Three top Democratic senators, in a rare show of bipartisanship, on Wednesday urged U.S. President Donald Trump to stand up to China as he prepares to launch an inquiry into Beijing’s intellectual property and trade practices in coming days.

Senate Democratic leader Chuck Schumer pressed the Republican president to skip the investigation and go straight to trade action against China.

“We should certainly go after them,” said Schumer in a statement. Senators Ron Wyden of Oregon and Sherrod Brown of Ohio also urged Trump to rein in China.

Tensions between Washington and Beijing have escalated in recent months as Trump has pressed China to cut steel production to ease global oversupply and rein in North Korea’s missile program.

Sources familiar with the current discussions said Trump was expected to issue a presidential memorandum in coming days, citing Chinese theft of intellectual property as a problem. The European Union, Japan, Germany and Canada have all expressed concern over China’s behavior on intellectual property theft.

U.S. Trade Representative Robert Lighthizer would then initiate an investigation under the Trade Act of 1974’s Section 301, which allows the president to unilaterally impose tariffs or other trade restrictions to protect U.S. industries, the sources said.

It is unclear whether such a probe would result in trade sanctions against China, which Beijing would almost certainly challenge before the World Trade Organization.

The Chinese Embassy in Washington said in a statement to Reuters that China “opposes unilateral actions and trade protectionism in any form.”

Leverage for talks

U.S. Section 301 investigations have not led to trade sanctions since the WTO was launched in 1995. In the 1980s, Section 301 tariffs were levied against Japanese motorcycles, steel and other products.

“This could merely be leverage for bilateral negotiations,” James Bacchus, a former WTO chief judge and USTR official, said of a China intellectual property probe.

Some trade lawyers said that WTO does not have jurisdiction over investment rules — such as China’s requirements that foreign companies transfer technology to their joint venture partners — allowing sanctions to proceed outside the WTO’s dispute settlement system.

But Bacchus argued the United States has an obligation to turn first to the Geneva-based institution to resolve trade disputes, adding: “There is an obligation in WTO to enforce intellectual property rights that is not fully explored.”

Lighthizer and Trump’s commerce secretary, Wilbur Ross, have complained the WTO is slow to resolve disputes and biased against the United States.

The threat comes at a time when Trump has become increasingly frustrated with the level of support from Beijing to pressure Pyongyang to give up its nuclear and missile program.

Trump has said in the past that China would get better treatment on trade with the United States if it acted more forcefully against Pyongyang. Beijing has said its influence on North Korea is limited.

China also says trade between the two nations benefits both sides, and that Beijing is willing to improve trade ties.

A senior Chinese official said Monday that there was no link between North Korea’s nuclear program and China-U.S. trade.

Wyden, the top Democrat on the Senate Finance Committee, wrote to Lighthizer urging action to stop China from pressuring U.S. tech companies into giving up intellectual property rights.

Wyden’s state of Oregon is home to several companies that could make a case regarding intellectual property rights and China, including Nike and FLIR Systems.
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The Trump administration is considering whether to initiate an action that could lead to the United States imposing tariffs and other trade restrictions on Chinese imports.

U.S. news outlets say President Donald Trump will direct U.S. Trade Representative Robert Lighthizer to begin an investigation of China’s trade practices under a section of the 1974 Trade Act. The section is aimed at protecting U.S. industries from unfair trade practices of foreign countries.  

Administration officials say a formal announcement could be made within the next several days.

President Trump and members of his economic team have long accused China of engaging in trade practices that have harmed American businesses, from excess steel imports to theft of intellectual properties.

In an opinion piece published Tuesday in the Wall Street Journal, Commerce Secretary Wilbur Ross accused China, as well as Europe, of subsidizing their exports through such means as “grants, low-cost loans, energy subsidies, special value-added tax refunds” and other means.   

Despite its complaints, the Trump administration had emphasized cooperation with Beijing during its first six months in office. But bilateral trade talks last month failed to end with an agreement, and the administration has become increasingly frustration with China’s apparent reluctance to pressure North Korea to curb its nuclear and ballistic missile programs.

 
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Egypt’s foreign reserves reached over $36 billion in July, a record high, which the prime minister described as “good news” as it shows that the economy is recovering, the central bank said Tuesday.

The bank announced the increase in a brief statement saying that the figure is 4.7 billion dollars higher compared to the previous month. In December 2010, foreign reserves reached $36 billion.

Egypt’s Prime Minister Sherif Ismail hailed the increase of the foreign reserves saying, “this is an assuring message about the Egyptian economy and that we are capable of covering the needs of the Egyptian people.”

 “This means that the Egyptian economy has recovered,” he said.  

$12 billion loan from IMF

The rise comes after the government secured a $12 billion loan from the International Monetary Fund. In order to qualify for that loan, the government imposed a set of tough economic measures, including subsidy cuts and the flotation of its local currency.

The economic measures were hailed by the IMF but have left many Egyptians struggling with both reduced buying power and spiraling inflation while the government struggles to generate jobs in country with an official population of 92 million.

This summer, Egypt raised electricity prices by more than 40 percent and increased gasoline prices by up to 55 percent while doubling the price of the household staple butane canisters, used for cooking.

Measures benefit middle, lower classes

Ahead of the latest hikes, President Abdel-Fattah el-Sissi approved a package of measures benefiting middle and lower class Egyptians, including income tax relief, bonuses for state employees, increases in pensions and ration card subsidies.

The government embarked on the economic reform program soon after el-Sissi took office three years ago. Egypt’s economy has been battered since the 2011 uprising and continues to face major challenges, including a rising Islamic militancy. Tourism, a major pillar of national revenue, was dealt a blow in 2015 when militants belonging to an affiliate of the Islamic State group downed a Russian airliner killing all 224 people aboard.

 
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Some European oil majors have made inroads into the emerging U.S. offshore wind energy market, aiming to leverage their experience of deepwater development and the crowded offshore wind arena at home.

Late entrants to the offshore wind game in Europe, which began with a project off Denmark 25 years ago and is now approaching maturity, they are looking across the Atlantic at what they view as a huge and potentially lucrative new market.

Norway’s Statoil has won a license to develop a wind farm of the New York coast, is marketing its new floating turbine to California and Hawaii and is retraining some oil and gas staff to work in its wind division.

Royal Dutch Shell bid for a lease offshore North Carolina earlier this year while Denmark’s DONG Energy, a wind energy pioneer which agreed to sell its oil and gas business in May, is in a Massachusetts-based offshore wind consortium, holds a lease off the New Jersey coast and has opened an office in Boston.

Offshore wind generation began in the United States late last year, ironically after the election of President Donald Trump. He is skeptical about climate change, complains about subsidies for renewable energy and battled against an offshore wind farm near his Scottish golf resort.

However, a string of federal seabed leases were awarded before Trump took office and more are planned. The investment needed to get projects going is one of the biggest

obstacles.

“Undeniably, offshore wind is a big boys’ game because it requires large amounts of capital because scale is such an important cost driver,” said Samuel Leupold chief executive of DONG Energy’s offshore wind business.

While DONG has shifted decisively towards renewables, Statoil and Shell are still firmly rooted in fossil fuels and other major European oil companies, in common with their U.S. counterparts, have so far steered clear of U.S. offshore wind.

Washington estimates its potential at 2,000 gigawatts (GW), many times anticipated capacity in Europe of 25 GW by 2020, but U.S. federal subsidies expire at the end of 2019 and while they may be renewed by Congress, that is no means certain.

Costs in Europe have fallen to a level that enabled DONG to place a zero subsidy bid earlier this year, but offshore wind farms are still multi-billion dollar projects. A push into deeper U.S. waters and the bigger turbines needed to compete without subsidies will keep price tags high.

