U.S. President Donald Trump on Thursday signed a memo paving the way for major tariffs on Chinese imports. It’s part of Trump’s plan to crack down on China’s theft of intellectual property. But many U.S. farmers are worried the tariffs will prompt China to retaliate against their products. VOA’s Kane Farabaugh and Bill Gallo report on what some fear could be just the start of significant trade friction between Washington and Beijing.
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U.S. President Donald Trump signed a presidential memorandum on Thursday initiating actions to consider imposing tariffs on a long list of nearly 1,300 Chinese imported products worth about $60 billion.

The move could limit China’s ability to invest in the U.S. technology industry, setting the stage for a possible trade war with Beijing.

The decision to take action is a result of an investigation conducted by the U.S. trade representative to determine whether Beijing’s trade practices may be “unreasonable or discriminatory” and may be “harming American intellectual property rights, innovation or technology development.” After a seven-month investigation, the USTR’s office found the policies were in violation.

At the signing ceremony, Trump said, “We have a tremendous intellectual property theft going on.”

He said the U.S. wants reciprocal trade and tariff deals with China and other countries. “If they charge us, we charge them the same thing,” Trump said at the White House ceremony.

He also blamed the “unfair Chinese trade practices” for the U.S. trade deficit with China, which has reached a record $375 billion on his watch.

Campaign promises

Trump campaigned on promises to bring down America’s massive trade deficit — $566 billion last year — by rewriting trade agreements and cracking down on what he called abusive commercial practices by U.S. trading partners.

The investigation concluded that China “uses foreign ownership restrictions, including joint venture requirements, equity limitations and other investment restrictions to require or pressure technology transfer from U.S. companies to Chinese entities.”

Trade associations representing a wide range of the business community said they largely agreed with criticism of China’s intellectual property practices, but criticized the tariffs as a poor remedy that could ultimately harm U.S. businesses and raise prices for consumers.

Earlier this week, some of the largest American retailers and tech companies, including Walmart and Apple, urged Trump to carefully consider the impact the tariffs would have on consumer prices.

“As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices,” a coalition of more than 40 business groups, led by the Information Technology Industry Council, said Sunday in a letter to the president.

“As the industry closest to consumers, retailers know firsthand how high tariffs will hurt American families,” the letter continued.

The prospect of a trade war sent markets plummeting, with the Dow Jones industrial average closing down 724 points, almost 3 percent, its biggest drop in six weeks.

Global trade conflagration

Bloomberg Economics estimated a global trade conflagration could wipe $470 billion off the world economy by 2020.

As news of the impending announcement spread, China announced it was preparing tariffs of its own on U.S. soybeans, sorghum and live hogs.

“China will not sit idly to see its legitimate rights damaged and must take all necessary measures to resolutely defend its legitimate rights,” the Commerce Ministry in Beijing said in a statement on its website.

The Trump administration has said it is simply taking long overdue action following years of unfair Chinese trading practices that they argue previous administrations have insufficiently countered.

Peter Navarro, Trump’s hawkish top trade adviser, said that the administration had decided on the tariffs in lockstep and that the U.S. had opted to take tariff actions after dialogues with China over the past 15 years failed to change Chinese behavior significantly.

The tariffs will be subject to a 15-day comment period before the U.S. trade representative finalizes the move. Other measures, including new restrictions on Chinese investment in the U.S., will take longer.
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Stocks plunged Thursday after the Trump administration slapped sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world’s largest economies would escalate.

The planned sanctions include tariffs on $48 billion worth of Chinese imports as well as restrictions on Chinese investments. Trump said he’s taking those steps in response to theft of American technology, and the Chinese government said it will defend itself. Investors are worried that trade tensions would hurt U.S. companies and harm the world economy.

On Thursday they fled stocks and bought bonds, which sent bond prices higher and yields lower. With interest rates falling, banks took some of the worst losses. Technology and industrial companies, basic materials makers and health care companies also fell sharply.

Peter Donisanu, an investment strategy analyst for the Wells Fargo Investment Institute, said the risk of a damaging trade war is still low because the Trump administration is targeting specific goods that aren’t central to China’s economy. That could change if it puts tariffs on products like electronics or appliances imported from China.

“If the Trump administration really wanted to hurt China and start a trade war, then they would go after those larger sectors,” he said. Still, Donisanu said that after last year’s rally, investors are looking for new reasons to feel optimistic about stocks. With trade tensions in focus over the last month, they’ve had trouble finding any.

The S&P 500 index skidded 68.24 points, or 2.5 percent, to 2,643.69. The Dow Jones industrial average sank 724.42 points, or 2.9 percent, to 23,957.89. The Nasdaq composite gave up 178.61 points, or 2.4 percent, to 7,166.68. The Russell 2000 index of smaller-company stocks lost 35.43 points, or 2.2 percent, to 1,543.87.

Construction equipment maker Caterpillar fell $8.90, or 5.7 percent, to $146.90, for its worst loss since mid-2016. Aerospace company Boeing slid $17.49, or 5.2 percent, to $319.61.

Investors also sold some of the market’s biggest recent winners. Among technology companies, Microsoft fell $2.69, or 2.9 percent, to $89.79 and Alphabet, Google’s parent company, fell $40.85, or 3.7 percent, to $1,053.15. Online retailer Amazon slid $36.94, or 2.3 percent, to $1,544.92.

Recent tariffs

Earlier this month the Trump administration ordered tariffs on imported steel and aluminum, and stocks dropped as investors worried about the possibility of tougher restrictions on international trade and smaller profits for corporations.

Their fears eased when the administration said some countries will be exempt from the tariffs. That continued Thursday, as U.S. Trade Representative Robert Lighthizer said the tariffs won’t apply to the European Union, Canada, Mexico, Argentina, Brazil and Australia.

Donisanu, of Wells Fargo, said the Trump administration isn’t hostile to trade necessarily, but wants to get other countries to revise the terms of America’s trade deals.

“This is probably intended to get China to get more serious in discussions around violations of intellectual property rights and addressing those issues,” he said.

Bond prices climbed, sending yields lower. The yield on the 10-year Treasury note slipped to 2.82 percent from 2.88 percent. Falling bond yields are bad for banks because they force interest rates on loans lower. Bank of America lost $1.32, or 4.1 percent, to $30.55 and JPMorgan Chase gave up $4.79, or 4.2 percent, to $109.95.

Utility companies and real estate investment trusts moved higher. When bond yields decline, investors often bid up those stocks and others that pay big dividends.

The decline in rates comes a day after the Federal Reserve raised interest rates and said the U.S. economy and the job market continued to improve over the last two months. The Fed expects to raise rates three times this year, although some investors think a fourth increase is possible. The Fed also said it might raise rates three more times next year instead of two.

Overseas markets closed mostly lower.
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U.S. President Donald Trump signed a document Thursday setting the stage for an estimated $60 billion in new tariffs on Chinese imports that could quickly lead to a trade war with Beijing.

The U.S. leader targeted China’s alleged years-long theft of U.S. intellectual property, imposing new restrictions on Chinese investment in the U.S. that mirror regulations that American companies face when they invest in China.

“We have a tremendous intellectual property theft going on,” Trump said.

He said the U.S. wants reciprocal trade and tariff deals with China and other countries.

“If they charge us, we charge them the same thing,” Trump said at the White House.

Trump, throughout his 14-month presidency, often has praised Chinese President Xi Jinping and cited his good relationship with him. But Trump also has often complained about the U.S.’s $375 billion annual trade deficit with China as reason enough to impose new restrictions. Trump said that with the increased tariffs he hopes to cut the trade deficit with China by $100 billion annually.

China will retaliate

Ahead of Trump’s announcement, China vowed that it would retaliate.

“China will not sit idly to see its legitimate rights damaged and must take all necessary measures to resolutely defend its legitimate rights,” the Commerce Ministry in Beijing said in a statement.

The prospect of a trade war between the world’s two biggest economies rattled stock markets in the U.S., with the Dow Jones Industrial Average of 30 key stocks falling more than 1.5 percent.

 The U.S. trade actions come partly in response to what U.S. officials say is the theft and improper transfer of American technology to Chinese companies.

The Chinese commerce ministry said ahead of the meeting that China opposes unilateral U.S. trade actions and hopes the two countries can find a mutually beneficial solution through dialogue.

U.S. officials spoke to reporters Wednesday about their months-long investigation under Section 301 of the Trade Act of 1974 of Beijing’s trade practices.

China has long been considered by many in the international community to have contravened fundamental principles of global trade, despite joining the World Trade Organization in 2001.

There have been a “number of specific failings by China to live up to its WTO obligations,” a U.S. Trade Representative official said in a background briefing for reporters.

WATCH: What is a tariff?

Section 301 trade tool

The last time the Section 301 trade tool was wielded was two decades ago by the administration of President Bill Clinton against Japan to pry open that country’s automotive sector.

