumio Kishida and was to meet Prime Minister Shinzo Abe later Monday.

Reports say Japan plans to urge that Saudi Aramco, the state-run oil company that is being partially privatized, seek a share listing on the Tokyo Stock Exchange.

Separately, Saudi Arabia’s sovereign wealth fund and Japanese telecoms provider and energy company Softbank have joined forces in setting up a $25 billion private fund for technology investments.

Trade between the countries fell overall last year as oil prices dropped. Japan’s 2.1 trillion yen ($18.6 billion) in imports from Saudi Arabia in 2016, mostly oil and gas, dwarfed its exports of 546.3 billion yen ($4.8 billion). 

The delegation arrived late Sunday on about 10 aircraft. Officials said top hotels and car hire services would be busy handling the unusually large group during its four-day visit.

Salman’s stop in Japan follows visits to Indonesia and Malaysia. He is due to travel on to Brunei, China and the Maldives.

While seeking investment and help with Saudi industrialization and development of its services sector, Salman has also offered help. Earlier, he pledged $1 billion in development finance for Indonesia and closer cooperation for combating transnational crime such as human trafficking, terrorism and the drugs trade.

State Research Center: China’s Economy Set for Steady Growth

The risk of a steep slide in China’s economy has reduced, the head of a government research center said on Sunday, adding the country had moved through an “L-shaped” pattern of slowing to now “horizontal” growth.

China’s economy grew 6.7 percent last year, according to the government, the slowest pace in 26 years. The country met its growth target with support from record bank loans, a speculative housing boom and billions in government investment.

But as Beijing moves to cool the housing market, slow new credit and tighten its purse strings, China will have to depend more on domestic consumption and private investment.

The government last week trimmed its economic growth target to about 6.5 percent for this year. Li Wei, the director of the Development Research Center of the State Council, China’s cabinet, said many positive economic signs were emerging domestically and internationally, and the risk of a large slide in economic growth had “clearly lowered”.

China’s economic development has gone from a “downward stroke in the L-shape to the horizontal stroke,” the official Xinhua news agency said, citing Li’s comments on the sidelines of China’s annual session of parliament.

The horizontal trend points to long-term steady development, but does not eliminate the possibility of short-term fluctuations, or mean the economic transformation is complete, Li said.

“Our economy still has many difficulties to resolve, so we must prepare to respond to the emergence of possibly relatively large risks,” Li said.

Earlier on Sunday, a vice chairman of the state economic planner said China’s industrial output grew more than 6 percent in January and February, and that the survey-based unemployment rate in 31 major cities was about 5 percent for the two months.

National Development and Reform Commission (NDRC) Vice Chairman Ning Jizhe gave the approximations, which were in line with expectations for official data set to be issued on Tuesday.

Fixed asset investment growth kept pace with the final few months of last year, Ning said.

“China’s economic growth still mainly relies on domestic demand,” he said.

January and February data will be released together in a bid to smooth out seasonal factors caused by the timing of the long Lunar New Year holidays, which began in late January this year but fell in February last year.

China unexpectedly posted its first trade gap in three years in February as a construction boom pushed imports much higher than expected. That upbeat import reading reinforced the growing view that economic activity in China picked up in the first two months of the year.

Mexico Approves 4 Trademarks for Trump

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.” 

Two Critically Ill After Drinking Wolfsbane Tea

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.”

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

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.”

Wall Street Celebrates 8 Years of Bull Market 

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.

California Ready to Open Its Roads to Driverless Cars 

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.

Caribbean Nations Huddle in Havana on Migration, Trade

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.

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

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.

Trump Nominee to Lead FDA Has Deep Ties to Drug Companies

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.”

Nude Photo-sharing Scandal Rocks US Marine Corps

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.