Early Days

Trump signed an executive order in March expected to roll back his predecessor Barack Obama’s plan requiring states to slash carbon emissions from power plants. There is also no carbon price mechanism across the United States like those in Europe and elsewhere, although there are two regional ones.

U.S. oil companies have some investments in solar and onshore wind, but when it comes to offshore wind, many say they are waiting for a time when government support is not needed.

“Chevron supports renewables that are scalable and can compete without subsidies,” said Morgan Krinklaw, a spokesman for Chevron, which owns an onshore wind farm.

A report from analysts at Lazard in December pegged the cost of U.S. offshore wind at $118 MWh, around twice as much as onshore wind or combined-cycle gas turbines.

Asked to comment on that figure, Statoil, which is building its first floating wind turbine park off the Scottish coast, said costs were coming down and it was working to drive them down further, partly by redeploying existing staff.

The company has about 1,000 employees in the U.S. oil industry, said Stephen Bull, senior vice president of the company’s wind business. “There’s scope for us to plug into our existing oil and gas supply chain,” he added, referring to existing contracts with equipment and service suppliers.

Statoil spokeswoman Elin Isaksen said she did not expect any of its offshore wind projects in the U.S. to have begun construction by 2019 and that it was too early to quote numbers for the New York project, while acknowledging there was, as yet, no supply chain.

“We expect to see – and will help – the supply chain evolve rapidly in step with the broader industry as offshore wind takes hold in the U.S. in the coming years,” she said.

In Virginia, where Spanish utility Iberdrola’s Avangrid has secured an offshore wind licence, a rich marine engineering heritage is expected to help local companies gain work. Smaller European oil and gas firms are also gaining work.

JDR Cable Systems, a British company that has traditionally supplied subsea power lines to oil and gas platforms, earlier this year won a $275 million contract to provide electric cables for the largest U.S. offshore wind farm off the Maryland coast.

“We are well placed to develop business in the U.S. because of the existing relationships we have in Europe,” said John Price, global sales director for renewables at JDR.

State level decision-making on electricity procurement, the next stage of getting offshore wind off the ground, is helping.

Massachusetts, where DONG has secured a seabed license, last year issued a law requiring its utilities to buy up to 1.6 GW of offshore wind power by June 2027, with a tender to be held later this year.

DONG’s North America wind power president Thomas Bostrom said it would bid in the Massachusetts power purchase tender in December and would not comment on costs ahead of that. He too, emphasized his company was playing the long game.

“As excited as we are for offshore wind in the U.S., we are still in the early days of the industry,” Bostrom said.
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Saudi Arabia has announced plans to build a “semi-autonomous” visa-free travel destination along its northwestern Red Sea coast.

The Red Sea area will include diving attractions and a nature reserve – and there are suggestions that the kingdom’s strict rules on women’s veils and gender segregation could be waived in the tourist haven.

The resort area will be developed with seed capital from the country’s Public Investment Fund.

The fund said Monday the project will be built along 125 miles (200 kilometers) of coastline and is tailored toward global luxury travelers and those seeking wellness travel, a genre of tourism associated with personal well-being and health.

The Saudi Commission for Tourism did not immediately respond to an Associated Press request for more details on the rules.
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Qatar filed a wide-ranging legal complaint at the World Trade Organization on Monday to challenge a trade boycott by Saudi Arabia, Bahrain and United Arab Emirates, the director of Qatar’s WTO office, Ali Alwaleed al-Thani, told Reuters.

By formally “requesting consultations” with the three countries, the first step in a trade dispute, Qatar triggered a 60-day deadline for them to settle the complaint or face litigation at the WTO and potential retaliatory trade sanctions.

“We’ve given sufficient time to hear the legal explanations on how these measures are in compliance with their commitments, to no satisfactory result,” al-Thani said.

“We have always called for dialogue, for negotiations, and this is part of our strategy to talk to the members concerned and to gain more information on these measures, the legality of these measures, and to find a solution to resolve the dispute.”

The boycotting states cut ties with Qatar — a major global gas supplier and host to the biggest U.S. military base in the Middle East — on June 5, accusing it of financing militant groups in Syria, and allying with Iran, their regional foe. Doha denies these allegations.

The boycotting countries have previously told the WTO that they would cite national security to justify their actions against Qatar, using a controversial and almost unprecedented exemption allowed under the WTO rules.

They said on Sunday they were ready for talks to tackle the dispute, the worst rift between Gulf Arab states in years, if Doha showed willingness to deal with their demands.

The text of Qatar’s WTO complaint cites “coercive attempts at economic isolation” and spells out how they are impeding Qatar’s rights in the trade in goods, trade in services and intellectual property.

The complaints against Saudi Arabia and the UAE run to eight pages each, while the document on Bahrain is six pages.

No reaction

There was no immediate reaction from the three to Qatar’s complaint, which is likely to be circulated at the WTO later this week.

The disputed trade restrictions include bans on trade through Qatar’s ports and travel by Qatari citizens, blockages of Qatari digital services and websites, closure of maritime borders and prohibition of flights operated by Qatari aircraft.

The complaint does not put a value on the trade boycott, and al-Thani declined to estimate how much Qatar could seek in sanctions if the litigation ever reached that stage, which can take two to five years or longer in the WTO system.

“We remain hopeful that the consultations could bear fruit in resolving this,” he said.

The WTO suit does not include Egypt, the fourth country involved in the boycott. Although it has also cut travel and diplomatic ties with Qatar, Egypt did not expel Qatari citizens or ask Egyptians to leave Qatar.

Al-Thani declined to explain why Egypt was not included.

“Obviously all options are available. But we have not raised a consultation request with Egypt yet,” he said.

In its WTO case, Qatar would also draw attention to the impact the boycott was having on other WTO members, he added.

Many trade diplomats say that using national security as a defense risks weakening the WTO by removing a taboo that could enable countries to escape international trade obligations.

Al-Thani said governments had wide discretion to invoke the national security defense but it had to be subject to oversight: “If it is self-regulating, that is a danger to the entire multilateral trading system itself. And we believe the WTO will take that into consideration.”

Aviation group

Qatar also raised the boycott at a meeting of the U.N. International Civil Aviation Organization (ICAO) on Monday, al-Thani said.

In comments to Qatar-based Al Jazeera television later Monday, Qatar’s transport and information minister said the boycotting countries had discriminated against Doha in violation of an international agreement guaranteeing overflights.

“These countries have used this right arbitrarily and imposed it on aircraft registered only in the \state of Qatar,” Jassim bin Saif al-Sulaiti said.

Qatar in June asked Montreal-based ICAO to resolve the conflict, using a dispute resolution mechanism in the Chicago Convention, a 1944 treaty that created the agency and set basic rules for international aviation.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain said Sunday that they would allow Qatari planes to use air corridors in emergencies.
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The crocodile industry in Australia’s Northern Territory, a new report says, is worth more than four times the previous estimate of US $80 million. Officials hope the findings will give poorer aboriginal communities the chance to develop crocodile farming industries.

The saltwater creature is the world’s largest reptile. In Australia, they were once hunted to the brink of extinction, mainly for their skins, which were used to make durable leather goods and clothes.

They have been a protected species since the early 1970s, and their numbers in Australia’s tropical north have soared.

Economic opportunities

The Northern Territory regional government now sees economic opportunities for indigenous communities, where officials want to see an expansion of crocodile egg collection programs.

The eggs would help to stock crocodile farms owned by aboriginal groups, or traditional owners of land, which would supply reptile skins to big fashion houses including Louis Vuitton and Gucci, as well as supplying crocodile meat.