China has been “ripping off” the United States, Trump has emphasized numerous times in public remarks during which he has harshly criticized his predecessors for not doing anything about it.

Trump in January hit the Chinese-dominated solar panel and cell industry with tariffs. Earlier this month, he launched global tariffs on steel and aluminum (from which Canada and Mexico were quickly given indefinite exemptions), a move China’s commerce ministry said it “strongly opposed.”

Bracing for an anticipated harsh reaction from China against Trump’s announcement, one U.S. official said, “We recognize the potential gravity of the situation here.”

Depending on the severity of the measures taken by Trump, stock markets in Asia and elsewhere could be roiled, according to market analysts.

Trade groups representing American retail giants, such as Walmart, and tech companies, including Apple, warn that sweeping tariffs would raise prices for consumers in the United States and might not do much to reduce the trade deficit.

Ken Bredemeier contributed to this report
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U.S. Federal Reserve officials voted to raise the central bank’s benchmark interest rate by a quarter of a percent this week, signaling perhaps three or more rate hikes this year as economic conditions improve. But as Mil Arcega reports, rising rates mean higher borrowing costs for consumers, many who have yet to see a significant increase in wages.
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U.S. President Donald Trump is expected at any time to fire a salvo directly at China in what could escalate into a full-scale trade war between the world’s two largest economies.

Trade actions against China, partly in response to the theft and improper transfer of American technology to Chinese companies, are expected to be announced by Trump as soon as Thursday. His schedule includes a midday signing of a memorandum “targeting China’s economic aggression.”

On the anticipated eve of the measures, U.S. officials spoke to reporters about their monthslong investigation under Section 301 of the Trade Act of 1974 of Beijing’s trade practices.

China has long been considered by many in the international community to have contravened fundamental principles of global trade, despite joining the World Trade Organization in 2001.  

There have been a “number of specific failings by China to live up to its WTO obligations,” said an official of the U.S. Trade Representative in a Wednesday background briefing for reporters.  

The briefing and other comments not for attribution by officials are seen as clear signals the administration, in response to an Aug. 14 memo by Trump, intends to use the Section 301 trade tool.

The last time it was wielded was by the Clinton administration against Japan to pry open that country’s automotive sector.

‘Ripping off’

China has been “ripping off” the United States, Trump has emphasized numerous times in public remarks during which he has harshly criticized his predecessors for not doing anything about it.  

According to published reports, Trump is expected to impose tariffs, valued at tens of billions of dollars, on a number of Chinese products. Sources say that in addition to tariffs, restrictions on Chinese investment in the United States are likely as a response to Beijing using state funds and enterprises under the government’s control to purchase intellectual property here.

Trump in January hit the Chinese-dominated solar panel and cell industry with tariffs. Earlier this month, he launched global tariffs on steel and aluminum (from which Canada and Mexico were quickly given indefinite exemptions), a move China’s commerce ministry said it “strongly opposed.”   

U.S. Trade Representative officials on Wednesday declined to specify what new actions will be taken, but they did not disagree that an announcement is expected as soon as Thursday.

“We’re getting very close,” said a USTR official speaking to reporters on condition of not being named. “The president will have the final say.”

Bracing for an anticipated harsh reaction from China, the official noted, “We recognize the potential gravity of the situation here.”

Depending on the severity of the measures taken by Trump, stock markets in Asia and elsewhere could be roiled, according to market analysts.

Trade groups representing American retail giants, such as Walmart, and tech companies, including Apple, warn that sweeping tariffs would raise prices for consumers in the United States and might not do much to reduce the trade deficit.
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U.S. congressional leaders have reached a deal on a $1.3 trillion spending bill as a budget deadline looms.

Lawmakers now have until midnight Friday to approve it and prevent the year’s third government shutdown. Passage of the massive bipartisan effort seems certain.

The bill, which will keep the government funded until the end of September, has President Donald Trump’s support, the White House said in a statement released Wednesday.

“The president had a discussion with (House) Speaker (Paul) Ryan and (Senate) Leader (Mitch) McConnell, where they talked about their shared priorities secured in the omnibus spending bill,” said White House Press Secretary Sarah Huckabee Sanders.

Deadline late Friday

The bill will give Trump a huge budget increase for the military, including a 2.4 percent pay raise for military personnel.

It also will include a measure strengthening the federal background check system for gun purchases.

WATCH: Federal Budget Explainer

The “Fix NICS” measure would provide funding for states to comply with the existing National Instant Criminal Background Check system and penalize federal agencies that don’t comply.

It also will include money to improve school safety, including money for training school officials and law enforcement officers on how to identify signs of potential violence and intervene early, installing metal detectors and other steps to “harden” schools to prevent violence.

GOP aides said that Trump will win $1.6 billion for a wall and physical barriers along the U.S.-Mexico border. But Trump would be denied a far larger $25 billion request for multiyear funding for the project.

To the Democrats’ disappointment, the bill makes no mention of protections for so-called Dreamers, undocumented immigrants brought to the United States as children.

No insurer subsidies

It also won’t provide subsidies to health care insurers who cut costs for low-earning customers. And it won’t have federal payments for carriers to help them afford to cover their costliest clients.

Both parties touted the $4.6 billion in total funding to fight the nation’s opioid addiction epidemic and a record $3 billion increase for medical research at the National Institutes of Health.

The House is expected to vote on the bill by Thursday, followed quickly by the Senate, to meet Friday’s midnight deadline.
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When Nestle executive Stephan Canz attended the German school in Nairobi in the early 1980s, it was surrounded by lush coffee farms.

Today, the trees have long since been uprooted and replaced by a shopping mall and upmarket homes, driving a sharp drop in

production of Kenya’s premium beans.

“The coffee has disappeared,” said Canz, who co-manages Swiss-based Nestle’s partnerships with coffee farmers globally. “You have to go almost to the slopes of Mount Kenya to find coffee.”

Kenya accounts for just 1 percent of the global crop, but its high-quality arabica beans are sought-after for blending with other varieties.

Alarmed by a steep drop in the country’s production, Nestle, which buys 10 percent of the world’s coffee and has the leading packaged coffee business, is working with farmers to guarantee its supplies.

In a $1 million project, begun in 2010, it says it is boosting bean production and quality.

Mary Wanja, with 350 coffee trees on her plot in rural Kirinyaga at the foot of Mount Kenya, is one of more than 40,000 of Kenya’s 600,000 coffee farmers participating in the project.

She harvested 1,200 kg of coffee last year, double the previous year, and saw her annual earnings rise to 100 shillings ($0.99) per kg, from 70 shillings.

“We are planting more trees so we can harvest more,” she said, standing amid newly planted seedlings provided by the Nestle project, which she joined three years ago.

Multiplier effect

Since Kenya’s production peaked at 129,000 tonnes in 1988/89 it has dropped steadily due to poor management and global price swings. Farmers have switched crops or sold their land.

Nestle, which is counting on growth in its coffee business as it overhauls its business to improve performance, works with a local milling and marketing company, Coffee Management Services (CMS), to train farmers regularly on fertilizer application, pest and disease control. It provides seedlings for farmers wishing to plant more.

“People didn’t know how and when to apply fertilizer properly. Nestle has taught us a lot,” said William Njeru, a farmer who harvested 7,600 kg last year, up from around 1,200 kg a year before he joined the project five years ago.

“If we can have other partners who are doing what Nestle is doing, the multiplier effect on productivity in Kenya can be very high,” said Peter Kimata, deputy head of Nestle’s partner CMS.

A half hour drive up the road from his office sits an abandoned coffee factory with rusting machinery.

Farmer Moses Wachira says it was closed in 2013 after its management embezzled farmers’ money. That forced 500 farmers to start selling their coffee to brokers who offer lower prices.

“These problems are causing production to fall because nobody watches to ensure managers do not misappropriate farmers’ money,” said the white-bearded farmer.

Kenya’s harvest fell 12 percent in the 2016/17 season to 40,700 metric tonnes, according to government data.

Government efforts to revive the sector have faltered. Last year, a judge stopped the government from acting on the recommendations of an official report on ways to boost coffee production after farmers claimed they were not consulted.

Some Kenyan farmers will miss out on expanding the crop to meet 2-3 percent annual growth in global demand for coffee, according to Nestle, as consumers discover new ways of consuming coffee, including capsules and cold brews.

Demand for coffee is also growing locally.

In Kenya, cafe chain Java, owned by Dubai-based private equity firm Abraaj, opened its first shop in 1999 and has grown to 68 retail outlets, as an emerging middle class and young professionals develop a taste for lattes and mocha.

“The coffee has to come from somewhere,” said Canz.

 
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French commuters face major train service disruptions on Thursday due to an unexpectedly large walkout by railway workers angry at the government’s plans to shake up the state-owned and highly indebted SNCF rail company.

Labor unions said last week they would launch rolling strikes in early April, but France’s transport minister said many were planning to join a wider day of public service protests on Thursday, reducing rail services by 50 percent.