“We are looking at direct investments into rangers to make sure that we see on country a growth in the crocodile industry, so the harvesting of eggs, the growing of the crocodile locally and remotely, which is a very important and valuable use of traditional country done by traditional owners,” said Michael Gunner, the Northern Territory’s chief minister.

Hunting for sport?

An independent Australian MP, Bob Katter, has said that as crocodile numbers increase, so does the threat to people. He believes big game trophy hunters should be allowed to shoot them for sport. Katter has argued that crocodile safaris would boost the incomes of indigenous communities.

While the Northern Territory government supports crocodile safaris, the final decision rests with Australia’s federal government, which has refused to allow them. Conservationists have insisted that the shooting of iconic animals for profit in Australia is abhorrent and should never be allowed.
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For Tesla, everything is riding on the Model 3.

The electric car company’s newest vehicle was delivered to its first 30 customers, all Tesla employees, Friday evening. Its $35,000 starting price, half the cost of Tesla’s previous models, and range of up to 310 miles (498 km) could bring hundreds of thousands of customers into the automaker’s fold, taking it from a niche luxury brand to the mainstream. Around 500,000 people worldwide have reserved a Model 3.

Those higher sales could finally make Tesla profitable and accelerate its plans for future products like SUVs and pickups.

Or the Model 3 could dash Tesla’s dreams.

Much could go wrong

Potential customers could lose faith if Tesla doesn’t meet its aggressive production schedule, or if the cars have quality problems that strain Tesla’s small service network. 

The compact Model 3 may not entice a global market that’s increasingly shifting to SUVs, including all-electric SUVs from Audi and others going on sale soon. And a fully loaded Model 3 with 310 miles of range costs a hefty $59,500; the base model goes 220 miles (322 km) on a charge.

Limits on the $7,500 U.S. tax credit for electric cars could also hurt demand. Once an automaker sells 200,000 electric cars in the U.S., the credit phases out. Tesla has sold more than 126,000 vehicles since 2008, according to estimates by WardsAuto, so not everyone who buys a Model 3 will be eligible.

“There are more reasons to think that it won’t be successful than it will,” says Karl Brauer, the executive publisher for Cox Automotive, which owns Autotrader and other car buying sites.

Always part of Tesla plans

The Model 3 has long been part of Palo Alto, California-based Tesla’s plans. In 2006, three years after the company was founded, CEO Elon Musk said Tesla would eventually build “affordably priced family cars” after establishing itself with high-end vehicles like the Model S, which starts at $69,500. This will be the first time many Tesla workers will be able to afford a Tesla.

“It was never our goal to make expensive cars. We wanted to make a car everyone could buy,” Musk said Friday. “If you’re trying to make a difference in the world, you also need to make cars people can afford.”

Tesla started taking reservations for the Model 3 in March 2016. Musk said more than 500,000 people have put down a $1,000 deposit for the car. People ordering a car now likely won’t get it until late 2018. Cars will go first to employees and customers on the West Coast; overseas deliveries start late next year, and right-hand drive versions come in 2019.

Challenges to deliver

But carmaking has proved a challenge to Musk. Both the Model S and the Model X SUV were delayed and then plagued with pesky problems, like doors that don’t work and blank screens in their high-tech dashboards.

Tesla’s luxury car owners might overlook those problems because they liked the thrill of being early adopters. But mainstream buyers will be less forgiving.

“This will be their primary vehicle, so they will have high expectations of quality and durability and expect everything to work every time,” said Sam Abuelsamid, a senior researcher with Navigant Research.

The Model 3 was designed to be much simpler and cheaper to make than Tesla’s previous vehicles. It has one dashboard screen, not two, and no fancy door handles. It’s made primarily of steel, not aluminum. It has no instrument panel; the speed limit and other information normally there can be found on the center screen. It doesn’t even have a key fob; drivers can open and lock the car with a smartphone or a credit cardlike key.

‘Manufacturing hell’

Still, Musk said he’s expecting “at least six months of manufacturing hell” as the Model 3 ramps up to full production. Musk wants to be making 20,000 Model 3s per month by December at the carmaker’s Fremont factory.

Musk aims to make 500,000 vehicles next year, a number that could help Tesla finally make money. The company has only had two profitable quarters since it went public in 2010. But even at that pace, Tesla will remain a small player. Toyota Motor Corp. made more than 10 million vehicles last year.

Abuelsamid said even if it doesn’t meet its ambitious targets, Tesla has done more than anyone to promote electric vehicles.

“A decade ago they were a little more than golf carts. Now all of a sudden, EVs are real, practical vehicles that can be used for anything,” he said.
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At dawn in Xochimilco, home to Mexico City’s famed floating gardens, farmers in muddied rain boots squat among rows of beets as a group of chefs arrive to sample sweet fennel and the pungent herb known as epazote.

By dinnertime some of those greens will be on plates at an elegant bistro 12 miles (20 kilometers) to the north, stewed with black beans in a $60 prix-fixe menu for well-heeled diners.

Call it floating-farm-to-table: A growing number of the capital’s most in-demand restaurants are incorporating produce grown at the gardens, or chinampas, using ancient cultivation techniques pioneered hundreds of years ago in the pre-Columbian era.

While sourcing local ingredients has become fashionable for many top chefs around the globe, it takes on additional significance in Xochimilco, where a project linking chinampa farmers with high-end eateries aims to breathe life and a bit of modernity into a fading and threatened tradition.

“People sometimes think [farm-to-table] is a trend,” said Eduardo Garcia, owner and head chef of Maximo Bistrot in the stylish Roma Norte district. “It’s not a trend. It’s something that we humans have always done and we need to keep doing it, we need to return to it.”

Xochimilco, on the far southern edge of Mexico City, is best-known as the “Mexican Venice” for its canals and brightly colored boats where locals and tourists can while away a weekend day listening to mariachi music and sipping cold beers.

It has also been a breadbasket for the Valley of Mexico since before the Aztec Empire, when farmers first created the “floating” islands bound to the shallow canal beds through layers of sediment and willow roots.

There’s nothing quite like it anywhere else in the world, and Xochimilco is designated by UNESCO as a World Heritage site.

But that World Heritage status and Xochimilco itself are threatened by the pollution and encroaching urbanization that plague the rest of the sprawling metropolis.

Enter Yolcan, a business that specializes in placing traditionally farmed Xochimilco produce in Mexico City’s most acclaimed restaurants Those include places like Gabriela Camara’s seafood joint Contramar and Enrique Olvera’s Pujol, which is perhaps the country’s most famous restaurant and regularly makes lists of the world’s best.

Yolcan has been around since 2011, but it’s only in the last year that business has really taken off with the number of restaurant partners increasing by a third during that period to 22. Last month five of them teamed up with Yolcan for dinner to benefit chinampa preservation.

The company directly manages its own farmland and also partners with local families to help distribute their goods, lending a much-needed hand as an intermediary.

“The thing about the chinampa farmer is that he does not have the time to track down a market or a person to promote his product,” said David Jimenez, who works a plot in the San Gregorio area of Xochimilco. “Working the chinampas is very demanding.”

All told Yolcan’s operation covers about 15 acres (6 hectares) and churns out some 2.5 tons of produce per month. Due to the high salinity of the soil drawn from canal beds, the straw-covered chinampa plots are particularly fertile ground for root vegetables and hearty greens like kale and chard.

Diners reserve weeks in advance for a coveted table at Maximo Bistrot, one of three restaurants Garcia runs. Meticulously prepared plates of chinampa-grown roasted yellow carrots with asparagus puree arrive at the table, accompanied by sea bass with green mole sauce and wine pairings in tall glasses.

Garcia estimated he gets about two-thirds of his ingredients from Yolcan or other organic farms nearby. He was born in a rural part of Guanajuato state where his family raised corn and largely ate what they grew, so sourcing local is second-nature.

“I think all of the world’s restaurants should make it a goal to use these alternative ingredients,” Garcia said, stirring a pot of beans flavored with the aromatic epazote herb. “Even though it’s a little more expensive, a little more difficult to find.”

Chinampa produce generally sells for 15 to 100 percent more than comparable goods at the enormous Central de Abasto, the go-to wholesale market for nearly all of Mexico City’s chefs that is so monolithic its competition sets prices across the country.

But chefs who buy from Yolcan are happy to pay a premium knowing they’re getting vegetables free of chemical fertilizers or pesticides and also supporting a centuries-old tradition.

Diners at Maximo Bistrot also said they enjoyed their meal, especially the burrata with chinampa-grown heirloom tomatoes. One couple said they are willing to pay the prices of these high-end eateries in order to have the best produce.

“We’ve eaten in 26 countries around the world, and for the price and quality, this was awesome,” said Kristin Kearin, a 35-year-old masseuse from United States. “I honestly think that using small producers is going to come back.”
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U.S. Treasury Secretary Steven Mnuchin on Friday said he would extend for two more months one of the extraordinary cash management measures that the Treasury is using to stave off a debt-limit default.

Mnuchin said in a letter to House of Representative Speaker Paul Ryan that he would continue to withhold investments from the Civil Service Retirement and Disability Fund, until Sept. 29.

The Treasury’s previous “debt issuance suspension period” for the federal employee pension fund was due to expire on Friday.

Mnuchin had to take the step because Congress has not passed an extension or increase in the federal debt limit, and the Treasury needs to withhold funds from the pension fund in order to preserve its borrowing capacity. It has taken several similar measures since the last extension of the debt limit expired in March at just under $20 trillion.

Mnuchin urged lawmakers this week to act on the borrowing limit before their August recess, but his request fell on deaf ears. The House of Representatives is on recess until Sept. 5.

Mnuchin and fiscal watchdog groups have estimated that the Treasury will fully exhaust its remaining borrowing capacity in October, raising the risk that the United States cannot meet all of its payment obligations with incoming tax revenue.

The Treasury is required by law to make the pension fund whole, including interest, when the debt limit is increased.

In testimony before the House Financial Services Committee on Thursday, Mnuchin said that Congress’ budgeting process, including the role the debt limit plays, “needs to be looked at.”

“I’m all for [that] there should be very strong controls of spending money. But once we’ve agreed to spend the money, we should make sure that the government can pay for it,” Mnuchin said.
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The International Monetary Fund on Friday said that the U.S. dollar was overvalued by 10 percent to 20 percent, based on U.S. near-term economic fundamentals, while it viewed valuations of the euro, Japan’s yen and China’s yuan as broadly in line with fundamentals.

The IMF’s External Sector Report, an annual assessment of currencies and external surpluses and deficits of major economies, showed that external current account deficits were becoming more concentrated in certain advanced economies such as the United States and Britain, while surpluses remained persistent in China and Germany.

While the report assessed the euro’s valuation as appropriate for the eurozone as a whole, it said the euro’s real effective exchange rate was 10 percent to 20 percent too low for Germany’s fundamentals, given its high current account surplus.

Britain’s pound, meanwhile, was assessed as up to 15 percent overvalued compared with fundamentals, which include a high level of uncertainty over Britain’s post-Brexit trading relationship with the European Union.

The fund said the dollar’s appreciation in recent years was based on its relatively stronger growth outlook, interest rate hikes versus looser monetary policy in the eurozone and Japan, as well as expectations for fiscal stimulus from President Donald Trump’s administration.

But so far this year, the dollar index, the broad measure of its value against other major currencies, is down more than 8 percent and is off to the worst start to a year since 2002.

The IMF recommended that U.S. authorities take steps to shrink a current account deficit that remains too large, by reducing its federal budget deficit and passing structural reforms to increase the savings rate and improve the economy’s productivity.

“It’s important to address imbalances, because if they’re not dealt with appropriately and through the right policies, we could have a backlash in the form of protectionism,” IMF Research Division Chief Luis Cubeddu told a news conference.

No automatic fix

Cubeddu said that the persistence of current account surpluses in export countries such as China and the growth of deficits in debtor countries such as the United States suggested that the problem would not clear up automatically.

“That is, prices, savings and investment decisions don’t seem to be adjusting fast enough to correct imbalances. This partly reflects rigid currency arrangements, but also certain structural features, like inadequate safety nets, barriers to investment, which leads to undesirable levels of savings and investment,” he said.

The report said that while China’s yuan was broadly in line with its fundamentals, IMF models showed wide divergences with desired policies, from a 10 percent overvaluation to a 10 percent undervaluation due to uncertainties over Beijing’s policy outlook.

The U.S. Treasury in April refrained from declaring China a currency manipulator despite Trump’s campaign promises to do so, citing Beijing’s interventions last year to prop up the yuan’s value in the face of capital outflows. But it kept China, South Korea, Taiwan, Germany and Switzerland on a monitoring list for large external surpluses.

The IMF said China’s current account surplus was growing again after declining in 2015 and 2016 and needed to be reduced.

This should be achieved by rebalancing the economy away from investment and credit growth toward more consumption, with a stronger safety net, reforms to state-owned enterprises and opening Chinese markets to foreign competition.

The report also showed that the IMF considers Mexico’s peso and South Korea’s won both to be undervalued by 5 percent to 15 percent compared with their fundamentals. The fund said it expected Mexico’s undervaluation to reverse as risks of protectionist U.S. policies dissipated, but that South Korea needed to stimulate domestic demand to reduce a large current account surplus.
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Shares of Tesla rose nearly 1 percent on Friday ahead of a handover to customers of its first Model 3 sedans, the electric cars that Chief Executive Officer Elon Musk is betting will propel his company into the mass market.

Tesla is counting on the Model 3 to help turn the cash-losing company into a profitable one, and its event later on Friday at its factory in Fremont, California, comes as the car maker’s stock trades down 12 percent from a record high set in June.

Fueled by expectations that Tesla will become a carbon-free energy and transportation heavyweight, Tesla’s stock remains up 58 percent year to date, but it is also a favorite among short sellers.

Designed for easy production

Shorts sellers have about $8.5 billion bet against Tesla, equivalent to about 20 percent of the company’s float, according to Astec Analytics.

The $35,000 Model 3 is designed for easy production, with output targeted to reach 20,000 per month by December. The Silicon Valley car company aims to quickly ramp up its factory to reach a production target of 500,000 cars per year in 2018.

Tesla’s last launch was the luxury Model X SUV in 2015, which had a number of production issues.

Investors eager for update

Tesla reports its second-quarter results on Wednesday, and investors are keen for an update on how quickly its output is expanding after deliveries for the first half of 2017 came in at the low end of the company’s own forecast.

“This evening’s event will keep investors focused on the Model 3 ramp, and less on the upcoming quarter,” Barclays analyst Brian Johnson wrote in a note to clients. Johnson has a an “underweight” rating on Tesla.

Skeptics believe Tesla’s growth targets are unrealistic and that it is at risk of being overtaken by General Motors, BMW and other deep-pocketed manufacturers that are ramping up their own electric-vehicle offerings.

The stock was up 0.86 percent at $337.33.
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The surge in far-flung and destructive cyber attacks is not good for national security, but for an increasing number of hackers and researchers, it is great for job security.

The new reality is on display in Las Vegas this week at the annual Black Hat and Def Con security conferences, which now have a booming side business in recruiting.

“Hosting big parties has enabled us to meet more talent in the community, helping fill key positions and also retain great people,” said Jen Ellis, a vice president with cybersecurity firm Rapid7 Inc., which filled the hip Hakkasan nightclub Wednesday at one of the week’s most popular parties.