“There will ultimately be serious disruption tomorrow,” Transport Minister Elisabeth Borne said.

Unions are on a collision course with the government over its plans for the biggest shake-up of SNCF (Societe Nationale des Chemins de Fer) since the nationalization of the railways in the 1930s. Among the government’s plans are the trimming of benefits received by SNCF’s 260,000 employees and a cut in its 45 billion euro ($56 billion) debt.

The showdown was due to start with strikes two days a week over three months from April 3. It is shaping up as the biggest test of Emmanuel Macron’s presidency since the 40-year-old came to power last May on a promise of sweeping economic reforms.

Thursday’s stoppages are not part of the programmed rolling strikes. They are being organized to dovetail with a day of demonstrations by civil servants and public service employees opposed to plans to change the retirement system.

Minister Borne said the stoppages would halve regional rail services nationally and that high-speed TGV connections between major cities would be cut to 40 percent of normal levels.
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Peter G. Peterson, a billionaire and business executive who became one of the most prominent voices to argue for entitlement reform and reducing the U.S. national debt, died of natural causes early Tuesday, his family said. He was 91.

Born in the small town of Kearney, Nebraska, to Greek immigrants, Peterson was CEO of two major U.S. companies and co-founded one of the world’s largest private-equity firms.

He was a national figure in business by the early 1960s, serving as chairman and CEO of Bell and Howell, one of the largest manufacturers of movie cameras at the time.

He left Bell and Howell to work for the Nixon administration in the early 1970s, eventually serving as secretary of commerce from 1972 to 1973.

Lehman Brothers 

He took over as chief executive of the investment bank Lehman Brothers in 1973 after leaving the Nixon administration. In 1985, he co-founded the private-equity firm Blackstone Group with Stephen Schwarzman.

“His intelligence, wit and vision made him an inspirational leader who brought people together from the White House to Wall Street,” his family said in a statement.

Blackstone went on to become one of biggest private-equity firms in the world, with $434 billion in assets under management at the end of last year. When the firm went public in 2007, Peterson’s stake in the company made him a billionaire. His wealth was estimated at $2 billion, according to Forbes Magazine.

Fiscal challenges

Peterson dedicated the rest of his life to what he called “key fiscal challenges threatening America’s future,” donating $1 billion to create the Peter G. Peterson Foundation in 2007.

He never publicly endorsed the fiscal ideals of the Tea Party. However, his ideas did give him some common ground with them.

He long argued that the United States’ entitlement programs, principally Medicaid, Medicare and Social Security, had to be restructured or benefits cut back to avoid bankrupting the government. Through his foundation, he disseminated his ideas among the public and politicians.

“The fact he was able to start a serious debate about the future of Social Security and other entitlement programs was a huge accomplishment,” said Fred Bergsten, founder of the Peterson Institute for International Economics, who worked with Peterson in various capacities going back to the 1970s.

Raising taxes

Peterson was not considered ideological when it came to dealing with Social Security and Medicare. A life-long Republican, he still believed that raising taxes should be considered as part of any major restructuring of the U.S. budget, Bergsten said.

The foundation quickly became a major voice on all budget-related matters, repeatedly quoted in national media outlets. In 2008, his organization helped bankroll the documentary “I.O.U.S.A,” with the goal of making the federal government’s ballooning national debt, then around $10 trillion, a central campaign issue.

“What is most significant is most of our challenges are not really being discussed,” Peterson told The Associated Press in 2008 when he created his foundation. “I’ve been a very lucky beneficiary of the American dream as the son of immigrants. And, the more I look at some of these problems, the more persuaded I am they will pose a serious threat to this country.”

Peterson is survived by his wife, Joan Ganz Cooney, who co-founded the Children’s Television Workshop, and children John Peterson, Jim Peterson, David Peterson, Holly Peterson and Michael Peterson, and nine grandchildren.
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Nearly 50 countries expressed concern on Tuesday about the “serious threat” to the World Trade Organization posed by unilateral trade actions, a pointed reference to U.S. import tariffs that have caused a global outcry.

Delivering concluding remarks after a two-day informal meeting of the WTO members in New Delhi, Indian Trade Minister Suresh Prabhu did not refer to the United States by name.

He said members expressed deep concern over the “serious threat” posed to the credibility of the WTO, particularly on its principle of “non-discrimination” following the cycle of recent unilateral trade measures.

“In some interventions, the need for WTO members taking urgent and coordinated action to address the underlying issues was highlighted,” Prabhu said.

“It was recognized by almost all the participants that it is the collective responsibility of WTO members to address the challenges facing the system and putting it back on a steady and meaningful way forward so that it continues to serve the people of our countries.”

Calling for a united front to respond to the U.S. tariffs, WTO Director General Roberto Azevedo said the recent unilateral trade measures have the potential to escalate tensions.

“We heard today, many, many countries saying we have a concern over this. There is a potential of escalation. We should try to work in the framework of WTO,” Azevedo said.

Separately, Prabhu told reporters that the United States was committed to the World Trade Organization, even though Washington has raised concerns about the functioning of the WTO and asked for reforms.

U.S. President Donald Trump has pressed ahead with import tariffs of 25 percent on steel and 10 percent for aluminum, but exempted Canada and Mexico and offered the possibility of excluding other allies, backtracking from an earlier “no-exceptions” stance.

Prabhu also said India will bilaterally discuss import curbs on steel with the United States.

 
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The European Union said on Tuesday that the right of citizens from poorer member states to work in richer ones on a low salary would be limited to 18 months under a reform of the bloc’s labor laws sought by France.

The new law, promoted by French President Emmanuel Macron and backed by Luxembourg, Belgium and the Netherlands, among others, would rein in current rules on the so-called posting of workers, which richer EU states say undercut their labor markets.

Poorer EU states from Spain to Poland have opposed the change, saying their citizens should be allowed to work in a wealthier state on a lower salary than a worker from the host country under the bloc’s competition rules.

The deal, which had been tentatively agreed earlier this month, also introduces a two-year transition period. It is likely to be finally endorsed in April in a session in which Poland and Hungary expect to be outvoted.

Under the incoming rules, posted workers would start earning the host country salary after the maximum period allowed.

The European Parliament on Tuesday hailed the deal as a way to ensure “equal pay for equal work” but Poland’s Deputy Foreign Minister Konrad Szymanski said it was a case of more powerful EU states like France imposing their will on the others.

“Such initiatives undermine the European project because they undermine its fundamental elements – the single market, the freedom to provide services, the freedom of movement for workers,” he told reporters.

“Unfortunately, member states have not gathered enough resolve to tame such ideas.”

An estimated 2 million posted workers in the EU currently make up only a tiny fraction of the bloc’s workforce, but the issue has become politically highly sensitive.

 
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The Weinstein Co. filed for bankruptcy protection on Monday with a buyout offer in hand from a private equity firm, the latest twist in its efforts to survive the sexual misconduct scandal that brought down co-founder Harvey Weinstein, shook Hollywood and triggered a movement that spread out to convulse other industries.

The company also announced it was releasing any victims of or witnesses to Weinstein’s alleged misconduct from non-disclosure agreements preventing them from speaking out. That step had long been sought by New York Attorney General Eric Schneiderman, who filed a lawsuit against the company last month on behalf of its employees.

“Since October, it has been reported that Harvey Weinstein used non-disclosure agreements as a secret weapon to silence his accusers. Effective immediately, those ‘agreements’ end,” the company said in a statement. “No one should be afraid to speak out or coerced to stay quiet.”

In a statement, Schneiderman praised the decision as “a watershed moment for efforts to address the corrosive effects of sexual misconduct in the workplace.” 

The movie and TV studio becomes the first high-profile company to be forced into bankruptcy in the nationwide outcry over workplace sexual misconduct. Dozens of prominent men in entertainment, media, finance, politics and other realms have seen their careers derailed, but no other company has seen its very survival as tightly intertwined with the fate of one man as the Weinstein Co. 

Some 80 women, including prominent actresses, have accused Harvey Weinstein of misconduct ranging from rape to harassment. Weinstein, who was fired as his company’s CEO in October, has denied any allegations of non-consensual sex.

The Weinstein Co. said it has entered into a “stalking horse” agreement with an affiliate of Dallas-based Lantern Capital Partners, meaning the equity firm has agreed to buy the company, subject to approval by the U.S. Bankruptcy Court in Delaware. 

Lantern was among a group of investors that had been in talks for months to buy the company outside of bankruptcy. That deal was complicated when Schneiderman filed his lawsuit, citing concerns that the sale would benefit executives accused of enabling Weinstein’s alleged misconduct and provide insufficient guarantees of compensation for his accusers. Talks to revive the sale finally fell apart two weeks ago when the group of buyers said they had discovered undisclosed liabilities.

The Weinstein Co. said it chose Lantern as a potential buyer because the firm was committed to keeping on the studio’s employees as a going concern.