More tech, more jobs

Twenty or even 10 years ago, career options for technology tinkerers were mostly limited to security firms, handfuls of jobs inside mainstream companies, and in government agencies.

But as tech has taken over the world, the opportunities in the security field have exploded.

Whole industries that used to have little to do with technology now need protection, including automobiles, medical devices and the ever-expanding Internet of Things, from thermostats and fish tanks to home security devices.

More insurance companies now cover breaches, with premiums reduced for strong security practices. And lawyers are making sure that cloud providers are held responsible if a customer’s data is stolen from them and otherwise pushing to hold tech companies liable for problems, meaning they need security experts too.

1.8 million skilled workers needed

The nonprofit Center for Cyber Safety and Education last month predicted a global shortage of 1.8 million skilled security workers in 2022. The group, which credentials security professionals, said that a third of hiring managers plan to boost their security teams by at least 15 percent.

For hackers who prefer to pick things apart rather than stand guard over them, an enormous number of companies now offer “bug bounties,” or formal rewards, for warnings about vulnerabilities that leave them exposed to criminals or spies.

​New ways to make money

One of the outside firms that handle such programs, HackerOne, said it has paid out $18.8 million since 2014 to fix 50,140 bugs, with about half of that work done in the past year.

Mark Litchfield made it into the firm’s “Hacker Hall of Fame” last year by being the first to pull in more than $500,000 in bounties through the platform, well more than he earned at his last full-time security job, at consulting firm NCC Group.

In the old days, “The only payout was publicity, free press,” Litchfield said. “That was the payoff then. The payoff now is literally to be paid in dollars.”

There are other emerging ways to make money too. Justine Bone’s medical hacking firm, MedSec, took the unprecedented step last year of openly teaming with an investor who was selling shares short, betting that they would lose value.

It was acrimonious, but St Jude Medical ultimately fixed its pacemaker monitors, which could have been hacked, and Bone predicted others will try the same path.

“Us cyber security nerds have spent most of our careers trying to make the world a better place by engaging with companies, finding bugs which companies may or may not repair,” Bone said.

“If we can take our expertise out to customers, media, regulators, nonprofits and think tanks and out to the financial sector, the investors and analysts, we start to help companies understand in terms of their external environment.”

Chris Wysopal, co-founder of code auditor Veracode, bought in April by CA Technologies, said that he was initially skeptical of the MedSec approach but came around to it, in part because it worked. He appeared at Black Hat with Bone.

“Many have written that the software and hardware market is dysfunctional, a lemon market, because buyers don’t know how insecure the products they purchase are,” Wysopal said in an interview. “I’d like to see someone fixing this broken market. Profiting off of that fix seems like the best approach for a capitalism-based economy.”
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U.S. lawmakers said on Thursday that Commerce Secretary Wilbur Ross told them he will defer to President Donald Trump on the timing of a decision on new steel import curbs, likely meaning further delays and deliberations on the issue.

Members of the House of Representatives Ways and Means Committee attending a briefing with Ross said he did not specify a timetable for releasing a long-awaited report that will lay out options for shielding the steel industry from imports on national security grounds.

Ross had originally hoped to release the steel “Section 232” report at the end of June but the timing has slipped amid disagreements among White House aides over the merits of restricting imports that could hurt steel consuming industries.

A House Democratic aide who attended the briefing said Ross repeated President Donald Trump’s comments in a Wall Street Journal interview this week that the decision on potential steel tariffs would take more time and could come after congressional debates on health care, tax reform and infrastructure spending.

“I can only follow my leader,” the aide said Ross told the briefing.

The Commerce secretary also told lawmakers the issue had a lot of complexities and that he was considering the interests of both steel makers and steel users and concerned about potential trade retaliation against U.S. agricultural products. The lawmakers said Ross told them he was taking a similar approach to a parallel national security probe into aluminum imports.

“I think it’s a good sign that they’re actually slowing down and taking a long look, not trying to mix this in with these other issues that have to be lifted,” said Republican Representative Jackie Walorski.

“I think that Secretary Ross is committed to making sure that we’re doing no harm, that we’re getting this right. I need it to be right when it comes to aluminum,” Walorski said, adding that the recreational vehicle industry in her northern Indiana district does not want to higher aluminum prices due tariffs.

Representative Judy Chu, a California Democrat, said Ross told the lawmakers that the Trump administration also wanted to pursue negotiations with other steel-producing countries to address the problem of excess capacity that was causing a flood of dumped imports.

But Ross and U.S. Treasury Secretary Steven Mnuchin last week failed to secure commitments from their Chinese counterparts to make specific commitments to cut steel production capacity.

China, which produces half the world’s steel, is widely viewed as the source of much of the metal’s excess production.
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A proposed border tax in the House of Representatives was killed on Thursday, bringing relief to retailers and other large importers whose profits faced threats and removing a hurdle that had kept negotiations on the long-promised Republican overhaul of the U.S. tax code from advancing.

The border adjustment tax was part of a broad reform of the tax code being pushed by House Republican leaders. It was meant to discourage companies from manufacturing products overseas and then importing them into the United States for sale instead of producing goods in the U.S.

The tax would have generated roughly $1 trillion in revenue, allowing tax-code writers to slash the corporate tax rate without increasing the nation’s deficit.

Removing the controversial provision could make it easier to pass tax legislation, but likely narrows the scope of what could become law. It suggests Republicans are more likely to implement simple rate cuts and not accomplish sweeping tax reform on the scale of the last major overhaul in 1986, such as moving to a territorial tax system, in which companies would pay tax only on profits earned in the United States.

Without a new source of revenue, it will make it more difficult for Republicans to make tax code changes permanent and deficit-neutral. The Republicans are looking to use rules that would require passage of a tax bill only with a simple majority – meaning they would not need any Democratic votes. Those rules restrict creating long-term deficits, so if the bill is not deficit-neutral the tax cuts would likely carry an expiration date.

The group of six Republican negotiators working on tax reform on Thursday did not announce any agreement on their target for corporate rate cuts – a signal that tax lobbyists said shows continuing divisions among Republicans about the closely watched rate.

Corporate profits are currently taxed at 35 percent, but President Donald Trump wants them slashed to 15 percent, which he says will promote business spending, economic growth and job creation.

“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” the “Big Six” Republican tax negotiators said in a joint statement.

Large retailers and other importers had lobbied aggressively against the border tax proposal, including a coalition that included automakers like Toyota and stores like Target , Autozone and Best Buy.

The retailers argued that the border tax would drastically increase consumer prices, hitting low- and middle-class households the most.

The Big Six is comprised of Treasury Secretary Steve Mnuchin and Gary Cohn, the head of the National Economic Council – both representing Trump – House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell and the heads of the two tax-writing committees in Congress, Senator Orrin Hatch and Representative Kevin Brady.

In addition to killing the border tax, the group offered other vague goals but no details, saying they remain committed to increased expensing for corporations, or allowing them to write off the cost of new equipment more quickly, and to return profits held by American companies overseas, known as repatriation, at a lower tax rate than the current 35 percent.

The statement offered no specific goals or targets on the personal income tax code.

“We have always been in agreement that tax relief for American families should be at the heart of our plan,” the Big Six said.

Trump has vowed to finish a tax overhaul by the end of this year.

Republicans leaders in Congress are hopeful that the current debate on repealing and replacing Obamacare, which is now before the Senate, can be completed quickly, allowing Congress to then turn its attention to the tax code.

The U.S. Chamber of Commerce praised the announcement as progress toward an ultimate goal of overhauling the code.

“We’re pleased, but we’re not satisfied until we get an outcome,” said Neil Bradley, the head of policy for the business group.
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Amazon is introducing express delivery to Singapore in its first direct effort to tap into surging online shopping in fast-growing Southeast Asia.

The American e-commerce company announced Thursday it will begin operating a distribution facility bigger than a football field in the wealthy island nation. It promises to deliver tens of thousands of types of items within two hours for free, if customers spend at least 40 Singapore dollars ($29.52).

That’s a step up from past international shipping options offered by Amazon, where items sometimes took weeks to arrive.

Amazon is late to capitalize on the region’s rising middle class. The biggest local competitor is Lazada, which is backed by Chinese giant Alibaba and launched in the region in 2012. It operates in Indonesia, Malaysia, Thailand, the Philippines, Vietnam and Singapore.

Henry Low, the Asia Pacific director of Amazon Prime Now, said the company is keen to expand elsewhere in Southeast Asia, a market of more than 600 million people.

“I’m super excited about future possibilities,” Low said.

The number of internet users in Southeast Asia is expected to rise from 260 million now to 480 million by 2020, according to research by Google and state-owned investor Temasek Holdings. It forecasts that the value of e-commerce in the region will soar to 88 billion by 2025 from 5.5 billion in 2015.

“The offline-to-online shift will continue and we strongly believe in the great success of e-commerce [with] the rising middle class in many Southeast Asian markets,” said Hanno Stegmann, chief executive of the Asia Pacific Internet Group, the Asian arm of Rocket Internet, which founded Lazada.

As Amazon gears up in Singapore, Rocket Internet already is looking at other emerging markets. Its current focus is on Daraz, an e-commerce platform aimed at the 400 million people living in Myanmar, Pakistan and Bangladesh.

Still, there’s plenty of room for growth in Southeast Asia, where e-commerce accounts for only 2.6 percent of the retail market, said Sebastien Lamy, a partner at management consultancy Bain & Company.

That’s compared with 15 percent to 25 percent seen in the U.S. and China.

Even if online commerce is just getting started, it’s already having an impact in Singapore, whose glitzy malls are the backbone of the local economy and tourism.

Mall vacancies along Orchard Road and in other areas are rising, abandoned by shoppers like Rahil Bhagat, a content producer.

Rahil started buying video games and accessories online from the U.S. in 2009. Now, he makes 75 percent of his purchases, from car parts to quinoa, online.

“Physical shopping has lost its appeal,” he told the AP. “Even if I visited a brick-and-mortar store, I would be checking online to see if it’s cheaper. It usually is.”

 
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We know that staying active and involved with family and friends can help keep our brains healthy as we get older. A new study in Portland, Oregon, combines those activities to gauge their effectiveness in warding off dementia. Faith Lapidus reports.
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The U.S. central bank remains upbeat about the US economy, choosing to keep interest rates unchanged at historic lows after concluding its 2-day meeting Wednesday. Amid an improving job market but weak inflation, the Fed characterized US economic growth as “moderate” — far slower than what President Donald Trump promised. But now six months into his presidential term, there’s still very little action on the president’s economic agenda. Mil Arcega has more.
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U.S. Treasury Secretary Steven Mnuchin on Wednesday urged federal lawmakers to raise the federal debt limit before they leave Washington for their August recess to avoid increased interest costs to taxpayers and market uncertainty about a potential default.

Mnuchin told a Senate Appropriations subcommittee that maintaining U.S. creditworthiness was of “utmost importance” and that the United States must pay its bills on time.

“As I’ve suggested in the past, based upon our best estimate at the time, we do have funding through September, but I have urged Congress to take this up before they leave for the recess,” Mnuchin said.
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President Donald Trump plans to announce Wednesday that electronics giant Foxconn will build a liquid crystal display panel plant in Wisconsin, according to an invitation to the event obtained by The Associated Press.

The AP obtained the invitation from a person with knowledge of the afternoon gathering at the White House, but the person wasn’t authorized to publicly release the information. Wisconsin Gov. Scott Walker tweeted earlier Wednesday that Trump planned to make a “major jobs announcement for Wisconsin.”

White House spokesman Josh Raffel confirmed the Trump announcement would be on Foxconn, but said he would not release details ahead of the event. Walker and several other Wisconsin officials, including U.S. House Speaker Paul Ryan and Democratic U.S. Sen. Tammy Baldwin, were expected at the event.

Wisconsin is among seven states that have been vying to land a Foxconn assembly plant, which is expected to result in billions of dollars in investments in the state and employ thousands of people. Republican leaders in the Wisconsin Senate have said Walker has been negotiating a memorandum of understanding with Foxconn – best known as the assembler of the iPhone – to build such a factory in southeast Wisconsin.

Foxconn did not immediately return messages seeking comment Wednesday. Other states vying for the plant are Michigan, Illinois, Indiana, Ohio, Pennsylvania and Texas.

Landing the multi-state competition for the plant has been cast as a once-in-a-generation opportunity. Foxconn is the biggest contract assembler of smartphones and other devices for Apple and other brands. It has been eyeing building the plant in a part of Wisconsin represented by Ryan, who said he has met with company officials at the request of the Republican governor.

Critics have cautioned that Foxconn has made promises before to invest in the U.S. and not followed through. Foxconn promised in 2013, for example, to invest $30 million and hire 500 workers for a new high-tech factory in Pennsylvania, but it was never built.

Still, landing Foxconn would be a victory both for Trump, as he touts his build America agenda, and for Walker, who is up for re-election next year.

White House Chief of Staff Reince Priebus, who is from Ryan’s congressional district in southeast Wisconsin, told WTMJ-TV on Tuesday that Trump, when flying over the area in Kenosha County during a visit to Wisconsin in April, noticed vacant land where a former Chrysler Motors plant used to be.

“He said, ‘That land should be used,’ ” Priebus said. “So when Foxconn came into the White House, into the Oval Office, the president said, ‘I know a good spot that you should go to, that place in Kenosha.’ ”

That part of the state is an attractive location for a large plant because of the area’s proximity to Lake Michigan and its abundant water supply. To make flat-panel displays, the company will need access to great quantities of water to keep work spaces dust-free, among other things.

Wisconsin could be on the hook for billions of dollars in incentives as part of the deal, though no details of the state’s proposal have been released.

State Sen. Alberta Darling, co-chair of the Legislature’s budget committee, said any deal would be examined with a “fine-toothed comb” and have to win approval by the Republican-controlled Legislature.

 
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Peruvian authorities have launched a major crackdown on modern slavery after a warehouse fire in Lima last month killed four workers, including two who were trapped inside a padlocked container on the roof.

Officials said they had shut down six furniture factories in the capital on Monday in an operation to root out forced labor and exploitation, following raids by prosecutors, police and labor inspectors.

Last month’s toxic blaze which tore through several warehouses in the city center highlighted labor exploitation in the capital and prompted calls for better protection of workers’ rights and more labor inspections.

President visits site of blaze

Peruvian President Pedro Pablo Kuczynski said the victims were “practically slave workers” when he visited the site following the June 22 blaze.

Peru’s attorney general said on Monday there would be more raids on factories and warehouses to prevent further “tragic accidents.”

Another eight operations are planned this year in the wider Lima region and the north of the country where forced labor has been linked to the fishing industry.

Prosecutors said the furniture factories targeted in Monday’s raids were operating without a licence, health and safety was “inadequate” and fire exits had been blocked, putting workers at risk.

Over 200,000 trapped in slavery

An estimated 200,500 people are trapped in modern day slavery in Peru, according to rights group The Walk Free Foundation, the third highest number in Latin America after Mexico and Colombia.

The International Labor Organization (ILO), which estimates there are 21 million people in forced labour worldwide, welcomed the new labor inspections in Peru.