“While we had hoped to reach a sale out of court, the Board is pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims,” said Bob Weinstein, who co-founded the company with his brother Harvey in 2005 and remains chairman of the board of directors.

Lantern co-founders Andy Mitchell and Milos Brajovic said they were committed to “following through on our promise to reposition the business as a pre-eminent content provider, while cultivating a positive presence in the industry.”

Under bankruptcy protection, civil lawsuits filed by Weinstein’s accusers will be halted and no new legal claims can be brought against the company. Secured creditors will get priority for payment over the women suing the company.

Schneiderman’s lawsuit will not be halted by the bankruptcy filing because it was filed by a law enforcement agency. Schneiderman said his investigation would continue and that his office would engage with the Weinstein Co. and Lantern to ensure “that victims are compensated, employees are protected moving forward, and perpetrators and enablers of abuse are not unjustly enriched.”

Other bidders also could emerge during the bankruptcy process, particularly those interested in the company’s lucrative 277-film library, which includes award-winning films from big-name directors like Quentin Tarantino and horror releases from its Dimension label. Free of liabilities, the company’s assets could increase in value in a bankruptcy.

In more fallout over the scandal, New York’s governor directed the state attorney general to review a decision by the Manhattan district attorney’s office not to prosecute a 2015 case involving an Italian model who said Weinstein groped her.

The bankruptcy process will bring the company’s finances into public view, including the extent of its debt. The buyers who pulled out of the sale earlier this month said they discovered up to $64 million in undisclosed liabilities, including $27 million in residuals and profit participation. Those liabilities came on top of $225 million in debt, which the buyers had said they would be prepared to take on as part of a $500 million acquisition deal.

The Weinstein Co. already had been struggling financially before the scandal erupted in October with a news stories in The New York Times and The New Yorker. Harvey and Bob Weinstein started the company after leaving Miramax, the company they founded in 1979 and which became a powerhouse in `90s indie film with hits like “Pulp Fiction.” After finding success with Oscar winners “The Artist” and “The King’s Speech,” the Weinstein Co.’s output and relevance diminished in recent years. The company let go 50 employees in 2016 and continuously shuffled release dates while short of cash.

Last year, the studio sold distribution rights for the movie “Paddington 2” to Warner Bros. for more than $30 million. 
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Colombia proposed on Monday that the International Monetary Fund provide assistance to help several hundred thousand Venezuelan refugees who have fled an economic and political crisis to  neighboring countries, officials at the G20 summit said.

The proposal was discussed at a meeting on Venezuela by leading finance ministers from the Western Hemisphere, the European Union and Japan, including U.S. Treasury Secretary Steven Mnuchin.

“The consensus is that the situation is extremely negative and we must by any means possible try to influence a solution to the problem and a change in Venezuela’s situation, mainly from the humanitarian point of view,” Brazilian Finance Minister Henrique Meirelles told reporters.

The fund, to be decided by the IMF next month, would only be used outside Venezuela and not by socialist President Nicolas Maduro’s “regime,” he said.

More than 500,000 Venezuelans have crossed into Colombia and 40,000 have left for Brazil as an economic meltdown worsened and opposition hopes of fair elections faded.

There were an estimated 886,000 Venezuelan migrants in South America in 2017, up from around 89,000 in 2015, the International Organization for Migration said in February.

An IMF spokesperson said of the proposal: “We look forward to subsequent discussions in which we would be involved.”

Mnuchin offered to host a follow-up meeting of the finance ministers on the margins of the World Bank/IMF Spring meeting in Washington, in April, a Treasury spokesperson said.

“The focus was on coordinating economic measures to achieve democratic political objectives in Venezuela, addressing the economic and humanitarian tragedy, and constructive responses once Venezuela allows free, fair and regular elections,” he said.

Colombia’s government was preparing a statement on the proposal, a finance ministry official said in Bogota.

The countries concerned with the Venezuelan situation also discussed sanctions and debt repayment as ways to encourage a solution to the crisis, Meirelles said.

“Some countries are already applying sanctions, like the United States. In the case of Brazil, we are owed $1.3 billion in trade financing and want that repaid,” he said. Venezuela recently paid arrears and is up to date, he added.

Other countries, led by Russia and China, favor a moratorium that would suspend Venezuela’s payments, he said. Russia and China did not attend the meeting.

Venezuela is undergoing a major economic crisis, with millions suffering food and medicine shortages, and Maduro’s government is late in paying about $1.9 billion in interest on its debt.
…

The Trump administration on Monday banned all use by Americans of Venezuelan cryptocurrency, saying that its introduction is intended to skirt U.S. sanctions. In a separate move, the administration also slapped sanctions on four current and former senior Venezuelan officials accused of corruption and mismanagement.

In an executive order that took effect immediately upon its issuance, President Donald Trump declared illegal all U.S. transactions related to Venezuelan digital currencies, coins or tokens. The prohibition applies to all people and companies subject to U.S. jurisdiction. The move follows the introduction last month of a Venezuelan cryptocurrency known as the “petro,” for which the government says it has received investment commitments of $5 billion.

In the executive order, Trump said it was an “attempt to circumvent U.S. sanctions” imposed for democratic backsliding.

The Treasury had said in January that the petro appeared to be an extension of credit to Venezuela and warned that transactions in it may violate U.S. sanctions.

In February, cash-strapped Venezuela became the first country to launch its own version of bitcoin, the petro, in a move that President Nicolas Maduro celebrated as putting his country on the world’s technological forefront.

The petro is backed by Venezuela’s crude oil reserves, the largest in the world, yet it has arrived on the market as the socialist country sinks deeper into an economic crisis marked by soaring inflation and food shortages that put residents in lines for hours to buy common products.

Maduro had announced late last year that he was creating the digital currency to outmaneuver U.S. sanctions preventing Venezuela from issuing new debt.

Bitcoin and other digital tokens are already widely used in Venezuela as a hedge against hyperinflation and an easy-to-use mechanism for paying for everything from doctor visits to honeymoons in a country where obtaining hard currency requires transactions in the illegal black market.

The government has promised that Venezuelans will be able to use the $60 coins to pay taxes and for public services. But with the Venezuelan minimum wage hovering around $3 a month, it’s unlikely citizens will buy in large amounts.

In its own statement on Monday, Treasury said it was hitting the four current and former Venezuelan officials with sanctions that freeze any assets they may have in U.S. jurisdictions and bar Americans from doing business with them.

The four include Americo Alex Mata, a director of Venezuela’s National Bank of Housing and Habitat and coordinator of Maduro’s 2013 campaign, Willian Antonio Contreras, the head of the body that oversees price controls in the country, Nelson Reinaldo Lepaje, the head of the Office of the National Treasury, and Carlos Alberto Rotondaro, the former president of the Board of Directors of the Venezuelan Institute of Social Security.
…

Major U.S. and European stock indexes were sharply lower in Monday’s trading over continuing fears of a trade war, Brexit, an upcoming U.S. Federal Reserve meeting and trouble with Facebook.

The Dow Jones industrial average and the Standard & Poor’s 500 index were both down nearly 1.5 percent, while the tech-heavy NASDAQ was off more than 2 percent.

European markets also dropped over news of a possible deal for Britain’s total exit from the European Union.

President Donald Trump’s efforts to raise tariffs on steel and aluminum imports to the U.S. are raising concerns of a trade war, which is making investors nervous.

Also Monday, reports emerged that a consulting company associated with Trump’s 2016 presidential campaign and worked with tech giant Facebook improperly gained access to information on millions of Facebook users.

The price of Facebook shares plummeted 7 percent on Monday, shaking up tech stocks in general.
…

Air bags in some Hyundai and Kia cars failed to inflate in crashes and four people are dead. Now the U.S. government’s road safety agency wants to know why.

The National Highway Traffic Safety Administration says it’s investigating problems that affect an estimated 425,000 cars made by the Korean automakers. The agency also is looking into whether the same problem could happen in vehicles made by other companies.

In documents posted on its website Saturday , the safety agency says the probe covers 2011 Hyundai Sonata midsize cars and 2012 and 2013 Kia Forte compacts. The agency says it has reports of six front-end crashes with significant damage to the cars. Four people died and six were injured.

Electrical circuits 

The problem has been traced to electrical circuit shorts in air bag control computers made by parts supplier ZF-TRW. NHTSA now wants to know if other automakers used the same computer.

On Feb. 27, Hyundai recalled nearly 155,000 Sonatas because of air bag failures, which the company blamed on the short circuits.Hyundai’s sister automaker Kia, which sells similar vehicles, has yet to issue a recall.

In a statement Saturday, Kia said that it has not confirmed any air bag non-deployments in its 2002-2013 Kia Forte models arising from “the potential chip issue.” The company said it will work with NHTSA investigators.

“Kia will act promptly to conduct a safety recall, if it determines that a recall would be appropriate,” the company said.