“The tragic fire was shocking. People were outraged,” said Teresa Torres, coordinator of ILO’s program against forced labor in Peru.

“Having this kind of task force carrying out inspections is progress and an important response from the government,” she told the Thomson Reuters Foundation.

Need for ‘justice’

Public prosecutors have launched an investigation into possible human trafficking following the fire.

“What’s important in this case is that there’s justice, and as such those people responsible are punished,” Torres said, adding those found guilty could face up to 25 years in prison.

Across Peru, forced labor is more commonly linked to the illegal logging industry and illegal gold mines in the Amazon jungle. Girls are also trafficked to these areas for sex work.

Forced labor widespread

Torres said the warehouse blaze showed forced labor is more widespread than many Peruvians believe.

“This is more evidence to show that forced labour doesn’t just happen in … remote areas of the Amazon, but it could be happening right in the center of the capital too,” Torres said.

“We have information that forced labor is also happening in the north of Peru, in other sectors such as the shrimp fishing industry.”

She said victims of forced labor were often hidden from view, working on fishing vessels, in small clandestine workshops, commercial agriculture or private homes.
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Continuing its focus on curbing government regulations, a Republican-led House is seeking to overturn a rule that would let consumers band together to sue their banks or credit card companies rather than use an arbitrator to resolve a dispute.

The Consumer Financial Protection Bureau finalized the rule just two weeks ago. It bans most types of mandatory arbitration clauses, which are often found in the fine print of contracts governing the terms of millions of credit card and checking accounts.

Republican lawmakers, cheered on by the banking sector and other leading business trade groups, have wasted no time seeking to undo the rule before it goes into effect next year. They’ll succeed if they can get a simple majority of both chambers of Congress to approve the legislation and President Donald Trump to sign it. The numbers are likely on their side, just as they were earlier this year when Republicans led efforts to upend 14 Obama-era rules.

GOP lawmakers described the rule as a bad deal for consumers but a big win for trial lawyers. They said the average payout in a class-action lawsuit was just $32 while the payout for the attorney in the case was nearly $1 million.

“Arbitration is an alternative to the judicial system and it offers results and a better outcome for consumers,” said Representative Ken Buck, a Republican from Colorado. “Arbitration allows parties to use an independent mediator instead of hiring expensive lawyers to settle a dispute.”

Support for the rule

Democratic lawmakers are fighting to keep the rule. They said the point of participating in a class-action lawsuit is generally to pursue relief from small financial injuries — the kind that would not be worth the time and expense for someone to pursue on their own through the legal system. Senator Elizabeth Warren, a Democrat from Massachusetts, said that when a whole lot of people get hurt in the same way, they should have a chance to join together to pursue redress.

“If you’re going to cheat people, there’s going to be some accountability,” Warren said. “That’s what this provision is all about.”

Democratic lawmakers framed the debate as Republicans sticking up for powerful financial companies at the expense of consumers who often are outgunned and outmanned in their disputes with banks and other creditors.

“It sadly reflects a Republican Party that works relentlessly to empower Wall Street and to rig the system against consumers,” Democratic Leader Nancy Pelosi said of the repeal effort.

Republicans portrayed arbitration as a superior option for consumers and said that the Consumer Financial Protection Bureau’s action could force banks to hold greater reserves to prepare for future litigation. The money could instead be used to lend out to small businesses and families.

The consumer protection agency estimated that the cost of complying with the new rule would be less than $500 million annually for banks. The agency also said that banks generated more than $171 billion in profits in 2016.
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Greece successfully sold debt to private investors for the first time in three years Tuesday, taking a significant first step toward financial independence when its third international bailout ends next year.

The deal came a month after eurozone finance ministers signed off on a new loan and sketched out measures to chip away at Greece’s debt mountain after the current bailout finishes in August 2018.

Greek Finance Minister Euclid Tsakalotos hailed the successful sale, saying it was “a beginning” and a sign of confidence in the country’s economy.

“There will be a second and a third [market foray], to approach August 2018 with confidence and emerge from the bailouts,” he said.

In the test run to ensure it will be able to rely on market funding next year, Athens sold 3 billion euros of new five-year bonds alongside a tender to buy back outstanding five-year paper issued in 2014. That was to help lower its repayments in the years following the bailout exit.

Less demand

The deal did not attract as much demand as the country’s brief foray into markets in 2014, but Athens paid less to borrow the same amount.

The bonds were priced to yield 4.625 percent, 32 basis points below a bond of similar duration that Athens last sold in 2014. The coupon was set at 4.375 percent versus 4.75 percent on the 2014 bonds.

“The return of Greece to the capital markets was and is the goal of the ongoing adjustment program. We therefore welcome the fact that Greece has the chance to return to the market on a step-by-step basis,” a spokeswoman for the finance ministry in Germany, Europe’s biggest economy, said.

Analysts said some investors may be put off Greek government bonds because they have the lowest credit rating in the eurozone and are not eligible for purchase by the European Central Bank under its quantitative easing scheme.

When Greece sold 3 billion euros of five-year bonds in 2014, demand reached over 20 billion euros from 600 investors. Tuesday’s sale saw demand come from about 200 investors, a government official said.

Thomson Reuters’ International Financing Review reported over 6.5 billion euros of orders had been placed.

Greece’s comeback has been timed to take advantage of its borrowing costs hitting seven-year lows. But it is still paying 3.9 times Portugal’s borrowing costs on five-year paper.

A treasurer at one of Greece’s big banks, who wished to remain anonymous, told Reuters that he expected a large chunk of demand for the bond came from domestic banks and pension funds. He added that the deal would also open the way for Greek banks to borrow in capital markets.

Turning a page

Athens lost market access shortly after it sold bonds in 2014 because its newly elected leftist government quarreled with creditors over debt relief.

Some investors may have been put off by that experience, analysts said, especially as there are lingering concerns about Greece’s debt mountain. That stands at 180 percent of economic output versus the 60 percent or falling toward 60 percent required by the European Union.

“Given Greece’s fundamentals, the problem with this bond sale is that it fuels speculation about investor willingness to lend to an almost insolvent country,” said ABN AMRO senior fixed-income analyst Kim Liu. “Regardless of the success of the deal, debt-to-GDP levels of Greece will still be at high levels.”

But Europe’s economics commissioner, Pierre Moscovici, said Tuesday that he was confident Greece was “turning a page” from its economic crisis.

The bond sale is also emblematic of the recovery of the eurozone as a whole, coming five years after European Central Bank President Mario Draghi brought the bloc back from the brink of splintering with a pledge to do “whatever it takes.”

The International Monetary Fund, which has lent financial support to Greece alongside the European Union and the ECB, upgraded its 2017 gross domestic product growth projection for the eurozone and pointed to “solid momentum.”

“We believe that changes in the European political landscape, together with recent strong economic data, mean the bond should perform well,” said Nicholas Wall, a portfolio manager at Old Mutual Global Investors.
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A Ghanaian teenager wanted to develop a video search engine that could challenge the dominance of YouTube. As Faith Lapidus reports, he’s well on his way.
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From recycled paint to rented jeans, businesses large and small are looking at ways to cut waste, use fewer resources and help create what has been coined a “circular economy” in which raw materials and products are repeatedly reused.

Unilever, Renault, Google and Nike are some of the companies starting to move towards a circular business model, experts say.

Cities too – including London, Amsterdam and Paris – are looking at how they can shift to a circular economy, which means reusing products, parts and materials, producing no waste and pollution, and using fewer new resources and energy.

London’s Waste and Recycling Board last month published a road map for how the city as a whole could make the shift, thereby cutting emissions and creating jobs.

“As London grows it faces unprecedented pressure on its land and its resources. If we are to meet these challenges, moving London to a circular economy will be vital,” Shirley Rodrigues, London’s deputy mayor for environment and energy, told the Thomson Reuters Foundation.

The city would likely need less land and infrastructure to manage waste, freeing up space for housing and saving up to 5 billion pounds ($6.5 billion) in infrastructure costs. The shift could generate 40,000 jobs, including 12,500 new jobs across London, she said.

It would also cut harmful greenhouse gas emissions.

“It is widely accepted that the circular economy has the potential to reduce greenhouse gas emissions … through using less resources to make products in the first place and releasing less gases from energy generation, for example,” Rodrigues said.

“This can also be achieved through using resources more efficiently by extending the life of products and through the sharing of goods,” she added.

PwC, which offers audit, tax and consulting services, is going circular, and offering advice about this to its clients, who number 26,000 in Britain with more overseas.

The company uses cooking fat from its canteens and other kitchens to fuel its offices, it re-uses and remanufactures office furniture where possible and donates the rest to charity, and when its computers and phones need upgrading – a frequent occurrence – they send them to another company which resells them.

‘Walk the talk’

Bridget Jackson, PwC’s head of corporate sustainability, is looking at everything from office carpets to recycled wall paint to see how to cut the company’s waste and use of resources. Even worn out company uniforms are taken apart and reused.

“There are big cost savings, there’s reputational benefits from being responsible, and it is a topic which is of a lot of interest to our employees,” Jackson said.

“We are often giving advice to clients about how they can make their operations more efficient and be more sustainable, and we try to walk the talk,” she said.

Some companies are looking for ways to become less reliant on raw materials because they fluctuate in price and become harder to source.

That can mean recycling aluminum for cars, old trainers for sportswear, and others are looking at reusing parts.

Many have developed ways to lease products – including jeans, lighting and photocopiers – to customers who return them when they want to upgrade.

London authorities are hoping that architects will increasingly design buildings which can be taken apart at the end of their lives and the materials and components used again.

“I think increasingly, everything that we do will be seen through the lens of a circular economy,” said Wayne Hubbard, chief operating officer of the London Waste and Recycling Board.

Experts say change is happening in pockets.

“We’re still in the early stages where you see some businesses, some cities, national governments playing around with these ideas and … starting to make moves towards a circular economy,” said Ashima Sukhdev, head of governments and cities at the Ellen MacArthur Foundation. “I’m very hopeful that London will become a circular economy.”
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More steps to free up trade globally have been taken since Donald Trump was elected than measures to restrict it, the World Trade Organization said, despite concerns his administration would introduce a raft of punitive rules to protect U.S. jobs.

The WTO’s global monitoring report, debated at a trade policy review on Monday, covers October 2016 to May 2017.

“The report shows an encouraging decrease in the rate of new trade-restrictive measures put in place — hitting the lowest monthly average since the financial crisis,” WTO Director-General Roberto Azevêdo said in a statement.

The semi-annual report, largely coinciding with the period since the election of U.S. President Donald Trump, showed that the 164 WTO members put 74 new restrictive measures in place, including tariffs, customs regulations and quantitative restrictions, with an impact of $49 billion of trade.

At the same time, they took 80 steps to help trade, such as cutting tariffs or simplifying customs procedures, affecting a much bigger $183 billion of trade.

Restrictions peaked in 2011

Trade-restrictive steps peaked at 22 per month in 2011, roughly twice the level in the period of the latest report.

During the period under review, the United States introduced new restrictions including a provisional duty on Canadian softwood lumber, suspecting it of being unfairly priced.

It also brought in “Buy America” provisions to ensure that, subject to some conditions, state loan funds are not used for water infrastructure projects unless all the steel used in the project was produced in the United States, the WTO report said.

Liberalized trade

Trump had also liberalized trade by scrapping broadband privacy rules, allowing Internet service providers to commericalize user data without explicit permission from the U.S. Federal Communications Commission, the report said.

China, routinely the WTO member most often accused of unfair pricing and illegal subsidies, had introduced new restrictions with a cybersecurity law, requiring data generated in China to be stored in China, and a film production law, requiring Chinese movies get two-thirds of the screen time at Chinese cinemas.

But it also eased approval requirements for foreign-owned banks to invest in Chinese banks and to supply some investment banking services in China, the WTO report said.
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An Australian man who died in a Sydney car crash may be the 18th death linked to faulty Takata air bags, after police said he was killed when hit in the neck by shrapnel from an air bag.

Police did not say the air bag in the Honda CR-V was from manufacturer Takata, whose faulty air bags have been linked to 17 deaths and more than 180 injuries worldwide.

However, Honda Australia director Stephen Collins confirmed on Saturday that the vehicle involved was linked to the worldwide recall.

“The vehicle involved, a 2007 Honda CR-V, was the subject of Takata airbag inflator recalls,” Collins said in a statement, in which he offered the company’s condolences to the family of the dead driver. “Honda Australia is working closely with authorities to provide whatever assistance is required.”

Takata has declared 2.7 million vehicles to have potentially defective airbags.

Takata Corp filed for bankruptcy last month after being forced to recall around 100 million air bags worldwide, but that figure could be set to double pending an ultimatum set by U.S. regulators.

Dozens of models of vehicles and nearly 20 automakers have been affected by the air bag recalls, with Takata’s automaker customers having so far borne much of the estimated $10 billion cost of replacing the faulty products.

Some automakers still use Takata inflators for replacements in the recalls, although some including Honda Motor Co, Toyota Motor Corp and Nissan Motor Co have said they will stop using Takata inflators for new contracts for future models.
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The Carrier manufacturing facility in Indianapolis, Indiana, owned by United Technologies Company, was in the limelight during the 2016 presidential election when then-candidate Donald Trump criticized UTC’s announcement it was moving jobs from the facility to Mexico. While Trump’s postelection negotiations, including tax incentives, encouraged Carrier to remain in Indianapolis, hundreds of employees still face layoffs this year. VOA’s Kane Farabaugh has more from Indiana.
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President Donald Trump was expected to sign an executive order Friday authorizing a comprehensive review of the U.S. manufacturing sector to help ensure the security of the nation, according to White House officials.

White House National Trade Council Director Peter Navarro told reporters Friday industrial supply chains will also be reviewed in the effort to address possible industrial vulnerabilities that may have been created as a result of U.S. factory closings.

Administration officials say there is a dearth of U.S. companies that can repair submarine propellers and circuit boards and produce parts such as flat panels in the event of a war.

“America’s defense industrial base is now facing increasing gaps in its capabilities,” Navarro said, adding that “certain types of military-grade semiconductors and printed circuit boards have become endangered species.”

The order will call for a 270-day review that will be conducted by the Pentagon, along with the departments of Commerce, Energy, Homeland Security, Labor and the National Security Council.

The Commerce Department is already reviewing the possibility of imposing steel tariffs for national security reasons as a possible way to reshape international trade without negotiating new agreements with foreign countries.
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Businesses owned by U.S. President Donald Trump have filed requests for visas with the Department of Labor to hire dozens of temporary foreign workers.

The news of the requests comes during the White House’s “Made in America Week,” urging American companies to hire American workers, a central theme of Trump’s presidential campaign.

The president’s Mar-a-Lago Resort and his nearby golf club in southern Florida are seeking to bring in the workers under the H-2B visa program, which allows companies to hire temporary, non-agricultural workers when American workers can’t be found. The jobs would run during the clubs’ busy season between October and May.  

Mar-a-Lago is seeking to hire 70 cooks, servers and housekeepers, while the golf club is looking for six cooks.

The Department of Labor certifies companies to apply for the visas, which are issued by the Department of Homeland Security.  

Trump announced a one-time expansion of the H-2B visa program earlier this week, increasing the number of available visas from 66,000 to 81,000. 
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