But a consumer complaint cited in NHTSA’s investigation documents said Kia was informed of a crash near Oakland in which air bags failed to deploy and a passenger was killed.

In October 2015, the complainant told NHTSA that a 2012 Forte was involved in a serious front-end crash that occurred in July 2013. A passenger was killed and the driver was injured. According to the complaint, Kia was notified, the air bag computer was tested and it was “found not to be working.”

Kia spokesman James Bell said he could not comment beyond the company’s statement.

Hyundai recall

In addition, no deaths or injuries were disclosed in Hyundai’s recall documents, which were posted by NHTSA in early March.

Hyundai spokesman Jim Trainor says the problem occurred in rare high-speed head-on collisions that were offset from the center of the vehicles. “It’s very unusual to have that kind of collision,” he said Saturday.

Dealers will consider offering loaner cars to owners until the problem can be repaired, he said. “We certainly would do everything we can to help our customers,” Trainor said.

Hyundai said in a statement that the air bag control circuitry was damaged in three crashes and a fourth crash is under investigation.

ZF-TRW said in a statement that it is prevented by confidentiality agreements from identifying other automakers that bought its air bag control computers. The company said it is working with customers and supports the NHTSA investigation.

According to NHTSA, Hyundai investigated and found the problem was “electrical overstress” in the computers. The company didn’t have a fix developed at the time but said it was investigating the problem with ZF-TRW. Hyundai does not yet have a fix for the problem but said it expects the Sonata recall to start April 20. The problem also can stop the seat belts from tightening before a crash.

In the documents, NHTSA said it understands that the Kia Fortes under investigation use similar air bag control computers made by ZF-TRW. The agency noted a 2016 recall involving more than 1.4 million Fiat Chrysler cars and SUVs that had a similar problem causing the air bags not to deploy. Agency documents show those vehicles had air bag computers made by ZF-TRW.
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The pot revolution is alive and well in the state of Colorado where recreational cannabis has been legal since 2014. While the full impact of legal marijuana in Colorado has yet to be determined, what is clear is that cannabis has become a giant moneymaker for the state. And as Paula Vargas reports from Denver, women entrepreneurs — weed warriors, as some have called them — are leading the way.
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Fingerprints can unlock doors, phones and more, but are consumers ready to pay with them? Visa thinks so. More companies are exploring biometrics, the analysis of unique biological traits to verify identity, but how secure is the technology? Tina Trinh reports from New York
…

Namoura. Ma’amoul. Barazek. The names are unfamiliar to American consumers, but the tastes of honey, cinnamon and nuts are not. 

These Syrian pastries are for sale at the Syrian Sweets Exchange in Phoenix, Arizona, held at local farmers markets and a series of special sales like one recently at Changing Hands Bookstore. Bake sales are a fundraising fixture of American life, so it was no stretch for a group of volunteers who wanted to do something to help the 300 Syrian families in the Phoenix and Tucson metro areas.

Syria is famous for its sweets, but program co-founder Tan Jakwani said volunteers learned about them firsthand.

“When the volunteers would visit the Syrian refugees … to bring them donated furniture, they would bring out delicious sweets to greet the volunteers,” she said.

Through the exchange, the bakers’ skills have been turned into revenue. All proceeds are given back to the 20 bakers, who are licensed by the state of Arizona to bake goods at home and sell them.

The bakers

“I sell my sweets every Saturday in the farmers market … and it sells very well,” said baker Noor al Mousa. “I have customers every Saturday coming for me for selling my sweets and thank me. And I thank them.”

Al Mousa was an engineer in Syria. Now, her husband supports the family of seven — four children born in Syria and one in the U.S. — by driving cars at the Phoenix airport while she bakes.

“We send a lot of money to my family in Syria and in Jordan,” Al Mousa said. “My sister and my aunts and the brother of my husband are all in Syria. … I am very worried for them.”

After al Mousa and one of her young daughters were shot in Syria and their house collapsed, the family walked to Jordan overnight where they stayed for four years before arriving in the U.S.

“I made sweets just for family in my country,” al Mousa said. “Now volunteers help me sell my sweets in farmers markets.

“When I bake, I am happy. I am very happy,” she added. 

The volunteers

The sweets exchange is part of a larger group called Refugee Connection Phoenix, whose volunteer members have grown from 60 to 800 over the last year. The Facebook-based group also has other programs, such as helping expectant mothers and teaching refugee children to read.

The Syrian Sweets Exchange founders and other volunteers, who drive the bakers to the sales and interpret for them, are mostly women who come from various walks of life and from different faiths. 

Tan Jakwani’s motivation to help refugees stems from her own background. Her father — a major in the South Vietnamese Army — was evacuated at the end of the Vietnam War in 1975 and took refuge in the U.S. It was 10 years before Jakwani, her mother and three siblings arrived in the U.S.

“When we came, he already had a small house for us. So we did not have to go through the phase of living as refugees,” Jakwani said. “But my dad always told us about the time when he first came. He had a family sponsor who helped him with getting his driver’s license, getting a library card, and helped him get a job.”

Refugees have a lot of needs, Jakwani says, but she adds that if everyone does a little, “a lot can be done” to help.
…

A former midlevel employee of German industrial giant Siemens pleaded guilty Thursday of conspiring to pay tens of millions of dollars to Argentine officials to win a $1 billion contract to create national ID cards.

Eberhard Reichart, 78, who worked for Siemens from 1964 to 2001, appeared in federal court in New York to plead guilty to one count of conspiring to violate the anti-bribery Foreign Corrupt Practices Act and to commit wire fraud.

Reichart was arraigned last December in a three-count indictment filed in December 2011 charging him and seven other Siemens executives and agents with participating in the decadelong scheme, the Justice Department said Thursday. 

The men were accused of conspiring to pay more than $100 million in bribes to high-level Argentine officials to win the contract in 1998. 

As part of his guilty plea, Reichart admitted in court that he engaged in the bribery conspiracy and that he and his co-conspirators used shell companies to conceal the illicit payments to Argentine officials.

The Argentine government terminated the contract in 2001, but the Siemens executives “sought to recover the profits they would have reaped” through an illicitly obtained contract, said Preet Bharara, former U.S. attorney for the Southern District of New York, in 2011. 

“Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules,” acting Assistant Attorney General John Cronan said Thursday.

In 2008, Siemens pleaded guilty of violating the Foreign Corrupt Practices Act in connection with the Argentine bribery scheme, agreeing to pay the Justice Department and Securities and Exchange Commission $800 million in criminal and civil penalties.

The company paid the German government another $800 million to settle similar charges brought by the Munich Public Prosecutor’s Office.

The Foreign Corrupt Practices Act bars U.S. companies and foreign firms with a presence in the U.S. from paying bribes to foreign officials.

Last year, 11 companies paid just over $1.92 billion to resolve charges brought under the anti-bribery law, according to data compiled by the FCPA Blog.
…

HSBC will reveal a gender pay gap of 59 percent at its main U.K. banking operation, the biggest yet disclosed by a British bank, according to a copy of the lender’s report on the subject seen by Reuters on Thursday ahead of its publication.

The bank will also disclose a mean gender bonus gap of 86 percent at HSBC Bank Plc, which is the biggest of the lender’s seven entities in Britain and employs 23,507 people.

A spokeswoman for the bank confirmed the contents of the report.

The gender pay gap is the biggest yet reported by a British financial firm, according to government data, with some firms yet to provide figures ahead of an April deadline set by Prime Minister Theresa May last year.

Almost 50 years since the passage of Britain’s equal pay act, the continued gulf in earnings between men and women has attracted significant public attention over the past year or so.

In common with other banks, HSBC said its pay gap was largely accounted for by the bank having fewer women in senior roles.

The gender pay gap measures the difference between the average salary of men and women, calculated on an hourly basis.

HSBC said women held only 23 percent of senior leadership positions in its workforce in Britain, despite accounting for more than half of total staff.

The bank said it was taking a number of steps to reduce the pay gap, including committing to an aspirational target of women holding 30 percent of senior roles by 2020.

Last month, Asia-focused Standard Chartered reported a gap of 30 percent in Britain, while Virgin Money — the only major UK lender run by a woman — said its female staff earned on average 32.5 percent less per hour than its male workforce.

Lloyds Banking Group and Royal Bank of Scotland reported gender pay gaps of 32.8 percent and 37 percent respectively.

Barclays said last month it paid women in its international division, which houses its investment bank, on average 48 percent of what men earned in fixed pay.

The pay gaps have drawn criticism from lawmakers and are likely to spur questions from investors in the upcoming season for shareholder meetings, with stock prices and future earnings potential strongly linked to banks’ efforts to revive their reputations in the wake of the global financial crisis.
…

Germany said on Thursday that any escalation of U.S. President Donald Trump’s tariffs on metal imports into a full-blown trade war could cause tangible damage to the global recovery, although the tariffs themselves should have only a limited effect.

Trump last week ordered the imposition of duties on incoming steel and aluminum and threatened to levy a tax on European cars if the European Union did not remove “horrific” tariffs and trade barriers on a range of goods.

“The German economic upswing is continuing at the beginning of 2018. The global economic environment is still favorable,” the Economy Ministry said in its monthly report. But it said U.S. trade policies were creating a sense of uncertainty.

The tariffs on steel and aluminum will affect trade flows in some regions, but their overall implications for the global economy are likely to be manageable, it said.

“But a possible escalation into a trade war and rising uncertainty among market participants could cause tangible damage,” it added.

European Council President Donald Tusk on Wednesday urged the United States to revive trade talks rather than escalate a dispute over tariffs on metals and cars.

And Swiss National Bank Chairman Thomas Jordan said on Thursday that U.S. protectionism could be a threat to the export-dependent Swiss economy and trigger safe-haven flows that would drive up the value of the Swiss currency.

‘At a crossroads’

Germany’s new economy minister, Peter Altmaier, said Trump was challenging the multilateral trade system as defined by the rules of the World Trade Organization (WTO).

“We are at a very important crossroads,” Altmaier said, warning of a scenario in which countries could start a spiral of tit-for-tat trade restrictions.

“This is a really huge challenge with implications for all of us,” Altmaier added. He said consumers in all countries would end up footing the bill because tariffs would push up prices for many kinds of products.

The threat of a full-blown trade war will also be on the agenda of the G-20 meeting in Argentina, where finance ministers and central bank governors from the world’s 20 biggest economies meet from March 17 to 20.

Germany’s new finance minister, Olaf Scholz, will meet his U.S. counterpart Steven Mnuchin on Sunday or Monday on the sidelines of the meeting to discuss trade, banking regulation and other issues, senior German officials said on Thursday.

“The minister will have bilateral meetings with all G-7 counterparts,” one of the officials said, on condition of anonymity, adding that multilateral trade would “certainly be a big topic” at the G-20 meeting.

The taxation of profits from digital business and regulation of crypto currencies will also be in focus, the official added.

 
…

Amazon.com Inc.’s top television shows drew more than 5 million people worldwide to its Prime shopping club by early 2017, according to company documents, revealing for the first time how the retailer’s bet on original video is paying off.

The documents also show that Amazon’s U.S. audience for all video programming on Prime, including films and TV shows it licenses from other companies, was about 26 million customers.

Amazon has never released figures for its total audience.

The internal documents compare metrics that have never been reported for 19 shows exclusive to Amazon: their cost, their viewership and the number of people they helped lure to Prime.

Known as Prime Originals, the shows account for as much as a quarter of what analysts estimate to be total Prime sign-ups from late 2014 to early 2017, the period covered by the documents.

Viewers to shoppers

Core to Amazon’s strategy is the use of video to convert viewers into shoppers. Fans access Amazon’s lineup by joining Prime, a club that includes two-day package delivery and other perks, for an annual fee.

The company declined to comment on the documents seen by Reuters. But Chief Executive Jeff Bezos has been upfront about the company’s use of entertainment to drive merchandise sales.

The world’s biggest online retailer launched Amazon Studios in 2010 to develop original programs that have since grabbed awards and Hollywood buzz.

“When we win a Golden Globe, it helps us sell more shoes,” Bezos said at a 2016 technology conference near Los Angeles. He said film and TV customers renew their subscriptions “at higher rates, and they convert from free trials at higher rates” than members who do not stream videos on Prime.

​$5 billion in video

Video has grown to be one of Amazon’s biggest expenditures at $5 billion per year for original and licensed content, two people familiar with the matter said. The company has never disclosed how many subscribers it won as a result, making it hard for investors to evaluate its programming decisions.

The internal documents show what Amazon considers to be the financial logic of its strategy, and why the company is now making more commercial projects in addition to shows aimed at winning awards, the people said.

For example, the first season of the popular drama The Man in the High Castle, an alternate history depicting Germany as the victor of World War II, had 8 million U.S. viewers as of early 2017, according to the documents. The program cost $72 million in production and marketing and attracted 1.15 million new subscribers worldwide based on Amazon’s accounting, the documents showed.

Amazon calculated that the show drew new Prime members at an average cost of $63 per subscriber.

That is far less than the $99 that subscribers pay in the United States for Prime; the company charges similar fees abroad. Prime members also buy more goods from Amazon than non-members, Bezos has said, further boosting profit.

Amazon’s secret math

Precisely how Amazon determines a customer’s motivation for joining its Prime club is not clear from the documents viewed by Reuters.

But a person familiar with its strategy said the company credits a specific show for luring someone to start or extend a Prime subscription if that program is the first one a customer streams after signing up. That metric, referenced throughout the documents, is known as a “first stream.”

The company then calculates how expensive the viewer was to acquire by dividing the show’s costs by the number of first streams it had. The lower that figure, the better.

The internal documents do not show how long subscribers stayed with Prime, nor do they indicate how much shopping they do on Amazon. The company reviews other metrics for its programs as well. Consequently, the documents do not provide enough information to determine the overall profitability of Amazon’s Hollywood endeavor.

Still, the numbers indicate that broad-interest shows can lure Prime members cheaply by Amazon’s calculations. One big winner was the motoring series The Grand Tour, which stars the former presenters of BBC’s Top Gear. The show had more than 1.5 million first streams from Prime members worldwide, at a cost of $49 per subscriber in its first season.

The documents seen by Reuters reflect Prime subscribers in the United States, United Kingdom, Germany, Austria and Japan, where Amazon’s programs were available before Prime Video rolled out globally in December 2016.

Analysts estimate that 75 million or more customers have Prime subscriptions worldwide, including about half of all households in the United States.

Bigger bets

About 26 million U.S. Prime members watched television and movies on Amazon as of early 2017. Reuters calculated this number from the documents, which showed how many viewers a TV series had as a percentage of total Prime Video customers.

Rival Netflix Inc had twice that many U.S. subscribers in the first quarter of last year. It does not disclose how many were active viewers.

For years, Amazon Studios aimed to win credibility in Hollywood with sophisticated shows beloved by critics. Its marquee series Transparent, about a transgender father and his family, won eight Primetime Emmy Awards and created the buzz Amazon wanted to attract top producers and actors.

Yet Transparent lagged Amazon’s top shows in viewership.

Its first season drew a U.S. audience half as large as that of The Man in the High Castle, and it fell to 1.3 million viewers for its third season, according to the documents.

Similarly, Good Girls Revolt, a critically acclaimed show about gender inequality in a New York newsroom, had total U.S. viewership of 1.6 million but cost $81 million, with only 52,000 first streams worldwide by Prime members.

The program’s cost per new customer was about $1,560, according to the documents. Amazon canceled it after one season.

Amazon is now working on more commercial dramas and spin-offs with appeal outside the United States, where Prime membership has far more room to grow, people familiar with the matter said.

The effort to broaden Amazon’s lineup, long in the works, will be in the hands of Jennifer Salke, NBC Entertainment’s president whom Amazon hired last month as its studio chief.

Amazon’s Bezos has wanted a drama to rival HBO’s global hit Game of Thrones, according to the people.

In November, Amazon announced it will make a prequel to the fantasy hit The Lord of the Rings. The company had offered $250 million for the rights alone; production and marketing could raise costs to $500 million or more for two seasons, one of the people said.

At half a billion dollars, the prequel would cost triple what Amazon paid for The Man in the High Castle seasons one and two, the documents show. That means it would need to draw three times the number of Prime members as The Man in the High Castle for an equal payoff.
…

The U.S. Senate voted 67 to 31 Wednesday to ease bank rules, bringing Congress a step closer to passing the first rewrite of the Dodd-Frank reform law enacted after the 2007-2009 global financial crisis.

The draft legislation now heads to the U.S. House of Representatives where Republicans in the majority say they want to add more provisions to ease financial regulations. Those changes have some of the bill’s backers worried that late alterations could upend the deal struck in the Senate between Republicans and Democrats.

The bill would ease tight restrictions on small banks and community lenders, and includes provisions beneficial to all but the largest U.S. banks.

The measure marks the first significant rewrite of financial rules since the passage of the 2010 Dodd-Frank financial reform law. The White House said in a statement that President Donald Trump would sign the bill into law if approved by the House.

GOP: Dodd-Frank too much

Republican critics say Dodd-Frank went too far and curbs banks ability to lend, while many Democrats say it provides critical protections for consumers and taxpayers.

The bill would raise the threshold at which banks are considered systemically risky and subject to stricter oversight from $50 billion to $250 billion. It also exempts banks with less than $10 billion in assets from rules banning proprietary trading, as well as exempts smaller banks from several other post-crisis rules.

The bill would allow custody banks such as BNY Mellon and State Street Corp to exempt the customer deposits they place with central banks from a stringent capital calculation requirement.

In House, 30 bills

In the House, conservative Republicans say they want to expand the bill to include additional regulatory relief, identifying roughly 30 bills they have passed for inclusion. But that insistence has some of the bill’s supporters concerned it could disrupt the bipartisan support it needs to become law.

“To expect that the House would have a desire to have some fingerprints on this final product is more than reasonable,” said Representative Bill Huizenga, a Michigan Republican, who wants additions to the bill.

Any changes made in the House would again have to pass the Senate, and Republican additions could drive away Senate Democrats whose support is needed for passage.

“There’s no guarantee that a modified bill would be able to pass the Senate,” said Paul Merski, executive vice president with the Independent Community Bankers of America, which supports the Senate bill. “That’s a real danger.”
…

Toys ‘R’ US plans to sell or close all of its US stores, potentially hitting 33,000 jobs, U.S. media reported Wednesday.

The debt-plagued retailer, which filed for bankruptcy protection in September, told employees that the retailer planned to file liquidation papers ahead of a Thursday court hearing, The Wall Street Journal and The Washington Post reported.

“We’re putting a for sale sign on everything,” CEO David Brandon said on a conference call with staff, according to the Journal.

Company officials did not immediately reply for a request for comment.

Started in 1948 amid the postwar US economic boom, Toys ‘R’ US has 881 stores in U.S. territories and nearly 65,000 employees globally, according to the company’s most recent press release last month.

The New Jersey-based company was saddled with debt following a leveraged buyout in 2005 by a consortium that included the KKR Group and Bain Capital.

Much like other retailers, Toys ‘R’ Us has also been bruised by competition from Amazon and other online retailers.

A weak holiday shopping season weighed on the company’s efforts to reorganize, analysts said.

Neil Saunders, managing director of GlobalData Retail, blamed the company’s woes on poor leadership.

“As the competitive dynamics of the toy market intensified, management failed to respond and evolve. As such, the brand lost relevance, customers and ultimately sales,” Saunders said in a note Wednesday.

“The main tragedy of liquidation will be the extensive loss of jobs. In our view, those on the shop-floor have been badly let down by management and those doing financial deals.”

The company is exploring strategies for keeping the brand alive, including the sale of 200 U.S. stores that could be packaged with its Canadian business, CNBC and the Journal reported.

Brandon outlined this and other possibilities at the New Jersey meeting, CNBC reported. Brandon also told workers they have 60 more days of employment at the company.

In February, the company’s British business announced plans for an “orderly wind-down” of the company’s store portfolio. Toys ‘R’ Us employs 3,200 people at 100 stores in Britain.

 
…

A bag of rice on a hungry family’s kitchen table could be the key to Nicolas Maduro retaining the support of poor Venezuelans in May’s presidential election.

For millions of Venezuelans suffering an unprecedented economic crisis, a monthly handout of a box of heavily-subsidized basic food supplies by Maduro’s unpopular government has offered a tenuous lifeline in their once-prosperous OPEC nation.

The 55-year-old successor to Hugo Chavez introduced the so-called CLAP boxes in 2016 in a signature policy of his rule, continuing the socialist government’s strategy of seeking public support with cash bonuses and other giveaways.

Now, running for re-election on May 20, Maduro says the CLAPs are his “most powerful weapon” to combat an “economic war” being waged by Washington, which brands him a “dictator” and has imposed sanctions.

Mariana, a single mother who lives in the poor hillside neighborhood of Petare in the capital Caracas, says the handouts will decide her vote.

“I and other women I know are going to vote for Maduro because he’s promising to keep giving CLAPs, which at least help fix some problems,” said the 30-year-old cook, who asked not to give her surname for fear of losing the benefit.

“When you earn minimum wage, which doesn’t cover exorbitant prices, the box helps.”

Maduro’s rule since 2013 has coincided with a deep recession caused by a plunge in global oil prices and failed state-led economic policies.

Yet the worse the economy gets, the more dependent some poor Venezuelans become on the state.

Life in the South American country’s poor ‘barrios’ revolves around the CLAP boxes. According to the government, six million families receive the benefit, from a population of around 30 million people.

Venezuelans, many of whom are undernourished, anxiously wait for their monthly delivery, and a thriving black market has sprung up to sell CLAP products.

The government sources almost all the CLAP goods from abroad, especially from Mexico, since Venezuela’s food production has shriveled and currency controls restrict private imports.

Critics, including Maduro’s main challenger for the May 20 vote, Henri Falcon, say the CLAPs are a cynical form of political patronage and are rife with corruption.

Erratic supply and control of distribution by government-affiliated groups have sown resentment among others.

“I can’t count on it. Sometimes it comes, sometimes not,” said Viviana Colmenares, 24, an unemployed mother of six struggling to get by in Petare.

“Instrument of the Revolution”

Stamped with the faces of Maduro and Chavez, the CLAP boxes usually contain rice, pasta, grains, cooking oil, powdered milk, canned tuna and other basic goods. Recipients pay 25,000 bolivars per box, or about $0.12 at the black market rate.

That is a godsend in a country where the minimum monthly wage is less than $2 at that rate – and would be swallowed up by two boxes of eggs or a small tin of powdered milk.

Inflation, at more than 4,000 percent annually according to opposition data, is pulverizing household income.

The administration of the CLAP — the Local Supply and Production Committees — does not hide its political motivation.

“The CLAPs are here to stay. They are an instrument of the revolution,” said Freddy Bernal, CLAP chief administrator.

“It has helped us stop a social explosion and enabled us to win elections and to keep winning them,” he told Reuters, referring to government victories in 2017 local polls.

Sometimes, though, the tactic backfires, as it did when promised free pork failed to arrive over Christmas, prompting street protests.

Maduro’s inability to halt rising hunger has jarred with the experience of many under Chavez, who won the presidency in 1998 and improved Venezuela’s social indicators with oil-fueled welfare policies.

Even though Maduro’s approval rating is only around 26 percent, according to one recent poll, his re-election looks likely as Venezuela’s opposition coalition is boycotting the vote on accusations it is rigged.

His most popular rivals are banned from standing and the election board favors the government.

Former state governor Falcon has broken with the coalition to stand. One survey by pollster Datanalisis in February showed that in a two-way race, he would defeat Maduro by 45.8 percent to 32.2 percent of likely voters.

Falcon’s critics counter that those numbers mean nothing in the face of electoral irregularities that could arbitrarily tip the balance in favor of Maduro.

Several other minor figures have registered for the single-round election, but have little chance of making an impact.

‘Can’t Depend on the Box’

Juan Luis Hernandez, a food specialist at the Central University of Venezuela, estimates the country generates just 44 percent of the basic food supplies it produced in 2008.

Meanwhile, food imports fell 67 percent between the start of 2016 and the end of 2017 as the crisis bit, he said.

Almost two-thirds of Venezuelans surveyed in a university study published in February said they had lost on average 11 kilograms (24 lbs) in body weight last year. Eighty-seven percent were assessed to live in poverty.

The same study found that seven out of 10 Venezuelans had received CLAPs.

“They (the government) don’t care about the food issue, just about getting people something to eat while they get through the elections,” said Susana Raffalli, a consultant with charity Caritas.

Some Venezuelans fear they would be found out should they vote against Maduro and be punished by no longer receiving food bags.

Already handouts are far from guaranteed.

A dozen recipients told Reuters that often they arrived half-full and would only come every few months. Outside of the capital Caracas, delivery was even more sporadic.

“I can’t depend on the box, otherwise I would die from hunger,” said Yuni Perez, a 48-year-old rubbish collector and mother of three.

Perez, who lives in a ramshackle house made from breeze blocks and corrugated steel at the top of Petare, said a CLAP box provided her family with food for a week. Often they would receive one every two months.

When her family is short of food, she hunts for leftovers dumped on the side of Petare’s winding streets. She said she had found several newborn babies discarded in the gutter, which she attributed to mothers unable to face providing food for another child.

Another Petare resident, mother-of-three Yaneidy Guzman said she dropped from 68kg to 48kg last year, despite receiving the CLAP.

“At least for 10 days you don’t have to think about finding food,” the 32-year-old said of the handouts, her cheekbones protruding from her face.
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In one of the planet’s most northerly settlements, in a tiny Arctic town of about 2,000 people, Benjamin Vidmar’s domed greenhouse stands out like an alien structure in the snow-cloaked landscape.

This is where in summer the American chef grows tomatoes, onions, chilies and other vegetables, taking advantage of the season’s 24 hours of daily sunlight.

During winter’s four months of darkness, when temperatures can reach -30 Celsius (-22°F), Vidmar tends to microgreens – the leaves and shoots of young salad plants – and dozens of quails in two rooms beneath his home.

He is the sole supplier of locally-grown food in the Norwegian town of Longyearbyen in the Svalbard archipelago. The North Pole is about 1,050 kilometers (650 miles) to the north; mainland Norway is about as far south.

Growing food in such conditions can be “mission impossible” but it is necessary, Vidmar told the Thomson Reuters Foundation.

He hopes to set an example for other remote towns in the region.

“We are so dependent on imports. Everything is by boat and plane,” said Vidmar, who comes from Cleveland, Ohio, and who has lived here for nearly a decade.

That makes the town vulnerable, he said. In 2010, stores in Longyearbyen stood empty after an Icelandic volcano erupted, bringing air transport to a halt. And the cost of imported food and its quality “is often disappointing.”

His company, Polar Permaculture, aims to produce enough food for the town and process all its organic and biological waste.

It sounds ambitious, but the firm, which received support from a government-funded body that helps startups, broke even last year, just two years in.

It was helped by the fact that he and his teenage son do not draw salaries, and Vidmar still cooks full-time at a school.

‘Crazy’ to Try

Vidmar’s produce now appears on many of Longyearbyen’s menus, including at Huset restaurant where intricate, multi-course Nordic tasting menus are served in stately surroundings.

Alongside reindeer steak and tartare of bearded seal is a delicate dish of quail egg with dill, red onions and anchovies on flatbread.

“We would not use quail eggs unless they were local so we designed a dish as soon as we got the opportunity to try them,” said Filip Gemzell, Huset’s head chef.

Vidmar first stepped foot in Svalbard in 2007 while working as a chef on a cruise ship. One of his first thoughts was, “How can people live here?,” but he was also intrigued.

“The sad part (in America) is you work so hard and you still have to worry about money. Then you come here and you have all this nature. No distraction, no huge shopping centers, no billboards saying, ‘buy, buy, buy.'”

A year later, he moved to the island and started working at restaurants and bars in Longyearbyen, a coal mining town turned tourist-and-research attraction.

He decided to grow his own food after becoming frustrated with the absence of fresh produce and the fact that a lack of treatment sites meant organic waste was dumped into the sea.

People thought he was “crazy” trying to grow food in the Arctic.

Initially he experimented with hydroponics – farming in water instead of soil – but that meant using fertilizer, which comes from the mainland. Eventually the city authorities gave him permission to bring in worms from Florida to do the job.

Now, whenever he or his son deliver a tray of microgreens to restaurants, they collect the previous tray and feed the soil to the worms, which break it down to produce natural fertilizer for bigger plants.

His next aim is to heat the greenhouse during winter using a biodigester – which generates energy from organic material – so he can use it all-year-round.

Sustainability

Vidmar also helps fourth- and ninth-grade students at Longyearbyen school to learn farming and sustainability. That has led older students to query the island’s supply chain, said teacher Lisa Dymbe Djonne.

“They question the transportation of food from the mainland to here and how expensive that is,” she told the Thomson Reuters Foundation by phone.

“They’re going to interview some of the leaders … to figure out how much it costs for the island and if it is possible to grow our own food,” she added. “It’s a question a lot of people up here have.”

Eivind Uleberg, a scientist at the Norwegian Institute for Bioeconomy Research in Tromso in northern Norway, said that fitted a pattern of rising interest in locally produced food and sustainability in agriculture.

In a phone interview, Uleberg said that, although he was unaware of Vidmar’s undertaking, efforts to produce food locally in Norway were positive.

A short growing season and low temperatures are the main barriers to producing food in such latitudes, he said, but higher temperatures caused by climate change could help.

“There is definitely the potential to produce more vegetables and berries,” he said.

But there are also challenges, Uleberg added, including more rain in the autumn during harvest, and changing conditions in winter that could kill grasses crucial for animal feed.

For Vidmar, such obstacles and the unique conditions are the reason he is determined to produce “the freshest food possible.”

“We’re on a mission … to make this town very sustainable. Because if we can do it here, then what’s everybody else’s excuse?”
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On a patch of gravel that was once a nondescript bus stop in Kuala Lumpur’s old city, passersby can now find brightly-painted wooden pallets that double as seating and shelves stocked with free books for the taking. At least, for the time being.

The transformation is temporary, a monthlong demonstration to judge the public’s reaction to the idea of turning a slice of the sprawling Malaysian capital no bigger than a small hotel room into a permanent public space.

This try-it-before-you-buy-it approach is known as a pop-up.

Pop-ups have become popular in many cities, often the brainchild of local residents in an effort to improve their neighborhoods or turn derelict spaces into community hubs.

They include cycling activists who paint bike lanes without government approval to push for safer streets, retailers who launch temporary shops in repurposed shipping containers to revitalize flagging high streets or food trucks gathered in empty parking lots.

“We’ve found by working with cities sometimes they are a little bit wary about having to put a lot of investment into public spaces,” said Cecilia Anderson, who leads the public space program at UN-Habitat, the U.N.’s lead agency on urban issues.

“Sometimes it helps to do a small pop-up public space just to showcase on a temporary level what kinds of benefits it has for the city, the citizens, and that neighborhood.”

Public space has been shrinking in the world’s fast-growing cities, where almost 70 percent of the population is expected to live by 2050, compared to just over half today, according to U.N. estimates.

Experts say, however, it should be a paramount goal for city leaders as research shows inadequate, poorly designed or privatized public spaces generate exclusion and marginalization.

“Public space is really the backbone or the skeleton of the city,” Anderson told Reuters.

Highlighting its importance for social inclusion and well-being, public space was included as a target in the U.N. Sustainable Development Goals, with the aim to provide universal access to “safe, inclusive and accessible, green and public spaces” by 2030.

‘Ultimate irony’

In Kuala Lumpur’s bustling historic center, local urban regeneration agency Think City installed a pop-up plaza along Petaling Street and three small green spaces, known as parklets.

They form a cluster of benches, plants, and overhead canvas for shade taking up the size of a parking spot along the busy street, as well as a mock microhousing unit in an existing park.

It also spruced up a laneway next to the agency’s headquarters with a mural and a chalkboard inviting ideas on how else to improve the neglected alley.

For Think City director Neil Khor, the pop-ups are an attempt to reignite flagging interest in public space among residents in the city of 6.5 million people.

“This is the ultimate irony — when I was growing up, we had more public space,” said Khor, whose organization works on community-based urban regeneration.

“Some time in the 1980s, we had this mall culture from the United States. Suddenly the public space is exactly inside the mall.”

What people want

While Kuala Lumpur’s extravagant malls never seem to lack for visitors, the pop-ups garnered mixed reviews, if they were noticed at all.

On two recent visits to the temporary public spaces, some of the parklets were empty, though one equipped with mobile phone chargers proved popular with a quartet of teenagers.

A parklet adorned with a chessboard sat vacant while next door, Bangladeshi migrants conducted a vibrant trade in fruits and vegetables on the sidewalk, their produce truck blocking a freshly painted bike lane.

The plaza bedecked with bookshelves drew several curious onlookers, who were invited to leave comments on what they would like to see in the space, and whether it should be made permanent.

Visitors asked for more seating, a drinking fountain, shade and a playground for children. Most respondents declared their enthusiasm for a permanent plaza.

“It’s wonderful, it looks good, it makes the place beautiful and lively. No complaints,” said paralegal John Ng, who stopped by after work.

“There should be more public spaces instead of tall buildings and cars,” he said, standing in the middle of the plaza.

Retiree Emily Tan, taking a break from a shopping trip in Chinatown, preferred to sit on permanent benches next to the pop-up and take in the view.

“This one they should develop as a park,” she said. “More plants, flowers, and let people sit down.”

Universal design

While officially-sanctioned pop-up public spaces can be found in cities around the world, the trend started in the developed world.

A San Francisco design firm invented the parklet, and New York City became a model for carving out small plazas from unused odds and ends on the city’s streets.

“These temporary approaches in the global north were meant to bring informality to cities that didn’t have them,” said Ethan Kent from New York-based non-profit Project for Public Spaces. “These were solutions meant to bring back that life to the streets.”

But as the concept and the designs that go with them have become universal, critics question whether pop-ups can work just everywhere.

“On the one hand, it looks like a free street library, where you’re encouraged to take a book you like,” said Emily Silverman, a professor at Hebrew University in Jerusalem.

“But the black base, cheerful colors, and especially the position in the middle of a street during an international conference, signal ‘don’t touch,'” said Silverman, referring to the World Urban Forum in Kuala Lumpur last month.

She said in Jerusalem, free street libraries worked well in secular and middle-class professional areas, but they got vandalized in ultra-Orthodox areas, for fear they would help distribute otherwise forbidden books.

“The [pop-up’s] lure of ‘lighter, quicker, cheaper’ can encourage artificial importing, ignoring local context to just get stuff done,” she said.

Khor defended the overall initiative in Kuala Lumpur as a valuable social experiment.

He noted an impromptu badminton game in the alleyway, chess matches between migrants in the parklet, a tea shop that regularly waters the plants in the parklet, and crowds eager to explore a micro-housing prototype.

“I’m not saying these projects are perfect,” he said. “We wanted to show that urban regeneration is a process.”
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